REG - M&C Saatchi PLC - Half-year Report <Origin Href="QuoteRef">SAA.L</Origin> - Part 1
RNS Number : 6355RM&C Saatchi PLC25 September 2017M&C SAATCHI PLC
INTERIM RESULTS
SIX MONTHS ENDED
30 JUNE 2017
25 September 2017
M&C SAATCHI PLC
Interim results for the six months
ended 30 June 2017
25 September 2017
Strong revenue and earnings growth
Financial Highlights 2017
Growth versus 2016
Revenue
121.0m
+ 21% (2016: 100.2m)
Revenue in constant currencies
Like-for-like Revenue
Operating Profit
13.3m
+ 12%
+ 10%
+ 17% (2016: 11.3m)
Profit Before Tax
13.3m
+ 17% (2016: 11.4m)
Earnings
EPS
9.1m
11.94p
+ 18% (2016: 7.7m)
+ 11% (2016: 10.71p)
Dividend
2.13p
+ 15% (2016: 1.85p)
The highlights are headline results, see note on next page for definition.
Operational Highlights
Successful first half with strong revenue momentum and earnings growth
Global Network performed very well:
UK: like-for-like revenues up 5%
Europe: like-for-like revenues up 15%
Middle East and Africa: like-for-like revenues up 9%
Asia and Australasia: like-for-like revenues up 12%
Americas: like-for-like revenues up 14%
Net borrowing of 3.9m with increased working capital pressure (8.5m net borrowing at 30th June 2016)
Interim dividend increased 15% to 2.13p
Commenting on the results, David Kershaw, Chief Executive, said:
"Growth across the Group remains strong with excellent revenue and earnings increases over the first half of 2017.
"In line with our long-term strategy, we have been busy starting new businesses and opening new offices. This is the fuel for growth in years to come.
"The second half has started well with trading in line with expectations."
For further information please call:
M&C Saatchi +44 (0)20-7543-4500
David Kershaw
Tulchan Communications +44 (0)20-7353-4200
Tom Murray
Numis Securities +44 (0)20-7260-1000
Nick Westlake, NOMAD
Charles Farquhar, Corporate Broking
Notes to Editors
Headline results
The term headline is not a defined term in IFRS. The items that are excluded from headline results are the amortisation or impairment of intangible assets (including goodwill and acquired intangibles, but excluding software) acquired in business combinations, changes to deferred and contingent consideration and other acquisition related charges taken to the income statement; impairment of investment in associate; profit/loss on disposal of associates; and income statement impact of put option accounting (whether accounted under IFRS2 or IAS39). See Note 4 for reconciliation between the Group's statutory results and the headline results.
Like-for-like
The like-for-like revenue comparisons referred to in this report are stated after excluding the impact of foreign currency movements and corporate acquisitions and disposals.
Periods compared
This report comments on the unaudited consolidated income statement of M&C Saatchi plc (the "Group") for the six months to 30 June 2017 compared with the unaudited consolidated income statement for the same period in 2016.
SUMMARY OF RESULTS
The first six months of 2017 saw strong revenue momentum and earnings growth. Actual revenues grew by 21%, with constant currency revenues increasing by 12% and like-for-like revenues by 10%. Excluding new start-ups, we returned a headline operating margin of 11.5%, up from 11.3% in 2016. The headline profit before tax advanced 17% to 13.3m and headline net earnings rose 18%. Statutory profit before taxation was down 10% from 10.7m to 9.7m, primarily due to increased charges for put options accounted for as conditional share awards.
UK
We posted an increase in UK revenues of 5%, with our CRM, Mobile, PR and Sport & Entertainment divisions continuing to trade particularly positively.
We returned a good run of account wins across our group of businesses in the first half, including Dreams, Visit Britain, The Body Shop, Costa Coffee and Clinique.
Our PR operation was awarded Outstanding Large Public Relations Consultancy, Mobile won Most Effective Mobile Agency and Sport & Entertainment were Sponsorship Agency of the Year.
In July, Giles Hedger joined as CEO of the London advertising agency, completing the new management team, who have been incentivised under our owner/driver model. The new team is working well and attracting new business.
