DODS.L Regulatory News (DODS)

21 Jul 2005 07:01

Huveaux PLC21 July 2005 HUVEAUX PLC Interim Results for the six months ended 30 June 2005 and the proposed acquisition of JB Bailliere Sante for €11.5 million (£7.9 million) in cash Highlights • Turnover up 96 per cent. to £9.0 million including organic sales growth: - in the Political Division, up 20 per cent. - in Lonsdale (part of the Learning Division), up 21 per cent. • Pre-tax profits up 73 per cent. to £0.63 million* • EPS up 20 per cent. to 0.42 pence* • Outlook for the remainder of 2005 is for continued good performance • Offer announced today to acquire JB Bailliere Sante, a leadingpublisher in the French medical sector, for €11.5 million (£7.9 million) in cash Interim Results: Summary Six months to Six months to 30 June 2005 30 June 2004£'000 Unaudited Unaudited Turnover 9,046 4,638Profit before tax and exceptional 635 367items*Profit before tax 635 66Earnings per share pre exceptional 0.42p 0.35pitems (basic)*Earnings per share (basic) 0.42p 0.06p * Exceptional items in 2004 amounted to £301,000 pre tax (2005: nil) relatingprincipally to the cost of restructuring the Parliamentary Communicationsbusiness acquired in 2004. John van Kuffeler, executive Chairman of Huveaux, commented: "The results demonstrate our continued strong performance, particularly in theseasonally quiet first half of the year, and our commitment to achieve a solidbalance of organic and acquisition-led growth. The offer announced today for JB Bailliere Sante will help us build on thesuccess we have already achieved through our existing ATP-Egora business in theattractive French medical press sector. With the increasing scale of ourcombined operations, we have now created the Professional Division whose focuswill be to provide essential information and continuing education to the medicalprofession. The outlook for Huveaux for the remainder of the 2005 financial year remainsgood and the Board expects the acquisition of JB Bailliere Sante to enhancesignificantly Huveaux's EPS going forward#." # This statement should not be taken to mean that the future EPS of Huveaux willnecessarily match or exceed the historical reported EPS of Huveaux and noforecast is intended or implied. For further information, please contact: John van Kuffeler, executive Chairman, Huveaux 020 7245 0270James Leviton, Finsbury Limited 020 7861 3801 An analysts presentation will be held at 9.30 am this morning at the offices ofDresdner Kleinwort Wasserstein, 20 Fenchurch Street, London. Note to Editors : Huveaux is a publishing and media group which operates through its Political,Learning and Professional Divisions. Since being admitted to AIM in December2001, the Company has successfully completed the acquisition of sevencomplementary businesses. Huveaux was founded by John van Kuffeler, formerly Chief Executive and nownon-executive Chairman of Provident Financial plc. OPERATING AND FINANCIAL REVIEW Financial Performance Huveaux achieved substantial growth in sales, profit and EPS in the seasonallyquiet first half of 2005. Sales increased from £4.64 million to £9.05 million of which £3.70 million ofthe increase came from the three acquisitions made last year. Organic salesgrowth for the Group was 15 per cent. Pre-tax profits (before exceptional items)increased from £367,000 to £635,000 and adjusted EPS increased 20 per cent. to0.42 pence per share. Divisional Highlights •Political Division The Political Division operates as Dod's Parliamentary Communications in the UKwhere operations comprise political magazines; new media services; politicaltraining and seminars; database and reference books and recruitment. In the EU,our activities consist of reference books, newsletters, magazines, websites andreference books. The first half results demonstrate an excellent performance from the PoliticalDivision which saw underlying organic sales growth of 20 per cent. supplementedby £3.70 million from acquisitions and £0.25 million from the recognition ofdeferred revenue on the publication of Eurosource. In the UK, the General Election in May provided a platform for continuing strongdemand for advertising in our portfolio of magazines and the value of orders forDod's Parliamentary Companion reached a new record level. Our new media websites, political seminars and events and political recruitmentbusinesses each performed well and all achieved good growth. In France, our political business is trading in line with management'sexpectations and its results are almost entirely weighted to the second half. InBrussels, Parliament Magazine achieved a further 20 per cent. growth in revenuesfollowing its 46 per cent. revenue growth achievement in 2004. •Professional Division Today we announced an offer to acquire JB Bailliere Sante, a leading publisherin the French medical press sector based in Paris, for €11.5 million (£7.9million) in cash. The business will be merged with our existing ATP-Egoraoperations and as a result of this combined scale the new Professional Divisionis being created. This acquisition is expected to be significantly earningsenhancing#. During