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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Expomedia Grp | LSE:EXP | London | Ordinary Share | GB0031056673 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1.25 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number:3074E
Expomedia Group PLC
24 September 2007
24 SEPTEMBER 2007
EXPOMEDIA GROUP PLC
("Expomedia" or "the Group")
INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 2007
The Board of Expomedia, the AIM quoted media group with interests in
exhibitions, conferences, venue management and related publishing, is pleased to
announce Interim Results for the six months ended 30 June 2007, which reflect a
period of strong turnover growth, increased overall Group PBT and a significant
corporate realignment enabling the Group to focus on its higher yielding
markets.
FINANCIAL HIGHLIGHTS: (Presented under IFRS)
* Strong turnover growth of 33%, including share of joint ventures to
Euro17.4 million (2006: Euro13.0 million);
* Increase in adjusted EBITDA from continuing activities before exceptional
items, ("adjusted EBITDA") to Euro1.3 million (2006: adjusted EBITDA loss
Euro0.7million);
* Increase in operating profit on continuing activities for the period
Euro0.8million (2006: loss Euro0.2million);
* Increase in basic profit per share to 0.2 cent (2006: loss 22 cents);
* Cash balance at 30 June 2007 of Euro8.2 million.
OPERATIONAL HIGHLIGHTS:
* Significant corporate realignment focusing resources on higher yielding
markets;
* Strong forward bookings for 2007 up 45%;
* Conference revenues up over 70%;
* Acquisition of Homebuyer Events Limited (UK), Exposystems (Russia) and World
Food Market (UK);
* Continuing progress in core markets of Russia, India, Germany, Poland and
the UK; and further cloning of events across core markets.
Commenting on today's results, Chief Executive, Mark Shashoua, stated:
"Expomedia is still very focused on its strategy to acquire strong brands which
can be cloned into the markets of India, Russia, Germany, the UK and Poland, as
well as continuing to grow its existing operations in these core territories."
"2007 is a watershed year for the Group, as the Board has now refocused the
business on markets and products that will deliver the greatest return on
investment. In addition to the 33% increase in turnover the company has for the
first time reported an operating profit in the first half of the year. The Board
is confident of further success in the second half of the year.
--ENDS--
Enquiries:
Expomedia Group Plc Tel: 020 8386 0070
Mark Shashoua
Bishopsgate Communications Ltd. Tel: 020 7562 3350
Dominic Barretto
Sophie Davis
Charles Stanley Securities Tel: 020 7149 6000
Mark Taylor
Freddy Crossley
CHIEF EXECUTIVE'S STATEMENT
On behalf of the Board I am pleased to report on a successful first six months
for the Group; a period which has seen a significant increase in revenue and,
for the first time, the Group has reported a positive EBITDA on continuing
activities and operating profit. The Group's business units have grown their
revenues by a total of 33%, and like for like forward bookings for the year are
ahead by 45%, compared with the same time in the previous year.
The Group has also completed three acquisitions, Homebuyer Events Limited (UK),
Exposystems (Russia) and World Food Market (UK). This reaffirms the Board's
acquisition strategy which is focused on acquiring brands which Expomedia can
clone into the core territories in which it operates - namely India, Russia,
Germany, the UK and Poland - and also on those which complement and provide
synergies to the Group's existing businesses.
Whilst some of the Group's business units are still at the very early stages of
their development many have now started to become profitable, and the Board is
confident that there is a considerable amount of growth still to be achieved in
all of the countries in which Expomedia operates.
Of further significance is the fact that the Group has produced substantially
improved results, but has done so whilst still continuing to invest
substantially in building up its business infrastructure, in particular in India
and Russia, and in replicating its titles although the full benefit of these
investments will not be seen until future periods.
Expomedia is still very focused on its strategy to acquire strong brands to then
clone into India, Russia, Germany, the UK and Poland, as well as continuing to
grow its existing operations in these core territories.
Financials
This is the set of results announced under IFRS with comparatives against
restated 2006 interim and final results.
Group Turnover on continuing activities, including share of joint ventures, for
the period was up 33% to Euro17.4 million (2006: Euro13.0 million). Turnover growth is
continuing in the second half of 2007, with contracted revenue for 2007
currently 45% ahead of the same period in 2006.
