Stratmin Global Resources Regulatory News (STGR)

27 Sep 2007 07:03

Interactive Prospect TargetingHdgs27 September 2007 Press Release 27 September 2007 Interactive Prospect Targeting Holdings Plc ("IPT" or "the Company" or "the Group") Interim Results Interactive Prospect Targeting Holdings Plc (AIM:IPH), Europe's largest directonline marketing group, today announces its Interim Results for the six monthsended 30 June 2007. Highlights • Revenue increased by 57% to £15.4m (June 2006: £9.8m);• Profit on ordinary activities before tax was £0.7m (June 2006: £1.7m);• Adjusted earnings before interest, taxation, depreciation and amortisation (adjusted EBITDA)* was £1.9m (June 2006: £2.5m) - see note 3;• Adjusted earnings per share* was 1.3p (June 2006: 3.9p) - see note 5. Basic earnings per share was 0.7p (June 2006: 3.6p);• Acquisition of NP6 SAS, a leading email broadcasting company in France, was completed in June 2007 for a maximum consideration of €9.4m;• The second half of the year has begun on a positive note with strong organic revenue growth compared to the same period in the prior year; and• In August 2007, IPT announced that it was in discussions with certain parties which may or may not lead to an offer being made for the Company. The following descriptions are applied consistently throughout the interimreport: *Adjusted EBITDA is operating profit before goodwill reduction expense,amortisation of acquisition related intangible assets, amortisation ofnon-acquisition related intangible assets, share-based payment charges, employeeholiday entitlement charges and depreciation on property, plant and equipment -see note 3. **Adjusted earnings per share is profit for the period before goodwill reductionexpense, amortisation of acquisition related intangible assets, share-basedpayment charges, employee holiday entitlement charges or income adjusted for thetax effect of these items. Commenting on the Interim Results, Lionel Thain, Chief Executive Officer, said:"As previously announced, the Company encountered product delivery issuesearlier in the year which have been fully resolved and we are pleased to haverecovered well. The actions taken by management have significantly strengthenedIPT's technology and operational processes. Furthermore, the successfulacquisition of NP6 SAS has strengthened our position in France and together withour French subsidiary Directinet provides a major foothold in the rapidlyexpanding French online marketing sector. Outside from the UK specific deliveryissue, we have and continue to experience strong trading conditions and enterthe second half with confidence that we can sustain our position as leader inthe online direct marketing market. - Ends - For further information: IPT Holdings plc Lionel Thain, Chief Executive Tel: +44 (0) 20 7932 4101 Canaccord Adams Mark Williams, Corporate Finance Tel: +44 (0) 20 7050 6500 mark.williams@canaccordadams.com www.canaccordadams.com Media enquiries: Abchurch Charlie Jack / Hugo Jenkins Tel: +44 (0) 20 7398 7700 hugo.jenkins@abchurch-group.com www.abchurch-group.com Chairman's Statement Results Revenue increased by 57% to £15.4m in the 6 months ended June 2007 (June 2006:£9.8m), with strong growth in France. Adjusted EBITDA in the 6 months ended June 2007 was £1.9m (June 2006: £2.5m) -see note 3. Operating profit in the 6 months ended June 2007 was £0.6m (June 2006: £1.7m).Profit after tax for the period was £0.3m (June 2006: £1.3m) and was impacted byone-off charges of £0.1m relating to the restatement of deferred tax assets,imputed top-up tax on dividends paid from a French subsidiary (Directinet) toIPT Ltd in the UK and the impact of the overseas tax rate, which is higher thanthat in the UK. Basic earnings per share for the period were 0.7p (June 2006:3.6p). Overview In 2006 online marketing continued to grow at a quick pace. The UK and Francecontributed approximately 53% of the European online spending, €3 billion (38%)in the UK and €1 billion (15%) in France. According to eMarketer, thesecountries