Interim Results
OneMonday Group PLC
23 April 2001
23rd April 2001
'Performance impacted by difficult trading conditions towards end of half'
* Turnover up 54% to £23 million
* Pre-tax profit up 21% to £1.148 million.
* Difficult trading conditions especially in the US commenced towards end
of first half and continue
* Client wins including BEA, British Gas, Coca-Cola Asia Pacific, Intel,
Mitsubishi and Woolworths
* Group reducing cost base while maintaining Group's business model to
continue to achieve long term international organic growth
* Board expects only moderate growth at the PBT level with satisfactory
revenue growth for the full year.
Tom Lewis, Chairman of OneMonday Group plc, the international technology pr
company, said: 'The outlook for the remainder of the current financial year is
less certain than it was in the first half. Although our share of the North
American technology market is small, we depend on the resilience or otherwise
of the US economy, and its impact on the worldwide technology industry. There
is some sign of client companies gradually increasing spending again but this
is unlikely to come in time to have much effect on the Group's full year
figures.
We remain very confident of the Group's business model and the long-term
profit growth that we can generate from its operations.'
For further information, contact:
Tom Lewis, Chairman, OneMonday Group plc 020 8996 4100
David Dewhurst, Finance Director 020 8996 4100
Nick Denton, Hogarth Partnership 020 7357 9477
Letter from the Chairman
Dear Shareholder,
I'm pleased to report that in the six months to 31 January 2001, OneMonday
Group turnover reached £23m, an increase of 54% over the comparable period
last year, while profit before tax (before flotation costs) grew by 21% to £
1.15m. Adjusted basic earnings per share were up 34% to 1.65p, and the Board
has approved a maintained interim dividend per share of 0.3p.
As these figures demonstrate, the top-line growth has remained strong at 54%,
and this is once again entirely organic. It comprises new business wins and
new operations opened from scratch in New York, Palo Alto and Atlanta for Text
100, Hong Kong and Auckland for AUGUST.ONE and New York for Joe Public
Relations, which has also set up a sister agency in London called Joe Public
Future.
After an initially strong start to the new financial year, the latter half of
the six months to 31 January 2001 nonetheless saw more difficult trading
conditions. While new operations in Atlanta and Palo Alto have quickly reached
profitability, the recently established and much larger New York operation has
returned greater losses than anticipated, and two of last year's new
operations, FWP and Brand X, continued to make disappointing losses into their
second year of operation.
As the segmental analysis demonstrates our European operations have held up
well under the circumstances, with good performances from the Text 100, Bite
Communications and EVUS brands. However, the Group has suffered a significant
downturn in profitability in the North American market due to the sharp change
in economic climate.
The Board is confident of the underlying strength of the Group's activities. A
large amount of new business added in the first six months has offset clients
lost. For example, since the beginning of the year, AUGUST.ONE and Joe Public
Relations have added such brands as British Gas, Coca-Cola Asia Pacific,
Mitsubishi and Woolworths whereas Bite and Text 100 have added BEA, Cisco,
Intel and SGI (formerly Silicon Graphics) to their rosters. These wins have
compensated for a number of client losses resulting from a tightening of the
venture capital market, including eCharge, Sageport and eCast. Overall this
change leaves the Group better able to deal with any further deterioration in
trading conditions.
During this period, the Group has taken steps to reduce its cost base and
bring it more in line with trading conditions. These steps include reductions
in headcount within some of the operating businesses, a tightening of spending
on operational items and the closure of Brand X, a small online marketing
business still at the loss-making stage.
At the time of the Company's AGM in January, the Board felt that it would
still be possible for the Company to achieve City expectations for the full
year 'in the absence of unforeseen circumstances'. The months since then have,
however, seen a further weakening of economic sentiment in the USA and an
accelerated flow of profit warnings from technology companies.
The outlook for the remainder of the current financial year is less certain
than it was in the first half. Although our share of the North American
technology market is small, companies such as OneMonday Group depend on the
resilience or otherwise of the US economy and its impact on the worldwide
technology industry. On balance, the Board expects the full-year figures to
show only moderate growth over the level of our profit before tax (before
flotation costs) albeit with satisfactory organic revenue growth.
The Group is seeing some signs of client companies gradually increasing
spending again after the very sudden hiatus in expenditure at the end of last
calendar year, but this is unlikely to come in time to have much effect on the
Group's full-year figures to 31 July 2001. That said, the Board remains very
confident of the Group's business model and the long-term profit growth that
can be generated from its operations.
