Reabold Resources Regulatory News (RBD)

19 Sep 2005 07:00

Adventis Group PLC19 September 2005 ADVENTIS GROUP PLC Interim Results 2005 Adventis Group plc, the specialist multi-media marketing and advertising agency,today announces its results for the half-year ended 30 June 2005. • Profit before exceptionals up 57% at £516k (2004 - £328k)* • Turnover up by 75% to £10.7m (2004 - £6.1m)* • Interim dividend per share up 5% to 0.21p (2004 - 0.2p) • Profit from new ventures in 2005 totalling £151k (2004 - £nil) • Acquisition of Affiniti (UK) Ltd, a specialist UK healthcare advertising agency, completed last January • Successful launch of Adgenda Media Ltd, a media planner and buyer last March • Strong balance sheet to support further acquisitions • Major client wins include GAB Robins, Invesco Perpetual, ABN AMRO, Savills Private Finance and Lincoln Financial \* The figures quoted are after being restated on the adoption of IFRS by theAdventis Group, see below for further details. Peter Mitchell, Chairman of Adventis Group plc, commented: "The first six months of 2005 presented an uncertain environment for manybusinesses so it is very gratifying to see our business structure issufficiently robust to produce such significant growth both organically from ourexisting business and by acquisition. During this period the Group also enjoyedincome from its new additions of Affiniti (UK) Ltd. from January 4th and, fromAdgenda Media Ltd. from March 30th. These two additions to the Group haveperformed very well in 2005. The Group aims to build its marketing services offering to property,pharmaceuticals and financial services clients whilst evaluating profitableopportunities in other niches. We continue to actively seek such growth both organically and by acquisition. Weremain focused on achieving the best possible deals, as stated at the time ofthe Group's flotation on AIM in July 2004, by seeking diversification into anumber of different but related business streams. In 2005 the management hasalready evaluated in excess of 25 business opportunities and is selectivelypursuing only the very best. The Board is pleased to increase the interim dividend by 5% and I am confidentthat 2005 will see further announcements of our continued growth as proposedtransactions come to fruition. A positive start to trading has been made in thesecond half of the current year." For further information, contact: Adventis Group plcCharles Phillpot, Chief Executive Officer 020 7034 4750 Seymour PierceJohn Depasquale 020 7107 8010 Citigate Dewe RogersonSarah Gestetner, Justin Griffiths, Fiona Mulcahy 020 7638 9571 Chief Executive's StatementOur first twelve months as a publicly quoted company have been extremelyencouraging with not only a significant rise in both turnover and profit, butalso with the achievement of the early part of our long-term strategy throughthe announcement of a significant joint venture and a major acquisition. It is pleasing to note that both continued successful business performance andlong term strategic development have been achieved. This is encouraging for ourfuture business plans and reflects the strength of talent within Adventis.Today, the Group consists of six operating companies in three locations, inLondon and Chesham, employing 85 people providing a broad range of marketingservices to a large range of clients. In January - June 2005 the financial services business has continued to investtime and effort in achieving a place on the marketing supplier roster of majorfinancial institutions and progress has been made in this area with appointmentsby GAB Robins, Invesco Perpetual, ABN AMRO, Savills Private Finance and LincolnFinancial. The acquisition of Affiniti (UK) Ltd, a specialist UK healthcare advertisingagency, was completed in January 2005 and both income and profit have exceededexpectations. It strengthens the group's presence in this profitable market andis likely to act as the vehicle for all future healthcare activity. Affiniti (U.K.) Ltd's clients include Allergan, Sanofi Pasteur MSD, ChironVaccines, Eden Biopharm, Leo Pharma, Napp and