Interim Results

RNS Number : 6239L

Bonhill Group PLC

14 September 2021

 

14 September 2021

Bonhill Group plc

("Bonhill", the "Company" or the "Group")

Interim Results for the Six Months Ended 30 June 2021

Bonhill Group Plc (AIM: BONH), a leading B2B media business specialising in three key areas: Business Information, Events and Data & Analytics, announces its unaudited interim results for the six months ended 30 June 2021.

Financial Highlights

·	Revenue down by 13% to £6.7m (H1 20: £7.8m)
·	Gross margin improved to 78.9% (H1 20: 77.8%)
·	EBITDA loss of £1.3m with no adjusting items (H1 20: adjusted loss of £1.7m)
·	Significantly reduced operating loss of £2.5m (H1 20: loss of £11.0m)
·	$1.3m (£0.9m) financial support from the second US Paycheck Protection Programme ("PPP2") (2020: $1.1m (£0.8m))
·	Cash balance at 30 June 2021 was £1.3m (30 June 20: £3.4m); £1.2m at 31 August 2021

Operational Highlights

·	The Group has recently completed a rebranding exercise to consolidate and define its identity as one brand, Bonhill, with two divisions: global Financial Services and Business Solutions
·	Successfully held 59 virtual events in the period with 35 live events planned globally for H2 2021 and another 36 virtual events
·	Strong performance from Financial Services Asia across all areas post-site relaunch and ESG offering
·	Hosted inaugural Global ESG Summit, with the United Nations Capital Development Fund, with over 1,000 attendees, streamed live globally and second global ESG event on COP26 sold out for December 2021
·	Business Solutions and Governance (BSG) performing well and 20% ahead of budget, driven by site relaunch and new platform for product development
·	Investment in technology driving marketing growth across all sites, a common global ESG platform and all upgrades delivering a consistent global site standard

Commenting on the outlook for the Group, Simon Stilwell, CEO of Bonhill, said:

"We have made an encouraging start to 2021 after the operational changes and cost savings delivered in 2020. With the easing of COVID-19 restrictions, and sponsor and delegate demand, we are confident that we will host a full agenda of both virtual and live events in H2 2021, driving business growth. Global ESG messaging has dominated our financial services business in the year to date and we have continued to invest and develop our proposition in response to this rapidly growing trend.

We entered the year in a stronger position following the dynamic adjustments made in 2020 in response to the pandemic. We are beginning to see the benefits of these changes and the improvements in technology and operational efficiency across the Group. The recent rebranding enables us to offer our broadest product set to our global audience and we continue to bring best practice across the Group, uniting our global teams whilst still successfully and efficiently working remotely.

"We are confident of achieving revenue growth of approximately 5% and to report EBITDA of approximately £1.2 million, excluding any Government support, in 2021. We are cautiously optimistic about H2 and the important fourth quarter and believe the promising start we have made to the year positions us well for future growth."

A presentation on the interim results for 2021 is available at the following link: https://bit.ly/Bonhill_H121_presentation

-ends-

For further enquiries please contact:

Bonhill Group plc	[phone]
Simon Stilwell, Chief Executive Officer Sarah Thompson, Chief Financial Officer
Shore Capital (Nominated Adviser and Joint Broker)	[phone]
Tom Griffiths/David Coaten (Corporate Advisory) Fiona Conroy (Corporate Broking)
Canaccord Genuity Limited (Joint Broker) Bobbie Hilliam Adam James Georgina McCooke	[phone]
Houston (PR Adviser)  Alexander Clelland	[phone]

About Bonhill Group plc

Bonhill Group plc is a leading, AIM-quoted, B2B media company providing Business Insight, Events and Data & Analytics propositions to Financial Services and business communities in 25 countries. Bonhill operates eleven information websites, publishes three regular print titles, hosts 130 events per annum, offers a portfolio of data & analytics propositions and provides a range of content marketing solutions.

The business creates content, sales and marketing opportunities, networking events and transactional opportunities for its audiences of entrepreneurs, business owners and managers, CTOs & technology leaders, asset & wealth managers, and professional women, in addition to its sponsors, advertising clients and customers. Flagship brands include: InvestmentNews, ESG Clarity Portfolio Adviser, Fund Selector Asia, What Investment, SmallBusiness.co.uk, GrowthBusiness.co.uk, Information Age, Women in… events series, and DiversityQ.

For more information visit  www.bonhillplc.com  

Chairman's Statement

Bonhill had a much more stable first half of 2021 despite the ongoing challenges of COVID-19. H1 revenue was down by 13% to £6.7m (2020: £7.8m) with an operating loss of £2.5m before impairment (2020: loss of £4.4m). The reduction in revenue reflected the lack of live events compared to 2020, but importantly the Company saw revenue growth in Q2 2021 on Q2 2020 which reflected comparable COVID-19 periods.

During the half, we saw the benefits of all the restructuring carried out in 2020 and have seen a significant reduction in our cost base which, alongside there being no adjusting items in the period under review, led to a greatly reduced loss.

