Half Yearly Report

RNS Number : 5667Y
M&C Saatchi PLC
10 September 2015
 



 

 

 

 

 

M&C SAATCHI PLC

 

 

INTERIM RESULTS

 

 

SIX MONTHS ENDED

30 JUNE 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10 September 2015

  



 

 

 

 

 

M&C Saatchi PLC

Interim results for the six months ended 30 June 2015

 

10 September 2015

Strong revenue momentum and earnings growth



Financial Highlights 2015

Growth versus 2014

Revenue

£87.5m

+ 6%  (2014: £82.6m)

 

Revenue in constant currencies

Operating Profit

 

£9.3m

+ 9%

+ 16% (2014: £8.0m)

 

Profit Before Tax

£9.6m

+ 13% (2014: £8.5m)

 

Earnings

EPS

£6.4m

8.96p

+ 25% (2014: £5.1m)

+ 13% (2014: 7.96p)

 

Dividend

1.61p

+ 15% (2014: 1.40p)

 

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 well:

°           UK: revenues up 9%

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

°           Middle East and Africa: like-for-like revenues up 3%

°           Asia and Australasia: like-for-like revenues up 6% 

°           Americas: like-for-like revenues up 19%

·      Balance sheet maintained with net cash of £1.6m

·      Interim dividend increased 15% to 1.61p 

 

 

 

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

 

"M&C Saatchi has made good headway over the first six months of 2015. We produced positive revenue momentum and earnings growth.

 

"This stems from new business wins and continuing widening of our business offering.

 

"Looking ahead, we are confident that we will continue to make progress in the full year and beyond. The strategy is consistent and continues to deliver."

 

For further information please call:

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

David Kershaw

 

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

Andrew Grant

Louise Högberg

 

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, 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; and fair value gains and losses on liabilities caused by our put and call option agreements (whether accounted under IFRS2 or IRS39).

Like-for-like

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

 

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 2015 compared with unaudited consolidated income statement for the same period in 2014. 

 

SUMMARY OF RESULTS

 

 

UK

 

Europe

  

Middle East and Africa

Like-for-like revenues in the Middle East and Africa were up 3%, with a slow start but a stronger second half anticipated. We see good full-year growth in both Cape Town and Johannesburg; key wins to date include some Continental Tyres projects and significantly Nando's. Our Abu Dhabi office is steadily building revenues beyond Etihad and won projects from new clients. In January, we acquired a majority stake in Ben-Natan Golan Advertising in Tel Aviv, Israel, forming a new agency M&C Saatchi Tel Aviv. With our associate in Beirut and our office in Abu Dhabi, we now potentially have a strong presence in the region. Overall with the slow start, the operating profit off a low base was down 41% and headline operating margin fell from 12.0% to 6.8%.

 

Asia and Australasia

In Asia and Australasia, like-for-like revenue increased 6% in the period. Australian revenues were up following their excellent new business run in 2014. Our associate in China continues to impress and work well. Malaysia made another very good contribution and won the global relaunch of Malaysian Airlines. Singapore picked up some more Government work for the Ministry of Health. The headline regional operating margin was up from 11.5% to 12.0%, with operating profit up 3%. 

 

Americas

In the Americas our like-for-like revenues were up 19%. Our SS+K associate relationship in New York has started very well. They won the international account of J W Marriott with network support as well as the Comcast account. We are now looking to further bolster our presence in New York and are considering CRM acquisition possibilities. Our office in Los Angeles made valuable progress, extending its offering into digital content for the entertainment sector and social media through the addition of the Heavenspot team. In February, we upgraded our Sao Paulo presence, replicating the investment approach we took in China. We took a 25% investment in Santa Clara, a high quality independent agency who will be a powerful addition to our network. Overall, the operating profit increased from £0.6m to an impressive £1.7m with the operating margin up from 7.7% to 17.3%.