EBITDA on continuing activities before exceptional items, interest, taxation,
depreciation, amortisation and share option costs ("adjusted EBITDA") was Euro1.3
million (2006: adjusted EBITDA loss Euro0.7million) and the operating profit on
continuing activities was Euro0.5 million (2006: loss Euro0.3million). The loss before
tax on continuing ordinary activities was Euro0.2 million (2006: loss Euro0.5
million).
The profit before tax on discontinued activities was Euro0.4 million (2006: loss
Euro10.2 million), and this includes the results to the date of disposal and profit
on the disposal of our interest in our Dutch joint venture in addition to the
results of our operations in Morocco which are held for sale.
The Group's total profit for the period was Euro0.1 million (2006: loss Euro10.7
million), and the basic earnings per share was 0.2 cents (2006: loss 22 cents).
The Group is also in a strong cash position with a cash balance at 30 June 2007
of Euro8.2 million
Review of Operations
Poland
Conferences
Expomedia has now established itself as the main conference organiser in Poland,
through its subsidiary Infor-media Poland, both in terms of size and number of
events in the market.
Expomedia's Polish conference business has sustained the robust growth seen in
2006 with a 75% increase in revenues in the first half and a 66% increase in
delegates. The business became operationally profitable during 2006 and we
expect that it will continue this rate of growth for the foreseeable future with
a consequent increase in profitability of the overall business.
Venue
The Warsaw venue has reached effective full capacity at peak times of the year
and in addition to this the revenue for the first half of 2007 has increased by
22%. In 2005 the Group acquired the land adjoining the centre with the intention
to build additional exhibition space. The Group is close to finalising an
agreement with a development partner and an announcement will be made in the
near future.
Russia
The Group's Russian conference business continues to grow substantially with a
75% increase in revenues in the period and a 46% increase in delegates. This
business is now operationally profitable in the first half year and is
continuing its growth to achieve the level of synergies required to maximise
profits and to capitalise on its leading position in the Moscow conference
market.
In December 2006, the Group announced that it had acquired an 80% interest in
BBPG a conference and forum events business, which operates predominantly in
Moscow, primarily in the food and other retailing sectors. BBPG currently
organises 12 annual events and the Group expects that these will complement the
Group's existing portfolio of events.
In June 2007, Expomedia acquired a 90% interest in Exposystems, which organises
the leading branded IT and telecom conferences in Moscow.
The Board believes that the Group has now established the main conference
company in Russia with significant growth still to come. The Group will continue
to focus on both developing this business through organic growth as well as
seeking further targeted acquisitions in the conference field.
United Kingdom
In the UK, the Group continued its strategy of acquiring leading brands with the
capability of being cloned into our other core international markets.
In May, the Board announced that Expomedia had acquired Homebuyer Events
Limited, the Group's largest acquisition to date. Homebuyer Events organises a
series of leading property events including the largest residential investment
property exhibition in the UK, The Property Investor Show. Their brands will
complement Expomedia's existing portfolio of real estate events in Warsaw and
conferences in Russia, India and Poland.
In June 2007 the Board announced the acquisition of World Food Market, the
leading UK event for ethnic food and world food markets. The ethnic food market
is currently worth #1.8 billion in the UK alone and is forecast to rise to #2.4
billion by 2009, making it one of the fastest growing sectors in the UK food
industry.
The acquisitions were consistent with the Group's strategy of acquiring leading
brands and topical exhibitions and the Group intends to use its international
standing to increase customers to the events and to clone branded versions of
the events into its other markets.
India
The Board has continued its stated strategy for India of building up its
infrastructure in order to capitalise on what the Board believes is a
significant opportunity for Expomedia in the medium to long term. The market is
evolving and the demand for exhibitions and conferences is expected to grow in
line with what has been seen in recent years in other emerging markets such as
China, Russia and Brazil.
Expomedia aims to be a leading player in this market and the investments made to
date are designed to achieve this.
Exhibitions
Expomedia's Indian exhibition business continues to progress. During the first
half of 2007 two events were held with a further five events to be held in the
second half of the year.
The topics include some of the key growth industries for the Indian economy:
construction, home interiors, hospitality, packaging, metallurgy and mining. We
expect that further events will be added to the portfolio in due course, both
new ideas for the Indian market and events cloned from our existing events
elsewhere.
Conferences
The Indian conference division is operated from Mumbai. In the first six months
of 2007 the revenues increased by 20% and it is expected that the remainder of
2007 will see further growth as the substantial investment in new staff during
2006 and early 2007, begins to have an impact.
