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DMGT Daily Mail & General Trust Plc

270.00
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Daily Mail & General Trust Plc LSE:DMGT London Ordinary Share GB00BJQZC279 'A'ORD(NON.V)12.5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 270.00 270.00 271.50 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Daily Mail & General Trust PLC Half Year 2021 Results (9631Z)

27/05/2021 7:00am

UK Regulatory


Daily Mail & General (LSE:DMGT)
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TIDMDMGT

RNS Number : 9631Z

Daily Mail & General Trust PLC

27 May 2021

27 May 2021

Daily Mail and General Trust plc ('DMGT')

Half Yearly Financial Report for the six months ended 31 March 2021

Performance as expected given market conditions; realisation of value through portfolio activity

-- Group operating performance reflects B2B Information Services growth offset by B2B Events & Exhibitions and Consumer Media:

o Revenue down 12% underlying

o Cash operating income(2) down 13% underlying; 11% margin

o Adjusted(3) operating profit down 19% underlying; 9% margin

o Adjusted profit before tax down 20% underlying

o Adjusted EPS up 12%

   --    Interim dividend increased +1% to 7.6p 
   --    Statutory(4) : revenue GBP547m; profit before tax GBP42m, down 45%; EPS 111.3p, up 24% 
   --    Active portfolio management strategy delivering value creation: 

o Increased investment in Cazoo in October 2020; proposed transaction values stake at c.US$1.35bn(5) vs GBP117m total investment

o Disposal of EdTech (Hobsons) for c.US$410m in March 2021

o Acquisition of New Scientist for GBP67m in March 2021

-- Strong financial position maintained: pro forma net cash GBP293m(6) and GBP362m of committed undrawn bank facilities; statutory net cash GBP199m

   --    Outlook: 

o B2B Information Services: positioned for continued growth

o Events & Exhibitions: physical events scheduled for H2 but risk of further postponements or cancellations

o Consumer Media: advertising depends on business confidence and remains unpredictable

 
                                        Adjusted Results(3)                   Statutory Results(4) 
                                  (from continuing and discontinued 
                                             operations) 
                          Half Year   Half Year           Change            Half Year    Half Year 
                             2021        2020                                   2021         2020 
                         ----------  ----------  -------------------------  -----------  ---------- 
                                                  Reported   Underlying(1) 
                         ----------  ----------  ---------  --------------  -----------  ---------- 
 Revenue                   GBP580m     GBP690m      -16%          -12%        GBP547m      GBP642m 
                         ----------  ----------  ---------  --------------  -----------  ---------- 
 Cash operating income     GBP66m      GBP75m       -11%         -13% 
                         ----------  ----------  ---------  --------------  ----------------------- 
 Operating profit          GBP55m      GBP65m       -17%         -19%          GBP44m      GBP35m 
                         ----------  ----------  ---------  --------------  -----------  ---------- 
 Profit before tax         GBP47m      GBP56m       -17%         -20%          GBP42m      GBP77m 
                         ----------  ----------  ---------  --------------  -----------  ---------- 
 Earnings per share         16.8p       15.0p       +12%                       111.3p       89.7p 
                         ----------  ----------  ---------  --------------  -----------  ---------- 
 Dividend per share                                                             7.6p        7.5p 
                                                                            -----------  ---------- 
 

Paul Zwillenberg, CEO, commented:

"We created significant value for our shareholders during the first half, through active management of the portfolio and continued strong operational execution.

We achieved an attractive price of c.US$410m for the disposal of Hobsons, our EdTech business. This equated to over 50x operating profit, clearly demonstrating the rewards of our approach to organic investment in our businesses and our focus on improved operational performance.

Our financial flexibility enabled us to continue to invest in Cazoo through multiple funding rounds. Despite the near-term economic uncertainty, we had conviction in its opportunity to transform the used car market. Cazoo continues to go from strength to strength and its proposed SPAC combination on the New York Stock Exchange would value our stake at US$1.35bn, a return of eight times on our capital.

I am also delighted to welcome New Scientist to our market-leading Consumer Media division. It is a high-quality, subscriptions-led business with great people and will further improve the quality of our revenues.

From a financial and operational perspective, DMGT delivered a solid performance in the first half of the year. We achieved strong underlying growth in revenue and profits from our B2B Information Services businesses, where Property Information was a highlight. Within Consumer Media, there was good revenue and profit growth from MailOnline and a solid performance from the Mail print titles driving profit growth for the Mail businesses whilst, unsurprisingly, Metro and our Events business continued to be impacted by the pandemic.

Five years into my tenure as CEO, I am incredibly proud of the hard work, creativity and commitment everyone at DMGT has demonstrated and what has been achieved as a result. I am excited and confident about our future as we continue to invest in our market-leading businesses and remain well placed to consider acquisitions to drive growth and create long-term value for shareholders."

Half Year 2021 Financial Results Summary

Segmental performance:

 
                                        Adjusted(3) results               Statutory(4) 
                                  (from continuing and discontinued          results 
                                             operations) 
                              Half    Half            Change             Half    Half 
                               Year    Year                               Year     Year 
                               2021    2020                               2021     2020 
                               GBPm    GBPm                               GBPm     GBPm 
                             ------  ------  -------------------------  -------  ------ 
                                              Reported   Underlying(1) 
                             ------  ------  ---------  --------------  -------  ------ 
 Revenue: 
 B2B: Information 
  Services                     266     268      -1%           +9%         232      219 
 B2B: Events & Exhibitions      4      77       -95%         -92%          4       77 
 Consumer Media                311     345      -10%         -13%         311      345 
                             ------  ------  ---------  --------------  -------  ------ 
 DMGT Group                    580     690      -16%         -12%         547      642 
                             ------  ------  ---------  --------------  -------  ------ 
 Cash operating income(2): 
 B2B: Information 
  Services                     47      40       +17%         +36% 
 B2B: Events & Exhibitions      -       5      -107%         N/A* 
 Consumer Media                39      48       -19%         -21% 
 Corporate costs              (20)    (18)      +10%         +12% 
                             ------  ------  ---------  -------------- 
 DMGT Group                    66      75       -11%         -13% 
                             ------  ------  ---------  --------------  -------  ------ 
 Operating profit: 
 B2B: Information 
  Services                     41      35       +19%         +40%          37      28 
 B2B: Events & Exhibitions     (1)      5      -110%         N/A*         (2)      (1) 
 Consumer Media                34      44       -23%         -25%          32      39 
 Corporate costs              (20)    (18)      +9%          +10%         (22)    (21) 
                             ------  ------  ---------  --------------  -------  ------ 
 DMGT Group(u)                 55      65       -17%         -19%          45      45 
                             ------  ------  ---------  --------------  -------  ------ 
 

Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers.

* Events & Exhibitions' cash OI and adjusted operating profit both reduced by an underlying GBP9m.

u The DMGT Group statutory operating profit shown above excludes the share of operating profits from joint ventures and associates.

-- Adjusted revenue of GBP580m; underlying decrease -12%: B2B Information Services growth, driven by Property Information, was more than offset by decreases in Events & Exhibitions and Consumer Media.

-- Cash operating income (Cash OI)(2) GBP66m; underlying decrease -13%: reduction due to the impact of Covid-19 on Events & Exhibitions and Consumer Media's Metro newspaper more than offsetting growth from B2B Information Services. Includes GBP10m of insurance benefit in respect of cancelled or postponed events.

-- Adjusted operating profit GBP55m; underlying decrease -19%: reflecting the same operating dynamics as Cash OI.

   --    Statutory operating profit GBP44m: compared to GBP35m in the prior year. 
   --    Losses from JVs and associates GBP1m: compared to a loss of GBP7m in the prior year. 

-- Adjusted profit before tax (PBT) GBP47m: down an underlying -20%, including GBP4m increase in net finance costs due to impact of lower interest rates on interest income. Statutory PBT GBP42m (H1 2020 GBP77m).

-- Tax: adjusted tax charge GBP8m (H1 2020 GBP22m); with the adjusted tax rate reducing to 18%. The statutory tax credit was GBP36m and there was also a statutory tax charge of GBP58m on discontinued operations, giving a total net tax charge of GBP22m.

-- Earnings per share: adjusted EPS up +12% to 16.8p (H1 2020 15.0p). Statutory EPS was 111.3p (H1 2020 89.7p) including the profit on disposal of the EdTech business.

-- Pro forma net cash(6) was GBP293m as at 31 March 2021, adjusted to exclude GBP95m of lease liabilities recognised following the adoption of IFRS 16. The net cash:EBITDA ratio was 2.6 on this basis. The statutory net cash as at 31 March 2021 was GBP199m.

-- Portfolio activity: there were several transactions in the period. The disposal of Hobsons, the EdTech business, in March 2021 realised c.US$410m of proceeds. New Scientist, one of the world's leading science publishing titles, was acquired for GBP67m in March 2021, adding a growing subscription-based business to the Consumer Media portfolio. In October 2020, three printing plants were acquired for GBP10m and DMGT invested a further GBP34m in Cazoo, bringing the total investment to GBP117m. In March 2021, Cazoo announced its intention of combining with AJAX I, the US-listed SPAC, valuing DMGT's stake at c.US$1.35bn(5) .

-- Outlook: the financial performance during the second half of the financial year is expected to reflect varying levels of impact on our businesses from the Covid-19 pandemic.

o B2B Information Services: Insurance Risk and the Property Information businesses are expected to deliver underlying revenue growth.

o Events & Exhibitions: despite the planned occurrence of two major physical events in September 2021, trading conditions are likely to remain very challenging.

o Consumer Media: advertising is difficult to predict as usual, with circulation revenues expected to be resilient, helped by the Daily Mail cover price increase.

o Organic investment will continue through the cycle and will subdue margins, notably for Property Information as we build our businesses for the long-term.

Enquiries

 
 Investors: 
 Tim Collier, Group CFO                      +44 20 3615 2902 
 Adam Webster, Head of Investor Relations    +44 20 3615 2903 
 
 Media: 
  Doug Campbell, Teneo                         +44 7753 136628 
 Tim Burt, Teneo                             +44 7583 413254 
 

Half Year Results presentation and Q&A conference call

A virtual presentation of the Half Year Results will be given at 9.30am on 27 May 2021 and will be followed by a question and answer session for City analysts and investors. The presentation will be available on our website at www.dmgt.com/webcasthy21 and the dial-in number for questions is +44 (0)330 336 9434, confirmation code 7516756.

Next trading update

The Group's next scheduled announcement of financial information will be its nine month trading update on 22 July 2021.

About DMGT

DMGT manages a portfolio of companies that provide businesses and consumers with compelling information, analysis, insight, events, news and entertainment. The Group takes a long-term approach to investment and has market-leading positions in consumer media, insurance risk, property information and events & exhibitions. In total, DMGT generates revenues of around GBP1.2bn.

Notes

1 Underlying growth rates are on a like-for-like basis, see pages 28 to 30. Underlying revenues, cash operating income(2) and operating profits are adjusted for constant exchange rates, the exclusion of disposals and closures, the inclusion of the year-on-year organic growth from acquisitions and for the consistent timing of revenue recognition. For Consumer Media , underlying revenues exclude low margin newsprint resale activities. For events, the comparisons are between events scheduled to be held in the six-month period and the same events held, or that were scheduled to be held, the previous time. Consequently, underlying growth rates include all costs for events that were originally scheduled in the six months to March 2021 and that were cancelled or postponed. Similarly, the prior year comparatives include all revenues and costs for the previously scheduled occurrence of the same event, whether it occurred or not. Underlying growth rates include the negative impact of events held in H1 2020 that are usually annual but which are not expected to be held in FY 2021. Due to cancellations or postponements, the reported results in both periods include costs recognised in advance of the scheduled occurrence of an event; but for the calculation of underlying growth rates, the costs are recognised when the event was scheduled to be held.

2 Cash operating income (Cash OI) is calculated by adding back depreciation and amortisation expenses, which are non-cash items, to adjusted operating profit and then deducting capital expenditure. The depreciation charge on the additional right-of-use assets, which has resulted since 1 October 2019 from the adoption of IFRS 16, the lease accounting standard, is not added back when calculating Cash OI.

3 Unless otherwise stated, all profit and profit margin figures in this Interim Financial Report refer to adjusted results and not statutory results. The Board and management team use adjusted results, rather than statutory results, to give greater insight to the financial performance of the Group and the way that it is managed. Similarly, adjusted results are used in setting management remuneration. Adjusted results are stated before exceptional items, other gains and losses, impairment of goodwill and intangible assets, amortisation of intangible assets arising on business combinations, pension finance credits and fair value adjustments . For reconciliations of statutory profit before tax to adjusted profit before tax and supporting explanations, see pages 23 to 25.

4 The statutory results are IFRS figures before any adjustments. Other than earnings per share, they exclude discontinued operations, namely the Energy Information business, Genscape, and the EdTech business, Hobsons, which was disposed of in March 2021. The H1 2020 statutory results have been reclassified accordingly.

5 On 29 March 2021, Cazoo announced a definitive business combination agreement with AJAX I, a publicly traded special purpose acquisition company (SPAC) listed on the New York Stock Exchange. The transaction values the combined company at a pro forma equity value of approximately US$8.1bn at US$10.00 per share. The combined value in cash proceeds and shares in the listed Cazoo, valued at US$10.00 per share as per the committed private investment in public equity (PIPE), that DMGT will receive on closing is expected to be approximately US$1.35bn.

6 The actual net cash position as at 31 March 2021 was GBP199m including GBP95m of lease liabilities in respect of the adoption of IFRS 16, the lease accounting standard, and the net cash:EBITDA ratio was 1.5. The lease liabilities largely reflect the future operating costs of renting office space and are not considered a component of net debt when the Board reviews the Group's available capital. Consequently, both the escrow and lease liabilities are excluded from pro forma net cash. The pro forma net cash and pro forma net cash:EBITDA ratio as at 31 March 2021 were GBP293m and 2.6 respectively.

The pro forma net cash of GBP293m includes gross cash of GBP496m, GBP202m of bond debt and GBP1m net debt in respect of derivatives and collateral. Gross cash includes cash, cash equivalents and short-term deposits, net of overdrafts.

Percentages are calculated on actual numbers to one decimal place.

The average GBP: US$ exchange rate for the first half of the year was GBP1:$1.35 (against GBP1:$1.28 last year). The rate at the Half Year end was $1.38 (2020: $1.24), compared to $1.29 at the September 2020 year end.

Daily Mail and General Trust plc

Northcliffe House, 2 Derry Street,

London, W8 5TT

www.dmgt.co.uk

Registered in England and Wales No. 184594

Group Review Half Year 2021

The first half of FY 2021 was a busy period for DMGT. It is pleasing to report that our businesses are performing in line with our expectations and our strategy is creating value, despite the significant challenges that the Covid-19 pandemic has presented. Our companies have continued to invest in people, product and technology and have served their customers with exceptional professionalism throughout.

In recent years, DMGT has streamlined its portfolio to focus on assets with the potential to deliver compelling returns through strong cash flow generation and/or growth in capital value. In the first half of FY 2021 there was further value realisation:

   --    Hobsons disposal: in 2017, the EdTech business was restructured to focus on the higher growth opportunities in Student Success. Since then, consistent with DMGT's strategy, the business has invested organically and focussed on improving operational execution to support sustainable profit growth.  Whilst DMGT viewed the long-term opportunity favourably, the value of Hobsons was recognised by its acquirers and the business was sold in March 2021 for c.US$410m, compared to a total acquisition cost of US$46m, and a valuation multiple of 3.8x FY 2020 revenue and over 50x FY 2020 adjusted operating profit. 

-- Cazoo investment and planned public listing: DMGT, through its venture capital arm, dmg ventures, has invested a total of GBP117m in Cazoo through four funding rounds starting in November 2018. DMGT's financial flexibility, understanding of the opportunity and conviction in the business model enabled dmg ventures to increase its stake in April 2020, when many investors were wary of committing capital due to the pandemic, and again in October 2020. As a result of a proposed business combination with AJAX I, Cazoo is expected to be listed on the New York Stock Exchange later this financial year and DMGT's stake would be valued at approximately $1.35bn(5) at an issue price of US$10.00 per share.

DMGT also continued to make good progress in the first half against the three strategic priorities which have served it well in its transformation to date:

-- Increasing portfolio focus: through the disposal of Hobsons, we exited the EdTech sector and our B2B Information Services now consists of Insurance Risk and Property Information. In Consumer Media, DMGT acquired the New Scientist, a business with a strong subscription base that will improve the quality of consumer revenue streams. Importantly, the DMGT portfolio remains diversified by sector, business model and across our three portfolio roles: 'Predictable performers', 'Growing and delivering', and 'Businesses for the future'.

-- Improving operational execution: excellent operational execution is embedded in DMGT's culture and is a continuous process. Our businesses have continued to show exceptional operational agility during the first half as the Covid-19 situation and market conditions evolve. We are particularly pleased with the continued operational progress in RMS, Landmark, Trepp and Consumer Media in the first half, where recent investments have enabled successful product launches, increased customer demand and enhanced market share gains.

-- Maintaining financial flexibility: pro forma net cash increased to GBP293m at the period end. The balance sheet gives us the financial strength to support our strategy of organic investment to build on the portfolio's market-leading positions and pursue acquisition opportunities at attractive valuations.

In February 2021, we held our first virtual Investor Briefing, featuring Landmark and Trepp, our Property Information businesses, providing deep insight into their products, market position and exciting opportunities for growth.

Capital allocation

The Group takes a long-term approach to capital management and DMGT's capital allocation framework remains unchanged. Organic investment is DMGT's top priority and the Group continues to invest through the cycle, avoiding a focus on short-term EPS growth. The dividend is the primary mechanism for returning capital to shareholders and DMGT remains committed to its policy of delivering dividend per share growth in excess of inflation.

DMGT adopts a balanced and flexible approach to uses of capital across the two remaining categories: acquisitions and shareholder returns. The Group has capacity for meaningful acquisitions and remains highly disciplined in its use of capital. We will prioritise the allocation of capital towards opportunities that build on our skills, combining proprietary content, data science and sophisticated analytics, across both B2B and Consumer Media. Currently, valuations are relatively more attractive in the Consumer Media sector and our most recent acquisitions reflect the opportunity we see here to invest and deliver compelling financial returns.

As a portfolio manager with a long-term perspective, the valuations of acquisitions and disposals are particularly important to DMGT and the Group will continue to take an opportunistic approach, as demonstrated by the acquisition of New Scientist and disposal of Hobsons.

Sustainability

DMGT takes sustainability seriously and we are pleased to have published our first Sustainability Report in March 2021, available on www.dmgt.com . The Board is proud of the wide range of initiatives undertaken across DMGT's businesses in consideration of Environmental, Social and Governance (ESG) factors, which we continue to develop for all our stakeholders' long-term benefit.

Group Financial Review Half Year 2021

This interim management report focuses on the adjusted results to give a more comparable indication of the Group's business performance. The adjusted results are summarised below:

 
 Adjusted results(2)                   Half Year   Half Year           Change            Full Year 
  (from continuing and discontinued       2021        2020                                   2020 
  operations)                             GBPm        GBPm                                   GBPm 
                                                               Reported   Underlying(1) 
 Revenue                                  580         690        -16%         -12%          1,211 
 
 Cash operating income(2)                 66          75         -11%         -13%           110 
 
 Operating profit                         55          65         -17%         -19%           90 
 Losses from JVs and associates           (1)         (7)        -81%         -81%           (8) 
 Net finance costs                        (7)         (2)       +179%         +179%         (10) 
                                      ----------  ----------  ---------  --------------  ---------- 
 Profit before tax                        47          56         -17%         -20%           72 
 
 Tax charge and minority 
  interests                               (8)        (22)        -62%                       (13) 
 Group profit                             38          34         +11%                        59 
 
 Adjusted earnings per share             16.8p       15.0p       +12%                       26.1p 
                                      ----------  ----------  ---------  --------------  ---------- 
 

Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers.

Revenue

Group adjusted revenue for the six months to 31 March 2021, including discontinued operations, was GBP580m, a decrease of 16%, despite strong growth from Property Information. The performance reflected the varied market conditions resulting from the Covid-19 pandemic, as well as the effect of disposals and a weaker US dollar. On an underlying(1) basis, revenue was down an underlying 12%. Underlying growth was delivered in subscriptions, digital advertising and transactions but was offset by the expected decline in events, print advertising and circulation.

Cash operating income(2)

Cash operating income ('cash OI') of GBP66m decreased 11% in absolute terms and 13% on an underlying basis. Cash OI is considered by the Board to be a good indicator of the underlying cash generation of the businesses and it is included as a core element of the incentive plans for all senior management teams. The underlying decrease reflects the impact that the Covid-19 pandemic has had on Events & Exhibitions and Consumer Media's Metro newspaper, where reductions more than offset growth in B2B Information Services. The Group cash OI margin was 11%, in line with the first half of the prior year.

Operating profit

Adjusted operating profit of GBP55m decreased 17% in absolute terms and by 19% on an underlying basis, due to the operational trends described above. The adjusted operating margin was 9%, in line with the first half of the prior year.

Profit before tax and EPS

Adjusted profit before tax was GBP47m, a decrease of 17% in absolute terms and 20% on an underlying basis. There was a GBP6m reduction in the share of operating losses from joint ventures and associates which was largely offset by a GBP4m increase in net finance costs due to the adverse impact of lower interest rates on interest income. The adjusted tax charge was GBP8m, a 61% reduction on last year due to the combination of lower adjusted profit before tax and a lower effective tax rate of 18%. Adjusted basic earnings per share increased by 12% to 16.8p.

The statutory profit before tax for the period was GBP42m, a reduction of GBP35m on the prior year, which benefitted from the profit on disposal of Property Information businesses. Statutory basic earnings per share were 111.3p, an increase of 24% including the benefit of the profit on disposal discontinued operations, namely Hobsons, the EdTech business.

The table below sets out the reconciliation from statutory profit before tax to adjusted profit before tax. More detail and explanations are provided on pages 23 to 25.

 
                                           Half Year   Half Year    Explanation 
                                              2021        2020      (as per page 
                                              GBPm        GBPm          (23) 
 Statutory profit before tax                  42          77 
 Discontinued operations                      233         150            1 
 Exceptional operating costs / 
  (credit)                                     6          (8)            2 
 Intangible impairment and amortisation        7          18             3 
 Profit on sale of assets                    (241)       (179)           4 
 Pension finance credit                       (1)         (2)            5 
 Adjusted profit before tax                   47          56 
 

Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers.

Full Year Outlook

Several of the markets our businesses operate in continue to be impacted by the Covid-19 pandemic and it remains difficult to predict one likely outcome for the Group in FY 2021. DMGT remains alert to the range of possible upside and downside scenarios, and we will continue to adjust our behaviour and actions as circumstances evolve. It is prudent to not provide formal Group guidance for FY 2021; however, we are able to provide some commentary on the outlook for our businesses based on existing market and operational trends.

Group: the underlying financial performance in FY 2021, for the Group as a whole, will depend on the dynamics of the individual businesses, as described below.

B2B Information Services: there will be continued significant organic investment in the second half of the financial year, particularly for our Property Information businesses, Landmark and Trepp. At a business level, we are anticipating the following dynamics:

-- Insurance Risk : RMS is expected to deliver modest revenue growth in FY 2021, driven by recent sales bookings, before a gradual acceleration as the new products and services gain further traction with customers.

-- Property Information : following a strong H1 2021 performance, market conditions are expected to remain favourable for Landmark in the UK in the third quarter. Volumes are likely to be weaker in the final quarter, following expected stamp duty increases at the end of June 2021. Trepp is expected to continue to grow sales and benefit from strong demand from its customers. Investment to drive long-term growth in both businesses will continue, which will impact margins in the second half of the financial year.

B2B Events and Exhibitions : vaccination programmes are progressing, but exhibitors' and delegates' ability and willingness to travel internationally remain uncertain. Big 5 Dubai and Gastech, two of the business's three largest events, are currently scheduled to be held in September 2021. They are expected to deliver significantly less revenue and profit than usual. The business is, however, expected to recognise US$7m of insurance benefit in the second half of the financial year.

Consumer Media : the advertising market inherently lacks visibility and conditions are likely to remain challenging until economic confidence returns. The expected easing of lockdown restrictions is likely to benefit circulation volumes, particularly for Metro. Circulation revenues will benefit from the cover price increase of the Monday to Friday editions of the Daily Mail, from 70p to 80p, which was implemented on 29 March 2021. The cash operating income margin and operating margin will reflect the revenue dynamics, the inclusion of New Scientist, the benefit of continued cost efficiencies within the newspapers, and organic investment in digital products.

JVs and associates: are primarily early-stage businesses that DMGT invests in to generate long-term capital value. DMGT neither controls them, nor is operationally involved, unlike subsidiary businesses. The current expectation is that the JVs and associates are likely to generate cumulative net losses this financial year.

Net finance costs: are expected to be higher than the prior year as a result of significantly reduced interest income on DMGT's gross cash deposits, due to lower interest rates.

Taxation: the adjusted tax rate will depend on the impact of the Covid-19 pandemic, including on the geographical mix of profits. The FY 2021 rate is currently expected to be around 20%.

Business Review

Business to Business (B2B) Information Services

 
                             Half Year   Half Year   Change   Underlying(1)   Full Year 
                                2021        2020                  Change           2020 
                                GBPm        GBPm                                    GBPm 
                            ----------  ----------  --------  -------------- 
 Revenue                        266         268       (1)%          +9%              527 
 Cash operating income(2)       47          40        +17%         +36%               75 
 Adjusted(3) operating 
  profit                        41          35        +19%         +40%               65 
--------------------------  ----------  ----------  --------  --------------  ---------- 
 Cash operating income(2) 
  margin                        18%         15%                                      14% 
 Adjusted(3) operating 
  margin                        15%         13%                                      12% 
                            ----------  ----------  --------  --------------  ---------- 
 

The B2B division has been separated into B2B Information Services and B2B Events and Exhibitions to help investors understand the drivers of revenue, profitability and valuation.

B2B Information Services comprise the Group's Insurance Risk and Property Information businesses, following the disposal of the EdTech business, Hobsons, in March 2021 and the Energy Information business, Genscape, in November 2019. B2B Information Services revenues totalled GBP266m, up 9% on an underlying basis. There was strong growth from Property Information and a stable performance from Insurance Risk. Revenues decreased by 1% in absolute terms including the adverse impact of disposals and the weaker US dollar.

B2B Information Services cash operating income grew by an underlying 36% to GBP47m and the margin increased to 18%. Similarly, B2B Information Services operating profits grew an underlying 40% and the operating margin increased to 15%. There was underlying growth across both Insurance Risk and Property Information, whilst the margin improvement was driven by Property Information revenue growth.

Outlook: all three B2B Information Services companies are well positioned to deliver revenue growth in the second half of the year. Particularly strong year-on-year growth is expected from the UK Property Information business, Landmark, in the third quarter, driven by higher residential property transaction volumes. The Insurance Risk and US Property Information businesses are largely subscription based with high renewal rates and both are expected to deliver revenue growth during the second half of the year.

Insurance Risk: RMS

 
                             Half Year   Half Year   Change   Underlying(1)   Full Year 
                                2021        2020                  Change           2020 
                                GBPm        GBPm                                    GBPm 
                            ----------  ----------  --------  -------------- 
 Revenue                        117         123        -5%           0%              248 
 Cash operating income(2)       20          22         -5%          +4%               35 
 Adjusted(3) operating 
  profit                        18          19         -4%          +7%               34 
--------------------------  ----------  ----------  --------  --------------  ---------- 
 Cash operating income(2) 
  margin                        17%         17%                                      14% 
 Adjusted(3) operating 
  margin                        16%         16%                                      14% 
                            ----------  ----------  --------  --------------  ---------- 
 

The Insurance Risk business, RMS, provides solutions that help insurers, reinsurers, brokers, financial markets and public agencies evaluate and manage catastrophe risks throughout the world. Revenues were stable on an underlying basis, with growth in the second quarter. The benefit of growth from product subscriptions and continuing high renewal rates was offset by a reduction in consulting services. Customer budgets remained under pressure, with a longer sales cycle due to market uncertainty about the magnitude and timing of losses that will result from the pandemic, estimated to be at least US$80 billion. Reported revenues decreased 5% to GBP117m, reflecting the adverse impact of the weaker US dollar.

Investment to deliver the product roadmap continued in the period as expected. Cash operating income grew an underlying 4% and adjusted operating profit grew an underlying 7%, although margins remained stable at 17% and 16% respectively due to the adverse impact of foreign exchange rate movements. RMS's revenues are US dollar denominated whereas a portion of the cost base is denominated in pounds sterling.

In May 2021, RMS held the second virtual version of Exceedance, its annual customer conference, to address more than 2,700 customers and industry participants. At the conference, RMS highlighted the considerable progress made with customers who have migrated successfully, deploying Risk Modeler 2.0, the software as a service (SaaS) application for risk modelling, on the Risk Intelligence platform. During the period, RMS supported a range of customers from each segment of the market, including insurers, reinsurers and brokers, and from all major geographical regions, as they successfully deployed applications and IQ analytics on Risk Intelligence. It is a truly unified model and analytics platform and customer migration to the cloud is expected to be an important enabler of RMS's future revenue growth.

At Exceedance, the expected June 2021 release of an enhanced version of ExposureIQ, including new capabilities for catastrophe event response, was also announced. TreatyIQ, which harnesses Risk Intelligence's scale and architecture, was made available in January 2021 and is an important step forward in better equipping treaty underwriters with flexible analytics for complex reinsurance portfolios.

RMS also continues to invest in model development and, in June 2021, will release the first climate change models to the industry. These will support customers as they gain a deeper understanding of the impact of climate change on their businesses and portfolios, in the near and long term, and as they comply with increasing regulatory reporting requirements. RMS will also release three new models for the Asia Pacific region, including a new China flood model, as well as an upgraded version of the North Atlantic hurricane model. Additional new and upgraded natural catastrophe models are expected to be released later in 2021.

Outlook: feedback on the Risk Intelligence platform and related products remains encouraging as customers continue to migrate to a cloud-based service. Recent bookings have been encouraging and the business is still expected to deliver modest revenue growth in FY 2021, before a gradual acceleration as the new products and services gain traction.

Property Information

 
                             Half Year   Half Year   Change   Underlying(1)   Full Year 
                                2021        2020                  Change           2020 
                                GBPm        GBPm                                    GBPm 
                            ----------  ----------  --------  -------------- 
 Revenue                        115         96        +20%          +20%             187 
 Cash operating income(2)       24          14        +80%         +83%               29 
 Adjusted(3) operating 
  profit                        22          12        +86%         +89%               24 
--------------------------  ----------  ----------  --------  --------------  ---------- 
 Cash operating income(2) 
  margin                        21%         14%                                      16% 
 Adjusted(3) operating 
  margin                        19%         12%                                      13% 
                            ----------  ----------  --------  --------------  ---------- 
 

The Property Information portfolio is comprised of two businesses: Landmark Information Group (Landmark), which operates in the UK, and Trepp in the US. Revenues grew by 20% on an underlying basis, with particularly strong growth from Landmark, which accounts for approximately three quarters of Property Information revenues.

Landmark benefitted from high transaction volumes in the UK residential property market in the first half and delivered underlying revenue growth of 24%. Higher transaction volumes were supported by reductions in stamp duty, introduced in July 2020, and by pent up demand following particularly low levels of activity in March to June 2020, caused by the first UK lockdown. Landmark made encouraging strategic and operational progress in the period, strengthening its product lines and market position. At DMGT's Investor Briefing event on 10 February 2021, investors had the opportunity to learn about the end-to-end ecosystem that Landmark has built through organic investment and acquisitions. The development of an open platform to increase the speed and transparency of the transaction process in the UK residential property market presents exciting opportunities for Landmark to expand its scale and profitability. In April 2021, Landmark disposed of its Irish operations to focus entirely on the UK.

Trepp's underlying revenue growth of 11% reflects increased demand as customers sought to further understand their portfolio risk exposure using Trepp's tools, analytics, data and models. There was strong growth from the Commercial Real Estate and Banking businesses which have benefitted from organic investment in product and technology initiatives. Trepp's compelling long-term growth potential, supported by its strong core business position and strategy to enter adjacent market segments, was presented at DMGT's February Investor Briefing event.

Cash operating income was GBP24m with the margin increasing from 14% to 21% in the period, whilst the adjusted operating margin increased from 12% to 19%, benefitting from the strong revenue growth.

Outlook: Landmark is expected to deliver particularly strong year-on-year revenue growth during the third quarter, reflecting soft comparisons in the prior year and the continued benefit from reduced levels of stamp duty. At the end of June, stamp duty is expected to increase to prior levels, other than a tapered extension to the end of September for properties costing less than GBP250,000. Consequently, transaction volumes in the final quarter of the year are likely to be weaker.

In the US, Trepp is well positioned to deliver growing subscription revenues with strong customer demand.

Landmark and Trepp are investing organically in their businesses to drive future revenue growth, and this will reduce margins in the short-term. A substantial portion of Landmark's cost base is variable and consequently the operational gearing effect on margins from changes in revenue is relatively limited.

EdTech: Hobsons

 
                             Half Year   Half Year   Change   Underlying(1)   Full Year 
                                2021        2020                  Change           2020 
                                GBPm        GBPm                                    GBPm 
                            ----------  ----------  --------  -------------- 
 Revenue                        34          42        -20%          N/A               85 
 Cash operating income(2)        2           4        -35%          N/A               10 
 Adjusted(3) operating 
  profit                         1           2        -55%          N/A                6 
--------------------------  ----------  ----------  --------  --------------  ---------- 
 Cash operating income(2) 
  margin                        7%          9%                                       12% 
 Adjusted(3) operating 
  margin                        3%          5%                                        7% 
                            ----------  ----------  --------  --------------  ---------- 
 

DMGT no longer operates in the EdTech sector, following the disposal of Hobsons for approximately US$410m in total from two separate transactions that completed on 3 March 2021. Naviance, the K-12 college and career readiness solution, and Intersect, the higher education student match and fit business were sold to US-based PowerSchool, a leading provider of K-12 education technology solutions, for approximately US$320m. Starfish, the higher education student retention and success platform, was sold to EAB, a US-based education company, for approximately US$90m.

The highly attractive valuations achieved in these two transactions reflected the significant progress made since Hobsons was restructured in 2017 to increase its focus on the businesses with most potential for value creation. Over the past four years, Hobsons invested organically in technology and improved its operational execution, creating a firm foundation for long-term profitable growth.

Revenues decreased 20% in absolute terms due to the disposal in early March and the weaker US dollar. As expected, investment in modernising the core product platforms resulted in a reduction in margins.

Outlook: Hobsons ceased being a DMGT business in March 2021.

Energy Information: Genscape

 
                             Half Year    Half Year   Change   Underlying(1)   Full Year 
                                2021         2020                  Change           2020 
                                GBPm         GBPm                                    GBPm 
                            -----------  ----------  --------  -------------- 
 Revenue                         -            7        -81%          N/A                7 
 Cash operating income(2)        -            1        -61%          N/A                1 
 Adjusted(3) operating 
  profit                         -            2        -54%          N/A                2 
--------------------------  -----------  ----------  --------  --------------  ---------- 
 Cash operating income(2) 
  margin                        N/A          20%                                      20% 
 Adjusted(3) operating 
  margin                        N/A          23%                                      23% 
                            -----------  ----------  --------  --------------  ---------- 
 

DMGT no longer operates an Energy Information division, following the disposal of Genscape for US$364m in November 2019.

Business to Business (B2B) Events and Exhibitions: dmg events

 
                             Half Year   Half Year   Change   Underlying(1)   Full Year 
                                2021        2020                  Change           2020 
                                GBPm        GBPm                                    GBPm 
                            ----------  ----------  --------  -------------- 
 Revenue                         4          77        -95%         -92%               79 
 Cash operating income(2)        0           5        -107%        N/A*                4 
 Adjusted(3) operating 
  profit                        (1)          5        -110%        N/A*                4 
--------------------------  ----------  ----------  --------  --------------  ---------- 
 Cash operating income(2) 
  margin                       (8)%         6%                                        5% 
 Adjusted(3) operating 
  margin                       (13)%        6%                                        5% 
                            ----------  ----------  --------  --------------  ---------- 
 

* Cash operating income and adjusted operating profit both reduced by an underlying GBP9m.

dmg events is an organiser of B2B exhibitions and conferences with industry-leading events in the energy, construction, interiors, hotel, hospitality and leisure sectors.

Two of the business's largest events are usually held in the first half of the financial year, in November, but following the onset of Covid-19, Big 5 Dubai was postponed to September 2021 and the ADIPEC exhibition, our largest event, was cancelled. A virtual version of ADIPEC was held, which received positive customer feedback, and three small physical events occurred in the period in Singapore, China and Vietnam. Revenue decreased 92% on an underlying basis and, including the impact of Big 5 Dubai, by 95% on a reported basis to GBP4m.

dmg events recognised GBP2m of costs relating to cancelled or postponed events, compared to GBP11m in H1 2020 and GBP18m in FY 2020. The business does, however, have insurance cover for communicable diseases, of up to US$20m per financial year until September 2022 and US$13m (GBP10m) was recognised in the period. In FY 2020, the full benefit of US$20m (GBP16m) was recognised in the second half of the year. Including the benefit from insurance, the cash operating income was break even and there was an adjusted operating loss of GBP1m in the period.

Outlook: the business is expected to recognise US$7m of insurance benefit in the second half of the financial year due to cancelled and postponed events. Sales bookings for our scheduled larger events are encouraging and consistent with the expectation that these events will be smaller in size than in a normal year. The vaccination programmes in Singapore and Dubai, where Gastech and Big 5 Dubai are planned to be held in September 2021, are progressing well, but exhibitors' and delegates' ability and willingness to travel internationally in the near future remain uncertain. Consequently, each event scheduled to be held in FY 2021 is expected to deliver significantly less revenue and profit than usual and there have also been some cancellations and postponements of smaller events in the portfolio.

Based on the current schedule, dmg events is expected to deliver a small adjusted operating profit in the current year. If Gastech is not held, the adjusted operating loss is likely to be approximately GBP5m. In the extreme, if no major shows are held this year and approximately GBP2m of costs are written off in respect of cancelled or postponed events currently scheduled to be held in FY 2022, the loss would be expected to be approximately GBP15m.

DMGT firmly believes that the longer-term outlook for dmg events' portfolio of market-leading trade shows is strong, reflecting the importance of face-to-face events in a digitising world.

