TIDMRMV
RNS Number : 9847G
Rightmove Plc
30 July 2021
Embargoed until 7:00 on 30 July 2021
HALF YEAR ANNOUNCEMENT FOR RIGHTMOVE PLC - SIX MONTHSED 30 JUNE
2021
Rightmove plc, the UK's largest property portal, today announces
its unaudited results for the six months ended 30 June 2021.
Financial Highlights
H1 2021 H1 2020 H1 2019 Change vs 2020 Change vs 2019
----------------------------------- ---------- ---------- ---------- --------------- ---------------
Revenue GBP149.9m GBP94.8m GBP143.9m +58% +4%
Operating profit GBP114.9m GBP61.7m GBP108.2m +86% +6%
Underlying operating profit (1) GBP117.1m GBP61.4m GBP111.0m +91% +5%
Interim dividend 3.0p - 2.8p - +7%
Basic earnings per share 10.8p 5.7p 9.9p +89% +9%
Underlying earnings per share (2) 11.0p 5.7p 10.2p +93% +8%
-- Revenue up 58% on 2020, reflecting the growth in customer
spending and ARPA over the first six months of 2021. Revenue is up
GBP6m/4% on 2019, due to growth in Agency and Other revenues,
partially offset by a decline in New Homes revenues
-- Operating profit of GBP114.9m, up 86% on 2020 (2020: GBP61.7m) and 6% on 2019 (GBP108.2m)
-- Underlying operating profit of GBP117.1m, up 91% on 2020
(2020: GBP61.4m) and 5% on 2019 (GBP111.0m)
-- Basic earnings per share up 89% to 10.8p (2020: 5.7p),
underlying earnings per share 11.0p (2020: 5.7p). Compared to 2019,
basic earnings per share up 9% from 9.9p, underlying earnings per
share up 8% from 10.2p
-- Interim dividend for 2021 of 3.0p (2020: nil; 2019: 2.8p) per ordinary share
-- GBP128.3m of cash returned to shareholders through share
buybacks and dividends in the first half of 2021 (2020: GBP30.1m;
2019: GBP54.0m)
-- Cash at the end of the period of GBP67.7m (31 December 2020: GBP96.7m)
Operational highlights
-- Average Revenue Per Advertiser (ARPA) (3) up 63% to GBP1,163
per month, our highest ever ARPA (2020: GBP712; 2019: GBP1,077)
-- Relative to June 2019, Agency ARPA is up by GBP107 (11%),
driven primarily by product purchases
-- Strong uptake of our premium Optimiser 2020 package, with 16%
of agents now subscribing to the package, up from 9% in December
2020
-- This strong growth in Agency ARPA has been slightly offset by
the New Homes market, where high demand has reduced one-off
marketing by developers
-- Membership numbers are broadly flat since the start of the
year at 19,116; with 16,052 (+130) Agency branches and 3,064 (-211)
New Homes developments (31 December 2020: 15,922 and 3,275; 31
December 2019: 16,347 and 3,462)
-- Rightmove's position as the place home-hunters turn to first
was further strengthened, with market share of time on portals at
90% (4)
-- Time on site averaged 1.7 billion(5) minutes per month over
the period (2020: 1.1 billion; 2019 1.1 billion), reflecting
Rightmove's trusted brand and the strong property market. Site
visits of 1.4 billion(5) (2020: 890 million; 2019: 845 million), up
56% year on year
-- Continuous innovation for customers with the launch of our
Advanced Listings product for New Homes developers, which has
already been taken-up by over 21% of New Homes properties on
site
-- Our new Online Conditional Auction advertising product, which
demystifies the conditional auction process for home-hunters, is
now live. In response to the initiative, four additional auction
providers will be integrated in Q3
-- Innovation to give home-hunters increased financial
confidence earlier in their search process, through our online
mortgage journey. Potential borrowers sent over twice as many
mortgage leads in H1 2021 as H1 2020, which have converted into
three times as many Decisions in Principle as H1 2020.
(1) Underlying Operating Profit is operating profit before the
share-based payments, related NI charge and tax adjustments
(2) Underlying EPS is basic earnings per share calculated using underlying operating profit
(3) Average Revenue per Advertiser (ARPA) is calculated as
revenue from Agency and New Homes advertisers in a given month
divided by the total number of advertisers during the month,
measured as a monthly average over the six-month period.
(4) Source: Comscore, June 2021
(5) Source: Google Analytics
O utlook
The first half of 2021 has delivered healthy ARPA growth, record
low Agency churn and product innovation for both customers and
home-hunters. Strong growth in Agency ARPA - up 11% vs H1 2019 -
has been driven by our range of digital solutions enabling agents
to compete effectively for new listings in the busy market. The
buoyant New Homes market has temporarily softened New Homes ARPA,
by 1% relative to H1 2019.
We expect the second half of the year to follow a broadly
similar pattern, with good ARPA growth led by ongoing adoption of
Optimiser 2020, broadly stable Agency branches and continued growth
in our other businesses and the increased demand for properties
continuing to impact the availability of New Homes development
numbers.
Given the momentum in the first half, our catch-up investment in
people following the recruitment pause in 2020 continues apace.
While continuing lockdowns made recruiting more difficult than
normal in the first half, we have now been able to increase the
rate of recruitment - particularly in product development and sales
- and this will be reflected in the H2 headcount.
With a strong pipeline of product delivery planned for the
second half, a culture of continuous innovation and a commitment to
continue to make home moving more digital for our customers and
consumers, the Board is confident in delivering its expectations
for the full year and beyond.
Peter Brooks-Johnson, Chief Executive Officer , said:
"The first half of 2021 brought further lockdowns, instilling in
many a desire or motivation to move home, and the nation relied on
us to help them to find their new life, with a record 10.4bn
minutes spent searching and researching on Rightmove. The
innovation we have delivered to help home-hunters find their happy,
despite the restrictions, have been well used - with 200,000 video
viewings and 160,000 rental viewing appointments made on the
platform.
Our customers expect our platform to deliver the best exposure
for their brand, extremely effective advertising, and to help them
to grow their businesses. The strong take-up of our premium
Optimiser 2020 package shows agents' continued belief in the
Rightmove platform, as they invest in our digital products and
innovative algorithms to help them to identify more opportunities
to succeed.
Constantly innovating our platform and finding and developing
the best people are at the heart of everything we do. We are
committed to further increasing our diversity by promoting
Rightmove roles to under-represented ethnic groups and the LGBTQ+
community, and we'll continue to support all our people through our
mental health and wellbeing programme.
I'm excited about the range of our plans - including our new
digital mortgage and rental journeys - as we continue to help to
make home-moving easier in the UK."
The Company will publish a pre-recorded audio results
presentation at 7.30am today, followed by an audio Q&A session
for analysts and investors at 9.30am with Peter Brooks-Johnson,
CEO, and Alison Dolan, CFO.
Enquiries: Investor Relations
Investor.Relations@rightmove.co.uk
Rightmove Press Office Press@rightmove.co.uk
Half Year Statement
While the pandemic is not yet over and its devastating impacts
continue to be felt, Rightmove has emerged stronger from 2020, with
our investments bearing fruit with both home-hunters and customers.
Home-hunters have relied on Rightmove more than ever as the place
they turn to research the property market and to find their next
property. Our platform has generated record levels of engagement,
with an average of over 1.7 billion minutes per month and a total
of 1.4 billion site visits in the half year - both up 56% year on
year. Continuing development of MyRightmove has led to an increase
of 33% in new user registrations compared to H1 2020.
Our strategic focus to make home moving easier has continued
unabated. Giving home-hunters the tools to quickly assess the
suitability and affordability of the properties they view has been
a priority in the first half of 2021. Of note in the period:
-- 200,000 property videos were sent to home-hunters, instantly
saving time and, more importantly at the moment, reducing
contact;
-- the mortgage affordability widget has helped home-hunters to
assess what they can afford and has contributed to a doubling of
mortgage-lender introductions in H1 2021 vs H2 2020;
-- to help home-hunters to navigate the changing stamp duty
rates, we refreshed our stamp duty calculator.