The Company has continued to refine the business model and has recently rebranded and refocused its efforts within its sectors, so that we now have one global Financial Services offering in addition to Business Solutions. These changes reflect the continuing drive to develop long-term recurring revenues and, after a period of acquisition and restructuring, it is important that we have one global identity and can offer our broadest product set to our global client base.

As a Group, we continue to see a changing landscape in events. We have successfully delivered 59 virtual events in the first half which has helped to keep Group gross margins up at 79% (2020: 78%). We are planning on running 35 in person events in the second half of the year, of which the majority will be in the UK and Asia. There continues to be uncertainty around the return of in person events in the US and we are adjusting our schedule accordingly.

ESG remains the dominant theme across our business and is a significant contributor to new business in the period. I am delighted that by the end of this month we will have ESG Clarity operating on a single global platform and we continue to develop new products and activities around the subject, especially around significant events like COP26. I am also pleased that we have created our own internal ESG committee that I chair, which with full participation of the staff has resulted in a multi-year plan to help measure, monitor and improve our own internal ESG activities and with our broader stakeholder group.

In the first half, and subsequently, we have seen some changes to the composition of the Board. Neil Sachdev did not stand for re-election at the AGM and I was appointed in late May 2021 and, as separately announced today, Anne Donoghue has notified the Board of her intention to step down from her role as a non-executive director with effect from 30 September 2021 to undertake a full-time opportunity. A search for her replacement is underway and we will update as appropriate. I would like to take this opportunity to thank both Neil and Anne for their contributions and wish them well in their future endeavours.

Our staff have excelled themselves through their commitment and flexibility as they continue to navigate the ever-changing landscape. They continue to work successfully remotely and, with a new flexible working policy in place, we have seen some return to the new London office which opened in May 2021. I would finally like to thank our shareholders for their continued support and our broad customer base for their continued support and engagement.

Jonathan Glasspool

Chairman

Chief Executive's Report

Introduction

Despite the turbulent market conditions of 2020, Bonhill Group has emerged in a position of strength and we are focused on making 2021 a year of delivery. Our robust operating model demonstrates our ability to respond effectively to the challenges of the pandemic and we continue to improve our customer proposition and to refine our business model and brands/titles to meet the needs of the evolving marketplace.

However, the impact of COVID-19 continues to be felt in our events business, with the continued restrictions in H1 2021 preventing the hosting of any live events in all regions (H1 2020: 16). As a consequence, H1 revenues are slightly lower than for the comparable period in 2020, as announced at the Company's Annual General Meeting on 27 May 2021. However, the Q2 2021 like-for-like revenues were 9 per cent. ahead of the comparable period in 2020 which gives a better indication of the impact of the restructuring made in 2020. Consequently, EBITDA loss in H1 2021 is 24 per cent. lower than in the comparable period in 2020.

Additionally, the H1 2021 loss before taxation is significantly reduced compared to H1 2020, reflecting the substantial cost saving initiatives taken in 2020.  There were also no adjusting items or goodwill impairment undertaken in the period.

We also participated in the US Small Business Administration's second Paycheck Protection Program ('PPP2') which is part of the Coronavirus Aid Relief and Economic Security Act ('CARES Act') and received loans totalling $1.3 million (£0.9 million) in March 2021. As was the case with the first PPP loan of $1.1 million received by the Group in May 2020 ("PPP1"), the PPP2 loan, or a portion of the loan, may be forgivable if the proceeds of the loan are used for eligible purposes, including employee retention and payroll. As announced on 5 January 2021, the PPP1 loan was forgiven in full. The Board currently expects that, based on prior experience, a significant proportion of the PPP2 loan will be eligible for forgiveness later this year and the forgiveness application process has started. A further announcement will be made as appropriate.

The final payment due to Crain Communications under the vendor loan agreement entered into in August 2018 as part of the consideration payable for the Company's acquisition of InvestmentNews was made in August 2021 which completes all of the post-acquisition commitments.

We were delighted to welcome our new Chairman, Jonathan Glasspool to the Group during the period. Jonathan's appointment was announced on 13 April 2021 and he was appointed as Non-executive Chairman on 28 May 2021 replacing Neil Sachdev, who did not stand for re-election at the Company's Annual General Meeting on 27 May 2021. I would like to thank Neil for his support and commitment to the business over the past three years and, in particular, during the early turbulent months of the pandemic.

We enter the second half of 2021 with confidence and cautious optimism. The easing of restrictions in the UK following the progress in combatting the COVID-19 pandemic will benefit our Events business and, whilst we still see restrictions in the US, we are planning some live events there in certain states. The operational improvements to all our businesses continue, reflecting an evolving market, and we continue to be a partner of choice for global asset managers in promoting ESG related activities. This key theme and a strong appetite for our products and services are expected to stand us in good stead for future growth.

Bonhill - Be Informed

The Group undertook a rebranding exercise to consolidate and define its identity following a period of acquisition and integration as one global brand with two divisions - Bonhill Financial Services and Bonhill Business Solutions and Governance.  This launch not only features a new visual identity, but also a simplification of the Group structure and a new offering across our global financial services business. The last three years have seen the unification of three businesses and, having worked harder and closer together during the pandemic, it seems right to now formalise that global collaboration and emerge from these challenging conditions as a more defined entity.

