TIDMBONH
RNS Number : 6239L
Bonhill Group PLC
14 September 2021
14 September 2021
Bonhill Group plc
("Bonhill", the "Company" or the "Group")
Interim Results for the Six Months Ended 30 June 2021
Bonhill Group Plc (AIM: BONH), a leading B2B media business
specialising in three key areas: Business Information, Events and
Data & Analytics, announces its unaudited interim results for
the six months ended 30 June 2021.
Financial Highlights
-- Revenue down by 13% to GBP6.7m (H1 20: GBP7.8m)
-- Gross margin improved to 78.9% (H1 20: 77.8%)
-- EBITDA loss of GBP1.3m with no adjusting items (H1 20: adjusted
loss of GBP1.7m)
-- Significantly reduced operating loss of GBP2.5m (H1 20: loss
of GBP11.0m)
-- $1.3m (GBP0.9m) financial support from the second US Paycheck
Protection Programme ("PPP2") (2020: $1.1m (GBP0.8m))
-- Cash balance at 30 June 2021 was GBP1.3m (30 June 20: GBP3.4m);
GBP1.2m at 31 August 2021
Operational Highlights
-- The Group has recently completed a rebranding exercise to consolidate
and define its identity as one brand, Bonhill, with two divisions:
global Financial Services and Business Solutions
-- Successfully held 59 virtual events in the period with 35 live
events planned globally for H2 2021 and another 36 virtual
events
-- Strong performance from Financial Services Asia across all
areas post-site relaunch and ESG offering
-- Hosted inaugural Global ESG Summit, with the United Nations
Capital Development Fund, with over 1,000 attendees, streamed
live globally and second global ESG event on COP26 sold out
for December 2021
-- Business Solutions and Governance (BSG) performing well and
20% ahead of budget, driven by site relaunch and new platform
for product development
-- Investment in technology driving marketing growth across all
sites, a common global ESG platform and all upgrades delivering
a consistent global site standard
Commenting on the outlook for the Group, Simon Stilwell, CEO of
Bonhill, said:
"We have made an encouraging start to 2021 after the operational
changes and cost savings delivered in 2020. With the easing of
COVID-19 restrictions, and sponsor and delegate demand, we are
confident that we will host a full agenda of both virtual and live
events in H2 2021, driving business growth. Global ESG messaging
has dominated our financial services business in the year to date
and we have continued to invest and develop our proposition in
response to this rapidly growing trend.
We entered the year in a stronger position following the dynamic
adjustments made in 2020 in response to the pandemic. We are
beginning to see the benefits of these changes and the improvements
in technology and operational efficiency across the Group. The
recent rebranding enables us to offer our broadest product set to
our global audience and we continue to bring best practice across
the Group, uniting our global teams whilst still successfully and
efficiently working remotely.
"We are confident of achieving revenue growth of approximately
5% and to report EBITDA of approximately GBP1.2 million, excluding
any Government support, in 2021. We are cautiously optimistic about
H2 and the important fourth quarter and believe the promising start
we have made to the year positions us well for future growth."
A presentation on the interim results for 2021 is available at
the following link: https://bit.ly/Bonhill_H121_presentation
-ends-
For further enquiries please contact:
Bonhill Group plc +44 (0)20 7250 7035
Simon Stilwell, Chief Executive Officer
Sarah Thompson, Chief Financial Officer
Shore Capital (Nominated Adviser and Joint Broker) +44 (0)20 7408 4080
Tom Griffiths/David Coaten (Corporate Advisory)
Fiona Conroy (Corporate Broking)
Canaccord Genuity Limited (Joint Broker)
Bobbie Hilliam
Adam James
Georgina McCooke +44 (0)20 7523 8000
Houston (PR Adviser)
Alexander Clelland +44 (0)20 4529 0549
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 and business communities in 25
countries. Bonhill operates eleven information websites, publishes
three regular print titles, hosts 130 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, ESG Clarity
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
Chairman's Statement
Bonhill had a much more stable first half of 2021 despite the
ongoing challenges of COVID-19. H1 revenue was down by 13% to
GBP6.7m (2020: GBP7.8m) with an operating loss of GBP2.5m before
impairment (2020: loss of GBP4.4m). The reduction in revenue
reflected the lack of live events compared to 2020, but importantly
the Company saw revenue growth in Q2 2021 on Q2 2020 which
reflected comparable COVID-19 periods.
During the half, we saw the benefits of all the restructuring
carried out in 2020 and have seen a significant reduction in our
cost base which, alongside there being no adjusting items in the
period under review, led to a greatly reduced loss.
The Company has continued to refine the business model and has
recently rebranded and refocused its efforts within its sectors, so
that we now have one global Financial Services offering in addition
to Business Solutions. These changes reflect the continuing drive
to develop long-term recurring revenues and, after a period of
acquisition and restructuring, it is important that we have one
global identity and can offer our broadest product set to our
global client base.
As a Group, we continue to see a changing landscape in events.
We have successfully delivered 59 virtual events in the first half
which has helped to keep Group gross margins up at 79% (2020: 78%).
We are planning on running 35 in person events in the second half
of the year, of which the majority will be in the UK and Asia.
There continues to be uncertainty around the return of in person
events in the US and we are adjusting our schedule accordingly.
