27th Oct 2015 10:13
Dods (Group) PLC
Interim Results for the six months ended 30 September 2015
Financial Highlights
• Revenue of £9.3 million (2014: £8.4 million)
• Gross profit margin at 36% (2014: 25%)
• Adjusted EBITDA at £1.0 million (2014: Loss £54,000) *
• Cash generated from operations was £1.1 million (2014: Loss £98,000)
• Net cash of £7.0 million at 30 September 2015
• Adjusted EPS 0.20 pence (2014: Loss 0.19 pence)
*EBITDA is calculated as earnings before interest, tax, depreciation, amortisation of intangible assets acquired through business combinations, share based payments and nonrecurring items
Cheryl Jones, Chairman of Dods (Group) PLC, commented:
"The Board is pleased to announce that the Company achieved the plan outlined for the business in the first half of the fiscal year. The financial performance improvement is a result of the past nine months of transformational initiatives.
In the second half of the year, management will be keenly focussed on resource effectiveness, maintaining and leveraging the efficiencies gained through restructuring, and further developing marketing and sales programmes to accelerate revenue growth and capture market share.
Business Update
Turnover improved 11% from £8.4 million to £9.3 million. Gross margins improved significantly from 25% to 36%, driven primarily from transformational initiatives, which include focus on recurring revenue and client retention.
Adjusted EBITDA for the six months ended 30 September has improved to a profit of £1.0 million compared to a loss of £54,000 in the comparative period. Cash generated from operations was £1.1 million; a result of EBITDA earnings and early benefits derived through implementation of initial administrative and back-office procedures.
Non-recurring costs of £250,000 were incurred in the first half of the year relating to the restructuring of the business.
Digital revenues were up 9% to £4.1 million in the first half of the fiscal period. The Company's event and training revenues had a very positive first half performance growing by 30% to £2.9 million and 19% to £0.6 million respectively.
In the second half of the fiscal year, the Company will remain focussed on the priorities set out in the 2015 annual report. Further progress against these priorities will allow Dods' to reposition resources enabling further product and service innovation, to realign market-facing activities for greater effectiveness, to leverage the investment in technology and improve the Group's overall structural efficiencies.
The Board is confident the company is well positioned for significant growth in the second half of the financial year.
Key Financial Information
Three Year Summary - Half Year | |||||
(£000s unless specified otherwise) | Six months ended 30 September 2015 | Six months ended 30 September 2014 | Six months ended 30 September 2013 | ||
Revenue | 9,275 | 8,442 | 9,332 | ||
Gross Profit Margin % | 36% | 25% | 22% | ||
Adjusted EBITDA | 1,008 | (54) | 28 | ||
Depreciation | (160) | (58) | (114) | ||
Amortisation of intangible assets and assets acquired through business combinations | (312) | (418) | (514) | ||
Amortisation of software intangible assets | (155) | (578) | (375) | ||
Adjusted EBIT | 380 | (1,108) | (974) | ||
Non-recurring items | (251) | (75) | (89) | ||
Net finance costs | (16) | - | 7 | ||
Earnings before tax | 113 | (1,183) | (1,057) | ||
EPS (pence) | 0.03 | (0.33) | (0.34) | ||
Adjusted EPS (pence) | 0.20 | (0.19) | (0.13) | ||
Cash flow from operations | 1,107 | (98) | (453) | ||
Cash Balance | 6,977 | 4,843 | 5,611 | ||
Three Year Summary - Annual | |||||
(£000s unless specified otherwise) | Full Year to 31 March 2015 | Full Year to 31 March 2014 | 15 months to 31 March 2013 | ||
Revenue | 18,301 | 19,775 | 18,773 | ||
Gross Profit Margin % | 29% | 29% | 25% | ||
Adjusted EBITDA | 1,205 | 1,085 | 378 | ||
Depreciation | (228) | (225) | (270) | ||
Amortisation of intangible assets and assets acquired through business combinations | (791) | (1,026) | (1,223) | ||
