TIDMRNOW
RNS Number : 8580U
Research Now plc
01 July 2009
+-----------+--------------------------------+-------------------------------+
| Date: | Embargoed until 07.00am, Wednesday 1 July 2009 |
| | |
+-----------+----------------------------------------------------------------+
| Contact: | Chris Havemann (Chief Executive Officer) |
+-----------+----------------------------------------------------------------+
| | Nathan Runnicles (Chief Financial Officer) |
+-----------+----------------------------------------------------------------+
| | Research Now |
+-----------+----------------------------------------------------------------+
| | Tel: +44 (0)20 7921 2400 |
+-----------+----------------------------------------------------------------+
| | Corporate Website: www.researchnow.co.uk |
+-----------+----------------------------------------------------------------+
| | |
+-----------+----------------------------------------------------------------+
| | Alistair Mackinnon-Musson | Mark Williams |
+-----------+--------------------------------+-------------------------------+
| | Nathan Field | Henry Fitzgerald-O'Connor |
+-----------+--------------------------------+-------------------------------+
| | Hudson Sandler | Canaccord Adams |
+-----------+--------------------------------+-------------------------------+
| | Tel: +44 (0)20 7796 4133 | Tel: + 44 (0)20 7050 6500 |
+-----------+--------------------------------+-------------------------------+
| | Email: rn@hspr.com | |
+-----------+--------------------------------+-------------------------------+
Research Now plc
INTERIM STATEMENT
for the six months ended 30 April 2009
Research Now plc (AIM: RNOW), the international online fieldwork provider and
panel specialist to the market research industry, is pleased to announce its
Interim Statement for the six months ended 30 April 2009.
Highlights
* Revenues up 24% to GBP23.6 million (2008: GBP19.1m)
* Growth in all markets
* Repeat business generating 92% of revenue
* Continued new account wins with 237 new clients added in the period
* Operating profit up 46% to GBP4.0 million (2008: GBP2.7 million)
* Operating margin increased to 16.9% (2008: 14.3%)
* Reported profit before tax up 43% to GBP3.5 million (2008: GBP2.4 million)
* Basic EPS up 33% to 12.5p (2008: 9.4p per share)
* Strong balance sheet with net cash of GBP6.0 million (April 2008: GBP5.0
million)
Chris Havemann, Chief Executive, said:
"Our first half results are excellent, especially as they were achieved against
such a weak economic backdrop. We have benefitted from the combination of our
global network, a high level of repeat business and tight cost control".
"Looking forward, we remain positive that 2009 will be another year of
profitable growth. We're nimble enough to react to toughening conditions, yet
our global spread affords protection and the dynamics of our marketplace remain
exciting. We have terrific opportunities ahead of us".
Interim Statement
Overview
During a period of pronounced economic turbulence the Group achieved excellent
first half results. Revenues grew by 23.5% and operating profits by 46.1%,
demonstrating both the inherent strength of the Group and its global market
leadership position.
Group revenue in the six months to 30 April 2009 was GBP23.6m (2008: GBP19.1m)
with all markets showing underlying growth. It is particularly pleasing that the
operating margin also showed a strong increase; first half profits of GBP4.0m
(2008: GBP2.7m) represented a margin of 16.9% compared to 14.3% in the same
period last year. The Group had GBP6.0m of net cash at the end of the period
(2008: GBP5.0m).
Managing through economic uncertainty
Few businesses have been immune to the effects of the current global recession.
Our response has been two-fold: firstly to focus on the more complex
full-service projects which are less exposed to price pressure (because they
require more value-added services from us) and secondly, to keep a tight control
over discretionary costs, carefully balanced with our continuing investment in
people, panels and technology to ensure that we deliver on the next stage of
growth. The success of this strategy is evident in the increase in revenues and
operating margin.
Strong market position
We continue to benefit from being able to offer a co-ordinated global service to
all our clients. At the time of writing, we have proprietary online panels in 36
countries and five project management centres, each in a different time zone.
Our global reach, combined with our reputation for quality, puts us in pole
position to gain preferred supplier status for larger clients and to offer
smaller clients multi-country research studies.
We remain strong European market leaders, with first half revenues of GBP11.3m
and an underlying growth rate of 14.1%. Whilst we have seen some recent
softening of business in the UK and Germany post the period end, reflecting
reduced client budgets and competitor pricing in certain segments, we see many
opportunities to continue to grow our European business. Online penetration of
fieldwork remains relatively low on the Continent. As an example, during the
second half, we will open new offices in Italy and Spain where the local markets
are only now beginning to develop. We are also working on new products, such as
online advertising effectiveness testing, for which we see significant demand.
Our North American business saw underlying growth of 8.7% in the six months and
we continue to benefit from our position as a high quality player with global
panel reach. During the period we opened an office in Dallas, bringing the
number of offices we have in this region to six. Our Canadian business completed
its first period trading under the Research Now brand and has continued to trade
strongly. We have integrated the sales and trading functions in the US and
Canada under one regional leadership team and our unified structure is already
proving successful in terms of both optimising sales opportunities and
increasing operational efficiency.
The Asia-Pacific region has performed very strongly with underlying sales growth
in the period of 26.8%. Our business in Australia is the clear leader in its
local market and operates as our hub for delivering projects to Asia. We are now
seeing the benefits of our recently established offices in New Zealand and
Singapore. Our joint venture in China is now underway, selling into the local
market and we have also begun to implement plans to enter Japan. With Asia's
rate of substitution from offline to online data collection starting to gather
pace, we intend to invest in our regional presence to ensure we benefit from
this structural transition.
Clients
Clients are the bedrock of our business. Delivering high quality client service
is at the core of everything we do and is why we constantly monitor client
satisfaction feedback on completed projects at the Board level. Client service
remained consistently high during the period and the success of our approach is
yet again evidenced by our repeat business statistics, with 91.8% of first-half
revenues coming from clients served in prior periods. We continue to develop new
relationships recording 237 new account wins in the first half. Our largest
single client accounted for 12.0% of revenue and our ten largest accounts
represented 42.5% of revenue.