ESG remains the dominant theme across our business and is a
significant contributor to new business in the period. I am
delighted that by the end of this month we will have ESG Clarity
operating on a single global platform and we continue to develop
new products and activities around the subject, especially around
significant events like COP26. I am also pleased that we have
created our own internal ESG committee that I chair, which with
full participation of the staff has resulted in a multi-year plan
to help measure, monitor and improve our own internal ESG
activities and with our broader stakeholder group.
In the first half, and subsequently, we have seen some changes
to the composition of the Board. Neil Sachdev did not stand for
re-election at the AGM and I was appointed in late May 2021 and, as
separately announced today, Anne Donoghue has notified the Board of
her intention to step down from her role as a non-executive
director with effect from 30 September 2021 to undertake a
full-time opportunity. A search for her replacement is underway and
we will update as appropriate. I would like to take this
opportunity to thank both Neil and Anne for their contributions and
wish them well in their future endeavours.
Our staff have excelled themselves through their commitment and
flexibility as they continue to navigate the ever-changing
landscape. They continue to work successfully remotely and, with a
new flexible working policy in place, we have seen some return to
the new London office which opened in May 2021. I would finally
like to thank our shareholders for their continued support and our
broad customer base for their continued support and engagement.
Jonathan Glasspool
Chairman
Chief Executive's Report
Introduction
Despite the turbulent market conditions of 2020, Bonhill Group
has emerged in a position of strength and we are focused on making
2021 a year of delivery. Our robust operating model demonstrates
our ability to respond effectively to the challenges of the
pandemic and we continue to improve our customer proposition and to
refine our business model and brands/titles to meet the needs of
the evolving marketplace.
However, the impact of COVID-19 continues to be felt in our
events business, with the continued restrictions in H1 2021
preventing the hosting of any live events in all regions (H1 2020:
16). As a consequence, H1 revenues are slightly lower than for the
comparable period in 2020, as announced at the Company's Annual
General Meeting on 27 May 2021. However, the Q2 2021 like-for-like
revenues were 9 per cent. ahead of the comparable period in 2020
which gives a better indication of the impact of the restructuring
made in 2020. Consequently, EBITDA loss in H1 2021 is 24 per cent.
lower than in the comparable period in 2020.
Additionally, the H1 2021 loss before taxation is significantly
reduced compared to H1 2020, reflecting the substantial cost saving
initiatives taken in 2020. There were also no adjusting items or
goodwill impairment undertaken in the period.
We also participated in the US Small Business Administration's
second Paycheck Protection Program ('PPP2') which is part of the
Coronavirus Aid Relief and Economic Security Act ('CARES Act') and
received loans totalling $1.3 million (GBP0.9 million) in March
2021. As was the case with the first PPP loan of $1.1 million
received by the Group in May 2020 ("PPP1"), the PPP2 loan, or a
portion of the loan, may be forgivable if the proceeds of the loan
are used for eligible purposes, including employee retention and
payroll. As announced on 5 January 2021, the PPP1 loan was forgiven
in full. The Board currently expects that, based on prior
experience, a significant proportion of the PPP2 loan will be
eligible for forgiveness later this year and the forgiveness
application process has started. A further announcement will be
made as appropriate.
The final payment due to Crain Communications under the vendor
loan agreement entered into in August 2018 as part of the
consideration payable for the Company's acquisition of
InvestmentNews was made in August 2021 which completes all of the
post-acquisition commitments.
We were delighted to welcome our new Chairman, Jonathan
Glasspool to the Group during the period. Jonathan's appointment
was announced on 13 April 2021 and he was appointed as
Non-executive Chairman on 28 May 2021 replacing Neil Sachdev, who
did not stand for re-election at the Company's Annual General
Meeting on 27 May 2021. I would like to thank Neil for his support
and commitment to the business over the past three years and, in
particular, during the early turbulent months of the pandemic.
We enter the second half of 2021 with confidence and cautious
optimism. The easing of restrictions in the UK following the
progress in combatting the COVID-19 pandemic will benefit our
Events business and, whilst we still see restrictions in the US, we
are planning some live events there in certain states. The
operational improvements to all our businesses continue, reflecting
an evolving market, and we continue to be a partner of choice for
global asset managers in promoting ESG related activities. This key
theme and a strong appetite for our products and services are
expected to stand us in good stead for future growth.
Bonhill - Be Informed
The Group undertook a rebranding exercise to consolidate and
define its identity following a period of acquisition and
integration as one global brand with two divisions - Bonhill
Financial Services and Bonhill Business Solutions and Governance.
This launch not only features a new visual identity, but also a
simplification of the Group structure and a new offering across our
global financial services business. The last three years have seen
the unification of three businesses and, having worked harder and
closer together during the pandemic, it seems right to now
formalise that global collaboration and emerge from these
challenging conditions as a more defined entity.
We are looking to achieve three things with this rebranding:
-- First, to make our broadest possible offering available to our global client base;
-- Secondly, to deliver the highest level of service and experience to our clients; and
-- Thirdly, to establish an inclusive, open-minded working
environment creating a true platform for opportunity.
In addition to this external rebranding, we have streamlined the
Company structure with the closure of the Growth Company Investor
and Information Age statutory companies (Information Age continues
as a brand under Business Solutions).
