AGM Statement

RNS Number : 1904Z

Infoserve Group PLC

17 September 2009

 



Infoserve Group plc

AGM Statement

Infoserve Group plc ('Infoserve' or the 'Company'), a leading online local search marketing specialist, will be holding its Annual General Meeting at 10.00 am today.

James Newman, Chairman, will provide the following trading update:-

'The unaudited results for the five months ended 31 August 2009 reflect the continued improvement in the Group's performance. Top line sales* increased from £2,112k in the five months ended 31 August 2008 to £2,514k, an increase of 19%, whilst gross profit* increased from £654k to £860k (+32%). Continued tight control of administrative costs contributed to an £8k EBITDA* profit from a loss of £330k in the comparable period last year.  An EBIT* loss of £80k for the five months showed a reduction from a £458k loss in 2008.

(* Excludes IAS 18 revenue recognition adjustment of (£95k) 2009 and +£54k 2008. The IAS 18 accounting adjustment spreads sales evenly over the life of the directory listing as opposed to top line sales which refers to cash received in any such period.).

Productivity per sales executive for the period was maintained at last year's record level of £23k despite a major recruitment campaign, which would normally be expected to reduce productivity because of the higher percentage of less experienced sales staff.

Cash inflow from trading activity (excluding working capital fluctuations) for the first five months of the financial year was £8k. Ongoing capital expenditure remains under tight control and was kept at £18k for the period. The Group has met all its deferred payment obligations to HMRC and the PAYE element has now been settled in full.

Performance over the last three months has shown further continued improvement, with cash generated from trading averaging £26k per month. Once again, the impact of the IAS18 revenue adjustment means that cash generation exceeds reported EBITDA by some £38k per month.

As Group revenues grow, so the available renewal revenues increase (over 50% of revenue still comes from renewals). The Group also expects the current trend of growing new business sales to be maintained and, therefore, revenues to continue to improve. During July and August, the traditionally quiet holiday season, average sales per day reached new historic highs. The Group expects daily revenues to continue to increase in the traditionally busy pre-Christmas period.'

For further information, please contact:

Infoserve Group plc Steve Barnes, Chief Executive [e-mail]	www.infoservegroup.com Tel:  [phone]
Jonathan Simpson, Interim Finance Director [e-mail]	Tel: [phone]
Nominated Adviser WH Ireland Limited Robin Gwyn	Tel:  [phone]

 

END

 

 

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