Revenues from each of our four market segments continued to grow in the period.
Our largest client grouping remains the small and medium size market research
agencies, which accounted for 52.2% of Group revenues in the six months. Sales
to large agencies, which have their own in-house panels, were 28.6% of total
sales, reflecting the attractiveness of our global capabilities to these
clients. Sales to other types of agencies, such as strategy consultants,
advertising agencies and media buyers, were 14.0% of sales in the period and the
balance comprised sales to companies that have their own internal resources to
analyse market research data.
People
We currently have 419 full-time employees working in 17 offices across seven
countries. We have a continual programme of staff training, development and
secondment to ensure that all our people are imbued with the Research Now
culture and our way of working. We would again like to pay tribute to the first
class efforts of all our people whose contribution is key to our success.
Our new management structure, announced a year ago alongside our 2008 Interim
results and which came into effect on 1 November 2008, is producing the expected
benefits of greater transparency and accountability. As noted in our 2008 Annual
Report, the missing gap in our Senior Management Team was filled in March 2009,
when Miles Worne joined us as Managing Director, Business Development from a
senior role at Cadbury. Miles has global responsibility for a number of key
investment areas including panels, new product development and marketing. We are
fortunate to have in place a very capable and experienced leadership team to
deliver the Group's future growth objectives.
Outlook
After an excellent first six months and a positive end to the first half, the
start to our second half has seen evidence that the recessionary pressures on
end client budgets are flowing from the Americas into our European markets.
Nevertheless, the Group is nimble enough to seize profitable opportunities to
gain new clients, enter new markets and launch new products. We are also
benefiting from the global spread of our business, as stronger performing
markets help to offset those experiencing short term weakness.
Accordingly, we remain positive that 2009 will be another year of profitable
growth. Furthermore, in the medium term, the market dynamics are as strong as
ever and combined with our positioning as the leading high quality global
business in our sector, we believe there remain substantial opportunities ahead
for the Group.
+----------------------------------------+----------------------------------------+
| Geoff Westmore | Chris Havemann |
+----------------------------------------+----------------------------------------+
| Chairman | Chief Executive Officer |
+----------------------------------------+----------------------------------------+
| 1 July 2009 | |
+----------------------------------------+----------------------------------------+
Research Now plc
Chief Financial Officer's Review
for the six months ended 30 April 2009
Reporting basis
The Group's unaudited financial statements for the six month period ended 30
April 2009 have been prepared in accordance with International Financial
Reporting Standards (IFRS).
Revenue
Reported revenue increased by 23.5% to GBP23.6m. Underlying revenue growth,
calculated by taking the increase in 2009 over 2008 proforma revenue at constant
exchange rates, was 12.5%.
European revenues were up 18.0% on a reported basis and by 14.1% on an
underlying basis, as each of the Group's markets performed strongly during the
first half.
The Americas' reported revenue was up 28.9% and by 8.7% on an underlying basis.
The region had a good start to the year given the US, which accounts for
approximately two-thirds of Americas' revenue, was one of the first of the
global economies to enter recession. Revenue visibility is limited in all the
Group's markets, but this is particularly so in the Americas where month to
month trading is more reliant on ad-hoc project demand.
Asia Pacific had an excellent first half with reported revenue growth of 29.0%
and 26.8% on an underlying basis. The market leading Australian business
continued to perform strongly and the recently established offices in New
Zealand and Singapore made a positive contribution to the region.
Gross profit and margin
The reported gross profit increased 29.9% to GBP18.5 million (2008: GBP14.2
million). The gross margin increased to 78.4% (2008: 74.5%) as the Group's use
of third party panels decreased to 8.1% of revenue (2008: 13.1%). The two
primary drivers of this reduction were the increased utilisation of the Group's
proprietary own panel network, branded Valued Opinions, particularly the US and
Asian panels, and reduced purchases of third party healthcare fieldwork in the
Americas (as specialist sample panels are not currently supported by Valued
Opinions).
Operating profit and margin
Operating profit increased by 46.1% to GBP4.0 million (2008: GBP2.7 million).
The operating margin increased to 16.9% (2008: 14.3%) reflecting the benefit of
the gross margin improvement which has enabled the Group to continue to invest
in its operations, albeit at a more cautious rate.
Staff costs as a percentage of revenue increased to 43.4% (2008: 41.5%) as the
average number of employees grew to 424 (2008: 324). The growth in headcount
reflects the build-out of teams in the latter months of 2008 to support the
Group's objectives in key markets such as the USA, together with the investments
made across 2008 to develop the management teams in each region. At 30 April
2009 the Group had 415 employees, a marginal increase on the 411 employees at
year end.
Variable staff costs during the first half, defined as performance linked
compensation and contractors, decreased to 15.0% of total staff costs (2008:
24.7%). Other staff costs in the period were GBP0.1 million for employee share
option schemes and GBP0.1 million in respect of severance charges.
The Group's charge in relation to the amortisation of its panel investment was
GBP1.4 million (2008: GBP1.0 million). The restatement under IAS21 of foreign
currency denominated intercompany loans led to an exchange gain in the period of
GBP0.3 million (2008: GBP0. 2million).
Adjusted results
To assist the understanding of the underlying performance of the Group in the
period, profit before tax and earnings per share are also disclosed prior to the
impact of interest accretion and the accounting treatment for contingent
consideration liabilities (2009: GBP0.5 million charge/2008: GBP0.1 million
charge).
Finance costs
The Group's net finance costs amounted to GBP0.5 million (2008: GBP0.3 million),
consisting of a charge of GBP0.4 million attributable to the foreign currency
translation adjustment on the final contingent consideration that was paid in
February 2009 (2008: GBP0.1 million credit), plus interest accretion and debt
amortisation fees of GBP0.1 million (2008: GBP0.2 million).
