12 Nov 2014 07:00
12 November 2014 |
Dods (Group) PLC
Interim Results for the six months ended 30 September 2014
Financial Highlights
• Revenues £8.4m (2013: £9.3m) decrease of 9.3%.
• Gross Profit £2.1m (2013: £2.0m).
• Gross profit margin increased from 22.0% to 24.8%.
• Loss before tax £1.2m (2013: £1.1m).
• Adjusted EBITDA loss of £54,000 (2013: profit £28,000).
Operational Highlights
• Continued growth of information and intelligence products.
• All UK Monitoring customers have been migrated to the new technology platform.
• Through the Government's new event framework agreement we were awarded the annual National Health Service Expo.
Cheryl Jones, Chairman of Dods (Group) PLC, commented:
"The Group's interim results reflect trading in line with management's expectations. The Group's priorities include; to reposition Dods' 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. We will keep our shareholders and the wider market appropriately updated to these transformational plans."
For further information, please contact:
Cenkos
Nicholas Wells 020 7397 8920
Business Review
The first half of the financial year saw group revenues reduced by 9.3% from £9.3 million to £8.4 million. The corresponding improved margins, from 22% to 24.8%, reflect early progress made in focussing on quality revenues.
Much of this focus was on our events portfolio with a planned re-modelling of Civil Service Live seeing revenues reduced by £0.4m. Further planned reductions in our events portfolio were seen across both our Westminster and Brussels operations. The impact of the referendum in Scotland saw revenues from the Holyrood business decline by £0.2m
Continued emphasis on recurring digital subscriptions saw revenues increase across our UK and EU monitoring businesses by 8.5% and 16.6% respectively. All our UK monitoring clients have now been migrated over to the new platform and all new trials of our service is based on this new technology. We are receiving positive feedback on these trials and will benefit from improved service levels to our customers.
I am pleased to announce we were one of 15 companies to be placed on the Government's framework for the awarding of events on behalf of Government. Our first submission on the framework resulted in us being appointed to run the NHS's Expo on a three year contract. This is a commercial opportunity where the economic benefit and risk resides with the Company. We believe this will be a long term success for us.
Outlook
We continue to be in a period of transition but are seeing the benefits of our early initiatives. We are currently trading in line with management's expectations.
Martin Beck
Chief Executive Director
DODS (GROUP) PLC | ||||
CONSOLIDATED INCOME STATEMENT |
For the six | For the six | For the year | |||||||||||
months ended | months ended | ended | |||||||||||
30 September | 30 September | 31 March | |||||||||||
2014 | 2013 | 2014 | |||||||||||
Unaudited | Unaudited | Audited | |||||||||||
Note | £'000 | £'000 | £'000 | ||||||||||
Revenue | 3 | 8,442 | 9,332 | 19,775 | |||||||||
Cost of sales | (6,352) | (7,283) | (13,934) | ||||||||||
Gross profit | 2,090 | 2,049 | 5,841 | ||||||||||
Administrative expenses: | |||||||||||||
Non-trading items | 4 | (75) | (89) | (485) | |||||||||
Amortisation of intangible assets and assets acquired |
| ||||||||||||
through business combinations | (418) | (514) | (1,026) | ||||||||||
Amortisation of intangible assets | (578) | (375) | (803) | ||||||||||
Depreciation | (58) | (114) | (225) | ||||||||||
Net administrative expenses | (2,144) | (2,021) | (4,754) | ||||||||||
Total administrative expenses | (3,273) | (3,113) | (7,293) | ||||||||||
Operating loss | (1,183) | (1,064) | (1,452) | ||||||||||
Finance income | 17 | 7 | 11 | ||||||||||
Financing costs | (17) | - | (47) | ||||||||||
Loss before tax | (1,183) | (1,057) | (1,488) | ||||||||||
Income tax credit | 5 | 76 | 120 | 199 | |||||||||
Loss for the period | (1,107) | (937) | (1,289) | ||||||||||
Loss per share | |||||||||||||
Basic | 6 | (0.33 p) | (0.34 p) | (0.38 p) | |||||||||
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| |||||||
For the six | For the six | For the year |
| |||||
months ended | months ended | months ended |
| |||||
30 September | 30 September | 31 March |
| |||||
2014 | 2013 | 2013 |
| |||||
Unaudited | Unaudited | Audited |
| |||||
£'000 | £'000 | £'000 |
| |||||
| ||||||||
Loss for the period | (1,107) | (937) | (1,289) |
| ||||
| ||||||||
Items that will be subsequently reclassified to profit and loss |
| |||||||
Exchange differences recognised on disposal of discontinued operations | (7) | (5) | (10) |
| ||||
Other comprehensive (loss)/income for the period | (7) | (5) | (10) |
| ||||
Total comprehensive loss in the period |
| |||||||
attributable to equity holders of parent company | (1,114) | (942) | (1,299) |
| ||||
