TIDMDODS
RNS Number : 6794O
Dods Group PLC
09 November 2016
9 November 2016
Dods Group PLC
("Dods" or the "Company")
Interim Results for the six months ended 30 September 2016
(Unaudited)
Financial Highlights
-- Revenue of GBP9.74 million (2015: GBP9.28 million)
-- Gross Profit of GBP3.72 million (2015: GBP3.31 million)
-- Gross Profit margin of 38% (2015: 36%)
-- Adjusted EBITDA of GBP1.53 million (2015: GBP1.01 million)*
-- Cash generated from operations GBP1.40 million (2015: GBP1.11 million)
-- Profit before tax of GBP0.82 million (2015: GBP0.11 million)
-- Adjusted EPS of 0.34 pence (2015: 0.20 pence)**
*EBITDA is calculated as earnings before interest, tax,
depreciation, amortisation of intangible assets acquired through
business combinations, share based payments and non-recurring
items
** Adjusted Earnings per Share (EPS) is calculated by dividing
the adjusted profit (see note 4) attributable to shareholders post
tax by the weighted average number of ordinary shares in issue
during the period
Operational Highlights
-- In the first half of the year, the Group's go-to-market model
was redesigned to enable a strategic approach to sales and client
services, product management and marketing
-- The scaled-up events operation has maintained its service
delivery at the highest level while delivering an expected 18%
increase in revenue on a comparative basis
-- Management undertook the development of a new series of
products and product enhancements during the half year, including
the launch of the new Dods People App and Political Risk
Reports
-- The Group's primary base of operations and registered office
were relocated to The Shard, creating a convenient and conducive
environment for client meetings and demonstrations whilst providing
a more efficient and technologically advanced infrastructure for
our business operations
Cheryl Jones, Chairman of Dods Group PLC, commented:
"The Board is pleased to announce that the Group's interim
results are in line with expectations.
Management's priorities continue to be; realigning market-facing
activities for greater effectiveness and increased market share,
repositioning Dods' resources to further enable efficient product
and service innovation, leveraging the shareholders' investment in
technology, and pursuing acquisitive growth.
The Board of Directors believes that these priorities will
enable the Group to make significant progress to becoming the
outsourcing partner of choice to its markets."
For further information, please contact:
Dods Group PLC
Guy Cleaver, Chief Executive Officer 020 7593 5500
Nitil Patel, Chief Financial Officer
Cenkos
Nicholas Wells 020 7397 8920
Business Review
The first half of the financial year saw the Group perform in
line with the transformational plans for the business. The Group's
revenues grew by 5% to GBP9.7 million (2015: GBP9.3 million). Gross
margins improved from 36% to 38%. Adjusted EBITDA has improved from
GBP1.0 million to GBP1.5 million, an increase of 50%. Profit before
tax of GBP0.8 million (2015: GBP0.1 million) was achieved and cash
generated from operations was GBP1.4 million, in comparison to
GBP1.1 million in the prior comparative period
As outlined in the 2016 annual report, the Group has adopted a
'client for life' philosophy. A significant amount of management's
focus in the first half of the year was spent realigning sales,
product and marketing teams to support improved retention rates and
to enhance the account management experience for our clients. As
these structures are newly established, during the second half of
the year management will focus on leveraging the redesigned teams
to increase market share and accelerate future revenue growth.
Management believes that the future benefits of the new
structures include creating scalability for efficient growth and
the ability to expand our services into new markets allowing Dods
to become the outsourcing partner of choice to our clients.
During the period, the operational sales and service priorities
were to:
- support the planned 18% growth in revenue in the events' portfolio;
- maintain a keen focus to improving the retention of recurring subscriber revenues;
- continue to develop and invest in our digital products whilst
maintaining our print media market share;
- develop a pipeline of new products and product enhancements,
which will be introduced before the end of the financial year;
- launch the new Political Risk service; and
- launch the new Dods People App providing access to our
biographical reference data on mobile devices.
