TIDMDODS
RNS Number : 6293W
Dods Group PLC
16 November 2017
Dods Group PLC
("Dods" or "the Group")
Unaudited Interim Results
for the six months ended 30 September 2017
Financial Highlights
H1 H1 2016 Actual
2017 Increase
Revenue GBP10.0m GBP9.7m 3.1%
Gross Profit GBP4.3m GBP3.7m 16.2%
Gross Profit Margin 43% 38% 5 ppts
Profit Before Tax GBP0.9m GBP0.8m 12.5%
Adjusted EBITDA* GBP1.7m GBP1.5m 13.3%
Cash at bank GBP9.5m GBP7.9m 20.3%
Basic EPS 0.27p 0.24p 12.5%
Adjusted Basic
EPS 0.38p 0.34p 11.8%
*Adjusted EBITDA is calculated as earnings before interest, tax,
depreciation, amortisation of intangible assets, share based
payments and non-recurring items
Operational Highlights
-- At the half year, recurring revenue as a percentage of total
revenue is 85% and client retention is 94%
-- Specific first-half product innovation highlights include the
expansion of the Dods People app including UK and EU parliaments,
the expansion of series-based events, the introduction of new EU
focussed quarterly magazine and the development of Dods People data
integration with a global CRM provider
-- The Group continues to focus on its strategic approach to
sales and marketing, client services and product innovation
-- Planned investment in key personnel will continue in the second half of the financial year.
Post Period-end
-- The Group also announced today it has acquired and subscribed
for 30% of the enlarged issued share capital of Social360 Limited
(www.social360monitoring.com) for GBP1.65 million in cash. The
acquisition gives Dods an opportunity to create a competitive
advantage and expand its bundled services around political
monitoring, business intelligence and consultative services to
existing clients and new markets.
Cheryl Jones, Chairman of Dods Group PLC, commented:
"The Group's financial performance is on track for the full
fiscal year. Moreover, the increase in margin and profit is a
reflection of high client retention and efficiency levels that have
been achieved in the business.
The Group has now moved to the next stage in its development,
re-invigorating its sales and marketing to attract new customers
whilst also exploring new products to cross sell into its existing
base. We have a clear strategy to be a leading provider of high
quality information, engagement and digital services and are
confident that we will be able to achieve long term growth, both
organically and through acquisitions."
For further information, please contact:
Dods Group PLC via Alma PR
Josh Royston 07780 901 979
John Coles 07836 273660
Helena Bogle 07580 216 203
Cenkos
Nicholas Wells 020 7397 8900
Mark Connelly
Business and Operational Review
The Group's revenues grew by 3% to GBP10.0 million (2016: GBP9.7
million). Gross margins improved from 38% to 43%. Adjusted EBITDA
has improved from GBP1.5 million to GBP1.7 million, an increase of
13.3%. Profit before tax of GBP0.9 million (2016: GBP0.8
million).
As part of its strategy, Dods is focussed on bringing innovative
products and flexible solutions to the marketplace. This strategy
combined with the high-calibre level of our political and business
consulting teams, our strategic sales efforts and our investment in
technology infrastructure, has resulted in a 94% retention level in
our subscriber base.
Through the period, the operational priorities were:
- support the planned growth in revenue in the events and engagement portfolio;
- maintain focus on improving the retention of recurring subscriber revenues;
- continue to develop and invest in our digital products whilst
maintaining our print media market share resulting in 89% recurring
revenues as at 30 September 2017;
- on-going client stakeholder mapping to optimise competitive positioning; and
- increase our training revenues via internal investment in key personnel.
The Group is actively pursuing acquisitions and strategic
investments that will expand core competencies into new markets,
offer product innovation and bring scale to existing products and
services.
Dods provides tailored solutions that enable actionable insights
for critical decision making in an increasingly fast-paced
commercial landscape. As the pressure to perform increases, clients
are seeking more bespoke offerings with evolved solutions. This
creates demand for providers to recombine products and to offer
creative service bundles rather than going to market with
traditionally more narrowly defined products. These market dynamics
underpin the Group's strategy.
Outlook
The Board is confident in the long-term growth prospects for the
Group. The quality and loyalty of the existing customer base
provides the opportunity for strong organic growth as we continue
to add to our range of services.
