REG - Centaur Media PLC - Interim Results <Origin Href="QuoteRef">CAU.L</Origin> - Part 1
06/09/2014 22:41
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Centaur Media PLC
31 July 2014
31 July 2014
Centaur Media plc
Second Interim Results
Centaur Media plc (LSE: CAU), the multi-platform media group, has published its second interim results for the six months
ended 30 June 2014.
Operational Highlights
· Transformation to a multi-platform, customer focused business targeting core markets that are individually led, is
well underway
· Strategic disposal of Perfect Information completed
· Econsultancy earn-out settlement addressed; integration across Marketing portfolio now accelerating
· Commercial outlook strengthening as a result of actions to date
· Trading outlook: 2014 expectations confirmed and prospects for 2015 encouraging with strong focus on digital
paid-for content, live events and development of new revenue streams
Financial highlights
· Reported revenues for the six months to 30 June 2014 as expected at £40.8m (2013: £41.6m)
o Underlying1 digital paid-for content revenues up 30% to £5.3m; rate of growth accelerating
o Underlying1 deferred revenues up 23% to £14.7m
o Dependency on print advertising revenues continues to reduce
· Adjusted EBITDA of £9.0m (2013: £10.0m) with EBITDA margins at 22% (2013: 24%)
· Interim dividend increased by 8% to 1.7p (2013: 1.575 p)
· Net debt at 30 June 2014 of £10.2m (31 December 2013: £27m)
· Procurement and efficiency initiatives expected to deliver £1m of annualised savings in 2014
Six months to30 June 2014Unaudited Six months to30 June2013Unaudited
Revenue (£m) 40.8 41.6
Adjusted EBITDA (£m) 2 9.0 10.0
Adjusted EBITDA margin 2 22% 24%
Adjusted profit before tax (£m) 2 6.5 7.9
Profit/(loss) before tax (£m) 13.8 (32.4)
Basic EPS/(LPS) (pence) 8.5 (24.1)
Adjusted basic EPS (pence) 2 3.4 4.4
Dividend per share (pence) 1.7 1.575
1. Adjusted to exclude the impact of Perfect Information
2. Adjusted results exclude adjusting items as detailed in the Basis of Preparation section of this statement
Andria Vidler, CEO, said:
"The era of the single-format content business at Centaur is over. Our customers want flexible content that works
seamlessly across multiple platforms - from print to digital to live events. We are evolving Centaur Media into a business
that can deliver exactly that - opening up new opportunities and growing existing revenue streams, introducing new products
and services, as well as getting the very best out of our people.
"We have made the significant and necessary changes to the business in the last six months to deliver this transformation.
There is more work to do, but we are already seeing the benefits of the new strategy both in operational performance and
financial outlook."
Enquiries:
Centaur Media plc +44 (0) 20 7970 4000
Andria Vidler, Chief Executive
Mark Kerswell, Finance Director
Instinctif Partners +44 (0) 20 7457 2020
Adrian Duffield / Kay Larsen
Note to editors
Centaur Media is an award winning UK-based multi-platform media group that delivers information, insight and interaction to
professional and consumer markets, helping people and businesses improve their performance and achieve their ambitions.
Leading brands across these markets include: Econsultancy, Marketing Week, Creative Review, Celebrity Intelligence, Fashion
Monitor, Money Marketing, The Platforum, The Lawyer, VBR, Employee Benefits, The Engineer, Subcon, Homebuilding &
Renovating, Business Travel Show and The Meetings Show.
Strategic overview
Transformation
The new strategy is anchored in a clear focus on core markets - Marketing, Financial, Home Interest and the four portfolios
aggregated into Professional - with each having its own leadership team and individually reported P&L.
This new market-led structure, in a marked contrast to the previous format based structure, allows Centaur to provide its
customers with multi-platform, integrated content for their audiences, with a growing focus on insight, live events and
digital paid-for content, whilst also revitalising the print brands. It will also achieve efficiency savings and other
synergies, as well as significant growth potential and clear competitor differentiation.