Supporting our customers with unrivalled leads and products is
at the heart of what we do. The strong sales market has focused our
agent customers on winning the right to sell a home more
effectively and more efficiently. The value our customers attribute
to our products to help them to do this can be seen in the record
numbers of Agency customers upgrading to our premium Optimiser 2020
package during H1 2021 and the high number of Agency customers
purchasing products beyond their existing packages.
Agents and providers of online conditional auctions welcomed the
announcement of our new product to demystify online auctions and to
help them to create a new revenue stream. The first provider is now
live on Rightmove, with four more scheduled to go live in Q3.
The strong demand from home-hunters has led to many New Homes
developments being sold out completely off-plan, all but removing
the requirement for developers to advertise. We have seen a
reduction in development listings (although the number of
developers advertising with us has remained constant) and reduced
spend on digital marketing. Pleasingly, despite the strong demand
for New Homes, 21% of New Homes developments have upgraded to our
new Advanced Development Listings subscription package, launched in
April, which helps them to market more efficiently, providing
better engagement and lead generation.
Ongoing foreign travel restrictions impacted our Overseas
listings business, but the other Breadth businesses have all
performed strongly; particularly Data Services, where our unique
ability to bring insight and clarity around property data and
trends has been highlighted by the busier market; and Third-Party
advertising growth, driven by our ability to reach a specific
target audience at scale.
Our teams underpin everything that we do, and we continue to
invest in the welfare of our employees and in ensuring that we
support our people through the challenges of working from home and
the impending return to the office environment. Initiatives have
included a recent programme of wellbeing workshops called "How to
Thrive"; enhanced benefits, including mental health support; and
ensuring that all of our first aiders are trained in mental health
triage. Our return to the office will be phased in and on-going
there will be an enhanced flexible working policy.
We are proud that our board is gender balanced and we have
surpassed the Parker Review targets, and we are committed to
enhancing diversity and inclusion across our teams. To ensure our
recruiting embraces all forms of diversity we are using specialist
recruiting platforms to reach out to potential recruits with
diverse backgrounds and the LBGTQ+ community. Recognising that we
have a role to play in developing the next generation of talent and
increasing social mobility we are delighted to be launching the
Rightmove Generating Genius Scholarship for a university
student.
Financial performance
Revenue
Revenue increased by GBP55.1m/58% year on year to GBP149.9m
(2020: GBP94.8m), reflecting both the reversal of the 2020 covid
discount and strong product and ARPA growth during the first half
of 2021.
H1 2021 H1 2020 H1 2019 Change vs 2020 GBPm Change vs 2020 % Change vs 2019 %
GBPm GBPm GBPm
--------------- -------- -------- -------- -------------------- ----------------- -----------------
Agency 109.6 66.6 104.8 43.0 65% 5%
New Homes 25.3 17.3 27.8 8.0 46% (9%)
Other 15.0 10.9 11.3 4.1 38% 33%
--------------- -------- -------- -------- -------------------- ----------------- -----------------
Total revenue 149.9 94.8 143.9 55.1 58% 4%
--------------- -------- -------- -------- -------------------- ----------------- -----------------
30 June 31 Dec 2020 30 June 2019 Change vs 2020 Change vs 2020 % Change vs 2019 %
2021
------------------ -------- ------------ ------------- --------------- ----------------- -----------------
Agency branches 16,052 15,922 16,768 130 1% (4%)
New Homes devs 3,064 3,275 3,441 (211) (6%) (11%)
Total membership 19,116 19,197 20,209 (81) 0% (5%)
------------------ -------- ------------ ------------- --------------- ----------------- -----------------
Agency revenue increased by GBP43.0m year on year to GBP109.6m,
as customers increased their spend, 2020's discounts reversed and
we saw strong product purchase and package upgrades in response to
the buoyant market. Agency ARPA (6) increased by GBP445 to GBP1,130
(June 2020: GBP685). Agency customer numbers increased by 130
branches in the first half of the year to 16,052 - mostly from new
independent, single-branch agents.
New Homes revenue increased by GBP8.0m year-on-year to GBP25.3m,
with the reversal of the 2020 discount, and New Homes ARPA (7)
increased by GBP493 to GBP1,329 (June 2020: GBP836) per development
per month. However, the New Homes market has been forward-sold for
the entirety of the reporting period; some developers reduced
discretionary spend on our suite of digital advertising products
and development listings decreased by 211 developments in the first
half, as developments sold out and did not need to be
advertised.
Other revenue increased by GBP4.1m to GBP15.0m. Third Party
increases were driven by the higher website traffic, which resulted
in additional sold inventory; demand for Data Services products
increased due to the activity in the property market, which drove
higher volumes of our Surveyor Comparable Tool and Automated
Valuation Model; Mortgage revenues were up due to the contractual
year two price increase; Commercial revenues increased as customer
numbers grew; and Overseas was broadly flat due to the adverse
impact of the Covid travel restrictions.
Administration costs
Operating costs increased by GBP1.9m from GBP33.1m to GBP35.0m.
This includes a credit in relation to the release of the GBP2.4m
provision for the Van Mildert contingent consideration, as the
possibility of meeting the threshold performance criteria within
the remaining timescales, to the end of 2021, is remote.
Excluding the provision release, operating costs increased by
GBP4.3m:
-- GBP2.5m was due to the higher share-based payments charge,
reflecting the significant credits made in 2020 and new awards made
in March 2021 for the annual PSP and DSP schemes;
-- The remaining GBP1.8m increase in costs is primarily due to
higher headcount costs of GBP2.0m, from both (i) increased
investment in product development and sales heads and (ii) the
return to normal payroll levels, following the senior management
salary savings made in H1 2020 and the timing of the Coronavirus
Job Retention Scheme saving in H1 (which was repaid in H2).
Technology costs also increased by GBP0.3m, as higher website
traffic drove increased supplier costs, and other costs increased
GBP0.7m due to investment in recruitment, training and the new
mortgage proposition. The cost increases were partially offset by
GBP1.3m of one-off Covid savings, as employees continued to work
mostly at home, limiting travel and office maintenance costs.
Operating profit
H1 2021 H1 2020 H1 2019 Change vs Change vs 2019 GBPm
GBPm GBPm GBPm 2020 GBPm
--------------------------------------- ----------------- -------- -------- ----------- --------------------
Revenue 149.9 94.8 143.9 55.1 6.0
Administration costs -underlying (*) (32.8) (33.4) (32.9) 0.6 0.1
--------------------------------------- ----------------- -------- -------- ----------- --------------------
Underlying operating profit (1) 117.1 61.4 111.0 55.7 6.1
Share-based incentive charge/(credit) (2.2) 0.3 (2.8) (2.5) 0.6
--------------------------------------- ----------------- -------- -------- ----------- --------------------
Operating profit 114.9 61.7 108.2 53.2 6.7
--------------------------------------- ----------------- -------- -------- ----------- --------------------
* Admin costs-underlying are before the share-based incentives
charge, related NI and tax adjustments
Operating profit increased by GBP53.2m to GBP114.9m (2020:
GBP61.7m), with an operating profit margin of 77% (2020: 65%).
Underlying operating profit, before the impact of the
share-based incentive charges, is GBP117.1m, with an underlying
margin of 78% (2020: 65%). When also removing the impact of the
one-off release of the Van Mildert contingent consideration
provision of GBP2.4m, the adjusted underlying operating profit is
GBP114.7m with an adjusted margin of 77%.
Earnings per share (EPS)
Basic EPS increased by 89% to 10.8p (2020: 5.7p; 2019: 9.9p),
driven by the increase in year on year profit, together with the
benefit of reinstating the share buyback programme - which reduced
the weighted average number of ordinary shares in issue to 865.9m
(2020: 871.7m; 2019: 888.2m).
