TIDMRMV
RNS Number : 4843H
Rightmove Plc
28 July 2023
HALF YEAR RESULTS ANNOUNCEMENT FOR RIGHTMOVE PLC - SIX MONTHSED
30 JUNE 2023
Rightmove plc, the UK's largest property portal, today announces
its unaudited results for the six months ended 30 June 2023.
http://www.rns-pdf.londonstockexchange.com/rns/4843H_1-2023-7-27.pdf
A strong financial performance, driven by the resilient and
growing customer demand for our products and services
Financial Highlights H1 2023 H1 2022 Change vs 2022 % Change vs 2022
----------------------------------- ---------- ---------- --------------- -----------------
Revenue GBP179.5m GBP162.7m GBP16.8m 10%
Operating profit GBP129.5m GBP121.3m GBP8.2m 7%
Underlying operating profit (1) GBP133.2m GBP122.4m GBP10.8m 9%
Interim dividend 3.6p 3.3p 0.3p 9%
Basic earnings per share 12.1p 11.7p 0.4p 3%
Underlying earnings per share (2) 12.5p 11.8p 0.7p 6%
----------------------------------- ---------- ---------- --------------- -----------------
-- Revenue up GBP16.8m/10% to GBP179.5m, as customers increased
their use of our digital products and continued to upgrade their
packages: the highest revenue growth in a first half period since
2018(3)
-- Operating profit of GBP129.5m, up 7% (2022: GBP121.3m)
-- Underlying operating profit(1) of GBP133.2m, up 9% (2022: GBP122.4m)
-- Basic earnings per share up 3% to 12.1p (2022: 11.7p);
underlying earnings per share(2) up 6% to 12.5p (2022: 11.8p) -
lower growth reflects the impact of the corporation tax increase in
2023
-- Interim dividend up 9% to 3.6p per ordinary share (2022: 3.3p)
-- GBP97.6m of returns to shareholders through share buybacks
and dividends in the first half of 2023 (2022: GBP100.3m); 10
million shares (1.2% of outstanding share capital) cancelled in the
first half of the year (2022: 9.8 million)
-- Cash and cash equivalents, including money market deposits,
of GBP43.2m (31 December 2022: GBP40.1m)
Operational highlights
-- Average Revenue Per Advertiser (ARPA) (4) up 9% to GBP1,411
per month (30 June 2022: GBP1,290)
-- Highest New Homes ARPA growth in any reporting period to
date, up GBP330 (23%), and strong Agency ARPA growth, up GBP79
(6%), both driven by increased product and package purchases and
customer contract renewals
-- Membership numbers stable: up 1%/102 since the start of the
year at 19,116 (Dec 22: 19,014), with 16,093 Agency branches and
3,023 New Homes developments (31 December 2022: 15,932 and
3,082)
-- Time on site averaged 1.4 billion(5) minutes per month over
the period (2022: 1.5 billion), reflecting 2023's slower property
market; 27% above pre- pandemic levels (June 2019: 1.1 billion)
-- Strong market share continues at 86%(5) (2022: 85%) as
Rightmove remains the trusted site that home-hunters turn to first
to search for properties and to inform themselves about the housing
market
-- Penetration of the top Estate Agency package, Optimiser,
increased to 36% (Dec 22: 34%) and significant upgrades to the New
Homes top package, Advanced, up to 49% (Dec 22: 42%)
-- Continued product innovation, including: the launch of Joint
Application Mortgages in Principle; Enquiry Manager - our
qualification product for Lettings customers; and Track A Property
for consumers
-- Other business units, now representing 10% of revenues, have grown strongly, up 11%
-- SBTi targets validated and renewed focus on green homes
initiatives; the second edition of our annual Greener Homes report
is published today.
(1) Underlying operating profit is operating profit before the
share-based payments charges (including the related NI charge)
(2) Underlying EPS is profit for the year before share-based
payments charges (including the related National Insurance and
appropriate tax adjustments), divided by the weighted average
number of ordinary shares outstanding in the period
(3) Excluding the 58% growth in H1 2021 following covid discounts in 2020
(4) Average Revenue per Advertiser (ARPA) is calculated as
revenue from Agency and New Homes advertisers in a given month
divided by the total number of advertisers during the month,
measured as a monthly average over the six-month period.
(5) Source: Comscore, June 2023
Summary and O utlook
The strength and resilience of Rightmove's business has remained
apparent throughout the first half of 2023. Agents and developers
have continued to use our products to win new mandates and to drive
their businesses forward, and home-movers have continued to trust
our sites to allow them to see the whole of the property market,
helping them to make informed decisions. This has allowed us to
deliver strong results, despite the backdrop of higher mortgage
rates and the increased cost of living.
ARPA growth was strong in the first half: new homes developers
used our Advanced Development Listing and Native Search Adverts
products to market their developments, while our agent customers
used products such as Featured Agent and Sold By Me to
differentiate their brands on our sites to win new vendor mandates.
As a result, first half ARPA growth has given us real momentum to
deliver full year ARPA towards the top end of our previous guidance
range of GBP95-GBP105.
Consumers turned to our Mortgage in Principle journey in
increasing numbers during the first half to help them to understand
their borrowing capacity and mortgage affordability, especially
amidst the prevailing interest rate uncertainty. We expect this to
continue in the second half and therefore for the revenues in this
area of our business, which we earn in partnership with Nationwide,
to increase on 2022's revenues. We expect the remaining Other
business units to continue to perform in line with first-half
performance and to maintain their year on year growth for the full
year.
Disciplined cost management remains a key feature of our
business model. Underlying operating margin for the reporting
period was 74%. We expect costs to be slightly higher in the second
half, as is the usual weighting across the year, and expect a full
year operating margin of 73%, in line with previous guidance.
Our performance in the year to date, the clear value of our
products to customers and consumers alike, and the outlook for the
second half, mean the Board is confident that the Group will
deliver in line with its previous expectations for the full
year.
As we look further out, it is clear there are significant
opportunities available across all our business units. To maximise
our ability to take advantage of these opportunities, we will
modestly increase our investment in the business to drive organic
growth, while maintaining an underlying profit margin of 70 - 72%.
We expect this investment to result in double digit revenue and
profit growth in the medium term and beyond.
We will host an Investor Day at our London offices on Monday 27
November 2023, where we will set out our strategy for medium term
investment to accelerate growth. Further details will be issued
closer to the date.
Johan Svanstrom, Chief Executive Officer, said:
"This has been another period of strong financial and strategic
progress for Rightmove. These results clearly illustrate that
Rightmove continues to be the property portal that consumers turn
to first and engage with the most, and that our customers continue
to use our innovative products and services to support their
businesses in both slower and faster housing markets. Our
performance against the backdrop of a challenging interest rate
environment demonstrates yet again that Rightmove isn't materially
impacted by the property cycle.
"I have been very impressed by what I have seen in my first five
months as Rightmove's CEO and would like to extend my thanks to the
team for delivering so strongly. This is a business which has
performed consistently well over an extended time-period, and I am
excited by the growth opportunities that I see over the long term
in the wider UK property market. From here, our aim is to expand
our platform, our products and our data, for both customers and
consumers, to further digitise the sector, both in our core
business and in newer growth areas. We also want to play an active
role in facilitating the much-needed green transition of the real
estate market, leveraging our vast pool of data and insight to do
so."
The Company will publish a pre-recorded audio results
presentation at 7.00am today, followed by an audio Q&A session
for analysts and investors at 9.30am with Johan Svanstrom, CEO, and
Alison Dolan, CFO.
Enquiries: Investor Relations
Investor.Relations@rightmove.co.uk
Powerscourt rightmove@powerscourt-group.com
Half Year Statement
Making home-moving easier in the UK remains at the heart of
Rightmove's purpose, and we continue to create a more efficient
property marketplace for both home-movers and our customers.
