Half Yearly Report

RNS Number : 5513D

Dods (Group) PLC

27 October 2015

 

Dods (Group) PLC

Interim Results for the six months ended 30 September 2015

Financial Highlights

•  Revenue of £9.3 million (2014: £8.4 million)

•  Gross profit margin at 36% (2014: 25%)

•  Adjusted EBITDA at £1.0 million (2014: Loss £54,000) *

•  Cash generated from operations was £1.1 million (2014: Loss £98,000)

•  Net cash of £7.0 million at 30 September 2015

•  Adjusted EPS 0.20 pence (2014: Loss 0.19 pence)

*EBITDA is calculated as earnings before interest, tax, depreciation, amortisation of intangible assets acquired through business combinations, share based payments and nonrecurring items

Cheryl Jones, Chairman of Dods (Group) PLC, commented:

"The Board is pleased to announce that the Company achieved the plan outlined for the business in the first half of the fiscal year. The financial performance improvement is a result of the past nine months of transformational initiatives.

In the second half of the year, management will be keenly focussed on resource effectiveness, maintaining and leveraging the efficiencies gained through restructuring, and further developing marketing and sales programmes to accelerate revenue growth and capture market share.

Business Update

Turnover improved 11% from £8.4 million to £9.3 million. Gross margins improved significantly from 25% to 36%, driven primarily from transformational initiatives, which include focus on recurring revenue and client retention. 

Adjusted EBITDA for the six months ended 30 September has improved to a profit of £1.0 million compared to a loss of £54,000 in the comparative period. Cash generated from operations was £1.1 million; a result of EBITDA earnings and early benefits derived through implementation of initial administrative and back-office procedures.

Non-recurring costs of £250,000 were incurred in the first half of the year relating to the restructuring of the business.

Digital revenues were up 9% to £4.1 million in the first half of the fiscal period. The Company's event and training revenues had a very positive first half performance growing by 30% to £2.9 million and 19% to £0.6 million respectively.

In the second half of the fiscal year, the Company will remain focussed on the priorities set out in the 2015 annual report. Further progress against these priorities will allow Dods' to reposition resources enabling further product and service innovation, to realign market-facing activities for greater effectiveness, to leverage the investment in technology and improve the Group's overall structural efficiencies.

The Board is confident the company is well positioned for significant growth in the second half of the financial year.

Key Financial Information

Three Year Summary - Half Year
(£000s unless specified otherwise)			Six months ended 30 September 2015	Six months ended 30 September 2014	Six months ended 30 September 2013
Revenue			9,275	8,442	9,332
Gross Profit Margin %			36%	25%	22%
Adjusted EBITDA			1,008	(54)	28
Depreciation			(160)	(58)	(114)
Amortisation of intangible assets and assets acquired through business combinations			(312)	(418)	(514)
Amortisation of software intangible assets			(155)	(578)	(375)
Adjusted EBIT			380	(1,108)	(974)
Non-recurring items			(251)	(75)	(89)
Net finance costs			(16)	-	7
Earnings before tax			113	(1,183)	(1,057)
EPS (pence)			0.03	(0.33)	(0.34)
Adjusted EPS (pence)			0.20	(0.19)	(0.13)
Cash flow from operations			1,107	(98)	(453)
Cash Balance			6,977	4,843	5,611
Three Year Summary - Annual
(£000s unless specified otherwise)			Full Year to 31 March 2015	Full Year to 31 March 2014	15 months to 31 March 2013
Revenue			18,301	19,775	18,773
Gross Profit Margin %			29%	29%	25%
Adjusted EBITDA			1,205	1,085	378
Depreciation			(228)	(225)	(270)
Amortisation of intangible assets and assets acquired through business combinations			(791)	(1,026)	(1,223)
Amortisation of software intangible assets			(763)	(803)	(843)
Adjusted EBIT			(577)	(969)	(1,958)
Non-recurring items			(1,550)	(475)	(1,698)
Adjustments to amortisation of intangible assets/ assets acquired through business combinations			(2,781)	-	-
Impairment of goodwill			-	-	(6,893)
Net finance costs			(63)	(44)	(78)
Earnings before tax			(4,971)	(1,488)	(10,627)
EPS (pence)			(1.38)	(0.38)	(3.75)
Adjusted EPS (pence)			0.13	0.06	(2.76)
Cash flow  from operations			1,449	439	(1,459)
Cash Balance			5,908	5,291	7,037

