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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| M&C Saatchi | AQSE:SAA.GB | Aquis Stock Exchange | Ordinary Share | GB00B01F7T14 | Ordinary Shares 1p |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 185.00 | 175.00 | 195.00 | 185.00 | 185.00 | 185.00 | 0.00 | 07:01:06 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMSAA
RNS Number : 4803K
M&C Saatchi PLC
22 September 2016
M&C SAATCHI PLC
INTERIM RESULTS
SIX MONTHSED
30 JUNE 2016
22 September 2016
M&C Saatchi PLC
Interim results for the six months ended 30 June 2016
22 September 2016
Strong revenue and earnings growth
Financial Highlights 2016 Growth versus 2015 Revenue GBP100.2m + 15% (2015: GBP87.5m) Revenue in constant + 14% currencies + 6% Like-for-like GBP11.3m + 22% (2015: GBP9.3m) revenue Operating Profit Profit Before GBP11.4m + 19% (2015: GBP9.6m) Tax Earnings GBP7.7m + 22% (2015: GBP6.3m) EPS 10.71p + 20% (2015: 8.96p) Dividend 1.85p + 15% (2015: 1.61p)
The highlights are headline results, see note on next page for definition.
Operational Highlights
-- Successful first half with strong revenue momentum and earnings growth -- Global Network performed mostly very well: deg UK: like-for-like revenues down 1% deg Europe: like-for-like revenues up 12% deg Middle East and Africa: like-for-like revenues up 19% deg Asia and Australasia: like-for-like revenues up 5% deg Americas: like-for-like revenues up 27%, constant currency revenues were up 93%
o Net borrowing of GBP8.5m following equity investments in New York
o Interim dividend increased 15% to 1.85p
Commenting on the results, David Kershaw, Chief Executive, said:
"Momentum across the Group remains strong, producing positive revenue and earnings growth over the first six months of 2016.
"We are well positioned and see significant opportunities from our breadth of offer in the fastest growing segments.
"The second half has started well with trading in line with expectations. We continue with the proven strategy."
For further information please call:
M&C Saatchi +44 (0)20-7543-4500
David Kershaw
Tulchan Communications +44 (0)20-7353-4200
Tom Murray
Numis Securities +44 (0)20-7260-1000
Nick Westlake, NOMAD
Charles Farquhar, Corporate Broking
Notes to Editors
Headline results
The term headline is not a defined term in IFRS. The items that are excluded from headline results are the amortisation or impairment of intangible assets (including goodwill and acquired intangibles, but excluding software) acquired in business combinations, changes to deferred and contingent consideration and other acquisition related charges taken to the income statement; impairment of investment in associate; profit/loss on disposal of associates; and income statement impact of put option accounting (whether accounted under IFRS2 or IAS39). See Note 4 for reconciliation between the Group's statutory results and the headline results.
Like-for-like
The like-for-like revenue comparisons referred to in this report are stated after excluding the impact of foreign currency movements and corporate transactions.
Periods compared
This report comments on the unaudited consolidated income statement of M&C Saatchi plc (the "Group") for the six months to 30 June 2016 compared with the unaudited consolidated income statement for the same period in 2015.
SUMMARY OF RESULTS
The first six months of 2016 saw strong revenue momentum and earnings growth. Actual revenues grew by 15%, with constant currency revenues increasing 14%, whilst we increased like-for-like revenues 6%. We returned a headline operating margin of 11.3%, up from 10.6% in 2015. The headline profit before tax advanced 19% to GBP11.4m and headline net earnings rose 22%.
UK
We posted a small decrease in UK revenues of 1%, with our CRM and mobile operations returning good increases. In addition, M&C Saatchi PR and our Sport & Entertainment division as well as our research operation The Source all performed strongly. However, this growth was offset by the impact of 2015 client losses within the advertising agency.
We experienced a favourable run of account wins across our group of businesses in the first half, including Ageas, Alibaba, the Department of Work and Pensions, E.ON, the Home Office, Open University, Rail Delivery Group and further work for Royal Mail.
The UK headline operating profit was 10% down on 2015 but included restructuring costs of GBP660k in the advertising agency unit, which if discounted meant operating profit actually grew 2% on 2015. The headline operating margin decreased to 13.0% compared with 2015's 14.2%, but if the restructuring costs are excluded then the margin came in at 14.7%. These margins exclude the impact of Group recharges. We are also finalising the previously announced sale of 30% of the advertising agency to a new management team following our proven owner-driver model. We are confident that this new team will provide a platform for growth next year.
Europe
We made further positive progress in Europe with like-for-like revenues up 12%. Headline operating profit was up 51%, with a headline operating margin of 16.2% (2015: 12.7%). Our Stockholm office kept up its very good new business record and won the TV and broadband supplier Com Hem. Both Germany and Italy maintained their strong performance, with Italy winning E.ON. In France, advertising remained sluggish but our agency was appointed by YouTube and Google and continues to grow through diversification. Our associate in Spain continues to tick up after a challenging few years.
