REG - Rightmove Plc - Half-year Results 2022
29/07/2022 07:00
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RNS Number : 1695U Rightmove Plc 29 July 2022
HALF YEAR ANNOUNCEMENT FOR RIGHTMOVE PLC - SIX MONTHS ENDED 30 JUNE 2022
Rightmove plc, the UK's largest property portal, today announces its unaudited
results for the six months ended 30 June 2022.
Financial Highlights
H1 2022 H1 2021 Change vs 2021 % Change vs 2021
Revenue £162.7m £149.9m +£12.8m +9%
Operating profit £121.3m £114.9m +£6.4m +6%
Underlying operating profit((1)) £122.4m £117.1m +£5.3m +5%
Underlying operating profit excluding £122.4m £114.7m +£7.7m +7%
prior year 'other income'((2))
Interim dividend 3.3p 3.0p +0.3p +10%
Basic earnings per share 11.7p 10.8p +0.9p +8%
Underlying earnings per share((3)) 11.8p 11.0p +0.8p +7%
· Revenue up £12.8m/9% on 2021 to £162.7m, as customers continued to
increase their use of digital products and upgrade their packages
· Operating profit of £121.3m, up 6% on 2021 (2021: £114.9m)
· Excluding the one-off impact of 'other income' of £2.4m in the prior
year (in relation to the release in 2021 of the contingent consideration for
the acquisition of Van Mildert), underlying operating profit((2)) is up 7%
compared to 2021. Underlying operating profit((1)) of £122.4m, up 5% on 2021
(2021: £117.1m)
· Basic earnings per share up 8% to 11.7p (2021: 10.8p), underlying
earnings per share((3)) is up 7% to 11.8p (2021: 11.0p)
· Interim dividend for 2022 up 10% to 3.3p (2021: 3.0p) per ordinary
share
· £100.3m of cash returned to shareholders through share buybacks and
dividends in the first half of 2022 (2021: £128.3m)
· Cash and cash equivalents, including money market deposits, at the end
of the period of £43.9m (31 December 2021: £48.0m)
Operational highlights
· Time on site averaged 1.5 billion((4)) minutes per month over the
period (2021: 1.7 billion; 2019: 1.1 billion); 36% higher than the
pre-pandemic record from 2019, reflecting Rightmove's trusted brand
· Average Revenue Per Advertiser (ARPA) ((5)) up 11% to £1,290 per
month (30 June 2021: £1,163)
· Record Agency ARPA growth, up £132 (12%), and strong New Homes ARPA
growth, up £117 (9%), driven primarily by increased product purchases and
package prices
· Stable overall membership numbers since the start of the year at
18,934, with 16,116 Agency branches and 2,818 New Homes developments (31
December 2021: 16,110 and 2,859)
· Strong housing market combined with Rightmove's market leading
position led to highest net growth in sales agent branches since June 2016,
offset by a reduction in lettings-only branches
· Record number of organic upgrades to our premium Optimiser 2020
package and successful migration of Optimiser 2015 customers to new packages,
with 34% of independent agents now subscribing to Optimiser, up from 31% in
June 2021
· Innovative Native Search Advert for Agency customers launched in June,
bringing agents' promotional short form videos to the UK's largest property
audience for the first time
· Initial release of the "lead-to-keys" tenant digital workflow, a
market first, part of our digitisation of the rental journey
(1) Underlying operating profit is operating profit before the
share-based payments including the related NI charge
(2) Underlying operating profit excluding prior year 'other income' removes
the impact of £2.4m 'other income' in 2021, which represented the release of
a one-off contingent consideration provision
(3) 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
(4) Source: Comscore, June 2022
(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.
Outlook
The property market in the first half of 2022 cooled slightly from the
frenetic pace of 2021 but remained healthy and ahead of 2019. Despite growing
economic uncertainty towards the end of the half, there was little reduction
in sales activity or demand.
New agent formation may slow following the upturn in the first half. Agency
branch numbers are expected to be broadly stable in the second half. The
slightly cooler market may improve the availability of new homes developments
by the end of the year, with development numbers also expected to be broadly
stable through to the end of the year.
ARPA growth was strong in the first half as customers took advantage of
Rightmove's leading digital solutions to compete effectively for new listings.
In 2022, we returned to a more normal pattern of package upgrades and price
reviews, with the majority of the activity being in the first half. Therefore,
we expect ARPA growth in the second half of the year broadly to mirror
pre-pandemic growth levels, while still likely to exceed previous guidance for
the full year.
We maintain our disciplined cost management, with the phasing of costs to be
slightly weighted to the second half and consistent with previous indications
of between 25% and 26% of revenues.
While mindful of the economic uncertainty, the strong pipeline of product
delivery planned in the second half of the year, a culture of continuous
innovation and a commitment to continue to make home moving more digital for
our customers and consumers, give the Board confidence in delivering its
expectations for the full year and beyond.