M&C Saatchi Merlin, our talent management agency which flourished in the first six months, launched a social influencer division in May. We also started Re UK in June, importing our successful Sydney brand design consultancy.
The UK headline operating profit was 6% up on 2016 and the headline operating margin increased to 13.2% compared with 2016's 13.0%. These margins exclude the impact of Group costs.
Europe
We made excellent progress in Europe with like-for-like revenues up 15%. Headline operating profit was up 22%, with a headline operating margin of 15.0% (2016: 16.2%).
Sweden maintains its strong new business performance, winning the property company AMFF and the engineering client PE Consulting.
Both Germany and Italy continue to thrive. Mobile opened in Berlin whilst Italy was appointed by Sisal, a gaming company, in addition to being reappointed by Unicredit. In France, advertising is still slow but our agency did win some Haribo business and the energy company Sowee. Madrid is developing well and we have started a Spanish sponsorship operation.
Middle East and Africa
Like-for-like revenues in the Middle East and Africa were up 9%. Both our UAE and South African offices are rebuilding following account losses last year (Etihad and Edgars). The operating profit was consequently down 8% and the headline operating margin dipped from 7.9% in 2016 to 5.4%.
Our South African offices were appointed by Windhoek and Heineken Export. We also acquired the Johannesburg based Sport & Entertainment company Levergy. UAE recorded some good wins in the period; Aldar Properties, UAE Banks Federation and Unilever's Lipton account. M&C Saatchi PR opened in the UAE and have since won the Abu Dhabi Motors Rolls-Royce account.
Our office in Tel Aviv is building an exciting offer and was appointed by Jaguar.
Asia and Australia
In Asia and Australasia, like-for-like revenues were up 12% on the same period last year. The headline regional operating margin was 12.0% (2016: 11.9%), with the headline operating profit up a remarkable 37% on the same period last year.
Our Australian offices are doing very well and continue to widen their offer. In February, we acquired Bohemia, a media buying and planning operation, which positions us favourably for satisfying the needs of our clients, who are increasingly seeking a closer relationship between their media agency and the content and creative providers. In March, we launched The Source, our successful UK research operation, in Melbourne.
Our associate in China, aeiou, continues to grow positively and was appointed by the car account SGMW and the walnut drinks provider New Farm. Malaysia is still shining and was awarded Social Media Agency of the Year. Singapore is developing encouragingly and won Bridgestone and the Bank of Singapore. We are looking to open a new office in Indonesia before the end of the year.
Americas
Like-for-like revenues increased 14%. There was an 8% increase in operating profit to 3.6m and a headline operating margin dip from 17.1% in 2016 to 14.7%. This was after new start-up costs, which when excluded restates the first half margin at 17.1%, as last year.
Mobile continues to excel and has a very impressive business in the US. LIDA New York opened for business and was appointed by Aston Martin.
Our Los Angeles office made impressive progress and was appointed by Pacific Life. We launched both Sport & Entertainment and Clear there in the first half.
Within a challenging economic environment, trading in Brazil remains difficult. We have opened a new office in Mexico City.
Balance sheet and cash
Our net borrowing at the half-year was 3.9m, which compares with 8.5m of borrowing at the same stage last year. We continue to experience enhanced pressure from clients on payment terms over the last six months, particularly with our growing revenues in the US. We are putting in place strategies to redress this.
Outlook
Growth across the Group remains strong with excellent revenue and earnings increases over the first half of 2017. In line with our long-term strategy, we have been busy starting new businesses and opening new offices.This is the fuel for growth in years to come.The second half has started well with trading in line with expectations.
