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RNS Number : 9208X Rightmove Plc 26 July 2024
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HALF YEAR RESULTS ANNOUNCEMENT FOR RIGHTMOVE PLC
SIX MONTHS ENDED 30 JUNE 2024
Rightmove plc, the UK's largest property portal, announces its unaudited
results for the six months ended 30 June 2024.
A strong financial performance during a period of investment, driven by
continued demand from agents and new homes developers for our products and
services
Reiterating full-year 2024 guidance
Financial Highlights H1 2024 H1 2023 Change vs 2023 % Change vs 2023
Revenue £192.1m £179.5m £12.6m 7%
Operating profit £131.6m £129.5m £2.1m 2%
Underlying operating profit((1)) £135.1m £133.2m £1.9m 1%
Interim dividend 3.7p 3.6p 0.1p 3%
Basic earnings per share 12.4p 12.1p 0.3p 2%
Underlying basic earnings per share((2)) 12.8p 12.5p 0.3p 2%
· Revenue up £12.6m/7% to £192.1m, as both agents and new homes
developers renewed contracts, upgraded their packages and invested in
additional products
· Operating profit of £131.6m, up 2% (2023: £129.5m)
· Underlying operating profit((1)) of £135.1m, up 1% (2023: £133.2m)
· Basic earnings per share up 2% to 12.4p (2023: 12.1p); underlying
basic earnings per share((2)) up 2% to 12.8p (2023: 12.5p)
· Operating profit and underlying operating profit include one-off
acquisition costs of £0.6m, relating to HomeViews and the strategic long-term
investment in Coadjute, as well as a one-off charge of £3.0m in relation to
the investment in Coadjute (see Financial Performance and note 13): adjusting
to remove the impact of these costs would mean that operating profit would be
£135.2m, up 4%; underlying operating profit would be £138.7m, up 4%; and
underlying EPS would be 13.2p, up 6%
· Interim dividend up 3% to 3.7p per ordinary share (2023: 3.6p)
· £100.2m of returns to shareholders through share buybacks and
dividends in the first half of 2024 (2023: £97.6m); 10.1 million shares (1.2%
of outstanding share capital) cancelled to 30 June (2023: 10.0 million)
· Cash and cash equivalents, including money market deposits, of
£28.1m (31 December 2023: £38.8m)
Operational highlights
· Our market share leadership position continues at over 80% (2024: 86%,
2023: 86%)((3)), as we remain the trusted site for home-hunters to inform
themselves about the housing market
· Resilient traffic, with a total of 8.3 billion((4)) minutes spent on
the platform in the period (2023: 8.2 billion).
· Membership numbers stable: up 276/1% since the start of the year at
19,061 (Dec 23: 18,785), driven by strong growth in Agency Lettings members.
Agency branches were 16,193 and New Homes developments totalled 2,868 (31
December 2023: 15,839 and 2,946)
· Average Revenue Per Advertiser (ARPA) ((5)) up 6% to £1,497 per
month (30 June 2023: £1,411)
· New Homes ARPA growth of £164/9%, and Agency ARPA growth of £76/6%,
both driven by increased product and package purchases and partner contract
renewals
· Penetration of the top Estate Agency package, Optimiser, increased to
36% (Dec 23: 35%) and membership of the New Homes top package, Advanced,
increased to 56% (Dec 23: 53%)
· Continued product innovation, with over 130 features and enhancements
underway in 2024, and 24 product teams all enabled with AI copilots
· Positive progress on Strategic Growth Areas during the half, with
revenue growth of 30%((6))
· Continued focus on advocating for our partners, consumers and the
wider property industry.
(1) Underlying operating profit is operating profit before the
share-based payments charges (including the related NI charge)
(2) Underlying basic 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) Source: Comscore, June 2023 and June 2024. Comscore MMX®
Desktop only + Comscore Mobile Metrix® Mobile Web & App, Total
Audience, Custom-defined list of Rightmove sites, zoopla.co.uk,
primelocation.com, onthemarket.com, United Kingdom.
(4) Source: Google Analytics
(5) 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
(6) Strategic Growth Areas comprise Commercial, Mortgages and
Rental Services. Combined revenues in H1 2024 of £11.2m (H1 2023: £8.6m)
Summary and Outlook
Our financial performance in the first half of 2024 reflects the strength of
our business model, our market-leading position with UK consumers, and the
power of the Rightmove network effect. We continue to build the business from
this position of strength.
For the full year 2024, our guidance from the trading statement on 10 May is
unchanged: we continue to expect revenue growth of 7-9%, with membership
growth of up to 2% across Estate Agency and New Homes, and full-year ARPA
growth of £78-85.
We continue to invest in product innovation for both our consumers and our
partners, and are accelerating our strategic growth areas of commercial real
estate, rental services and mortgage lead generation, all while maintaining
disciplined cost management. We continue to anticipate an underlying operating
margin, when excluding the one-off acquisition costs and Coadjute investment,
of 70% in 2024.