Tom Lewis
Chairman of the Board
ONEMONDAY GROUP PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED JANUARY 31 2001
Six Months Six Months Year ended
ended ended
31 July 2000
31 January 31 January
2001 2000 (AUDITED)
(UNAUDITED) (UNAUDITED)
£'000 £'000 £'000
Turnover (Note 2) 23,098 15,015 36,440
Other external charges (2,783) (2,520) (6,404)
Turnover less other external charges 20,315 12,495 30,036
Staff costs 12,739 7,945 17,978
Depreciation 735 435 1,031
Other operating charges:
Exceptional flotation costs (Note - 434 434
3)
Other operating charges 5,603 3,160 8,137
Total other operating charges 5,603 3,594 8,571
(19,077) (11,974) (27,580)
Operating Profit 1,238 521 2,456
Interest receivable and similar income 26 6 22
Interest payable and similar charges (116) (10) (212)
Profit on Ordinary Activities before
Taxation (Note 2)
1,148 517 2,266
Tax on profit on ordinary activities (458) (421) (1,078)
(Note 4)
Profit on Ordinary Activities after 690 96 1,188
Taxation
Minority Interests (34) (44) (69)
Profit Attributable to Members of the 656 52 1,119
Holding Company
Equity dividends paid and proposed (119) (119) (397)
(Note 5)
Retained Profit/(Loss) for the Period 537 (67) 722
Basic Earnings per Share (Note 6) 1.65p 0.13p 2.87p
Diluted Earnings per Share (Note 6) 1.51p 0.12p 2.67p
Adjusted Earnings per Share (Note 6) 1.65p 1.23p 3.94p
The profit and loss account for the six months ending 31 January 2001 and 31
January 2000 and the year ended 31 July 2000 relate to the continuing
activities of the Group.
Prior period earnings per share figures have been restated (see note 6).
ONEMONDAY GROUP PLC
CONSOLIDATED BALANCE SHEET
AS AT 31 JANUARY 2001
31 January 31 July 31 January
2001 2000 2000
(UNAUDITED) (AUDITED) (UNAUDITED)
£'000 £'000 £'000
FIXED ASSETS
Tangible assets 3,919 3,262 2,314
Investments (Note 7) 1,523 1,523 1,509
5,442 4,785 3,823
CURRENT ASSETS
Debtors 8,944 9,014 8,227
Cash at bank and in hand 1,574 1,802 646
10,518 10,816 8,873
CREDITORS - Amounts falling due (7,411) (8,331) (5,814)
within one year
NET CURRENT ASSETS 3,107 2,485 3,059
TOTAL ASSETS LESS 8,549 7,270 6,882
CURRENT LIABILITIES
CREDITORS - Amounts falling due after (1,299) (606) (953)
more than one year
NET ASSETS (Note 2) 7,250 6,664 5,929
EQUITY CAPITAL AND RESERVES
Called up share capital 1,121 1,121 1,121
Share premium account 2,711 2,711 2,711
Profit and loss account 3,306 2,750 1,985
TOTAL EQUITY SHAREHOLDERS' FUNDS 7,138 6,582 5,817
MINORITY INTERESTS 112 82 112
7,250 6,664 5,929
ONEMONDAY GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 JANUARY 2001
Six Months Six Months Year ended
ended ended
31 July 2000
31 January 31 January (AUDITED)
2001 2000
(UNAUDITED) (UNAUDITED)
£'000 £'000 £'000
Net Cash Inflow/(Outflow) from
Operating Activities (Note 8 (1))
1,746 (405) 2,522
Returns on Investments and Servicing
of Financing
Interest received 26 6 22
Interest paid (116) (10) (212)
Minority interest dividends paid (12) - (18)
Net Cash Outflow from Returns on
Investments and Servicing of Finance (102) (4) (208)
Net Cash Outflow from Taxation
Corporation tax paid (664) (531) (1,093)
Capital Expenditure and Investing
Activities
Long term deposits (69) (28) (73)
Payments to acquire own shares - - (75)
Payments to acquire tangible
fixed assets (1,425) (1,007) (2,757)
Proceeds from sale of own shares - - 11
Receipts from sales of tangible
fixed assets 54 137 233
Net Cash Outflow from Capital
Expenditure
(1,440) (898) (2,661)
and Investing Activities
Acquisitions and disposals
Purchase of minority interest (48) - -
Equity Dividends Paid - (133) (185)
Net cash outflow before Financing (508) (1,971) (1,625)
Financing
Long term bank loan 1,117 700 631
Issue of share capital - 1,599 1,700
Share capital issue costs - - (101)
Net capital outflow on hire purchase (27) (22) (121)
contracts
Net Cash Inflow from Financing 1,090 2,277 2,109
Increase in Cash 582 306 484
for the Period (Note 8 (2))
1) FINANCIAL INFORMATION
The financial information is for the six months ended 31 January 2001 and is
neither audited nor reviewed as defined by APB Bulletin 1993/1 and 1998/6. The
balance sheet and profit and loss account do not constitute statutory
statements within the meaning of Section 240 of the Companies Act 1985 (as
amended). The results for the year ended 31 July 2000 have been extracted from
the financial statements of the Group on which an unqualified report from the
auditors has been received and which have been filed with the Registrar of
Companies.
