27th Aug 2010 07:00
Embargoed until 07.00, Friday 27 August 2010 2010 HALF YEAR RESULTS
Rightmove plc, the UK's no. 1 property website, announces half year results for the six months ended 30 June 2010.
Financial and Operational Highlightsfor the six months ended 30 June 2010
* Revenue up 26% to £42.3m (2009: £33.6m); Revenue from continuing operations
up 26% to £39.2m (2009: £31.2m)
* Underlying operating profit(1) up 40% to £27.9m (2009: £19.9m); Underlying
operating profit(1) from continuing operations up 39% to £26.8m (2009: £19.3m)
* Underlying operating margin(1) increased to 66% (2009: 59.2%); Underlying
operating margin(1) from continuing operations increased to 68.4% (2009:61.8%)
* Underlying earnings per share(1) from continuing operations up 47% to 18.4p
(2009: 12.5p)
* Consideration for the Holiday Lettings business, sold in June 2010, of £
19.1m including £2.9m contingent consideration for Rightmove's two-third
stake representing a six-fold return on investment since 2007 * Net cash of £22.9m (2009: net debt of £9.9m) * Share buy backs resumed with £12.6m spent to buy back 1.9m(2)shares * Interim dividend increased 67% to 5.0p per ordinary share (2009: 3.0p) * Page impressions on Rightmove websites up 22% to 3.9bn (2009: 3.2bn) * Number of advertisers up 7% to 17,993 (2009: 16,874) * Average spend per advertiser up 20% at £365 per month (2009: £305)
Ed Williams, Managing Director, said:
"We continue to develop Rightmove for the benefit of home hunters and ouradvertisers. We now give our advertisers the opportunity to convey who theyare, what they do and what they offer, in addition to promoting the individualproperties they have on their books. Someone buying a home in the UK today ismost likely to have first seen it on Rightmove. So how agents and developerschoose to advertise on Rightmove can make a major difference to their businesssuccess. The impact of this additional spending can be clearly seen in thefinancial results we report today."
(1)Excludes share-based payments and National Insurance (NI) on share-based incentives
(2) 0.3m of these shares, at a cost of £2m, were settled (and subsequently cancelled) following the end of the reporting period
Half Year StatementStrategic position
Our strategy remains to build on our market position as the UK's leading property website, to grow organically through our customers investing more on their presence on Rightmove, and to promptly return the cash we generate to shareholders.
We have made substantial progress against all three elements of our strategy.We have improved the home hunting experience, we have improved theeffectiveness of Rightmove for property professionals and we have increased thetotal cash returned to shareholders.
Financial performance
Revenue increased by 26% to £42.3m compared to the same period last year. Excluding the Holiday Lettings business, sold at the end of the period, revenue increased to £39.2m, also 26% up on the same period last year.
Underlying operating profit(1) increased by 40% to £27.9m (or 39% to £26.8m excluding Holiday Lettings). The strong growth in profits reflects the operational leverage in the Rightmove business model as well as cost consciousness in better times as well as in tougher times.
Cash generated from continuing operations was £27.5m, up £5.0m on the same period last year, with cash conversion in excess of 100%.
Underlying earnings per share(1) from continuing operations rose 47% to 18.4pcompared to 12.5p a year ago. The rise of 5.9p was principally driven by thegrowth in operating profits and additionally helped by a reduction in netfinance charges as a result of moving from a net debt to a net cash position.
Highlights of operating performance
Two aspects of the operating performance for the first six months of 2010 stand out:
* The strength of home hunter activity in what remains a very challenging
housing market: site traffic rising 22% to 3.9bn page impressions, March
2010 being our busiest month ever, April seeing our busiest day ever,
continuing strength into the summer months and a widening gap in terms of
market share from the remainder of the market * The substantial increase in spending by our customers on Rightmove averaging a 20% increase per customer. Indeed spending in June 2010 as compared to June 2009 was 24% higher. Whilst the increase in spend came
from a range of sources, the most notable feature is the 89% increase in
spend on additional advertising products which are used by our advertisers
to promote their brand and wider proposition.
The first six months of 2010 have seen strengthening key metrics compared to the first half of 2009 and since the start of the year:
* Overall membership up 7% on the first half of 2009 and up 2% since the
start of the year to 17,993 offices and developments
* Higher retention rates among agents and lower churn rates among new homes
and overseas advertisers * Average revenue per advertiser up 20% at £365 per month (2009: £305)
* Revenue from additional advertising products of £7.8m compared with £4.1m
for the same period a year ago * Page impressions on Rightmove websites up 22% to 3.9bn (2009: 3.2bn), putting Rightmove into the top 10 UK websites
* Market share increased from 80% to 82% of all page impressions on the top
four UK property websites
Agency
Our number of estate agent and lettings only agent offices is up by 589 (+4%) since the start of the year to 14,751.
The number of estate agents has grown healthily during the first half of 2010primarily as a result of new offices being opened and people who left theindustry in 2008 and 2009 reopening offices. In addition, retention rates havebeen high compared to historical levels with a low number of estate agentsleaving the industry.Our number of rental only agents is unchanged. There has also been a trend foroffices which had, in recent months, only been advertising rental properties,upgrading their membership to also advertise properties for sale. Whilst notincreasing the membership numbers, this trend has a positive impact on theiraverage spend.We now have over half of all agents taking additional products and spendingmore than £100 per month on average on those products. A significant proportionof this additional spend is now committed in six or 12 month contracts as theresult of the introduction of our "bundled" offering. There has also been astrong start in terms of the adoption of the two new display advertisingproducts, Local Home Page and Featured Agent, which we introduced at the startof the year. The growth has been experienced across our whole range ofcustomers.
New Homes
New homes developer customer numbers are broadly unchanged but the number ofdevelopments advertised by them is down by 434 (-14%) since the start of theyear to 2,681. However, with average spend per development up by 13% comparedto a year ago at £454 per month, overall revenue is slightly higher than forthe same period last year.Larger developers, the publicly quoted house builders, are typically bringing asimilar number of new developments onto the site as the number that are removedas they sell out. The number of developments from smaller developers is stilldeclining, with Housing Associations having been the worst affected. This hasalso changed the mix of our customer base within new homes, thereby putting adownward pressure on the average spend per development. As our business is lessand less dependent on smaller developers and Housing Associations we would hopeto see the rate of decline of membership continue to improve, though it isstill too early to have confidence that we have reached the low point foroverall new home development numbers. The reduction of the monthly churn ratefrom 8.8% a year ago to 7.7% is an encouraging sign as this rate is now withinthe range which we experienced under more normal trading conditions prior to2008.The increased average spend reflects continued strong demand among developersfor both our established additional advertising products, our email campaignsand the new display products introduced at the start of the year.
