REG - Rightmove Plc - Half-year Report
28/07/2023 07:00
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RNS Number : 4843H Rightmove Plc 28 July 2023
HALF YEAR RESULTS ANNOUNCEMENT FOR RIGHTMOVE PLC - SIX MONTHS ENDED 30 JUNE
2023
Rightmove plc, the UK's largest property portal, today announces its unaudited
results for the six months ended 30 June 2023.
http://www.rns-pdf.londonstockexchange.com/rns/4843H_1-2023-7-27.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/4843H_1-2023-7-27.pdf)
A strong financial performance, driven by the resilient and growing customer
demand for our products and services
Financial Highlights H1 2023 H1 2022 Change vs 2022 % Change vs 2022
Revenue £179.5m £162.7m £16.8m 10%
Operating profit £129.5m £121.3m £8.2m 7%
Underlying operating profit((1)) £133.2m £122.4m £10.8m 9%
Interim dividend 3.6p 3.3p 0.3p 9%
Basic earnings per share 12.1p 11.7p 0.4p 3%
Underlying earnings per share((2)) 12.5p 11.8p 0.7p 6%
· Revenue up £16.8m/10% to £179.5m, as customers increased their use of
our digital products and continued to upgrade their packages: the highest
revenue growth in a first half period since 2018((3))
· Operating profit of £129.5m, up 7% (2022: £121.3m)
· Underlying operating profit((1)) of £133.2m, up 9% (2022: £122.4m)
· Basic earnings per share up 3% to 12.1p (2022: 11.7p); underlying
earnings per share((2)) up 6% to 12.5p (2022: 11.8p) - lower growth reflects
the impact of the corporation tax increase in 2023
· Interim dividend up 9% to 3.6p per ordinary share (2022: 3.3p)
· £97.6m of returns to shareholders through share buybacks and
dividends in the first half of 2023 (2022: £100.3m); 10 million shares (1.2%
of outstanding share capital) cancelled in the first half of the year (2022:
9.8 million)
· Cash and cash equivalents, including money market deposits, of £43.2m
(31 December 2022: £40.1m)
Operational highlights
· Average Revenue Per Advertiser (ARPA) ((4)) up 9% to £1,411 per month
(30 June 2022: £1,290)
· Highest New Homes ARPA growth in any reporting period to date, up
£330 (23%), and strong Agency ARPA growth, up £79 (6%), both driven by
increased product and package purchases and customer contract renewals
· Membership numbers stable: up 1%/102 since the start of the year at
19,116 (Dec 22: 19,014), with 16,093 Agency branches and 3,023 New Homes
developments (31 December 2022: 15,932 and 3,082)
· Time on site averaged 1.4 billion((5)) minutes per month over the
period (2022: 1.5 billion), reflecting 2023's slower property market; 27%
above pre- pandemic levels (June 2019: 1.1 billion)
· Strong market share continues at 86%((5)) (2022: 85%) as Rightmove
remains the trusted site that home-hunters turn to first to search for
properties and to inform themselves about the housing market
· Penetration of the top Estate Agency package, Optimiser, increased to
36% (Dec 22: 34%) and significant upgrades to the New Homes top package,
Advanced, up to 49% (Dec 22: 42%)
· Continued product innovation, including: the launch of Joint
Application Mortgages in Principle; Enquiry Manager - our qualification
product for Lettings customers; and Track A Property for consumers
· Other business units, now representing 10% of revenues, have grown
strongly, up 11%
· SBTi targets validated and renewed focus on green homes initiatives;
the second edition of our annual Greener Homes report is published today.
(1) Underlying operating profit is operating profit before the
share-based payments charges (including the related NI charge)
(2) Underlying EPS is profit for the year before share-based payments
charges (including the related National Insurance and appropriate tax
adjustments), divided by the weighted average number of ordinary shares
outstanding in the period
(3) Excluding the 58% growth in H1 2021 following covid discounts in
2020
(4) Average Revenue per Advertiser (ARPA) is calculated as revenue
from Agency and New Homes advertisers in a given month divided by the total
number of advertisers during the month, measured as a monthly average over the
six-month period.
(5) Source: Comscore, June 2023
Summary and Outlook
The strength and resilience of Rightmove's business has remained apparent
throughout the first half of 2023. Agents and developers have continued to
use our products to win new mandates and to drive their businesses forward,
and home-movers have continued to trust our sites to allow them to see the
whole of the property market, helping them to make informed decisions. This
has allowed us to deliver strong results, despite the backdrop of higher
mortgage rates and the increased cost of living.
ARPA growth was strong in the first half: new homes developers used our
Advanced Development Listing and Native Search Adverts products to market
their developments, while our agent customers used products such as Featured
Agent and Sold By Me to differentiate their brands on our sites to win new
vendor mandates. As a result, first half ARPA growth has given us real
momentum to deliver full year ARPA towards the top end of our previous
guidance range of £95-£105.
Consumers turned to our Mortgage in Principle journey in increasing numbers
during the first half to help them to understand their borrowing capacity and
mortgage affordability, especially amidst the prevailing interest rate
uncertainty. We expect this to continue in the second half and therefore for
the revenues in this area of our business, which we earn in partnership with
Nationwide, to increase on 2022's revenues. We expect the remaining Other
business units to continue to perform in line with first-half performance and
to maintain their year on year growth for the full year.
Disciplined cost management remains a key feature of our business model.
Underlying operating margin for the reporting period was 74%. We expect
costs to be slightly higher in the second half, as is the usual weighting
across the year, and expect a full year operating margin of 73%, in line with
previous guidance.
Our performance in the year to date, the clear value of our products to
customers and consumers alike, and the outlook for the second half, mean the
Board is confident that the Group will deliver in line with its previous
expectations for the full year.
As we look further out, it is clear there are significant opportunities
available across all our business units. To maximise our ability to take
advantage of these opportunities, we will modestly increase our investment in
the business to drive organic growth, while maintaining an underlying profit
margin of 70 - 72%. We expect this investment to result in double digit
revenue and profit growth in the medium term and beyond.
We will host an Investor Day at our London offices on Monday 27 November 2023,
where we will set out our strategy for medium term investment to accelerate
growth. Further details will be issued closer to the date.
Johan Svanstrom, Chief Executive Officer, said:
"This has been another period of strong financial and strategic progress for
Rightmove. These results clearly illustrate that Rightmove continues to be the
property portal that consumers turn to first and engage with the most, and
that our customers continue to use our innovative products and services to
support their businesses in both slower and faster housing markets. Our
performance against the backdrop of a challenging interest rate environment
demonstrates yet again that Rightmove isn't materially impacted by the
property cycle.
"I have been very impressed by what I have seen in my first five months as
Rightmove's CEO and would like to extend my thanks to the team for delivering
so strongly. This is a business which has performed consistently well over an
extended time-period, and I am excited by the growth opportunities that I see
over the long term in the wider UK property market. From here, our aim is to
expand our platform, our products and our data, for both customers and
consumers, to further digitise the sector, both in our core business and in
newer growth areas. We also want to play an active role in facilitating the
much-needed green transition of the real estate market, leveraging our vast
pool of data and insight to do so."