2) SEGMENTAL INFORMATION
Analysis of turnover, profit before taxation and net assets by geographic
origin and destination.
Europe, Middle North Asia Total
East & Africa America Pacific
£'000 £'000 £'000 £'000
Six Months ended
January 31, 2001
Turnover 14,860 6,082 2,156 23,098
Profit before 1,459 (272) (39) 1,148
taxation
Net Assets 6,532 739 (21) 7,250
Year ended July
31, 2000
Turnover 25,832 7,790 2,818 36,440
Profit before 1,307 * 984 (25) 2,266
taxation
Net Assets 5,882 907 (125) 6,664
Six Months ended
January 31, 2000
Turnover 11,216 2,901 898 15,015
Profit before 85 * 471 (39) 517
taxation
Net Assets 5,456 802 (329) 5,929
* Note: Profit for the six months ended 31 January 2000 and for the year ended
31 July 2000 in the EMEA region was significantly reduced due to the expenses
of the share float process. Fees of approximately £535k were incurred as a
result during November and December 1999 of which £434k were charged through
the profit and loss account.
The turnover relates to one class of business.
The Directors consider these regions to be separate geographic markets and the
markets within which the group operates.
3) EXCEPTIONAL FLOTATION COSTS
Exceptional flotation costs of £535k represent the fees and related expenses
incurred in the process of obtaining a listing on the London Stock Exchange.
Of these, £101k has been netted against share premium in accordance with
section 130 of the Companies Act 1985 (as amended).
4) TAX ON PROFIT ON ORDINARY ACTIVITIES
The tax charge is higher than a standard UK rate as a result of profits being
generated in high tax regimes and unrelieved overseas losses.
5) DIVIDENDS
An interim dividend of 0.30p (2000 adjusted: 0.30p) per share will be paid on
31 May 2001 to shareholders on the register of members on 4 May 2001.
The 30 January 2000 dividend as shown above has been adjusted as a result of a
two for one split of the Company's shares that happened on 30 January 2001.
6) EARNINGS PER SHARE
The earnings per share figures for the year ended 31 July 2000 and the six
months ended 31 January 2000 have been restated as a result of the two for one
split of the Company's shares as described in Note 5. The weighted average
number of shares in the earnings per share calculation have also been restated
on this basis.
Earnings per share has been calculated in accordance with FRS14, using
earnings of £656k (2000 full year: £1,119k and 2000 interim: £ 52k) and the
weighted average number of shares in issue of 39,767,126 (2000 year end:
38,921,598 and 2000 interim 38,154,442). Diluted earnings per share have also
been calculated on the weighted average number of shares in issue, as adjusted
by potential ordinary shares of 43,584,159 (2000 year end: 41,846,790 and 2000
interim 41,334,192).
In the year ended 31 July 2000 and the six months ended 31 January 2000, the
adjusted earnings per share has been calculated by adding £417k of flotation
costs back to the Profit attributable to shareholders.
7) INVESTMENTS
This represents investment in own shares and is the cost of shares held by the
Company Employee Share Ownership Plan Trust (ESOP) in the Company. The market
value at 31 January 2001 was £13,007k (31 July 2000 was £9,971k).
8) NOTES TO THE CASH FLOW STATEMENT
(1) Reconciliation of Operating Profit to Net Cash Inflow/(Outflow)
from Operating Activities.
Six Months Six Months Year ended
ended ended
July 31
January 31 January 31 2000
2001 2000 (Audited)
(Unaudited) (Unaudited)
£'000 £'000 £'000
Operating profit 1,238 521 2,456
Depreciation 735 435 1,031
Profit on sale of own - - (11)
shares
Exchange Movements - 12 -
Loss/(Profit) on sale 2 (32) (30)
of tangible fixed
assets
Decrease/(increase) in 201 (1,225) (2,444)
debtors
(Decrease)/increase in (430) (116) 1,556
creditors
Increase in investments - - (14)
Decrease in provisions - - (22)
Net cash inflow/
(outflow) from
operating activities 1,746 (405) 2,522
(2) Reconciliation of Net Cash Flow to movement in Net Debt.
Six Months Six Months Year
ended ended ended
January 31 January 31 July 31
2001 2000 2000
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
(Decrease)/increase in (233) 84 1,224
cash at bank and in hand
in the period
Cash inflow/(outflow)
from decrease in bank
account 815 222 (740)
Increase in cash for the
period
582 306 484
Cash outflow from bank (1,117) (700) (631)
loan
Net cash inflow under 27 37 148
hire purchase contracts
Changes in net funds from
cash flows
(508) (357) 1
Interest element of hire
purchase contract
payments 23 (15) (27)
Exchange movement (2) 11
Movement in net debt in (487) (372) (15)
the period
Net debt at period (593) (578) (578)
beginning
Net debt at period end (1,080) (950) (593)
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