Our capital allocation policy remains unchanged. We prioritise organic
investment, including any bolt-on M&A that might help us to accelerate the
execution of our strategy. We then prioritise a progressive dividend policy,
following which all remaining cash generated in the year is returned via share
buybacks.
The strength of our business model, coupled with ongoing innovation, underpins
the Board's confidence in Rightmove's
outlook for 2024 and beyond.
Johan Svanstrom, Chief Executive Officer, said:
"We're pleased to deliver a strong set of H1 results, and to be progressing in
executing our plan to build an even more valuable digital platform for the UK
property industry.
"Our performance came against the backdrop of the sustained challenging
mortgage rate environment. The period saw a pick-up in existing-homes listings
and transactions, a continued yet softening imbalance of demand and supply for
rentals, and a tentative outlook for new homes development volumes. With the
election now concluded, the property market looks forward to potential
interest rate reductions which will further stimulate activity.
"On the back of our leading position in the market, we have exciting momentum
expanding our products and innovation for consumers and partners and remain
confident in Rightmove's long-term prospects."
The Company will present its results at a meeting for analysts and investors,
to be held at 9:30am today and available online at
https://edge.media-server.com/mmc/p/nk8x46xy
(https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fedge.media-server.com%2Fmmc%2Fp%2Fnk8x46xy&data=05%7C02%7Cinvestor.relations%40rightmove.co.uk%7C12ba23ccb3654b5c68d108dca5a89c00%7C8cd57a9404ae4a8e9869feb23e19960c%7C0%7C0%7C638567390840927004%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=fIFNwenieVaC9Ht5bjxIXu9%2FgeidEKRW6MIeWTTkSck%3D&reserved=0)
Enquiries: Investor Relations
Investor.Relations@rightmove.co.uk
(mailto:Investor.Relations@rightmove.co.uk)
Sodali
rightmove@sodali.com (mailto:rightmove@sodali.com)
About Rightmove
· Rightmove has the UK's largest selection of properties for sale and to
rent, adds more listings than anyone else, and over 80% of all time spent on
property portals is on Rightmove
· Rightmove's vision is to give everyone the belief that they can make
their move by giving people the best place to turn and return to for access to
tools and expertise to make it happen
· People can search Rightmove for residential resale, new homes, rentals,
commercial property and overseas properties and use tools and information
including securing a Mortgage in Principle, checking local sold prices,
property valuations, market trends, maps and schools
· Partners include the following key groups: estate agents, lettings
agents, new homes developers, rental operators, commercial property operators
and overseas property agents
· Using the UK's largest housing datasets, we issue a number of regular
reports to track housing market indicators: our monthly House Price Index
(established 2002), our quarterly Rental Trends Tracker (established 2015),
and a weekly Mortgage Rates Tracker (established 2023). Historical data is
available on request
· Founded in 2000, Rightmove listed on the London Stock Exchange in
2006 and is a member of the FTSE 100 index.
Half Year Statement
Throughout the first half of 2024 partner demand for our products and services
was strong and we have continued to invest and to innovate to expand our
business, in order to deliver meaningful acceleration in both revenues and
profits over the coming years.
The recovery in the housing market so far this year has been tentative:
mortgage rates have eased a little but remain high, and housing transactions
remain muted and slow to close - taking an average of seven months from first
listing to completion. Nonetheless, our partners remained focused on
competing for new vendor mandates and delivering value for their customers
(our consumers) and continued to rely on our products to help them to do
that.
Estate agents' investment in our packages and products increased Agency
revenues by 7% and Agency ARPA((1)) by 6%, to £1,417 (June 23: £1,341).
Over 36% of our agent partners are now on our top package, Optimiser (Dec
2023: 35%). Vendor lead products, such as Local Valuation Alert, increased
by 8% and we saw record growth in the number of new Lettings partners (a net
c.350 increase on June 2023).
The acquisition of HomeViews - which provides the UK's largest community of
verified residential reviews of property developments - was a valuable
addition to our already strong listings proposition for Rental Operators.
New homes developers continued to face a challenging market, with competition
from the resale market in the face of a tentative pickup in demand. We
welcome the new government's proposals to reform the planning system and to
'get Britain building'. However, while developers are being generally
cautious in their approach to building so far this year, their usage of our
digital products remained strong and New Homes ARPA((2)) increased by 9% to
£1,940 as a result (June 23: £1,776). Revenue growth was more muted (4%) as
development numbers reduced to 2,868 (Dec 2023: 2,946) reflecting the slower
pace of building. The number of developments on our top tier package,
Advanced, increased to 56% (Dec 2023: 53%).
Our Strategic Growth Areas continued to make progress, with Mortgages
delivering stellar growth in Mortgages in Principle volumes and revenue up
176%/£1.4m to £2.2m. Commercial revenues grew by 12%/£0.7m to £6.5m,
reflecting both increased membership numbers and contract renewals. Within
Rental Services, our Lead to Keys proposition continues to gain traction with
lettings agents and we enhanced further the quality and efficiency of the
product during the half. Rental Services revenues grew by 29%/£0.6m to
£2.5m.
