23rd Sep 2005 07:01
Interactive Prospect TargetingHdgs23 September 2005 For Immediate Release 23 September 2005 Interactive Prospect Targeting Holdings plc Interim Results 2005 Interactive Prospect Targeting ('IPT' - IPH/L), the UK's leading online directmarketing company, announces it has made significant progress in its first sixmonth reporting period as a public company, for the half year to 30 June 2005,with continuing strong organic growth in its core businesses. FINANCIAL HIGHLIGHTS - RECORD INTERIM RESULTS •Turnover up 42% to £5.7m (2004: £3.9m) •Operating profit up 68% to £0.7m (2004: £420k) •Profit before tax (including profit on disposal of fixed asset investment of £0.5m) up 209% to over £1.3m (2004: £430k) •Diluted earnings per share up 170% to 2.7p (2004: 1.0p) •Shareholders funds up 3.3x to £7.6m (2004: £2.3m) •Net cash of £5.5m (2004: £716k) OPERATING HIGHLIGHTS - GROWTH IN 3 CORE DIVISIONS •Leading position as UK's number 1 online consumer data and services company reflected in strong revenue and operating profit performance within the rapidly expanding online marketing sector. •In 2004 UK internet advertising grew by 60.2% to over £0.7bn said recent report from PricewaterhouseCoopers / Interactive Advertising Bureau. •IPT now collected 90 million questionnaires since 2000. •Over 9 million registered users on IPT's sites. •Customer acquisition division largest collector of on-line consumer information for marketing purposes. •Direct division carries out over 100 campaigns per month for clients. •Since half year end, first major acquisition, of the Postal Preference Service Ltd for £4.3m, coinciding with placing of 2.61m ordinary shares, raising £2.8m net of expenses. •Adds offline / online direct marketing and client base with offline database of over 4 million households and online data on 0.35 million households. Commenting today on the outlook, Colin Lloyd, Chairman, said: "IPT has started the second half of 2005 on a positive note with strongperformances from all three of our core operating divisions and retains itsmarket leading position in the direct marketing / new media marketplace." For further information contact: IPTLionel Thain, CEO Tel: 020 7932 4100 CANACCORD CAPITAL EUROPEMark Williams Tel: 020 7518 7343 BINNS & CO PR LTDPeter Binns Tel: 020 7153 1477 Mob: 07768 392 582 CHAIRMAN'S STATEMENT Last year I reported that the Company's pioneering has helped the development ofthe online data capture and email communication medium, and a recent report fromPricewaterhouseCoopers/Interactive Advertising Bureau revealed that in 2004 UKInternet Advertising grew by 60.2% to over £0.7bn. This firmly establishesInternet Advertising as the fastest growing segment within the total advertisingmarket which itself grew by 5.8% to over £15.8bn. Overall IPT has now collectedover 90m questionnaires since 2000 and now has over 9m registered users on itssites. Our Customer Acquisition Division continues to go from strength to strength withMyOffers.co.uk leading the market in the collection of on-line consumerinformation for marketing purposes. This division currently collects between 2and 3m questionnaires each month on behalf of its customers. Our Direct Division continues to achieve new heights with the volume and valueof data provided to its customers for direct communication by email, post orSMS. This division currently carries out over 100 campaigns per month on behalfof its clients. Previously I reported that the Company had made substantial investments intechnology and product development, building the right infrastructure forsustained future growth. This year our investment has concentrated in ourServices Division with the upgrade of our cutting edge Ironport A60 emailbroadcasting machines and the introduction of a new email campaign managementsolution. The combination of these resources will allow our Service Division theability to offers its clients new levels of efficiency and service.IPT has started 2005 on a very positive note and retains its market leadingposition in the direct marketing/new media marketplace. I look forward toupdating you later with our progress though 2005. Subsequent Event On 19th August 2005, the Company completed its first major acquisition, ThePostal Preference Service Ltd (PPS), a company providing consumer marketinginformation to direct marketers, in a deal valuing PPS at £4.3m. The acquisition of PPS brings into the Group an acknowledged offline and onlinedirect marketing company that has an established reputation and client base oftraditional direct marketers. Together with its offline database of over 4mhouseholds PPS holds on-line data on 0.35m households. The combination of thesedata resources together with those already held within the Group offers a newopportunity for direct marketers to combine significant