 

Outlook



 

 

M&C SAATCHI PLC

UNAUDITED CONSOLIDATED INCOME STATEMENT

ENDED 30 JUNE 2015




Six months
ended
30 June 2015

 




Six months
ended
30 June 2014

 


Year
ended

31 December 2014

 


Note


£000




£000


£000











Billings



182,340




158,614


333,302











Revenue

4


87,568




82,616


169,373











Operating costs



(79,242)




(74,980)


(163,720)

Operating profit

4


8,326




7,636


5,653











Share of results of associates



541




573


1,350

Finance income

6


154




5,386


316

Finance costs

7


(618)




(193)


(1,087)

Profit before taxation

4


8,403




13,402


6,232

Taxation on profits

8


(1,980)




(2,331)


(4,293)

Profit for the financial period



6,423




11,071


1,939











Profit attributable to:










Equity shareholders of the Group

4


5,203




10,065


(155)

Non controlling interest



1,220




1,006


2,094














6,423




11,071


1,939











Earnings per share

4









Basic



7.36p




15.76p


(0.24)p

Diluted



7.36p




14.89p


(0.24)p











 










 

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


M&C SAATCHI PLC

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

ENDED 30 JUNE 2015

 




Six months
ended
30 June 2015




Six months
ended
30 June 2014


Year
ended
31 December 2014




£000




£000


£000

 

Profit for the period



 

6,423




 

11,071


 

1,939

Other comprehensive income:










Exchange differences on translating foreign operations



(1,738)




(343)


(1,212)

Total other comprehensive income for the period net of tax



(1,738)




(343)


(1,212)











Total comprehensive income for the period



4,685

 




10,728

 


727

 

Total comprehensive income attributable to:










Equity shareholders of the Group



3,465




9,722


(1,367)

Non controlling  interests



1,220




1,006


2,094




4,685




10,728


727

 


M&C SAATCHI PLC

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 30 JUNE 2015




30 June 2015




30 June 2014


31 December 2014




£000




£000


£000

NON CURRENT ASSETS










Intangible assets



28,382




35,086


29,142

Investments in associates



22,095




13,619


18,731

Plant and equipment



7,801




7,575


8,409

Deferred tax assets



1,770




1,352


1,515

Other non current assets



7,792




5,540


5,899




67,840




63,172


63,696











CURRENT ASSETS










Trade and other receivables



74,303




65,932


71,043

Current tax assets



32




822


318

Cash and cash equivalents



26,104




20,056


23,446




100,439




86,810


94,807











CURRENT LIABILITIES










Bank overdraft



(151)




(111)


(125)

Trade and other payables



(74,894)




(63,069)


(75,995)

Current tax liabilities



(801)




(2,617)


(1,995)

Other financial liabilities



(125)




(14)


(22)

Deferred and contingent consideration



-




(215)


-

Minority shareholder put options liabilities



(15,566)




(12,862)


(15,835)




(91,537)




(78,888)


(93,972)











Net current Assets / (liabilities)



8,902




7,922


835











Total assets less current liabilities



76,742




71,094


64,531











Non current liabilities










Deferred tax liabilities



(254)




(439)


(422)

Other financial liabilities



(24,389)




(10,349)


(18,226)

Minority shareholder put options liabilities



(7,303)




(14,361)


(8,708)

Other non current liabilities



(1,049)




(947)


(1,303)




(32,995)




(26,096)


(28,659)











Net assets



43,747




44,998


35,872













M&C SAATCHI PLC

UNAUDITED CONSOLIDATED BALANCE SHEET (CONTINUED)

AT 30 JUNE 2015




30 June 2015




30 June 2014


31 December
 2014




£000




£000


£000

Equity






























Share capital



725




647


683

Share premium



19,727




16,402


16,807

Merger reserve



29,335




22,405


27,689

Treasury reserve



(792)




(792)


(792)

Minority interest put option reserve



(14,041)




(15,594)


(13,070)

