RNS Number : 4803K
M&C Saatchi PLC
22 September 2016
 

 

 

 

 

 

 

 

M&C SAATCHI PLC

 

 

 

 

 

INTERIM RESULTS

 

 

SIX MONTHS ENDED

30 JUNE 2016

 

 

 

 

 

 

 

22 September 2016

 

 

 

 

 

M&C Saatchi PLC

Interim results for the six months ended 30 June 2016

 

22 September 2016

Strong revenue and earnings growth



Financial Highlights 2016

Growth versus 2015

Revenue

£100.2m

+ 15% (2015: £87.5m)

 

Revenue in constant currencies

Like-for-like revenue

Operating Profit

 

 

£11.3m

+ 14%

+ 6%

+ 22% (2015: £9.3m)

 

Profit Before Tax

£11.4m

+ 19% (2015: £9.6m)

 

Earnings

EPS

£7.7m

10.71p

+ 22% (2015: £6.3m)

+ 20% (2015: 8.96p)

 

Dividend

1.85p

+ 15% (2015: 1.61p)

 

The highlights are headline results, see note on next page for definition.

 

 

Operational Highlights

·      Successful first half with strong revenue momentum and earnings growth

·      Global Network performed mostly very well:

°           UK: like-for-like revenues down 1%

°           Europe: like-for-like revenues up 12%

°           Middle East and Africa: like-for-like revenues up 19%

°           Asia and Australasia: like-for-like revenues up 5% 

°           Americas: like-for-like revenues up 27%, constant currency revenues were up 93%

o  Net borrowing of £8.5m following equity investments in New York

o  Interim dividend increased 15% to 1.85p 

 

 

 

 

 

 

Commenting on the results, David Kershaw, Chief Executive, said:

 

"Momentum across the Group remains strong, producing positive revenue and earnings growth over the first six months of 2016.

 

"We are well positioned and see significant opportunities from our breadth of offer in the fastest growing segments.

 

"The second half has started well with trading in line with expectations. We continue with the proven strategy."

 

For further information please call:

M&C Saatchi                                     +44 (0)20-7543-4500

David Kershaw

 

Tulchan Communications                 +44 (0)20-7353-4200

Tom Murray

 

Numis Securities                               +44 (0)20-7260-1000

Nick Westlake, NOMAD

Charles Farquhar, Corporate Broking

 

 

Notes to Editors

Headline results

The term headline is not a defined term in IFRS. The items that are excluded from headline results are the amortisation or impairment of intangible assets (including goodwill and acquired intangibles, but excluding software) acquired in business combinations, changes to deferred and contingent consideration and other acquisition related charges taken to the income statement; impairment of investment in associate; profit/loss on disposal of associates; and income statement impact of put option accounting (whether accounted under IFRS2 or IAS39). See Note 4 for reconciliation between the Group's statutory results and the headline results.

 

Like-for-like

The like-for-like revenue comparisons referred to in this report are stated after excluding the impact of foreign currency movements and corporate transactions.

 

Periods compared

This report comments on the unaudited consolidated income statement of M&C Saatchi plc (the "Group") for the six months to 30 June 2016 compared with the unaudited consolidated income statement for the same period in 2015. 

 

 

 

 

 

 

SUMMARY OF RESULTS

 

The first six months of 2016 saw strong revenue momentum and earnings growth. Actual revenues grew by 15%, with constant currency revenues increasing 14%, whilst we increased like-for-like revenues 6%. We returned a headline operating margin of 11.3%, up from 10.6% in 2015. The headline profit before tax advanced 19% to £11.4m and headline net earnings rose 22%.

 

UK

We posted a small decrease in UK revenues of 1%, with our CRM and mobile operations returning good increases. In addition, M&C Saatchi PR and our Sport & Entertainment division as well as our research operation The Source all performed strongly. However, this growth was offset by the impact of 2015 client losses within the advertising agency. 

We experienced a favourable run of account wins across our group of businesses in the first half, including Ageas, Alibaba, the Department of Work and Pensions, E.ON, the Home Office, Open University, Rail Delivery Group and further work for Royal Mail.