In September, the Group's primary base of operations and
registered office was relocated to The Shard, creating a convenient
and conducive environment for client meetings and demonstrations
whilst providing a more efficient and technologically advanced
infrastructure for our business operations. Management believes
that the new offices will be more conducive to accelerate the
Company's transformation in its business processes, client services
and infrastructure efficiencies.
Management continue to be focused on achieving their objectives
for the current financial year. This includes identifying suitable
acquisitions which will provide enhanced services to our customers
and increased value for our Shareholders.
Guy Cleaver
Chief Executive Officer
Key Financial Information
Three Year Summary - Half Year
------------------------------------------ ------------- ------------- -------------
Six months Six months Six months
ended 30 ended 30 ended 30
September September September
(GBP000s unless specified otherwise) 2016 2015 2014
Revenue 9,740 9,275 8,442
Gross Profit Margin
% 38% 36% 25%
Adjusted EBITDA 1,531 1,008 (54)
Depreciation (124) (160) (58)
Amortisation of intangible assets
and assets acquired through business
combinations (292) (312) (418)
Amortisation of software intangible
assets (172) (155) (578)
------------------------------------------ ------------- ------------- -------------
Adjusted EBIT 943 380 (1,108)
Non-recurring items (42) (251) (75)
Net finance costs (83) (16) -
----------------------------------------- ------------- ------------- -------------
Earnings before tax 818 113 (1,183)
EPS (pence) 0.24 0.03 (0.33)
Adjusted EPS (pence) 0.34 0.20 (0.19)
Cash flow from operations 1,404 1,137 (98)
Cash Balance 7,888 6,977 4,843
----------------------------------------- ------------- ------------- -------------
Three Year Summary - Annual
------------------------------------------ ------------- ------------- -------------
Full Year Full Year Full year
to 31 March to 31 March to 31 March
(GBP000s unless specified otherwise) 2016 2015 2014
Revenue 19,620 18,301 19,775
Gross Profit Margin
% 38% 29% 29%
----------------------------------------- ------------- ------------- -------------
Adjusted EBITDA 2,958 1,205 1,085
Depreciation (230) (228) (225)
Amortisation of intangible assets
and assets acquired through business
combinations (629) (791) (1,026)
Amortisation of software intangible
assets (412) (763) (803)
------------------------------------------ ------------- ------------- -------------
Adjusted EBIT 1,687 (577) (696)
Non-recurring items (544) (1,550) (475)
Adjustments to amortisation of
intangible assets/ assets acquired
through business combinations - (2,781) -
Net finance costs (21) (63) (44)
------------------------------------------ ------------- ------------- -------------
Earnings before tax 1,122 (4,971) (1,488)
EPS (pence) 0.32 (1.38) (0.38)
Adjusted EPS (pence) 0.66 0.13 0.06
Cash flow from operations 3,175 1,449 439
Cash Balance 9,083 5,908 5,291
----------------------------------------- ------------- ------------- -------------
FINANCIAL REVIEW
Income Statement
The Group's revenue from continuing operations increased by 5%
to GBP9.7 million (2015: GBP9.3 million) and gross profit increased
by 12% to GBP3.7 million (2015: GBP3.3 million).
Gross margin increased from 36% to 38% in the period, with
administrative expenses decreasing to 23% of revenues (2015: 25%).
The increase in gross margin is due to an ongoing focus to process
efficiencies and scalability, and the quality of revenue across the
Group.
Adjusted EBITDA was GBP1.5 million (2015: GBP1.0 million).
Operating profit was GBP0.9 million (2015: GBP0.1 million), after
an amortisation charge of GBP0.3 million (2015: GBP0.3 million) for
business combinations and a charge of GBP0.2 million (2015: GBP0.2
million) for intangible assets. Depreciation charge in the period
was GBP0.1 million (2015: GBP0.2 million).
The taxation charge for the period is GBPNil (2015: GBPNil) and
is based on the expected annual tax rate and the assumed use of
accumulated tax losses.