Non controlling interest acquired



(9,068)




(2,540)


(7,882)

Foreign exchange reserve



(2,406)




201


(668)

Retained earnings



14,949




21,898


9,639

TOTAL SHAREHOLDERS FUNDS



38,429




42,627


32,406











Non Controlling interestS



5,318




2,371


3,466











TOTAL EQUITY



43,747




44,998


35,872


 

 

M&C SAATCHI PLC

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)

SIX MONTHS ENDED 30 JUNE 2015

 

 


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 (CONTINUED)

SIX MONTHS ENDED 30 JUNE 2015

 

 


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 2014

690

16,402

16,736

(792)

(16,587)

(1,532)

544

33,070

48,531

2,293

50,824

Reserve movement for six months ending 30 June 2014









Exercise of put options

20

-

5,669

-

1,008

(1,008)

-

-

5,689

(9)

5,680

Share buy back

(63)

-

-

-

-

-

-

(21,414)

(21,477)

-

(21,477)

Exchange rate movements

-

-

-

-

(15)

-

-

-

(15)

(10)

(25)

Share option charge

-

-

-

-

-

-

-

177

177

-

177

Total transactions with owners

(43)

-

5,669

-

993

(1,008)

-

(21,237)

(15,626)

(19)

(15,645)

Dividends

-

-

-

-

-

-

-

-

-

(909)

(909)

Total comprehensive income for year

-

-

-

-

-

-

(343)

10,065

9,722

1,006

10,728

At 30 June 2014

647

16,402

22,405

(792)

(15,594)

(2,540)

201

21,898

42,627

2,371

44,998

 



 

M&C SAATCHI PLC

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

SIX MONTHS ENDED 30 JUNE 2015


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 2014

690

16,402

16,736

(792)

(16,587)

(1,532)

544

33,070

48,531

2,293

50,824

Reserve movement for year ending 31 December 2014








 

Acquisition

-

-

-

-

(1,653)

-

-

-

(1,653)

5

(1,648)

Exercise of put options

47

-

13,011

-

5,151

(4,791)

-

-

13,419

(429)

12,990

Deletion of right of equity

-

-

-

-

-

(1,559)

-

-

(1,559)

1,559

-

Exchange rate movements

-

-

-

-

19

-

-

-

19

(121)

(102)

Tender offer

(63)

-

-

-

-

-

-

(21,451)

(21,514)

-

(21,514)

Merger reserve release on impairments

-

-

(2,058)

-

-

-

-

2,058

-

-

-

Option exercise

8

405

-

-

-

-

-

(413)

-

-

-

Share option charge

-

-

-

-

-

-

-

200

200

-

200

Dividends

-

-

-

-

-

-

-

(3,670)

(3,670)

(1,935)

(5,605)

Total transactions with owners

(7)

405

10,953

-

3,517

(6,350)

-

(23,276)

(14,758)

(921)

(15,679)

Total comprehensive income for the year

-

-

-

-

-

-

(1,212)

(155)

(1,367)

2,094

727

At 1 December 2014

683

16,807

27,689

(792)

(13,070)

(7,882)

(668)

9,639

32,406

3,466

35,872













 


M&C SAATCHI PLC

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

SIX MONTHS ENDED 30 JUNE 2015

 



Six months ended
30 June 2015




Six months ended
30 June 2014


Year Ended
31 December 2014

 


Notes

£000




£000


£000

 










 

Revenue


87,568




82,616


169,373

 

Operating cost


(79,242)




(74,980)


(163,720)

 

Operating Profit


8,326




7,636


5,653

 

Adjustments for:









 

Depreciation of plant and equipment


1,120




1,065


2,055

 

Losses on sale of plant and equipment


9




137


198

 

Loss on disposal of a subsidiary


85




-


76

 

Loss on acquisition of a subsidiary


-




-


813

 

Profit on disposal of associate


(142)