Other Businesses
The adaptation of our overseas homes business to accept individual propertyadvertisers in addition to larger property brokers and developers has beenbearing fruit. This has been the driver of the 45% increase in advertisernumbers (+174) to 561 since the start of the year. Although revenue fromadvertising a single property for a customer rather than a portfolio ofproperties is clearly going to be lower, the business has performed strongly inattracting additional spend. As a result the average spend, compared to thesame period last year, has only fallen by 13% to £241, with revenue overallincreasing 5%.The success of our overseas homes business comes in what would otherwise be avery challenging market, most exposed to conditions in other countries,exchange rate weaknesses, tightening disposable incomes and more restrictivelending criteria. It is also a market with a degree of seasonality whichfavours summer months over winter months.Rightmove has a data services business whose most significant offering is a setof valuation tools for use by lenders and surveyors. Though modest in thescheme of Rightmove's overall revenue this business has made encouragingprogress in what might have been expected to be a very unpromising environmentwhere lending and valuation volumes remain close to historic lows. Revenue fromthe valuation tools is up by more than 150% on the same period last year, withmore of that revenue increasingly being from longer term contracts orestablished relationships.
Holiday Lettings
Rightmove sold the Holiday Lettings business to TripAdvisor Limited, a whollyowned subsidiary of Expedia Inc on 21 June 2010. Rightmove acquired its 67%stake in Holiday Lettings in early 2007 for £3.1m and had operated it as astand-alone business throughout the period of ownership. Cash consideration toRightmove on completion was £15.2m with a further £1m in Escrow, which togetherwith an estimated £2.9m contingent consideration is likely to take totalproceeds for our 67% stake in the business to £19.1m.Rightmove had been very pleased with the growth in the business experienced todate and its prospects. However, upon receiving an unsolicited offer, theBoard, having considered that the position of Holiday Lettings in the holidaymarket was ultimately not comparable to Rightmove's position in the propertymarket, took the view that disposing of the business for the attractivevaluation offered was in the best interests of shareholders.
For reporting purposes Holiday Lettings constitutes a discontinued operation and is treated as such in our half-year report with historical comparables restated accordingly.
Uncertainties, threats and risks
At a high level the Rightmove business could be vulnerable to three main areasof uncertainty or risk: the state of the housing market if it leads to areduction in the number of potential advertisers, competition, and Rightmove'sability to capture a high proportion of any increase in property advertisingrevenue as the sector recovers.Uncertainties surrounding the housing market clearly exist and are likely to betightly linked to the wider economic environment in the UK. However, we havesome confidence that the strong actions taken by our customers, particularlywith regard to cost reduction, have left them more able to withstand furtherchallenges. Indeed conditions this year remain little better than in 2009 andtransaction volumes are likely to be lower than in any year in the last 50years other than 2008 and 2009. Despite those conditions our customers have inthe considerable majority of cases been able to trade profitably.The competitive environment is little different from six months ago. There hasbeen no noticeable impact since Google made it possible to see properties ontheir maps. Indeed, through our partnership with Google, our home hunters cansearch for properties on a map or satellite image within Rightmove and theyhave the added benefit of our latest innovation `Draw-a-Search'. This uniquetool gives our home hunters the ability to define exactly the area they wish tosearch in and we believe is the best map based search facility in themarketplace.Since April 2009 Rightmove has been growing its property advertising revenueduring a period in which spend in newspapers continued to fall. The most recentquarter (Q2 2010) is the first in which any of the larger regional newspapergroups have been able to point to stable or rising property advertising.However, based on our own reported numbers the evidence would be that Rightmoveis growing at a much faster rate than other forms of property advertising andseems well placed to continue doing so.
Dividends, cash and share buy-backs
In February 2010 we repaid, without penalty, the balance of a £40m loan takenout in 2008. The loan had been used to accelerate the buying of our own sharesand enabled us to buy back a total of 11.9m shares at an average price of 377pin 2008. At the end of 2009 we recommenced our share buy back programme and in2010 to date we have bought back 1.9m shares(2) at an average price of 665p.
At the end of June net cash stood at £22.9m (2009: net debt £9.9m) boosted by the initial cash proceeds from the sale of Holiday Lettings.
The Board intends to pay an interim dividend of 5.0p (2009: 3.0p). As part ofthe Board's commitment to return cash promptly to shareholders, we have decidedto increase the interim dividend at a faster rate than the increase in theunderlying operating profit in the half. This has been done with a view tohaving overall dividend payments for 2010 more evenly balanced between theinterim and final dividends, but still in line with our progressive policy ofincreasing dividends for the full year at the same rate as the growth inunderlying operating profits. The interim dividend will be paid on 12 November2010 to members on the register on 15 October 2010.
Current trading and outlook
Rightmove's trading in July and to date in August has been in line with thatduring the first half of the year. This gives us grounds for confidence thatrevenue will continue on an upward path, given our underlying subscriptionmodel, and that our plans for 2011 will deliver further growth in the averagespend per advertiser. We do not believe that such an outlook need be materiallyaffected by flat or modest falls in house prices, provided that transactionvolumes do not take a sharp downward turn and cause our customers to ceasetrading.