Earnings per share
Basic and diluted loss per share from continuing operations in
the year was 0.24 pence (2015: 0.03 pence) and was based on the
profit for the period of GBP0.8 million (2015: GBP0.1 million) with
a weighted average number of shares in issue during the period of
340,840,953 (2015: 339,770,953).
Dividend
The Board is not proposing a dividend at this time.
Statement of Financial Position
Assets
Non-current assets consisted of goodwill of GBP13.3 million
(2015: GBP13.3 million), intangibles of GBP7.5 million (2015:
GBP8.1 million), software intangibles of GBP1.4 million (2015:
GBP1.5 million), and tangible fixed assets of GBP2.5 million (2015:
GBP0.2 million). The increase in tangible assets reflects the
GBP2.4 million investment by the Group in its new premises.
The Group had a cash balance of GBP7.9 million as at 30
September 2016 (2015: GBP7.0 million). The cash balance is after
the expenditure of GBP2.6 million in investing activities and
includes a deposit of GBP1.3 million (2015: GBPNil) being held in
the Group's name with its bankers.
Equity and Liabilities
Retained profits as at 30 September 2016 were GBP1.0 million
(2015: losses of GBP0.8 million) and total shareholders' equity at
that date was GBP26.6 million (2015: GBP24.7 million).
On 29 March 2016, the Group issued 535,000 new ordinary shares,
pursuant to the exercise of share options. On 4 July 2016, the
Group issued a further 535,000 new ordinary shares, also pursuant
to the exercise of share options. Following the admission of these
new shares to AIM, the Group's issued number of shares increased to
340,840,953 (2015: 339,770,953). Non-current deferred tax liability
was GBP0.8 million (2015: GBP0.8 million) as at 30 September
2016
Cash flows
During the period the Group generated GBP1.4 million from
operations (2015: GBP1.1 million). In addition, the Group expended
GBP2.6 million in investing activities (2015: GBP0.02 million)
primarily on the new premises and as a result net cash and cash
equivalents decreased by GBP1.2 million to GBP7.9 million.
Nitil Patel
Chief Financial Officer
DODS GROUP PLC
CONDENSED CONSOLIDATED INCOME STATEMENT for the six months
ended 30 September 2016
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
30 September 30 September 31 March
2016 2015 2016
Note GBP'000 GBP'000 GBP'000
Revenue 2 9,740 9,275 19,620
Cost of
sales (6,017) (5,962) (12,172)
-------------------------------------------------------- ----- ------------- ------------- -------------
Gross profit 3,722 3,313 7,448
Administrative expenses:
Non-recurring
items 3 (42) (251) (544)
Amortisation of intangible
assets and assets acquired
through business combinations (292) (312) (629)
Amortisation of intangible
assets (172) (155) (412)
Depreciation (124) (160) (230)
Net administrative
expenses (2,191) (2,306) (4,490)
------------------------------------- --------------- ----- ------------- ------------- -------------
Total administrative
expenses (2,821) (3,184) (6,305)
------------------------------------- --------------- ----- ------------- ------------- -------------
Operating profit 901 129 1,143
Finance
income 18 3 26
Financing
costs (101) (19) (47)
-------------------------------------------------------- ----- ------------- ------------- -------------
Profit before
tax 818 113 1,122
Income tax - - (36)
--------------------------- ----------------------- ----- ------------- ------------- -------------
Profit for the
period 818 113 1,086
------------------------------- -------------------- ----- ------------- ------------- -------------
Earnings per
share 4
Basic 0.24 p 0.03 p 0.32 p
Diluted 0.24 p 0.03 p 0.32 p
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for
the six months ended 30 September 2016
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
30 September 30 September 31 March
2016 2015 2016
GBP'000 GBP'000 GBP'000
Profit for the period 818 113 1,086
Items that will be subsequently
reclassified to profit and loss
Exchange differences on disposal
of translation of foreign operations (2) 5 (2)
------------- ------------- ------------
Other comprehensive (loss)/income
for the period (2) 5 (2)
------------- ------------- ------------
Total comprehensive income in the period
attributable to equity holders
of parent company 816 118 1,084
------------- ------------- ------------
DODS GROUP PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 September 2016
Unaudited Unaudited Audited
As at As at As at
