BONH.L Regulatory News (BONH)

22 June 2022

Bonhill Group plc

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

Business Disposal & Trading Update

Bonhill Group plc (AIM: BONH), a leading B2B media business specialising in three key areas: Business Information, Events and Data & Analytics, announces the following update ahead of its Annual General Meeting due to be held later today:

Headlines

Trading Update

The Board expects Group revenues in H1 2022 to be up 9% on the same period last year although the return to live events (25 live events in H1 2022 vs. zero in the same period last year) does create some margin dilution (circa 5% pts) as outlined in the Company's 2021 Annual Report & Financial Statements.

In H1 2022, the Board expects the Group to report an estimated EBITDA loss of £1.3 million which is consistent with the comparative period last year; operating cost savings are fully offset by salary increases, the planned increase in National Insurance contributions and general inflation, especially in the UK.

Cash as at 30 June 2022 is expected to be approximately £1.0 million inclusive of the net proceeds of the fundraising which was completed in May 2022 (30 June 2021: £1.3 million).

As at 16 June 2022, the Group had secured 58 per cent. of its revenue target for the year ending 31 December 2022 which is broadly in line with the position at the same time in 2021.

Business Solutions & Governance

Following the management changes announced on 7 April 2022, the Board has conducted a review of the Group and its constituent businesses. As a result, the Board has resolved to dispose of the Company's BSG division and that the Company should focus purely on financial services which comprises the Investment News and Last Word businesses and which represented approximately 85 per cent. of the Group's audited turnover in the year ended 31 December 2021 ("FY 2021").

The BSG division comprises brands, including SmallBusiness.co.uk, GrowthBusiness.co.uk, Information-Age.com, and DiversityQ which includes the 'Women in…' events series.

In FY 2021, the BSG division reported revenues of approximately £2.4 million and EBITDA of £0.4 million. It currently employs approximately 20 staff. The division is being made available for sale in part or whole.

The Group has already received a number of unsolicited expressions of interest from third parties to acquire the division. Further announcements will be made as appropriate in due course.

Patrick Ponsford, Bonhill's Interim Group CEO, commented:

"After a slow start to the year, I'm pleased with the performance of the Group, which is in line with the Board's expectations, and look forward to a stronger second half. The proposed disposal of the Business Solutions & Governance division will enable us to focus solely on financial services and play to our strengths."

Jonathan Glasspool, Bonhill's Interim Executive Chairman, commented:

"We are excited by the opportunities and financial performance that the new streamlined business presents; a more focused business; less capital intensive; higher margins and less complex. We believe that shareholders will see significantly enhanced returns once the disposal is complete."

For further enquiries please contact:

Bonhill Group plc +44 (0)20 7250 7035

Jonathan Glasspool, Interim Executive Chairman

Shore Capital (Nominated Adviser and Broker) +44 (0)20 7408 4050

Tom Griffiths/David Coaten/Tom Knibbs

About Bonhill Group plc

Bonhill Group plc is a leading, AIM-quoted, B2B media company providing Business Information, Events and Data & Insight propositions to Financial Services, Diversity and Technology business communities in the US, UK, Pan Europe, Middle East and Asia. Bonhill operates multiple digital platforms, has market leading media brands, hosts over 100 events per annum, offers a portfolio of data & analytics propositions and provides a range of content marketing solutions.

Bonhill operates primarily in the financial services space where its brands and services are acknowledged as market leaders. It specialises in enhancing the relationship and flow of information between the global community of financial services providers and the advisers who recommend their products. Bonhill was early to recognise the growing importance of ESG in asset allocation and fund selection and now owns the leading global platform in this space, ESG Clarity, serving the adviser community.

Additionally, the business creates content, sales and marketing opportunities, networking events and lead generation opportunities for its audiences of entrepreneurs, business owners and managers, CTOs and technology leaders, asset and wealth managers, and professional women. 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.