Amortisation of software intangible assets | (763) | (803) | (843) | ||
Adjusted EBIT | (577) | (969) | (1,958) | ||
Non-recurring items | (1,550) | (475) | (1,698) | ||
Adjustments to amortisation of intangible assets/ assets acquired through business combinations | (2,781) | - | - | ||
Impairment of goodwill | - | - | (6,893) | ||
Net finance costs | (63) | (44) | (78) | ||
Earnings before tax | (4,971) | (1,488) | (10,627) | ||
EPS (pence) | (1.38) | (0.38) | (3.75) | ||
Adjusted EPS (pence) | 0.13 | 0.06 | (2.76) | ||
Cash flow from operations | 1,449 | 439 | (1,459) | ||
Cash Balance | 5,908 | 5,291 | 7,037 | ||
For further information, please contact:
Dods (Group) PLC
Cheryl Jones (Chairman)
Mark Morrell (Company Secretary)
0161 836 8800
Cenkos Securities plc
(Nominated Advisor and Broker to Dods)
Nicholas Wells
020 7397 8900
Note to editors:
Dods (Group) PLC is a public limited company listed on AIM (ticker DODS)
DODS (GROUP) PLC | ||||
CONSOLIDATED INCOME STATEMENT |
Six months ended | Six months ended | Year ended | |||||||||||
30 September | 30 September | 31 March | |||||||||||
2015 | 2014 | 2015 | |||||||||||
Note | £'000 | £'000 | £'000 | ||||||||||
Revenue | 2 | 9,275 | 8,442 | 18,301 | |||||||||
Cost of sales | (5,962) | (6,352) | (13,104) | ||||||||||
Gross profit | 3,313 | 2,090 | 5,197 | ||||||||||
Administrative expenses: | |||||||||||||
Non-recurring items | 3 | (251) | (75) | (1,550) | |||||||||
Amortisation of intangible assets and assets acquired through business combinations | |||||||||||||
(312) | (418) | (1,904) | |||||||||||
Amortisation of intangible assets | (155) | (578) | (763) | ||||||||||
Depreciation | (160) | (58) | (228) | ||||||||||
Impairment of intangible assets and assets acquired through business combinations |
- | - | (1,668) | ||||||||||
Net administrative expenses | (2,306) | (2,144) | (3,998) | ||||||||||
Total administrative expenses | (3,184) | (3,273) | (10,111) | ||||||||||
Operating profit/(loss) | 129 | (1,183) | (4,914) | ||||||||||
Finance income | 3 | 17 | 32 | ||||||||||
Financing costs | (19) | (17) | (89) | ||||||||||
Profit/(Loss) before tax | 113 | (1,183) | (4,971) | ||||||||||
Income tax credit | 0 | 76 | 292 | ||||||||||
Profit/(Loss) for the period | 113 | (1,107) | (4,679) | ||||||||||
Loss per share | |||||||||||||
Basic | 4 | 0.03p | (0.33) p | (1.38) p | |||||||||
Diluted | 4 | 0.03p | (0.32) p | (1.35) p | |||||||||
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| |||||||
| Six months ended | Six months ended | Year ended | ||||
| 30 September | 30 September | 31 March | ||||
| 2015 | 2014 | 2015 | ||||
| £'000 | £'000 | £'000 | ||||
| |||||||
| Profit/(Loss) for the period | 113 | (1,107) | (4,679) | |||
| |||||||
| Items that will be subsequently reclassified to profit and loss | ||||||
| Exchange differences on disposal of translation of foreign operations | 5 | (7) | (62) | |||
| Other comprehensive (loss)/income for the period | 5 | (7) | (62) | |||
| Total comprehensive loss in the period | ||||||
| attributable to equity holders of parent company | 118 | (1,114) | (4,741) | |||
DODS (GROUP) PLC | ||||||||
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION | ||||||||
As at | As at | As at | ||||||
30 September | 30 September | 31 March | ||||||
2015 | 2014 | 2015 | ||||||
£'000 | £'000 | £'000 | ||||||
Goodwill | 13,282 | 13,282 | 13,282 | |||||
Intangible assets | 9,601 | 13,622 | 10,058 | |||||
Property, plant and equipment | 214 | 457 | 308 | |||||
Non-current assets | 23,097 | 27,361 | 23,648 | |||||
Inventories | 56 | 109 | 74 | |||||
Trade and other receivables | 3,709 | 3,528 | 2,971 | |||||
Cash | 6,977 | 4,843 | 5,908 | |||||
Income tax receivable | - | (3) | - | |||||
Current assets | 10,742 | 8,477 | 8,953 | |||||
Income tax payable | (43) | - | (30) | |||||
Trade and other payables | (8,274) | (6,624) | (7,168) | |||||
Current liabilities | (8,318) | (6,624) | (7,198) | |||||
Net current assets | 2,424 | 1,853 | 1,755 | |||||
Total assets less current liabilities | 25,521 | 29,214 | 25,403 | |||||
