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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| M&c Saatchi Plc | LSE:SAA | London | Ordinary Share | GB00B01F7T14 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 182.00 | 181.50 | 184.50 | 184 | 08:51:14 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Advertising Agencies | 462.53M | 90k | 0.0007 | 2,600.00 | 222.51M |
From Apr 2019 to Apr 2024
TIDMSAA
RNS Number : 6057Z
M&C Saatchi PLC
16 March 2017
M&C SAATCHI PLC
FINAL RESULTS
YEARED
31 DECEMBER 2016
16 March 2017
M&C Saatchi PLC
Final Results for the year ended 31 December 2016
16 March 2017 Financial Highlights 2016 Growth versus 2015 Revenue GBP225.3m GBP213.1m + 26% (2015: GBP178.9m) Revenue in constant GBP195.6m + 19% currencies + 9% Like-for-like revenue Operating Profit GBP23.0m + 24% (2015: GBP18.6m) Profit Before Tax GBP23.7m + 18% (2015: GBP20.1m) Profit After Tax and GBP15.4m + 17% (2015: GBP13.2m) MI 21.07p + 13% (2015: 18.57p) EPS Full-Year Dividend 8.29p + 15% (2015: 7.21p)
The highlights are headline results, see note on next page for definition.
Operational Highlights
-- Record results in terms of both revenue and earnings -- The Global network performed well across all geographies:
-- UK: like-for-like revenues up 5%, with CRM, Sport & Entertainment and Mobile continuing to perform particularly positively; operating profit was down 12%, impacted by the previously announced restructuring costs in the advertising agency
-- Europe: like-for-like revenues up 5%, operating profit increased 10% -- Middle East and Africa: like-for-like revenues up 23%, operating profit up 4% -- Asia and Australasia: like-for-like revenues up 13%, operating profit was up 37%
-- Americas: constant currency revenues up 97% following New York investments and like-for-like revenues up 18%, operating profit up 118%
-- Final dividend increased 15% to 6.44p, full-year dividend up 15% to 8.29p
David Kershaw, Chief Executive, said:
"2016 was an outstanding year for M&C Saatchi. We continue to roll out our proven strategy of winning new business and starting new businesses and see positive momentum across our global network and business channels.
The year has started well and we are confident that we will continue to make good progress in 2017 and beyond."
For further information please call:
M&C Saatchi +44 (0)20-7543-4500
David Kershaw
Tulchan Communications +44 (0)20-7353-4200
Andrew Grant
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 associates and investments; profit and loss on disposal of associates; and the income statement impact of put option accounting and share based payment charges. See Note 3 for a 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 acquisitions and disposals during 2016. See Note 4 for for a reconciliation between the Group's headline results and like-for-like results.
SUMMARY OF RESULTS
2016 saw record headline results with both excellent revenue momentum and earnings growth. Actual revenues grew by 26%, with constant currency revenues increasing 19%, whilst we increased like-for-like revenues 9%. We returned a headline operating margin of 10.2%, down from 10.4% in 2015, with the previously announced UK restructuring costs causing the drag. If these are excluded then the 2016 headline operating margin increased to 10.9%. The headline profit before tax advanced 18% to GBP23.7m and headline net earnings rose 17%.
UK
Like-for-like revenue in the UK was up 5%, with CRM, Sport & Entertainment, PR and Mobile continuing to perform particularly positively. We experienced a commendable run of account wins across our group of businesses in the year, including Virgin Red, the Home Office, NN Investment Partners, E.ON, PHE (Antimicrobial Resistance), the Rail Delivery Group, the Civil Aviation Authority and the Department of Work and Pensions.
M&C Saatchi Mobile was awarded Digital Agency of the Year and Most Effective Media Agency of the Year, whilst M&C Saatchi Sport & Entertainment won Agency of the Year (for the fifth time). We are launching Re, our successful Australian brand identity unit, in the UK in the first quarter of 2017.
The UK headline operating profit was 12% down on 2015 but included previously announced restructuring costs of GBP1.6m in the advertising agency unit, which if discounted, meant operating profit actually grew 2% on 2015. The headline operating margin decreased to 11.7% compared with 2015's 14.0% but if the restructuring costs are excluded then the margin came in at 13.6%. These margins exclude the impact of Group recharges. The restructure is complete and the new management team is in place and making good progress.
Europe
European like-for-like revenues increased 5% year on year. Headline operating profit was up 10%, with a headline operating margin of 15.1% (2015: 16.1%).
Our Stockholm office kept up its strong new business record and won the TV and broadband supplier Com Hem. Both Germany and Italy continue to shine, with Italy winning E.ON. In France, advertising was still slow but our agency was appointed by YouTube and Google for some projects and continues to grow through diversification.