Profit before tax
Adjusted profit before tax increased by 54.0% to GBP4.0 million (2008: GBP2.6
million). Reported profit before tax was GBP3.5 million (2008: GBP2.4 million).
Taxation
The reported tax charge for the period was GBP1.2 million based on an estimated
full year effective tax rate of 35.7% on reported profit before taxation. The
full year effective tax rate in the year ended 31 October 2008 was 35.2%.
Earnings per share
On a weighted average basis of 17.9 million shares, adjusted earnings per share
were 15.0 pence (2008: 10.1 pence) an increase of 48.5%. Basic earnings per
share were 12.5 pence (2008: 9.4 pence). On a fully diluted weighted average
basis of 18.6 million shares, adjusted fully diluted earnings per share were
14.5 pence (2008: 9.3 pence), an increase of 55.9%.
Cash flow
Net cash inflow from operating activities for the period was GBP2.4 million
(2008: GBP4.7 million) as the Group increased its investment in working capital
by GBP1.8 million (2008: GBP1.0 million inflow). To date the Group has incurred
minimal bad debt expense and its ageing profile remains consistent with that at
31 October 2008. There is significant internal focus on debtor and accrued
income positions to ensure recoverability risks are identified and managed
accordingly.
Capital expenditure, inclusive of finance lease payments, was GBP0.3 million
(2008: GBP0.2 million) and the Group's cash investment in maintaining the Valued
Opinions panel network increased to GBP1.5 million (2008: GBP1.1 million). Free
cash flow, being net cash inflow from operating activities less capital
expenditure and payments to acquire intangible assets, was GBP0.8 million (2008:
GBP3.3 million).
Tax payments increased significantly during the first half to GBP1.4 million
(2008: GBP0.2 million) as the Group is now required to make payments on account
in a number of markets, which totalled GBP0.6 million in the first half.
In February 2009, the Group paid GBP5.4 million in respect of the final
contingent consideration payment due to the vendors of OpenVenue. The
consideration was satisfied by a cash payment of GBP2.7 million and the issuance
of 1,003,562 ordinary shares.
Treasury, funding and exchange risk
Net cash, defined as cash and cash equivalents less bank borrowings (net of
arrangement fees), other debt arrangements and obligations under finance leases,
was GBP6.0 million at 30 April 2009 (30 April 2008: GBP5.0 million). The Group's
undrawn revolving credit facility currently has a limit of GBP2.0 million.
Dividend
The Board has not declared an Interim dividend in respect of the first half.
+----------------------------------------+----------------------------------------+
| Nathan Runnicles | |
+----------------------------------------+----------------------------------------+
| Chief Financial Officer | |
+----------------------------------------+----------------------------------------+
| 1 July 2009 | |
+----------------------------------------+----------------------------------------+
Research Now plc
Interim Consolidated Income Statement
for the six months ended 30 April 2009
+------------------------------+--------+-----------+-------------+---------------+
| | | Unaudited | Audited |
+------------------------------+--------+-------------------------+---------------+
| | | for the | for the |
| | | six months ended | year ended |
| | | 30 April | 31 October |
+------------------------------+--------+-------------------------+---------------+
| | | 2009 | 2008 | 2008 |
+------------------------------+--------+-----------+-------------+---------------+
| | Notes | GBP'000 | GBP'000 | GBP'000 |
+------------------------------+--------+-----------+-------------+---------------+
| Revenue | 3 | 23,562 | 19,086 | 41,163 |
+------------------------------+--------+-----------+-------------+---------------+
| Cost of sales | | (5,083) | (4,862) | (9,867) |
+------------------------------+--------+-----------+-------------+---------------+
| Gross profit | | 18,479 | 14,224 | 31,296 |
+------------------------------+--------+-----------+-------------+---------------+
| Administrative expenses | | (14,503) | (11,502) | (24,993) |
+------------------------------+--------+-----------+-------------+---------------+
| Operating profit | | 3,976 | 2,722 | 6,303 |
+------------------------------+--------+-----------+-------------+---------------+
| Finance revenue | | 40 | 153 | 156 |
+------------------------------+--------+-----------+-------------+---------------+
| Finance costs | | (535) | (442) | (771) |
+------------------------------+--------+-----------+-------------+---------------+
| Profit before taxation | | 3,481 | 2,433 | 5,688 |
+------------------------------+--------+-----------+-------------+---------------+
| Tax expense | 4 | (1,244) | (912) | (2,000) |
+------------------------------+--------+-----------+-------------+---------------+
| Profit for the period | | 2,237 | 1,521 | 3,688 |
| attributable to equity | | | | |
| holders of the parent | | | | |
+------------------------------+--------+-----------+-------------+---------------+
| | | | | |
+------------------------------+--------+-----------+-------------+---------------+
| Earnings per share (pence) | | | | |
+------------------------------+--------+-----------+-------------+---------------+
| Basic earnings per ordinary | 5 | 12.5p | 9.4p | 21.8p |
| share | | | | |
+------------------------------+--------+-----------+-------------+---------------+
| Diluted earnings per | 5 | 12.0p | 8.5p | 20.0p |
| ordinary share | | | | |
+------------------------------+--------+-----------+-------------+---------------+
| | | | | |
+------------------------------+--------+-----------+-------------+---------------+
| Adjusted earnings per share* | | | | |
| (pence) | | | | |
+------------------------------+--------+-----------+-------------+---------------+
| Basic earnings per ordinary | 5 | 15.0p | 10.1p | 23.9p |
| share | | | | |
+------------------------------+--------+-----------+-------------+---------------+
| Diluted earnings per | 5 | 14.5p | 9.3p | 21.9p |
| ordinary share | | | | |
+------------------------------+--------+-----------+-------------+---------------+
All income and expenses relate to continuing activities.
* Adjusted for interest accretion and foreign currency translation adjustment on
contingent consideration.
