We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Mkm Group | LSE:MKM | London | Ordinary Share | GB00B013MJ08 | ORD 0.5P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.75 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
RNS Number : 9199K MKM Group PLC 30 December 2008 30 December 2008 MKM MKM GROUP PLC ("the Group" or "the Company") Interim Results for the six months ended 30 September 2008 Key Points * Revenue of £4.36m (2007: £2.54m; 2007 pro-forma: £5.58m) * Loss before tax of £99,000 (2007: profit of £318,000; 2007 pro-forma profit of £839,000) * Loss per share of 0.1p (2007: basic earnings of 0.5p) * Severe downturn in short term tactical sales promotion activity particularly in Australia due to impact of economic recession * Comprehensive review of Australian business strategy underway * UK-based long term loyalty business continues to make good progress with successful launch of major new Airport Angel programmes Enquiries: MKM Group plc Brian Smillie, Chief Executive T: 0161 877 1112 (www.mkmgroupplc.com) Matthew Toynton, Finance Director WH Ireland Limited David Youngman/Adrian Kirk T: 0161 832 2174 Biddicks Katie Tzouliadis T: 020 7448 1000 CHIEF EXECUTIVE'S REPORT Overview This is my first report to shareholders since my appointment as Group Chief Executive in November 2008 and it is disappointing to have to announce a loss for the six months ended 30 September 2008. During the six months' period, we continued to implement our strategy of building a robust loyalty and sales promotion business. In particular, our focus has been on developing longer term loyalty and CRM contracts which provide greater visibility of future earnings. In tough market conditions, this strategy has enjoyed success, based on our Airport Angel and StARS programmes which have been developed to help our major clients in the financial services sector retain their premium customers. However, while we have seen encouraging progress in this area, sales of our short term tactical campaign programmes, which are primarily aimed at helping our clients stimulate new sales, have suffered in the economic downturn. As a consequence, results from our Australian business in particular, which has a greater dependency on these programmes, have been adversely affected. Since the period end, trading conditions in the region have continued to deteriorate and, as a result, we are undertaking a fundamental review of our strategy and operations in Australia. Results This report includes both statutory and pro-forma figures for the six months ended 30 September. These figures are the same for the period ended 30 September 2008, but the statutory figures for the period ended 30 September 2007 include the figures for the Australian Leapfrog business from 29 August 2007, the date of its acquisition. The pro-forma figures include the results of the continuing business of Leapfrog in the UK and Australia and Promodus as though all three businesses had been owned by the Group throughout both periods. On a statutory basis, Group revenue for the first half was £4.36m (2007: £2.54m; 2007 pro-forma: £5.58m) illustrating the increased scale of the business as a result of the acquisitions in 2007. Within this overall result, revenue from the Leapfrog business in the UK was lower than last year at £1.34m (2007: £1.83m) owing principally to a reduction in the volume of tactical sales promotions in the first half year. The Group's loss before tax was £99,000 (2007: profit of £318,000; 2007 pro-forma profit of £839,000). The reduction in profit mainly reflected the slow-down in tactical sales promotions across the business. The diluted loss per share was 0.1p (2007: earnings of 0.4p). This takes account of the loss for the period, and the increase in the number of shares following the issue of shares associated with the consideration paid for the acquired businesses. Dividend No interim dividend is being proposed (2007: - £nil). Review of Business During the six months' period, we continued to implement our strategy of building a robust loyalty and sales promotion business with the emphasis on securing multi-year loyalty and CRM contracts which provide greater visibility of future earnings. The primary focus of these loyalty and CRM programmes is to support our clients in retaining existing customers and enhancing the client/customer relationship. Our tactical sales promotion business is mainly focused on helping our clients acquire new customers through cost effective short term marketing campaigns. Whilst Leapfrog Australia produced a profit in the first half of the year, trading conditions subsequently deteriorated and, in the weeks following the period end, the market for short term promotional campaigns declined markedly. In recent weeks, Leapfrog Australia has experienced cancelled campaigns as the Australian subsidiaries of multinational corporations have received instructions to cut new programmes and conserve cash. In addition, a client who had indicated it wished to launch a new loyalty programme was instructed to delay its launch until the economic environment improved. In Australia at present, such is the severity of the economic downturn that almost all of the major brands are abstaining from sales promotion activity other than price discounting and "cash back" offers to win new consumers or clear stock. As a response, we have already implemented cost cutting measures