DODS (GROUP) PLC | |||||||
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION | |||||||
As at | As at | As at | |||||
30 September | 30 September | 31 March | |||||
2014 | 2013 | 2014 | |||||
Unaudited | Unaudited | Audited | |||||
Note | £'000 | £'000 | £'000 | ||||
Goodwill | 7 | 13,282 | 13,336 | 13,282 | |||
Intangible assets | 8 | 13,622 | 14,714 | 14,332 | |||
Property, plant and equipment | 457 | 529 | 471 | ||||
Non-current assets | 27,361 | 28,579 | 28,085 | ||||
Inventories | 109 | 137 | 124 | ||||
Trade and other receivables | 3,528 | 3,746 | 3,759 | ||||
Cash | 4,843 | 5,611 | 5,291 | ||||
Income tax receivable | (3) | 37 | - | ||||
Current assets | 8,477 | 9,531 | 9,174 | ||||
Income tax payable | - | - | (39) | ||||
Trade and other payables | (6,624) | (6,550) | (6,790) | ||||
Current liabilities | (6,624) | (6,550) | (6,829) | ||||
Net current assets | 1,853 | 2,981 | 2,345 | ||||
Total assets less current liabilities | 29,214 | 31,560 | 30,430 | ||||
Contingent deferred consideration | - | (564) | - | ||||
Deferred tax liability | (1,025) | (1,317) | (1,100) | ||||
Non current liabilities | (1,025) | (1,881) | (1,100) | ||||
Net assets | 28,189 | 29,679 | 29,330 | ||||
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 | 2,253 | 3,725 | 3,367 | ||||
Share option reserve | 471 | 463 | 471 | ||||
Translation reserve | (31) | (5) | (4) | ||||
Total equity | 28,189 | 29,679 | 29,330 | ||||
DODS (GROUP) PLC | ||||||||
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | ||||||||
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | 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 2013 | 17,078 | 8,009 | 409 | 5,129 | (4) | 0 | 30,621 | |
Reclassification | - | - | - | (473) | 10 | 463 | - | |
Total comprehensive loss | ||||||||
Loss for the year | - | - | - | (1,289) | - | (1,289) | ||
Other comprehensive loss | ||||||||
Currency translation differences | (10) | (10) | ||||||
Transactions with owners | ||||||||
Share based payment | - | - | - | - | - | 8 | 8 | |
At 1 April 2014 | 17,078 | 8,009 | 409 | 3,367 | (4) | 471 | 29,330 | |
Total comprehensive loss | ||||||||
Loss for the year | - | - | - | (1,107) | - | (1,107) | ||
Other comprehensive loss | ||||||||
Currency translation differences | - | - | - | (7) | (27) | (34) | ||
At 30 September 2014 | 17,078 | 8,009 | 409 | 2,253 | (31) | 471 | 28,189 | |
DODS (GROUP) PLC | ||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||
For the six | For the six | For the year | ||||||
months ended | months ended | months ended | ||||||
30 September | 30 September | 31 March | ||||||
2014 | 2013 | 2014 | ||||||
Unaudited | Unaudited | Audited | ||||||
Note | £'000 | £'000 | £'000 | |||||
Cash flows from operating activities | ||||||||
Loss for the period | (1,107) | (937) | (1,289) | |||||
Depreciation of property, plant and equipment | 58 | 114 | 225 | |||||
Amortisation of intangible assets acquired through business combinations | 418 | 514 | 1,026 | |||||
Amortisation of other intangible assets | 578 | 375 | 803 | |||||
Share based payments credit | - | - | 8 | |||||
Net finance costs | - | (7) | 36 | |||||
Income tax credit | (76) | (120) | (199) | |||||
Operating cash flows before movements in | ||||||||
working capital | (129) | (61) | 610 | |||||
Change in inventories | (13) | 21 | 34 | |||||
Change in receivables | 282 | (1,005) | (1,022) | |||||
Change in payables | (202) | 655 | 904 | |||||
Cash generated by operations | (62) | (390) | 526 | |||||
Income tax paid | (36) | (63) | (87) | |||||
Net cash used in operating activities | (98) | (453) | 439 | |||||
Cash flows from investing activities | ||||||||
Interest and similar income received | 17 | 7 | 11 | |||||
Acquisition of subsidiaries, net of cash acquired | - | - | (564) | |||||
Addition to property, plant and equipment | (38) | (70) | (123) | |||||
Additions to intangible assets | (291) | (904) | (1,462) | |||||
Net cash used in investing activities | (312) | (967) | (2,138) | |||||
Cash flows from financing activities | ||||||||
Interest and similar expenses paid | (4) | (3) | (12) | |||||
Net cash from financing activities | (4) | (3) | (12) | |||||
Net (decrease)/increase in cash and cash equivalents | (414) | (1,423) | (1,711) | |||||
Opening cash and cash equivalents | 5,291 | 7,037 | 7,037 | |||||
Effect of exchange rate fluctuations on cash held | (34) | (3) | (35) | |||||
Closing cash and cash equivalents | 9 | 4,843 | 5,611 | 5,291 | ||||
DODS (GROUP) PLC
Notes to the Accounts
30 September 2014
1 Statement of Accounting Policies
The interim financial statements have been prepared in accordance with the recognition and measurement principles of IFRSs as adopted by the EU, applying the accounting policies and presentation that were applied in the preparation of the Company's published consolidated financial statements for the year ended 31 March 2014.