Middle East and Africa
Like-for-like revenues in the Middle East and Africa were up 19%, with a slow start as last year but a stronger second half anticipated. In South Africa we lost Edgars but quickly won Sun International. Our Abu Dhabi and Dubai offices are both growing steadily, as is our Tel Aviv office. Overall with the slow start, the operating profit off a low base was up 33% and the headline operating margin increased to 7.9% from 6.8% in 2015.
Asia and Australasia
In Asia and Australasia, like-for-like revenues increased 5% in the period. Our Australian offices are doing very well and following their win of Woolworths in February without a pitch, have since won BBQ Galore, eBay and Menulog.
Otherwise, our associate in China, aeiou, continues to perform favourably and impress network clients. Malaysia is still excelling and won the KLIA account. Singapore is developing positively and picked up some Shell business. Japan has continued to underperform and we have therefore reduced our holding to 10%.
The headline regional operating margin was 11.9% (2015: 12.0%), with the headline operating profit ahead 4% on the same period last year.
Americas
Constant currency revenues increased 93%, with like-for-like up 27%. There was an excellent 95% increase in operating profit to GBP3.4m and a headline operating margin of 17.1% (2015: 17.3%). Mobile are doing exceptionally well and building a strong client base across the US. The SS+K relationship in New York is thriving. In the light of this outstanding growth, we increased our shareholding in SS+K from 33% to 51% in March. In March, we also acquired 51% of MCD Partners in New York and Chicago to develop our US CRM offer. They are working very positively with LIDA and building a good relationship.
Our office in Los Angeles lost the UGG account but has since been converting new business including some Reebok and BMW. Macro-economic factors in Brazil have materially slowed the advertising market there and trading is currently tough.
Outlook
Momentum across the Group remains strong, producing positive revenue and earnings growth over the first six months of 2016. We have not seen any impact as a result of the Brexit decision, other than a positive foreign currency impact. We are well positioned and see significant opportunities from our breadth of offer in the fastest growing segments. The second half has started well with trading in line with expectations. We continue with the proven strategy.
M&C SAATCHI PLC
UNAUDITED CONSOLIDATED INCOME STATEMENT
ED 30 JUNE 2016
Hot Features
Premium
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2016 2015 2015
Note GBP000 GBP000 GBP000
------------------------------- ---- ---------- ---------- ------------
Billings 217,222 182,340 375,107
Revenue 4 100,219 87,568 178,928
------------------------------- ---- ---------- ---------- ------------
Operating costs (93,180) (79,242) (164,221)
Operating profit 4 7,039 8,326 14,707
------------------------------- ---- ---------- ---------- ------------
Share of results of associates 405 541 2,017
Finance income 6 3,797 154 299
Finance costs 7 (512) (618) (4,477)
Profit before taxation 4 10,729 8,403 12,546
------------------------------- ---- ---------- ---------- ------------
Taxation on profits 8 (1,667) (1,980) (3,386)
Profit for the financial
period 9,062 6,423 9,160
Profit attributable to:
Equity shareholders of
the Group 4 8,094 5,203 6,474
Non controlling interest 968 1,220 2,686
9,062 6,423 9,160
------------------------------- ---- ---------- ---------- ------------
Earnings per share 4
Basic 11.24p 7.36p 9.08p Diluted 11.20p 7.36p 9.04p
Reconciliation of the above numbers to the Headline numbers, discussed in the front of this report, can be found in note 4 on pages 16 to 18.
M&C SAATCHI PLC
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
ED 30 JUNE 2016
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2016 2015 2015
GBP000 GBP000 GBP000
-------------------------------- ---------- ---------- ------------
Profit for the period 9,062 6,423 9,160
---------------------------------- ---------- ---------- ------------
Other comprehensive income:
Exchange differences on
translating foreign operations 1,791 (1,738) (1,316)
Total other comprehensive
income for the period
net of tax 1,791 (1,738) (1,316)
Total comprehensive income
for the period 10,853 4,685 7,844
---------------------------------- ---------- ---------- ------------
Total comprehensive income
attributable to:
Equity shareholders of
the Group 9,885 3,465 5,158
Non controlling interests 968 1,220 2,686
---------------------------------- ---------- ---------- ------------
10,853 4,685 7,844
-------------------------------- ---------- ---------- ------------
M&C SAATCHI PLC
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 30 JUNE 2016
30 June 30 June 31 December
2016 2015 2015
GBP000 GBP000 GBP000
------------------------------ --------- -------- -----------
NON CURRENT ASSETS
Intangible assets 47,546 28,382 28,286
Investments in associates 18,473 22,095 24,811
Plant and equipment 9,619 7,801 8,197
Deferred tax assets 2,609 1,770 1,476
Other non current assets 7,600 7,792 8,349