Research Now plc
Interim Consolidated Balance Sheet
at 30 April 2009
+----------------------------------------+--------+----------+----------+---------------+
| | | Unaudited | Audited at |
| | | at 30 April | 31 October |
+----------------------------------------+--------+---------------------+---------------+
| | | 2009 | 2008 | 2008 |
+----------------------------------------+--------+----------+----------+---------------+
| | Notes | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------------+--------+----------+----------+---------------+
| Non-current assets | | | | |
+----------------------------------------+--------+----------+----------+---------------+
| Property, plant and equipment | | 1,503 | 954 | 1,510 |
+----------------------------------------+--------+----------+----------+---------------+
| Intangible asset - goodwill | | 21,304 | 18,695 | 19,060 |
+----------------------------------------+--------+----------+----------+---------------+
| Intangible assets - other | | 1,578 | 1,327 | 1,815 |
+----------------------------------------+--------+----------+----------+---------------+
| Deferred tax assets | | 324 | 397 | 261 |
+----------------------------------------+--------+----------+----------+---------------+
| | | 24,709 | 21,373 | 22,646 |
+----------------------------------------+--------+----------+----------+---------------+
| Current assets | | | | |
+----------------------------------------+--------+----------+----------+---------------+
| Trade and other receivables | 6 | 11,650 | 9,274 | 11,310 |
+----------------------------------------+--------+----------+----------+---------------+
| Inventories | | 341 | - | 329 |
+----------------------------------------+--------+----------+----------+---------------+
| Financial assets | | 42 | 40 | 35 |
+----------------------------------------+--------+----------+----------+---------------+
| Cash and cash equivalents | | 5,913 | 5,646 | 7,773 |
+----------------------------------------+--------+----------+----------+---------------+
| | | 17,946 | 14,960 | 19,447 |
+----------------------------------------+--------+----------+----------+---------------+
| Total assets | | 42,655 | 36,333 | 42,093 |
+----------------------------------------+--------+----------+----------+---------------+
| | | | | |
+----------------------------------------+--------+----------+----------+---------------+
| Current liabilities | | | | |
+----------------------------------------+--------+----------+----------+---------------+
| Trade and other payables | | (7,270) | (7,072) | (9,096) |
+----------------------------------------+--------+----------+----------+---------------+
| Other financial liabilities | 7 | (80) | (648) | (331) |
+----------------------------------------+--------+----------+----------+---------------+
| Income tax payable | | (1,518) | (758) | (1,684) |
+----------------------------------------+--------+----------+----------+---------------+
| Provisions | 8 | (1,317) | (5,392) | (6,172) |
+----------------------------------------+--------+----------+----------+---------------+
| | | (10,185) | (13,870) | (17,283) |
+----------------------------------------+--------+----------+----------+---------------+
| | | | | |
+----------------------------------------+--------+----------+----------+---------------+
| Total liabilities | | (10,185) | (13,870) | (17,283) |
+----------------------------------------+--------+----------+----------+---------------+
| Net assets | | 32,470 | 22,463 | 24,810 |
+----------------------------------------+--------+----------+----------+---------------+
| | | | | |
+----------------------------------------+--------+----------+----------+---------------+
| Capital and reserves | | | | |
+----------------------------------------+--------+----------+----------+---------------+
| Equity share capital | 9 | 372 | 350 | 351 |
+----------------------------------------+--------+----------+----------+---------------+
| Share premium account | 9 | 11,399 | 10,732 | 8,612 |
+----------------------------------------+--------+----------+----------+---------------+
| Merger reserve | 9 | 6,970 | 4,802 | 6,970 |
+----------------------------------------+--------+----------+----------+---------------+
| Exchange reserve | 9 | 5,257 | 2,664 | 2,792 |
+----------------------------------------+--------+----------+----------+---------------+
| Other reserves | 9 | (65) | (65) | (65) |
+----------------------------------------+--------+----------+----------+---------------+
| Retained earnings | 9 | 8,537 | 3,980 | 6,150 |
+----------------------------------------+--------+----------+----------+---------------+
| Equity attributable to shareholders of | | 32,470 | 22,463 | 24,810 |
| the parent | | | | |
+----------------------------------------+--------+----------+----------+---------------+
Research Now plc
Interim Consolidated Statement of Recognised Income and Expense
for the six months ended 30 April 2009
+------------------------------------------------+------+---------+---------+-----------+
| | | Unaudited | Audited |
| | | for the six | for the |
| | | months | year |
| | | ended | ended |
| | | 30 April | 31 |
| | | | October |
+------------------------------------------------+------+-------------------+-----------+
| | | 2009 | 2008 | 2008 |
+------------------------------------------------+------+---------+---------+-----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------------------+------+---------+---------+-----------+
| Income and expense recognised directly in | | | | |
| equity | | | | |
+------------------------------------------------+------+---------+---------+-----------+
| Current tax relief from items not charged to | | - | 5 | 77 |
| income statement | | | | |
+------------------------------------------------+------+---------+---------+-----------+
| Deferred tax on share options | | 39 | 5 | (144) |
+------------------------------------------------+------+---------+---------+-----------+
| Transfer to income statement on | | - | - | (2) |
| cash flow hedge - Administrative expenses | | | | |
+------------------------------------------------+------+---------+---------+-----------+
| Exchange differences on retranslation of | | 220 | 59 | (5) |
| foreign operations | | | | |
+------------------------------------------------+------+---------+---------+-----------+