M&C SAATCHI PLC
UNAUDITED CONSOLIDATED INCOME STATEMENT
ENDED 30 JUNE 2017
Six months
ended
30 June 2017Six months
ended
30 June 2016Year
ended
31 December 2016Note
000
000
000
Billings
261,194
217,222
458,180
Revenue
4
121,035
100,219
225,387
Operating costs
(115,699)
(93,180)
(218,738)
Operating profit
4
5,336
7,039
6,649
Share of results of associates
531
405
1,530
Finance income
6
4,520
3,797
440
Finance costs
7
(710)
(512)
(1,828)
Profit before taxation
4
9,677
10,729
6,791
Taxation on profits
8
(2,023)
(1,667)
(3,451)
Profit for the financial period
7,654
9,062
3,340
Profit attributable to:
Equity shareholders of the Group
4
6,838
8,094
144
Non controlling interest
816
968
3,196
7,654
9,062
3,340
Earnings per share
4
Basic
8.98p
11.24p
0.20p
Diluted
8.74p
11.20p
0.19p
Reconciliation of the above numbers to the Headline numbers, discussed in the front of this report, can be found in note 4 on pages 17 to 19.
M&C SAATCHI PLC
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
ENDED 30 JUNE 2017
Six months
ended
30 June 2017Six months
ended
30 June 2016Year
ended
31 December 2016000
000
000
Profit for the period
7,654
9,062
3,340
Other comprehensive income:
Exchange differences on translating foreign operations
(625)
1,791
6,754
Total other comprehensive income for the period net of tax
(625)
1,791
6,754
Total comprehensive income for the period
7,029
10,853
10,094
Total comprehensive income attributable to:
Equity shareholders of the Group
6,213
9,885
6,898
Non controlling interests
816
968
3,196
7,029
10,853
10,094
M&C SAATCHI PLC
UNAUDITED CONSOLIDATED BALANCE SHEET
AT 30 JUNE 2017
30 June 2017
30 June 2016
31 December 2016
000
000
000
NON CURRENT ASSETS
Intangible assets
52,681
47,546
51,004
Investments in associates
20,175
18,473
19,277
Plant and equipment
11,038
9,619
10,619
Deferred tax assets
3,059
2,609
3,112
Other non current assets
9,018
7,600
7,455
95,971
85,847
91,467
CURRENT ASSETS
Trade and other receivables
107,728
105,673
109,824
Current tax assets
4,164
2,199
1,057
Cash and cash equivalents
31,638
29,269
32,222
143,530
137,141
143,103
CURRENT LIABILITIES
Bank overdraft
-
(2,796)
-
Trade and other payables
(103,012)
(103,277)
(115,886)
Current tax liabilities
(2,482)
(2,885)
(1,186)
Other financial liabilities
(4,310)
(25)
(3,670)
Deferred and contingent consideration
-
-
-
Minority shareholder put options liabilities
(13,855)
(15,594)
(20,216)
(123,659)
(124,577)
(140,958)
Net current Assets
19,871
12,564
2,145
Total assets less current liabilities
115,842
98,411
93,612
Non current liabilities
Deferred tax liabilities
(100)
(36)
(380)
Other financial liabilities
(35,567)
(34,958)
(28,277)
Minority shareholder put options liabilities
(10,529)
(13,698)
(12,950)
Other non current liabilities
(2,390)
(1,630)
(2,608)
(48,586)
(50,322)
(44,215)
Net assets
67,256
48,089
49,397
M&C SAATCHI PLC
UNAUDITED CONSOLIDATED BALANCE SHEET (CONTINUED)
AT 30 JUNE 2017
30 June 2017
30 June 2016
31 December
2016000
000
000
Equity
Share capital
790
737
749
Share premium
31,383
20,332
24,099
Merger reserve
31,592
31,592
31,592
Treasury reserve
(792)
(792)
(792)
Minority interest put option reserve
(14,540)
(22,379)
(20,598)
Non controlling interest acquired
(20,421)
(9,990)
(13,122)
Foreign exchange reserve
4,145
(193)
4,770
Retained earnings
29,380
23,412
15,871
TOTAL SHAREHOLDERS FUNDS
61,537
42,719
42,569
Non Controlling interestS
5,719
5,370
6,828
TOTAL EQUITY
67,256
48,089
49,397
M&C SAATCHI PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