Scott Forbes, Chairman
Ed Williams, Managing Director
27 August 2010
(1)Excludes share-based payments and National Insurance (NI) on share-based incentives
(2) 0.3m of these shares, at a cost of £2m, were settled (and subsequently cancelled) following the end of the reporting period
For further information please contact:RightmoveEd Williams, Managing DirectorNick McKittrick, Finance DirectorPress office 07894 255 295
RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF THE HALF YEAR REPORT 2010
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 as adopted by the EU; * The interim management report includes a fair review of the information required by: (a) DTR 4.2.7R of the Disclosure 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 consolidated
interim financial statements; and a description of the principal risks and
uncertainties for the remaining six months of the financial year; and (b) DTR 4.2.8R of the Disclosure 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 Group 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
Scott Forbes, Chairman
Ed Williams, Managing Director
27 August 2010
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME for the six months ended 30 June 2010 Note Restated(1) Restated(1) 6 months ended 6 months ended Year ended 30 June 2010 30 June 2009 31 December 2009 £000 £000 £000 Continuing operations Revenue 3 39,222 31,245 64,521 Administrative expenses (14,593) (12,902)
(27,121)
Operating profit before share-based payments and
NI on share-based 26,833 19,294 40,606incentives Share-based payments 4 (989) (841) (1,896) NI on share-based 4 (1,215) (110) (1,310)incentives Operating profit 24,629 18,343 37,400 Financial income 5 62 105 194 Financial expenses 6 (159) (823) (1,086) Net financial expenses (97) (718) (892) Profit before tax 24,532 17,625 36,508 Income tax expense 10 (6,736) (4,984) (7,420) Profit from continuing 17,796 12,641 29,088operations Discontinued operation
Profit from discontinued
operation 7 17,278 368 939(net of income tax) Profit for the period being total comprehensive 35,074 13,009 30,027income Attributable to: Equity holders of the 35,074 13,009 30,027Parent
Earnings per share (pence)
Basic 8 32.22 11.94 27.52 Diluted 8 31.25 11.90 27.18 Continuing operations Basic 8 16.35 11.60 26.66 Diluted 8 15.85 11.56 26.33 Dividends per share 9 7.00 7.00 10.00(pence) Total dividends 9 7,586 7,615 10,894
(1) Comparative figures have been restated to reflect the treatment of the Holiday Lettings segment as a discontinued operation. For details refer to Note 7.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
as at 30 June 2010 Restated(1) Note 30 June 2010 30 June 2009 31 December 2009 £000 £000 £000 Non-current assets Property, plant and 11 1,256 1,610 1,393equipment Intangible assets 1,376 11,482 14,314 Contingent consideration 7 2,917 - -
Trade and other receivables 7,12 1,000 -
- Deferred tax assets 3,771 328 2,722 Total non-current assets 10,320 13,420 18,429 Current assets Trade and other receivables 12 11,594 9,387 9,421 Cash and cash equivalents 13 22,866 15,118 25,893 Total current assets 34,460 24,505 35,314 Total assets 44,780 37,925 53,743 Current liabilities Loans and borrowings 15 - (5,000) (5,000) Trade and other payables 14 (13,785) (11,523) (13,861) Income tax payable (6,911) (5,361) (5,203) Deferred consideration 17 - (6,133) (8,909) Provisions - (2) (6) Total current liabilities (20,696) (28,019) (32,979) Non-current liabilities Loans and borrowings 15 - (20,000) (17,500) Deferred tax liabilities - (86) (71) Total non-current - (20,086) (17,571)liabilities Net assets/(liabilities) 24,084 (10,180) 3,193 Equity Share capital 1,173 1,201 1,189 Other reserves 259 231 243 Retained earnings/(deficit) 22,652 (11,612) 1,761 Total equity attributable to equity holders of the 16 24,084 (10,180) 3,193Parent (1) Comparative figures for intangible assets have been restated by £534,000 to show dividends paid by subsidiary to minority shareholders as ad adjustment to goodwill. There has been a corresponding increase in retained earnings. CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS for the six months ended 30 June 2010 6 months ended 6 months ended Year ended 30 June 2010 30 June 2009 31 December 2009 £000 £000 £000 Cash flows from operating activities Profit for the period 35,074 13,009 30,027 Adjustments for: Depreciation charges 281 328 646 Amortisation charges 187 243 482 Loss on disposal of property, plant and 11 33 - 94equipment Financial income (62) (109) (199) Financial expenses 159 823 1,088 Share-based payments charge 4 989 841
1,896
Gain on sale of discontinued
operation 7 (16,502) - -(net of income tax) Income tax expense 7,040 5,182 7,794 Operating cash flow before changes in working capital 27,199 20,317 41,828 (Increase)/decrease in trade (2,516) 3,241 3,199and other receivables Increase/(decrease) in trade 2,769 (1,117) 1,225and other payables Increase/(decrease) in 4 (11) (7)provisions Cash generated from 27,456 22,430 46,245operations Interest paid (103) (476) (744) Income taxes paid (4,878) (5,778) (10,783) Net cash from operating 22,475 activities 16,176 34,718 Cash flows from investing activities Interest received 53 108 206 Acquisition of property, 11 (322) (57) (250)plant and equipment Acquisition of intangible (7) (66) (28)assets Disposal of discontinued operation 7 13,693 - -(net of cash disposed of) Net cash from/(used in) 13,417 (15) (72) investing activities Cash flows from financing activities Dividends paid 9 (7,586) (7,615) (10,894)
Subsidiary dividends paid to
minority shareholders 9 (300) (534) (870) Purchase of shares for 16 (10,548) - (5,452)cancellation Purchase of shares by The Rightmove Employees' Share 16 - (918) (2,401)Trust (EBT) Share related expenses (73) - (56) Proceeds on exercise of 16 2,163 12 5,408share options Repayment of borrowings 15 (22,500) (14,750) (17,250) Debt issue costs (75) (125) (125) Net cash used in financing (38,919) (23,930) (31,640)activities (3,027) Net (decrease)/increase in cash and (7,769) 3,006cash equivalents Cash and cash equivalents at 25,893 22,887 22,8871 January
Cash and cash equivalents at 13 22,866 15,118 25,893 period end
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY for the six months ended 30 June 2010 EBT Reverse Share shares Treasury Other acquisition Retained Total capital reserve shares reserves reserve earnings equity £000 £000 £000 £000 £000 £000 £000 At 1 January 1,201 (17,149) (11,917) 93 138 12,125 (15,509)2009 Total comprehensive income Profit for the - - - - - 13,009 13,009period Transactions with owners recorded directly in equity Equity settled share-based - - - - - 841 841incentives charge Dividends to - - - - - (7,615) (7,615)shareholders Exercise of - 10 - - - 2 12share options Purchase of own - (918) - - - - (918)shares At 30 June 2009 1,201 (18,057) (11,917) 93 138 18,362 (10,180) At 1 January 1,201 (17,149) (11,917) 93 138 12,125 (15,509)2009 Total comprehensive income Profit for the - - - - - 30,027 30,027year Transactions with owners recorded directly in equity Equity settled share-based - - - - - 1,896 1,896incentives charge Tax in respect of share-based incentives - - - - - 174 174recognised directly in equity Dividends to - - - - - (10,894) (10,894)shareholders Exercise of - 3,365 - - - 2,043 5,408share options Purchase of own - (2,401) - - - - (2,401)shares Cancellation of (12) - - 12 - (5,452) (5,452)own shares Share related - - - - - (56) (56)expenses At 31 December 2009 1,189 (16,185) (11,917) 105 138 29,863 3,193 At 1 January 1,189 (16,185) (11,917) 105 138 29,863 3,1932010 Total - - - - - 35,074 35,074comprehensive income Profit for the period Transactions with owners recorded directly in equity Equity settled - - - - - 989 989share-based incentives charge Tax in respect - - - - - 873 873of share-based incentives recognised directly in equity Dividends to - - - - - (7,586) (7,586)shareholders Exercise of - 1,317 - - - 846 2,163share options Cancellation of (16) - - 16 - (10,548) (10,548)own shares Share related - - - - - (74) (74)expenses At 30 June 2010 1,173 (14,868) (11,917) 121 138 49,437 24,084 NOTES1 General informationRightmove plc (the Company) is a Company registered in England (Company no.6426485) domiciled in the United Kingdom (UK). The condensed consolidatedinterim financial statements of the Company as at and for the six months ended30 June 2010 comprise the Company and its interest in its subsidiaries(together referred to as the Group). Its principal business is the operation ofthe Rightmove.co.uk website which is the UK's largest property website.The consolidated financial statements of the Group as at and for the year ended31 December 2009 are available upon request to the Company Secretary from theCompany's registered office at4th Floor, 33 Soho Square, London, W1D 3QU or from the investor relations website atwww.rightmove.co.uk/investors.rsp.Basis of preparationThe condensed consolidated interim financial statements have been prepared inaccordance with International Financial Reporting Standard IAS 34 InterimFinancial Reporting and the Disclosure and Transparency Rules of the UK'sFinancial Services Authority. They do not include all of the informationrequired for full annual financial statements and should be read in conjunctionwith the consolidated financial statements of the Group as at and for the yearended 31 December 2009.