Deferred tax liability | (808) | (1,025) | (808) | |||||
Non-current liabilities | (808) | (1,025) | (808) | |||||
Net assets | 24,713 | 28,189 | 24,595 | |||||
Equity attributable to equity holders of parent | ||||||||
Issued capital | 17,078 | 17,078 | 17,078 | |||||
Share premium | 8,009 | 8,009 | 8,009 | |||||
Other reserves | 409 | 409 | 409 | |||||
Retained profit | (769) | 2,253 | (882) | |||||
Share option reserve | 47 | 471 | 47 | |||||
Translation reserve | (61) | (31) | (66) | |||||
Total equity | 24,713 | 28,189 | 24,595 | |||||
DODS (GROUP) PLC | |||||||||
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | |||||||||
Total | |||||||||
Share | Share | Merger | Retained | Translation | Share option | shareholders' | |||
capital | premium | reserve | earnings | reserve | reserve | funds | |||
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |||
At 1 April 2014 | 17,078 | 8,009 | 409 | 3367 | (4) | 471 | 29,330 | ||
Reclassification | - | - | - | - | - | - | - | ||
Total comprehensive loss | |||||||||
Loss for the year | - | - | - | (4,679) | - | - | (4,679) | ||
Other comprehensive loss | |||||||||
Currency translation differences | - | - | - | - | (62) | - | (62) | ||
Transactions with owners | |||||||||
Lapsed option transfer | - | - | - | 430 | - | (430) | (-) | ||
Share based payment | - | - | - | - | - | 6 | 6 | ||
At 1 April 2015 | 17,078 | 8,009 | 409 | (882) | (66) | 47 | 24,595 | ||
Total comprehensive profit/(loss) | |||||||||
Profit for the period | - | - | - | 113 | - | - | 113 | ||
Other comprehensive profit/(loss) | |||||||||
Currency translation differences | - | - | - | - | 5 | - | 5 | ||
At 30 September 2015 | 17,078 | 8,009 | 409 | (769) | (61) | 47 | 24,713 | ||
DODS (GROUP) PLC | |||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||
Six months ended | Six months ended | Year ended | |||||||
30 September | 30 September | 31 March | |||||||
2015 | 2014 | 2015 | |||||||
£'000 | £'000 | £'000 | |||||||
Cash flows from operating activities | |||||||||
Profit/(loss) for the period | 113 | (1,107) | (4,679) | ||||||
Depreciation of property, plant and equipment | 160 | 58 | 228 | ||||||
Amortisation of intangible assets acquired through business combinations | 312 | 418 | 1,904 | ||||||
Amortisation of other intangible assets | 155 | 578 | 763 | ||||||
Accelerated amortisation of software intangibles | - | - | 578 | ||||||
Impairment of intangible assets acquired through business combinations | - | - | 1,668 | ||||||
Share based payments credit | - | - | 6 | ||||||
Net finance costs | - | - | 57 | ||||||
Income tax credit | - | (76) | (292) | ||||||
Operating cash flows before movements in | |||||||||
working capital | 740 | (129) | 233 | ||||||
Change in inventories | 18 | (13) | 50 | ||||||
Change in receivables | (738) | 282 | 788 | ||||||
Change in payables | 1,117 | (202) | 378 | ||||||
Net cash generated by operations | 1,137 | 62) | 1,449 | ||||||
Income tax paid | (30) | (36) | - | ||||||
Net cash used in operating activities | 1,107 | (98) | 1,449 | ||||||
Cash flows from investing activities | |||||||||
Interest and similar income received | - | 17 | 32 | ||||||
Addition to property, plant and equipment | (22) | (38) | (73) | ||||||
Additions to intangible assets | - | (291) | (638) | ||||||
Net cash used in investing activities | (22) | (312) | (680) | ||||||
Cash flows from financing activities Interest and similar income received | 3 | - | - | ||||||
Interest and similar expenses paid | (19) | (4) | (89) | ||||||
Net cash from financing activities | (16) | (4) | (89) | ||||||
Net (decrease)/increase in cash and cash equivalents | 1,069 | (414) | 679 | ||||||
Opening cash and cash equivalents | 5,908 | 5,291 | 5291 | ||||||
Effect of exchange rate fluctuations on cash held | - | (34) | (62) | ||||||
Closing cash and cash equivalents | 6,977 | 4,843 | 5,908 | ||||||
DODS (GROUP) PLC
Notes to the Accounts
30 September 2015
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 company's published consolidated financial statements for the year-ended 31 March 2015.