By Order of the Board
Key Financial Information
Half Year Summary
Six months Six months
ended ended
(GBP'000s unless specified 30 September 30 September
otherwise) 2017 2016
Revenue 10,002 9,740
Gross Profit
Margin % 43% 38%
Adjusted EBITDA 1,686 1,531
Depreciation (178) (124)
Amortisation of intangible
assets and assets acquired
through business combinations (204) (292)
Amortisation of software
intangible assets (217) (172)
Adjusted EBIT 1,087 943
Non-recurring
items (128) (42)
Net finance costs (22) (83)
Earnings before
tax 937 818
EPS (pence) 0.27 0.24
Adjusted EPS
(pence) 0.38 0.34
Cash flow from operations 1,148 1,404
Cash at bank 9,498 7,888
FINANCIAL REVIEW
Income Statement
The Group's revenue from continuing operations increased by 3%
to GBP10.0 million (2016: GBP9.7 million) and gross profit
increased by 17% to GBP4.3 million (2016: GBP3.7 million).
Gross margin increased from 38% to 43% in the period. The
increase in gross margin was due to an ongoing focus on the quality
of revenue across the Group and more efficient management of
internal resources. Administration costs increased by 22% to GBP2.7
million (2016: GBP2.2 million) reflecting the increase in building
costs of GBP0.4 million as the Group moved in to its new London
premises in the second half of last year.
Adjusted EBITDA increased by 10% to GBP1.7 million (2016: GBP1.5
million). Operating profit was GBP1.0 million (2016: GBP0.9
million), after an amortisation charge of GBP0.2 million (2016:
GBP0.3 million) for business combinations and a charge of GBP0.2
million (2016: GBP0.2 million) for intangible assets. The
depreciation charge in the period was GBP0.2 million (2016: GBP0.1
million) reflecting the increase in fixed assets related to the new
London premises.
The taxation charge for the period is GBPNil (2016: GBPNil) and
is based on the expected annual tax rate and the assumed use of
accumulated tax losses and other mitigating factors.
Adjusted earnings per share, both basic and diluted, from
continuing operations in the period were 0.38 pence (2016: 0.34
pence) and were based on the adjusted profit for the period of
GBP1.3 million (2016: GBP1.2 million) with a weighted average
number of shares in issue during the period of 340,840,953 (2016:
340,840,953). Earnings per share, both basic and diluted, from
continuing operations in the period were 0.27 pence (2016: 0.24
pence) and were based on the profit for the period of GBP0.9
million (2016: GBP0.8 million).
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
(2016: GBP13.3 million), intangible assets of GBP8.5 million (2016:
GBP9.0 million) and tangible fixed assets of GBP2.3 million (2016:
GBP2.5 million). The Group holds a 40% stake in the issued share
capital of Sans Frontières Associates (SFA) which it has loaned
GBP0.7 million (2016: GBPNil) at the period end. The loan is
unsecured and carries no interest charge.
The Group had a cash balance of GBP9.5 million as at 30
September 2017 (2016: GBP7.9 million). The cash balance is after
the expenditure of GBP0.8 million in investing activities and
includes a deposit of GBP1.3 million (2016: GBP1.3 million) being
held in the Group's name with its bankers.
Equity and Liabilities
Retained profits as at 30 September 2017 were GBP2.7 million
(2016: GBP1.0 million) and total shareholders' equity at that date
was GBP28.2 million (2016: GBP26.6 million).
Non-current deferred tax liability was GBP0.7 million as at 30
September 2017 (GBP0.8 million as at 30 September 2016).
Cash flows
During the period, the Group generated GBP1.2 million from
operations (2016: GBP1.4 million). In addition, the Group expended
GBP0.8 million in investing activities (2016: GBP2.6 million) and
as a result, net cash and cash equivalents increased by GBP0.4
million to GBP9.5 million.
