REG - Bonhill Group PLC - Half-year Report
08/09/2022 07:01
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RNS Number : 6725Y Bonhill Group PLC 08 September 2022
8 September 2022
Bonhill Group plc
("Bonhill", the "Company" or the "Group")
Interim Results for the Six Months Ended 30 June 2022
Bonhill Group plc (AIM: BONH), a leading B2B media business specialising in
financial services providing media, events and data & analytics, announces
its unaudited interim results for the six months ended 30 June 2022 ("H1
2022").
Financial Highlights(1)
· Revenue from continuing operations(1) up by 10% to £6.1m (H1 2021: £5.5m);
· Gross margin reduced to 75.5% (H1 2021: 80.6%) as expected due mainly to a
return to live events in H1 2022;
· Improved adjusted EBITDA loss from continuing operations(1) of £0.5m (H1
2021: adjusted EBITDA loss £0.9m);
· Reduced operating loss from continuing operations(1) of £1.8m (H1 2021: loss
of £2.1m);
· Cash balance at 30 June 2022 higher than expected at £1.2m (30 June 2021:
£1.3m); and
· Net debt (including property leases) reduced to £1.1m at 30 June 2022 (30
June 2021: £2.5m).
(1) Following its recent disposal, post period end, the Company's Business
Solutions Group (BSG) division has been classified as a discontinued
operation. Accordingly, the financial statements for the six months ended 30
June 2021 have been restated.
Operational and Strategic Highlights
· Strengthened Board with the appointment of Laurie Benson as an Independent
Non-executive Director in January 2022, following the appointment of Richard
Staveley as a non-independent Non-executive Director in December 2021.
· Post-period end: -
· The appointments to the Board, in July 2022, of two highly
experienced B2B media professionals:
o Patrick Ponsford, the Company's UK managing director, as Group CEO; and
o John French, the CEO of InvestmentNews, as an executive director;
· Strategic Group re-focus on Financial Services following sale of the
BSG division, reducing complexity and creating efficiencies; and
· Cash position following receipt of net proceeds of the disposal of
the Company's BSG division was £1.2m on 31 August 2022.
Commenting on the results, Patrick Ponsford, CEO of Bonhill, said:
"I'm pleased to announce a robust first half of the year. With the successful
sale last month of the BSG division, we can begin to complete the planned
operational efficiencies which should deliver an estimated £600k of annual
cost savings in 2023.
As at 5 September 2022, the Group had booked 71% in the US and 79% in the UK
& Asia of its full year revenue target; compared to 60% and 77%
respectively at the same time last year.
We are deploying some of the net proceeds of the Company's fundraising which
was completed in May 2022 into a purpose-built studio with video capability at
our new, lower cost, offices. Additionally, we have launched two live congress
events, both running in H2 2022, generating significant additional revenues.
The revenue from these new initiatives will help offset any potential weakness
in client spending due to the continuing macro-economic and geo-political
backdrop."
For further enquiries please contact:
Bonhill Group
plc
Jonathan Glasspool, Non-executive
Chairman
+44 (0)207 638 6378
Patrick Ponsford, Group CEO
+44 (0)7714 660 943
Shore Capital (Nominated Adviser and Broker)
+44 (0)20 7408 4050
Tom Griffiths/David Coaten
About Bonhill Group plc
Bonhill Group plc is a leading, AIM-quoted, B2B media company providing
Business Information, Events and Data & Insight propositions to the global
Financial Services community. Bonhill operates multiple digital platforms, has
market leading media brands, hosts over 100 events per annum, offers a
portfolio of data & analytics propositions and provides a range of content
marketing solutions.
Bonhill operates exclusively in the financial services space where its brands
and services are acknowledged as market leaders. It specialises in enhancing
the relationship and flow of information between the global community of
financial services providers and the advisers who recommend their products.
Bonhill was early to recognise the growing importance of ESG in asset
allocation and fund selection and now owns the leading global platform in this
space, serving the adviser community.
Flagship brands include: InvestmentNews, ESG Clarity, Portfolio Adviser, Fund
Selector Asia, Expert Investor Europe, UK Adviser and International Adviser.
Offices in New York, London, Singapore and Hong Kong.
For more information visit www.bonhillplc.com (http://www.bonhillplc.com) .