quantities of both onand off-line data, from one source, into marketing campaigns. The establishedoffline client base of PPS also offers the Group a new opportunity to introducethese clients to the benefits of on-line marketing while continuing to servicetheir offline needs. On 25th August 2005, to coincide with the acquisition of PPS, the Company placed2,610,000 ordinary shares raising £2.8m, net of expenses, at a marketcapitalisation of £41.2m. Colin LloydNon-executive Chairman CONSOLIDATED PROFIT AND LOSS ACCOUNTFOR THE SIX MONTHS ENDED 30 JUNE 2005 Note 6 months 6 months Year ended ended ended 30 June 30 June 31 December 2005 2004 2004 Unaudited Audited Audited £'000 £'000 £'000 TURNOVER 5,669 3,982 8,441Cost of sales (1,109) (812) (1,607) _________ _______ ________Gross profit 4,560 3,170 6,834Administrative expenses (3,856) (2,750) (5,944) _________ _______ ________OPERATING PROFIT 704 420 890Profit on disposal of fixedasset investments 506 - 78Interest receivable andsimilar income 119 10 34 _________ _______ ________PROFIT ON ORDINARY ACTIVITIESBEFORE TAXATION 1,329 430 1,002Tax charge on profit onordinary activities 2 (403) (135) (299) _________ _______ ________PROFIT FOR THE FINANCIAL YEARAFTER TAXATION 926 295 703Minority interest - (11) (2) _________ _______ ________PROFIT FOR THE FINANCIAL YEARAFTER TAXATION & MINORITYINTEREST 926 284 701Dividends 3 - (63) (115) _________ _______ ________Retained profit for the period 5 926 221 586 ========= ======= ========Earnings per share Basic earnings per share(pence) 4 3.0p 1.2p 3.0p _________ _______ ________Diluted earnings per share(pence) 4 2.7p 1.0p 2.6p _________ _______ ________ All results arise from continuing operations There are no recognised gains or losses other than the results for the year.Accordingly, a statement of total recognised gains and losses has not beenpresented. CONSOLIDATED BALANCE SHEETAT 30 JUNE 2005 Note 30 June 30 June 31 December 2005 2004 2004 Unaudited Audited Audited £'000 £'000 £'000FIXED ASSETSIntangible assets - goodwill 42 - 45Intangible assets - other 583 303 403Tangible fixed assets 471 392 385Investments 2 2 2 _________ _______ ________ 1,098 697 835 _________ _______ ________CURRENT ASSETSDebtors 3,309 2,402 2,473Current asset investments 17 56 28Cash at bank and in hand 5,461 716 5,204 _________ _______ ________ 8,787 3,174 7,705CREDITORS: amounts falling due within one year (2,327) (1,498) (1,894) _________ _______ ________NET CURRENT ASSETS 6,460 1,676 5,811 _________ _______ ________TOTAL ASSETS LESSCURRENT LIABILITIES 7,558 2,373 6,646CREDITORS: amounts falling due after one year - (8) (3) _________ _______ ________NET ASSETS 7,558 2,365 6,643 ========= ======= ========CAPITAL AND RESERVESCalled up share capital 5 133 104 133Share premium account 5 3,915 - 3,926Merger reserve 5 2,354 2,237 2,354EBT reserve 5 (2) (2)Other reserve 5 18 80 18Profit and loss account 5 1,140 (151) 214 _________ _______ ________ SHAREHOLDERS' FUNDS 5 7,558 2,270 6,643Minority interest - 95 - _________ _______ ________TOTAL CAPITAL EMPLOYED 7,558 2,365 6,643 ========= ======= ========Total shareholders funds may beanalysed as follows:Equity interests 7,558 669 6,643Non-equity interests - 1,601 - _________ _______ ________ 7,558 2,270 6,643 ========= ======= ======== CONSOLIDATED CASHFLOW STATEMENTFOR THE SIX MONTHS ENDED 30 JUNE 2005 Notes 6 months 6 months Year ended ended ended 30 June 30 June 31 December 2005 2004 2004 Unaudited Audited Audited £'000 £'000 £'000 Net cash inflow fromoperating activities 6 188 102 950Returns on investments andservicing of finance 119 10 (99)Taxation (14) - -Capital expenditure andfinancial investment (18) (306) (503) _________ _______ ________Cash inflow/(outflow) beforemanagement of liquidresources and financing 275 (194) 348Financing (18) 6 3,952 _________ _______ ________Increase/(decrease) in cashin the year 257 (188) 4,300 ========= ======= ======== NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2005 1. BASIS OF PREPARATION The financial information for the half year ended 30 June 2005 has been preparedon a basis consistent with the statutory account for the year ended 31 December2004. The financial information contained in this statement does not constitutestatutory accounts within the meaning of section 240 of the Companies Act 1985.The information for the six months ended 30 June 2005 has not been audited. Theinformation relating to the year ended 31 December 2004 is an extract from theaudited statements for that year on which the auditors gave an unqualified auditreport. A copy of those financial statements has been filed with the Registrarof Companies. 