For further information, please contact:

Dods (Group) PLC

Cheryl Jones (Chairman)

Mark Morrell (Company Secretary)

0161 836 8800

Cenkos Securities plc

(Nominated Advisor and Broker to Dods)

Nicholas Wells  

020 7397 8900

Note to editors:

Dods (Group) PLC is a public limited company listed on AIM (ticker DODS)

DODS (GROUP) PLC
CONSOLIDATED  INCOME STATEMENT

									Six months ended		Six months ended		Year ended
									30 September		30 September		31 March
									2015		2014		2015
								Note	£'000		£'000		£'000
Revenue								2	9,275		8,442		18,301
Cost of sales									(5,962)		(6,352)		(13,104)
Gross profit									3,313		2,090		5,197
Administrative expenses:
Non-recurring items								3	(251)		(75)		(1,550)
Amortisation of intangible assets and assets acquired  through business combinations
									(312)		(418)		(1,904)
Amortisation of intangible assets									(155)		(578)		(763)
Depreciation									(160)		(58)		(228)
Impairment of intangible assets and assets acquired through business combinations									-		-		(1,668)
Net administrative expenses									(2,306)		(2,144)		(3,998)
Total administrative expenses									(3,184)		(3,273)		(10,111)
Operating profit/(loss)									129		(1,183)		(4,914)
Finance income									3		17		32
Financing costs									(19)		(17)		(89)
Profit/(Loss) before tax									113		(1,183)		(4,971)
Income tax credit									0		76		292
Profit/(Loss) for the period									113		(1,107)		(4,679)
Loss per share
Basic								4	0.03p		(0.33) p		(1.38) p
Diluted								4	0.03p		(0.32) p		(1.35) p

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
			Six months ended	Six months ended		Year ended
			30 September	30 September		31 March
			2015	2014		2015
			£'000	£'000		£'000
	Profit/(Loss) for the period		113	(1,107)		(4,679)
	Items that will be subsequently reclassified to profit and loss
	Exchange differences on disposal of translation of foreign operations		5	(7)		(62)
	Other comprehensive (loss)/income for the period		5	(7)		(62)
	Total comprehensive loss in the period
	attributable to equity holders of parent company		118	(1,114)		(4,741)

DODS (GROUP) PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
				As at		As at		As at
				30 September		30 September		31 March
				2015		2014		2015
				£'000		£'000		£'000
	Goodwill			13,282		13,282		13,282
	Intangible assets			9,601		13,622		10,058
	Property, plant and equipment			214		457		308
	Non-current assets			23,097		27,361		23,648
	Inventories			56		109		74
	Trade and other receivables			3,709		3,528		2,971
	Cash			6,977		4,843		5,908
	Income tax receivable			-		(3)		-
	Current assets			10,742		8,477		8,953
	Income tax payable			(43)		-		(30)
	Trade and other payables			(8,274)		(6,624)		(7,168)
	Current liabilities			(8,318)		(6,624)		(7,198)
	Net current assets			2,424		1,853		1,755
	Total assets less current liabilities			25,521		29,214		25,403
	Deferred tax liability			(808)		(1,025)		(808)
	Non-current liabilities			(808)		(1,025)		(808)
	Net assets			24,713		28,189		24,595
	Equity attributable to equity holders of parent
	Issued capital			17,078		17,078		17,078
	Share premium			8,009		8,009		8,009
	Other reserves			409		409		409
	Retained profit			(769)		2,253		(882)
	Share option reserve			47		471		47
	Translation reserve			(61)		(31)		(66)
	Total equity			24,713		28,189		24,595

