Reabold Resources Regulatory News (RBD)

29 Sep 2006 07:03

Adventis Group PLC29 September 2006 For release 7.00am September 29 2006 ADVENTIS GROUP PLC Interim Results 2006 Adventis Group plc, the specialist multi-media marketing and advertising agency,today announces its results for the half-year ended 30 June 2006. • Profit before tax up 52% at £799k (2005 - £527k) • Turnover up by 53% to £16.4m (2005 - £10.7m) • Basic EPS up by 45% to 1.6p (2005 - 1.1p) • Interim dividend per share up 5% at 0.22p (2005 - 0.21p) • Operating profit from new ventures in 2006 totalling £133k (2005 - £151k) • Acquisition of Roundhouse Advertising Limited and The Coltman Media Company Limited (now Adventis Coltman Limited) completed May 2006 • Strong balance sheet to support further acquisitions • Major client wins include Howard Holdings, St Martins Property Corporation Ltd., Slough Estates, South West Regional Development Agency, Morley Fund Management, Farnborough Business Park, Abstract Land and Exemplar. • Share buy-back in January 2006 of 325,000 shares Peter Mitchell, Chairman of Adventis Group plc, commented: "The first six months of 2006 has seen a continuation of the success we havebuilt since floating on AIM in July 2004. The acquisition of a further twobusinesses has strengthened our existing business and will enhance our positionas a major player in the residential and commercial property, financial servicesand healthcare media sectors. The outcome for the remainder of the year looksencouraging. " For further information, contact: Adventis Group plcCharles Phillpot, Chief Executive Officer 0020 7034 4750 Seymour PierceSarah Jacobs 0020 7107 8008 Adventis Financial PRPeter Binns 0020 7034 4760 / 07768 392 582Chris Steele 0020 7034 4759 / 07979 604 687Tarquin Edwards 0020 7034 4758 / 07879 458 364 Chief Executive Officer's Statement for the half year ended 30 June 2006 Trading Update I am pleased to report a strong set of results for the half year ended 30 June2006, with record levels of billings and profits, both organically across mostof our businesses and through acquisitions. Group billings of £16.4m were up 53%(2005: £10.7m) and pre-tax profit of £799k was up 52% (2005: £527k). Thisrepresents the third successive year of significantly increased billings andprofits and the Company has continued to benefit from healthy margins and strongcash flow. The earnings per share rose by 45% for January - June 2006 to 1.6p compared with1.1p for the previous half year. Dividend The Board is recommending an increase of 5% in the interim dividend at 0.22p(2005 0.21p) per share, payable to shareholders registered on 13th October forpayment on 27th October. Financial Position Net cash balance on 30 June 2006 was £1.4m, indicating our continued ability totranslate revenue growth into cash. Market Overview The group operates in a competitive market place in media planning and buying;PR; direct marketing, and other marketing services comprising corporate identityprogrammes, advertising campaigns, digital media and collateral materials. Thereis a rising demand for specialists in various marketing fields and the marginsgenerated tend to be greater than those that the mainstream generalists canearn. Our revenues are generated predominantly in the form of both retainers andfees for project specific work. Many of our clients have very long standingrelationships with the Group. Business Strategy The group enjoyed a more buoyant market in 2006. Since our admission to AIM on1st July 2004 we have pursued our stated business strategy of increasing themarket share for our media services in the residential and commercial property,financial services and healthcare sectors. Acquisitions and Joint Ventures In May 2006 the Group announced the acquisition of The Coltman Media Company Ltd(now renamed Adventis Coltman Ltd), a financial services specialist media buyingcompany and the acquisition of Roundhouse Advertising Limited, a specialisthealthcare agency. Since the half year the Group has successfully launched Adventis Financial PR,based on the 'Financial PR Firm of the year 2005', Binns & Co PR. The additionof M-Squared, a specialist property marketing agency has served to strengthenour offering in the residential market. Operational Review The following is a summary of activity by business sector for the six monthsended 30 June 2006: Residential Property Marketing Sector Our residential property marketing sector has a broad base of clients frominternational names such as Savills to many UK developers such as Capital &Provident, Higgins Homes, Galliard Homes and Grove Manor Homes. It provides abroad range of consultancy and creative services across the industry and hascontinued to grow this creative business with encouraging margins. Commercial Property Marketing Sector Our commercial property marketing sector won several major long-term projects in2005/6 such as Howard Holdings, St Martins Property Corporation Ltd., AbstractLand, Slough Estates, South West Regional Development Agency, Morley FundManagement, Farnborough Business ParkAbstract Land, Exemplar. These project successes continue to give the business apositive order book for the current year. Financial Services Sector Adventis NMG Ltd, which specialises in financial services continued