SIX MONTHS ENDED 30 JUNE 2017
2017 Half year
Share
Capital
000Share
premium
000Merger
reserve
000
Treasury
reserve
000MI put option reserve
000Non controlling interest acquired
000Foreign exchange
reserves
000Retained
earnings
000Subtotal
000Non controlling
interest
in equity
000Total
000At 1 January 2017
749
24,099
31,592
(792)
(20,598)
(13,122)
4,770
15,871
42,569
6,828
49,397
Reserve movement for six months ending 30 June 2017
Exercise of put options
16
5,788
-
-
6,060
(7,344)
-
-
4,520
-
4,520
Acquisitions
4
1,496
-
-
-
-
-
-
1,500
(230)
1,270
Disposals
-
-
-
-
-
-
-
(153)
(153)
59
(94)
Exchange rate movements
-
-
-
-
(2)
45
-
-
43
(106)
(63)
Option exercise
21
-
-
-
-
-
-
(21)
-
-
-
Share option charge
-
-
-
-
-
-
-
6,845
6,845
-
6,845
Dividends
-
-
-
-
-
-
-
-
-
(1,648)
(1,648)
Total transactions with owners
41
7,284
-
-
6,058
(7,299)
-
6,671
12,755
(1,925)
10,830
Total comprehensive income for period
-
-
-
-
-
-
(625)
6,838
6,213
816
7,029
At 30 June 2017
790
31,383
31,592
(792)
(14,540)
(20,421)
4,145
29,380
61,537
5,719
67,256
M&C SAATCHI PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
SIX MONTHS ENDED 30 JUNE 2017
2016 Half year
Share
Capital
000Share
premium
000Merger
reserve
000
Treasury
reserve
000MI put option reserve
000Non controlling interest acquired
000Foreign exchange
reserves
000Retained
earnings
000Subtotal
000Non controlling
interest
in equity
000Total
000At 1 January 2016
727
17,338
31,592
(792)
(12,595)
(9,233)
(1,984)
12,673
37,726
4,295
42,021
Reserve movement for six months ending 30 June 2016
Exercise of put options
10
2,994
-
-
551
(502)
-
(6)
3,047
(17)
3,030
Acquisitions
-
-
-
-
(10,248)
-
-
-
(10,248)
1,797
(8,451)
Exchange rate movements
-
-
-
-
(87)
(255)
-
-
(342)
(367)
(709)
Issue of shares to minorities
-
-
-
-
-
-
-
-
-
31
31
Share option charge
-
-
-
-
-
-
-
2,651
2,651
-
2,651
Dividends
-
-
-
-
-
-
-
-
-
(1,337)
(1,337)
Total transactions with owners
10
2,994
-
-
(9,784)
(757)
-
2,645
(4,892)
107
(4,785)
Total comprehensive income for period
-
-
-
-
-
-
1,791
8,094
9,885
968
10,853
At 30 June 2016
737
20,332
31,592
(792)
(22,379)
(9,990)
(193)
23,412
42,719
5,370
48,089
M&C SAATCHI PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
SIX MONTHS ENDED 30 JUNE 2017
2016 Year
Share
Capital
000Share
premium
000Merger
reserve
000
Treasury
reserve
000MI put option reserve
000Non controlling interest acquired
000Foreign exchange
reserves
000Retained
earnings
000Subtotal
000Non controlling
interest
in equity
000Total
000At 1 January 2016
727
17,338
31,592
(792)
(12,595)
(9,233)
(1,984)
12,673
37,726
4,295
42,021
Reserve movement for year ending 31 December 2016
Acquisitions
-
-
-
-
(10,249)
-
-
-
(10,249)
1,919
(8,330)
Acquisitions of minority interest
4
1,364
-
-
-
(1,222)
-
-
146
-
146
Exercise of put options
18
5,397
-
-
2,366
(2,366)
-
-
5,415
(47)
5,368
Disposals
-
-
-
-
-
-
-
-
-
(10)
(10)
Exchange rate movements
-
-
-
-
(120)
(301)
-
-
(421)
627
206
Issue of shares to minorities
-
-
-
-
-
-
-
-
-
14
14
Issue of options
-
-
-
-
-
-
-
515
515
-
515
Share option charge
-
-
-
-
-
-
-
7,997
7,997
-
7,997
Dividends
-
-
-
-
-
-
-
(5,458)
(5,458)
(3,166)
(8,624)
Total transactions with owners
22
6,761
-
-
(8,003)
(3,889)
-
3,054
(2,055)
(663)
(2,718)
Total comprehensive income for the year
-
-
-
-
-
-
6,754
144
6,898
3,196
10,094
At 31 December 2016
749
24,099
31,592
(792)
(20,598)
(13,122)
4,770
15,871
42,569
6,828
49,397
M&C SAATCHI PLC
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