Nitil Patel
Chief Financial Officer
DODS GROUP PLC
CONSOLIDATED INCOME STATEMENT
for the six months ended
30 September 2017
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2017 2016 2017
Note GBP'000 GBP'000 GBP'000
Revenue 2 10,002 9,740 19,965
Cost of sales (5,658) (6,017) (11,729)
----------------------------------- ----- ------------- ------------- ---------
Gross Profit 4,344 3,722 8,236
----------------------------------- ----- ------------- ------------- ---------
Administrative expenses (2,658) (2,191) (4,835)
----------------------------------- ----- ------------- ------------- ---------
Adjusted EBITDA 1,686 1,531 3,401
----------------------------------- ----- ------------- ------------- ---------
Depreciation (178) (124) (301)
Amortisation of intangible
assets acquired via combinations (204) (292) (584)
Amortisation of intangible
assets (217) (172) (368)
Non-recurring items 3 (128) (42) (221)
----------------------------------- -----
Operating profit 959 901 1,927
----------------------------------- ----- ------------- ------------- ---------
Net finance costs (22) (83) (380)
----------------------------------- ----- ------------- ------------- ---------
Profit before tax 937 818 1,547
Tax - - 16
----------------------------------- ----- ------------- ------------- ---------
Profit for the period 937 818 1,563
Earnings per share
Basic 4 0.27p 0.24p 0.46p
Diluted 4 0.27p 0.24p 0.46p
DODS GROUP PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
for the six months ended 30 September
2017
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2017 2016 2017
GBP'000 GBP'000 GBP'000
Profit for the period 937 818 1,563
Items that will be subsequently
reclassified to profit
and loss
Exchange differences on
translation of foreign
operations - (2) (86)
----------------------------------------- ------------- ---------
Other comprehensive loss
for the period - (2) (86)
----------------------------------------- ------------- ---------
Attributable to equity
holders of parent company 937 816 1,477
----------------------------------------- ------------- ---------
DODS GROUP PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL
POSITION as at 30 September 2017
Unaudited Unaudited Audited
As at As at As at
30 September 30 September 31 March
2017 2016 2017
GBP'000 GBP'000 GBP'000
Goodwill 13,282 13,282 13,282
Intangible assets 5 8,457 8,926 8,711
Property, plant and
equipment 6 2,254 2,516 2,423
Long term loan 700 - 200
-------------------------- ---------- -------------- ----------------------------- ----------------
Total non-current assets 24,693 24,724 24,616
-------------------------------------- -------------- ----------------------------- ----------------
Inventories 50 67 35
Trade and other receivables 3,612 2,287 2,805
Cash and cash equivalents 7 8,232 6,622 7,767
Restricted cash held
in deposit account 7 1,266 1,266 1,266
Total current assets 13,160 10,242 11,873
-------------------------------------- -------------- ----------------------------- ----------------
Total assets 37,853 34,966 36,489
-------------------------- ---------- -------------- -----------------------------
Capital and reserves
Issued capital 17,088 17,088 17,088
Share premium 8,105 8,105 8,105
Merger reserves 409 409 409
Retained profit 2,721 1,039 1,784
Share option reserve 36 27 36
Translation reserve (154) (66) (154)
Total equity 28,205 26,602 27,268
-------------------------------------- -------------- ----------------------------- ----------------
Trade and other payables 8,885 7,525 8,458
-------------------------------------- -------------- ----------------------------- ----------------
Total current liabilities 8,885 7,525 7,474
-------------------------------------- -------------- ----------------------------- ----------------
Deferred tax liability 763 839 763
-------------------------- ---------- -------------- -----------------------------
Total non-current liabilities 763 839 763
