REG - Ebiquity PLC - Interim Results <Origin Href="QuoteRef">EBQ.L</Origin> - Part 2
28/01/2015 07:00
- Part 2: For the preceding part double click ID:nRSb3121Da
Revenue 16,501 13,889 2,290 32,680 - 32,680
Operating profit before highlighted items 3,745 2,477 999 7,221 (3,126) 4,095
Year ended 30 April 2014
Media Value Measurement Market Intelligence Marketing Performance Optimization Reportable Segments Unallocated Total
£'000 £'000 £'000 £'000 £'000 £'000
Revenue 36,477 27,162 4,813 68,452 - 68,452
Operating profit before highlighted items 10,289 4,801 1,523 16,613 (5,274) 11,339
A reconciliation of segment operating profit before highlighted items to total
profit before tax is provided below:
Unaudited 6 months ended31 October 2014 Unaudited 6 months ended31 October 2013 Audited12 months ended30 April 2014
£'000 £'000 £'000
Reportable segment operating profit before highlighted items 7,099 7,221 16,613
Unallocated costs:
Staff costs (2,604) (2,446) (4,685)
Property costs (221) (172) (329)
Exchange rate movements (78) 25 (51)
Other administrative expenses (50) (533) (209)
Operating profit before highlighted items 4,146 4,095 11,339
Highlighted items (note 3) (3,008) (1,862) (6,727)
Operating profit 1,138 2,233 4,612
Net finance costs (569) (549) (1,191)
Share of profit of associates 8 17 19
Profit before tax 577 1,701 3,440
Unallocated costs comprise central costs that are not considered attributable
to the segments.
3. Highlighted items
Highlighted items comprise non-cash charges and non-recurring items which are
highlighted in the income statement because separate disclosure is considered
relevant in understanding the underlying performance of the business.
Unaudited 6 months ended31 October 2014 Unaudited 6 months ended31 October 2013 Audited12 months ended30 April 2014
£'000s £'000s £'000s
Recurring:
Share option charge 642 124 337
Amortisation of purchased intangibles 999 900 1,873
1,641 1,024 2,210
Non-recurring:
Acquisition and integration costs 1,029 559 3,355
Facility amendment costs - 89 103
Refinancing costs 338 - -
Property costs - 190 1,059
1,367 838 4,517
Total highlighted items before tax 3,008 1,862 6,727
Deferred tax on tax losses - (138) (80)
Taxation credit (467) (350) (1,966)
Total highlighted items after tax 2,541 1,374 4,681
Amortisation of purchased intangibles of £999,000 relates to acquisitions made
in prior years.
Acquisition costs represent professional fees incurred in relation to
acquisitions and adjustments to the fair value of deferred consideration
resulting from strong performances from our recent acquisitions along with the
related foreign exchange impact (£545,000). Integration costs include certain
one-off costs incurred whilst integrating the acquisitions made in the current
and prior financial years in to the Group's existing operations. Also included
are severance costs relating to rationalisation and restructure of senior
management following these acquisitions as well as costs incurred in relation
to the Market Intelligence strategic review which was undertaken by the
Company.
Refinancing costs represent professional fees incurred in relation to the
refinancing initiative undertaken in July 2014.
4. Dividends
No interim dividend is being proposed (2013: nil).
5. Earnings per share
The calculation of basic and diluted earnings per share is based on the
following data:
Unaudited6 months ended 31 October 2014 Unaudited6 months ended 31 October 2013 Audited12 months ended 30 April 2014
£'000s £'000s £'000s
Earnings for the purpose of basic earnings per share being net profit attributable to equity holders of the parent (206) 985 3,024
Adjustments:
Impact of highlighted items (net of tax)1 2,522 1,350 4,637
Earnings for the purpose of underlying earnings per share 2,316 2,335 7,661
Number of shares:
Weighted average number of ordinary shares for the purpose of basic earnings per share2 75,491,111 74,196,910 74,419,656
Effect of dilutive potential ordinary shares:
Share options 1,750,017 2,226,284 1,325,108
Weighted average number of ordinary shares for the purpose of diluted earnings per share2 77,241,128 76,423,194 75,744,764
Basic earnings per share (0.27)p 1.33p 4.06p
Diluted earnings per share (0.27)p 1.29p 3.99p
Underlying basic earnings per share 3.07p 3.15p 10.29p
Underlying diluted earnings per share 3.00p 3.06p 10.11p
1 Highlighted items (see note 3), stated net of their total tax and
non-controlling interest impact.
2 In the prior year, the weighted average number of shares included
convertible loan notes that were convertible into 13,802,861 ordinary shares.
These were converted to ordinary shares in the prior year.
It is assumed that all contingent deferred consideration will be settled in
cash therefore there is no dilutive effect.
6. Goodwill
£'000
Cost and net book value
At 1 May 2013 47,864
Acquisitions 4,104
Foreign exchange differences (475)
At 31 October 2013 51,493
Adjustments in respect of a pre-acquisition period 34
Acquisitions 4,284
Foreign exchange differences (690)
At 30 April 2014 55,121
Foreign exchange differences 297
At 31 October 2014 55,418
7. Other intangible assets
Capitalised development costs Computer software Purchased intangible assets Total intangible assets
£'000s £'000s £'000s £'000s
Cost
At 1 May 2014 1,948 1,696 21,856 25,500
Additions 268 466 - 734
Foreign exchange - (25) 47 22
At 31 October 2014 2,216 2,137 21,903 26,256
Amortisation
At 1 May 2014 (855) (1,022) (9,197) (11,074)
Charge for the period (116) (110) (999) (1,225)
Foreign exchange - 25 49 74
At 31 October 2014 (971) (1,107) (10,147) (12,225)
Net book value
At 31 October 2014 1,245 1,030 11,756 14,031
At 31 October 2013 567 990 12,103 13,660
At 30 April 2014 1,093 674 12,659 14,426
14,426
The capitalised development costs are internally generated.
Purchased intangible assets consist principally of customer relationships with
a typical useful life of 10 years.
Amortisation is charged within administrative expenses so as to write off the
cost of the intangible assets over their estimated useful lives. The
amortisation of purchased intangible assets is included as a highlighted
administrative expense.
8. Financial liabilities
31 October 2014 31 October 2013 30 April 2014
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