Chairman's Statement
The Board is pleased with the Group's financial performance and results in H1
2022 with revenue growth of 10%, improved EBITDA loss, a reduced operating
loss and stable cash position.
Operationally, since the start of the year, there have been significant
changes, including:
· the appointment in January 2022 of Laurie Benson as an independent
Non-executive Director and Chair of the Remuneration Committee;
· the successful completion in May 2022 of an equity fundraising; net
proceeds of £973k;
· the appointments in July 2022 to the Board of Patrick Ponsford as
Group CEO, following a period as interim CEO, replacing Simon Stilwell, and
John French, CEO of our US Investment News business, as an Executive Director;
and
· the sale last month of the BSG division for £0.7 million.
As I outlined last year, it was the Board's intention to refine the Company's
business model and I am therefore pleased that the disposal of the Company's
BSG division was completed last month.
This sale enables the Company to focus on one global Financial Services
offering. We are excited by the financial performance that the new streamlined
business presents, namely:
· a more focused business;
· less capital intensive;
· higher margins; and
· less complex.
I would like to thank Simon Stilwell, who served as the Company's CEO from
August 2017 until April 2022, for his dedication and service to the Company
and wish him well in the future.
Our staff continue to demonstrate their commitment and flexibility as they
continue to navigate the 'new world'; our hybrid and flexible working
approaches are working well and have enabled the Company to drive down
overheads with a further reduction in London office space following an office
move last month to lower cost premises.
Finally, I would finally like to thank our shareholders and client base for
their continued support.
Jonathan Glasspool
Non-executive Chairman
Chief Executive's Report
Introduction
2022 has seen the Group return to some semblance of normality, which has been
underpinned by some decisive changes in the management structure and business
focus and a return to full staffing levels in the US.
I took over as the Group CEO and joined the Board in July 2022 and have over
30 years' B2B media experience, having run Bonhill's financial services
division after its acquisition of Last Word Media in 2019.
I am excited by the appointment of John French, the CEO of InvestmentNews, our
US business, and another seasoned B2B media veteran, who joined me on the
Board in July 2022. InvestmentNews now has a fully staffed team for the first
time in 3 years and we are already seeing the commercial benefits.
The Board has laid out a mandate to create a global financial services focused
business. This, along with the Company's recent sale of the BSG division, will
enable us to create a global financial services brand recognised by both
clients and audiences.
As quickly as the business pivoted from live to virtual events, we have now
pivoted back to holding predominantly live events, with over 20 events
delivered by the continuing group in the first 6 months of 2022. While this
has led to higher revenues and operating profits, it has, as expected, caused
a 5% dilution in margin compared to the corresponding period last year.
Revenues in H1 2022 increased by 10% year on year with both cash and EBITDA
loss being in line with the Board's expectations.
Market turbulence has led to a weakening in traditional media and content
projects, as clients have held off on discretionary marketing spend, but we
would expect this position to improve somewhat later in the year as these
spends are historically allocated before the calendar year end.
A number of strategic decisions have been made in the first half of the year
which we expect to lead to significant improvements in operational
efficiencies and cost savings. This includes the sale of the Company's
Business Solutions division to allow us to focus purely on global financial
services.
Additionally, we are undertaking a review of our audience and marketing
platforms to create new commercial opportunities. Given the streamlined
business, and in line with our flexible working practices, we downsized our
office space in August 2022, generating expected annual savings of £150k in
each of 2023 and 2024. We are also reviewing our US office requirements where
we have appointed brokers for a partial or full sub-let or a sub-divide of the
space.
The fundraising completed in May 2022 allowed the Company to focus on more
live event opportunities with a new ESG event successfully executed at
Cambridge University in July 2022 (generating over £0.4m in revenues) and a
new Congress event being added in November 2022 (current bookings £0.2m, 60%
of target).
The Company has entered the second half of 2022 with greater focus and a
strong pipeline and looks forward to completing the operational changes and
cost savings that will see full annualised benefits in 2023 enhancing
shareholder value.
Financial Services
Following the sale last month of its Business Solutions division, the Company
has become a pure financial services specialist. It operates in multiple
regions, but with one central function. It facilitates the flow of information
between financial intermediaries and the product providers that rely on them
for distribution. The Company does this using media, digital engagement, live
and virtual events, data and research.