30 September 30 September 31 March
2016 2015 2016
GBP'000 GBP'000 GBP'000
Goodwill 13,282 13,282 13,282
Intangible assets 5 8,926 9,601 9,260
Property, plant and
equipment 6 2,516 214 186
Total non-current assets 24,724 23,097 22,728
------------------------------------- ----------------------------- --- --------------------------- --- ----------------
Inventories 67 56 41
Trade and other receivables 2,287 3,709 2,190
Cash 7 7,888 6,977 9,083
Total current assets 10,242 10,742 11,314
------------------------------------- ----------------------------- --- --------------------------- --- ----------------
Total assets 34,966 33,839 34,042
------------------------- ---------- ----------------------------- --- --------------------------- ---
Capital and reserves
Issued capital 17,088 17,078 17,083
Share premium 8,105 8,009 8,057
Other reserves 409 409 409
Retained profit 1,039 (769) 221
Share option reserve 27 47 27
Translation reserve (66) (61) (68)
Total equity 26,602 24,713 25,729
------------------------------------- ----------------------------- --- --------------------------- --- ----------------
Income tax payable - 44 5
Trade and other payables 7,525 8,274 7,469
------------------------------------- ----------------------------- --- --------------------------- --- ----------------
Total current liabilities 7,525 8,318 7,474
------------------------------------- ----------------------------- --- --------------------------- --- ----------------
Deferred tax liability 839 808 839
------------------------- ---------- ----------------------------- --- --------------------------- ---
Total non-current liabilities 839 808 839
Total equity and liabilities 34,966 33,839 34,042
------------------------------------- ----------------------------- --- --------------------------- --- ----------------
DODS GROUP PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the six months
ended 30 September 2016
Share Total
Share Share Merger Retained Translation option shareholders'
capital premium reserve earnings reserve reserve funds
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 April 2015 17,078 8,009 409 (882) (66) 47 24,595
Total comprehensive
loss
Profit for the year - - - 1,086 - - 1,086
Other comprehensive
loss
Currency translation
differences - - - - (1) - (2)
Transactions with
owners
Exercise of share
options 5 48 - 430 - (430) 53
Lapsed option transfer - - - 17 - (17) -
Share based payment - - - - - (3) (3)
-------- ---------- -------- --------- ------------ -------- --------------
At 1 April 2016 17,083 8,057 409 221 (68) 27 25,729
Total comprehensive
profit
Profit for the period - - - 818 - - 818
Transactions with
owners
Exercise of share
options 5 48 - - - - 53
Lapsed option transfer - - - - - - -
Other comprehensive
profit
Currency translation
differences - - - - 2 - 2
-------- ---------- -------- --------- ------------ -------- --------------
At 30 September 2016 17,088 8,105 409 1,039 (66) 27 26,602
-------- ---------- -------- --------- ------------ -------- --------------
DODS GROUP PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS for the six months
ended 30 September 2016
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
30 September 30 September 31 March
2016 2015 2016
GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Profit for the period 818 113 1,086
Depreciation of property,
plant and equipment 124 160 230
Amortisation of intangible assets
acquired through business combinations 292 312 629
Amortisation of other intangible
assets 172 155 412
Share based payments credit - - (3)
Net finance costs 81 - 21
Income tax credit - - 36
---------------------------------------------- ------------- ------------- ---------------------------
Operating cash flows before
movements in
working capital 1,487 740 2,411
Change in inventories (26) 18 33
Change in receivables (96) (738) 781
Change in payables 39 1,117 300
---------------------------------------------- ------------- ------------- ---------------------------
Net cash generated by operations 1,404 1,137 3,525
Income tax paid - (30) (30)
Net cash from operating activities 1,404 1,107 3,495
----------------------------------------- ------- ------------- ------------- ---------------------------
Cash flows from investing
activities
Interest and similar income
received 18 - 26
Addition to property, plant
and equipment (64) (22) (108)
Additions to new building (2,371) -
Additions to intangible
assets (137) - (244)
Net cash (used in) investing