SIX MONTHS ENDED 30 JUNE 2017
Six months ended
30 June 2017Six months ended
30 June 2016Year Ended
31 December 2016Notes
000
000
000
Revenue
121,035
100,219
225,387
Operating cost
(115,699)
(93,180)
(218,738)
Operating Profit
5,336
7,039
6,649
Adjustments for:
Depreciation of plant and equipment
1,348
1,159
2,668
Losses on sale of plant and equipment
27
36
542
Losses on sale of software intangibles
-
-
10
Fair value revaluation of associate on step acquisition
-
-
859
Impairment and amortisation on acquired intangible assets
737
1,638
2,324
Impairment of associate and investments
-
-
4,389
Amortisation of capitalised software intangible assets
44
60
354
Equity settled share based payment expenses
6,845
2,651
7,997
Operating cash flow before movements in working capital and provisions
14,337
12,583
25,792
Decrease/(Increase) in trade and other receivables
1,980
(1,449)
(22,334)
(Increase)/Decrease in trade and other payables
(14,195)
(8,781)
19,342
Cash generated from operations
2,122
2,353
22,800
Tax paid
(3,881)
(2,901)
(4,073)
Net cash (outflow)/inflow from operating activities
(1,759)
(548)
18,727
Investing activities
Acquisitions net of cash acquired
10
(834)
(11,033)
(12,822)
Disposal of subsidiaries net of cash divested
-
-
(263)
Acquisition of investments
(1,140)
(581)
(1,056)
Proceeds from sale of plant and equipment
4
8
32
Purchase of intangibles
-
-
-
Purchase of plant and equipment
(773)
(1,495)
(3,873)
Purchase of capitalised software
(85)
(156)
(34)
Dividend from associates
-
-
177
Interest earned
166
169
440
Net cash consumed by investing activities
(2,662)
(13,088)
(17,399)
Net cash consumed by operating and investing activities
(4,421)
(13,636)
1,328
Six months ended
30 June 2017Six months ended
30 June 2016Year Ended
31 December
2016000
000
000
Net cash consumed by operating and investing activities
(4,421)
(13,636)
1,328
Dividends paid to equity holders of the Company
-
-
(5,458)
Dividends paid to non controlling interest
(1,648)
(1,337)
(3,166)
Issue of shares to minorities
-
-
514
Repayment of finance leases
(15)
(21)
(36)
Inception of invoice discounting
291
-
4,455
Repayment of invoice discounting
-
(3,130)
(3,943)
Inception of bank loans
6,315
10,646
11,433
Repayment of bank loans
(184)
-
(7,191)
Interest paid
(709)
(510)
(1,230)
Net cash generated / (consumed) from financing activities
4,050
5,648
(4,622)
Net decrease in cash and cash equivalents
(371)
(7,988)
(3,294)
Effect of exchange rate changes
(213)
2,215
3,270
Cash and cash equivalents at the beginning of the period
32,222
32,246
32,246
Cash and cash equivalents at the end of the period
31,638
26,473
32,222
1. GENERAL INFORMATION
The Company is a public limited company incorporated and domiciled in the UK. The address of its registered office is 36 Golden Square, London W1F 9EE.
The Company has its primary listing on the AIM market of the London Stock Exchange.
This consolidated half-yearly financial information was approved for issue on 22 September 2017.
These results do not constitute the Group's statutory accounts. The information presented in relation to 31 December 2016 is extracted from the statutory financial statements for the year then ended and which have been delivered to the Registrar of Companies. The auditor's report on the statutory financial statements for the year ended 31 December 2016 was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report(s) and did not contain statements under Section 498 (2) or (3) of the Companies Act 2006.