Overall, total revenues increased by 7% on the same period in 2023 to £192.1m
and Group ARPA((3)) grew by 6% to £1,497 (June 2023: £1,411).
Innovation in new products, not only for partners but for consumers, continued
apace and we will launch our latest consumer enhancement - Renovation
Calculator - in the third quarter, which will allow consumers to evaluate the
uplift in the value of their property from specific renovations.
Growth in the first half was underpinned by our ongoing investment in both the
Rightmove platform and people. Over 100 people have been recruited so far in
2024, and our developers are now AI-enabled, with Github Copilot. Rightmove
was listed as a Sunday Times Best Place to Work for the first time and over
80% of employees think Rightmove is a great place to work.
Rightmove remains the only place to find virtually the whole of the UK
property market in one place. It is the place home hunters turn to first, and
engage with most, to help them with their searches. Our platform is central
to making any move easier through driving the digitisation of the property
market and we also provide insights into the market from our vast and unique
property market data. As the market leader our market share of consumer time
is over 80%((4)).
Our strategy is to generate growth for all our stakeholders. We enjoy working
with all our partners to build success together and to advocate for the
industry, which in turn generates growth for Rightmove and our shareholders.
(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) 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.
(4) Source: Comscore June 24
Financial performance
Revenue
Revenue increased by £12.6m/7% year on year to £192.1m (2023: £179.5m) with
growth across all business units.
H1 2024 H1 2023 Change vs 2023 £m Change vs 2023 %
£m
£m
Agency 138.5 129.4 9.1 7%
New Homes 33.9 32.7 1.2 4%
Other 19.7 17.4 2.3 13%
Total revenue 192.1 179.5 12.6 7%
30 June 2024 31 Dec 2023 30 June 2023 Change vs Dec 2023 Change vs Dec 2023 %
Agency branches 16,193 15,839 16,093 354 2%
New Homes devs 2,868 2,946 3,023 (78) (3%)
Total membership 19,061 18,785 19,116 276 1%
Agency revenue increased by £9.1m year on year to £138.5m, as core
membership price increases were secured through partner contract-renewals and
agents continued to purchase additional products. HomeViews, acquired in
February, contributed £0.7m of the increase in revenue. Agency ARPA((1))
increased by £76/6% to £1,417 (June 2023: £1,341) and agency membership
numbers were up 2% on 31 December 2023, ending the first half of the year at
16,193 branches.
New Homes revenue increased by 4% to £33.9m, through contract renewals,
upgrades to our top package, and the developers purchasing incremental
products. New Homes ARPA((2)) increased by £164/9% to £1,940 per development
per month (June 2023: £1,776) and the strength of this ARPA growth more than
offset development listings which, at 2,868, were marginally down on December.
Other revenue increased to £19.7m, driven primarily by the increased volume
of MIPs (mortgages in principle) delivered within our Mortgages business and
increased membership numbers and successful contract renewals within our
Commercial business.
Administration costs
Total costs increased by £10.5m to £60.5m (2023: £50.0m), which included
share-based payments charges and related National Insurance charges of £3.5m
(2023: £3.7m).
Excluding share-based payments charges and related National Insurance,
underlying operating costs((3)) increased by £10.7m/23% to £57.0m (2023:
£46.3m). The increase is due primarily to:
· the £3.0m strategic investment in Coadjute (a property market
technology company: see note 13), which was written down immediately given the
long-term nature of the investment, and £0.6m relating to the acquisition
costs of Coadjute and of acquiring HomeViews;
· higher people costs, reflecting on-going investment in line with
the growth ambitions set out at our Capital Markets Day in November 2023
(c£5m);
· increased spend on IT security, infrastructure and cloud hosting
(c£2m); and
· other general and admin costs.
The share-based payments charge of £3.5m was broadly flat on 2023 as the
impact of new awards was largely offset by credits arising from forfeitures.
Operating profit
Operating profit increased by £2.1m to £131.6m (H1 2023: £129.5m), with an
operating profit margin of 69% (H1 2023: 72%).
Underlying operating profit((4)) increased by £1.9m/1% to £135.1m, with an
underlying operating profit margin((5)) of 70% (June 2023: 74%).
If the one-off acquisition costs of £0.6m and Coadjute investment charge of
£3.0m are excluded, the underlying operating profit would be £138.7m, an
increase of 4% on prior year, and the underlying operating margin would be
72%.
H1 2024 H1 2023 Change vs 2023 £m Change vs 2023 %
£m
£m
Revenue 192.1 179.5 12.6 7%
Underlying costs((3)) (57.0) (46.3) (10.7) (23%)
Underlying operating profit((4)) 135.1 133.2 1.9 1%
Underlying operating margin((5)) 70% 74%
Share based incentive costs (3.5) (3.7) 0.2 5%
Operating profit 131.6 129.5 2.1 2%
Operating Margin 69% 72%
Earnings per share (EPS)
Basic EPS increased by 2% to 12.4p (2023: 12.1p), driven by the increase in
profit and the share buyback programme, which reduced the weighted average
number of ordinary shares in issue to 795.1m (2023: 819.8m).