Peter Brooks-Johnson, Chief Executive Officer, said:
"Our success during the first half of the year demonstrated the ongoing
resilience of our customer base and the continuing love for and trust in our
brand. Despite the housing market cooling slightly, activity on our platform
was significantly higher than in the pre-pandemic market of 2019, with
home-hunters using Rightmove for 1.5 billion minutes every month. Our
continuous improvements and innovation have helped to increase engagement from
home-hunters in tools such as sold prices, along with further investment from
agents and developers as they continue to believe in the effectiveness of our
digital products and tools to help them run and grow their businesses".
"I'm excited by our recent developments to make the process of renting a
property easier for tenants and agents. The new lead-to-keys workflow will
give tenants the ability to search, view, secure and contract on a property,
all from their mobile phones. I hope that this will alleviate some of the
stress in this very competitive rental market".
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 Peter Brooks-Johnson, CEO, and Alison Dolan, CFO.
Enquiries: Investor Relations
Investor.Relations@rightmove.co.uk
(mailto:Investor.Relations@rightmove.co.uk)
Rightmove Press Office Press@rightmove.co.uk
(mailto:Press@rightmove.co.uk)
Half Year Statement
Rightmove remains the place that home-hunters turn to, to research the market
and to find their next property. Home-hunters spent an average of over 1.5
billion minutes per month on the platform in the first half of the year, which
- while lower than 2021 - was up 36% on the pre-pandemic record in 2019.
Our restless innovation continued to develop our offer to home-hunters. For
example, a ground-up redesign of our Sold Property price tool saw home-hunter
engagement increase by nearly 20% since launch, and a combination of new
features such as property shortlists and enhanced personalisation saw the
number of signed-in users increase by almost 40% since the start of the year.
We continue to innovate and are proud to have received the 'Best Contextual
Innovation" award in the 2022 Thinkbox TV planning awards.
As the market remained stock-constrained and competitive during the first half
of the year, our focus has been to support our customers in finding and then
selling properties - through providing both new products and enhancements to
existing products - as well as on providing home-hunters with the tools they
need to assess properties they view on our site.
In response, agents have chosen to spend more on our packages and products,
and Agency revenue and ARPA have both grown by a record 12% as a result.
Optimiser 2015 has now been retired, as customers have all transferred onto
other packages, with 34% of independent agents now subscribed to our premium
Optimiser 2020 package. Over 35% of our customers continue to spend
incrementally on new products on top of their core packages, with vendor lead
products such as Rightmove Discover and Local Valuation Alert being the
fastest growing products. Leads to agents increased by 12% on the comparable
period, and Agency retention has been at a record high of 95%.
New Homes developers have continued to face the challenges of record demand
for new homes, with some developments being fully sold off-plan, reducing
developers' needs to market these properties. Nonetheless, New Homes ARPA grew
by 9% in the first half, largely driven by our new Native Search Advert
product which launched at the end of 2021.
Our smaller business units have all had double digit growth in the first
half. Commercial real estate, in particular, grew by 20% on 2021, driven by
the increased digitisation of the Commercial sector. The Overseas business
grew by 30%, benefiting from the travel market re-opening post Covid
restrictions.
Our focus on making the home moving journey more digital continues apace, with
notable releases targeting the digital rental journey. The 'Lead-to-Keys'
tenancy digital workflow was launched in June, which allows lettings agents to
create contracts and generate offers, sign and store contracts digitally, and
receive holding deposits via open banking. Further functionality will be
introduced in H2. We also introduced our first open banking-based reference;
increasing turnaround speed and reducing the input required from tenants.
These two releases create a market first, with tenants able to search, secure
and contract on a property entirely from their mobile device.
Preparations are nearly complete for the launch of our integrated,
lender-backed Mortgage in Principle. Again, a market first, which will allow
home-hunters to tailor their property searches, confident of a mortgage once
they find the right property. In addition, this will generate better leads for
customers, helping them to be more efficient
Our focus on environmental, social and governance matters remains high on our
strategic agenda. Our near-term environmental targets are in the process of
validation with the SBTi.
Our teams underpin everything we do, and we are delighted to have successfully
returned to our offices at least two days each week, to benefit from time
spent together to enhance collaboration and build connections, while retaining
the efficiency benefits remote working can bring. Our field-based teams have
also returned to meeting customers face to face, which has been welcomed by
the Rightmove teams and customers alike. We have continued with our popular
"How to Thrive" wellbeing and personal development workshops, which have been
enthusiastically embraced as everyone adjusts to a post-pandemic world.
Financial performance
Revenue
Revenue increased by £12.8m/9% year on year to £162.7m (2021: £149.9m) due
to strong product uptake from customers, increasing ARPA during the first half
of 2022.