The Group has restated the comparatives within the condensed consolidated interim statement of comprehensive income to reflect the Holiday Lettings segment as a discontinued operation following its disposal on 21 June 2010 (refer Note 7).
The condensed consolidated interim financial statements were approved by theBoard of directors on27 August 2010. The half year results for the current and comparative periodare unaudited. The auditor, KPMG Audit Plc, has carried out a review of theinterim financial statements and their report is set out at the end of thisdocument.The comparative figures as at and for the year ended 31 December 2009 areextracted from the Group's statutory accounts for that financial year. Thoseaccounts have been reported on by the auditor and delivered to the Registrar ofCompanies. The report of the auditor was:(i) unqualified;(ii) did not include a reference to any matters to which the auditor drewattention by way of emphasis without qualifying their report; and(iii) did not contain a statement under Section 237 (2) or (3) of the CompaniesAct 2006.The Group's financial risk management objectives and policies are consistentwith that disclosed in the consolidated financial statements as at and for
theyear ended 31 December 2009.Going concern
During 2009, the Group converted £25,000,000 of a revolving loan facility into a five-year term loan.
In February 2010 a decision was made to repay the term loan early therebyextinguishing the debt(refer Note 15). Post repayment of the term loan, the Group was debt free andcontinued to generate significant cash and has cash balances of £22,866,000(2009: net debt £9,882,000).After making enquiries, the Board of directors have a reasonable expectationthat the Group and the Company have adequate resources and banking facilitiesto continue in operational existence for the foreseeable future. Accordinglythe Board of directors continue to adopt the going concern basis in preparingthese financial statements.
2 Significant accounting policies
The accounting policies applied by the Group in these condensed consolidatedinterim financial statements are in accordance with International FinancialReporting Standards as adopted by the European Union (Adopted IFRSs) and,except as described below, are the same as those applied by the Group in itsconsolidated financial statements as at and for the year ended 31 December2009.
The following new standards and amendments to standards are mandatory for the first time for the financial year beginning 1 January 2010:
(i) Revised IFRS 3 Business Combinations (2008) incorporates the following changes that may be relevant to the Group's operations:
* The definition of a business has been broadened, which is likely to result
in more acquisitions being treated as business combinations;
* Contingent consideration will be measured at fair value, with subsequent
changes therein recognised in profit or loss;
* Transaction costs, other than share and debt issue costs, will be expensed
as incurred;
* Any pre-existing interest in the acquiree will be measured at fair value
with the gain or loss recognised in profit or loss; and * Any non-controlling (minority) interest will be measured at either fair value, or at its proportionate interest in the identifiable assets and liabilities of the acquiree, on a transaction by transaction basis. Revised IFRS 3 is applied prospectively and as there have been no acquisitionsin the six month period ended 30 June 2010, to date there has been no impact onthe financial statements or reported earnings per share.(ii) Amended IAS 27 Consolidated and Separate Financial Statements (2008)requires accounting for changes in ownership interests by the Group in asubsidiary, while maintaining control, to be recognised as an equitytransaction. When the Group loses control of a subsidiary, any interestretained in the former subsidiary will be measured at fair value with the gainor loss recognised in profit or loss. The amendments to IAS 27, which becomemandatory for the Group's 2010 consolidated financial statements, have not hadany impact on the consolidated financial statements.
The same accounting policies are anticipated to be applied for the year ending 31 December 2010.
Judgments and estimatesThe preparation of financial statements in conformity with Adopted IFRSsrequires management to make judgments, estimates and assumptions that affectthe application of policies and reported amounts of assets and liabilities,income and expenses. The estimates and associated assumptions are based onhistorical experience and various other factors that are believed to bereasonable under the circumstances, the results of which form the basis ofmaking judgments about carrying values of assets and liabilities that are notreadily apparent from other sources. Actual results may differ from theseestimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods if applicable.
In particular information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in the following notes:
Note 4 Measurement of share-based paymentsNote 7 Measurement of contingent considerationNote 10 Deferred tax assets and liabilities
3 Operating segments
The Group determines and presents operating segments based on the informationthat internally is provided to the Managing Director, who is the Group's ChiefOperating Decision Maker.
The Group's reportable segments are as follows:
* The Agency segment which provides resale and lettings property advertising
services on www.rightmove.co.uk;
* The New Homes segment which provides property advertising services to new
homes developers and Housing Associations on www.rightmove.co.uk; and * The Holiday Lettings segment which provides advertising services in connection with holiday rental properties on www.holidaylettings.co.uk.
The Other segment which represents activities under the reportable segments threshold comprises overseas property advertising services on www.rightmove.co.uk and non-property advertising services which include business and information services and Automated Valuation Model services.
Management monitors the operating results of business segments separately forthe purpose of making decisions about resources to be allocated and ofassessing performance. Segment performance is evaluated based on revenue whichin certain respects, as explained in the table below, is measured differentlyfrom revenue as reported in the consolidated financial statements. All revenuesin all periods are derived from third parties and there are no inter-segmentrevenues.
Operating costs, finance 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.