As part of this transformation the group completed two strategic transactions in June 2014:
· The resolution of the Econsultancy earn-out removed the final obstacle to an integrated Marketing portfolio. This
portfolio is now fully focused on accelerating the pace of further integration and growth.
· The disposal of Perfect Information, a single format business with limited overlap with other parts of the business
and limited potential for growth without significant investment.
In addition to their strategic importance, both of these transactions reduced leverage and provide capacity for further
targeted investment elsewhere.
Operational change
The group has made and is continuing to make the significant operational changes necessary to deliver its new strategy:
· The core market portfolios and the subsidiary market portfolios within the Professional segment all now have
individual leadership teams.
· A group wide growth strategy is now in place that includes rigorous new product development, a programme for
revitalising the core brands, and an acceleration of digital functionality and customer engagement.
· Renewed emphasis on leveraging and integrating skills and assets across the business, including the alignment of
marketing, research, digital product development, commercial and live event teams
· Incentive schemes across portfolios and the group as a whole are now aligned.
Commercial performance
This transformation underpins and is enabling Centaur to drive commercial performance in the second half of 2014 and into
2015. Specific examples include:
· Digital paid-for content revenues continue to grow well and with good forward visibility.
· Live Events, now centrally managed, is generating a strong pipeline of existing and new events activity and
encouraging forward bookings.
· The rate of decline in print advertising revenues is moderating. Digital advertising revenues, which have seen some
short-term weakness and volatility, notably across the financial portfolio, are also showing signs of stability.
Recruitment advertising revenues are growing, and are well placed to benefit from further cyclical upturn across core
markets.
· Procurement and efficiency savings, alongside continued focus on working capital management are creating further
capacity to invest across the business. The group expects to deliver annualised savings of £1m in 2014.
· Group-wide technical and digital expertise is driving innovation. This is translating into initiatives that have
relevance and opportunity across multiple portfolios rather than individual brands, offering each portfolio clear
competitive advantage. New digital and live events products and refreshed print products are being developed and planned to
be launched in 2015.
Dividend
With the seasonality of earnings expected to continue to reduce in the medium term, the Board is re-balancing the interim
and final dividend payments on an approximately equal basis. The second interim dividend declared for the six-month period
to 30 June 2014 of 1.7p (2013: 1.575p) still reflects the established larger weighting.
The expected dividend payment for the six-month period to 31 December 2014 will see a higher dividend payment than the
previous smaller weighting for that period. The expected transition to equal dividend payments in 2014 is therefore
beneficial to shareholders.
Financial targets
The group is adopting rigorous investment criteria across all new product development, including targets related to scale,
margin and payback. It anticipates that these targeted investments will continue to drive strong growth across live events
and digital paid-for content products. With the business capable of delivering strong underlying revenue growth, and with a
scalable business structure, Centaur will be targeting improved EBITDA margins.
With significant structural and operational change across the business, and with the change in the year-end to 31 December,
the Board has made a decision at this stage not to introduce new KPI measures against those that have been previously
reported. It expects to set out in due course new medium-term targets relating to the quality and growth of revenue
streams, EBITDA margins and return on investment, and to report against these from 1 January 2015.
Current trading and outlook
There has been a significant level of change across all the portfolios; this change is ongoing and ahead of schedule.
Trading in the first six months of 2014 across the business has reflected the variation in performance in each portfolio.
The Marketing and Legal portfolios have reported modest growth, while the Financial and HR portfolios have been impacted by
specific external, legacy product, and leadership issues, all of which have now been addressed.
Momentum across digital paid-for content revenues continues to build; equally, forward bookings across live events are
encouraging. While the rate of decline in display advertising revenues is reducing, the group continues to manage these
revenue streams aggressively.