Consumer Media: dmg media

 
                             Half Year   Half Year   Change   Underlying(1)   Full Year 
                                2021        2020                  Change           2020 
                                GBPm        GBPm                                    GBPm 
                            ----------  ----------  --------  -------------- 
 Revenue: 
 Daily Mail / The Mail 
  on Sunday                     176         196       -10%         -10%              356 
 MailOnline                     85          79         +8%          +9%              144 
 DailyMailTV                     3           4         -6%           0%                8 
--------------------------  ----------  ----------  --------  --------------  ---------- 
 Mail Businesses                264         278        -5%          -5%              508 
 Metro                          12          41        -72%         -72%               47 
 The 'i'                        16          12        +34%         -10%               27 
 Newsprint and other            19          14        +35%          -17%              22 
--------------------------  ----------  ----------  --------  --------------  ---------- 
 Total Revenue                  311         345       -10%         -13%              604 
 
 Cash operating income(2)       39          48        -19%         -21%               64 
 Adjusted(3) operating 
  profit                        34          44        -23%         -25%               56 
--------------------------  ----------  ----------  --------  --------------  ---------- 
 Cash operating income(2) 
  margin                        12%         14%                                      11% 
 Adjusted(3) operating 
  margin                        11%         13%                                       9% 
                            ----------  ----------  --------  --------------  ---------- 
 

Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers.

The Consumer Media portfolio includes two of the UK's most read paid-for newspapers, Daily Mail and The Mail on Sunday; Metro, the UK's highest circulation weekday newspaper pre Covid-19; MailOnline, one of the world's leading English language newspaper websites; the 'i', the UK national newspaper and website; and New Scientist, one of the world's leading science publishing titles and acquired by DMGT in March 2021.

Consumer Media revenues decreased by an underlying 13% to GBP311m in the period. The second and third nationwide UK Covid-19 lockdowns resulted in reduced newspaper circulation volumes and a particularly weak print advertising market.

Underlying growth from MailOnline of 9% was more than offset by a 38% decrease in print advertising revenues, reflecting particularly challenging market conditions for Metro and resulting in total advertising revenues decreasing by an underlying 17% to GBP148m. Circulation revenues, including subscriptions, decreased an underlying 7% to GBP139m. There was strong growth in subscriptions, notably for 'The Digital Edition', a paid-for enhanced digital version of the Mail newspaper. Excluding subscriptions, circulation revenues decreased an underlying 11%. The decline in newspaper volumes was partly offset by a cover price increase of 10p to GBP1.10 for the Daily Mail Saturday edition in January 2020. The Mail brand remains strong, which is reflected in the large and growing UK retail market shares held by the Daily Mail and The Mail on Sunday, which are estimated to be 27% and 24% respectively(7) . The estimated UK retail market share of the 'i' remains 4%(7) .

Digital revenues continued to grow, up an underlying 11%, and accounted for 32% of the combined revenues from our news brands in the period, compared to 26% in the first half of the prior year.

Reported revenues decreased 10% in absolute terms, including the benefit of the acquisition of three printing plants in October 2020 and the full six-month benefit of the acquisition of the 'i' in November 2019.

The cash operating income margin decreased to 12% and the adjusted operating margin decreased to 11% from 13%. Cash operating income and adjusted operating profit decreased by an underlying 21% and 25% respectively, entirely due to Metro making a loss in the period. Excluding Metro, Consumer Media cash OI and adjusted operating profit grew, driven by continued profit growth and margin improvement from MailOnline.

Mail businesses

Revenues for the combined Mail newspaper, website and TV businesses (Daily Mail, The Mail on Sunday, MailOnline and DailyMailTV) decreased by an underlying 5% to GBP264m, of which GBP85m was generated by MailOnline. Total advertising across the Mail businesses decreased by an underlying 1% to GBP132m, including 9% growth from MailOnline and a 16% decline in print advertising revenues. Digital advertising accounted for 66% of total advertising across the combined Mail businesses. The decline in print advertising reflects the continued structural and competitive challenges facing the UK national newspaper advertising market, exacerbated by Covid-19 related uncertainty.

MailOnline continues to focus on attracting traffic directly to its homepages and apps on desktop and mobile. Following particularly high traffic levels in the early months of 2020, driven in part by the Covid-19 pandemic, total minutes spent on the site, excluding time viewing videos, decreased by 4% to a daily average of 140m in the period. The direct audience accounted for 81% of minutes spent, an increase from 78% during H1 2020, reflecting continued high levels of engagement with these valuable and loyal customers. The total average daily global unique browsers, excluding other platforms such as Snapchat and Facebook video, decreased by 7% to 15.7m, due to lower levels of indirect traffic. DailyMailTV continues to raise awareness in the US of MailOnline, with the business's revenues of GBP3m stable on an underlying basis. In April 2021, dmg media filed an anti-trust lawsuit in New York, alleging anti-competitive behaviour by Google in respect of the manipulation of digital advertising auctions and bias in search results.

Metro and the 'i'

Metro revenues decreased by GBP29m or 72% to GBP12m, due to the combination of low commuter volumes, causing fewer copies to be distributed, and the weak print advertising market. This resulted in Metro making a loss in the period, as the majority of the revenue reduction flowed through to cash OI and operating losses. Revenues from the 'i' were GBP16m, an underlying decrease of 10%, reflecting lower circulation revenues partly offset by advertising growth following the successful integration of the sales team.

New Scientist

In early March 2021, dmg media acquired New Scientist for GBP67m. New Scientist's high-quality editorial content attracts a large and growing international readership and we believe there are significant digital growth opportunities to be achieved. The acquisition improves the quality of dmg media's revenue streams, as approximately 75% of revenues are derived from subscriptions. The business is expected to generate cash OI and operating profit of approximately GBP7m in the first full year of ownership, from revenues in excess of GBP20m, and is well positioned for growth.

In October 2020, dmg media acquired three printing plants for GBP10m, strategically strengthening its position in the newspaper production market and consistent with DMGT's long-term approach. Printing publications for third-parties generated GBP5m of low-margin revenues in the period.

As well as being acquisitive, dmg media is investing organically in digital opportunities. The portfolio of digital subscription products was expanded in April 2021 with the launch of The Knowledge, a concise, curated digest of online news for busy professionals. In addition, the business will be investing in technology to deliver content-led performance marketing, to generate revenues from helping to inform consumers' buying decisions.

Outlook: in the seven months to April 2021, total Consumer Media revenues decreased by an underlying 10%, including year-on-year growth in April compared to a particularly weak performance in April 2020. The advertising market inherently lacks visibility and conditions are likely to remain challenging until economic confidence returns. The expected easing of lockdown restrictions is likely to benefit circulation volumes, particularly for Metro. Circulation revenues will benefit from the cover price increase of the Monday to Friday editions of the Daily Mail, from 70p to 80p, which was implemented on 29 March 2021. The cash operating income margin and operating margin will reflect the revenue dynamics, the inclusion of New Scientist, the benefit of continued cost efficiencies within the newspapers, and organic investment in digital products.

Corporate costs

 
                                Half Year   Half Year   Change   Underlying(1)   Full Year 
                                   2021        2020                  Change           2020 
                                   GBPm        GBPm                                    GBPm 
                               ----------  ----------  --------  -------------- 
 Cash operating costs(2)          (20)        (18)       +10%         +12%             (34) 
 Adjusted operating costs(3)      (20)        (18)        +9%         +10%             (35) 
                               ----------  ----------  --------  --------------  ---------- 
 

As expected, Corporate operating costs increased by an underlying 10% in the period and Corporate cash operating costs increased by an underlying 12% to GBP20m, reflecting particularly low incentive plan costs in the prior period.

Joint Ventures, associates and investments

 
                               Half Year   Half Year   Change   Underlying(1)   Full Year 
                                  2021        2020                  Change           2020 
                                  GBPm        GBPm                                    GBPm 
                              ----------  ----------  --------  -------------- 
 Share of pre-tax operating 
  losses(3)                       (1)         (7)       -81%         -81%              (8) 
                              ----------  ----------  --------  --------------  ---------- 
 
 

Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers.

DMGT holds minority stakes in early-stage businesses, primarily through its dmg ventures arm. The Group's share of adjusted operating losses from joint ventures and associates was GBP1m, compared to GBP7m in the prior year. Yopa, the UK hybrid estate agent in which DMGT owns a c.45% stake, delivered strong revenue growth in the period and made further progress on the path to profitability.

In addition to joint ventures and associates, DMGT also invests in and develops early-stage businesses in which the Group holds smaller stakes. As the percentage holdings are too small or DMGT's level of influence insufficient for the companies to be associates, the Group does not recognise a share of profits or losses from these investments. The most notable is Cazoo, the UK's leading online car retailer, which aims to transform the car buying experience for consumers across Europe.

In October 2020, DMGT participated in a further Cazoo funding round and invested GBP34m, increasing DMGT's total investment in Cazoo to GBP117m. In March 2021, Cazoo announced its intention to become publicly listed on the New York Stock Exchange (NYSE) through a business combination with AJAX I (AJAX), a publicly-traded special purpose acquisition company (SPAC) which is already listed on the NYSE. If the proposed transaction proceeds and DMGT's holding in the listed Cazoo is valued at the US$10.00 per share issue price, the combined value in net cash proceeds and shares in the listed Cazoo that DMGT will receive on closing is expected to be approximately US$1.35 billion. The closing share price of AJAX on 26 May 2021 was US$9.91.

It is likely that DMGT will receive some cash proceeds on closing, but the amount will depend on a number of factors, including redemptions by AJAX shareholders, if any, as well as DMGT's election and those of other shareholders with respect to receipt of cash consideration. The split between cash and shares in the listed Cazoo entity remains uncertain. For illustrative purposes, however, if DMGT were to participate on a pro rata basis and there were no redemptions by AJAX's shareholders, DMGT would receive approximately US$90m net cash on closing and would hold a stake equivalent to approximately 16% of the common stock of the listed Cazoo, on a fully diluted basis.

The transaction requires the approval of the shareholders of AJAX and Cazoo and is subject to other customary closing conditions. It is expected to close in the final quarter of the current financial year. Lock-up restrictions are expected to apply for five to six months after the transaction closes. Additional information about the proposed transaction is available on Cazoo's website at www.cazoo.co.uk/investors .

In January 2021, Taboola, the content discovery platform, announced its intention to list on the New York Stock Exchange through a merger with a SPAC. The proposed transaction values dmg ventures' stake at GBP6m, compared to a cost of GBP2m in 2015.

Outlook: DMGT's joint ventures and associates are primarily investment-stage businesses and DMGT does not fully control them, unlike subsidiaries. The current expectation is that they are likely to generate cumulative net losses this financial year.

Net finance costs

 
                             Half Year   Half Year   Change   Underlying(1)   Full Year 
                                2021        2020                  Change           2020 
                                GBPm        GBPm                                    GBPm 
                            ----------  ----------  --------  -------------- 
 Net interest payable and 
  similar charges(3)            (7)         (2)       +179%        +179%            (10) 
                            ----------  ----------  --------  --------------  ---------- 
 

Net interest payable and similar charges, including DMGT's share of associates' interest costs, were GBP7m. The increase on the prior year was primarily due to reduced interest income on DMGT's gross cash deposits due to lower interest rates.

The pension finance credit, which is excluded from adjusted results, was GBP1m for the period, reflecting the pension surplus on an accounting basis. This compared to a GBP2m credit for the same period last year and GBP4m for the prior Full Year.

Other income statement items

   --      Exceptional items and amortisation 

Exceptional operating costs remained at low levels in the first half and, including GBP5m from discontinued operations, totalled GBP6m (H1 2020 GBP8m credit). There were no impairment charges in the period (H1 2020 GBP12m).

The charge for amortisation of intangible assets arising on business combinations was GBP7m (H1 2020 GBP6m). The Group recorded other net gains on disposal of businesses and investments, including discontinued operations, of GBP241m, primarily in respect of the disposal of Hobsons, the EdTech business (H1 2020 gain GBP179m).

   --      Taxation 

The adjusted tax charge of GBP8m (H1 2020 GBP22m) is stated after adjusting for the effect of exceptional items. The adjusted tax rate for the half year was 18%, a reduction on 39% in H1 2020 and consistent with the FY 2020 rate of 18%.

The statutory tax credit for the period was GBP36m, including exceptional credits of GBP44m in respect of the recognition of previously unrecognised US deferred tax assets following the disposal of Hobsons. There was also a statutory tax charge of GBP58m on discontinued operations, notably an exceptional charge of GBP59m on the gain on the disposal of Hobsons, giving a total net tax charge of GBP22m. There were GBP14m of net exceptional tax charges in total.

Outlook: the adjusted tax rate will depend on the impact of the Covid-19 pandemic, including on the geographical mix of profits. The FY 2021 rate is currently expected to be around 20%, slightly less than previously expected.

Pensions

The net surplus on the Group's defined benefit pension schemes increased from pro forma GBP240m at the start of the year to pro forma GBP287m at the half year, calculated in accordance with IAS 19 (Revised). The pro forma surplus includes GBP121m in escrow, held for the benefit of the pension schemes but classified as an 'other financial asset' on DMGT's balance sheet, as well as the statutory net surplus of GBP166m. At the start of the year, the pro forma surplus included GBP117m that had been made available to the pension schemes and that was paid into escrow in the period. During the period, the decrease in the value of the defined benefit obligation exceeded the decrease in the value of the assets.

During the period, funding payments into the main schemes were GBP14m and payments into escrow totalled GBP121m, including the GBP117m referenced above. The funding plan agreed with the Trustees is that from FY 2022 to FY 2025 inclusive, payments of GBP11m p.a. will be made directly into the schemes and, in addition, payments of GBP7m p.a. will be paid into escrow. The defined benefit schemes are closed to new entrants and the next actuarial valuation is scheduled for 31 March 2022.

Net cash and cash flow

Pro forma net cash(6) at the end of the period was GBP293m, an increase of GBP125m since the start of the financial year, reflecting GBP300m of disposal proceeds partly offset by the usual seasonal cash outflows and GBP117m spent on acquisitions and investments. Pro forma net cash is stated after adjusting to exclude GBP95m of lease liabilities that are included in statutory net cash following the adoption of IFRS 16, the lease accounting standard. The lease liabilities largely reflect the future operating cost of renting office space and are not considered a component of net debt when the Board reviews the Group's available capital. Consequently, they are excluded from pro forma net cash.

The Group's cash operating income of GBP66m is stated after GBP6m of capital expenditure. Other operating cash net outflows totalled GBP45m including the usual seasonal outflows, notably incentive plan payments. Group operating cash flow was GBP21m in the period, a 39% conversion rate of operating profits to operating cash flow, a reduction on 69% in H1 2020 reflecting the maturing of a significant long-term incentive plan during the period.

Disposal proceeds included GBP294m from the disposal of Hobsons, the EdTech business. Expenditure on acquisitions and investments included GBP67m to acquire New Scientist, the science publishing title, GBP34m of investment in Cazoo, the online used car business, and GBP10m to acquire printing plants.

Payments in the period included dividends of GBP38m, pro forma pension funding payments of GBP18m and taxation of GBP2m. Total pension funding payments, including GBP117m previously made available to the pension schemes and excluded from pro forma net cash as at 30 September 2020, were GBP135m.

The Group's cash, cash equivalents and short-term deposits, net of overdrafts, totalled GBP496m at the period end. Bond debt was GBP202m, comprised of GBP201m of the 6.375% bonds, due 2027 and less than GBP1m of the 10.0% bonds that matured in April 2021. There was also GBP1m of net debt in respect of collateral, loan notes and derivatives. The Group's committed bank facilities, which mature in March 2023, were GBP362m and were completely unutilised.

In December 2020, Standard and Poor's reaffirmed DMGT's BB credit rating, and in May 2021, Fitch reaffirmed DMGT's BBB- investment grade rating. The Group's preferred upper limit for gearing remains a net debt to adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) ratio of 2.0, below the requirements of the Group's bank covenants.

The Directors have a reasonable expectation that the Group will continue to operate and meet its liabilities as they fall due for at least one year. Accordingly, they are satisfied that it is appropriate to continue to adopt the going concern basis in preparing DMGT's accounts.

Financing and shares

During the first half of the year, the Group acquired 0.1m 'A' Ordinary Shares for GBP1m in order to meet obligations to provide shares under its incentive plans. It utilised 0.5m shares, valued at GBP3m, and a further 1.4m shares from the Employee Benefit Trust, valued at GBP10m, to provide shares under various incentive plans. As at 31 March 2021, DMGT had 228.4m shares in issue, including 19.9 million Ordinary Shares, and a further 6.4m 'A' Ordinary Shares held in Treasury and the Employee Benefit Trust(8) .

Dividend

The dividend policy is to grow the dividend in real terms and, in the medium term, to distribute about one-third of the Group's adjusted earnings. The policy aims to deliver a reliable and predictable dividend growth trajectory, unaffected by fluctuations in earnings or capital gains, while also being sufficiently prudent to make significant investments in the long-term future growth of the business.

The Board has declared an interim dividend of 7.6 pence per Ordinary and 'A' Ordinary Non-Voting share (H1 2020 7.5 pence) which will be paid on 2 July 2021 to shareholders on the register at the close of business on 11 June 2021.

Adjusted results: statutory profit before tax (PBT) reconciliation to adjusted PBT

The Board and management team use adjusted results, rather than statutory results, as the primary basis for providing insight into the financial performance of the Group and the way it is managed. Similarly, adjusted results are used in setting management remuneration. Adjusted results exclude certain items which, if included, could distort the understanding of the comparative performance of the business during the period.

The tables on pages 24 and 25 show the adjustments between statutory profit before tax and adjusted profit before tax, by business, for both the first half of FY 2021 (H1 2021) and H1 2020.

The explanation for each type of adjustment is as follows:

1) Discontinued operations: the adjusted results include the pre-disposal results of discontinued operations, namely Genscape, the Energy Information business, and Hobsons, the EdTech business, whereas statutory results only include continuing operations. The gains on the disposal of Genscape in FY 2020 and Hobsons in FY 2021 are excluded from both statutory and adjusted profit before tax.

2) Exceptional operating costs: businesses occasionally incur exceptional costs, including severance and consultancy fees, in respect of a reorganisation that is incremental to normal operations. These are excluded from adjusted results.

3) Intangible impairment and amortisation: when acquiring businesses, the premium paid relative to the net assets on the balance sheet of the acquired business is classified as either goodwill or as an intangible asset arising on a business combination and is recognised on DMGT's balance sheet. This differs to organically developed businesses where assets such as employee talent and customer relationships are not recognised on the balance sheet. Impairment and amortisation of intangible assets and goodwill arising on acquisitions are excluded from adjusted results as they relate to historical M&A activity and future expectations rather than the trading performance of the business during the period. Software, including products, is also recognised as an intangible asset on the balance sheet but the ongoing amortisation of software is similar to the depreciation of tangible assets and is an everyday cost of doing business, so is included in both statutory and adjusted results.

4) Gain on sale or purchase of assets: the Group makes gains or losses when disposing of businesses, for example on the disposal of BuildFax, the US Property Information business, in H1 2020. These items are excluded from adjusted results as they reflect the value created since the business was formed or acquired rather than the operating performance of the business during the period. Similarly, the gains or losses made by joint ventures or associates when disposing of businesses are excluded from adjusted results. Rarely, the Group may make a gain when acquiring a business where the value of identifiable net assets is more than the consideration paid, as with the purchase of three printing plants in October 2020. The gain is excluded from adjusted results as it is unrelated to the operating performance during the period.

5) Pension finance credit: the finance credit on defined benefit schemes is a formulaic calculation that does not necessarily reflect the underlying economics associated with the relevant pension assets and liabilities. It is effectively a notional credit and is excluded from adjusted results.

Reconciliation: Statutory profit to adjusted profit - Half Year 2021

 
 GBP millions                   Note   IR(A)   PI(B)   ET(C)   EI(D)   E&E(E)   CM(F)   CC(G)   JV&A(H)   DMGT Group 
-----------------------------  -----  ------  ------  ------  ------  -------  ------  ------  --------  ----------- 
 Statutory operating profit             18      19       -       -      (2)      32     (22)      (1)             44 
 Discontinued operations           1     -       -       1      (5)      -        -       -        -             (4) 
 Exceptional operating costs       2     -       -       -       5       -        -       2        -               6 
 Intangible impairment and 
  amortisation                     3     -       3       -       -       2        2       -        -               7 
 Exclude JV's & Associates                                                                        (1)              1 
-----------------------------  -----  ------  ------  ------  ------  -------  ------  ------            ----------- 
 Adjusted operating profit              18      22       1       -      (1)      34     (20)                      55 
-----------------------------  -----  ------  ------  ------  ------  -------  ------  ------  --------  ----------- 
 
 
 GBP millions         Note   IR(A)   PI(B)   ET(C)   EI(D)   E&E(E)   CM(F)   CC(G)   JV&A(H)   FC(I)     DMGT 
                                                                                                         Group 
-------------------  -----  ------  ------  ------  ------  -------  ------  ------  --------  ------  ------- 
 Statutory PBT                18      19       -       -      (2)      35     (20)      (1)      (5)        42 
 Discontinued 
  operations(1)          1     -       -      237     (5)      -        -       -        -        -        233 
 Gain on sale or 
  purchase of 
  assets(1)              4     -       -     (237)     -       -       (3)     (1)       -        -      (241) 
 Operating profit 
  adjustments           2, 
  ( above)               3     -       3       -       5       2        2       2        -        -         13   Total 
 Pension finance 
  credit                 5     -       -       -       -       -        -       -        -       (1)       (1) 
 Adjusted PBT                 18      22       1       -      (1)      34     (20)      (1)      (7)        47 
-------------------  -----  ------  ------  ------  ------  -------  ------  ------  --------  ------  ------- 
 
 
 Notes:    The figures in the Note column above correspond with explanations of the adjustments given 
            on page 23. 
 
        *    A IR = Insurance Risk, B PI = Property Information, C 
             ET = EdTech, D EI = Energy Information, E E&E = 
             Events and Exhibitions, F CM = Consumer Media, G CC = 
             Corporate costs, H JV&A = Joint ventures and 
             Associates, I FC = Finance costs 
 
 
        *    1. Discontinued operations and profit on sale of 
             assets both include the GBP237m profit on disposal of 
             discontinued operations (EdTech). 
 
 
       Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum 
       of the component integers. 
 
 

Reconciliation: Statutory profit to adjusted profit - Half Year 2020

 
 GBP millions                   Note   IR(A)   PI(B)   ET(C)   EI(D)   E&E(E)   CM(F)   CC(G)   JV&A(H)   DMGT Group 
-----------------------------  -----  ------  ------  ------  ------  -------  ------  ------  --------  ----------- 
 Statutory operating profit             19       9       -       -      (1)      39     (21)     (10)             35 
 Discontinued operations           1     -       -       2      13       -        -       -        -              15 
 Exceptional operating 
  (credit) 
  / costs                          2     -       -       -     (11)      -        1       4        -             (8) 
 Intangible impairment and 
  amortisation                     3     -       3       -       -       6        5       -        4              17 
 Exclude JV's & Associates                                                                        (6)              6 
-----------------------------  -----  ------  ------  ------  ------  -------  ------  ------            ----------- 
 Adjusted operating profit              19      12       2       2       5       44     (18)                      65 
-----------------------------  -----  ------  ------  ------  ------  -------  ------  ------  --------  ----------- 
 
 
 GBP millions         Note   IR(A)   PI(B)   ET(C)   EI(D)   E&E(E)   CM(F)   CC(G)   JV&A(H)   FC(I)     DMGT 
                                                                                                         Group 
-------------------  -----  ------  ------  ------  ------  -------  ------  ------  --------  ------  ------- 
 Statutory PBT                19      46       -       -      (1)      45     (21)     (10)       -         77 
 Discontinued 
  operations(1)          1     -       -       2      147      -        -       -        -        -        150 
 Gain on sale or 
  purchase of 
  assets(1)              4     -     (37)     (1)    (134)     -       (6)     (1)       -        -      (179) 
 Operating profit 
  adjustments           2, 
  ( above)               3     -       3       -     (11)      6        5       3        4        -         10   Total 
 Pension finance 
  credit                 5     -       -       -       -       -        -       -        -       (2)       (2) 
 Adjusted PBT                 19      12       2       2       5       44     (18)      (7)      (2)        56 
-------------------  -----  ------  ------  ------  ------  -------  ------  ------  --------  ------  ------- 
 
 
 Notes:    The figures in the Note column above correspond with explanations of the adjustments given 
            on page 23. 
 
        *    A IR = Insurance Risk, B PI = Property Information, C 
             ET = EdTech, D EI = Energy Information, E E&E = 
             Events and Exhibitions, F CM = Consumer Media, G CC = 
             Corporate costs, H JV&A = Joint ventures and 
             Associates, I FC = Finance costs 
 
 
        *    1. Discontinued operations and profit on sale of 
             assets both include the GBP134m profit on disposal of 
             discontinued operations (Energy Information). 
 
 
       Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum 
       of the component integers. 
 

Reconciliation: Adjusted results including and excluding discontinued operations

 
                                   Half Year 2021                                    Half Year 2020 
 GBP million            Adjusted                          Adjusted         Adjusted                         Adjusted 
                         results                           results          results                          results 
                       including                         excluding        including                        excluding 
                    discontinued     Discontinued     discontinued     discontinued     Discontinued    discontinued 
                      operations       operations       operations       operations       operations      operations 
---------------  ---------------  ---------------  ---------------  ---------------  ---------------  -------------- 
 
 Revenues 
 Continuing 
  operations                 547                -              547              642                -             642 
 Discontinued 
  operations                  34               34                -               49               49               - 
---------------  ---------------  ---------------  ---------------  ---------------  ---------------  -------------- 
 Total Revenue               580               34              547              690               49             642 
---------------  ---------------  ---------------  ---------------  ---------------  ---------------  -------------- 
 
 Operating 
 Profit 
 Continuing 
  operations                  54                -               54               62                -              62 
 Discontinued 
  operations                   1                1                -                4                4               - 
---------------  ---------------  ---------------  ---------------  ---------------  ---------------  -------------- 
 Total 
  Operating 
  Profit                      55                1               54               65                4              62 
---------------  ---------------  ---------------  ---------------  ---------------  ---------------  -------------- 
 
 Operating 
  margin %                    9%               3%              10%               9%               8%             10% 
 
 
 Notes:   The discontinued operations refer to Genscape, the Energy Information business that was sold 
           in November 2019, and Hobsons, the Energy Information business that was sold in March 2021. 
 
           Amounts are stated rounded to the nearest million pounds, consequently totals may not equal 
           the sum of the component integers. 
 

Cash operating income(2)

Half Year 2021

 
 GBP millions                                IR(A)   PI(B)   ET(C)   EI(D)   E&E(E)   CM(F)   CC(G)   DMGT Group 
------------------------------------------  ------  ------  ------  ------  -------  ------  ------  ----------- 
 Adjusted operating profit                    18      22       1       -      (1)      34     (20)            55 
 Depreciation of tangible fixed assets*        2       1       -       -       -        7       -             11 
 Amortisation of intangible assets**           -       2       3       -       -        -       1              7 
 Purchase of tangible fixed assets             -       -       -       -       -       (3)      -            (4) 
 Expenditure on intangible fixed assets**      -       -      (2)      -       -        -       -            (2) 
------------------------------------------  ------  ------  ------  ------  -------  ------  ------  ----------- 
 Cash operating income                        20      24       2       -       -       39     (20)            66 
------------------------------------------  ------  ------  ------  ------  -------  ------  ------  ----------- 
 

Half Year 2020

 
 GBP millions                                IR(A)   PI(B)   ET(C)   EI(D)   E&E(E)   CM(F)   CC(G)   DMGT Group 
------------------------------------------  ------  ------  ------  ------  -------  ------  ------  ----------- 
 Adjusted operating profit                    19      12       2       2       5       44     (18)            65 
 Depreciation of tangible fixed assets*        3       1       -       -       -        7       -             11 
 Amortisation of intangible assets**           -       2       4       -       -        1       1              8 
 Purchase of tangible fixed assets             -       -       -       -       -       (5)      -            (7) 
 Expenditure on intangible fixed assets**      -      (1)     (2)      -       -        -       -            (3) 
------------------------------------------  ------  ------  ------  ------  -------  ------  ------  ----------- 
 Cash operating income                        22      14       4       1       5       48     (18)            75 
------------------------------------------  ------  ------  ------  ------  -------  ------  ------  ----------- 
 
 
 Notes:   * The depreciation charge on the additional right-of-use assets, which has resulted since 
           1 October 2019 from the adoption of IFRS 16, the lease accounting standard, is not added 
           back when calculating Cash OI. 
           ** Amortisation of intangible assets and expenditure on intangible assets refers to products 
           and software, not assets acquired as part of business combinations. 
           A IR = Insurance Risk, B PI = Property Information, C ET = EdTech, D EI = Energy Information, 
           E E&E = Events and Exhibitions, F CM = Consumer Media, G CC = Corporate costs 
 
           Amounts are stated rounded to the nearest million pounds, consequently totals may not 
           equal the sum of the component integers. 
 

Underlying(1) analysis - Revenues

 
 
                                  Half Year 2021                              Half Year 2020 
-------------  -----  -------------------------------------  ------------------------------------------------ 
 GBP millions      %   Underlying    M&A   Other   Reported   Underlying    M&A   Exchange   Other   Reported 
-------------  -----  -----------  -----  ------  ---------  -----------  -----  ---------  ------  --------- 
 
 Insurance 
  Risk            0%          117      -       -        117          117      -        (6)       -        123 
 Property 
  Information   +20%          115      -       -        115           96      1        (1)       -         96 
 EdTech          N/A            -   (34)       -         34            -   (42)          -       -         42 
 Energy 
  Information    N/A            -      -       -          -            -    (7)          -       -          7 
               -----  -----------  -----  ------  ---------  -----------  -----  ---------  ------  --------- 
 B2B 
  Information 
  Services       +9%          232   (34)       -        266          212   (48)        (8)       -        268 
 B2B Events 
  and 
  Exhibitions   -92%            4      -       -          4           49      4        (4)    (28)         77 
 
 Consumer 
  Media         -13%          310     10    (11)        311          357     26        (1)    (13)        345 
 
 DMGT Group     -12%          545   (24)    (11)        580          619   (18)       (13)    (40)        690 
-------------  -----  -----------  -----  ------  ---------  -----------  -----  --------- 
 
 
 
 
 Notes:   M&A adjustments are for disposals and acquisitions. The underlying results include the post-acquisition 
           organic growth from acquired entities. 'Other' includes adjustments for the timing of shows at 
           Events and Exhibitions, for the consistent timing of revenue recognition and for the gross-up, 
           equivalent to the cost of sales, on the low margin resale of newsprint activities. 
 
           Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the 
           sum of the component integers. 
 

Underlying(1) analysis - Adjusted(3) operating profit and profit before tax

 
 
                                           Half Year 2021                              Half Year 2020 
 ---------------------          ------------------------------------  ----------------------------------------------- 
 GBP millions        %           Underlying   M&A   Other   Reported   Underlying   M&A   Exchange   Other   Reported 
--------------  ------      ---------------  ----  ------  ---------  -----------  ----  ---------  ------  --------- 
 
 Insurance 
  Risk             +7%                   18     -       -         18           17     -        (2)       -         19 
 Property 
  Information     +89%                   22     -       -         22           12     -          -       -         12 
 EdTech            N/A                    -   (1)       -          1            -   (2)          -       -          2 
 Energy 
  Information      N/A                    -     -       -          -            -   (2)          -       -          2 
                ------      ---------------  ----  ------  ---------  -----------  ----  ---------  ------  --------- 
 B2B 
  Information 
  Services        +40%                   40   (1)       -         41           29   (4)        (2)       -         35 
 B2B Events 
  and 
  Exhibitions      N/A                  (5)     -     (5)        (1)            4     1        (1)     (2)          5 
 
 Consumer 
  Media           -25%                   36     2       -         34           48     4          -       -         44 
 
 Corporate 
  costs           +10%                 (20)     -       -       (20)         (18)     -          -       -       (18) 
                ------      ---------------  ----  ------  ---------  -----------  ----  ---------  ------  --------- 
 Adjusted 
  operating 
  profit          -19%                   50     1     (5)         55           62     1        (3)     (2)         65 
 
 Losses from 
  JVs and 
  associates      -81%                  (1)     -       -        (1)          (7)     -          -       -        (7) 
 Net finance 
  costs          +179%                  (7)     -       -        (7)          (2)     -          -       -        (2) 
                ------      ---------------  ----  ------  ---------  -----------  ----  ---------  ------  --------- 
 Adjusted 
  profit 
  before 
  tax             -20%                   42     1     (5)         47           53     1        (3)     (2)         56 
                ------      ---------------  ----  ------  ---------  -----------  ----  ---------  ------  --------- 
 
 
 
 Notes:   M&A adjustments are for disposals and acquisitions. The underlying results include the post-acquisition 
           organic growth from acquired entities. 'Other' includes adjustments for the consistent timing of revenue 
           recognition as well as the timing of shows at Events and Exhibitions. 'Other' also includes an adjustment 
           to remove the impact of GBP8m of costs recognised in Half Year 2020 that related to events that were 
           scheduled for the second half of FY 2020 but which were cancelled or postponed and GBP1m of costs 
           recognised in Half Year 2021 that related to events that were scheduled for the second half of FY 
           2021 but which were cancelled or postponed. The underlying Half Year 2021 performance also includes 
           GBP6m of costs that were recognised in the second half of FY 2020 but which relate to events that 
           were scheduled to be held in Half Year 2021 and were then cancelled or postponed. 
 
           Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum 
           of the component integers. 
 

Underlying(1) analysis - Cash operating income(2)

 
 
                                          Half Year 2021                              Half Year 2020 
 --------------------          ------------------------------------  ----------------------------------------------- 
 GBP millions       %           Underlying   M&A   Other   Reported   Underlying   M&A   Exchange   Other   Reported 
--------------  -----      ---------------  ----  ------  ---------  -----------  ----  ---------  ------  --------- 
 
 Insurance 
  Risk            +4%                   20     -       -         20           20     -        (2)       -         22 
 Property 
  Information    +83%                   24     -       -         24           13     -          -       -         14 
 EdTech           N/A                    -   (2)       -          2            -   (4)          -       -          4 
 Energy 
  Information     N/A                    -     -       -          -            -   (1)          -       -          1 
                -----      ---------------  ----  ------  ---------  -----------  ----  ---------  ------  --------- 
 B2B 
  Information 
  Services       +36%                   45   (2)       -         47           33   (5)        (2)       -         40 
 B2B Events 
  and 
  Exhibitions     N/A                  (5)     -     (5)          0            3     1        (1)     (2)          5 
 
 Consumer 
  Media          -21%                   40     2       -         39           51     4        (1)       -         48 
 
 Corporate 
  cash 
  operating 
  costs          +12%                 (20)     -       -       (20)         (17)     -          -       -       (18) 
                -----      ---------------  ----  ------  ---------  -----------  ----  ---------  ------  --------- 
 Group cash 
  operating 
  income         -13%                   60   (1)     (5)         66           69   (1)        (3)     (2)         75 
                ----- 
 
 
 
 
 Notes:   M&A adjustments are for disposals and acquisitions. The underlying results include the post-acquisition 
           organic growth from acquired entities. 'Other' includes adjustments for the consistent timing of revenue 
           recognition as well as the timing of shows at Events and Exhibitions. 'Other' also includes an adjustment 
           to remove the impact of GBP8m of costs recognised in Half Year 2020 that relate to events that were 
           scheduled for the second half of FY 2020 but which have been cancelled or postponed and GBP1m of costs 
           recognised in Half Year 2021 that relate to events that were scheduled for the second half of FY 2021 
           but which have been cancelled or postponed. The underlying Half Year 2021 performance also includes 
           GBP6m of costs that were recognised in the second half of FY 2020 but which relate to events that 
           were scheduled to be held in Half Year 2021 and were then cancelled or postponed. 
 
           Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum 
           of the component integers. 
 

Principal risks and uncertainties

The principal risks and uncertainties that affect the Group on an ongoing basis are described in our most recent Annual Report (FY 2020). These are still considered to be relevant risks and uncertainties for the Group at this time and are summarised below.

Strategic Risks

-- Market disruption creates opportunities as well as risks. Disruption enables us to move into new markets and geographies and encourages us to innovate to grow the business. Failure to anticipate and respond to market disruption may affect demand for our products and services and our ability to drive long-term growth.

-- A lack of innovation or failure to successfully evolve our products and services may compromise their appeal. Some may fail to achieve customer acceptance and yield expected benefits. This could result in lower than expected revenue and/or impairment losses. Uncertainty also results from expansion into new and emerging markets.

-- Portfolio changes not delivering expected benefits, failure to deliver acquisition or operating targets, and/or delay or delinquency in divesting from non-core businesses at the right time.

-- Group performance could be adversely impacted by factors beyond our control such as the economic conditions in key markets and sectors and political uncertainty.

-- Failure to identify, attract, retain and develop the right people for senior and business-critical roles.

Operational Risks

-- A pandemic, epidemic or disaster, whether natural or man-made, could cause significant disruption. This could affect DMGT's operating companies, customers, suppliers and/or end markets.

-- An information security breach, including a failure to prevent or detect a malicious cyber attack, could cause reputational damage and financial loss.

-- A failure of one of our critical third parties may cause disruption to business operations, impact our ability to deliver products and services and result in financial loss.

-- The Group not complying with all applicable laws and regulations across all of the jurisdictions in which it operates could result in financial penalties and reputational damage.

   --    The funding of the pension scheme deficit could be greater than expected. 

Statement of Directors' responsibilities

The Directors are responsible for preparing the Half Yearly Financial Report, in accordance with applicable law and regulations.

The Directors confirm that to the best of their knowledge:

a) this Condensed set of Financial Statements which should be read in conjunction with the annual financial statements for the year ended 30 September 2020 and has been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the European Union; and

b) the Interim Management Report includes a fair review of the information required by the Financial Conduct Authority's Disclosure and Transparency Rules 4.2.7R and 4.2.8R.

By order of the Board of Directors

The Viscount Rothermere

Chairman

26 May 2021

Notes

1 Underlying growth rates are on a like-for-like basis, see pages 28 to 30. Underlying revenues, cash operating income(2) and operating profits are adjusted for constant exchange rates, the exclusion of disposals and closures, the inclusion of the year-on-year organic growth from acquisitions and for the consistent timing of revenue recognition. For Consumer Media , underlying revenues exclude low margin newsprint resale activities. For events, the comparisons are between events scheduled to be held in the six-month period and the same events held, or that were scheduled to be held, the previous time. Consequently, underlying growth rates include all costs for events that were originally scheduled in the six months to March 2021 and that were cancelled or postponed. Similarly, the prior year comparatives include all revenues and costs for the previously scheduled occurrence of the same event, whether it occurred or not. Underlying growth rates include the negative impact of events held in H1 2020 that are usually annual but which are not expected to be held in FY 2021. Due to cancellations or postponements, the reported results in both periods include costs recognised in advance of the scheduled occurrence of an event; but for the calculation of underlying growth rates, the costs are recognised when the event was scheduled to be held.