The Company will publish a pre-recorded audio results presentation at 7.00am
today, followed by an audio Q&A session for analysts and investors at
9.30am with Johan Svanstrom, CEO, and Alison Dolan, CFO.
Enquiries: Investor Relations
Investor.Relations@rightmove.co.uk
(mailto:Investor.Relations@rightmove.co.uk)
Powerscourt
rightmove@powerscourt-group.com (mailto:rightmove@powerscourt-group.com)
Half Year Statement
Making home-moving easier in the UK remains at the heart of Rightmove's
purpose, and we continue to create a more efficient property marketplace for
both home-movers and our customers.
Despite a more uncertain macro backdrop, the housing market remained
reasonably steady in the first six months of 2023, with 0.5m sales
transactions taking place (H1 2022: 0.6 million), a number in line with the
stable housing market of 2019 (H1 2019: 0.5 million). Rightmove remained the
place home hunters turned to first to help them with their searches - our
market share increased by 1% point to 86%((1)) in the first half (June 22:
85%) and Rightmove remains the only place to find virtually the whole of the
UK property market in one place.
Both estate agents and new homes developers are relentlessly focused on
winning new business and relied on our sites and our products to provide them
with marketing solutions and lead-generation opportunities. As a result,
revenues increased by 10% on the same period in 2022; average spend per
advertiser (ARPA) ((2)) grew by 9% to £1,411 (June 2022: £1,290) and our
customer base remained steady (total membership up 1% to 19,116 (June 2022:
18,934; Dec 2022 19,014)).
Estate agents' investment in our packages and products resulted in Agency
revenue and Agency ARPA((3)) both growing by 6%, with ARPA increasing by £79
to £1,341 (June 22: £1,262). Over 36% of our agent customers are now on
the top package, Optimiser, (June 22: 34%), where products such as Sold By Me
and vendor-lead products, such as Rightmove Discover and Local Valuation
Alert, were the fastest growing products in the first half of the year.
New homes developers continued to face long lead times to sale and increased
competition from the resale market, but carried on using our products to help
to secure sales at the right price. Our Advanced Development Listing product
saw uptake increase 16% during the half, while uptake of Native Search Adverts
increased 62%. As a result, New Homes revenues grew by 32% compared to the
first half of 2022 and ARPA ((4)) grew by a record £330/23% to £1,776 (June
2022: £1,446).
We have increased the functionality of the Lead 2 Keys rental flow, enabling
agents to pre-qualify leads via the Enquiry Manager efficiency tool - helping
with lettings agents' most significant current issue of managing the sheer
numbers of leads per available property. Later in the year, we will launch a
new top package for estate agents, Optimiser Edge, with two exclusive
products: Native Search Ads and the Premium Best Price Guide. We will also
fully roll out our new Track A Property product in the fourth quarter to
enable consumers to monitor the value of their properties.
Our Other business units also grew, by 11% in aggregate. We are
particularly excited by the growth opportunities in Commercial Real Estate,
Data Services and Mortgages, where we believe the addressable markets and
revenue opportunities will allow us to accelerate the growth rate in these
businesses and drive incremental revenue and profit over the medium term.
Commercial Real Estate revenue grew by 14%, driven by higher customer numbers,
an ARPA which increased due to higher spend on new products (multi-channel
campaigns and banner adverts), our new flex office proposition and contract
renewals. Data Services continued to grow its customer base but the impact
of this was largely offset by the effects of the macro uncertainty, which
reduced volumes and transactional revenue from the Surveyor Comparative Tool
(SCT) and Automated Valuation Model (AVM). Mortgages, still in its infancy
as a business unit, grew by c150% as the number of mortgages in principle
completed on our site increased materially on the comparable period.
In addition to maximising returns for all our stakeholders, caring for the
environment remains high on our strategic agenda. Our ability to reach the
UK's largest property market audience gives us a unique opportunity to
contribute to the reduction of the UK's carbon footprint, as well as focusing
on our own operational efficiency and emissions reductions plans. We believe
that Rightmove has an important role to play in helping the UK to reach its
net zero targets by 2050, and in helping home hunters to understand a
property's green credentials through providing the relevant data and tools on
our sites. Our plans for green digital innovation include enhancing property
details and search criteria on our platforms to feature environmental
information, including energy efficiency, and providing proprietary data
analysis and insights into the value of sustainable home improvements.
Today, we are also publishing the second edition of our annual Greener Homes
report which contains a range of findings, suggestions and insights on the
incentives that are needed to help homeowners and landlords make green
improvements. Among other data points, the report found that if home
improvements carry on at the present rate it would take 43 years for 100% of
the houses that are currently for sale across Great Britain to reach an EPC
rating of A-C, and 31 years for houses that are currently available to rent.
We see ourselves as having a key role to play in helping accelerate this
process.
None of our achievements would be possible without the hard work, dedication
and enthusiasm of our fantastic team of Rightmovers. Ensuring we have an
inclusive and supportive environment, where everyone has the chance to build a
career, remains central to our culture. During the first six months of the
year, we have enhanced our employee policies, continued with our Thrive
well-being development programmes and rolled out conscious inclusion training
to all employees.
(1) Source: Comscore June 23
(2) Average Revenue per Advertiser (ARPA) is calculated as revenue from
Agency and New Homes advertisers in a given month divided by the total number
of advertisers during the month, measured as a monthly average over the
six-month period.
(3) Agency ARPA is calculated as revenue from Agency advertisers in a
given month divided by the total number of advertisers during the month,
measured as a monthly average over the year
(4) New Homes ARPA is calculated as revenue from New Homes developers
in a given month divided by the total number of developers during the month,
measured as a monthly average over the year
Financial performance
Revenue
Revenue increased by £16.8m/10% year on year to £179.5m (2022: £162.7m) as
customers invested in our products and packages to help them to win business
in a more uncertain market, increasing ARPA by 9% during the first half of
2023.
H1 2023 H1 2022 Change vs 2022 £m Change vs 2022 %
£m
£m
Agency 129.4 122.2 7.2 6%
New Homes 32.6 24.7 7.9 32%
Other 17.5 15.8 1.7 11%
Total revenue 179.5 162.7 16.8 10%
30 June 2023 31 Dec 2022 30 June 2022 Change vs Dec 2022 Change vs Dec 2022 %
Agency branches 16,093 15,932 16,116 161 1%
New Homes devs 3,023 3,082 2,818 (59) (2%)
Total membership 19,116 19,014 18,934 102 1%
Agency revenue increased by £7.2m year on year to £129.4m, as agents
continued to purchase our products and packages and we secured core membership
price increases through customers' contract renewal processes. Agency
ARPA((1)) increased by £79/6% to £1,341 (June 2022: £1,262) and Agency
customer numbers were up 1% on 31 December 2022, ending the first half of the
year at 16,093 branches.