Covid-19 and socio-economic uncertainty disrupted this interaction in 2020 and
2021 due to a lack of live events, holding back discretionary marketing spend
and a run for safe havens by some investors rather than seeking advice for
active investment strategies.
The Company is now seeing some return to normal activity levels, particularly
in relation to live events, with a solid 10% increase in revenues in H1 2022
to £6.1m compared to £5.5m in the same period in 2021.
ESG and sustainable investing has bucked the general trend of fund outflows
which plays to our strengths. We are seeing a continuation of the success of
our ESG brand, ESG Clarity. We continue to be the "go-to place" for news and
analysis and the brand has seen further success branching out into live
events, awards and ratings.
The Company's Asia business has returned to growth following the severe lock
down activity in Hong Kong and again is seeing the strong return of live
events.
In the US, InvestmentNews is now fully staffed with strong leadership in place
and a clear plan for growth with both revenue and profit growing in H1 2022,
in spite of discontinuing some low margin activity and the re-phasing of a
large research project.
We have a solid product offering, market leading brands, a full staff roster
and new creative capabilities with a video suite in the new London office.
Many of the Company's clients are blue chip global banks and asset managers of
high value which operate in multiple jurisdictions where we have a presence
and we are increasingly having global conversations which will only be helped
by having a global specialist brand. During H1 2022, we had a commercial
relationship with 16 of the top 20 global asset managers (by AUM).
Business Solutions and Governance (BSG)
On 22 June 2022, following the Board's review of the Group and its constituent
businesses, the Company announced the proposed sale of its BSG division, which
was completed last month. We will continue to support the business, under its
new ownership, for a period of up to six months under a transitional services
agreement with the acquirer, Stubben Edge Group.
Compliant with IFRS5, the BSG business has been classified as a discontinued
operation. The financial statements for the comparative periods in these
results have been restated accordingly.
The BSG division comprises brands, including SmallBusiness.co.uk,
GrowthBusiness.co.uk, Information-Age.com, and DiversityQ which includes the
'Women in…' events series.
During the period, live events returned with the 'Women in IT UK' Awards held
in February 2022 at the Grosvenor Hotel, London. The event secured 261
nominations with over 650 attendees, being the largest Bonhill event held
since January 2020. This was followed by the first 'Women in IT UK' live
summit which ran in May 2022 and was the launchpad for a new Future Tech
Leaders sub-brand, with a capacity audience of over 150 on the day.
Our People
Hybrid working continues to be a success empowering our people to decide when,
where and how they work best to ensure high performance alongside a work-life
balance.
To support the continued work to embed the Group's new cultural values created
with our people's input in 2021, the first round of the employee recognition
scheme and performance assessments in 2022 focused on how our people exhibit
these values.
Group staff voluntary turnover nearly doubled during the period to 18.0% (H1
2021: 9.7%) although this is consistent with national turnover being low in H1
2021 due to the Covid-19 restrictions.
We have strengthened our US editorial team with a series of notable hires and
promotions at InvestmentNews; in particular, Paul Curcio was promoted to
Editor-in-Chief having served as Executive Editor for 2.5 years; Gretchen
Lembach was appointed as Director of Content joining from Accenture
Interactive; and Joanne Cleaver joined as the first InvestmentNews team member
to focus exclusively on DE&I.
Technology
Our focus has been on increasing insight to our customers, improving the speed
and usability of our websites, and delivering projects faster and more
effectively.
Customer insight is essential for any successful business and we have been
focusing on enhancing our understanding of our customers and the way in which
they interact with our content, events, videos, and emails. This has helped
our audience teams provide more relevant materials to customers, helped our
editorial teams understand the reading behaviours and so write tailored
content, and our product teams develop new products and brands. To this end,
we have recently made the decision to transition to a new audience and
marketing platform, initially in the US with plans to roll out globally in
early 2023. We expect this to deliver significant further revenue
opportunities with minimal additional cost.
The speed and usability of a website are key in delivering successful sites
that focus on helping a visitor reach the right content quickly and easily.
Google rightly also prioritises these attributes and a site that is fast,
efficient and easy to navigate for a visitor also ranks more highly. We have
invested in new servers, usability designs, and resources to review and
re-code software to run faster.