Despite a more uncertain macro backdrop, the housing market
remained reasonably steady in the first six months of 2023, with
0.5m sales transactions taking place (H1 2022: 0.6 million), a
number in line with the stable housing market of 2019 (H1 2019: 0.5
million). Rightmove remained the place home hunters turned to first
to help them with their searches - our market share increased by 1%
point to 86% (1) in the first half (June 22: 85%) and Rightmove
remains the only place to find virtually the whole of the UK
property market in one place.
Both estate agents and new homes developers are relentlessly
focused on winning new business and relied on our sites and our
products to provide them with marketing solutions and
lead-generation opportunities. As a result, revenues increased by
10% on the same period in 2022; average spend per advertiser (ARPA)
(2) grew by 9% to GBP1,411 (June 2022: GBP1,290) and our customer
base remained steady (total membership up 1% to 19,116 (June 2022:
18,934; Dec 2022 19,014)).
Estate agents' investment in our packages and products resulted
in Agency revenue and Agency ARPA (3) both growing by 6%, with ARPA
increasing by GBP79 to GBP1,341 (June 22: GBP1,262). Over 36% of
our agent customers are now on the top package, Optimiser, (June
22: 34%), where products such as Sold By Me and vendor-lead
products, such as Rightmove Discover and Local Valuation Alert,
were the fastest growing products in the first half of the
year.
New homes developers continued to face long lead times to sale
and increased competition from the resale market, but carried on
using our products to help to secure sales at the right price. Our
Advanced Development Listing product saw uptake increase 16% during
the half, while uptake of Native Search Adverts increased 62%. As a
result, New Homes revenues grew by 32% compared to the first half
of 2022 and ARPA (4) grew by a record GBP330/23% to GBP1,776 (June
2022: GBP1,446).
We have increased the functionality of the Lead 2 Keys rental
flow, enabling agents to pre-qualify leads via the Enquiry Manager
efficiency tool - helping with lettings agents' most significant
current issue of managing the sheer numbers of leads per available
property. Later in the year, we will launch a new top package for
estate agents, Optimiser Edge, with two exclusive products: Native
Search Ads and the Premium Best Price Guide. We will also fully
roll out our new Track A Property product in the fourth quarter to
enable consumers to monitor the value of their properties.
Our Other business units also grew, by 11% in aggregate. We are
particularly excited by the growth opportunities in Commercial Real
Estate, Data Services and Mortgages, where we believe the
addressable markets and revenue opportunities will allow us to
accelerate the growth rate in these businesses and drive
incremental revenue and profit over the medium term.
Commercial Real Estate revenue grew by 14%, driven by higher
customer numbers, an ARPA which increased due to higher spend on
new products (multi-channel campaigns and banner adverts), our new
flex office proposition and contract renewals. Data Services
continued to grow its customer base but the impact of this was
largely offset by the effects of the macro uncertainty, which
reduced volumes and transactional revenue from the Surveyor
Comparative Tool (SCT) and Automated Valuation Model (AVM).
Mortgages, still in its infancy as a business unit, grew by c150%
as the number of mortgages in principle completed on our site
increased materially on the comparable period.
In addition to maximising returns for all our stakeholders,
caring for the environment remains high on our strategic agenda.
Our ability to reach the UK's largest property market audience
gives us a unique opportunity to contribute to the reduction of the
UK's carbon footprint, as well as focusing on our own operational
efficiency and emissions reductions plans. We believe that
Rightmove has an important role to play in helping the UK to reach
its net zero targets by 2050, and in helping home hunters to
understand a property's green credentials through providing the
relevant data and tools on our sites. Our plans for green digital
innovation include enhancing property details and search criteria
on our platforms to feature environmental information, including
energy efficiency, and providing proprietary data analysis and
insights into the value of sustainable home improvements.
Today, we are also publishing the second edition of our annual
Greener Homes report which contains a range of findings,
suggestions and insights on the incentives that are needed to help
homeowners and landlords make green improvements. Among other data
points, the report found that if home improvements carry on at the
present rate it would take 43 years for 100% of the houses that are
currently for sale across Great Britain to reach an EPC rating of
A-C, and 31 years for houses that are currently available to rent.
We see ourselves as having a key role to play in helping accelerate
this process.
None of our achievements would be possible without the hard
work, dedication and enthusiasm of our fantastic team of
Rightmovers. Ensuring we have an inclusive and supportive
environment, where everyone has the chance to build a career,
remains central to our culture. During the first six months of the
year, we have enhanced our employee policies, continued with our
Thrive well-being development programmes and rolled out conscious
inclusion training to all employees.
(1) Source: Comscore June 23
(2) Average Revenue per Advertiser (ARPA) is calculated as
revenue from Agency and New Homes advertisers in a given month
divided by the total number of advertisers during the month,
measured as a monthly average over the six-month period.
(3) Agency ARPA is calculated as revenue from Agency advertisers
in a given month divided by the total number of advertisers during
the month, measured as a monthly average over the year
(4) New Homes ARPA is calculated as revenue from New Homes
developers in a given month divided by the total number of
developers during the month, measured as a monthly average over the
year
Financial performance
Revenue
Revenue increased by GBP16.8m/10% year on year to GBP179.5m
(2022: GBP162.7m) as customers invested in our products and
packages to help them to win business in a more uncertain market,
increasing ARPA by 9% during the first half of 2023.
H1 2023 H1 2022 Change vs 2022 GBPm Change vs 2022 %
GBPm GBPm
--------------- -------- -------- -------------------- -----------------
Agency 129.4 122.2 7.2 6%
New Homes 32.6 24.7 7.9 32%
Other 17.5 15.8 1.7 11%
--------------- -------- -------- -------------------- -----------------
Total revenue 179.5 162.7 16.8 10%
--------------- -------- -------- -------------------- -----------------
30 June 2023 31 Dec 2022 30 June 2022 Change vs Dec 2022 Change vs Dec 2022 %
------------------ ------------- ------------ ------------- ------------------- ---------------------
Agency branches 16,093 15,932 16,116 161 1%
New Homes devs 3,023 3,082 2,818 (59) (2%)
Total membership 19,116 19,014 18,934 102 1%
------------------ ------------- ------------ ------------- ------------------- ---------------------
Agency revenue increased by GBP7.2m year on year to GBP129.4m,
as agents continued to purchase our products and packages and we
secured core membership price increases through customers' contract
renewal processes. Agency ARPA (1) increased by GBP79/6% to
GBP1,341 (June 2022: GBP1,262) and Agency customer numbers were up
1% on 31 December 2022, ending the first half of the year at 16,093
branches.
New homes revenue increased by GBP7.9m to GBP32.6m. The
challenging market meant that the new homes' developers had to
continue to invest to secure sales at the right price. This was
reflected in the increased upgrades to the new top package,
incremental purchasing of products and successful contract
renewals. New Homes ARPA (2) increased by GBP330/23% to GBP1,776
per development per month (June 2022: GBP1,446). New Homes
developments listings at 3,023 were broadly flat on December.
Other revenue increased by GBP1.7m to GBP17.5m driven by all
business units. Commercial, Overseas and Mortgages all saw double
digit percentage growth, with Commercial real estate growing by 14%
year on year.
Operating profit
Operating profit increased by GBP8.2m to GBP129.5m (H1 2022:
GBP121.3m), with an operating profit margin of 72% (H1 2022:
75%).
Underlying operating profit (4) i ncreased by GBP10.8m/9% to
GBP133.2m, with an underlying operating profit margin (5) of 74%
(June 2022: 75%).
