TIDMBONH
RNS Number : 2835R
Bonhill Group PLC
29 June 2020
29 June 2020
Bonhill Group plc
("Bonhill", the "Company" or the "Group")
AGM Statement
and
Directorate Changes
AGM Statement
Bonhill Group plc (AIM: BONH), a leading B2B media business
specialising in three key areas: Business Insight, Events and Data
& Analytics, is holding its Annual General Meeting later this
morning ("AGM"). In order to comply with the UK Government's
COVID-19 measures which restricts, amongst other things, public
gatherings of people, the AGM is being convened as a 'closed
meeting' with a quorum of two and other shareholders will not be
permitted entry on the grounds of safety.
T he Company provides the following statement ahead of the
AGM:
"We are pleased to announce that the Group is trading marginally
ahead of the Board's expectations released on 9 April 2020, as it
continues to work remotely to deliver its global capabilities. The
safety of the Group's staff remains a key priority and currently we
are not expecting anyone outside of the Hong Kong office to return
to their workplace until September 2020 at the earliest.
The impact of COVID-19 has meant that any revenue originally
planned from Events has no longer been achievable and therefore the
Company has been trading solely on its digital and data revenues.
In order to mitigate the impact of this, in the first half of the
year, the Company has undertaken a range of cost saving
initiatives, including a redundancy programme across all of the
regions in which it operates, the use of the furlough scheme in the
UK and a reduction in other overheads. Overall, these measures have
reduced headcount by 13 and resulted in annualised savings in the
Company's fixed cost base of GBP1.8m.
Our cost-saving initiatives, flexible adaptation to evolving
market conditions and a forward-looking approach to customer
solutions were, as previously announced, designed to deliver
approximately GBP20 million of revenues and a small positive EBITDA
contribution in the year ending 31 December 2020. Given current
trading, further details of which are set out below, the Board
currently expects to deliver a small improvement on that position
for the year.
The Company has also been focusing in Q2 on improving its
working capital position, reducing debtors by approximately GBP2.0
million and collecting approximately GBP1.6 million of cash. At 25
June 2020, the Company had a cash balance of approximately GBP3.8
million, reflecting the receipts from both the net proceeds of the
recent equity fundraising (GBP2.3m) and the previously announced US
Paycheck Protection Programme ("PPP") ($1.1m). The Company's
application for forgiveness of the PPP loan will be made in the
second half of the year which, if successful, is expected to result
in $0.9 million of the original $1.1m being forgiven. The PPP
requires US staff numbers to be maintained, and therefore replaces
the Company's previously planned US payroll cost savings. In
addition, the Company has made an application for a UK Coronavirus
Business Interruption Loan Scheme ("CBILS") loan with its principal
bank.
Current Trading
The business has continued to see good levels of activity in
each of its major markets.
Our US Business is trading ahead of its revised forecast with Q2
revenues up by approximately 20% on Q1. US digital, in particular,
is currently trading 29% ahead of its Q2 forecast. The US Business
expects to see a reduction of only 20% in year-on-year sales with
$5.0 million of sales required to hit the year's forecast. This
looks to be achievable given the current pipeline. There is an
encouraging level of activity in the US asset management and
financial advisor markets which bodes well for the US Business'
performance in the second half of the year.
In the UK, Last Word Media's non-event revenues in the year to
May are only down 7% on last year with strong performances from
Last Word Create, the new content marketing solutions brand, ESG
Clarity and Portfolio Adviser. In Last Word Media Asia, digital
revenues in the year to date are up 20% on 2019. The majority of
Last Word Media's (and the Group's) Events have been rescheduled
either to a virtual format or to later in the year. In total, since
the start of 2020, 52 events have been cancelled, 35 events have
moved to a virtual format and 18 new virtual events have been
organised. The current expectation is that only small live events
(less than 30 attendees) will be held and only in the final four
months of 2020. Many of these have been moved to venues outside
central London to enable easier travel and social distancing
protocols to be observed. Last Word Media has total booked orders
so far this year of GBP5.4 million with another GBP2.9 million
required to achieve its annual sales forecast.
The Company's UK Media assets, comprising Small and Growth
Business, What Investment, Growth Company Investor and Information
Age, have continued to see a strong performance in the first six
months of the year. They have already booked orders in excess of
2019's totals and have achieved their original, pre-COVID-19, Q1
and Q2 budgets. The business unit is on track to deliver its full
year budget with current booked orders equating to 87% of its
annual budget. Its strength has been due to a broader customer base
and the adoption of a wider range of products away from a previous
reliance on events and digital revenues. This successful template
of transitioning to a customer focused solutions provider will be
rolled out across the rest of the Group in the second half of the
year.
Bonhill Diversity has seen the largest impact of COVID-19, being
principally an events-led operation. We have cancelled all
large-scale events for the remainder of the year with the exception
of Women in IT, Singapore which is scheduled to take place in
November. We have moved two awards into a digital format and have
maintained the presence of this key brand with nine virtual summits
due to be held during the second half of the year across three
continents. There remains continued support for the Women in IT and
Women in Finance brands. The brand's 2020 budget has been reduced
by 55% and is currently at 85% of the revised budgeted sales.