-


-


Amortisation on acquired intangible assets


684




370


1,445

 

Impairment of goodwill


-




-


5,573

 

Amortisation of capitalised software intangible assets

50




59


120

 

Equity settled share based payment expenses


230




177


200

 

Operating cash flow before movements in working capital and provisions


10,362




9,444


16,133

 

Increase in trade and other receivables


(9,182)




(3,494)


(8,690)

 

Decrease in trade and other payables


4,569




(989)


8,676

 

Cash generated from operations


5,749




4,961


16,119

 

Tax paid


(2,081)




(3,066)


(5,332)

 

Net cash inflow from operating activities

3,668




1,895


10,787

 

Investing activities









 

Acquisitions net of cash acquired

10

(564)




(1,374)


(2,244)

 

Acquisitions of associates

10

(3,349)




-


(5,084)

 

Acquisition of investments


(335)




(224)


(1,187)

 

Proceeds from sale of associate


97




-


-

 

Proceeds from sale of plant and equipment


-




30


70

 

Purchase of plant and equipment


(638)




(1,504)


(3,350)

 

Purchase of capitalised software


(5)




(24)


(77)

 

Dividend from associates


76




82


660

 

Interest earned


154




31


307

 

Net cash consumed by investing activities


(4,564)




(2,983)


(10,905)

 

Net cash consumed by operating and investing activities


(896)




(1,088)


(118)

 



 



Six months ended
30 June 2015




Six months ended
30 June 2014


Year Ended
31 December
 2014



£000




£000


£000

Net cash consumed by operating and investing activities


(896)




(1,088)


(118)










Dividends paid to equity holders of the Company


-




-


(3,670)

Purchase of own shares


-




(21,477)


(21,514)

Dividends paid to non controlling interest


(1,912)




(909)


(1,935)

Issue of own shares


497




-


1

Repayment of finance leases


(17)




(22)


(61)

Inception of bank loans


6,451




10,022


17,913

Repayment of bank loans


(293)




-


-

Interest paid


(378)




(187)


(532)

Net cash generated / (consumed) from financing activities


4,348

 




(12,573)

 


(9,798)










Net increase / (decrease) in cash and cash equivalents


3,452

 




(13,661)

 


(9,916)










Cash and cash equivalents at the beginning of the period


23,321




33,587


33,587

Effect of exchange rate changes


(820)




19


(350)

Cash and cash equivalents at the end of the period


25,953

 




19,945

 


23,321










 


 

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 9 September 2015.

These results do not constitute the Group's statutory accounts.  The information presented in relation to 31 December 2014 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 2014 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 2015 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 2014.

 

 

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 2014 and which will form the basis of the 2015 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 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.

 

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, 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; and fair value gains and losses on liabilities caused by our put and call option agreements (whether accounted under IFRS2 or IRS39).

 

Six months to
30 June 2014




Reported results
£000


Amortisation
of acquired intangibles

£000


Fair value adjustments to minority put option liabilities
 £000


Headline
results

£000

Revenue


82,616


-


-


82,616

Operating profit


7,636


370


-


8,006

Share of results of associates & JV


573


-


-


573

Finance income


5,386


-


(5,270)


116

Finance cost


(193)


-


-


(193)

Profit before taxation


13,402


370


(5,270)


8,502

Taxation


(2,331)


(78)


-


(2,409)

Profit for the year


11,071


292


(5,270)


6,093

Non controlling interests

(1,006)


-


-


(1,006)

Profit attributable to equity holders of the Group

10,065


292


(5,270)


5,087

BASIC EARNINGS PER SHARE







Weighted average number of shares (Thousands)