Underlying basic EPS((6)) (based on underlying profit) increased by 2% to
12.8p (2023: 12.5p).
Excluding the acquisition costs of £0.6m and the £3.0m Coadjute investment,
underlying basic EPS would be 13.2p, an increase of 6% on 2023.
Summary consolidated statement of financial position
30 June 31 December 2023 30 June Change from
2024 £m 2023 Dec 2023
£m £m £m
Property, plant and equipment 9.1 9.4 9.2 (0.3)
Intangible assets 34.0 21.8 22.0 12.2
Deferred tax asset 1.7 2.4 2.1 (0.7)
Trade and other receivables 29.9 31.5 31.8 (1.6)
Contract assets 1.1 0.8 0.8 0.3
Income tax receivable - 0.2 - (0.2)
Cash including money market deposits 28.1 38.8 43.2 (10.7)
Trade and other payables (26.9) (24.7) (23.9) (2.2)
Contract liabilities (2.2) (2.5) (2.0) 0.3
Income tax payable (0.9) - (0.7) (0.9)
Lease liabilities (6.7) (7.5) (8.3) 0.8
Provisions (0.8) (0.8) (0.8) -
Other non-current liabilities (0.4) - - (0.4)
Net assets 66.0 69.4 73.4 (3.4)
Rightmove's balance sheet as at 30 June 2024 shows total equity of £66.0m
(31 December 2023: £69.4m) and reflects the continued strong trading
position and returns to shareholders.
The increase in intangible assets to £34.0m is mostly due to the acquisition
of HomeViews (see note 13), generating goodwill and intangible assets on
consolidation of £8.8m, as well as capitalisation of increased investment in
product development of £4.4m.
Trade and other receivables of £29.9m, are down £1.6m on December 2023
reflecting a decrease in underlying trade receivables, partially offset by an
increase in prepayments and other receivables reflecting timing. Trade and
other payables of £26.9m 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 £143.2m (30 June
2023: £131.7m) and operating cash conversion of 109%((7)) .
( )
The closing Group cash balance at 30 June 2024, including money market
deposits, was £28.1m (31 December 2023: £38.8m). Cash remains invested in
short-term, easily accessible money market deposits, including in a green
money-market fund.
The Group bought back and cancelled 10.1 million ordinary shares during the
period (2023: 10.0m), at a cost of £55.0m (excluding expenses) as part of its
ongoing share buyback programme (2023: £55.0m). Dividends totalling £45.2m
in relation to the final 2023 dividend were also paid during the period (2023:
£42.6m).
Shareholder returns
Consistent with the policy of growing dividends broadly in line with the
increase in Underlying EPS, the Directors are declaring an interim dividend of
3.7p per ordinary share, which will be paid on 25 October 2024 to all
shareholders on the register as at 27 September 2024. We intend to continue
the share buyback programme in the second half of 2024.
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 basic 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 £143.2m (2023:
£131.7m) compared to operating profit as reported in the income statement of
£131.6m (2023: £129.5m).
Principal Risks and Uncertainties
The Board and Audit Committee regularly review the principal risks to our
business and the position against the risk appetite and monitor progress to
manage risks accordingly.
Consideration is given to emerging risks and to any changes in the internal or
external environment that could impact our strategy and the way 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 2023 Annual Report
remain relevant for 2024 and there have been no significant changes.
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 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 2024 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 2024 and any material changes in the related-party transactions described
in the Annual Report and Accounts 2023.
The Directors of Rightmove plc are listed in the Annual Report and Accounts
2023. 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 26 July 2024 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 2024
Note Six months ended Six months ended Year ended
30 June 2024
30 June 2023
31 December 2023
£000 £000 £000
Revenue 5 192,114 179,454 364,316
Administrative expenses (60,512) (49,944) (106,283)
Operating profit 131,602 129,510 258,033
Operating profit before share-based incentive charge 135,138 133,171 264,570
Share- based incentive charge
6 (3,536) (3,661) (6,537)
Financial income 1,356 1,008 2,227
Financial expenses (270) (234) (491)
Net financial income 1,086 774 1,736
Profit before tax 132,688 130,284 259,769
Income tax expense 9 (33,748) (30,840) (60,618)
Profit for the period being total comprehensive income 98,940 99,444 199,151
Attributable to:
Equity holders of the Parent 98,940 99,444 199,151
Earnings per share (pence)
Basic 7 12.4 12.1 24.5
Diluted 7 12.4 12.1 24.4
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
Company number 06426485
at 30 June 2024
Note 30 June 2024 30 June 2023 31 December 2023
£000 £000 £000
Non-current assets
Property, plant and equipment 9,083 9,226 9,385
Intangible assets 13 34,005 22,008 21,842
Deferred tax assets 9 1,690 2,059 2,383
Total non-current assets 44,778 33,293 33,610
Current assets
Trade and other receivables 10 29,928 31,798 31,474
Contract assets 5 1,084 838 759
Income tax receivable - - 165
Money market deposits 5,363 5,131 5,224
Cash and cash equivalents 22,740 38,091 33,641
Total current assets 59,115 75,858 71,263
Total assets 103,893 109,151 104,873
Current liabilities
Trade and other payables 11 (26,921) (23,871) (24,737)
Lease liabilities (2,387) (2,274) (2,291)
Contract liabilities 5 (2,157) (1,958) (2,536)
Income tax payable (881) (668) -
Total current liabilities (32,346) (28,771) (29,564)
Non-current liabilities
Lease liabilities (4,308) (6,120) (5,112)
Provisions (847) (835) (841)
Other non-current liabilities 13 (400) - -
Total non-current liabilities (5,555) (6,955) (5,953)