Underlying Basic EPS (based on underlying operating profit)
increased by 93% to 11.0p (2020: 5.7p; 2019: 10.2p)
Balance sheet
Summary consolidated statement of financial position
30 June 31 December 30 June Change from
2021 2020 2020 Dec 2020
GBPm GBPm GBPm GBPm
------------------------------- -------- ------------ -------- ------------
Property, plant and equipment 13.3 13.9 12.7 (0.6)
Intangible assets 21.6 22.1 22.3 (0.5)
Deferred tax asset 3.0 2.8 2.7 0.2
Trade and other receivables 22.0 23.5 12.8 (1.5)
Contract assets 0.1 0.3 0.4 (0.2)
Income tax receivable 0.1 1.2 - (1.1)
Cash 67.7 96.7 50.3 (29.0)
Trade and other payables (22.0) (18.9) (22.5) (3.1)
Contract liabilities (1.8) (1.6) (1.3) (0.2)
Lease liabilities (12.0) (12.3) (11.5) 0.3
Deferred tax liability (1.0) (0.9) (1.0) (0.1)
Provisions (1.2) (3.6) (3.5) 2.4
Income tax payable - - (0.9) -
------------------------------- -------- ------------ -------- ------------
Net assets 89.8 123.1 60.5 (33.3)
------------------------------- -------- ------------ -------- ------------
Rightmove's balance sheet as at 30 June 2021 shows total equity
of GBP89.8m (December 2020: GBP123.1m). The decrease in net assets
from December 2020 reflects the strong trading position and the
return of cash to shareholders by way of dividends and share
buybacks in 2021.
Trade receivables of GBP18.2m, included within trade and other
receivables, are in line with December 2020 (GBP18.3m). Debtor days
have reduced and reverted to pre pandemic levels, as we have now
fully returned to usual business terms and ended any extraordinary
extensions to payment terms. Trade and other payables increased due
to timing of accruals. Trade payments continue to be made in line
with contractually agreed terms.
Cash flow and liquidity
Rightmove remained debt-free during the period and cash
generation remained strong, with cash generated from operating
activities of GBP121.5m (June 2020: GBP77.3m) and operating cash
conversion in excess of 100% (8) . Reflecting this strong
liquidity, we took the decision to cancel our revolving credit
facility of GBP10m.
The closing Group cash balance at 30 June 2020 was GBP67.7m
(2020: GBP96.7m). The reduction since December is due to the return
of GBP128.3m to shareholders through share buy backs of GBP89.4m
(2020: GBP30.1m) and the payment of a final 2020 dividend of
GBP38.9m (2020: nil). We reiterate our intention to end the
financial year with a cash balance of approximately GBP50
million.
Surplus cash continues to be invested primarily in short-term,
easily accessible money market deposits.
Shareholder returns
Consistent with the policy of growing dividends in line with the
increase in Underlying EPS, the Directors are recommending an
interim dividend of [3.0p] per ordinary share, which will be paid
on 29 October 2021 to all shareholders on the register at 1 October
2021.
Consistent with the balance sheet cash position in the paragraph
above, we intend to continue the share buyback programme in the
second half of 2021.
Alison Dolan
Chief Financial Officer
(6) Agency ARPA is calculated as revenue from Agency advertisers
in a given month, divided by the total number of advertisers during
the month, measured as a monthly average over the year
(7) New Homes ARPA is calculated as revenue from New Homes
developers in a given month divided by the total number of
developers during the month, measured as a monthly average over the
year
(8) Cash generated from operating activities of GBP121.5m
compared to operating profit, as reported in the income statement
of GBP114.9m.
Principal risks and uncertainties
A description of the principal risks and uncertainties faced by
the Group in 2021 is set out in the table below, together with the
potential impact and the monitoring and mitigating activities.
Covid-19
The Covid pandemic and measures taken to contain it have had an
unprecedented impact on the UK economy. Management acted swiftly in
2020 to mitigate the impact of the pandemic on the Group, its
employees, customers and other stakeholders. The housing market
itself recovered quickly in 2020 and has continued to strengthen
throughout the first half of 2021, as consumers reassessed their
housing priorities and sought to benefit from the stamp duty
holiday. It remains possible, however, that the measures that the
Government continues to take, in order to contain the pandemic,
could increase the macroeconomic risk to the business (Risk 1).
We recognise that the Group is exposed to risks wider than those
listed. However, we have disclosed those that we believe are likely
to have the greatest impact on the Group's ability to deliver its
strategic objectives and those that have been the subject of
discussion at recent Board and Audit Committee meetings.
Key risk and description Impact Mitigation
1 Macroeconomic Substantially fewer
environment housing transactions * Monitoring of the housing market, including leading
The Group derives almost than is normal may lead indicators and membership trends.
all its revenues from to a reduction or
the UK and is therefore consolidation
dependent on the in the number of Agency * Continuing to provide the most significant and
macroeconomic branches or a reduction effective exposure for customers' brands and
conditions surrounding in the number of New properties.
the UK housing market Home developments
and consumer confidence, advertised;
which impacts on both of which are a * Remain the largest source of high-quality leads,
property major determinant of the offer value-adding products and packages and help
transaction levels. Group's revenue. drive operational efficiencies for our customers;
A more uncertain macro thereby embedding the value of our membership.
and political
environment may also
lead to a lengthening of * Maintaining a flexible cost base that can respond to
the typical changing conditions.
property transaction
cycle, resulting in cash
flow issues for smaller
agents with lower stock
levels.
In addition, a
contraction in the
volume of transactions
in the UK housing market
could lead
to a reduction in
advertisers' marketing
budgets which could
reduce the demand for
the Group's
property advertising
products.
------------------------- ------------------------- ------------------------------------------------------------
2 Competitive environment Increased competition
The Group operates in a may impact Rightmove's * Communication of Rightmove's value to advertisers.
competitive marketplace, ability to grow revenue
with attractive margins due to the potential
and low barriers loss of audience, * Continued investment in our account management teams
to entry. This may advertisers and demand to help customers run their businesses more
result in increased for additional efficiently.
competition from advertising products.
existing competitors, or
new entrants * Sustained marketing investment in the Rightmove
targeting the Group's brand.
primary revenue markets.
* Sustained investment and innovation in serving all of
our audiences.
------------------------- ------------------------- ------------------------------------------------------------
3 New or disruptive Failing to innovate may
technologies and impact Rightmove's * Continual improvements to our platforms.
changing consumer ability to grow revenue
behaviours due to the potential
Rightmove operates in a loss * Developing our product proposition to continue
fast-moving online of audience engagement, meeting our customers' needs and evolving business
marketplace. Failure to advertisers and demand models.
innovate or adopt new for additional
technologies advertising products.
or failure to adapt to * Large in-house technology team with culture of
changing customer innovation.
business models and
evolving consumer
behaviour may * Ongoing monitoring of consumer behaviour and annual
impact the Group's 'Hackathons' which allow employees to spend time
ability to offer the during work hours to develop their own online
best products and property related ideas.
services to its
advertisers and
the best consumer * Regular contact with the start-up and prop-tech
experience. communities to stay abreast of market innovations.
------------------------- ------------------------- ------------------------------------------------------------
4 Cyber security and IT Any loss of website
systems availability, or theft * Disaster Recovery and Business Continuity Plans
The Group has a high or misuse of data held subject to regular testing and review.
dependency on technology within the Group's
and internal IT systems. databases
In today's digital and IT systems, could * Use of three data centres to load- balance and ensure
world there are result in reputational optimal performance and business continuity
increased risks damage to the Group as a capability.
associated with external result of loss of
cyber-attacks which consumer
could result and customer confidence * Regular testing of the security of the IT systems and
in the inability to in the Rightmove brand; platforms including penetration testing.
operate our platforms. A and financial loss
security breach, such as arising from potential
corruption or loss of penalties and fines. * Ongoing investment in security systems.
key data, may disrupt
the efficiency and
functioning of the * Ongoing monitoring of external threats.
Group's day to day
operations.
* Regular internal information security training and
'spearphishing' tests.
------------------------- ------------------------- ------------------------------------------------------------
5 Securing and retaining The inability to recruit
the right talent and retain talented * Ongoing succession planning and development of future
Our continued success is people could impact our leaders.
dependent on our ability ability to maintain our
to attract, recruit, financial performance
retain and motivate and deliver growth. * Payment of competitive reward, including a blend of
our highly skilled When key staff leave or short and long-term incentives for senior management.
workforce. retire, there is a risk
that knowledge or
competitive advantage is * The ability for all employees to participate in the
lost. success of the Group through the SIP and SAYE
schemes.
* Regular staff communication and engagement.
* Maintaining the culture of the Group, which generates
significant staff loyalty.