Operationally, the Group's employees continue to work remotely
with great success and this period has seen many internal process
improvements, a far greater degree of international collaboration
and the sharing of best practice. The investments we have made in
the technology platform have enabled a stronger performance from
our digital assets and we have seen on average a 15% improvement in
audience numbers in our core brands in the three months since
lockdown began. This period has also enabled us to finalise some of
our major infrastructure projects and we will complete our Group
wide CRM project by September 2020.
We recognise the ongoing risk that the pandemic creates, not
least the potential risk of a second spike in key regions, but our
diverse geographic exposure, reduced cost base and new virtual
capabilities will help to mitigate that. Despite all of the ongoing
uncertainty, we look forward to providing a further update at the
time of the release of the Company's interim results in
mid-September."
Directorate Changes
The Company also announces that Fraser Gray, Non-Executive
Director of the Company, has resigned as a director of the Company
with effect from the conclusion of the AGM.
The Group is pleased to announce the appointment of Jon Kempster
as a Non-Executive Director with effect from the conclusion of the
AGM. Jon will assume the role of Chair of the Company's Audit
Committee and will also join the Remuneration and Nomination
committees.
Jon is currently a Non-Executive Director and Audit Committee
Chair at Ted Baker plc and Redcentric plc and is a Trustee of the
Delta plc pension scheme. His career has included Board positions
at Delta plc, Fii Group plc, Linden plc, Low & Bonar plc,
Frasers Group plc, Utilitywise plc and Wincanton plc. Jon qualified
as a Chartered Accountant with Price Waterhouse in 1990 and has a
BA (Hons) in Business Studies from the University of Liverpool.
Further information in accordance with paragraph (g) of Schedule
Two of the AIM Rules for Companies is set out below.
Neil Sachdev, Non-Executive Chairman of Bonhill, commented:
"We are delighted that Jon is joining the Board following
today's AGM. He brings with him a wealth of relevant public company
experience.
"I would also like to take this opportunity, on behalf of the
Board, to thank Fraser for his counsel and contribution to the
Board's deliberations during his time at the Company. We wish him
well for the future."
For further enquiries please contact:
Bonhill Group plc +44 (0)20 7250 7035
Simon Stilwell, Chief Executive
David Brown, Group Finance Director
Shore Capital (Nominated Adviser and Joint
Broker) +44 (0)20 7408 4080
Tom Griffiths
David Coaten
Canaccord Genuity Limited (Joint Broker)
Bobbie Hilliam
Adam James
Georgina McCooke +44 (0)20 7523 8000
Houston (PR Adviser)
Alexander Clelland +44 (0)20 3701 7660
Regulatory disclosures (in accordance with Rule 17 and Schedule
Two paragraph (g) of the AIM Rules for Companies)
Save for the information set out above and below, there are no
further disclosures to be made in accordance with Rule 17 and
Schedule Two paragraph (g) of the AIM Rules for Companies in
respect of the appointment of Jonathan "Jon" Kempster, aged 57. Mr.
Kempster does not hold an interest in the Company's share
capital.
Current Directorships
Delta Pension Nominees Limited
Portcentric Solutions Limited
Redcentric plc
Ted Baker plc
Past Directorships (within 5 Years)
Beardsley Realisations 1 Limited (Previously Energy Information
Centre Limited)
Beardsley Realisations 2 Limited (Previously T-Mac Limited)
Broadfern Properties Limited
Eco Monitoring Utility Systems Limited
EIC Energy Trading Limited
Frasers Group plc
JVM AG
JVM Equipment International Limited
JVM Limited
Proposed Solution OU
Republic.com Retail Limited
South Quayside Holdings Limited
Sportsdirect.com Retail Limited
The Bowling Back Land Company Limited
The Flannels Group Limited
Utilitywise Franchising Limited
Utilitywise plc
About Bonhill Group plc
Bonhill Group plc is a leading, AIM-quoted, B2B media company
providing Business Insight, Events and Data & Analytics
propositions to Financial Services, Diversity and Technology
business communities in 25 countries. Bonhill operates fifteen
information websites, publishes four regular print titles, hosts
120 events per annum, offers a portfolio of data & analytics
propositions and provides a range of content marketing
solutions.
The business creates content, sales and marketing opportunities,
networking events and transactional opportunities for its audiences
of entrepreneurs, business owners and managers, CTOs &
technology leaders, asset & wealth managers, and professional
women, in addition to its sponsors, advertising clients and
customers. Flagship brands include: InvestmentNews, Portfolio
Adviser, Fund Selector Asia, What Investment, SmallBusiness.co.uk,
GrowthBusiness.co.uk, Information Age, Women in... events series,
and DiversityQ.
For more information visit www.bonhillplc.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCFLFVRRRIRFII
(END) Dow Jones Newswires
June 29, 2020 02:00 ET (06:00 GMT)
Bonhill (LSE:BONH)
Historical Stock Chart
From Apr 2024 to May 2024
Bonhill (LSE:BONH)
Historical Stock Chart
From May 2023 to May 2024