H1 2023 H1 2022 Change vs 2022 GBPm Change vs 2022 %
GBPm GBPm
--------------------------------- ----------------- -------- -------------------- -----------------
Revenue 179.5 162.7 16.8 10%
Underlying costs (3) (46.3) (40.2) (6.1) 15%
--------------------------------- ----------------- -------- -------------------- -----------------
Underlying operating profit (4) 133.2 122.4 10.8 9%
--------------------------------- ----------------- -------- -------------------- -----------------
Underlying operating margin (5) 74% 75%
Share based incentive costs (3.7) (1.1) (2.6) (236%)
--------------------------------- ----------------- -------- -------------------- -----------------
Operating profit 129.5 121.3 8.2 7%
Operating Margin 72% 75%
--------------------------------- ----------------- -------- -------------------- -----------------
Costs increased by GBP8.7m to GBP50.0m (2022: GBP41.3m), which
included share-based payments charges and related national
insurance charges of GBP3.7m (2022: GBP1.1m). Excluding this,
underlying operating costs (3) increased GBP6.1m/15% to GBP46.3m
(2022: GBP40.2m).
The increase in underlying cost (3) is largely due to higher
salary costs (an increase of GBP4.3m), reflecting ongoing
investment in our product development and sales teams and overall
inflationary pay rises.
Earnings per share (EPS)
Basic EPS increased by 3% to 12.1p (2022: 11.7p), driven by the
increase in profit and the share buyback programme, which reduced
the weighted average number of ordinary shares in issue to 819.8m
(2022: 841.5m)
Underlying EPS (6) (based on underlying profit) increased by 6%
to 12.5p (2022: 11.8p).
The lower growth in EPS is due to the impact of the increased
tax rate from April 2023 (from 19% to 25% giving a standard
effective rate in 2023 of 23.5%). Had the tax rate remained at 19%
the basic EPS would have been 12.9p (up 10%) and underlying EPS
13.2p (up 12%).
Summary consolidated statement of financial position
30 June 31 December 30 June Change from
2023 2022 2022 Dec 2022
GBPm GBPm GBPm GBPm
------------------------------- -------- ------------ --------- ------------
Property, plant and equipment 9.2 10.4 11.5 (1.2)
Intangible assets 22.0 22.1 21.7 (0.1)
Deferred tax asset 2.1 1.5 1.5 0.6
Trade and other receivables 31.8 26.6 22.6 5.2
Contract assets 0.8 0.5 0.4 0.3
Income tax receivable - 0.6 0.9 (0.6)
Cash including money market
deposits 43.2 40.1 43.9 3.1
Trade and other payables (23.9) (20.9) (20.1) (3.0)
Contract liabilities (2.0) (2.3) (2.2) 0.3
Income tax payable (0.7) - - (0.7)
Lease liabilities (8.3) (9.6) (10 . 6) 1.3
Provisions (0.8) (0.8) (0.7) (0.0)
Net assets 73.4 68.2 68.9 5.2
------------------------------- -------- ------------ --------- ------------
Rightmove's balance sheet as at 30 June 2023 shows total equity
of GBP73.4m (31 December 2022: GBP68.2m) and reflects the strong
trading position and returns to shareholders.
Trade receivables of GBP24.7m, included within trade and other
receivables, are up on December 2022 (GBP21.8m) reflecting higher
sales in Q2 2023 than in Q4 2022. Trade and other payables
increased due to timing of accruals at half year. Trade payments
continue to be made in line with contractually agreed terms.
Cash flow and liquidity
Rightmove remained debt-free during the period and cash
generation remained strong, with cash generated from
operating activities of GBP131.7m (30 June 2022: GBP122.2m) and
operating cash conversion in excess of 100% (7) .
The closing Group cash balance at 30 June 2023, including money
market deposits, was GBP43.2m (31 December 2022: GBP40.1m). Cash
remains invested in short-term, easily accessible money market
deposits, including in a green money-market fund.
The Group bought back and cancelled 10.0m ordinary shares during
the period (2022: 9.8m), at a cost of GBP55.0m (excluding expenses)
as part of its ongoing share buyback programme (2022: GBP60.0m).
Dividends totalling GBP42.6m in relation to the final 2022 dividend
were also paid during the year (2022: GBP40.3m).
Shareholder returns
Consistent with the policy of growing dividends broadly in line
with the increase in Underlying EPS, the Directors are recommending
an interim dividend of 3.6p per ordinary share, which will be paid
on 27 October 2023 to all shareholders on the register as at 29
September 2023. We intend to continue the share buyback programme
in the second half of 2023.
Alison Dolan
Chief Financial Officer
(1) Agency ARPA is calculated as revenue from Agency advertisers
in a given month divided by the total number of advertisers during
the month, measured as a monthly average over the year
(2) New Homes ARPA is calculated as revenue from New Homes
developers in a given month divided by the total number of
developers during the month, measured as a monthly average over the
year
(3) Underlying operating costs are defined as administrative
expenses before share-based payments charges (including the related
National Insurance)
(4) Underlying operating profit is defined as operating profit
before share-based payments charges (including the related National
Insurance)
(5) Underlying operating margin is defined as the underlying
operating profit as a percentage of revenue
(6) Underlying EPS is defined as profit for the year before
share-based payments charges (including the related National
Insurance and appropriate tax adjustments), divided by the weighted
average number of ordinary shares in issue for the period
(7) Cash generated from operating activities of GBP131.7m (2022:
GBP122.1m) compared to operating profit as reported in the income
statement of GBP129.5m (2022: GBP121.3m).
Principal Risks and Uncertainties
The Board and Audit Committee regularly review the principal
risks to our business, our position against our risk appetite, and
monitor progress to manage risks within that risk appetite.
Consideration is given to emerging risks and to any changes in
the internal or external environment that could impact our strategy
and how we operate. We regularly update our risks and responses
where required.
The Board and Audit Committee have reviewed the principal risks
and uncertainties faced by the Group. The risks set out in the 2022
Annual Report remain relevant for 2023 and the Board have since
included 'regulatory risks' as a principal risk faced by the
Group.
Risk Overview/Description
Macroeconomic environment The Group derives almost all its revenues from the UK and
is therefore dependent on the macroeconomic
conditions surrounding the UK housing market and consumer
confidence, which impacts property
transaction levels.
----------------------------------------------------------
Competitive environment The Group operates in a competitive marketplace, with
attractive margins and low barriers
to entry, which may result in increased competition from
existing competitors, or new entrants
targeting the Group's primary revenue markets.
----------------------------------------------------------
New or disruptive technologies and changing consumer Rightmove operates in a fast-moving online marketplace.
behaviours Failure to innovate or to adopt new
technologies, or failure to adapt to changing customer
business models and evolving consumer
behaviour may impact the Group's ability to offer the
best products and services to its advertisers
and the best consumer experience.
----------------------------------------------------------
Cyber security and IT systems The Group has a high dependency on technology and
internal IT systems. In today's digital
world there are increased risks associated with external
cyber-attacks which could result
in an inability to operate our platforms. A security
breach, such as corruption or loss of
key data, may disrupt the efficiency and functioning of
the Group's day-to-day operations.
----------------------------------------------------------
Regulatory risks The Group operates in an increasingly complex regulatory
environment. There is a risk that
the Group fails to comply with these requirements or to
respond to changes in regulations
- including GDPR and, for its subsidiaries, the Financial
Conduct Authority's rules and guidance.
This could lead to reputational damage, legal action
and/or financial penalties.
----------------------------------------------------------
Securing and retaining the right talent Our continued success is dependent on our ability to
attract, recruit, retain and motivate
our highly skilled workforce.
----------------------------------------------------------
Further detail on these risks, and the ways in which they are
managed, is available in the Rightmove plc Annual Report 2022.
Next trading update
Our next scheduled reporting date is 1 March 2024, when we will
announce our results for the year ending 2023.
Statement of Directors' responsibilities
The Directors are responsible for preparing the interim report
in accordance with applicable law and regulations. The Directors
confirm that the condensed consolidated interim financial
information has been prepared in accordance with UK-adopted
International Accounting Standard 34, 'Interim Financial Reporting'
and the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom's Financial Conduct Authority.