------------------------- ------------------------- ------------------------------------------------------------
Next trading update
Our next scheduled reporting date is 25 February 2022, when we
will announce our results for the year ending 2021.
Responsibility Statement of the Directors in respect of the Half
Year Report 2021
We confirm that to the best of our knowledge:
-- the condensed set of financial statements has been prepared
in accordance with IAS 34 Interim Financial Reporting adopted for
the use in the UK;
-- the interim management report includes a fair review of the information required by:
(a) DTR 4.2.7R of the Disclosure Guidance and Transparency
Rules, being an indication of important events that have occurred
during the first six months of the financial year and their impact
on the condensed set of financial statements; and a description of
the principal risks and uncertainties for the remaining six months
of the year; and
(b) DTR 4.2.8R of the Disclosure Guidance and Transparency
Rules, being related party transactions that have taken place in
the first six months of the current financial year and that have
materially affected the financial position or performance of the
entity during that period; and any changes in the related party
transactions described in the last annual report that could do
so.
By order of the Board of directors
Peter Brooks-Johnson Alison Dolan
Chief Executive Officer Chief Financial Officer
30 July 2021
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE
INCOME
for the six months ended 30 June 2021
Note Six months ended Six months ended Year ended
30 June 2021 30 June 2020 31 December
2020
GBP000 GBP000 GBP000
------------------------------------------------------- ------ ------------------ ------------------ -------------
Revenue 4,5 149,890 94,815 205,717
------------------------------------------------------- ------ ------------------ ------------------ -------------
Administrative expenses (34,985) (33,116) (70,575)
Operating profit 114,905 61,699 135,142
------------------------------------------------------- ------ ------------------ ------------------ -------------
117,142 61,373 137,521
Operating profit before share-based incentive charges
Share- based incentive (charge)/credit (2,237) 326 (2,379)
Financial income 12 131 151
Financial expenses (248) (259) (478)
Net financial expenses (236) (128) (327)
------------------------------------------------------- ------ ------------------ ------------------ -------------
Profit before tax 114,669 61,571 134,815
Income tax expense 9 (21,374) (11,615) (25,040)
Profit for the period being total comprehensive income 93,295 49,956 109,775
------------------------------------------------------- ------ ------------------ ------------------ -------------
Attributable to:
Equity holders of the Parent 93,295 49,956 109,775
------------------------------------------------------- ------ ------------------ ------------------ -------------
Earnings per share (pence)
Basic 7 10.8 5.7 12.6
Diluted 7 10.8 5.7 12.6
Dividends per share (pence) 8 4.5p nil nil
Total dividends paid 8 GBP38.9m nil nil
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL
POSITION
Company number 06426485
at 30 June 2021
Note 30 June 2021 30 June 2020 31 December 2020
GBP000 GBP000 GBP000
------------------------------------------------------------ ----- ------------- ------------- -------------------
Non-current assets
Property, plant and equipment 13,316 12,654 13,852
Intangible assets 21,631 22,324 22,112
Deferred tax assets 9 3,023 2,654 2,843
------------------------------------------------------------ ----- ------------- ------------- -------------------
Total non-current assets 37,970 37,632 38,807
------------------------------------------------------------ ----- ------------- ------------- -------------------
Current assets
Trade and other receivables 10 21,961 12,751 23,450
Contract assets 5 150 428 334
Income tax receivable 65 - 1,163
Cash and cash equivalents 67,686 50,306 96,690
------------------------------------------------------------ ----- ------------- ------------- -------------------
Total current assets 89,862 63,485 121,637
------------------------------------------------------------ ----- ------------- ------------- -------------------
Total assets 127,832 101,117 160,444
------------------------------------------------------------ ----- ------------- ------------- -------------------
Current liabilities
Trade and other payables 11 (22,020) (22,517) (18,925)
Lease liabilities (2,138) (1,706) (2,023)
Contract liabilities 5 (1,765) (1,263) (1,570)
Income tax payable - (927) -
Provisions 12 (624) (558) (666)
------------------------------------------------------------ ----- ------------- ------------- -------------------
Total current liabilities (26,547) (26,971) (23,184)
Non-current liabilities
Lease liabilities (9,867) (9,768) (10,287)
Provisions 12 (592) (2,941) (2,969)
Deferred tax liability (1,007) (916) (859)
------------------------------------------------------------ ----- ------------- ------------- -------------------
Total non-current liabilities (11,466) (13,625) (14,115)
------------------------------------------------------------ ----- ------------- ------------- -------------------
Total liabilities (38,013) (40,596) (37,299)
------------------------------------------------------------ ----- ------------- ------------- -------------------
Net assets 89,819 60,521 123,145
------------------------------------------------------------ ----- ------------- ------------- -------------------
Equity
Share capital 872 887 887
Other reserves 560 545 545
Retained earnings (net of own shares held) 88,387 59,089 121,713
------------------------------------------------------------ ----- ------------- ------------- -----------------
Total equity attributable to the equity holders of the
Parent 89,819 60,521 123,145
------------------------------------------------------------ ----- ------------- ------------- -----------------
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
for the six months ended 30 June 2021
Note 6 months ended 6 months ended Year ended
30 June 2021 30 June 2020 31 December 2020
GBP000 GBP000 GBP000
------------------------------------------------------ ----- --------------- --------------- -----------------
Cash flows from operating activities
Profit for the period 93,295 49,956 109,775
Adjustments for:
Depreciation charges 1,697 1,564 3,259
Amortisation charges 499 501 1,011
Financial income (12) (131) (151)
Financial expenses 248 259 478
Gain/loss on disposal of fixed assets 15 - (20)
Share-based payments 6 1,940 (182) 2,102
Income tax expense 9 21,374 11,615 25,040
------------------------------------------------------ ----- --------------- --------------- -----------------
Operating cash flow before changes in working capital 119,056 63,582 141,494
Decrease in trade and other receivables 1,485 11,209 507
Increase/(decrease) in trade and other payables 3,046 3,021 (572)
(Decrease)/Increase in provisions (2,418) 329 465
Decrease in contract assets 5 184 1 95
Increase/(decrease) in contract liabilities 5 195 (848) (541)
Cash generated from operating activities 121,548 77,294 141,448
Financial expenses paid (118) (118) (198)
Income taxes paid (20,129) (29,845) (44,959)
------------------------------------------------------ ----- --------------- --------------- -----------------
Net cash from operating activities 101,301 47,331 96,291
------------------------------------------------------ ----- --------------- --------------- -----------------
Cash flows used in investing activities
Interest received on cash and cash equivalents 17 156 160
Reduction in money market deposits - 4,141 4,141
Acquisition of property, plant and equipment (388) (1,249) (2,308)
Acquisition of intangible assets (19) (871) (1,169)
Net cash from investing activities (390) 2,177 824
------------------------------------------------------ ----- --------------- --------------- -----------------
Cash flows from financing activities
(Net dividends paid)/Unclaimed dividends 8 (38,898) 2 2
Purchase of own shares for cancellation 13 (89,374) (30,125) (30,125)
Purchase of own shares for share incentive plans - - (765)
Share-related expenses (577) (232) (211)
Payment of lease liabilities (1,226) (1,043) (2,159)
Proceeds on exercise of share-based incentives 160 79 716
Net cash used in financing activities (129,915) (31,319) (32,542)
------------------------------------------------------ ----- --------------- --------------- -----------------
Net increase in cash and cash equivalents (29,004) 18,189 64,573
Cash and cash equivalents at 1 January 96,690 32,117 32,117
------------------------------------------------------ ----- --------------- --------------- -----------------
Cash and cash equivalents at period end 67,686 50,306 96,690
------------------------------------------------------ ----- --------------- --------------- -----------------
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN
SHAREHOLDERS' EQUITY
for the six months ended 30 June 2021
Own shares held Reverse acquisition
Share GBP000 Other reserve Retained Total
capital reserves GBP000 earnings equity
GBP000 GBP000 GBP000 GBP000
----------------------- --------- ---------------- ---------- -------------------- ---------- ----------
At 1 January 2020 892 (11,744) 402 138 51,652 41,340
Total comprehensive
income
Profit for the period - - - - 49,956 49,956
Transactions with -
owners recorded
directly in equity
Share-based payments - - - - (182) (182)
Tax debit in respect
of share-based
incentives recognised
directly in equity - - - - (336) (336)
Exercise of
share-based
incentives - 466 - - (387) 79
Cancellation of own
shares (5) - 5 - (30,125) (30,125)
Share-related expenses - - - - (211) (211)
----------------------- --------- ---------------- ---------- -------------------- ---------- ----------