-------------------------------- --------- -------- -----------
85,847 67,840 71,119
------------------------------ --------- -------- -----------
CURRENT ASSETS
Trade and other receivables 105,673 74,303 87,692
Current tax assets 2,199 32 844
Cash and cash equivalents 29,269 26,104 32,344
-------------------------------- --------- -------- -----------
137,141 100,439 120,880
------------------------------ --------- -------- -----------
CURRENT LIABILITIES
Bank overdraft (2,796) (151) (98)
Trade and other payables (103,277) (74,894) (94,533)
Current tax liabilities (2,885) (801) (1,204)
Other financial liabilities (25) (125) (3,155)
Deferred and contingent
consideration - - (1,792)
Minority shareholder put
options liabilities (15,594) (15,566) (16,738)
-------------------------------- --------- -------- -----------
(124,577) (91,537) (117,520)
------------------------------ --------- -------- -----------
Net current Assets 12,564 8,902 3,360
Total assets less current
liabilities 98,411 76,742 74,479
Non current liabilities
Deferred tax liabilities (36) (254) (30)
Other financial liabilities (34,958) (24,389) (23,594)
Minority shareholder put
options liabilities (13,698) (7,303) (7,626)
Other non current liabilities (1,630) (1,049) (1,208)
-------------------------------- --------- -------- -----------
(50,322) (32,995) (32,458)
------------------------------ --------- -------- -----------
Net assets 48,089 43,747 42,021
-------------------------------- --------- -------- -----------
M&C SAATCHI PLC
UNAUDITED CONSOLIDATED BALANCE SHEET (CONTINUED)
AT 30 JUNE 2016
30 June 30 June 31 December
2016 2015 2015
GBP000 GBP000 GBP000
-------------------------- -------- -------- -----------
Equity
Share capital 737 725 727
Share premium 20,332 19,727 17,338
Merger reserve 31,592 29,335 31,592
Treasury reserve (792) (792) (792)
Minority interest put
option reserve (22,379) (14,041) (12,595)
Non controlling interest
acquired (9,990) (9,068) (9,233)
Foreign exchange reserve (193) (2,406) (1,984)
Retained earnings 23,412 14,949 12,673
---------------------------- -------- -------- -----------
TOTAL SHAREHOLDERS FUNDS 42,719 38,429 37,726
---------------------------- -------- -------- -----------
Non Controlling interestS 5,370 5,318 4,295
TOTAL EQUITY 48,089 43,747 42,021
---------------------------- -------- -------- -----------
M&C SAATCHI PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
SIX MONTHSED 30 JUNE 2016
Non
Non controlling
MI put controlling Foreign interest
Share Share Merger Treasury option interest exchange Retained in
Capital premium reserve reserve reserve acquired reserves earnings Subtotal equity Total
2016 Half year GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------- ------- ------- ------- -------- -------- ----------- -------- -------- -------- ----------- -------
At 1 January
2016 727 17,338 31,592 (792) (12,595) (9,233) (1,984) 12,673 37,726 4,295 42,021
-------------- ------- ------- ------- -------- -------- ----------- -------- -------- -------- ----------- -------
Reserve
movement for
six months
ending 30 June
2016
Exercise of
put options 10 2,994 - - 551 (502) - (6) 3,047 (17) 3,030
Acquisitions - - - - (10,248) - - - (10,248) 1,797 (8,451)
Exchange rate
movements - - - - (87) (255) - - (342) (367) (709)
Issue of
shares to
minorities - - - - - - - - - 31 31
Share option
charge - - - - - - - 2,651 2,651 - 2,651
Dividends - - - - - - - - - (1,337) (1,337)
-------------- ------- ------- ------- -------- -------- ----------- -------- -------- -------- ----------- -------
Total
transactions
with owners 10 2,994 - - (9,784) (757) - 2,645 (4,892) 107 (4,785)
Total
comprehensive
income for
year - - - - - - 1,791 8,094 9,885 968 10,853
-------------- ------- ------- ------- -------- -------- ----------- -------- -------- -------- ----------- -------
At 30 June
2016 737 20,332 31,592 (792) (22,379) (9,990) (193) 23,412 42,719 5,370 48,089
-------------- ------- ------- ------- -------- -------- ----------- -------- -------- -------- ----------- -------
M&C SAATCHI PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
SIX MONTHSED 30 JUNE 2016
Non
Non controlling
MI put controlling Foreign interest
Share Share Merger Treasury option interest exchange Retained in
Capital premium reserve reserve reserve acquired reserves earnings Subtotal equity Total
2015 Half year GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------- ------- ------- ------- -------- -------- ----------- -------- -------- -------- ----------- -------
At 1 January
2015 683 16,807 27,689 (792) (13,070) (7,882) (668) 9,639 32,406 3,466 35,872
-------------- ------- ------- ------- -------- -------- ----------- -------- -------- -------- ----------- ------- Reserve movement for six months ending 30 June 2015 Exercise of put options 12 2,612 1,646 - 1,201 (1,201) - (48) 4,222 36 4,258 Issue of put options - - - - (2,214) - - - (2,214) 1,805 (409) Disposal of a subsidiary - - - - - - - (72) (72) 181 109 Exchange rate movements - - - - 42 15 - - 57 (110) (53) Share option exercise 30 308 - - - - - (3) 335 (338) (3) Share option charge - - - - - - - 230 230 - 230 Dividends - - - - - - - - - (942) (942) Total transactions with owners 42 2,920 1,646 - (971) (1,186) - 107 2,558 632 3,190 Total comprehensive income for year - - - - - - (1,738) 5,203 3,465 1,220 4,685 -------------- ------- ------- ------- -------- -------- ----------- -------- -------- -------- ----------- ------- At 30 June 2015 725 19,727 29,335 (792) (14,041) (9,068) (2,406) 14,949 38,429 5,318 43,747 -------------- ------- ------- ------- -------- -------- ----------- -------- -------- -------- ----------- -------