Delivering projects faster and more effectively help our product and
commercial teams react quickly to market need and, at the same time, ensure
that we deliver a technology infrastructure that is reducing its cost of
maintenance. Our investment in a new global website framework has now been
implemented and ensures that we can reduce the total cost of ownership whilst
delivering new products quickly and effectively.
Lastly, a key part of the technology team is the advertising operations team
and marketing operations. Our best-of-breed advertising solutions provide
effective solutions for our clients, great usability for our visitors and
increased commercial success for our sales teams. In marketing operations, we
optimise delivery of more than 10 million emails every month, working closely
on functionality and deliverability ensuring our customers receive the content
they rely on in a timely and reliable format.
Dividend
In light of the prevailing operating environment the decision was taken not to
recommend the payment of a final dividend for the year ended 31 December 2021.
The Board is not proposing the payment of an interim dividend for the six
months ended 30 June 2022 as we see greater value in investing in the business
for improved shareholder returns in the medium term. It is very much the
Board's intention that the Company should return to paying a dividend when it
is appropriate to do so.
Outlook
Our aim in 2022 is to have a year of delivery, stabilisation and re-focus
following the challenges of the last few years and we believe that we are well
placed to do so. Recent actions have resulted in a new streamlined portfolio
of extremely well regarded, industry leading profitable brands, improved
operations, business efficiencies and a digital-first product set. Our
stable cash position (£1.2m on 31(st) August 2022 following receipt of the
net proceeds of the disposal of the Company's BSG division) means we are well
placed to invest in higher margin new products and services.
We see opportunities for growth across the business, in all geographies,
brands and formats. In 2023, we expect to see a significant recovery in EBITDA
following the Company's recent sale of the BSG division and corresponding
gross margin improvement, which should deliver a significant improvement in
shareholder value.
Patrick Ponsford
Chief Executive Officer
Financial Highlights(1)
· Revenue from continuing operations(1) up by 10% to £6.1m (H1 2021:
£5.5m);
· Gross margin reduced to 75.5% (H1 2021: 80.6%) as expected due mainly
to a return to live events in H1 2022;
· Improved adjusted EBITDA loss from continuing operations(1) of £0.5m
(H1 2021: adjusted EBITDA loss of £0.9m);
· Reduced operating loss from continuing operations(1) of £1.8m (H1
2021: loss of £2.1m);
· Cash balance at 30 June 2022 higher than expected at £1.2m (30 June
2021: £1.3m); and
· Net debt (including property leases) reduced to £1.1m at 30 June
2022 (30 June 2021: £2.5m).
Financial Review (continuing operations)
Key Financials(1) (£'000s) Restated Change £ Change %
6 months to 30 Jun 2022 6 months to 30 Jun 2021
(unaudited) (unaudited)
Revenue 6,079 5,524 555 10%
Gross Profit 4,591 4,452 139 3%
Gross Margin 75.5% 80.6% N/A (5)%
Adjusted EBITDA (542) (895) 353 39%
Adjusted operating loss (1,752) (2,059) 307 15%
Statutory operating loss (2,691) (2,467) (224) (9)%
Cash 1,198 1,288 (90) (7)%
Adjusted basic loss per share (1.70)p (1.91)p
Statutory basic loss per share (2.60)p (2.33)p
(1) Following its recent disposal, post period end, the Company's BSG division
has been classified as a discontinued operation. Accordingly, the financial
statements for the six months ended 30 June 2021 have been restated.
Revenue and gross margin
Despite the 10% increase in revenue in H1 2022, gross profit only improved by
3% with gross margin, as expected, reducing by 5%, when compared to the
corresponding period last year, which reflects a change in mix, mainly driven
by the return to live events.
Business Information revenues are up slightly year-on-year, but were
unfavourably impacted by foreign exchange translation.
Whilst live events tend to be larger in scale than virtual events (so
generating higher revenue) the associated costs (venue, speaker, IT and
technology) result in overall lower margins. During the period, the continuing
group ran 22 live events (H1 2021: nil) which is the main driver for the
doubling of events revenue when compared to H1 2021.
Data & Insight was impacted by the non-return of a long-standing research
project, which might return in the H2 2022 as a series of smaller projects.
