18th Sep 2019 11:03
(Alliance News) - Bonhill Group PLC reported a sharp rise in first half revenue thanks to the contribution of its newer units, but acquisition and integration costs drove widened losses.
In the six months to June 30, Bonhill's revenue grew by more than fourfold to GBP10.7 million from GBP1.9 million. However, its pretax loss widened to GBP2.3 million from GBP586,000.
The B2B media company recorded acquisition costs of GBP807,000, up from GBP184,000, integration costs of GBP732,000 and reorganisation costs of GBP100,000.
The firm's first-ever dividend of 0.28 pence per share will be paid on October 25, Bonhill added.
Its Bonhill UK brand had year-on-year revenue growth of 6.4% to GBP2.1 million from GBP1.9 million.
InvestmentNews delivered GBP6.8 million in revenue in the first half of 2019. Bonhill acquired the title in August 2018 for USD27.1 million.
Last Word Media, which Bonhill purchased for an initial consideration of GBP8.5 million in April, contributed GBP1.9 million in revenue.
As part of the agreement to buy the media business, performance-based payments could increase the acquisition's consideration to GBP20.0 million. In July, the company said Last Word performed ahead of its earn out targets but since then however, trading has since been more difficult. As a result, Bonhill does not anticipate making any performance-based payments in regards to the acquisition.
Looking ahead, Bonhill warned that its full-year revenue and earnings before interest, taxes, depreciation and amortisation are expected to fall roughly GBP1.0 million below market expectations.
Chief Executive Simon Stilwell explained: "We have had some local difficulties in our markets that have made it harder to achieve the shorter-term returns we had been expecting.
"However, fundamentally we have three businesses in InvestmentNews, Last Word Media and the Bonhill UK events business that are growing and are now better placed than they were a year ago to capitalise on their market position."
Shares in Bonhill were 6.9% lower at 52.58 pence each in London on Wednesday morning.
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