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An Ebiquity company Interim Presentation Six months ended 31 October 2009 … another period of significant progress.

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Presentation on theme: "An Ebiquity company Interim Presentation Six months ended 31 October 2009 … another period of significant progress."— Presentation transcript:

1 an Ebiquity company Interim Presentation Six months ended 31 October 2009 … another period of significant progress

2 22 Financial highlights Group revenues increased by 8% to £9.3m (2008: £8.6m) Analytics revenue increased 15% to £6.7m (2008: £5.8m) International clients now account for 36% of Group revenue (2008: 28%) Underlying operating profit of £760,000 (2008: £921,000) Underlying operating profit excluding foreign exchange gains/losses £984,000 (2008:£744,000) Strong cash generation with net cash from operating activities of £895,000 (2008: £111,000) Reported profit before tax of £202,000 (2008: £296,000) Basic EPS of 1.06p (2008: 0.29p) Underlying diluted EPS of 1.71p (2008: 2.03p)

3 33 Key drivers Rapid international expansion US business continues to grow strongly Contract renewal rates firm Newslive progressing well – 11% of Platform revenues

4 44 Analytics division: international expansion International revenue up 40% (an increase of £961k) International represents 51% of Analytics revenue (2008: 42%) and 36% of total revenue (2008: 28%)

5 55 57 of Top 100 in 2009 Billetts penetration of top 100 global advertisers* * Working with an advertiser in one or more markets

6 6 Growth of US business

7 77 International growth Global business % of total group revenue International clients are defined as non-UK sourced revenue or UK sourced revenue where marketing activity is analysed in more than one country £3.3m 36%

8 8 Revenue of overseas ventures France: subsidiary, results consolidated Germany: 10% stake, option to take control, treated as associate Spain: option to acquire stake, not consolidated Billetts America: subsidiary, results consolidated

9 9 70% of the top UK Advertisers We represent nearly 50 international clients in up to 40 markets es We work with 57 of the top 100 companies 9 Analytics division: international expansion

10 10

11 11 Financial Summary Six months ended 31 October 2009

12 12 Revenue Oct 09Oct 08YOYApr 09 All numbers in £’000s 6m %12m Analytics6,6605,77315.4%12,842 Platform2,6002,875(9.6%)5,633 Intersegment elimination-(56)100.0%(56) Total9,2608,5927.8%18,419 Impact of new accounting standard: IFRS8 (Operating Segments) No material change to previous reporting Analytics (no change): media auditing, consultancy and marketing effectiveness Platform (no change) : advertising and editorial monitoring and publisher services Intersegment eliminations: Above segments now include intersegment revenues, which are eliminated in this line. We do not have significant intersegment revenues

13 13 Revenue: Analytics division 6m Oct 09 51% 6m Oct 08 42% International revenue up 40% (an increase of £1m) Representing a greater proportion of Analytics revenue: Representing a greater proportion of total group revenue: 6m Oct 09 36% 6m Oct 08 28% International revenue: non UK sourced revenue, or UK sourced revenue where marketing activity is analysed in more than one country

14 14 Revenue: Platform division 6m Oct 09 74% 6m Oct 08 85% Advertising monitoring Softer renewal rates (by value): Editorial monitoring Newslive showing good sales traction, and now represents larger share of Platform: 6m Oct 09 11% 6m Oct 08 6%

15 15 Gross profit Oct 09Oct 08YOYApr 09 6m %12m Analytics3,4522,94817.1%6,912 Platform1,3291,464(9.2%)2,942 Total4,7814,4128.4%9,854 Analytics: Strong revenue growth, with good management of costs Platform: Fall in advertising monitoring revenue, partially offset by cost reductions

16 16 Gross margin analysis 6m Oct 09 52% Analytics Platform Total 6m Oct 09 51% 6m Oct 09 52% 6m Oct 08 51% 6m Oct 08 51% 6m Oct 08 51% Increased revenue and good management of staff costs Reduced revenue from ad monitoring compensated by reduced staff and production costs