At 30 June 2020 887 (11,278) 407 138 70,367 60,521
----------------------- --------- ---------------- ---------- -------------------- ---------- ----------
At 1 January 2020 892 (11,744) 402 138 51,652 41,340
Total comprehensive
income
Profit for the year - - - - 109,775 109,775
Transactions with
owners recorded
directly in equity
Share-based payments - - - - 2,102 2,102
Tax credit in respect
of share-based
incentives recognised
directly in equity - - - - 311 311
Net dividends - - - - 2 2
Exercise of
share-based
incentives - 957 - - (241) 716
Purchase of shares for
share incentive plan - (765) - - - (765)
Cancellation of own
shares (5) - 5 - (30,125) (30,125)
Share-related expenses - - - - (211) (211)
-----------------------
At 31 December 2020 887 (11,552) 407 138 133,265 123,145
----------------------- --------- ---------------- ---------- -------------------- ---------- ----------
At 1 January 2021 887 (11,552) 407 138 133,265 123,145
Total comprehensive
income
Profit for the period - - - - 93,295 93,295
Transactions with
owners recorded
directly in equity
Share-based payments - - - - 1,940 1,940
Tax debit in respect
of share-based
incentives recognised
directly in equity - - - - 178 178
Exercise of
share-based
incentives - 469 - - (309) 160
Cancellation of own
shares (15) - 15 - (89,374) (89,374)
Net dividends paid - - - - (38,898) (38,898)
Share-related expenses - - - - (627) (627)
----------------------- --------- ---------------- ---------- -------------------- ---------- ----------
At 30 June 2021 872 (11,083) 422 138 99,470 89,819
----------------------- --------- ---------------- ---------- -------------------- ---------- ----------
NOTES
1 General information
Rightmove plc (the Company) is a Company registered in England
(Company no. 6426485) domiciled in the United Kingdom (UK). The
condensed consolidated interim financial statements ('interim
financial statements') as at and for the six months ended 30 June
2021 comprise the Company and its subsidiaries (together referred
to as 'the Group'). The principal business of the Group is the
operation of the Rightmove platforms, which have the largest
audience of any UK property portal (as measured by time on
site).
The consolidated financial statements of the Group as at and for
the year ended 31 December 2020 are available upon request to the
Company Secretary from the Company's registered office at 2
Caldecotte Lake Business Park, Caldecotte Lake Drive, Caldecotte,
Milton Keynes, MK7 8LE or are available on the corporate website at
plc.rightmove.co.uk.
Basis of preparation
These interim financial statements for the six months ended 30
June 2021 have been prepared in accordance with IAS 34 Interim
Financial Reporting and should be read in conjunction with the
Group's last annual consolidated financial statements as at and for
the year ended 31 December 2020 ('last annual financial
statements'). The interim financial statements do not include all
of the information required for a complete set of financial
statements prepared in accordance with IFRS Standards. However,
selected explanatory notes are included to explain events and
transactions that are significant to an understanding of the
changes in the Group's financial position and performance since the
last annual financial statements.
The interim financial statements were approved by the Board of
directors on 30 July 2021. The half year results for the current
and comparative period are unaudited. The auditor, KPMG LLP, has
carried out a review of the interim financial statements and its
report is set out at the end of this document.
Alternative performance measures
In the analysis of the Group's financial performance, certain
information disclosed in the financial statements may be prepared
on a non-GAAP basis or has been derived from amounts calculated in
accordance with IFRS but are not themselves an expressly permitted
GAAP measure. These measures are reported in line with the way in
which financial information is analysed by management and designed
to increase comparability of the Group's year-on-year financial
position, based on its operational activity. The key alternative
performance measures presented by the Group are:
-- Underlying operating profit: which is defined as operating
profit before share-based payments charges (including the related
National Insurance and appropriate tax adjustments); and
-- Underlying basic earnings per share (EPS): which is defined
as profit for the year before share-based payments charges
(including the related National Insurance and appropriate tax
adjustments), divided by the weighted average number of ordinary
shares in issue for the period.
The directors believe that these alternative performance
measures provide a more appropriate measure of the Group's business
performance, as share-based payments are a significant non-cash
charge and are largely driven by a valuation model rather than
reflecting operational activity. The directors therefore consider
underlying operating profit to be the most appropriate indicator of
the performance of the business and year-on-year trends.
Going concern
The directors have performed a detailed and extended going
concern review and tested the Group's liquidity in a range of
scenarios, as set out below.
Throughout the period, the Group was debt-free, remained cash
generative and had a cash balance of GBP67.7m at 30 June 2021 (31
December 2020: GBP96.7m).
The Group resumed its share buy-back programme in March 2021,
buying back shares to the value of GBP89.4m by 30 June 2021, and
paid a GBP38.9m dividend in May 2021. The Group also cancelled its
GBP10m committed revolving loan facility with Barclays Bank plc in
April 2021, reflecting the Group's strong cash position and the
fact that the facility was never used.
Covid-19 had an initially adverse impact on the properly market
in 2020, as a result of which the Group provided customer discounts
of up to 75%, which resulted in a 29% reduction in 2020 revenues
compared to the prior year. Discounts to UK customers ended in
October 2020, at which point it was clear that the market was
rebounding strongly, as consumer lifestyle choices changed
impacting positively the level of property transactions. No further
discounts were provided to UK customers in 2021, and all Overseas
discounts ended in March 2021.
In stress testing the future cash flows of the Group, the
directors modelled a range of scenarios which considered the effect
on the Group of reductions of varying severity in the number of
housing transactions for at least 12 months from the date of the
half year announcement ("the going concern period") and modelled
the likely timing of customer cashflows during the going concern
period. These included severe, but plausible downside scenarios.
The model considered the impact of changes in the key drivers of
the Group's revenues, including customer numbers and average
revenue per advertiser (ARPA), as well as the potential impact of
any other market drivers or macro-economic changes that could
impact the level of housing transactions and customer demand. In
all the scenarios tested, the Group remained cash positive and
debt-free.
The directors are confident that the Group will remain cash
positive and will have sufficient funds to continue to meet its
liabilities as they fall due for a period of at least a period of
12 months from the date of the half year announcement; and have
therefore prepared the half year announcement on a going concern
basis.
2 Significant accounting policies
The accounting policies applied in these interim financial
statements are the same as those applied by the Group's
consolidated financial statements as at and for the year ended 31
December 2020. The policy for recognising and measuring income
taxes is consistent with that applied in the previous interim
period and is described in note 9.
3 Judgements and estimates
In preparing these interim financial statements, management has
made judgements and estimates that affect the application of
accounting policies and the reported amounts of assets and
liabilities, income and expenses. Actual results may differ from
these estimates. The significant judgements made by management in
applying the Groups' accounting policies and the key sources of
estimation uncertainty were the same as those described in the last
annual financial statements.
4 Operating segments
The Group determines and presents operating segments based on
internal information that is provided to the Chief Executive
Officer, who is the Group's Chief Operating Decision Maker. The
Group's reportable segments are as follows:
-- The Agency segment which provides resale and lettings
property advertising services on Rightmove's platforms; and
-- The New Homes segment which provides property advertising
services to new home developers and housing associations on
Rightmove's platforms.
The Other segment, which represents activities under the
reportable segments threshold, comprises Overseas and Commercial
property advertising services and non-property advertising services
which include our Third Party advertising and Data Services.
Management monitors the business segments at a revenue and trade
receivables level separately for the purpose of making decisions
about resources to be allocated and of assessing performance. All
revenues in all periods are derived from third parties and there is
no inter-segment revenue.
Operating costs, financial income, financial expenses and income
taxes in relation to the Agency, New Homes and the Other segment
are managed on a centralised basis at a Rightmove Group Limited
level and, as there are no internal measures of individual segment
profitability, relevant disclosures have been shown under the
heading of Central in the table below.