The comparative figures for the year ended 31 March 2015 have been extracted from the company'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 2015 is based on the expected annual tax rate, and the assumed use of accumulated tax losses.
Going Concern
The Group had net current assets as at 30 September 2015 of £2,424,000 (2014: £1,853,000). The Directors have considered the implications for Going Concern below.
The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Group's medium term performance, and the factors which mitigate these risks have not significantly changed from those set out in the Group's Financial Report for the 12 months ended 31 March 2015. The Board has reviewed forecasts for the years ending 31 March 2016 and 31 March 2017, and remains satisfied with the Group's funding and liquidity position.
On the basis of its forecasts and available facilities and cash balances held on the balance sheet, the Board has concluded that the Going Concern basis of preparation continues to be appropriate.
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.
Six months ended | Six months ended | Yearended | |||||||||
30 September | 30 September | 31 March | |||||||||
2015 | 2014 | 2015 | |||||||||
£'000 | £'000 | £'000 | |||||||||
Revenue | |||||||||||
United Kingdom | 7,232 | 6,337 | 14,109 | ||||||||
Continental Europe and rest of the world | 2,043 | 2,105 | 4,192 | ||||||||
9,275 | 8,442 | 18,301 | |||||||||
3 Non-recurring items |
Six months ended 30 Sept 2015 | Six months ended 30 Sep 2014 | Year ended 31 Mar 2015 | ||
£'000 | £'000 | £'000 | ||
Redundancy and people related costs | 242 | - | 246 | |
Consultancy fees | - | 75 | 83 | |
Accelerated amortisation of software intangibles | - | - | 578 | |
Payments in lieu of notice, compensation for loss of office as associated costs | - | - | 386 | |
Holyrood office move | 9 | - | - | |
Closure of Cambridgeshire Office | - | - | 46 | |
Impairment of Debtor Balances | - | - | 211 | |
251 | 75 | 1,550 |
4 Earnings per share
Basic earnings per share is calculated by dividing the profit/ (loss) 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/ (loss) 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
Six months ended 30 Sept 2015 | Six months ended 30 Sep 2014 | Year ended 31 Mar 2015 | |||||
£'000 | £'000 | £'000 | |||||
Profit/(Loss) attributable to shareholders | 113 | (1,107) | (4,679) | ||||
Add: non-trading items net of tax | 251 | 57 | 1,550 | ||||
Add: amortisation of intangible assets acquired through business combinations | 312 | 418 | 1,904 | ||||
Add: Impairment of intangible assets acquired through business combinations | - | - | 1,668 | ||||
Add/(deduct): share based payment (credit)/charge | - | - | 6 | ||||
Adjusted profit/(loss) on continuing operations | 676 | (632) | 449 | ||||
|
| ||||||
Six months ended 30 Sept 2015 | Six months ended 30 Sep 2014 | Year ended 31 Mar 2015 | |||||
Ordinary shares | Ordinary shares | Ordinary shares | |||||
Weighted average number of shares | |||||||
In issue during the period - basic | 339,770,953 | 339,770,953 | 339,770,953 | ||||
Share options | 3,620,000 | 7,620,000 | 5,620,000 | ||||
Weighted average number of shares for diluted earnings per share | 343,390,953 | 347,390,953 | 345,390,953 | ||||
Earnings/(loss) per share - ordinary shares (pence) | 0.03 p | (0.33) p | (1.38) p | ||||
Adjusted earnings/(loss) per ordinary share (as defined above) | 0.20 p | (0.19)p | 0.13 p | ||||
Earnings per share on continuing operations | |||||||
Profit/(loss) per ordinary share - basic | 0.03 p | (0.33) p | (1.38) p | ||||
Profit/(loss) per ordinary share - diluted | 0.03 p | (0.32) p | (1.35) p | ||||
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DODS.L