Serono. Adgenda Media, the specialist Media Planning & Buying company has enjoyedsubstantial income from launch on March 30th 2005 and is already generatingsales in excess of £700k per month. This niche business has exceededexpectations. After a difficult start to 2005, when comparing like for like businesses andexcluding exceptional items from 2004, our original businesses are nowperforming well in two out of three areas, with the third remaining steady. Adventis Group was a private company in the comparative financial period of2004. Comparisons with earnings per share are not that meaningful, given thedilutive effect of the significant share issue following a placing of 10.53million shares at 28.5p per share on AIM in July 2004, which raised £2.67million net of expenses. Cash balances were temporarily depressed by an increasein working capital in June, in particular with the rapid scale up of AdgendaMedia, but now stand at in excess of £3.2m. 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 the outlook for the balance of 2005 remainsencouraging while recognising the uncertainties of the markets in which weoperate. Our existing businesses continue to perform well and we look forward toannouncing further corporate activity in the near future. Charles PhillpotChief Executive Adventis Group PlcGroup income statement 6 months 6 months 12 months to to to 30 June 30 June 31 December 2005 2004 2004 (restated) (restated) Note £'000 £'000 £'000 -------- --------- ---------TurnoverContinuing operations 7,305 6,121 12,087Acquisitions 3,394 - - 10,699 6,121 12,087 ======== ========= =========Operating profitContinuing operations 320 325 626Acquisitions 151 - - -------- --------- ---------Profit on ordinary activitiesbefore interest 471 325 626 Net interest receivable 45 3 64 Profit on ordinary activitiesbefore taxation -------- --------- ---------and interest on dividendsrecovered 516 328 690 Interest on dividends recovered - 84 84 -------- --------- ---------Profit on ordinary activitiesbefore taxation 516 412 774 Taxation on profit on ordinaryactivities (164) (96) (185)Taxation on interest ondividends recovered - (25) (25) -------- --------- ---------Total taxation (164) (121) (210) Profit for the period 352 291 564 -------- --------- ---------Attributable to: 363 291 563Equity holders of the parentMinority interest (11) - 1 -------- --------- ---------Profit for the period 352 291 564 -------- --------- ---------Earnings per share ("EPS") 3------------------------ ----- -------- --------- ---------Basic earnings per shareAverage number of shares inissue (number) 32,509,248 20,000,000 25,789,474EPS (pence) 1.1 1.5 2.2Fully diluted earnings per shareFully diluted average number ofshares in issue (number) 33,337,748 20,000,000 26,617,974EPS (pence) 1.1 1.5 2.1------------------------ ----- -------- --------- --------- Adventis Group PlcGroup balance sheetAs at 30 June 2005 31 30 June 30 June December 2005 2004 2004 (restated) (restated) Note £'000 £'000 £'000 -------- -------- --------ASSETSNon-current assetsProperty, plant and equipment 207 174 184Goodwill 2,707 259 259 -------- -------- -------- 2,914 433 443 -------- -------- --------Current assetsWork in progress 1 - 5Trade and other receivables 5,698 3,262 2,218Cash and cash equivalents 1,643 496 3,183 -------- -------- -------- 7,342 3,758 5,406 -------- -------- --------Total assets 10,256 4,191 5,849 -------- -------- --------EQUITYCapital and reserves attributable toequity holders ofthe parentShare capital 2 81 50 79Share premium account 2,862 - 2,563Capital redemption reserve 200 200 200Other reserves 20 20 20Retained earnings 1,379 942 1,214 -------- -------- -------- 4,542 1,212 4,076 -------- -------- -------- Minority Interest (13) - 1 -------- -------- -------- Total equity 4,529 1,212 4,077 -------- -------- --------LIABILITIESNon-current liabilitiesObligations under finance leases - due inmore than one year 15 15 10Provisions for other liabilities andcharges - - 5Deferred consideration 1,569 - - -------- -------- -------- 1,584 15 15 -------- -------- --------Current liabilitiesTrade