Our office in Spain is much improved, winning Codorniu and Huawei, and as a consequence we are increasing our shareholding from 24% to 51%. We are starting a sponsorship company in Madrid as well as opening Clear in Berlin.
Middle East and Africa
Like-for-like revenues in the Middle East and Africa were up 23%.
South Africa finished strongly, having lost their Edgars client mid-year but subsequently picked up the Sun International and Strongbow accounts. We are making a small acquisition in Johannesburg of 51% of Levergy, a sport and entertainment company, which will capitalise on the large South African sports market. Abu Dhabi lost Etihad and has subsequently been rebuilding revenues. Our Dubai office is growing steadily, as is Tel Aviv.
Operating profit in the region was up 4% and the headline operating margin dipped to 9.3% from 12.3% in 2015.
Asia and Australia
In Asia and Australia, like-for-like revenue was up 13% year on year.
Australia had another good year, winning Woolworths (without a pitch), BBQ Galore, eBay and Tabcorp. They were awarded 'Most Innovative Communications Company in Australia', reflecting some of their ground breaking and pioneering work for their clients. In February of this year, we acquired 51% of Bohemia, a media buying and planning operation. This add on positions us well for satisfying the needs of our clients, who are increasingly seeking a closer relationship between their media agency and the content and creative providers. We also are launching The Source, our successful UK research operation, in Melbourne.
Our associate in China, aeiou, had a good second half. Malaysia is still excelling and won the KLIA and Pr1ma accounts. Singapore is developing positively and won Shell and Bridgestone.
Our Mobile operation continues to thrive in the region and we added new offices in New Delhi and Bangalore to work alongside our mobile offices in Singapore and Sydney.
The headline regional operating margin was 11.0% (2015: 9.9%), with the headline operating profit ahead an impressive 37% on 2015.
Americas
Constant currency revenues increased 97%, with like-for-like up 18%. With the acquisitions' contribution, there was a very good 118% increase in operating profit to GBP7.0m and a headline operating margin of 15.4% (2015: 15.2%).
Mobile are performing exceptionally well and building a formidable 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 of last year and then to 67% in February of this. Also in March last year, we acquired 51% of MCD Partners in New York and Chicago, who specialise in customer digital experience. This business is progressing well.
Our office in Los Angeles lost the UGG account in the first quarter but later in the year won some projects for Reebok and Fox. Brazil's macro-economic factors and trading remained tough, and appropriately we made an impairment charge of GBP3.7m for our Santa Clara associate.
Both Clear and Sport & Entertainment are planning to open in Los Angeles in the first half and we are looking to open an office in Mexico, where the management of our Madrid office has a strong network of clients and contacts.
Outlook
2016 was an outstanding year for M&C Saatchi. We continue to roll out our proven strategy of winning new business and starting new businesses and see positive momentum across our global network and business channels.
The year has started well and we are confident that we will continue to make good progress in 2017 and beyond.
Consolidated income statement
Hot Features
Premium
Total
2016 2015
Year ended 31 December Note GBP000 GBP000
-------------------------------- ----- ---------- ----------
Billings 3 458,180 375,107
---------------------------------- ----- ---------- ----------
Revenue 3 225,387 178,928
Operating costs 3 (218,738) (164,221)
---------------------------------- ----- ---------- ----------
Operating profit 3 6,649 14,707
---------------------------------- ----- ---------- ----------
Share of results of associates
and joint ventures 5 1,530 2,017
Finance income 6 440 299
Finance costs 7 (1,828) (4,477)
---------------------------------- ----- ---------- ----------
Profit before taxation 3 6,791 12,546
---------------------------------- ----- ---------- ----------
Taxation 8 (3,451) (3,386)
---------------------------------- ----- ---------- ----------
Profit for the year 3,340 9,160
---------------------------------- ----- ---------- ----------
Attributable to:
Equity shareholders of
the Group 3 144 6,474
Non-controlling interests 3 3,196 2,686
---------------------------------- ----- ---------- ----------
Profit for the year 3 3,340 9,160
---------------------------------- ----- ---------- ----------
Earnings per share
Basic (pence) 3 0.20p 9.08p
Diluted (pence) 3 0.19p 9.04p
---------------------------------- ----- ---------- ----------
Headline results*
------------------------------- ------- -------
Operating profit 23,037 18,578
Profit before tax 23,776 20,123
Profit after tax attributable
to equity
shareholders of the Group 15,423 13,241
Basic earnings per share
(pence) 21.07p 18.57p
Diluted earnings per share
(pence) 20.55p 18.49p
---------------------------------- ------- -------
* The reconciliation of headline to statutory results above can be found in note 3.