The interim management report includes a fair review of the
information required by the Disclosure and Transparency Rules
paragraphs 4.2.7R and 4.2.8R, namely:
-- an indication of important events that have occurred during
the six months ended 30 June 2023 and their impact on the condensed
set of financial information, and a description of the principal
risks and uncertainties for the remaining six months of the
financial year; and
-- material related-party transactions during the six months
ended 30 June 2023 and any material changes in the related-party
transactions described in the Annual Report and Accounts 2022.
The Directors of Rightmove plc are listed in the Annual Report
and Accounts 2022. A list of current Directors is maintained on the
Rightmove plc website: https://plc.rightmove.co.uk .
The Directors are responsible for the maintenance and integrity
of, amongst other things, the financial and corporate governance
information as provided on the Rightmove website
(https://plc.rightmove.co.uk). Legislation in the United Kingdom
governing the preparation and dissemination of financial
information may differ from legislation in other jurisdictions.
The interim report was approved by the Board of Directors and
authorised for issue on 27 July 2023 and signed on its behalf
by:
Johan Svanstrom Alison Dolan
Chief Executive Officer Chief Financial Officer
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE
INCOME
for the six months ended 30 June 2023
Note Six months ended Six months ended Year ended
30 June 2023 30 June 2022 31 December 2022
GBP000 GBP000 GBP000
-------------------------------------------------- ------ ------------------ ------------------ ------------------
Revenue 5 179,454 162,651 332,622
-------------------------------------------------- ------ ------------------ ------------------ ------------------
Administrative expenses (49,944) (41,312) (91,279)
Operating profit 129,510 121,339 241,343
-------------------------------------------------- ------ ------------------ ------------------ ------------------
Operating profit before share-based incentive 133,171 122,435 245,412
charge
Share- based incentive charge 6 (3,661) (1,096) (4,069)
Financial income 1,008 100 381
Financial expenses (234) (226) (442)
Net financial income/(expense) 774 (126) (61)
-------------------------------------------------- ------ ------------------ ------------------ ------------------
Profit before tax 130,284 121,213 241,282
Income tax expense 9 (30,840) (22,842) (45,601)
Profit for the period being total comprehensive
income 99,444 98,371 195,681
-------------------------------------------------- ------ ------------------ ------------------ ------------------
Attributable to:
Equity holders of the Parent 99,444 98,371 195,681
-------------------------------------------------- ------ ------------------ ------------------ ------------------
Earnings per share (pence)
Basic 7 12.1 11.7 23.4
Diluted 7 12.1 11.7 23.4
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL
POSITION
Company number 06426485
at 30 June 2023
Note 30 June 2023 30 June 2022 31 December 2022
GBP000 GBP000 GBP000
-------------------------------------------------------------- ----- ------------- ------------- -----------------
Non-current assets
Property, plant and equipment 9,226 11,498 10,429
Intangible assets 22,008 21,739 22,074
Deferred tax assets 9 2,059 1,512 1,460
-------------------------------------------------------------- ----- ------------- ------------- -----------------
Total non-current assets 33,293 34,749 33,963
-------------------------------------------------------------- ----- ------------- ------------- -----------------
Current assets
Trade and other receivables 10 31,798 22,588 26,614
Contract assets 5 838 371 454
Income tax receivable - 866 593
Money market deposits 5,131 5,014 5,047
Cash and cash equivalents 38,091 38,923 35,089
-------------------------------------------------------------- ----- ------------- ------------- -----------------
Total current assets 75,858 67,762 67,797
-------------------------------------------------------------- ----- ------------- ------------- -----------------
Total assets 109,151 102,511 101,760
-------------------------------------------------------------- ----- ------------- ------------- -----------------
Current liabilities
Trade and other payables 11 (23,871) (20,121) (20,874)
Lease liabilities (2,274) (2,319) (2,327)
Contract liabilities 5 (1,958) (2,164) (2,325)
Income tax payable (668) - -
Provisions - (64) -
-------------------------------------------------------------- ----- ------------- ------------- -----------------
Total current liabilities (28,771) (24,668) (25,526)
Non-current liabilities
Lease liabilities (6,120) (8,305) (7,242)
Provisions (835) (607) (829)
-------------------------------------------------------------- ----- ------------- ------------- -----------------
Total non-current liabilities (6,955) (8,912) (8,071)
-------------------------------------------------------------- ----- ------------- ------------- -----------------
Total liabilities (35,726) (33,580) (33,597)
-------------------------------------------------------------- ----- ------------- ------------- -----------------
Net assets 73,425 68,931 68,163
-------------------------------------------------------------- ----- ------------- ------------- -----------------
Equity
Share capital 828 850 838
Other reserves 604 581 594
Retained earnings (net of own shares held) 71,993 67,500 66,731
-------------------------------------------------------------- ----- ------------- ------------- -----------------
Total equity attributable to the equity holders of the Parent 73,425 68,931 68,163
-------------------------------------------------------------- ----- ------------- ------------- -----------------
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
for the six months ended 30 June 2023
Note 6 months ended 6 months ended Year ended
30 June 2023 30 June 2022 31 December 2022
GBP000 GBP000 GBP000
-------------------------------------------------- ----- --------------- --------------- -----------------------
Cash flows from operating activities
Profit for the period 99,444 98,371 195,681
Adjustments for:
Depreciation charges 1,759 1,759 3,504
Amortisation charges 770 467 1,082
Financial income (1,008) (100) (381)
Financial expenses 234 226 442
Share-based payments 6 3,315 1,358 4,179
Income tax expense 9 30,840 22,842 45,601
-------------------------------------------------- ----- --------------- --------------- -----------------------
Operating cash flow before changes in working
capital 135,354 124,923 250,108
(Increase)/decrease in trade and other receivables 10 (5,000) 556 (3,456)
Increase/(decrease) in trade and other payables 11 2,064 (2,636) (1,883)
Increase in provisions 6 25 39
Increase in contract assets 5 (384) (251) (334)
Decrease in contract liabilities 5 (367) (469) (308)
Cash generated from operating activities 131,673 122,148 244,166
Financial expenses paid (235) (232) (451)
Income taxes paid (30,179) (22,752) (45,622)
-------------------------------------------------- ----- --------------- --------------- -----------------------
Net cash from operating activities 101,259 99,164 198,093
-------------------------------------------------- ----- --------------- --------------- -----------------------
Cash flows used in investing activities
Interest received on cash and cash equivalents 816 57 305
Increase in money market deposits (84) - (44)
Acquisition of property, plant and equipment (456) (463) (835)
Acquisition of intangible assets (704) (1,079) (2,015)
Net cash used in investing activities (428) (1,485) (2,589)
-------------------------------------------------- ----- --------------- --------------- -----------------------
Cash flows used in financing activities
Net dividends paid 8 (42,580) (40,306) (67,679)
Purchase of own shares for cancellation 12 (54,095) (59,981) (129,981)
Purchase of own shares for share incentive plans - - (2,898)
Share-related expenses (360) (421) (933)
Payment of lease liabilities (1,275) (1,170) (2,391)
Proceeds on exercise of share-based incentives 481 137 482
Net cash used in financing activities (97,829) (101,741) (203,400)
-------------------------------------------------- ----- --------------- --------------- -----------------------
Net increase/(decrease) in cash and cash
equivalents 3,002 (4,062) (7,896)
Cash and cash equivalents at 1 January 35,089 42,985 42,985
-------------------------------------------------- ----- --------------- --------------- -----------------------
Cash and cash equivalents at period end 38,091 38,923 35,089
-------------------------------------------------- ----- --------------- --------------- -----------------------
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN
SHAREHOLDERS' EQUITY
for the six months ended 30 June 2023
Own shares held Reverse acquisition
Share GBP000 Other reserve Retained Total
capital reserves GBP000 earnings equity
GBP000 GBP000 GBP000 GBP000
--------------------- --------- ---------------- ---------- -------------------- ---------- ----------