Business Solutions and Governance (BSG)
Our BSG division saw a strong media performance in the first
half, up 20% on the comparable period in 2020 and, despite a modest
post-pandemic tail off in site traffic, it continues to perform
ahead of budget. While the overall flat performance year on year
reflects the lack of live event activity in the first half, that
revenue has been replaced with either virtual events or new revenue
streams. The relaunch of the core smallbusiness.co.uk site, which
commenced in July 2021, is designed to provide a better user
experience and a platform with enhanced features and speed and a
base for product development, including a new lead generation
product. Early trials of this product set are encouraging.
There has been a focus on marketing and our extensive data base
in H1 21. This exercise included data de-duplication, enhancement
and cleansing all divisional data. The result has seen a 20%
increase in the 'Women In ...' database and a 12% increase in the
Small Business database and growth in the What Investment
subscription base.
The outlook in H2 2021 for the division is positive with two key
live events from DiversityQ being held at the end of the year and
the continued development of products in the core Small Business
arena.
Financial Services
Last Word Media traded well, with the small decline in revenues
attributed to the lack of live events compared to the prior year.
The 2020 restructuring has resulted in EBITDA contribution levels
reaching double those at the time of its acquisition by the Company
in 2019. ESG Clarity has been the stand-out performer alongside
Last Word Create, both of which are now being sold globally. Asia
has seen a strong performance across media and events after a
difficult couple of years and it has been a key contributor to our
global ESG series.
Live event activity is expected to restart in H2 2021,
specifically from September in the UK and Asia, subject to the
continued easing of COVID-19 restrictions.
InvestmentNews, had a weaker first half where digital sales have
been slower than in the comparable period in 2020. The period was
impacted by a shift in market messaging by customers following the
election of President Biden and US financial advice firms reducing
advertising budget to rebuild profitability while there was some
disruption from M&A activity. However, new initiatives are in
place and the recent rebranding is specifically designed to enable
all group products to be sold to the key US market. This broadening
of the product set to include more ESG related activity will sit
alongside existing developments in Fintech and a new Investment
Strategy offering.
Print revenue remained relatively strong in the first half, up
10% on the same period in 2020. We were delighted that
InvestmentNews won a prestigious Neal Award for business
journalism, considered the highest editorial honour in the field of
business-to-business journalism in the US. In addition,
InvestmentNews was a finalist in five other categories , including
best media brand/overall editorial excellence and best COVID-19
industry coverage.
The in person event market in the US continues to be impacted by
Covid 19 and the rise of the delta variant in country. This
backdrop has necessitated some recent event changes from in person
back to virtual and we are constantly assessing the situation on a
state by state basis.
The US financial advice market still holds enormous potential
for the Group and the work we have done on global collaboration,
leading to becoming one global financial services offering, should
allow us to target a broader audience with our content and data led
strategy.
ESG
We continue to see sustained interest in ESG-related topics from
customers across the Group. ESG-related activity has dominated H1
2021 and the Board expects that direct ESG activity is likely to
contribute in the region of 30 per cent. of the Group's revenues
this financial year. It has been particularly strong in the UK and
Asia and is building momentum in the US. We have seen continued
growth of our core brand, ESG Clarity, which is currently operating
regionally and will move onto one global platform in late September
2021. Our wider group ESG platform includes ESG Clarity, our 'Women
In...' series, DiversityQ, InvestmentNews' Women Adviser Summit
series, Diversity, Equity and Inclusion awards and the US
Sustainable Development Goals podcast series and Bonhill
Intelligence, our research business. In addition, Bonhill Create,
our content marketing business has co-ordinated our two global ESG
events being held in conjunction with the United Nations.
We were very pleased to host our inaugural Global ESG Summit, in
partnership with the United Nations Capital Development Fund, a
flagship event for the Group, that further establishes our
credentials in this area of critical importance to our customer
base. The event had over 1,000 registered attendees and was
streamed live across Asia, the UK, Europe and the US. Our second
global ESG event will be the COP 26 event in December 2021 which is
already sold out.
We have plans for continued growth in this area, utilising our
deep subject knowledge, audience reach and innovative solutions to
highlight fund group credentials and providing key data and
information to all parts of the investment community.
Internal ESG Committee
Reflecting the importance of ESG to the Group, in the first
half, we convened an internal ESG committee, involving 32 employees
from across the business to look at the three strands. This team
has created a multi-year project to assess, monitor, set benchmarks
and measure progress in key areas. This will be reported on more
fully in the Company's annual report and accounts starting with
those for the year ending 31 December 2021.
Events
In the absence of live events, we have successfully held 59
virtual events in the first half of this year continually evolving
our formats in response to feedback and successes. However, a total
of 35 live events are planned for H2 2021 in the UK, Asia and US,
reflecting the easing of restrictions and strong sponsor and
delegate support. We will continue to operate a hybrid model,
adopting the event platform best suited to the topic, size and
audience geography of the event.
Highlights include a successful 'Women In...' Summit series
following on from last year's two-day virtual format, with new
innovations and features. I am particularly pleased with our work
in Diversity, Equity and Inclusion, and, alongside other events
held during the first half, on one day in June 2021 we hosted the
Women in IT London Summit, a 'Women on Boards Summit,
DiversityQ-led, an Active Mentorships training programme webinar
and InvestmentNews hosted Women Advisor Summit symbolising a broad
selection of formats addressing different demographics and segments
of the business community.