17 17 Underlying operating profit (pre highlighted items) Oct 09Oct 08YOYApr 09 6m %12m Analytics3,0572,48123.2%6,017 Platform5955891.0%1,296 Unallocated expenses(2,668)(2,326)(14.7%)(5,242) Underlying operating profit excl. impact of forex 98474432.3%2,071 Impact of forex movements(224)177(226.6%)292 Underlying operating profit760921(17.5%)2,363 Impact of IFRS8 (Operating Segments): our central overheads are no longer allocated to the segments. These include group salaries (Board, Finance, IT, HR), property and central legal costs. Analytics: Revenue increase and staff cost management Platform: Ad monitoring revenue down but effective operations cost management Unallocated expenses: Increased property and staff costs, and reduction in capitalised development Forex movements: The £401k negative movement relates to the retranslation of an intercompany loan

18 18

19 19 Year on year operating profit analysis excluding forex

20 20 Underlying profit margin excluding forex Operating Profit (EBIT) margin 6m Oct 09 10.6% 6m Oct 08 8.7% 6m Oct 09 13.3% EBITDA margin 6m Oct 08 11.4%

21 21 Year on year operating profit analysis including forex

22 22 Underlying profit margin including forex 6m Oct 09 11.0% EBITDA margin Operating Profit (EBIT) margin 6m Oct 09 8.2% 6m Oct 08 13.5% 6m Oct 08 10.7%

23 23 Profit before tax Oct 09Oct 08YOYApr 09 6m %12m Underlying operating profit760921(17.5%)2,363 Highlighted items – non cash(332)(333)0.3%(675) Highlighted items - cash(158)(161)1.9%(258) Reported operating profit270427(36.8%)1,430 Net finance costs(67)(131)48.9%(243) Share of associates(1)-(100%)(14) Profit before tax202296(31.8%)1,173 Highlighted: non cash – share options and amort’n of purchased intangibles; cash – restructuring Net finance costs: Reduction in gross debt Share of associates: 10% stake in Billetts Germany GmbH, start up in November 2008

24 24 Diluted EPS Note that both the Reported and Underlying diluted EPS numbers have been negatively affected in this period since the number of potentially dilutive shares has increased as a direct result of the share price increasing over the period (the number of share options ‘above water’ having increased). Underlying 6m Oct 09 1.71p 6m Oct 08 2.03p Fall largely due to foreign exchange impact affecting underlying results nb. the deferred tax impact is removed from underlying EPS 6m Oct 09 0.97p 6m Oct 08 0.28p Reported Increase largely due to deferred tax credit on treatment of share options following share price increase

25 25 Net debt Oct 09Oct 08Apr 09 Cash1,5211,2771,246 Loans to associates310-362 Gross debt(3,314)(4,000)(3,800) Net debt(1,483)(2,723)(2,192) Net cash from operating activities up to £895k (2008: 111k) Scheduled debt repayments in the current period of £486k Continued improvement in debtor days and ageing profile Continue to trade comfortably within banking covenants

26 26 Summary and outlook Maintained demand for services Expanding overseas footprint Attraction to large multinationals Financially strong Investing for growth Prospects remain good

27 27 Financial Appendices

28 28 Highlighted items Oct 09Oct 08Apr 09 6m 12m Recurring Share based expenses151152313 Amortisation of purchased intangibles181 362 332333675 Non recurring Management restructuring*158161258 158161258 Total490494933 * Current period charge relates to the final stage of the previously announced strategic review

29 29 Statement of financial position Oct 09Oct 08Apr 09 Non current assets12,79513,84112,871 Current assetsTrade debtors2,8233,1943,118 Accrued income1,9892,0831,836 Cash1,5211,2771,246 Loans to associates310-362 Other741853978 7,3847,4077,540 Current liabilitiesTrade creditors9171,4161,070 Loans2,3002,4002,513 Deferred income2,4332,9272,605 Other2,9592,9392,800 8,6099,6828,988 Non current liabilitiesLoans1,0131,6001,332 Deferred tax515615565 Other453999 1,5732,2541,996 Net assets9,9979,3129,427

30 30 Cashflows Oct 08Oct 07 6m Cash generated from operations865376 Finance expense(75)(147) Income taxes refund/(paid)105(118) Net cash from operating activities895111 Investing activities Purchase of PPE(70)(341) Capitalised development costs(107)(454) Repayment from associate loans52- Finance income816 (117)(779) Financing activities New borrowings-500 Loan repayments(486)(251) (486)249 Net increase/(decrease) in cash292(419)

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