Total equity and liabilities 37,853 34,966 36,489
-------------------------------------- -------------- ----------------------------- ----------------
DODS GROUP PLC
CONDENSED CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY for
the six months ended 30 September
2017
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 2016 17,083 8,057 409 221 (68) 27 25,729
Total comprehensive
loss
Profit for the
year - - - 1,563 - - 1,563
Other comprehensive
loss
Currency translation
differences - - - - (86) - (86)
Transactions
with owners
Exercise of
share options
Lapsed option - - - - - 9 9
transfer - - - - - - -
Share based
payment 5 48 - - - - 53
-------- -------- -------- --------- ------------ -------- ---------------
At 1 April 2017 17,088 8,105 409 1,784 (154) 36 27,268
Total comprehensive
profit
Profit for the
period - - - 937 - - 937
Transactions
with owners
Exercise of
share options
Lapsed option - - - - - - -
transfer - - - - - - -
Other comprehensive
profit
Currency translation
differences - - - - - -
-------- -------- -------- --------- ------------ -------- ---------------
At 30 September
2017 17,088 8,105 409 2,721 (154) 36 28,205
-------- -------- -------- --------- ------------ -------- ---------------
DODS GROUP PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
for the six months ended 30 September 2017
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2017 2016 2017
GBP'000 GBP'000 GBP'000
Cash flows from
operating activities
Profit for the period 937 818 1,563
Depreciation of property,
plant and equipment 178 124 301
Amortisation of intangible
assets acquired through
business combinations 204 292 584
Amortisation of other
intangible assets 217 172 368
Share based payments
credit - - 9
Other gains 22 81 380
Income tax credit - - (16)
--------------------------------- ------------- ------------- ---------
Operating cash flows
before movements in
working capital 1,558 1,487 3,189
Change in inventories (15) (26) 6
Change in receivables (807) (96) (615)
Change in payables 412 39 897
--------------------------------- ------------- ------------- ---------
Net cash generated
by operations 1,148 1,404 3,477
Income tax paid - - (60)
Net cash from operating
activities 1,148 1,404 3,417
-------------------------------- --- ------------- ------------- ---------
Cash flows from
investing activities
Interest and similar
income received - 18 19
Addition to property,
plant and equipment (9) (2,435) (2,530)
Additions to Intangible
assets (174) (137) (411)
Long term loan (500) - (200)
Net cash used in
investing activities (683) (2,553) (3,122)
--------------------------------- ------------- ------------- ---------
Cash flows from
financing activities
Proceeds from issue
of share capital - 53 53
Foreign exchange
forward contracts - (90) (399)
Interest and similar
expenses paid - (9) -
Net cash from financing
activities - (46) (346)
--------------------------------- ------------- ------------- ---------
Net increase/(decrease)
in cash and cash equivalents 465 (1,195) (51)
Opening cash and
cash equivalents 9,033 9,083 9,083
Effect of exchange
rate fluctuations
on cash held - - 1
-------------------------------- --- ------------- ------------- ---------
Closing cash at
bank 9,498 7,888 9,033
--------------------------------- ------------- ------------- ---------
Cash and cash equivalents 8,232 7,888 9,033
Restricted cash
held in deposit
account 1,266 - -
------------------------------- --- ------------- ------------- ---------
Closing cash at
bank 9,498 7,888 9,033
--------------------------------- ------------- ------------- ---------
DODS GROUP PLC
Notes to the condensed consolidated interim financial
statements
30 September 2017
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 2017.
The comparative figures for the year ended 31 March 2017 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 2017
is based on the expected annual tax rate, and the assumed use of
accumulated tax losses and other mitigating factors.