M&C SAATCHI PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
SIX MONTHSED 30 JUNE 2016
Non
Non controlling
MI put controlling Foreign interest
Share Share Merger Treasury option interest exchange Retained in
Capital premium reserve reserve reserve acquired reserves earnings Subtotal equity Total
2015 Year GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
----------------- ------- ------- ------- -------- -------- ----------- -------- -------- -------- ----------- -------
At 1 January 2015 683 16,807 27,689 (792) (13,070) (7,882) (668) 9,639 32,406 3,466 35,872
----------------- ------- ------- ------- -------- -------- ----------- -------- -------- -------- ----------- -------
Reserve movement
for year ending
31 December 2015
Acquisition - - - - - - - - - 161 161
Exercise of put
options 13 224 3,903 - 1,274 (1,274) - (48) 4,092 24 4,116
Office closure - - - - - - - (158) (158) 158 -
Exchange rate
movements - - - - 39 (77) - - (38) (121) (159)
Issue of shares
to minorities - - - - - - - - - 1,850 1,850
Issue of minority
put options - - - - (2,190) - - - (2,190) - (2,190)
Reclassification
of minority
put options - - - - 1,352 - - 306 1,658 - 1,658
Option exercise 31 307 - - - - - (3) 335 (338) (3)
Share option
charge - - - - - - - 1,125 1,125 - 1,125
Dividends - - - - - - - (4,662) (4,662) (3,591) (8,253)
----------------- ------- ------- ------- -------- -------- ----------- -------- -------- -------- ----------- -------
Total
transactions
with owners 44 531 3,903 - 475 (1,351) - (3,440) 162 (1,857) (1,695)
Total
comprehensive
income for
the year - - - - - - (1,316) 6,474 5,158 2,686 7,844
----------------- ------- ------- ------- -------- -------- ----------- -------- -------- -------- ----------- -------
At 1 December
2015 727 17,338 31,592 (792) (12,595) (9,233) (1,984) 12,673 37,726 4,295 42,021
----------------- ------- ------- ------- -------- -------- ----------- -------- -------- -------- ----------- -------
M&C SAATCHI PLC
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
SIX MONTHSED 30 JUNE 2016
Six months Six months Year
ended ended Ended
30 June 30 June 31 December
2016 2015 2015
Notes GBP000 GBP000 GBP000
-------------------------------- ----- ---------- ---------- ------------
Revenue 100,219 87,568 178,928
Operating cost (93,180) (79,242) (164,221)
Operating Profit 7,039 8,326 14,707
-------------------------------- ----- ---------- ---------- ------------
Adjustments for:
Depreciation of plant and
equipment 1,159 1,120 2,128
Losses on sale of plant
and equipment 36 9 36
Losses on sale of software
intangibles - - 12
Profit on disposal of associate - (142) (217)
Amortisation on acquired
intangible assets 1,638 684 1,940
Impairment of goodwill - - 889
Amortisation of capitalised
software intangible assets 60 50 98
Equity settled share based
payment expenses 2,651 315 1,125
-------------------------------- ----- ---------- ---------- ------------
Operating cash flow before
movements in working capital
and provisions 12,583 10,362 20,718
-------------------------------- ----- ---------- ---------- ------------
Increase in trade and other
receivables (1,449) (9,182) (17,192)
(Increase)/Decrease in
trade and other payables (8,781) 4,569 18,018
-------------------------------- ----- ---------- ---------- ------------
Cash generated from operations 2,353 5,749 21,544
Tax paid (2,901) (2,081) (5,326)
-------------------------------- ----- ---------- ---------- ------------
Net cash (outflow)/inflow from
operating activities (548) 3,668 16,218
--------------------------------------- ---------- ---------- ------------
Investing activities
Acquisitions net of cash
acquired 10 (11,033) (564) (79)
Acquisitions of associates 10 - (3,349) (3,765)
Acquisition of investments (581) (335) (1,366)
Disposal of associates - 97 325
Proceeds from sale of plant
and equipment 8 - 7
Purchase of intangibles - - (327)
Purchase of plant and equipment (1,495) (638) (1,970)
Purchase of capitalised
software (156) (5) (158)
Dividend from associates - 76 1,173
Interest earned 169 154 299
Net cash consumed by investing
activities (13,088) (4,564) (5,861)
-------------------------------- ----- ---------- ---------- ------------
Net cash consumed by operating
and investing activities (13,636) (896) 10,357
-------------------------------- ----- ---------- ---------- ------------
Six months Six months Year
ended ended Ended
30 June 30 June 31 December
2016 2015 2015
GBP000 GBP000 GBP000
Net cash consumed by operating
and investing activities (13,636) (896) 10,357
Dividends paid to equity
holders of the Company - - (4,662)
Dividends paid to non controlling
interest (1,337) (1,912) (3,591)