| Exchange differences on retranslation of | | 2,245 | (341) | (149) |
| goodwill | | | | |
+------------------------------------------------+------+---------+---------+-----------+
| Profit for the period | | 2,237 | 1,521 | 3,688 |
+------------------------------------------------+------+---------+---------+-----------+
| Total recognised income and expense for the | | 4,741 | 1,249 | 3,465 |
| period | | | | |
+------------------------------------------------+------+---------+---------+-----------+
Research Now plc
Interim Consolidated Cash Flow Statement
for the six months ended 30 April 2009
+----------------------------------+--------+----------+----------+-------------+
| | | Unaudited | Audited |
+----------------------------------+--------+---------------------+-------------+
| | | for the six months | for the |
| | | ended | year |
| | | 30 April | ended |
| | | | 31 October |
+----------------------------------+--------+---------------------+-------------+
| | | 2009 | 2008 | 2008 |
+----------------------------------+--------+----------+----------+-------------+
| | Notes | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------+--------+----------+----------+-------------+
| Cash generated from operations | 10 | 3,798 | 4,940 | 10,209 |
+----------------------------------+--------+----------+----------+-------------+
| Taxation paid | | (1,435) | (225) | (329) |
+----------------------------------+--------+----------+----------+-------------+
| Net cash flow from operating | | 2,363 | 4,715 | 9,880 |
| activities | | | | |
+----------------------------------+--------+----------+----------+-------------+
| | | | | |
+----------------------------------+--------+----------+----------+-------------+
| Investing activities | | | | |
+----------------------------------+--------+----------+----------+-------------+
| Interest received | | 34 | 62 | 156 |
+----------------------------------+--------+----------+----------+-------------+
| Payments to acquire property, | | (54) | (246) | (598) |
| plant and equipment | | | | |
+----------------------------------+--------+----------+----------+-------------+
| Payments to acquire subsidiary | | (2,727) | (2,128) | (2,178) |
+----------------------------------+--------+----------+----------+-------------+
| Payments to acquire intangible | | (1,525) | (1,147) | (2,784) |
| assets | | | | |
+----------------------------------+--------+----------+----------+-------------+
| Net cash flow from investing | | (4,272) | (3,459) | (5,404) |
| activities | | | | |
+----------------------------------+--------+----------+----------+-------------+
| | | | | |
+----------------------------------+--------+----------+----------+-------------+
| Financing activities | | | | |
+----------------------------------+--------+----------+----------+-------------+
| Interest received/(paid) | | - | (161) | (167) |
+----------------------------------+--------+----------+----------+-------------+
| Repayment of the capital element | | (251) | - | (232) |
| of finance lease and hire | | | | |
| purchase contracts | | | | |
+----------------------------------+--------+----------+----------+-------------+
| Proceeds from share issues | | 80 | 6,606 | 7,049 |
+----------------------------------+--------+----------+----------+-------------+
| Share issue costs | | - | - | (394) |
+----------------------------------+--------+----------+----------+-------------+
| Repayment of borrowings | | | (3,143) | (4,143) |
+----------------------------------+--------+----------+----------+-------------+
| Fees on new borrowings | | - | (48) | (50) |
+----------------------------------+--------+----------+----------+-------------+
| Net cash flow from financing | | (171) | 3,254 | 2,063 |
| activities | | | | |
+----------------------------------+--------+----------+----------+-------------+
| | | | | |
+----------------------------------+--------+----------+----------+-------------+
| (Decrease)/increase in cash and | | (2,080) | 4,510 | 6,539 |
| cash equivalents | | | | |
+----------------------------------+--------+----------+----------+-------------+
| Effect of exchange rates on cash | | 220 | (110) | (12) |
| and cash equivalents | | | | |
+----------------------------------+--------+----------+----------+-------------+
| Cash and cash equivalents at the | | 7,773 | 1,246 | 1,246 |
| beginning of the period | | | | |
+----------------------------------+--------+----------+----------+-------------+
| Cash and cash equivalents at the | | 5,913 | 5,646 | 7,773 |
| end of the period | | | | |
+----------------------------------+--------+----------+----------+-------------+
Research Now plc
Notes to the Interim Condensed Consolidated Financial Statements
for the six months ended 30 April 2009
1. Corporate information
The interim condensed consolidated financial statements of the group for the six
months ended 30 April 2009 were authorised for issue in accordance with a
resolution of the directors on 30 June 2009.
Research Now plc is a limited company incorporated and domiciled in England and
Wales. The Company's ordinary shares are traded on the AIM (Alternative
Investment Market), a market operated by the London Stock Exchange plc.
2. Basis of preparation and accounting policies
The interim condensed consolidated financial statements for the six months ended
30 April 2009 have been prepared in accordance with IAS 34 Interim Financial
Reporting.
The interim condensed consolidated financial statements do not include all the
information and disclosures required in the annual financial statements, and
should be read in conjunction with the Group's annual financial statements for
the year ended 31 October 2008.
The accounting policies adopted in the preparation of the interim condensed
consolidated financial statements are consistent with those followed in the
preparation of the Group's annual financial statements for the year ended 31
October 2008, and with the accounting policies that the directors anticipate
will be applied in the financial statements at 31 October 2009.
3. Segment information
The following tables present revenue and profit information regarding the
Group's operating segments for the six months ended 30 April 2009 and 2008,
respectively, as well as the year ended 31 October 2008.