Discontinued Operating New Holiday segments Agency Homes Lettings Sub Other Central Adjustments Total £000 £000 £000 total £000 £000 £000 £000 £000 Six months ended 30 June 2010 Revenue 30,166 7,652 3,737 41,555 1,404 - (678) (1) 42,281 Operating profit - - 1,801 1,801 - 26,833 (2,925) (3) 25,709(2) Depreciation and - - (24) (24) - (401) (43) (4) (468)amortisation Financial income - - - - - 62 - 62 Financial - - - - - (159) - (159)expenses Trade 7,498 2,407 - 9,905 411 - 48 (6) 10,364receivables(5) Other segment - - - - - 34,416 - 34,416assets Segment - - - - - (20,629) (67)(8) (20,696)liabilities Capital - - 32 32 - 290 - 322expenditure(9) Six months ended 30 June 2009 Revenue 22,479 7,463 2,866 32,808 1,303 - (554)(1) 33,557 Operating - - 1,158 1,158 - 19,294 (1,547) 18,905profit(2) (10) Depreciation and - - (15) (15) - (514) (42)(4) (571)amortisation Financial - - 4 4 - 105 - 109income Financial - - - - - (823) - (823)expenses Trade 5,138 2,579 80 7,797 213 - 147(6) 8,157receivables (5) Other - - 934 934 - 19,102 9,732(7) 29,768segment assets Segment - - (480) (480) - (45,449) (2,176) (48,105)liabilities (8) Capital - - 10 10 - 113 - 123expenditure (9) Year ended 31 December 2009
Revenue 47,096 14,554 5,523 67,173 2,871 - (658) 69,386 (1) Operating profit - - 2,052 2,052 - 40,606 (3,948) 38,710(2) (11) Depreciation and amortisation - - (32) (32) - (1,012) (84) (4) (1,128) Financial income - - 5 5 - 194 - 199 Financial - - (2) (2) - (1,086) - (1,088)expenses Trade 5,806 2,131 77 8,014 209 - 97(6) 8,320receivables(5) Other segment - - 891 891 - 31,731 12,801 45,423assets (7) Segment - - (649) (649) - (47,666) (2,235) (50,550)liabilities (8) Capital - - 49 49 - 229 - 278expenditure(9) (1) Segment revenue in respect of Holiday Lettings is recognised for managementpurposes when the invoice is raised. In the consolidated financial statementsthe revenue is spread evenly over the period of the contracted service with anydeferred revenue held on the balance sheet and accordingly an adjustment hasbeen made to reconcile to consolidated Group revenue.(2) Operating profit is stated after the charge for depreciation andamortisation.(3) Operating profit for the six months ended 30 June 2010 does not includeshare-based payments charge (£989,000), Employer's National Insurance (NI) onshare-based incentives (£1,215,000), the amortisation of customer relationships(£43,000) and the additional segment revenue recognised by Holiday Lettings (£678,000).(4) Depreciation and amortisation excludes the consolidation adjustment inrespect of the amortisation of customer relationships.(5) The only segment assets that are separately monitored by the ChiefOperating Decision Maker relate to trade receivables net of any associatedprovision for impairment. All other segment assets are reported on acentralised basis.(6) The adjustments column reflects the reclassification of credit balances inaccounts receivable made on consolidation for statutory accounts purposes.(7) Other segment assets exclude goodwill arising on consolidation inconnection with the accounting entries for the acquisition of Holiday Lettings(Holdings) Limited (HLHL) as well as the net book value of customerrelationships.(8) The adjustment column reflects the reclassification of credit balances inaccounts receivable, debit balances in accounts payable, as well as anadjustment to reflect the deferred revenue balance in respect of the HolidayLettings segment.(9) Capital expenditure consists of additions of property, plant and equipmentand intangible assets (excluding goodwill).(10) Operating profit for the six months ended 30 June 2009 does not includeshare-based payments charge (£841,000), NI on share-based incentives (£110,000), the amortisation of customer relationships (£42,000) and theadditional segment revenue recognised by Holiday Lettings (£554,000).(11) Operating profit for the year ended 31 December 2009 does not includeshare-based payments charge (£1,896,000), NI on share-based incentives (£1,310,000), the amortisation of customer relationships (£84,000) and theadditional segment revenue recognised by Holiday Lettings (£658,000).
4 Share-based payments
Share optionsIn accordance with IFRS 2 a charge of £785,000 (2009: £747,000) is included inthe statement of comprehensive income, being the amortisation of the value ofall share options granted since 2006. Included in the charge for the six monthsended 30 June 2010 is £119,000 representing the IFRS 2 charge on 440,019executive unapproved share options which were granted on 5 March 2010 at anexercise price of £6.66 subject to an equal measure of TSR performance andgrowth in the Group's earnings per share (EPS). The vesting of 50% of the 2010award will be dependent on a relative TSR performance condition measured over athree-year performance period and the vesting of the other 50% of the 2010award will be dependent on the satisfaction of an EPS growth target over athree-year vesting period.NI is being accrued, where applicable, at a rate of 13.8%, which managementexpect to be the prevailing rate when the share options are exercised, on thedifference between the share price at the period end date and the averageexercise price of the share options. The charge for the six month period ended30 June 2010 is £1,172,000 (2009: £93,000).
Deferred share plan
The deferred share plan allows certain senior management employees theopportunity to earn a bonus linked as a percentage of base salary settled indeferred shares. The award of shares under the plan is contingent on thesatisfaction of pre-set internal targets relating to underlying drivers oflong-term revenue growth. The right to the shares is deferred for two yearsfrom the date of the award and potentially forfeitable during that periodshould the employee leave employment. The deferred share awards have beenvalued using the Black Scholes model and the resulting IFRS 2 charge has beenspread evenly over the combined performance period and the vesting period ofthe shares, being three years. The charge for the six months ended 30 June 2010is £204,000 (2009: £94,000).
NI is being accrued, where applicable, at a rate of 13.8%, which management expect to be the prevailing rate when the share options are exercised, based on the share price at the period end date. The charge for the six month period ended 30 June 2010 is £43,000 (2009: £17,000).