Issue of own shares - 497 - Issue of shares to minorities - - 15 Repayment of finance leases (21) (17) (31) (Repayment) / inception of invoice discounting (3,130) - 3,130 Inception of bank loans 10,646 6,451 6,349 Repayment of bank loans - (293) (968) Interest paid (510) (378) (771) ----------------------------------- ---------- ---------- ------------ Net cash generated / (consumed) from financing activities 5,648 4,348 (529) ----------------------------------- ---------- ---------- ------------ Net increase / (decrease) in cash and cash equivalents (7,988) 3,452 9,828 ----------------------------------- ---------- ---------- ------------ Cash and cash equivalents at the beginning of the period 32,246 23,321 23,321 Effect of exchange rate changes 2,215 (820) (903) ----------------------------------- ---------- ---------- ------------ Cash and cash equivalents at the end of the period 26,473 25,953 32,246 ----------------------------------- ---------- ---------- ------------ 1. GENERAL INFORMATION
The Company is a public limited company incorporated and domiciled in the UK. The address of its registered office is 36 Golden Square, London W1F 9EE.
The Company has its primary listing on the AIM market of the London Stock Exchange.
This consolidated half-yearly financial information was approved for issue on 22 September 2016.
These results do not constitute the Group's statutory accounts. The information presented in relation to 31 December 2015 is extracted from the statutory financial statements for the year then ended and which have been delivered to the Registrar of Companies. The auditor's report on the statutory financial statements for the year ended 31 December 2015 was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report(s) and did not contain statements under Section 498 (2) or (3) of the Companies Act 2006.
2. Basis of preparation
This consolidated half-yearly financial information for the half-year ended 30 June 2016 has been prepared in accordance with the AIM Rules for companies. The half-yearly consolidated financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2015.
3. Accounting policies
The financial information in these interim results is that of the holding company and all of its subsidiaries (the Group). It has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards as adopted for use in the EU (IFRSs). The accounting policies applied by the Group in this financial information are the same as those applied by the Group in its financial statements for the year ended
31 December 2015 and which will form the basis of the 2016 financial statements.
4. Earnings per share and reconciliation between headline and statutory results
The analysis below provides a reconciliation between the Group's statutory results and the headline results.
Fair
value
adjustments
Amortisation to minority
Six Months Reported of acquired put option Headline
to results intangibles liabilities results
30 June 2016 GBP000 GBP000 GBP000 GBP000
------------------------- --------- ------------ ------------ --------
Revenue 100,219 - - 100,219
-------------------------- --------- ------------ ------------ --------
Operating
profit 7,039 1,637 2,651 11,327
-------------------------- --------- ------------ ------------ --------
Share of results
of associates
& JV 405 - - 405
Finance income 3,797 - (3,628) 169
Finance cost (512) - - (512)
-------------------------- --------- ------------ ------------ --------
Profit before
taxation 10,729 1,637 (977) 11,389
-------------------------- --------- ------------ ------------ --------
Taxation (1,667) (645) - (2,312)
-------------------------- --------- ------------ ------------ --------
Profit for
the year 9,062 992 (977) 9,077
-------------------------- --------- ------------ ------------ --------
Non controlling
interests (968) (403) - (1,371)
-------------------------- --------- ------------ ------------ --------
Profit attributable
to equity holders
of the Group 8,094 589 (977) 7,706
-------------------------- --------- ------------ ------------ --------
BASIC EARNINGS PER SHARE
------------------------------------- ------------ ------------ --------
Weighted average
number of shares
(Thousands) 71,982 71,982
-------------------------- --------- ------------ ------------ --------
Basic EPS 11.24p 10.71p
-------------------------- --------- ------------ ------------ --------
DILUTED EARNINGS
PER SHARE
-------------------------- --------- ------------ ------------ --------
Weighted average
number of shares
(Thousands) as
above 71,982 71,982
-------------------------- --------- ------------ ------------ --------
Add
- Conditional
shares 300 300
-------------------------- --------- ------------ ------------ --------
Total 72,282 72,282
-------------------------- --------- ------------ ------------ --------
Diluted earnings
per share 11.20p 10.66p
-------------------------- --------- ------------ ------------ --------
The Directors believe that the headline results and headline earnings per share provide additional useful information on the underlying performance. The headline result is used for internal performance management, calculating the value of subsidiary convertible shares and minority interest put options. The term headline is not a defined term in IFRS.