activities (2,553) (22) (326)
---------------------------------------------- ------------- ------------- ---------------------------
Cash flows from financing
activities
Proceeds from issue of
share capital 53 3 54
Foreign exchange forward
contracts (90) - -
Interest and similar expenses
paid (9) (19) (47)
Net cash (used in)/from
financing activities (46) (16) 7
---------------------------------------------- ------------- ------------- ---------------------------
Net (decrease)/increase in cash
and cash equivalents (1,195) 1,069 3,176
Opening cash and cash equivalents 9,083 5,908 5,908
Effect of exchange rate fluctuations
on cash held - - (1)
----------------------------------------- ------- ------------- ------------- ---------------------------
Closing cash and cash equivalents 7,888 6,977 9,083
---------------------------------------------- ------------- ------------- ---------------------------
DODS GROUP PLC
Notes to the condensed consolidated interim financial statements
30 September 2016
1 Statement of Accounting Policies
Basis of preparation
This condensed set of financial statements has been prepared in
accordance with IAS 34: Interim Financial Reporting as adopted by
the EU. The annual financial statements of the Group are prepared
in accordance with International Financial Reporting Standards
(IFRSs) as adopted by the EU. As required by AIM Rules, the
condensed set of financial statements has been prepared, and
applying accounting policies and presentation that were applied in
the preparation of the Group's published consolidated financial
statements for the year-ended 31 March 2016.
The comparative figures for the year ended 31 March 2016 have
been extracted from the Group's statutory accounts for that
financial period. Those accounts have been reported on by the
company's auditor and delivered to the registrar of companies. The
report of the auditor was (i) unqualified, (ii) did not include a
reference to any matters to which the auditor drew attention by way
of emphasis without qualifying their report, and (iii) did not
contain a statement under section 498(2) or (3) of the Companies
Act 2006.
The taxation charge for the six months ended 30 September 2016
is based on the expected annual tax rate, and the assumed use of
accumulated tax losses.
The condensed set of interim financial statements have been
prepared on a going concern basis and were approved by the Board on
8 November 2016.
2 Segmental information
The Group considers that it has one operating business segment.
It monitors revenue by product and activity to determine the
overall performance of the segment.
Principal activities are as follows:
The Group's principal activity is the curation and aggregation
of high quality information and data, and the provision of services
through a combination of online information and digital services,
training courses, conferences and events publications, and other
media. The Group operates primarily in the UK, Belgium and France
and has market-leading positions in much of its portfolio. These
products and services can be paired and bundled to provide
comprehensive solutions.
No client accounted for more than 10% of total revenue. The
following table provides an analysis of the Group's performance by
geographical market.
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
30 September 30 September 31 March
2016 2015 2016
GBP'000 GBP'000 GBP'000
Revenue
United Kingdom 7,823 7,232 15,376
Continental Europe and rest of
the world 1,917 2,043 4,244
9,740 9,275 19,620
------------- ------------- ------------
3 Non-recurring items
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
30 Sept 2016 30 Sep 2015 31 Mar 2016
---------------------------------- -------------- ------------- -------------
GBP'000 GBP'000 GBP'000
Redundancy and people related
costs 5 242 300
Payments in lieu of notice,
compensation for loss of office
and associated costs 28 - 218
Holyrood office move - 9 26
London office move 9 - -
42 251 544
---------------------------------- -------------- ------------- -------------
4 Earnings per share
Basic earnings per share is calculated by dividing the profit
attributable to shareholders, by the weighted average number of
Ordinary shares in issue during the period.
An adjusted earnings per share is calculated by dividing the
adjusted profit attributable to shareholders (detailed below) by
the weighted average number of Ordinary shares in issue during the
period.
