An Ebiquity company Final Results Presentation Year ended 30 April 2012 July 2012 1.
-
Upload
owen-barker -
Category
Documents
-
view
216 -
download
0
Transcript of An Ebiquity company Final Results Presentation Year ended 30 April 2012 July 2012 1.
an Ebiquity company
Final Results PresentationYear ended 30 April 2012
July 20121
2
Change sub heading - via *View* / HEADER & FOOTER
Review of the yearYear ended 30 April 2012
Strong year on year performance
Revenue growthTotal revenue of £52.9m up 20%
Operating profit growthTotal operating profit of £8.2m up 55%
Organic operating profit up 35%
Margin and earnings growthOperating margin up from 12.0% to 15.5%
Underlying diluted EPS up 23% to 7.4p
3
Profit and earnings growth in line with expectations
All profit and margin numbers are underlying (before highlighted items)
Business growth
Development into social media and brand reputationEcho Research
Russian media analytics Joined Up Media Company
Australian media analytics Faulkner Media Management
Expanded international presenceFairbrother Lenz Eley
4
International expansion and broadened Ebiquity offering
5
Change sub heading - via *View* / HEADER & FOOTER
5 year reviewTaking stock
Major achievements
2008 2012
International business 26% 76%
Germany revenue £nil £7.6m*
France revenue £nil £1.4m*
US revenue £1.3m £7.5m
New Business units in Russia, Australia, Italy with franchise partners in Spain/Nordics
New international data centre in Newcastle with approx 235 employees
* On a pro forma basis
6
5 year revenue growth
7
£k
£17.2m
£52.9m
5 year underlying operating profit growth
8
£k
£2.0m
£8.2m
5 year underlying diluted EPS growth
9
pence
4.3p
7.4p
2011/12 highlights
• Strong growth despite economic head winds• Clients remain cautious and contract closing is slow• Growth in Analytics division underlines success of core strategy
- "adding value to data"• Contract renewals remain strong at over 90% in value across both divisions• Multi-geography contracts main driver of growth• Acquisition integration successfully releasing cost synergies with 35%
increase in organic operating profit
10
5 key factors driving importance of the market
1. Proliferation of marketing and media channels and the impact of digital media distribution
2. Rise of user-generated content such as social media and blogs, which have lead to the increasing empowerment of consumers
3. Challenges of multi-channel marketing, and the burgeoning need for the measurement of marketing performance
4. Growth in available data that can provide clients with greater insight into the effectiveness of their marketing programmes
5. Consolidation and globalisation of the marketing and advertising industry as it relates to brand owners
11
Growing worldwide demand for independent marketing and media performance measurement
Growing worldwide demand for independent marketing and media performance measurement
12
Financial SummaryYear ended 30 April 2012
Year on year revenue analysis
13
Revenue increase of 20%
2011 43,329 - 836 44,165
movement 977 8,488 (711) 8,754
2012 44,306 8,488 125 52,919
£k
Revenue from current year acquisitions
14
Results consolidated from date of control
Both columns are year ended 30 April 2012
£k
Revenue analysis by segment
15
Strong shift towards Analytics business
Analytics organic growth
9%
Analytics acq’n p-f growth
8%
Pro forma continuing revenue analysis
16
Continuing organic revenue plus pro forma acquisitions
£k
17
Positive impact of synergy release and disposal of underperforming businessGross margins
Total
Analytics
Platform
Total gross profit £29,898k (2011: £24,799k)
2011 2012
Year on year underlying operating profit analysis
18
Positive impact of synergy release, acquisitions and disposal of underperforming business
2011 5,830 - (532) 5,298
Movement 1,429 1,044 434 2,907
2012 7,259 1,044 (98) 8,205
£k
19
Positive impact of synergy release and disposal of underperforming businessUnderlying margins
Operating profit (EBIT)
EBITDA
2011 2012
Highlighted items – administration expenses
20
Low level of integration costs
£4,607k£6,546k
In addition to the above highlighted items within administration expenses, £311k of capitalised loan arrangement fees were written off at the time of the refinancing exercise in March 2012 - these are included in finance expenses (2011:
nil).