The items that are excluded from headline results are the amortisation or impairment of intangible assets (including goodwill and acquired intangibles, but excluding software) acquired in business combinations, changes to deferred and contingent consideration and other acquisition related charges taken to the income statement; impairment of investment in associate; profit/loss on disposal of associates; and income statement impact of put option accounting (whether accounted under IFRS2 or IAS39).
Contingent Fair value
Profit on Loss on acquisition adjustments
Amortisation disposal disposal cost to minority
Six Months Reported of acquired of an of classified put option Headline
to results intangibles associate subsidiary as expense liabilities results
30 June 2015 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------- --------- ------------ --------- ---------- ----------- ----------- --------
Revenue 87,568 - - - - - 87,568
-------------- --------- ------------ --------- ---------- ----------- ----------- --------
Operating
profit 8,326 684 (142) 85 142 200 9,295
-------------- --------- ------------ --------- ---------- ----------- ----------- --------
Share of
results
of associates
& JV 541 - - - - - 541
-------------- --------- ------------ --------- ---------- ----------- ----------- --------
Finance income 154 - - - - - 154
-------------- --------- ------------ --------- ---------- ----------- ----------- --------
Finance cost (618) - - - - 238 (380)
-------------- --------- ------------ --------- ---------- ----------- ----------- --------
Profit before
taxation 8,403 684 (142) 85 142 438 9,610
-------------- --------- ------------ --------- ---------- ----------- ----------- --------
Taxation (1,980) (124) 71 - - - (2,033)
-------------- --------- ------------ --------- ---------- ----------- ----------- --------
Profit for
the year 6,423 560 (71) 85 142 438 7,577
-------------- --------- ------------ --------- ---------- ----------- ----------- --------
Non controlling
interests (1,220) (27) - - - - (1,247) --------------- --------- ------------ --------- ---------- ----------- ----------- ---------- Profit attributable to equity holders of the Group 5,203 533 (71) 85 142 438 6,330 --------------- --------- ------------ --------- ---------- ----------- ----------- ---------- BASIC AND DILUTED EARNINGS PER SHARE* -------------------------- ----------------------- ---------- ----------- ----------- ---------- Weighted average number of shares (Thousands) 70,677 70,677 --------------- --------- ----------------------- ---------- ----------- ----------- ---------- Basic and diluted EPS* 7.36p 8.96p --------------- --------- ----------------------- ---------- ----------- ----------- ----------
* At 30 June 2015 there are no dilutive options, so basic and diluted EPS are the same.
Contingent
Amortisation acquisition
Year ended Reported of acquired Sale of Impairment cost classified Put option Headline
31 December results intangibles associate of Goodwill as expense accounting results
2015 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
----------------- --------- ------------ ---------------- ------------ ---------------- ----------- --------
Revenue 178,928 - - - - - 178,928
------------------ --------- ------------ ---------------- ------------ ---------------- ----------- --------
Operating
profit 14,707 1,940 (217) 889 134 1,125 18,578
------------------ --------- ------------ ---------------- ------------ ---------------- ----------- --------
Share of results
of associates
& JV 2,017 - - - - - 2,017
Finance income 299 - - - - - 299
Finance cost (4,477) - - - - 3,706 (771)
------------------ --------- ------------ ---------------- ------------ ---------------- ----------- --------
Profit before
taxation 12,546 1,940 (217) 889 134 4,831 20,123
------------------ --------- ------------ ---------------- ------------ ---------------- ----------- --------
Taxation (3,386) (541) 71 - - - (3,856)
------------------ --------- ------------ ---------------- ------------ ---------------- ----------- --------
Profit for
the year 9,160 1,399 (146) 889 134 4,831 16,267
------------------ --------- ------------ ---------------- ------------ ---------------- ----------- --------
Non controlling
interests (2,686) (162) - (178) - - (3,026)
------------------ --------- ------------ ---------------- ------------ ---------------- ----------- --------
Profit
attributable
to equity holders
of the Group 6,474 1,237 (146) 711 134 4,831 13,241
------------------ --------- ------------ ---------------- ------------ ---------------- ----------- --------
BASIC EARNINGS PER
SHARE
----------------------------- ------------ ---------------- ------------ ---------------- ----------- --------
Weighted average
number of shares
(Thousands) 71,319 71,319
------------------ --------- ------------ ---------------- ------------ ---------------- ----------- --------
Basic EPS 9.08p 18.57p
------------------ --------- ------------ ---------------- ------------ ---------------- ----------- --------
DILUTED EARNINGS PER
SHARE
----------------------------- ------------ ---------------- ------------ ---------------- ----------- --------
Weighted average
number of
shares
(Thousands)
as above 71,319 71,319
------------------ --------- ------------ ---------------- ------------ ---------------- ----------- --------
Add
- Conditional
shares 300 300
Total 71,619 71,619
------------------ --------- ------------ ---------------- ------------ ---------------- ----------- --------
Diluted earnings
per share 9.04p 18.49p
------------------ --------- ------------ ---------------- ------------ ---------------- ----------- --------
5. SEGMENTAL INFORMATION
This segmental information is reconciled to the statutory results in Note 4.