The notes on pages 12 to 21 form part of these preliminary statements.
CONSOLIDATED STATEMENT OF other COMPREHENSIVE INCOME
Total Total
2016 2015
Year ended 31 December GBP000 GBP000
-------------------------------------------------------- -------- --------
Profit for the year 3,340 9,160
-------------------------------------------------------- -------- --------
Other comprehensive income*
Exchange differences on translating foreign operations
before tax 6,754 (1,316)
Other comprehensive income for the year net of tax 6,754 (1,316)
Total comprehensive income for the year 10,094 7,844
-------------------------------------------------------- -------- --------
Total comprehensive income attributable to:
Equity shareholders of the Group 6,898 5,158
Non-controlling interests 3,196 2,686
Total comprehensive income for the year 10,094 7,844
-------------------------------------------------------- -------- --------
* All items in consolidated statement of comprehensive income will be reclassified to the income statement.
The notes on pages 12 to 21 form part of these preliminary statements.
CONSOLIDATED balance sheet
2016 2015
At 31 December GBP000 GBP000
--------------------------------------------- ---------- ----------
Non-current assets
Intangible assets 51,004 28,286
Investments in associates 19,277 24,811
Plant and equipment 10,619 8,197
Deferred tax assets 3,112 1,476
Other non-current assets 7,455 8,349
---------------------------------------------- ---------- ----------
91,467 71,119
--------------------------------------------- ---------- ----------
Current assets
Trade and other receivables 109,824 87,692
Current tax assets 1,057 844
Cash and cash equivalents 32,222 32,344
---------------------------------------------- ---------- ----------
143,103 120,880
--------------------------------------------- ---------- ----------
Current liabilities
Bank overdraft - (98)
Trade and other payables (115,886) (94,533)
Current tax liabilities (1,186) (1,204)
Other financial liabilities (3,670) (3,155)
Deferred and contingent consideration - (1,792)
Minority shareholder put option liabilities (20,216) (16,738)
---------------------------------------------- ---------- ----------
(140,958) (117,520)
--------------------------------------------- ---------- ----------
Net current assets 2,145 3,360
---------------------------------------------- ---------- ----------
Total assets less current liabilities 93,612 74,479
---------------------------------------------- ---------- ----------
Non-current liabilities
Deferred tax liabilities (380) (30)
Other financial liabilities (28,277) (23,594)
Minority shareholder put option liabilities (12,950) (7,626)
Other non-current liabilities (2,608) (1,208)
---------------------------------------------- ---------- ----------
(44,215) (32,458)
--------------------------------------------- ---------- ----------
Total net assets 49,397 42,021
---------------------------------------------- ---------- ----------
2016 2015
At 31 December GBP000 GBP000
-------------------------------------------- --------- ---------
Equity
Share capital 749 727
Share premium 24,099 17,338
Merger reserve 31,592 31,592
Treasury reserve (792) (792)
Minority interest put option reserve (20,598) (12,595)
Non-controlling interest acquired (13,122) (9,233)
Foreign exchange reserve 4,770 (1,984)
Retained earnings 15,871 12,673
--------------------------------------------- --------- ---------
Equity attributable to shareholders of the
Group 42,569 37,726
--------------------------------------------- --------- ---------
Non-controlling interest 6,828 4,295
--------------------------------------------- --------- ---------
Total equity 49,397 42,021
--------------------------------------------- --------- ---------
The notes on pages 12 to 21 form part of these preliminary statements.
CONSOLIDATED STATEMENT OF changes in equity
MI put Non-controlling Foreign Non-controlling
Share Share Merger Treasury option interest exchange Retained interest
capital premium reserve reserve reserve acquired reserves earnings Subtotal in equity Total
Note 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
Acquisitions - - - - - - - - - 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 - - - - 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 9 - - - - - - - (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 January 2016 727 17,338 31,592 (792) (12,595) (9,233) (1,984) 12,673 37,726 4,295 42,021 ------------------ ----- -------- -------- -------- --------- --------- ---------------- --------- --------- --------- ---------------- -------- Acquisitions - - - - (10,249) - - - (10,249) 1,919 (8,330) Acquisitions of minority interest 4 1,364 - - - (1,222) - - 146 - 146 Exercise of put options 18 5,397 - - 2,366 (2,366) - - 5,415 (47) 5,368 Disposals - - - - - - - - - (10) (10) Exchange rate movements - - - - (120) (301) - - (421) 627 206 Issue of shares to minorities - - - - - - - - - 14 14 Issue of options - - - - - - - 515 515 - 515 Share option charge - - - - - - - 7,997 7,997 - 7,997 Dividends 9 - - - - - - - (5,458) (5,458) (3,166) (8,624) ------------------ ----- -------- -------- -------- --------- --------- ---------------- --------- --------- --------- ---------------- -------- Total transactions with owners 22 6,761 - - (8,003) (3,889) - 3,054 (2,055) (663) (2,718) Total comprehensive income for the year - - - - - - 6,754 144 6,898 3,196 10,094 ------------------ ----- -------- -------- -------- --------- --------- ---------------- --------- --------- --------- ---------------- -------- At 31 December 2016 749 24,099 31,592 (792) (20,598) (13,122) 4,770 15,871 42,569 6,828 49,397 ------------------ ----- -------- -------- -------- --------- --------- ---------------- --------- --------- --------- ---------------- --------
The notes on pages 12 to 21 form part of these preliminary statements.