£k
Profit before tax and EPS
21
Strong growth in underlying profit and EPS
30 April 2011
30 April 2012
Underlying operating result 5,298 8,205Highlighted items (6,546) (4,607)Reported operating result (1,248) 3,598Net finance costs (528) (644)Highlighted finance costs - (311)Reported result before tax (1,776) 2,643Underlying result before tax 4,770 7,561
Underlying diluted EPS 6.02p 7.40p
+55%
+59%
+23%
Financing analysis
22
£11m of available facility…comfortably in line with all banking covenants
Gross debt 7,685 18,353
Cash 3,158 6,190
Net debt 4,527 12,163
Gross debt/EBITDA¹ 1.2 1.7
Net debt/EBITDA¹ 0.7 1.1
¹EBITDA based on 12m historic pro forma
Gross debt
£k
23
Profit and earnings growth in line with expectations
Strong year on year performance
Revenue growthTotal revenue of £52.9m up 20%
Operating profit growthTotal operating profit of £8.2m up 55%
Organic operating profit up 35%
Margin and earnings growthOperating margin up from 12.0% to 15.5%
Underlying diluted EPS up 23% to 7.4p
All profit and margin numbers are underlying (before highlighted items)
24
Change sub heading - via *View* / HEADER & FOOTER
Outlook2012/13 and beyond
Outlook
• Ebiquity remains a first mover in media and marketing performance
measurement
• Underlying drivers of market growth remain strong
• Renewals and new business pipeline on track
• However lack of confidence in economic recovery will continue to act
as a brake on growth
• Cautiously optimistic we will deliver to our plans
25
26
Financial AppendicesYear ended 30 April 2012
Appendix: Acquisitions during the period
27
Acquisitions Disposal
Echo Research Group
Joined Up Media Company
Faulkner Media Management
Fairbrother Lenz Eley
Newslive
Nature of business Reputation management& social media
Media analytics in Russia/CEE
Media analytics in Australia/NZ
Media analytics worldwide
UK editorial monitoring
Operations Surrey, NY, Paris, S’pore Moscow, Ldn Sydney Ldn, H’burg, Paris Ldn
Segment Analytics Analytics Analytics Analytics Platform
Transaction date 20 May 2011 28 May 2011 14 October 2011 14 March 2012 1 July 2011
Transaction detail 100% acquisition 50.1% acquisition 100% acquisition 100% acquisition Trade disposal
Cash up front £3,500k £318k A$4,000k (£2,500k) £5,000k £167k
Deferred consideration maximum £6,500k £882k A$1,900k (£1,200k) £6,000k -
Estimated deferred consideration £1,100k £254k A$1,900 (£1,200k) £4,371k -
Total potential consideration £10,000k £1,200k A$5,900k (£3,700k) £11,000k £167k
Total estimated consideration £4,600k £572k A$5,900k (£3,700k) £9,371k £167k
Earn out basis 2 years based on revenue targets
2 years based on revenue/profit mgns
2 years based on revenue/profit mgns
1 year based on profit multiple
n/a
Key financials Mar 11: Rev £5m, u/l op profit
£0.5m, 45 staff
Apr 11: Rev £0.8m, u/l op profit
£0.1m, 7 staff
Apr 11: Rev £3.5m, u/l op profit
£0.4m, 24 staff
Dec 11: Rev £8.6m u/l op profit
£1.0m, 70 staff
Apr 11: Rev £0.8m u/l op loss(£0.5m),35 staff
Appendix: Acquisitions during the year
28
April 2012 April 2011Non current assets Goodwill 43,291 31,457
Purchased intangibles 11,864 8,350
Other 4,520 4,247
59,675 44,054
Current assets Trade debtors 13,818 10,143
Accrued income 4,447 2,130
Cash 6,190 3,158
Bank security deposits - 200
Prepayments 1,696 1,573
Other 795 638
26,946 17,842
Current liabilities Trade creditors 5,391 3,861
Loans 2,245 3,721
Deferred income 7,984 8,707
Accruals 3,194 4,029
Other 10,598 3,765
29,412 24,083
Non current liabilities Loans 15,814 3,643
Deferred tax 2,847 2,171
Other 2,786 948
21,447 6,762
Net assets 35,762 31,051
Appendix: Statement of financial position
29
Year ended 30 April 2012
Year ended30 April 2011
Cash generated from operations 2,493 1,430
Finance expense (527) (339)
Income taxes paid (792) (757)
Net cash from operating activities 1,174 334
Investing activitiesAcq’n of subsidiaries, net of cash acquired (9,934) (898)
Purchase of PPE (892) (1,260)
Capitalised development costs (180) (77)
Finance income 6 2
(11,000) (2,233)
Financing activitiesIssue of new shares 2,302 38
New borrowings 25,780 1,750
Loan repayments (15,034) (1,982)
Bank loan fee/securities (200) 74
Repayment of finance leases (19) (21)
Dividends paid to non-controlling interests (10) -
12,819 (115)
Net increase / (decrease) in cash 2,993 (2,040)
Appendix: Cash flow statement
Appendix: Summary of new banking facility
• £30m multi-currency facility• Approx £19m drawn• Approx £11m available (nb. estimated future earn out payments of £7.2m*)• Interest rate of 2.75% plus LIBOR (can be lowered from March 2013 depending on covenants)• Analysis of drawn amount and repayment plan set out below:
30
In place from March 2012 on 4 year term
Currency GBP Repayments Bullet
GBP £15,338k £15,338k £8,210k £7,128k
Dollar $2,500k £1,597k £798k £798k
Euro €2,500k £2,095k - £2,095k
£19,030k £9,008k £10,021k
Repayment quarters /16
Repayment/quarter (from April 12) £563k
All numbers are approximate due to foreign exchange fluctuations
* £5.4m in 2012/13, £1.7m in 2013/14 and £0.1m in 2014/15