Middle
East Asia and
Six months to UK Europe and Africa Australasia Americas Total
30 June 2016 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------------ ------- ---------- ------------- ------------ -------------- -------
Revenue 40,595 12,371 4,725 22,787 19,741 100,219
------------------------- ------- ---------- ------------- ------------ -------------- -------
Operating profit
excluding Group
costs 5,270 1,999 371 2,720 3,378 13,738
Group costs (2,188) (44) - (160) (19) (2,411)
------------------------- ------- ---------- ------------- ------------ -------------- -------
Operating profit 3,082 1,955 371 2,560 3,359 11,327
------------------------- ------- ---------- ------------- ------------ -------------- -------
Share of results
of associates
and JV 425 20 - 25 (65) 405
Financial income
and cost (142) (22) 23 38 (240) (343)
------------------------- ------- ---------- ------------- ------------ -------------- -------
Profit before taxation 3,365 1,953 394 2,623 3,054 11,389
------------------------- ------- ---------- ------------- ------------ -------------- -------
Taxation (685) (661) (211) (722) (33) (2,312)
------------------------- ------- ---------- ------------- ------------ -------------- -------
Profit for the
period 2,680 1,292 183 1,901 3,021 9,077
Non controlling
interests (404) (294) (61) (326) (286) (1,371)
------------------------- ------- ---------- ------------- ------------ -------------- -------
Profit attributable
to equity shareholders
of the Group 2,276 998 122 1,575 2,735 7,706
------------------------- ------- ---------- ------------- ------------ -------------- -------
HEADLINE BASIC
EPS 10.71p
------------------------- ------- ---------- ------------- ------------ -------------- -------
Non cash costs included
in headline operating profit:
Depreciation &
Amortisation of
software (633) (86) (77) (168) (255) (1,175)
Share option charges - - - - - -
========================= ======= ========== ============= ============ ============== =======
OFFICE LOCATION London Paris Abu Dhabi Sydney Los Angeles
Berlin Dubai Melbourne São
Madrid Beirut New Delhi Paulo
Geneva Istanbul Kuala New York
Milan Cape Lumpur San Francisco
Moscow Town Hong Kong Chicago
Stockholm Johannesburg Shanghai
Tel Aviv Tokyo
Singapore
Bangkok
========================= ======= ========== ============= ============ ============== =======
Middle
East Asia and
Six months to UK Europe and Africa Australasia Americas Total
30 June 2015 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------------ ------- ---------- ------------- ------------ -------------- -------
Revenue 41,111 10,427 4,076 21,930 10,024 87,568
------------------------- ------- ---------- ------------- ------------ -------------- -------
Operating profit
excluding Group
costs 5,837 1,327 278 2,621 1,731 11,794
Group costs (2,281) (36) - (161) (21) (2,499)
------------------------- ------- ---------- ------------- ------------ -------------- -------
Operating profit 3,556 1,291 278 2,460 1,710 9,295
------------------------- ------- ---------- ------------- ------------ -------------- -------
Share of results
of associates
and JV 347 (6) - 78 122 541
Financial income
and cost (267) (23) (2) 47 19 (226)
------------------------- ------- ---------- ------------- ------------ -------------- -------
Profit before taxation 3,636 1,262 276 2,585 1,851 9,610
------------------------- ------- ---------- ------------- ------------ -------------- -------
Taxation (500) (387) (47) (779) (320) (2,033)
------------------------- ------- ---------- ------------- ------------ -------------- -------
Profit for the
period 3,136 875 229 1,806 1,531 7,577
Non controlling
interests (538) (185) (82) (235) (207) (1,247)
------------------------- ------- ---------- ------------- ------------ -------------- -------
Profit attributable
to equity shareholders
of the Group 2,598 690 147 1,571 1,324 6,330
------------------------- ------- ---------- ------------- ------------ -------------- -------
HEADLINE BASIC
EPS 8.96p
------------------------- ------- ---------- ------------- ------------ -------------- -------
Non cash costs included
in headline operating profit:
Depreciation &
Amortisation of
software (703) (119) (94) (131) (123) (1,170)
Share option charges (30) - - - - (30)
========================= ======= ========== ============= ============ ============== =======
OFFICE LOCATION London Paris Abu Dhabi Sydney Los Angeles
Berlin Beirut Melbourne São
Madrid Istanbul New Delhi Paulo
Geneva Cape Kuala New York
Milan Town Lumpur San Francisco
Moscow Johannesburg Hong Kong
Stockholm Tel Aviv Shanghai
Tokyo
Singapore
Bangkok
========================= ======= ========== ============= ============ ============== =======
Middle
East Asia and
Year ended UK Europe and Africa Australasia Americas Total
31 December 2015 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------------ ------- ---------- ------------- ------------ -------------- -------
Revenue 84,159 22,745 8,549 42,103 21,372 178,928
------------------------- ------- ---------- ------------- ------------ -------------- -------
Operating profit
excluding Group
costs 11,782 3,668 1,049 4,187 3,253 23,939
Group costs (4,970) (83) - (308) - (5,361)