DODS (GROUP) PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
									Total
		Share	Share		Merger	Retained	Translation	Share option	shareholders'
		capital	premium		reserve	earnings	reserve	reserve	funds
		£'000	£'000		£'000	£'000	£'000	£'000	£'000
	At 1 April 2014	17,078	8,009		409	3367	(4)	471	29,330
	Reclassification	-	-		-	-	-	-	-
	Total comprehensive loss
	Loss for the year	-	-		-	(4,679)	-	-	(4,679)
	Other comprehensive loss
	Currency translation differences	-	-		-	-	(62)	-	(62)
	Transactions with owners
	Lapsed option transfer	-	-		-	430	-	(430)	(-)
	Share based payment	-	-		-	-	-	6	6
	At 1 April 2015	17,078	8,009		409	(882)	(66)	47	24,595
	Total comprehensive profit/(loss)
	Profit for the period	-	-		-	113	-	-	113
	Other comprehensive profit/(loss)
	Currency translation differences	-	-		-	-	5	-	5
	At 30 September 2015	17,078	8,009		409	(769)	(61)	47	24,713

DODS (GROUP) PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
				Six months ended		Six months ended			Year ended
				30 September		30 September			31 March
				2015		2014			2015
				£'000		£'000			£'000
	Cash flows from operating activities
	Profit/(loss) for the period			113		(1,107)			(4,679)
	Depreciation of property, plant and equipment			160		58			228
	Amortisation of intangible assets acquired through business combinations			312		418			1,904
	Amortisation of other intangible assets			155		578			763
	Accelerated amortisation of software intangibles			-		-			578
	Impairment of intangible assets acquired through business combinations			-		-			1,668
	Share based payments credit			-		-			6
	Net finance costs			-		-			57
	Income tax credit			-		(76)			(292)
	Operating cash flows before movements in
	working capital			740		(129)			233
	Change in inventories			18		(13)			50
	Change in receivables			(738)		282			788
	Change in payables			1,117		(202)			378
	Net cash generated by operations			1,137		62)			1,449
	Income tax paid			(30)		(36)			-
	Net cash used in operating activities			1,107		(98)			1,449
	Cash flows from investing activities
	Interest and similar income received			-		17			32
	Addition to property, plant and equipment			(22)		(38)			(73)
	Additions to intangible assets			-		(291)			(638)
	Net cash used in investing activities			(22)		(312)			(680)
	Cash flows from financing activities Interest and similar income received			3		-			-
	Interest and similar expenses paid			(19)		(4)			(89)
	Net cash from financing activities			(16)		(4)			(89)
	Net (decrease)/increase in cash and cash equivalents			1,069		(414)			679
	Opening cash and cash equivalents			5,908		5,291			5291
	Effect of exchange rate fluctuations on cash held			-		(34)			(62)
	Closing cash and cash equivalents			6,977		4,843			5,908

DODS (GROUP) PLC                                                                                                                                                                            

Notes to the Accounts                                                                                                                                                       

30 September 2015                                                                                                                                                             

1     Statement of Accounting Policies                                                                                                                            

       Basis of preparation

This condensed set of financial statements has been prepared in accordance with IAS 34: Interim Financial Reporting as adopted by the EU.  The annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU.  As required by AIM Rules, the condensed set of financial statements has been prepared, and applying accounting policies and presentation that were applied in the preparation of the company's published consolidated financial statements for the year-ended 31 March 2015.

The comparative figures for the year ended 31 March 2015 have been extracted from the company's statutory accounts for that financial period.  Those accounts have been reported on by the company's auditor and delivered to the registrar of companies.  The report of the auditor was (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying  their report, and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

The taxation charge for the six months ended 30 September 2015 is based on the expected annual tax rate, and the assumed use of accumulated tax losses.                                                                                                                                                                                                                                                                                                                                                  

       Going Concern                                                                                                                                                             

The Group had net current assets as at 30 September 2015 of £2,424,000 (2014: £1,853,000). The Directors have considered the implications for Going Concern below.                                                                                      

The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Group's medium term performance, and the factors which mitigate these risks have not significantly changed from those set out in the Group's Financial Report for the 12 months ended 31 March 2015. The Board has reviewed forecasts for the years ending 31 March 2016 and 31 March 2017, and remains satisfied with the Group's funding and liquidity position. 