CONSOLIDATED CASH FLOW
2016 2015
Year ended 31 December GBP000 GBP000
---------------------------------------------------- ---------- ----------
Revenue 225,387 178,928
Operating expenses (218,738) (164,221)
Operating profit 6,649 14,707
----------------------------------------------------- ---------- ----------
Adjustments for:
Depreciation of plant and equipment 2,668 2,128
Loss on sale of plant and equipment 542 36
Loss on sale of software intangibles 10 12
Profit on disposal associate - (217)
Fair value revaluation of associate on step 859 -
acquisition
Impairment and amortisation of acquired intangible
assets 2,324 1,940
Impairment of associate and investments 4,389 -
Impairment of goodwill - 889
Amortisation of capitalised software intangible
assets 354 98
Equity settled share based payment expenses 7,997 1,125
----------------------------------------------------- ---------- ----------
Operating cash before movements in working
capital 25,792 20,718
----------------------------------------------------- ---------- ----------
Increase in trade and other receivables (22,334) (17,192)
increases in trade and other payables 19,342 18,018
----------------------------------------------------- ---------- ----------
Cash generated from operations 22,800 21,544
Tax paid (4,073) (5,326)
----------------------------------------------------- ---------- ----------
Net cash from operating activities 18,727 16,218
----------------------------------------------------- ---------- ----------
Investing activities
Acquisitions of subsidiaries net of cash
acquired (12,822) (79)
Disposal of subsidiaries net of cash divested (263) -
Acquisitions of associates - (3,765)
Disposal of associates - 325
Acquisitions of investments (1,056) (1,366)
Proceeds from sale of plant and equipment 32 7
Purchase of intangibles - (327)
Purchase of plant and equipment (3,873) (1,970)
Purchase of capitalised software (34) (158)
Dividends received from associates 177 1,173
Interest received 440 299
----------------------------------------------------- ---------- ----------
Net cash consumed investing activities (17,399) (5,861)
----------------------------------------------------- ---------- ----------
Net cash from operating and investing activities 1,328 10,357
----------------------------------------------------- ---------- ----------
The notes on pages 12 to 21 form part of these preliminary statements.
2016 2015
Year ended 31 December Note GBP000 GBP000
-------------------------------------------------- ----- --------- ---------
Net cash from operating and investing activities 1,328 10,357
-------------------------------------------------- ----- --------- ---------
Financing activities
Dividends paid to equity holders of the Company 9 (5,458) (4,662)
Dividends paid to non-controlling interest (3,166) (3,591)
Issue of shares to minorities 514 15
Repayment of finance leases (36) (31)
Inception of invoice discounting 4,455 3,130
Repayment of invoice discounting (3,943) -
Inception of bank loans 11,433 6,349
Repayment of bank loans (7,191) (968)
Interest paid (1,230) (771)
-------------------------------------------------- ----- --------- ---------
Net cash consumed by financing activities (4,622) (529)
-------------------------------------------------- ----- --------- ---------
Net (decrease)/increase in cash and cash
equivalents (3,294) 9,828
-------------------------------------------------- ----- --------- ---------
Effect of exchange rate fluctuations on cash
held 3,270 (903) Cash and cash equivalents at the beginning of the year 32,246 23,321 Cash and cash equivalents at the end of the year 32,222 32,246 -------------------------------------------------- ----- --------- --------- Bank loans and borrowings* (28,582) (23,800) -------------------------------------------------- ----- --------- --------- NET CASH** 3,640 8,446 -------------------------------------------------- ----- --------- --------- CAPITAL -------------------------------------------------- ----- --------- --------- TOTAL MARKET CAPITALISATION (at 31 December: 380.0p; 326.50p) 284,811 237,414 -------------------------------------------------- ----- --------- --------- GEARING RATIO** nil nil -------------------------------------------------- ----- --------- ---------
* Bank loans and borrowings excludes GBP3,645k (2015: GBP3,130k) of Invoice discounting.