in Australia but it is clear that we will have to significantly change our approach in the region to match market conditions and are therefore looking at more radical restructuring options. In the UK, our Promodus business also experienced a downturn in activity as its clients cut budgets and we have therefore cut costs and reallocated some of its resources to our Airport Angel business. However, more positively, Promodus' work resulted in a number of clients winning awards for campaigns in the financial services sector, which will stand the business in good stead as it pitches for new work. Leapfrog in the UK benefited from the fact that a greater proportion of its business is focused on CRM programmes. Our investment in StARS and Airport Angel has given us a significant competitive advantage. In September, we announced that we had signed major contracts with UK based banks for the provision of Airport Angel to their customers. Three of these programmes have now been launched and have been well received by the consumer with volumes running in line or ahead of plan. Airport Angel cards are now carried by packaged account holders of Barclays, Abbey and The Cooperative Bank. Since its launch, Airport Angel continues to gain momentum and we are discussing new contracts both in the consumer and business banking sectors. Outlook The impact of the recession on our Australian operations during the last three months has been significant and, as a consequence, it is clear that we must adopt a different approach in the region in the coming months. However the success of our Airport Angel business and the nature of StARS related retention programmes are very positive developments for us to build upon. The next few months are going to continue to be tough as we work in a very difficult environment and we must ensure we focus our efforts appropriately. Brian Smillie Chief Executive MKM GROUP PLC Consolidated income statement for the six months ended 30 September 2008 Unaudited Unaudited Audited six mths ended six mths ended year ended 30 Sept 2008 30 Sept 2007 31 March 2008 £'000 £'000 £'000 Revenue 4,361 2,540 6,970 Cost of sales (1,386) (1,056) (2,601) GROSS PROFIT 2,975 1,484 4,369 Administrative expenses (3,061) (1,199) (4,591) (LOSS)/PROFIT FROM OPERATIONS (86) 285 (222) Finance expense (15) (1) (68) Finance income 2 34 41 (LOSS)/PROFIT BEFORE TAXATION (99) 318 (249) Income tax (charge)/credit 18 (95) 45 PROFIT FOR THE PERIOD (81) 223 (204) Attributable to the equity holders of the parent (81) 223 (204) Basic (loss)/earnings per share (pence) (0.1) 0.5 (0.3) Diluted (loss)/earnings per share (pence) (0.1) 0.4 (0.3) MKM GROUP PLC Consolidated statement of changes in equity for the six months ended 30 September 2008 Share capital Share premium Share option reserve Merger reserve Translation reserve Deferred share Retained earnings Total capital consideration £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance as at 1 April 2008 365 2,647 86 1,767 (84) 671 (311) 5,141 Changes in equity for six months ended 30 Sept 2008 Net loss for the - - - - - - (81) (81) period Total recognised income and expense for the period - - - - - - (81) (81) Exchange rate loss on translation of overseas - - - - (2) - - (2) operations Balance as at 30 September 2008 365 2,647 86 1,767 (86) 671 (392) 5,058 MKM GROUP PLC Consolidated statement of changes in equity for the six months ended 30 September 2007 Share capital Share premium Share option reserve Merger reserve Translation reserve Deferred share Retained earnings Total capital consideration £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance as at 1 April 2007 218 2,205 112 - - (107) 2,428 - Changes in equity for six months ended 30 Sept 2007 Net profit for the - - - - - - 223 223 period Total recognised income and expense for the - - - - - - 223 223 period Equity credit in respect of share based - - 10 - - - - 10 payments Issue of equity shares 133 1,942 - - - 840 - 2,915 Balance as at 30 September 2007 351 4,147 122 - - 840 116 5,576 MKM GROUP PLC Consolidated balance sheet at 30 September 2008 Unaudited Unaudited Audited 30 Sept 2008 30 Sept 2007 31 Mar 2008 £'000 £'000 £'000 NON-CURRENT ASSETS Property, plant & equipment 663 540 691 Intangibles 6,630 7,209 6,597 Deferred tax assets 185 339 185 7,479 8,088 7,473 CURRENT ASSETS Trade and other receivables 2,340 2,374 2,635 Cash and cash equivalents 367 792 134 2,706 3,166 2,769 TOTAL ASSETS 10,185 11,254 10,242 CURRENT LIABILITIES Trade and other payables (4,060) (3,778) (4,068) Borrowings (345) - (342) Loan Stock (450) (700) (450) Provisions (202) - (159) Deferred Consideration (1,200) - (5,057) (5,678) (5,019) NON-CURRENT LIABILITIES Borrowings (71) - (82) (71) - (82) NET ASSETS 5,058 5,576 5,141 CAPITAL AND RESERVES ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE COMPANY Share capital 365 351 365 Share premium 2,647 2,647 2,647 Share option reserve 86 122 86 Deferred share capital consideration 671 840 671 Merger Reserve 1,767 1,500 1,767 Translation reserve (86) - (84) Retained earnings (392) 116 (311) TOTAL EQUITY 5,058 5,576 5,141 MKM GROUP PLC Consolidated cash flow statement for the six months ended 30 September 2008 Unaudited Unaudited Unaudited Six months ended Six months ended Year ended 30 Sept 2008 30 Sept 2007 31 March 2008 £'000 £'000 £'000 £'000 £'000 £'000 CASHFLOWS FROM OPERATING ACTIVITIES (Loss)/profit before taxation (99) 