H1 2022 H1 2021 Change vs 2021 £m Change vs 2021 %
£m
£m
Agency 122.2 109.6 12.6 12%
New Homes 24.7 25.3 (0.6) (2)%
Other 15.8 15.0 0.8 5%
Total revenue 162.7 149.9 12.8 9%
30 June 2022 31 Dec 2021 30 June 2021 Change vs Dec 2021 Change vs Dec 2021 %
Agency branches 16,116 16,110 16,052 6 0%
New Homes devs 2,818 2,859 3,064 (41) (1)%
Total membership 18,934 18,969 19,116 (35) 0%
Agency revenue increased by £12.6m year on year to £122.2m, as we continued
to see strong product purchase and package upgrades - as a result of the value
our products deliver - and we secured core membership price increases through
customers' contract renewal processes. Agency ARPA((1)) increased by £132/12%
to £1,262 (June 2021: £1,130) and Agency customer numbers were flat on 31
December 2021, ending the first half of the year at 16,116 branches.
New Homes revenue decreased by £0.6m to £24.7m. The buoyant market meant
that the New Homes' market remained forward-sold for the entirety of the
period, with some developments not being advertised as a result. This was
reflected in the gradual reduction in the number of developments listed - down
by 41 in the first half of the year to 2,818. The impact of reduced membership
was largely offset by strong product spend, with developers particularly
investing in our new Native Search Adverts product. New Homes ARPA((2))
increased by £117/9% to £1,446 per development per month (June 2021:
£1,329).
Other revenue increased by £0.8m to £15.8m. Commercial, Overseas, Data
Services and Third Party all saw double digit percentage growth, with
Commercial real estate, in particular, growing by 20% year on year. Growth in
these areas was, however, largely offset by a £1.7m decline in Mortgage
revenues as we moved away from our previous fixed marketing fee, towards a
procuration fee model which has more long-term upside potential.
Administrative costs
Operating costs increased by £3.9m from £37.4m to £41.3m.
Underlying operating costs((3)) (defined as operating costs before the
inclusion of share-based payments charges and related national insurance)
increased £5.1m to £40.2m (2021: £35.2m). The increase in costs is largely
due to higher salary costs (£3.9m increase), reflecting ongoing investment in
our product development and sales teams.
Operating profit
Operating profit increased by £6.4m to £121.3m (2021: £114.9m), with an
operating profit margin of 75% (2021: 77%).
H1 2022 H1 2021 Change vs Change vs 2021 %
£m
£m
2021 £m
Revenue 162.7 149.9 12.8 +9%
Other income - 2.4 (2.4) (100)%
Administrative expenses (41.3) (37.4) (3.9) (10)%
Operating profit 121.3 114.9 6.4 +6%
Operating Margin 75% 77%
Underlying operating profit((4)) of £122.4m, before the impact of the
share-based incentive charges and related national insurance of £1.1m,
increased by £5.3m/5% (2021: £117.1m), with an underlying operating profit
margin((5)) of 75% (2021: 78%).
The prior year results and margins reflected other income of £2.4m, a one-off
credit representing the release of a contingent consideration provision in
relation to the acquisition of Rightmove Landlord and Tenant Services
(previously Van Mildert) in 2019, as the threshold performance criteria for
pay out were not met. Excluding the impact of the prior year other income, the
comparative prior year operating margin was 75%, the underlying operating
margin was 77% and the increase in the underlying profit in 2022 would be
£7.7m/7%.
Earnings per share (EPS)
Basic EPS increased by 0.9p to 11.7p (2021: 10.8p), driven by the increase in
profit and the share buyback programme, which reduced the weighted average
number of ordinary shares in issue to 841.5m (2021: 865.9m)
Underlying EPS((6)) (based on underlying profit) increased by 7% to 11.8p
(2021: 11.0p)
Summary consolidated statement of financial position
30 June 31 December 2021 30 June Change from
2022 £m 2021* Dec 2021
£m £m £m
Property, plant and equipment 11.5 12.0 13.3 (0.5)
Intangible assets 21.7 21.1 21.6 0.6
Deferred tax asset 1.5 2.2 2.0 (0.7)
Trade and other receivables 22.6 23.1 22.0 (0.5)
Contract assets 0.4 0.1 0.1 0.3
Income tax receivable 0.9 1.0 0.1 (0.1)
Cash including money market deposits 43.9 48.0 67.7 (4.1)
Trade and other payables (20.1) (22.8) (22.6) 2.7
Contract liabilities (2.2) (2.6) (1.8) 0.5
Lease liabilities (10.6) (11.0) (12.0) 0.4
Provisions (0.7) (0.6) (0.6) (0.1)
Net assets 68.9 70.5 89.8
*The comparative position as at 30 June 2021 includes a reclassification,
applied to align with presentation at 31 December 2021 - see note 1
Rightmove's balance sheet as at 30 June 2022 shows total equity of £68.9m
(December 2021: £70.5m). The cash position reduced to £43.9m, consistent
with the continued returns to shareholders by way of share buybacks and
dividends.