Venue
In April 2006, Expomedia took over full occupation of the new 28,000 square
metre venue (17,500 square metres of gross exhibition space) in Greater Noida,
New Delhi. The venue is now beginning to attract significant interest and,
whilst 2006 revenues were modest as the centre was only opened in April, in 2007
we are experiencing increased interest from both local and international event
organisers with bookings currently 300% ahead of the total revenue in 2006.
Germany
In 2006 the Group entered into a joint venture with Gruner + Jahr ("G+J") to
organise exhibitions in Germany. G+J is part of the Bertelsmann Group and is one
of the largest publishing companies in the world. The Joint Venture uses its
titles to launch events across Germany, which is the largest European exhibition
market and second in the world only to the USA.
The first event for the Joint Venture was the consumer event Eat and Style which
was held in our Cologne venue in 2006.This event has now been successfully
cloned into Hamburg and in 2008 will be cloned in two further cities in Germany.
The Board is currently working on the launch of other live events based on
topics in which G+J have a dominant market share through their consumer magazine
titles and which will follow a similar model of launching and cloning. We
consider that this is the optimal way to leverage the Joint Venture activities
off the successful mass market titles of G+J.
Separate to the joint venture, the Group is actively cloning its UK branded
events into the market through our Cologne operation, using the EXPO XXI Cologne
venue, operated by Expomedia, as the launch pad into the market.
The revenue from the EXPO XXI Cologne venue generated for 2007, is in line with
the Board's expectations and we anticipate a profitable level of revenue next
year.
Directorate Change
The Group announces today that Nicholas Berry, Non-Executive Director, has
stepped down from the Board, due to the pressure of other commitments.
Nicholas Berry will retain his shareholding and remain a long term shareholder
in Expomedia. The Board wishes to thank him for his commitment, advice and
involvement in the early stages of Expomedia and its current realignment, and
wishes him well for the future.
Outlook
2007 is a watershed year for the Group, as the Board has now refocused the
business on markets and products that will deliver the greatest return on
investment. As a result of this strategy, the Board intends to continue to
acquire strong brands that can be cloned throughout the Group. In this way the
Group can leverage both the brand and our infrastructure for maximum
profitability and to increase shareholder value.
It has been another highly active period for Expomedia and the outlook for the
Group is very positive. With the twin benefits of a targeted acquisition
strategy supporting strong organic growth, the Board is very confident of the
current and future prospects of the Group.
Chief Executive
Mark Shashoua
Consolidated income statement - unaudited
Notes Six months Six months Year ended
ended 30 ended 30 31 December
June 2007 June 2006 2006
Euro'000 Euro'000 Euro'000
Revenue including share of joint ventures 17,368 13,013 26,399
Less: share of joint ventures' revenue (441) (971)
Group Revenue 16,927 13,013 25,428
Cost of Sales (8,840) (7,783) (15,673)
Gross Profit 8,087 5,230 9,755
Net administrative expenses before amortisation and (6,499) (4,796) (10,199)
depreciation
Amortisation of intangible assets (286) (54) (413)
Depreciation of property, plant and equipment (738) (629) (1,521)
Group administrative expenses (7,523) (5,479) (12,133)
Operating profit / (loss) 564 (249) (2,378)
Finance income 447 60 254
Financing cost (779) (133) (803)
Net financing costs (332) (73) (549)
Share of loss of joint ventures (471) (176) (44)
Loss before tax (239) (498) (2,971)
Income tax expense (55) (24) (251)
Loss after tax but before loss on discontinued operations (294) (522) (3,222)
Profit (loss) from discontinued operations (net of tax) 4, 6 401 (10,164) (12,080)
Profit/ (loss) for the period 107 (10,686) (15,302)
Attributable to:
Equity holders of the parent 419 (10,007) (14,698)
Minority interests (312) (679) (604)
Profit/ (loss) for the period 107 (10,686) (15,302)
Earnings per share 2
Basic earnings/loss per share (Euro) 0.002 (0.22) (0.31)
Diluted earnings/ loss per share (Euro) 0.002 (0.19) (0.30)
Earnings per share from continuing operations
Basic and diluted loss per share (Euro) (0.01) (0.01) (0.06)
Statement of recognised income and expense - unaudited
Six Six months Year ended
months ended 30 31 December