** Gearing ratio and net cash are not defined under IFRS.
The notes on pages 12 to 21 form part of these preliminary statements.
Notes to the preliminary statements
Year ended 31 December 2016
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 is listed on the AIM market of the London Stock Exchange.
These 2016 preliminary statements were approved for issue on 15 March 2017.
The financial information set out below does not constitute the company's statutory accounts for 2015 or 2016. Statutory accounts for the years ended 31 December 2015 and 31 December 2016 have been reported on by the Independent Auditors. The Independent Auditors' Reports on the Annual Report and Financial Statements for 2015 and 2016 were unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
Statutory accounts for the year ended 31 December 2015 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 December 2016 will be delivered to the Registrar in due course.
Headline results
The Directors believe that the headline results and headline earnings per share provide additional useful information on the underlying performance of the business. 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. Note 3 reconciles reported to headline results.
Our segmental reporting (note 4) reflects our headline results in accordance with IFRS 8.
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 associates and investments; profit and loss on disposal of associates; and the income statement impact of put option accounting and share based payment charges. See Note 3 for a reconciliation between the Group's statutory results and the headline results.
Notes to the preliminary statements
Continued
2. ACCOUNTING POLICIES
The financial information set out in these final results has been prepared using the recognition and measurement principles of International Accounting Standards, International Financial Reporting Standards and Interpretations adopted for use in the European Union (collectively Adopted IFRSs). The accounting policies adopted in these final results have been consistently applied to all the years presented and are consistent with the policies used in the preparation of the statutory accounts for the period ended 31 December 2016. The principal accounting policies adopted are unchanged from those used in the preparation of the statutory accounts for the period ended 31 December 2015.
Notes to the preliminary statements
Continued
3. Headline results and earnings per share
The analysis below provides a reconciliation between the Group's statutory results and the headline results.
Revaluation
of an
Amortisation Impairment Provision associate
Year ended of acquired of against on Acquisition Put option Headline
31 December 2016 intangibles associate investments acquisition related accounting* results
2016 Note GBP000 GBP000 GBP000 GBP000 GBP000 remuneration GBP000 GBP000
----------------- ----- -------- ------------- ----------- ------------ ------------ ------------- ------------ ---------
Billings 4 458,180 - - - - - 458,180
----------------- ----- -------- ------------- ----------- ------------ ------------ ------------- ------------ ---------
Revenue 4 225,387 - - - - - 225,387
----------------- ----- -------- ------------- ----------- ------------ ------------ ------------- ------------ ---------
Operating
profit 4 6,649 2,324 3,738 651 859 819 7,997 23,037
----------------- ----- -------- ------------- ----------- ------------ ------------ ------------- ------------ ---------
Share of
results
of associates
and JV 5 1,530 - - - - - 1,530
Finance
income 6 440 - - - - - 440
Finance
cost 7 (1,828) - - - - 597 (1,231)
----------------- ----- -------- ------------- ----------- ------------ ------------ ------------- ------------ ---------
Profit before
taxation 4 6,791 2,324 3,738 651 859 819 8,594 23,776
----------------- ----- -------- ------------- ----------- ------------ ------------ ------------- ------------ ---------
Taxation 8 (3,451) (659) - - - - (4,110)
----------------- ----- -------- ------------- ----------- ------------ ------------ ------------- ------------ ---------
Profit for
the year 3,340 1,665 3,738 651 859 819 8,594 19,666
----------------- ----- -------- ------------- ----------- ------------ ------------ ------------- ------------ ---------
Non-controlling
interests (3,196) (256) - - - (540) (251) (4,243)
----------------- ----- -------- ------------- ----------- ------------ ------------ ------------- ------------ ---------
Profit
attributable
to equity
holders
of the Group 144 1,409 3,738 651 859 279 8,343 15,423
----------------- ----- -------- ------------- ----------- ------------ ------------ ------------- ------------ ---------
* These values represent share based payment charges (GBP7,997k) and fair value adjustments to minority put option liabilities (GBP597k), the non-controlling interest charge is the additional charge had the put option not been accounted for under IFRS2 conditional share awards.