Trade receivables of £18.4m, included within trade and other receivables, are
in line with December 2021 (£18.6m). Trade and other payables decreased due
to timing of accruals. 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 £122.1m (June 2021: £121.5m) and operating cash
conversion in excess of 100%((7)).
The closing Group cash balance at 30 June 2022, including money market
deposits, was £43.9m (December 2021: £48.0m). Surplus cash continues to
be invested in short-term, easily accessible money market deposits, including
in a green money-market fund.
The Group bought back and cancelled 9.8m ordinary shares during the period
(2021: 14.9m), at a cost of £60.0m (excluding expenses) as part of its
ongoing share buyback programme (2021: £89.4m). Dividends totalling £40.3m
in relation to the final 2021 dividend were also paid during the year (2021:
£38.9m).
Cash capital expenditure largely represents investment in intangible assets -
primarily in relation to our new ERP system - and lease payments.
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 3.3p per ordinary share, which will be paid on 28 October 2022 to all
shareholders on the register at 30 September 2022.
We intend to continue the share buyback programme in the second half of 2022.
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 £122.1m (2021: 121.5)
compared to operating profit as reported in the income statement of £121.3m
(2021: £114.9m).
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.
Key risks
The risks set out in the 2021 Annual Report remain relevant for 2022. There
has been no change to the definition of these risks since disclosed in the
Group's 2021 Annual Report:
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 to those using our sites.
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 loss of key data, may disrupt the efficiency and
functioning of the Group's day-to-day operations.
Securing and retaining the right talent Our continued success is dependent on our ability to attract, recruit, retain
and motivate our highly skilled workforce. An inability to recruit and retain
talented people could impact our ability to maintain our financial performance
and deliver growth.
Further detail on these risks and the ways in which they are managed is
available in the Rightmove plc Annual Report 2021.
Next trading update
Our next scheduled reporting date is 2 March 2023, when we will announce our
results for the year ending 2022.
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 2022 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 2022 and any material changes in the related-party transactions described
in the Annual report and Accounts 2021.
The Directors of Rightmove plc are listed in the Annual report and Accounts
2021. 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 28 July 2022 and signed on its behalf by:
Peter Brooks-Johnson
Alison
Dolan
Chief Executive Officer
Chief
Financial Officer
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 June 2022
Note Six months ended Six months ended Year ended
30 June 2022
30 June 2021*
31 December
2021
£000 £000 £000
Revenue 5 162,651 149,890 304,886
Other income - 2,407 2,407
Administrative expenses (41,312) (37,392) (81,193)
Operating profit 121,339 114,905 226,100
Operating profit before share-based incentive charge 122,435 117,142 230,965
Share- based incentive charge
6 (1,096) (2,237) (4,865)
Financial income 100 12 20
Financial expenses (226) (248) (471)
Net financial expenses (126) (236) (451)
Profit before tax 121,213 114,669 225,649
Income tax expense 9 (22,842) (21,374) (42,555)
Profit for the period being total comprehensive income 98,371 93,295 183,094
Attributable to:
Equity holders of the Parent 98,371 93,295 183,094
Earnings per share (pence)
Basic 7 11.7 10.8 21.3
Diluted 7 11.7 10.8 21.3
* The comparative period ended 30 June 2021 includes a reclassification
between Administrative Expenses to Other Income to align with the presentation
at 31 December 2021. See note 1.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
Company number 06426485
at 30 June 2022
Note 30 June 2022 30 June 2021* 31 December 2021
£000 £000 £000
Non-current assets
Property, plant and equipment 11,498 13,316 11,990
Intangible assets 21,739 21,631 21,141
Deferred tax assets 9 1,512 2,016 2,169
Total non-current assets 34,749 36,963 35,300
Current assets
Trade and other receivables 10 22,588 21,961 23,112
Contract assets 5 371 150 120
Income tax receivable 866 65 1,057
Money market deposits 5,014 - 5,003
Cash and cash equivalents 38,923 67,686 42,985
Total current assets 67,762 89,862 72,277
Total assets 102,511 126,825 107,577
Current liabilities
Trade and other payables 11 (20,121) (22,644) (22,757)
Lease liabilities (2,319) (2,138) (2,177)
Contract liabilities 5 (2,164) (1,765) (2,633)
Provisions 12 (64) - (61)
Total current liabilities (24,668) (26,547) (27,628)
Non-current liabilities