+----------------------------------+------------+---------+----------+---------+
| | Unaudited for the six months ended 30 |
| | April |
+----------------------------------+-------------------------------------------+
| | Segment revenue | Segment result |
+----------------------------------+----------------------+--------------------+
| | 2009 | 2008 | 2009 | 2008 |
+----------------------------------+------------+---------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------+------------+---------+----------+---------+
| Continuing operations | | | | |
+----------------------------------+------------+---------+----------+---------+
| Europe | 11,317 | 9,587 | 2,448 | 1,441 |
+----------------------------------+------------+---------+----------+---------+
| The Americas | 10,183 | 7,900 | 1,306 | 925 |
+----------------------------------+------------+---------+----------+---------+
| Asia-Pacific | 2,062 | 1,599 | 222 | 356 |
+----------------------------------+------------+---------+----------+---------+
| | 23,562 | 19,086 | 3,976 | 2,722 |
+----------------------------------+------------+---------+----------+---------+
| Net finance costs | | | (495) | (289) |
+----------------------------------+------------+---------+----------+---------+
| Profit before tax | | | 3,481 | 2,433 |
+----------------------------------+------------+---------+----------+---------+
| Income tax expense | | | (1,244) | (912) |
+----------------------------------+------------+---------+----------+---------+
| Profit for the period from | | | 2,237 | 1,521 |
| continuing operations | | | | |
+----------------------------------+------------+---------+----------+---------+
3. Segment information (continued)
+----------------------------------------+----------------+---------------+
| | Audited |
| | for the year ended |
| | 31 October 2008 |
+----------------------------------------+--------------------------------+
| | Segment | Segment |
| | revenue | result |
+----------------------------------------+----------------+---------------+
| | GBP'000 | GBP'000 |
+----------------------------------------+----------------+---------------+
| Continuing operations | | |
+----------------------------------------+----------------+---------------+
| Europe | 21,048 | 2,994 |
+----------------------------------------+----------------+---------------+
| The Americas | 16,899 | 2,837 |
+----------------------------------------+----------------+---------------+
| Asia-Pacific | 3,216 | 472 |
+----------------------------------------+----------------+---------------+
| | 41,163 | 6,303 |
+----------------------------------------+----------------+---------------+
| Net finance costs | | (615) |
+----------------------------------------+----------------+---------------+
| Profit before tax | | 5,688 |
+----------------------------------------+----------------+---------------+
| Income tax expense | | (2,000) |
+----------------------------------------+----------------+---------------+
| Profit for the year from continuing | | 3,688 |
| operations | | |
+----------------------------------------+----------------+---------------+
4. Taxation
The provision for tax for the six months ended 30 April 2009 is calculated at
35.7% on profit, in line with the estimated rate for the year ending 31 October
2009.
The actual effective rate for the full year to 31 October 2008 was 35.2%.
5. Earnings per ordinary share (EPS)
Basic earnings per share amounts are calculated by dividing profit for the
period attributable to ordinary equity holders of the parent by the weighted
average number of ordinary shares outstanding during the period excluding any
shares held by the Research Now Share Incentive Plan trust.
Diluted earnings per share are calculated by dividing the profit attributable to
ordinary equity holders of the parent by the weighted average number of ordinary
shares outstanding during the period plus the weighted average number of
ordinary shares that would be issued on the conversion of all the dilutive
potential ordinary shares into ordinary shares.
The amounts for earnings per share from continuing operations on a reported
basis are as follows:
+----------------------------------------+----------+----------+--------------+
| | Unaudited | Audited |
+----------------------------------------+---------------------+--------------+
| | for the six months | for the |
| | ended | year ended |
| | 30 April | 31 October |
+----------------------------------------+---------------------+--------------+
| Basic and Diluted earnings per share | 2009 | 2008 | 2008 |
+----------------------------------------+----------+----------+--------------+
| Reported earnings (GBP'000) | 2,237 | 1,521 | 3,688 |
+----------------------------------------+----------+----------+--------------+
| Weighted average shares used in Basic | 17,949 | 16,245 | 16,907 |
| EPS calculation ('000) | | | |
+----------------------------------------+----------+----------+--------------+
| Basic EPS (pence) | 12.5p | 9.4p | 21.8p |
+----------------------------------------+----------+----------+--------------+
| Weighted average shares used in | 18,614 | 17,793 | 18,468 |
| Diluted EPS calculation ('000) | | | |
+----------------------------------------+----------+----------+--------------+
| Diluted EPS (pence) | 12.0p | 8.5p | 20.0p |
+----------------------------------------+----------+----------+--------------+
In order to facilitate a comparison between the current and the prior period's
basic and diluted earnings per share, they are also presented on an adjusted
basis, using earnings before interest accretion and the foreign currency
translation adjustment on contingent consideration.
5. Earnings per ordinary share (EPS) (continued)
+----------------------------------------+---------+-----------+----------------+
| | Unaudited | Audited |
+----------------------------------------+---------------------+----------------+
| | for the six months | for the |
| | ended | year ended |
| | 30 April | 31 October |
+----------------------------------------+---------------------+----------------+
| Adjusted earnings per share | 2009 | 2008 | 2008 |
+----------------------------------------+---------+-----------+----------------+
| Reported earnings (GBP'000) | 2,237 | 1,521 | 3,688 |
+----------------------------------------+---------+-----------+----------------+
| Interest accretion on contingent | 86 | 216 | 378 |
| consideration | | | |
+----------------------------------------+---------+-----------+----------------+
| Foreign currency loss/(gain) on | 372 | (91) | (28) |
| contingent consideration translation | | | |
| adjustment | | | |
+----------------------------------------+---------+-----------+----------------+
| Adjusted earnings | 2,695 | 1,646 | 4,038 |
+----------------------------------------+---------+-----------+----------------+
| Adjusted Basic EPS (pence) | 15.0p | 10.1p | 23.9p |
+----------------------------------------+---------+-----------+----------------+
| Adjusted Diluted EPS (pence) | 14.5p | 9.3p | 21.9p |
+----------------------------------------+---------+-----------+----------------+
The reconciliation between the shares used in calculating Adjusted Basic and
Diluted earnings per share is as follows:
+----------------------------------------+----------+------------+-----+-------------+
| | Unaudited | Audited |
+----------------------------------------+-----------------------------+-------------+
| | for the six months | for the |
| | ended | year ended |
| | 30 April | 31 October |