Overall, the transformation across Centaur is creating the cohesion and foundation for a more efficient business that is
better positioned to drive sustainable growth and value creation across its core markets.
The Board remains encouraged by the potential across the business, and trading for the year to 31 December 2014 is in line
with its expectations.
Financial overview
As a result of the change in its accounting reference date from 30 June to 31 December, alongside the second interim
results to 30 June 2014, the group is also presenting unaudited results for the 12 months to 30 June 2014.
Six months to 30 June 2014
As expected, reported revenues for the six-month period to 30 June 2014 declined by 2% to £40.8m (2013: £41.6m). Revenues
across the financial portfolio declined by 11%, and adjusted for this and the disposal of Perfect Information (PI) in June
2014, revenues across the rest of the group grew by 2%.
Underlying paid-for content revenues of £8.9m grew by 17%, adjusted for the sale of PI at the beginning of June 2014. On
the same basis, underlying digital paid-for content revenues of £5.3m grew by 30%. This underlying growth is primarily
being driven by the Marketing portfolio, where Celebrity Intelligence, Fashion Monitor and Econsultancy digital paid-for
content revenues grew by 35%. Reported digital paid-for content revenues grew by 11%, reflecting PI revenues that were flat
in the first five months of the year.
Live events revenues, adjusted for the impact of event phasing and discontinued events, grew by 2%. Reported live events
revenues of £16.9m fell by 3%, reflecting specific weakness across the HR portfolio and the National Home Building &
Renovating Show, and the re-phasing of some events into the second half of 2014.
Print advertising revenues of £6.1m now account for just 15% (2013: 18%) of the group's total revenues, with the 16% rate
of decline in the first six months of 2014 moderating compared to 2013. The weakness in digital advertising revenues, which
declined by 5% to £5.7m is most evident across the financial portfolio, and is being addressed. Recruitment revenues of
£3.1m grew by 3%. Total advertising revenues of £11.8m declined by 11% and now account for 29% of total revenues compared
to 32% in the same period last year.
Adjusted group EBITDA was £9.0m (2013: £10.0m). This reflects specific weakness across the HR and Financial portfolios.
EBITDA margins were 22% (2013: 24%). With investment into group-wide initiatives providing a stronger platform for growth,
Centaur expects full year 2014 margins to recover in line with 2013.
Exceptional costs of £6.5m consist of IFRS 3 earn-out charges of £3.5m, a £2.5m charge for unwinding the remaining discount
on the Econsultancy earn-out, acquisition-related costs of £0.1m, restructuring costs of £0.2m, and other exceptional costs
amounting to £0.2m, which include an onerous lease charge associated with the group's on-going property rationalisation.
The disposal of PI generated a profit on disposal of £14.9m.
Adjusted profit before taxation was £6.5m (2013: £7.9m). Reported profit before taxation of £13.8m (2013: loss £32.4m) is
after the exceptional costs, the amortisation of acquired intangibles of £1.1m, and the profit on disposal of PI.
The group has reported an adjusted basic EPS of 3.4 pence (2013: 4.4 pence) and has declared a second interim dividend of
1.7 pence (2013: 1.575 pence).
Net debt at 30 June 2014 was £10.2m (31 December 2013: £27m) with a net debt to EBITDA ratio of 0.8 times.
Segmental review
Revenue and adjusted EBITDA together with reported growth rates across each segment for both the six month and 12 month
periods to 30 June 2014 are set out below.