Lease liabilities (8,305) (9,867) (8,832)
Provisions 12 (607) (592) (585)
Total non-current liabilities (8,912) (10,459) (9,417)
Total liabilities (33,580) (37,006) (37,045)
Net assets 68,931 89,819 70,532
Equity
Share capital 850 872 860
Other reserves 581 560 572
Retained earnings (net of own shares held) 67,500 88,387 69,100
Total equity attributable to the equity holders of the Parent
68,931 89,819 70,532
* The comparative position as at 30 June 2021 includes a reclassification,
applied to align with the presentation at 31 December 2021 - see note 1.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
for the six months ended 30 June 2022
Note 6 months ended 6 months ended Year ended
30 June 2022
30 June 2021
31 December 2021
£000 £000 £000
Cash flows from operating activities
Profit for the period 98,371 93,295 183,094
Adjustments for:
Depreciation charges 1,759 1,697 3,448
Amortisation charges 467 499 991
Financial income (100) (12) (20)
Financial expenses 226 248 471
Non-cash gains - - (84)
Gain on disposal of fixed assets - 15 -
Share-based payments 6 1,358 1,940 3,923
Income tax expense 9 22,842 21,374 42,555
Operating cash flow before changes in working capital
124,923 119,056 234,378
Decrease in trade and other receivables 10 556 1,485 338
(Decrease)/increase in trade and other payables 11 (2,636) 3,046 3,832
Increase/(decrease) in provisions 12 25 (2,418) (2,989)
(Increase)/decrease in contract assets 5 (251) 184 214
(Decrease)/increase in contract liabilities 5 (469) 195 1,063
Cash generated from operating activities 122,148 121,548 236,836
Financial expenses paid (232) (118) (209)
Income taxes paid (22,752) (20,129) (41,611)
Net cash from operating activities
99,164 101,301 195,016
Cash flows used in investing activities
Interest received on cash and cash equivalents 57 17 23
Increase in money market deposits - - (5,003)
Acquisition of property, plant and equipment (463) (388) (700)
Acquisition of intangible assets (1,079) (19) (19)
Net cash from investing activities (1,485) (390) (5,699)
Cash flows from financing activities
Net dividends paid 8 (40,306) (38,898) (64,447)
Purchase of own shares for cancellation 13 (59,981) (89,374) (174,369)
Purchase of own shares for share incentive plans - - (1,284)
Share-related expenses (421) (577) (1,224)
Payment of lease liabilities (1,170) (1,226) (2,464)
Proceeds on exercise of share-based incentives 137 160 766
Net cash used in financing activities (101,741) (129,915) (243,022)
Net increase in cash and cash equivalents (4,062) (29,004) (53,705)
Cash and cash equivalents at 1 January 42,985 96,690 96,690
Cash and cash equivalents at period end
38,923 67,686 42,985
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
for the six months ended 30 June 2022
Share Own shares held Other Reverse acquisition Retained Total
capital
reserves
reserve
earnings
equity
£000 £000
£000
£000
£000
£000
At 1 January 2021 887 (11,552) 407 138 133,265 123,145
-
Total comprehensive income - - - 93,295 93,295
Profit for the period
Transactions with owners recorded directly in equity -
Share-based payments - - - - 1,940 1,940
Tax debit in respect of share-based incentives recognised directly in equity - - - - 178 178
Exercise of share-based incentives - 469 - - (309) 160
Cancellation of own shares (15) - 15 - (89,374) (89,374)
Net Dividends paid - - - - (38,898) (38,898)
Share-related expenses - - - - (627) (627)
At 30 June 2021
872 (11,083) 422 138 99,470 89,819
At 1 January 2021 887 (11,552) 407 138 133,265 123,145
Total comprehensive income
Profit for the year - - - - 183,094 183,094
Transactions with owners recorded directly in equity
Share-based payments - - - - 3,923 3,923
Tax credit in respect of share-based incentives recognised directly in equity - - - - 928 928
Net dividends - - - - (64,447) (64,447)
Exercise of share-based incentives - 1,248 - - (482) 766
Purchase of shares for share incentive plan - (1,284) - - - (1,284)
Cancellation of own shares (27) - 27 - (174,369) (174,369)
Share-related expenses - - - - (1,224) (1,224)
At 31 December 2021
860 (11,588) 434 138 80,688 70,532
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)
Share-related expenses - - - - (421) (421)
At 30 June 2022
850 (11,421) 444 138 78,920 68,931
NOTES
1 General information
Rightmove plc (the Company) is a 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 2022 comprise the Company and 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 2021 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
2022, have been prepared in accordance with IAS 34 Interim Financial
Reporting, under UK-adopted international accounting , 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 2021 ('last
annual financial statements'). The interim financial statements do not include
all of 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 2022 have
not had an impact on the interim consolidated financial statements of the
Group.
