Reabold Resources Regulatory News (RBD)

10 Mar 2005 07:00

Adventis Group PLC10 March 2005 ADVENTIS GROUP PLC PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2004 Adventis Group plc ('Adventis' or 'the Group'), the specialist multi-mediamarketing and advertising agency, today announces its maiden preliminary resultsfor the year ended 31 December 2004 following the Group's successful admissionto AIM in July 2004. KEY POINTS • Pre-tax profit up 83% at £0.77m (2003 - £0.42m)• Turnover up 32% at £12.09m (2003 - £9.16m)• Earnings per share up 29% at 2.20p (2003 - 1.70p)• Final dividend of 0.40p per share making a total for the year of 0.85p per share• Net cash inflow from operating activities £0.67m• Acquisition of Affiniti (UK) Ltd, a specialised UK healthcare advertising agency, completed in January 2005• Successful launch of Adventis NMG Ltd in August 2004• Major client wins include the Hub in Birmingham, the South West Regional Development Agency (SWERDA) in Cardiff and St James Homes, complementing existing clients such as Allied London Properties, BAA MacArthur Glen, Savills and ING Real Estate Peter Mitchell, Chairman of Adventis Group plc, commented: "2004, and particularly our first six months as a publicly quoted company, hasbeen extremely encouraging with not only a significant rise in both turnover andprofit, but also with the achievement of the early part of our long-termstrategy through the announcement of a significant joint venture and a majoracquisition. The Group's strategy at flotation was to expand its marketing services offeringwith a strong focus on the property, healthcare and financial services sectors.We have made significant progress to this end in the last year through bothorganic and new venture growth and we are confident of continuing this through2005." Enquiries: Charles Phillpot, Chief Executive Officer Fiona Mulcahy, Justin GriffithsAdventis Group plc Citigate Dewe RogersonTel: 020 7034 4750 Tel: 020 7638 9571 Paul DudleyWH Ireland LimitedTel: 020 7397 3225 Chairman's Statement This is my first statement as Chairman of Adventis Group plc having beenappointed on 19 April 2004 prior to the flotation on 1 July 2004. 2004, andparticularly our first six months as a publicly quoted company, has beenextremely encouraging with not only a significant rise in both turnover andprofit, but also with the achievement of the early part of our long-termstrategy through the announcement of a significant joint venture and a majoracquisition. It is pleasing to note that, in a year when the management had to focus on aflotation, both continued successful business performance and long termstrategic development could be achieved. This is encouraging for our futurebusiness plans and reflects the strength of talent within Adventis. Today, the Group consists of five operating companies in two locations employing70 people providing a broad range of marketing services to a large range ofclients. The successful launch of Adventis NMG Ltd, as a venture with NMG FinancialServices Consulting Ltd, represents the beginning of our strategy to offer afull range of services to the financial services industry. The acquisition ofAffiniti (UK) Ltd, a specialised UK healthcare advertising agency, was completedafter the end of the 2004 financial year. It builds on the foothold the Grouphad already built in this profitable market and is likely to act as the vehiclefor all future healthcare activity. The Group comprises a talented and commercial team. The past year has been aturning point for the Group in terms of funding and strategy. Trading in 2005has made a positive start and is ahead of last year and therefore the outlookfor 2005 remains encouraging. Our existing businesses continue to perform welland we look forward to announcing further corporate activity in the near future. Peter MitchellChairman Chief Executive Officer's Statement I am pleased to report a strong set of maiden preliminary results for the yearended 31 December 2004. Group billings of £12.09m were up 32% (2003: £9.16m)and pre-tax profit of £0.77m was up 83% (2003: £0.42m). In addition, webenefited from healthy margins and strong cash flow. The earnings per share for 2004 of 2.2p was ahead of the previous year at 1.7p.The Board is recommending a final dividend of 0.40p per share, making a totalfor the year of 0.85p. The Group operates in a highly competitive market place. The