will maintain an accelerated growth in online expenditure with growthof 21% annually, reaching a projected €8.9 billion by 2010. IPT's operations in France continued to expand in the first half year and theacquisition of NP6 will allow the Group to offer an enhanced service to ourgrowing customer base in Europe. The first half of 2007 has seen IPT face a specific challenge arising fromproduct delivery issues with one internet based e-mail service provider.Although management has reacted to this issue, it has impacted on the financialperformance of IPT during this period. Management have taken a number of steps to resolve this issue which havesignificantly strengthened IPT's technology and operational processes and thesuccess of these measures has resulted in IPT reporting operating results forthe first half of 2007 in line with revised expectations published in March2007. Dividends The directors do not recommend the payment of a dividend (June 2006: nil). Current trading and outlook The second half of the year has begun on a positive note with strong organicrevenue growth compared to the prior year. IPT has achieved its revisedobjectives for the first half-year and views the remainder of 2007 with apositive outlook. It retains a leading position in the provision of onlinedirect marketing services in both the UK and France. Ongoing discussions On 22 August 2007, the Company announced that it was in discussions with certainparties which may or may not lead to an offer being made for the Company.Discussions are ongoing and a further announcement will be made in due course. Colin LloydChairman26 September 2007 CONSOLIDATED INCOME STATEMENTFOR THE SIX MONTHS ENDED 30 JUNE 2007 Continuing operations 6 months ended 6 months ended Year ended 31 30 June 2007 30 June 2006 December 2006 Note Unaudited Unaudited Audited £'000 £'000 £'000 Revenue 15,396 9,800 24,066 Cost of sales (5,029) (2,163) (5,220) Gross profit 10,367 7,637 18,846 Administrative expensesGoodwill reduction expense (20) (88) (189)Amortisation of acquisition related intangible assets (223) (88) (347)Share-based payment charges (67) (29) (73)Employee holiday entitlement (charge)/income (49) 31 69Other administrative expenses (9,362) (5,813) (14,094) Total administrative expenses (9,721) (5,987) (14,634) Operating Profit 646 1,650 4,212 Investment revenues 60 97 177 Profit on ordinary activities before tax 706 1,747 4,389 Tax 4 (375) (466) (1,073) Profit for the period from continuing operations,attributable to equity holders of the parent 331 1,281 3,316 Earnings per share from continuing operations 5 Basic (pence) 0.7 3.6 8.4Diluted (pence) 0.7 3.4 8.1 CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSESFOR THE SIX MONTHS ENDED 30 JUNE 2007 6 months ended 6 months ended Year ended 31 30 June 2007 30 June 2006 December 2006 Unaudited Unaudited Audited £'000 £'000 £'000 Tax on items taken directly to equity (102) 435 293 Net income recognised directly in equity (102) 435 293 Profit for the period 331 1,281 3,316 Total recognised income for the period 229 1,716 3,609 Attributable to:Equity holders of the parent 229 1,716 3,609 CONSOLIDATED BALANCE SHEETAT 30 JUNE 2007 Note 30 June 2007 30 June 2006 31 December 2006 Unaudited Unaudited Audited £'000 £'000 £'000Non-current assetsGoodwill 29,911 22,205 22,984Other intangible assets 6,298 4,884 4,915Property, plant and equipment 849 647 797Deferred tax asset 537 1,618 759 37,595 29,354 29,455 Current assetsTrade and other receivables 11,679 7,435 8,499Cash and cash equivalents 5,238 6,693 7,455 16,917 14,128 15,954 Total assets 54,512 43,482 45,409 Current liabilitiesTrade and other payables (6,751) (5,828) (5,826)Current tax liabilities (396) (638) (491)Obligations under finance leases - (1) -Bank loans and overdrafts (242) (83) (242)Provisions (3,819) (1,723) (2,020) (11,208) (8,273) (8,579) Non-current liabilitiesOther payables - (332) -Bank loans and overdrafts (4,357) - -Deferred tax liability (1,309) (948) (866)Long-term provisions (3,610) (2,911) (3,205) (9,276) (4,191) (4,071) Total liabilities (20,484) (12,464) (12,650)Net assets 34,028 31,018 32,759 EQUITYCalled up share capital 6 179 177 177Share premium account 6 24,475 23,437 23,437Treasury reserve 6 (317) (72) (215)Share option reserve 6 202 91 135Other reserves 6 2,369 2,386 2,334Retained earnings 6 7,120 4,999 6,891 Total equity 6 34,028 31,018 32,759 This interim report was approved by the Board of Directors on 26 September 2007. Signed on behalf of the Board Eoin RyanDirector CONSOLIDATED CASH FLOW STATEMENTFOR THE SIX MONTHS ENDED 30 JUNE 2007 Notes 6 months ended 6 months ended Year ended 31 30 June 2007 30 June 2006 December 2006 Unaudited Unaudited Audited £'000 £'000 £'000 Net cash from operating activities 7 (380) 2,208 4,780 Investing activitiesInterest received 60 97 177Purchases of plant, property and equipment (248) (374) (583)Purchases of other intangibles - data (660) (592) (1,646)Deferred consideration on acquisitions (1,064) - -Acquisition of subsidiary undertaking (4,214) (11,100) (11,361) Net cash used in investing activities (6,126) (11,969) (13,413) Financing activitiesNew bank loans raised 4,357 - -Repayment of loans and overdrafts on acquisitions - - (169)Proceeds on issue of shares - 11,027 11,028Purchase of own shares (102) - (143)Repayment of obligations under finance leases - (5) (5) Net cash from financing activities 4,255 11,022 10,711 Net (decrease)/increase in cash and cash equivalents (2,251) 1,261 2,078 Cash and cash equivalents at the beginning of the 7,455 5,414 5,414period Effect of foreign exchange rate changes 34 18 (37) Cash and cash equivalents at the end of the period 5,238 6,693 7,455 NOTES TO THE CONSOLIDATED INCOME REPORTFOR THE SIX MONTHS ENDED 30 JUNE 2007 1. Basis of preparation The Group prepares consolidated financial statements in accordance withInternational Financial Reporting Standards ("IFRS") including InternationalAccounting Standards ("IAS") and interpretations issued by the InternationalAccounting Standards Board ("IASB") and its committees, and as interpreted byany regulatory bodies applicable to the Group, as adopted for use in theEuropean Union and in compliance with Article 4 of the EU IAS Regulation. Theinterim report is unaudited and has been prepared on the basis of the accountingpolicies set out in the financial statements for the year ended 31 December2006. 2. Publication of non-statutory accounts The financial information for the six months ended 30 June 2007 and 30 June 2006has not been audited and does not constitute full financial statements withinthe meaning of Section 240 of the Companies Act 1985. The financial information relating to year ended 31 December 2006 does notconstitute full financial statements within the meaning of Section 240 of theCompanies Act 1985. This information is an extract of the Group's statutoryaccounts for that period which have been filed with the Registrar of Companies.Those statutory accounts which were prepared in accordance with InternationalFinancial Reporting Standards, received an unqualified report and did notcontain statements under section 237(2) or (3) of the Companies Act 1985. 3. Adjusted EBITDA 6 months ended 6 months ended Year ended 31 30 June 2007 30 June 2006 December 2006 Unaudited Unaudited Audited £'000 £'000 £'000 Operating profit 646 1,650 4,212 Add back:- goodwill reduction expense 20 88 189- amortisation of acquisition related intangible assets 223 88 347- amortisation of non acquisition related intangible 689 449 1,134assets- share-based payment charges 67 29 73- employee holiday entitlement charge/(income) 49 (31) (69)- depreciation on property, plant and equipment 236 214 350 Adjusted EBITDA 1,930 2,487 6,236 4. Tax The tax expense comprises: 6 months ended 6 months ended Year ended 31 30 June 2007 30 June 2006 December 2006 Unaudited Unaudited Audited £'000 £'000 £'000Current taxUK corporation tax (50) (446) (198)French corporation tax (307) - (282)Adjustment in respect of prior years - - 88Foreign tax credit 