Total liabilities (37,901) (35,726) (35,517)
Net assets 65,992 73,425 69,356
Equity
Share capital 804 828 814
Other reserves 628 604 618
Retained earnings (net of own shares held) 64,560 71,993 67,924
Total equity attributable to the equity holders of the Parent
65,992 73,425 69,356
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
for the six months ended 30 June 2024
Note 6 months ended 6 months ended Year ended
30 June 2024
30 June 2023
31 December 2023
£000 £000 £000
Cash flows from operating activities
Profit for the period 98,940 99,444 199,151
Adjustments for:
Depreciation charges 1,782 1,759 3,424
Amortisation charges 967 770 1,560
Financial income (1,356) (1,008) (2,227)
Financial expenses 270 234 491
Charge on investment 13 3,000 - -
Share-based payments 6 3,330 3,315 5,886
Income tax expense 9 33,748 30,840 60,618
Operating cash flow before changes in working capital 140,681
135,354 268,903
Decrease/(increase) in trade and other receivables 10 1,153 (5,000) (4,503)
Increase in trade and other payables 11 2,056 2,064 3,863
Increase in provisions - 6 -
Increase in contract assets 5 (325) (384) (305)
Decrease in contract liabilities 5 (379) (367) 211
Cash generated from operating activities 143,186 131,673 268,169
Financial expenses paid (267) (235) (479)
Income taxes paid (32,855) (30,179) (60,979)
Net cash from operating activities 110,064
101,259 206,711
Cash flows used in investing activities
Interest received on cash and cash equivalents 1,548 816 1,694
Increase in money market deposits - (84) -
Acquisition of property, plant and equipment (866) (456) (2,018)
Acquisition of subsidiary, net of cash received 13 (7,552) - -
Acquisition of investment 13 (3,000) - -
Acquisition of intangible assets (4,363) (704) (1,328)
Net cash used in investing activities (14,233) (428) (1,652)
Cash flows used in financing activities
Net dividends paid 8 (45,214) (42,580) (71,651)
Purchase of own shares for cancellation 12 (55,000) (54,095) (130,000)
Purchase of own shares for share incentive plans 12 (5,213) - (1,998)
Share-related expenses (385) (360) (922)
Payment of lease liabilities (1,306) (1,275) (2,530)
Proceeds on exercise of share-based incentives 386 481 594
Net cash used in financing activities (106,732) (97,829) (206,507)
Net increase/(decrease) in cash and cash equivalents (10,901) 3,002 (1,448)
Cash and cash equivalents at 1 January 33,641 35,089 35,089
22,740
Cash and cash equivalents at period end 38,091 33,641
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
for the six months ended 30 June 2024
Share Own shares held Other Reverse acquisition Retained Total
capital
reserves
reserve
earnings
equity
£000 £000
£000
£000
£000
£000
At 1 January 2023 838 (13,898) 456 138 80,629 68,163
-
Total comprehensive income - - - 99,444 99,444
Profit for the period
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
At 1 January 2023 838 (13,898) 456 138 80,629 68,163
Total comprehensive income - - - - 199,151 199,151
Profit for the year
Transactions with owners recorded directly in equity
Share-based payments - - - - 5,886 5,886
Tax credit in respect of share-based incentives recognised directly in equity - - - - 133 133
Net dividends - - - - (71,651) (71,651)
Exercise of share-based incentives - 2,156 - - (1,562) 594
Purchase of shares for share incentive plan - (1,998) - - (1,998)
Cancellation of own shares (24) - 24 - (130,000) (130,000)
Cost of share purchases - - - - (922) (922)
At 31 December 2023 814 (13,740) 480 138 81,664 69,356
At 1 January 2024 814 (13,740) 480 138 81,664 69,356
Total comprehensive income - - - - 98,940 98,940
Profit for the period
Transactions with owners recorded directly in equity
Share-based payments - - - - 3,330 3,330
Tax debit in respect of share-based incentives recognised directly in equity - - - - (196) (196)
Exercise of share-based incentives - 488 - - (102) 386
Purchase of shares for plans - (5,213) - - - (5,213)
Cancellation of own shares (10) - 10 - (55,000) (55,000)
Net dividends paid - - - - (45,226) (45,226)
Cost of share purchases - - - - (385) (385)
At 30 June 2024 804 (18,465) 490 138 83,025 65,992
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 2024 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 2023 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
2024, 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
2023 ('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 2024 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 25 July 2024 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 2023 were approved by the
Board of Directors on 29 February 2024 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 basic 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 period to the underlying profit is
presented below:
6 months ended 6 months ended
30 June 2024 30 June 2023
£000 £000
Profit for the period 98,940 99,444
Share-based incentives charge 3,330 3,315
NI on share-based incentives 206 346
Impact on tax charge (817) (684)
Underlying profit 101,659 102,421
Underlying profit is used instead of profit to calculate the underlying basic
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 2024 30 June 2023
£000 £000
Operating profit 131,602 129,510
Share-based incentives charge 3,330 3,315
NI on share-based incentives 206 346
Underlying operating profit 135,138 133,171
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 2024 30 June 2023
£000 £000
Administrative expenses 60,512 49,944
Share-based incentives charge (3,330) (3,315)
NI on share-based incentives (206) (346)
Underlying costs 56,976 46,283
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 £22.7m and money market deposits of
£5.4m at 30 June 2024 (31 December 2023: cash balance £33.6m and money
market deposits £5.2m).