diversifiedmarketing services industry is highly labour intensive reflecting the relianceon creative skill and knowledge. There is a rising demand for specialists invarious marketing fields. Our revenues are generated predominantly in the formof fees for project specific work. It is against this background that I ampleased to report results that reflect the hard work of all the team atAdventis. Business Strategy The Group enjoyed a more buoyant market and most areas of the business were ableto generate higher revenues at good margins. Since our admission to AIM on 1July 2004, where we raised £2.60m net of expenses for the Group, we have pursuedour business strategy of increasing the market share for our media services inthe residential and commercial property sectors. Furthermore, we continue toexpand the services we provide in our other target markets, currently comprisingthe financial services and healthcare sectors. Acquisitions and Joint Ventures In August 2004, we formed Adventis NMG Ltd as a venture with NMG FinancialServices Consulting Ltd, a highly specialised management consulting firm,providing a comprehensive range of services to the global financial industry.The NMG global network has unrivalled access to financial institutions withclients such as ISIS, Scottish Widows, Charcol and HBOS and is able to act as avery effective business introducer. In early January 2005, we completed the acquisition of Affiniti (UK) Ltd, aspecialised UK healthcare advertising agency with clients such as Allergan,sanofi pasteur MSD, Chiron Vaccines, Eden Biopharm, Leo Pharma, Napp and Serono.This acquisition builds on the foothold Adventis Group already has in thisprofitable market and is likely to act as the vehicle for all future healthcareactivity. Operational Review The following is a summary of activity by business sector for the year ended 31December 2004. Residential Property Marketing Sector Our residential property marketing sector has a broad base of clients frominternational names such as Savills to UK developers such as Capital &Provident, Galliard and Devington Homes. This sector, which returns encouragingmargins, continues to provide a broad range of consultancy and creative servicesacross the industry. Commercial Property Marketing Sector Our commercial property marketing sector won several major long-term projects in2004 such as the Hub in Birmingham and the South West Regional DevelopmentAgency (SWERDA) in Cardiff. These project successes continue to give thebusiness a positive order book for the current year. Margins remained underpressure in this competitive business area. Media Planning and Buying Sector Our media planning and buying sector has full NPA (Newspapers PublishingAssociation) recognition. Media broking is highly cash generative and worksvery much in tandem with our residential property marketing sector's creativebusiness. Business volumes continue to grow at good margins. Financial Services Sector The new venture, Adventis NMG Ltd, which specialises in financial services,commenced trading in September 2004 and traded profitably for the period ended31 December 2004. A senior executive from a similar organisation was recruitedand has been successful in exploiting the many leads generated by Adventis NMGLtd. A series of projects were concluded in 2004 and the outlook is positivefor 2005. Outlook Since our flotation on AIM, the Group has enjoyed a higher profile within theindustry and national media. This increased awareness greatly facilitates ourmergers and acquisitions activity. All staff serving at the time of the flotation participated in a share optionscheme and this has contributed to excellent staff morale and retention. Our strong cash flow and balance sheet will assist and help to support furtherstrategic developments and we continue to explore ways of growing the Groupwhile ensuring our profit record is maintained. Charles PhillpotChief Executive Officer Consolidated profit and loss accountYear ended 31 December 2004 Unaudited Audited 2004 2003 Notes £'000 £'000 Turnover 2 12,087 9,159 Operating Profit 2 625 418 Net interest receivable 148 1 Profit on ordinary activities before taxation 773 419 Tax on profit on ordinary activities (214) (86) Profit on ordinary activities after taxation 559 333 Minority Interest (1) - Profit for the financial year 558 333 Dividends 4 (278) (297) Retained profit for the financial year 10 280 36 