The UK headline operating profit was 10% down on 2015 but included restructuring costs of £660k in the advertising agency unit, which if discounted meant operating profit actually grew 2% on 2015. The headline operating margin decreased to 13.0% compared with 2015's 14.2%, but if the restructuring costs are excluded then the margin came in at 14.7%.  These margins exclude the impact of Group recharges. We are also finalising the previously announced sale of 30% of the advertising agency to a new management team following our proven owner-driver model. We are confident that this new team will provide a platform for growth next year.

 

Europe

We made further positive progress in Europe with like-for-like revenues up 12%. Headline operating profit was up 51%, with a headline operating margin of 16.2% (2015: 12.7%). Our Stockholm office kept up its very good new business record and won the TV and broadband supplier Com Hem. Both Germany and Italy maintained their strong performance, with Italy winning E.ON. In France, advertising remained sluggish but our agency was appointed by YouTube and Google and continues to grow through diversification.  Our associate in Spain continues to tick up after a challenging few years.

 

Middle East and Africa

Like-for-like revenues in the Middle East and Africa were up 19%, with a slow start as last year but a stronger second half anticipated. In South Africa we lost Edgars but quickly won Sun International. Our Abu Dhabi and Dubai offices are both growing steadily, as is our Tel Aviv office. Overall with the slow start, the operating profit off a low base was up 33% and the headline operating margin increased to 7.9% from 6.8% in 2015.

 

 

 

Asia and Australasia

In Asia and Australasia, like-for-like revenues increased 5% in the period. Our Australian offices are doing very well and following their win of Woolworths in February without a pitch, have since won BBQ Galore, eBay and Menulog.

 

Otherwise, our associate in China, aeiou, continues to perform favourably and impress network clients.  Malaysia is still excelling and won the KLIA account. Singapore is developing positively and picked up some Shell business. Japan has continued to underperform and we have therefore reduced our holding to 10%.

 

The headline regional operating margin was 11.9% (2015: 12.0%), with the headline operating profit ahead 4% on the same period last year. 

 

Americas

Constant currency revenues increased 93%, with like-for-like up 27%. There was an excellent 95% increase in operating profit to £3.4m and a headline operating margin of 17.1% (2015: 17.3%). Mobile are doing exceptionally well and building a strong client base across the US. The SS+K relationship in New York is thriving. In the light of this outstanding growth, we increased our shareholding in SS+K from 33% to 51% in March. In March, we also acquired 51% of MCD Partners in New York and Chicago to develop our US CRM offer. They are working very positively with LIDA and building a good relationship.

 

Our office in Los Angeles lost the UGG account but has since been converting new business including some Reebok and BMW. Macro-economic factors in Brazil have materially slowed the advertising market there and trading is currently tough.

 

Outlook

Momentum across the Group remains strong, producing positive revenue and earnings growth over the first six months of 2016. We have not seen any impact as a result of the Brexit decision, other than a positive foreign currency impact. We are well positioned and see significant opportunities from our breadth of offer in the fastest growing segments. The second half has started well with trading in line with expectations. We continue with the proven strategy.

 

 

 

 

M&C SAATCHI PLC

UNAUDITED CONSOLIDATED INCOME STATEMENT

ENDED 30 JUNE 2016



Six months
ended
30 June 2016

 




Six months
ended
30 June 2015

 


Year
ended
31 December 2015

 


Note


£000




£000


£000










Billings



217,222




182,340


375,107











Revenue

4


100,219




87,568


178,928










Operating costs



(93,180)




(79,242)


(164,221)

Operating profit

4


7,039




8,326


14,707











Share of results of associates



405




541


2,017

Finance income

6


3,797




154


299

Finance costs

7


(512)




(618)


(4,477)

Profit before taxation

4


10,729




8,403


12,546

Taxation on profits

8


(1,667)




(1,980)


(3,386)

Profit for the financial period



9,062




6,423


9,160











Profit attributable to:










Equity shareholders of the Group

4


8,094




5,203


6,474

Non controlling interest



968




1,220


2,686














9,062




6,423


9,160











Earnings per share

4









Basic



11.24p




7.36p


9.08p

Diluted



11.20p




7.36p


9.04p











 










 

Reconciliation of the above numbers to the Headline numbers, discussed in the front of this report, can be found in note 4 on pages 16 to 18.