All existing share-based incentives can be satisfied from shares held in TheRightmove Employees' Share Trust (EBT) or from shares held in treasury, so thatthe Company will not need to issue new shares.5 Financial income 6 months ended 6 months ended Year ended 30 June 2010 30 June 2009 31 December £000 £000 2009 £000 Interest income on cash 62 105 194balances 6 Financial expenses 6 months ended 6 months ended Year ended 30 June 2010 30 June 2009 31 December £000 £000 2009 £000 Debt issue costs 75 125 325 Interest expense 52 429 666 Other financial expenses 32 269 95 159 823 1,0867 Discontinued operation
On 21 June 2010 the Group sold its 66.7% shareholding in HLHL, which owned 100%of the shares in the trading entity Holiday Lettings Limited, to TripAdvisorLimited. The Holiday Lettings segment was not previously a discontinuedoperation or classified as a non-current asset held for sale. Accordingly thecomparative statement of comprehensive income has been presented to show thediscontinued operation separately from continuing operations. 6 months ended 6 months ended Year ended 30 June 2010 30 June 2009 31 December £000 £000 2009 £000 Results of discontinued operation Revenue 3,059 2,312 4,865 Administrative expenses (1,979) (1,750) (3,555) Net financial income - 4 3 Results from operating 1,080 566 1,313activities Income tax (304) (198) (374) Results from operating 368 activities 776 939(net of income tax) Gain on sale of discontinued 16,502 - -operation Income tax on gain on sale of - - -discontinued operation
Effect on profit for the period 17,278 368
939 Earnings per share (pence) Basic 15.87 0.34 0.86 Diluted 15.40 0.34 0.85 6 months ended 6 months ended Year ended 30 June 2010 30 June 2009 31 December £000 £000 2009 £000
Cash flows from discontinued
operations Net cash from operating 1,856 1,135 2,070activities Net cash from/(used in) 13,661 (10) (45)investing activities Net cash used in financing (300) (533) (870)activities Net cash from discontinued operation 15,217 592 1,155 6 months ended 30 June 2010 £000
Effect of the disposal on the financial position of the Group Property, plant and equipment (145) Intangible assets (13,058) Trade and other receivables (352) Cash and cash equivalents (1,484) Trade and other payables 3,236 Income tax payable 638 Deferred consideration 8,909 Provisions 10 Deferred tax liabilities 65 Net assets disposed of (2,181) Consideration received, satisfied in cash
15,177
Contingent consideration and amounts held in Escrow 3,917 Less accrued costs to sell (411) Net consideration 18,683 Consideration received, satisfied in cash
15,177
Cash and cash equivalents disposed of (1,484) Net cash inflow 13,693The value of the contingent consideration is dependent on the performance ofthe Holiday Lettings segment for the 12 month period from 1 April 2010 to 31 March 2011. The estimated receivable of £2,917,000 is based on the actualresults to June 2010 plus the latest business forecast for the nine monthperiod to 31 March 2011. In addition £1,000,000 of the completion proceeds areheld in Escrow (refer Note 12), bringing the total estimated futureconsideration to £3,917,000.
8 Earnings per share (EPS)
Weighted average number of Continuing Discontinued Total ordinary operations operations earnings Pence shares £000 £000 £000 per share Six months ended 30 June 2010 Basic EPS 108,872,581 17,796 17,278 35,074 32.22 Diluted EPS 112,226,520 17,796 17,278 35,074 31.25
Underlying basic EPS 108,872,581 20,000 17,278 37,278 34.24
Underlying diluted EPS 112,226,520 20,000 17,278 37,278 33.22 Six months ended 30 June 2009 Basic EPS 108,954,232 12,641 368 13,009 11.94 Diluted EPS 109,319,317 12,641 368 13,009 11.90 Underlying basic EPS 108,954,232 13,592 368 13,960 12.81 Underlying diluted EPS 109,319,317 13,592 368 13,960 12.77 Year ended 31 December 2009 Basic EPS 109,100,758 29,088 939 30,027 27.52 Diluted EPS 110,482,567 29,088 939 30,027 27.18 Underlying basic EPS 109,100,758 32,294 939 33,233 30.46
Underlying diluted EPS 110,482,567 32,294 939 33,233 30.08
Weighted average number of ordinary shares (basic)
6 months ended 6 months ended Year ended 30 June 2010 30 June 2009 31 December 2009 Number of shares Number of shares Number of shares Issued ordinary shares at 1 January less ordinary 111,504,537 111,697,173 111,697,173shares held by the EBT Effect of own shares held (2,505,430) (2,505,430) (2,505,430)in treasury Effect of own shares purchased for cancellation (492,599) - (65,260) Effect of own shares purchased by the EBT - (238,576) (331,649) Effect of share options 366,073 1,065 305,924exercised 108,872,581 108,954,232 109,100,758Weighted average number of ordinary shares (diluted)For diluted EPS, the weighted average number of ordinary shares in issue isadjusted to assume conversion of all dilutive potential shares. The Group hastwo potential dilutive instruments being those ordinary shares held by the EBTand shares held in treasury to satisfy share-based incentives granted toemployees. 6 months ended 6 months ended Year ended 30 June 2010 30 June 2009 31 December 2009 Number of shares Number of shares Number of shares Weighted average number of ordinary shares (basic) 108,872,581 108,954,232 109,100,758 Dilutive impact of own shares held by the EBT and 3,353,939 365,085 1,381,809shares held in treasury 112,226,520 109,319,317 110,482,567
Underlying EPS is calculated before the charge for share-based payments and NIon share-based incentives.A reconciliation of the basic earnings for the period to the underlyingearnings is presented below: 6 months ended 6 months ended Year ended 30 June 2010 30 June 2009 31 December 2009 £000 £000 £000 Basic earnings for the 35,074 13,009 30,027period Share-based payments 989 841 1,896 NI on share-based 1,215 110 1,310incentives Underlying earnings for the 37,278 13,960 33,233period 9 DividendsCompany dividends
Dividends declared and paid by the Company were as follows:
6 months ended 6 months ended Year ended 30 June 2010 30 June 2009 31 December 2009 Pence per Pence per Pence per share £000 share £000 share £000 2008 final dividend - - 7.0 7,615 7.0 7,615paid 2009 interim - - - - 3.0 3,279dividend paid 2009 final dividend 7.0 7,586 - - - -paid 7.0 7,586 7.0 7,615 10.0 10,894After the period end an interim dividend of 5.0p (2009: 3.0p) per qualifyingordinary share being £5,403,000 (2009: £3,264,000) was proposed by the Board ofdirectors.The 2009 final dividend paid on 11 June 2010 was £7,586,000 (31 December 2009:£7,630,000) being a difference of £44,000 compared to that reported in the 2009Annual Report which was due to a reduction in the ordinary shares entitled to adividend between 31 December 2009 and the final dividend record date of14 May 2010.
The terms of the EBT provide that dividends payable on the ordinary shares held by the EBT are waived.
No provision was made for the interim dividend in either period and there are no income tax consequences.
Subsidiary dividends
Dividends of £300,000 (2009: £534,000) were paid in the period by HLHL to minority shareholders.