Notes to the preliminary statements
Continued
3. Headline results and earnings per share continued
Acquisition
of
remaining
shares
Amortisation in loss Acquisition
Year ended of acquired making Impairment related Put option Headline
31 December 2015 intangibles associate of Goodwill remuneration accounting* results
2015 Note GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
----------------- ----- -------- ------------- ------------ ------------ ------------- ------------- ---------
Billings 4 375,107 - - - - - 375,107
----------------- ----- -------- ------------- ------------ ------------ ------------- ------------- ---------
Revenue 4 178,928 - - - - - 178,928
----------------- ----- -------- ------------- ------------ ------------ ------------- ------------- ---------
Operating profit 4 14,707 1,940 (217) 889 134 1,125 18,578
----------------- ----- -------- ------------- ------------ ------------ ------------- ------------- --------- Share of results of associates and JV 5 2,017 - - - - - 2,017 Finance income 6 299 - - - - - 299 Finance cost 7 (4,477) - - - - 3,706 (771) ----------------- ----- -------- ------------- ------------ ------------ ------------- ------------- --------- Profit before taxation 4 12,546 1,940 (217) 889 134 4,831 20,123 ----------------- ----- -------- ------------- ------------ ------------ ------------- ------------- --------- Taxation 8 (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 ----------------- ----- -------- ------------- ------------ ------------ ------------- ------------- ---------
* These values represent share based payment charges (GBP1,125k) and fair value adjustments to minority put option liabilities (GBP3,706k).
Notes to the preliminary statements
Continued
3. Headline results and earnings per share continued
Basic and diluted earnings per share are calculated by dividing profit attributable to equity holders of the Group by the weighted average number of shares in issue during the year.
Headline
Year ended 2016 2016
31 December 2016 GBP000 GBP000
-------------------------------------------- -------- ---------
Profit attributable to equity shareholders
of the Group 144 15,423
--------------------------------------------- -------- ---------
Basic earnings per share
-------------------------------------------- -------- ---------
Weighted average number of shares
(thousands) 73,193 73,193
----------------------------------------------- -------- ---------
Basic EPS 0.20p 21.07p
----------------------------------------------- -------- ---------
Diluted earnings per share
-------------------------------------------- -------- ---------
Weighted average number of shares
(thousands) as above 73,193 73,193
Add
- Conditional shares 1,867 1,867
Total 75,060 75,060
----------------------------------------------- -------- ---------
Diluted earnings per share 0.19p 20.55p
----------------------------------------------- -------- ---------
Headline
Year ended 2015 2015
31 December 2015 GBP000 GBP000
-------------------------------------------- -------- ---------
Profit attributable to equity shareholders
of the Group 6,474 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
----------------------------------------------- -------- ---------
Notes to the preliminary statements
Continued
4. Segmental information
Segmental and headline income statement
Middle
East Asia and
Year ended UK Europe and Africa Australia Americas Total
31 December 2016 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------------------------- -------- ----------- ------------- ----------- --------------- --------
Billings 154,844 38,504 22,810 88,665 153,357 458,180
-------------------------------- -------- ----------- ------------- ----------- --------------- --------
Revenue 88,504 26,685 11,673 52,531 45,994 225,387
-------------------------------- -------- ----------- ------------- ----------- --------------- --------
Operating profit excluding
Group costs 10,398 4,028 1,085 5,754 7,119 28,384
-------------------------------- -------- ----------- ------------- ----------- --------------- --------
Group costs (4,879) (87) - (343) (38) (5,347)
-------------------------------- -------- ----------- ------------- ----------- --------------- --------
Operating profit 5,519 3,941 1,085 5,411 7,081 23,037
-------------------------------- -------- ----------- ------------- ----------- --------------- --------
Share of results of associates
and JV 1,323 (3) - 290 (80) 1,530
Financial income and
cost (343) (43) 43 124 (572) (791)
-------------------------------- -------- ----------- ------------- ----------- --------------- --------
Profit before taxation 6,499 3,895 1,128 5,825 6,429 23,776
-------------------------------- -------- ----------- ------------- ----------- --------------- --------
Taxation (811) (1,350) (362) (1,458) (129) (4,110)
-------------------------------- -------- ----------- ------------- ----------- --------------- --------
Profit for the year 5,688 2,545 766 4,367 6,300 19,666
Non-controlling interests (1,320) (494) (326) (844) (1,259) (4,243)
-------------------------------- -------- ----------- ------------- ----------- --------------- --------
Profit attributable to
equity shareholders of
the Group 4,368 2,051 440 3,523 5,041 15,423
-------------------------------- -------- ----------- ------------- ----------- --------------- --------
Headline basic EPS 21.07p
-------------------------------- -------- ----------- ------------- ----------- --------------- --------
Non-cash costs included in headline
operating profit:
------------------------------------------------------- ------------- ----------- --------------- --------
Depreciation 1,364 242 185 329 548 2,668
Amortisation of software (268) (62) (9) (13) (2) (354)
Share option charges - - - - - -
-------------------------------- -------- ----------- ------------- ----------- --------------- --------
Office location London Paris Johannesburg Sydney New York
Milan Cape Town Melbourne Chicago
Berlin Abu Dhabi New Delhi Los Angeles
Madrid Dubai Bangalore San Francisco
Geneva Beirut Islamabad São
Stockholm Tel Aviv Hong Kong Paulo
Moscow Shanghai
Istanbul Tokyo
Kuala
Lumpur
Bangkok
Singapore
-------------------------------- -------- ----------- ------------- ----------- --------------- --------
Segmental results are reconciled to the income statement in note 3. Our segmental and headline results are one and the same. The above segments reflect the fact that our business is run on an operating unit basis. In accordance with IFRS 8 paragraph 12, we have aggregated our operating units into regional segments.