M&C SAATCHI PLC

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

ENDED 30 JUNE 2016

 



Six months
ended
30 June 2016




Six months
ended
30 June 2015


Year
ended
31 December 2015




£000




£000


£000

 

Profit for the period



 

9,062




 

6,423


 

9,160

Other comprehensive income:










Exchange differences on translating foreign operations



1,791




(1,738)


(1,316)

Total other comprehensive income for the period net of tax



1,791




(1,738)


(1,316)











Total comprehensive income for the period



10,853

 




4,685

 


7,844

 

Total comprehensive income attributable to:










Equity shareholders of the Group



9,885




3,465


5,158

Non controlling interests



968




1,220


2,686




10,853




4,685


7,844

 


M&C SAATCHI PLC

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 30 JUNE 2016



30 June 2016




30 June 2015


31 December 2015




£000




£000


£000

NON CURRENT ASSETS










Intangible assets



47,546




28,382


28,286

Investments in associates



18,473




22,095


24,811

Plant and equipment



9,619




7,801


8,197

Deferred tax assets



2,609




1,770


1,476

Other non current assets



7,600




7,792


8,349




85,847




67,840


71,119











CURRENT ASSETS










Trade and other receivables



105,673




74,303


87,692

Current tax assets



2,199




32


844

Cash and cash equivalents



29,269




26,104


32,344




137,141




100,439


120,880











CURRENT LIABILITIES










Bank overdraft



(2,796)




(151)


(98)

Trade and other payables



(103,277)




(74,894)


(94,533)

Current tax liabilities



(2,885)




(801)


(1,204)

Other financial liabilities



(25)




(125)


(3,155)

Deferred and contingent consideration



-




-


(1,792)

Minority shareholder put options liabilities



(15,594)




(15,566)


(16,738)




(124,577)




(91,537)


(117,520)











Net current Assets



12,564




8,902


3,360











Total assets less current liabilities



98,411




76,742


74,479











Non current liabilities










Deferred tax liabilities



(36)




(254)


(30)

Other financial liabilities



(34,958)




(24,389)


(23,594)

Minority shareholder put options liabilities



(13,698)




(7,303)


(7,626)

Other non current liabilities



(1,630)




(1,049)


(1,208)




(50,322)




(32,995)


(32,458)











Net assets



48,089




43,747


42,021













M&C SAATCHI PLC

UNAUDITED CONSOLIDATED BALANCE SHEET (CONTINUED)

AT 30 JUNE 2016



30 June 2016




30 June 2015


31 December
 2015




£000




£000


£000

Equity






























Share capital



737




725


727

Share premium



20,332




19,727


17,338

Merger reserve



31,592




29,335


31,592

Treasury reserve



(792)




(792)


(792)

Minority interest put option reserve



(22,379)




(14,041)


(12,595)

Non controlling interest acquired



(9,990)




(9,068)


(9,233)

Foreign exchange reserve



(193)




(2,406)


(1,984)

Retained earnings



23,412




14,949


12,673

TOTAL SHAREHOLDERS FUNDS



42,719




38,429


37,726











Non Controlling interestS



5,370




5,318


4,295











TOTAL EQUITY



48,089




43,747


42,021


 

 

M&C SAATCHI PLC

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)

SIX MONTHS ENDED 30 JUNE 2016

 

 

2016 Half year

Share
Capital
£000

Share
premium
£000

Merger

reserve

£000

Treasury
reserve
£000

MI put option reserve
£000

Non controlling interest acquired
£000

Foreign exchange
reserves
£000

Retained
earnings
£000

Subtotal
£000

Non controlling
interest
in equity
£000

 

Total
£000

At 1 January 2016

727

17,338

31,592

(792)

(12,595)

(9,233)

(1,984)

12,673

37,726

4,295

42,021

Reserve movement for six months ending 30 June 2016









 

Exercise of put options

10

2,994

-

-

551

(502)

-

(6)

3,047

(17)

3,030

Acquisitions

-

-

-

-

(10,248)

-

-

-

(10,248)

1,797

(8,451)

Exchange rate movements

-

-

-

-

(87)

(255)

-

-

(342)

(367)

(709)