The Group bought back shares to the value of £55.0m by 30 June 2024 (period
ended 30 June 2023: £55.0m) and paid the 2023 final dividend of £45.2m in
May 2024 (period ended 30 June 2023: £42.6m).
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
2025 ("the going concern period"), which have been modelled to reflect the
expected impact of current economic conditions on trading, as set out in these
financial statements.
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 2025 and modelled the likely timing of cashflows from our customers
during the going concern period. These included severe but plausible downside
scenarios that are considered to pose the greatest threat to the business
model and future performance of the Group, such as: an economic shock,
increased competition and new disruptive technologies, or a cyber threat. 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)
- one scenario being a 30% reduction in revenue, irrespective of cause. Cost
assumptions were also considered in each of the severe but plausible
scenarios, including an increase in marketing costs and IT costs, employee
recruitment and retention costs, and higher spend on innovation and protection
of the platform. The scenarios were stress tested individually and in
combination. In all combinations of 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 2025 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 2023.
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 2024
£000 £000 £000 £000
Revenue stream
Property products 138,488 33,867 9,913 182,268
Non-property products - - 9,846 9,846
138,488 33,867 19,759 192,114
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
Year ended Estate Agency New Homes Other Total
31 December 2023 £000 £000 £000 £000
Revenue stream
Property products 261,954 66,447 18,877 347,278
Non-property products - - 17,038 17,038
261,954 66,447 35,915 364,316
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 2023 759 (2,536)
Performance obligations satisfied in previous periods (759) -
Performance obligations satisfied in current periods - 2,290
Accrued/(deferred) during the period 1,084 (1,911)
Contract balances as at 30 June 2024 1,084 (2,157)
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.
Four new share-based incentive awards were made during the period to 30 June
2024:
· 335,970 PSP awards were granted on 12 March 2024 subject to
Earnings Per Share (EPS), Revenue and Total Shareholders Return (TSR)
performance. Performance will be measured over three financial years (1
January 2024 - 31 December 2025). The vesting on 12 March 2026 of 50% of the
2024 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 both the satisfaction of the EPS growth and revenue targets
in equal measure. The PSP awards have been valued using the Monte Carlo model
for the TSR element and the Black Scholes model for the EPS element.
· 605,476 DSP nil cost shares were awarded to executives and senior
management on 12 March 2024 following the achievement of the 2023 internal
performance targets, with the right to exercise the shares deferred until
March 2026 (assuming service conditions are met). The DSP awards were valued
using the Black Scholes model.
· 354,736 RSP nil cost shares were awarded to selected senior
management on 1 March 2024, and a further 16,008 on 6 June 2024, subject only
to service conditions over a one-to-three-year period. Participants are not
entitled to receive dividends on these awards. RSP awards have been valued
using the Black Scholes model.
The total charge in relation to share-based payments for the six months ended
30 June 2024 was £3,536,000 (2023: £3,661,000): the charge in relation to
the share-based payments relating to all share-based incentive plans was
£3,330,000 (2023: £3,315,000); and the related National insurance charge for
the six months ended 30 June 2024 relating to all awards was £206,000 (2023:
£346,000).