We are looking to achieve three things with this rebranding:

· First, to make our broadest possible offering available to our global client base;

· Secondly, to deliver the highest level of service and experience to our clients; and

· Thirdly, to establish an inclusive, open-minded working environment creating a true platform for opportunity. 

In addition to this external rebranding, we have streamlined the Company structure with the closure of the Growth Company Investor and Information Age statutory companies (Information Age continues as a brand under Business Solutions).

Business Solutions and Governance (BSG)

Our BSG division saw a strong media performance in the first half, up 20% on the comparable period in 2020 and, despite a modest post-pandemic tail off in site traffic, it continues to perform ahead of budget. While the overall flat performance year on year reflects the lack of live event activity in the first half, that revenue has been replaced with either virtual events or new revenue streams. The relaunch of the core smallbusiness.co.uk site, which commenced in July 2021, is designed to provide a better user experience and a platform with enhanced features and speed and a base for product development, including a new lead generation product. Early trials of this product set are encouraging.

There has been a focus on marketing and our extensive data base in H1 21. This exercise included data de-duplication, enhancement and cleansing all divisional data. The result has seen a 20% increase in the 'Women In …' database and a 12% increase in the Small Business database and growth in the What Investment subscription base.

The outlook in H2 2021 for the division is positive with two key live events from DiversityQ being held at the end of the year and the continued development of products in the core Small Business arena.

Financial Services

Last Word Media traded well, with the small decline in revenues attributed to the lack of live events compared to the prior year. The 2020 restructuring has resulted in EBITDA contribution levels reaching double those at the time of its acquisition by the Company in 2019.  ESG Clarity has been the stand-out performer alongside Last Word Create, both of which are now being sold globally. Asia has seen a strong performance across media and events after a difficult couple of years and it has been a key contributor to our global ESG series.

Live event activity is expected to restart in H2 2021, specifically from September in the UK and Asia, subject to the continued easing of COVID-19 restrictions.

InvestmentNews, had a weaker first half where digital sales have been slower than in the comparable period in 2020. The period was impacted by a shift in market messaging by customers following the election of President Biden and US financial advice firms reducing advertising budget to rebuild profitability while there was some disruption from M&A activity. However, new initiatives are in place and the recent rebranding is specifically designed to enable all group products to be sold to the key US market. This broadening of the product set to include more ESG related activity will sit alongside existing developments in Fintech and a new Investment Strategy offering.

Print revenue remained relatively strong in the first half, up 10% on the same period in 2020. We were delighted that InvestmentNews won a prestigious Neal Award for business journalism, considered the highest editorial honour in the field of business-to-business journalism in the US. In addition, InvestmentNews was a finalist in five other categories , including best media brand/overall editorial excellence and best COVID-19 industry coverage.

The in person event market in the US continues to be impacted by Covid 19 and the rise of the delta variant in country. This backdrop has necessitated some recent event changes from in person back to virtual and we are constantly assessing the situation on a state by state basis.

The US financial advice market still holds enormous potential for the Group and the work we have done on global collaboration, leading to becoming one global financial services offering, should allow us to target a broader audience with our content and data led strategy.

ESG

We continue to see sustained interest in ESG-related topics from customers across the Group. ESG-related activity has dominated H1 2021 and the Board expects that direct ESG activity is likely to contribute in the region of 30 per cent. of the Group's revenues this financial year. It has been particularly strong in the UK and Asia and is building momentum in the US. We have seen continued growth of our core brand, ESG Clarity, which is currently operating regionally and will move onto one global platform in late September 2021. Our wider group ESG platform includes ESG Clarity, our 'Women In…' series, DiversityQ, InvestmentNews' Women Adviser Summit series, Diversity, Equity and Inclusion awards and the US Sustainable Development Goals podcast series and Bonhill Intelligence, our research business. In addition, Bonhill Create, our content marketing business has co-ordinated our two global ESG events being held in conjunction with the United Nations.

We were very pleased to host our inaugural Global ESG Summit, in partnership with the United Nations Capital Development Fund, a flagship event for the Group, that further establishes our credentials in this area of critical importance to our customer base.  The event had over 1,000 registered attendees and was streamed live across Asia, the UK, Europe and the US. Our second global ESG event will be the COP 26 event in December 2021 which is already sold out.

We have plans for continued growth in this area, utilising our deep subject knowledge, audience reach and innovative solutions to highlight fund group credentials and providing key data and information to all parts of the investment community.

Internal ESG Committee

Reflecting the importance of ESG to the Group, in the first half, we convened an internal ESG committee, involving 32 employees from across the business to look at the three strands. This team has created a multi-year project to assess, monitor, set benchmarks and measure progress in key areas. This will be reported on more fully in the Company's annual report and accounts starting with those for the year ending 31 December 2021.