50 - -Released through equity (29) - (705) (336) (446) (1,097) Deferred taxDecrease in recoverable deferred tax asset primarilyrelating to historical losses (111) (47) (89)Decrease in deferred tax liability primarily relating tointangibles 91 27 113Adjustment in respect of prior years (19) - - (39) (20) 24 Total tax expense (375) (466) (1,073) Tax expense includes one-off charges relating to the restatement of deferred taxassets and imputed top-up tax on dividends paid from a French subsidiary,Directinet, to IPT Ltd in the UK of £0.1m. 5. Earnings per share The calculation of earnings per share is based on the following profits andnumber of shares: 6 months ended 6 months ended Year ended 30 June 2007 30 June 2006 31 December 2006 Unaudited Unaudited Audited Profit Number of Pence Profit Number of Pence Profit Number of Pence shares per shares per shares per £'000 '000 share £'000 '000 share £'000 '000 share Adjusted earnings per share 593 44,431 1.3 1,399 35,790 3.9 3,749 39,399 9.5 Reconciliation to profitfor the period: - goodwill reduction (20) - - (88) - (0.2) (189) - (0.4)expense- amortisation of -acquisition relatedintangible assets (223) - (0.5) (88) (0.2) (347) - (0.9)- share-based payments (67) - (0.2) - - - (73) - (0.2)- employee holiday -entitlement (49) - (0.1) 31 0.1 69 - 0.1- tax effect of the above 97 - 0.2 27 - - 107 - 0.3items Basic earnings per share 331 44,431 0.7 1,281 35,790 3.6 3,316 39,399 8.4 Impact of share options - 307 - - 2,392 (0.2) - 1,685 (0.3) Diluted earnings per share 331 44,738 0.7 1,281 38,182 3.4 3,316 41,084 8.1 6. Reconciliation of movement in total equity Called up Share Share share premium Treasury Option Other Retained Total capital account reserve reserve reserve earnings equity £'000 £'000 £'000 £'000 £'000 £'000 £'000 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited At 1 January 2007 177 23,437 (215) 135 2,334 6,891 32,759Issue of shares 2 1,038 - - - - 1,040Total income recognised for theperiod - - - - - 229 229Purchase of own shares - - (123) - - - (123)Share options exercised - - 21 - - - 21Share-based payment - - - 67 - - 67transactionsTranslation reserve - - - - 35 - 35 At 30 June 2007 179 24,475 (317) 202 2,369 7,120 34,028 7. Reconciliation of operating profit to net cash (outflow)/inflow from operating activities 6 months ended 6 months ended Year ended 31 30 June 2007 30 June 2006 December 2006 Unaudited Unaudited Audited £'000 £'000 £'000 Operating profit 646 1,651 4,212 Depreciation, amortisation and goodwill reduction expense 1,168 839 2,020Share based payments expense 67 29 73(Decrease)/increase in receivables (2,170) 384 17Increase/(decrease) in payables 197 (680) (1,342)Taxation paid (288) (15) (200) Net cash (outflow)/inflow from operating activities (380) 2,208 4,780 8. Acquisitions in the period Real World Customer Experience Limited On 1 February 2007, the Group acquired the entire issued share capital of RealWorld Customer Experience Limited for a maximum consideration of £2.5m. Theprovisional fair value of net assets acquired was £0.4m giving rise to goodwillon acquisition of £2.1m. The consideration was satisfied as follows: Unaudited £'000 Cash consideration 963Provision for payments due on earn-out agreement 1,336Costs of acquisition 246 2,545 8. Acquisitions in the period (continued) NP6 SAS On 1 February 2007, the Group acquired the entire issued share capital of NP6SAS for a maximum consideration of €9.4m (£6.3m). The provisional fair value ofnet assets acquired was £1.8m giving rise to goodwill on acquisition of £4.5m.The consideration was satisfied as follows: Unaudited £'000 Cash consideration 3,351Provision for payments due on earn-out agreement 2,731Costs of acquisition 265 6,347 9. Events after the balance sheet date Between 18 July 2007 and 26 July 2007, the Group purchased 110,000 ordinary shares in the capital of the Group. The Group intends to hold the shares in Treasury. -Ends- This information is provided by RNS The company news service from the London Stock Exchange