New homes revenue increased by £7.9m to £32.6m. The challenging market meant
that the new homes' developers had to continue to invest to secure sales at
the right price. This was reflected in the increased upgrades to the new top
package, incremental purchasing of products and successful contract renewals.
New Homes ARPA((2)) increased by £330/23% to £1,776 per development per
month (June 2022: £1,446). New Homes developments listings at 3,023 were
broadly flat on December.
Other revenue increased by £1.7m to £17.5m driven by all business units.
Commercial, Overseas and Mortgages all saw double digit percentage growth,
with Commercial real estate growing by 14% year on year.
Operating profit
Operating profit increased by £8.2m to £129.5m (H1 2022: £121.3m), with an
operating profit margin of 72% (H1 2022: 75%).
Underlying operating profit((4)) increased by £10.8m/9% to £133.2m, with an
underlying operating profit margin((5)) of 74% (June 2022: 75%).
H1 2023 H1 2022 Change vs 2022 £m Change vs 2022 %
£m
£m
Revenue 179.5 162.7 16.8 10%
Underlying costs((3)) (46.3) (40.2) (6.1) 15%
Underlying operating profit((4)) 133.2 122.4 10.8 9%
Underlying operating margin((5)) 74% 75%
Share based incentive costs (3.7) (1.1) (2.6) (236%)
Operating profit 129.5 121.3 8.2 7%
Operating Margin 72% 75%
Costs increased by £8.7m to £50.0m (2022: £41.3m), which included
share-based payments charges and related national insurance charges of £3.7m
(2022: £1.1m). Excluding this, underlying operating costs((3)) increased
£6.1m/15% to £46.3m (2022: £40.2m).
The increase in underlying cost((3)) is largely due to higher salary costs (an
increase of £4.3m), reflecting ongoing investment in our product development
and sales teams and overall inflationary pay rises.
Earnings per share (EPS)
Basic EPS increased by 3% to 12.1p (2022: 11.7p), driven by the increase in
profit and the share buyback programme, which reduced the weighted average
number of ordinary shares in issue to 819.8m (2022: 841.5m)
Underlying EPS((6)) (based on underlying profit) increased by 6% to 12.5p
(2022: 11.8p).
The lower growth in EPS is due to the impact of the increased tax rate from
April 2023 (from 19% to 25% giving a standard effective rate in 2023 of
23.5%). Had the tax rate remained at 19% the basic EPS would have been 12.9p
(up 10%) and underlying EPS 13.2p (up 12%).
Summary consolidated statement of financial position
30 June 31 December 2022 30 June Change from
2023 £m 2022 Dec 2022
£m £m £m
Property, plant and equipment 9.2 10.4 11.5 (1.2)
Intangible assets 22.0 22.1 21.7 (0.1)
Deferred tax asset 2.1 1.5 1.5 0.6
Trade and other receivables 31.8 26.6 22.6 5.2
Contract assets 0.8 0.5 0.4 0.3
Income tax receivable - 0.6 0.9 (0.6)
Cash including money market deposits 43.2 40.1 43.9 3.1
Trade and other payables (23.9) (20.9) (20.1) (3.0)
Contract liabilities (2.0) (2.3) (2.2) 0.3
Income tax payable (0.7) - - (0.7)
Lease liabilities (8.3) (9.6) (10.6) 1.3
Provisions (0.8) (0.8) (0.7) (0.0)
Net assets 73.4 68.2 68.9 5.2
Rightmove's balance sheet as at 30 June 2023 shows total equity of £73.4m
(31 December 2022: £68.2m) and reflects the strong trading position and
returns to shareholders.
Trade receivables of £24.7m, included within trade and other receivables, are
up on December 2022 (£21.8m) reflecting higher sales in Q2 2023 than in Q4
2022. Trade and other payables increased due to timing of accruals at half
year. Trade payments continue to be made in line with contractually agreed
terms.
Cash flow and liquidity
Rightmove remained debt-free during the period and cash generation remained
strong, with cash generated from
operating activities of £131.7m (30 June 2022: £122.2m) and operating cash
conversion in excess of 100%((7)).
The closing Group cash balance at 30 June 2023, including money market
deposits, was £43.2m (31 December 2022: £40.1m). Cash remains invested in
short-term, easily accessible money market deposits, including in a green
money-market fund.
The Group bought back and cancelled 10.0m ordinary shares during the period
(2022: 9.8m), at a cost of £55.0m (excluding expenses) as part of its ongoing
share buyback programme (2022: £60.0m). Dividends totalling £42.6m in
relation to the final 2022 dividend were also paid during the year (2022:
£40.3m).
Shareholder returns
Consistent with the policy of growing dividends broadly in line with the
increase in Underlying EPS, the Directors are recommending an interim dividend
of 3.6p per ordinary share, which will be paid on 27 October 2023 to all
shareholders on the register as at 29 September 2023. We intend to continue
the share buyback programme in the second half of 2023.
Alison Dolan
Chief Financial Officer
(1) Agency ARPA is calculated as revenue from Agency advertisers in a
given month divided by the total number of advertisers during the month,
measured as a monthly average over the year
(2) New Homes ARPA is calculated as revenue from New Homes developers
in a given month divided by the total number of developers during the month,
measured as a monthly average over the year
(3) Underlying operating costs are defined as administrative expenses
before share-based payments charges (including the related National Insurance)
(4) Underlying operating profit is defined as operating profit before
share-based payments charges (including the related National Insurance)
(5) Underlying operating margin is defined as the underlying
operating profit as a percentage of revenue
(6) Underlying EPS is defined as profit for the year before share-based
payments charges (including the related National Insurance and appropriate tax
adjustments), divided by the weighted average number of ordinary shares in
issue for the period
(7) Cash generated from operating activities of £131.7m (2022:
£122.1m) compared to operating profit as reported in the income statement of
£129.5m (2022: £121.3m).
Principal Risks and Uncertainties
The Board and Audit Committee regularly review the principal risks to our
business, our position against our risk appetite, and monitor progress to
manage risks within that risk appetite.
Consideration is given to emerging risks and to any changes in the internal or
external environment that could impact our strategy and how we operate. We
regularly update our risks and responses where required.
The Board and Audit Committee have reviewed the principal risks and
uncertainties faced by the Group. The risks set out in the 2022 Annual Report
remain relevant for 2023 and the Board have since included 'regulatory risks'
as a principal risk faced by the Group.
Risk Overview/Description
Macroeconomic environment The Group derives almost all its revenues from the UK and is therefore
dependent on the macroeconomic conditions surrounding the UK housing market
and consumer confidence, which impacts property transaction levels.
Competitive environment The Group operates in a competitive marketplace, with attractive margins and
low barriers to entry, which may result in increased competition from existing
competitors, or new entrants targeting the Group's primary revenue markets.