Issue of shares to minorities

-

-

-

-

-

-

-

-

-

31

31

Share option charge

-

-

-

-

-

-

-

2,651

2,651

-

2,651

Dividends

-

-

-

-

-

-

-

-

-

(1,337)

(1,337)

Total transactions with owners

10

2,994

-

-

(9,784)

(757)

-

2,645

(4,892)

107

(4,785)













Total comprehensive income for year

-

-

-

-

-

-

1,791

8,094

9,885

968

10,853

At 30 June 2016

737

20,332

31,592

(792)

(22,379)

(9,990)

(193)

23,412

42,719

5,370

48,089

 

 

M&C SAATCHI PLC

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)

SIX MONTHS ENDED 30 JUNE 2016

 

 

2015 Half year

Share
Capital
£000

Share
premium
£000

Merger

reserve

£000

Treasury
reserve
£000

MI put option reserve
£000

Non controlling interest acquired
£000

Foreign exchange
reserves
£000

Retained
earnings
£000

Subtotal
£000

Non controlling
interest
in equity
£000

 

Total
£000

At 1 January 2015

683

16,807

27,689

(792)

(13,070)

(7,882)

(668)

9,639

32,406

3,466

35,872

Reserve movement for six months ending 30 June 2015









Exercise of put options

12

2,612

1,646

-

1,201

(1,201)

-

(48)

4,222

36

4,258

Issue of put options

-

-

-

-

(2,214)

-

-

-

(2,214)

1,805

(409)

Disposal of a subsidiary

-

-

-

-

-

-

-

(72)

(72)

181

109

Exchange rate movements

-

-

-

-

42

15

-

-

57

(110)

(53)

Share option exercise

30

308

-

-

-

-

-

(3)

335

(338)

(3)

Share option charge

-

-

-

-

-

-

-

230

230

-

230

Dividends

-

-

-

-

-

-

-

-

-

(942)

(942)

Total transactions with owners

42

2,920

1,646

-

(971)

(1,186)

-

107

2,558

632

3,190













Total comprehensive income for year

-

-

-

-

-

-

(1,738)

5,203

3,465

1,220

4,685

At 30 June 2015

725

19,727

29,335

(792)

(14,041)

(9,068)

(2,406)

14,949

38,429

5,318

43,747

 

 

M&C SAATCHI PLC

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

SIX MONTHS ENDED 30 JUNE 2016

2015 Year

Share
Capital
£000

Share
premium
£000

Merger

reserve

£000

Treasury
reserve
£000

MI put option reserve
£000

Non controlling interest acquired
£000

Foreign exchange
reserves
£000

Retained
earnings
£000

Subtotal
£000

Non controlling
interest
in equity
£000

 

Total
£000

At 1 January 2015

683

16,807

27,689

(792)

(13,070)

(7,882)

(668)

9,639

32,406

3,466

35,872

Reserve movement for year ending 31 December 2015








 

Acquisition

-

-

-

-

-

-

-

-

-

161

161

Exercise of put options

13

224

3,903

-

1,274

(1,274)

-

(48)

4,092

24

4,116

Office closure

-

-

-

-

-

-

-

(158)

(158)

158

-

Exchange rate movements

-

-

-

-

39

(77)

-

-

(38)

(121)

(159)

Issue of shares to minorities

-

-

-

-

-

-

-

-

-

1,850

1,850

Issue of minority put options

-

-

-

-

(2,190)

-

-

-

(2,190)

-

(2,190)

Reclassification of minority put options

-

-

-

-

1,352

-

-

306

1,658

-

1,658

Option exercise

31

307

-

-

-

-

-

(3)

335

(338)

(3)

Share option charge

-

-

-

-

-

-

-

1,125

1,125

-

1,125

Dividends

-

-

-

-

-

-

-

(4,662)

(4,662)

(3,591)

(8,253)

Total transactions with owners

44

531

3,903

-

475

(1,351)

-

(3,440)

162

(1,857)

(1,695)

Total comprehensive income for the year

-

-

-

-

-

-

(1,316)

6,474

5,158

2,686

7,844

At 1 December 2015

727

17,338

31,592

(792)

(12,595)

(9,233)

(1,984)

12,673

37,726

4,295

42,021













 