On the basis of its forecasts and available facilities and cash balances held on the balance sheet, the Board has concluded that the Going Concern basis of preparation continues to be appropriate.                                                                                                                         

2     Segmental information                                                                                                                                              

The Group considers that it has one operating business segment.  It monitors revenue by product and activity to determine the overall performance of the segment.                                                                                                                                                 

Principal activities are as follows:                                                                                                                                                                                                                                                                                                              

The Group's principal activity is the curation and aggregation of high quality information and data, and the provision of services through a combination of online information and digital services, training courses, conferences and events publications, and other media. The Group operates primarily in the UK, Belgium and France and has market-leading positions in much of its portfolio. These products and services can be paired and bundled to provide comprehensive solutions.                                                                                   

No client accounted for more than 10% of total revenue. The following table provides an analysis of the Group's performance by geographical market.

			Six months ended			Six months ended					Year ended
			30 September			30 September					31 March
			2015			2014					2015
			£'000			£'000					£'000
Revenue
United Kingdom			7,232			6,337					14,109
Continental Europe and rest of the world			2,043			2,105					4,192
			9,275			8,442					18,301

3      Non-recurring items

		Six months ended 30 Sept 2015	Six months ended 30 Sep 2014	Year ended 31 Mar 2015
		£'000	£'000	£'000
Redundancy and people related costs		242	-	246
Consultancy fees		-	75	83
Accelerated amortisation of software intangibles		-	-	578
Payments in lieu of notice, compensation for loss of office as associated costs		-	-	386
Holyrood office move		9	-	-
Closure of Cambridgeshire Office		-	-	46
Impairment of Debtor Balances		-	-	211
		251	75	1,550

4      Earnings per share

Basic earnings per share is calculated by dividing the profit/ (loss) attributable to shareholders, by the weighted average number of Ordinary shares in issue during the period.

An adjusted earnings per share is calculated by dividing the adjusted profit/ (loss) attributable to shareholders (detailed below) by the weighted average number of Ordinary shares in issue during the period.                       

Diluted earnings per share is calculated by adjusting the weighted average number of Ordinary shares, assuming conversion of all dilutive share options to Ordinary shares

		Six months ended 30 Sept 2015		Six months ended 30 Sep 2014		Year ended 31 Mar 2015
		£'000		£'000		£'000
Profit/(Loss) attributable to shareholders		113		(1,107)		(4,679)
Add: non-trading items net of tax		251		57		1,550
Add: amortisation of intangible assets acquired through business combinations		312		418		1,904
Add: Impairment of intangible assets acquired through business combinations		-		-		1,668
Add/(deduct): share based payment (credit)/charge		-		-		6
Adjusted profit/(loss) on continuing operations		676		(632)		449
		Six months ended 30 Sept 2015		Six months ended 30 Sep 2014		Year ended 31 Mar 2015
		Ordinary shares		Ordinary shares		Ordinary shares
Weighted average number of shares
In issue during the period - basic		339,770,953		339,770,953		339,770,953
Share options		3,620,000		7,620,000		5,620,000
Weighted average number of shares for diluted earnings per share		343,390,953		347,390,953		345,390,953
Earnings/(loss)  per share - ordinary shares (pence)		0.03 p		(0.33) p		(1.38) p
Adjusted earnings/(loss) per ordinary share (as defined above)		0.20 p		(0.19)p		0.13 p
Earnings per share on continuing operations
Profit/(loss)  per ordinary share - basic		0.03 p		(0.33) p		(1.38) p
Profit/(loss) per ordinary share - diluted		0.03 p		(0.32) p		(1.35) p

 

END

 

 

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