The interim financial statements were approved by the Board of directors on 28 July 2022 and the results for the current and comparative period are unaudited. The auditor, EY 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 2021 were approved by the
Board of Directors on 25 February 2022 and have been delivered to the
Registrar of Companies. The report of the auditors was unqualified.
Reclassifications within the comparative period of 30 June 2021
The comparative results for the six months ended 30 June 2021, within the consolidated interim statement of comprehensive income, includes a reclassification of other income (a one-off credit of £2.4m in relation to the release of a contingent consideration provision) from administrative expenses to other income. This aligns to the presentation in last annual financial statements for the year ended 31 December 2021. There was no impact on earnings per share.
The consolidated interim statement of financial position as at 30 June 2021
includes two reclassifications which aligns the presentation to the 31
December 2021 financial statements and aides comparison between periods: the
deferred tax liability (£1.0m) has been netted off within the deferred tax
asset balance - as the assets and liabilities relate to income taxes levied by
the same tax authority and the Group intends to settle the current tax assets
and liabilities on a net basis - and the employee holiday pay provision
(£0.6m) has been reclassified from provisions to accruals (see notes 11 and
12).
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 2022 30 June 2021
£000 £000
Profit for the year 98,371 93,295
Share-based incentives charge 1,358 1,940
NI on share-based incentives (262) 297
Impact on tax charge (230) (489)
Underlying profit 99,237 95,043
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 2022 30 June 2021
£000 £000
Operating profit 121,339 114,905
Share-based incentives charge 1,358 1,940
NI on share-based incentives (262) 297
Underlying operating profit 122,435 117,142
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 2022 30 June 2021
£000 £000
Administrative expenses 41,312 37,392
Share-based incentives charge (1,358) (1,940)
NI on share-based incentives 262 (297)
Underlying costs 40,216 35,155
Going concern
The directors have performed a detailed and extended going concern review and
tested the Group's liquidity in a range of scenarios, as set out below.
Throughout the period, the Group remained debt-free, strongly cash generative
(101% of operating profit) and had a cash balance of £38.9m and money market
deposits of £5.0m at 30 June 2022 (31 December 2021: cash balance £43.0m
and money market deposits £5.0m).
The Group bought back shares to the value of £60.0m by 30 June 2022 (period
ended 30 June 2021: £89.4m) and paid the 2021 final dividend of £40.3m in
May 2022 (period ended 30 June 2021: £38.9m).
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 2023 ("the going concern period") 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 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
the period to 31 December 2023 and have therefore prepared the financial
statements on a going concern basis.
2 Significant 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 2021. The policy for recognising and
measuring income taxes is consistent with that applied in the previous interim
period and is described in note 9.
3 Judgements and estimates
In preparing these interim financial statements, management has made
judgements and estimates that affect the application of accounting policies
and the reported amounts of assets and liabilities, income and expenses.
Actual results may differ from these estimates. The significant judgements
made by management in applying the Groups' accounting policies and the key
sources of estimation uncertainty were the same as those described in the last
annual financial statements.
4 Operating segments
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 which include our Third Party
advertising and Data Services; and the new mortgages business.
All revenues in all periods are derived from third parties and the
disaggregated revenue is included within note 5.
The Chief Operating Decision Maker does not separately monitor segment 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 therefore have one reportable segment, being the consolidated result
and no further IFRS 8 disclosures are required.
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 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
Six months ended Estate Agency New Homes Other Total
30 June 2021 £000 £000 £000 £000
Revenue stream
Property products 109,532 25,328 6,600 141,460
Non-property products - - 8,430 8,430
109,532 25,328 15,030 149,890
Year ended Estate Agency New Homes Other Total
31 December 2021 £000 £000 £000 £000
Revenue stream
Property products 224,490 50,026 14,211 288,727
Non-property products - - 16,159 16,159
224,490 50,026 30,370 304,886
Contract balances
The following table provides information about receivables, contract assets
and contract liabilities from contracts with customers.
30 June 30 June 31 December 2021
Note 2022 2021 £000
£000 £000
Trade receivables (included in trade and other receivables)
10 18,430 18,215 18,645
Contract assets 371 150 120
Contract liabilities (2,164) (1,765) (2,633)
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
2022:
• 241,089 PSP awards were granted on 3 March 2022 subject to Earnings Per
Share (EPS) and Total Shareholders Return (TSR) performance. Performance will
be measured over three financial years (1 January 2022 - 31 December 2024).
The vesting on 3 March 2025 of 50% of the 2022 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.
• 505,524 DSP nil cost shares were awarded to executives and senior
management on 3 March 2022 following the achievement of the 2021 internal
performance targets, with the right to exercise the shares deferred by three
years 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 2022 was £1,096,000 (2021: £2,237,000). The charge in relation to
the share-based payments relating to all share-based incentive plans was
£1,358,000 (2021: £1,940,000). In addition, the related National insurance
credit for the six months ended 30 June 2022 relating to all awards was
£262,000 (2021: £297,000 charge).