At 1 January 2022 860 (11,588) 434 138 80,688 70,532
Total comprehensive
income
Profit for the
period - - - - 98,371 98,371
Transactions with -
owners recorded
directly in equity
Share-based payments - - - - 1,358 1,358
Tax debit in respect
of share-based
incentives
recognised directly
in equity - - - - (759) (759)
Exercise of
share-based
incentives - 167 - - (30) 137
Cancellation of own
shares (10) - 10 - (59,981) (59,981)
Net Dividends paid - - - - (40,306) (40,306)
Cost of share
purchases - - - - (421) (421)
--------------------- --------- ---------------- ---------- -------------------- ---------- ----------
At 30 June 2022 850 (11,421) 444 138 78,920 68,931
--------------------- --------- ---------------- ---------- -------------------- ---------- ----------
At 1 January 2022 860 (11,588) 434 138 80,688 70,532
Total comprehensive
income
Profit for the year - - - - 195,681 195,681
Transactions with
owners recorded
directly in equity
Share-based payments - - - - 4,179 4,179
Tax credit in
respect of
share-based
incentives
recognised directly
in equity - - - - (1,220) (1,220)
Net dividends - - - - (67,679) (67,679)
Exercise of
share-based
incentives - 588 - - (106) 482
Purchase of shares
for share incentive
plan - (2,898) - - - (2,898)
Cancellation of own
shares (22) - 22 - (129,981) (129,981)
Cost of share
purchases - - - - (933) (933)
---------------------
At 31 December 2022 838 (13,898) 456 138 80,629 68,163
--------------------- --------- ---------------- ---------- -------------------- ---------- ----------
At 1 January 2023 838 (13,898) 456 138 80,629 68,163
Total comprehensive
income
Profit for the
period - - - - 99,444 99,444
Transactions with
owners recorded
directly in equity
Share-based payments - - - - 3,315 3,315
Tax debit in respect
of share-based
incentives
recognised directly
in equity - - - - (2) (2)
Exercise of
share-based
incentives - 517 - - (36) 481
Cancellation of own
shares (10) - 10 - (55,000) (55,000)
Net dividends paid - - - - (42,588) (42,588)
Cost of share
purchases - - - - (388) (388)
--------------------- --------- ---------------- ---------- -------------------- ---------- ----------
At 30 June 2023 828 (13,381) 466 138 85,374 73,425
--------------------- --------- ---------------- ---------- -------------------- ---------- ----------
NOTES
1 General information
Rightmove plc (the Company) is a public limited Company
registered in England (Company no. 6426485) domiciled in the United
Kingdom (UK). The condensed consolidated interim financial
statements ('interim financial statements') as at and for the six
months ended 30 June 2023 comprise the Company and its interest in
its subsidiaries (together referred to as 'the Group'). The
principal business of the Group is the operation of the Rightmove
platforms, which have the largest audience of any UK property
portal (as measured by time on site).
The consolidated financial statements of the Group as at and for
the year ended 31 December 2022 are available upon request to the
Company Secretary from the Company's registered office at 2
Caldecotte Lake Business Park, Caldecotte Lake Drive, Caldecotte,
Milton Keynes, MK7 8LE or are available on the corporate website at
plc.rightmove.co.uk.
Basis of preparation
These condensed interim financial statements, for the six months
ended 30 June 2023, have been prepared in accordance with IAS 34
Interim Financial Reporting, under UK-adopted international
accounting standards, and the Disclosure and Transparency Rules of
the United Kingdom's Financial Conduct Authority. They should be
read in conjunction with the Group's last annual consolidated
financial statements as at and for the year ended 31 December 2022
('last annual financial statements'). The interim financial
statements do not include all the information required for a
complete set of financial statements prepared in accordance with
UK-adopted international accounting standards. However, selected
explanatory notes are included to explain events and transactions
that are significant to an understanding of the changes in the
Group's financial position and performance since the last annual
financial statements. New standards and amendments effective from 1
January 2023 have not had a material impact on the interim
consolidated financial statements of the Group.
The interim financial statements were approved by the Board of
Directors on 27 July 2023 and the results for the current and
comparative period are unaudited. The auditor, Ernst &Young
LLP, has carried out a review of the interim financial statements
and its report is set out at the end of this document.
The interim financial information does not constitute statutory
accounts within the meaning of sections 434 and 435 of the
Companies Act 2006. Statutory accounts for the year ended 31
December 2022 were approved by the Board of Directors on 2 March
2023 and have been delivered to the Registrar of Companies. The
report of the auditors was unqualified.
Alternative performance measures
In the analysis of the Group's financial performance, certain
information disclosed in the financial statements may be prepared
on a non-GAAP basis or has been derived from amounts calculated in
accordance with IFRS but are not themselves an expressly permitted
GAAP measure. These measures are reported in line with the way in
which financial information is analysed by management and designed
to increase comparability of the Group's year-on-year financial
position, based on its operational activity. The key alternative
performance measures presented by the Group are:
-- Underlying profit: which is defined as profit for the year
before share-based payments charges (including the related National
Insurance and appropriate tax adjustments);
-- Underlying earnings per share (EPS): which is defined as
underlying profit, divided by the weighted average number of
ordinary shares outstanding in the period;
-- Underlying operating profit: which is defined as operating
profit before share-based payments charges (including the related
National Insurance);
-- Underlying costs: which is defined as administrative expenses
before share-based payments charges (including the related National
Insurance); and
-- Underlying operating margin: which is defined as the
underlying operating profit as a percentage of revenue.
The Directors believe that these alternative performance
measures provide a more appropriate measure of the Group's business
performance, as the share-based payments charge is a non-cash
charge that is not entirely driven by the principal operational
activity of the Group. The Directors therefore consider underlying
operating profit to be the most appropriate indicator of the
performance of the business and year-on-year trends.
A reconciliation of the underlying performance measures to the
GAAP measures are shown below:
Underlying profit
A reconciliation of the profit for the year to the underlying
profit is presented below:
6 months ended 6 months ended
30 June 2023 30 June 2022
GBP000 GBP000
------------------------------- --------------- ---------------
Profit for the year 99,444 98,371
Share-based incentives charge 3,315 1,358
NI on share-based incentives 346 (262)
Impact on tax charge (684) (230)
------------------------------- --------------- ---------------
Underlying profit 102,421 99,237
------------------------------- --------------- ---------------
Underlying profit is used instead of profit to calculate the
underlying earnings per share, which is underlying profit divided
by the weighted average number of ordinary shares in issue for the
period, whereas earnings per share is profit divided by weighted
average number of ordinary shares in issue for the period (note
7).
Underlying operating profit
A reconciliation of the operating profit to the underlying
operating profit is presented below:
6 months ended 6 months ended
30 June 2023 30 June 2022
GBP000 GBP000
------------------------------- --------------- ---------------
Operating profit 129,510 121,339
Share-based incentives charge 3,315 1,358
NI on share-based incentives 346 (262)
------------------------------- --------------- ---------------
Underlying operating profit 133,171 122,435
------------------------------- --------------- ---------------
Underlying operating profit is used to calculate the underlying
operating margin, which is underlying operating profit as a
proportion of revenue, whereas the operating margin calculated as
operating profit as a proportion of revenue.
Underlying costs
A reconciliation of the administrative expenses to the
underlying costs is presented below:
6 months ended 6 months ended
30 June 2023 30 June 2022
GBP000 GBP000
------------------------------- --------------- ---------------
Administrative expenses 49,944 41,312
Share-based incentives charge (3,315) (1,358)
NI on share-based incentives (346) 262
------------------------------- --------------- ---------------
Underlying costs 46,283 40,216
------------------------------- --------------- ---------------
Going concern
The Directors have performed a detailed going concern review and
tested the Group's liquidity in a range of scenarios, as set out
below.