New Homes Sub total GBP000
Agency GBP000 Other Central Adjustments Total GBP000
GBP000 GBP000 GBP000 GBP000
Six months ended
30 June 2021
Revenue 109,532 25,328 134,860 15,030 - - 149,890
Operating profit(1) - - - - 117,142 (2,237) 114,905
Depre'tn & amort'tn - - - - (2,197) (-) (2,197)
Financial income - - - - 12 - 12
Financial expenses - - - - (248) - (248)
Trade receivables(2) 5,078 9,558 14,636 2,718 - 155 17,509
Other segment assets - - - - 108,939 26 108,965
Segment liabilities - - - - (36,475) (182) (36,657)
Capital
expenditure(4) - - - - 407 - 407
Six months ended
30 June 2020
Revenue 66,573 17,277 83,850 10,965 - - 94,815
Operating profit(1) - - - - 61,373 326 61,699
Depre'tn & amort'tn - - - - (2,065) (-) (2,065)
Financial income - - - - 131 - 131
Financial expenses - - - - (259) - (259)
Trade receivables(2) 1,536 3,718 5,254 2,776 - 253(3) 8,283
Other segment assets - - - - 92,684 150(3) 92,834
Segment liabilities - - - - (40,193) (403)(3) (40,596)
Capital
expenditure(4) - - - - 2,120 - 2,120
Six months ended
31 December 2020
Revenue 141,636 40,656 182,292 23,425 - - 205,717
Operating profit(1) - - - - 137,521 (2,379) 135,142
Depre'tn & amort'tn - - - - (4,270) (-) (4,270)
Financial income - - - - 151 - 151
Financial expenses - - - - (478) - (478)
Trade receivables(2) 4,776 9,683 14,459 2,811 - 127(3) 17,397
Other segment assets - - - - 140,968 57(3) 141,025
Segment liabilities - - - - (35,093) (184)(3) (35,277)
Capital
expenditure(4) - - - - (3,476) - (3,476)
(1) Operating profit is stated after the charge for
depreciation, amortisation and share-based payments (including the
related NI and tax adjustments)
(2) The only segment assets that are separately monitored by the
Chief Operating Decision Maker relate to trade receivables net of
any associated provision for impairment. All other segment assets
are reported on a centralised basis.
(3) The adjustments column reflects the reclassification of
credit balances in trade receivables and debit balances in accounts
payable made on consolidation for statutory accounts purposes.
(4) Capital expenditure consists of purchases of property, plant
and equipment and intangible assets.
5 Revenue
The Group's operations and main revenue streams are those
described in the last annual financial statements. The Group's
revenue is derived from contracts with customers.
Disaggregation of revenue
In the following table, revenue is disaggregated by property and
non-property advertising revenue. The table also includes a
reconciliation of the disaggregated revenue with the Group's
reportable segments (see Note 4).
Six months ended Estate Agency New Homes Other Total
30 June 2021
GBP000 GBP000 GBP000 GBP000
Revenue stream
Property products 109,532 25,328 6,600 141,460
Non-property
products - - 8,430 8,430
------------------- -------------- ---------- -------- --------
109,532 25,328 15,030 149,890
------------------- -------------- ---------- -------- --------
Six months ended Estate Agency New Homes Other Total
30 June 2020 GBP000 GBP000 GBP000 GBP000
------------------- -------------- ---------- -------- --------
Revenue stream
Property products 66,573 17,277 4,828 88,678
Non-property
products - - 6,137 6,137
------------------- -------------- ---------- -------- --------
66,573 17,277 10,965 94,815
------------------- -------------- ---------- -------- --------
Year ended Estate Agency New Homes Other Total
31 December 2020 GBP000 GBP000 GBP000 GBP000
------------------- -------------- ---------- -------- --------
Revenue stream
Property products 141,636 40,656 9,832 192,124
Non-property
products - - 13,593 13,593
------------------- -------------- ---------- -------- --------
141,636 40,656 23,425 205,717
------------------- -------------- ---------- -------- --------
Contract balances
The following table provides information about receivables,
contract assets and contract liabilities from contracts with
customers.
30 June 30 June 31 December
Note 2021 2020 2020
GBP000 GBP000 GBP000
---------------------------------- ------- -------- -------- ------------
Trade receivables (included
in trade and other receivables) 10 18,215 9,166 18,277
Contract assets 150 428 334
Contract liabilities (1,765) (1,263) (1,570)
---------------------------------- ------- -------- -------- ------------
The contract assets primarily relate to the Group's rights to
consideration for services provided but not invoiced at the
reporting date. The contract assets are transferred to trade
receivables when invoiced and the rights have become
unconditional.
The contract liabilities primarily relate to the advance
consideration received from Estate Agency, Overseas and Commercial
customers, for which revenue is recognised as or when the services
are provided.
6 Share-based payments
The Group operates share-based incentive schemes for executive
directors and employees: a Savings Related Share Option Scheme
(Sharesave Plan) and Share Incentive Plan (SIP) for all employees;
a performance share plan (PSP) for Directors; and a Deferred Share
Bonus Plan (DSP) for the Directors and selected senior management.
There is also a restricted share plan (RSP) in operation which is
awarded on an ad-hoc basis, based on service conditions only, for
selected senior individuals.
Two new share-based incentive awards were made during the period
to 30 June 2021:
-- 269,968 PSP awards were granted on 3 March 2021 subject to
Earnings Per Share (EPS) and Total Shareholders Return (TSR)
performance. Performance will be measured over three financial
years (1 January 2021 -31 December 2023). The vesting on 3 March
2024 of 50% of the 2021 PSP awards will be dependent on the
relative TSR performance condition measured over the three-year
performance period, with the remaining 50% dependent on the
satisfaction of the EPS growth target. The PSP awards have been
valued using the Monte Carlo model for the TSR element and the
Black Scholes model for the EPS element.
-- 329,380 DSP nil cost shares were awarded to executives and
senior management on 3 March 2021 following the achievement of the
2020 internal performance targets, with the right to exercise the
shares deferred until March 2023. The DSP awards were valued using
the Black Scholes model.
The total share-based payments charge for the six months ended
30 June 2021 relating to all share-based incentive plans was
GBP1,940,000 (2020: GBP182,000 credit). In addition, the related NI
charge for the six months ended 30 June 2021 relating to all awards
was GBP297,000 (2020: GBP144,000 credit). The total charge in
relation to share-based payments was GBP2,237,000 (2020: GBP326,000
credit).
7 Earnings per share (EPS)
Pence per share
GBP000 Basic Diluted
Six months ended 30 June 2021
Profit after tax 93,295 10.8 10.8
Underlying profit after tax 95,043 11.0 11.0
Six months ended 30 June 2020
Profit after tax 49,956 5.7 5.7
Underlying profit after tax 49,750 5.7 5.7
Year ended 31 December 2020
Profit after tax 109,775 12.6 12.6
Underlying profit after tax 111,574 12.8 12.8
-------------------------------- --------------- ------------ ---------------
Weighted average number of ordinary shares (basic)
6 months ended 6 months ended Year ended
30 June 2021 30 June 2020 31 December 2020
Number of shares Number of shares Number of shares
---------------------------------------------------------- ------------------ ------------------ ------------------
Issued ordinary shares at 1 January less ordinary shares
held by the EBT and SIP Trust 884,234,565 888,422,516 888,422,516
Less own shares held in treasury at the beginning of the
year (13,285,490) (13,360,310) (13,360,310)
Effect of own shares purchased for cancellation (5,223,154) (3,525,393) (4,280,999)
Effect of share-based incentives exercised 141,726 166,506 409,021
Effect of shares purchased by the EBT - (6,669)
865,867,647 871,703,319 871,183,559
---------------------------------------------------------- ------------------ ------------------ ------------------
Weighted average number of ordinary shares (diluted)
For diluted EPS, the weighted average number of ordinary shares
in issue is adjusted to assume conversion of all potentially
dilutive shares. The Group's potential dilutive instruments are in
respect of share-based incentives granted to employees, which will
be settled by ordinary shares held by the Employees' Share Trust
(EBT), SIP Trust and shares held in treasury.