Six months to30 June 2014Unaudited Six months to30 June 2013Unaudited Reported growth Year to 30 June 2014 Unaudited Year to30 June 2013Audited Reported growth
£m £m % £m £m %
Marketing
Revenue 14.4 14.2 1% 25.1 23.8 5%
Adjusted EBITDA 3.4 3.0 13% 4.2 3.6 17%
Adjusted EBITDA margin 23% 21% 17% 15%
Financial
Revenue 7.1 8.0 (11%) 12.7 13.3 (5%)
Adjusted EBITDA 1.5 2.1 (29%) 2.2 2.2 0%
Adjusted EBITDA margin 21% 26% 17% 17%
Home Interest
Revenue 6.3 6.1 3% 11.0 10.8 2%
Adjusted EBITDA 1.3 1.5 (13%) 1.6 1.7 (6%)
Adjusted EBITDA margin 21% 25% 15% 16%
Professional
Revenue 13.0 13.3 (2%) 24.8 24.1 3%
Adjusted EBITDA 2.8 3.4 (18%) 4.1 5.4 (24%)
Adjusted EBITDA margin 22% 26% 17% 22%
Total
Revenue 40.8 41.6 (2%) 73.6 72.0 2%
Adjusted EBITDA 9.0 10.0 (10%) 12.1 12.9 (6%)
Adjusted EBITDA margin 22% 24% 16% 18%
Marketing
Serving the marketing and creative industries, this portfolio includes Econsultancy, Marketing Week, Creative Review,
Design Week, Celebrity Intelligence and Fashion Monitor:
· Revenues were £14.4m (2013: £14.2m)
· Adjusted EBITDA up 13% to £3.4m (2013: £3.0m)
· Digital revenues of £6.7m grew by 24%
o Digital paid-for content revenues of £4.2m grew by 38%
o Digital advertising revenues of £2.5m grew by 9%
· Live events revenues of £5.6m and print revenues of £1.7m
The outlook across this portfolio is encouraging with digital paid-for content growth across Econsultancy, Celebrity
Intelligence and Fashion Monitor, underpinned by annualised contract values that are up 35% compared to the same period
last year. The Festival of Marketing runs in November 2014 and bookings are in line with expectations. The accelerated
settlement of the Econsultancy earn-out presents further opportunity to accelerate revenue growth across the portfolio.
The increase in EBITDA and margin reflects rationalisation of Econsultancy overseas operations and events, excellent profit
growth across Celebrity Intelligence and Fashion Monitor, offset by lower advertising revenues and investment in group
overhead.
Celebrity Intelligence and Fashion Monitor continue to grow at pace, with digital paid-for content revenues of £2.6m, 37%
higher than in the same period last year. Econsultancy also continues to perform ahead of expectations. While Marketing
Week and Creative Review saw revenues decline, all of these brands are beginning to benefit from portfolio management, and
a renewed focus on content and audience.
Financial
Serving the financial services industry, this portfolio includes Money Marketing, Fund Strategy, Mortgage Strategy,
Corporate Advisor, Tax Briefs, Headline Money and The Platforum:
· Revenues were £7.1m (2013: £8.0m)
o Display advertising revenues declined by 31%
· Adjusted EBITDA of £1.5m (2013: £2.1m)
· The Platforum revenues of £1.0m grew by 32%
· Refreshed leadership now in place
The decline in adjusted EBITDA reflects the operational gearing associated with the expected decline in advertising
revenues, in both print and digital formats.
While the performance across this segment has been materially impacted by more stringent regulatory requirements that are
impacting audiences, sponsors and advertisers, Centaur has already implemented a number of actions to reposition this
portfolio and to leverage The Platforum business model where revenues grew by 32% to £1.0m. These initiatives include new
leadership across the portfolio as a whole, and the re-launch of Money Marketing. The Platforum and Money Marketing are now
well positioned to support demand for greater insight and analysis around key topics such as investment, retirement,
mortgages, protection and technology.
While the short term outlook across this segment remains challenging, the group is encouraged by the opportunities across
the retail financial services market.
Home Interest
Live events and publishing assets focusing on homebuilding and home renovation - includes Homebuilding & Renovating, Real
Homes and Period Living:
· Revenues were £6.3m (2013: £6.1m)
o Digital revenues +20%
· Adjusted EBITDA of £1.3m (2013: £1.5m)
· Visitor numbers across the National Homebuilding events portfolio grew by 28%
The decline in EBITDA primarily reflects the investment into the National Homebuilding & Renovating Show and the similarly
branded regional live events. Visitor numbers across this portfolio of live events have shown good growth, and with
continued increases in activity across the homebuilding and home improvement sectors, we are encouraged by the
opportunities across the live events portfolio.