Diluted earnings per share is calculated by adjusting the
weighted average number of Ordinary shares, assuming conversion of
all dilutive share options to Ordinary shares
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
30 Sept 2016 30 Sep 2015 31 Mar 2016
------------------------------------- -------------- ------------- -------------
GBP'000 GBP'000 GBP'000
Profit attributable to shareholders 818 113 1,086
Add: non-trading items net
of tax 42 251 544
Add: amortisation of intangible
assets acquired through business
combinations 292 312 629
(Deduct): share based payment
(credit) - - (3)
-------------------------------------- -------------- ------------- -------------
Adjusted profit on continuing
operations 1,152 676 2,256
-------------------------------------- -------------- ------------- -------------
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
30 Sept 2016 30 Sep 2015 31 Mar 2016
---------------------------------- ---------------- ------------- -------------
Ordinary Ordinary
Ordinary shares shares shares
Weighted average number of
shares
In issue during the period
- basic 340,840,953 339,770,953 340,305,953
Share options 1,250,000 3,620,000 1,785,000
----------------------------------- ---------------- ------------- -------------
Weighted average number of
shares for diluted earnings
per share 342,090,953 343,390,953 342,090,953
----------------------------------- ---------------- ------------- -------------
Earnings per share - ordinary
shares (pence) 0.24 p 0.03 p 0.32 p
Adjusted earnings per ordinary
share (as defined above) 0.34 p 0.20 p 0.66 p
Earnings per share on continuing
operations
Profit per ordinary share
- basic 0.24 p 0.03 p 0.32 p
Profit per ordinary share
- diluted 0.24 p 0.03 p 0.32 p
----------------------------------- ---------------- ------------- -------------
5 Intangible assets
Assets acquired
through
business combinations Software Total
GBP'000 GBP'000 GBP'000
Cost
At 1 April 2015 24,215 3,814 28,029
Additions - internally generated - 236 236
---------------------- --------- --------
At 1 April 2016 24,215 4,050 28,265
Additions - internally generated - 137 137
---------------------- --------- --------
At 30 September 2016 24,215 4,187 28,402
====================== ========= ========
Amortisation
At 1 April 2015 15,738 2,234 17,972
Charged in year 629 412 1,041
---------------------- --------- --------
At 1 April 2016 16,367 2,646 19,013
Charged in period 292 172 464
---------------------- --------- --------
At 30 September 2016 16,659 2,818 19,477
====================== ========= ========
Net book value
At 1 April 2015 8,477 1,580 10,057
---------------------- --------- --------
At 1 April 2016 7,848 1,404 9,252
---------------------- --------- --------
At 30 September 2016 (unaudited) 7,556 1,370 8,926
---------------------- --------- --------
6 Property, plant and equipment
Equipment
Leasehold and
improvements Motor vehicles Total
GBP'000 GBP'000 GBP'000
Cost
At 1 April 2015 567 582 1,149
Additions 75 32 107
------------- --------------- --------
At 1 April 2016 642 614 1,256
Additions 2,391 64 2,455
------------- --------------- --------
At 30 September 2016 3,033 678 3,711
============= =============== ========
Depreciation
At 1 April 2015 412 429 841
Charge for the year 130 100 230
------------- --------------- --------
At 1 April 2016 542 529 1,071
Charge for the period 74 50 124
------------- --------------- --------
At 30 September 2016 616 579 1,195
------------- --------------- --------
Net book value
At 1 April 2015 155 153 308
------------- --------------- --------
At 1 April 2016 100 85 185
------------- --------------- --------
At 30 September 2016 (unaudited) 2,417 99 2,516
------------- --------------- --------
The Group did not have any assets recognised from obligations
under finance leases in either the current period or prior
year.
7 Cash and Cash Equivalents
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
30 Sept 2016 30 Sep 2015 31 Mar 2016
-------------------------- -------------- ------------- -------------
GBP'000 GBP'000 GBP'000
Cash at bank and in hand 7,888 6,977 9,083
7,888 6,977 9,083
-------------------------- -------------- ------------- -------------
Included in the cash balance is a cash deposit held in the
Group's name with its bankers of GBP1.27m (2015: GBPNil) in
relation to the new premises of the Group.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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