Basis of preparation
The Board continuously assesses and monitors the key risks of the business. Despite the current uncertainty in the global economy, 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 2014. The Operating Review includes consideration of uncertainties affecting the Group in the remaining six months of the year. The Board has reviewed forecasts 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 Statement of compliance
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 applying the accounting policies and presentation that were applied in the preparation of the company's published consolidated financial statements for the year-ended 31 March 2014.
The comparative figures for the year ended 31 March 2014 are not 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.
3 Segmental information
Segment information is presented in respect of the Group's operating segments. The operating segments have been identified on the basis of internal reports about components of the Group that are regularly reviewed by the "chief operation decision maker" to allocate resources to the segments and to assess their performance.
Six months ended | Six months ended | 12 months ended | ||||
30 September | 30 September | 31 March | ||||
2014 | 2013 | 2014 | ||||
Unaudited | Unaudited | Unaudited | ||||
Revenue | £'000 | £'000 | £'000 | |||
Political | 8,442 | 9,332 | 19,775 | |||
Total revenue | 8,442 | 9,332 | 19,775 | |||
Revenue | ||||||
United Kingdom | 6,337 | 7,349 | 15,674 | |||
Continental Europe and rest of the world | 2,105 | 1,983 | 4,101 | |||
8,442 | 9,332 | 19,775 | ||||
| ||||||
Six months ended | Six months ended | 12 months ended | ||||
30 September | 30 September | 31 March | ||||
2014 | 2013 | 2014 | ||||
Unaudited | Unaudited | Unaudited | ||||
EBITDA from operations* | £'000 | £'000 | £'000 | |||
Political | 421 | 397 | 1,456 | |||
Head Office | (475) | (369) | (369) | |||
Total EBITDA | (54) | 28 | 1,087 | |||
*EBITDA is defined by the Directors as being earnings before interest, tax, depreciation, amortisation of intangible assets acquire through business combinations, and non-trading items.
Non-trading items | ||||||||
Six months ended | Six months ended | 12 months ended | ||||||
30 September | 30 September | 31 March | ||||||
2014 | 2013 | 2014 | ||||||
Unaudited | Unaudited | Audited | ||||||
£'000 | £'000 | £'000 | ||||||
Redundancy and people related costs | - | 45 | 294 | |||||
Abortive deal costs | - | 30 | 25 | |||||
Acquisition costs | - | 14 | 14 | |||||
Consultancy fees | 75 | - | 152 | |||||
75 | 89 | 485 | ||||||
5 Taxation
The taxation charge for the six months ended 30 September 2014 is based on the expected annual tax rate.
6 | Adjusted (loss)/profit attributable to shareholders post tax | ||||||
Six months ended | Six months ended | 12 months ended | |||||
30 September | 30 September | 31 March | |||||
2014 | 2013 | 2014 | |||||
Unaudited | Unaudited | Audited | |||||
£'000 | £'000 | £'000 | |||||
Loss attributable to shareholders | (1,107) | (937) | (1,289) | ||||
Add: non-trading items net of tax | 57 | 68 | 471 | ||||
Add: amortisation of intangible assets acquired | |||||||
through business combinations | 418 | 514 | 1,026 | ||||
Less: share based payment credit | - | - | 8 | ||||
Adjusted loss attributable to shareholders | (632) | (355) | 216 | ||||
Shares | Shares | Shares | |||||
Weighted average number of shares | |||||||
In issue at start of the period - ordinary shares | 339,770,953 | 273,263,601 | 339,770,953 | ||||
In issue at 30 September - ordinary shares | 339,770,953 | 273,263,601 | 339,770,953 | ||||
Loss per share - ordinary shares (pence) | (0.33) | (0.34) | (0.38) | ||||
Adjusted (loss)/earnings per ordinary share before | |||||||
non-trading items and amortisation of intangible assets | |||||||
acquired through business combinations (pence) | (0.19) | (0.13) | 0.67 | ||||
Since the Group is loss making, there is no dilutive impact of the share options.