the first half, underlying sales growth at ATP-Egora was 28 per cent.This substantial increase was due in part to two large new contracts which wewon for our medical website business in France. •Learning Division The Learning Division (formerly entitled the Education & Training Division)comprises Fenman, which publishes material for professional training managers,and Lonsdale, which publishes specialist revision guides for schools. In response to changing market conditions we have reduced Fenman's dependence ondirect marketing, which will result in a business with lower sales but higherprofit margins. During the first half of 2005 direct marketing costs werereduced by 35 per cent. and sales were 9 per cent. lower than in the same periodlast year. The margin benefit is expected to flow through in the second half ofthis financial year. The training seminars business continued its strong growth performance. Oursubscription magazine, the Training Journal, completed a successful move intoour existing London based magazine publishing operations which will deliver bothoperating efficiencies and further sales opportunities in the future. Lonsdale achieved overall sales growth of 21 per cent. in the first six monthsof this year with new titles selling particularly well. The revision guidescontinue to be a quick and inexpensive solution for achieving better examinationresults in schools. Cash Cash on deposit at 30 June 2005 amounted to £ 625,000. During the first half wesettled all deferred cash considerations outstanding from previous acquisitionstotalling £1.6 million and paid the final 2004 dividend of £1.1 million. Huveauxcontinues to maintain a strong balance sheet. Outlook The second half of the year is an important period for the business as itcoincides with the start of the academic and parliamentary years in Septemberand October. Forward orders are already strong and the outlook for the remainderof the 2005 financial year continues to be good. This positive position will befurther significantly enhanced by the proposed acquisition of JB Bailliere Santewhich was announced today. Acquisitions remain an important part of Huveaux's growth strategy and the Boardis currently pursuing another acquisition opportunity. # This statement should not be taken to mean that the future EPS of Huveaux willnecessarily match or exceed the historical reported EPS of Huveaux and noforecast is intended or implied. HUVEAUX PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT Notes For the six For the six For the year months ended months ended ended 30 June 30 June 31 December 2005 2004 2004 Unaudited Unaudited Audited £000s £000s £000sTurnoverContinuing operations 3 9,046 3,192 7,572Acquisitions 3 - 1,446 6,861 9,046 4,638 14,433Cost of sales (5,370) (2,006) (6,872) Gross profit 3,676 2,632 7,561 Administrative expenses (3,045) (2,308) (5,217)Exceptional items - (301) (322)Total operating expenses (3,045) (2,609) (5,539) Continuing operations 3 631 61 1,281Acquisitions - (38) 741Total operating profit 631 23 2,022 Other interest receivable and 27 52 116similar incomeInterest payable and similar (23) (9) (10)charges Profit on ordinary activities 635 66 2,128before taxation Tax on profit on ordinary 4 (190) (20) (345)activities Profit for the period 445 46 1,783 Dividends on equity shares - - (1,065) Retained profit for the period 445 46 718 Adjusted basic earnings per share 5 0.42 p 0.35 p 2.19 pbefore exceptional itemsEarnings per share - basic 5 0.42 p 0.06 p 1.94 pEarnings per share - diluted 5 0.42 p 0.06 p 1.92 p HUVEAUX PLCCONSOLIDATED BALANCE SHEET Notes As at As at As at 30 June 30 June 31 December 2005 2004 2004 Unaudited Unaudited Audited £000s £000s £000s Fixed assetsIntangible assets 6 38,046 37,967 38,046Tangible assets 836 687 800 38,882 38,654 38,846 Current assetsStocks 1,287 1,022 1,329Debtors 6,317 3,522 4,638Cash at bank and in hand 625 2,653 3,120 8,229 7,197 9,087 Creditors: amounts falling due (7,565) (7,390) (8,736)within one year Net current assets 664 (193) 351 Total assets less current 39,546 38,461 39,197liabilities Creditors: amounts falling due - - (77)after more than one yearProvision for liabilities and - (38) -charges Net assets 39,546 38,423 39,120 Capital and reservesCalled-up equity share capital 10,761 10,646 10,646issuedCalled-up equity share capital - 400 400not issuedShare premium account 26,726 26,450 26,444Merger reserve 409 409 409Profit and loss account 1,650 518 1,221 Equity shareholders' funds 7 39,546 38,423 39,120 HUVEAUX PLCCONSOLIDATED CASH FLOW STATEMENT Notes As at As at As at 30 June 30 June 31 December 2005 2004 2004 Unaudited Unaudited Audited £000s £000s £000s Reconciliation of operatingprofit to net cash flow fromoperating activities Operating profit 631 23 2,022Depreciation charges 154 25 238Decrease/ (increase) in stocks 25 (166) (483)(Increase)/ decrease in (1,741) 794 (773)debtorsIncrease/ (decrease) in 1,284 (580) (108)creditors Net cash inflow from operating 353 96 896activities Cash Flow statement Cash flow from operating 353 96 896activitiesReturns on investments and 8 4 43 106servicing of financeTaxation - (7) (49)Capital expenditure and 8 (193) (29) (309)financial investmentAcquisitions and disposals 8 (1,571) (17,084) (17,122) Equity dividends paid (1,076) (629) (629)Management of liquid resources - - (47) Cash outflow before financing (2,483) (17,610) (17,154) Financing 8 (3) 16,793 16,787 Decrease in cash in the year 9 (2,486) (817) (367) HUVEAUX PLCNotes to the Accounts30 June 2005 1. These accounts comply with relevant accounting standards and have been prepared using the accounting policies set out in the Annual Report 2004. 