63,882






63,882

Basic EPS


15.76p






7.96p










DILUTED EARNINGS PER SHARE







Weighted average number of shares (Thousands) as above


63,882






63,882

Add









- LTIP


55






55

- 2012 LTIP


230






230

- New LTIP


2,322






2,322

- UK Growth shares


641






641

- Dilutive put options


472






472

Total


67,602






67,602

Diluted earnings per share

14.89p






7.52p

Year ended
31 December 2014




Reported results
£000

Amortisation
of acquired intangibles

£000

Acquisition of remaining shares in loss making associate

£000

Impairment of Goodwill 
£000

Contingent acquisition cost classified as expense
£000

Fair value adjustments to minority put option liabilities
 £000

Headline
results

£000

Revenue


169,373

-

-

-

-

-

169,373

Operating profit


5,653

1,445

813

5,649**

2,465

-

16,025

Share of results of associates & JV


1,350

-

-

-

-

-

1,350

Finance income


316

-

-

-

-

-

316

Finance cost


(1,087)

-

-

-

-

539

(548)

Profit before taxation


6,232

1,445

813

5,649

2,465

539

17,143

Taxation


(4,293)

(391)

-

-

-

-

(4,684)

Profit for the year


1,939

1,054

813

5,649

2,465

539

12,459

Non controlling interests

(2,094)

-

-

-

-

-

(2,094)

(Loss) / profit attributable to equity holders of the Group

(155)

1,054

813

5,649

2,465

539

10,365

BASIC EARNINGS PER SHARE







Weighted average number of shares (Thousands)

65,285






65,285

Basic EPS


(0.24)p






15.88p










DILUTED EARNINGS PER SHARE







Weighted average number of shares (Thousands) as above


65,285






65,285

Add









- LTIP


55






55

- 2012 LTIP


230






230

- New LTIP


2,772






2,772

Total


68,342






68,342

Diluted earnings per share***

(0.24)p






15.17p

 **Of the £5,649k, £76k relates to a loss on disposal of an Indian subsidiary and £5,573k relates to impairment of goodwill.

*** There is no dilutive effect of losses

 

 


5.   SEGMENTAL INFORMATION

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

 

 

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 operating profit:






Depreciation & Amortisation of software


(653)

(119)

(94)

(131)

(123)

(1,119)

Share option charges


(30)

-

-

-

-

(30)

OFFICE LOCATION


London

Paris

Berlin

Madrid

Geneva

Milan
Moscow

Stockholm

Abu Dhabi

Beirut

Cape Town

Johannesburg

Tel Aviv

Sydney

Melbourne

New Delhi

Kuala Lumpur

Hong Kong

Beijing

Shanghai

Tokyo

Singapore

Los Angeles

São Paulo

New York

San Francisco


 



 

Six months to
30 June 2014


UK

£000

Europe

£000

Middle East and Africa
£000

Asia and Australasia

£000

Americas

£000

Total

£000

Revenue


37,821

10,372

3,934

22,134

8,355

82,616

Operating profit excluding Group costs


5,566

1,231

473

2,541

647

10,458

Group costs


(2,235)

(36)

-

(165)

(16)

(2,452)

Operating profit


3,331

1,195

473

2,376

631

8,006

Share of results of associates
and JV


430

(17)

-

160

-

573

Financial income and cost


(67)

(24)

9

19

(14)

(77)

Profit before taxation


3,694

1,154

482

2,555

617

8,502

Taxation


(879)

(355)

(124)

(813)

(238)

(2,409)

Profit for the period


2,815

799

358

1,742

379

6,093

Non controlling interests


(475)

(211)

(173)

(437)

290

(1,006)

Profit attributable to equity shareholders
of the Group


2,340

588

185

1,305

669

5,087

HEADLINE BASIC EPS







7.96p

Non cash costs included in operating profit:






Depreciation & Amortisation of software


(676)

(136)

(98)

(176)

(38)

(1,124)

Share option charges


(177)

-

-

-

-

(177)

OFFICE LOCATION


London

Paris

Berlin

Madrid

Geneva

Milan
Moscow

Stockholm

Abu Dhabi

Beirut

Cape Town

Johannesburg

 