Events  

In the absence of live events, we have successfully held 59 virtual events in the first half of this year continually evolving our formats in response to feedback and successes. However, a total of 35 live events are planned for H2 2021 in the UK, Asia and US, reflecting the easing of restrictions and strong sponsor and delegate support. We will continue to operate a hybrid model, adopting the event platform best suited to the topic, size and audience geography of the event.

Highlights include a successful 'Women In…' Summit series following on from last year's two-day virtual format, with new innovations and features. I am particularly pleased with our work in Diversity, Equity and Inclusion, and, alongside other events held during the first half, on one day in June 2021 we hosted the Women in IT London Summit,  a 'Women on Boards Summit, DiversityQ-led, an Active Mentorships training programme webinar and InvestmentNews hosted Women Advisor Summit symbolising a broad selection of formats addressing different demographics and segments of the business community.

The continued migration of existing brands into new territories continues with our 'Spotlight On' series, which originated in Asia and is now live in the UK and the US, combining content creation, distribution, and live panel discussions across both Global Investment strategies and more recently Fintech.

Operations

The Bonhill Group is also creating efficiencies and costs savings through the development of group central services, across technology, finance, HR and Ad Operations, with production and marketing planned as next steps.

The successful completion of the UK office move will also result in significant cash benefits starting in H2 2021 and the US office lease renegotiation which took place in early 2021 also delivered cost and cash savings with a six-month rent-free period. We believe that we have the right mix of space and flexibility to support our flexible working policy.

Our People

Our people and the values the company espouses are paramount to our success. They have been fundamental to the development of the Group's recent re-brand, which is a true reflection of the evolved culture and operational style of Bonhill. We are grateful for the commitment of our employees during the pandemic and our ongoing response to the challenges it presents has been successful largely due to their positive approach and determination. Remote working has been a success and we have recently implemented a flexible working policy to continue this and better support the wellbeing of all of our employees. Our working practices will continue to be shaped across all regions by the continuous engagement with our people and an assessment of the changing work environment to ensure we maintain the balance between meeting the needs of our clients and the safety of our employees.

This is complemented by initiatives on staff retention, enhanced benefits and additional training, as well as the Bonhill Allstars employee recognition programme. We have not furloughed any employees in 2021.

The wellbeing of our employees is critical to the success of the Group and we have now implemented our own team of trained Mental Health First Aiders, run five days of awareness during Mental Health Week, provided wellbeing talks and training and support to ensure our employees are fully supported in their working lives and beyond. We have extensively surveyed our employees to ensure that we are alive to any changes in circumstances, trends or feelings even when they are working remotely.

Technology

Our historic investment in creating a global technology platform is paying dividends with the creation of a global data lake, global ESG platform and global website standards. In addition, we continue to invest in Search Engine Optimisation (SEO) and Data & Analytics to further improve our audience knowledge and propositions.

We are making continual improvements to online advertising formats, reducing invalid traffic for better client campaign success as well as creating customer personas through data enrichment to provide a better customer experience, more accurate marketing, and new sales opportunities.

This greater customer insight has been enhanced with the first phase of the implementation of our global data lake to store all our key data elements and support improved analytics and reporting.

The release of our first major website using our global framework has also improved website performance, allowed new features to be deployed faster, and reduced the total cost of ownership.

Dividend

In light of the prevailing operating environment, and the Company's financial situation, the decision was taken not to recommend the payment of a final dividend for the year ended 31 December 2020 and we are not proposing the payment of an interim dividend for the six months ended 30 June 2021. It is very much the Board's intention that the Company should return to paying a dividend when it is appropriate to do so.

Outlook

Our aim in 2021 is to have a year of delivery following the challenges of 2019 and 2020 and we believe that we are well placed to do so. The actions of 2020 and more recently have resulted in a new streamlined brand and offering, improved operations, business efficiencies and a digital-first product set. In light of the current operating environment, which has seen a protracted period of virtual events, the Board now expects revenue growth of approximately 5% and EBITDA of approximately £1.2 million, excluding any Government support, in 2021. We are cautiously optimistic about H2 and the important fourth quarter and believe the promising start we have made to the year positions us well for future growth.

 The Board does not anticipate there being any adjusting items this year. The end of the Crain loan repayments, improvements in working capital management and strong cash conversion from the seasonally stronger second half should see a further strengthening of the Company's balance sheet by the year end 2021.

Simon Stilwell

Chief Executive Officer

 

Financial Highlights

-  Revenue down by 13% to £6.7m (H1 20: £7.8m)

-  Gross margin improved to 78.9% (H1 20: 77.8%)

-  Adjusted EBITDA loss of £1.3m (H1 20: adjusted loss of £1.7m)

-  Significantly reduced operating loss of £2.5m (H1 20: loss of £11.0m)

-  $1.3m (£0.9m) financial support from the second US Paycheck Protection Programme ("PPP2") (2020:$1.1m (£0.8m))

-  Cash balance at 30 June 2021 was £1.3m (30 June 20: £3.4m); £1.2m at 31 August 2021