Revenue splits by proposition and business unit, from continuing operations
are as follows:
Revenue (£'000s) 6 months to 30 Jun 2022 Restated
6 months to 30 Jun 2021
(unaudited) (unaudited) Change %
Business information 3,820 4,159 (8)%
Events 2,014 996 102%
Data & Insight 245 369 (34)%
Total 6,079 5,524 10%
Revenue (£'000s) 6 months to 30 Jun 2022 Restated
6 months to 30 Jun 2021
(unaudited) (unaudited) Change %
Financial Services 6,079 5,524 10%
Total 6,079 5,524 10%
Operating costs (excl. depreciation, amortisation, lease payments under
IFRS16 and share based payments)
Operating costs for the period showed a reduction of 4% to £5.1m (H1 2021:
£5.3m). Like most businesses, the Group continues to be impacted by global
price inflation, high staff churn (as reported earlier, voluntary turnover has
nearly doubled year-on-year) and salary inflation. Positively, the continuing
drive for operating efficiencies and cost savings has fully offset these
inflationary pressures.
Headcount (excluding BSG division) at 30 June 2022 was 106 (H1 2021: 111) with
40% of the Group's employees being located outside the UK.
Cash and net debt
Having started the year with £1.4m in cash, the monthly closing balances have
been consistently in the range of £0.9m to £1.3m. The Company continues to
manage its cash and working capital well; the move to live events does create
some unfavourable working capital as venues look for deposits to secure events
many months in advance. This situation is expected to improve following the
Company's recent sale of the BSG division.
April and May 2022 saw the Company successfully complete an underwritten
placing and open offer which generated gross cash of £1.1m and net cash of
just under £1.0m. As ever, we remain grateful for the support of our
shareholders and the faith they place in the Company and management team.
At the half year end, we had a net debt position of £1.1m (H1 2021: £2.5m),
including IFRS16 lease liabilities (the office leases in London and New York):
Net Debt (£'000s) 30 Jun 2022 30 Jun 2021 31 Dec 2021
(unaudited) (unaudited) (audited)
Cash 1,198 1,288 1,372
Borrowings (91) (1,269) (100)
Lease liabilities (under IFRS16) (2,183) (2,558) (2,305)
Net debt (1,076) (2,539) (1,033)
During the period, we commenced capital repayments of the Bounce Back loans
with Coutts and Lloyds Bank, total repayments of £9k (H1 2021: nil); the
remaining balance as at 30 June 2022 was £91k (31 December 2021: £100k).
Cash as at 31 August 2022 was £1.2m, following receipt of net proceeds of the
disposal of the Company's BSG division.
Principal risks and Covid-19
The Directors do not consider that the principal risks and uncertainties
described in the Company's annual report for the year ended 31 December 2021
have changed. A detailed explanation of the risks, including those related to
Covid-19, and how the Group seeks to mitigate them can be found on pages 30 to
33 of the Company's annual report for the year ended 31 December 2021 which is
available at www.bonhillplc.com (http://www.bonhillplc.com) .
Adjusting items
During the period, the Group incurred £411k of non-recurring or adjusting
items expenses. These expenses can be broadly categorised as:
Continuing Operations Discontinued
Operations
Restructuring costs
£153k
£135k
Additional bad debt provision
-
£63k
Professional fees
-
£30k
Other
-
£30k
Total
£153k
£258k
Restructuring costs from continuing operations relate to the departure of
Simon Stilwell who was CEO of the Company until April 2022. Discontinued
operations charges relate to the previously announced closure of "What
Investment", the planned reduction in central headcount as a result of the
sale of the BSG division and fees and costs relating to the Company's disposal
of the BSG division.
Statutory auditor update
In August 2022, the Board resolved to appoint Cooper Parry Group Limited as
the Group's auditors replacing BDO LLP with immediate effect. The Board would
like to thank BDO for their support since their appointment in 2018.