10 TaxationThe income tax expense is recognised based on management's best estimate of theweighted average annual income tax rate expected for the full financial yearapplied to the profit before tax for the interim period.The Group'sconsolidated effective tax rate in respect of continuing operations for the sixmonths ended 30 June 2010 was 27% (2009: 28%). The difference between thestandard rate and the effective rate at 30 June 2010 is mainly attributable tocredits as a result of the increase in the deferred tax asset arising onshare-based incentives.
The net deferred tax asset of £3,771,000 at 30 June 2010 (2009: £242,000) is in respect of equity settled share-based incentives and depreciation in excess of capital allowances.
11 Property, plant and equipment
During the six months ended 30 June 2010 the Group acquired assets with a cost of £322,000 (2009: £57,000).
Assets with a carrying value of £145,000 were disposed of as part of the discontinued operation. Other assets with a carrying value of £33,000 were disposed of during the six months ended 30 June 2010 (2009: £nil) resulting in a loss of disposal of £33,000 (2009: £nil).
As at 30 June 2010 the Group had committed to incur capital expenditure of £nil (2009: £nil).
12 Trade and other receivables
30 June 2010 30 June 2009 31 December 2009 £000 £000 £000 Trade receivables 10,442 8,338 8,405
Less provision for impairment of
trade receivables (216) (241) (216) Net trade receivables 10,226 8,097 8,189
Amounts owed by related parties
(refer Note 18) 138 60 131 Amounts held in Escrow 1,000 - - Other debtors 35 182 132
Prepayments and accrued income 1,186 1,040
967
Forward exchange contracts - -
2
Accrued interest receivable 9 8
- 12,594 9,387 9,421 Non-current 1,000 - - Current 11,594 9,387 9,421 12,594 9,387 9,421
13 Cash and cash equivalents
30 June 2010 30 June 2009 31 December 2009 £000 £000 £000 Bank accounts 22,866 5,118 932 Deposit accounts - 10,000 24,961
Cash and cash equivalents in the
statement 22,866 15,118 25,893of cash flows Cash balances were placed on deposit for varying lengths between one and twomonths during the period and attracted interest at a weighted average rate
of0.7% (2009: 1.1%).14 Trade and other payables 30 June 2010 30 June 2009 31 December 2009 £000 £000 £000 Trade payables 409 624 777 Trade accruals 3,809 1,949 2,670 Other creditors 237 265 250 Other taxation and social 3,006 1,854 2,798security Deferred revenue 6,324 6,809 7,347 Interest payable - 22 19 13,785 11,523 13,86115 Loans and borrowings
In April 2008, the Group entered into a Sterling-denominated revolving loanfacility of £39,750,000 with the Bank of Scotland to support its share buy backprogramme. During 2009, £14,750,000 of the revolving loan facility was repaidout of surplus cash. On 16 April 2009 the Group converted £25,000,000 being thebalance of its revolving loan facility, into a five year term loan. The loanbore interest at LIBOR plus 1.5% together with a mandatory cost applied by thelender and was repayable over five years in 20 equal instalments.The Board of directors agreed to retire the debt with the Bank of Scotlandearly and on 10 February 2010 the outstanding debt of £21,250,000, being thebalance as at 31 December 2009 less a quarterly instalment of £1,250,000 paidin January 2010, was repaid in full. No penalties or break costs were incurredin exiting the facility early.Post repayment of the debt the Group entered into an agreement with BarclaysBank Plc for a £10,000,000 uncommitted money market loan. To date no amount hasbeen drawn under this facility. 30 June 2010 30 June 2009 31 December 2009 Carrying Carrying Carrying Fair value Fair value Fair value value £000 value £000 value £000 £000 £000 £000 Non-current liabilities Unsecured bank - - 20,000 20,000 17,500 17,500borrowings Current liabilities Unsecured bank - - 5,000 5,000 5,000 5,000borrowings Cash and cash (22,866) (22,866) (15,118) (15,118) (25,893) (25,893)equivalents
Total net (cash)/debt (22,866) (22,866) 9,882 9,882 (3,393) (3,393)
16 Reconciliation of movement in capital and reserves
EBT Reverse Share shares Treasury Other acquisition Retained Total capital reserve shares reserves reserve earnings equity £000 £000 £000 £000 £000 £000 £000 At 1 January 1,201 (17,149) (11,917) 93 138 12,125 (15,509)2009 Profit for the - - - - - 13,009 13,009period Equity settled share-based - - - - - 841 841incentives charge Dividends to - - - - - (7,615) (7,615)shareholders Exercise of - 10 - - - 2 12share options Purchase of own - (918) - - - - (918)shares At 30 June 2009 1,201 (18,057) (11,917) 93 138 18,362 (10,180) At 1 January 1,201 (17,149) (11,917) 93 138 12,125 (15,509)2009 Profit for the - - - - - 30,027 30,027year Equity settled share-based - - - - - 1,896 1,896incentives charge Tax in respect of share-based incentives - - - - - 174 174recognised directly in equity Dividends to - - - - - (10,894) (10,894)shareholders Exercise of - 3,365 - - - 2,043 5,408share options Purchase of own - (2,401) - - - - (2,401)shares Cancellation of (12) - - 12 - (5,452) (5,452)own shares Share related - - - - - (56) (56)expenses At 31 December 2009 1,189 (16,185) (11,917) 105 138 29,863 3,193 At 1 January 1,189 (16,185) (11,917) 105 138 29,863 3,1932010 Profit for the - - - - - 35,074 35,074period Equity settled share-based - - - - - 989 989incentives charge Tax in respect of share-based incentives - - - - - 873 873recognised directly in equity Dividends to - - - - - (7,586) (7,586)shareholders Exercise of - 1,317 - - - 846 2,163share options Cancellation of (16) - - 16 - (10,548) (10,548)own shares Share related - - - - - (74) (74)expenses At 30 June 2010 1,173 (14,868) (11,917) 121 138 49,437 24,084Share buy back
In June 2007, the Company commenced a share buy back programme to purchase itsown ordinary shares. The total number of shares bought back in the six monthsto 30 June 2010 was 1,578,775 (2009: nil shares) representing 1.3% (2009: nil%)of the ordinary shares in issue (excluding shares held in treasury). All theshares bought back in the period were cancelled and no shares were transferredto treasury. The shares were acquired on the open market at a totalconsideration (excluding costs) of £10,548,000 (2009: £nil). The maximum andminimum prices paid were 690p (2009: nil p) and 609p (2009: nil p) per sharerespectively.EBT shares reserveThis reserve represents the carrying value of own shares held by the EBT.During the period the EBT purchased no (2009: 399,836) shares at a cost of £nil(2009: £918,000) to satisfy share-based incentive awards. 642,613 options wereexercised in the period (2009: 5,210) at an average price of £6.50 (2009: £2.59) per ordinary share, which were satisfied by shares held in the EBT. At 30 June 2010 the EBT held 6,776,261 (2009: 8,748,326) ordinary shares of £0.01each in the Company representing 5.9% (2009: 7.4%) of the shares in issue(excluding shares held in treasury). The market value of the shares held in theEBT at the period end was £42,690,000 (2009: £30,750,000).Other reservesThe movement on other reserves of £16,000 (2009: £nil) comprises the nominalvalue of ordinary shares cancelled during the period.