and other payables 3,816 2,877 1,571Current income tax liabilities 174 78 153Borrowings - - 9Obligations under finance leases - due inless than one year 2 9 11Provisions for other liabilities andcharges 26 - 13Deferred consideration 125 - - -------- -------- --------- 4,143 2,964 1,757 -------- -------- ---------Total liabilities 5,727 2,979 1,772 -------- -------- ---------Total equity and liabilities 10,256 4,191 5,849 -------- -------- --------- AdventisGroup PlcGroup statement of changes inequity Share Capital Share Premium redemption Other Retained Shareholders capital account reserve reserves earnings funds - equity £'000 £'000 £'000 £'000 £'000 £'000 ----- ------- ------- -------- -------- -------- Balance at1January 50 - 200 20 799 1,0692004(asrestated) Profit forthe - - - - 291 291period ----- ------- ------- -------- -------- --------Totalrecognisedincome andexpense forthe year - - - - 291 291Dividends - - - - (148) (148) ----- ------- ------- -------- -------- -------- Balance at30 50 - 200 20 942 1,212June 2004 Profit forthe - - - - 272 272period ----- ------- ------- -------- -------- --------Totalrecognisedincome andexpense forthe year - - - - 272 272Dividends - - - - - -Issue ofshare 29 2,563 - - - 2,592capital ----- ------- ------- -------- -------- -------- Balance at31 79 2,563 200 20 1,214 4,076December2004 Profit forthe - - - - 363 363period ----- ------- ------- -------- -------- --------Totalrecognisedincome andexpense forthe year - - - - 363 363Dividends - - - - (198) (198)Issue ofshare 2 299 - - - 301capital ----- ------- ------- -------- -------- -------- Balance at30 81 2,862 200 20 1,379 4,542June 2005 ----- ------- ------- -------- -------- -------- Adventis Group PlcGroup cash flow statement 6 months 6 months 12 months to to to 30 June 30 June 31 December 2005 2004 2004 (restated) (restated) Note £'000 £'000 £'000 ------- ------- -------- Cash generated from operations (687) 216 667Income taxes paid (140) (32) (46)Interest paid (1) (1) (2) ------- ------- --------Net cash (used in)/fromoperating activities (828) 183 619 Cashflows from investingactivitiesInterest received 46 4 65Purchase of property plant andequipment (9) (29) (72)Acquisition of subsidiary 4 (599) ------- ------- --------Net cash used in investmentactivities (562) (25) (7) Cashflows from financingactivitiesDividends paid (130) (64)Repayments of obligations underfinance leases (7) (7) (16)Proceeds of issuing sharecapital 2,592 ------- ------- --------Net cash (used in)/fromfinancing activities (137) (7) 2,512 ------- ------- --------Net (decrease)/increase in cashand cash equivalents (1,527) 151 3,124 Cash and cash equivalents at thebeginning of the period 3,153 29 29 ------- ------- --------Cash and cash equivalents at theend of the period 1,626 180 3,153 ======= ======= ======== 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. This announcementcontains the Group's first results to be published under IFRS. The announcementon 19th August contained all relevant detail on the effect of adoption of IFRSon the Adventis Group and the principal accounting policies under which thegroup operates. The results herein have been adjusted to reflect IFRS. Note 5explains the effect on the half year results. 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 2004 (from which comparative figureshave been extracted) on which the auditors gave an unqualified audit report, hasbeen filed with the Registrar of Companies. Note 2 Share capital 30 June 30 June 1 December 2005 2004 2004 No. shares No. shares No. sharesAuthorisedOrdinary Shares of 0.25pence each 60,000,000 - 60,000,000"A" Ordinary shares of £1 each - 39,630 -"B" Ordinary shares of £1 each - 13,000 -Preference Shares of £1 each - 400,000 - Allotted, called up and fully paidOrdinary Shares of 0.25pence each 32,509,248 31,578,948"A" Ordinary shares of £1 each - 37,000 -"B" Ordinary shares of £1 each - 13,000 -Preference Shares of £1 each - - -- Since the admission to the AIM market of the London Stock exchange on 1 July2004, all of the "B" ordinary shares were converted to "A" ordinary shares inaccordance