7 Earnings per share (EPS)
Pence per share Pence per
£000 Basic share
Diluted
Six months ended 30 June 2022 98,371 11.7 11.7
Profit after tax
Underlying profit after tax 99,237 11.8 11.8
Six months ended 30 June 2021
Profit after tax 93,295 10.8 10.8
Underlying profit after tax 95,043 11.0 11.0
Year ended 31 December 2021
Profit after tax 183,094 21.3 21.3
Underlying profit after tax 186,815 21.8 21.7
Weighted average number of ordinary shares (basic)
6 months ended 6 months ended Year ended
30 June 2022
30 June 2021
31 Dec 2021
Number of shares
Number of shares
Number of shares
Issued ordinary shares at 1 January less ordinary shares held by the EBT and 857,732,339 884,234,565 884,234,565
SIP Trust
Less own shares held in treasury at the beginning of the year (12,480,472) (13,285,490) (13,285,490)
Weighted effect of own shares purchased for cancellation (3,811,957) (5,223,154) (12,603,891)
Weighted effect of share-based incentives exercised 53,412 141,726 436,477
Weighted effect of shares purchased by the EBT - - (11,640)
841,493,322 865,867,647 858,770,021
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 2022
30 June 2021
31 December 2021
Number of shares
Number of shares
Number of shares
Weighted average number of ordinary shares (basic) 841,493,322 865,867,647 858,770,021
Dilutive impact of share-based incentives outstanding 1,641,293 1,946,686 1,511,725
843,134,615 867,814,333 860,281,746
8 Dividends
Dividends declared and paid by the Company were as follows:
6 months ended 30 June 2022 6 months ended Year ended 31 December 2021
30 June 2021
Pence per share £000 Pence per share £000 Pence per share £000
2020 final dividend paid - - 4.5 38,900 4.5 38,900
2021 interim dividend paid - - - - 3.0 25,594
2021 final dividend paid 4.8 40,312 - - - -
4.8 40,312 4.5 38,900 7.5 64,494
Unclaimed dividends returned (6) (2) (47)
Net dividends included in the
statement of cash flows 40,306 38,898 64,447
After the period end the Board approved an interim dividend of 3.3p (2021:
3.0p) per qualifying ordinary share being £27,800,000 (2021: £25,594,000).
The 2021 final dividend of £40,312,000 (4.8p per qualifying share) was paid
on 27 May 2022. It was £91,000 lower than that reported in the 2021 annual
accounts due to a decrease in the ordinary shares entitled to a dividend
between 25 February 2022 and the interim dividend record date of 29 April
2022.
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 £22,842,000 (2021: £21,374,000) 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 2022 was 18.8% (2021: 18.6%). The difference between
the standard rate of 19.0% and the effective rate of 18.8% as at 30 June 2022
is attributable to the impact of the capex and the related super deductions.
The net deferred tax asset of £1,512,000 (30 June 2021: £2,016,000)
comprises a deferred tax asset of £2,478,000 (2021: £3,023,000) and a
deferred tax liability of £966,000 (30 June 2021: £1,007,000).
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 2022 have been calculated at a rate of between 19.0%
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.
30 June 2022 30 June 2021 31 December 2021
10 Trade and other receivables
£000 £000 £000
Trade receivables 18,430 18,215 18,645
Less provision for impairment of trade receivables (724) (706) (715)
Net trade receivables 17,706 17,509 17,930
Prepayments 4,755 4,452 5,028
Interest receivable 33 - 1
Other debtors 94 - 153
22,588 21,961 23,112
30 June 2022 31 December 2021
11 Trade and other payables 30 June 2021*
£000 £000 £000
Trade payables 2,138 1,931 3,056
Accruals 5,759 7,115 7,748
Other creditors 875 562 979
Other taxation and social security 11,349 13,036 10,974
20,121 22,644 22,757
* The comparative position as at 30 June 2021 includes a reclassification,
applied to align with the presentation at 31 December 2021 - see note 1 &
note 12
12 Provisions
Dilapidations provision Employee Provisions Contingent consideration
£000 £000 £000 Total
£000
At 1 January 2021 562 666 2,407 3,635
Utilised during the year - (42) - (42)
Charged in the period 30 - - 30
Released in the period - - (2,407) (2,407)
Reclassified in the period - (624) - (624)
At 30 June 2021* 592 - - 592
Current - - - -
Non-current 592 - - 592
At 1 January 2021 562 666 2,407 3,635
Utilised during the year - (666) - (666)
Charged in the year 84 350 - 434
Released in the year - - (2,407) (2,407)
Reclassified in the year - (350) - (350)
At 31 December 2021 646 - - 646
Current 61 - - 61
Non-current 585 - - 585
At 1 January 2022 646 - - 646
Utilised during the period - - - -
Charged in the period 25 - - 25
At 30 June 2022 671 - - 671
Current 64 - - 64
Non-current 607 - - 607
* The comparative position as at 30 June 2021 includes a reclassification,
applied to align with the presentation at 31 December 2021, where employee
provisions are reclassified to accruals within note 11 of Trade and Other
Payables.