New or disruptive technologies and changing consumer behaviours Rightmove operates in a fast-moving online marketplace. Failure to innovate or
to adopt new technologies, or failure to adapt to changing customer business
models and evolving consumer behaviour may impact the Group's ability to offer
the best products and services to its advertisers and the best consumer
experience.
Cyber security and IT systems The Group has a high dependency on technology and internal IT systems. In
today's digital world there are increased risks associated with external
cyber-attacks which could result in an inability to operate our platforms. A
security breach, such as corruption or loss of key data, may disrupt the
efficiency and functioning of the Group's day-to-day operations.
Regulatory risks The Group operates in an increasingly complex regulatory environment. There is
a risk that the Group fails to comply with these requirements or to respond to
changes in regulations - including GDPR and, for its subsidiaries, the
Financial Conduct Authority's rules and guidance. This could lead to
reputational damage, legal action and/or financial penalties.
Securing and retaining the right talent Our continued success is dependent on our ability to attract, recruit, retain
and motivate our highly skilled workforce.
Further detail on these risks, and the ways in which they are managed, is
available in the Rightmove plc Annual Report 2022.
Next trading update
Our next scheduled reporting date is 1 March 2024, when we will announce our
results for the year ending 2023.
Statement of Directors' responsibilities
The Directors are responsible for preparing the interim report in accordance
with applicable law and regulations. The Directors confirm that the condensed
consolidated interim financial information has been prepared in accordance
with UK-adopted International Accounting Standard 34, 'Interim Financial
Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom's Financial Conduct Authority.
The interim management report includes a fair review of the information
required by the Disclosure and Transparency Rules paragraphs 4.2.7R and
4.2.8R, namely:
· an indication of important events that have occurred during the six
months ended 30 June 2023 and their impact on the condensed set of financial
information, and a description of the principal risks and uncertainties for
the remaining six months of the financial year; and
· material related-party transactions during the six months ended 30
June 2023 and any material changes in the related-party transactions described
in the Annual Report and Accounts 2022.
The Directors of Rightmove plc are listed in the Annual Report and Accounts
2022. A list of current Directors is maintained on the Rightmove plc website:
https://plc.rightmove.co.uk (https://plc.rightmove.co.uk) .
The Directors are responsible for the maintenance and integrity of, amongst
other things, the financial and corporate governance information as provided
on the Rightmove website (https://plc.rightmove.co.uk). Legislation in the
United Kingdom governing the preparation and dissemination of financial
information may differ from legislation in other jurisdictions.
The interim report was approved by the Board of Directors and authorised for
issue on 27 July 2023 and signed on its behalf by:
Johan Svanstrom
Alison Dolan
Chief Executive Officer
Chief
Financial Officer
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 June 2023
Note Six months ended Six months ended Year ended
30 June 2023
30 June 2022
31 December 2022
£000 £000 £000
Revenue 5 179,454 162,651 332,622
Administrative expenses (49,944) (41,312) (91,279)
Operating profit 129,510 121,339 241,343
Operating profit before share-based incentive charge 133,171 122,435 245,412
Share- based incentive charge
6 (3,661) (1,096) (4,069)
Financial income 1,008 100 381
Financial expenses (234) (226) (442)
Net financial income/(expense) 774 (126) (61)
Profit before tax 130,284 121,213 241,282
Income tax expense 9 (30,840) (22,842) (45,601)
Profit for the period being total comprehensive income 99,444 98,371 195,681
Attributable to:
Equity holders of the Parent 99,444 98,371 195,681
Earnings per share (pence)
Basic 7 12.1 11.7 23.4
Diluted 7 12.1 11.7 23.4
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
Company number 06426485
at 30 June 2023
Note 30 June 2023 30 June 2022 31 December 2022
£000 £000 £000
Non-current assets
Property, plant and equipment 9,226 11,498 10,429
Intangible assets 22,008 21,739 22,074
Deferred tax assets 9 2,059 1,512 1,460
Total non-current assets 33,293 34,749 33,963
Current assets
Trade and other receivables 10 31,798 22,588 26,614
Contract assets 5 838 371 454
Income tax receivable - 866 593
Money market deposits 5,131 5,014 5,047
Cash and cash equivalents 38,091 38,923 35,089
Total current assets 75,858 67,762 67,797
Total assets 109,151 102,511 101,760
Current liabilities
Trade and other payables 11 (23,871) (20,121) (20,874)
Lease liabilities (2,274) (2,319) (2,327)
Contract liabilities 5 (1,958) (2,164) (2,325)
Income tax payable (668) - -
Provisions - (64) -
Total current liabilities (28,771) (24,668) (25,526)
Non-current liabilities
Lease liabilities (6,120) (8,305) (7,242)
Provisions (835) (607) (829)
Total non-current liabilities (6,955) (8,912) (8,071)
Total liabilities (35,726) (33,580) (33,597)
Net assets 73,425 68,931 68,163
Equity
Share capital 828 850 838
Other reserves 604 581 594
Retained earnings (net of own shares held) 71,993 67,500 66,731
Total equity attributable to the equity holders of the Parent
73,425 68,931 68,163
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
for the six months ended 30 June 2023
Note 6 months ended 6 months ended Year ended
30 June 2023
30 June 2022
31 December 2022
£000 £000 £000
Cash flows from operating activities
Profit for the period 99,444 98,371 195,681
Adjustments for:
Depreciation charges 1,759 1,759 3,504
Amortisation charges 770 467 1,082
Financial income (1,008) (100) (381)
Financial expenses 234 226 442
Share-based payments 6 3,315 1,358 4,179
Income tax expense 9 30,840 22,842 45,601
Operating cash flow before changes in working capital
135,354 124,923 250,108
(Increase)/decrease in trade and other receivables 10 (5,000) 556 (3,456)
Increase/(decrease) in trade and other payables 11 2,064 (2,636) (1,883)
Increase in provisions 6 25 39
Increase in contract assets 5 (384) (251) (334)
Decrease in contract liabilities 5 (367) (469) (308)
Cash generated from operating activities 131,673 122,148 244,166
Financial expenses paid (235) (232) (451)
Income taxes paid (30,179) (22,752) (45,622)
Net cash from operating activities
101,259 99,164 198,093
Cash flows used in investing activities
Interest received on cash and cash equivalents 816 57 305
Increase in money market deposits (84) - (44)
Acquisition of property, plant and equipment (456) (463) (835)
Acquisition of intangible assets (704) (1,079) (2,015)
Net cash used in investing activities (428) (1,485) (2,589)
Cash flows used in financing activities
Net dividends paid 8 (42,580) (40,306) (67,679)
Purchase of own shares for cancellation 12 (54,095) (59,981) (129,981)
Purchase of own shares for share incentive plans - - (2,898)
Share-related expenses (360) (421) (933)
Payment of lease liabilities (1,275) (1,170) (2,391)
Proceeds on exercise of share-based incentives 481 137 482
Net cash used in financing activities (97,829) (101,741) (203,400)
Net increase/(decrease) in cash and cash equivalents 3,002 (4,062) (7,896)
Cash and cash equivalents at 1 January 35,089 42,985 42,985
Cash and cash equivalents at period end
38,091 38,923 35,089
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
for the six months ended 30 June 2023