+----------------------------------------+-----------------------------+-------------+
| | 2009 | 2008 | 2008 |
+----------------------------------------+----------+------------+-------------------+
| | '000 | '000 | '000 |
+----------------------------------------+----------+------------+-------------------+
| Weighted average shares | 17,949 | 16,245 | 16,907 |
+----------------------------------------+----------+------------+-------------------+
| Dilutive share options outstanding | 665 | 701 | 701 |
+----------------------------------------+----------+------------+-------------------+
| Potential share issue for contingent | - | 847 | 860 |
| consideration on acquisition | | | |
+----------------------------------------+----------+------------+-------------------+
| Weighted average diluted shares | 18,614 | 17,793 | 18,468 |
+----------------------------------------+----------+------------+-----+-------------+
6. Trade and other receivables
+----------------------------------------+----------+------------+-----+-------------+
| | Unaudited | Audited |
+----------------------------------------+-----------------------------+-------------+
| | for the six months | for the |
| | ended | year ended |
| | 30 April | 31 October |
+----------------------------------------+-----------------------------+-------------+
| | 2009 | 2008 | 2008 |
+----------------------------------------+----------+------------+-------------------+
| | '000 | '000 | '000 |
+----------------------------------------+----------+------------+-------------------+
| Trade receivables | 9,344 | 7,378 | 9,588 |
+----------------------------------------+----------+------------+-------------------+
| Prepayments and accrued income | 2,306 | 1,896 | 1,722 |
+----------------------------------------+----------+------------+-------------------+
| Total | 11,650 | 9,274 | 11,310 |
+----------------------------------------+----------+------------+-----+-------------+
As at 30 April 2009 the analysis of trade receivables that were past due but not
impaired is:
+----------------------------+---------+----------+------------+------------+------------+
| | | Neither | Past due or impaired |
| | | past | |
| | | due nor | |
| | | impaired | |
+----------------------------+---------+ +--------------------------------------+
| | Total | | 31 - 60 | 61 - 90 | 91 - 230 |
| | | | days | days | days |
+----------------------------+---------+----------+------------+------------+------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------------------+---------+----------+------------+------------+------------+
| Trade receivables | 9,794 | 5,968 | 2,070 | 960 | 796 |
+----------------------------+---------+----------+------------+------------+------------+
| Provision | (450) | (9) | - | - | (441) |
+----------------------------+---------+----------+------------+------------+------------+
| Total | 9,344 | 5,959 | 2,070 | 960 | 355 |
+----------------------------+---------+----------+------------+------------+------------+
As at 30 April 2008 the analysis of trade receivables that were past due but
not impaired is:
+----------------------------+---------+----------+-----------+-------------+-------------+
| | | Neither | Past due or impaired |
| | | past | |
| | | due nor | |
| | | impaired | |
+----------------------------+---------+ +---------------------------------------+
| | Total | | 31 - 60 | 61 - 90 | 91 - 230 |
| | | | days | days | days |
+----------------------------+---------+----------+-----------+-------------+-------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------------------+---------+----------+-----------+-------------+-------------+
| Trade receivables | 7,612 | 4,608 | 1,683 | 636 | 685 |
+----------------------------+---------+----------+-----------+-------------+-------------+
| Provision | (234) | (1) | - | (1) | (232) |
+----------------------------+---------+----------+-----------+-------------+-------------+
| Total | 7,378 | 4,607 | 1,683 | 635 | 453 |
+----------------------------+---------+----------+-----------+-------------+-------------+
As at 31 October 2008 the analysis of trade receivables that were past due but
not impaired is:
+---------------------------+---------+----------+-----------+-------------+-------------+
| | | Neither | Past due or impaired |
| | | past | |
| | | due nor | |
| | | impaired | |
+---------------------------+---------+ +---------------------------------------+
| | Total | | 31 - 60 | 61 - 90 | 91 - 230 |
| | | | days | days | days |
+---------------------------+---------+----------+-----------+-------------+-------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------------------+---------+----------+-----------+-------------+-------------+
| Trade receivables | 10,111 | 6,849 | 1,895 | 671 | 696 |
+---------------------------+---------+----------+-----------+-------------+-------------+
| Provision | (523) | - | - | - | (523) |
+---------------------------+---------+----------+-----------+-------------+-------------+
| Total | 9,588 | 6,849 | 1,895 | 671 | 173 |
+---------------------------+---------+----------+-----------+-------------+-------------+
7. Other financial liabilities
+--------------------------------------------------+---------+---------+----------------+
| | Unaudited | Audited |
+--------------------------------------------------+-------------------+----------------+
| | At | At |
| | 30 April | 31 October |
+--------------------------------------------------+-------------------+----------------+
| | 2009 | 2008 | 2008 |
+--------------------------------------------------+---------+---------+----------------+
| | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------------------------+---------+---------+----------------+
| Current | | | |
+--------------------------------------------------+---------+---------+----------------+
| Obligations under finance leases | 80 | - | 331 |
| | | | |
+--------------------------------------------------+---------+---------+----------------+
| Current instalments due on revolving credit | - | 648 | - |
| facility (net of fees) | | | |
+--------------------------------------------------+---------+---------+----------------+
| | 80 | 648 | 331 |
+--------------------------------------------------+---------+---------+----------------+
| | | | |
+--------------------------------------------------+---------+---------+----------------+
| Bank loans | | | |
+--------------------------------------------------+---------+---------+----------------+
| GBP3,000,000 Revolving credit facility | - | 1,000 | - |
+--------------------------------------------------+---------+---------+----------------+
| Debt Fees | - | (352) | - |
+--------------------------------------------------+---------+---------+----------------+
| | | 648 | - |
+--------------------------------------------------+---------+---------+----------------+
| Analysed as | | | |
+--------------------------------------------------+---------+---------+----------------+
| Current instalments due on revolving credit | - | 648 | - |
| facility (net of fees) | | | |
+--------------------------------------------------+---------+---------+----------------+
| | - | 648 | - |
+--------------------------------------------------+---------+---------+----------------+
The revolving credit facility is secured by a fixed and floating charge over the
Group's assets. The facility expires on 31 March 2011 and was fully pre-paid
during 2008. The loan, when drawn bears interest at LIBOR + 2.25%. As at 30
April 2009 the Group had GBP2.0 million of undrawn borrowing facility available.