Simon Bullock
Interim Chief Financial Officer
Consolidated statement of comprehensive income
for the six months ended 30 June 2022
Restated Restated
6 months ended 6 months ended Year ended 31 Dec 2021
30 Jun 2022 30 Jun 2021 unaudited
unaudited unaudited £'000
£'000 £'000
Revenue from continuing operations 6,079 5,524 13,713
Cost of sales (1,488) (1,072) (3,146)
Gross Profit from continuing operations 4,591 4,452 10,567
Operating Costs (5,133) (5,347) (9,818)
Adjusted EBITDA from continuing operations (542) (895) 749
Depreciation (51) (65) (130)
Amortisation and impairment (963) (1,035) (8,135)
Share-based payments (43) (64) (87)
Adjusting items (153) - -
Net operating loss from continuing operations (1,752) (2,059) (7,603)
Finance costs (44) (117) (146)
Loss before tax from continuing operations (1,796) (2,176) (7,749)
Tax - 292 395
Loss for the period from continuing operations (1,796) (1,884) (7,354)
Discontinued Operations
Loss for the period from discontinued operations (940) (408) (726)
Loss for the Period (2,736) (2,292) (8,080)
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translating foreign operations 532 (229) 129
Total comprehensive loss for the year (2,204) (2,521) (7,951)
Basic loss per share (2.60)p (2.33)p (8.20)p
Consolidated statement of financial position
as at 30 June 2022
30 Jun 30 Jun 31 Dec
2022 2021 2021
unaudited unaudited audited
£'000 £'000 £'000
Non-current assets
Goodwill 4,951 10,624 4,810
Other intangible assets 6,543 7,835 6,624
Property, plant and equipment 86 153 103
Deferred tax asset 322 360 292
Right-of-use asset 1,994 2,421 2,140
13,896 21,393 13,969
Current assets
Trade and other receivables 3,169 3,437 3,288
Cash and cash equivalents 1,198 1,288 1,372
4,367 4,725 4,660
Total assets 18,263 26,118 18,629
Non-current liabilities
Deferred tax liability (348) (402) (348)
Borrowings (69) (50) (81)
Lease financial liability (1,699) (1,932) (1,686)
(2,116) (2,384) (2,115)
Current liabilities
Trade and other payables (4,316) (3,468) (3,366)
Borrowings (22) (1,219) (19)
Lease financial liability (484) (626) (619)
Current tax liability - - (1)
(4,822) (5,313) (4,005)
Total liabilities (6,938) (7,697) (6,120)
Net assets 11,325 18,421 12,509
Equity
Share capital 1,193 986 986
Share premium account 2,525 1,759 1,759
Share-based payment reserve 389 305 346
Merger reserve 1,976 1,976 1,976
Other reserves 104 104 104
Retained earnings 5,149 14,192 7,881
Foreign exchange reserve (11) (901) (543)
Total equity attributable to owners of the parent 11,325 18,421 12,509
The financial statements were approved and authorised to issue by the Board
and signed on its behalf on 7 September 2022.
Jon Kempster
Director
7 September 2022
Consolidated statement of changes in equity (unaudited)
for the six months ended 30 June 2022
Share Share Share- Merger Other Retained Foreign Total
capital premium based reserve reserves earnings exchange £'000
£'000 £'000 payment £'000 £'000 £'000 reserve
reserve £'000
£'000
Balance as at 1 January 2021 986 1,759 245 1,976 104 16,011 (672) 20,409
Loss for the period - - - - - (1,741) - (1,741)
Other comprehensive income - - - - - - (229) (229)
Total comprehensive loss for the year - - - - - (1,741) (229) (1,970)
Transactions with owners in their capacity as owners:
Share option charge - - 61 - - - - 61
Other movements - - - - - (78) - (78)
Balance as at 30 June 2021 986 1,759 306 1,976 104 14,192 (901) 18,422
Loss for the period - - - - - (6,339) - (6,339)
Other comprehensive income - - - - - - - -
Total comprehensive loss for the year - - - - - (6,339) - (6,339)
Transactions with owners in their capacity as owners:
Share option charge - - 40 - - - - 40
Other movements - - - - - 28 358 386
Balance as at 31 December 2021 986 1,759 346 1,976 104 7,881 (543) 12,509
Loss for the period - - - - - (2,736) - (2,736)
Other comprehensive income - - - - - - 532 532
Total comprehensive loss for the year - - - - - (2,736) 532 (2,204)
Transactions with owners in their capacity as owners:
Issue of share capital 207 932 - - - - - 1,139
Share issue costs - (166) - - - - - (166)
Share option charge - - 43 - - - - 43
Other movements - - - - - 4 - 4