The publishing activities across the Home Interest segment continue to report good growth in both market share and digital
revenues. With a new content and commercial structure now established, the group is confident in the outlook for the
portfolio as a whole.
Professional
This segment divides into four subsidiary markets - legal, engineering, HR and new markets:
· Revenues were £13.0m (2013: £13.3m)
· Adjusted EBITDA of £2.8m (2013: £3.4m)
The Legal portfolio includes the print, digital and live events activities associated with The Lawyer and VB Research. The
principal assets within the Engineering portfolio are The Engineer and Subcon, an exhibition which serves the
sub-contractor industry. The HR portfolio includes FEM, Employee Benefits and Employee Benefits Live, and New Markets
includes a portfolio of exhibitions serving the Business Travel and Meetings markets. The disposal of PI was completed in
June 2014.
Total reported revenues were £13.0m (2013: £13.3m), with the Business Travel Show growing its revenues by £0.6m (37%). The
growth across the Business Travel portfolio was offset by a £0.6m (21%) decline in HR revenues and the impact of the
disposal of PI. The decline in HR revenues demonstrates the increased investment necessary in FEM's product portfolio
following the earn-out period to 30 June 2013. Centaur expects to see the benefits of the newly aligned HR portfolio in
2015. Revenues across the legal and engineering portfolios grew by 2% and 6% respectively.
Adjusted EBITDA of £2.8m (2013: £3.4m) reflects the impact of the disposal of PI and the operational gearing impact of
weaker revenues across the HR portfolio. The legal and engineering portfolios both grew profits, and with targeted
investment into new digital product development initiatives, Centaur continues to be encouraged by the opportunities across
these brands, and the portfolio as a whole.
12 months to 30 June 2014
These numbers are presented to reflect the change in year-end from 30 June to 31 December.
Year to 30 June2014Unaudited Year to 30 June 2013Audited
Revenue (£m) 73.6 72.0
Adjusted EBITDA (£m) 1 12.1 12.9
Adjusted EBITDA margin 1 17% 18%
Adjusted profit before tax (£m) 1 7.3 8.6
Profit/(loss) before tax (£m) 11.0 (37.4)
Basic EPS/(LPS) (pence) 6.8 (27.3)
Adjusted basic EPS (pence) 1 3.7 4.5
Dividend per share (pence) 2.6 2.4
1. Adjusted results exclude adjusting items as detailed in the Basis of Preparation section of this statement
Key Performance Indicators (KPIs)
The Board uses a range of performance indicators to monitor progress against its strategic objectives and to manage the
business. The Board expects to to report, from 1 January 2015, clearer medium-term targets related to the quality and
growth of revenue streams, EBITDA margins and return on investment. The indicators which the Board has historically
considered to be important are as set out below:
Six months to 30 June 2014 Six months to 30 June 2013 Year to 30 June 2014 Year to 30 June 2013
Unaudited Unaudited Unaudited Unaudited
Revenue growth/(decline) by revenue type
Digital products 4% 19% 6% 28%
Live events (3%) 19% 5% 28%
Print (10%) (18%) (8%) (19%)
Other 133% 50% 67% -
Total (2%) 7% 2% 10%
Digital revenues as a percentage of total revenues 33% 31% 36% 35%
Adjusted EBITDA margin 22% 24% 17% 18%
Revenue per employee (£000) 138.5 139.5 123.7 122.5
Adjusted Profit before tax (£m) 6.5 7.9 7.3 8.6
Adjusted basic EPS (pence) 3.4 4.4 3.7 4.5
Principal risks and uncertainties
The principal risks and uncertainties have not changed since the Annual Report. Further details of the group's risk profile
can be found in the 2013 Annual Report on pages 35 and 36.