------------------------- ------- ---------- ------------- ------------ -------------- -------
Operating profit 6,812 3,585 1,049 3,879 3,253 18,578
------------------------- ------- ---------- ------------- ------------ -------------- -------
Share of results
of associates
and JV 809 25 - 325 858 2,017
Financial income
and cost (527) (60) (17) 69 63 (472)
------------------------- ------- ---------- ------------- ------------ -------------- -------
Profit before taxation 7,094 3,550 1,032 4,273 4,174 20,123
------------------------- ------- ---------- ------------- ------------ -------------- -------
Taxation (506) (1,190) (268) (1,209) (683) (3,856)
------------------------- ------- ---------- ------------- ------------ -------------- -------
Profit for the
year 6,588 2,360 764 3,064 3,491 16,267
Non controlling
interests (1,169) (658) (372) (477) (350) (3,026)
------------------------- ------- ---------- ------------- ------------ -------------- -------
Profit attributable
to equity shareholders
of the Group 5,419 1,702 392 2,587 3,141 13,241
------------------------- ------- ---------- ------------- ------------ -------------- -------
HEADLINE BASIC
EPS 18.57p
------------------------- ------- ---------- ------------- ------------ -------------- -------
Non cash costs included
in operating profit:
Depreciation &
Amortisation of
software (1,275) (259) (161) (260 (271) (2,226)
Share option charges (5) - - - - (5)
========================= ======= ========== ============= ============ ============== =======
OFFICE LOCATION London Paris Abu Dhabi Sydney Los Angeles
Berlin Beirut Melbourne São
Madrid Istanbul New Delhi Paulo
Geneva Tel Aviv Kuala New York
Milan Cape Lumpur San Francisco
Moscow Town Hong Kong
Stockholm Johannesburg Beijing
Shanghai
Tokyo
Singapore
Bangkok
========================= ======= ========== ============= ============ ============== =======
6. Finance Income
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2016 2015 2013
GBP000 GBP000 GBP000
-------------------------- ---------- ---------- ------------
Bank interest receivable 92 98 181
Other interest receivable 77 56 118
--------------------------- ---------- ---------- ------------
Total finance income 169 154 299
--------------------------- ---------- ---------- ------------
Fair value adjustments
to minority shareholder
put option liabilities 3,628 - -
--------------------------- ---------- ---------- ------------
Total 3,797 154 299
--------------------------- ---------- ---------- ------------
7. Finance COsts
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2016 2015 2015
GBP000 GBP000 GBP000
------------------------- ---------- ---------- ------------
Finance costs
Bank interest payable (510) (366) (766)
Other interest payable (2) (14) (5)
-------------------------- ---------- ---------- ------------
Total interest payable (512) (380) (771)
-------------------------- ---------- ---------- ------------
Fair value adjustments
to minority shareholder
put option liabilities - (238) (3,706) Total (512) (618) (4,477) -------------------------- ---------- ---------- ------------ 8. Taxation
Income tax expenses are recognised based on management's estimate of the average annual headline income tax expected for the full financial year.
The estimated headline effective annual tax rate (excluding associates) used for the period to 30 June 2016 is 21.2% (30 June 2015: 28.3%). The decrease in the headline tax rate is due to reduced losses in subsidiaries that we were investing in, and the reduced UK tax rate.
The estimated effective annual tax rate for the period to 30 June 2016 is 17.4% (30 June 2015: 132.1%). The difference between the headline and statutory tax rates is caused by a difference in the profit before tax due to the impact of fair value adjustments to minority shareholder put option liabilities that have no effect on the tax charge.
9. Dividends
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2016 2015 2015
GBP000 GBP000 GBP000
-------------------------- ---------- ---------- ------------
2014 final dividend 4.87p
(2013: 4.24p) - - 3,504
2015 interim dividend
1.61p (2014: 1.40p) - - 1,158
- - 4,662
-------------------------- ---------- ---------- ------------
The directors propose an interim dividend of 1.85p per share (2015: 1.61p per share) payable on
11 November 2016 to shareholders who are on the register at 28 October 2016. This interim dividend, amounting to GBP1,351k (2015: GBP1,158k) has not been recognised as a liability in this half-yearly financial report.
10. Cash consumed by acquisitions
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2016 2015 2015
GBP000 GBP000 GBP000
--------------------------- ---------- ---------- ------------
Acquisitions
Initial cash consideration
paid (14,476) (577) (346)
Cash and cash equivalents
acquired 3,443 13 267
(11,033) (564) (79)
--------------------------- ---------- ---------- ------------
Purchase of associates - (3,349) (3,765)
----------------------------- ---------- ---------- ------------
(11,033) (3,914) (3,844)
--------------------------- ---------- ---------- ------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UAOSRNSAKUAR
(END) Dow Jones Newswires
September 22, 2016 02:00 ET (06:00 GMT)
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