The condensed set of interim financial statements have been
prepared on a going concern basis and were approved by the Board on
15 November 2017.
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 Audited
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2017 2016 2017
GBP'000 GBP'000 GBP'000
Revenue
United Kingdom 8,002 7,823 15,972
Continental Europe and
rest of the world 2,000 1,917 3,993
10,002 9,740 19,965
------------- ------------- ---------
3 Non-recurring items
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
30 Sept 30 Sep 31 Mar
2017 2016 2017
----------------------- ------------ ------------ ------------
GBP'000 GBP'000 GBP'000
Redundancy and people
related expense 38 33 76
Legacy IT related
costs 8 - 106
Acquisition related
expense 82 - 28
London office move - 9 11
128 42 221
----------------------- ------------ ------------ ------------
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 30 Sep 31 Mar
2017 2016 2017
---------------------------- ------------ ------------ ------------
GBP'000 GBP'000 GBP'000
Profit attributable
to shareholders 937 818 1,563
Add: non-trading items
net of tax 128 42 221
Add: amortisation
of intangible assets
acquired through business
combinations 204 292 584
Add: net exchange
losses 22 - 331
----------------------------- ------------ ------------ ------------
Add: share based payment
charge - - 9
----------------------------- ------------ ------------ ------------
Adjusted profit on
continuing operations 1,291 1,152 2,708
----------------------------- ------------ ------------ ------------
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
30 Sept 30 Sep 31 Mar
2017 2016 2017
---------------------------- ------------ ------------ ------------
Ordinary Ordinary Ordinary
shares shares shares
Weighted average number
of shares
In issue during the
period - basic 340,840,953 340,840,953 340,840,953
Share options 1,250,000 1,250,000 1,250,000
----------------------------- ------------ ------------ ------------
Weighted average number
of shares for diluted
earnings per share 342,090,953 342,090,953 342,090,953
----------------------------- ------------ ------------ ------------
Earnings per share
- ordinary shares 0.27p 0.24p 0.46p
Adjusted earnings
per ordinary share
(as defined above) 0.38p 0.34p 0.79p
Earnings per share
on continuing operations
Profit per ordinary
share - basic 0.27p 0.24p 0.46p
Profit per ordinary
share - diluted 0.27p 0.24p 0.46p
----------------------------- ------------ ------------ ------------
5 Intangible assets
Assets Software Total
acquired
through
business
combinations
GBP'000 GBP'000 GBP'000
Cost
At 1 April 2016 24,215 4,058 28,273
Reclassified to property,
plant and equipment - (79) (79)
Additions -externally
purchased - 39 39
Additions -internally
generated - 372 372
Disposals - (1,954) (1,954)
--------------------------- -------------- --------- --------
At 1 April 2017 24,215 2,436 26,651
Additions -internally
generated - 167 167
--------------------------- -------------- --------- --------
At 30 September 2017 24,215 2,603 26,818
--------------------------- -------------- --------- --------
Amortisation
At 1 April 2016 16,367 2,646 19,013
Reclassified to property,
plant and equipment - (71) (71)
Charged in year 584 368 952
--------------------------- -------------- --------- --------
At 1 April 2017 16,951 989 17,940
Charged in period 204 217 421
--------------------------- -------------- --------- --------
At 30 September 2017 17,155 1,206 18,361
--------------------------- -------------- --------- --------
Net Book Value
At 1 April 2016 7,848 1,412 9,260
--------------------------- -------------- --------- --------
At 1 April 2017 7,264 1,447 8,711
--------------------------- -------------- --------- --------
At 30 September 2017 7,060 1,397 8,457
--------------------------- -------------- --------- --------
6 Property, plant and equipment
Leasehold Equipment Total
improvements and fixtures
and fittings
GBP'000 GBP'000 GBP'000
Cost
At 1 April 2016 642 615 1,257
Reclassified from
intangible assets - 79 79
Additions 1,709 821 2,530
Disposals (623) (425) (1,048)
--------------------- -------------- -------------- --------
At 1 April 2017 1,728 1,090 2,818
--------------------- -------------- -------------- --------
Rebate of bought
forward assets (23) - (23)
Additions - 32 32
--------------------- -------------- -------------- --------
At 30 September
2017 1,705 1,122 2,827
--------------------- -------------- -------------- --------
Depreciation
At 1 April 2016 542 529 1,071
Reclassified from
intangible assets 27 44 71
Charged in year 160 141 301
Disposals (623) (425) (1,048)
--------------------- -------------- -------------- --------
At 1 April 2017 106 289 395
Charged in period 83 95 178
--------------------- -------------- -------------- --------
At 30 September
2017 189 384 574
--------------------- -------------- -------------- --------
Net Book Value
At 1 April 2016 100 86 186
--------------------- -------------- -------------- --------
At 1 April 2017 1,622 801 2,423
--------------------- -------------- -------------- --------
At 30 September
2017 1,516 738 2,254
--------------------- -------------- -------------- --------
7 Cash and Cash Equivalents
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
30 Sept 30 Sep 31 Mar
2017 2016 2017
--------------------- ------------ ------------ ------------
GBP'000 GBP'000 GBP'000
Cash at bank and in
hand 9,498 7,888 9,033
9,498 7,888 9,033
--------------------- ------------ ------------ ------------
Included in the cash balance is a cash deposit held in the
Group's name with its bankers of GBP1.27m (2016: GBP1.27m) 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
IR BABFTMBIBBJR
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