Forward looking statements
Certain statements in this interim report are forward-looking. Although the group believes that the expectations reflected
in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have
been correct. Because these statements involve risks and uncertainties, actual results may differ materially from those
expressed or implied by these forward-looking statements. It undertakes no obligation to update any forward-looking
statements whether as a result of new information, future events or otherwise.
Statement of directors' responsibilities
The directors confirm that this consolidated interim financial information has been prepared in accordance with IAS 34 as
adopted by the European Union, and that the interim management report herein includes a fair review of the information
required by DTR 4.2.7 and DTR 4.2.8, namely:
· an indication of important events that have occurred during the period and their impact on the condensed set of
financial statements, and a description of the principal risks and uncertainties for the remaining period of the financial
year; and
· material related-party transactions in the period and any material changes in the related-party transactions
described in the last annual report.
The directors of Centaur Media plc are listed in the Centaur Media plc Annual Report for 30 June 2013.
The appointments and resignations during the twelve months to 30 June 2014 were as follows:
Andria Vidler (Chief Executive Officer) Appointed 4 November 2013
Colin Morrison (Non-Executive Director) Resigned 13 November 2013
Matthew Jones (Company Secretary) Appointed 29 January 2014
Claire Baty (Company Secretary) Resigned 29 January 2014
A list of current directors is maintained on the Centaur Media plc website: www.centaur.co.uk.
Going concern
In assessing the going concern status, the Directors considered the group's activities, the financial position of the group
and the group's financial risk management objectives and policy. The Directors have a reasonable expectation that the group
has adequate resources to continue in operational existence for the foreseeable future and for this reason, they continue
to adopt the going concern basis in preparing the financial statements.
Related party transactions
As part of the disposal of Perfect Information Limited the amount of £45,000 owed by GP Simidian, a director of PI, arising
from unpaid share subscriptions relating to his minority shareholding in that company, was settled. There have been no
further changes to the related party transactions set out in the annual report for the year-end 30 June 2013.
Change of accounting reference date
As a result of the group's change in accounting reference date, announced in the annual report for the year-ended 30 June
2013, this financial report represents the interim results for the six months to June 2014 and for the twelve months to
June 2014. The next financial report to be issued will be the financial statements for the 18 month period ended 31
December 2014.
The interim report was approved by the Board of Directors and authorised for issue on 30 July 2014 and signed on behalf of
the board by:
Andria Vidler, Chief Executive Officer
Mark Kerswell, Finance Director
Report on the consolidated interim financial statements
Our conclusion
We have reviewed the consolidated interim financial statements, defined below, in the interim report of Centaur Media plc
for the six and twelve month periods ended 30 June 2014. Based on our review, nothing has come to our attention that causes
us to believe that the consolidated interim financial statements are not prepared, in all material respects, in accordance
with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
This conclusion is to be read in the context of what we say in the remainder of this report.
What we have reviewed
The consolidated interim financial statements, which are prepared by Centaur Media plc, comprise:
· the Consolidated Balance Sheet as at 30 June 2014;
· the Consolidated Statements of Comprehensive Income for the six and twelve month periods then ended;
· the Consolidated Cash Flow Statement for the twelve month period then ended;
· the Consolidated Statement of Changes in Equity for the twelve month period then ended; and
· the explanatory notes to the consolidated interim financial statements.
As disclosed in the Basis of Preparation, 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.
The consolidated interim financial statements included in the interim report have been prepared in accordance with
International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure
and Transparency Rules of the United Kingdom's Financial Conduct Authority.
What a review of consolidated 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 Ireland) 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 interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the consolidated interim financial statements.
Responsibilities for the consolidated interim financial statements and the review
Our responsibilities and those of the directors
The interim report, including the consolidated interim financial statements, is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the interim report in accordance with the
Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.