with the calculation set out in the Articles of Association. The "A"ordinary shares and "B" ordinary shares carried and the ordinary shares carrythe right to one vote per fully paid up share. In accordance with the terms ofthe agreement to acquire Affiniti (UK) Limited 930,300 fully paid ordinaryshares 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. As with all organisations goingthrough a period of raising funds for flotation the earnings per share has beenadversely affected by issuing new share capital. The EPS has moved from 1.5p to 1.1p, even though the distributable profits haveincreased from £291k to £363k, due to the Group issuing a further 12,509,248shares during this period. Note 4 Acquisition of Affiniti (UK) LimitedOn 4th January 2005 the Group acquired 100% of the issued share capital ofAffiniti (UK) Limited for cash and shares totalling: £'000 ------- Property plant and equipment 27Trade Debtors 174Prepayments and accrued income 97Bank and cash balances 331Trade payables (159)Provisions for liabilities and charges (3) Goodwill 2,247Intangible assets 235 -------Total Consideration 2,949 ======= Satisfied byCash 930Issue of Adventis Group ordinary share capital 325Deferred consideration 1,694 ------- 2,949 =======Net cash outflow arising on acquisitionCash consideration 930Bank balances and cash acquired (331) ------- 599 ------- ======= The deferred consideration has been provided in the Group balance sheet for theestimated amounts payable within and over one year. The amounts are contingentupon future earnings and therefore the actual amounts may differ from theestimated amounts included in the balance sheet as at 30 June 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 5.1 Effect of the change to IFRS on the Balance Sheet as at 31 December2004 (unaudited) IFRS 2 UK IFRS3 IFRS3 Share Total GAAP IAS21 Negative based IAS10 impact IFRS 31.12.2004 Goodwill Goodwill payment Dividend of 31.12.2004 IFRS '000 '000 '000 '000 '000 '000 '000------------------ -------- ------- ------- ------- ------- ------ --------ASSETSNon-currentassetsProperty,plant andequipment 184 184Goodwill 200 17 42 59 259 -------- ------- ------- ------- ------- ------ -------- 384 17 42 59 443 -------- ------- ------- ------- ------- ------ --------Current assetsWork inprogress 5 5Trade andotherreceivables 2,218 2,218Cash and cashequivalents 3,183 3,183 -------- ------- ------- ------- ------- ------ -------- 5,406 5,406 -------- ------- ------- ------- ------- ------ --------Total assets 5,790 17 42 59 5,849------------------ -------- ------- ------- ------- ------- ------ --------EQUITYCapital & reservesattributableto equity holdersof the parentShare capital 79 79Other reserves 2,783 2,783Retainedearnings 1,034 17 42 (9) 130 180 1,214 -------- ------- ------- ------- ------- ------ -------- 3,896 17 42 (9) 130 180 4,076Minorityinterest 1 1 -------- ------- ------- ------- ------- ------ --------Total equity 3,897 17 42 (9) 130 180 4,077 ======== ======= ======= ======= ======= ====== ========LIABILITIESNon-currentliabilitiesCreditors dueafter one year 10 10Provisions forliabilitiesand charges 5 5 -------- ------- ------- ------- ------- ------ -------- 15 15 -------- ------- ------- ------- ------- ------ --------CurrentLiabilitiesPayables/creditors due < 1year 1,712 (130) (130) 1,582Current incometaxliabilities 157 (4) (4) 153Borrowings 9 9Provisions forliabilitiesand charges 0 13 13 13 -------- ------- ------- ------- ------- ------ -------- 1,878 9 (130) (121) 1,757 -------- ------- ------- ------- ------- ------ --------Totalliabilities 1,893 9 (130) (121) 1,772 ======== ======= ======= ======= ======= ====== ======== Total equityandliabilities 5,790 17 42 0 0 59 5,849 Note 5.2 Effect of the change to IFRS on the Balance Sheet as at 30 June 2004(unaudited) UK IFRS3 Total GAAP IAS21 impact IFRS 30.06.04 Goodwill of 30.06.04 IFRS Note '000 '000 '000 '000 ASSETSNon-current assetsProperty, plant and equipment 174 174Goodwill 207 52 52 259 ------- ------- ------ ------- 381 52 52 433 ------- ------- ------ -------Current assetsTrade and other