Balance as at 30 June 2022 1,193 2,525 389 1,976 104 5,149 (11) 11,325
Consolidated statement of cash flows
for the six months ended 30 June 2022
6 months ended 6 months ended
30 June 2022 30 June 2021
unaudited unaudited
£'000 £'000
Cash used in operations 146 301
Interest paid (43) (78)
Taxation paid (20) 197
Net cash (used in)/generated in operating activities 83 420
Investing activities
Purchases of property, plant and equipment (30) (36)
Purchases of intangible assets - (24)
Net cash used in investing activities (30) (60)
Financing activities
Proceeds from issue of ordinary shares 973 -
Repayment of borrowings (9) (741)
Lease repayments (335) (210)
Government Covid-19 funding received - 970
Net cash generated from financing activities 629 19
Foreign exchange movement 84 (25)
Increase in cash and cash equivalents 766 354
Decrease in cash and cash equivalents from discontinued operations (940) (409)
Total decrease in cash and cash equivalents 174 55
Cash and cash equivalents at the beginning of the period 1,372 1,343
Cash and cash equivalents at the end of the period 1,198 1,288
The Group consists of entities with functional currencies of GBP, USD, SGD and
HKD.
Notes to the cash flow statement
6 months ended 6 months ended
30 Jun 2022 30 Jun 2021
unaudited unaudited
£'000 £'000
Loss after tax (1,796) (1,884)
Adjustments for:
Tax - (292)
Finance costs 44 117
Amortisation and impairment 963 1,035
Depreciation of property, plant and equipment 51 65
Share-based payment charge 43 64
Operating cash flows before movements in working capital (695) (895)
Movement in receivables 258 1,073
Movement in payables 583 123
Cash flows used in operations 146 301
Notes to the accounts
1. General information
The financial information set out above does not constitute the Company's
statutory accounts for the 6-month period ended 30 June 2022 or the 6-month
period ended 30 June 2021. Statutory accounts for the year ended 31 December
2021 have been reported on by the Independent Auditor. The Independent
Auditor's Report on the Annual Report and Financial Statements for the year
ended 31 December 2021 was unqualified, did not draw attention to any matters
by way of emphasis, and did not contain a statement under 498(2) or 498(3) of
the Companies Act 2006. Statutory accounts for the year ended 31 December
2021 have been filed with the Registrar of Companies.
2. Accounting policies
Basis of preparation
The financial statements of Bonhill Group plc have been prepared in accordance
with International Financial Reporting Standards as adopted by the United
Kingdom and IFRIC interpretations (IFRS) and the Companies Act 2006 applicable
to companies reporting under IFRS. The financial statements have been prepared
under the historical cost convention.
The preparation of financial statements in conformity with IFRS requires the
use of certain critical accounting estimates. It also requires management to
exercise its judgement in the process pf applying the accounting policies.
The principal accounting policies adopted in the preparation of the financial
information in this announcement are unchanged from those used in the
Company's financial statements for the year ended 31 December 2021 and are
consistent with those that the Company is expected to adopt in the preparation
of its financial statements for the year ending 31 December 2022.
Going concern
The directors are satisfied that the Group has sufficient resources to
continue in operation for the foreseeable future, a period of not less than 12
months from the date of this report. Accordingly, they continue to adopt the
going concern basis in preparing the condensed financial statements.
3. Revenue and segmental analysis from continuing operations
In September 2021, the Company announced a rebranding which changed the
reporting segments, from 1 January 2022 to Financial Services and Business
Solutions Group (BSG).
Following the Company's disposal of the BSG division, the Board considers the
business now has one operating segment, Financial Services, which operates in
two primary geographies - USA and UK & Rest of World. To aid comparison
the prior periods have been restated on this basis.