ended 30 June 2006 2006
June 2007
Euro'000 Euro'000 Euro'000
Foreign exchange translation differences 218 (1,293) (145)
Tax recognised on income and expenses 234 78 21
recognised directly in equity
Net income recognised directly in equity 452 (1,215) (124)
Profit/ (Loss) for the year 107 (10,686) (15,302)
Total recognised income and expense 559 (11,901) (15,426)
Total recognised income and expense for the
period is attributable to :
Equity holders of the parent 871 (11,222) (14,822)
Minority interest (312) (679) (604)
559 (11,901) (15,426)
Consolidated balance sheet - unaudited
30 June 2007 30 June 2006 31 December
2006
Euro'000 Euro'000 Euro'000
Assets
Goodwill 22,150 1,025 8,322
Other intangible assets 11,919 6,244 3,900
Property, plant and equipment 28,651 27,590 28,652
Investments accounted for using the equity method 291 472
Lease prepayment 1,396 1,289 1,364
Deferred tax assets 444 - 73
Total non-current assets 64,851 36,148 42,783
Trade and other receivables 11,799 8,634 6,639
Cash and cash equivalents 8,210 4,648 14,164
Assets classified as held for sale 1,225 - -
Total current assets 21,234 13,282 20,803
Total assets 86,085 49,430 63,586
Current liabilities
Interest bearing loans and borrowings (2,716) (592) (1,836)
Trade and other payables (4,785) (3,746) (4,565)
Obligation under finance lease and hire -purchase contract (686) - (665)
Accruals and deferred income (11,507) (3,653) (5,832)
Investments accounted for using the equity method (1,592)
Liabilities classified as held for sale (1,147) - -
(20,841) (9,583) (12,898)
Total non - current liabilities
Interest bearing loans and borrowings (9,210) (6,393) (1,860)
Obligation under finance lease and hire -purchase contract (17,073) - (17,421)
Other creditors (8,422) (1,429) (3,368)
Deferred tax liabilities (3,292) (2,036) (1,436)
(37,997) (9,858) (24,085)
Total liabilities (58,838) (19,441) (36,983)
Net assets 27,247 29,989 26,603
Capital and reserves
Issued Capital 3,972 3,972 3,972
Share premium 34,973 34,344 34,530
Other reserves 12,315 11,538 12,424
Retained earnings (23,415) (19,604) (24,058)
Equity attributable to equity holders of parent 27,845 30,250 26,868
Minority interests (598) (261) (265)
Total equity 27,247 29,989 26,603
Consolidated statement of cash flows - unaudited
Six months Six months Year ended 31
ended 30 ended 30 June December 2006
June 2007 2006
Euro'000 Euro'000 Euro'000
Cash flows from operating activities
Profit/(loss) for the period 108 (10,688) (15,302)
Share of operating loss in joint ventures 471 832 1,411
Foreign exchange (gains)/losses (306) 224 242
Interest Income (141) (60) (85)
Interest Expense 779 217 457
Gain on loan discounted (1,401) (472)
Gain/ loss on sale of investment (401) 6,650 8,894
Impairment losses 1,801 -
Income tax expense 55 29 276
Depreciation 738 690 1,791
Amortisation 286 34 241
Share option charge 207 203 383
Increase in provisions 4 16
Operating profit before changes in working capital 1,796 (1,465) (2,148)
Decrease/ ( increase) in trade and other receivables 1,366 1,678 1,230
(Decrease)/ increase in trade and other payables (1,205) 11 1,676
Cash generated from operations 1,957 224 758
Interest paid (768) (217) (457)
Income tax (paid)/received (164) (120) (1,173)
Net cash used in operating activities 1,025 (113) (872)
Cash flows from investing activities
Interest received 101 60 85
Disposal of subsidiary net of cash disposed of - - (293)
Acquisition of subsidiary undertaking net of cash (12,784) (1,454) (1,389)
acquired
Acquisition of goodwill and intangible fixed assets (815) - (4,063)
Acquisition of tangible fixed assets (172) (665) (1,483)
Joint Venture funding - (812) (812)
Discontinued Joint Venture funding (713) (1,034) (1,575)
Net cash from investing activities (14,383) (3,905) (9,530)
Cash flows from financing activities
Shares purchased (109) - (35)
New long-term loan 8,584 1,175 3,110
Repayment of borrowings (739) (140) (3,983)
Proceeds of finance lease - - 18,086
Net cash inflow from financing activities 7,736 1,035 17,178
Net increase/(decrease) in cash and cash equivalents (5,622) (2,983) 6,776
Cash and cash equivalents at 1 January 14,164 7,687 7,687
Effect of exchange rate fluctuations on cash held (332) (56) (299)
Cash and cash equivalents at 30 June 8,210 4,648 14,164
1 Basis of preparation
Expomedia Group plc has prepared these Interim statements in accordance with
International Financial Reporting Standards as adopted by the EU ("Adopted IFRSs
") including International Accounting Standards ('IAS') and interpretations
published by the International Accounting Standards Board ('IASB') and its
committees.
