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An Ebiquity company Final Results Presentation Year ended 30 April 2012 July 2012 1.

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Presentation on theme: "An Ebiquity company Final Results Presentation Year ended 30 April 2012 July 2012 1."— Presentation transcript:

1 an Ebiquity company Final Results Presentation Year ended 30 April 2012 July 2012 1

2 2 Change sub heading - via *View* / HEADER & FOOTER Review of the year Year ended 30 April 2012

3 Strong year on year performance Revenue growth Total revenue of £52.9m up 20% Operating profit growth Total operating profit of £8.2m up 55% Organic operating profit up 35% Margin and earnings growth Operating margin up from 12.0% to 15.5% Underlying diluted EPS up 23% to 7.4p 3 Profit and earnings growth in line with expectations All profit and margin numbers are underlying (before highlighted items)

4 Business growth Development into social media and brand reputation Echo Research Russian media analytics Joined Up Media Company Australian media analytics Faulkner Media Management Expanded international presence Fairbrother Lenz Eley 4 International expansion and broadened Ebiquity offering

5 5 Change sub heading - via *View* / HEADER & FOOTER 5 year review Taking stock

6 Major achievements 20082012 International business 26% 76% Germany revenue £nil £7.6m* France revenue £nil £1.4m* US revenue £1.3m £7.5m New Business units in Russia, Australia, Italy with franchise partners in Spain/Nordics New international data centre in Newcastle with approx 235 employees * On a pro forma basis 6

7 5 year revenue growth 7 £k £17.2m £52.9m

8 5 year underlying operating profit growth 8 £k £2.0m £8.2m

9 5 year underlying diluted EPS growth 9 pence 4.3p 7.4p

10 2011/12 highlights Strong growth despite economic head winds Clients remain cautious and contract closing is slow Growth in Analytics division underlines success of core strategy - "adding value to data" Contract renewals remain strong at over 90% in value across both divisions Multi-geography contracts main driver of growth Acquisition integration successfully releasing cost synergies with 35% increase in organic operating profit 10

11 5 key factors driving importance of the market 1.Proliferation of marketing and media channels and the impact of digital media distribution 2.Rise of user-generated content such as social media and blogs, which have lead to the increasing empowerment of consumers 3.Challenges of multi-channel marketing, and the burgeoning need for the measurement of marketing performance 4.Growth in available data that can provide clients with greater insight into the effectiveness of their marketing programmes 5.Consolidation and globalisation of the marketing and advertising industry as it relates to brand owners 11 Growing worldwide demand for independent marketing and media performance measurement Growing worldwide demand for independent marketing and media performance measurement

12 12 Financial Summary Year ended 30 April 2012

13 Year on year revenue analysis 13 Revenue increase of 20% 201143,329-83644,165 movement9778,488(711)8,754 201244,3068,48812552,919 £k

14 Revenue from current year acquisitions 14 Results consolidated from date of control Both columns are year ended 30 April 2012 £k

15 Revenue analysis by segment 15 Strong shift towards Analytics business Analytics organic growth 9% Analytics acq’n p-f growth 8%

16 Pro forma continuing revenue analysis 16 Continuing organic revenue plus pro forma acquisitions £k

17 17 Positive impact of synergy release and disposal of underperforming business Gross margins Total Analytics Platform Total gross profit £29,898k (2011: £24,799k) 2011 2012

18 Year on year underlying operating profit analysis 18 Positive impact of synergy release, acquisitions and disposal of underperforming business 20115,830-(532)5,298 Movement1,4291,0444342,907 20127,2591,044(98)8,205 £k

19 19 Positive impact of synergy release and disposal of underperforming business Underlying margins Operating profit (EBIT) EBITDA 20112012

20 Highlighted items – administration expenses 20 Low level of integration costs £4,607k£6,546k In addition to the above highlighted items within administration expenses, £311k of capitalised loan arrangement fees were written off at the time of the refinancing exercise in March 2012 - these are included in finance expenses (2011: nil). £k

21 Profit before tax and EPS 21 Strong growth in underlying profit and EPS 30 April 2011 30 April 2012 Underlying operating result 5,2988,205 Highlighted items (6,546)(4,607) Reported operating result (1,248)3,598 Net finance costs (528)(644) Highlighted finance costs -(311) Reported result before tax (1,776)2,643 Underlying result before tax 4,7707,561 Underlying diluted EPS 6.02p7.40p +55% +59% +23%

22 Financing analysis 22 £11m of available facility…comfortably in line with all banking covenants Gross debt7,68518,353 Cash3,1586,190 Net debt4,52712,163 Gross debt/EBITDA¹1.21.7 Net debt/EBITDA¹0.71.1 ¹EBITDA based on 12m historic pro forma Gross debt £k