Financial Review

Key Financials (£'000s)	6 months to 30 Jun 2021	6 months to 30 Jun 2020	Change £	Change %
	(unaudited)	(unaudited)
Revenue	6,744	7,760	(1,016)	(13)%
Gross Profit	5,318	6,036	(718)	(12)%
Gross Margin	78.9%	77.8%	N/A	1%
Adjusted EBITDA	(1,303)	(1,704)	401	24%
Adjusted operating profit/(loss)	(2,467)	(8,739)	6,272	72%
Statutory operating profit/(loss)	(2,467)	(10,995)	8,529	78%
Cash	1,288	3,446	(2,158)	(63)%
Adjusted basic earnings/(loss) per share	(2.33)p	(11.68)p
Statutory basic earnings/(loss) per share	(2.33)p	(15.13)p

Revenue and gross margin 

Revenue reduced half-on-half by approximately £1.0m (-13%) to £6.7m. However, the data is somewhat skewed by the first part of Q1 2020 being pre-COVID-19 restrictions, and thereby including the benefit of some of our largest live events. As has been commented, the Company has made a very successful transition to virtual events in the last 12 to 15 months, but there has been a reduction in revenue as a result. If we directly compare Q2 2020 and Q2 2021, both being 'COVID quarters', we actually see an increase in revenue of 9%. Additionally, while gross profit in the first half of 2021 has reduced by £0.7m (-12%) to £5.4m, the gross margin % has increased marginally from 77.8% to 78.9%. This is primarily driven by the conversion of events to virtual format, but also from a reduction in print costs and supplier synergies.

Revenue (£'000s)	6 months to 30 Jun 2021	6 months to 30 Jun 2020
	(unaudited)	(unaudited)	Change %
Revenue Q1	3,105	4,432	(30)%
Revenue Q2	3,639	3,328	9%
Total revenue H1	6,744	7,760	(13)%

By focussing specifically on Q2, this gives a better indication of business performance and its slow recovery from the impact of COVID-19 in 2020.

Revenue - Q2 focus (£'000s)	3 months to 30 Jun 2021	3 months to 30 Jun 2020
	(unaudited)	(unaudited)	Change %
Business information	2,643	2,745	(4)%
Events	877	236	272%
Data & Insight	119	345	(66)%
Total revenue Q2	3,639	3,326	9%

Business Information revenue reduced Q2-on-Q2 by 4% to £2.6m, but within this print revenue increased by 15% to £0.6m, while digital revenue decreased by 8% to £2.0m. This reduction in digital revenue is predominantly driven by customer demand in the US, whereby economic and political uncertainty have meant many key clients have rephased their digital spend with us to the second half of the year, once they have confirmed their internal marketing messages. As would be expected, events revenue has significantly increased since last year as we continue to deliver high quality virtual events. Data and Insight is down and again and is expected to come back in H2 2021 as customers re-phase their spend.

Revenue splits by proposition and business unit for the half are as follows:

Revenue (£'000s)	6 months to 30 Jun 2021	6 months to 30 Jun 2020
	(unaudited)	(unaudited)	Change %
Business information	4,922	5,345	(15)%
Events	1,454	1,779	(18)%
Data & Insight	368	636	(42)%
Total	6,744	7,760	(13)%

Revenue (£'000s)	6 months to 30 Jun 2021	6 months to 30 Jun 2020
	(unaudited)	(unaudited)	Change %
Business Solutions and Governance	1,220	1,211	0%
Last Word Media	2,392	2,722	(12)%
InvestmentNews	3,132	3,827	(18)%
Total	6,744	7,760	(13)%

Operating costs (excl. depreciation, amortisation, lease payments under IFRS16 and share based payments) 

When comparing H1 2020 to H1 2021, it is clear to see the positive financial impact of the Company restructuring carried out last year, improved cost control processes, systems integration and improvements and reduction in discretionary spend. The overall reduction in costs for comparison is £2.6m or 28%, with £0.7m derived from savings in staff costs and £0.2m from reduction in IT costs.

Much has been done since the start of 2020 to mid-2021 to not only right-size the cost base, but also to move to a more streamlined employee structure across the Group, enabling Global roles and synergies where possible.  Headcount at 30 June 2021 was 137 (2020: 152), and there is roughly an even split of heads between Bonhill (incl. BSG and central heads), LWM and IN.

	6 months to 30 Jun 2021	6 months to 30 Jun 2020	Change £	Change %
(£'000s)	(unaudited)	(unaudited)
Staff Costs	5,704	6,417	(713)	(11)%
IT	260	496	(236)	(48)%
Legal & Professional	216	302	(86)	(28)%
T&E	11	105	(94)	(90)%
Office costs (excl. IFRS 16 rent)	130	187	(57)	(30)%
Other costs	300	219	81	37%
Total operating costs excl. adjusting items	6,621	7,726	(1,105)	(14)%
Adjusting items	0	1,491	(1,491)	(100)%
Total operating costs	6,621	9,217	(2,596)	(28)%

The majority of the savings relating to office costs are processed below EBITDA as lease amortisation is not included here. Other costs include the impact of varying foreign exchange rates upon translation and provisions for doubtful debts. 