receivables 3,262 3,262Cash and cash equivalents 496 496 ------- ------- ------ ------- 3,758 3,758 ------- ------- ------ -------Total assets 4,139 52 52 4,191 ------- ------- ------ ------- EQUITYCapital & reserves attributableto equity holders ofthe parentShare capital 50 50Other reserves 220 220Retained earnings 890 52 52 942 ------- ------- ------ -------Total equity 1,160 52 52 1,212 ------- ------- ------ ------- LIABILITIESNon-current liabilitiesObligations under financeleases 15 15- due in more than one year ------- ------- ------ ------- 15 15 ------- ------- ------ -------Current LiabilitiesTrade and other payables due inless than 1 year 2,877 2,877Current income tax liabilities 78 78Obligations under financeleases 9 9- due in less than one year ------- ------- ------ ------- 2,964 2,964 ------- ------- ------ -------Total liabilities 2,979 2,979 ------- ------- ------ ------- ------- ------- ------ -------Total equity and liabilities 4,139 52 52 4,191------------------------ ----- ------- ------- ------ ------- Note 5.3 Effect of the change to IFRS on the Profit and Loss account for theperiod ended 30 June 2004 (unaudited) UK IFRS3 GAAP IAS21 IFRS 30.06.04 Goodwill 30.06.04 -------- -------- -------- '000 '000 '000 -------- -------- --------TurnoverContinuing operations 6,121 6,121Acquisitions -------- -------- -------- 6,121 6,121 -------- -------- --------Operating ProfitContinuing operations 316 9 325Acquisitions -------- -------- --------Profit on ordinary activities before interest 316 9 325 Net interest receivable 3 3 Profit on ordinary activities before taxation -------- -------- --------and interest on dividends recovered 319 9 328 Interest on dividends recovered 84 84 -------- -------- --------Profit on ordinary activities before taxation 403 9 412 Taxation on profit on ordinary activities (96) (96)Taxation on interest on dividends recovered (25) (25) -------- -------- --------Total taxation (121) (121) -------- -------- --------Profit/(loss) on ordinary activities aftertaxation 282 9 291 Dividends recovered 807 807Dividends paid (891) (891)Dividends paid/proposed (64) (64) -------- -------- --------Total Dividends (148) (148) -------- -------- --------Profit transferred to reserves 134 9 143 -------- -------- -------- Note 5.4 Effect of the change to IFRS on the Profit and Loss account for theperiod ended 31 December 2004 (unaudited) UK GAAP IFRS 2 Total IFRS 12 IFRS3 IFRS3 Share Impact 12 months based months to Goodwill Goodwill payment Dividend of to 31.12.04 IFRS 31.12.04 Note '000 '000 '000 '000 '000 '000 '000 TurnoverContinuingoperations 12,087 12,087 ------- ------ ------ ------- ------ ------ -- -------Turnover 12,087 12,087 ======= ====== ====== ======= ====== ====== == ======= Operatingprofit fromcontinuingoperations 625 17 (3) (13) 1 626 Net interestreceivable 64 64 ------- ------ ------ ------- ------ ------ -- -------Profit onordinaryactivitiesbeforetaxation andinterest ondividendsrecovered 689 17 (3) (13) 1 690 Interest ondividendsrecovered 84 84 ------- ------ ------ ------- ------ ------ -- -------Profit/(Loss)on ordinaryactivitiesbeforetaxation 773 17 (3) (13) 1 774 Taxation onprofit onordinaryactivities (189) 4 4 (185)Taxation oninterest ondividendsrecovered (25) (25) ------- ------ ------ ------- ------ ------ -- -------Total taxation (214) 4 4 (210) ------- ------ ------ ------- ------ ------ -- -------Profit/(loss)on ordinaryactivities forthe financialperiod 559 17 (3) (9) 5 564 ------- ------ ------ ------- ------ ------ -- ------- Minorityinterest (1) (1) ------- ------ ------ ------- ------ ------ -- -------Profit/(loss)on ordinaryactivities 558 17 (3) (9) 5 563 Dividendsrecovered 807 807Dividends paid (891) (891)Dividendspaid/proposed (194) 130 130 (64) ------- ------ ------ ------- ------ ------ -- -------TotalDividends (278) 130 130 (148) ------- ------ ------ ------- ------ ------ -- -------Profit/(loss)transferred toreserves 280 17 (3) (9) 130 135 415 ======= ====== ====== ======= ====== ====== == ======= This information is provided by RNS The company news service from the London Stock Exchange