2 Cash operating income (Cash OI) is calculated by adding back depreciation and amortisation expenses, which are non-cash items, to adjusted operating profit and then deducting capital expenditure. The depreciation charge on the additional right-of-use assets, which has resulted since 1 October 2019 from the adoption of IFRS 16, the lease accounting standard, is not added back when calculating Cash OI.

3 Unless otherwise stated, all profit and profit margin figures in this Interim Financial Report refer to adjusted results and not statutory results. The Board and management team use adjusted results, rather than statutory results, to give greater insight to the financial performance of the Group and the way that it is managed. Similarly, adjusted results are used in setting management remuneration. Adjusted results are stated before exceptional items, other gains and losses, impairment of goodwill and intangible assets, amortisation of intangible assets arising on business combinations, pension finance credits and fair value adjustments . For reconciliations of statutory profit before tax to adjusted profit before tax and supporting explanations, see pages 23 to 25.

4 The statutory results are IFRS figures before any adjustments. Other than earnings per share, they exclude discontinued operations, namely the Energy Information business, Genscape, and the EdTech business, Hobsons, which was disposed of in March 2021. The H1 2020 statutory results have been reclassified accordingly.

5 On 29 March 2021, Cazoo announced a definitive business combination agreement with AJAX I, a publicly traded special purpose acquisition company (SPAC) listed on the New York Stock Exchange. The transaction values the combined company at a pro forma equity value of approximately US$8.1bn at US$10.00 per share. The combined value in cash proceeds and shares in the listed Cazoo, valued at US$10.00 per share as per the committed private investment in public equity (PIPE), that DMGT will receive on closing is expected to be approximately US$1.35bn.

6 The actual net cash position as at 31 March 2021 was GBP199m including GBP95m of lease liabilities in respect of the adoption of IFRS 16, the lease accounting standard, and the net cash:EBITDA ratio was 1.5. The lease liabilities largely reflect the future operating costs of renting office space and are not considered a component of net debt when the Board reviews the Group's available capital. Consequently, lease liabilities are excluded from pro forma net cash. The pro forma net cash and pro forma net cash:EBITDA ratio as at 31 March 2021 were GBP293m and 2.6 respectively.

The pro forma net cash of GBP293m includes gross cash of GBP496m, GBP202m of bond debt and GBP1m net debt in respect of derivatives and collateral. Gross cash includes cash, cash equivalents and short-term deposits, net of overdrafts.

7 During the 27 weeks to 4 April 2021 (H1 2021), the Daily Mail's market share of UK retail print sales averaged an estimated 27.2%, an increase from 26.1% in the 25 weeks to 22 March 2020 (H1 2020). The Mail on Sunday's UK retail print market share averaged an estimated 24.3% in H1 2021, an increase from 23.4% in H1 2020. The estimated UK retail print market share of the 'i' in H1 2021 was 4.0%, broadly consistent with 4.1% in H1 2020. Circulation market share figures are calculated using ABC's National Newspapers Reports, excluding digital editions. ABC's public figures no longer include The Sun, The Times, The Sunday Times, The Daily Telegraph or The Sunday Telegraph and DMGT's estimates are used for calculating the circulation volumes of these titles.

In addition, subscriptions to the Mail's digital editions averaged 89,000 in H1 2021, compared to 42,000 in H1 2020. These figures include subscriptions sold as part of a print and digital package. Digital-only subscriptions to the digital editions of the Mail and 'i' averaged a total of 82,000 in H1 2021, compared to 43,000 in H1 2020.

8 As at the end of 31 March 2021, there were 4,115,021 'A' Ordinary Shares held in Treasury and 2,319,963 'A' Ordinary Shares held by the DMGT Employee Benefit Trust.

Percentages are calculated on actual numbers to one decimal place.

The average GBP: US$ exchange rate for the first half of the year was GBP1:$1.35 (against GBP1:$1.28 last year). The rate at the Half Year end was $1.38 (2020: $1.24), compared to $1.29 at the September 2020 year end.

All references to profit or margin in this Interim Management Report are to adjusted profit or margin, except where reference is made to statutory profit.

For further information

 
 Investors: 
 Tim Collier, Group CFO                      +44 20 3615 2902 
 Adam Webster, Head of Investor Relations    +44 20 3615 2903 
 
 Media: 
  Doug Campbell, Teneo                         +44 7753 136628 
 Tim Burt, Teneo                             +44 7583 413254 
 

Half Year Results presentation and Q&A conference call

A presentation of the Half Year Results will be given at 9.30am on 27 May 2021 and will be followed by a question and answer session for City analysts and investors. The presentation will be available on our website at www.dmgt.com/webcasthy21 and the dial-in number for questions is +44 (0)330 336 9434, confirmation code 7516756.

Next trading update

The Group's next scheduled announcement of financial information will be its nine month trading update on 22 July 2021.

 
 Person responsible for arranging the release of this announcement: 
 Fran Sallas, Company Secretary                       +44 20 3615 2904 
 

Additional information in respect of Cazoo and AJAX I and where to find it

This communication relates to a proposed business combination among Cazoo Holdings Limited ("Cazoo"), AJAX I and Capri Listco ("Listco") . In connection with the proposed business combination, Listco filed a registration statement on Form F-4 that includes a proxy statement of AJAX I in connection with AJAX I's solicitation of proxies for the vote by AJAX I's shareholders with respect to the proposed business combination and a prospectus of Listco, which has not yet become effective. The proxy statement/prospectus will be sent to all AJAX I shareholders and Listco and AJAX I will also file other documents regarding the proposed business combination with the SEC. This communication does not contain all the information that should be considered concerning the proposed business combination and is not intended to form the basis of any investment decision or any other decision in respect of the business combination. Before making any voting or investment decision, investors and security holders are urged to read the registration statement, the proxy statement/prospectus and all other relevant documents filed or that will be filed with the SEC in connection with the proposed business combination as they become available because they will contain important information about the proposed transaction.

Investors and security holders will be able to obtain free copies of the registration statement, proxy statement/prospectus and all other relevant documents filed or that will be filed with the SEC by AJAX I and Listco through the website maintained by the SEC at www.sec.gov. In addition, the documents filed by AJAX I may be obtained free of charge from AJAX I's website at https://ajaxcap.com or by written request to AJAX I at 667 Madison Avenue, New York, NY 10065, United States of America and documents filed by DMGT may be obtained free of charge by written request to DMGT at Northcliffe House, 2 Derry Street, London W8 5TT.

This Half Yearly Financial Report ('Report') is prepared for and addressed only to the Company's shareholders as a whole and to no other person. The Company, its Directors, employees, agents and advisers accept and assume no liability or responsibility to any person in respect of this Report save as would arise under English law. Statements contained in this Report are based on the knowledge and information available to the Group's Directors at the date it was prepared and therefore facts stated and views expressed may change after that date.

This document and any materials distributed in connection with it may include forward-looking statements, beliefs, opinions or statements concerning risks and uncertainties, including statements with respect to the Group's business, its current goals and expectations, financial condition, strategy, objectives and results of operations. Those statements can be identified by the fact that they do not relate only to historical or current facts. Those forward-looking statements and statements which contain the words "anticipate", "believe", "intend", "estimate", "expect" and words of similar meaning, reflect the Group's Directors' beliefs and expectations and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and which may cause results and developments to differ materially from those expressed or implied by those statements and forecasts. DMGT believes factors that could cause actual financial condition, performance or other indicated results to differ materially from those indicated in forward-looking statements in this document include, without limitation, the ongoing effects of the Covid-19 pandemic; the policies and actions of governmental and regulatory authorities in the jurisdictions in which DMGT operates; the political, legal and economic ramifications of the UK's withdrawal from the European Union; economic, political, social or other developments in jurisdictions and markets in which DMGT operates; the impact of competition, and other changes in trading conditions. Therefore, no representation is made that any of those statements or forecasts will come to pass or that any forecast results will be achieved. You are cautioned not to place any reliance on such statements or forecasts. Those f orward-looking and other statements speak only as at the date of this Report. The Group undertakes no obligation to release any update of, or revisions to, any forward-looking statements, opinions (which are subject to change without notice) or any other information or statement contained in this Report . Furthermore, past performance of the Group cannot be relied on as a guide to future performance.

No statement in this document is intended as a profit forecast or a profit estimate and no statement in this document should be interpreted to mean that earnings per DMGT share for the current or future financial years would necessarily match or exceed the historical published earnings per DMGT share.

Nothing in this document is intended to constitute an invitation or inducement to engage in investment activity. This document does not constitute or form part of any offer for sale or subscription of, or any solicitation of any offer to purchase or subscribe for, any securities nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract, commitment or investment decision in relation thereto. This document does not constitute a recommendation regarding any securities.

Independent review report to Daily Mail and General Trust plc

Report on the condensed consolidated interim financial statements

Our conclusion

We have reviewed Daily Mail and General Trust plc's condensed consolidated interim financial statements (the "interim financial statements") in the Half Yearly Financial Report of Daily Mail and General Trust plc for the 6 month period ended 31 March 2021 (the "period").

Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

What we have reviewed

The interim financial statements comprise:

   --   the Condensed Consolidated Statement of Financial Position as at 31 March 2021; 

-- the Condensed Consolidated Income Statement and Condensed Consolidated Statement of Comprehensive Income for the period then ended;

   --   the Condensed Consolidated Cash Flow Statement for the period then ended; 
   --   the Condensed Consolidated Statement of Changes in Equity for the period then ended; and 
   --   the explanatory notes to the interim financial statements. 

The interim financial statements included in the Half Yearly Financial Report of Daily Mail and General Trust plc have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

As disclosed in note 1 to the interim financial statements, the financial reporting framework that has been applied in the preparation of the full annual financial statements of the Group is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.

Responsibilities for the interim financial statements and the review

Our responsibilities and those of the Directors

The Half Yearly Financial Report, including the interim financial statements, is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Half Yearly Financial Report in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

Our responsibility is to express a conclusion on the interim financial statements in the Half Yearly Financial Report based on our review. This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

What a review of interim financial statements involves

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We have read the other information contained in the Half Yearly Financial Report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.

PricewaterhouseCoopers LLP

Chartered Accountants

London

26 May 2021

Shareholder Information

Financial Calendar (provisional)

2021

 
 27 May         Half yearly financial report released 
 10 June        Interim ex-dividend date 
 11 June        Interim record date 
 21 June        Payment of interest on bonds 
 2 July         Payment of interim dividend 
 22 July        Nine month trading update 
 30 September   Year end 
 18 November    Announcement of Full Year 2021 results 
 25 November    Ex-dividend date 
 26 November    Record date 
 

Contacts

 
 Daily Mail and General Trust                          Auditor 
  plc                               PricewaterhouseCoopers LLP 
  Northcliffe House                         1 Embankment Place 
  2 Derry Street                                        London 
  London                                              WC2N 6RH 
  W8 5TT 
  Email: adam.webster@dmgt.com 
 Stockbrokers                                       Registrars 
  Credit Suisse International                         Equiniti 
  One Cabot Square                                Aspect House 
  London                                          Spencer Road 
  E14 4QJ                                              Lancing 
                                                   West Sussex 
                                                      BN99 6DA 
 J.P. Morgan Cazenove 
  25 Bank Street 
  Canary Wharf 
  London 
  E14 5JP 
 
 

For further investor information and contacts, please visit the Company's website at

www.dmgt.com .

Condensed Consolidated Income Statement

For the 6 months ended 31 March 2021

 
                                                         Unaudited   Unaudited 
                                                          6 months    6 months         Audited 
                                                             ended       ended      year ended 
                                                          31 March    31 March    30 September 
                                                              2021        2020            2020 
                                                  Note        GBPm        GBPm            GBPm 
=============================================  =======  ==========  ==========  ============== 
 CONTINUING OPERATIONS 
=============================================  =======  ==========  ==========  ============== 
 Revenue                                             3       546.8       641.5         1,118.5 
---------------------------------------------  -------  ----------  ----------  -------------- 
 
 Adjusted operating profit                      3, (i)        53.5        61.6            82.4 
=============================================  =======  ==========  ==========  ============== 
 Exceptional operating costs, impairment 
  of internally generated and acquired 
  computer software                                  3       (1.7)       (3.5)          (36.6) 
---------------------------------------------  -------  ----------  ----------  -------------- 
 Amortisation and impairment of acquired 
  intangible assets arising on business 
  combinations and impairment of goodwill            3       (6.6)      (13.3)          (24.7) 
---------------------------------------------  -------  ----------  ----------  -------------- 
 
 Operating profit before share of results 
  of joint ventures and associates                            45.2        44.8            21.1 
=============================================  =======  ==========  ==========  ============== 
 Share of results of joint ventures and 
  associates                                         4       (1.4)      (10.1)          (11.4) 
---------------------------------------------  -------  ----------  ----------  -------------- 
 Total operating profit                                       43.8        34.7             9.7 
=============================================  =======  ==========  ==========  ============== 
 Other gains and losses                              5         4.0        43.4            42.1 
---------------------------------------------  -------  ----------  ----------  -------------- 
 Profit before investment revenue, net 
  finance costs and tax                                       47.8        78.1            51.8 
=============================================  =======  ==========  ==========  ============== 
 Investment revenue                                  6         1.8         5.1             7.4 
---------------------------------------------  -------  ----------  ----------  -------------- 
 
 Finance expense                                     7       (8.9)       (8.4)          (17.6) 
---------------------------------------------  -------  ----------  ----------  -------------- 
 Finance income                                      7         1.7         2.2             4.4 
---------------------------------------------  -------  ----------  ----------  -------------- 
 Net finance costs                                           (7.2)       (6.2)          (13.2) 
=============================================  =======  ==========  ==========  ============== 
 Profit before tax                                            42.4        77.0            46.0 
=============================================  =======  ==========  ==========  ============== 
 Tax                                                 8        35.6       (4.3)             0.1 
---------------------------------------------  -------  ----------  ----------  -------------- 
 Profit after tax from continuing operations                  78.0        72.7            46.1 
=============================================  =======  ==========  ==========  ============== 
 
 DISCONTINUED OPERATIONS                            16 
=============================================  =======  ==========  ==========  ============== 
 Profit from discontinued operations                         175.3       132.3           142.9 
---------------------------------------------  -------  ----------  ----------  -------------- 
 PROFIT FOR THE PERIOD                                       253.3       205.0           189.0 
=============================================  =======  ==========  ==========  ============== 
 
 Attributable to: 
=============================================  =======  ==========  ==========  ============== 
 Owners of the Company                                       253.5       205.0           189.3 
---------------------------------------------  -------  ----------  ----------  -------------- 
 Non-controlling interests*                                  (0.2)           -           (0.3) 
---------------------------------------------  -------  ----------  ----------  -------------- 
 Profit for the period                                       253.3       205.0           189.0 
=============================================  =======  ==========  ==========  ============== 
 
 Earnings per share                                 11 
=============================================  =======  ==========  ==========  ============== 
 From continuing operations 
---------------------------------------------  -------  ----------  ----------  -------------- 
 Basic                                                       34.3p       31.8p           20.4p 
---------------------------------------------  -------  ----------  ----------  -------------- 
 Diluted                                                     33.4p       31.4p           19.9p 
---------------------------------------------  -------  ----------  ----------  -------------- 
 From discontinued operations 
---------------------------------------------  -------  ----------  ----------  -------------- 
 Basic                                                       77.0p       57.9p           62.7p 
---------------------------------------------  -------  ----------  ----------  -------------- 
 Diluted                                                     74.9p       57.1p           61.3p 
---------------------------------------------  -------  ----------  ----------  -------------- 
 From continuing and discontinued operations 
---------------------------------------------  -------  ----------  ----------  -------------- 
 Basic                                                      111.3p       89.7p           83.1p 
---------------------------------------------  -------  ----------  ----------  -------------- 
 Diluted                                                    108.3p       88.5p           81.2p 
---------------------------------------------  -------  ----------  ----------  -------------- 
 Adjusted earnings per share from continuing 
  and discontinued operations 
---------------------------------------------  -------  ----------  ----------  -------------- 
 Basic                                                       16.8p       15.0p           26.1p 
---------------------------------------------  -------  ----------  ----------  -------------- 
 Diluted                                                     16.3p       14.8p           25.5p 
---------------------------------------------  -------  ----------  ----------  -------------- 
 
 
    *        All attributable to continuing operations. 

(i) Adjusted operating profit is defined as total operating profit from continuing operations before share of results of joint ventures and associates, exceptional operating costs, impairment of goodwill and intangible assets, amortisation of acquired intangible assets arising on business combinations and impairment of property, plant and equipment.

Condensed Consolidated Statement of Comprehensive Income

For the 6 months ended 31 March 2021

 
                                                        Unaudited   Unaudited 
                                                         6 months    6 months         Audited 
                                                            ended       ended      year ended 
                                                         31 March    31 March    30 September 
                                                             2021        2020            2020 
                                                             GBPm        GBPm            GBPm 
=====================================================  ==========  ==========  ============== 
 Profit for the period                                      253.3       205.0           189.0 
=====================================================  ==========  ==========  ============== 
 
 Items that will not be reclassified to Consolidated 
  Income Statement 
=====================================================  ==========  ==========  ============== 
 Actuarial gain/(loss) on defined benefit pension 
  schemes                                                    27.9       118.8         (112.1) 
=====================================================  ==========  ==========  ============== 
 Tax relating to items that will not be reclassified 
  to Consolidated Income Statement                          (5.3)      (26.5)            17.5 
=====================================================  ==========  ==========  ============== 
 Fair value movement of financial assets through 
  Other Comprehensive Income                                397.6        65.0           295.0 
=====================================================  ==========  ==========  ============== 
 
 Total items that will not be reclassified to 
  Consolidated Income Statement                             420.2       157.3           200.4 
=====================================================  ==========  ==========  ============== 
 
 Items that may be reclassified subsequently 
  to Consolidated Income Statement 
=====================================================  ==========  ==========  ============== 
 Gain/(loss) on hedges of net investments in 
  foreign operations                                         10.0       (6.3)             0.8 
=====================================================  ==========  ==========  ============== 
 Costs of hedging                                           (0.2)         0.6             0.5 
=====================================================  ==========  ==========  ============== 
 Translation reserves recycled to Consolidated 
  Income Statement on disposals                               1.5        10.2            10.6 
=====================================================  ==========  ==========  ============== 
 Foreign exchange differences on translation 
  of foreign operations                                    (26.4)         7.4             2.1 
=====================================================  ==========  ==========  ============== 
 
 Total items that may be reclassified subsequently 
  to Consolidated Income Statement                         (15.1)        11.9            14.0 
=====================================================  ==========  ==========  ============== 
 
 Other comprehensive income for the period                  405.1       169.2           214.4 
=====================================================  ==========  ==========  ============== 
 
 Total comprehensive income for the period                  658.4       374.2           403.4 
=====================================================  ==========  ==========  ============== 
 
 Attributable to: 
=====================================================  ==========  ==========  ============== 
 Owners of the Company                                      658.7       374.2           403.7 
=====================================================  ==========  ==========  ============== 
 Non-controlling interests                                  (0.3)           -           (0.3) 
=====================================================  ==========  ==========  ============== 
                                                            658.4       374.2           403.4 
=====================================================  ==========  ==========  ============== 
 
 Continuing operations                                      483.2       236.9           244.0 
=====================================================  ==========  ==========  ============== 
 Discontinued operations                                    175.2       137.3           159.4 
=====================================================  ==========  ==========  ============== 
                                                            658.4       374.2           403.4 
=====================================================  ==========  ==========  ============== 
 
 Total comprehensive income for the period from 
  continuing operations attributable to: 
=====================================================  ==========  ==========  ============== 
 Owners of the Company                                      483.5       236.9           244.3 
=====================================================  ==========  ==========  ============== 
 Non-controlling interests                                  (0.3)           -           (0.3) 
=====================================================  ==========  ==========  ============== 
                                                            483.2       236.9           244.0 
=====================================================  ==========  ==========  ============== 
 

Condensed Consolidated Statement of Changes in Equity

For the 6 months ended 31 March 2021

 
                                                                                              Equity  Non-controlling 
                                                                                        attributable        interests 
                         Called-up    Share     Capital                                    to owners 
                             share  premium  redemption     Own  Translation  Retained            of                     Total 
                           capital  account     reserve  shares      reserve  earnings   the Company                    equity 
                   Note       GBPm     GBPm        GBPm    GBPm         GBPm      GBPm          GBPm             GBPm     GBPm 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Audited at 30 
 September 
 2019                         29.3     17.8        21.0  (49.1)         52.5     702.8         774.3                -    774.3 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Adjustment for 
 transition 
 to IFRS 16                      -        -           -       -            -       1.1           1.1                -      1.1 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Restated at 1 
 October 
 2019                         29.3     17.8        21.0  (49.1)         52.5     703.9         775.4                -    775.4 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Profit for the 
 period                          -        -           -       -            -     205.0         205.0                -    205.0 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Other 
 comprehensive 
 income 
 for the period                  -        -           -       -         11.9     157.3         169.2                -    169.2 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Total 
 comprehensive 
 income 
 for the period                  -        -           -       -         11.9     362.3         374.2                -    374.2 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Dividends             9          -        -           -       -            -    (37.9)        (37.9)                -   (37.9) 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Own shares 
 acquired in 
 the period          25          -        -           -   (1.8)            -         -         (1.8)                -    (1.8) 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Financial 
 liability for 
 closed period 
 purchases                       -        -           -  (20.0)            -         -        (20.0)                -   (20.0) 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Own shares 
 released on 
 exercise of 
 share options                   -        -           -     9.2            -         -           9.2                -      9.2 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Credit to equity 
 for share-based 
 payments                        -        -           -       -            -       9.2           9.2                -      9.2 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Settlement of 
 exercised 
 share options of 
 subsidiaries                    -        -           -       -            -    (10.3)        (10.3)                -   (10.3) 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Deferred tax on 
 other 
 items recognised 
 in equity                       -        -           -       -            -       0.6           0.6                -      0.6 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Unaudited at 31 
 March 
 2020                         29.3     17.8        21.0  (61.7)         64.4   1,027.8       1,098.6                -  1,098.6 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Audited at 30 
 September 
 2019                         29.3     17.8        21.0  (49.1)         52.5     702.8         774.3                -    774.3 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Adjustment for 
 transition 
 to IFRS 16                      -        -           -       -            -       1.1           1.1                -      1.1 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Restated at 1 
 October 
 2019                         29.3     17.8        21.0  (49.1)         52.5     703.9         775.4                -    775.4 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Profit/(loss) for 
 the 
 period                          -        -           -       -            -     189.3         189.3            (0.3)    189.0 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Other 
 comprehensive 
 income 
 for the period                  -        -           -       -         14.0     200.4         214.4                -    214.4 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Total 
 comprehensive 
 income/(expense) 
 for the period                  -        -           -       -         14.0     389.7         403.7            (0.3)    403.4 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Dividends             9          -        -           -       -            -    (54.9)        (54.9)                -   (54.9) 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Own shares 
 acquired in 
 the period          25          -        -           -  (19.7)            -         -        (19.7)                -   (19.7) 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Own shares 
 released on 
 exercise of 
 share options                   -        -           -     9.5            -         -           9.5                -      9.5 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Credit to equity 
 for share-based 
 payments                        -        -           -       -            -      42.2          42.2                -     42.2 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Settlement of 
 exercised 
 share options of 
 subsidiaries                    -        -           -       -            -    (10.4)        (10.4)                -   (10.4) 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Non-controlling 
 interest 
 recognised on 
 acquisition                     -        -           -       -            -         -             -              1.3      1.3 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Deferred tax on 
 other 
 items recognised 
 in equity                       -        -           -       -            -     (0.6)         (0.6)                -    (0.6) 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Audited at 30 
 September 
 2020                         29.3     17.8        21.0  (59.3)         66.5   1,069.9       1,145.2              1.0  1,146.2 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Profit/(loss) for 
 the 
 period                          -        -           -       -            -     253.5         253.5            (0.2)    253.3 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Other 
 comprehensive 
 income/(expense) 
 for the period                  -        -           -       -       (15.0)     420.2         405.2            (0.1)    405.1 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Total 
 comprehensive 
 income/(expense) 
 for the period                  -        -           -       -       (15.0)     673.7         658.7            (0.3)    658.4 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Dividends             9          -        -           -       -            -    (37.6)        (37.6)                -   (37.6) 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Own shares 
 acquired in 
 the period          25          -        -           -   (1.0)            -         -         (1.0)                -    (1.0) 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Own shares 
 released on 
 exercise of 
 share options                   -        -           -    13.8            -         -          13.8                -     13.8 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Adjustment to 
 equity following 
 increased stake 
 in controlled 
 entity                          -        -           -       -            -     (0.5)         (0.5)              0.1    (0.4) 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Credit to equity 
 for share-based 
 payments                        -        -           -       -            -      14.1          14.1                -     14.1 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Settlement of 
 exercised 
 share options of 
 subsidiaries                    -        -           -       -            -    (39.0)        (39.0)                -   (39.0) 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Deferred tax on 
 other 
 items recognised 
 in equity                       -        -           -       -            -     (0.1)         (0.1)                -    (0.1) 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
Unaudited at 31 
 March 
 2021                         29.3     17.8        21.0  (46.5)         51.5   1,680.5       1,753.6              0.8  1,754.4 
=================  ====  =========  =======  ==========  ======  ===========  ========  ============  ===============  ======= 
 

Condensed Consolidated Statement of Financial Position

At 31 March 2021

 
                                                  Unaudited   Unaudited      Audited 
                                                      at 31       at 31        at 30 
                                                      March       March    September 
                                                       2021        2020         2020 
                                           Note        GBPm        GBPm         GBPm 
========================================  =====  ==========  ==========  =========== 
 ASSETS 
========================================  =====  ==========  ==========  =========== 
 Non-current assets 
========================================  =====  ==========  ==========  =========== 
 Goodwill                                    18       231.1       244.6        255.4 
----------------------------------------  -----  ----------  ----------  ----------- 
 Other intangible assets                     18        98.5       110.6         94.9 
----------------------------------------  -----  ----------  ----------  ----------- 
 Property, plant and equipment               19        67.4        69.6         63.0 
----------------------------------------  -----  ----------  ----------  ----------- 
 Right of use assets                         20        85.7        62.3         89.8 
----------------------------------------  -----  ----------  ----------  ----------- 
 Investments in joint ventures                          1.4         8.0          8.6 
----------------------------------------  -----  ----------  ----------  ----------- 
 Investments in associates                             49.1        55.6         48.4 
----------------------------------------  -----  ----------  ----------  ----------- 
 Financial assets at fair value through 
  other comprehensive income                 21       844.0       171.4        410.7 
----------------------------------------  -----  ----------  ----------  ----------- 
 Trade and other receivables                            6.2        17.1         10.5 
----------------------------------------  -----  ----------  ----------  ----------- 
 Other financial assets                      23       136.2        13.1         14.2 
----------------------------------------  -----  ----------  ----------  ----------- 
 Derivative financial assets                            1.9         3.8          3.2 
----------------------------------------  -----  ----------  ----------  ----------- 
 Retirement benefit asset                    26       176.0       362.9        136.7 
----------------------------------------  -----  ----------  ----------  ----------- 
 Deferred tax assets                                   67.8        19.6         70.3 
----------------------------------------  -----  ----------  ----------  ----------- 
                                                    1,765.3     1,138.6      1,205.7 
----------------------------------------  -----  ----------  ----------  ----------- 
 Current assets 
========================================  =====  ==========  ==========  =========== 
 Inventories                                           19.1        13.7         12.4 
----------------------------------------  -----  ----------  ----------  ----------- 
 Trade and other receivables                          252.1       276.1        247.3 
----------------------------------------  -----  ----------  ----------  ----------- 
 Current tax receivable                                 0.5         1.5          0.4 
----------------------------------------  -----  ----------  ----------  ----------- 
 Other financial assets                      23         7.8        21.9         21.7 
----------------------------------------  -----  ----------  ----------  ----------- 
 Derivative financial assets                            0.6           -          0.6 
----------------------------------------  -----  ----------  ----------  ----------- 
 Cash and cash equivalents                   13       513.9       489.2        500.3 
----------------------------------------  -----  ----------  ----------  ----------- 
 Total assets of businesses held for 
  sale                                       17         8.1         4.3          4.1 
----------------------------------------  -----  ----------  ----------  ----------- 
                                                      802.1       806.7        786.8 
----------------------------------------  -----  ----------  ----------  ----------- 
 Total assets                                       2,567.4     1,945.3      1,992.5 
========================================  =====  ==========  ==========  =========== 
 
 LIABILITIES 
========================================  =====  ==========  ==========  =========== 
 Current liabilities 
========================================  =====  ==========  ==========  =========== 
 Trade and other payables                           (376.0)     (419.4)      (406.7) 
----------------------------------------  -----  ----------  ----------  ----------- 
 Current tax payable                                 (33.7)       (6.7)        (5.3) 
----------------------------------------  -----  ----------  ----------  ----------- 
 Borrowings                                  22      (18.7)      (10.8)       (21.2) 
----------------------------------------  -----  ----------  ----------  ----------- 
 Lease liabilities                           22      (20.8)      (23.3)       (22.7) 
----------------------------------------  -----  ----------  ----------  ----------- 
 Derivative financial liabilities                         -      (16.2)            - 
----------------------------------------  -----  ----------  ----------  ----------- 
 Provisions                                          (38.5)      (63.7)       (46.6) 
----------------------------------------  -----  ----------  ----------  ----------- 
 Total liabilities of businesses held 
  for sale                                   17      (23.9)      (20.5)       (19.7) 
----------------------------------------  -----  ----------  ----------  ----------- 
                                                    (511.6)     (560.6)      (522.2) 
----------------------------------------  -----  ----------  ----------  ----------- 
 Non-current liabilities 
========================================  =====  ==========  ==========  =========== 
 Trade and other payables                                 -       (1.5)        (1.5) 
----------------------------------------  -----  ----------  ----------  ----------- 
 Borrowings                                  22     (201.0)     (203.4)      (202.7) 
----------------------------------------  -----  ----------  ----------  ----------- 
 Lease liabilities                           22      (73.0)      (50.4)       (77.1) 
----------------------------------------  -----  ----------  ----------  ----------- 
 Derivative financial liabilities                    (13.3)      (13.9)       (23.1) 
----------------------------------------  -----  ----------  ----------  ----------- 
 Retirement benefit deficit                  26       (9.5)      (10.8)       (13.5) 
----------------------------------------  -----  ----------  ----------  ----------- 
 Provisions                                           (4.2)       (5.6)        (5.9) 
----------------------------------------  -----  ----------  ----------  ----------- 
 Deferred tax liabilities                             (0.4)       (0.5)        (0.3) 
----------------------------------------  -----  ----------  ----------  ----------- 
                                                    (301.4)     (286.1)      (324.1) 
----------------------------------------  -----  ----------  ----------  ----------- 
 Total liabilities                                  (813.0)     (846.7)      (846.3) 
========================================  =====  ==========  ==========  =========== 
 Net assets                                         1,754.4     1,098.6      1,146.2 
========================================  =====  ==========  ==========  =========== 
 

At 31 March 2021

 
                                                Unaudited   Unaudited      Audited 
                                                    at 31       at 31        at 30 
                                                    March       March    September 
                                                     2021        2020         2020 
                                         Note        GBPm        GBPm         GBPm 
======================================  =====  ==========  ==========  =========== 
 SHAREHOLDERS' EQUITY 
======================================  =====  ==========  ==========  =========== 
 Called-up share capital                   25        29.3        29.3         29.3 
--------------------------------------  -----  ----------  ----------  ----------- 
 Share premium account                               17.8        17.8         17.8 
--------------------------------------  -----  ----------  ----------  ----------- 
 Share capital                                       47.1        47.1         47.1 
======================================  =====  ==========  ==========  =========== 
 Capital redemption reserve                          21.0        21.0         21.0 
--------------------------------------  -----  ----------  ----------  ----------- 
 Own shares                                        (46.5)      (61.7)       (59.3) 
--------------------------------------  -----  ----------  ----------  ----------- 
 Translation reserve                                 51.5        64.4         66.5 
--------------------------------------  -----  ----------  ----------  ----------- 
 Retained earnings                                1,680.5     1,027.8      1,069.9 
--------------------------------------  -----  ----------  ----------  ----------- 
 Equity attributable to owners of the 
  Company                                         1,753.6     1,098.6      1,145.2 
======================================  =====  ==========  ==========  =========== 
 Non-controlling interests                            0.8           -          1.0 
======================================  =====  ==========  ==========  =========== 
                                                  1,754.4     1,098.6      1,146.2 
======================================  =====  ==========  ==========  =========== 
 

Approved by the Board on 26 May 2021 .

Condensed Consolidated Cash Flow Statement

For the 6 months ended 31 March 2021

 
                                                        Unaudited   Unaudited 
                                                         6 months    6 months         Audited 
                                                            ended       ended      year ended 
                                                         31 March    31 March    30 September 
                                                             2021        2020            2020 
                                                 Note        GBPm        GBPm            GBPm 
==============================================  =====  ==========  ==========  ============== 
 Cash generated by operations                      12        44.3        54.1           150.3 
==============================================  =====  ==========  ==========  ============== 
 Taxation paid                                              (2.6)      (10.7)          (12.5) 
----------------------------------------------  -----  ----------  ----------  -------------- 
 Taxation received                                            0.6         0.3             4.7 
----------------------------------------------  -----  ----------  ----------  -------------- 
 Net cash generated from operating activities                42.3        43.7           142.5 
==============================================  =====  ==========  ==========  ============== 
 
 Investing activities 
==============================================  =====  ==========  ==========  ============== 
 Interest received                                            0.6         7.8             8.7 
----------------------------------------------  -----  ----------  ----------  -------------- 
 Dividends received from joint ventures 
  and associates                                              0.5         0.5             0.7 
----------------------------------------------  -----  ----------  ----------  -------------- 
 Purchase of property, plant and equipment         19       (4.0)       (6.6)          (12.2) 
----------------------------------------------  -----  ----------  ----------  -------------- 
 Expenditure on internally generated 
  intangible fixed assets                          18       (0.6)       (2.7)           (4.2) 
----------------------------------------------  -----  ----------  ----------  -------------- 
 Expenditure on other intangible assets            18       (1.7)       (0.5)           (1.5) 
----------------------------------------------  -----  ----------  ----------  -------------- 
 Purchase of financial assets held at 
  fair value through other comprehensive 
  income                                           21      (34.3)      (37.7)          (48.0) 
----------------------------------------------  -----  ----------  ----------  -------------- 
 Proceeds on disposal of property and 
  plant and equipment                              19         0.1           -               - 
----------------------------------------------  -----  ----------  ----------  -------------- 
 Purchase of businesses and subsidiary 
  undertakings                                     14      (77.3)      (57.3)          (69.8) 
----------------------------------------------  -----  ----------  ----------  -------------- 
 Settlements and collateral payments 
  on treasury derivatives                                    13.6       (8.9)           (8.7) 
----------------------------------------------  -----  ----------  ----------  -------------- 
 Investment in joint ventures and associates                (5.0)       (0.5)           (2.5) 
----------------------------------------------  -----  ----------  ----------  -------------- 
 Loans to joint ventures and associates 
  repaid                                                        -           -             0.1 
----------------------------------------------  -----  ----------  ----------  -------------- 
 Proceeds on disposal of businesses and 
  subsidiary undertakings                          15       297.6       303.4           301.1 
----------------------------------------------  -----  ----------  ----------  -------------- 
 Proceeds on disposal of joint ventures 
  and associates                                    5         5.7         0.1             9.5 
----------------------------------------------  -----  ----------  ----------  -------------- 
 Payment into escrow                               23     (120.7)           -               - 
----------------------------------------------  -----  ----------  ----------  -------------- 
 
 Net cash generated from investing activities                74.5       197.6           173.2 
==============================================  =====  ==========  ==========  ============== 
 
 Financing activities 
==============================================  =====  ==========  ==========  ============== 
 Equity dividends paid                              9      (37.6)      (37.9)          (54.9) 
----------------------------------------------  -----  ----------  ----------  -------------- 
 Purchase of own shares                            25       (1.0)       (1.8)          (19.7) 
----------------------------------------------  -----  ----------  ----------  -------------- 
 Net payment on settlement of share options                (25.3)       (1.0)           (0.8) 
----------------------------------------------  -----  ----------  ----------  -------------- 
 Interest paid on borrowings                                (0.7)       (0.9)          (14.9) 
----------------------------------------------  -----  ----------  ----------  -------------- 
 Amounts received on sublease receivable                      1.9         2.0             3.8 
----------------------------------------------  -----  ----------  ----------  -------------- 
 Loan notes repaid                                              -       (1.6)           (1.6) 
----------------------------------------------  -----  ----------  ----------  -------------- 
 Interest paid on lease liabilities                         (1.7)       (1.0)           (2.5) 
----------------------------------------------  -----  ----------  ----------  -------------- 
 Repayment of lease liabilities                            (10.7)      (12.0)          (23.5) 
----------------------------------------------  -----  ----------  ----------  -------------- 
 
 Net cash used in financing activities                     (75.1)      (54.2)         (114.1) 
==============================================  =====  ==========  ==========  ============== 
 
 Net increase in cash and cash equivalents         13        41.7       187.1           201.6 
==============================================  =====  ==========  ==========  ============== 
 Cash and cash equivalents at beginning 
  of period                                                 479.9       289.2           289.2 
----------------------------------------------  -----  ----------  ----------  -------------- 
 Exchange (loss)/gain on cash and cash 
  equivalents                                      13      (25.3)         2.1          (10.9) 
----------------------------------------------  -----  ----------  ----------  -------------- 
 Net cash and cash equivalents at end 
  of period                                        13       496.3       478.4           479.9 
==============================================  =====  ==========  ==========  ============== 
 

Notes to the accounts

1 Basis of preparation

The information for the 6 months ended 31 March 2021 and 31 March 2020 and for the year ended 30 September 2020 does not constitute statutory accounts for the purposes of section 435 of the Companies Act 2006. A copy of the accounts for the year ended 30 September 2020 has been delivered to the Registrar of Companies. The auditor's report on those accounts was not qualified and did not contain statements under section 498 (2) or (3) of the Companies Act 2006.