Throughout the period, the Group was debt-free, remained
strongly cash generative and had a cash balance of GBP38.1m and
money market deposits of GBP5.1m at 30 June 2023 (31 December 2022:
cash balance GBP35.1m and money market deposits GBP5.0m).
The Group bought back shares to the value of GBP55.0m by 30 June
2023 (period ended 30 June 2022: GBP60.0m) and paid the 2022 final
dividend of GBP42.6m in May 2023 (period ended 30 June 2022:
GBP40.3m).
In reaching its assessment on going concern, the Directors have
used the most recent Board approved forecasts for the Group for the
period to 31 December 2024 ("the going concern period"), which have
been modelled to reflect the expected impact of economic conditions
on trading, as set out in the half year statement. In stress
testing the future cash flows of the Group, the Directors modelled
a range of scenarios which considered the effect on the Group of
reductions of varying severity in the number of housing
transactions for the period to 31 December 2024 and modelled the
likely timing of cashflows from our customers during the going
concern period. These included severe, but plausible downside
scenarios. The model considered the impact of changes in the key
drivers of the Group's revenues, including customer numbers and
average revenue per advertiser (ARPA). In all the scenarios tested,
the Group remained cash positive and debt-free.
The Directors also reviewed the results of a reverse stress
test, which was undertaken to provide an illustration of the
scenario required to exhaust cash balances. The possibility of this
scenario arising was assessed to be highly remote and could arise
only in extreme circumstances, much more severe than the scenarios
modelled above.
The Directors are confident that the Group will remain cash
positive and will have sufficient funds to continue to meet its
liabilities as they fall due for at least the period to 31 December
2024 and have therefore prepared the financial statements on a
going concern basis.
2 Material accounting policies
The accounting policies applied in these interim financial
statements are the same as those applied by the Group's
consolidated financial statements as at and for the year ended 31
December 2022.
3 Judgements and estimates
In preparing these interim financial statements in accordance
with UK Adopted International accounting standards, management is
required to make judgements and estimates that affect the
application of accounting policies and the reported amounts of
assets and liabilities, income and expenses. Management has
determined that there are no significant areas of estimation
uncertainty or critical judgements in applying accounting policies
that have a significant effect on the amounts recognised in the
consolidated financial statements, as described in the last annual
financial statements.
4 Operating segments
Rightmove has one reportable segment, being the consolidated
result. Whilst the Chief Operating Decision Maker separately
monitors revenue for different business units they do not
separately monitor business unit profit, operating costs, financial
income, financial expenses and income taxes for these areas of the
business, instead monitoring this on a consolidated level.
The Group presents internal financial information that measures
business performance to the Chief Executive Officer, who is the
Group's Chief Operating Decision Maker. This information is used
for the purpose of making decisions about resources to be allocated
and of assessing performance. This financial information includes
information on revenue performance and specific monitoring of trade
receivable levels for each of the following business units:
-- 'Agency' which provides resale and lettings property
advertising services on Rightmove's platforms;
-- 'New Homes' which provides property advertising services to
new home developers and housing associations on Rightmove's
platforms; and
-- 'Other' which comprises Overseas and Commercial property
advertising services; non-property advertising services of
Third-Party advertising and Data Services; and the mortgages
business.
All revenues in all periods are derived from third parties. The
disaggregated revenue is included within Note 5.
5 Revenue
The Group's operations and main revenue streams are those
described in the last annual financial statements. The Group's
revenue is derived from contracts with customers.
Disaggregation of revenue
In the following table, revenue is disaggregated by property and
non-property advertising revenue. The table also includes a
reconciliation of the disaggregated revenue with the Group's
business units (see Note 4).
Six months Estate Agency New Homes Other Total
ended
30 June 2023
GBP000 GBP000 GBP000 GBP000
Revenue stream
Property products 129,374 32,634 9,184 171,192
Non-property
products - - 8,262 8,262
------------------- -------------- ---------- -------- ---------
129,374 32,634 17,446 179, 454
------------------- -------------- ---------- -------- ---------
Six months ended Estate Agency New Homes Other Total
30 June 2022 GBP000 GBP000 GBP000 GBP000
------------------- -------------- ---------- -------- ---------
Revenue stream
Property products 122,110 24,737 8,163 155,010
Non-property
products - - 7,641 7,641
------------------- -------------- ---------- -------- ---------
122,110 24,737 15,804 162,651
------------------- -------------- ---------- -------- ---------
Year ended Estate Agency New Homes Other Total
31 December GBP000 GBP000 GBP000 GBP000
2022
------------------- -------------- ---------- -------- ---------
Revenue stream
Property products 247,310 52,588 17,254 317,152
Non-property
products - - 15,470 15,470
------------------- -------------- ---------- -------- ---------
247,310 52,588 32,724 332,622
------------------- -------------- ---------- -------- ---------
Contract balances
The following table provides information about contract assets
and contract liabilities from contracts with customers.
Contract Assets Contract
GBP000 Liabilities
GBP000
----------------------------------- --- ---------------- -------------
Contract balance as at 31
December 2022 454 (2,325)
Performance obligations satisfied (454) -
in previous periods
Performance obligations satisfied
in current periods - 2,231
Accrued/(deferred) during
the period 838 (1,864)
------------------------------------ -------------------- -------------
Contract balances as at 30
June 2023 838 (1,958)
------------------------------------ -------------------- -------------
The contract assets primarily relate to the Group's rights to
consideration for services provided but not invoiced at the
reporting date. The contract assets are transferred to trade
receivables when invoiced and the rights have become
unconditional.
The contract liabilities primarily relate to the advance
consideration received from Estate Agency, Overseas and Commercial
customers, for which revenue is recognised as or when the services
are provided.
6 Share-based payments
The Group operates share-based incentive schemes for executive
Directors and employees: a Savings Related Share Option Scheme
(Sharesave Plan) and Share Incentive Plan (SIP) for all employees;
a performance share plan (PSP) for Directors; and a Deferred Share
Bonus Plan (DSP) for the Directors and selected senior management.
There is also a restricted share plan (RSP) in operation which is
awarded on an ad-hoc basis, based on service conditions only, for
selected senior individuals.
Two new share-based incentive awards were made during the period
to 30 June 2023:
-- 325,798 PSP awards were granted on 10 March 2023 subject to
Earnings Per Share (EPS) and Total Shareholders Return (TSR)
performance. Performance will be measured over three financial
years (1 January 2023 - 31 December 2025). The vesting on 10 March
2026 of 50% of the 2023 PSP awards will be dependent on the
relative TSR performance condition measured over the three-year
performance period, with the remaining 50% dependent on the
satisfaction of the EPS growth target. The PSP awards have been
valued using the Monte Carlo model for the TSR element and the
Black Scholes model for the EPS element.
-- 542,350 DSP nil cost shares were awarded to executives and
senior management on 10 March 2023 following the achievement of the
2022 internal performance targets, with the right to exercise the
shares deferred until March 2025 (assuming service conditions are
met). The DSP awards were valued using the Black Scholes model.
The total charge in relation to share-based payments for the six
months ended 30 June 2023 was GBP3,661,000 (2022: GBP1,096,000):
the charge in relation to the share-based payments relating to all
share-based incentive plans was GBP3,315,000 (2022: GBP1,358,000);
and the related National insurance charge for the six months ended
30 June 2023 relating to all awards was GBP346,000 (2022:
GBP262,000 credit).
7 Earnings per share (EPS)
Pence per share
GBP000 Basic Diluted
Six months ended 30 June 2023
Profit after tax 99,444 12.1 12.1
Underlying profit after tax 102,421 12.5 12.5
Six months ended 30 June 2022
Profit after tax 98,371 11.7 11.7
Underlying profit after tax 99,237 11.8 11.8
Year ended 31 December 2022
Profit after tax 195,681 23.4 23.4
Underlying profit after tax 198,751 23.8 23.7
-------------------------------- -------- ------- ---------
Weighted average number of ordinary shares (basic)
6 months ended 6 months ended Year ended
30 June 2023 30 June 2022 31 December 2022
Number of shares Number of shares Number of shares
---------------------------------------------------------- ------------------ ------------------ ------------------
Issued ordinary shares at 1 January less ordinary shares
held by the EBT and SIP Trust 835,094,530 857,732,339 857,732,814
Less own shares held in treasury at the beginning of the
year (12,185,222) (12,480,472) (12,480,472)
Weighted effect of own shares purchased for cancellation (3,388,739) (3,811,957) (9,977,584)
Weighted effect of share-based incentives exercised 267,142 53,412 144,448
Weighted effect of shares purchased by the EBT - - (99,344)
---------------------------------------------------------- ------------------ ------------------ ------------------
819,787,711 841,493,322 835,319,862
---------------------------------------------------------- ------------------ ------------------ ------------------
Weighted average number of ordinary shares (diluted)
For diluted EPS, the weighted average number of ordinary shares
in issue is adjusted to assume conversion of all potentially
dilutive shares. The Group's potential dilutive instruments are in
respect of share-based incentives granted to employees, which will
be settled by ordinary shares held by the Employees' Share Trust
(EBT), SIP Trust and shares held in treasury.
6 months ended 6 months ended Year ended
30 June 2023 30 June 2022 31 December 2022
Number of shares Number of shares Number of shares
------------------------------------------------------- ------------------ ------------------ ------------------
Weighted average number of ordinary shares (basic) 819,787,711 841,493,322 835,319,862
Dilutive impact of share-based incentives outstanding 2,005,735 1,641,293 2,185,506
821,793,446 843,134,615 837,505,368
------------------------------------------------------- ------------------ ------------------ ------------------
8 Dividends
Dividends declared and paid by the Company were as follows:
6 months ended 30 June 2023 6 months ended Year ended 31 December 2022
30 June 2022
Pence per share Pence per share Pence per share
GBP000 GBP000 GBP000
------------------------ ------------------ ---------- ----------------- --------- ------------------- ---------
2021 final dividend
paid - - 4.8 40,312 4.8 40,312
2022 interim dividend
paid - - - - 3.3 27,393
2022 final dividend
paid 5.2 42,588 - - - -
5.2 42,588 4.8 40,312 8.1 67,705
------------------------ ------------------ ---------- ----------------- --------- ------------------- ---------
Unclaimed dividends returned (8) (6) (26)
-------------------------------------------- ---------- ----------------- --------- ------------------- ---------
Net dividends included in the
statement of cash flows 42,580 40,306 67,679
-------------------------------------------- ---------- ----------------- --------- ------------------- ---------
After the period end the Board approved an interim dividend of
3.6p (2022: 3.3p) per qualifying ordinary share being GBP29,300,000
(2022: GBP27,393,000).
The 2022 final dividend of GBP42,588,000 (5.2p per qualifying
share) was paid on 26 May 2023. It was GBP300,000 lower than that
reported in the 2022 annual accounts due to a decrease in the
ordinary shares entitled to a dividend between 2 March 2023 and the
interim dividend record date of 28 April 2023.
The terms of the EBT provide that dividends payable on the
ordinary shares held by the EBT are waived.
9 Taxation
The income tax expense of GBP30,840,000 (2022: GBP22,842,000) is
recognised based on management's best estimate of the consolidated
effective tax rate expected for the full financial year, applied to
the profit before tax for the six-month period. The Group's
consolidated effective tax rate for the six months ended 30 June
2023 was 23.7% (2022: 18.8%). The difference between the blended
standard rate of 23.5% and the Group's effective rate of 23.7% as
at 30 June 2023 is attributable to the impact of the deferred tax
in relation to the share based incentives.
The net deferred tax asset of GBP2,059,000 (30 June 2022:
GBP1,512,000) comprises a deferred tax asset of GBP2,791,000 (30
June 2022: GBP2,478,000) and a deferred tax liability of GBP732,000
(30 June 2022: GBP966,000).
The deferred tax asset is in respect of equity settled
share-based incentives and depreciation in excess of capital
allowances. The deferred tax asset arising on equity settled
share-based incentives was recognised in profit or loss to the
extent that the related equity settled share-based payments charge
was recognised in the statement of comprehensive income. The
deferred tax liability is in respect of the intangible asset
recognised on acquisition of Rightmove Landlord and Tenant Services
Limited.
The deferred tax assets and liabilities as at 30 June 2023 have
been calculated at a rate of between 23.5% and 25% depending on the
expected rate that will prevail at the date upon which the net
deferred tax asset will reverse in the future, based on
substantively enacted UK tax rates.
10 Trade and other receivables
30 June 2023 30 June 2022 31 December 2022
GBP000 GBP000 GBP000
--------------------------------------------------- ------------- ------------- -----------------
Trade receivables 24,721 18,430 21,754
Less provision for impairment of trade receivables (966) (724) (845)
------------- ------------- -----------------
Net trade receivables 23,755 17,706 20,909
Prepayments 7,640 4,755 5,243
Interest receivable 232 33 48
Other debtors 171 94 414
--------------------------------------------------- ------------- -------------
31,798 22,588 26,614
--------------------------------------------------- ------------- ------------- -----------------
11 Trade and other payables
30 June 2023 30 June 2022 31 December 2022
GBP000 GBP000 GBP000
----------------------------------- -------------- -------------- ------------------
Trade payables 2,429 2,138 1,155
Accruals 7,697 5,759 6,147
Other creditors 896 875 1,284
Other taxation and social security 12,849 11,349 12,288
23,871 20,121 20,874
----------------------------------- -------------- -------------- ------------------
12 Reconciliation of movement in capital and reserves
Own shares purchased for cancellation
The total number of shares bought back in the six months to 30
June 2023 was 10,031,573 (2022: 9,783,381) representing 1.2% (2022:
1.2%) of the ordinary shares in issue (excluding shares held in
treasury). All the shares bought back in the period were cancelled.
The shares were acquired on the open market at a total
consideration (excluding costs) of GBP55,000,000 (2022:
GBP59,981,000). The maximum and minimum prices paid were GBP5.89
(2022: GBP6.89) and GBP4.90 (2022: GBP5.19) per share
respectively.