2. TAX CHARGE ON PROFIT ON ORDINARY ACTIVITIES The tax charge comprises 6 months 6 months Year ended ended ended 30 June 30 June 31 December 2005 2004 2004 Unaudited Audited Audited £'000 £'000 £'000 Current taxUK corporation tax (407) (14) (137)Adjustment in respect of prior years - - (7) _________ _______ ________ (407) (14) (144) _________ _______ ________Deferred taxDecrease in estimate of recoverabledeferred tax asset 4 (121) (169)Adjustment in respect of prior years - - 14 _________ _______ ________ 4 (121) (155) _________ _______ ________Total tax on profit on ordinaryactivities (403) (135) (299) ========= ======= ======== The difference between the total current tax as shown and the amounts calculatedby applying the standard rate of UK corporation tax to the profit before tax isas follows: 6 months 6 months Year ended ended ended 30 June 30 June 31 December 2005 2004 2004 Unaudited Audited Audited £'000 £'000 £'000Profit on ordinary activities beforetax 1,329 430 1,002 _________ _______ ________Tax on profit on ordinary activitiesat standard UK corporation tax rateof 30% (399) (129) (301) Effects of:Capital allowances in excess ofDepreciation 12 (14) (22)Expenses not deductible for taxpurposes (12) (6) (17)Prior period adjustments - - (7)Utilisation of prior period losses - 135 186Other timing differences (8) - 5Other - - 12 _________ _______ ________Current tax charge for period (407) (14) (144) ========= ======= ======== 3. DIVIDENDS 6 months 6 months Year ended ended ended 30 June 30 June 31 December 2005 2004 2004 Unaudited Audited Audited £'000 £'000 £'000Non-equity shares Class B-1 (10% cumulative dividend) - 18 34Class B-2 (10% cumulative dividend) - 20 36Class C-1 (10% cumulative dividend) - 25 45 _________ _______ ________ - 63 115 ========= ======= ======== The preference dividend related to the preference shares that were held inInteractive Prospect Targeting Ltd, a subsidiary undertaking. The preference shares were converted to ordinary shares on 30 November 2004 at arate of 1 ordinary share per preference share held, and the accumulated dividendoutstanding was paid on that date. On 1 December 2004 Interactive ProspectTargeting Holdings plc acquired all the share capital of Interactive ProspectTargeting Limited pursuant to a share for share exchange agreement. 4. EARNINGS PER SHARE The calculation of earnings per share is based on the following profits andnumber of shares: 6 months ended 6 months ended Year ended 30 June 2005 30 June 2004 31 December 2004 Unaudited Audited Audited Profit Number of Pence Profit Number of Pence Profit Number of Pence after tax shares per after shares per after shares per share tax share tax share £'000 '000 £'000 '000 £'000 '000 Basic earnings pershare 926 31,021 3.0 221 18,558 1.2 586 19,406 3.0 Impact of shareoptions - 2,907 (0.3) - 3,624 (0.1) - 3,130 (0.4) Impact of preferenceshares - - - 63 4,885 (0.1) 115 4,471 - ______ _______ ____ _____ ________ _____ _____ _______ _____ 926 33,928 2.7 284 27,067 1.0 701 27,007 2.6 ====== ======= ==== ===== ======== ===== ===== ======= ===== 5. RESERVES Group Profit and Share Share loss Merger Other premium Capital account reserve EBT reserve reserve account Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited At 1 January 2005 133 214 2,354 (2) 18 3,926 6,643 Profit retained for theperiod 926 926 Expenses relating to theissue of shares (11) (11) _____ ______ ______ _____ _____ _______ ______ At 31 December 2004 133 1,140 2,354 (2) 18 3,915 7,558 ===== ====== ====== ===== ===== ======= ====== The merger reserve reflects the difference between the nominal value of theshares issued to acquire a subsidiary company, Interactive Prospect TargetingLimited, and the cumulative value of the company's share capital and sharepremium account at the date of acquisition. 6. RECONCILIATION OF OPERATING PROFIT TO OPERATING CASH FLOWS 6 months 6 months Year ended ended ended 30 June 30 June 31 December 2005 2004 2004 Unaudited Audited Audited £'000 £'000 £'000 Operating profit 704 420 890Depreciation 144 162 238Amortisation 129 141Loss on fixed asset investment - - 1Profit on disposal of fixed assets - - (2)Increase in debtors (838) (589) (701)Increase in creditors 49 109 383 _________ _______ ________Net cash inflow from operatingactivities 188 102 950 ========= ======= ======== 7. ANALYSIS OF CHANGES IN NET FUNDS 1 January Cash flow 30 June 2005 2005 £'000 £'000 £'000 Cash in hand, at bank 5,204 257 5,461 Finance leases (14) 6 (8) _________ _______ ________Net funds 5,190 263 5,453 ========= ======= ======== 8. SUBSEQUENT EVENT On 19th August 2005, the Group acquired The Postal Preference Service Ltd, acompany providing consumer marketing information to direct marketers, for a total consideration of £4.3m. To fund the acquisition of PPS, the company placed 2,610,000 ordinary sharesraising £2.8m, net of expenses, at a market capitalisation of £41.2m. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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