The Group's business activities are split into four continuing operating divisions: Insurance Risk, Property Information, Events and Exhibitions and Consumer Media. These divisions are the basis on which information is reported to the Group's Chief Operating Decision Maker, which has been determined to be the Group Board. The segment result is the measure used for the purposes of resource allocation and assessment and represents profit earned by each segment, including share of results from joint ventures and associates but before exceptional operating costs, amortisation of acquired intangible assets arising on business combinations, impairment charges, other gains and losses, net finance costs and taxation.

Other than the Daily Mail, The Mail on Sunday, Metro and the 'i' businesses, the Group prepares accounts for a 6-month period ending on 31 March. The Daily Mail, The Mail on Sunday, Metro and 'i' businesses prepare financial statements for a 26 or 27 week financial period ending on a Sunday near to the end of March. These businesses do not prepare additional financial statements corresponding to the Group's financial period for consolidation purposes as it would be impracticable to do so. The Group considers whether there have been any significant transactions or events between the end of the financial period of these businesses and the end of the Group's financial period and makes any material adjustments as appropriate.

The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the interim management report. The financial position of the Group, its cash flows, liquidity position and borrowing facilities are described in the Condensed Consolidated Financial Statements and notes.

The Company has long-term financing in the form of bonds and meets its day-to-day working capital requirements through surplus cash balances and committed bank facilities which expire in March 2023. The Board's forecasts and projections, after taking account of reasonably possible changes in trading performance, show that the Group is expected to operate within the terms of its current facilities.

In light of the continuing Covid-19 pandemic the Directors have performed a detailed going concern review. This included the preparation of a five-year forecast which was re-modelled to incorporate a severe but plausible scenario for the period through to 30 September 2022. In addition, the Directors considered the availability of the Group's committed but undrawn bank facilities of GBP362.2 million which expire in March 2023.

The Directors' severe but plausible scenario model for the period to 30 September 2022 included the impact of cancellations in the Events and Exhibitions segment, the UK residential housing market to operate at volumes at the floor of a functioning market in the Property Information segment together with a reduction in print advertising revenues and increases in newsprint prices in the Consumer Media segment.

In this severe but plausible scenario the Group does not forecast a draw down on its bank facilities nor does it forecast a breach of its banking covenants.

After due consideration the Directors have concluded that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for at least 12 months from the date of this report.

For this reason the Directors continue to adopt the going concern basis in preparing the condensed interim financial information for the six months ended 31 March 2021 .

The Annual Report and Accounts of DMGT plc will be prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board in conformity with the requirements of the Companies Act 2006 and international financial reporting standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union. These Condensed Consolidated Financial Statements have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting as adopted by the European Union.

Although not required by IAS 34, comparative figures for the Condensed Consolidated Income Statement for the year ended 30 September 2020 and the Condensed Consolidated Statement of Financial Position at 31 March 2020 have been included on a voluntary basis.

Prior period amounts have been re-presented to conform to the current period's presentation, as prescribed by IFRS 5, Non-current Assets Held for Sale and Discontinued Operations.

These Condensed Consolidated Financial Statements have been prepared in accordance with the accounting policies set out in the 2020 Annual Report and Accounts, as amended, where appropriate by the application of certain new or amended accounting standards in the period, described below, with the exception of changes in estimates that are required in determining the interim provision for income taxes. These policies are expected to be followed in the preparation of the full financial statements for the financial year ending 30 September 2021 .

2 Significant accounting policies

The Group has not yet adopted certain new standards, amendments and interpretations to existing standards, which have been published but are not yet effective. These new pronouncements are listed below:

   --          Amendments to IAS 1 and IFRS Practice Statement 2 - effective 1 October 2023. 
   --          Definition of Accounting Estimates (Amendments to IAS 8) - effective 1 October 2023. 

-- Covid-19 Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16) - effective 1 October 2021.

The above amendments will not have a significant impact on the Group's Consolidated Financial Statements.

There have been no new IFRSs adopted during the year.

Early adoption of amendments to existing standards

With effect from 1 October 2020, the Group early adopted amendments to IFRS 9, IAS 39 and IFRS 7, Interest rate benchmark reform - Phase 2. The Phase 2 amendments address issues arising during interest rate benchmark reform, including specifying when the Phase 1 amendments adopted on 1 October 2019 will cease to apply, when hedge designations and documentation should be updated, and when hedges of the alternative benchmark rate as the hedged risk are permitted. These amendments have been adopted retrospectively to hedging relationships. There is no impact on the consolidated financial statements from the early adoption of these amendments.

The Group has adopted the following hedge accounting reliefs provided by Phase 2 of the amendments:

(i) Hedge designation - When the Phase 1 amendments cease to apply, the Group will amend its fair value hedge designation to reflect changes which are required by IBOR reform, but only to make one or more of these changes:

-- Designating an alternative benchmark rate (contractually or non-contractually specified) as a hedged risk (i.e. SONIA, which will replace GBP LIBOR);

-- Amending the description of the hedged item, including the designated portion of fair value being hedged; or

   --          Amending the description of the hedging instrument. 

The Group will update its hedge documentation to reflect these changes by the end of the reporting period in which the changes are made. The amendments to hedge documentation do not require the Group to discontinue the fair value hedge relationship. The Group has not made any amendments to its hedge documentation relating to IBOR reform in the period to 31 March 2021.

(ii) Risk components - The Group is permitted to designate an alternative benchmark rate as a non-contractually specified risk component, even if it is not separately identifiable at the date when it is designated, provided that the Group reasonably expects that it will meet the requirements within 24 months of the first designation and the risk component is reliably measurable. The Group has not designated any alternative benchmark rates as risk components in any hedge relationships during the period.

Effect of IBOR reform

During 2020, the Directors considered the Group's exposures to IBOR, including an assessment of the impact on the following:

   --        The Group's revolving credit facilities maturing March 2023; 

-- Outstanding derivative financial instruments including interest rate swaps designated in fair value hedge relationships and interest rate CAPs;

   --        A review of contracts including insurance and leases; 
   --        A review of intercompany loan agreements; and 
   --        Treasury systems and processes. 

The assessment highlighted the need to amend language in the revolving credit facilities and derivative contracts which all reference IBOR, in order that they reference alternative risk-free rates (ARFR) once the relevant IBOR is discontinued. The need to update systems and processes to be able to use the ARFR, including day-count and compounding conventions was also identified. Accordingly, the Group has engaged with its banking partners and external advisors during the period to agree a timetable to amend IBOR language within revolving credit facilities and derivative contracts; and has commenced a partial implementation of system changes. These discussions and system changes are expected to complete during the second half of the financial year to 30 September 2021. The assessment identified no impact relating to intercompany loan agreements or other contracts.

The following tables contain details of all the financial instruments that the Group holds at 31 March 2021 which reference an IBOR and have not yet transitioned to an alternative interest rate benchmark:

Derivative assets exposed to GBP LIBOR

 
                                                           Carrying 
                                                              value 
                                                              at 31 
                                                              March 
                                                               2021   Notional 
                                                               GBPm       GBPm 
================================================  ======  =========  ========= 
 Derivative instruments in designated hedge 
  accounting relationships                           (i)        1.4       53.1 
================================================  ======  =========  ========= 
 Derivative instruments not in designated hedge 
  accounting relationships                          (ii)        0.4       85.0 
================================================  ======  =========  ========= 
 Total derivative assets exposed to GBP LIBOR                   1.8      138.1 
========================================================  =========  ========= 
 

Derivative assets exposed to USD LIBOR

 
                                                           Carrying 
                                                              value 
                                                              at 31 
                                                              March 
                                                               2021   Notional 
                                                               GBPm       US$m 
================================================  ======  =========  ========= 
 Derivative instruments not in designated hedge 
  accounting relationships                          (ii)        0.1       20.0 
================================================  ======  =========  ========= 
 Total derivative assets exposed to USD LIBOR                   0.1       20.0 
========================================================  =========  ========= 
 

(i) The Group has the following interest rate swaps designated in fair value hedging relationships which have not yet transitioned to an alternative interest rate benchmark:

-- GBP20.0 million fixed to floating interest rate swap, maturing April 2021 which references 12-month GBP LIBOR.

-- GBP53.1 million fixed to floating interest rate swap, maturing June 2027 which references 3-month GBP LIBOR.

The Phase 2 reliefs will only apply to the GBP53.1 million swap maturing June 2027 as the Phase 1 reliefs will cease to apply to the GBP20.0 million swap when it matures in April 2021. The GBP20.0 million swap, maturing April 2021 has therefore been excluded from the table as it matures prior to transitioning to an alternative benchmark rate.

(ii) Relates to GBP85.0 million notional and US$20.0 million notional interest rate CAPs. The Group also has GBP20.0 million notional and US$75.0 million notional interest rate CAPs with a carrying value of GBPnil which are excluded from the table as they mature prior to transitioning to an alternative benchmark rate.

In addition to the financial instruments included in the tables above the Group has undrawn committed bank facilities (see Note 22) which reference the IBOR of the drawn currency. These are excluded from the tables as the Group has no drawn bank debt at 31 March 2021.

Critical accounting judgements and key sources of estimation uncertainty

In addition to the judgement taken by the Directors in selecting and applying the accounting policies set out above, the Directors have made the following judgements concerning the amounts recognised in these Condensed Consolidated Financial Statements:

Adjusted measures

The Directors believe that the adjusted profit and adjusted earnings per share measures provide additional useful information to users of the Condensed Consolidated Financial Statements to better understand the performance of the business. Accordingly the Group presents adjusted operating profit and adjusted profit before tax by adjusting for costs and profits which the Directors judge to be significant by virtue of their size, nature or incidence or which have a distortive effect on current period earnings.

In the Directors' judgement such items would include, but are not limited to, costs associated with business combinations, gains and losses on the disposal of businesses and subsidiary undertakings, finance costs relating to premium on bond buy backs, fair value movements, exceptional operating costs, impairment of goodwill and amortisation and impairment of intangible assets arising on business combinations.

Exceptional operating costs include items of a significant and a non-recurring nature. In addition, the Group presents an adjusted profit after tax measure by making adjustments for certain tax charges and credits which the Directors judge to be significant by virtue of their size, nature or incidence or which have a distortive effect. The Group uses these adjusted measures to evaluate performance and as a method to provide shareholders with clear and consistent reporting.

See Note 10 for a reconciliation of profit before tax to adjusted profit before and after tax.

The Group also presents a measure of net cash. In the judgement of the Directors, this measure should include the currency gain or loss on derivatives entered into with the intention of economically converting the currency borrowings into an alternative currency. See Note 13 for further detail.

Retirement benefits

When a surplus on a defined benefit pension scheme arises, the Directors are required to consider the rights of the Trustees in preventing the Group from obtaining a refund of that surplus in the future. Where the Trustees are able to exercise this right the Group would be required to restrict the amount of surplus recognised.

After considering the principles set out in IFRIC 14, the Directors have judged it appropriate to recognise a surplus of GBP176.0 million (31 March 2020 GBP362.9 million , 30 September 2020 GBP136.7 million ) and report a net surplus on its pension schemes amounting to GBP166.5 million (31 March 2020 GBP352.1 million ,

30 September 2020   GBP123.2 million ). 

Investment in Cazoo Holdings Ltd (Cazoo)

The Group has a 21.0% equity stake (19.4% on a fully diluted basis) in Cazoo and 20.0% Board representation.

In accordance with IAS 28, Investments in Associates and Joint Ventures, equity holdings of 20% or more of voting power (directly or through subsidiaries) indicates significant influence and result in equity accounting - unless it can be clearly demonstrated that significant influence does not exist.

The Group can participate in Cazoo Board discussions but cannot veto any Cazoo Board decisions - which are based on a simple Board majority, due to the current composition of the other seats on the Board and has no other means that give it the ability to participate in the financial and operating policy decisions of Cazoo. The Group provides no essential technical information to develop the Cazoo business and there is no interchange of managerial personnel between the Group and Cazoo. Therefore, the Directors have concluded that the Group does not possess the ability to exert significant influence over Cazoo and accordingly the Group has not equity accounted for its interest.

Cazoo has been recognised as an equity investment and measured at fair value through Other Comprehensive Income (OCI).

Mail Force Charitable Incorporated Organisation (CIO)

The Group established the Mail Force CIO during the prior year. The Group has assessed its relationship with the charity in accordance with IFRS 10, Consolidated Financial Statements and concluded that it does not have the power to affect returns to the Group from the Charity's activities and does not control Mail Force. Accordingly Mail Force's accounts have not been consolidated within the Group's financial statements.

The following represent key sources of estimation uncertainty that have the most significant effect on the amounts recognised in these Condensed Consolidated Financial Statements:

Forecasting

The Group prepares medium-term forecasts based on Board-approved budgets and four-year outlooks. These are used to support estimates made in the preparation of the Group's financial statements including the recognition of deferred tax assets in different jurisdictions, the Group's going concern assessment and for the purposes of impairment reviews. Longer-term forecasts use long-term growth rates applicable to the relevant businesses.

Impairment of goodwill and intangible assets

Determining whether goodwill and intangible or other assets are impaired or whether a reversal of an impairment should be recorded requires a comparison of the balance sheet carrying value with the recoverable amount of the asset or cash-generating unit (CGU). The recoverable amount is the higher of the value in use and fair value less costs to sell.

The value in use calculation requires the Directors to estimate the future cash flows expected to arise from the asset or CGU and calculate the net present value of these cash flows using a suitable discount rate. A key area of estimation is deciding the long-term growth rate and the operating cash flows of the applicable businesses and the discount rate applied to those cash flows. The carrying amount of goodwill and intangible assets at 31 March 2021 was GBP329.6 million (31 March 2020 GBP355.2 million , 30 September 2020 GBP350.3 million ).

Acquisitions and intangible assets

The Group's accounting policy on the acquisition of subsidiaries is to allocate purchase consideration to the fair value of identifiable assets, liabilities and contingent liabilities acquired with any excess consideration representing goodwill. Determining the fair value of assets, liabilities and contingent liabilities acquired requires significant estimates and assumptions, including assumptions with respect to cash flows and unprovided liabilities and commitments, including in respect to tax, to be used. The Group recognises intangible assets acquired as part of a business combination at fair value at the date of acquisition. The determination of these fair values is based upon the Directors' estimate and includes assumptions on the timing and amount of future cash flows generated by the assets and the selection of an appropriate discount rate. Additionally, the Directors must estimate the expected useful economic lives of intangible assets and charge amortisation on these assets accordingly.

Taxation

Being a multinational Group with tax affairs in many geographic locations inherently leads to a highly complex tax structure which makes the degree of estimation more challenging. The resolution of issues is not always within the control of the Group and actual tax liabilities or refunds may differ from those anticipated due to changes in tax legislation, differing interpretations of tax legislation and uncertainties surrounding the application of tax legislation. Such issues can take several years to resolve.

The Group accounts for unresolved issues based on its best estimate of the final outcome, however the inherent uncertainty regarding these items means that the eventual resolution could differ significantly from the accounting estimates and, therefore, impact the Group's results and future cash flows. In situations where uncertainties exist, provision is made for contingent tax liabilities and assets when it is more likely than not that there will be a cash impact. These provisions are made for each uncertainty individually based on the Directors' estimates following consideration of the available relevant information. The measurement basis adopted represents the best predictor of the resolution of the uncertainty which is usually based on the most likely cash outflow. The Company reviews the adequacy of these provisions at the end of each reporting period and adjusts them based on changing facts and circumstances.

In addition, the Group makes estimates regarding the recoverability of deferred tax assets relating to losses based on forecasts of future taxable profits which are, by their nature, uncertain.

Retirement benefit obligations

The cost of defined benefit pension plans is determined using actuarial valuations prepared by the Group's actuaries. This involves making certain assumptions concerning discount rates, future salary increases and mortality rates. Due to the long-term nature of these plans, such estimates are subject to significant uncertainty. The assumptions and the resulting estimates are reviewed annually and, when appropriate, changes are made which affect the actuarial valuations and, hence, the amount of retirement benefit expense recognised in the Consolidated Income Statement and the amounts of actuarial gains and losses recognised in the Consolidated Statement of Changes in Equity.

The fair value of the Group's pension scheme assets include quoted and unquoted investments. The value of unquoted investments are estimated as their values are not directly observable. Accordingly the assumptions used in valuing unquoted investments are affected by current market conditions and trends which could result in changes in their fair value after the measurement date. A 1.0% movement in the value of unquoted pension scheme assets is estimated to change the value of the Group's pension scheme assets by GBP21.3 million (31 March 2020

GBP23.2 million , 30 September 2020   GBP23.0 million ). 

The carrying amount of the retirement benefit obligation at 31 March 2021 was a net surplus of GBP 166.5 million (31 March 2020 GBP 352.1 million, 30 September 2020 GBP 123.2 million). The assumptions used can be found in Note 26 .

Legal claim provision

DMGT and certain of its subsidiaries are involved in various lawsuits and claims which arise in the course of business. The Group records a provision for these matters when it is probable that a liability will be incurred and the amount of the loss can be reasonably estimated.

The amounts accrued for legal contingencies often result from complex judgements about future events and uncertainties that rely heavily on estimates and assumptions.

As disclosed in Note 16 discontinued operations, Genscape has been involved in a dispute with the US Environmental Protection Agency (EPA) since 2016. In 2017 Genscape voluntarily paid a 2.0% liability cap associated with invalid Renewable Identification Numbers (RINs) at a cost of US$1.3 million, based on the then-prevailing market rates, subject to a reservation of rights. However, during 2019 the EPA ordered Genscape to replace 69.2 million additional RINs it had verified.

DMGT continues to cooperate with the EPA and settlement discussions are ongoing but considering the uncertainties involved, the length of time involved and taking note of the order from the EPA, the Group, without admitting any wrongdoing, made a provision for the total cost of replacing RINs as at 30 September 2019.

At each period end IAS 37 requires DMGT to review this provision and make appropriate adjustments to reflect the current status of the claim. The Group's closing provision includes the cost of replacement RINs, estimated purchase costs, associated legal fees and currency fluctuations. The final settlement amount may be different than the provision made, however, it is not possible for the Group to predict with any certainty the potential impact of this litigation or to quantify the ultimate cost of a verdict or resolution. Accordingly, the provision could change substantially over time as the dispute progresses and new facts emerge.

RINs trade in a volatile range averaging 68 cents over the previous 18-month period compared to the period end price of US$1.23. The Group estimates that using the period end price rather than the 18-month average price would increase the provision by approximately US$25.2 million (GBP18.3 million).

Investment in Cazoo

The Group currently owns a 21.0% equity stake (19.4% on a fully diluted basis) in Cazoo.

In March 2021 Cazoo announced a definitive business combination agreement with AJAX I (AJAX), a publicly traded special purpose acquisition company (SPAC) listed on the New York Stock Exchange (NYSE). Upon closing of the proposed transaction, the combined company will be named Cazoo and be listed on the NYSE.

This transaction values the combined company at a pro forma enterprise value of approximately US$7.0 billion and a pro forma equity value of approximately US$8.1 billion. The transaction includes up to US$805.0 million AJAX cash in trust, assuming no redemptions by AJAX shareholders, and an US$800.0 million fully committed private investment in public equity (PIPE) at US$10.00 per share, led by the AJAX sponsors and D1 Capital Partners, and including new and existing investors.

On closing of the transaction, which is expected in the third quarter of the current calendar year, and assuming no redemptions by AJAX shareholders, the combined value in cash proceeds and shares in the listed Cazoo, valued at the US$10.00 per share issue price, that the Group will receive on closing is expected to be approximately US$1.35 billion. It is likely that the Group will receive some cash proceeds on closing, but the amount will depend on a number of factors, including redemptions by AJAX shareholders, if any, as well as the Group's election and those of other shareholders with respect to receipt of cash consideration. Lock-up restrictions are expected to apply for five to six months after the transaction closes.

Whilst the Directors believe the transaction is likely to complete, these Condensed Consolidated Financial Statements are required to include an estimate of fair value of the Group's interest in Cazoo as at 31 March 2021 using the principles of IFRS 9, Financial Instruments based on facts and circumstances which existed at that date.

Accordingly, in these Condensed Consolidated Financial Statements the Directors have not relied solely on the anticipated closing of the transaction nor the expected future valuation of the listed Cazoo entity since these are not known with certainty at the period end. The transaction remains subject to the satisfaction of conditions precedent.

To assess the fair value of the Group's interest in Cazoo using the principles of IFRS 9, the Directors have applied a probability weighted expected returns assessment based on the facts and circumstances which existed as at 31 March 2021. This has included consideration of the following key transaction risks:

   --      a large level of redemptions by AJAX shareholders; 
   --      AJAX shareholders not approving the transaction; and 
   --      PIPE commitments not being fulfilled. 

The IFRS 9 fair value has been estimated using a probability weighting of two valuation scenarios:

-- A valuation based on the expected value to be derived from the proposed SPAC transaction (the SPAC scenario); and

-- A valuation based on an alternative stay private outcome should the future SPAC transaction not proceed due to any of the aforementioned risks (the Stay Private scenario)

The two scenarios have been weighted based on the Directors' assessment of the likelihood of each scenario occurring. Using information available at 31 March 2021, following the principles of IFRS 9, the Directors have attributed a weighting of approximately 86% to the SPAC scenario valuation, leaving a 14% weighting to the Stay Private scenario.

In both scenarios, the valuations of DMGT's interest reflect discounts for marketability, based on DMGT's minority holding in an unlisted private company at 31 March 2021 which would inherently be less liquid than shares listed on the NYSE. To assess a marketability discount the Directors have considered the historic share price volatility of companies in the same sector which was estimated to be 80% together with expectations of Cazoo's future trading performance.

Based on this assessment the Group has increased the fair value of its investment in Cazoo as at 31 March 2021 by GBP392.9 million which has been recognised in Other Comprehensive Income.

A 10% increase or decrease in the fair value of Cazoo would increase or decrease the fair value of the Group's investment in Cazoo by GBP80.2 million which would be recognised in Other Comprehensive Income.

Investment in Taboola.com Ltd (Taboola)

The Group currently owns a 0.4% stake in Taboola. In January 2021, Taboola announced a definitive business combination agreement with ION Acquisition Corp. 1 Ltd (ION), a publicly traded special purpose acquisition company (SPAC) listed on the New York Stock Exchange (NYSE). Upon closing of the proposed transaction, which is expected to complete in July 2021, the combined company will be named Taboola and be listed on the NYSE under the new symbol "TBLA".

This transaction values the combined company at a pro forma valuation of approximately US$2.6 billion. The transaction includes up to US$259.0 million ION cash in trust, assuming no redemptions by ION shareholders, and an US$285.0 million fully committed private investment in public equity (PIPE) at US$10.00 per share, led by the ION sponsors and Phoenix Insurance, and including new and existing investors.

On closing of the transaction, which is expected in the coming months the value in listed Taboola shares that the Group will receive, at the US$10.00 per share issue price, is expected to be approximately US$7.8 million. The Group will not receive cash proceeds on closing. Lock-up restrictions are expected to apply for five to six months after the transaction closes.

Whilst the Directors believe the transaction is likely to complete, these Condensed Consolidated Financial Statements are required to include an estimate of fair value of the Group's interest in Taboola as at 31 March 2021 using the principles of IFRS 9, Financial Instruments based on facts and circumstances which existed at that date.

Accordingly, in these Condensed Consolidated Financial Statements the Directors have not relied solely on the anticipated closing of the transaction nor the expected future valuation of the listed Taboola entity since these are not known with certainty at the period end. The transaction remains subject to the satisfaction of conditions precedent.

To assess the fair value of the Group's interest in Taboola using the principles of IFRS 9, the Directors have applied a probability weighted expected returns assessment based on the facts and circumstances which existed as at 31 March 2021. This has included consideration of the following key risks:

   --        a large level of redemptions by ION shareholders; 
   --        ION shareholders not approving the transaction; and 
   --        PIPE commitments not being fulfilled. 

The IFRS 9 fair value has been estimated using a probability weighting of two valuation scenarios:

-- A valuation based on the expected value to be derived from the proposed SPAC transaction (the SPAC scenario); and

-- A valuation based on an alternative stay private outcome should the future SPAC transaction not proceed due to any of the aforementioned risks (the Stay Private scenario)

The two scenarios have been weighted based on the Directors' assessment of the likelihood of each scenario occurring. Using information available at 31 March 2021, following the principles of IFRS 9, the Directors have attributed a weighting of approximately 77% to the SPAC scenario valuation, leaving a 23% weighting to the Stay Private scenario.

In both scenarios, the valuations of DMGT's interest reflect discounts for marketability, based on DMGT's minority holding in an unlisted private company at 31 March 2021 which would inherently be less liquid than shares listed on the NYSE. To assess a marketability discount the Directors have considered the historic share price volatility of companies in the same sector which was estimated to be 100% together with expectations of Taboola's future trading performance.

Based on this assessment the Group has increased the fair value of its investment in Taboola as at 31 March 2021 by GBP1.4 million which has been recognised in Other Comprehensive Income.

A 10% increase or decrease in the fair value of Taboola would increase or decrease the fair value of the Group's investment in Taboola by GBP0.4 million which would be recognised in Other Comprehensive Income.

3 Segment analysis

The Group's business activities are split into four continuing operating divisions: Insurance Risk, Property Information, Events and Exhibitions and Consumer Media. These divisions are the basis on which information is reported to the Group's Chief Operating Decision Maker, which has been determined to be the Group Board. The segment result is the measure used for the purposes of resource allocation and assessment and represents profit earned by each segment, including share of results from joint ventures and associates but before exceptional operating costs, amortisation of acquired intangible assets arising on business combinations, impairment charges, other gains and losses, net finance costs and taxation.

The results from the Group's Events and Exhibitions segment are impacted by the seasonality of exhibitions and conferences held in each accounting period. The impact of this seasonality and details of the types of products and services from which each segment derives its revenues are included within the business review.

The accounting policies applied in preparing the management information for each of the reportable segments are the same as the Group's accounting policies described in Notes 1 and 2 .

 
                                                                                       Less operating 
                                                                                        (loss)/profit 
                                                             Total          Segment          of joint         Adjusted 
 Unaudited 6 months ended 31 March                    and external        operating          ventures        operating 
  2021                                                     revenue    profit/(loss)    and associates    profit/(loss) 
                                              Note            GBPm             GBPm              GBPm             GBPm 
-------------------------------------------  -----  --------------  ---------------  ----------------  --------------- 
 Insurance Risk                                              117.1             18.3                 -             18.3 
===========================================  =====  ==============  ===============  ================  =============== 
 Property Information                                        114.9             22.4               0.6             21.8 
===========================================  =====  ==============  ===============  ================  =============== 
 EdTech                                                       33.5              1.0                 -              1.0 
===========================================  =====  ==============  ===============  ================  =============== 
 Events and Exhibitions                                        3.8            (0.5)                 -            (0.5) 
===========================================  =====  ==============  ===============  ================  =============== 
 Consumer Media                                              311.0             34.0                 -             34.0 
===========================================  =====  ==============  ===============  ================  =============== 
                                                             580.3             75.2               0.6             74.6 
===========================================  =====  ==============  ===============  ================  =============== 
 Corporate costs                                                 -           (22.1)             (2.0)           (20.1) 
===========================================  =====  ==============  ===============  ================  =============== 
 Discontinued operations                        16          (33.5)            (1.0)                 -            (1.0) 
===========================================  =====  ==============  ===============  ================  =============== 
                                                             546.8 
===========================================  =====  ==============  ===============  ================  =============== 
 Adjusted operating profit                      12                                                                53.5 
===========================================  =====  ==============  ===============  ================  =============== 
 Exceptional operating costs                                                                                     (1.7) 
===========================================  =====  ==============  ===============  ================  =============== 
 Amortisation of acquired intangible 
  assets arising on business combinations                                                                        (6.6) 
===========================================  =====  ==============  ===============  ================  =============== 
 Operating profit before share of 
  results of joint ventures and associates                                                                        45.2 
===========================================  =====  ==============  ===============  ================  =============== 
 Share of results of joint ventures 
  and associates                                 4                                                               (1.4) 
===========================================  =====  ==============  ===============  ================  =============== 
 Total operating profit                                                                                           43.8 
===========================================  =====  ==============  ===============  ================  =============== 
 Other gains and losses                          5                                                                 4.0 
===========================================  =====  ==============  ===============  ================  =============== 
 Profit before investment revenue, 
  net finance costs and tax                                                                                       47.8 
===========================================  =====  ==============  ===============  ================  =============== 
 Investment revenue                              6                                                                 1.8 
===========================================  =====  ==============  ===============  ================  =============== 
 Finance expense                                 7                                                               (8.9) 
===========================================  =====  ==============  ===============  ================  =============== 
 Finance income                                  7                                                                 1.7 
===========================================  =====  ==============  ===============  ================  =============== 
 Profit before tax                                                                                                42.4 
===========================================  =====  ==============  ===============  ================  =============== 
 Tax                                             8                                                                35.6 
===========================================  =====  ==============  ===============  ================  =============== 
 Profit from discontinued operations            16                                                               175.3 
===========================================  =====  ==============  ===============  ================  =============== 
 Profit for the period                                                                                           253.3 
===========================================  =====  ==============  ===============  ================  =============== 
 

An analysis of the amortisation of intangible assets and exceptional operating costs by segment is as follows:

 
Unaudited 6 months ended 31 March 2021           Amortisation    Amortisation 
                                                of intangible   of intangible 
                                                       assets          assets 
                                                  not arising         arising  Exceptional 
                                                  on business     on business    operating 
                                                 combinations    combinations        costs 
                                                    (Note 18)       (Note 18) 
                                         Note            GBPm            GBPm         GBPm 
=======================================  ====  ==============  ==============  =========== 
Insurance Risk                                          (0.1)               -            - 
=======================================  ====  ==============  ==============  =========== 
Property Information                                    (2.4)           (3.1)            - 
=======================================  ====  ==============  ==============  =========== 
EdTech                                                  (3.0)           (0.2)            - 
=======================================  ====  ==============  ==============  =========== 
Events and Exhibitions                                  (0.1)           (1.6)            - 
=======================================  ====  ==============  ==============  =========== 
Energy Information                                          -               -        (4.7) 
=======================================  ====  ==============  ==============  =========== 
Consumer Media                                          (0.4)           (1.9)        (0.2) 
=======================================  ====  ==============  ==============  =========== 
                                                        (6.0)           (6.8)        (4.9) 
=======================================  ====  ==============  ==============  =========== 
Corporate costs                                         (0.6)               -        (1.5) 
=======================================  ====  ==============  ==============  =========== 
                                                        (6.6)           (6.8)        (6.4) 
=======================================  ====  ==============  ==============  =========== 
Relating to discontinued operations        16             3.0             0.2          4.7 
=======================================  ====  ==============  ==============  =========== 
Continuing operations                                   (3.6)           (6.6)        (1.7) 
=======================================  ====  ==============  ==============  =========== 
 

The Group's exceptional operating costs are analysed as follows:

 
Unaudited 6 months ended 31 March 2021                  Legal fees 
                                                 LTIP   and claims   Total 
                                                  (i) 
                                         Note    GBPm         GBPm    GBPm 
=======================================  ====  ======  ===========  ====== 
Energy Information                                  -        (4.7)   (4.7) 
=======================================  ====  ======  ===========  ====== 
Consumer Media                                  (0.2)            -   (0.2) 
=======================================  ====  ======  ===========  ====== 
                                                (0.2)        (4.7)   (4.9) 
=======================================  ====  ======  ===========  ====== 
Corporate costs                                 (1.5)            -   (1.5) 
=======================================  ====  ======  ===========  ====== 
                                                (1.7)        (4.7)   (6.4) 
=======================================  ====  ======  ===========  ====== 
Relating to discontinued operations        16       -          4.7     4.7 
=======================================  ====  ======  ===========  ====== 
Continuing operations                           (1.7)            -   (1.7) 
=======================================  ====  ======  ===========  ====== 
 

(i) During the year ended 30 September 2018 the Group sold its investment in ZPG Plc (ZPG) resulting in a profit on sale of GBP508.4 million and during the year ended 30 September 2019 the Group disposed of its investment in Euromoney Institutional Investor PLC (Euromoney). As a direct consequence of these disposals, the charge relating to the DMGT Long Term Incentive Plans (LTIPs) is estimated to have increased by GBP23.3 million. As the LTIPs include a service period condition, IFRS 2, Share-based Payment requires the LTIP charge to be spread over the service period until the award vests. The LTIP charge recognised in the period which relates to the disposals of ZPG and Euromoney amounts to GBP1.7 million. Since the profit on sale of ZPG and the capital benefit of the Euromoney disposal were excluded from the adjusted profit measure, the incremental increase in the LTIP charge has been treated as an adjusting item and will continue to be so until the awards vest.

The Group's tax charge includes a credit of GBP3.6 million in relation to these exceptional operating costs of which GBP0.9 million tax credit relates to discontinued operations.

An analysis of the depreciation of right of use assets and property, plant and equipment, research costs, other gains and losses, investment revenue, and finance income and expense by segment is as follows:

 
Unaudited 6                  Depreciation   Depreciation 
 months ended                    of right   of property, 
 31 March 2021                     of use      plant and  Research  Other gains  Investment   Finance   Finance 
                                   assets      equipment     costs   and losses     revenue    income   expense 
                                (Note 20)      (Note 19)               (Note 5)    (Note 6)  (Note 7)  (Note 7) 
                       Note          GBPm           GBPm      GBPm         GBPm        GBPm      GBPm      GBPm 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
Insurance Risk                      (3.1)          (2.3)    (16.6)            -         0.1         -     (1.0) 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
Property Information                (1.0)          (0.8)         -          0.4           -         -     (0.2) 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
EdTech                              (0.5)          (0.1)         -        236.5           -         -     (0.1) 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
Events and 
 Exhibitions                        (0.4)          (0.1)         -        (0.3)           -         -         - 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
Energy Information                      -              -         -          0.1           -         -         - 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
Consumer Media                      (5.5)          (7.5)         -          2.7           -       1.0     (0.4) 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
                                   (10.5)         (10.8)    (16.6)        239.4         0.1       1.0     (1.7) 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
Corporate costs                         -          (0.3)         -          1.2         1.7       0.7     (7.3) 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
                                   (10.5)         (11.1)    (16.6)        240.6         1.8       1.7     (9.0) 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
Relating to 
 discontinued 
 operations              16           0.5            0.1         -      (236.6)           -         -       0.1 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
Continuing 
 operations                        (10.0)         (11.0)    (16.6)          4.0         1.8       1.7     (8.9) 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
 
 
Unaudited 6 months ended 31 March                                             Less operating 
 2020                                             Total and         Segment          loss of        Adjusted 
                                                   external       operating   joint ventures       operating 
                                                    revenue   profit/(loss)   and associates   profit/(loss) 
 
                                            Note       GBPm            GBPm             GBPm            GBPm 
==========================================  ====  =========  ==============  ===============  ============== 
Insurance Risk                                        123.1            18.5            (0.6)            19.1 
==========================================  ====  =========  ==============  ===============  ============== 
Property Information                                   96.0            11.6            (0.1)            11.7 
==========================================  ====  =========  ==============  ===============  ============== 
EdTech                                                 41.8             2.2                -             2.2 
==========================================  ====  =========  ==============  ===============  ============== 
Events and Exhibitions                                 77.1             5.0                -             5.0 
==========================================  ====  =========  ==============  ===============  ============== 
Energy Information                                      7.1             1.6                -             1.6 
==========================================  ====  =========  ==============  ===============  ============== 
Consumer Media                                        345.3            44.2                -            44.2 
==========================================  ====  =========  ==============  ===============  ============== 
                                                      690.4            83.1            (0.7)            83.8 
==========================================  ====  =========  ==============  ===============  ============== 
Corporate costs                                           -          (24.5)            (6.1)          (18.4) 
==========================================  ====  =========  ==============  ===============  ============== 
Discontinued operations                       16     (48.9)           (3.8)                -           (3.8) 
==========================================  ====  =========  ==============  ===============  ============== 
                                                      641.5 
==========================================  ====  =========  ==============  ===============  ============== 
Adjusted operating profit                     12                                                        61.6 
==========================================  ====  =========  ==============  ===============  ============== 
Exceptional operating costs                                                                            (3.5) 
==========================================  ====  =========  ==============  ===============  ============== 
Impairment of goodwill and acquired 
 intangible assets arising on business 
 combinations                                                                                          (8.2) 
==========================================  ====  =========  ==============  ===============  ============== 
Amortisation of acquired intangible 
 assets arising on business combinations                                                               (5.1) 
==========================================  ====  =========  ==============  ===============  ============== 
Operating profit before share of 
 results of joint ventures and associates                                                               44.8 
==========================================  ====  =========  ==============  ===============  ============== 
Share of results of joint ventures 
 and associates                                4                                                      (10.1) 
==========================================  ====  =========  ==============  ===============  ============== 
Total operating profit                                                                                  34.7 
==========================================  ====  =========  ==============  ===============  ============== 
Other gains and losses                         5                                                        43.4 
==========================================  ====  =========  ==============  ===============  ============== 
Profit before investment revenue, 
 net finance costs and tax                                                                              78.1 
==========================================  ====  =========  ==============  ===============  ============== 
Investment revenue                             6                                                         5.1 
==========================================  ====  =========  ==============  ===============  ============== 
Finance expense                                7                                                       (8.4) 
==========================================  ====  =========  ==============  ===============  ============== 
Finance income                                 7                                                         2.2 
==========================================  ====  =========  ==============  ===============  ============== 
Profit before tax                                                                                       77.0 
==========================================  ====  =========  ==============  ===============  ============== 
Tax                                            8                                                       (4.3) 
==========================================  ====  =========  ==============  ===============  ============== 
Profit from discontinued operations           16                                                       132.3 
==========================================  ====  =========  ==============  ===============  ============== 
Profit for the period                                                                                  205.0 
==========================================  ====  =========  ==============  ===============  ============== 
 

An analysis of the amortisation and impairment of goodwill and intangible assets and exceptional operating costs by segment is as follows:

 
Unaudited 6 months ended 31 March                                                Impairment 
 2020                                         Amortisation    Amortisation      of goodwill 
                                             of intangible   of intangible   and intangible 
                                                    assets          assets           assets 
                                               not arising         arising          arising      Exceptional 
                                               on business     on business      on business        operating 
                                              combinations    combinations     combinations   (costs)/income 
                                                 (Note 18)       (Note 18)        (Note 18) 
                                      Note            GBPm            GBPm             GBPm             GBPm 
====================================  ====  ==============  ==============  ===============  =============== 
Property Information                                 (2.4)           (2.9)                -                - 
====================================  ====  ==============  ==============  ===============  =============== 
EdTech                                               (3.7)           (0.4)                -                - 
====================================  ====  ==============  ==============  ===============  =============== 
Events and Exhibitions                                   -           (0.6)            (5.3)                - 
====================================  ====  ==============  ==============  ===============  =============== 
Energy Information                                       -               -                -             11.4 
====================================  ====  ==============  ==============  ===============  =============== 
Consumer Media                                       (1.1)           (1.6)            (2.9)            (0.5) 
====================================  ====  ==============  ==============  ===============  =============== 
                                                     (7.2)           (5.5)            (8.2)             10.9 
====================================  ====  ==============  ==============  ===============  =============== 
Corporate costs                                      (0.7)               -                -            (3.0) 
====================================  ====  ==============  ==============  ===============  =============== 
                                                     (7.9)           (5.5)            (8.2)              7.9 
====================================  ====  ==============  ==============  ===============  =============== 
Relating to discontinued operations     16             3.7             0.4                -           (11.4) 
====================================  ====  ==============  ==============  ===============  =============== 
Continuing operations                                (4.2)           (5.1)            (8.2)            (3.5) 
====================================  ====  ==============  ==============  ===============  =============== 
 

The Group's exceptional operating (costs)/income is analysed as follows:

 
Unaudited 6 months ended 31 March 2020                  Legal fees 
                                         Note    LTIP   and claims    Total 
                                                  (i) 
                                                 GBPm         GBPm     GBPm 
=======================================  ====  ======  ===========  ======= 
Energy Information                                  -         11.4     11.4 
=======================================  ====  ======  ===========  ======= 
Consumer Media                                  (0.5)            -    (0.5) 
=======================================  ====  ======  ===========  ======= 
                                                (0.5)         11.4     10.9 
=======================================  ====  ======  ===========  ======= 
Corporate costs                                 (3.0)            -    (3.0) 
=======================================  ====  ======  ===========  ======= 
                                                (3.5)         11.4      7.9 
=======================================  ====  ======  ===========  ======= 
Relating to discontinued operations        16       -       (11.4)   (11.4) 
=======================================  ====  ======  ===========  ======= 
Continuing operations                           (3.5)            -    (3.5) 
=======================================  ====  ======  ===========  ======= 
 

(i) During the year ended 30 September 2018 the Group sold its investment in ZPG Plc (ZPG) resulting in a profit on sale of GBP508.4 million and during the year ended 30 September 2019 the Group disposed of its investment in Euromoney Institutional Investor PLC (Euromoney). As a direct consequence of these disposals, the charge relating to the DMGT Long Term Incentive Plans (LTIPs) is estimated to have increased by GBP23.2 million. As the LTIPs include a service period condition, IFRS 2, Share-based Payment requires the LTIP charge to be spread over the service period until the award vests. The LTIP charge recognised in the period which relates to the disposals of ZPG and Euromoney amounts to GBP3.5 million. Since the profit on sale of ZPG and the capital benefit of the Euromoney disposal are excluded from the adjusted profit measure, the incremental increase in the LTIP charge has been treated as an adjusting item and will continue to be so until the awards vest.