318 (249) Adjustments for Interest receivable (2) (34) (41) Depreciation 151 50 174 Gain on deferred - - (97) consideration Interest expense 15 1 68 Share option charge 10 10 25 Operating cashflow before movement in working capital 75 345 (120) (Increase)/decrease in receivables 295 (246) (596) Increase/(decrease) in payables (7) (510) 212 Increase/(decrease) in provisions 42 (5) 154 Effect of foreign exchange rate changes (2) - (71) Movement in working capital 329 (761) (301) Interest paid (15) (1) (68) Net cash (used in)/generated from operations 389 (417) (489) CASHFLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment (20) - (378) Purchase of intangible assets (142) - (247) Acquisition of share capital in new companies - (1,250) (1,366) Costs associated with acquisition - (152) (422) Cash within acquired Company - 196 272 Acquisition of subsidiary - - (1,516) Interest received 2 34 41 Net cash outflow from investing activities (160) (1,172) (2,100) CASHFLOWS FROM FINANCING ACTIVITIES Issue of ordinary share capital - 475 475 Net cash generated from financing activities - 475 475 Net (decrease)/increase in cash and cash equivalents 228 (1,114) (2,114) Cash and cash equivalents at the beginning of the period (208) 1,906 1,906 Cash and cash equivalents at the end of the period 21 792 (208) MKM GROUP PLC Notes forming Part of the Financial Statements for Six months ended 30 September 2008 1. Accounting Policies The Interim results for the six months ended 30 September 2008, which are neither audited nor reviewed pursuant to guidance issued by the Auditing Practices Board, have been prepared on the basis of accounting policies consistent with IFRS which has been adopted in the statutory financial statements for the year ended 31 March 2008 and will be used within the statutory financial statements for the year ended 31 March 2009. 2. Basis of preparation The comparatives for the full year ended 31 March 2008 are not the Company's full statutory accounts for that year. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified, did not included references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 237 (2)-(3) of the Companies Act 1985. 3. Turnover Turnover is wholly attributable to the principal activity of the group and arises in the following geographical split: Unaudited Unaudited Audited six mths ended six mths ended year ended 30 Sept 2008 30 Sept 2007 31 March 2008 £'000 £'000 £'000 United Kingdom 1,677 1,834 3,808 Australia/New Zealand 2,684 706 3,162 Total 4,361 2,540 6,970 4. Taxation The tax credit for the period is based on the actual effective rate of tax for the year ended 31 March 2008. 5. Earnings per share The basic earnings per share has been calculated using the loss after tax, divided by the weighted average number of shares in issue of 73,071,544 (2007: 48,188,990). As a result of the loss in the period to 30 September 2008, the diluted earnings per share is the same as the basic earnings per share as the employee share options of 2,845,481 and the deferred consideration shares of 20,216,216 are antidilutive. . MKM GROUP PLC Pro-forma consolidated income statement for the six months ended 30 September 2008 Unaudited Unaudited Audited Pro-Forma Pro-Forma Pro-Forma six mths ended six mths ended year ended 30 Sept 2008 30 Sept 2007 31 March 2008 £'000 £'000 £'000 Revenue 4,361 5,577 10,361 Cost of sales (1,386) (2,412) (4,036) GROSS PROFIT 2,975 3,165 6,325 Margin - to be hidden 68% 57% 61% Administrative expenses (3,061) (2,346) (5,602) PROFIT/(LOSS) FROM OPERATIONS (86) 819 723 Finance expense (15) - (75) Finance income 2 21 41 PROFIT/(LOSS) BEFORE EXCEPTIONAL CHARGES (99) 839 689 Exceptional costs (110) PROFIT BEFORE TAXATION (99) 839 579 Income tax (charge)/credit 30 (252) (174) PROFIT/(LOSS) FOR THE PERIOD (69) 587 405 Attributable to the equity holders of (69) 587 405 the parent Notes to the Pro-Forma Income statement for the six months ended 30 September 2008 1. Basis of preparation The Interim results for the years ended 30 September 2008 and 2007 and the Full year ended 31 March 2008 have been presented above on a pro-forma basis that reflects the Group results as if the acquisitions completed on 29 August 2007 (The Leapfrog group) and 10 October 2007 (Promodus Ltd) had been completed prior to the 31 March 2007. This information is presented to facilitate understanding and it does not reflect the actual earnings position attributable to shareholders for the period. MKM GROUP PLC Notes to Pro-forma Consolidated income statement for the six months ended 30 September 2007 2. Segmental Reporting Unaudited Unaudited Audited Pro-Forma Pro-Forma Pro-Forma six mths ended six mths ended year ended 30 Sept 2008 30 Sept 2007 31 March 2008 £'000 £'000 £'000 Revenue UK Sales Promotions 1,342 1,834 3,344 Australia Sales Promotions 2,684 3,327 6,135 Promodus 335 416 882 Total 4,361 5,577 10,361 Gross Profit UK Sales Promotions 712 1,090 2,042 Australia Sales Promotions 2,029 1,706 3,535 Promodus 234 369 748 Total 2,975 3,165 6,325 Profit before Tax and exceptionals UK Sales Promotions (47) 368 320 Australia Sales Promotions 188 578 604 Promodus (60) 65 136 Head Office Costs (180) (172) (371) Total (99) 839 689 This information is provided by RNS The company news service from the London Stock Exchange END IR URSNRWURUOAA
1 Year Mkm Group Chart |
1 Month Mkm Group Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions