21st Sep 2006 07:03
Incisive Media PLC21 September 2006 Embargoed until 07.00 21 September 2006 INCISIVE MEDIA PLC INTERIM RESULTS FOR THE PERIOD ENDED 30 JUNE 2006 Incisive Media plc announces half year results for the period ended 30 June2006. Incisive Media is a fast growing specialist business informationprovider, delivering key information to defined target audiences across avariety of platforms in print, in person and online, including magazines,newsletters and books, conferences, exhibitions and training, websites anddatabases. Incisive Media is focused on high value, growth markets, andproviding targeted and integrated marketing solutions where we bring the buyerand the seller together. Incisive Media's market leading brands include Risk,Investment Week, Post Magazine, Your Mortgage, Unquote, Legal Week and SearchEngine Strategies. FINANCIAL AND OPERATING HIGHLIGHTS Unaudited Unaudited 6 months to 6 months to 30/06/06 30/06/05 Change £'000 £'000 % Revenue 32,972 24,025 +37% PROFIT AS REPORTED ON A STATUTORYBASIS Operating profit 5,715 5,019 +14% Operating margin 17% 21% Profit before tax 4,044 3,899 +4% Profit for the financial period 2,779 2,755 +1% pence pence Basic earnings per share 2.75 3.00 -8%Diluted earnings per share 2.72 2.95 -8% PROFIT AS REPORTED ON AN ADJUSTED* £'000 £'000BASIS(see note 3) Adjusted operating profit 6,907 5,473 +26% Adjusted operating margin 21% 23% Adjusted profit before tax 5,307 4,353 +22% Adjusted profit for the financial period 3,947 3,126 +26% pence pence Adjusted basic earnings per share 3.90 3.40 +15%Adjusted diluted earnings per share 3.86 3.34 +16% • Revenue up 37%, underlying revenue** up 9% • Profit before tax up by 4% and adjusted profit before tax up 22% • 140% cash conversion rate of operating profits (2005: 151%) • 116% cash conversion rate of adjusted operating profits (2005: 138%) • Acquisitions of CIFT and AVCJ Adjusted* = before amortisation of intangible assets arising on acquisitions,notional interest on potential future consideration and charges for holiday payaccrued but not taken Underlying revenue** = group revenue excluding revenue for acquisitions made inthe second half of 2005 and first half of 2006 Tim Weller, Chief Executive of Incisive Media plc, commented: "We have made good progress in a busy first six months of the year in which wehave achieved further strong revenue and earnings growth. We have continued toinvest in the business, most notably in our on-line infrastructure, and havecompleted two small acquisitions both of which are extremely complementary tothe Group's existing activities. We have seen slightly weaker trading than expected in some of our markets in thethird quarter, particularly in our investment titles. Nevertheless we believethat the large growth markets we serve remain in robust health overall, withcontinuing opportunities for our business as our clients demand more specificand targeted marketing solutions. Despite this mixed picture in the third quarter and on the back of the stronggrowth in the first half, we expect a satisfactory outcome for the full year." END For further information, please contact: Tim Weller Chief Executive +44 (0) 20 7484 9700 Incisive Media plc [email protected] www.incisivemedia.com Jamie Group Finance +44 (0) 20 7484 9700Campbell-Harris Director Incisive Media plc [email protected] www.incisivemedia.com Anthony Payne Peregrine +44 (0) 20 7484 9983 Communications +44 (0) 7930 643 983 [email protected] Notes: • There will be an analyst briefing at 9.30 am on Thursday 21 September, 2006 at the Companies offices at 28-29 Haymarket, London SW1Y 4RX. • Photographs of Tim Weller and Jamie Campbell-Harris are available at www.incisivemedia.com INCISIVE MEDIA PLC INTERIM RESULTS FOR THE PERIOD ENDED 30 JUNE 2006 Overview for the period We have made good progress in a busy first six months of the year in which wehave achieved further strong revenue and earnings growth. We have continued toinvest in the business, most notably in our on-line infrastructure, and havecompleted two small acquisitions both of which are extremely complementary tothe Group's existing activities. First half revenue for the Group increased by 37% from £24.0m to £33.0m. Thisincludes first half revenues for Search Engine Strategies and the ClickZ Networkand for Global Professional Media, both of which were acquired in the secondhalf of 2005. If revenues from these acquisitions and those completed this yearare excluded, underlying revenues have increased by 9% overall, with aparticularly strong performance in the Risk Management division. Theperformances by division are explained in more detail below. Operating profit for the Group for the period was £5.7m (2005: £5.0m) and profitbefore tax was £4.0m (2005: £3.9m). Diluted earnings per share for the periodwere 2.72 pence per share (2005: 2.95 pence), an 8% decline caused principallyby the increase in the amortisation of intangible assets arising onacquisitions. To demonstrate how we manage the business and assist the reader's understanding,we also report profit and earnings per share on an "adjusted" basis toillustrate the underlying operating performance of the Group without the effectof the non-cash items relating wholly to acquisitions (amortisation ofintangible assets and notional interest on potential future consideration) and,in the case of our interim results, for the holiday pay accrual specific only tothat period end and not relevant at the year end. Adjusted operating profitincreased by 26% to £6.9m (2005: £5.5m) and profit before tax by over 20% to£5.3m (2005: £4.4m). Adjusted diluted earnings per share were 3.86 pence (2005:3.34 pence), an increase of 16%. During the period we made two further acquisitions. CIFT Limited ("CIFT"),which was acquired for an initial consideration of £3m in May, provides bespoketraining, both in classroom and in tailored on-line format for clients in therisk management and wholesale financial markets. This business bringscomplementary skills and content to the Group and is a clear fit with our RiskManagement division. The acquisition for an initial consideration of US$6m ofAVCJ Group Limited ("AVCJ"), publishers of the Asian Venture Capital Journal andassociated titles, was completed in June. AVCJ predominantly serves the Asianprivate equity market, but also covers venture capital and more general M&Aactivity in the region, through a combination of both electronic and printedjournals, research reports using proprietary data and market leadingconferences. This portfolio of products is very complementary to our Unquoteportfolio of products which serve the European private equity market and will bereported within our Financial Services division. The weighting of the Group's revenue and operating profits towards the secondhalf of the year is further increased this year by these acquisitions. Giventhe timing of the acquisitions, neither had a material impact on the operatingperformance for the period and in the short term they are expected to beearnings neutral. Both vendor management teams have been retained in thebusiness and incentivised for growth through future earn-outs. Cash conversion continues to be strong, but lower than the comparable periodlast year with operating cash flow at 140% (2005: 151%) of operating profit and116% (2005: 138%) of adjusted operating profit. Net bank debt at 30 June 2006was £45.9m compared to £28.9m at 30 June 2005 and £45.4m at 31 December 2005. Afurther £3.9m was drawn down in the period to cover the acquisitions and basedon current expectations of future earn-out payments, deferred consideration is£8.5m. AVCJ was partly funded by the issue of new shares to the vendor. Seniorinterest cover, based on adjusted operating profit is 4.3x (2005: 4.9x). During the period we recruited a new divisional managing director, Giles Grant,who is responsible for the interactive marketing portfolio and our group wideweb team. He has supplemented his team with a number of other appointments andthey are working together to ensure Incisive Media's online ambitions andopportunities within the interactive marketing space are fulfilled. Finally, the board has announced today that it has recommended a proposal forthe acquisition of the entire issued and to be issued share capital of thecompany for 195p per share in cash by Apax Summer (Bidco) Limited, a companyformed at the request of Apax Partners LLP, via a scheme of arrangement. Therecommended proposal of 195p is inclusive of any dividends payable in respect ofthe period ended June 2006. Accordingly, the board is not declaring an interimdividend at this time. In the event that the scheme of arrangement does notbecome effective by 31 January 2007, the board intends to declare an interimdividend. Divisional review Financial Services division Excluding the AVCJ acquisition, revenues in this division increased by 6%overall, albeit with some varying performances. The core brand in the Investment portfolio, Investment Week, grew by more than5%, but with timing differences on International Investment's events and tougherconditions for the monthly titles, revenue for the portfolio was flat year onyear. The Mortgage portfolio performed extremely well thanks to very strongperformances from the B2B titles, Mortgage Solutions and Mortgage Edge whichincluded a number of new events. Trading conditions were harder than last yearfor the B2C products and contract business, but overall the portfolio deliveredrevenue growth of 22%. The Alternative Asset portfolio, within which we report our private equity andhedge fund products includes Hedge Funds Review and Unquote. Overall thisportfolio delivered steady growth of 4%, which, but for a strong comparator fromlast year which included a specific one off consultancy contract, would havebeen 9%. The main growth has come from the hedge fund product, Hedge FundsReview, which was up 46% on last year. The private equity products wereessentially flat, but, following continuing investment in this division, were-launched our on-line data product under the brand Private Equity Insight andexpect to see good growth in second half events. Risk Management division We have seen very strong growth in this division, which will be enhanced furtherby the inclusion of CIFT going forward. For the first half, before CIFT, thedivision grew revenues by 18%, with an increase in both subscriptions andadvertising/sponsorship in excess of 20% and in events of around 10%. All the core brands have grown, including Risk and Energy Risk, but we have seenan exceptional performance from Structured Products which, despite only beinglaunched in October 2004, is already a major and very profitable brand. Itdelivered 200% year on year growth for the period. The performance of Life andPensions was also encouraging following its launch last year. Professional Services division Overall this division, which includes the Insurance and Legal portfolios, hasshown a steady underlying growth of 5%, after adjusting the Legal portfolio toinclude last year's revenue for the same period. The Insurance portfolio grew by 4%, reflecting the performance of the core brandPost, as well as the combined performance of the other brands. Only Cover beatthis trend with good growth of 26%. On a like for like basis, the Legal portfolio grew by 5%. This has been drivenby a focus on yield management at the expense of some volume loss, but theoverall effect to the bottom line is more positive with gross margin and thusoperating margin improvement. This is the only division with significant recruitment advertising and there issome pressure on this revenue source, particularly in the Insurance products asclients look to migrate this on-line. We have therefore invested in the on-lineproducts in the whole of this division, with both portfolios launching newon-line recruitment sites. We expect further upside from these going forwardand have received very positive feedback to date. Marketing and Other Specialist Services This division includes the Interactive Marketing, Financial IT and Market Dataand Photographic portfolios. This collection of portfolios delivered strongunderlying growth of 18%, when revenues for the first half of 2005 for SearchEngine Strategies and the ClickZ Network are included. This was driven by the underlying performance of the marketing assets, despitethis being the weaker half in terms of business volume. Search EngineStrategies in New York grew revenues by more than 20%, and with new events inItaly and China, as well as repeat events in London, Munich and Tokyo, and acontinuing strong performance from the ClickZ Network, overall revenues grew byin excess of 30%. We have continued to invest in the products and brands and,with integration costs being slightly more than anticipated, there has been animpact on margins in the period. We remain, however, very encouraged andoptimistic for this portfolio. Following a very strong first half last year for the Financial IT and MarketData portfolio last year, led by Waters, trading has been more difficult thisyear and revenues are flat for the period. We did however continue to investfor the future with additional resource and at the end of the period we launchedInside Reference Data, a sister publication to the very successful Inside MarketData. Revenue for the photographic portfolio was about 10% behind last year after adisappointing first quarter during which there were some senior staff changes,but the second quarter was back on track. Outlook We have seen slightly weaker trading than expected in some of our markets in thethird quarter, particularly in our investment titles. Nevertheless we believethat the large growth markets we serve remain in robust health overall, withcontinuing opportunities for our business as our clients demand more specificand targeted marketing solutions. Despite this mixed picture in the third quarter and on the back of the stronggrowth in the first half, we expect a satisfactory outcome for the full year. Tim Weller Chief Executive 21 September 2006 INCISIVE MEDIA PLC Unaudited interim results for the six months to 30 June 2006 Consolidated profit and loss account Unaudited Unaudited Audited 6 months to 6 months to 12 months to 30/06/06 30/06/05 31/12/05Continuing operations Note £'000 £'000 £'000 Revenue 2 32,972 24,025 57,456 Cost of sales (20,785) (14,424) (33,720) Gross profit 12,187 9,601 23,736 - administrative expenses before amortisation of intangible assets (5,567) (4,393) (9,086)- amortisation of intangible assets (905) (189) (1,839)Administrative expenses (6,472) (4,582) (10,925) Operating profit 2 5,715 5,019 12,811 Interest receivable and similar income 189 107 201Interest payable and similar charges (1,860) (1,227) (2,959) Profit before taxation 4,044 3,899 10,053 Taxation 5 (1,265) (1,144) (2,675) Profit for the period 3 2,779 2,755 7,378 Attributable to: Minority interest (2) (2) 10Equity shareholders 2,781 2,757 7,368 2,779 2,755 7,378 pence pence pence Earnings per share - basic 4 2.75 3.00 7.72 Earnings per share - diluted 4 2.72 2.95 7.61 Dividend paid per share 1.60 1.25 2.15 Consolidated statement of recognised income and expense Unaudited Unaudited Audited 6 months to 6 months to 12 months to 30/06/06 30/06/05 31/12/05 £'000 £'000 £'000 Cash flow hedges: Fair value gain/ (loss) on financial instrumentsnet of deferred taxation 573 (524) (362) Net exchange adjustment offset in reserves net of deferred taxation (764) - 325 Deferred tax on share based payments 58 47 58 Net (losses)/gains not recognised in the profit and loss account (133) (477) 21 Profit for the financial period 2,779 2,755 7,378 Total recognised income and expense for the period 2,646 2,278 7,399 Attributable to: Equity shareholders 2,648 2,280 7,389Minority interest (2) (2) 10 2,646 2,278 7,399 Consolidated balance sheet Unaudited Unaudited Audited 30/06/06 30/06/05 31/12/05 Note £'000 £'000 £'000 AssetsNon-current assetsIntangible assets 142,660 96,820 128,307Property, plant and equipment 1,651 911 1,416Deferred tax assets 160 - 369 144,471 97,731 130,092 Current assetsFinancial assets - derivative 707 46 99financial instrumentsInventories 309 382 360Trade and other receivables 16,477 9,619 14,953Cash and cash equivalents 4,525 5,046 5,918 22,018 15,093 21,330LiabilitiesCurrent liabilitiesFinancial liabilities - (10,544) (8,373) (9,765)borrowingsFinancial liabilities - derivative - - (319)financial instrumentsTrade and other payables (22,078) (14,469) (18,480)Current tax liabilities (3,276) (2,324) (2,833) (35,898) (25,166) (31,397) Net current liabilities (13,880) (10,073) (10,067) Non-current liabilitiesFinancial liabilities - borrowings (39,857) (25,569) (41,503)Other payables (8,197) - -Deferred tax liabilities (5,681) (4,940) (4,957) (53,735) (30,509) (46,460) Net assets 76,856 57,149 73,565 Shareholders' equityOrdinary shares 1,022 923 1,006Share premium 50,254 36,201 48,180Other reserves 9,023 8,582 9,082Retained earnings 16,557 11,451 15,293 Total shareholders' equity 76,856 57,157 73,561 Minority interest in equity - (8) 4 Total equity 8 76,856 57,149 73,565 Consolidated cash flow statement Unaudited Unaudited Audited 6 months to 6 months to 12 months to Note 30/06/06 30/06/05 31/12/05 £'000 £'000 £'000 Cash flows from operating activitiesCash generated from operations 7 8,016 7,563 14,395Interest received 80 107 200Interest paid (1,707) (1,156) (2,682)Tax paid (764) (799) (2,128)Net cash from operating activities 5,625 5,715 9,785 Cash flows from investing activitiesAcquisition of subsidiaries (net of cash acquired) (6,686) - (5,926)Acquisition of trading businesses - (450) (25,470)Payment of deferred consideration - (2,000) (2,000)Purchase of plant and equipment (429) (284) (952)Payments to purchase intangible assets (116) (141) (141)Net cash flows from investing activities (7,231) (2,875) (34,489) Cash flows from financing activitiesNet proceeds from the issue of ordinary share capital 2,090 307 12,369Net proceeds from the issue of new bank loans 3,828 2,500 22,744Net proceeds from the issue of new loan notes 640 - -Repayment of bank loans (4,820) (1,849) (3,753)Repayment of loan notes (655) (2,944) (3,686)Dividends paid to shareholders (1,619) (1,142) (2,061)Net cash (used in)/from financing activities (536) (3,128) 25,613 Effect of exchange rate changes 749 - (325) Net (decrease)/increase in cash and cashequivalents (1,393) (288) 584 Cash and cash equivalents at the beginning of the period 5,918 5,334 5,334 Cash and cash equivalents at the end of the period 4,525 5,046 5,918 Notes to the interim statements 1. Basis of preparation These interim consolidated financial statements of Incisive Media plc are forthe six months ended 30 June 2006 and comprise the results, assets andliabilities of the Company and its subsidiaries (the "Group"). These interim consolidated financial statements have been prepared in accordancewith the Listing Rules of the Financial Services Authority. They have not beenprepared in accordance with IAS 34 'Interim Financial Reporting'. They do notinclude all of the information required for full annual financial statements,and should be read in conjunction with the audited consolidated financialstatements of the Group for the year ended 31 December 2005. These interimconsolidated financial statements were approved by the Board of Directors on 21September 2006. The accounting policies applied by the Group in these interim consolidatedfinancial statements are the same as those applied by the Group in its auditedconsolidated financial statements for the year ended 31 December 2005. The basisof consolidation is set out in the Group's accounting policies in thosefinancial statements. The preparation of the interim financial statements requires management to makejudgments, estimates and assumptions that affect the application of accountingpolicies and the reported amounts of assets and liabilities, income andexpenses. In preparing these interim consolidated financial statements, thesignificant judgments made by management in applying the Group's accountingpolicies and the key sources of estimation uncertainty were the same as thoseapplied to the audited consolidated financial statements for the year ended 31December 2005. The audited consolidated financial statements of the Group for the year ended 31December 2005 are available upon request from the Company's registered office atHaymarket House, 28-29 Haymarket, London, SW1Y 4RX or at www.incisivemedia.com. 2. Segmental review Segment information is presented in respect of the Group's business segments.The primary format, business segments is based on the Group's management andinternal reporting structure. The Group comprises the following main businesssegments: Financial Services, Risk Management, Professional Services andMarketing and Other Specialist Services. Segment results include items directly attributable to a segment as well asthose that can be allocated on a reasonable basis. Unallocated items comprisemainly of corporate and head office expenses. Unaudited Unaudited Audited 6 months to 6 months to 12 months to 30/06/06 30/06/05 31/12/05 £'000 £'000 £'000 RevenueFinancial Services 12,141 11,308 23,281Risk Management 8,913 7,344 16,105Professional Services 5,840 3,215 10,418Marketing and Other Specialist 6,078 2,158 7,652Services 32,972 24,025 57,456 Unaudited Unaudited Audited 6 months to 6 months to 12 months to 30/06/06 30/06/05 31/12/05 £'000 £'000 £'000 Operating profitFinancial Services 2,941 2,815 6,469Risk Management 2,474 1,893 4,937Professional Services 699 627 2,512Marketing and Other Specialist (129) 29 (199)ServicesCentral departments (270) (345) (908) 5,715 5,019 12,811 The comparative figures for the 6 months to 30 June 2005 have been adjusted toreflect an allocation of central costs consistent with the basis applied since31 December 2005. 3. Profit for the period Unaudited Unaudited Audited 6 months to 6 months to 12 months to 30/06/06 30/06/05 31/12/05 £'000 £'000 £'000 Profit for the period is stated after charging:Amortisation of intangible assets- contracted business at date of acquisition - 177 1,120- intangible assets arising on acquisitions 876 - 678- software 29 11 35- other intangible assets - 1 6Depreciation 273 159 365Holiday pay accrued but not taken 316 277 -Fair value of share based payments 176 25 177 In order to assist the understanding of the underlying performance of thebusiness, the following adjustments have been made to arrive at an adjustedprofit before taxation and are referred to in the Chief Executive's report andfinancial highlights. The adjustments made are for: i Non-cash charges to profit before tax that relate to acquisitions.These include amortisation of intangible assets and notional interest ondeferred consideration; and ii A charge for untaken holiday accrued as at the balance sheet date.This is a particular charge to the half year, as the Group's policy that staffuse or lose their holiday entitlement, which runs on a calendar basis, meansthat no liability exists at the year end. A corresponding tax charge on thisadd back is deducted. Unaudited Unaudited Audited 6 months to 6 months to 12 months to 30/06/06 30/06/05 31/12/05 £'000 £'000 £'000 Operating profit - statutory 5,715 5,019 12,811basis Add back: Amortisation of intangible assets that arose onacquisition 876 177 1,798Add back: Holiday pay accrued but 316 277 -not taken Adjusted operating profit 6,907 5,473 14,609 Interest receivable and similar income 189 107 201Interest payable and similar charges (1,860) (1,227) (2,959)Deduct: interest charge on deferred consideration 71 - -Adjusted profit before taxation 5,307 4,353 11,851 Taxation (1,265) (1,144) (2,675)Deduct: notional taxation charge on contracted business atacquisition - - (420)Deduct: notional taxation charge on holiday pay accrued but not taken (95) (83) -Adjusted profit for the period 3,947 3,126 8,756 Attributable to:Minority interest (2) (2) 10Equity shareholders 3,949 3,128 8,746 3,947 3,126 8,756 The adjustments made in the interim statements for the six months ended 30 June2005 also included an add back for charges for the fair value of share basedpayments. As these are no longer treated as an adjusting item, the comparativefigures presented above for the six months to 30 June 2005 have been updatedaccordingly. 4. Earnings per share Unaudited Unaudited Audited 6 months to 30/06/06 6 months to 30/06/05 12 months to 31/12/05 Weighted Weighted Weighted average average average number Amount number Amount number Amount of per of per of per Earnings shares share Earnings shares share Earnings shares share £'000 '000 pence £'000 '000 pence £'000 '000 pence On profitattributable toordinaryshareholders Basic earnings per share 2,781 101,154 2.75 2,757 91,880 3.00 7,368 95,442 7.72 Effect of dilutivesecurities -options tostaff - 1,049 - - 1,676 - - 1,433 - Diluted earnings pershare 2,781 102,203 2.72 2,757 93,556 2.95 7,368 96,875 7.61 On adjustedprofitattributable toordinaryshareholders Basic earnings per share 2,781 101,154 2.75 2,757 91,880 3.00 7,368 95,442 7.72 Amortisation of intangibleassets thatarose onacquisition 876 - 0.87 177 - 0.19 1,798 - 1.86Holiday pay accrued but nottaken 316 - 0.31 277 - 0.30 - - -Interest charge on deferredconsideration 71 - 0.07 - - - - - -Notional taxation chargeon contractedbusiness atdate ofacquisition - - - - - - (420) - (0.43)Notional taxation chargeon holiday payaccrued but nottaken (95) - (0.10) (83) - (0.09) - - - Adjusted basic earnings per share 3,949 101,154 3.90 3,128 91,880 3.40 8,746 95,442 9.16Effect of dilutivesecurities -options tostaff - 1,049 - - 1,676 - - 1,433 - Adjusted dilutedearnings pershare 3,949 102,203 3.86 3,128 93,556 3.34 8,746 96,875 9.03 5. Taxation The tax charge for the six months to 30 June 2006 is based on the profit beforetax for that period, and results in an effective tax rate of 31.3% (6 months to30 June 2005: 29.3%, 12 months to 31 December 2005: 26.7%). 6. Dividends The dividend paid in the period to 30 June 2006 was £1,619,000 (6 months to 30June 2005: £1,142,000, 12 months to 31 December 2005: £2,061,000). 