The continued migration of existing brands into new territories
continues with our 'Spotlight On' series, which originated in Asia
and is now live in the UK and the US, combining content creation,
distribution, and live panel discussions across both Global
Investment strategies and more recently Fintech.
Operations
The Bonhill Group is also creating efficiencies and costs
savings through the development of group central services, across
technology, finance, HR and Ad Operations, with production and
marketing planned as next steps.
The successful completion of the UK office move will also result
in significant cash benefits starting in H2 2021 and the US office
lease renegotiation which took place in early 2021 also delivered
cost and cash savings with a six-month rent-free period. We believe
that we have the right mix of space and flexibility to support our
flexible working policy.
Our People
Our people and the values the company espouses are paramount to
our success. They have been fundamental to the development of the
Group's recent re-brand, which is a true reflection of the evolved
culture and operational style of Bonhill. We are grateful for the
commitment of our employees during the pandemic and our ongoing
response to the challenges it presents has been successful largely
due to their positive approach and determination. Remote working
has been a success and we have recently implemented a flexible
working policy to continue this and better support the wellbeing of
all of our employees. Our working practices will continue to be
shaped across all regions by the continuous engagement with our
people and an assessment of the changing work environment to ensure
we maintain the balance between meeting the needs of our clients
and the safety of our employees.
This is complemented by initiatives on staff retention, enhanced
benefits and additional training, as well as the Bonhill Allstars
employee recognition programme. We have not furloughed any
employees in 2021.
The wellbeing of our employees is critical to the success of the
Group and we have now implemented our own team of trained Mental
Health First Aiders, run five days of awareness during Mental
Health Week, provided wellbeing talks and training and support to
ensure our employees are fully supported in their working lives and
beyond. We have extensively surveyed our employees to ensure that
we are alive to any changes in circumstances, trends or feelings
even when they are working remotely.
Technology
Our historic investment in creating a global technology platform
is paying dividends with the creation of a global data lake, global
ESG platform and global website standards. In addition, we continue
to invest in Search Engine Optimisation (SEO) and Data &
Analytics to further improve our audience knowledge and
propositions.
We are making continual improvements to online advertising
formats, reducing invalid traffic for better client campaign
success as well as creating customer personas through data
enrichment to provide a better customer experience, more accurate
marketing, and new sales opportunities.
This greater customer insight has been enhanced with the first
phase of the implementation of our global data lake to store all
our key data elements and support improved analytics and
reporting.
The release of our first major website using our global
framework has also improved website performance, allowed new
features to be deployed faster, and reduced the total cost of
ownership.
Dividend
In light of the prevailing operating environment, and the
Company's financial situation, the decision was taken not to
recommend the payment of a final dividend for the year ended 31
December 2020 and we are not proposing the payment of an interim
dividend for the six months ended 30 June 2021. It is very much the
Board's intention that the Company should return to paying a
dividend when it is appropriate to do so.
Outlook
Our aim in 2021 is to have a year of delivery following the
challenges of 2019 and 2020 and we believe that we are well placed
to do so. The actions of 2020 and more recently have resulted in a
new streamlined brand and offering, improved operations, business
efficiencies and a digital-first product set. In light of the
current operating environment, which has seen a protracted period
of virtual events, the Board now expects revenue growth of
approximately 5% and EBITDA of approximately GBP1.2 million,
excluding any Government support, in 2021. We are cautiously
optimistic about H2 and the important fourth quarter and believe
the promising start we have made to the year positions us well for
future growth.
The Board does not anticipate there being any adjusting items
this year. The end of the Crain loan repayments, improvements in
working capital management and strong cash conversion from the
seasonally stronger second half should see a further strengthening
of the Company's balance sheet by the year end 2021.
Simon Stilwell
Chief Executive Officer
Financial Highlights
- Revenue down by 13% to GBP6.7m (H1 20: GBP7.8m)
- Gross margin improved to 78.9% (H1 20: 77.8%)
- Adjusted EBITDA loss of GBP1.3m (H1 20: adjusted loss of GBP1.7m)
- Significantly reduced operating loss of GBP2.5m (H1 20: loss of GBP11.0m)
- $1.3m (GBP0.9m) financial support from the second US Paycheck
Protection Programme ("PPP2") (2020:$1.1m (GBP0.8m))
- Cash balance at 30 June 2021 was GBP1.3m (30 June 20: GBP3.4m); GBP1.2m at 31 August 2021
Financial Review
6 months 6 months
to 30 to 30 Change Change
Key Financials (GBP'000s) Jun 2021 Jun 2020 GBP %
(unaudited) (unaudited)
Revenue 6,744 7,760 (1,016) (13)%
Gross Profit 5,318 6,036 (718) (12)%
Gross Margin 78.9% 77.8% N/A 1%
Adjusted EBITDA (1,303) (1,704) 401 24%
Adjusted operating profit/(loss) (2,467) (8,739) 6,272 72%
Statutory operating profit/(loss) (2,467) (10,995) 8,529 78%
Cash 1,288 3,446 (2,158) (63)%
Adjusted basic earnings/(loss) per share (2.33)p (11.68)p
Statutory basic earnings/(loss) per share (2.33)p (15.13)p
------------------------------------------- ------------ ------------ -------- -------
Revenue and gross margin
Revenue reduced half-on-half by approximately GBP1.0m (-13%) to
GBP6.7m. However, the data is somewhat skewed by the first part of
Q1 2020 being pre-COVID-19 restrictions, and thereby including the
benefit of some of our largest live events. As has been commented,
the Company has made a very successful transition to virtual events
in the last 12 to 15 months, but there has been a reduction in
revenue as a result. If we directly compare Q2 2020 and Q2 2021,
both being 'COVID quarters', we actually see an increase in revenue
of 9%. Additionally, while gross profit in the first half of 2021
has reduced by GBP0.7m (-12%) to GBP5.4m, the gross margin % has
increased marginally from 77.8% to 78.9%. This is primarily driven
by the conversion of events to virtual format, but also from a
reduction in print costs and supplier synergies.