7 Earnings per share (EPS)
Pence per share
£000 Basic Diluted
Six months ended 30 June 2024
Profit after tax 98,940 12.4 12.4
Underlying profit after tax 101,659 12.8 12.8
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
Year ended 31 December 2023
Profit after tax 199,151 24.5 24.4
Underlying profit after tax 204,680 25.2 25.1
Weighted average number of ordinary shares (basic)
6 months ended 6 months ended Year ended
30 June 2024
30 June 2023
31 December 2023
Number of shares
Number of shares
Number of shares
Issued ordinary shares at 1 January less ordinary shares held by the EBT and 811,252,473 835,094,530 835,094,530
SIP Trust
Less own shares held in treasury at the beginning of the year (11,709,197) (12,185,222) (12,185,222)
Weighted effect of own shares purchased for cancellation (4,040,251) (3,388,739) (9,991,531)
Weighted effect of share-based incentives exercised 196,083 267,142 433,805
Weighted effect of shares purchased by the EBT (563,497) - (14,726)
795,135,611 819,787,711 813,336,856
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 2024
30 June 2023
31 December 2023
Number of shares
Number of shares
Number of shares
Weighted average number of ordinary shares (basic) 795,135,611 819,787,711 813,336,856
Dilutive impact of share-based incentives outstanding 1,783,649 2,005,735 2,002,000
796,919,260 821,793,446 815,338,856
8 Dividends
Dividends declared and paid by the Company were as follows:
6 months ended 30 June 2024 6 months ended Year ended 31 December 2023
30 June 2023
Pence per share £000 Pence per share £000 Pence per share £000
2022 final dividend paid 5.2 42,588 5.2 42,588
2023 interim dividend paid - - 3.6 29,084
2023 final dividend paid 5.7 45,226
5.7 45,226 5.2 42,588 8.8 71,672
Unclaimed dividends returned (12) (8) (21)
Net dividends included in the 71,651
statement of cash flows 45,214 42,580
After the period end the Board approved an interim dividend of 3.7p (2023:
3.6p) per qualifying ordinary share being £28,700,000 (2023: £29,084,000).
The 2023 final dividend of £45,226,000 (5.7p per qualifying share) was paid
on 24 May 2024. It was £104,000 lower than that reported in the 2023 annual
accounts due to a decrease in the ordinary shares entitled to a dividend
between 1 March 2024 and the -final dividend record date of 26 April 2024.
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 £33,748,000 (2023: £30,840,000) 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 2024 was 25.4% (2023: 23.7%). The difference between
the standard rate of 25.0% and the Group's effective rate of 25.4% as at 30
June 2024 is attributable to the impact of non-deductible items.
The net deferred tax asset of £1,690,000 (31 December 2023: £2,383,000 and
30 June 2023: £2,059,000) comprises a deferred tax asset of £3,089,000 (31
December 2023: £3,145,000 and 30 June 2023: £2,791,000) and a deferred tax
liability of £1,399,000 (31 December 2023: £762,000 and 30 June 2023:
£732,000).
The deferred tax asset is mostly in respect of equity settled share-based
incentives and provisions. 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 mostly in
respect of the intangible assets recognised on acquisition HomeViews in 2024
and the impact of 100% first year allowances on fixed assets.
The deferred tax assets and liabilities as at 30 June 2024 have been
calculated at a rate of 25% which is 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 2024 30 June 2023 31 December 2023
£000 £000 £000
Trade receivables 23,435 24,721 25,740
Less provision for impairment of trade receivables (990) (966) (1,249)
Net trade receivables 22,445 23,755 24,491
Prepayments 6,547 7,640 6,259
Interest receivable 62 232 405
Other debtors 874 171 319
29,928 31,798 31,474
11 Trade and other payables 30 June 2024 30 June 2023 31 December 2023
£000 £000 £000
Trade payables 2,224 2,429 2,057
Accruals 9,049 7,697 7,662
Other creditors 1,941 896 1,510
Other taxation and social security 13,707 12,849 13,508
26,921 23,871 24,737
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 2024 was
10,067,328 (2023: 10,031,573) representing 1.2% (2023: 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
(2023: £55,000,000). The maximum and minimum prices paid were £5.84
(2023: £5.89) and £5.00 (2023: £4.90) 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 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 as at 1 January 2023 (3,157) (4,952) (5,789) (13,898)
Shares purchased for SIP (725) (1,273) - (1,998)
Shares transferred to SIP 725 (725) - -
Share-based incentives exercised 1,297 557 230 2,084
SIP releases in the year - 72 - 72
Own shares held as at 31 December 2023 (1,860) (6,321) (5,559) (13,740)
Own shares held as at 1 January 2024 (1,860) (6,321) (5,559) (13,740)
Shares purchased for RSP (5,213) - - (5,213)
Share-based incentives exercised 36 289 140 465
SIP releases in the period - 23 - 23
Own shares held as at 30 June 2024 (7,037) (6,009) (5,419) (18,465)
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 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)
Own shares held as at 30 June 2023 1,191,400 865,412 12,008,267 14,065,079
Own shares held as at 1 January 2023 1,375,963 930,592 12,185,222 14,491,777
Shares purchased for SIP 127,240 226,335 - 353,575
Shares transferred to SIP (127,240) 127,240 - -
Share-based incentives exercised (346,044) (104,740) (476,025) (926,809)
SIP releases in the year - (12,200) - (12,200)
Shares held as at 31 December 2023 1,029,919 1,167,227 11,709,197 13,906,343
Own shares held as at 1 January 2024 1,029,919 1,167,227 11,709,197 13,906,343
Shares purchased for RSP 915,626 - - 915,626
Share-based incentives exercised (75,376) (53,670) (291,226) (420,272)
SIP releases in the period - (4,275) - (4,275)
Shares held as at 30 June 2024 1,870,169 1,109,282 11,417,971 14,397,422
(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 2024, the EBT held 1,870,169
(June 2023: 1,191,400) ordinary shares in the Company, representing 0.2% (June
2023: 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 2024 was
£10,042,808 (June 2023: £6,233,405).