Share Own shares held Other Reverse acquisition Retained Total
capital
reserves
reserve
earnings
equity
£000 £000
£000
£000
£000
£000
At 1 January 2022 860 (11,588) 434 138 80,688 70,532
-
Total comprehensive income
Profit for the period
- - - 98,371 98,371
Transactions with owners recorded directly in equity -
Share-based payments - - - - 1,358 1,358
Tax debit in respect of share-based incentives recognised directly in equity - - - - (759) (759)
Exercise of share-based incentives - 167 - - (30) 137
Cancellation of own shares (10) - 10 - (59,981) (59,981)
Net Dividends paid - - - - (40,306) (40,306)
Cost of share purchases - - - - (421) (421)
At 30 June 2022
850 (11,421) 444 138 78,920 68,931
At 1 January 2022 860 (11,588) 434 138 80,688 70,532
Total comprehensive income
Profit for the year - - - - 195,681 195,681
Transactions with owners recorded directly in equity
Share-based payments - - - - 4,179 4,179
Tax credit in respect of share-based incentives recognised directly in equity - - - - (1,220) (1,220)
Net dividends - - - - (67,679) (67,679)
Exercise of share-based incentives - 588 - - (106) 482
Purchase of shares for share incentive plan - (2,898) - - - (2,898)
Cancellation of own shares (22) - 22 - (129,981) (129,981)
Cost of share purchases - - - - (933) (933)
At 31 December 2022
838 (13,898) 456 138 80,629 68,163
At 1 January 2023 838 (13,898) 456 138 80,629 68,163
Total comprehensive income
Profit for the period
- - - - 99,444 99,444
Transactions with owners recorded directly in equity
Share-based payments - - - - 3,315 3,315
Tax debit in respect of share-based incentives recognised directly in equity - - - - (2) (2)
Exercise of share-based incentives - 517 - - (36) 481
Cancellation of own shares (10) - 10 - (55,000) (55,000)
Net dividends paid - - - - (42,588) (42,588)
Cost of share purchases - - - - (388) (388)
At 30 June 2023
828 (13,381) 466 138 85,374 73,425
NOTES
1 General information
Rightmove plc (the Company) is a public limited Company registered in England
(Company no. 6426485) domiciled in the United Kingdom (UK). The condensed
consolidated interim financial statements ('interim financial statements') as
at and for the six months ended 30 June 2023 comprise the Company and its
interest in its subsidiaries (together referred to as 'the Group'). The
principal business of the Group is the operation of the Rightmove platforms,
which have the largest audience of any UK property portal (as measured by time
on site).
The consolidated financial statements of the Group as at and for the year
ended 31 December 2022 are available upon request to the Company Secretary
from the Company's registered office at 2 Caldecotte Lake Business Park,
Caldecotte Lake Drive, Caldecotte, Milton Keynes, MK7 8LE or are available on
the corporate website at plc.rightmove.co.uk.
Basis of preparation
These condensed interim financial statements, for the six months ended 30 June
2023, have been prepared in accordance with IAS 34 Interim Financial
Reporting, under UK-adopted international accounting standards, and the
Disclosure and Transparency Rules of the United Kingdom's Financial Conduct
Authority. They should be read in conjunction with the Group's last annual
consolidated financial statements as at and for the year ended 31 December
2022 ('last annual financial statements'). The interim financial statements do
not include all the information required for a complete set of financial
statements prepared in accordance with UK-adopted international accounting
standards. However, selected explanatory notes are included to explain events
and transactions that are significant to an understanding of the changes in
the Group's financial position and performance since the last annual financial
statements. New standards and amendments effective from 1 January 2023 have
not had a material impact on the interim consolidated financial statements of
the Group.
The interim financial statements were approved by the Board of Directors on 27 July 2023 and the results for the current and comparative period are unaudited. The auditor, Ernst &Young LLP, has carried out a review of the interim financial statements and its report is set out at the end of this document.
The interim financial information does not constitute statutory accounts
within the meaning of sections 434 and 435 of the Companies Act 2006.
Statutory accounts for the year ended 31 December 2022 were approved by the
Board of Directors on 2 March 2023 and have been delivered to the Registrar of
Companies. The report of the auditors was unqualified.
Alternative performance measures
In the analysis of the Group's financial performance, certain information
disclosed in the financial statements may be prepared on a non-GAAP basis or
has been derived from amounts calculated in accordance with IFRS but are not
themselves an expressly permitted GAAP measure. These measures are reported in
line with the way in which financial information is analysed by management and
designed to increase comparability of the Group's year-on-year financial
position, based on its operational activity. The key alternative performance
measures presented by the Group are:
· Underlying profit: which is defined as profit for the year before
share-based payments charges (including the related National Insurance and
appropriate tax adjustments);
· Underlying earnings per share (EPS): which is defined as underlying
profit, divided by the weighted average number of ordinary shares outstanding
in the period;
· Underlying operating profit: which is defined as operating profit
before share-based payments charges (including the related National
Insurance);
· Underlying costs: which is defined as administrative expenses before
share-based payments charges (including the related National Insurance); and
· Underlying operating margin: which is defined as the underlying
operating profit as a percentage of revenue.
The Directors believe that these alternative performance measures provide a
more appropriate measure of the Group's business performance, as the
share-based payments charge is a non-cash charge that is not entirely driven
by the principal operational activity of the Group. The Directors therefore
consider underlying operating profit to be the most appropriate indicator of
the performance of the business and year-on-year trends.
A reconciliation of the underlying performance measures to the GAAP measures
are shown below:
Underlying profit
A reconciliation of the profit for the year to the underlying profit is
presented below:
6 months ended 6 months ended
30 June 2023 30 June 2022
£000 £000
Profit for the year 99,444 98,371
Share-based incentives charge 3,315 1,358
NI on share-based incentives 346 (262)
Impact on tax charge (684) (230)
Underlying profit 102,421 99,237
Underlying profit is used instead of profit to calculate the underlying
earnings per share, which is underlying profit divided by the weighted average
number of ordinary shares in issue for the period, whereas earnings per share
is profit divided by weighted average number of ordinary shares in issue for
the period (note 7).
Underlying operating profit
A reconciliation of the operating profit to the underlying operating profit is
presented below:
6 months ended 6 months ended
30 June 2023 30 June 2022
£000 £000
Operating profit 129,510 121,339
Share-based incentives charge 3,315 1,358
NI on share-based incentives 346 (262)
Underlying operating profit 133,171 122,435
Underlying operating profit is used to calculate the underlying operating
margin, which is underlying operating profit as a proportion of revenue,
whereas the operating margin calculated as operating profit as a proportion of
revenue.
