Stronger Mexican sees debt balloon as it waits for payment from Televisa

Cable TV software provider, Mirada said it had seen an increase in business from its primary customer Televisa, but worries about the company's financial position caused share prices to drop as much as 35% Monday.

The AIM-listed technology company said the number of set-top boxes at the cable networks of Televisa running its software had topped 750,000, with a quarter of the new households using Mirada's technology having also installed its over-the-top (OTT) services.

Furthermore, in the last two months new subscriber numbers had accelerated, leading to greater license volumes from Televisa, the company said in an ammended statement.

Mirada attributed that to the strengthening Mexican currency and a reduction in the uncertainty around the country's economic future in the immediate wake of the US presidential elections, which caused a slowed roll-out of Mirada's Iris product.

The company also announced it had received more than $1.3m from its invoice discounting facility provider linked to recently agreed set top box purchase orders with Televisa which were mostly rendered during the reporting period.

Payment for those orders from Televisa was expected by the end of September 2017 and discussions were ongoing with its auditor regarding th appropriate revenue recognition.

Greater marketing spend had also resulted in a "materially" larger sales pipeline than in previous years.

As of the financial year-end on 31 March, the company's net debt stood at £4.26m with additional available facilities of £3.17m.

Following the receipt of $1.3m from its invoice discounting facility provider its net debt had risen to £5.91m as of 31 July with available facilities of £1.21m.

Meanwhile, its cash in hand balance was at £460,000.

"The receipt of the payment from Televisa in due course is expected to have a beneficial impact on the Company's net debt position, all other things being equal."

By 1427 BST, shares were down 35.71% at 1.13p.