Earnings per share Basic earnings per ordinary share 3 2.2p 1.7p Diluted earnings per ordinary share 3 2.0p 1.6p Balance sheetAs at 31 December 2004 Group Company Unaudited Audited Unaudited Audited 2004 2003 2004 2003 Notes £'000 £'000 £'000 £'000Fixed assetsIntangible assets- goodwill 242 259 - -- negative goodwill (42) (45) - - 200 214 - - Tangible assets 184 157 175 145Investments - - 57 57 384 371 232 202Current assetsWork in progress 5 - - -Debtors 6 2,218 1,972 1,235 972Cash at bank and in hand 3,183 501 2,766 - 5,406 2,473 4,001 972Creditors - amounts falling duewithin one year 7 (1,878) (1,808) (884) (866) Net current assets 3,528 665 3,117 106 Total assets less currentliabilities 3,912 1,036 3,349 308 Creditors - amounts falling dueafter more than one year 8 (10) (7) (10) (7) Provisions for liabilities andcharges (5) (5) (5) (7) Net assets 3,897 1,024 3,334 294 Capital and reservesCalled up share capital 9 79 50 79 50Share premium account 10 2,563 - 2,563 -Capital redemption reserve 10 200 200 200 200Other reserves 10 20 20 20 20Profit and loss account 10 1,034 754 472 24Equity shareholders' funds 3,896 1,024 3,334 294 Equity minority interests 1 - - - 3,897 1,024 3,334 294 Consolidated cash flow statementYear ended 31 December 2004 Unaudited Audited 2004 2003 Notes £'000 £'000 Net cash inflow from operating activities 11 667 890 Returns on investment and servicing of financeInterest received 65 3Interest element of finance leases (2) (2) Net cash inflow from returns on investments andservicing of finance 63 1 Taxation (46) (131) Capital expenditure Purchase of tangible fixed assets (72) (35) Net cash outflow from capital expenditure (72) (35) Equity dividends paid to shareholders (64) (297) Net cash inflow before use of liquid resources and 548 428financing FinancingIssue of ordinary share capital 2,592 -Capital element of finance lease rental payments (8) (6) Increase in cash 3,132 422 Reconciliation of movements in equity shareholders' fundsYear ended 31 December 2004 Group Company Unaudited Audited Unaudited Audited 2004 2003 2004 2003 £'000 £'000 £'000 £'000 Profit for the financial year 558 333 726 706Dividends (278) (297) (278) (297) Retained profit for the year 280 36 448 409Issue of ordinary shares 2,592 - 2,592 -Issue of share options - 20 - 20 Net movement in the year 2,872 56 3,040 429Shareholders' funds at start of 1,024 968 294 (135)year Shareholders' funds at end of year 3,896 1,024 3,334 294 1 Basis of preparation The preliminary statement is not the company's statutory accounts. The statutoryaccounts for the year ended 31 December 2003 have been delivered to theRegistrar of Companies and received an audit report which was unqualified anddid not contain statements under s237(2) or (3) of the Companies Act 1985. Theaccounts for the year ended 31 December 2004 have not yet been delivered to theRegistrar of Companies and the auditors have not yet reported thereon. 2 Operating profit Unaudited Audited 2004 2003 £'000 £'000 Turnover (all UK origin) 12,087 9,159Staff costs (2,432) (2,065)Depreciation: Owned assets (56) (41) Leased assets (5) (10)Amortisation of purchased goodwill (17) (18)Negative goodwill amortised 3 3Other operating charges (8,955) (6,610) Operating profit 625 418 Operating profit is stated after charging Auditors' remuneration: - Audit services 30 12 - Non-audit services 72 3Operating lease rentals: - Plant & equipment 5 2 - Other 213 96 3 Earnings per share Basic earnings per share is based on the profit on ordinary activities aftertaxation of £558,000 (2003: £333,000) and on 25,789,474 (2003: 20,000,000) beingthe weighted average number of shares in issue during the period. Diluted earnings per share is based on the profit on ordinary activities aftertaxation of £558,000 (2003: £333,000) and on 27,654,387 (2003: 21,052,632) beingthe diluted weighted average number of shares in issue during the period. Unaudited Audited 2004 2003 Basic earnings per share 2.2p 1.7p Diluted earnings per share 2.0p 1.6p 4 Dividends Unaudited Audited 2004 2003 £'000 £'000First interim ordinary dividend paid 84 297Second interim ordinary dividend paid 64 -Final ordinary dividend proposed 130 - Total ordinary dividends paid and proposed 278 297 5 Investments - Company Subsidiary undertakings The principal subsidiary undertakings of the company and their principalactivities are shown below. They have share capitals wholly comprising