23 23 Profit and earnings growth in line with expectations Strong year on year performance Revenue growth Total revenue of £52.9m up 20% Operating profit growth Total operating profit of £8.2m up 55% Organic operating profit up 35% Margin and earnings growth Operating margin up from 12.0% to 15.5% Underlying diluted EPS up 23% to 7.4p All profit and margin numbers are underlying (before highlighted items)

24 24 Change sub heading - via *View* / HEADER & FOOTER Outlook 2012/13 and beyond

25 Outlook Ebiquity remains a first mover in media and marketing performance measurement Underlying drivers of market growth remain strong Renewals and new business pipeline on track However lack of confidence in economic recovery will continue to act as a brake on growth Cautiously optimistic we will deliver to our plans 25

26 26 Financial Appendices Year ended 30 April 2012

27 Appendix: Acquisitions during the period 27 AcquisitionsDisposal Echo Research Group Joined Up Media Company Faulkner Media Management Fairbrother Lenz Eley Newslive Nature of businessReputation management & social media Media analytics in Russia/CEE Media analytics in Australia/NZ Media analytics worldwide UK editorial monitoring OperationsSurrey, NY, Paris, S’poreMoscow, LdnSydneyLdn, H’burg, ParisLdn SegmentAnalytics Platform Transaction date20 May 201128 May 201114 October 201114 March 20121 July 2011 Transaction detail100% acquisition50.1% acquisition100% acquisition Trade disposal Cash up front£3,500k£318kA$4,000k (£2,500k)£5,000k£167k Deferred consideration maximum£6,500k£882kA$1,900k (£1,200k)£6,000k- Estimated deferred consideration£1,100k£254kA$1,900 (£1,200k)£4,371k- Total potential consideration£10,000k£1,200kA$5,900k (£3,700k)£11,000k£167k Total estimated consideration£4,600k£572kA$5,900k (£3,700k)£9,371k£167k Earn out basis2 years based on revenue targets 2 years based on revenue/profit mgns 1 year based on profit multiple n/a Key financialsMar 11: Rev £5m, u/l op profit £0.5m, 45 staff Apr 11: Rev £0.8m, u/l op profit £0.1m, 7 staff Apr 11: Rev £3.5m, u/l op profit £0.4m, 24 staff Dec 11: Rev £8.6m u/l op profit £1.0m, 70 staff Apr 11: Rev £0.8m u/l op loss (£0.5m), 35 staff Appendix: Acquisitions during the year

28 28 April 2012April 2011 Non current assetsGoodwill 43,291 31,457 Purchased intangibles 11,864 8,350 Other 4,520 4,247 59,675 44,054 Current assetsTrade debtors 13,818 10,143 Accrued income 4,447 2,130 Cash 6,190 3,158 Bank security deposits - 200 Prepayments 1,696 1,573 Other 795 638 26,946 17,842 Current liabilitiesTrade creditors 5,391 3,861 Loans 2,245 3,721 Deferred income 7,984 8,707 Accruals 3,194 4,029 Other 10,598 3,765 29,412 24,083 Non current liabilitiesLoans 15,814 3,643 Deferred tax 2,847 2,171 Other 2,786 948 21,447 6,762 Net assets 35,762 31,051 Appendix: Statement of financial position

29 29 Year ended 30 April 2012 Year ended 30 April 2011 Cash generated from operations 2,493 1,430 Finance expense (527) (339) Income taxes paid (792) (757) Net cash from operating activities 1,174 334 Investing activities Acq’n of subsidiaries, net of cash acquired (9,934) (898) Purchase of PPE (892) (1,260) Capitalised development costs (180) (77) Finance income 6 2 (11,000) (2,233) Financing activities Issue of new shares 2,302 38 New borrowings 25,780 1,750 Loan repayments (15,034) (1,982) Bank loan fee/securities (200) 74 Repayment of finance leases (19) (21) Dividends paid to non-controlling interests (10) - 12,819 (115) Net increase / (decrease) in cash 2,993 (2,040) Appendix: Cash flow statement

30 Appendix: Summary of new banking facility £30m multi-currency facility Approx £19m drawn Approx £11m available (nb. estimated future earn out payments of £7.2m*) Interest rate of 2.75% plus LIBOR (can be lowered from March 2013 depending on covenants) Analysis of drawn amount and repayment plan set out below: 30 In place from March 2012 on 4 year term Currency GBPRepaymentsBullet GBP £15,338k £8,210k£7,128k Dollar $2,500k £1,597k£798k Euro €2,500k £2,095k- £19,030k£9,008k£10,021k Repayment quarters /16 Repayment/quarter (from April 12) £563k All numbers are approximate due to foreign exchange fluctuations * £5.4m in 2012/13, £1.7m in 2013/14 and £0.1m in 2014/15


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