M&C SAATCHI PLC

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

SIX MONTHS ENDED 30 JUNE 2016

 


Six months ended
30 June 2016




Six months ended
30 June 2015


Year Ended
31 December 2015

 


Notes

£000




£000


£000

 










 

Revenue


100,219




87,568


178,928

 

Operating cost


(93,180)




(79,242)


(164,221)

 

Operating Profit


7,039




8,326


14,707

 

Adjustments for:









 

Depreciation of plant and equipment


1,159




1,120


2,128

 

Losses on sale of plant and equipment


36




9


36

 

Losses on sale of software intangibles


-




-


12

 

Profit on disposal of associate


-




(142)


(217)


Amortisation on acquired intangible assets


1,638




684


1,940

 

Impairment of goodwill


-




-


889

 

Amortisation of capitalised software intangible assets

60




50


98

 

Equity settled share based payment expenses


2,651




315


1,125

 

Operating cash flow before movements in working capital and provisions


12,583




10,362


20,718

 

Increase in trade and other receivables


(1,449)




(9,182)


(17,192)

 

(Increase)/Decrease in trade and other payables


(8,781)




4,569


18,018

 

Cash generated from operations


2,353




5,749


21,544

 

Tax paid


(2,901)




(2,081)


(5,326)

 

Net cash (outflow)/inflow from operating activities

(548)




3,668


16,218

 

Investing activities









 

Acquisitions net of cash acquired

10

(11,033)




(564)


(79)

 

Acquisitions of associates

10

-




(3,349)


(3,765)

 

Acquisition of investments


(581)




(335)


(1,366)

 

Disposal of associates


-




97


325

 

Proceeds from sale of plant and equipment


8




-


7

 

Purchase of intangibles


-




-


(327)

 

Purchase of plant and equipment


(1,495)




(638)


(1,970)

 

Purchase of capitalised software


(156)




(5)


(158)

 

Dividend from associates


-




76


1,173

 

Interest earned


169




154


299

 

Net cash consumed by investing activities


(13,088)




(4,564)


(5,861)

 

Net cash consumed by operating and investing activities


(13,636)




(896)


10,357

 


 


Six months ended
30 June 2016




Six months ended
30 June 2015


Year Ended
31 December
 2015



£000




£000


£000

Net cash consumed by operating and investing activities


(13,636)




(896)


10,357










Dividends paid to equity holders of the Company


-




-


(4,662)

Dividends paid to non controlling interest


(1,337)




(1,912)


(3,591)

Issue of own shares


-




497


-

Issue of shares to minorities


-




-


15

Repayment of finance leases


(21)




(17)


(31)

(Repayment) / inception of invoice discounting


(3,130)




-


3,130

Inception of bank loans


10,646




6,451


6,349

Repayment of bank loans


-




(293)


(968)

Interest paid


(510)




(378)


(771)

Net cash generated / (consumed) from financing activities


5,648

 




4,348

 


(529)










Net increase / (decrease) in cash and cash equivalents


(7,988)

 




3,452

 


9,828










Cash and cash equivalents at the beginning of the period


32,246




23,321


23,321

Effect of exchange rate changes


2,215




(820)


(903)

Cash and cash equivalents at the end of the period


26,473

 




25,953

 


32,246










 


 

1.   GENERAL INFORMATION

 

The Company is a public limited company incorporated and domiciled in the UK. The address of its registered office is 36 Golden Square, London W1F 9EE.

The Company has its primary listing on the AIM market of the London Stock Exchange.

This consolidated half-yearly financial information was approved for issue on 22 September 2016.

These results do not constitute the Group's statutory accounts.  The information presented in relation to 31 December 2015 is extracted from the statutory financial statements for the year then ended and which have been delivered to the Registrar of Companies. The auditor's report on the statutory financial statements for the year ended 31 December 2015 was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report(s) and did not contain statements under Section 498 (2) or (3) of the Companies Act 2006.

 

2.   Basis of preparation

 

This consolidated half-yearly financial information for the half-year ended 30 June 2016 has been prepared in accordance with the AIM Rules for companies. The half-yearly consolidated financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2015.