The Group's tax charge includes charges of GBP1.6 million in relation to these exceptional operating costs of which GBP2.4 million tax charge relates to discontinued operations.

An analysis of the depreciation of right of use assets and property, plant and equipment, research costs, other gains and losses, investment revenue, and net finance costs by segment is as follows:

 
Unaudited 6                  Depreciation   Depreciation 
 months ended                    of right   of property, 
 31 March 2020                     of use      plant and  Research  Other gains  Investment   Finance   Finance 
                                   assets      equipment     costs   and losses     revenue    income   expense 
 
                                (Note 20)      (Note 19)               (Note 5)    (Note 6)  (Note 7)  (Note 7) 
                       Note          GBPm           GBPm      GBPm         GBPm        GBPm      GBPm      GBPm 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
Insurance Risk                      (2.6)          (2.7)    (19.4)            -         0.2         -         - 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
Property Information                (1.0)          (1.0)         -         37.0           -         -     (0.3) 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
EdTech                              (0.6)          (0.2)         -          0.5         0.9         -     (0.1) 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
Events and 
 Exhibitions                        (0.3)          (0.1)         -        (0.1)           -         -         - 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
Energy Information                      -              -     (0.5)        134.3           -         -         - 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
Consumer Media                      (5.3)          (6.9)         -          5.6           -       1.6     (0.6) 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
                                    (9.8)         (10.9)    (19.9)        177.3         1.1       1.6     (1.0) 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
Corporate costs                         -          (0.2)         -          0.9         4.9       0.6     (7.5) 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
                                    (9.8)         (11.1)    (19.9)        178.2         6.0       2.2     (8.5) 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
Relating to 
 discontinued 
 operations              16           0.6            0.2       0.5      (134.8)       (0.9)         -       0.1 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
Continuing 
 operations                         (9.2)         (10.9)    (19.4)         43.4         5.1       2.2     (8.4) 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
 
 
Audited Year ended 30 September 2020                                          Less operating 
                                                                               profit/(loss) 
                                                  Total and         Segment         of joint        Adjusted 
                                                   external       operating         ventures       operating 
                                                    revenue   profit/(loss)   and associates   profit/(loss) 
 
                                            Note       GBPm            GBPm             GBPm            GBPm 
==========================================  ====  =========  ==============  ===============  ============== 
Insurance Risk                                        248.3            33.0            (0.7)            33.7 
==========================================  ====  =========  ==============  ===============  ============== 
Property Information                                  186.6            25.0              1.0            24.0 
==========================================  ====  =========  ==============  ===============  ============== 
EdTech                                                 84.9             5.9                -             5.9 
==========================================  ====  =========  ==============  ===============  ============== 
Events and Exhibitions                                 79.2             3.8                -             3.8 
==========================================  ====  =========  ==============  ===============  ============== 
Energy Information                                      7.1             1.6                -             1.6 
==========================================  ====  =========  ==============  ===============  ============== 
Consumer Media                                        604.4            55.8                -            55.8 
==========================================  ====  =========  ==============  ===============  ============== 
                                                    1,210.5           125.1              0.3           124.8 
==========================================  ====  =========  ==============  ===============  ============== 
Corporate costs                                           -          (40.5)            (5.6)          (34.9) 
==========================================  ====  =========  ==============  ===============  ============== 
Discontinued operations                       16     (92.0)           (7.5)                -           (7.5) 
==========================================  ====  =========  ==============  ===============  ============== 
                                                    1,118.5 
==========================================  ====  =========  ==============  ===============  ============== 
Adjusted operating profit                     12                                                        82.4 
==========================================  ====  =========  ==============  ===============  ============== 
Exceptional operating costs, impairment 
 of internally generated and acquired 
 computer software                                                                                    (36.6) 
==========================================  ====  =========  ==============  ===============  ============== 
Impairment of goodwill and acquired 
 intangible assets arising on business 
 combinations                                                                                         (14.1) 
==========================================  ====  =========  ==============  ===============  ============== 
Amortisation of acquired intangible 
 assets arising on business combinations                                                              (10.6) 
==========================================  ====  =========  ==============  ===============  ============== 
Operating profit before share of 
 results of joint ventures and associates                                                               21.1 
==========================================  ====  =========  ==============  ===============  ============== 
Share of results of joint ventures 
 and associates                                4                                                      (11.4) 
==========================================  ====  =========  ==============  ===============  ============== 
Total operating profit                                                                                   9.7 
==========================================  ====  =========  ==============  ===============  ============== 
Other gains and losses                         5                                                        42.1 
==========================================  ====  =========  ==============  ===============  ============== 
Profit before investment revenue, 
 net finance costs and tax                                                                              51.8 
==========================================  ====  =========  ==============  ===============  ============== 
Investment revenue                             6                                                         7.4 
==========================================  ====  =========  ==============  ===============  ============== 
Finance expense                                7                                                      (17.6) 
==========================================  ====  =========  ==============  ===============  ============== 
Finance income                                 7                                                         4.4 
==========================================  ====  =========  ==============  ===============  ============== 
Profit before tax                                                                                       46.0 
==========================================  ====  =========  ==============  ===============  ============== 
Tax                                            8                                                         0.1 
==========================================  ====  =========  ==============  ===============  ============== 
Loss from discontinued operations             16                                                       142.9 
==========================================  ====  =========  ==============  ===============  ============== 
Profit for the year                                                                                    189.0 
==========================================  ====  =========  ==============  ===============  ============== 
 

An analysis of the amortisation and impairment of goodwill and intangible assets and exceptional operating costs by segment is as follows:

 
Audited Year ended 30                                                      Impairment 
September                               Amortisation    Amortisation      of goodwill      Impairment 
2020                                   of intangible   of intangible   and intangible   of internally 
                                              assets          assets           assets       generated 
                                         not arising         arising          arising    and acquired      Exceptional 
                                         on business     on business      on business        computer        operating 
                                        combinations    combinations     combinations        software   (costs)/income 
                                               (Note           (Note            (Note           (Note 
                                                 18)             18)              18)             18) 
                                Note            GBPm            GBPm             GBPm            GBPm             GBPm 
==============================  ====  ==============  ==============  ===============  ==============  =============== 
Insurance Risk                                 (0.1)               -                -               -           (20.4) 
==============================  ====  ==============  ==============  ===============  ==============  =============== 
Property Information                           (4.9)           (6.1)                -           (1.5)            (1.0) 
==============================  ====  ==============  ==============  ===============  ==============  =============== 
EdTech                                         (7.3)           (0.7)                -               -                - 
==============================  ====  ==============  ==============  ===============  ==============  =============== 
Events and Exhibitions                         (0.1)           (1.3)           (11.2)               -            (1.5) 
==============================  ====  ==============  ==============  ===============  ==============  =============== 
Energy Information                                 -               -                -               -             11.4 
==============================  ====  ==============  ==============  ===============  ==============  =============== 
Consumer Media                                 (1.6)           (3.2)            (2.9)               -            (7.2) 
==============================  ====  ==============  ==============  ===============  ==============  =============== 
                                              (14.0)          (11.3)           (14.1)           (1.5)           (18.7) 
==============================  ====  ==============  ==============  ===============  ==============  =============== 
Corporate costs                                (1.4)               -                -               -            (5.0) 
==============================  ====  ==============  ==============  ===============  ==============  =============== 
                                              (15.4)          (11.3)           (14.1)           (1.5)           (23.7) 
==============================  ====  ==============  ==============  ===============  ==============  =============== 
Relating to discontinued 
 operations                       16             7.3             0.7                -               -           (11.4) 
==============================  ====  ==============  ==============  ===============  ==============  =============== 
Continuing operations                          (8.1)          (10.6)           (14.1)           (1.5)           (35.1) 
==============================  ====  ==============  ==============  ===============  ==============  =============== 
 

The Group's exceptional operating (costs)/income is analysed as follows:

 
Audited Year ended 30             Severance 
 September 2020                   and other                 Option 
                                    closure           modification   Legal fees 
                                      costs    LTIP         charge   and claims    Total 
                                        (i)    (ii)          (iii) 
                           Note        GBPm    GBPm           GBPm         GBPm     GBPm 
=========================  ====  ==========  ======  =============  ===========  ======= 
Insurance Risk                            -       -         (20.4)            -   (20.4) 
=========================  ====  ==========  ======  =============  ===========  ======= 
Property Information                  (1.0)       -              -            -    (1.0) 
=========================  ====  ==========  ======  =============  ===========  ======= 
Events and Exhibitions                (1.5)       -              -            -    (1.5) 
=========================  ====  ==========  ======  =============  ===========  ======= 
Energy Information                        -       -              -         11.4     11.4 
=========================  ====  ==========  ======  =============  ===========  ======= 
Consumer Media                        (6.1)   (1.1)              -            -    (7.2) 
=========================  ====  ==========  ======  =============  ===========  ======= 
                                      (8.6)   (1.1)         (20.4)         11.4   (18.7) 
=========================  ====  ==========  ======  =============  ===========  ======= 
Corporate costs                           -   (5.0)              -            -    (5.0) 
=========================  ====  ==========  ======  =============  ===========  ======= 
                                      (8.6)   (6.1)         (20.4)         11.4   (23.7) 
=========================  ====  ==========  ======  =============  ===========  ======= 
Relating to discontinued 
 operations                  16           -       -              -       (11.4)   (11.4) 
=========================  ====  ==========  ======  =============  ===========  ======= 
Continuing operations                 (8.6)   (6.1)         (20.4)            -   (35.1) 
=========================  ====  ==========  ======  =============  ===========  ======= 
 

(i) Headcount was reduced in the Property Information, Events and Exhibitions and Consumer Media segments to enhance the future profitability of individual product lines and support the margins of these businesses.

(ii) During the year ended 30 September 2018, the Group sold its investment in ZPG Plc (ZPG) resulting in a profit on sale of GBP508.4 million and during the year ended 30 September 2019 the Group disposed of its investment in Euromoney Institutional Investor PLC (Euromoney). As a direct consequence of these disposals the charge relating to the DMGT Long Term Incentive Plans (LTIPs) is estimated to have increased by GBP22.5 million. As the LTIPs include a service period condition, IFRS 2, Share-based Payment requires the LTIP charge to be spread over the service period until the award vests. The LTIP charge recognised in the period, which relates to the disposals of ZPG and Euromoney amounts to GBP6.1 million. Since the profit on sale of ZPG and the capital benefit of the Euromoney disposal are excluded from the adjusted profit measure, the incremental increase in the LTIP charge as an adjusting item and will continue to be so until these awards vest.

(iii) Options granted under the 2015 RMS Equity Incentive Plan (2015 Plan) originally required satisfying two conditions in order to vest - a service period and the occurrence of an initial public offering (IPO) of RMS or an event in which the Group ceased to hold at least 50.0% of the voting rights of RMS. Since the possibility of an IPO or change in control was considered improbable, in accordance with IFRS 2, Share-based Payment, the Group had not booked a charge to the Consolidated Income Statement for this 2015 Plan.

On 20 July 2020, the Group modified the 2015 Plan such that vesting now occurs only on the satisfaction of a service period, which causes vesting to be considered probable. Following this modification and in accordance with IFRS 2, the Group is required to recognise a charge of GBP20.4 million (US$26.2 million) for the cumulative service rendered by participants from grant to modification. Due to the materiality and non-recurring nature of this charge, the Group has classified the modification charge as an adjusting item.

The charge in the Consolidated Income Statement for the period post modification to the period end amounts to GBP2.0 million (US$2.6 million) which has been charged against the Group's adjusted operating profit.

The Group's tax charge includes a credit of GBP4.7 million in relation to these exceptional operating costs of which a charge of GBP2.4 million relates to discontinued operations.

An analysis of the depreciation of right of use assets and property, plant and equipment, research costs, other gains and losses, investment revenue and finance income and expense by segment is as follows:

 
Audited Year                 Depreciation   Depreciation 
 ended 30 September              of right   of property, 
 2020                              of use      plant and  Research  Other gains  Investment   Finance   Finance 
                                   assets      equipment     costs   and losses     revenue    income   expense 
 
                                    (Note                                                              (Note 7) 
                                      20)      (Note 19)               (Note 5)    (Note 6)  (Note 7) 
                       Note          GBPm           GBPm      GBPm         GBPm        GBPm      GBPm      GBPm 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
Insurance Risk                      (6.0)          (5.3)    (41.7)            -         0.4         -     (0.7) 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
Property Information                (2.0)          (1.9)         -         33.7           -         -     (0.5) 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
EdTech                              (1.3)          (0.3)         -          0.5         0.9         -     (0.2) 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
Events and 
 Exhibitions                        (0.6)          (0.2)         -        (0.2)           -         -     (0.1) 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
Energy Information                      -              -     (0.5)        133.8           -         -         - 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
Consumer Media                     (11.0)         (14.2)         -          5.6           -       3.2     (1.1) 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
                                   (20.9)         (21.9)    (42.2)        173.4         1.3       3.2     (2.6) 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
Corporate costs                         -          (0.6)         -          3.0         7.0       1.2    (15.2) 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
                                   (20.9)         (22.5)    (42.2)        176.4         8.3       4.4    (17.8) 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
Relating to 
 discontinued 
 operations              16           1.3            0.3       0.5      (134.3)       (0.9)         -       0.2 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
Continuing 
 operations                        (19.6)         (22.2)    (41.7)         42.1         7.4       4.4    (17.6) 
=====================  ====  ============  =============  ========  ===========  ==========  ========  ======== 
 

The Group's revenue comprises sales excluding value added tax, less discounts and commission where applicable and is analysed as follows:

 
                  Unaudited   Unaudited   Unaudited      Unaudited      Unaudited      Unaudited    Unaudited    Unaudited    Unaudited 
                   6 months    6 months    6 months       6 months       6 months       6 months     6 months     6 months     6 months 
                      ended       ended       ended          ended          ended          ended        ended        ended        ended 
                   31 March    31 March    31 March       31 March       31 March       31 March     31 March     31 March     31 March 
                       2021        2021        2021           2021           2021           2021         2021         2021         2021 
                                                                     Discontinued   Discontinued                Continuing   Continuing 
                                  Total       Total   Discontinued     operations     operations   Continuing   operations   operations 
                                  Point        Over     operations          Point           Over   operations        Point         Over 
                      Total     in time        time          Total        in time           time        Total      in time         time 
                                                             (Note          (Note          (Note 
                                                               16)            16)            16) 
                       GBPm        GBPm        GBPm           GBPm           GBPm           GBPm         GBPm         GBPm         GBPm 
===============  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 Print 
  advertising          59.2        59.2           -              -              -              -         59.2         59.2            - 
===============  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 Digital 
  advertising          88.8         5.1        83.7              -              -              -         88.8          5.1         83.7 
===============  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 Circulation          130.0       130.0           -              -              -              -        130.0        130.0            - 
===============  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 Subscriptions 
  and recurring 
  licenses            180.5         1.7       178.8           31.1              -           31.1        149.4          1.7        147.7 
===============  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 Events, 
  conferences 
  and training          3.7         3.7           -              -              -              -          3.7          3.7            - 
===============  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 Transactions 
  and other           118.1       110.1         8.0            2.4            2.4              -        115.7        107.7          8.0 
===============  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
                      580.3       309.8       270.5           33.5            2.4           31.1        546.8        307.4        239.4 
===============  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 
 
                  Unaudited   Unaudited   Unaudited      Unaudited      Unaudited      Unaudited    Unaudited    Unaudited    Unaudited 
                   6 months    6 months    6 months       6 months       6 months       6 months     6 months     6 months     6 months 
                      ended       ended       ended          ended          ended          ended        ended        ended        ended 
                   31 March    31 March    31 March       31 March       31 March       31 March     31 March     31 March     31 March 
                       2020        2020        2020           2020           2020           2020         2020         2020         2020 
                                                                     Discontinued   Discontinued                Continuing   Continuing 
                                  Total       Total   Discontinued     operations     operations   Continuing   operations   operations 
                                  Point        Over     operations          Point           Over   operations        Point         Over 
                      Total     in time        time          Total        in time           time        Total      in time         time 
                                                             (Note          (Note          (Note 
                                                               16)            16)            16) 
                       GBPm        GBPm        GBPm           GBPm           GBPm           GBPm         GBPm         GBPm         GBPm 
===============  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 Print 
  advertising          97.0        97.0           -              -              -              -         97.0         97.0            - 
===============  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 Digital 
  advertising          82.0         0.9        81.1              -              -              -         82.0          0.9         81.1 
===============  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 Circulation          144.8       144.8           -              -              -              -        144.8        144.8            - 
===============  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 Subscriptions 
  and recurring 
  licenses            188.8         0.5       188.3           44.5            0.3           44.2        144.3          0.2        144.1 
===============  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 Events, 
  conferences 
  and training         76.5        76.5           -              -              -              -         76.5         76.5            - 
===============  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 Transactions 
  and other           101.3        97.1         4.2            4.4            4.4              -         96.9         92.7          4.2 
===============  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
                      690.4       416.8       273.6           48.9            4.7           44.2        641.5        412.1        229.4 
===============  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 
 
                    Audited     Audited     Audited                                                   Audited      Audited      Audited 
                       Year        Year        Year        Audited        Audited        Audited         Year         Year         Year 
                      ended       ended       ended           Year           Year           Year        ended        ended        ended 
                         30          30          30          ended          ended          ended           30           30           30 
                  September   September   September   30 September   30 September   30 September    September    September    September 
                       2020        2020        2020           2020           2020           2020         2020         2020         2020 
                                                                     Discontinued   Discontinued                Continuing   Continuing 
                                  Total       Total   Discontinued     operations     operations   Continuing   operations   operations 
                                  Point        Over     operations          Point           Over   operations        Point         Over 
                      Total     in time        time          Total        in time           time        Total      in time         time 
                                                             (Note          (Note          (Note 
                                                               16)            16)            16) 
                       GBPm        GBPm        GBPm           GBPm           GBPm           GBPm         GBPm         GBPm         GBPm 
===============  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 Print 
  advertising         131.7       131.7           -              -              -              -        131.7        131.7            - 
===============  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 Digital 
  advertising         151.8         8.8       143.0              -              -              -        151.8          8.8        143.0 
===============  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 Circulation          284.5       280.5         4.0              -              -              -        284.5        280.5          4.0 
===============  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 Subscriptions 
  and recurring 
  licenses            373.1         0.6       372.5           82.5            0.3           82.2        290.6          0.3        290.3 
===============  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 Events, 
  conferences 
  and training         78.7        78.7           -              -              -              -         78.7         78.7            - 
===============  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 Transactions 
  and other           190.7       185.7         5.0            9.5            9.5              -        181.2        176.2          5.0 
===============  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
                    1,210.5       686.0       524.5           92.0            9.8           82.2      1,118.5        676.2        442.3 
===============  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 

By geographic area

The majority of the Group's operations are located in the United Kingdom and North America. The analysis of the Group's revenue below is based on the location of group companies in these regions.

 
            Unaudited   Unaudited   Unaudited      Unaudited      Unaudited      Unaudited    Unaudited    Unaudited    Unaudited 
             6 months    6 months    6 months       6 months       6 months       6 months     6 months     6 months     6 months 
                ended       ended       ended          ended          ended          ended        ended        ended        ended 
             31 March    31 March    31 March       31 March       31 March       31 March     31 March     31 March     31 March 
                 2021        2021        2021           2021           2021           2021         2021         2021         2021 
                                                               Discontinued   Discontinued                Continuing   Continuing 
                            Total       Total   Discontinued     operations     operations   Continuing   operations   operations 
                            Point        Over     operations          Point           Over   operations        Point         Over 
                Total     in time        time          Total        in time           time        Total      in time         time 
                                                       (Note          (Note          (Note 
                                                         16)            16)            16) 
                 GBPm        GBPm        GBPm           GBPm           GBPm           GBPm         GBPm         GBPm         GBPm 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 UK             389.3       292.2        97.1              -              -              -        389.3        292.2         97.1 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 North 
  America       180.3        13.0       167.3           33.5            2.4           31.1        146.8         10.6        136.2 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 Rest of 
  the 
  World          10.7         4.6         6.1              -              -              -         10.7          4.6          6.1 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
                580.3       309.8       270.5           33.5            2.4           31.1        546.8        307.4        239.4 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 
 
            Unaudited   Unaudited   Unaudited      Unaudited      Unaudited      Unaudited    Unaudited    Unaudited    Unaudited 
             6 months    6 months    6 months       6 months       6 months       6 months     6 months     6 months     6 months 
                ended       ended       ended          ended          ended          ended        ended        ended        ended 
             31 March    31 March    31 March       31 March       31 March       31 March     31 March     31 March     31 March 
                 2020        2020        2020           2020           2020           2020         2020         2020         2020 
                                                               Discontinued   Discontinued                Continuing   Continuing 
                            Total       Total   Discontinued     operations     operations   Continuing   operations   operations 
                            Point        Over     operations          Point           Over   operations        Point         Over 
                Total     in time        time          Total        in time           time        Total      in time         time 
                                                       (Note          (Note          (Note 
                                                         16)            16)            16) 
                 GBPm        GBPm        GBPm           GBPm           GBPm           GBPm         GBPm         GBPm         GBPm 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 UK             406.2       327.1        79.1              -              -              -        406.2        327.1         79.1 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 North 
  America       202.0        13.0       189.0           48.4            4.7           43.7        153.6          8.3        145.3 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 Rest of 
  the 
  World          82.2        76.7         5.5            0.5              -            0.5         81.7         76.7          5.0 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
                690.4       416.8       273.6           48.9            4.7           44.2        641.5        412.1        229.4 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 
 
              Audited     Audited     Audited                                                   Audited      Audited      Audited 
                 Year        Year        Year        Audited        Audited        Audited         Year         Year         Year 
                ended       ended       ended           Year           Year           Year        ended        ended        ended 
                   30          30          30          ended          ended          ended           30           30           30 
            September   September   September   30 September   30 September   30 September    September    September    September 
                 2020        2020        2020           2020           2020           2020         2020         2020         2020 
                                                               Discontinued   Discontinued                Continuing   Continuing 
                            Total       Total   Discontinued     operations     operations   Continuing   operations   operations 
                            Point        Over     operations          Point           Over   operations        Point         Over 
                Total     in time        time          Total        in time           time        Total      in time         time 
                                                       (Note          (Note          (Note 
                                                         16)            16)            16) 
                 GBPm        GBPm        GBPm           GBPm           GBPm           GBPm         GBPm         GBPm         GBPm 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 UK             718.8       569.9       148.9              -              -              -        718.8        569.9        148.9 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 North 
  America       402.1        36.7       365.4           91.5            9.8           81.7        310.6         26.9        283.7 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 Rest of 
  the 
  World          89.6        79.4        10.2            0.5              -            0.5         89.1         79.4          9.7 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
              1,210.5       686.0       524.5           92.0            9.8           82.2      1,118.5        676.2        442.3 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 

The analysis of the Group's revenue below is based on the geographic location of customers in these regions.

 
            Unaudited   Unaudited   Unaudited      Unaudited      Unaudited      Unaudited    Unaudited    Unaudited    Unaudited 
             6 months    6 months    6 months       6 months       6 months       6 months     6 months     6 months     6 months 
                ended       ended       ended          ended          ended          ended        ended        ended        ended 
             31 March    31 March    31 March       31 March       31 March       31 March     31 March     31 March     31 March 
                 2021        2021        2021           2021           2021           2021         2021         2021         2021 
                                                               Discontinued   Discontinued                Continuing   Continuing 
                            Total       Total   Discontinued     operations     operations   Continuing   operations   operations 
                            Point        Over     operations          Point           Over   operations        Point         Over 
                Total     in time        time          Total        in time           time        Total      in time         time 
                                                       (Note          (Note          (Note 
                                                         16)            16)            16) 
                 GBPm        GBPm        GBPm           GBPm           GBPm           GBPm         GBPm         GBPm         GBPm 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 UK             349.2       285.8        63.4            0.1              -            0.1        349.1        285.8         63.3 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 North 
  America       168.4        11.0       157.4           33.4            2.4           31.0        135.0          8.6        126.4 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 Rest of 
  the 
  World          62.7        13.0        49.7              -              -              -         62.7         13.0         49.7 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
                580.3       309.8       270.5           33.5            2.4           31.1        546.8        307.4        239.4 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 
 
            Unaudited   Unaudited   Unaudited      Unaudited      Unaudited      Unaudited    Unaudited    Unaudited    Unaudited 
             6 months    6 months    6 months       6 months       6 months       6 months     6 months     6 months     6 months 
                ended       ended       ended          ended          ended          ended        ended        ended        ended 
             31 March    31 March    31 March       31 March       31 March       31 March     31 March     31 March     31 March 
                 2020        2020        2020           2020           2020           2020         2020         2020         2020 
                                                               Discontinued   Discontinued                Continuing   Continuing 
                            Total       Total   Discontinued     operations     operations   Continuing   operations   operations 
                            Point        Over     operations          Point           Over   operations        Point         Over 
                Total     in time        time          Total        in time           time        Total      in time         time 
                                                       (Note          (Note          (Note 
                                                         16)            16)            16) 
                 GBPm        GBPm        GBPm           GBPm           GBPm           GBPm         GBPm         GBPm         GBPm 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 UK             378.0       321.9        56.1            0.5              -            0.5        377.5        321.9         55.6 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 North 
  America       180.5        13.1       167.4           47.3            4.7           42.6        133.2          8.4        124.8 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 Rest of 
  the 
  World         131.9        81.8        50.1            1.1              -            1.1        130.8         81.8         49.0 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
                690.4       416.8       273.6           48.9            4.7           44.2        641.5        412.1        229.4 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 
 
              Audited     Audited     Audited                                                   Audited      Audited      Audited 
                 Year        Year        Year        Audited        Audited        Audited         Year         Year         Year 
                ended       ended       ended           Year           Year           Year        ended        ended        ended 
                   30          30          30          ended          ended          ended           30           30           30 
            September   September   September   30 September   30 September   30 September    September    September    September 
                 2020        2020        2020           2020           2020           2020         2020         2020         2020 
                                                               Discontinued   Discontinued                Continuing   Continuing 
                            Total       Total   Discontinued     operations     operations   Continuing   operations   operations 
                            Point        Over     operations          Point           Over   operations        Point         Over 
                Total     in time        time          Total        in time           time        Total      in time         time 
                                                       (Note          (Note          (Note 
                                                         16)            16)            16) 
                 GBPm        GBPm        GBPm           GBPm           GBPm           GBPm         GBPm         GBPm         GBPm 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 UK             685.7       560.3       125.4            0.5              -            0.5        685.2        560.3        124.9 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 North 
  America       338.5        34.7       303.8           90.3            9.8           80.5        248.2         24.9        223.3 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 Rest of 
  the 
  World         186.3        91.0        95.3            1.2              -            1.2        185.1         91.0         94.1 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
              1,210.5       686.0       524.5           92.0            9.8           82.2      1,118.5        676.2        442.3 
=========  ==========  ==========  ==========  =============  =============  =============  ===========  ===========  =========== 
 

4 Share of results of joint ventures and associates

 
                                                           Unaudited   Unaudited 
                                                            6 months    6 months         Audited 
                                                               ended       ended      year ended 
                                                            31 March    31 March    30 September 
                                                                2021        2020            2020 
                                                    Note        GBPm        GBPm            GBPm 
================================================  ======  ==========  ==========  ============== 
 Share of adjusted operating profits from 
  operations of joint ventures                                   0.7           -             1.2 
------------------------------------------------  ------  ----------  ----------  -------------- 
 Share of adjusted operating losses from 
  operations of associates                                     (2.0)       (6.8)           (9.0) 
================================================  ======  ==========  ==========  ============== 
 Share of adjusted operating losses from 
  joint ventures and associates                                (1.3)       (6.8)           (7.8) 
------------------------------------------------  ------  ----------  ----------  -------------- 
 Share of associates' other gains                     10         0.1         0.4             0.4 
------------------------------------------------  ------  ----------  ----------  -------------- 
 Share of amortisation of intangibles arising                  (0.1)           -               - 
  on business combinations of associates 
------------------------------------------------  ------  ----------  ----------  -------------- 
 Share of associates' interest payable                             -           -           (0.7) 
------------------------------------------------  ------  ----------  ----------  -------------- 
 Share of joint ventures' tax                      8, 10       (0.1)           -           (0.1) 
------------------------------------------------  ------  ----------  ----------  -------------- 
 Share of associates' tax                          8, 10           -           -             0.6 
------------------------------------------------  ------  ----------  ----------  -------------- 
 Impairment of carrying value of joint 
  ventures                                            10           -           -           (0.1) 
------------------------------------------------  ------  ----------  ----------  -------------- 
                                                     10, 
 Impairment of carrying value of associates          (i)           -       (3.7)           (3.7) 
------------------------------------------------  ------  ----------  ----------  -------------- 
                                                               (1.4)      (10.1)          (11.4) 
================================================  ======  ==========  ==========  ============== 
 
 Share of results from operations of joint 
  ventures                                                       0.6           -             1.1 
------------------------------------------------  ------  ----------  ----------  -------------- 
 Share of results from operations of associates                (2.0)       (6.4)           (8.7) 
------------------------------------------------  ------  ----------  ----------  -------------- 
 Impairment of carrying value of joint 
  ventures                                                         -           -           (0.1) 
------------------------------------------------  ------  ----------  ----------  -------------- 
 Impairment of carrying value of associates                        -       (3.7)           (3.7) 
------------------------------------------------  ------  ----------  ----------  -------------- 
                                                               (1.4)      (10.1)          (11.4) 
================================================  ======  ==========  ==========  ============== 
 

(i) In the prior periods ended 31 March 2020 and 30 September 2020 , represents a GBP0.1 million write-down in the carrying value of Global Events Partners Ltd in the Events and Exhibitions segment and a

GBP3.6 million write-down in the carrying value of Also Energy Holdings, Inc.   held centrally . 

5 Other gains and losses

 
                                                          Unaudited   Unaudited 
                                                           6 months    6 months 
                                                              ended       ended      Year ended 
                                                           31 March    31 March    30 September 
                                                               2021        2020            2020 
                                                   Note        GBPm        GBPm            GBPm 
==============================================  =======  ==========  ==========  ============== 
 Loss on disposal of financial assets held          (i)           -       (0.1)               - 
  at fair value through other comprehensive 
  income 
----------------------------------------------  -------  ----------  ----------  -------------- 
 Profit on disposal and closure of businesses      (ii)         0.5        40.6            38.4 
----------------------------------------------  -------  ----------  ----------  -------------- 
 Recycled cumulative translation differences      (iii)           -         1.2             0.7 
----------------------------------------------  -------  ----------  ----------  -------------- 
 Gain from bargain purchase                         14,         2.7           -               - 
                                                   (iv) 
----------------------------------------------  -------  ----------  ----------  -------------- 
 Profit on change in control                        (v)           -         1.6             1.6 
----------------------------------------------  -------  ----------  ----------  -------------- 
 Profit on disposal of joint ventures and 
  associates                                       (vi)         0.8         0.1             1.4 
----------------------------------------------  -------  ----------  ----------  -------------- 
                                                                4.0        43.4            42.1 
 ======================================================  ==========  ==========  ============== 
 

There is a tax charge of GBP1.1 million (period ended 31 March 2020 GBP0.7 million , year ended 30 September

2020   GBP1.6 million ) in relation to these other gains and losses. 

(i) In the prior period ended 31 March 2020 this relates to a loss of GBP0.1 million on the disposal of Laundrapp Ltd (formerly known as Zipjet Ltd).

(ii) In the prior period ended 31 March 2020 this principally relates to a profit of GBP24.7 million on the disposal of Inframation AG and a profit of GBP15.6 million on the disposal of BuildFax, Inc. both in the Property Information segment.

In the prior year ended 30 September 2020 this principally relates to a profit of GBP24.8 million relating to the disposal of Inframation AG and a profit of GBP15.7 million relating to the disposal of BuildFax, Inc. both in the Property Information segment.

(iii) Represents cumulative translation differences required to be recycled through the Consolidated Income Statement on disposals.

(iv) On 18 October 2020, dmg media acquired JPI Media's print operations at Dinnington, Portsmouth and Carn in Northern Ireland for total consideration of GBP10.0 million. The consideration paid was less than the value of the identifiable net assets acquired and accordingly the gain on this acquisition has been recognised in the Consolidated Income Statement in accordance with IFRS 3, Business Combinations.

(v) In the prior periods ended 31 March 2020 and 30 September 2020 , this relates to a reduction in the Group's interest in Cazoo Holdings Ltd (Cazoo), when classified as an associate held centrally. In accordance with IFRS 3, Business Combinations, the difference of GBP1.6 million between the fair value of the investment retained and the carrying value is treated as a gain on change in control.

(vi) In the current period this represents a profit on disposal of TreppPort, LLC in the Property Information segment.

In the prior period ended 31 March 2020 this represents a refund of expenses incurred in a prior period in relation to the disposal of SiteCompli in the Property Information segment.

In the prior year ended 30 September 2020 this principally represents a profit of GBP1.2 million on the sale of Also Energy Holdings, Inc. held centrally and a GBP0.1 million refund of expenses incurred in a prior period in relation to the disposal of SiteCompli in the Property Information segment.