Sydney

Melbourne

New Delhi

Kuala Lumpur

Hong Kong

Beijing

Shanghai

Tokyo

Singapore

Los Angeles

São Paulo

New York

San Francisco


 

 



 

Year ended
31 December 2014


UK

£000

Europe

£000

Middle East and Africa
£000

Asia and Australasia

£000

Americas

£000

Total

£000

Revenue


79,144

21,092

8,004

44,173

16,960

169,373

Operating profit excluding Group costs


11,757

2,892

1,027

5,064

445

21,185

Group costs


(4,710)

(72)

-

(331)

(47)

(5,160)

Operating profit


7,047

2,820

1,027

4,733

398

16,025

Share of results of associates
and JV


1,074

(19)

-

224

71

1,350

Financial income and cost


(146)

(54)

(11)

58

(79)

(232)

Profit before taxation


7,975

2,747

1,016

5,015

390

17,143

Taxation


(1,593)

(954)

(271)

(1,652)

(214)

(4,684)

Profit for the year


6,382

1,793

745

3,363

176

12,459

Non controlling interests


(1,276)

(406)

(354)

(533)

475

(2,094)

Profit attributable to equity shareholders
of the Group


5,106

1,387

391

2,830

651

10,365

HEADLINE BASIC EPS







15.88p

Non cash costs included in operating profit:






Depreciation & Amortisation of software


(1,128)

(286)

(210)

(297)

(254)

(2,175)

Share option charges


(200)

-

-

-

-

(200)

OFFICE LOCATION


London

Paris

Berlin

Madrid

Geneva

Milan
Moscow

Stockholm

Abu Dhabi

Beirut

Cape Town

Johannesburg

 

Sydney

Melbourne

New Delhi

Kuala Lumpur

Hong Kong

Beijing

Shanghai

Tokyo

Singapore

Los Angeles

São Paulo

New York

San Francisco


 

 



 

 

6.   Finance Income



Six months
ended
30 June 2015




Six months
ended
30 June 2014


Year
 ended
31 December
2013



£000




£000


£000











Bank interest receivable


98




99


256

Other interest receivable


56




17


60

Total finance income


154




116


316

Fair value adjustments to minority shareholder put option liabilities


-




5,270


-

Total


154




5,386


316

 

 

7.   Finance COsts

 



Six months
ended
30 June 2015




Six months
ended
30 June 2014


Year
 ended
31 December
 2014



£000




£000


£000

Finance costs










Bank interest payable


(366)




(189)


(541)

Other interest payable


(14)




(4)


(7)

Total interest payable


(380)




(193)


(548)










Fair value adjustments to minority shareholder put option liabilities


(238)




-


(539)

Total


(618)




(193)


(1,087)

 

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 2015 is 21.2% (30 June 2014: 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 2015 is 17.4% (30 June 2014: 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 2015




Six months
ended
30 June 2014


Year
 ended
31 December
 2014



£000




£000


£000











2013 final dividend 4.24p (2012: 3.85p)


-




-


2,723

2014 interim dividend 1.40p (2013: 1.21p)


-




-


947












-




-


3,670

 

The directors propose an interim dividend of 1.61p per share (2014: 1.40p per share) payable on
13 November 2015 to shareholders who are on the register at 30 October 2015. This interim dividend, amounting to £1,158k (2014: £947k) has not been recognised as a liability in this half-yearly financial report.

10. Cash consumed by acquisitions




Six months
ended
30 June 2015




Six months
ended
30 June 2014


Year
 ended
31 December
 2014




£000




£000


£000

Acquisitions










Initial cash consideration paid



(577)




(1,232)


(2,284)

Cash and cash equivalents acquired



13




(142)


83

Cash lost on nominal value disposal



-




-


(43)




(564)




(1,374)


(2,244)

Purchase of associates



(3,349)




-


(5,084)




(3,914)




(1,374)


(7,328)











 


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