Retained earnings
The gain on exercise of share options is the difference between the value that the shares held by the EBT were originally acquired at and the option grant price at which exercises took place during the period.
17 Deferred consideration
In the terms of the HLHL shareholders' agreement, a put and call option existedto acquire the remaining 33.3% interest owned by management. At 31 December2009 the deferred consideration was increased to £8,909,000 based on RightmoveGroup Limited's best estimate of the likely market value for the business. AsRightmove Group Limited disposed of its 66.7% shareholding on 21 June 2010(refer Note 7) the put and call option was extinguished and thus no balancesheet liability is recorded as at 30 June 2010.
18 Related parties
Inter-group transactions with subsidiaries
During the period Rightmove plc was charged interest of £392,000 (2009: £ 347,000) by Rightmove Group Limited in respect of balances owing under the inter-group loan agreement dated 30 January 2008. As at 30 June 2010 the balance owing under this agreement was £90,723,000 (2009: £ 47,519,000) including capitalised interest of £2,229,000 (2009: £1,573,000).
Directors' transactionsStephen Shipperley, a non-executive director, is also Group Executive Chairmanof Connells Limited, a significant estate agency customer of the Group. During2009 Connells Limited renewed their membership for a further three years on anarms length basis. The Group's transactions and balances with this customer
forall periods were as follows: 6 months ended 6 months ended Year ended 30 June 2010 30 June 2009 31 December £000 £000 2009 £000 Amounts owed by:
Sequence (UK) Limited (Connells) 74 5
80 Connells Residential 64 55 51 138 60 131 Amounts invoiced to:
Sequence (UK) Limited (Connells) 362 280
598 Connells Residential 187 150 327 549 430 925
Included within trade and other receivables is £138,000 due from related parties (2009: £60,000). Trade and other payables include £nil due to related parties in all periods.
Transactions with key management staffThere were no transactions with key management in any period.
Independent review report to Rightmove plc
Introduction
We have been engaged by the Company to review the condensed set of financialstatements in the half year financial report for the six months ended 30 June2010 which comprises the condensed consolidated interim statement ofcomprehensive income, the condensed consolidated interim statement of financialposition, the condensed consolidated interim statement of cash flows, thecondensed consolidated interim statement of changes in shareholders' equity andthe related explanatory notes. We have read the other information contained inthe half year financial report and considered whether it contains any apparentmisstatements or material inconsistencies with the information in the condensedset of financial statements.This report is made solely to the Company in accordance with the terms of ourengagement to assist the Company in meeting the requirements of the Disclosureand Transparency Rules (the DTR) of the UK's Financial Services Authority (theUK FSA). Our review has been undertaken so that we might state to the Companythose matters we are required to state to it in this report and for no otherpurpose. To the fullest extent permitted by law, we do not accept or assumeresponsibility to anyone other than the Company for our review work, for thisreport, or for the conclusions we have reached.Directors' responsibilitiesThe half year financial report is the responsibility of, and has been approvedby, the Board of directors. The Board of directors are responsible forpreparing the half year financial report in accordance with the DTR of the UKFSA.As disclosed in Note 2, the annual financial statements of the Group areprepared in accordance with IFRSs as adopted by the EU. The condensedconsolidated set of financial statements included in this half year financialreport has been prepared in accordance with IAS 34 Interim Financial Reportingas adopted by the EU.Our responsibilityOur responsibility is to express to the Company a conclusion on the condensedconsolidated set of financial statements in the half year financial reportbased on our review.Scope of reviewWe conducted our review in accordance with International Standard on ReviewEngagements (UK and Ireland) 2410 Review of Interim Financial InformationPerformed by the Independent Auditor of the Entity issued by the AuditingPractices Board for use in the UK. A review of interim financial informationconsists of making enquiries, primarily of persons responsible for financialand accounting matters, and applying analytical and other review procedures. Areview is substantially less in scope than an audit conducted in accordancewith International Standards on Auditing (UK and Ireland) and consequently doesnot enable us to obtain assurance that we would become aware of all significantmatters that might be identified in an audit. Accordingly, we do not express anaudit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us tobelieve that the condensed consolidated set of financial statements in the halfyear financial report for the six months ended 30 June 2010 is not prepared, inall material respects, in accordance with IAS 34 as adopted by the EU and theDTR of the UK FSA.S J Wardellfor and on behalf of KPMG Audit PlcChartered AccountantsMilton Keynes27 August 2010
ADVISERS AND SHAREHOLDER INFORMATION
Contacts Registered Corporate office advisers Managing Director: Ed Williams Rightmove plc Financial adviser Chief Operating 4th Floor UBS Investment Officer and Nick McKittrick 33 Soho Square Bank Finance Director: Company Secretary: Liz Taylor London Joint brokers Website www.rightmove.co.uk W1D 3QU UBS Limited Email [email protected] Registered in Numis Securities England Limited no.6426485 Financial calendar Auditor 2010 Half year results 27 August 2010 KPMG
Audit Plc
Interim dividend 15 October 2010 Banker
record date Interim dividend 12 November 2010 Barclays Bank payment plc Interim Management November 2010 Solicitors Statement Full year results 25 February 2011 Slaughter and May Pinsent Masons Registrar Capita Registrars* *Shareholder enquiriesThe Company's registrar is Capita Registrars. Capita Registrars is a tradingname of Capita Registrars Limited.Contact details are:Capita RegistrarsNorthern HouseWoodsome ParkFenay BridgeHuddersfieldHD8 0GA
Capita shareholder helpline: 0871 664 0300 (calls cost 10p per minute plus network extras, lines are open 8.30 a.m. to 5.30 p.m. Monday to Friday) (Overseas: +44 20 8639 3399)
Through the website above, shareholders are able to manage their shareholdingonline and facilities including electronic communications, account enquires,amendment of address and dividend mandate instructions.
vendorRelated Shares:
Rightmove