ofordinary shares. All the companies are registered in England and Wales, operatein the UK and are consolidated into the group accounts. Subsidiary undertakings Principal activity Holding Gilbert Doyle Oakmont Limited Advertising and marketing services 100%Premium Media Limited Media planning and buying services 100%Property Marketing Company Limited Advertising and marketing services 100%Adventis NMG Limited Advertising and marketing services 51% 6 Debtors Group Company Unaudited Audited Unaudited Audited 2004 2003 2004 2003 £'000 £'000 £'000 £'000 Trade debtors 2,103 1,432 5 -Amounts owed by parent undertaking - 509 - -Amounts owed by subsidiary - - 1,118 949undertakingsOther taxes and social security 12 - 12 3Corporation tax - 11 - -Prepayments and accrued income 103 20 100 20 2,218 1,972 1,235 972 7 Creditors - amounts falling due within one year Group Company Unaudited Audited Unaudited Audited 2004 2003 2004 2003 £'000 £'000 £'000 £'000 Bank loans and overdrafts 9 459 6 373Obligations under finance leases 11 6 11 6and hire purchase contractsTrade creditors 365 142 156 23Corporation tax 157 - 8 -Proposed dividend 130 - 130 -Other taxation and social security 195 155 5 5Other creditors 117 80 1 1Accruals and deferred income 894 966 567 458 1,878 1,808 884 866 8 Creditors - amounts falling due after more than one year Group Company Unaudited Audited Unaudited Audited 2004 2003 2004 2003 £'000 £'000 £'000 £'000 Obligations under finance leases 10 7 10 7and hire purchase contracts 9 Share capital 2004 2004 2003 2003 £'000 No. shares £'000 No. sharesAuthorisedOrdinary shares of 0.25 pence each 150 60,000,000 - -"A" Ordinary shares of £1 each - - 40 39,630"B" Ordinary shares of £1 each - - 13 13,000Preference shares of £1 each - - 400 400,000 Allotted, called up and fully paidOrdinary shares of 0.25 pence each 79 31,578,948 - -"A" Ordinary shares of £1 each - - 37 37,000"B" Ordinary shares of £1 each - - 13 13,000Preference shares of £1 each - - - - 79 50 On 1 July 2004 the Company was admitted to AIM. Prior to admission all the "B"Ordinary shares were converted to "A" Ordinary shares and 2,360 "A" Ordinaryshares were issued to Sigma Technology Management Limited. Subsequent to theseevents, but immediately prior to admission, each "A" Ordinary share wassub-divided into 400 new Ordinary shares of 0.25pence each. Prior to admission the Company's issued share capital was 21,052,632 ordinaryshares of 0.25 pence. On admission a further 10,526,316 shares were issued forcash at a nominal value of £26,315. These shares were issued at a price of 28.5pence per share, generating a share premium of £2,973,684. From this premium,costs of the admission amounting to £410,557 have been deducted, leaving a sharepremium account totalling £2,563,127 (also see note 10). 10 Reserves Share Capital premium redemption Other Profit and account reserve reserves loss account Total £'000 £'000 £'000 £'000 £'000 Group At 1 January 2004 - 200 20 754 974 Retained profit for the year - - - 280 280 Shares issued 2,974 - - - 2,974Issue costs (411) - - - (411) At 31 December 2004 2,563 200 20 1,034 3,817 Share Capital premium redemption Other Profit and account reserve reserves loss account Total £'000 £'000 £'000 £'000 £'000Company At 1 January 2004 - 200 20 24 244 Retained profit for the year - - - 448 448 Shares issued 2,974 - - - 2,974Issue costs (411) - - - (411) At 31 December 2004 2,563 200 20 472 3,255 11 Reconciliation of operating profit to net cash inflow from operatingactivities Unaudited Audited 2004 2003 £'000 £'000 Operating profit 625 418Issue of share options - 15Depreciation of tangible assets 61 51Amortisation of intangible fixed assets 17 18Negative goodwill amortised (3) (3)(Increase)/decrease in work in progress (5) 1(Increase)/decrease in debtors (257) 221Increase in creditors 229 169 Net cash inflow from operating activities 667 890 12 Analysis of net funds/(debt) Other 31 December Cash non- cash 31 December 2004 movements changes 2003 £'000 £'000 £'000 £'000 Cash at bank and in hand 3,183 2,682 - 501Overdrafts (9) 450 - (459)Finance leases (21) 8 (16) (13) Total 3,153 3,140 (16) 29 13 Post balance sheet event On 4 January 2005 Adventis Group plc acquired 100% of the share capital ofAffiniti (UK) Limited, a company providing marketing services to the healthcareindustry. This information is provided by RNS The company news service from the London Stock Exchange