Own shares held - GBP000 Total
EBT shares reserve SIP shares reserve Treasury shares own shares held
GBP000 GBP000 GBP000 GBP000
--------------------------------- --------------------- --------------------- ------------------ -----------------
Own shares held as at 1 January
2022 (1,552) (4,107) (5,929) (11,588)
Share-based incentives exercised 17 109 6 132
SIP releases in the period - 35 - 35
Own shares held as at 30 June
2022 (1,535) (3,963) (5,923) (11,421)
--------------------------------- --------------------- --------------------- ------------------ -----------------
Own shares held as at 1 January
2022 (1,552) (4,107) (5,929) (11,588)
Shares purchased for SIP (2,216) (682) - (2,898)
Shares transferred to SIP 555 (555) - -
Share-based incentives exercised 56 289 140 485
SIP releases in the year - 103 - 103
--------------------------------- --------------------- --------------------- ------------------ -----------------
Own shares held as at 31
December 2022 (3,157) (4,952) (5,789) (13,898)
--------------------------------- --------------------- --------------------- ------------------ -----------------
Own shares held as at 1 January
2023 (3,157) (4,952) (5,789) (13,898)
Share-based incentives exercised 89 272 84 445
SIP releases in the period - 72 - 72
Own shares held as at 30 June
2023 (3,068) (4,608) (5,705) (13,381)
--------------------------------- --------------------- --------------------- ------------------ -----------------
Own shares held - number of shares
Total
EBT shares reserve SIP shares reserve Treasury shares own
shares held
------------------------------------- --------------------- --------------------- ------------------ -------------
Own shares held as at 1 January 2022 1,158,418 787,000 12,480,472 14,425,890
Share-based incentives exercised (34,790) (27,935) (13,298) (76,023)
SIP releases in the period - (6,625) - (6,625)
------------------------------------- --------------------- --------------------- ------------------ -------------
Own shares held as at 30 June 2022 1,123,628 752,440 12,467,174 14,343,242
------------------------------------- --------------------- --------------------- ------------------ -------------
Own shares held as at 1 January 2022 1,158,418 787,000 12,480,472 14,425,890
Shares purchased for SIP 432,254 128,774 - 561,028
Shares transferred to SIP (99,476) 99,476 - -
Share-based incentives exercised (115,233) (63,893) (295,250) (474,376)
SIP releases in the year - (20,765) - (20,765)
------------------------------------- --------------------- --------------------- ------------------ -------------
Shares held as at 31 December 2022 1,375,963 930,592 12,185,222 14,491,777
------------------------------------- --------------------- --------------------- ------------------ -------------
Own shares held as at 1 January 2023 1,375,963 930,592 12,185,222 14,491,777
Share-based incentives exercised (184,563) (52,980) (176,955) (414,498)
SIP releases in the period - (12,200) - (12,200)
Shares held as at 30 June 2023 1,191,400 865,412 12,008,267 14,065,079
------------------------------------- --------------------- --------------------- ------------------ -------------
(a) EBT shares reserve
This reserve represents the cost of own shares acquired by the
EBT less any exercises of share-based incentives. At 30 June 2023,
the EBT held 1,191,400 (June 2022: 1,123,628) ordinary shares in
the Company, representing 0.1% (June 2022: 0.1%) of the ordinary
shares in issue (excluding shares held in treasury). The market
value of the shares held by the EBT at 30 June 2023 was
GBP6,233,405 (June 2022: GBP6,386,702).
(b) SIP shares reserve
In November 2014, the Group established the Rightmove Share
Incentive Plan Trust (SIP). This reserve represents the cost of
acquiring shares less any exercises or releases of SIP awards. At
30 June 2023 the SIP Trust held 865,412 (June 2022: 752,440)
ordinary shares in the Company of 0.1 pence each, representing 0.1%
(June 2022: 0.09%) of the ordinary shares in issue (excluding
shares held in treasury). The market value of the shares held in
the SIP Trust at the period end was GBP4,525,350 (June 2022:
GBP4,276,869).
(c) Treasury shares
This represents the cost of acquiring shares held in treasury
less any exercises of share-based incentives. These shares were
bought back in 2008 at an average price of 47.60 pence and may be
used to satisfy certain share-based incentive awards.
Other reserves
This represents the Capital Redemption Reserve in respect of own
shares bought back and cancelled. The movement in other reserves of
GBP10,000 (June 2022: GBP10,000) comprises the nominal value of
ordinary shares cancelled during the period.
Retained earnings
The loss on exercise of share-based incentives is the difference
between the value that the shares held by the EBT, SIP and treasury
shares were originally acquired for and the exercise price at which
share-based incentives were exercised during the period.
13 Related Party Transactions
Rightmove continues to undertake related party transactions with
both Directors and subsidiary companies of the group. The
inter-group related parties and the nature of these transactions
remains unchanged from the Annual Report.
There have been no other related party transactions in the
period to disclose.
ADVISERS AND SHAREHOLDER INFORMATION
Contacts Registered office Corporate advisers
Chief Executive Johan Svanstrom Rightmove plc Financial adviser
Officer:
Chief Financial Alison Dolan 2 Caldecotte Lake UBS Investment
Officer: Carolyn Pollard Business Park Bank
Company Secretary: www.rightmove.co.uk Caldecotte Lake
Website: Drive Joint brokers
Caldecotte UBS AG London Branch
Milton Keynes Numis Securities
Limited
MK7 8LE
Auditor
Ernst & Young LLP
Registered in
England no. 6426485 Bankers
Financial calendar Barclays Bank Plc
2023
Interim dividend 29 September Santander UK plc
record date 2023
Interim dividend 27 October 2023 HSBC UK Bank plc
payment
Full year results 1 March 2024 Lloyds Banking
Group plc
Solicitors
EMW LLP
Slaughter and May
Herbert Smith Freehills
LLP
Registrar
Link Asset Services*
*Shareholder enquiries
The Company's registrar is Link Group. They will be pleased to
deal with any questions regarding your shareholding or dividends.
Please notify them of your change of address or other personal
information. Their contact details are below:
Shareholder helpline: 0371 664 0300 calls are charged at the
standard geographic rate and will vary by provider. Calls outside
the United Kingdom will be charged at the applicable international
rate. Lines are open between 09:00 - 17:30, Monday to Friday
excluding public holidays in England and Wales.
Email: enquiries@linkgroup.co.uk
Signal Shares shareholder portal: www.signalshares.com
Address: Link Group
10th Floor Central Square
29 Wellington Street
Leeds LS1 4DL
Shareholders can register online to view your holdings using the
shareholder portal, a service offered by Link Group at
www.signalshares.com . The shareholder portal is an online service
enabling you to quickly and easily access and maintain your
shareholding online - reducing the need for paperwork and providing
24 hour access for your convenience. You may:
- View your holding balance and get an indicative valuation
- View the dividend payments you have received
- Cast your proxy vote on the AGM resolutions online
- Update your address
- Register and change bank mandate instructions so that
dividends can be paid directly to your bank account
- Elect to receive shareholder communications electronically
- Access a wide range of shareholder information and download
shareholder forms
INDEPENDENT REVIEW REPORT TO RIGHTMOVE PLC
Conclusion
We have been engaged by the Company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 June 2023 which comprises the condensed
consolidated interim statement of comprehensive income, condensed
consolidated interim statement of financial position, condensed
consolidated interim statement of cash flows, condensed
consolidated interim statement of changes in shareholders' equity
and the related explanatory notes. We have read the other
information contained in the half yearly financial report and
considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set
of financial statements.
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
June 2023 is not prepared, in all material respects, in accordance
with UK adopted International Accounting Standard 34 and the
Disclosure Guidance and Transparency Rules of the United Kingdom's
Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International
Standard on Review Engagements 2410 (UK) "Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity" issued by the Financial Reporting Council. A review of
interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
As disclosed in note 1, the annual financial statements of the
group are prepared in accordance with UK adopted international
accounting standards. The condensed set of financial statements
included in this half-yearly financial report has been prepared in
accordance with UK adopted International Accounting Standard 34,
"Interim Financial Reporting".
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than
those performed in an audit as described in the Basis of Conclusion
section of this report, nothing has come to our attention to
suggest that management have inappropriately adopted the going
concern basis of accounting or that management have identified
material uncertainties relating to going concern that are not
appropriately disclosed.
This conclusion is based on the review procedures performed in
accordance with this ISRE, however future events or conditions may
cause the entity to cease to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct
Authority.
In preparing the half-yearly financial report, the directors are
responsible for assessing the company's ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the
directors either intend to liquidate the company or to cease
operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the review of the financial
information
In reviewing the half-yearly report, we are responsible for
expressing to the Company a conclusion on the condensed set of
financial statements in the half-yearly financial report. Our
conclusion, including our Conclusions Relating to Going Concern,
are based on procedures that are less extensive than audit
procedures, as described in the Basis for Conclusion paragraph of
this report.
Use of our report
This report is made solely to the company in accordance with
guidance contained in International Standard on Review Engagements
2410 (UK) "Review of Interim Financial Information Performed by the
Independent Auditor of the Entity" issued by the Financial
Reporting Council. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the
company, for our work, for this report, or for the conclusions we
have formed.
Ernst & Young LLP
Luton
27 July 2023
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END
IR EANXXAFFDEFA
(END) Dow Jones Newswires
July 28, 2023 02:00 ET (06:00 GMT)
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