2. Basis of preparation
This consolidated half-yearly financial information for the half-year ended 30 June 2017 has been prepared in accordance with the AIM Rules for companies. The half-yearly consolidated financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2016.
3. Accounting policies
The financial information in these interim results is that of the holding company and all of its subsidiaries (the Group). It has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards as adopted for use in the EU (IFRSs). The accounting policies applied by the Group in this financial information are the same as those applied by the Group in its financial statements for the year ended 31 December 2016 and which will form the basis of the 2017 financial statements.
4. Earnings per share and reconciliation between headline and statutory results
The analysis below provides a reconciliation between the Group's statutory results and the headline results.
Six Months to
30 June 2017
Reported results
000Amortisation
of acquired intangibles000
Allocations and dividend paid to conditional share awards
Fair value adjustments to minority put option liabilities
000Headline
results000
Revenue
121,035
-
-
-
121,035
Operating profit
5,336
737
332
6,845
13,250
Share of results of associates & JV
531
-
-
-
531
Finance income
4,520
-
-
(4,355)
165
Finance cost
(710)
-
-
-
(710)
Profit before taxation
9,677
737
332
2,490
13,236
Taxation
(2,023)
(245)
-
(600)
(2,868)
Profit for the period
7,654
492
332
1,890
10,368
Non controlling interests
(816)
(135)
(332)
-
(1,283)
Profit attributable to equity holders of the Group
6,838
357
-
1,890
9,085
BASIC EARNINGS PER SHARE
Weighted average number of shares (Thousands)
76,115
76,115
Basic EPS
8.98p
11.94p
DILUTED EARNINGS PER SHARE
Weighted average number of shares (Thousands) as above
76,115
76,115
Add
- Conditional shares
2,139
2,139
Total
78,254
78,254
Diluted earnings per share
8.74p
11.61p
The Directors believe that the headline results and headline earnings per share provide additional useful information onthe underlying performance. The headline result is used for internal performance management, calculating the value of subsidiary convertible shares and minority interest put options. The term headline is not a defined term in IFRS.
The items that are excluded from headline results are the amortisation or impairment of intangible assets (including goodwill and acquired intangibles, but excluding software) acquired in business combinations, changes to deferred and contingent consideration and other acquisition related charges taken to the income statement; impairment of investment in associates and investments; profit and loss on disposal of associates; and the income statement impact of put option accounting and share based payment charges.
Six Months to
30 June 2016
Reported results
000Amortisation
of acquired intangibles000
Allocations and dividend paid to conditional share awards
Fair value adjustments to minority put option liabilities
000Headline
results000
Revenue
100,219
-
-
100,219
Operating profit
7,039
1,637
2,651
11,327
Share of results of associates & JV
405
-
-
405
Finance income
3,797
-
(3,628)
169
Finance cost
(512)
-
-
(512)
Profit before taxation
10,729
1,637
(977)
11,389
Taxation
(1,667)
(645)
-
(2,312)
Profit for the period
9,062
992
(977)
9,077
Non controlling interests
(968)
(403)
-
(1,371)
Profit attributable to equity holders of the Group
8,094
589
(977)
7,706
BASIC EARNINGS PER SHARE
Weighted average number of shares (Thousands)
71,982
71,982
Basic EPS
11.24p
10.71p
DILUTED EARNINGS PER SHARE
Weighted average number of shares (Thousands) as above
71,982
71,982
Add
- Conditional shares
300
300
Total
72,282
72,282
Diluted earnings per share
11.20p
10.66p
Year ended
31 December 2016
Reported results
000Amortisation
of acquired intangibles000
Impairment of associate and provision against investment
000
Revaluation of an associate on acquisition
000Acquisition related remuneration
000Put option accounting
000Headline
results000
Revenue
225,387
-
-
-
-
-
225,387
Operating profit
6,649
2,324
4,389
859
819
7,997
23,037
Share of results of associates & JV
1,530
-
-
-
-
-
1,530
Finance income
440
-
-
-
-
-
440
Finance cost
(1,828)
-
-
-
-
597
(1,231)
Profit before taxation
6,791
2,324
4,389
859
819
8,594
23,776
Taxation
(3,451)
(659)
-
-
-
-
(4,110)
Profit for the year
3,340
1,665
4,389
859
819
8,594
19,666
Non controlling interests
(3,196)
(256)
-
-
(540)
(251)
(4,243)
Profit attributable to equity holders of the Group
144
1,409
4,389
859
279
8,343
15,423
BASIC EARNINGS PER SHARE
Weighted average number of shares (Thousands)
73,193
73,193
Basic EPS
0.20p
21.07p
DILUTED EARNINGS PER SHARE
Weighted average number of shares (Thousands) as above
73,193
71,319
Add
- Conditional shares
1,867
1,867
Total
75,060
75,060
Diluted earnings per share
0.19p
20.55p
5. SEGMENTAL INFORMATION
This segmental information is reconciled to the statutory results in Note 4.