Notes to the preliminary statements
Continued
4. Segmental information continued
Segmental and headline income statement
Middle
East Asia and
Year ended UK Europe and Africa Australia Americas Total
31 December 2015 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------------------------- -------- ----------- ------------- ----------- --------------- --------
Billings 155,226 37,668 18,965 68,140 95,108 375,107
-------------------------------- -------- ----------- ------------- ----------- --------------- --------
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 headline
operating profit:
------------------------------------------------------- ------------- ----------- --------------- --------
Depreciation (1,269) (208) (145) (242) (267) (2,131)
Amortisation of software (9) (51) (16) (18) (4) (98)
Share option charges (5) - - - - (5)
-------------------------------- -------- ----------- ------------- ----------- --------------- --------
Office location London Paris Johannesburg Sydney New York
Milan Cape Town Melbourne Los Angeles
Berlin Abu Dhabi New Delhi San Francisco
Madrid Beirut Hong Kong São
Geneva Tel Aviv Shanghai Paulo
Stockholm Tokyo
Moscow Kuala
Istanbul Lumpur
Bangkok
Singapore
-------------------------------- -------- ----------- ------------- ----------- --------------- --------
Notes to the preliminary statements
Continued
4. Segmental information continued
Segmental income statement translated at 2015 exchange rates
It is normal practice in our industry to provide like-for-like results and constant currency results. In the year, we have not acquired any significant new businesses therefore the only difference in our like-for-like results is the impact from movements in exchange rates.
Had our 2016 results been translated at 2015 exchange rates then our constant currency results would have been:
Middle
East and Asia and
Year ended UK Europe Africa Australia Americas Total
31 December 2016 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------------------------- -------- -------- ---------- ----------- --------- --------
Revenue 88,504 23,766 11,356 47,418 42,106 213,150
-------------------------------- -------- -------- ---------- ----------- --------- --------
Operating profit excluding
Group costs 10,398 3,573 1,095 5,298 6,800 27,164
-------------------------------- -------- -------- ---------- ----------- --------- --------
Group costs (4,885) (78) - (308) (38) (5,309)
-------------------------------- -------- -------- ---------- ----------- --------- --------
Operating profit 5,513 3,495 1,095 4,990 6,762 21,855
-------------------------------- -------- -------- ---------- ----------- --------- --------
Share of results of associates
and JV 1,323 (5) - 273 (72) 1,519
Financial income and cost (393) (43) 44 113 (510) (789)
Profit before taxation 6,443 3,447 1,139 5,376 6,180 22,585
-------------------------------- -------- -------- ---------- ----------- --------- --------
Taxation (799) (1,197) (371) (1,337) (65) (3,769)
-------------------------------- -------- -------- ---------- ----------- --------- --------
Profit for the year 5,644 2,250 768 4,039 6,115 18,816
-------------------------------- -------- -------- ---------- ----------- --------- --------
Increase/(decrease) in
2016 results caused by
translation differences 44 295 (2) 328 185 850
-------------------------------- -------- -------- ---------- ----------- --------- --------
Had our 2016 results been translated at 2015 exchange rates, with the companies we owned in 2015, then our like-for-like results would have been:
Middle
East and Asia and
Year ended UK Europe Africa Australia Americas Total
31 December 2016 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------------------------- -------- -------- ---------- ----------- --------- --------
Revenue 88,504 23,766 10,557 47,418 25,294 195,539
-------------------------------- -------- -------- ---------- ----------- --------- --------
Operating profit excluding
Group costs 10,398 3,573 1,095 5,298 3,934 24,298
-------------------------------- -------- -------- ---------- ----------- --------- --------
Group costs (4,885) (78) - (308) (38) (5,309)
-------------------------------- -------- -------- ---------- ----------- --------- --------
Operating profit 5,513 3,495 1,095 4,990 3,896 18,989
-------------------------------- -------- -------- ---------- ----------- --------- --------
Share of results of associates
and JV 1,323 (5) - 273 555 2,146 Financial income and cost (393) (43) 44 113 (454) (733) Profit before taxation 6,443 3,447 1,139 5,376 3,997 20,402 -------------------------------- -------- -------- ---------- ----------- --------- -------- Taxation (799) (1,197) (371) (1,337) 123 (3,581) -------------------------------- -------- -------- ---------- ----------- --------- -------- Profit for the year 5,644 2,250 768 4,039 4,120 16,821 -------------------------------- -------- -------- ---------- ----------- --------- -------- Increase/(decrease) in 2016 results caused by translation and acquisition differences 44 295 (2) 328 2,180 2,845 -------------------------------- -------- -------- ---------- ----------- --------- --------