 

 

3.   Accounting policies

 

The financial information in these interim results is that of the holding company and all of its subsidiaries (the Group). It has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards as adopted for use in the EU (IFRSs). The accounting policies applied by the Group in this financial information are the same as those applied by the Group in its financial statements for the year ended
31 December 2015 and which will form the basis of the 2016 financial statements.

 


 

4.   Earnings per share and reconciliation between headline and statutory results

The analysis below provides a reconciliation between the Group's statutory results and the headline results.

 

Six Months to
30 June 2016




Reported results
£000


Amortisation
of acquired intangibles

£000


Fair value adjustments to minority put option liabilities
 £000


Headline
results

£000

Revenue


100,219


-


-


100,219

Operating profit


7,039


1,637


2,651


11,327

Share of results of associates & JV


405


-


-


405

Finance income


3,797


-



169

Finance cost


(512)


-


-


(512)

Profit before taxation


10,729


1,637


(977)


11,389

Taxation


(1,667)


(645)


-


(2,312)

Profit for the year


9,062


992


(977)


9,077

Non controlling interests

(968)


(403)


-


(1,371)

Profit attributable to equity holders of the Group

8,094


589


(977)


7,706

BASIC EARNINGS PER SHARE






Weighted average number of shares (Thousands)

71,982






71,982

Basic EPS


11.24p






10.71p










DILUTED EARNINGS PER SHARE








Weighted average number of shares (Thousands) as above

71,982






71,982

Add









- Conditional shares


300






300

Total


72,282






72,282

Diluted earnings per share


11.20p






10.66p










The Directors believe that the headline results and headline earnings per share provide additional useful information on the underlying performance. The headline result is used for internal performance management, calculating the value of subsidiary convertible shares and minority interest put options. The term headline is not a defined term in IFRS.

 

The items that are excluded from headline results are the amortisation or impairment of intangible assets (including goodwill and acquired intangibles, but excluding software) acquired in business combinations, changes to deferred and contingent consideration and other acquisition related charges taken to the income statement; impairment of investment in associate; profit/loss on disposal of associates; and income statement impact of put option accounting (whether accounted under IFRS2 or IAS39).

 

Six Months to
30 June 2015




Reported results
£000

Amortisation
of acquired intangibles

£000

Profit on disposal of an associate

£000

Loss on disposal of subsidiary 
£000

Contingent acquisition cost classified as expense
£000

Fair value adjustments to minority put option liabilities
 £000

Headline
results

£000

 

Revenue


87,568

-

-

-

-

-

87,568

 

Operating profit


8,326

684

(142)

85

142

200

9,295

 

Share of results of associates & JV


541

-

-

-

-

-

541

 

Finance income


154

-

-

-

-

-

154

 

Finance cost


(618)

-

-

-

-

238

(380)

 

Profit before taxation


8,403

684

(142)

85

142

438

9,610

 

Taxation


(1,980)

(124)

71

-

-

-

(2,033)

 

Profit for the year


6,423

560

(71)

85

142

438

7,577

 

Non controlling interests

(1,220)

(27)

-

-

-

-

(1,247)

Profit attributable to equity holders of the Group

5,203

533

(71)

85

142

438

6,330

BASIC AND DILUTED EARNINGS PER SHARE*






Weighted average number of shares (Thousands)

70,677






70,677

Basic and diluted EPS*


7.36p






8.96p










* At 30 June 2015 there are no dilutive options, so basic and diluted EPS are the same.

 

Year ended
31 December 2015




Reported results
£000

Amortisation
of acquired intangibles

£000

Sale of  associate

£000

Impairment of Goodwill 
£000

Contingent acquisition cost classified as expense
£000

Put option accounting
 £000

Headline
results

£000

Revenue


178,928

-

-

-

-

-

178,928

Operating profit


14,707

1,940

(217)

889

134

1,125

18,578

Share of results of associates & JV


2,017

-

-

-

-

-

2,017

Finance income


299

-

-

-

-

-

299

Finance cost


(4,477)

-

-

-

-

3,706

(771)

Profit before taxation


12,546

1,940

(217)

889

134

4,831

20,123

Taxation


(3,386)

(541)

71

-

-

-

(3,856)

Profit for the year


9,160

1,399

(146)

889

134

4,831

16,267

Non controlling interests

(2,686)