6 Investment revenue

 
                                                  Unaudited   Unaudited 
                                                   6 months    6 months         Audited 
                                                      ended       ended      year ended 
                                                   31 March    31 March    30 September 
                                                       2021        2020            2020 
                                                       GBPm        GBPm            GBPm 
==============================================   ==========  ==========  ============== 
 Interest receivable from short-term deposits           0.5         3.9             5.0 
-----------------------------------------------  ----------  ----------  -------------- 
 Interest receivable on loan notes                      1.3         1.2             2.4 
-----------------------------------------------  ----------  ----------  -------------- 
                                                        1.8         5.1             7.4 
 ==============================================  ==========  ==========  ============== 
 

7 Net finance costs

 
                                                       Unaudited   Unaudited 
                                                        6 months    6 months         Audited 
                                                           ended       ended      year ended 
                                                        31 March    31 March    30 September 
                                                            2021        2020            2020 
                                                Note        GBPm        GBPm            GBPm 
=============================================  =====  ==========  ==========  ============== 
 Interest, arrangement and commitment 
  fees payable on bonds, bank loans and 
  loan notes                                               (7.3)       (7.3)          (15.0) 
---------------------------------------------  -----  ----------  ----------  -------------- 
 Finance charge on lease liabilities                       (1.6)       (0.9)           (2.3) 
---------------------------------------------  -----  ----------  ----------  -------------- 
 Loss on derivatives, or portions thereof, 
  not designated for hedge accounting                          -       (0.2)           (0.3) 
---------------------------------------------  -----  ----------  ----------  -------------- 
 Change in fair value of derivative hedge 
  of bond                                                  (1.7)         0.5             0.5 
---------------------------------------------  -----  ----------  ----------  -------------- 
 Change in fair value of hedged portion 
  of bond                                                    1.7       (0.5)           (0.5) 
---------------------------------------------  -----  ----------  ----------  -------------- 
 Finance expense                                           (8.9)       (8.4)          (17.6) 
=============================================  =====  ==========  ==========  ============== 
 
 Profit on derivatives, or portions thereof,                 0.4           -               - 
  not designated for hedge accounting 
---------------------------------------------  -----  ----------  ----------  -------------- 
 Finance income on sublease receivable                       0.1         0.1             0.2 
---------------------------------------------  -----  ----------  ----------  -------------- 
 Finance income on defined benefit pension 
  schemes                                         10         1.2         2.1             4.2 
---------------------------------------------  -----  ----------  ----------  -------------- 
 Finance income                                              1.7         2.2             4.4 
=============================================  =====  ==========  ==========  ============== 
 
 Net finance costs                                         (7.2)       (6.2)          (13.2) 
=============================================  =====  ==========  ==========  ============== 
 

8 Tax

 
                                                      Unaudited   Unaudited 
                                                       6 months    6 months         Audited 
                                                          ended       ended      year ended 
                                                       31 March    31 March    30 September 
                                                           2021        2020            2020 
                                               Note        GBPm        GBPm            GBPm 
============================================  =====  ==========  ==========  ============== 
 The charge on the profit for the period 
  consists of: 
--------------------------------------------  -----  ----------  ----------  -------------- 
 UK tax 
============================================  =====  ==========  ==========  ============== 
 Corporation tax at 19.0% (2020 19.0%)                        -           -             0.3 
--------------------------------------------  -----  ----------  ----------  -------------- 
 Adjustments in respect of prior periods                      -         0.1               - 
--------------------------------------------  -----  ----------  ----------  -------------- 
                                                              -         0.1             0.3 
============================================  =====  ==========  ==========  ============== 
 Overseas tax 
============================================  =====  ==========  ==========  ============== 
 Corporation tax                                         (31.8)      (13.1)          (14.4) 
--------------------------------------------  -----  ----------  ----------  -------------- 
 Adjustments in respect of prior years                      0.5           -             4.0 
--------------------------------------------  -----  ----------  ----------  -------------- 
                                                         (31.3)      (13.1)          (10.4) 
============================================  =====  ==========  ==========  ============== 
 Total current tax                                       (31.3)      (13.0)          (10.1) 
============================================  =====  ==========  ==========  ============== 
 Deferred tax 
============================================  =====  ==========  ==========  ============== 
 Origination and reversals of temporary 
  differences                                               9.4       (9.4)           (2.1) 
--------------------------------------------  -----  ----------  ----------  -------------- 
 Adjustments in respect of prior years                      0.2           -             2.0 
--------------------------------------------  -----  ----------  ----------  -------------- 
 Total deferred tax                                         9.6       (9.4)           (0.1) 
============================================  =====  ==========  ==========  ============== 
 Total tax charge                                        (21.7)      (22.4)          (10.2) 
============================================  =====  ==========  ==========  ============== 
 Tax charge relating to discontinued 
  operations                                     16        57.3        18.1            10.3 
--------------------------------------------  -----  ----------  ----------  -------------- 
 Tax credit/(charge) relating to continuing 
  operations                                               35.6       (4.3)             0.1 
============================================  =====  ==========  ==========  ============== 
 

Adjusted tax on profit before amortisation and impairment of intangible assets, restructuring costs and non-recurring items (adjusted tax charge) amounted to a charge of GBP8.4 million (31 March 2020 GBP21.8 million , 30 September 2020 GBP12.7 million ) and the resulting effective rate is 18.0% (31 March 2020 39.0% , 30 September 2020 17.6% ). The differences between the tax charge and the adjusted tax charge are shown in the reconciliation below:

 
                                                          Unaudited   Unaudited 
                                                           6 months    6 months         Audited 
                                                              ended       ended      year ended 
                                                           31 March    31 March    30 September 
                                                               2021        2020            2020 
                                                   Note        GBPm        GBPm            GBPm 
===============================================  ======  ==========  ==========  ============== 
 Total tax charge on the profit for the 
  period - continuing and discontinued 
  operations                                                 (21.7)      (22.4)          (10.2) 
-----------------------------------------------  ------  ----------  ----------  -------------- 
 Share of tax in joint ventures and associates        4       (0.1)           -             0.5 
-----------------------------------------------  ------  ----------  ----------  -------------- 
 Deferred tax on amortisation and impairment 
  of acquired intangible assets                     (i)       (0.6)       (0.4)           (1.0) 
-----------------------------------------------  ------  ----------  ----------  -------------- 
 Reassessment of temporary differences             (ii)      (43.8)           -            11.1 
-----------------------------------------------  ------  ----------  ----------  -------------- 
 Tax on other gains and losses                    (iii)        59.1         7.4             1.6 
-----------------------------------------------  ------  ----------  ----------  -------------- 
 Tax on exceptional operating costs                           (3.6)         1.6           (4.7) 
-----------------------------------------------  ------  ----------  ----------  -------------- 
 Impact of UK Corporation Tax rate change                         -       (8.6)           (8.6) 
-----------------------------------------------  ------  ----------  ----------  -------------- 
 Prior year impact of US Foreign-Derived 
  Intangible Income regime                                        -           -           (3.2) 
-----------------------------------------------  ------  ----------  ----------  -------------- 
 Tax on other adjusting items                                   2.3         0.6             1.8 
-----------------------------------------------  ------  ----------  ----------  -------------- 
 Adjusted tax charge on the profit for 
  the period                                         10       (8.4)      (21.8)          (12.7) 
===============================================  ======  ==========  ==========  ============== 
 

(i) In calculating the adjusted tax rate, the Group excludes the deferred tax effects of the amortisation and impairment of acquired intangible assets (other than internally generated and acquired computer software), as the Group prefers to give users of its accounts a view of the tax charge based on the current status of such items. Any additional deferred tax effects (in relation to acquired intangible assets) would only crystallise on the disposal of a business, which being an exceptional item, would result in an exceptional deferred tax impact.

(ii) Reassessment of temporary differences includes a tax credit in relation to the recognition of previously unrecognised deferred tax assets in respect of US deferred interest of GBP40.8 million (31 March 2020 GBPnil, 30 September 2020 GBP37.0 million) and UK tax losses of GBP3.0 million (31 March 2020 GBPnil, 30 September 2020 GBPnil). A significant portion of the current period credit of GBP40.8 million arises due to the sale of the EdTech business accelerating the use of US deferred interest. Reassessment of temporary differences also includes a tax charge in relation to the derecognition of previously recognised deferred tax assets in respect of UK tax losses and deferred interest of GBPnil (31 March 2020 GBPnil, 30 September 2020 GBP39.5 million) and US state R&D tax credits of GBPnil (31 March 2020 GBPnil, 30 September 2020 GBP8.6 million).

(iii) Tax on other gains and losses during the 6 months ended 31 March 2021 includes a tax charge of GBP58.0 million on the sale of the EdTech segment. Tax on other gains and losses during the 6 months ended 31 March 2020 includes a tax charge of GBP6.7 million on the sale of the Energy Information segment.

In April 2019 the EU Commission released its final decision on the State Aid investigation into the Group Financing Exemption (GFE) included within the UK's controlled foreign company (CFC) rules. The Commission ruled that the GFE constituted State Aid to the extent that non-trade finance profits of a CFC arose as a result of Significant People Functions (SPFs) in the UK. Up until 2018 the Group financed its US operations through a Luxembourg resident finance company which had received clearance from HM Revenue & Customs (HMRC) that it benefitted from the GFE. It was previously considered that, if the State Aid investigation were to ultimately lead to a reversal of the benefits that the Group has accrued through the GFE, the tax cost to the Group would be in the range from GBPnil to GBP7.4 million. However, the Directors considered that an appeal against the Commission's decision would, more likely than not, be successful. Accordingly, no provision was made in the financial statements. Following the Group's provision of information in relation to the issue, HMRC confirmed in writing in March 2021 that it does not consider the Group to be a beneficiary of State Aid under the EU Commission decision and that it regards the matter closed without adjustment.

In March 2021, draft legislation was published in the UK to increase the corporation tax rate to 25.0% from 1 April 2023. However, the draft legislation was not enacted as at 31 March 2021 and its effect has therefore been excluded from the preparation of the numbers included in these Financial Statements. The Group estimates that the impact of the change in rate is that the Group's net deferred tax assets will increase by GBP2.3 million during the year ending 30 September 2021, with a net credit of GBP8.4 million being taken to the Income Statement and a net debit of GBP6.1 million being taken to the Statement of Comprehensive Income.

9 Dividends paid

 
                                       Unaudited   Unaudited   Unaudited   Unaudited         Audited         Audited 
                                        6 months    6 months    6 months    6 months            year            year 
                                           ended       ended       ended       ended           ended           ended 
                                        31 March    31 March    31 March    31 March    30 September    30 September 
                                            2021        2021        2020        2020            2020            2020 
                                           Pence                   Pence                       Pence 
                                             per                     per                         per 
                                           share        GBPm       share        GBPm           share            GBPm 
===================================   ==========  ==========  ==========  ==========  ==============  ============== 
 Amounts recognisable as 
 distributions 
 to equity holders in the period 
===================================   ==========  ==========  ==========  ==========  ==============  ============== 
 Ordinary Shares - final dividend 
  for the year ended 30 September 
  2020                                      16.6         3.3           -           -               -               - 
====================================  ==========  ==========  ==========  ==========  ==============  ============== 
 A Ordinary Non-Voting Shares 
  - final dividend for the year 
  ended 30 September 2020                   16.6        34.3           -           -               -               - 
====================================  ==========  ==========  ==========  ==========  ==============  ============== 
 Ordinary Shares - final dividend 
  for the year ended 30 September 
  2019                                         -           -        16.6         3.3            16.6             3.3 
====================================  ==========  ==========  ==========  ==========  ==============  ============== 
 A Ordinary Non-Voting Shares 
  - final dividend for the year 
  ended 30 September 2019                      -           -        16.6        34.6            16.6            34.6 
====================================  ==========  ==========  ==========  ==========  ==============  ============== 
                                               -        37.6           -        37.9               -            37.9 
 ===================================  ==========  ==========  ==========  ==========  ==============  ============== 
 Ordinary Shares - interim dividend 
  for the year ended 30 September 
  2020                                         -           -           -           -             7.5             1.5 
====================================  ==========  ==========  ==========  ==========  ==============  ============== 
 A Ordinary Non-Voting Shares 
  - interim dividend for the 
  year ended 30 September 2020                 -           -           -           -             7.5            15.5 
====================================  ==========  ==========  ==========  ==========  ==============  ============== 
                                               -           -           -           -               -            17.0 
 ===================================  ==========  ==========  ==========  ==========  ==============  ============== 
                                               -        37.6           -        37.9               -            54.9 
 ===================================  ==========  ==========  ==========  ==========  ==============  ============== 
 

The Board has declared an interim dividend of 7.6 pence per Ordinary/A Ordinary Non-Voting Share (31 March 2020 interim dividend of 7.5 pence, 30 September 2020 final dividend of 16.6 pence) which will absorb an estimated GBP17.4 million (31 March 2020 GBP17.2 million , 30 September 2020 GBP37.6 million ) of shareholders' equity for which no liability has been recognised in these Condensed Consolidated Financial Statements. It will be paid on 2 July 2021 to shareholders on the register at the close of business on 11 June 2021 .

10 Adjusted profit

 
                                                                Unaudited   Unaudited 
                                                                 6 months    6 months         Audited 
                                                                    ended       ended      year ended 
                                                                 31 March    31 March    30 September 
                                                                     2021        2020            2020 
                                                         Note        GBPm        GBPm            GBPm 
=====================================================  ======  ==========  ==========  ============== 
 Profit before tax - continuing operations                  3        42.4        77.0            46.0 
-----------------------------------------------------  ------  ----------  ----------  -------------- 
 (Loss)/profit before tax - discontinued 
  operations                                               16       (3.9)        16.1            19.4 
-----------------------------------------------------  ------  ----------  ----------  -------------- 
 Profit on disposal of discontinued operations 
  including recycled cumulative translation 
  differences                                              16       236.5       134.3           133.8 
-----------------------------------------------------  ------  ----------  ----------  -------------- 
 Adjust for: 
=====================================================  ======  ==========  ==========  ============== 
   Amortisation of intangible assets in Group 
    profit, including joint ventures and associates, 
    arising on business combinations                     3, 4         6.9         5.5            11.3 
-----------------------------------------------------  ------  ----------  ----------  -------------- 
   Impairment of goodwill and intangible 
    assets arising on business combinations                 3           -         8.2            14.1 
-----------------------------------------------------  ------  ----------  ----------  -------------- 
   Exceptional operating costs/(income), 
    impairment of internally generated and 
    acquired computer software                              3         6.4       (7.9)            25.2 
-----------------------------------------------------  ------  ----------  ----------  -------------- 
   Share of associates' other gains                         4       (0.1)       (0.4)           (0.4) 
-----------------------------------------------------  ------  ----------  ----------  -------------- 
   Impairment of carrying value of joint 
    ventures and associates                                 4           -         3.7             3.8 
-----------------------------------------------------  ------  ----------  ----------  -------------- 
 Other gains and losses: 
=====================================================  ======  ==========  ==========  ============== 
   Loss on disposal of other financial assets 
    held at fair value through other comprehensive 
    income                                                  5           -         0.1               - 
-----------------------------------------------------  ------  ----------  ----------  -------------- 
   Profit on disposal of businesses, joint 
    ventures, associates, change of control 
    and recycled cumulative translation differences     5, 16       (4.1)      (44.0)          (42.6) 
-----------------------------------------------------  ------  ----------  ----------  -------------- 
   Profit on disposal of discontinued operations 
    including recycled cumulative translation 
    differences                                            16     (236.5)     (134.3)         (133.8) 
-----------------------------------------------------  ------  ----------  ----------  -------------- 
 Finance costs: 
=====================================================  ======  ==========  ==========  ============== 
   Finance income on defined benefit pension 
    schemes                                                 7       (1.2)       (2.1)           (4.2) 
-----------------------------------------------------  ------  ----------  ----------  -------------- 
 Tax: 
=====================================================  ======  ==========  ==========  ============== 
   Share of tax in joint ventures and associates         4, 8         0.1           -           (0.5) 
-----------------------------------------------------  ------  ----------  ----------  -------------- 
 Adjusted profit before tax and non-controlling 
  interests                                                          46.5        56.2            72.1 
=====================================================  ======  ==========  ==========  ============== 
 Adjusted tax charge                                        8       (8.4)      (21.8)          (12.7) 
-----------------------------------------------------  ------  ----------  ----------  -------------- 
 Non-controlling interests                                (i)         0.1           -               - 
-----------------------------------------------------  ------  ----------  ----------  -------------- 
 Adjusted profit after taxation and non-controlling 
  interests                                                          38.2        34.4            59.4 
=====================================================  ======  ==========  ==========  ============== 
 

(i) The adjusted non-controlling interests' share of losses for the period of GBP0.1 million (31 March 2020 GBPnil , 30 September 2020 GBPnil ) is stated after eliminating a credit of GBP0.2 million (31 March 2020 GBPnil , 30 September 2020 GBPnil ), being the non-controlling interests' share of adjusting items.

11 Earnings per share

Basic earnings per share of 111.3 pence (31 March 2020 89.7 pence, 30 September 2020 83.1 pence) and diluted earnings per share of 108.3 pence (31 March 2020 88.5 pence, 30 September 2020 81.2 pence) are calculated, in accordance with IAS 33, Earnings Per Share, on Group profit for the financial period of GBP 253.5 million (31 March 2020 GBP 205.0 million, 30 September 2020 GBP 189.3 million) as adjusted for the effect of dilutive Ordinary Shares of GBP nil (31 March 2020 GBP nil , 30 September 2020 GBP nil ) and profits from discontinued operations of GBP175.3 million (31 March 2020 GBP132.3 million , 30 September 2020 GBP142.9 million ) on the weighted average number of Ordinary Shares in issue during the period, as set out below.

As in previous years, adjusted earnings per share have also been disclosed since the Directors consider that this alternative measure gives a more comparable indication of the Group's underlying trading performance. Adjusted earnings per share of 16.8 pence (31 March 2020 15.0 pence, 30 September 2020 26.1 pence) are calculated on profit for continuing and discontinued operations before exceptional operating costs, impairment of goodwill and intangible assets, amortisation of intangible assets arising on business combinations, other gains and losses and exceptional financing costs after taxation and non-controlling interests associated with those profits, of GBP 38.2 million (31 March 2020 GBP 34.4 million, 30 September 2020 GBP 59.4 million), as set out in Note 10 and on the basic weighted average number of Ordinary Shares in issue during the period.

Basic and diluted earnings per share:

 
                                         Unaudited   Unaudited         Audited   Unaudited   Unaudited         Audited 
                                          6 months    6 months            year    6 months    6 months            year 
                                             ended       ended           ended       ended       ended           ended 
                                          31 March    31 March    30 September    31 March    31 March    30 September 
                                              2021        2020            2020        2021        2020            2020 
                                           Diluted     Diluted         Diluted       Basic       Basic           Basic 
                                          earnings    earnings        earnings    earnings    earnings        earnings 
                                  Note        GBPm        GBPm            GBPm        GBPm        GBPm            GBPm 
===============================  =====  ==========  ==========  ==============  ==========  ==========  ============== 
 Earnings from continuing 
  operations                                  78.2        72.7            46.4        78.2        72.7            46.4 
===============================  =====  ==========  ==========  ==============  ==========  ==========  ============== 
 Effect of dilutive Ordinary 
  Shares                                         -           -               -           -           -               - 
===============================  =====  ==========  ==========  ==============  ==========  ==========  ============== 
 Earnings from discontinued 
  operations                                 175.3       132.3           142.9       175.3       132.3           142.9 
===============================  =====  ==========  ==========  ==============  ==========  ==========  ============== 
                                             253.5       205.0           189.3       253.5       205.0           189.3 
===============================  =====  ==========  ==========  ==============  ==========  ==========  ============== 
 
 Adjusted earnings from 
  continuing 
  and discontinued operations       10        38.2        34.4            59.4        38.2        34.4            59.4 
===============================  =====  ==========  ==========  ==============  ==========  ==========  ============== 
 Effect of dilutive Ordinary 
  Shares                                         -           -               -           -           -               - 
===============================  =====  ==========  ==========  ==============  ==========  ==========  ============== 
                                              38.2        34.4            59.4        38.2        34.4            59.4 
===============================  =====  ==========  ==========  ==============  ==========  ==========  ============== 
 
 
                                       Unaudited   Unaudited         Audited   Unaudited   Unaudited         Audited 
                                        6 months    6 months            year    6 months    6 months            year 
                                           ended       ended           ended       ended       ended           ended 
                                        31 March    31 March    30 September    31 March    31 March    30 September 
                                            2021        2020            2020        2021        2020            2020 
                                         Diluted     Diluted         Diluted       Basic       Basic           Basic 
                                           pence       pence           pence       pence       pence           pence 
                                             per         per             per         per         per             per 
                                           share       share           share       share       share           share 
===================================   ==========  ==========  ==============  ==========  ==========  ============== 
 Earnings per share from continuing 
  operations                                33.4        31.4            19.9        34.3        31.8            20.4 
====================================  ==========  ==========  ==============  ==========  ==========  ============== 
 Effect of dilutive Ordinary 
  Shares                                       -           -               -           -           -               - 
===================================   ==========  ==========  ==============  ==========  ==========  ============== 
 Earnings per share from 
  discontinued 
  operations                                74.9        57.1            61.3        77.0        57.9            62.7 
====================================  ==========  ==========  ==============  ==========  ==========  ============== 
 Earnings per share from continuing 
  operations and discontinued 
  operations                               108.3        88.5            81.2       111.3        89.7            83.1 
====================================  ==========  ==========  ==============  ==========  ==========  ============== 
 
 Adjusted earnings per share 
  from continuing and discontinued 
  operations                                16.3        14.8            25.5        16.8        15.0            26.1 
====================================  ==========  ==========  ==============  ==========  ==========  ============== 
 Effect of dilutive Ordinary 
  Shares                                       -           -               -           -           -               - 
===================================   ==========  ==========  ==============  ==========  ==========  ============== 
 Adjusted earnings per share 
  from continuing operations 
  and discontinued operations               16.3        14.8            25.5        16.8        15.0            26.1 
====================================  ==========  ==========  ==============  ==========  ==========  ============== 
 

The weighted average number of Ordinary Shares in issue during the year for the purpose of these calculations is as follows:

 
                                               Unaudited      Unaudited        Audited 
                                                   at 31          at 31          at 30 
                                                   March          March      September 
                                             2021 Number    2020 Number    2020 Number 
                                                       m              m              m 
=========================================  =============  =============  ============= 
 Number of Ordinary Shares in issue                234.5          234.8          234.8 
=========================================  =============  =============  ============= 
 Own shares held                                   (6.8)          (6.2)          (7.0) 
=========================================  =============  =============  ============= 
 Basic earnings per share denominator              227.7          228.6          227.8 
=========================================  =============  =============  ============= 
 Effect of dilutive share options                    6.4            3.2            5.2 
=========================================  =============  =============  ============= 
 Dilutive earnings per share denominator           234.1          231.8          233.0 
=========================================  =============  =============  ============= 
 

12 EBITDA and cash generated by operations

 
                                                         Unaudited   Unaudited 
                                                          6 months    6 months         Audited 
                                                             ended       ended      year ended 
                                                          31 March    31 March    30 September 
                                                              2021        2020            2020 
                                                  Note        GBPm        GBPm            GBPm 
===============================================  =====  ==========  ==========  ============== 
 Continuing operations 
===============================================  =====  ==========  ==========  ============== 
 Adjusted operating profit                           3        53.5        61.6            82.4 
-----------------------------------------------  -----  ----------  ----------  -------------- 
 Non-exceptional depreciation charge 
  on property, plant and equipment                   3        11.0        10.9            22.2 
-----------------------------------------------  -----  ----------  ----------  -------------- 
 Non-exceptional depreciation charge 
  on right of use assets                             3        10.0         9.2            19.6 
-----------------------------------------------  -----  ----------  ----------  -------------- 
 Amortisation of internally generated 
  and acquired computer software not arising 
  on business combinations                           3         3.6         4.2             8.1 
-----------------------------------------------  -----  ----------  ----------  -------------- 
 Operating losses from joint ventures 
  and associates                                     4       (1.3)       (6.8)           (7.8) 
-----------------------------------------------  -----  ----------  ----------  -------------- 
 Share of charge of depreciation and 
  amortisation of internally generated 
  and acquired computer software not arising 
  on business combinations of joint ventures 
  and associates                                               0.1         1.0             1.6 
-----------------------------------------------  -----  ----------  ----------  -------------- 
 Discontinued operations 
===============================================  =====  ==========  ==========  ============== 
 Adjusted operating profit                          16         1.0         3.8             7.5 
-----------------------------------------------  -----  ----------  ----------  -------------- 
 Non-exceptional depreciation charge                16         0.1         0.2             0.3 
-----------------------------------------------  -----  ----------  ----------  -------------- 
 Non-exceptional depreciation charge 
  on right of use assets                            16         0.5         0.6             1.3 
-----------------------------------------------  -----  ----------  ----------  -------------- 
 Amortisation of internally generated 
  and acquired computer software not arising 
  on business combinations                          16         3.0         3.7             7.3 
-----------------------------------------------  -----  ----------  ----------  -------------- 
 EBITDA                                                       81.5        88.4           142.5 
===============================================  =====  ==========  ==========  ============== 
 Adjustments for: 
===============================================  =====  ==========  ==========  ============== 
   Share-based payments                                       14.1         9.2            42.2 
-----------------------------------------------  -----  ----------  ----------  -------------- 
   Profit on disposal of property, plant 
    and equipment                                   19       (0.1)           -               - 
-----------------------------------------------  -----  ----------  ----------  -------------- 
   Share of losses from joint ventures 
    and associates                                   4         1.3         6.8             7.8 
-----------------------------------------------  -----  ----------  ----------  -------------- 
   Exceptional operating (costs)/income              3       (6.4)         7.9          (23.7) 
-----------------------------------------------  -----  ----------  ----------  -------------- 
   Share of charge of depreciation and 
    amortisation of internally generated 
    and acquired computer software not arising 
    on business combinations of joint ventures 
    and associates                                           (0.1)       (1.0)           (1.6) 
-----------------------------------------------  -----  ----------  ----------  -------------- 
 (Increase)/decrease in inventories                          (5.8)        12.5            14.5 
-----------------------------------------------  -----  ----------  ----------  -------------- 
 (Increase)/decrease in trade and other 
  receivables                                               (22.1)         0.2            30.6 
-----------------------------------------------  -----  ----------  ----------  -------------- 
 Decrease in trade and other payables                        (1.3)      (37.9)          (31.5) 
-----------------------------------------------  -----  ----------  ----------  -------------- 
 Decrease in provisions                                      (2.7)      (15.8)          (14.4) 
-----------------------------------------------  -----  ----------  ----------  -------------- 
 Additional payments into pension schemes                   (14.1)      (16.2)          (16.1) 
-----------------------------------------------  -----  ----------  ----------  -------------- 
 Cash generated by operations                                 44.3        54.1           150.3 
===============================================  =====  ==========  ==========  ============== 
 

13 Analysis of net cash

 
                                                         Unaudited   Unaudited      Audited 
                                                             at 31       at 31        at 30 
                                                             March       March    September 
                                                              2021        2020         2020 
                                                  Note        GBPm        GBPm         GBPm 
===============================================  =====  ==========  ==========  =========== 
 Net cash at start of period before effects 
  of derivatives and collateral                              176.6        84.8         84.8 
-----------------------------------------------  -----  ----------  ----------  ----------- 
 Adjustment for transition to IFRS 16                            -      (92.0)       (92.0) 
-----------------------------------------------  -----  ----------  ----------  ----------- 
 Restated at 1 October 2019                                              (7.2)        (7.2) 
===============================================  =====  ==========  ==========  =========== 
 Cash flow                                                    54.2       201.7        227.6 
-----------------------------------------------  -----  ----------  ----------  ----------- 
 On acquisition of subsidiaries                     14       (3.8)       (0.2)        (0.2) 
-----------------------------------------------  -----  ----------  ----------  ----------- 
 On disposal of subsidiaries                        15         4.5         8.5         10.1 
-----------------------------------------------  -----  ----------  ----------  ----------- 
 Fair value hedging arrangements                               1.7       (0.5)        (0.5) 
-----------------------------------------------  -----  ----------  ----------  ----------- 
 Foreign exchange on cash and cash equivalents              (25.3)         2.1       (10.9) 
-----------------------------------------------  -----  ----------  ----------  ----------- 
 Foreign exchange on lease liabilities                         4.1         0.9          2.2 
-----------------------------------------------  -----  ----------  ----------  ----------- 
 Non-cash movements on lease liabilities                    (12.0)       (4.0)       (44.5) 
-----------------------------------------------  -----  ----------  ----------  ----------- 
 Net cash at period end before effects 
  of derivatives and collateral                              200.0       201.3        176.6 
===============================================  =====  ==========  ==========  =========== 
 
 Analysed as: 
===============================================  =====  ==========  ==========  =========== 
 Cash and cash equivalents                                   513.9       489.2        500.3 
-----------------------------------------------  -----  ----------  ----------  ----------- 
 Classified as held for sale                        17         0.3           -            - 
-----------------------------------------------  -----  ----------  ----------  ----------- 
                                                             514.2       489.2        500.3 
-----------------------------------------------  -----  ----------  ----------  ----------- 
 Bank overdrafts                                    22      (17.9)      (10.8)       (20.4) 
-----------------------------------------------  -----  ----------  ----------  ----------- 
 Cash and cash equivalents in the Condensed 
  Consolidated Cash Flow Statement                           496.3       478.4        479.9 
===============================================  =====  ==========  ==========  =========== 
 Debt due within one year: 
===============================================  =====  ==========  ==========  =========== 
   Bonds                                            22       (0.8)           -        (0.8) 
-----------------------------------------------  -----  ----------  ----------  ----------- 
   Lease liabilities                                22      (21.5)      (23.3)       (22.7) 
-----------------------------------------------  -----  ----------  ----------  ----------- 
 Debt due in more than one year: 
===============================================  =====  ==========  ==========  =========== 
   Bonds                                            22     (201.0)     (203.4)      (202.7) 
-----------------------------------------------  -----  ----------  ----------  ----------- 
   Lease liabilities                                22      (73.0)      (50.4)       (77.1) 
-----------------------------------------------  -----  ----------  ----------  ----------- 
 Net cash at period end before effects 
  of derivatives and collateral                              200.0       201.3        176.6 
===============================================  =====  ==========  ==========  =========== 
 Effect of derivatives on bank loans                         (9.3)      (17.0)       (13.4) 
-----------------------------------------------  -----  ----------  ----------  ----------- 
 Collateral deposits                                23         7.8        21.9         21.7 
-----------------------------------------------  -----  ----------  ----------  ----------- 
 Net cash including derivatives and collateral 
  excluding pension escrow at closing 
  exchange rate                                              198.5       206.2        184.9 
===============================================  =====  ==========  ==========  =========== 
 
 Net cash including derivatives and collateral 
  excluding pension escrow at average 
  exchange rate                                              205.7       200.8        186.5 
===============================================  =====  ==========  ==========  =========== 
 

The net increase in cash and cash equivalents in the period of GBP41.7 million (31 March 2020 increase of GBP187.1 million , 30 September 2020 increase of GBP201.6 million ) includes a cash outflow of GBP1.2 million (31 March 2020 inflow of GBPnil , 30 September 2020 outflow of GBP2.9 million ) in respect of operating exceptional items.

14 Summary of the effects of acquisitions

On 18 October 2020, the Consumer Media segment acquired the entire ordinary share capital of JPI Media's print operations at Dinnington, Portsmouth and Carn in Northern Ireland, subsequently renamed Associated Printing, for total consideration of GBP10.0 million . The fair value of net assets acquired amounted to GBP12.7 million which resulted in a negative goodwill adjustment of GBP2.7 million. This gain has been recognised in the Consolidated Income Statement in accordance with IFRS 3, Business Combinations.

Associated Printing contributed GBP4.6 million to the Group's revenue, reduced the Group's operating profit by GBP1.8 million and reduced the Group's profit after tax by GBP1.4 million , excluding the gain from bargain purchase ( Note 5 ), for the period between the date of acquisition and 31 March 2021 .

If the acquisition had been completed on the first day of the financial period, Associated Printing would have contributed GBP5.3 million to the Group's revenue, reduced the Group's operating profit by GBP1.9 million and reduced the Group's profit after tax by GBP1.5 million , excluding the gain from bargain purchase ( Note 5 ).

On 2 March 2021, the Consumer Media segment acquired the entire ordinary share capital of New Scientist for total consideration of GBP74.5 million . The New Scientist is a popular weekly science and technology publication.

The New Scientist contributed GBP1.9 million to the Group's revenue, GBP0.5 million to the Group's operating profit and GBP0.4 million to the Group's profit after tax for the period between the date of acquisition and 31 March 2021 .

If the acquisition had been completed on the first day of the financial period, the New Scientist would have contributed GBP10.9 million to the Group's revenue, GBP2.1 million to the Group's operating profit and contributed GBP0.8 million to the Group's profit after tax.

Provisional fair value of net assets acquired with all acquisitions:

 
                                              Associated 
                                                Printing   New Scientist     Total 
                                       Note         GBPm            GBPm      GBPm 
====================================  =====  ===========  ==============  ======== 
                                        18, 
 Goodwill                               (i)            -            50.4      50.4 
====================================  =====  ===========  ==============  ======== 
 Intangible assets                       18            -            30.3      30.3 
====================================  =====  ===========  ==============  ======== 
 Property, plant and equipment           19         12.8             0.1      12.9 
====================================  =====  ===========  ==============  ======== 
 Right of use assets                     20            -             3.5       3.5 
====================================  =====  ===========  ==============  ======== 
 Inventories                                         1.3               -       1.3 
====================================  =====  ===========  ==============  ======== 
 Trade and other receivables                         1.4             1.8       3.2 
====================================  =====  ===========  ==============  ======== 
 Cash and cash equivalents                             -             7.6       7.6 
====================================  =====  ===========  ==============  ======== 
 Trade and other payables                          (1.9)          (11.7)    (13.6) 
====================================  =====  ===========  ==============  ======== 
 Lease liabilities                       13        (0.4)           (3.4)     (3.8) 
====================================  =====  ===========  ==============  ======== 
 Corporation tax                                       -           (0.3)     (0.3) 
====================================  =====  ===========  ==============  ======== 
 Deferred tax                                      (0.5)           (3.8)     (4.3) 
====================================  =====  ===========  ==============  ======== 
 Group share of net assets acquired                 12.7            74.5      87.2 
====================================  =====  ===========  ==============  ======== 
 

Cost of acquisitions:

 
                                             Associated 
                                               Printing   New Scientist   Total 
                                      Note         GBPm            GBPm    GBPm 
===================================  =====  ===========  ==============  ====== 
 Cash paid in current year                          9.5            74.5    84.0 
===================================  =====  ===========  ==============  ====== 
 Working capital adjustment                         0.5               -     0.5 
===================================  =====  ===========  ==============  ====== 
 Negative goodwill                       5          2.7               -     2.7 
===================================  =====  ===========  ==============  ====== 
 Total consideration at fair value                 12.7            74.5    87.2 
===================================  =====  ===========  ==============  ====== 
 

(i) The amount of goodwill which is deductible for the purposes of calculating the Group's tax charge is GBPnil .

Goodwill arising on these acquisitions is principally attributable to the anticipated profitability relating to the distribution of the Group's products in new and existing markets and anticipated operating synergies from the business combinations.

All of the companies acquired during the period contributed GBP6.5 million to the Group's revenue and reduced the Group's profit after tax by GBP1.0 million , excluding the gain from bargain purchase ( Note 5 ) , for the period between the date of acquisition and 31 March 2021 .

Acquisition-related costs, amounting to GBP2.0 million , have been charged against profits for the period in the Consolidated Income Statement.

If all acquisitions had been completed on the first day of the period, Group revenues for the period would have been GBP556.4 million and Group profit attributable to equity holders of the parent would have been a profit of GBP253.6 million , excluding the gain from bargain purchase ( Note 5 ) . This information takes into account the amortisation of acquired intangible assets together with related corporation tax effects but excludes any pre-acquisition finance costs and should not be viewed as indicative of the results of operations that would have occurred if the acquisitions had actually been completed on the first day of the period.

Reconciliation to purchase of businesses and subsidiary undertakings as shown in the Condensed Consolidated Cash Flow Statement:

 
                                                        Unaudited   Unaudited      Audited 
                                                            at 31       at 31        at 30 
                                                            March       March    September 
                                                             2021        2020         2020 
                                                 Note        GBPm        GBPm         GBPm 
==============================================  =====  ==========  ==========  =========== 
 Cash consideration                                          84.0        56.9         70.7 
----------------------------------------------  -----  ----------  ----------  ----------- 
 Cash paid to settle contingent consideration     24, 
  in respect of acquisitions                      (i)         0.9         0.4          0.4 
----------------------------------------------  -----  ----------  ----------  ----------- 
 Cash and cash equivalents acquired with 
  subsidiaries                                              (7.6)       (0.6)        (1.9) 
----------------------------------------------  -----  ----------  ----------  ----------- 
 Bank overdrafts acquired with subsidiaries                     -         0.6          0.6 
----------------------------------------------  -----  ----------  ----------  ----------- 
 Purchase of businesses and subsidiary 
  undertakings                                               77.3        57.3         69.8 
==============================================  =====  ==========  ==========  =========== 
 

(i) Cash paid to settle contingent consideration in respect of acquisitions includes GBP0.8 million (31 March 2020 GBP0.3 million , 30 September 2020 GBP0.3 million ) within the Property Information segment, GBP0.1 million (31 March 2020 GBPnil , 30 September 2020 GBPnil ) within the Consumer Media segment and GBPnil (31 March 2020 GBP0.1 million , 30 September 2020 GBP0.1 million ) within the Events and Exhibitions segment.

15 Summary of the effects of disposals

On 2 March 2021 the Group sold its EdTech segment for net proceeds of GBP294.4 million .

The impact of the disposal of businesses completed during the period on net assets is as follows:

 
                                                         EdTech    Other     Total 
                                                 Note      GBPm     GBPm      GBPm 
=============================================  ======  ========  =======  ======== 
 Goodwill                                          18      68.6      0.3      68.9 
=============================================  ======  ========  =======  ======== 
 Intangible assets                                 18      13.9        -      13.9 
=============================================  ======  ========  =======  ======== 
 Property, plant and equipment                     19       0.6        -       0.6 
=============================================  ======  ========  =======  ======== 
 Right of use assets                               20       3.3        -       3.3 
=============================================  ======  ========  =======  ======== 
 Trade and other receivables                               17.3        -      17.3 
=============================================  ======  ========  =======  ======== 
 Trade and other payables                                (40.1)        -    (40.1) 
=============================================  ======  ========  =======  ======== 
 Lease liabilities                                 13     (4.5)        -     (4.5) 
=============================================  ======  ========  =======  ======== 
 Current tax payable                                      (0.1)        -     (0.1) 
=============================================  ======  ========  =======  ======== 
 Deferred tax liabilities                                 (2.3)        -     (2.3) 
=============================================  ======  ========  =======  ======== 
 Net assets disposed                                       56.7      0.3      57.0 
=============================================  ======  ========  =======  ======== 
 Profit on sale of businesses including 
  recycled cumulative exchange differences      5, 16     236.2      0.5     236.7 
=============================================  ======  ========  =======  ======== 
                                                          292.9      0.8     293.7 
=============================================  ======  ========  =======  ======== 
 
 Satisfied by: 
=============================================  ======  ========  =======  ======== 
 Cash received                                            299.3      0.2     299.5 
=============================================  ======  ========  =======  ======== 
 Directly attributable costs paid                         (1.2)    (0.7)     (1.9) 
=============================================  ======  ========  =======  ======== 
 Directly attributable costs payable                      (3.7)        -     (3.7) 
=============================================  ======  ========  =======  ======== 
 Working capital adjustment                                   -      1.3       1.3 
=============================================  ======  ========  =======  ======== 
 Recycled cumulative translation differences       16     (1.5)        -     (1.5) 
=============================================  ======  ========  =======  ======== 
                                                          292.9      0.8     293.7 
=============================================  ======  ========  =======  ======== 
 

Reconciliation to disposal of businesses and subsidiary undertakings as shown in the Consolidated Cash Flow Statement:

 
                                                         Unaudited   Unaudited      Audited 
                                                             at 31       at 31        at 30 
                                                             March       March    September 
                                                              2021        2020         2020 
                                                              GBPm        GBPm         GBPm 
======================================================  ==========  ==========  =========== 
 Cash consideration net of disposal costs                    (0.5)       (1.0)        (2.9) 
======================================================  ==========  ==========  =========== 
 Cash consideration net of disposal costs - 
  discontinued operations                                    298.1       290.7        290.4 
======================================================  ==========  ==========  =========== 
 Working capital adjustment cash paid - discontinued 
  operations                                                     -       (1.7)        (1.8) 
======================================================  ==========  ==========  =========== 
 Cash consideration received in the current 
  year relating to businesses sold in the prior 
  year                                                           -        15.6         15.6 
======================================================  ==========  ==========  =========== 
 Cash and cash equivalents disposed with subsidiaries            -       (0.2)        (0.2) 
======================================================  ==========  ==========  =========== 
 Proceeds on disposal of businesses and subsidiary 
  undertakings                                               297.6       303.4        301.1 
======================================================  ==========  ==========  =========== 
 

All of the businesses disposed of during the period absorbed GBP4.2 million of the Group's net operating cash flows, contributed GBP296.1 million in investing activities and paid GBP0.7 million in financing activities.