Restated
6 months ended 30 Jun 2022 6 months ended 30 Jun 2021
unaudited unaudited
£'000 £'000
Analysis of revenue by core propositions
Business information 3,820 4,159
Live Events 2,014 996
Data and Insight 245 369
Total 6,079 5,524
Restated
6 months ended 30 Jun 2022 6 months ended 30 Jun 2021
unaudited unaudited
Analysis by country £'000 £'000
United Kingdom 2,317 1,867
United States 3,243 3,132
Asia 519 525
Total 6,079 5,524
6 months ended 30 June 2022 USA UK/RoW Total
unaudited unaudited unaudited
£'000 £'000 £'000
Reportable segmental income statement
Revenue 3,243 2,836 6,079
Gross profit 2,350 2,241 4,591
Operating loss (421) (1,331) (1,752)
Loss before tax (428) (1,368) (1,796)
6 months ended 30 June 2021 USA UK/RoW Total
unaudited unaudited unaudited
£'000 £'000 £'000
Reportable segmental income statement
Revenue 3,132 2,392 5,524
Gross profit 2,414 2,038 4,452
Operating loss (1,444) (615) (2,059)
Loss before tax (1,556) (620) (2,176)
4. Discontinued operations
On 22 June 2022, following the Board's review of the Group and its constituent
businesses, the Company announced the proposed sale of its BSG division, which
was completed last month.
Compliant with IFRS5, the BSG business has been classified as a discontinued
operation. The financial statements for the comparative periods in these
results have been restated accordingly.
6 months ended 30 June 2022 2021
unaudited unaudited
£'000 £'000
Revenue 1,267 1,220
Gross profit 752 866
Operating loss (940) (408)
Loss before tax (940) (408)
Within the discontinued operations financials there is a charge of £258k
relating to adjusting items that relate to the closure of 'What Investment',
the planned reduction in central headcount as a result of the sale of the BSG
division and fees and costs relating to the disposal of the BSG division.
5. Loss per share
Basic loss per share is calculated by dividing the loss attributable to owners
of the parent by the weighted average number of ordinary shares in issue
during the period.
Based on statutory earnings 6 months ended 30 Jun 2022 6 months ended 30 Jun 2021
unaudited unaudited
£'000 £'000
Loss attributable to owners of the parent (2,204) (2,521)
Weighted average number of ordinary shares in issue 105,388,649 98,585,692
Basic loss per share (pence per share) (2.60)p (2.33)p
6. Share capital
Issued and fully paid ordinary share of 1p each. Number £'000
As at 31 December 2020 98,585,692 986
Shares issued during the 6 month period - -
As at 30 June 2021 98,585,692 986
Shares issued during the 6 month period - -
As at 31 December 2021 98,585,692 986
Shares issued during the 6 month period 20,702,995 207
As at 30 June 2022 119,288,687 1,193
Share capital at 30 June 2022 amounted to £1.2 million. On 20 April 2022 and
12 May 2022, a total of 20.7 million new ordinary shares were issued as part
of a Firm Placing and Open Offer at a price of 5.5 pence per share. Total
issue costs, charged to the Share Premium Account, amounted to £166k.
7. Lease
The Group recognises a right-of-use asset and lease liability under IFRS 16.
Right-of-use asset £'000
unaudited
Carrying value as at 30 June 2021 2,421
Additions to right-of-use assets -
Amortisation charged (288)
Foreign exchange impact of revaluation 7
Carrying value as at 31 December 2021 2,140
Additions to right-of-use assets -
Amortisation charged (36)
Foreign exchange impact of revaluation (110)
Carrying value as at 30 June 2022 1,994
Lease liability £'000
Carrying value as at 30 June 2021 2,558
Additions to lease liability -
Interest charged (30)
Repayments made (349)
Foreign exchange impact of revaluation 126
Carrying value as at 31 December 2021 2,305
Additions to lease liability (see comment below) (3)
Interest charged 43
Repayments made (375)
Foreign exchange impact of revaluation 213
Carrying value as at 30 June 2022 2,183
On 2 January 2021, the Group entered into a new 8 year lease for the New York
office for InvestmentNews.
On 16 May 2021, the Group extended, for 2 years, its lease on the Hong Kong
office. During the period the "additions to lease liability" of £3k relate to
a temporary Covid-19 rent reduction in March, April and May 2022.
On 17 May 2021, the Group entered into a new licence for the UK office, based
in London, through until 31 December 2022. In July 2022, the licence was
renegotiated and extended to 31 December 2024.
8. Availability
Further copies of this announcement are available on the Company's website,
www.bonhillplc.com (http://www.bonhillplc.com) .
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