7. Reconciliation of profit for the period to cash generated from operations Unaudited Unaudited Audited 6 months to 6 months to 12 months to 30/06/06 30/06/05 31/12/05 £'000 £'000 £'000 Profit for the period 2,779 2,755 7,378 Adjusted for:Taxation charge 1,265 1,144 2,675Depreciation 273 159 365Amortisation of intangible assets 905 189 1,839Fair value of share based payments 176 25 177Interest receivable and similar income (80) (107) (201)Interest payable and similar charges 1,860 1,227 2,959Fair value (gain)/loss on revaluation of financial instruments (109) - 12 Changes in working capital(excluding effects ofacquisitions)Decrease in inventories 51 85 107(Increase)/decrease in trade and other receivables (647) 274 (2,746)Increase in payables 1,543 1,812 1,830 Cash generated from operations 8,016 7,563 14,395 8. Statement of changes in shareholders' equity Unaudited Unaudited Audited 30/06/06 30/06/05 31/12/05 £'000 £'000 £'000 Profit attributable to equity shareholders 2,781 2,757 7,368 Net exchange adjustment offset in reserves net of deferred taxation (764) - 325Dividends (1,619) (1,142) (2,061)Shares issued including issue costs 2,090 307 12,369Fair value of share based payments 176 25 177Deferred tax on share based payments 58 47 58Cash flow hedges: Fair value gain/(loss) on financial instruments net of deferredtaxation 573 (524) (362) Net movement for the period 3,295 1,470 17,874 Total equity at the beginning of the period 73,565 55,527 55,527 Transitional adjustment on adoption of IAS 39 - 154 154 76,860 57,151 73,555 Minority interests (4) (2) 10 Total equity at the end of the period 76,856 57,149 73,565 Independent review report to Incisive Media plc Introduction We have been instructed by the company to review the financial information forthe six months ended 30 June 2006 which comprises the consolidated interimbalance sheet as at 30 June 2006 and the related consolidated interim statementsof income, cash flows and the consolidated statement of recognised income andexpense for the six months then ended and the related notes. We have read theother information contained in the interim report and considered whether itcontains any apparent misstatements or material inconsistencies with thefinancial information. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. The Listing Rulesof the Financial Services Authority require that the accounting policies andpresentation applied to the interim figures should be consistent with thoseapplied in preparing the preceding annual accounts except where any changes, andthe reasons for them, are disclosed. This interim report has been prepared in accordance with the basis set out inNote 1. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board for use in the United Kingdom. A reviewconsists principally of making enquiries of management and applying analyticalprocedures to the financial information and underlying financial data and, basedthereon, assessing whether the disclosed accounting policies have been applied.A review excludes audit procedures such as tests of controls and verification ofassets, liabilities and transactions. It is substantially less in scope than anaudit and therefore provides a lower level of assurance. Accordingly we do notexpress an audit opinion on the financial information. This report, includingthe conclusion, has been prepared for and only for the company for the purposeof the Listing Rules of the Financial Services Authority and for no otherpurpose. We do not, in producing this report, accept or assume responsibilityfor any other purpose or to any other person to whom this report is shown orinto whose hands it may come save where expressly agreed by our prior consent inwriting. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 30 June 2006. PricewaterhouseCoopers LLP Chartered Accountants Milton Keynes 21 September 2006 Notes: (a) The maintenance and integrity of the Incisive Media plc web site isthe responsibility of the directors; the work carried out by the auditors doesnot involve consideration of these matters and, accordingly, the auditors acceptno responsibility for any changes that may have occurred to the interim reportsince it was initially presented on the web site. (b) Legislation in the United Kingdom governing the preparation anddissemination of financial information may differ from legislation in otherjurisdictions. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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