Six months to
30 June 2017UK
000
Europe
000
Middle East and Africa
000Asia and Australia
000
Americas
000
Total
000
Revenue
42,553
16,195
6,352
31,102
24,833
121,035
Operating profit excludingGroup costs
5,612
2,433
341
3,717
3,642
15,745
Group costs
(2,247)
(44)
-
(171)
(33)
(2,495)
Operating profit
3,365
2,389
341
3,546
3,609
13,250
Share of results of associates
and JV332
6
-
193
-
531
Financial income and cost
(227)
(35)
24
27
(334)
(545)
Profit before taxation
3,470
2,360
365
3,766
3,275
13,236
Taxation
(393)
(958)
21
(1,048)
(490)
(2,868)
Profit for the period
3,077
1,402
386
2,718
2,785
10,368
Non controlling interests
(642)
(213)
25
(436)
(17)
(1,283)
Profit attributable toequity shareholders
of the Group2,435
1,189
411
2,282
2,768
9,085
HEADLINE BASIC EPS
11.94p
Non cash costs included in headline operating profit:
Depreciation & Amortisation of software
(552)
(116)
(176)
(305)
(243)
(1,392)
Share option charges
-
-
-
-
-
-
OFFICE LOCATION
London
Milan
Berlin
Madrid
Geneva
Stockholm
Moscow
Istanbul
Johannesburg
Cape Town
Abu Dhabi
Dubai
Beirut
Tel Aviv
Sydney
Melbourne
New Delhi
Bangalore
Islamabad
Hong Kong
Shanghai
Tokyo
Kuala Lumpur
Bangkok
Singapore
New York
Chicago
Los Angeles
San Francisco
So Paulo
Six months to
30 June 2016UK
000
Europe
000
Middle East and Africa
000Asia and Australia
000
Americas
000
Total
000
Revenue
40,595
12,371
4,725
22,787
19,741
100,219
Operating profit excludingGroup costs
5,270
1,999
371
2,720
3,378
13,738
Group costs
(2,188)
(44)
-
(160)
(19)
(2,411)
Operating profit
3,082
1,955
371
2,560
3,359
11,327
Share of results of associates
and JV425
20
-
25
(65)
405
Financial income and cost
(142)
(22)
23
38
(240)
(343)
Profit before taxation
3,365
1,953
394
2,623
3,054
11,389
Taxation
(685)
(661)
(211)
(722)
(33)
(2,312)
Profit for the period
2,680
1,292
183
1,901
3,021
9,077
Non controlling interests
(404)
(294)
(61)
(326)
(286)
(1,371)
Profit attributable toequity shareholders
of the Group2,276
998
122
1,575
2,735
7,706
HEADLINE BASIC EPS
10.71p
Non cash costs included in headline operating profit:
Depreciation & Amortisation of software
(633)
(86)
(77)
(168)
(255)
(1,219)
Share option charges
-
-
-
-
-
-
OFFICE LOCATION
London
Milan
Berlin
Madrid
Geneva
Stockholm
Moscow
Istanbul
Johannesburg
Cape Town
Abu Dhabi
Dubai
Beirut
Tel Aviv
Sydney
Melbourne
New Delhi
Islamabad
Hong Kong
Shanghai
Tokyo
Kuala Lumpur
Bangkok
Singapore
New York
Chicago
Los Angeles
San Francisco
So Paulo
Year ended
31 December 2016UK
000
Europe
000
Middle East and Africa
000Asia and Australia
000
Americas
000
Total
000
Revenue
88,504
26,685
11,673
52,531
45,994
225,387
Operating profit excludingGroup costs
10,398
4,028
1,085
5,754
7,119
28,384
Group costs
(4,879)
(87)
-
(343)
(38)
(5,347)
Operating profit
5,519
3,941
1,085
5,411
7,081
23,037
Share of results of associates
and JV1,323
(3)
-
290
(80)
1,530
Financial income and cost
(343)
(43)
43
124
(572)
(791)
Profit before taxation
6,499
3,895
1,128
5,825
6,429
23,776
Taxation
(811)
(1,350)
(362)
(1,458)
(129)
(4,110)
Profit for the year