The Group's tax charge includes GBP59.1 million in relation to these disposals of which GBP58.0 million relates to discontinued operations.

16 Discontinued operations

On 26 August 2019, the Group announced the sale of its Energy Information segment to Verisk Analytics, Inc. which completed on 5 November 2019 following the completion of customary closing conditions. On 18 February 2021, the Group announced the sale of its EdTech segment to PowerSchool and EAB. The results of the Energy Information and EdTech segments for the period are included in discontinued operations for the current and prior periods.

The Group's Consolidated Income Statement includes the following results from discontinued operations:

 
                                                              Unaudited   Unaudited 
                                                               6 months    6 months         Audited 
                                                                  ended       ended      year ended 
                                                               31 March    31 March    30 September 
                                                                   2021        2020            2020 
                                                       Note        GBPm        GBPm            GBPm 
==================================================  =======  ==========  ==========  ============== 
 Revenue                                                  3        33.5        48.9            92.0 
==================================================  =======  ==========  ==========  ============== 
 Expenses                                                        (28.9)      (40.6)          (75.6) 
--------------------------------------------------  -------  ----------  ----------  -------------- 
 Depreciation                                             3       (0.6)       (0.8)           (1.6) 
--------------------------------------------------  -------  ----------  ----------  -------------- 
 Amortisation of intangible assets not 
  arising on business combinations                        3       (3.0)       (3.7)           (7.3) 
--------------------------------------------------  -------  ----------  ----------  -------------- 
 Adjusted operating profit                                3         1.0         3.8             7.5 
==================================================  =======  ==========  ==========  ============== 
                                                     3, 10, 
 Exceptional operating (costs)/income                   (i)       (4.7)        11.4            11.4 
--------------------------------------------------  -------  ----------  ----------  -------------- 
 Amortisation of intangible assets arising 
  on business combinations                            3, 10       (0.2)       (0.4)           (0.7) 
--------------------------------------------------  -------  ----------  ----------  -------------- 
 Operating (loss)/profit                                          (3.9)        14.8            18.2 
==================================================  =======  ==========  ==========  ============== 
 Other gains and losses                               3, 10         0.1         0.5             0.5 
--------------------------------------------------  -------  ----------  ----------  -------------- 
 (Loss)/profit before net finance costs 
  and tax                                                         (3.8)        15.3            18.7 
==================================================  =======  ==========  ==========  ============== 
 Investment revenue                                       3           -         0.9             0.9 
--------------------------------------------------  -------  ----------  ----------  -------------- 
 Finance costs                                            3       (0.1)       (0.1)           (0.2) 
--------------------------------------------------  -------  ----------  ----------  -------------- 
 (Loss)/profit before tax                                10       (3.9)        16.1            19.4 
==================================================  =======  ==========  ==========  ============== 
 Tax credit/(charge)                                      8         0.7       (4.7)           (2.6) 
==================================================  =======  ==========  ==========  ============== 
 (Loss)/profit after tax attributable 
  to discontinued operations                                      (3.2)        11.4            16.8 
--------------------------------------------------  -------  ----------  ----------  -------------- 
                                                     3, 10, 
 Profit on disposal of discontinued operations           15       238.0       145.7           145.1 
==================================================  =======  ==========  ==========  ============== 
 Recycled cumulative translation differences         3, 10, 
  on disposal of discontinued operations                 15       (1.5)      (11.4)          (11.3) 
--------------------------------------------------  -------  ----------  ----------  -------------- 
 Tax charge on profit on disposal of discontinued 
  operations                                              8      (58.0)      (13.4)           (7.7) 
--------------------------------------------------  -------  ----------  ----------  -------------- 
 Profit attributable to discontinued operations           3       175.3       132.3           142.9 
==================================================  =======  ==========  ==========  ============== 
 

(i) The Group's Energy Information business (Genscape) provided a third-party auditor service verifying Renewable Identification Numbers (RINs) for renewable fuel production activities in the US, as part of the Renewable Fuel Standard Quality Assurance Program (Program), a regulatory program administered by the US Environmental Protection Agency (EPA).

Following discovery and self-reporting to the EPA by Genscape of potential fraudulent RINs generated by two companies unconnected with DMGT but verified by Genscape between 2013 and 2014 under the Program, the EPA issued a notice of intent to revoke the ability of Genscape to verify RINs as a third-party auditor on 4 January 2017. Following the EPA investigation of the two companies in April 2016, the two companies pleaded guilty of fraud in connection with the broader scheme to generate RINs.

EPA regulations for the audit Program set a liability cap on replacement of invalid RINs of 2.0% of the RINs. In April 2017 Genscape voluntarily paid the 2.0% liability cap associated with the invalid RINs at a cost of US$1.3 million, based on the then-prevailing market rates, subject to a reservation of rights. The EPA regulations allow for situations where the cap does not apply - including fraud, auditor error and negligence.

The EPA had not formally alleged any fraud or intentional wrongdoing by Genscape, but in its May 2019 final determination letter, EPA did find grounds for auditor error and negligence by Genscape and ordered Genscape to replace 69.2 million additional RINs it had verified.

In July 2019, Genscape filed a petition for review with the Sixth Circuit Court of Appeals and a motion to stay the EPA's order to replace the 69.2 million RINs which was accepted for the duration of Genscape's petition for review.

Notwithstanding the sale of Genscape to Verisk, DMGT is responsible for any costs, claims or awards and all settlement negotiations with the EPA.

Since RINs trade in a volatile range, averaging approximately 68 cents over the previous 18-month period, replacing the maximum 69.2 million RINs claimed by the EPA would equate to a potential maximum claim of approximately US$47.0 million. Using the period end price of US$1.23 replacing the maximum 69.2 million RINs claimed by the EPA would equate to a potential maximum claim of US$85.0 million.

DMGT continues to cooperate with the EPA and settlement discussions are ongoing but considering the uncertainties involved, the length of time involved and taking note of the order from the EPA, the Group, without admitting any wrongdoing, made a provision for the total cost of replacing RINs as at 30 September 2019.

At each period end IAS 37 requires DMGT to review this provision and make appropriate adjustments to reflect the current status of the claim. The Group's closing provision includes the cost of replacement RINs, estimated purchase costs, associated legal fees and currency fluctuations. The final settlement amount may be different than the provision made, however, it is not possible for the Group to predict with any certainty the potential impact of this litigation or to quantify the ultimate cost of a verdict or resolution. Accordingly, the provision could change substantially over time as the dispute progresses and new facts emerge. Any change to this provision will continue to be disclosed as an exceptional operating item within discontinued operations.

A deferred tax asset of US$6.5 million (GBP4.7 million) arises on this provision (31 March 2020 US$5.3 million (GBP4.3 million), 30 September 2020 US$5.3 million (GBP4.1 million)).

Cash flows associated with discontinued operations comprise operating cash outflows of GBP4.2 million (31 March 2020 GBP11.4 million inflow , 30 September 2020 GBP33.6 million inflow ), investing cash inflows of GBP 296.1 million (31 March 2020 GBP237.4 million , 30 September 2020 GBP235.6 million ) and financing cash outflows of GBP0.7 million (31 March 2020 GBP2.5 million , 30 September 2020 GBP3.3 million ).

17 Total assets and liabilities of businesses held for sale

The main classes of assets and liabilities comprising the operations classified as held for sale are set out in the table below.

At 31 March 2021, the assets and liabilities held for sale relate to the Group's Energy Information segment, together with Rochford Brady Legal Services Ltd (Rochford) and Lawlink (UK) Ltd (Lawlink) which were included in the Property Information segment. The proceeds of disposal less costs to sell exceed the net carrying amount of the relevant assets and liabilities of Rochford and Lawlink, and, accordingly, no impairment loss was recognised on the classification of these operations as held for sale.

At 31 March 2020 and 30 September 2020, the assets and liabilities held for sale relate to the Group's Energy Information segment.

 
                                                        Unaudited   Unaudited      Audited 
                                                            at 31       at 31        at 30 
                                                            March       March    September 
                                                             2021        2020         2020 
                                                 Note        GBPm        GBPm         GBPm 
==============================================  =====  ==========  ==========  =========== 
 Goodwill                                          18         1.4           -            - 
----------------------------------------------  -----  ----------  ----------  ----------- 
 Intangible assets                                 18         0.4           -            - 
----------------------------------------------  -----  ----------  ----------  ----------- 
 Deferred tax                                      16         4.7         4.3          4.1 
----------------------------------------------  -----  ----------  ----------  ----------- 
 Right of use assets                               20         0.5           -            - 
----------------------------------------------  -----  ----------  ----------  ----------- 
 Trade and other receivables: 
----------------------------------------------  -----  ----------  ----------  ----------- 
     Trade receivables                                        0.7           -            - 
----------------------------------------------  -----  ----------  ----------  ----------- 
     Expected credit losses                                 (0.1)           -            - 
----------------------------------------------  -----  ----------  ----------  ----------- 
     Prepayments                                              0.1           -            - 
----------------------------------------------  -----  ----------  ----------  ----------- 
     Other receivables                                        0.1           -            - 
----------------------------------------------  -----  ----------  ----------  ----------- 
 Cash and cash equivalents                         13         0.3           -            - 
----------------------------------------------  -----  ----------  ----------  ----------- 
 Total assets associated with businesses 
  held for sale                                               8.1         4.3          4.1 
==============================================  =====  ==========  ==========  =========== 
 
 Trade and other payables                                   (0.5)           -            - 
----------------------------------------------  -----  ----------  ----------  ----------- 
 Lease liabilities                                 22       (0.7)           -            - 
----------------------------------------------  -----  ----------  ----------  ----------- 
 Provisions                                                (22.7)      (20.5)       (19.7) 
----------------------------------------------  -----  ----------  ----------  ----------- 
 Total liabilities associated with businesses 
  held for sale                                            (23.9)      (20.5)       (19.7) 
==============================================  =====  ==========  ==========  =========== 
 
 Net liabilities of the disposal group                     (15.8)      (16.2)       (15.6) 
==============================================  =====  ==========  ==========  =========== 
 

18 Goodwill and other intangible assets

 
                                                                                Other 
                                                              Goodwill    Intangibles 
                                                       Note       GBPm           GBPm 
====================================================  =====  =========  ============= 
 Cost 
====================================================  =====  =========  ============= 
 Audited at 30 September 2019                                    279.6          503.3 
====================================================  =====  =========  ============= 
 Additions from business combinations                              4.1           52.2 
====================================================  =====  =========  ============= 
 Other additions                                                     -            0.5 
====================================================  =====  =========  ============= 
 Internally generated                                                -            2.7 
====================================================  =====  =========  ============= 
 Disposals                                                       (2.8)          (1.7) 
====================================================  =====  =========  ============= 
 Exchange adjustment                                             (0.5)          (2.7) 
====================================================  =====  =========  ============= 
 Unaudited at 31 March 2020                                      280.4          554.3 
====================================================  =====  =========  ============= 
 Audited at 30 September 2019                                    279.6          503.3 
====================================================  =====  =========  ============= 
 Additions from business combinations                             22.0           50.4 
====================================================  =====  =========  ============= 
 Other additions                                                     -            2.3 
====================================================  =====  =========  ============= 
 Internally generated                                                -            4.2 
====================================================  =====  =========  ============= 
 Adjustment to previous year estimate of contingent              (0.2)              - 
  consideration 
====================================================  =====  =========  ============= 
 Disposals                                                       (3.2)          (5.1) 
====================================================  =====  =========  ============= 
 Transfer from property, plant and equipment                         -            0.7 
====================================================  =====  =========  ============= 
 Exchange adjustment                                             (3.7)         (14.1) 
====================================================  =====  =========  ============= 
 Audited at 30 September 2020                                    294.5          541.7 
====================================================  =====  =========  ============= 
 Additions from business combinations                    14       50.4           30.3 
====================================================  =====  =========  ============= 
 Other additions                                                     -            1.7 
====================================================  =====  =========  ============= 
 Internally generated                                                -            0.6 
====================================================  =====  =========  ============= 
 Adjustment to previous year estimate of contingent              (0.1)              - 
  consideration 
====================================================  =====  =========  ============= 
 Disposals                                               15     (70.3)         (76.2) 
====================================================  =====  =========  ============= 
 Classified as held for sale                             17      (1.4)          (1.4) 
====================================================  =====  =========  ============= 
 Reclassifications                                               (0.7)          (0.4) 
====================================================  =====  =========  ============= 
 Exchange adjustment                                             (3.8)         (17.2) 
====================================================  =====  =========  ============= 
 Unaudited at 31 March 2021                                      268.6          479.1 
====================================================  =====  =========  ============= 
 
 Accumulated amortisation and impairment 
====================================================  =====  =========  ============= 
 Audited at 30 September 2019                                     28.4          433.4 
====================================================  =====  =========  ============= 
 Amortisation                                             3          -           13.4 
====================================================  =====  =========  ============= 
 Impairment                                               3        8.1            0.1 
====================================================  =====  =========  ============= 
 Disposals                                                           -          (1.1) 
====================================================  =====  =========  ============= 
 Exchange adjustment                                             (0.7)          (2.1) 
====================================================  =====  =========  ============= 
 Unaudited at 31 March 2020                                       35.8          443.7 
====================================================  =====  =========  ============= 
 Audited at 30 September 2019                                     28.4          433.4 
====================================================  =====  =========  ============= 
 Amortisation                                             3          -           26.7 
====================================================  =====  =========  ============= 
 Impairment                                               3       11.8            3.8 
====================================================  =====  =========  ============= 
 Disposals                                                           -          (4.5) 
====================================================  =====  =========  ============= 
 Transfer from property, plant and equipment                         -            0.2 
====================================================  =====  =========  ============= 
 Exchange adjustment                                             (1.1)         (12.8) 
====================================================  =====  =========  ============= 
 Audited at 30 September 2020                                     39.1          446.8 
====================================================  =====  =========  ============= 
 Amortisation                                             3          -           13.4 
====================================================  =====  =========  ============= 
 Disposals                                               15      (1.4)         (62.3) 
====================================================  =====  =========  ============= 
 Classified as held for sale                             17          -          (1.0) 
====================================================  =====  =========  ============= 
 Exchange adjustment                                             (0.2)         (16.3) 
====================================================  =====  =========  ============= 
 Unaudited at 31 March 2021                                       37.5          380.6 
====================================================  =====  =========  ============= 
 Net book value - Unaudited at 31 March 2020                     244.6          110.6 
====================================================  =====  =========  ============= 
 Net book value - Audited at 30 September 2020                   255.4           94.9 
====================================================  =====  =========  ============= 
 Net book value - Unaudited at 31 March 2021                     231.1           98.5 
====================================================  =====  =========  ============= 
 

The Group tests goodwill annually for impairment, or more frequently if there are indicators that goodwill might be impaired. Intangible assets, all of which have finite lives, are tested separately from goodwill only where impairment indicators exist.

The Directors have considered indicators of impairment including those outlined in IAS 36, Impairment of Assets which would require an impairment review to be performed.

Despite the continued impact of the Covid-19 pandemic during the period, the Group has continued to trade strongly throughout the pandemic. Nevertheless, the impact of the pandemic on specific cash generating units (CGUs) in the Exhibitions and Events segment where certain exhibitions and events have been cancelled has been considered an indicator of impairment and accordingly the Group has undertaken a full impairment review on these CGUs.

Following this review goodwill impairment losses recognised in the period amounted to GBPnil. In the prior period ended 31 March 2020 , the Group recorded a goodwill impairment charge of GBP5.1 million relating to the Events and Exhibitions segment and GBP2.9 million relating to the Consumer Media segment. The tax credit in respect of the impairment of goodwill amounted to GBPnil . In the prior year ended 30 September 2020 , the Group recorded a goodwill impairment charge of GBP11.8 million of which GBP8.9 million related to the Events and Exhibitions segment. The prior period impairment charge was the result of reduced forecasts following the Covid-19 pandemic which has resulted in a reduction in value in use. There is a tax credit of GBPnil associated with this impairment charge.

Impairment charges relating to intangible assets during the period to 31 March 2021 amounted to GBPnil (31 March 2020 GBP0.1 million relating to the Events and Exhibitions segment, 30 September 2020 GBP1.5 million relating to the Property Information segment and GBP2.3 million relating to the Events and Exhibitions segment).

The Group has also made further disclosures, in accordance with paragraph 134 of IAS 36, where a reasonably possible change in the key assumptions may result in an impairment. Using this criteria, the Group has provided a sensitivity analysis of the key assumptions used in CWC and Atticus in the Events and Exhibitions segment.

CWC, acquired on 9 April 2020 in the Events and Exhibitions segment holds goodwill with a carrying value of GBP7.9 million (30 September 2020 GBP7.9 million) together with intangible assets with a carrying value of GBP7.4 million (30 September 2020 GBP8.2 million). The carrying value of CWC has been determined using a value in use calculation in line with IAS 36. The methodology applied to the value in use calculations reflects past experience and external sources of information including:

(i) cash flows for the business for the six month period to 30 September 2021 derived from current forecasts. The Directors believe these to be reasonably achievable;

(ii) subsequent cash flows for the period to 31 March 2026 increased in line with growth expectations of the business;

(iii) cash flows beyond the period to 31 March 2026 extrapolated using a long-term nominal growth rate of 2.00% ; and

   (iv)          a pre-tax discount rate of 16.67% . 

Using the above methodology, the recoverable amount exceeded the total carrying value by GBP1.0 million (30 September 2020 GBP7.0 million). For this business the Directors performed a sensitivity analysis on the total carrying value of the CGU. For the recoverable amount to be equal to the carrying value the discount rate would need to be increased by 0.81% to 17.48% (2020 4.30% to 17.43%), the long-term growth rate would need to decline by 0.82% to 1.18% (30 September 2020 decline by 5.28% to -3.28%), or the CGU would need to miss budget by 6.43% (30 September 2020 100.0%).

Atticus in the Events and Exhibitions segment holds goodwill with a carrying value of GBP1.9 million (31 March 2020 GBP2.1 million , 30 September 2020 GBP2.1 million ) together with intangible assets with a carrying value of GBP0.3 million (31 March 2020 2020 GBP0.5 million , 30 September 2020 GBP0.5 million ). The carrying value of Atticus has been determined using a value in use calculation in line with IAS 36. The methodology applied to the value in use calculations reflects past experience and external sources of information including:

(i) cash flows for the business for the six month period to 30 September 2021 derived from current forecasts. The Directors believe these to be reasonably achievable;

(ii) subsequent cash flows for the period to 31 March 2026 increased in line with growth expectations of the business;

(iii) cash flows beyond the period to 31 March 2026 extrapolated using a long-term nominal growth rate of 2.00% ; and

   (iv)          a pre-tax discount rate of 15.00% . 

Using the above methodology, the recoverable amount exceeded the total carrying value by GBP0.7 million (31 March 2020 GBP5.3 million , 30 September 2020 GBP0.1 million ). For this business the Directors performed a sensitivity analysis on the total carrying value of the CGU. For the recoverable amount to be equal to the carrying value the discount rate would need to be increased by 3.81% to 18.81% (31 March 2020 increased by 19.18% to 31.92% , 30 September 2020 increased by 0.14% to 13.26% ), the long-term growth rate would need to decline by 4.77% to -2.77% (31 March 2020 decline by 48.33% to -45.33% , 30 September 2020 decline by 0.15% to 1.85% ), or the CGU would need to miss budget by 26.87% (31 March 2020 206.99% , 30 September 2020 3.08% ) .

19 Property, plant and equipment

 
                                                       Short        Plant 
                                      Freehold     leasehold          and 
                                    properties    properties    equipment    Total 
                            Note          GBPm          GBPm         GBPm     GBPm 
=========================  =====  ============  ============  ===========  ======= 
 Cost 
=========================  =====  ============  ============  ===========  ======= 
 Audited at 30 
  September 2019                          32.4          22.1        279.6    334.1 
=========================  =====  ============  ============  ===========  ======= 
 Owned by subsidiaries 
  acquired                                   -             -          0.1      0.1 
=========================  =====  ============  ============  ===========  ======= 
 Additions                                 0.2           0.1          6.3      6.6 
=========================  =====  ============  ============  ===========  ======= 
 Disposals                               (0.2)         (0.2)        (2.1)    (2.5) 
=========================  =====  ============  ============  ===========  ======= 
 Exchange adjustment                         -         (0.2)        (0.9)    (1.1) 
=========================  =====  ============  ============  ===========  ======= 
 Unaudited at 31 
  March 2020                              32.4          21.8        283.0    337.2 
=========================  =====  ============  ============  ===========  ======= 
 Audited at 30 
  September 2019                          32.4          22.1        279.6    334.1 
=========================  =====  ============  ============  ===========  ======= 
 Owned by subsidiaries 
  acquired                                   -             -          0.2      0.2 
=========================  =====  ============  ============  ===========  ======= 
 Additions                                 0.7           1.7          9.8     12.2 
=========================  =====  ============  ============  ===========  ======= 
 Disposals                               (0.2)         (0.2)        (4.1)    (4.5) 
=========================  =====  ============  ============  ===========  ======= 
 Transfers to intangible 
  fixed assets                               -             -        (0.7)    (0.7) 
=========================  =====  ============  ============  ===========  ======= 
 Exchange adjustment                         -         (0.8)        (2.5)    (3.3) 
=========================  =====  ============  ============  ===========  ======= 
 Audited at 30 
  September 2020                          32.9          22.8        282.3    338.0 
=========================  =====  ============  ============  ===========  ======= 
 Owned by subsidiaries 
  acquired                    14           9.7             -          3.2     12.9 
=========================  =====  ============  ============  ===========  ======= 
 Additions                                 0.4             -          3.6      4.0 
=========================  =====  ============  ============  ===========  ======= 
 Disposals                                   -             -        (0.8)    (0.8) 
=========================  =====  ============  ============  ===========  ======= 
 Owned by subsidiaries 
  disposed                    15             -             -        (2.7)    (2.7) 
=========================  =====  ============  ============  ===========  ======= 
 Exchange adjustment                         -         (1.2)        (3.4)    (4.6) 
=========================  =====  ============  ============  ===========  ======= 
 Unaudited at 31 
  March 2021                              43.0          21.6        282.2    346.8 
=========================  =====  ============  ============  ===========  ======= 
 
 
                                                        Short        Plant 
                                       Freehold     leasehold          and 
                                     properties    properties    equipment    Total 
                             Note          GBPm          GBPm         GBPm     GBPm 
==========================  =====  ============  ============  ===========  ======= 
 Accumulated depreciation 
  and impairment 
==========================  =====  ============  ============  ===========  ======= 
 Audited at 30 
  September 2019                           18.1          17.5        224.1    259.7 
==========================  =====  ============  ============  ===========  ======= 
 Charge for the 
  period                        3           0.6           1.3          9.2     11.1 
==========================  =====  ============  ============  ===========  ======= 
 Disposals                                (0.2)         (0.2)        (2.1)    (2.5) 
==========================  =====  ============  ============  ===========  ======= 
 Exchange adjustment                          -         (0.1)        (0.6)    (0.7) 
==========================  =====  ============  ============  ===========  ======= 
 Unaudited at 31 
  March 2020                               18.5          18.5        230.6    267.6 
==========================  =====  ============  ============  ===========  ======= 
 Audited at 30 
  September 2019                           18.1          17.5        224.1    259.7 
==========================  =====  ============  ============  ===========  ======= 
 Charge for the 
  period                        3           1.3           2.6         18.6     22.5 
==========================  =====  ============  ============  ===========  ======= 
 Disposals                                (0.2)         (0.2)        (3.9)    (4.3) 
==========================  =====  ============  ============  ===========  ======= 
 Transfers to intangible 
  fixed assets                                -             -        (0.2)    (0.2) 
==========================  =====  ============  ============  ===========  ======= 
 Exchange adjustment                          -         (0.8)        (1.9)    (2.7) 
==========================  =====  ============  ============  ===========  ======= 
 Audited at 30 
  September 2020                           19.2          19.1        236.7    275.0 
==========================  =====  ============  ============  ===========  ======= 
 Charge for the 
  period                        3           0.7           0.9          9.5     11.1 
==========================  =====  ============  ============  ===========  ======= 
 Disposals                                    -             -        (0.7)    (0.7) 
==========================  =====  ============  ============  ===========  ======= 
 Owned by subsidiaries 
  disposed                     15             -             -        (2.1)    (2.1) 
==========================  =====  ============  ============  ===========  ======= 
 Exchange adjustment                          -         (1.1)        (2.8)    (3.9) 
==========================  =====  ============  ============  ===========  ======= 
 Unaudited at 31 
  March 2021                               19.9          18.9        240.6    279.4 
==========================  =====  ============  ============  ===========  ======= 
 Net book value 
  - Unaudited at 
  31 March 2020                            13.9           3.3         52.4     69.6 
==========================  =====  ============  ============  ===========  ======= 
 Net book value 
  - Audited at 30 
  September 2020                           13.7           3.7         45.6     63.0 
==========================  =====  ============  ============  ===========  ======= 
 Net book value 
  - Unaudited at 
  31 March 2021                            23.1           2.7         41.6     67.4 
==========================  =====  ============  ============  ===========  ======= 
 

During the period the Group spent GBP 4.0 million (period ended 31 March 2020 GBP6.6 million , year ended 30 September 2020 GBP 12.2 million ) on property, plant and equipment and disposed certain of its property, plant and equipment with a carrying value of GBP0.1 million (31 March 2020 GBP nil million, 30 September 2020 GBP 0.2 million ) for net proceeds of GBP0.1 million (31 March 2020 GBP nil , 30 September 2020 GBPnil ). In addition property, plant and equipment with a carrying value of GBP 0.6 million was owned by subsidiaries disposed during the year (31 March 2020 GBP nil , 30 September 2020 GBP nil ).

20 Right of use assets

 
                                            Leasehold    Plant and 
                                           properties    equipment    Total 
                                   Note          GBPm         GBPm     GBPm 
================================  =====  ============  ===========  ======= 
 Cost 
================================  =====  ============  ===========  ======= 
 Audited at 30 September 2019 
================================  =====  ============  ===========  ======= 
 Adjustment for transition to 
  IFRS 16                                        68.1          1.8     69.9 
================================  =====  ============  ===========  ======= 
 Restated at 1 October 2019                      68.1          1.8     69.9 
================================  =====  ============  ===========  ======= 
 Owned by subsidiaries acquired                   0.2            -      0.2 
================================  =====  ============  ===========  ======= 
 Additions                                        2.5          0.3      2.8 
================================  =====  ============  ===========  ======= 
 Exchange adjustment                            (0.7)            -    (0.7) 
================================  =====  ============  ===========  ======= 
 Unaudited at 31 March 2020                      70.1          2.1     72.2 
================================  =====  ============  ===========  ======= 
 Audited at 30 September 2019                       -            -        - 
================================  =====  ============  ===========  ======= 
 Adjustment for transition to 
  IFRS 16                                        68.1          1.8     69.9 
================================  =====  ============  ===========  ======= 
 Restated at 1 October 2019                      68.1          1.8     69.9 
================================  =====  ============  ===========  ======= 
 Owned by subsidiaries acquired                   0.1            -      0.1 
================================  =====  ============  ===========  ======= 
 Additions                                       41.4          0.7     42.1 
================================  =====  ============  ===========  ======= 
 Disposals                                      (0.1)            -    (0.1) 
================================  =====  ============  ===========  ======= 
 Transfers to intangible fixed 
  assets                                          0.6            -      0.6 
================================  =====  ============  ===========  ======= 
 Exchange adjustment                            (2.0)            -    (2.0) 
================================  =====  ============  ===========  ======= 
 Audited at 30 September 2020                   108.1          2.5    110.6 
================================  =====  ============  ===========  ======= 
 Owned by subsidiaries acquired      14           3.5            -      3.5 
================================  =====  ============  ===========  ======= 
 Additions                                       11.4          0.1     11.5 
================================  =====  ============  ===========  ======= 
 Disposals                                      (3.1)            -    (3.1) 
================================  =====  ============  ===========  ======= 
 Classified as held for sale         17         (0.8)            -    (0.8) 
================================  =====  ============  ===========  ======= 
 Owned by subsidiaries disposed      15         (5.0)            -    (5.0) 
================================  =====  ============  ===========  ======= 
 Exchange adjustment                            (4.3)        (0.2)    (4.5) 
================================  =====  ============  ===========  ======= 
 Unaudited at 31 March 2021                     109.8          2.4    112.2 
================================  =====  ============  ===========  ======= 
 
 
                                            Leasehold    Plant and 
                                           properties    equipment    Total 
                                   Note          GBPm         GBPm     GBPm 
================================  =====  ============  ===========  ======= 
 Accumulated depreciation and 
  impairment 
================================  =====  ============  ===========  ======= 
 Audited at 30 September 2019 
================================  =====  ============  ===========  ======= 
 Charge for the period                3           9.4          0.4      9.8 
================================  =====  ============  ===========  ======= 
 Exchange adjustment                              0.1            -      0.1 
================================  =====  ============  ===========  ======= 
 Unaudited at 31 March 2020                       9.5          0.4      9.9 
================================  =====  ============  ===========  ======= 
 Audited at 30 September 2019                       -            -        - 
================================  =====  ============  ===========  ======= 
 Charge for the year                  3          20.1          0.8     20.9 
================================  =====  ============  ===========  ======= 
 Exchange adjustment                            (0.1)            -    (0.1) 
================================  =====  ============  ===========  ======= 
 Audited at 30 September 2020                    20.0          0.8     20.8 
================================  =====  ============  ===========  ======= 
 Charge for the period                3          10.1          0.4     10.5 
================================  =====  ============  ===========  ======= 
 Disposals                                      (1.9)        (0.2)    (2.1) 
================================  =====  ============  ===========  ======= 
 Classified as held for sale         17         (0.3)            -    (0.3) 
================================  =====  ============  ===========  ======= 
 Owned by subsidiaries disposed      15         (1.7)            -    (1.7) 
================================  =====  ============  ===========  ======= 
 Exchange adjustment                            (0.7)            -    (0.7) 
================================  =====  ============  ===========  ======= 
 Unaudited at 31 March 2021                      25.5          1.0     26.5 
================================  =====  ============  ===========  ======= 
 Net book value - Unaudited 
  at 31 March 2020                               60.6          1.7     62.3 
================================  =====  ============  ===========  ======= 
 Net book value - Audited at 
  30 September 2020                              88.1          1.7     89.8 
================================  =====  ============  ===========  ======= 
 Net book value - Unaudited 
  at 31 March 2021                               84.3          1.4     85.7 
================================  =====  ============  ===========  ======= 
 

21 Financial assets at fair value through Other Comprehensive Income

 
                                                         Unlisted 
                                                  Note       GBPm 
===============================================  =====  ========= 
 Audited at 30 September 2019                                33.8 
===============================================  =====  ========= 
 Additions - cash                                            37.7 
===============================================  =====  ========= 
 Additions - non cash, conversion of loan note                9.0 
===============================================  =====  ========= 
 Disposals                                                  (0.3) 
===============================================  =====  ========= 
 Transfer from investment in associates            (i)       26.5 
===============================================  =====  ========= 
 Fair value movement in the year                             65.0 
===============================================  =====  ========= 
 Exchange adjustment                                        (0.3) 
===============================================  =====  ========= 
 Unaudited at 31 March 2020                                 171.4 
===============================================  =====  ========= 
 Audited at 30 September 2019                                33.8 
===============================================  =====  ========= 
 Additions - cash                                            48.0 
===============================================  =====  ========= 
 Additions - non cash                                         9.0 
===============================================  =====  ========= 
 Disposals                                                  (0.3) 
===============================================  =====  ========= 
 Transfer from investment in associates            (i)       26.5 
===============================================  =====  ========= 
 Transfer to investment in associates             (ii)      (0.8) 
===============================================  =====  ========= 
 Fair value movement in the period                          295.0 
===============================================  =====  ========= 
 Exchange adjustment                                        (0.5) 
===============================================  =====  ========= 
 Audited at 30 September 2020                               410.7 
===============================================  =====  ========= 
 Additions - cash                                            34.3 
===============================================  =====  ========= 
 Transfer from investment in associates            (i)        1.9 
===============================================  =====  ========= 
 Fair value movement in the year                     2      397.6 
===============================================  =====  ========= 
 Exchange adjustment                                        (0.5) 
===============================================  =====  ========= 
 Unaudited at 31 March 2021                                 844.0 
===============================================  =====  ========= 
 

The financial assets above are non-interest bearing unlisted securities, which are recorded as non-current assets unless they are expected to be sold within one year, in which case they are recorded as current assets.

(i) In the current period, the Group's interest in Bricklane Technologies Ltd, previously an associate, was diluted and the Group no longer has significant influence. Accordingly, the investment has been reclassified as a financial asset.

In the prior periods ended 31 March 2020 and 30 September 2020 the Group's investment in Cazoo Holdings Ltd (Cazoo), previously an associate, was reclassified as a financial asset. The Group can participate in Cazoo Board discussions but cannot veto any Cazoo Board decisions - which are based on a simple Board majority, due to the current composition of the other seats on the Board and has no other means that give it the ability to participate in the financial and operating policy decisions of Cazoo. The Group provides no essential technical information to develop the Cazoo business and there is no interchange of managerial personnel between the Group and Cazoo. Therefore, the Directors have concluded that the Group does not possess the ability to exert significant influence over Cazoo and accordingly the Group has not equity accounted for its interest.

(ii) During the prior period ended 30 September 2020 the Group increased its investment in Quick Move Ltd which is now held as an associate.

Financial assets at fair value through Other Comprehensive Income are analysed as follows:

 
                                                                                   Unaudited   Unaudited      Audited 
                                                                                       at 31       at 31        at 30 
                                                                                       March       March    September 
                                                                                        2021        2020         2020 
                                                            Class of       Group 
                                                Note         Holding    interest        GBPm        GBPm         GBPm 
===========================================  =======  ==============  ==========  ==========  ==========  =========== 
 Unlisted 
===========================================  =======  ==============  ==========  ==========  ==========  =========== 
 Cazoo Holdings Ltd (incorporated                 2,      Preference 
  and operating in the UK)                       (i)    and Ordinary       21.0%       802.2       140.0        375.0 
===========================================  =======  ==============  ==========  ==========  ==========  =========== 
 PA Media Group Ltd (incorporated 
  and operating in the UK)                      (ii)        Ordinary       17.3%        10.7         7.2          7.4 
===========================================  =======  ==============  ==========  ==========  ==========  =========== 
 BDG Media, Inc. (incorporated                                Common 
  and operating in the US)                     (iii)           Stock        3.4%         6.0         6.7          6.4 
===========================================  =======  ==============  ==========  ==========  ==========  =========== 
 Kortext Ltd (incorporated and                            Preference 
  operating in the UK)                          (iv)    and Ordinary        9.8%         5.6         3.4          5.6 
===========================================  =======  ==============  ==========  ==========  ==========  =========== 
 Cue Ball Capital LP (incorporated                           Limited 
  and operating in the US)                       (v)         Partner        2.5%         2.7         2.9          3.1 
===========================================  =======  ==============  ==========  ==========  ==========  =========== 
 Hambro Perks Ltd (incorporated 
  and operating in the UK)                      (vi)        Ordinary        2.9%         2.2         2.2          2.2 
===========================================  =======  ==============  ==========  ==========  ==========  =========== 
 Taboola.com Ltd (incorporated                    2, 
  and operating in Israel)                     (vii)      Preference        0.4%         4.1         2.0          2.7 
===========================================  =======  ==============  ==========  ==========  ==========  =========== 
 Farewill Ltd (incorporated and 
  operating in the UK)                        (viii)      Preference        5.4%         3.7         1.8          3.7 
===========================================  =======  ==============  ==========  ==========  ==========  =========== 
 Air Mail LLC (incorporated and 
  operating in the US)                          (ix)      Preference        5.0%         0.9         1.0          1.0 
===========================================  =======  ==============  ==========  ==========  ==========  =========== 
 Financial Network Analytics (incorporated 
  and operating in the UK)                       (x)        Ordinary       10.0%         1.0         1.0          1.0 
===========================================  =======  ==============  ==========  ==========  ==========  =========== 
 GPNutrition Ltd (incorporated 
  and operating in the UK)                      (xi)        Ordinary       13.9%         0.5         1.0          1.0 
===========================================  =======  ==============  ==========  ==========  ==========  =========== 
 Bricklane Technologies Ltd (incorporated 
  and operating in the UK)                     (xii)      Preference       15.6%         2.7           -            - 
===========================================  =======  ==============  ==========  ==========  ==========  =========== 
 CompStak, Inc. (incorporated and 
  operating in the US)                        (xiii)        Ordinary        2.0%         0.5         0.6          0.5 
===========================================  =======  ==============  ==========  ==========  ==========  =========== 
 Other                                                                                   1.2         1.6          1.1 
===========================================  =======  ==============  ==========  ==========  ==========  =========== 
                                                                                       844.0       171.4        410.7 
===========================================  =======  ==============  ==========  ==========  ==========  =========== 
 
   (i)        Cazoo Holdings Ltd provides an online used car sales platform. 
   (ii)       PA Media Group Ltd is a provider of news, sport and entertainment information. 

(iii) BDG Media, Inc. operating as Bustle provides an online information platform covering fashion, politics, technology, diversity, celebrities, health and beauty.

   (iv)     Kortext Ltd provides a digital learning platform and supplies digital textbooks. 

(v) Cue Ball Capital LP is a venture capital and private equity firm specialising in start-ups, early-stage, mid-venture, growth equity scale-ups and buy-out investments.

   (vi)     Hambro Perks Ltd is a venture capital firm. 
   (vii)    Taboola.com Ltd is a content marketing platform provider. 

(viii) Farewill Ltd provides online-based will-writing services.