6 months
to 30 Jun 6 months to
Revenue (GBP'000s) 2021 30 Jun 2020
(unaudited) (unaudited) Change %
Revenue Q1 3,105 4,432 (30)%
Revenue Q2 3,639 3,328 9%
Total revenue H1 6,744 7,760 (13)%
-------------------- ------------ ------------- ---------
By focussing specifically on Q2, this gives a better indication
of business performance and its slow recovery from the impact of
COVID-19 in 2020.
3 months 3 months
to 30 Jun to 30 Jun
Revenue - Q2 focus (GBP'000s) 2021 2020
Change
(unaudited) (unaudited) %
Business information 2,643 2,745 (4)%
Events 877 236 272%
Data & Insight 119 345 (66)%
Total revenue Q2 3,639 3,326 9%
------------------------------- ------------ ------------ -------
Business Information revenue reduced Q2-on-Q2 by 4% to GBP2.6m,
but within this print revenue increased by 15% to GBP0.6m, while
digital revenue decreased by 8% to GBP2.0m. This reduction in
digital revenue is predominantly driven by customer demand in the
US, whereby economic and political uncertainty have meant many key
clients have rephased their digital spend with us to the second
half of the year, once they have confirmed their internal marketing
messages. As would be expected, events revenue has significantly
increased since last year as we continue to deliver high quality
virtual events. Data and Insight is down and again and is expected
to come back in H2 2021 as customers re-phase their spend.
Revenue splits by proposition and business unit for the half are
as follows:
6 months 6 months
to 30 Jun to 30 Jun
Revenue (GBP'000s) 2021 2020
Change
(unaudited) (unaudited) %
Business information 4,922 5,345 (15)%
Events 1,454 1,779 (18)%
Data & Insight 368 636 (42)%
Total 6,744 7,760 (13)%
---------------------- ------------ ------------ -------
6 months 6 months
to 30 Jun to 30
Revenue (GBP'000s) 2021 Jun 2020
Change
(unaudited) (unaudited) %
Business Solutions and Governance 1,220 1,211 0%
Last Word Media 2,392 2,722 (12)%
InvestmentNews 3,132 3,827 (18)%
Total 6,744 7,760 (13)%
----------------------------------- ------------ ------------ -------
Operating costs (excl. depreciation, amortisation, lease
payments under IFRS16 and share based payments)
When comparing H1 2020 to H1 2021, it is clear to see the
positive financial impact of the Company restructuring carried out
last year, improved cost control processes, systems integration and
improvements and reduction in discretionary spend. The overall
reduction in costs for comparison is GBP2.6m or 28%, with GBP0.7m
derived from savings in staff costs and GBP0.2m from reduction in
IT costs.
Much has been done since the start of 2020 to mid-2021 to not
only right-size the cost base, but also to move to a more
streamlined employee structure across the Group, enabling Global
roles and synergies where possible. Headcount at 30 June 2021 was
137 (2020: 152), and there is roughly an even split of heads
between Bonhill (incl. BSG and central heads), LWM and IN.
6 months 6 months
to 30 to 30 Change Change
Jun 2021 Jun 2020 GBP %
(GBP'000s) (unaudited) (unaudited)
Staff Costs 5,704 6,417 (713) (11)%
IT 260 496 (236) (48)%
Legal & Professional 216 302 (86) (28)%
T&E 11 105 (94) (90)%
Office costs (excl. IFRS 16 rent) 130 187 (57) (30)%
Other costs 300 219 81 37%
Total operating costs excl. adjusting
items 6,621 7,726 (1,105) (14)%
Adjusting items 0 1,491 (1,491) (100)%
Total operating costs 6,621 9,217 (2,596) (28)%
--------------------------------------- ------------ ------------ -------- -------
The majority of the savings relating to office costs are
processed below EBITDA as lease amortisation is not included here.
Other costs include the impact of varying foreign exchange rates
upon translation and provisions for doubtful debts.
Cash and net debt
The impact of 2020 on cash has been felt throughout the first
half of 2021. Due to much of the Q4 2020 revenue being driven by
deferred revenue, not cash, the bank balance coming into 2021 was
low (GBP1.3m). As has been described above, Q1 historically has
always been a slow quarter for customer demand and 2021 was no
different, so the continued strict management of working capital
was vital. Our cash collections processes are strong as we have
successfully been able to convert high percentages of our debtor
ledger each month into cash, driving an overall positive working
capital movement in the half of GBP1.2m (2020: GBP3.1m).