Underlying costs
A reconciliation of the administrative expenses to the underlying costs is
presented below:
6 months ended 6 months ended
30 June 2023 30 June 2022
£000 £000
Administrative expenses 49,944 41,312
Share-based incentives charge (3,315) (1,358)
NI on share-based incentives (346) 262
Underlying costs 46,283 40,216
Going concern
The Directors have performed a detailed going concern review and tested the
Group's liquidity in a range of scenarios, as set out below.
Throughout the period, the Group was debt-free, remained strongly cash
generative and had a cash balance of £38.1m and money market deposits of
£5.1m at 30 June 2023 (31 December 2022: cash balance £35.1m and money
market deposits £5.0m).
The Group bought back shares to the value of £55.0m by 30 June 2023 (period
ended 30 June 2022: £60.0m) and paid the 2022 final dividend of £42.6m in
May 2023 (period ended 30 June 2022: £40.3m).
In reaching its assessment on going concern, the Directors have used the most
recent Board approved forecasts for the Group for the period to 31 December
2024 ("the going concern period"), which have been modelled to reflect the
expected impact of economic conditions on trading, as set out in the half year
statement. In stress testing the future cash flows of the Group, the
Directors modelled a range of scenarios which considered the effect on the
Group of reductions of varying severity in the number of housing transactions
for the period to 31 December 2024 and modelled the likely timing of cashflows
from our customers during the going concern period. These included severe, but
plausible downside scenarios. The model considered the impact of changes in
the key drivers of the Group's revenues, including customer numbers and
average revenue per advertiser (ARPA). In all the scenarios tested, the
Group remained cash positive and debt-free.
The Directors also reviewed the results of a reverse stress test, which was
undertaken to provide an illustration of the scenario required to exhaust cash
balances. The possibility of this scenario arising was assessed to be highly
remote and could arise only in extreme circumstances, much more severe than
the scenarios modelled above.
The Directors are confident that the Group will remain cash positive and will
have sufficient funds to continue to meet its liabilities as they fall due for
at least the period to 31 December 2024 and have therefore prepared the
financial statements on a going concern basis.
2 Material accounting policies
The accounting policies applied in these interim financial statements are the
same as those applied by the Group's consolidated financial statements as at
and for the year ended 31 December 2022.
3 Judgements and estimates
In preparing these interim financial statements in accordance with UK Adopted
International accounting standards, management is required to make judgements
and estimates that affect the application of accounting policies and the
reported amounts of assets and liabilities, income and expenses. Management
has determined that there are no significant areas of estimation uncertainty
or critical judgements in applying accounting policies that have a significant
effect on the amounts recognised in the consolidated financial statements, as
described in the last annual financial statements.
4 Operating segments
Rightmove has one reportable segment, being the consolidated result. Whilst
the Chief Operating Decision Maker separately monitors revenue for different
business units they do not separately monitor business unit profit, operating
costs, financial income, financial expenses and income taxes for these areas
of the business, instead monitoring this on a consolidated level.
The Group presents internal financial information that measures business
performance to the Chief Executive Officer, who is the Group's Chief Operating
Decision Maker. This information is used for the purpose of making decisions
about resources to be allocated and of assessing performance. This financial
information includes information on revenue performance and specific
monitoring of trade receivable levels for each of the following business
units:
• 'Agency' which provides resale and lettings property advertising services
on Rightmove's platforms;
• 'New Homes' which provides property advertising services to new home
developers and housing associations on Rightmove's platforms; and
• 'Other' which comprises Overseas and Commercial property advertising
services; non-property advertising services of Third-Party advertising and
Data Services; and the mortgages business.
All revenues in all periods are derived from third parties. The disaggregated
revenue is included within Note 5.
5 Revenue
The Group's operations and main revenue streams are those described in the
last annual financial statements. The Group's revenue is derived from
contracts with customers.
Disaggregation of revenue
In the following table, revenue is disaggregated by property and non-property
advertising revenue. The table also includes a reconciliation of the
disaggregated revenue with the Group's business units (see Note 4).
Six months ended Estate Agency New Homes Other Total
30 June 2023
£000 £000 £000 £000
Revenue stream
Property products 129,374 32,634 9,184 171,192
Non-property products - - 8,262 8,262
129,374 32,634 17,446 179, 454
Six months ended Estate Agency New Homes Other Total
30 June 2022 £000 £000 £000 £000
Revenue stream
Property products 122,110 24,737 8,163 155,010
Non-property products - - 7,641 7,641
122,110 24,737 15,804 162,651
Year ended Estate Agency New Homes Other Total
31 December 2022 £000 £000 £000 £000
Revenue stream
Property products 247,310 52,588 17,254 317,152
Non-property products - - 15,470 15,470
247,310 52,588 32,724 332,622
Contract balances
The following table provides information about contract assets and contract
liabilities from contracts with customers.
Contract Assets Contract Liabilities
£000 £000
Contract balance as at 31 December 2022 454 (2,325)
Performance obligations satisfied in previous periods (454) -
Performance obligations satisfied in current periods - 2,231
Accrued/(deferred) during the period 838 (1,864)
Contract balances as at 30 June 2023 838 (1,958)
The contract assets primarily relate to the Group's rights to consideration
for services provided but not invoiced at the reporting date. The contract
assets are transferred to trade receivables when invoiced and the rights have
become unconditional.
The contract liabilities primarily relate to the advance consideration
received from Estate Agency, Overseas and Commercial customers, for which
revenue is recognised as or when the services are provided.
6 Share-based payments
The Group operates share-based incentive schemes for executive Directors and
employees: a Savings Related Share Option Scheme (Sharesave Plan) and Share
Incentive Plan (SIP) for all employees; a performance share plan (PSP) for
Directors; and a Deferred Share Bonus Plan (DSP) for the Directors and
selected senior management. There is also a restricted share plan (RSP) in
operation which is awarded on an ad-hoc basis, based on service conditions
only, for selected senior individuals.
Two new share-based incentive awards were made during the period to 30 June
2023:
· 325,798 PSP awards were granted on 10 March 2023 subject to
Earnings Per Share (EPS) and Total Shareholders Return (TSR) performance.
Performance will be measured over three financial years (1 January 2023 - 31
December 2025). The vesting on 10 March 2026 of 50% of the 2023 PSP awards
will be dependent on the relative TSR performance condition measured over the
three-year performance period, with the remaining 50% dependent on the
satisfaction of the EPS growth target. The PSP awards have been valued using
the Monte Carlo model for the TSR element and the Black Scholes model for the
EPS element.
· 542,350 DSP nil cost shares were awarded to executives and senior
management on 10 March 2023 following the achievement of the 2022 internal
performance targets, with the right to exercise the shares deferred until
March 2025 (assuming service conditions are met). The DSP awards were valued
using the Black Scholes model.
The total charge in relation to share-based payments for the six months ended
30 June 2023 was £3,661,000 (2022: £1,096,000): the charge in relation to
the share-based payments relating to all share-based incentive plans was
£3,315,000 (2022: £1,358,000); and the related National insurance charge for
the six months ended 30 June 2023 relating to all awards was £346,000 (2022:
£262,000 credit).