On 7 February 2012 each existing ordinary share of 10p in the authorised share capital of the company was subdivided into 1 ordinary shares of 1p each and 1 deferred shares of 9p each.
The 1p ordinary shares have the same rights (including voting and dividend rights and rights on a return of capital) as the previous 10p ordinary shares. Holders of the 9p deferred shares confer no right to any dividend or any other distribution (other than on a winding up), confer no right to receive notice of, or to attend or vote at, general meetings of the Company, and on a winding up confer the rights to be paid out of the assets of the Company available for distribution an amount equal to 1p for all the deferred shares prior to the surplus being distributed to the holders of ordinary shares, but do not confer any right to participate in any surplus assets of the Company, the Company shall not be obliged to issue share certificates in respect of the deferred shares.
On 5 April 2012, Dods (Group) PLC issued and allotted 76,950,944 ordinary shares which were admitted to trading on 5 April 2012.
On 25 July 2012, Dods (Group) PLC announced that it was proposing to raise approximately £6.1 million (before expenses) by the issue of 110,821,556 new Ordinary Shares ("Placing Shares") at a price of 5.5 pence each (the "Placing") to Lord Ashcroft KCMG.
7 | Goodwill | ||||||||||
Six months ended | Six months ended | 12 months ended | |||||||||
30 Sept | 30 Sept | 31 March | |||||||||
2014 | 2013 | 2014 | |||||||||
Unaudited | Unaudited | Audited | |||||||||
£'000 | £'000 | £'000 | |||||||||
Cost & net book value | |||||||||||
Opening balance | 13,282 | 13,282 | 19,393 | ||||||||
Additions | - | 54 | 782 | ||||||||
Impairment | - | - | (6,893) | ||||||||
Closing balance | 13,282 | 13,336 | 13,282 | ||||||||
8 | Intangible fixed assets | |||||||||||||
Six months ended | Six months ended | 12 months ended | ||||||||||||
30 Sept | 30 Sept | 31 March | ||||||||||||
2014 | 2013 | 2014 | ||||||||||||
Unaudited | Unaudited | Audited | ||||||||||||
Intangible assets acquired through business combinations | £'000 | £'000 | £'000 | |||||||||||
Cost | ||||||||||||||
Opening balance | 24,215 | 24,215 | 24,215 | |||||||||||
Additions | - | 182 | - | |||||||||||
Closing balance | 24,215 | 24,397 | 24,215 | |||||||||||
Amortisation | ||||||||||||||
Opening balance | 12,166 | 11,140 | 11,140 | |||||||||||
Charge for the period | 418 | 514 | 1,026 | |||||||||||
Closing balance | 12,584 | 11,654 | 12,166 | |||||||||||
Net book value | ||||||||||||||
Opening balance | 12,049 | 13,075 | 13,075 | |||||||||||
Closing balance | 11,631 | 12,743 | 12,049 | |||||||||||
Other intangible assets | ||||||||||||||
Net book value | ||||||||||||||
Opening balance | 2,283 | 1,624 | 1,624 | |||||||||||
Closing balance | 1,991 | 1,971 | 2,283 | |||||||||||
Net intangible assets | ||||||||||||||
Opening balance | 14,332 | 14,699 | 14,699 | |||||||||||
Closing balance | 13,622 | 14,714 | 14,332 | |||||||||||
9 | Analysis of net funds | |||||||||||||||
At | Exchange | At | ||||||||||||||
1 April 2014 | Cash flow | movement | 30 September 2014 | |||||||||||||
£'000 | £'000 | £'000 | £'000 | |||||||||||||
Cash at bank and in hand | 5,291 | (414) | (34) | 4,843 | ||||||||||||
5,291 | (414) | (34) | 4,843 | |||||||||||||
RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF THE HALF YEAR REPORT
We confirm that to the best of our knowledge:
1. the condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.
2. the interim management report includes a fair review of the information required by:
(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and
(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.
By order of the Board of Dods (Group) PLC
Keith Sadler
Company Secretary