(162)

-

(178)

-

-

(3,026)

Profit attributable to equity holders of the Group

6,474

1,237

(146)

711

134

4,831

13,241

BASIC EARNINGS PER SHARE







Weighted average number of shares (Thousands)

71,319






71,319

Basic EPS


9.08p






18.57p










DILUTED EARNINGS PER SHARE







Weighted average number of shares (Thousands) as above


71,319






71,319

Add









- Conditional shares


300






300

Total


71,619






71,619

Diluted earnings per share

9.04p






18.49p

 

 

 


5.   SEGMENTAL INFORMATION

This segmental information is reconciled to the statutory results in Note 4.

 

 

Six months to
30 June 2016


UK

£000

Europe

£000

Middle East and Africa
£000

Asia and Australasia

£000

Americas

£000

Total

£000

Revenue


40,595

12,371

4,725

22,787

19,741

100,219

Operating profit excluding Group costs


5,270

1,999

371

2,720

3,378

13,738

Group costs


(2,188)

(44)

-

(160)

(19)

(2,411)

Operating profit


3,082

1,955

371

2,560

3,359

11,327

Share of results of associates
and JV


425

20

-

25

(65)

405

Financial income and cost


(142)

(22)

23

38

(240)

(343)

Profit before taxation


3,365

1,953

394

2,623

3,054

11,389

Taxation


(685)

(661)

(211)

(722)

(33)

(2,312)

Profit for the period


2,680

1,292

183

1,901

3,021

9,077

Non controlling interests


(404)

(294)

(61)

(326)

(286)

(1,371)

Profit attributable to equity shareholders
of the Group


2,276

998

122

1,575

2,735

7,706

HEADLINE BASIC EPS







10.71p

Non cash costs included in headline operating profit:






Depreciation & Amortisation of software


(633)

(86)

(77)

(168)

(255)

(1,175)

Share option charges


-

-

-

-

-

-

OFFICE LOCATION


London

Paris

Berlin

Madrid

Geneva

Milan
Moscow

Stockholm

Abu Dhabi

Dubai

Beirut

Istanbul

Cape Town

Johannesburg

Tel Aviv

Sydney

Melbourne

New Delhi

Kuala Lumpur

Hong Kong

Shanghai

Tokyo

Singapore

Bangkok

Los Angeles

São Paulo

New York

San Francisco

Chicago


 

 

Six months to
30 June 2015


UK

£000

Europe

£000

Middle East and Africa
£000

Asia and Australasia

£000

Americas

£000

Total

£000

Revenue


41,111

10,427

4,076

21,930

10,024

87,568

Operating profit excluding Group costs


5,837

1,327

278

2,621

1,731

11,794

Group costs


(2,281)

(36)

-

(161)

(21)

(2,499)

Operating profit


3,556

1,291

278

2,460

1,710

9,295

Share of results of associates
and JV


347

(6)

-

78

122

541

Financial income and cost


(267)

(23)

(2)

47

19

(226)

Profit before taxation


3,636

1,262

276

2,585

1,851

9,610

Taxation


(500)

(387)

(47)

(779)

(320)

(2,033)

Profit for the period


3,136

875

229

1,806

1,531

7,577

Non controlling interests


(538)

(185)

(82)

(235)

(207)

(1,247)

Profit attributable to equity shareholders
of the Group


2,598

690

147

1,571

1,324

6,330

HEADLINE BASIC EPS







8.96p

Non cash costs included in headline operating profit:






Depreciation & Amortisation of software


(703)

(119)

(94)

(131)

(123)

(1,170)

Share option charges


(30)

-

-

-

-

(30)

OFFICE LOCATION


London

Paris

Berlin

Madrid

Geneva

Milan
Moscow

Stockholm

Abu Dhabi

Beirut

Istanbul

Cape Town

Johannesburg

Tel Aviv

Sydney

Melbourne

New Delhi

Kuala Lumpur

Hong Kong

Shanghai

Tokyo

Singapore

Bangkok

Los Angeles

São Paulo

New York

San Francisco

 


 

 

 