2. The financial information included in this document does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The accounts for the year ended 31 December 2004, which have been filed with the Registrar of Companies, received an unqualified audit report and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The financial information contained herein in respect of the six month period to 30 June 2005 is unaudited. 3. Segmental information All amounts shown relate to one business segment, that of publishing. Period ended Period ended Year ended 30 June 30 June 31 December 2005 2004 2004 Unaudited Unaudited Audited £000s £000s £000sGroup turnover by geographicalareaUnited KingdomContinuing operations 7,060 3,101 6,645Acquisitions - 1,214 5,580 7,060 4,315 12,225 Continental Europe and the rest of the worldContinuing operations 1,986 91 927Acquisitions - 232 1,281 1,986 323 2,208Total turnover 9,046 4,638 14,433 Operating profit before exceptional items by geographical areaUnited KingdomContinuing operations 623 239 1,182Acquisitions - 261 614 623 500 1,796Continental Europe & the rest of the worldContinuing operations 8 (178) 99Acquisitions - (299) 127 8 (477) 226Total operating profit 631 23 2,022 Net assets/ (liabilities) by geographical areaUnited KingdomContinuing operations 38,878 38,526 38,553Acquisitions - 106 (575) 38,878 38,632 37,978Continental Europe & rest of the worldContinuing operations 668 1 595Acquisitions - (210) 547 668 (209) 1,142Total net assets 39,546 38,423 39,120 Turnover by geographic destination is not materially different from turnover bygeographic origin. 4. Taxation The taxation charge for the six months ended 30 June 2005 is based on theexpected annual tax rate. 5. Earnings per share Period ended Period ended Year ended 30 June 30 June 31 December 2005 2004 2004 Unaudited Unaudited Audited £000s £000s £000s Profit attributable to 445 46 1,783shareholdersAdd: exceptional items - 301 322Less: tax in respect of - (90) (97)exceptional itemsAdjusted profit attributable 445 257 2,008to shareholders 2005 2004 2004 Shares Shares SharesWeighted average number ofsharesIn issue during the year - 107,108,770 74,142,326 91,737,954basicDilutive potential ordinary 21,761 - 1,179,162sharesDiluted 107,130,531 74,142,326 92,917,116 Adjusted earnings per sharebeforeexceptional items (pence) 0.42 0.35 2.19Earnings per share- basic 0.42 0.06 1.94(pence)Earnings per share- diluted 0.42 0.06 1.92(pence) 6. Intangible fixed assets Period ended Period ended Year ended 30 June 30 June 31 December 2005 2004 2004 Unaudited Unaudited Audited £000s £000s £000sCost & net book valueOpening balance 38,046 19,451 19,451Additions - - 5Additions through - 18,516 18,564acquisitionFair value adjustments - - 26Closing balance 38,046 37,967 38,046 7. Reconciliation of movements in equity shareholders' funds Total equity shareholders' funds Unaudited £000s Profit for the period 445Currency translation differences on foreign (16)currency net investmentsCosts associated with issue of shares to former owners of Lonsdale SRG (3)Net increase in shareholders' funds 426Shareholders' funds at 31 December 2004 39,120Shareholders' funds at 30 June 2005 39,546 8. Analysis of cash flows Period ended Period ended Year ended 30 June 30 June 31 December 2005 2004 2004 Unaudited Unaudited Audited £000s £000s £000s Returns on investment and servicing of financeInterest and similar income 27 52 116receivedInterest and similar expenses (23) (9) (10)paid 4 43 106Capital expenditure and financial investmentPurchase of tangible fixed (193) (29) (304)assetsPurchase of intangible fixed - - (5)assets (193) (29) (309)Acquisitions and disposalsPurchase of subsidiary - (17,084) (17,060)undertakings and assetsLonsdale deferred (1,100) - (300)consideration paidPCL deferred consideration 471 - -paidCash acquired on acquisition - - 238of subsidiary 1,571 (17,084) (17,122) FinancingIssue of ordinary share - 17,500 17,500capitalExpenses paid in connection (3) (707) (713)with share issue (3) 16,793 16,787 9. Analysis of net funds Period ended Period ended Year ended 30 June 30 June 31 December 2005 2004 2004 Unaudited Unaudited Audited £000s £000s £000s Cash at bank and in handOpening balance 3,120 3,710 3,710Cash flow during the period -2,486 -1,057 (607)Exchange movement -9 - 17Closing balance 625 2,653 3,120 Debt due within one yearOpening balance - (240) (240)Cash flow during the period - 240 240Closing balance - - - 625 2,653 3,120 This information is provided by RNS The company news service from the London Stock Exchange