 Cash and net debt 

The impact of 2020 on cash has been felt throughout the first half of 2021. Due to much of the Q4 2020 revenue being driven by deferred revenue, not cash, the bank balance coming into 2021 was low (£1.3m). As has been described above, Q1 historically has always been a slow quarter for customer demand and 2021 was no different, so the continued strict management of working capital was vital. Our cash collections processes are strong as we have successfully been able to convert high percentages of our debtor ledger each month into cash, driving an overall positive working capital movement in the half of £1.2m (2020: £3.1m).

In order to help bolster our cash balance over and above working capital management, we undertook the following actions and government aid: 

-  In February 2021 the Company successfully claimed back £0.2m in R&D tax credits relating to 2019, which was received as cash.

-  In March 2021, the Company received £0.9m under the second US Paycheck Protection Programme ("PPP2") loan (which is expected to be fully forgiven later in 2021).

-  New property leases were negotiated on both the US and UK offices. The US lease included a 6-month rent free period equating to $0.2m, and the UK office (while not materially affecting H1) will materially reduce the annualised spend on the office by £0.4m.

-  An internal recruitment freeze was implemented for the whole of Q1 2021, saving £0.1m in staff costs.

Despite the difficult environment, we are pleased to report the following positive updates on government aid and borrowings:

-  The final payment of the deferred Q1 2020 VAT balance was made on 1 July, 2021. All 2020 balances have now been fully repaid to HMRC.

-  We have not had any employees on furlough in 2021 and we only received a £2k furlough receipt relating to December 2020.

-  As set out above, we made the final payment on the vendor loan in August 2021 after which there will be circa £0.1m of debt on the balance sheet relating to UK Bounceback loans received in 2020

All of these actions resulted in a cash balance at 30 June 2021 of £1.3m (2020: £3.4m). 

At the half year end, we had a net debt position of £2.5m, including IFRS16 lease liabilities. This reflects the two new office leases in New York and in London, as well as there being only two payments left on the vendor loan, plus the second US PPP loan that is expected to be fully forgiven in 2021.

Net Debt (£'000s)	30 Jun 2021	30 Jun 2020	31 Dec 2020
	(unaudited)	(unaudited)	(audited)
Cash	1,288	3,446	1,343
Borrowings	(1,269)	(2,888)	(1,060)
Lease liabilities under IFRS16	(2,558)	(1,191)	(184)
Net cash/(debt)	(2,539)	(633)	99

Principal risks and COVID-19

The directors do not consider that the principal risks and uncertainties described in the Company's annual report for the year ended 31 December 2020 have changed. A detailed explanation of the risks, including those related to COVID-19, and how the Group seeks to mitigate the risks, can be found on pages 38 to 41 of the Company's annual report which is available at www.bonhillplc.com.

Sarah Thompson

Chief Financial Officer

 

Consolidated statement of comprehensive income (unaudited)

for the six months ended 30 June 2021

		6 months ended 30 Jun 2021 £'000	6 months ended 30 Jun 2020 £'000	Year ended  31 Dec 2020 £'000
Revenue		6,744	7,760	17,812
Cost of sales		(1,426)	(1,724)	(3,478)
Gross Profit		(5,318)	6,036	14,334
Operating Costs		(6,621)	(7,740)	(14,478)
Adjusted EBITDA		(1,303)	(1,704)	(146)
Depreciation		(65)	(73)	(153)
Amortisation and impairment		(1,035)	(7,041)	(8,062)
Share-based payments		(64)	79	18
Adjusting items		-	(2,256)	(2,322)
Net operating profit/(loss)		(2,467)	(10,995)	(10,665)
Finance costs		(117)	(146)	(211)
Profit/(loss) before tax		(2,584)	(11,141)	(10,876)
Tax		292	1,232	(3)
Profit/(loss) for the period		(2,292)	(9,909)	(10,879)
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translating foreign operations		(229)	954	(251)
Total comprehensive income/(loss) for the year		(2,521)	(8,955)	(11,130)
Basic loss per share		(2.33)p	(15.13)p	(13.24)p

 

Consolidated statement of financial position (unaudited)

as at 30 June 2021

		30 Jun 2021 £'000	30 Jun 2020 £'000	31 Dec 2020 £'000
Non-current assets
Goodwill		10,624	11,525	10,760
Other intangible assets		7,835	9,887	8,622
Property, plant and equipment		153	268	190
Deferred tax asset		360	1,238	315
Right-of-use asset		2,421	1,107	158
		21,393	24,025	20,045
Current assets
Trade and other receivables		3,437	7,173	4,596
Cash and cash equivalents		1,288	3,446	1,343
		4,725	10,620	5,939
Total assets		26,118	34,645	25,984
Non-current liabilities
Deferred tax liability		(402)	-	(426)
Borrowings		(50)	(278)	(50)
Lease financial liability		(1,932)	(322)	-
		(2,384)	(600)	(476)
Current liabilities
Trade and other payables		(3,469)	(7,525)	(3,354)
Borrowings		(1,219)	(2,610)	(1,010)
Lease financial liability		(626)	(869)	(184)
Current tax liability		-	(17)	-
		(5,313)	(11,021)	(4,548)
Total liabilities		(7,697)	(11,621)	(5,024)
Net assets		18,421	23,024	20,960
Equity
Share capital		986	986	986
Share premium account		1,759	1,759	1,759
Share-based payment reserve		305	147	245
Merger reserve		1,976	1,976	1,976
Other reserves		104	104	104
Retained earnings		14,192	17,519	16,562
Foreign exchange reserve		(901)	533	(672)
Total equity attributable to owners of the parent		18,421	23,024	20,960

The financial statements were approved and authorised to issue by the Board and signed on its behalf on 13th September 2021.