to tradeprofitably for the period. A series of projects were concluded in 2005 forclients such as Lexis Nexis. The addition of Adventis Coltman Ltd and AdventisFinancial PR has enhanced our offering in the Financial Services sector and willfacilitate further growth of Adventis NMG. Healthcare Sector Affiniti (UK) Ltd and Roundhouse Advertising when combined are in the top ten UKHealthcare Marketing Companies. The scale of the operation is important in thissector as the multinational pharmaceutical clients increasingly prefer largerservice groups. These two companies will shortly move to shared premises inorder to achieve a larger pool of specialist talent plus further economies ofscale. Media Planning and Buying Sector Our three media planning and buying companies, Premium Media Ltd, Adgenda MediaLtd and Adventis Coltman Ltd., are a significant force in the media sector. Theyhave full NPA (Newspapers Publishing Association) recognition and enjoy veryfavourable commercial terms with media owners. Media broking works very much intandem with our creative business. Business volumes continue to grow at goodmargins for this industry. Outlook The second half has started well and we are encouraged by the prospects for thecurrent year. We continue to raise our profile in our chosen market sectors of property,healthcare and financial services. More opportunities are offering themselves tous in these areas and we are able to be very selective in making furtheracquisitions and focus hard on agreeing the best possible terms for the Group. Our strong cash position, profit performance and balance sheet will enablefurther strategic developments and we continue to explore ways of growing thegroup while ensuring our profit record is maintained. Charles Phillpot Chief Executive Officer Adventis Group PlcGroup income statement * Restated 6 months to 6 months to 12 months to 30 June 30 June 31 December 2006 2005 2005 Note £'000 £'000 £'000 -------- ---------- ---------TurnoverContinuing operations 14,094 7,305 13,893Acquisitions 2,340 3,394 8,008 -------- ---------- --------- 16,434 10,699 21,901 -------- ---------- ---------Operating profitContinuing operations 601 331 550Acquisitions 133 151 379 -------- ---------- ---------Profit on ordinary activitiesbefore interest 734 482 929 Net interest receivable 65 45 102Finance costs - - (4) -------- ---------- ---------Profit on ordinary activitiesbefore taxation 799 527 1,027 Taxation on profit on ordinaryactivities (240) (164) (105) -------- ---------- ---------Profit for the period 559 363 922 -------- ---------- ---------Attributable to: 558 374 876Equity holders of the parentMinority interest 1 (11) 46 -------- ---------- ---------Profit for the period 559 363 922 -------- ---------- ---------Earnings per share ("EPS") 3------------------------ ----- -------- ---------- ---------Basic earnings per share Average number of shares inissue (number) 34,720,045 32,509,248 32,977,826EPS (pence) 1.61 1.11 2.66Fully diluted earnings per shareFully diluted average number ofshares in issue (number) 35,107,236 33,337,748 33,242,904EPS (pence) 1.59 1.09 2.63------------------------ ----- -------- ---------- --------- * Figures restated for IFRS Adventis Group Plc * RestatedGroup Balance Sheet 30 June 30 June 31 December 2006 2005 2005 Note £'000 £'000 £'000 -------- -------- ---------ASSETSNon-current assetsProperty, plant and equipment 303 207 194Goodwill and other intangible assets 9,638 2,784 2,243Deferred tax asset 181 - 181 -------- -------- --------- 10,122 2,991 2,618Current assetsWork in progress 252 1 151Trade and other receivables 7,527 5,698 3,488Cash and cash equivalents 1,363 1,643 2,585 -------- -------- --------- 9,142 7,342 6,224 -------- -------- ---------Total assets 19,264 10,333 8,842 -------- -------- ---------EQUITYCapital and reserves attributable to equity holders ofthe parentShare capital 2 88 81 81Share premium account 3,849 2,862 2,862Capital redemption reserve 200 200 200Other reserves 20 20 20Retained earnings 2,339 1,456 1,915 -------- -------- --------- 6,496 4,619 5,078 Minority Interest 48 1 47 -------- -------- ---------Total equity 6,544 4,620 5,125 -------- -------- ---------LIABILITIESNon-current liabilitiesObligations under finance leases - due inmore than one year - 15 -Provisions for other liabilities andcharges 6 - 6Deferred consideration 4,022 1,569 964 -------- -------- --------- 4,028 1,584 970 -------- -------- ---------Current liabilitiesTrade and other payables 5,618 3,816 2,248Current income tax liabilities 267 174 149Obligations under finance leases - due inless than one year - 2 12Provisions for other liabilities andcharges 34 12 19Deferred consideration 2,773 125 319 -------- -------- --------- 8,692 4,129 2,747 -------- -------- ---------Total liabilities 12,720 5,713 3,717 -------- -------- ---------Total equity and liabilities 19,264 10,333 8,842 -------- -------- --------- Adventis Group PlcGroup statement of changes in equity Share Share Premium Capital Minority Retained Shareholders capital account Reserves Interests earnings funds - equity £'000 £'000 £'000 £'000 £'000 £'000 ------- -------- ------- -------- ------- --------- Balance at 1January 2005 79 2,563 220 1 1,223 4,086 Profit for theperiod - - - - 363 363Dividends - - - - (130) (130)Issue of sharecapital 2 299 301Share based payments ------- -------- ------- -------- ------- ---------Balance at 30June 2005 81 2,862 220 1 1,456 4,620 Profit for theperiod - - - - 559 559Dividends paid - (68) (68)Minorityinterest - - - 46 (46) -Issue of share capital - - - - -Share basedpayments - 14 14 ------- -------- ------- -------- ------- ---------Balance at 31December 2005 81 2,862 220 47 1,915 5,125 Profit for theperiod - - - - 559 559Dividends - - - - (142) (142)Minorityinterest 1 (1) -Issue of sharecapital 7 987 - - - 994Share basedpayments 8 8Balance at 30June 2006 88 3,849 220 48 2,339 6,544 ------- -------- ------- -------- ------- --------- Adventis Group PlcGroup cash flow statement 6 months to 6 months to 12 months to 30 June 30 June 31 December 2006 2005 2005 Note £'000 £'000 £'000 --------- ------- -------- Cash generated from operatingactivities (139) (687) 477Income taxes paid (122) (140) (317)Interest paid (5) (1) (4) --------- ------- --------Net cash (used in)/fromoperating activities (266) (828) 156 Cashflows from investing activitiesInterest received 65 46 102Purchase of property plant andequipment (125) (9) (59)Purchase of other investments (143) - -Acquisition of subsidiaries 4 (679) (599) (581) --------- ------- --------Net cash used in investmentactivities (882) (562) (538) Cashflows from financing activitiesDividends paid (142) (130) (198)Repayments of obligations underfinance leases (2) (7) (9)Proceeds of issuing sharecapital 70 - - --------- ------- --------Net cash (used in)/fromfinancing activities (74) (137) (207) --------- ------- --------Net (decrease)/increase in cashand cash equivalents (1,222) (1,527) (589) Cash and cash equivalents at thebeginning of the period 2,585 3,153 3,174 --------- ------- --------Cash and cash equivalents at theend of the period 1,363 1,626 2,585 ========= ======= ======== Adventis Group Plc Notes to the accounts Note 1 Principal accounting policies On 19 August 2005 the Adventis Group announced that from 1 January 2005, theGroup will "early adopt" and prepare all future consolidated financialstatements in accordance with International Accounting Standards andInternational Financial Reporting Standards (jointly "IFRS"), as adopted by theEuropean Union ("EU") and applicable to all AIM quoted companies for financialreporting periods beginning on or after 1 January 2007. These unaudited interim financial statements do not constitute statutoryaccounts within the meaning of s240 of the Companies Act 1985. The statutoryaccounts for the year ended 31 December 2005 (from which comparative figureshave been extracted) on which the auditors gave an unqualified audit report,have been filed with the Registrar of Companies. Note 2 Share capital 30 June 30 June 31 December 2006 2005 2005 No. shares No. shares No. sharesAuthorised Ordinary Shares of 0.25pence each 60,000,000 60,000,000 60,000,000---------------------------- -------- -------- -------- Allotted, called up and fully paid Ordinary Shares of 0.25pence each 35,016,846 32,509,248 32,509,248 In accordance with the terms of the agreement to acquire Affiniti (UK) Limited470,000 fully paid ordinary shares were issued in the six months to 30 June2006. In accordance with the terms of the agreement to acquire The Coltman MediaCompany Limited 829,600 fully paid shares were issued as part of the initialconsideration and to acquire Roundhouse Advertising Limited, 951,200 fully paidshares were issued. Note 3 Earnings per share The number of shares used in the calculation of the earnings per share is shownat the foot of the profit and loss account. The EPS has moved from 1.11p to 1.61p whilst the fully diluted EPS has movedfrom 1.09p to 1.59p. Note 4 Acquisition of The Coltman Media Company Limited (now Adventis ColtmanLimited) and Roundhouse Advertising Limited On 22nd May 2006 the Group acquired 100% of the issued share capital of TheColtman Media Company Limited (now Adventis Coltman Limited) and RoundhouseAdvertising Limited for cash and shares totalling: Coltman Roundhouse ---------- -------- £'000 £'000 ---------- -------- Property plant and equipment - 17Stocks - 76Trade Debtors 1,575 412Prepayments and accrued income 28 25Bank and cash balances 996 528Trade payables (1,113) (59)Provisions for liabilities and charges (832) (378) Goodwill 2,264 3,604Intangible assets 834 659 ---------- --------Total Consideration 3,752 4,884 ========== ======== Satisfied byCash 920 1,063Issue of Adventis Group ordinary share capital 360 417Deferred consideration 972 616Contingent consideration 1,500 2,788-------------------- --------- -------- 3,752 4,884 ========= ======== Net cash inflow/(outflow) arising on acquisition 76 (535)Cash consideration 920 1,063Bank balances and cash acquired 996 528 In addition payments of £220,000 were made for the next instalments due for theacquisition of Affiniti (UK) Ltd acquired in January 2005. Note 5 Early adoption of IFRS As noted above the group has now adopted IFRS and this report contains restatednumbers to reflect that change. Note 6 Report Copies of this report will be available on request from the company secretary ofAdventis Group PLC at 93-95 Wigmore Street, London W1U 1HH. This information is provided by RNS The company news service from the London Stock Exchange