The key currencies that affect us and the average exchange rates used were:
2016 2015
-------------------- -------- --------
US dollar 1.3558 1.5282
-------------------- -------- --------
Malaysian ringgit 5.6104 5.9695
-------------------- -------- --------
Australian dollar 1.8247 2.0354
-------------------- -------- --------
South African rand 19.9843 19.5022
-------------------- -------- --------
Brazilian real 4.7442 5.0952
-------------------- -------- --------
Euro 1.2244 1.3780
-------------------- -------- --------
Notes to the preliminary statements
Continued
5. Share of associates and joint ventures
2016 2015
Year ended 31 December GBP000 GBP000
--------------------------------------------- -------- --------
Share of associates' profit before taxation 1,981 2,386
Share of associates' taxation (451) (369)
--------------------------------------------- -------- --------
1,530 2,017
--------------------------------------------- -------- --------
6. Finance income
2016 2015
Year ended 31 December GBP000 GBP000
--------------------------- -------- --------
Bank interest receivable 338 181
Other interest receivable 102 118
--------------------------- -------- --------
Total finance income 440 299
--------------------------- -------- --------
7. Finance costs
2016 2015
Year ended 31 December GBP000 GBP000
------------------------------------------------ -------- --------
Bank interest payable (1,227) (766)
Interest payable on finance leases (4) (5)
------------------------------------------------ -------- --------
Total interest payable (1,231) (771)
------------------------------------------------ -------- --------
Fair value adjustments to minority shareholder
put option liabilities (597) (3,706)
Total finance costs (1,828) (4,477)
------------------------------------------------ -------- --------
8. Taxation
2016 2015
Year ended 31 December GBP000 GBP000
---------------------------------------- -------- --------
Current taxation
Taxation in the year
- UK 891 817
- Overseas 3,700 3,919
Withholding taxes payable (49) 5
Adjustment for over provision in prior
periods (104) (526)
----------------------------------------- -------- --------
Total 4,438 4,215
----------------------------------------- -------- --------
Deferred taxation
Origination and reversal of temporary
differences 106 (46)
Recognition of previously unrecognised
tax losses* (1,093) (788)
Effect of changes in tax rates - 5
----------------------------------------- -------- --------
Total (987) (829)
----------------------------------------- -------- --------
Total taxation 3,451 3,386
----------------------------------------- -------- --------
* Recognised to reflect the probable future corporation tax that we can reclaim.
Notes to the preliminary statements
Continued
9. Dividends
2016 2015
Year ended 31 December GBP000 GBP000
------------------------------------------------------ -------- --------
2015 final dividend paid 5.60p on 8 July 2016 (2014:
4.87p)* 4,084 3,504
2016 interim dividend paid 1.85p on 11 November
2016 (2015: 1.61p) 1,374 1,158
------------------------------------------------------ -------- --------
5,458 4,662
------------------------------------------------------ -------- --------
The 2016 proposed final dividend of 6.44p, totalling GBP4,876k. Subject to shareholders approval at 7 June 2017 AGM, the dividend is payable on 7 July 2017 to shareholders on the register 9 June 2017.
The dividends relate to the profit of the following years:
2016 2015
Year ended 31 December GBP000 GBP000
----------------------------------------------------- -------- --------
Interim dividend paid 1.85p on 11 November 2016
(2015: 1.61p) 1,374 1,158
Final dividends payable 6.44p on 7 July 2017 (2015:
5.60p) 4,876 4,033
----------------------------------------------------- -------- --------
6,250 5,191
----------------------------------------------------- -------- --------
Headline dividend cover 2.5 2.6
----------------------------------------------------- -------- --------
Headline dividend cover is calculated by taking headline profit after tax attributable to equity shareholders and dividing it by the total dividends that relate to that year's profits. The Group seeks to maintain a long-term headline dividend cover of between 2 and 3. Retained profits are used to reinvest in the long term growth of the Group through funding working capital and Investing activities; and to repaying bank debt.
* 2015 dividend has been restated to reflect the number of shares in issue when the dividend was paid, as opposed to the number of shares in existence at 31 December 2015.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GGUCUWUPMGMA
(END) Dow Jones Newswires
March 16, 2017 03:00 ET (07:00 GMT)
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