Year ended
31 December 2015


UK

£000

Europe

£000

Middle East and Africa
£000

Asia and Australasia

£000

Americas

£000

Total

£000

Revenue


84,159

22,745

8,549

42,103

21,372

178,928

Operating profit excluding Group costs


11,782

3,668

1,049

4,187

3,253

23,939

Group costs


(4,970)

(83)

-

(308)

-

(5,361)

Operating profit


6,812

3,585

1,049

3,879

3,253

18,578

Share of results of associates
and JV


809

25

-

325

858

2,017

Financial income and cost


(527)

(60)

(17)

69

63

(472)

Profit before taxation


7,094

3,550

1,032

4,273

4,174

20,123

Taxation


(506)

(1,190)

(268)

(1,209)

(683)

(3,856)

Profit for the year


6,588

2,360

764

3,064

3,491

16,267

Non controlling interests


(1,169)

(658)

(372)

(477)

(350)

(3,026)

Profit attributable to equity shareholders
of the Group


5,419

1,702

392

2,587

3,141

13,241

HEADLINE BASIC EPS







18.57p

Non cash costs included in operating profit:






Depreciation & Amortisation of software


(1,275)

(259)

(161)

(260

(271)

(2,226)

Share option charges


(5)

-

-

-

-

(5)

OFFICE LOCATION


London

Paris

Berlin

Madrid

Geneva

Milan
Moscow

Stockholm

Abu Dhabi

Beirut

Istanbul

Tel Aviv

Cape Town

Johannesburg

 

Sydney

Melbourne

New Delhi

Kuala Lumpur

Hong Kong

Beijing

Shanghai

Tokyo

Singapore

Bangkok

Los Angeles

São Paulo

New York

San Francisco


 

 

 

 

6.   Finance Income


Six months
ended
30 June 2016




Six months
ended
30 June 2015


Year
 ended
31 December
2013



£000




£000


£000











Bank interest receivable


92




98


181

Other interest receivable


77




56


118

Total finance income


169




154


299

Fair value adjustments to minority shareholder put option liabilities


3,628




-


-

Total


3,797




154


299

 

 

7.   Finance COsts

 


Six months
ended
30 June 2016




Six months
ended
30 June 2015


Year
 ended
31 December
 2015



£000




£000


£000

Finance costs










Bank interest payable


(510)




(366)


(766)

Other interest payable


(2)




(14)


(5)

Total interest payable


(512)




(380)


(771)










Fair value adjustments to minority shareholder put option liabilities


-




(238)


(3,706)

Total


(512)




(618)


(4,477)


 

8.   Taxation

 

Income tax expenses are recognised based on management's estimate of the average annual headline income tax expected for the full financial year.

 

The estimated headline effective annual tax rate (excluding associates) used for the period to 30 June 2016 is 21.2% (30 June 2015: 28.3%).  The decrease in the headline tax rate is due to reduced losses in subsidiaries that we were investing in,  and the reduced UK tax rate.

 

The estimated effective annual tax rate for the period to 30 June 2016 is 17.4% (30 June 2015: 132.1%). The difference between the headline and statutory tax rates is caused by a difference in the profit before tax due to the impact of fair value adjustments to minority shareholder put option liabilities that have no effect on the tax charge.

 

 

9.   Dividends

 


Six months
ended
30 June 2016




Six months
ended
30 June 2015


Year
 ended
31 December
 2015



£000




£000


£000











2014 final dividend 4.87p (2013: 4.24p)


-




-


3,504

2015 interim dividend 1.61p (2014: 1.40p)


-




-


1,158












-




-


4,662

 

The directors propose an interim dividend of 1.85p per share (2015: 1.61p per share) payable on
11 November 2016 to shareholders who are on the register at 28 October 2016. This interim dividend, amounting to £1,351k (2015: £1,158k) has not been recognised as a liability in this half-yearly financial report.


 

10. Cash consumed by acquisitions



Six months
ended
30 June 2016




Six months
ended
30 June 2015


Year
 ended
31 December
 2015




£000




£000


£000

Acquisitions










Initial cash consideration paid



(14,476)




(577)


(346)

Cash and cash equivalents acquired



3,443




13


267




(11,033)




(564)


(79)

Purchase of associates



-




(3,349)


(3,765)




(11,033)




(3,914)


(3,844)











 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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