5,688
2,545
766
4,367
6,300
19,666
Non controlling interests
(1,320)
(494)
(326)
(844)
(1,259)
(4,243)
Profit attributable toequity shareholders
of the Group4,368
2,051
440
3,523
5,041
15,423
HEADLINE BASIC EPS
21.07p
Non cash costs included in operating profit:
Depreciation & Amortisation of software
(1,632)
(304)
(194)
(342)
(550)
(3,022)
Share option charges
-
-
-
-
-
-
OFFICE LOCATION
London
Milan
Berlin
Madrid
Geneva
Stockholm
Moscow
Istanbul
Johannesburg
Cape Town
Abu Dhabi
Dubai
Beirut
Tel Aviv
Sydney
Melbourne
New Delhi
Bangalore
Islamabad
Hong Kong
Shanghai
Tokyo
Kuala Lumpur
Bangkok
Singapore
New York
Chicago
Los Angeles
San Francisco
So Paulo
6. Finance Income
Six months
ended
30 June 2017Six months
ended
30 June 2016Year
ended
31 December
2016000
000
000
Bank interest receivable
140
92
338
Other interest receivable
25
77
102
Total finance income
165
169
440
Fair value adjustments to minority shareholder put option liabilities
4,355
3,628
-
Total
4,520
3,797
440
7. Finance COsts
Six months
ended
30 June 2017Six months
ended
30 June 2016Year
ended
31 December
2016000
000
000
Finance costs
Bank interest payable
(700)
(510)
(1,227)
Other interest payable
(10)
(2)
(4)
Total interest payable
(710)
(512)
(1,231)
Fair value adjustments to minority shareholder put option liabilities
-
-
(597)
Total
(710)
(512)
(1,828)
8. Taxation
Income tax expenses are recognised based on management's estimate of the average annual headline income tax expected for the full financial year.
The estimated headline effective annual tax rate (excluding associates) used for the period to 30 June 2017 is 21.6% (30 June 2016: 21.2%). The increase in the headline tax rate is due to increased profits made in USA.
The estimated effective annual tax rate for the period to 30 June 2017 is 20.9% (30 June 2016: 15.5%). The difference between the headline and statutory tax rates is caused by a difference in the profit before tax due to the impact of fair value adjustments to minority shareholder put option liabilities that have no effect on the tax charge.
9. Dividends
Six months
ended
30 June 2017Six months
ended
30 June 2016Year
ended
31 December
2016000
000
000
2015 final dividend 5.60p (2014: 4.87pp)
-
-
4,084
2016 interim dividend 1.85p (2015:1.61p)
-
-
1,374
-
-
5,458
The directors propose an interim dividend of 2.13p per share (2016: 1.85p per share) payable on 10 November 2017 to shareholders who are on the register at 27 October 2017. This interim dividend, amounting to 1,711k (2016: 1,374k) has not been recognised as a liability in this half-yearly financial report.
10. Cash consumed by acquisitions
Six months
ended
30 June 2017Six months
ended
30 June 2016Year
ended
31 December
2016000
000
000
Acquisitions
Initial cash consideration paid
(1,375)
(14,476)
(15,717)
Cash and cash equivalents acquired
541
3,443
2,895
(834)
(11,033)
(12,822)
This information is provided by RNSThe company news service from the London Stock ExchangeENDIR UORARBNAKUUR
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