In order to help bolster our cash balance over and above working
capital management, we undertook the following actions and
government aid:
- In February 2021 the Company successfully claimed back GBP0.2m
in R&D tax credits relating to 2019, which was received as
cash.
- In March 2021, the Company received GBP0.9m under the second
US Paycheck Protection Programme ("PPP2") loan (which is expected
to be fully forgiven later in 2021).
- New property leases were negotiated on both the US and UK
offices. The US lease included a 6-month rent free period equating
to $0.2m, and the UK office (while not materially affecting H1)
will materially reduce the annualised spend on the office by
GBP0.4m.
- An internal recruitment freeze was implemented for the whole
of Q1 2021, saving GBP0.1m in staff costs.
Despite the difficult environment, we are pleased to report the
following positive updates on government aid and borrowings:
- The final payment of the deferred Q1 2020 VAT balance was made
on 1 July, 2021. All 2020 balances have now been fully repaid to
HMRC.
- We have not had any employees on furlough in 2021 and we only
received a GBP2k furlough receipt relating to December 2020.
- As set out above, we made the final payment on the vendor loan
in August 2021 after which there will be circa GBP0.1m of debt on
the balance sheet relating to UK Bounceback loans received in
2020
All of these actions resulted in a cash balance at 30 June 2021
of GBP1.3m (2020: GBP3.4m).
At the half year end, we had a net debt position of GBP2.5m,
including IFRS16 lease liabilities. This reflects the two new
office leases in New York and in London, as well as there being
only two payments left on the vendor loan, plus the second US PPP
loan that is expected to be fully forgiven in 2021.
30 Jun 30 Jun 31 Dec
Net Debt (GBP'000s) 2021 2020 2020
(unaudited) (unaudited) (audited)
Cash 1,288 3,446 1,343
Borrowings (1,269) (2,888) (1,060)
Lease liabilities under IFRS16 (2,558) (1,191) (184)
Net cash/(debt) (2,539) (633) 99
-------------------------------- ------------ ------------ ----------
Principal risks and COVID-19
The directors do not consider that the principal risks and
uncertainties described in the Company's annual report for the year
ended 31 December 2020 have changed. A detailed explanation of the
risks, including those related to COVID-19, and how the Group seeks
to mitigate the risks, can be found on pages 38 to 41 of the
Company's annual report which is available at
www.bonhillplc.com.
Sarah Thompson
Chief Financial Officer
Consolidated statement of comprehensive income (unaudited)
for the six months ended 30 June 2021
6 months 6 months
ended ended Year ended
30 Jun 2021 30 Jun 2020 31 Dec
GBP'000 GBP'000 2020 GBP'000
Revenue 6,744 7,760 17,812
Cost of sales (1,426) (1,724) (3,478)
------------- ------------- --------------
Gross Profit (5,318) 6,036 14,334
------------- ------------- --------------
Operating Costs (6,621) (7,740) (14,478)
------------- ------------- --------------
Adjusted EBITDA (1,303) (1,704) (146)
------------- ------------- --------------
Depreciation (65) (73) (153)
Amortisation and impairment (1,035) (7,041) (8,062)
Share-based payments (64) 79 18
Adjusting items - (2,256) (2,322)
------------- ------------- --------------
Net operating profit/(loss) (2,467) (10,995) (10,665)
------------- ------------- --------------
Finance costs (117) (146) (211)
Profit/(loss) before tax (2,584) (11,141) (10,876)
------------- ------------- --------------
Tax 292 1,232 (3)
Profit/(loss) for the period (2,292) (9,909) (10,879)
------------- ------------- --------------
Other comprehensive income:
Items that may be reclassified subsequently
to profit or loss:
Exchange differences on translating
foreign operations (229) 954 (251)
Total comprehensive income/(loss)
for the year (2,521) (8,955) (11,130)
Basic loss per share (2.33)p (15.13)p (13.24)p
---------------------------------------------- ------------- ------------- --------------
Consolidated statement of financial position (unaudited)
as at 30 June 2021
30 Jun 30 Jun 31 Dec
2021 2020 2020
GBP'000 GBP'000 GBP'000
Non-current assets
Goodwill 10,624 11,525 10,760
Other intangible assets 7,835 9,887 8,622
Property, plant and equipment 153 268 190
Deferred tax asset 360 1,238 315
Right-of-use asset 2,421 1,107 158
--------- --------- ---------
21,393 24,025 20,045
Current assets
Trade and other receivables 3,437 7,173 4,596
Cash and cash equivalents 1,288 3,446 1,343
--------- --------- ---------
4,725 10,620 5,939
Total assets 26,118 34,645 25,984
--------- --------- ---------
Non-current liabilities
Deferred tax liability (402) - (426)
Borrowings (50) (278) (50)
Lease financial liability (1,932) (322) -
--------- --------- ---------
(2,384) (600) (476)
Current liabilities
Trade and other payables (3,469) (7,525) (3,354)
Borrowings (1,219) (2,610) (1,010)
Lease financial liability (626) (869) (184)
Current tax liability - (17) -
--------- --------- ---------
(5,313) (11,021) (4,548)
Total liabilities (7,697) (11,621) (5,024)
--------- --------- ---------
Net assets 18,421 23,024 20,960
--------- --------- ---------
Equity
Share capital 986 986 986
Share premium account 1,759 1,759 1,759
Share-based payment reserve 305 147 245
Merger reserve 1,976 1,976 1,976
Other reserves 104 104 104
Retained earnings 14,192 17,519 16,562
Foreign exchange reserve (901) 533 (672)
--------- --------- ---------
Total equity attributable to owners
of the parent 18,421 23,024 20,960
-------------------------------------- --------- --------- ---------
The financial statements were approved and authorised to issue
by the Board and signed on its behalf on 13th September 2021.