8. Provisions
+----------------------------------------+---------------+------------+------------+
| | Contingent | Reward | Total |
| | consideration | liability | |
+----------------------------------------+---------------+------------+------------+
| | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------------+---------------+------------+------------+
| At 1 November 2008 (audited) | | | |
+----------------------------------------+---------------+------------+------------+
| Current | 4,840 | 1,332 | 6,172 |
+----------------------------------------+---------------+------------+------------+
| Arising during the period | - | 2,409 | 2,409 |
+----------------------------------------+---------------+------------+------------+
| Interest accretion | 86 | - | 86 |
+----------------------------------------+---------------+------------+------------+
| Foreign exchange movement | 528 | - | 528 |
+----------------------------------------+---------------+------------+------------+
| Utilised | (5,454) | (2,424) | (7,878) |
+----------------------------------------+---------------+------------+------------+
| At 30 April 2009 (unaudited) | - | 1,317 | 1,317 |
+----------------------------------------+---------------+------------+------------+
| | | | |
+----------------------------------------+---------------+------------+------------+
| Analysed as: | | | |
+----------------------------------------+---------------+------------+------------+
| Current | - | 1,317 | 1,317 |
+----------------------------------------+---------------+------------+------------+
| Non-current | - | - | - |
+----------------------------------------+---------------+------------+------------+
| | - | 1,317 | 1,317 |
+----------------------------------------+---------------+------------+------------+
9. Reconciliation of movements in equity
+------------------------+---------+---------+---------+----------+----------+----------+--------------+
| | Equity | Share | Merger | Exchange | Other | Retained | Share-holder |
| | share | premium | reserve | reserve | reserves | earnings | equity |
| | capital | | | | | | |
+------------------------+---------+---------+---------+----------+----------+----------+--------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+------------------------+---------+---------+---------+----------+----------+----------+--------------+
| At 31 October 2008 | 351 | 8,612 | 6,970 | 2,792 | (65) | 6,150 | 24,810 |
| (audited) | | | | | | | |
+------------------------+---------+---------+---------+----------+----------+----------+--------------+
| Total recognised | - | - | - | 2,465 | - | 2,276 | 4,741 |
| income and expense for | | | | | | | |
| the period | | | | | | | |
+------------------------+---------+---------+---------+----------+----------+----------+--------------+
| Share option | - | - | - | - | - | 111 | 111 |
| adjustment | | | | | | | |
+------------------------+---------+---------+---------+----------+----------+----------+--------------+
| Share issue | 1 | 80 | - | - | - | - | 81 |
+------------------------+---------+---------+---------+----------+----------+----------+--------------+
| Shares issued for | 20 | 2,707 | - | - | - | - | 2,727 |
| contingent | | | | | | | |
| consideration | | | | | | | |
+------------------------+---------+---------+---------+----------+----------+----------+--------------+
| At 30 April 2009 | 372 | 11,399 | 6,970 | 5,257 | (65) | 8,537 | 32,470 |
| (unaudited) | | | | | | | |
+------------------------+---------+---------+---------+----------+----------+----------+--------------+
On 9 February 2009, 1,003,562 ordinary shares were issued at GBP2.72 each to
satisfy the final contingent consideration payment for the acquisition of
OpenVenue.
On 2 February 2009, 10,000 shares were issued in respect of share options
exercised at a price of GBP1.30 per share.
On 19 February 2009, 30,000 shares were issued in respect of share options
exercised at a price of GBP2.24 per share.
10. Cash flow information
Reconciliation of the profit for the period to net cash flow from operating
activities
+------------------------------------------+---------+---------+--------+------------+
| | Unaudited | Audited |
+------------------------------------------+----------------------------+------------+
| | for the six months | for the |
| | ended | year ended |
| | 30 April | 31 October |
+------------------------------------------+----------------------------+------------+
| | 2009 | 2008 | 2008 |
+------------------------------------------+---------+---------+---------------------+
| Operating activities | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------------+---------+---------+---------------------+
| Adjustments to reconcile profit for the | | | |
| period to net cash inflow from operating | | | |
| activities | | | |
+------------------------------------------+---------+---------+---------------------+
| Profit for the period | 2,237 | 1,521 | 3,688 |
+------------------------------------------+---------+---------+---------------------+
| Tax | 1,244 | 912 | 2,000 |
+------------------------------------------+---------+---------+---------------------+
| Net finance costs | 495 | 289 | 615 |
+------------------------------------------+---------+---------+---------------------+
| Operating profit | 3,976 | 2,722 | 6,303 |
+------------------------------------------+---------+---------+---------------------+
| | | | |
+------------------------------------------+---------+---------+---------------------+
| Depreciation and impairment of property, | 313 | 245 | 611 |
| plant and equipment | | | |
+------------------------------------------+---------+---------+---------------------+
| Amortisation and impairment of | 1,396 | 1,041 | 2,228 |
| intangible assets | | | |
+------------------------------------------+---------+---------+---------------------+
| Share-based payments | 111 | 89 | 171 |
+------------------------------------------+---------+---------+---------------------+
| (Increase)/decrease in inventories | (12) | 60 | (269) |
+------------------------------------------+---------+---------+---------------------+
| (Increase)/decrease in trade and other | (347) | 65 | (2,202) |
| receivables | | | |
+------------------------------------------+---------+---------+---------------------+
| (Decrease)/increase in trade and other | (1,459) | 841 | 3,036 |
| payables | | | |
+------------------------------------------+---------+---------+---------------------+
| Movement in provisions | (180) | (123) | 331 |
+------------------------------------------+---------+---------+---------------------+
| Net cash flow from operating activities | 3,798 | 4,940 | 10,209 |
+------------------------------------------+---------+---------+--------+------------+
- ENDS -
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SDFFUSSUSELM
Grafico Azioni Research Now (LSE:RNOW)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Research Now (LSE:RNOW)
Storico
Da Giu 2023 a Giu 2024