The dilapidations provision is in respect of the Group's leased properties
where the Group has obligations to make good dilapidations. The non-current
liabilities are estimated to be payable over periods from one to five years.
The Group accrues amounts in relation to employee related holiday pay
(employee provisions), based on the estimated future payroll cost to the Group
and has not been discounted as the time value of money is insignificant. In
the prior year, the total amount was reclassified to be shown as an accrual
within Note 11 Trade and Other Payables.
At the point of acquisition in 2019, the present value of the contingent and
deferred consideration arising on acquisition of Rightmove Landlord and Tenant
Services Limited was £2,407,000. The fair value was reassessed at 30 June
2021 as nil, due to the possibility of meeting the threshold performance
criteria within the remaining timescales, to the end of 2021, being remote.
The consideration was released, at that point, to other income within the
income statement.
13 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 2022 was
9,783,381 (2021: 14,881,349) representing 1.2 % (2021: 1.7%) 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 £59,981,000
(2021: £89,374,000). The maximum and minimum prices paid were £6.89
(2021: £6.69) and £5.19 (2021: £5.52) 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 2021 (1,825) (3,415) (6,312) (11,552)
Share-based incentives exercised in the period 23 277 155 455
SIP releases in the period - 14 - 14
Own shares held as at 30 June 2021 (1,802) (3,124) (6,157) (11,083)
Own shares held as at 1 January 2021 (1,825) (3,415) (6,312) (11,552)
Shares purchased for SIP (1,127) (157) - (1,284)
Shares transferred to SIP 1,127 (1,127) - -
Share-based incentives exercised in the year 273 560 383 1,216
SIP releases in the year - 32 - 32
Own shares held as at 31 December 2021 (1,552) (4,107) (5,929) (11,588)
Own shares held as at 1 January 2022 (1,552) (4,107) (5,929) (11,588)
Share-based incentives exercised in the period 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 - number of shares
Total
EBT shares reserve SIP shares reserve Treasury shares own shares held
Own shares held as at 1 January 2021 1,395,476 757,575 13,285,490 15,438,541
Share-based incentives exercised in the period (47,875) (65,881) (325,452) (439,208)
SIP releases in the period - (2,325) - (2,325)
Own shares held as at 30 June 2021 1,347,601 689,369 12,960,038 14,997,008
Own shares held as at 1 January 2021 1,395,476 757,575 13,285,490 15,438,541
Shares purchased for SIP 148,147 20,278 - 168,425
Shares transferred to SIP (148,147) 148,147 - -
Share-based incentives exercised in the year (237,058) (133,200) (805,018) (1,175,276)
SIP releases in the year - (5,800) - (5,800)
Shares held as at 31 December 2021 1,158,418 787,000 12,480,472 14,425,890
Own shares held as at 1 January 2022 1,158,418 787,000 12,480,472 14,425,890
Share-based incentives exercised in the period (34,790) (27,935) (13,298) (76,023)
SIP releases in the period - (6,625) - (6,625)
Shares held as at 30 June 2022 1,123,628 752,440 12,467,174 14,343,242
(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 2022, the EBT held 1,123,628
(June 2021: 1,347,601) ordinary shares in the Company, representing 0.1%
(2021: 0.2%) of the ordinary shares in issue (excluding shares held in
treasury). The market value of the shares held by the EBT at 30 June 2022 was
£6,386,702 (2021: £8,745,930).
(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 2022 the SIP Trust held
752,440 (June 2021: 689,369) ordinary shares in the Company of 0.1 pence each,
representing 0.09% (2021: 0.08%) 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 £4,276,869 (June 2021: £4,415,595).
(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
(2021: £15,000) 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.
14 Related Party Transactions
Rightmove continues to undertake related party transactions with both
Directors and subsidiary companies of the group. The 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: Peter Brooks-Johnson Rightmove plc Financial adviser
Chief Financial Officer: Alison Dolan 2 Caldecotte Lake UBS Investment Bank
Company Secretary: Sandra Odell 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
EY LLP
Registered in Bankers
England no. 6426485
Financial calendar 2022 Barclays Bank Plc
Interim dividend 28 October 2022 Santander UK plc
Full year results 2 March 2023 HSBC UK Bank plc
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 2022 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 2022 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
28 July 2022
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