6 months ended 6 months ended Year ended
30 June 2021 30 June 2020 31 December 2020
Number of shares Number of shares Number of shares
------------------------------------------------------- ------------------ ------------------ ------------------
Weighted average number of ordinary shares (basic) 865,867,647 871,703,319 871,183,559
Dilutive impact of share-based incentives outstanding 1,946,686 2,237,305 2,491,363
867,814,333 873,940,624 873,674,922
------------------------------------------------------- ------------------ ------------------ ------------------
Underlying EPS
Underlying EPS is calculated by taking profit for the year and
adding back the charge for share-based payments, including the
related NI appropriate tax adjustments. A reconciliation of the
profit for the year to the underlying profit is presented
below:
6 months ended 30 June 2021 6 months ended Year ended 31 December 2020
30 June 2020
GBP000 GBP000 GBP000
---------------------------------------- ---------------------------- --------------- ----------------------------
Profit for the year 93,295 49,956 109,775
Share-based incentives charge/(credit) 1,940 (182) 2,102
NI on share-based incentives 297 (144) 277
Impact on tax charge (489) 120 (580)
Underlying profit for the year 95,043 49,750 111,574
---------------------------------------- ---------------------------- --------------- ----------------------------
8 Dividends
Dividends declared and paid by the Company were as follows:
6 months ended 30 June 2021 6 months ended Year ended 31 December 2020
30 June 2020
Pence per share Pence per share Pence per share
GBP000 GBP000 GBP000
---------------------- -------------------- --------- ----------------- -------- -------------------- --------
2019 final dividend - - - - - -
paid
2020 interim dividend
paid - -
2020 final dividend
paid 4.5 38,900 - - - -
- - - -
---------------------- -------------------- --------- ----------------- -------- -------------------- --------
Unclaimed dividends returned (2) (2) - (2)
-------------------------------------------- --------- ----------------- -------- -------------------- --------
Net dividends included in the statement of
cash flows 38,898 (2) - (2)
-------------------------------------------- --------- ----------------- -------- -------------------- --------
After the period end the Board approved an interim dividend of
3.0p (2020: nil) per qualifying ordinary share being GBP25,556,000
(2020: nil).
The 2020 final dividend of GBP38,900,000 (4.5p per qualifying
share) was paid on 28 May 2021. It was GBP400,000 higher than that
reported in the 2020 annual accounts due to an increase in the
ordinary shares entitled to a dividend between 26 February 2021 and
the interim dividend record date of 30 April 2020.
The terms of the EBT provide that dividends payable on the
ordinary shares held by the EBT are waived.
9 Taxation
The income tax expense of GBP21,374,000 (2020: GBP11,615,000) is
recognised based on management's best estimate of the consolidated
effective tax rate expected for the full financial year applied to
the profit before tax for the six month period. The Group's
consolidated effective tax rate for the six months ended 30 June
2021 was 18.6% (2020: 18.9%). The difference between the standard
rate of 19.0% and the effective rate of 18.6% as at 30 June 2021 is
attributable to the impact of the release of the provision for
contingent consideration which is not taxable.
The deferred tax asset of GBP3,023,000 at 30 June 2021 (2020:
GBP2,654,000) is in respect of equity settled share-based
incentives and depreciation in excess of capital allowances. The
deferred tax asset arising on equity settled share-based incentives
was recognised in profit or loss to the extent that the related
equity settled share-based payments charge was recognised in the
statement of comprehensive income. The deferred tax liability of
GBP1,007,000 at 30 June 2021 (2020: GBP916,000) is in respect of
the intangible asset recognised on acquisition of Van Mildert
Landlord and Tenant Protection Limited.
The deferred tax assets and liabilities as at 30 June 2021 have
been calculated at a rate of between 19.0% and 25% depending on the
expected rate that will prevail at the date upon which the net
deferred tax asset will reverse in the future, based on currently
enacted UK tax rates. An increase in the UK corporation tax rate
from 19% to 25% (effective from 1 April 2023) was substantially
enacted on 24 May 2021.
10 Trade and other receivables
30 June 2021 30 June 2020 31 December 2020
GBP000 GBP000 GBP000
--------------------------------------------------- ------------- ------------- -----------------
Trade receivables 18,215 9,166 18,277
Less provision for impairment of trade receivables (706) (883) (880)
--------------------------------------------------- ------------- ------------- -----------------
Net trade receivables 17,509 8,283 17,397
Prepayments 4,452 4,155 5,951
Interest receivable - 7 4
Other debtors - 306 98
--------------------------------------------------- ------------- -------------
21,961 12,751 23,450
--------------------------------------------------- ------------- ------------- -----------------
11 Trade and other payables
30 June 2021 30 June 2020 31 December 2020
GBP000 GBP000 GBP000
----------------------------------- -------------- -------------- ------------------
Trade payables 1,931 2,222 2,742
Trade accruals 6,491 7,393 5,879
Other creditors 562 515 414
Other taxation and social security 13,036 12,387 9,890
22,020 22,517 18,925
----------------------------------- -------------- -------------- ------------------
12 Provisions
Dilapidations Employee provisions Contingent
provision GBP000 consideration Total
GBP000 GBP000 GBP000
----------------- -------------- -------------------- --------------- ---------
At 1 January
2020 507 256 2,407 3,170
Utilised during
the year - (15) - (15)
Charged in the
period 27 317 - 344
At 31 June 2020 534 558 2,407 3,499
------------------ -------------- -------------------- --------------- ---------
Current - 558 - 558
Non-current 534 - 2,407 2,941
------------------ -------------- -------------------- --------------- ---------
At 1 January
2020 507 256 2,407 3,170
Utilised during
the year - (256) - (256)
Charged in the
year 55 666 - 721
At 31 December
2020 562 666 2,407 3,635
------------------ -------------- -------------------- --------------- ---------
Current - 666 - 666
Non-current 562 - 2,407 2,969
------------------ -------------- -------------------- --------------- ---------
At 1 January
2021 562 666 2,407 3,635
Utilised during
the period - (42) - (42)
Charged in the
period 30 - - 30
Released in
the period - - (2,407) (2,407)
At 30 June 2021 592 624 - 1,216
------------------ -------------- -------------------- --------------- ---------
Current - 624 - 624
Non-current 592 - - 592
------------------ -------------- -------------------- --------------- ---------
The dilapidations provision is in respect of any of the Group's
leased properties where the Group has obligations to make good
dilapidations. The non-current liabilities are estimated to be
payable over periods from one to six years.
During the period the Group has accrued amounts in relation to
employee related holiday pay. The provision is based on the
estimated future payroll cost to the Group and has not been
discounted as the time value of money is not significant.
The present value of the contingent and deferred consideration
arising on acquisition of Van Mildert Landlord and Tenant
Protection Limited was GBP2,407,000 at the point of acquisition.
The fair value was reassessed at 30 June 2021 as zero, due to the
possibility of meeting the threshold performance criteria within
the remaining timescales, to the end of 2021, being remote.
13 Reconciliation of movement in capital and reserves
Own shares purchased for cancellation
The total number of shares bought back in the six months to 30
June 2021 was 14,881,349 (2020: 5,028,392) representing 1.7% (2020:
0.6%) of the ordinary shares in issue (excluding shares held in
treasury). All the shares bought back in the period were cancelled.
The shares were acquired on the open market at a total
consideration (excluding costs) of GBP89,374,000 (2020:
GBP30,125,000). The maximum and minimum prices paid were GBP6.69
(2020: GBP6.50) and GBP5.52 (2020: GBP5.05) per share
respectively.