Sarah Thompson
Chief Financial Officer
13 September 2021
Consolidated statement of changes in equity (unaudited)
for the six months ended 30 June 2021
Share-
based Foreign
Share Share payment Merger Other Retained exchange
capital premium reserve reserve reserves earnings reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as at 1 January
2020 486 - 217 1,976 104 27,429 (421) 29,791
Loss for the period - - - - - (9,909) - (9,909)
Other comprehensive
income - - - - - - 954 954
Total comprehensive
loss for the period - - - - - (9,909) 954 (8,955)
Transactions with owners
in their capacity as
owners:
Issue of share capital 500 1,759 - - - - - 2,259
Share option charge - - (70) - - - - (70)
Balance as at 30 June
2020 986 1,759 147 1,976 104 17,519 533 23,024
Loss for the period - - - - - (970) - (970)
Other comprehensive
income - - - - - - (1,205) (1,205)
Total comprehensive
loss for the year - - - - - (970) (1,205) (2,175)
Transactions with owners
in their capacity as
owners:
Share option charge - - 98 - - - - 98
Other movements - - - - - 13 - 13
Balance as at 31 December
2020 986 1,759 245 1,976 104 16,562 (672) 20,960
Loss for the period - - - - - (2,292) - (2,292)
Other comprehensive
income - - - - - - (229) (229)
Total comprehensive
loss for the year - - - - - (2,2927) (229) (2,522)
Transactions with owners
in their capacity as
owners:
Share option charge - - 61 - - - - 61
Other movements - - - - - (78) - (78)
Balance as at 30 June
2021 986 1,759 306 1,976 104 14,192 (901) 18,421
--------------------------- --------- --------- --------- --------- ---------- ---------- ---------- ---------
Consolidated statement of cash flows (unaudited)
for the six months ended 30 June 2021
6 months
6 months ended
ended 30 June
30 June 2021 2020
GBP'000 GBP'000
Cash generated/(used in) operations (108) 1,352
Interest paid (78) (146)
Taxation paid 197 -
M&A costs - -
Integration costs - (1,455)
Restructuring costs - -
-------------- ---------
Net cash generated/ (used) in operating activities 12 (249)
-------------- ---------
Investing activities
Purchases of property, plant and equipment (36) (28)
Purchases of intangible assets (24) (143)
Net cash paid for acquisition - -
-------------- ---------
Net cash used in investing activities (60) (171)
-------------- ---------
Financing activities
Proceeds from issue of ordinary shares - 2,259
Repayment of borrowings (741) (816)
Lease repayments (210) (449)
Government C-19 funding received 970 939
Dividends paid - -
-------------- ---------
Net cash generated from financing activities 19 1,933
-------------- ---------
Foreign exchange movement (25) 42
Net increase/(decrease) in cash and cash equivalents (55) 1,555
Cash and cash equivalents at the beginning of the
period 1,343 1,891
-------------- ---------
Cash and cash equivalents at the end of the period 1,288 3,446
------------------------------------------------------ -------------- ---------
The Group consists of entities with functional currencies of
GBP, USD, SGD and HKD.
Notes to the cash flow statement
6 months 6 months
ended ended
30 Jun 2021 30 Jun 2020
GBP'000 GBP'000
Loss after tax (2,292) (11,141)
Adjustments for:
Tax (292) -
Finance costs 117 146
Amortisation and impairment 1,035 7,041
Depreciation of property, plant and equipment 65 73
Share-based payment charge 64 (79)
Adjusting items - 2,256
Operating cash flows before movements in working
capital (1,303) (1,704)
Movement in receivables 1,073 1,249
Movement in payables 123 1,807
Cash flows generated/(used) in operations (108) 1,352
-------------------------------------------------- ------------- -------------
Notes to the accounts
1. General information
The financial information set out above does not constitute the
Company's statutory accounts for the 6-month period ended 30 June
2021 or the 6-month period ended 30 June 2020. Statutory accounts
for the year ended 31 December 2020 have been reported on by the
Independent Auditor. The Independent Auditor's Report on the Annual
Report and Financial Statements for the year ended 31 December 2020
was unqualified, did not draw attention to any matters by way of
emphasis, and did not contain a statement under 498(2) or 498(3) of
the Companies Act 2006. Statutory accounts for the year ended 31
December 2020 have been filed with the Registrar of Companies.
2. Accounting policies
Basis of preparation
The financial information presented in this announcement has
been prepared in accordance with the recognition and measurement
requirements of EU Endorsed International Financial Reporting
Standards and IFRIC interpretations ("IFRS") and the Companies Act
2006 applicable to companies reporting under IFRS. The financial
statements have been prepared under the historical cost
convention.