(ix) Air Mail, LLC owns and operates an online media service that provides weekly digital newsletter covering politics, business, the environment, the arts, literature, film and television, food, design, travel, architecture, society, fashion and crime.

(x) Financial Network Analytics Ltd provides a platform which allows financial regulators and financial market infrastructures to map and monitor complex financial networks and to simulate operational and financial risks.

   (xi)      GPNutrition Ltd provides direct to consumer nutritional supplements. 
   (xii)    Bricklane Technologies Ltd provides an online property investment platform. 

(xiii) CompStak, Inc. provides commercial real estate information to brokers, appraisers, researchers, landlords, lenders and investors.

22 Borrowings

The Group's borrowings are unsecured and are analysed as follows:

 
                                           Unaudited       Unaudited         Audited 
                                               at 31           at 31           at 30 
                                               March           March       September 
                                Note    2021 Undrawn    2020 Undrawn    2020 Undrawn 
                                                GBPm            GBPm            GBPm 
=============================  =====  ==============  ==============  ============== 
 Current liabilities 
=============================  =====  ==============  ==============  ============== 
 Bonds                            13             0.8               -             0.8 
-----------------------------  -----  --------------  --------------  -------------- 
 Bank overdrafts                  13            17.9            10.8            20.4 
-----------------------------  -----  --------------  --------------  -------------- 
 Lease liabilities                13            21.5            23.3            22.7 
-----------------------------  -----  --------------  --------------  -------------- 
                                                40.2            34.1            43.9 
-----------------------------  -----  --------------  --------------  -------------- 
 Classified as held for sale      17           (0.7)               -               - 
-----------------------------  -----  --------------  --------------  -------------- 
                                                39.5            34.1            43.9 
=============================  =====  ==============  ==============  ============== 
 
 Non-current liabilities 
=============================  =====  ==============  ==============  ============== 
 Bonds                            13           201.0           203.4           202.7 
-----------------------------  -----  --------------  --------------  -------------- 
 Lease liabilities                13            73.0            50.4            77.1 
-----------------------------  -----  --------------  --------------  -------------- 
                                               274.0           253.8           279.8 
=============================  =====  ==============  ==============  ============== 
 

Committed borrowing facilities

The Group's total committed bank facilities amount to GBP362.2 million (31 March 2020 GBP380.0 million , 30 September 2020 GBP373.2 million ) . Of these facilities GBP205.0 million (31 March and 30 September 2020 GBP205.0 million ) are denominated in sterling and GBP157.2 million ( US$217.0 million ) (31 March 2020 GBP175.0 million ( US$217.0 million ), 30 September 2020 GBP168.2 million ( US$217.0 million )) are denominated in US dollars. Drawings are permitted in all major currencies.

The Group's bank loans bear interest charged at LIBOR plus a margin. The margin varies by bank and is based on the Group's ratio of net debt to EBITDA or the Group's credit rating. EBITDA for these purposes is defined as the aggregate of the Group's consolidated operating profit including share of results of joint ventures and associates before deducting depreciation, amortisation and impairment of goodwill, intangible and tangible assets, before exceptional items and before interest and finance charges, and is shown in Note 12 . For the purposes of calculating the Group's bank covenants, EBITDA is calculated on a pre-IFRS 16 basis, by deducting operating lease charges and adding sublease rental income and amounts to GBP 113.9 million for the 12 month period ending 31 March 2021.

Whilst the Group's internal target of a 12-month rolling net debt to EBITDA ratio is no greater than 2.0 times at any point, the limit imposed by its bank covenants is no greater than 3.5 times together with a minimum interest cover ratio of 3.0 times measured in March and September. These covenants were met at the relevant testing dates during the period. The bank covenant ratio uses the average exchange rate in the calculation of net debt. For bank covenant purposes, net debt is calculated on a pre-IFRS 16 basis by excluding IFRS 16 lease liabilities to allow comparability between testing periods. At 31 March 2021 the Group had net cash (excluding cash held in escrow (see Note 23 ); calculated at average exchange rates as adjusted for IFRS 16) amounting to GBP301.5 million (31 March 2020 GBP273.5 million , 30 September 2020 GBP286.7 million ) and therefore the net debt to EBITDA covenant was met at 31 March 2021 and each of the comparative period testing dates. Interest cover for the 12-month period ended 31 March 2021 was 10.5 times (31 March 2020 34.2 times, 30 September 2020 18.0 times).

The Group's committed bank facilities and undrawn committed facilities available to the Group in respect of which all conditions precedent had been met are analysed by maturity as follows:

 
                                       Unaudited   Unaudited    Unaudited   Unaudited      Audited      Audited 
                                           at 31       at 31        at 31       at 31        at 30        at 30 
                                           March       March        March       March    September    September 
                                            2021        2021         2020        2020         2020         2020 
                                       Committed     Undrawn    Committed     Undrawn    Committed      Undrawn 
                                            GBPm        GBPm         GBPm        GBPm         GBPm         GBPm 
=================================    ===========  ==========  ===========  ==========  ===========  =========== 
 Expiring in more than one year 
  but not more than two years              362.2       362.2            -           -            -            - 
===================================  ===========  ==========  ===========  ==========  ===========  =========== 
 Expiring in more than two years 
  but not more than three years                -           -        380.0       380.0        373.2        373.2 
===================================  ===========  ==========  ===========  ==========  ===========  =========== 
 Total bank facilities                     362.2       362.2        380.0       380.0        373.2        373.2 
===================================  ===========  ==========  ===========  ==========  ===========  =========== 
 

Lease liabilities

The Group leases various office space, equipment and vehicles which are negotiated on an individual basis with differing terms and conditions. The Group's key lease arrangements relate to office space in the key cities in which it operates.

Of the Group's leased properties, the most significant leases relate to the DMGT head office premises at Northcliffe House, 2 Derry Street, London, W8 5TT which expires in December 2022, and the RMS head office premises at 7575 Gateway Blvd, Newark, California which expires in December 2030.

An analysis of the Group's lease liabilities is as follows:

 
                            Unaudited       Unaudited         Audited 
                                at 31           at 31           at 30 
                                March           March       September 
                         2021 Undrawn    2020 Undrawn    2020 Undrawn 
                                 GBPm            GBPm            GBPm 
====================   ==============  ==============  ============== 
 Northcliffe House               14.7            24.5            19.8 
---------------------  --------------  --------------  -------------- 
 7575 Gateway Blvd               28.8             2.2            31.7 
---------------------  --------------  --------------  -------------- 
 Other office space              48.9            45.3            46.6 
---------------------  --------------  --------------  -------------- 
 Motor vehicles                   1.3             1.6             1.6 
---------------------  --------------  --------------  -------------- 
 Other equipment                  0.1             0.1             0.1 
---------------------  --------------  --------------  -------------- 
                                 93.8            73.7            99.8 
 ====================  ==============  ==============  ============== 
 

There are no leases with residual value guarantees or leases not yet commenced to which the Group is committed.

23 Other financial assets

 
                                                     Unaudited   Unaudited      Audited 
                                                         at 31       at 31        at 30 
                                                         March       March    September 
                                                          2021        2020         2020 
                                              Note        GBPm        GBPm         GBPm 
========================================  ========  ==========  ==========  =========== 
 Current assets 
========================================  ========  ==========  ==========  =========== 
 Collateral                                13, (i)         7.8        21.9         21.7 
========================================  ========  ==========  ==========  =========== 
 Non-current assets 
========================================  ========  ==========  ==========  =========== 
 Escrow                                       (ii)       120.7           -            - 
----------------------------------------  --------  ----------  ----------  ----------- 
 Loans to joint ventures and associates      (iii)        15.5        13.1         14.2 
----------------------------------------  --------  ----------  ----------  ----------- 
                                                         136.2        13.1         14.2 
========================================  ========  ==========  ==========  =========== 
 

(i) The Group deposits collateral with its bank counterparties with whom it has entered into a credit support annex to an ISDA (International Swaps and Derivatives Association) Master Agreement. This represents cash that cannot be readily used in operations.

(ii) Following the disposal of Euromoney in 2019 the Company has made available GBP120.7 million from the Group's cash resources to the Group's Pension Schemes. These funds are held in escrow deposit accounts with original maturities of greater than three months and any movement of funds out of these escrow accounts require the approval of the Pension Scheme Trustees.

As part of the funding agreement from the 31 March 2019 triennial valuation, the Company has agreed to make annual payments of GBP7.0 million into these escrow deposit accounts to October 2024.

None of the escrow balances will be released before 2024. Up to GBP50.0 million may be released to the Schemes in 2024 depending on Pension Scheme funding levels and in 2026 any remaining funds in escrow will either be released to the Company or to the Schemes depending on Pension Scheme funding levels at that time.

(iii) Loans to joint ventures and associates are stated net of expected credit loss provision as follows:

 
                                                 Unaudited   Unaudited      Audited 
                                                     at 31       at 31        at 30 
                                                     March       March    September 
                                                      2021        2020         2020 
                                                      GBPm        GBPm         GBPm 
=============================================   ==========  ==========  =========== 
 Total gross loans to joint ventures and 
  associates                                          27.5        25.1         26.2 
----------------------------------------------  ----------  ----------  ----------- 
 Loss allowance provision                           (12.0)      (12.0)       (12.0) 
----------------------------------------------  ----------  ----------  ----------- 
 Loan receivable net of expected credit loss 
  provision                                           15.5        13.1         14.2 
==============================================  ==========  ==========  =========== 
 

Movement in the impairment allowance is as follows:

 
                                Unaudited   Unaudited      Audited 
                                    at 31       at 31        at 30 
                                    March       March    September 
                                     2021        2020         2020 
                                     GBPm        GBPm         GBPm 
============================   ==========  ==========  =========== 
 At start and end of period          12.0        12.0         12.0 
=============================  ==========  ==========  =========== 
 

24 Financial instruments and risk management

The Group's financial assets and liabilities are as follows:

 
                                                             Unaudited   Unaudited      Audited 
                                                                 at 31       at 31        at 30 
                                                                 March       March    September 
                                                                  2021        2020         2020 
                                                              Carrying    Carrying     Carrying 
                                                                 value       value        value 
                                                      Note        GBPm        GBPm         GBPm 
==============================================  ==========  ==========  ==========  =========== 
 Financial assets 
==============================================  ==========  ==========  ==========  =========== 
 Fair value through profit and loss 
----------------------------------------------  ----------  ----------  ----------  ----------- 
     Derivative instruments in designated 
      hedge accounting relationships                   (i)         2.0         3.6          3.7 
----------------------------------------------  ----------  ----------  ----------  ----------- 
     Derivative instruments not in designated 
      hedge accounting relationships                               0.5         0.2          0.1 
----------------------------------------------  ----------  ----------  ----------  ----------- 
     Provision for contingent consideration 
      receivable                                                   2.3         0.3          0.1 
----------------------------------------------  ----------  ----------  ----------  ----------- 
 Fair value through other comprehensive 
  income 
----------------------------------------------  ----------  ----------  ----------  ----------- 
     Financial assets                                   21       844.0       171.4        410.7 
----------------------------------------------  ----------  ----------  ----------  ----------- 
 Amortised cost 
----------------------------------------------  ----------  ----------  ----------  ----------- 
     Trade receivables, contract assets 
      and other receivables                                      199.9       209.9        188.0 
----------------------------------------------  ----------  ----------  ----------  ----------- 
     Sublease receivable                                           5.0         9.1          6.8 
----------------------------------------------  ----------  ----------  ----------  ----------- 
     Collateral                                         23         7.8        21.9         21.7 
----------------------------------------------  ----------  ----------  ----------  ----------- 
     Escrow                                             23       120.7           -            - 
----------------------------------------------  ----------  ----------  ----------  ----------- 
     Loans to joint ventures and associates       23, (ii)        15.5        13.1         14.2 
----------------------------------------------  ----------  ----------  ----------  ----------- 
     Cash and cash equivalents                          13       513.9       489.2        500.3 
----------------------------------------------  ----------  ----------  ----------  ----------- 
                                                               1,711.6       918.7      1,145.6 
==============================================  ==========  ==========  ==========  =========== 
 
 Financial liabilities 
==============================================  ==========  ==========  ==========  =========== 
 Fair value through profit and loss 
----------------------------------------------  ----------  ----------  ----------  ----------- 
     Derivative instruments in designated 
      hedge accounting relationships                   (i)      (13.3)      (30.1)       (23.1) 
----------------------------------------------  ----------  ----------  ----------  ----------- 
     Provision for contingent consideration 
      payable                                                    (1.5)       (2.0)        (2.5) 
----------------------------------------------  ----------  ----------  ----------  ----------- 
 Amortised cost 
----------------------------------------------  ----------  ----------  ----------  ----------- 
     Trade payables                                             (31.8)      (38.8)       (30.5) 
----------------------------------------------  ----------  ----------  ----------  ----------- 
     Bank overdrafts                                    22      (17.9)      (10.8)       (20.4) 
----------------------------------------------  ----------  ----------  ----------  ----------- 
     Bonds                                       22, (iii)     (201.8)     (203.4)      (203.5) 
----------------------------------------------  ----------  ----------  ----------  ----------- 
     Lease liabilities                                  22      (93.8)      (73.7)       (99.8) 
----------------------------------------------  ----------  ----------  ----------  ----------- 
                                                               (360.1)     (358.8)      (379.8) 
==============================================  ==========  ==========  ==========  =========== 
 Total for financial instruments                               1,351.5       559.9        765.8 
==============================================  ==========  ==========  ==========  =========== 
 

The Directors consider that the carrying amounts of financial assets and financial liabilities recorded at amortised cost (other than the bonds) approximate to their fair values.

   (i)             The Group has derivatives designated in the following hedging relationships: 
   -   hedges of the change in fair value of recognised assets and liabilities (fair value hedges) 
   -   hedges of net investment in foreign operations (net investment hedges) 

To the extent that net investment hedges are effective, changes in fair value of the derivative are taken to the translation reserve through other comprehensive income.

(ii) Loans to joint ventures and associates (included within other financial assets, Note 23 ) include a 10.0% fixed rate unsecured loan note, repayable on 31 December 2025 with a carrying value of GBP15.5 million (31 March 2020 GBP13.0 million, 30 September 2020 GBP14.2 million).

   (iii)          The Group's bonds are measured at amortised cost as adjusted for fair value hedging. 

The carrying value and fair values of the Group's bonds and the coupons payable are as follows:

 
                            Unaudited   Unaudited   Unaudited   Unaudited      Audited      Audited 
                                at 31       at 31       at 31       at 31        at 30        at 30 
                                March       March       March       March    September    September 
                                 2021        2021        2020        2020         2020         2020 
                                 Fair    Carrying        Fair    Carrying         Fair     Carrying 
                                value       value       value       value        value        value 
 Maturity          Annual 
                   coupon 
                        %        GBPm        GBPm        GBPm        GBPm         GBPm         GBPm 
==============   ========  ==========  ==========  ==========  ==========  ===========  =========== 
 9 April 2021       10.00         0.8         0.8         0.8         0.8          0.8          0.8 
===============  ========  ==========  ==========  ==========  ==========  ===========  =========== 
 21 June 2027       6.375       230.6       201.0       221.8       202.6        231.8        202.7 
===============  ========  ==========  ==========  ==========  ==========  ===========  =========== 
                                231.4       201.8       222.6       203.4        232.6        203.5 
 ==============  ========  ==========  ==========  ==========  ==========  ===========  =========== 
 

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into levels 1 to 3 based on the degree to which the fair value is observable:

-- Level 1 fair value measurements are those derived from unadjusted quoted prices in active markets for identical assets or liabilities;

-- Level 2 fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

-- Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

 
                                                      Level   Level  Level 
                                                          1       2      3   Total 
Unaudited at 31 March 2021                      Note   GBPm    GBPm   GBPm    GBPm 
=============================================  =====  =====  ======  =====  ====== 
Financial assets 
=============================================  =====  =====  ======  =====  ====== 
Fair value through other comprehensive           21, 
 income                                          (i)      -    27.0  817.0   844.0 
=============================================  =====  =====  ======  =====  ====== 
Fair value through profit and loss 
=============================================  =====  =====  ======  =====  ====== 
    Derivative instruments not in designated 
     hedge accounting relationships             (ii)      -     0.5      -     0.5 
=============================================  =====  =====  ======  =====  ====== 
    Provision for contingent consideration 
     receivable                                (iii)      -       -    2.3     2.3 
=============================================  =====  =====  ======  =====  ====== 
    Derivative instruments in designated 
     hedge accounting relationships             (ii)      -     2.0      -     2.0 
=============================================  =====  =====  ======  =====  ====== 
                                                          -    29.5  819.3   848.8 
=============================================  =====  =====  ======  =====  ====== 
Financial liabilities 
=============================================  =====  =====  ======  =====  ====== 
Fair value through profit and loss 
=============================================  =====  =====  ======  =====  ====== 
    Provision for contingent consideration 
     payable                                   (iii)      -       -  (1.5)   (1.5) 
=============================================  =====  =====  ======  =====  ====== 
    Derivative instruments in designated 
     hedge accounting relationships             (ii)      -  (13.3)      -  (13.3) 
=============================================  =====  =====  ======  =====  ====== 
                                                          -  (13.3)  (1.5)  (14.8) 
=============================================  =====  =====  ======  =====  ====== 
 
 
                                                      Level   Level  Level 
                                                          1       2      3   Total 
Unaudited at 31 March 2020                      Note   GBPm    GBPm   GBPm    GBPm 
=============================================  ===== 
Financial assets 
=============================================  ===== 
Fair value through other comprehensive           21, 
 income                                          (i)      -   170.1    1.3   171.4 
=============================================  ===== 
Fair value through profit and loss 
=============================================  ===== 
    Derivative instruments not in designated 
     hedge accounting relationships             (ii)      -     0.2      -     0.2 
=============================================  ===== 
    Provision for contingent consideration 
     receivable                                (iii)      -       -    0.3     0.3 
=============================================  ===== 
    Derivative instruments in designated 
     hedge accounting relationships             (ii)      -     3.6      -     3.6 
=============================================  ===== 
                                                          -   173.9    1.6   175.5 
                                               ===== 
Financial liabilities 
=============================================  ===== 
Fair value through profit and loss 
=============================================  ===== 
    Provision for contingent consideration 
     payable                                   (iii)      -       -  (2.0)   (2.0) 
=============================================  ===== 
    Derivative instruments in designated 
     hedge accounting relationships             (ii)      -  (30.1)      -  (30.1) 
=============================================  ===== 
                                                          -  (30.1)  (2.0)  (32.1) 
                                               ===== 
 
 
                                                      Level   Level  Level 
                                                          1       2      3   Total 
Audited at 30 September 2020                    Note   GBPm    GBPm   GBPm    GBPm 
Financial assets 
Fair value through other comprehensive           21, 
 income                                          (i)      -   409.5    1.2   410.7 
Fair value through profit and loss 
    Derivative instruments not in designated 
     hedge accounting relationships             (ii)      -     0.1      -     0.1 
    Provision for contingent consideration 
     receivable                                (iii)      -       -    0.1     0.1 
    Derivative instruments in designated 
     hedge accounting relationships             (ii)      -     3.7      -     3.7 
                                                          -   413.3    1.3   414.6 
Financial liabilities 
Fair value through profit and loss 
    Provision for contingent consideration 
     payable                                   (iii)      -       -  (2.5)   (2.5) 
    Derivative instruments in designated 
     hedge accounting relationships             (ii)      -  (23.1)      -  (23.1) 
                                                          -  (23.1)  (2.5)  (25.6) 
 

(i) Unlisted equity investments are valued using a variety of techniques including comparable company valuation multiples and discounted cashflows. In extremely limited circumstances, where insufficient recent information is available to measure fair value or when there is a wide range of possible fair value measurements, cost is used since this represents the best estimate of fair value in the range of possible valuations.

(ii) The fair value of derivative instruments is determined using market rates of interest and exchange, and established estimation techniques such as discounted cash flow and option valuation models.

(iii) Contingent consideration is valued based on the future profitability of the businesses to which the contingent consideration relates, discounted at market rates of interest.

A reconciliation of the movement in level 3 financial assets is as follows:

 
                                                          Note     GBPm 
 Audited at 30 September 2019                                       8.4 
==============================================================  ======= 
 Additions to financial assets at fair value through 
  other comprehensive income                                        0.1 
==============================================================  ======= 
 Transfer to Level 2                                              (6.9) 
==============================================================  ======= 
 Unaudited at 31 March 2020                                         1.6 
==============================================================  ======= 
 Audited at 30 September 2019                                       8.4 
==============================================================  ======= 
 Transfer to Level 2                                              (6.9) 
==============================================================  ======= 
 Exchange adjustment                                              (0.2) 
==============================================================  ======= 
 Audited at 30 September 2020                                       1.3 
==============================================================  ======= 
 Additions to financial assets at fair value through 
  other comprehensive income                                       34.3 
==============================================================  ======= 
 Transfer from Level 2                                     (i)    383.8 
=======================================================  =====  ======= 
 Fair value movement of financial assets at fair value 
  through other comprehensive income                              397.7 
==============================================================  ======= 
 Additions to contingent consideration                              2.2 
==============================================================  ======= 
 Unaudited at 31 March 2021                                       819.3 
==============================================================  ======= 
 

(i) Equity investments classified within level 2 in prior periods have been transferred to level 3, as the observable market data used in the valuation was not available during the current reporting period.

A reconciliation of the movement in level 3 financial liabilities is as follows:

 
                                                           Note     GBPm 
 Audited at 30 September 2019                                      (2.1) 
=========================================================  ====  ======= 
 Cash paid to settle contingent consideration in respect 
  of acquisitions                                            14      0.4 
=========================================================  ====  ======= 
 Additions to contingent consideration                             (0.4) 
=========================================================  ====  ======= 
 Exchange adjustment                                                 0.1 
=========================================================  ====  ======= 
 Unaudited at 31 March 2020                                        (2.0) 
=========================================================  ====  ======= 
 Audited at 30 September 2019                                      (2.1) 
=========================================================  ====  ======= 
 Cash paid to settle contingent consideration in respect 
  of acquisitions                                            14      0.4 
=========================================================  ====  ======= 
 Additions to contingent consideration                             (1.1) 
=========================================================  ====  ======= 
 Adjustment to goodwill                                      18      0.2 
=========================================================  ====  ======= 
 Exchange adjustment                                                 0.1 
=========================================================  ====  ======= 
 Audited at 30 September 2020                                      (2.5) 
=========================================================  ====  ======= 
 Cash paid to settle contingent consideration in respect 
  of acquisitions                                            14      0.9 
=========================================================  ====  ======= 
 Adjustment to goodwill                                      18      0.1 
=========================================================  ====  ======= 
 Unaudited at 31 March 2021                                        (1.5) 
=========================================================  ====  ======= 
 

The key inputs into the significant level 3 financial liabilities are the future profitability of the businesses to which the contingent consideration relates and the discount rate. The estimated range of possible outcomes for the fair value of these liabilities is GBP 0.3 million to GBP 2.8 million (31 March 2020 GBPnil to GBP3.2

million , 30 September 2020   GBP0.4 million to GBP6.2 million ). 

A one percentage point increase or decrease in the growth rate used in estimating the expected profits, results in the contingent consideration liability at 31 March 2021 increasing or decreasing by GBPnil and GBPnil

respectively (31 March 2020   GBPnil and GBPnil , 30 September 2020   GBPnil and GBPnil ), with the corresponding change to the value at 31 March 2021 charged or credited to the Condensed Consolidated Income Statement in future periods. 

The rates used to discount contingent consideration range from 0.0% to 1.1% (31 March 2020 0.0% to 1.0% , 30 September 2020 0.0% to 1.2% ). A one percentage point increase or decrease in the discount rate used to discount the expected gross value of payments, results in the liability at 31 March 2021 decreasing or increasing by GBPnil and GBPnil respectively (31 March 2020 GBPnil and GBPnil , 30 September 2020 GBPnil and GBPnil ), with the corresponding change to the value at 31 March 2021 charged or credited to the Condensed Consolidated Income Statement in future periods.

25 Share capital and reserves

Share capital at 31 March 2021 amounted to GBP 29.3 million (31 March 2020 GBP29.3 million, 30 September 2020 GBP29.3 million).

During the period the Company utilised 1.9 million ( 31 March 2020 1.3 million , 30 September 2020 1.3 million ) A Ordinary Non-Voting Shares out of Treasury and the Employee Benefit Trust with a carrying value of GBP 13.8 million ( 31 March 2020 GBP 9.3 million, 30 September 2020 GBP 9.5 million) in order to satisfy incentive schemes. This represented 0.9% ( 31 March 2020 0.6% , 30 September 2020 0.9% ) of the called-up A Ordinary Non-Voting Share capital at 31 March 2021 .

The Company also purchased 0.1 million ( 31 March 2020 0.2 million , 30 September 2020 0.2 million ) A Ordinary Non-Voting Shares having a nominal value of GBP nil ( 31 March 2020 GBP nil , 30 September 2020 GBP nil ) to match obligations under incentive plans. The consideration paid for these shares was GBP 1.0 million ( 31

March 2020   GBP 1.8 million , 30 September 2020 GBP 19.7 million ) . 

At 31 March 2021 options were outstanding under the terms of the Company's Executive Share Option Schemes, Long-Term Incentive Plans and nil-cost options, over a total of 8,564,618 A Ordinary Non-Voting Shares (31

March 2020   2,446,914   shares, 30 September 2020   4,001,779 shares). 

26 Retirement benefit obligations

The Group operates a number of pension schemes under which contributions are paid by the employer and employees.

The schemes include a number of defined contribution pension arrangements, in addition to funded defined benefit pension arrangements which are closed to future accrual. The defined benefit schemes in the UK, together with some defined contribution plans, are administered by Trustees or Trustee Companies.

The total net pension charge of the Group for the period ended 31 March 2021 was GBP 5.0 million (31 March 2020 GBP 3.8 million, 30 September 2020 GBP 7.6 million).

The defined benefit obligation is calculated on a year-to-date basis, using the latest actuarial valuation as at 31 March 2021 . The assumptions used in the valuation are summarised below:

 
                      Unaudited   Unaudited      Audited 
                          at 31       at 31        at 30 
                          March       March    September 
                           2021        2020         2020 
                              %           %            % 
===================  ==========  ==========  =========== 
 Price inflation           3.35        2.60         2.95 
===================  ==========  ==========  =========== 
 Pension increases         3.20        2.60         2.85 
===================  ==========  ==========  =========== 
 Discount rate             1.95        2.20         1.55 
===================  ==========  ==========  =========== 
 

The net surplus as at the end of the period amounted to GBP166.5 million ( 31 March 2020 GBP352.1 million , 30 September 2020 GBP 123.2 million).

27 Contingent liabilities

The Group has issued standby letters of credit amounting to GBP2.0 million (31 March 2020 GBP2.3 million , 30

September 2020   GBP2.3 million ). 

The Group is exposed to libel claims in the ordinary course of business and vigorously defends against claims received. The Group makes provision for the estimated costs to defend such claims and provides for any settlement costs when such an outcome is judged probable.

The Group's Energy Information business (Genscape) provided a third-party auditor service verifying Renewable Identification Numbers (RINs) for renewable fuel production activities in the US, as part of the Renewable Fuel Standard Quality Assurance Program (Program), a regulatory program administered by the US Environmental Protection Agency (EPA).

Following discovery and self-reporting to the EPA by Genscape of potential fraudulent RINs generated by two companies unconnected with DMGT but verified by Genscape between 2013 and 2014 under the Program, the EPA issued a notice of intent to revoke the ability of Genscape to verify RINs as a third-party auditor on 4 January 2017. Following the EPA investigation of the two companies in April 2016, the two companies pleaded guilty of fraud in connection with the broader scheme to generate RINs.

EPA regulations for the audit Program set a liability cap on replacement of invalid RINs of 2.0% of the RINs. In April 2017 Genscape voluntarily paid the 2.0% liability cap associated with the invalid RINs at a cost of US$1.3 million, based on the then-prevailing market rates, subject to a reservation of rights. The EPA regulations allow for situations where the cap does not apply - including fraud, auditor error and negligence.

The EPA had not formally alleged any fraud or intentional wrongdoing by Genscape, but in its May 2019 final determination letter, EPA did find grounds for auditor error and negligence by Genscape and ordered Genscape to replace 69.2 million additional RINs it had verified.

In July 2019, Genscape filed a petition for review with the Sixth Circuit Court of Appeals and a motion to stay the EPA's order to replace the 69.2 million RINs which was accepted for the duration of Genscape's petition for review.

Notwithstanding the sale of Genscape to Verisk, DMGT is responsible for any costs, claims or awards and all settlement negotiations with the EPA.

Since RINs trade in a volatile range, averaging approximately 68 cents over the previous 18-month period, replacing the maximum 69.2 million RINs claimed by the EPA would equate to a potential maximum claim of approximately US$47.0 million. Using the period end price of US$1.23 replacing the maximum 69.2 million RINs claimed by the EPA would equate to a potential maximum claim of US$85.0 million.

DMGT continues to cooperate with the EPA and settlement discussions are ongoing but considering the uncertainties involved, the length of time involved and taking note of the order from the EPA, the Group, without admitting any wrongdoing, made a provision for the total cost of replacing RINs as at 30 September 2019.

At each period end IAS 37 requires DMGT to review this provision and make appropriate adjustments to reflect the current status of the claim. The Group's closing provision includes the cost of replacement RINs, estimated purchase costs, associated legal fees and currency fluctuations. The final settlement amount may be different than the provision made, however, it is not possible for the Group to predict with any certainty the potential impact of this litigation or to quantify the ultimate cost of a verdict or resolution. Accordingly, the provision could change substantially over time as the dispute progresses and new facts emerge.

28 Ultimate holding company

The Company's immediate parent company is Rothermere Continuation Limited (RCL), a company incorporated in Jersey, in the Channel Islands, and previously named Rothermere Investments Limited.

On 5 December 2019, pursuant to a consolidation of the Group's holding structure, RCL acquired a Bermudan company known as Rothermere Continuation (Old Co) Limited (previously named Rothermere Continuation Limited), (RCOCL), and certain assets held by RCOCL, including 100% of the issued Ordinary Shares of the Company. RCL now holds 100% of the issued Ordinary Shares of the Company.

Daily Mail and General Trust plc is the only company in the Group to prepare consolidated financial statements.

29 Related party transactions

Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note. The transactions between the Group and its joint ventures and associates are disclosed below.

For the purposes of IAS 24, Related Party Disclosures, executives below the level of the Company's Board are not regarded as related parties.

Ultimate controlling party

Rothermere Continuation Limited (RCL) is a holding company incorporated in Jersey, in the Channel Islands. The main asset of RCL is its controlling shareholding in DMGT, being its 100% holding of DMGT's issued Ordinary Shares and the largest single holding of DMGT A Ordinary Shares. RCL is controlled by a discretionary trust (the Trust) which is held for the benefit of Viscount Rothermere and his immediate family. The Trust represents the ultimate controlling party of the Company. Both RCL and the Trust are administered in Jersey. RCL and its directors, and the Trust are related parties of the Company.

On 5 December 2019, pursuant to a consolidation of the Group's holding structure, RCL acquired a Bermudan company known as Rothermere Continuation (Old Co) Limited (previously named Rothermere Continuation Limited), (RCOCL), and certain assets held by RCOCL, including 100% of the issued Ordinary Shares of the Company. RCL now holds 100% of the issued Ordinary Shares of the Company, however the underlying control of DMGT remains unchanged and continues to lie with the Trust.

Transactions with Directors

During the period, Forsters LLP in which Mr A Lane, a Non-Executive Director of the Company, is a partner, provided legal services to the Company amounting to GBP 7,291 (31 March 2020 GBP 25,563 , 30 September 2020 GBP 26,687 ).

Transactions with joint ventures and associates

Associated Newspapers Ltd (ANL) has a 50.0 % (31 March 2020 50.0%, 30 September 2020 50.0%) shareholding in Northprint Manchester Ltd , a joint venture. The net amount due to ANL of GBP5.8 million (31 March 2020 GBP5.8

million , 30 September 2020   GBP5.8 million ) has been fully provided. 

DMGV Ltd (DMGV) has a 23.9 % (31 March 2020 23.9%, 30 September 2020 23.9%) shareholding in Excalibur Holdco Ltd (Excalibur), an associate. During the period, services provided to Excalibur amounted to GBP0.2 million (31 March 2020 GBP0.2 million , 30 September 2020 GBP0.5 million ). At 31 March 2021 , amounts due from Excalibur amounted to GBPnil (31 March 2020 GBPnil , 30 September 2020 GBP0.1 million ), together with loan notes of GBP17.3 million (31 March 2020 GBP17.3 million , 30 September 2020 GBP17.3 million ). The loan notes carry an annual coupon of 10.0 % and GBP10.2 million (31 March 2020 GBP7.7 million , 30 September 2020 GBP8.9 million ) was outstanding in relation to this coupon at 31 March 2021 . An expected lifetime impairment allowance of GBP12.0 million (31 March 2020 GBP12.0 million , 30 September 2020 GBP12.0 million ) has been made against the loan note and unpaid coupon balance.

DMGV has a 45.3 % (31 March 2020 45.3%, 30 September 2020 45.3%) shareholding in Yopa Property Ltd (Yopa), an associate. During the period, the Consumer Media segment provided services to Yopa amounting to GBPnil (31 March 2020 GBP0.4 million , 30 September 2020 GBP0.5 million ). Also during the period, the Property Information segment paid referral fees to Yopa of GBP1.2 million (31 March 2020 GBP0.4 million , 30 September 2020 GBP0.5 million ) and made sales of GBPnil (31 March 2020 GBPnil , 30 September 2020 GBP0.1 million ) to Yopa.

DMGV has a 22.4 % (31 March 2020 6.0%, 30 September 2020 22.4%) shareholding in Quick Move Ltd, an associate. DMGV provided cash funding amounting to GBPnil cash and GBPnil of media credits (31 March 2020 GBP0.3 million cash and GBP0.3 million of media credits, 30 September 2020 GBP2.0 million cash and GBP1.0 million of media credits) during the period.

DMGV has a 20.1 % shareholding in Factory 14 S.a.r.l, an associate acquired during the period. DMGV provided cash funding amounting to GBP4.3 million during the period.

DMGV has a 20.0 % shareholding in Bloobloom Ltd, an associate acquired during the period. DMGV provided cash funding amounting to GBP0.8 million and GBP0.2 million of media credits during the period.

DMG Events (USA), Inc. has a 19.5% shareholding (31 March 2020 19.5%, 30 September 2020 19.5%) in Whereoware, LLC, an associate. During the period, DMG Events (USA), Inc. received dividends of GBP0.1 million (31 March 2020

  GBP0.4 million , 30 September 2020   GBP0.4 million ) from Whereoware, LLC. 

DMGI Land & Property Europe Ltd (DMGILP), of which Landmark Information Group Ltd (Landmark) is a subsidiary undertaking, has a 50.0 % (31 March 2020 50.0%, 30 September 2020 50.0%) shareholding in PointX Ltd (PointX), a joint venture. During the period, Landmark charged management fees of GBP0.2 million (31 March 2020 GBP0.2 million , 30 September 2020 GBP0.3 million ) and recharged costs of GBP0.1 million (31 March 2020 GBP0.1 million , 30 September 2020 GBP0.1 million ) to PointX. At 31 March 2021 , GBPnil (31 March 2020 GBPnil , 30 September 2020 GBP0.1 million ) was owed to Landmark by PointX. DMGILP received dividends of GBP0.1 million

(31 March 2020   GBPnil , 30 September 2020   GBPnil ) from PointX. 

Decision Insight Information Group (UK) Ltd (DIIG UK) has a 50.0 % (31 March 2020 50.0%, 30 September 2020 50.0%) shareholding in Decision First Ltd (DF), a joint venture. During the period, DIIG UK recharged costs to DF amounting to GBP0.1 million (31 March 2020 GBP0.1 million , 30 September 2020 GBP0.2 million ) and charged management fees amounting to GBPnil (31 March 2020 GBP0.1 million , 30 September 2020 GBP0.1 million ). At 31 March 2021 , GBPnil (31 March 2020 GBP0.1 million , 30 September 2020 GBPnil ) was owed by DF.

RMSI Ltd (RMSI), invoiced sales amounting to GBP0.7 million (31 March 2020 GBP1.1 million , 30 September 2020 GBP1.9 million ) to Landmark, a company which shares a common director with RMSI. Costs were recharged by Landmark to RMSI amounting to GBP0.4 million (31 March 2020 GBP0.4 million , 30 September 2020 GBP0.8 million ). At 31 March 2021 , GBPnil (31 March 2020 GBP0.2 million , 30 September 2020 GBP0.1 million ) was owed to RMSI by Landmark.

On 15 December 2020, the Group disposed of its shareholding in TreppPort, LLC (TreppPort), a joint venture. During the period, Trepp, LLC received dividends of GBP0.3 million (31 March 2020 GBP0.1 million , 30

September 2020   GBP0.2 million ) from TreppPort. 

Other related party disclosures

Under an agreement to guarantee the income generated from certain property assets held by the Harmsworth Pension Scheme which were purchased from the Group during a prior period, the Group was charged for rent and service charges in relation to the current period amounting to GBP0.1 million (31 March 2020 GBP0.1 million , 30

September 2020   GBP0.2 million ). 

At 31 March 2021 , the Group owed GBP1.1 million (31 March 2020 GBP1.0 million , 30 September 2020 GBP1.0 million ) to the pension schemes which it operates. This amount comprised employees' and employer's contributions in respect of March 2021 payrolls.

The Group recharges its principal pension schemes with costs of investment management fees. The total amount recharged during the period was GBP0.1 million (31 March 2020 GBP0.1 million , 30 September 2020 GBP0.3 million ).

ANL, which shares common control by Rothermere Continuation Limited, with DMGT Healthcare Trustees, paid contributions to the scheme totalling GBP0.5 million (31 March 2020 GBP0.5 million , 30 September 2020 GBP0.9 million ). At 31 March 2021 , a total of GBP1.2 million (31 March 2020 GBP1.2 million , 30 September

2020   GBP1.2 million ) was owed to the scheme by ANL. 

30 Post balance sheet events

Disposals

On 28 April 2021 the Group disposed of Rochford Brady Legal Services Ltd and Lawlink (UK) Ltd in the Property Information segment for cash proceeds of EUR5.5 million.

Acquisitions

On 17 May 2021 the Group acquired a 1.23% equity stake in Zilch Technology Ltd (Zilch) for non-cash consideration of GBP5.0 million. Zilch operates a buy now pay later app.

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