Own shares held - GBP000 Total
EBT shares reserve SIP shares reserve Treasury shares own shares held
GBP000 GBP000 GBP000 GBP000
--------------------------------- --------------------- --------------------- ------------------ -----------------
Own shares held as at 1 January
2020 (2,191) (3,205) (6,348) (11,744)
Share-based incentives exercised
in the period 42 329 35 406
SIP releases in the period - 60 - 60
Own shares held as at 30 June
2020 (2,149) (2,816) (6,313) (11,278)
--------------------------------- --------------------- --------------------- ------------------ -----------------
Own shares held as at 1 January
2020 (2,191) (3,205) (6,348) (11,744)
Shares purchased for share
incentive plans (765) - - (765)
Shares transferred to SIP 734 (734) - -
Share-based incentives exercised
in the year 397 378 36 811
SIP releases in the year - 146 - 146
--------------------------------- --------------------- --------------------- ------------------ -----------------
Own shares held as at 31
December 2020 (1,825) (3,415) (6,312) (11,552)
--------------------------------- --------------------- --------------------- ------------------ -----------------
Own shares held as at 1 January
2021 (1,825) (3,415) (6,312) (11,552)
Share-based incentives exercised
in the period 23 277 155 455
SIP releases in the period - 14 - 14
Own shares held as at 30 June
2021 (1,802) (3,124) (6,157) (11,083)
--------------------------------- --------------------- --------------------- ------------------ -----------------
Own shares held - number of shares
Total
EBT shares reserve SIP shares reserve Treasury shares own shares held
--------------------------------- --------------------- --------------------- ------------------ -----------------
Own shares held as at 1 January
2020 2,208,362 785,130 13,360,310 16,353,802
Share-based incentives exercised
in the period (86,128) (97,870) (74,820) (258,818)
SIP releases in the year - (12,400) - (12,400)
Own shares held as at 30 June
2020 2,122,234 674,860 13,285,490 16,082,584
--------------------------------- --------------------- --------------------- ------------------ -----------------
Own shares held as at 1 January
2020 2,208,362 785,130 13,360,310 16,353,802
Shares purchased for SIP 118,293 - - 118,293
Shares transferred to SIP (113,465) 113,465 - -
Share-based incentives exercised
in the year (817,714) (111,620) (74,820) (1,004,154)
SIP releases in the year - (29,400) - (29,400)
--------------------------------- --------------------- --------------------- ------------------ -----------------
Shares held as at 31 December
2020 1,395,476 757,575 13,285,490 15,438,541
--------------------------------- --------------------- --------------------- ------------------ -----------------
Own shares held as at 1 January
2021 1,395,476 757,575 13,285,490 15,438,541
Share-based incentives exercised
in the period (47,875) (65,881) (325,452) (439,208)
SIP releases in the year - (2,325) - (2,325)
Shares held as at 30 June 2021 1,347,601 689,369 12,960,038 14,997,008
--------------------------------- --------------------- --------------------- ------------------ -----------------
(a) EBT shares reserve
This reserve represents the cost of own shares acquired by the
EBT less any exercises of share-based incentives. At 30 June 2021,
the EBT held 1,347,601 (2020: 2,122,234) ordinary shares in the
Company, representing 0.2% (2020: 0.2%) of the ordinary shares in
issue (excluding shares held in treasury). The market value of the
shares held by the EBT at 30 June 2021 was GBP8,745,930 (2020:
GBP11,587,000).
(b) SIP shares reserve
In November 2014, the Group established the Rightmove Share
Incentive Plan Trust (SIP). This reserve represents the cost of
acquiring shares less any exercises or releases of SIP awards. At
30 June 2021 the SIP Trust held 689,369 (2020: 674,860) ordinary
shares in the Company of 0.1 pence each, representing 0.08% (2020:
0.08%) of the ordinary shares in issue (excluding shares held in
treasury). The market value of the shares held in the SIP Trust at
the period end was GBP4,415,595 (30 June 2020: GBP3,685,000).
(c) Treasury shares
This represents the cost of acquiring shares held in treasury
less any exercises of share-based incentives. These shares were
bought back in 2008 at an average price of 47.60 pence and may be
used to satisfy certain share-based incentive awards.
Other reserves
This represents the Capital Redemption Reserve in respect of own
shares bought back and cancelled. The movement in other reserves of
GBP15,000 (2020: GBP5,000) comprises the nominal value of ordinary
shares cancelled during the period.
Retained earnings
The loss on exercise of share-based incentives is the difference
between the value that the shares held by the EBT, SIP and treasury
shares were originally acquired at and the exercise price at which
share-based incentives were exercised during the period.
ADVISERS AND SHAREHOLDER INFORMATION
Contacts Registered office Corporate advisers
Chief Executive Peter Brooks-Johnson Rightmove plc Financial adviser
Officer:
Chief Financial Alison Dolan 2 Caldecotte Lake UBS Investment
Officer: Sandra Odell Business Park Bank
Company Secretary: www.rightmove.co.uk Caldecotte Lake
Website: Drive Joint brokers
Caldecotte UBS AG London Branch
Milton Keynes Numis Securities
Limited
MK7 8LE
Auditor
KPMG LLP
Registered in
England no. 6426485 Bankers
Financial calendar Barclays Bank Plc
2021
Interim dividend 29 October 2021 Santander UK plc
Full year results 25 February 2022 HSBC UK Bank plc
Lloyds Banking
Group plc
Solicitors
EMW LLP
Slaughter and May
Herbert Smith Freehills
LLP
Registrar
Link Asset Services*
*Shareholder enquiries
The Company's registrar is Link Group. They will be pleased to
deal with any questions regarding your shareholding or dividends.
Please notify them of your change of address or other personal
information. Their contact details are below:
Shareholder helpline: 0371 664 0300 calls are charged at the
standard geographic rate and will vary by provider. Calls outside
the United Kingdom will be charged at the applicable international
rate. Lines are open between 09:00 - 17:30, Monday to Friday
excluding public holidays in England and Wales.
Email: enquiries@linkgroup.co.uk
Signal Shares shareholder portal: www.signalshares.com
Address: Link Group
10th Floor Central Square
29 Wellington Street
Leeds LS1 4DL
Shareholders can register online to view your holdings using the
shareholder portal, a service offered by Link Group at
www.signalshares.com . The shareholder portal is an online service
enabling you to quickly and easily access and maintain your
shareholding online - reducing the need for paperwork and providing
24 hour access for your convenience. You may:
- View your holding balance and get an indicative valuation
- View the dividend payments you have received
- Cast your proxy vote on the AGM resolutions online
- Update your address
- Register and change bank mandate instructions so that
dividends can be paid directly to your bank account
- Elect to receive shareholder communications electronically
- Access a wide range of shareholder information and download
shareholder forms
INDEPENT REVIEW REPORT TO RIGHTMOVE PLC
(a) Conclusion
We have been engaged by the company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 June 2021 which comprises the condensed
consolidated interim statement of comprehensive income, condensed
consolidated interim statement of financial position, condensed
consolidated interim statement of cash flows, condensed
consolidated interim statement of changes in shareholders' equity
and the related explanatory notes.
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
June 2021 is not prepared, in all material respects, in accordance
with IAS 34 Interim Financial Reporting as adopted for use in the
UK and the Disclosure Guidance and Transparency Rules ("the DTR")
of the UK's Financial Conduct Authority ("the UK FCA").
(b) Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity issued by the Auditing Practices Board for use in the
UK. A review of interim financial information consists of making
enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review
procedures. We read the other information contained in the
half-yearly financial report and consider whether it contains any
apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
(c) Directors' responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the directors. The directors are responsible
for preparing the half-yearly financial report in accordance with
the DTR of the UK FCA.
As disclosed in note 1, the latest annual financial statements
of the group were prepared in accordance with international
accounting standards in conformity with the requirements of the
Companies Act 2006 and the next annual financial statements will be
prepared in accordance with UK-adopted international accounting
standards. The directors are responsible for preparing the
condensed set of financial statements included in the half-yearly
financial report in accordance with IAS 34 as adopted for use in
the UK.
Our responsibility
Our responsibility is to express to the company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
The purpose of our review work and to whom we owe our
responsibilities
This report is made solely to the company in accordance with the
terms of our engagement to assist the company in meeting the
requirements of the DTR of the UK FCA. Our review has been
undertaken so that we might state to the company those matters we
are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the company for our
review work, for this report, or for the conclusions we have
reached.
Anna Jones for and on behalf of KPMG LLP
Chartered Accountants
The Pinnacle
170 Midsummer Boulevard
Milton Keynes
MK9 1BP
30 July 2021
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR EAKXNALSFEFA
(END) Dow Jones Newswires
July 30, 2021 02:00 ET (06:00 GMT)
Rightmove (LSE:RMV)
Historical Stock Chart
From Mar 2024 to Apr 2024
Rightmove (LSE:RMV)
Historical Stock Chart
From Apr 2023 to Apr 2024