Our responsibility is to express to the company a conclusion on the consolidated interim financial statements in the
interim 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 and Transparency Rules of the 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.
PricewaterhouseCoopers LLP
Chartered Accountants
30 July 2014
London
Notes:
(a) The maintenance and integrity of the Centaur Media plc website is the responsibility of the directors; the work
carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no
responsibility for any changes that may have occurred to the financial statements since they were initially presented on
the website.
(b) Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from
legislation in other jurisdictions.
Consolidated Statement of Comprehensive Income - six months ended 30 June 2014
Adjusted Adjusting Statutory Adjusted Adjusting Statutory
Results Items Results Results Items Results
Six months Six months Six months Six months Six months Six months
ended 30 ended 30 ended 30 ended 30 ended 30 ended 30
June June June June June June
2014 2014 2014 2013 2013 2013
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Notes £m £m £m £m £m £m
Revenue 1 40.8 - 40.8 41.6 - 41.6
Net operating expenses 2 (33.7) (5.1) (38.8) (33.1) (39.6) (72.7)
Operating profit/(loss) 7.1 (5.1) 2.0 8.5 (39.6) (31.1)
Profit on disposal of subsidiary 11 - 14.9 14.9 - - -
Finance costs (0.6) (2.5) (3.1) (0.6) (0.7) (1.3)
Profit/(loss) before tax 6.5 7.3 13.8 7.9 (40.3) (32.4)
Taxation (expense)/credit 4 (1.7) - (1.7) (1.9) 0.3 (1.6)
Profit/(loss) for the period 4.8 7.3 12.1 6.0 (40.0) (34.0)
Items that may be reclassified subsequently to profit or loss:
Losses on hedge of a net investment taken to equity (0.3) - (0.3) - - -
Total comprehensive income/(loss) attributable to owners of the parent 4.5 7.3 11.8 6.0 (40.0) (34.0)
Earnings/(loss) per share attributable to owners of the parent
Basic 5 3.4p 8.5p 4.4p (24.1p)
Diluted 5 3.3p 8.3p 4.2p (24.1p)
Consolidated Statement of Comprehensive Income - twelve months ended 30 June 2014
Adjusted Adjusting Statutory Adjusted Adjusting Statutory
Results Items Results Results Items Results
Twelve months Twelve months Twelve months Twelve months Twelve months Twelve months
ended 30 ended 30 ended 30 ended 30 ended 30 ended 30
June June June June June June
2014 2014 2014 2013 2013 2013
Unaudited Unaudited Unaudited Audited Audited Audited
Notes £m £m £m £m £m £m
Revenue 1 73.6 - 73.6 72.0 - 72.0
Net operating expenses 2 (65.1) (8.3) (73.4) (62.2) (44.7) (106.9)
Operating profit/(loss) 8.5 (8.3) 0.2 9.8 (44.7) (34.9)
Profit on disposal of subsidiary 11 - 14.9 14.9 - - -
Finance costs (1.2) (2.9) (4.1) (1.2) (1.3) (2.5)
Profit/(loss) before tax 7.3 3.7 11.0 8.6 (46.0) (37.4)
Taxation (expense)/credit 4 (2.0) 0.6 (1.4) (2.2) 1.2 (1.0)
Profit/(loss) for the period 5.3 4.3 9.6 6.4 (44.8) (38.4)
Items that may be reclassified subsequently to profit or loss:
Losses on hedge of a net investment taken to equity (0.3) - (0.3) - - -
Total comprehensive income/(loss) attributable to owners of the parent 5.0 4.3 9.3 6.4 (44.8) (38.4)
Earnings/(loss) per share attributable to owners of the parent
Basic 5 3.7p 6.8p 4.5p (27.3p)
Diluted 5 3.7p 6.6p 4.5p (26.8p)
Consolidated Statement of Changes in Equity