Sarah Thompson

Chief Financial Officer

13 September 2021

 

Consolidated statement of changes in equity (unaudited)

for the six months ended 30 June 2021

	Share capital £'000	Share premium £'000	Share- based payment reserve £'000	Merger reserve £'000	Other reserves £'000	Retained earnings £'000	Foreign exchange reserve £'000	Total £'000
Balance as at 1 January 2020	486	-	217	1,976	104	27,429	(421)	29,791
Loss for the period	-	-	-	-	-	(9,909)	-	(9,909)
Other comprehensive income	-	-	-	-	-	-	954	954
Total comprehensive loss for the period	-	-	-	-	-	(9,909)	954	(8,955)
Transactions with owners in their capacity as owners:
Issue of share capital	500	1,759	-	-	-	-	-	2,259
Share option charge	-	-	(70)	-	-	-	-	(70)
Balance as at 30 June 2020	986	1,759	147	1,976	104	17,519	533	23,024
Loss for the period	-	-	-	-	-	(970)	-	(970)
Other comprehensive income	-	-	-	-	-	-	(1,205)	(1,205)
Total comprehensive loss for the year	-	-	-	-	-	(970)	(1,205)	(2,175)
Transactions with owners in their capacity as owners:
Share option charge	-	-	98	-	-	-	-	98
Other movements	-	-	-	-	-	13	-	13
Balance as at 31 December 2020	986	1,759	245	1,976	104	16,562	(672)	20,960
Loss for the period	-	-	-	-	-	(2,292)	-	(2,292)
Other comprehensive income	-	-	-	-	-	-	(229)	(229)
Total comprehensive loss for the year	-	-	-	-	-	(2,2927)	(229)	(2,522)
Transactions with owners in their capacity as owners:
Share option charge	-	-	61	-	-	-	-	61
Other movements	-	-	-	-	-	(78)	-	(78)
Balance as at 30 June 2021	986	1,759	306	1,976	104	14,192	(901)	18,421

 

Consolidated statement of cash flows (unaudited)

for the six months ended 30 June 2021

	6 months ended 30 June 2021 £'000	6 months ended 30 June 2020 £'000
Cash generated/(used in) operations	(108)	1,352
Interest paid	(78)	(146)
Taxation paid	197	-
M&A costs	-	-
Integration costs	-	(1,455)
Restructuring costs	-	-
Net cash generated/ (used) in operating activities	12	(249)
Investing activities
Purchases of property, plant and equipment	(36)	(28)
Purchases of intangible assets	(24)	(143)
Net cash paid for acquisition	-	-
Net cash used in investing activities	(60)	(171)
Financing activities
Proceeds from issue of ordinary shares	-	2,259
Repayment of borrowings	(741)	(816)
Lease repayments	(210)	(449)
Government C-19 funding received	970	939
Dividends paid	-	-
Net cash generated from financing activities	19	1,933
Foreign exchange movement	(25)	42
Net increase/(decrease) in cash and cash equivalents	(55)	1,555
Cash and cash equivalents at the beginning of the period	1,343	1,891
Cash and cash equivalents at the end of the period	1,288	3,446

The Group consists of entities with functional currencies of GBP, USD, SGD and HKD.

Notes to the cash flow statement

	6 months ended 30 Jun 2021 £'000	6 months ended 30 Jun 2020 £'000
Loss after tax	(2,292)	(11,141)
Adjustments for:
Tax	(292)	-
Finance costs	117	146
Amortisation and impairment	1,035	7,041
Depreciation of property, plant and equipment	65	73
Share-based payment charge	64	(79)
Adjusting items	-	2,256
Operating cash flows before movements in working capital	(1,303)	(1,704)
Movement in receivables	1,073	1,249
Movement in payables	123	1,807
Cash flows generated/(used) in operations	(108)	1,352

 

Notes to the accounts

1. General information

The financial information set out above does not constitute the Company's statutory accounts for the 6-month period ended 30 June 2021 or the 6-month period ended 30 June 2020. Statutory accounts for the year ended 31 December 2020 have been reported on by the Independent Auditor. The Independent Auditor's Report on the Annual Report and Financial Statements for the year ended 31 December 2020 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.  Statutory accounts for the year ended 31 December 2020 have been filed with the Registrar of Companies.

2. Accounting policies

Basis of preparation

The financial information presented in this announcement has been prepared in accordance with the recognition and measurement requirements of EU Endorsed International Financial Reporting Standards and IFRIC interpretations ("IFRS") and the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention.