7 Earnings per share (EPS)
Pence per
share
£000 Basic Diluted
Six months ended 30 June 2023
Profit after tax 99,444 12.1 12.1
Underlying profit after tax 102,421 12.5 12.5
Six months ended 30 June 2022
Profit after tax 98,371 11.7 11.7
Underlying profit after tax 99,237 11.8 11.8
Year ended 31 December 2022
Profit after tax 195,681 23.4 23.4
Underlying profit after tax 198,751 23.8 23.7
Weighted average number of ordinary shares (basic)
6 months ended 6 months ended Year ended
30 June 2023
30 June 2022
31 December 2022
Number of shares
Number of shares
Number of shares
Issued ordinary shares at 1 January less ordinary shares held by the EBT and 835,094,530 857,732,339 857,732,814
SIP Trust
Less own shares held in treasury at the beginning of the year (12,185,222) (12,480,472) (12,480,472)
Weighted effect of own shares purchased for cancellation (3,388,739) (3,811,957) (9,977,584)
Weighted effect of share-based incentives exercised 267,142 53,412 144,448
Weighted effect of shares purchased by the EBT - - (99,344)
819,787,711 841,493,322 835,319,862
Weighted average number of ordinary shares (diluted)
For diluted EPS, the weighted average number of ordinary shares in issue is
adjusted to assume conversion of all potentially dilutive shares. The Group's
potential dilutive instruments are in respect of share-based incentives
granted to employees, which will be settled by ordinary shares held by the
Employees' Share Trust (EBT), SIP Trust and shares held in treasury.
6 months ended 6 months ended Year ended
30 June 2023
30 June 2022
31 December 2022
Number of shares
Number of shares
Number of shares
Weighted average number of ordinary shares (basic) 819,787,711 841,493,322 835,319,862
Dilutive impact of share-based incentives outstanding 2,005,735 1,641,293 2,185,506
821,793,446 843,134,615 837,505,368
8 Dividends
Dividends declared and paid by the Company were as follows:
6 months ended 30 June 2023 6 months ended Year ended 31 December 2022
30 June 2022
Pence per share £000 Pence per share £000 Pence per share £000
2021 final dividend paid - - 4.8 40,312 4.8 40,312
2022 interim dividend paid - - - - 3.3 27,393
2022 final dividend paid 5.2 42,588 - - - -
5.2 42,588 4.8 40,312 8.1 67,705
Unclaimed dividends returned (8) (6) (26)
Net dividends included in the
statement of cash flows 42,580 40,306 67,679
After the period end the Board approved an interim dividend of 3.6p (2022:
3.3p) per qualifying ordinary share being £29,300,000 (2022: £27,393,000).
The 2022 final dividend of £42,588,000 (5.2p per qualifying share) was paid
on 26 May 2023. It was £300,000 lower than that reported in the 2022 annual
accounts due to a decrease in the ordinary shares entitled to a dividend
between 2 March 2023 and the interim dividend record date of 28 April 2023.
The terms of the EBT provide that dividends payable on the ordinary shares
held by the EBT are waived.
9 Taxation
The income tax expense of £30,840,000 (2022: £22,842,000) is recognised
based on management's best estimate of the consolidated effective tax rate
expected for the full financial year, applied to the profit before tax for the
six-month period. The Group's consolidated effective tax rate for the six
months ended 30 June 2023 was 23.7% (2022: 18.8%). The difference between the
blended standard rate of 23.5% and the Group's effective rate of 23.7% as at
30 June 2023 is attributable to the impact of the deferred tax in relation to
the share based incentives.
The net deferred tax asset of £2,059,000 (30 June 2022: £1,512,000)
comprises a deferred tax asset of £2,791,000 (30 June 2022: £2,478,000) and
a deferred tax liability of £732,000 (30 June 2022: £966,000).
The deferred tax asset is in respect of equity settled share-based incentives
and depreciation in excess of capital allowances. The deferred tax asset
arising on equity settled share-based incentives was recognised in profit or
loss to the extent that the related equity settled share-based payments charge
was recognised in the statement of comprehensive income. The deferred tax
liability is in respect of the intangible asset recognised on acquisition of
Rightmove Landlord and Tenant Services Limited.
The deferred tax assets and liabilities as at 30 June 2023 have been
calculated at a rate of between 23.5% and 25% depending on the expected rate
that will prevail at the date upon which the net deferred tax asset will
reverse in the future, based on substantively enacted UK tax rates.
10 Trade and other receivables 30 June 2023 30 June 2022 31 December 2022
£000 £000 £000
Trade receivables 24,721 18,430 21,754
Less provision for impairment of trade receivables (966) (724) (845)
Net trade receivables 23,755 17,706 20,909
Prepayments 7,640 4,755 5,243
Interest receivable 232 33 48
Other debtors 171 94 414
31,798 22,588 26,614
11 Trade and other payables
30 June 2023 30 June 2022 31 December 2022
£000 £000 £000
Trade payables 2,429 2,138 1,155
Accruals 7,697 5,759 6,147
Other creditors 896 875 1,284
Other taxation and social security 12,849 11,349 12,288
23,871 20,121 20,874
12 Reconciliation of movement in capital and reserves
Own shares purchased for cancellation
The total number of shares bought back in the six months to 30 June 2023 was
10,031,573 (2022: 9,783,381) representing 1.2% (2022: 1.2%) of the ordinary
shares in issue (excluding shares held in treasury). All the shares bought
back in the period were cancelled. The shares were acquired on the open market
at a total consideration (excluding costs) of £55,000,000 (2022:
£59,981,000). The maximum and minimum prices paid were £5.89 (2022: £6.89)
and £4.90 (2022: £5.19) per share respectively.