(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 2024 the SIP Trust held
1,109,282 (June 2023: 865,412) ordinary shares in the Company of 0.1 pence
each, representing 0.1% (June 2023: 0.1%) 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 £5,956,844 (June 2023: £4,525,350).
(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 £10,067 (June
2023: £10,000) comprises the nominal value of ordinary shares cancelled
during the period.
Retained earnings
The loss on exercise of share-based incentives of £102,000 (June 2023:
£36,000) 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 Acquisitions and investments
HomeViews Limited
On 1 February 2024, the Group acquired the entire ordinary share capital of
HomeViews Limited, a business providing the UK's biggest community of verified
resident reviews of property developments, with a particular focus on the
build to rent sector. This augments our existing Rental Operators proposition,
provides a basis for introducing resident reviews into other business units,
and will leverage the scale benefits that the Rightmove platform and customer
base bring to the HomeViews' existing market. This acquisition has been
treated in line with IFRS 3 - business combinations.
2024
£000
Cash consideration 8,471
Total consideration 8,471
The following table provides a reconciliation of the amounts included in the
Consolidated Statement of Cash Flows:
Net cash flow on acquisition 2024
£000
Cash paid for subsidiary 8,471
Net of cash and cash equivalents acquired (519)
Net cash cost paid for subsidiary 7,952
Deferred consideration (400)
Net cash outflow included in the statement of cash flows 7,552
The total cash consideration paid of £8,471,000 excludes acquisition costs of
£590,000, which have been recognised as an expense in the period in the
Consolidated Statement of Comprehensive Income (£370,000 in the period and
£220,000 in December 2023). Included within transaction costs on acquisition
of £590,000 are legal and due diligence fees and stamp duty. The deferred
consideration will be payable on the second anniversary of the completion date
and has no performance obligations.
In the five-month period to 30 June 2024, HomeViews contributed revenue of
£0.7m and a trading profit after tax of £nil to the Group's results. If the
acquisition had occurred on 1 January 2024, management estimates that
consolidated revenue would have been £0.8m and consolidated profit for the
period would have been £nil. In determining these amounts, management has
assumed that the fair value adjustments, determined provisionally, that arose
on the date of acquisition would have been the same if the acquisition had
occurred on 1 January 2024.
The following table details the fair values of the assets and liabilities
acquired at the date of acquisition:
Net assets acquired Carrying values pre-acquisition Fair value adjustments Fair values
£000 £000 £000
Non-current assets
Property, plant and equipment 14 - 14
Intangible assets - IT development costs - 1,845 1,845
Intangible assets - customer relationships - 757 757
Total non-current assets 14 2,602 2,616
Current assets
Trade and other receivables 150 - 150
Cash and cash equivalents 519 - 519
Total current assets 669 - 669
Current liabilities
Trade and other payables (328) - (328)
Total current liabilities (328) - (328)
Non-current liabilities - deferred tax - (650) (650)
Fair value of net assets acquired 355 1,952 2,307
Goodwill
Goodwill arising from the acquisition has been recognised as follows:
£000
Total consideration 8,471
Fair value of net assets acquired (2,307)
Goodwill 6,164
The goodwill figure recognised above includes the knowledge and experience of
HomeViews which is established within the Rental Operators markets, their
skilled workforce and the reputation of the business. This is together with
the synergy benefits expected to the Group through leveraging the scale and
reach of the Rightmove customer base, its sales and marketing teams and
technological capability. For the purposes of impairment testing, goodwill
allocated to the relevant lowest cash generating unit which is the Agency only
unit. The Directors have considered the fair value of assets and liabilities
acquired and have concluded that there are no other intangible assets to be
recognised other than goodwill, computer software and customer relationships.
Investment in Coadjute Limited
During the period, the Group acquired a 7.4% holding in Coadjute Limited, a
business providing a nationwide infrastructure for the property market,
connecting buyers, sellers and property professionals with data, services, and
each other. Other investors include Lloyds Banking Group, Nationwide and
NatWest. The potential of a platform like Coadjute to, over time, digitise and
transform the house purchase journey - reducing the time to closure and
providing greater visibility of the progress of the transaction to buyers,
sellers and lenders - is immense, but this is a journey that will take time.
For that reason, the investment is strategic and longer-term in its nature and
the cost of £3.0m was therefore fully written down and recognised in the
Income Statement as a strategic research-related cost.
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 Deutsche Numis
MK7 8LE
Auditor
Ernst & Young LLP
Registered in Bankers
England no. 6426485
Financial calendar 2024 Barclays Bank Plc
Interim dividend record date 27 September 2024 Santander UK plc
Interim dividend payment 25 October 2024 HSBC UK Bank plc
Full year results 28 February 2025 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 2024 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 2024 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" (ISRE) 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 for 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
25 July 2024
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