Attributable to the owners of the parent
Share capital Treasury shares Share premium Reserve for shares to be issued Deferred shares Retained earnings Total
Notes £m £m £m £m £m £m £m
Audited
At 1 July 2012 15.0 (10.5) 0.7 3.6 0.1 113.7 122.6
Loss for the period and total comprehensive loss for the period - - - - - (38.4) (38.4)
Transactions with owners:
- Dividends 10 - - - - - (3.3) (3.3)
Share options:
- Share options exercised - 0.4 - - - - 0.4
- Fair value of employee services - - - 0.3 - - 0.3
As at 30 June 2013 15.0 (10.1) 0.7 3.9 0.1 72.0 81.6
Unaudited
Profit for the period - - - - - 9.6 9.6
Other comprehensive loss for the period - - - - - (0.3) (0.3)
Transactions with owners:
- Dividends 10 - - - - - (3.5) (3.5)
Share options:
- Fair value of employee services - - - 0.3 - - 0.3
As at 30 June 2014 15.0 (10.1) 0.7 4.2 0.1 77.8 87.7
Consolidated Balance Sheet at 30 June 2014
30 June 30 June
2014 2013
Unaudited Audited
Note £m £m
Non-current assets
Goodwill 6 90.0 98.9
Other intangible assets 7 20.7 23.8
Property, plant and equipment 2.3 2.0
Deferred income tax assets 1.5 1.5
114.5 126.2
Current assets
Inventories 2.0 2.0
Trade and other receivables 16.2 16.1
Cash and cash equivalents 1.7 3.3
19.9 21.4
Current liabilities
Trade and other payables (11.4) (11.6)
Deferred income (14.7) (14.3)
Current income tax liabilities (0.8) (1.4)
Provisions 9 (4.3) (3.1)
(31.2) (30.4)
Net current liabilities (11.3) (9.0)
Non-current liabilities
Borrowings 8 (11.7) (22.7)
Provisions 9 (0.9) (9.9)
Deferred income tax liabilities (2.9) (3.0)
(15.5) (35.6)
Net assets 87.7 81.6
Capital and reserves attributable to owners of the parent
Share capital 15.0 15.0
Own shares (10.1) (10.1)
Share premium 0.7 0.7
Other reserves 4.3 4.0
Retained earnings 77.8 72.0
Total equity 87.7 81.6
The condensed set of financial statements, comprising the Consolidated Statement of Comprehensive Income to note 12, was
approved by the Board of Directors on 30 July 2014 and was signed on its behalf by:
MH Kerswell
Finance Director
Consolidated Cash Flow Statement
for the twelve months ended 30 June 2014
Twelve months Twelve months
ended 30 ended 30
June 2014 June 2013
Unaudited Audited
Note £m £m
Cash flows from operating activities
Cash generated from operations 12 12.1 9.3
Tax paid (2.1) (1.3)
Net cash generated from operating activities 10.0 8.0
Cash flows from investing activities
Acquisition of subsidiary - (11.4)
Settlement of earn-outs on acquisitions (15.4) (0.4)
Proceeds from disposal of subsidiary (net of cash disposed) 24.5 -
Deferred consideration on disposal of subsidiary 0.2 0.2
Purchase of property, plant and equipment (1.3) (0.3)
Purchase of intangible assets (3.8) (4.1)
Net cash flows generated from/(used in) investing activities 4.2 (16.0)
Cash flows from financing activities
Exercise of employee benefit trust shares - 0.4
Interest paid (1.2) (1.1)
Finance lease repayments (0.2) (0.3)
Dividends paid to shareholders 10 (3.5) (3.3)
(Repayment)/proceeds of borrowings (10.9) 10.3
Net cash flows (used in)/generated from financing activities (15.8) 6.0
Net decrease in cash and cash equivalents (1.6) (2.0)
Cash and cash equivalents at the start of the period 3.3 5.3
Cash and cash equivalents at the end of the period 1.7 3.3
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