Own shares held - £000 Total
EBT shares reserve SIP shares reserve Treasury shares own shares held
£000 £000 £000 £000
Own shares held as at 1 January 2022 (1,552) (4,107) (5,929) (11,588)
Share-based incentives exercised 17 109 6 132
SIP releases in the period - 35 - 35
Own shares held as at 30 June 2022 (1,535) (3,963) (5,923) (11,421)
Own shares held as at 1 January 2022 (1,552) (4,107) (5,929) (11,588)
Shares purchased for SIP (2,216) (682) - (2,898)
Shares transferred to SIP 555 (555) - -
Share-based incentives exercised 56 289 140 485
SIP releases in the year - 103 - 103
Own shares held as at 31 December 2022 (3,157) (4,952) (5,789) (13,898)
Own shares held as at 1 January 2023 (3,157) (4,952) (5,789) (13,898)
Share-based incentives exercised 89 272 84 445
SIP releases in the period - 72 - 72
Own shares held as at 30 June 2023 (3,068) (4,608) (5,705) (13,381)
Own shares held - number of shares
Total
EBT shares reserve SIP shares reserve Treasury shares own
shares held
Own shares held as at 1 January 2022 1,158,418 787,000 12,480,472 14,425,890
Share-based incentives exercised (34,790) (27,935) (13,298) (76,023)
SIP releases in the period - (6,625) - (6,625)
Own shares held as at 30 June 2022 1,123,628 752,440 12,467,174 14,343,242
Own shares held as at 1 January 2022 1,158,418 787,000 12,480,472 14,425,890
Shares purchased for SIP 432,254 128,774 - 561,028
Shares transferred to SIP (99,476) 99,476 - -
Share-based incentives exercised (115,233) (63,893) (295,250) (474,376)
SIP releases in the year - (20,765) - (20,765)
Shares held as at 31 December 2022 1,375,963 930,592 12,185,222 14,491,777
Own shares held as at 1 January 2023 1,375,963 930,592 12,185,222 14,491,777
Share-based incentives exercised (184,563) (52,980) (176,955) (414,498)
SIP releases in the period - (12,200) - (12,200)
Shares held as at 30 June 2023 1,191,400 865,412 12,008,267 14,065,079
(a) EBT shares reserve
This reserve represents the cost of own shares acquired by the EBT less any
exercises of share-based incentives. At 30 June 2023, the EBT held 1,191,400
(June 2022: 1,123,628) ordinary shares in the Company, representing 0.1% (June
2022: 0.1%) of the ordinary shares in issue (excluding shares held in
treasury). The market value of the shares held by the EBT at 30 June 2023 was
£6,233,405 (June 2022: £6,386,702).
(b) SIP shares reserve
In November 2014, the Group established the Rightmove Share Incentive Plan
Trust (SIP). This reserve represents the cost of acquiring shares less any
exercises or releases of SIP awards. At 30 June 2023 the SIP Trust held
865,412 (June 2022: 752,440) ordinary shares in the Company of 0.1 pence each,
representing 0.1% (June 2022: 0.09%) of the ordinary shares in issue
(excluding shares held in treasury). The market value of the shares held in
the SIP Trust at the period end was £4,525,350 (June 2022: £4,276,869).
(c) Treasury shares
This represents the cost of acquiring shares held in treasury less any
exercises of share-based incentives. These shares were bought back in 2008 at
an average price of 47.60 pence and may be used to satisfy certain share-based
incentive awards.
Other reserves
This represents the Capital Redemption Reserve in respect of own shares bought
back and cancelled. The movement in other reserves of £10,000 (June
2022: £10,000) comprises the nominal value of ordinary shares cancelled
during the period.
Retained earnings
The loss on exercise of share-based incentives is the difference between the
value that the shares held by the EBT, SIP and treasury shares were originally
acquired for and the exercise price at which share-based incentives were
exercised during the period.
13 Related Party Transactions
Rightmove continues to undertake related party transactions with both
Directors and subsidiary companies of the group. The inter-group related
parties and the nature of these transactions remains unchanged from the Annual
Report.
There have been no other related party transactions in the period to disclose.
ADVISERS AND SHAREHOLDER INFORMATION
Contacts Registered office Corporate advisers
Chief Executive Officer: Johan Svanstrom Rightmove plc Financial adviser
Chief Financial Officer: Alison Dolan 2 Caldecotte Lake UBS Investment Bank
Company Secretary: Carolyn Pollard Business Park
Caldecotte Lake Drive
Website: www.rightmove.co.uk Joint brokers
Caldecotte UBS AG London Branch
Milton Keynes Numis Securities Limited
MK7 8LE
Auditor
Ernst & Young LLP
Registered in Bankers
England no. 6426485
Financial calendar 2023 Barclays Bank Plc
Interim dividend record date 29 September 2023 Santander UK plc
Interim dividend payment 27 October 2023 HSBC UK Bank plc
Full year results 1 March 2024 Lloyds Banking Group plc
Solicitors
EMW LLP
Slaughter and May
Herbert Smith Freehills LLP
Registrar
Link Asset Services*
*Shareholder enquiries
The Company's registrar is Link Group. They will be pleased to deal with any
questions regarding your shareholding or dividends. Please notify them of your
change of address or other personal information. Their contact details are
below:
Shareholder helpline: 0371 664 0300 calls are charged at the standard
geographic rate and will vary by provider. Calls outside the United Kingdom
will be charged at the applicable international rate. Lines are open between
09:00 - 17:30, Monday to Friday excluding public holidays in England and
Wales.
Email: enquiries@linkgroup.co.uk (mailto:enquiries@linkgroup.co.uk)
Signal Shares shareholder portal: www.signalshares.com
(https://eur03.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.signalshares.com%2F&data=04%7C01%7CCheryl.Addo%40rightmove.co.uk%7C6580216f9ee9414815e208d8b0b78ae6%7C8cd57a9404ae4a8e9869feb23e19960c%7C0%7C0%7C637453649634726454%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=oILVPr%2BM%2BISe%2BUJX23LXtPiA1Xvwig37y1253ZCOpSM%3D&reserved=0)
Address: Link Group
10th Floor Central Square
29 Wellington Street
Leeds LS1 4DL
Shareholders can register online to view your holdings using the shareholder
portal, a service offered by Link Group at www.signalshares.com
(http://www.signalshares.com) . The shareholder portal is an online service
enabling you to quickly and easily access and maintain your shareholding
online - reducing the need for paperwork and providing 24 hour access for your
convenience. You may:
- View your holding balance and get an indicative valuation
- View the dividend payments you have received
- Cast your proxy vote on the AGM resolutions online
- Update your address
- Register and change bank mandate instructions so that dividends can be
paid directly to your bank account
- Elect to receive shareholder communications electronically
- Access a wide range of shareholder information and download shareholder
forms
INDEPENDENT REVIEW REPORT TO RIGHTMOVE PLC
Conclusion
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
June 2023 which comprises the condensed consolidated interim statement of
comprehensive income, condensed consolidated interim statement of financial
position, condensed consolidated interim statement of cash flows, condensed
consolidated interim statement of changes in shareholders' equity and the
related explanatory notes. We have read the other information contained in the
half yearly financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the
condensed set of financial statements.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2023 is not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34 and the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements 2410 (UK) "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" issued by the Financial Reporting
Council. 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 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.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with UK adopted international accounting standards. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with UK adopted International
Accounting Standard 34, "Interim Financial Reporting".
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis of Conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or that
management have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
this ISRE, however future events or conditions may cause the entity to cease
to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to
liquidate the company or to cease operations, or have no realistic alternative
but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the
Company a conclusion on the condensed set of financial statements in the
half-yearly financial report. Our conclusion, including our Conclusions
Relating to Going Concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for Conclusion paragraph of
this report.
Use of our report
This report is made solely to the company in accordance with guidance
contained in International Standard on Review Engagements 2410 (UK) "Review of
Interim Financial Information Performed by the Independent Auditor of the
Entity" issued by the Financial Reporting Council. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other
than the company, for our work, for this report, or for the conclusions we
have formed.
Ernst & Young LLP
Luton
27 July 2023
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