The principal accounting policies adopted in the preparation of the financial information in this announcement are unchanged from those used in the Company's financial statements for the year ended 31 December 2020 and are consistent with those that the Company is expected to adopt in the preparation of its financial statements for the year ending 31 December 2021.

Going concern

The directors are satisfied that the Group has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly, they continue to adopt the going concern basis in preparing the condensed financial statements.

3. Revenue and segmental analysis

For executive management purposes, the business has three reportable segments being the Bonhill UK business, which comprises Governance and Business Solutions, the InvestmentNews business and the Last Word Media business. Further analysis of revenue has been performed by core proposition and country.

	6 months ended 30 Jun 2021	6 months ended 30 Jun 2020
	£'000	£'000
Analysis of revenue by core propositions
Business information	4,922	5,345
Live Events	1,454	1,779
Data and Insight	368	636
Total	6,744	7,760

	6 months ended 30 Jun 2021	6 months ended 30 Jun 2020
Analysis by country	£'000	£'000
United Kingdom	3,087	3,380
United States	3,132	3,825
Europe	-	108
Asia	525	447
Total	6,744	7,760

 

6 months ended 30 June 2021	Bonhill UK	InvestmentNews	Last Word Media	Total
	Unaudited	Unaudited	Unaudited	Unaudited
	£'000	£'000	£'000	£'000
Reportable segmental income statement
Revenue	1,220	3,132	2,392	6,744
Gross profit	849	2,415	2,054	4,743
Operating profit/ (loss)	(1,893)	(866)	292	(2,467)
Profit/ (loss) before tax	(1,332)	(1,344)	290	(2,584)
6 months ended 30 June 2020	Bonhill UK	InvestmentNews	Last Word Media	Total
	Unaudited	Unaudited	Unaudited	Unaudited
	£'000	£'000	£'000	£'000
Reportable segmental income statement
Revenue	1,211	3,827	2,722	7,760
Gross profit	816	3,171	2,049	6,036
Operating profit /(loss)	(2,052)	(1,442)	(908)	(4,403)
Profit/(loss) before tax	(1,653)	(1,977)	(918)	(4,549)

4. Earnings per share

Basic earnings per share is calculated by dividing the loss attributable to owners of the parent by the weighted average number of ordinary shares in issue during the period.

Based on statutory earnings	6 months ended 30 Jun 2021	6 months ended 30 Jun 2020
	£'000	£'000
Loss attributable to owners of the parent	(2,367)	(9,909)
Weighted average number of ordinary shares in issue	98,585,692	65,513,564
Basic loss per share (pence per share)	(2.40p)	(15.13p)

5. Share capital

Issued and fully paid ordinary share of 1p each

	Number	£'000
As at 31 December 2019	48,585,692	486
Shares issued during the 6 month period	50,000,000	500
As at 30 June 2020	98,585,692	986
Shares issued during the 6 month period	-	-
As at 31 December 2020	98,585,692	986
Shares issued during the 6 month period	-	-
As at 30 June 2021	98,585,692	986

Share capital as at 30 June 2021 amounted to £1.0 million. No shares were issued during the period.

 

6. Lease

The Group recognises a right-of-use asset and lease liability under IFRS 16.

Right-of-use asset	£'000
Carrying value as at 30 June 2020	1,107
Additions to right-of-use assets	(2)
Amortisation charged	(395)
Termination of leases	(508)
Foreign exchange impact of revaluation	(44)
Carrying value as at 31 December 2020	158
Additions to right-of-use assets	2,647
Amortisation charged	(345)
Foreign exchange impact of revaluation	(40)
Carrying value as at 30 June 2021	2,421
Lease liability	£'000
Carrying value as at 30 June 2020	1,190
Additions to lease liability	2
Interest charged/(written back)	(25)
Repayments made	(439)
Termination of leases	(508)
Foreign exchange impact of revaluation	(36)
Carrying value as at 31 December 2020	184
Additions to lease liability	2,582
Interest charged	44
Repayments made	(216)
Foreign exchange impact of revaluation	(36)
Carrying value as at 30 June 2021	2,558

On 2 January 2021, the Group entered into a new lease for the New York office for InvestmentNews. The transfer of the original lease from the previous parent company, Crain, to one that is held directly with the landlord of the building was a requirement of the Transitional Services Agreement. The lease had been agreed for 8 years and as such a right of use asset of £2.0m and a financial lease liability of £2.0m were recognised at this point.

On 16^th May 2021, the Group extended its lease on the Hong Kong office for another 2 years at a 15% reduction in cost. The lease has been signed for 2 years until May 2023 and as such a right of use asset of £0.1m and a financial lease liability of £0.1m were recognised at this point.

On 17^th May 2021, the Group entered into a lease for the new UK office, based in London. The lease is until December 2022 and as such a right of use asset of £0.5m and a financial lease liability of £0.5m were recognised at this point.

7. Availability

Further copies of this announcement are available on the Company's website, www.bonhillplc.com. 

 

END

 

 

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