The comparative figures for the six months ended 30 June 2006 and for the
financial year ended 31 December 2006 have been restated from accounting
principles generally accepted in the United Kingdom as used in the production of
the Expomedia Group Plc Annual Report 2006 ("UK GAAP") to adopted IFRS. A
reconciliation between UK GAAP and IFRS on the profit and equity for the six
months to 30 June 2006 and the financial year ended 31 December 2006, together
with details of accounting policies was published on 24 September 2007.
2 Earnings per share
Basic earnings per share has been based on the loss for the financial period
divided by the weighted average number of actual shares in issue of 48,572,795
(June 2006: 48,580,177; December 2006: 48,880,369). Diluted earnings per share
has been based on the loss for the financial period divided by the weighted
average number of actual shares in issue of 51,254,044 (June 2006: 56,658,542 ;
December 2006: 50,976,609).
3 Reconciliation of Loss on activities before taxation to adjusted EBITDA
Six months ended Six months ended
30 June 30 June Continuing
Continuing 2007 2006
Euro'000 Euro'000
Profit / Loss on activities before taxation (238) (499)
Interest payable and similar 779 133
Interest received and similar income (140) (60)
Depreciation & amortisation 1,024 683
FRS 20 - Share option costs 208 203
Exceptional gain - (1,401)
Exchange (gain) / loss (306) 224
Adjusted EBITDA 1,327 (717)
4 Exceptional gain
During the year ended 31 December 2006 the Group has received a long-term loan
payable with favourable terms, which was recognized at fair value, calculated by
discounting expected cash outflows at an applicable market interest rate. The
value of the discount has been recognised as a gain in the profit and loss for
the period as it represents compensation received from the party providing the
loan.
Subsequent to the initial recognition, the loan is stated at amortised cost with
any difference between cost and redemption value being recognised in the income
statement over the period of the borrowings using effective interest method ('
unwinding of the discount') . The loan becomes repayable after ten years
following delivery of a notice by the providing party, and no notice has been
received in the current period, therefore no unwinding of the discount has been
recorded.
The loan has been used to acquire the parent company's own shares from the party
providing the loan, for the Group's Employee Share Options Trust, and has been
presented as a non-cash transaction in the consolidated cash flow statement.
5 Acquisitions
On 24 May 2007 the Group acquired all of the shares of Homebuyer Events Ltd.
Homebuyer Events organises a series of leading property events including the
largest residential investment property exhibition in the UK, The Property
Investor Show.
The acquisition had the following effect on the Group's assets and liabilities;
The valuation of the value of the identifiable intangibles assets has been
calculated on a provisional basis, and may be amended in the Financial
Statements to 31 December 2007.
Carrying and fair
value of
Homebuyer Events
Acquiree's net assets at the date of acquisition: Euro'000
Property, Plant and equipment 22
Trade and other debtors 5,350
Cash and cash equivalents 996
Trade and other payables (3,467)
Other intangible assets 7,138
Deferred Tax liability (1,999)
Net identifiable assets and liabilities 8,040
Goodwill on acquisition 12,195
20,235
Consideration:
Satisfied in cash 13,202
Outstanding 1,467
Deferred consideration 5,054
Expenses 512
20,235
Consideration paid in cash 13,608
Cash acquired (996)
Net cash outflow 12,612
6 Discontinued operations
Discontinued operations in the current period relate to a terminated joint
venture in Holland and to the group's subsidiary IEC Sarl in Morocco which is
held for sale. The loss on discontinued operations are made up of an operating
loss of Euro0.7million and a gain on disposal of Euro1.2million.
Discontinued operations in the period to 30 June 2006 and the year ended 31
December 2006 relate to the disposal of the group's investments in Expocentres
Eastern Europe Limited and Expo Sports Centre Limited in addition to the results
of the joint venture in Holland in that period.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ILFFRALILFID
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