25th Mar 2019 11:53
LONDON (Alliance News) - Bonhill Group PLC on Monday reported a significant increase in revenue due to the acquisition of InvestmentNews, as it looks to further expand by buying Last Word Media.
Furthermore, the company raised GBP10.0 million via share placing.
For the nine months to the end of 2018, the B2B media company posted a widened pretax loss of GBP1.8 million compared to GBP971,000 at the end of March.
On an adjusted basis, Bonhill recorded a pretax profit of GBP520,000 versus GBP445,000 loss. Adjusted items included acquisition related costs, integration costs and write-offs.
Bonhill changed its financial year end from March to December to align with InvestmentNews.
Revenue jumped to GBP8.0 million from GBP2.6 million at the end of March 2018, with GBP6.0 million generated from the acquisition of InvestmentNews in the four-and-a-half months since purchase in August.
The company also said that given its improved financial position, it believes "desirable" to start paying a dividend for the year ending December 2019, with the first one to be paid for the six months to June 2019.
"However, the company does not have distributable reserves to enable the board to initiate the progressive dividend policy described above. The board therefore proposes that a reduction of the company's capital by way of the cancellation of the company's share premium account and capital redemption reserve be effected in order to create distributable reserves of the company from which dividends may be paid," Bonhill explained.
Bonhill will propose a special resolution at a general meeting of shareholders to allow them to vote on the capital reduction. If approved, it is expected to become effective on May 7.
Looking ahead, Chief Executive Officer Simon Stilwell said: "We are confident that, underpinned by investment into the robust core business, we are in a strong position to drive growth and deliver returns for our shareholders over the coming years."
The integration plan of InvestmentNews is on track, the company explained, as it said it looks to other targets.
Separately, Bonhill announced Monday the proposed acquisition of international B2B media business Last Word Media for GBP8.0 million.
Of the total payment, GBP6.0 million will be paid in cash, with the remaining GBP2.0 million in shares.
Further payments for a total consideration of up to GBP20 million, will be paid subject to Last Word Media achieving certain targets by 2020.
Bonhill also raised GBP10.0 million via placing of 11.9 million shares at 84 pence each on Monday. Of these, 2.4 million will be issued to cover the acquisition.
Bonhill shares were trading down 2.8% at 88.50p each.
"We are pleased to announce the acquisition of Last Word, a leading international B2B media business servicing the global asset management sector. Bringing our two businesses together will enable Bonhill to provide a truly global sales and marketing proposition to the international asset management community and provides the opportunity to leverage InvestmentNews' presence and platform to expand its existing propositions in the US," Stilwell said.
The shares are expected to start trading on AIM on April 10. Stockdale Securities Ltd and Canaccord Genuity Ltd acted as joint brokers.
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