The principal accounting policies adopted in the preparation of
the financial information in this announcement are unchanged from
those used in the Company's financial statements for the year ended
31 December 2020 and are consistent with those that the Company is
expected to adopt in the preparation of its financial statements
for the year ending 31 December 2021.
Going concern
The directors are satisfied that the Group has sufficient
resources to continue in operation for the foreseeable future, a
period of not less than 12 months from the date of this report.
Accordingly, they continue to adopt the going concern basis in
preparing the condensed financial statements.
3. Revenue and segmental analysis
For executive management purposes, the business has three
reportable segments being the Bonhill UK business, which comprises
Governance and Business Solutions, the InvestmentNews business and
the Last Word Media business. Further analysis of revenue has been
performed by core proposition and country.
6 months 6 months
ended 30 ended 30
Jun 2021 Jun 2020
GBP'000 GBP'000
Analysis of revenue by core propositions
Business information 4,922 5,345
Live Events 1,454 1,779
Data and Insight 368 636
---------- ----------
Total 6,744 7,760
------------------------------------------ ---------- ----------
6 months 6 months
ended 30 ended 30
Jun 2021 Jun 2020
Analysis by country GBP'000 GBP'000
United Kingdom 3,087 3,380
United States 3,132 3,825
Europe - 108
Asia 525 447
---------- ----------
Total 6,744 7,760
--------------------- ---------- ----------
Bonhill Last Word
6 months ended 30 June 2021 UK InvestmentNews Media Total
Unaudited Unaudited Unaudited Unaudited
GBP'000 GBP'000 GBP'000 GBP'000
Reportable segmental income statement
Revenue 1,220 3,132 2,392 6,744
Gross profit 849 2,415 2,054 4,743
Operating profit/ (loss) (1,893) (866) 292 (2,467)
Profit/ (loss) before tax (1,332) (1,344) 290 (2,584)
Bonhill Last Word
6 months ended 30 June 2020 UK InvestmentNews Media Total
Unaudited Unaudited Unaudited Unaudited
GBP'000 GBP'000 GBP'000 GBP'000
Reportable segmental income statement
Revenue 1,211 3,827 2,722 7,760
Gross profit 816 3,171 2,049 6,036
Operating profit /(loss) (2,052) (1,442) (908) (4,403)
Profit/(loss) before tax (1,653) (1,977) (918) (4,549)
4. Earnings per share
Basic earnings per share is calculated by dividing the loss
attributable to owners of the parent by the weighted average number
of ordinary shares in issue during the period.
6 months 6 months
ended 30 ended 30
Based on statutory earnings Jun 2021 Jun 2020
GBP'000 GBP'000
Loss attributable to owners of the parent (2,367) (9,909)
Weighted average number of ordinary shares in
issue 98,585,692 65,513,564
Basic loss per share (pence per share) (2.40p) (15.13p)
5. Share capital
Issued and fully paid ordinary share of 1p each
Number GBP'000
As at 31 December 2019 48,585,692 486
Shares issued during the 6 month period 50,000,000 500
As at 30 June 2020 98,585,692 986
Shares issued during the 6 month period - -
------------------------- ------------------------------
As at 31 December 2020 98,585,692 986
Shares issued during the 6 month period - -
As at 30 June 2021 98,585,692 986
------------------------- ------------------------------
Share capital as at 30 June 2021 amounted to GBP1.0 million. No
shares were issued during the period.
6. Lease
The Group recognises a right-of-use asset and lease liability
under IFRS 16.
Right-of-use asset GBP'000
Carrying value as at 30 June 2020 1,107
Additions to right-of-use assets (2)
Amortisation charged (395)
Termination of leases (508)
Foreign exchange impact of revaluation (44)
--------
Carrying value as at 31 December 2020 158
--------
Additions to right-of-use assets 2,647
Amortisation charged (345)
Foreign exchange impact of revaluation (40)
--------
Carrying value as at 30 June 2021 2,421
--------
Lease liability GBP'000
Carrying value as at 30 June 2020 1,190
Additions to lease liability 2
Interest charged/(written back) (25)
Repayments made (439)
Termination of leases (508)
Foreign exchange impact of revaluation (36)
--------
Carrying value as at 31 December 2020 184
--------
Additions to lease liability 2,582
Interest charged 44
Repayments made (216)
Foreign exchange impact of revaluation (36)
--------
Carrying value as at 30 June 2021 2,558
--------
On 2 January 2021, the Group entered into a new lease for the
New York office for InvestmentNews. The transfer of the original
lease from the previous parent company, Crain, to one that is held
directly with the landlord of the building was a requirement of the
Transitional Services Agreement. The lease had been agreed for 8
years and as such a right of use asset of GBP2.0m and a financial
lease liability of GBP2.0m were recognised at this point.
On 16(th) May 2021, the Group extended its lease on the Hong
Kong office for another 2 years at a 15% reduction in cost. The
lease has been signed for 2 years until May 2023 and as such a
right of use asset of GBP0.1m and a financial lease liability of
GBP0.1m were recognised at this point.
On 17(th) May 2021, the Group entered into a lease for the new
UK office, based in London. The lease is until December 2022 and as
such a right of use asset of GBP0.5m and a financial lease
liability of GBP0.5m were recognised at this point.
7. Availability
Further copies of this announcement are available on the
Company's website, www.bonhillplc.com .
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