07:01 Tue 15 Sep 2020
Bonhill Group PLC - Interim Results
("Bonhill", the "Company" or the "Group")
Interim Results for the Six Months Ended
Financial Highlights
- Revenue down by 28% to
- Gross margin improved significantly to 77.8% (H1 19: 62.9%)
- Unadjusted EBITDA loss of
- Operating loss of
- Equity fundraising of
-
- Cash balance at
Operational Highlights
- Significant increase YoY in digital audiences - with greater numbers of attendees to the Group's virtual events and higher audience numbers to the Group's online titles
- Successful transition to Virtual Events with 27 completed and 27 planned pre-year end
- Successful roll-out of multi-day virtual events, such as the Women in IT 3-day virtual summit and 2-day Women in Asset Management summit
- Greater emphasis on product development delivering customer value through use of the Group's expert and unique analysis and data, leading to new recurring revenue streams
- New operational structure to deliver continued shift from transactional revenue streams to repeat subscription-led online revenue sources
- Moved off all Group legacy technology platforms onto new standard Bonhill platform and technology stack, reducing time-to-market and costs
- Successful move to global remote working which will continue into 2021
Commenting on the results,
"COVID-19 created an extremely challenging period that we have been able to navigate through utilising the dynamism and expertise of our global teams to successfully work together and reposition the business to deliver long-term profitability despite having 39% of historic Group revenue at risk. We took swift and decisive action to restructure all of our business units to ensure that we are well-positioned for the future. We now have a more agile business with solid foundations for growth from our continued investment in the technology platform."
Commenting on the outlook, he added:
"The Group continues to trade ahead of the expectations released on
For further enquiries please contact:
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+44 (0)20 7250 7035 |
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|
Shore Capital (Nominated Adviser and Joint Broker) |
+44 (0)20 7408 4080 |
|
|
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+44 (0)20 7523 8000 |
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+44 (0)20 3701 7660 |
About
The business creates content, sales and marketing opportunities, networking events and transactional opportunities for its audiences of entrepreneurs, business owners and managers, CTOs & technology leaders, asset & wealth managers, and professional women, in addition to its sponsors, advertising clients and customers. Flagship brands include: InvestmentNews, Portfolio Adviser, Fund Selector Asia,
For more information visit www.bonhillplc.com
Chairman's Statement
Bonhill had a very challenging first half of 2020. H1 revenue was down by 28% to
During the first quarter we started to see the work of previous years beginning to pay off and momentum was building, but then the world went into lockdown and we had to adapt. Across the Group, we saw event revenue reduce by 85% Q1 to Q2, but encouragingly, Business Information increased by 7% Q1 to Q2. The Board was pleased to see how well the team rose to the challenge, using the investment we had made in technology to change how we deliver to our customers quickly and productively. The wider team took decisive action to conserve cash by making radical changes in staffing and using innovative approaches to keep our customers engaged.
The Company has refined the Group's model and has refocused its efforts within its sectors, so that in addition to Financial Services, Technology was developed into a more solutions-focused business and re-branded as Business Solutions and Diversity has broadened to a wider Governance channel. These changes reflect the continuing drive to develop long-term recurring revenues, increased subscription revenues and greater customer needs-based product sales.
As a Group, we had a high dependency on the events business (39% of 2019's total revenues) which were unfortunately all either postponed or cancelled between April and
In the first half, and subsequently, we have seen some changes to the composition of the Board.
Our staff have excelled themselves through their commitment, flexibility and determination to succeed during such a challenging period. The investment in technology enabled all our global teams to work remotely. I would finally like to thank our shareholders for their support in the fundraising and our broad customer base for their continued support and engagement.
Non-Executive Chairman
Chief Executive's Review
Introduction
The first half was an extremely challenging period for the Group, but one which we have weathered, overcoming many obstacles. Despite the global pandemic, we have managed to complete the first half in a robust position with a refined business model, improved propositions for customers, a tighter team spirit and a stronger group identity. The biggest direct impact of COVID-19 on the Group was the loss of revenue from live events due to cancellations and postponements, showing a 58% reduction in revenue H1 20 vs H1 19. Despite this, overall Group revenue in the first half was only down 28% against the comparable period last year. Additionally, we have seen gross margin increase by 15% compared to the first half of last year as the Company transitions towards a more digital product offering.
Much of 2019 was spent setting up the framework for our agile technology stack, our product strategy and a move to recurring subscription revenue streams, whilst successfully developing a larger global Events business. COVID-19 required a wholesale change in our Events proposition, and I am pleased that although we have had to cancel all of our global live awards events, we have converted our offering to virtual in the vast majority of cases and have seen excellent support from attendees and sponsors. The net result is that the Group's Events revenue which was
Our work on developing new foundations has helped us counter this reduction in revenue as we have also worked hard to develop new product pipelines, have delivered a range of new products in our various titles and seen good growth in SmallBusiness.co.uk, part of our re-branded Business Solutions division, and in our Content Marketing business, Last Word Create, that was only launched in
New divisional structure
The pandemic forced us to look at every part of the business and assess our market positioning, brand strength and future opportunities. This led us to make wholesale changes to the Group's model and operating structure.
Strategically, we continue to build long-term sustainable revenues, targeting high growth sectors and fast-growing international markets. We remain focused on Financial Services with our strong presence in the
InvestmentNews is run by
Our Technology business, led by
The newly formed Governance business (formerly Diversity), also led by
The leaders of these businesses are joined on my executive committee by
This newly constructed team has been tasked with a number of key items:
- Change the business mix to replace lost event revenue with a growing level of subscription or recurring revenues;
- Increase the business areas' operating margin to achieve a blended Group operating margin (before depreciation and amortisation) of 15% by the end of 2023;
- Create a more stable employee base and recruit high quality individuals while retaining and developing existing staff; and
- Create engaging content that keeps us at the heart of our communities.
COVID-19 Response
At the outset of the pandemic, we undertook a series of actions to mitigate the impact of COVID-19 on our operations. As part of this process, we participated in governments' plans to support business and closely examined our cost base above and beyond existing plans to increase operational efficiency.
As part of this process, during H1 20, we reduced overall headcount across the Group with 26 redundancies and furloughed 16 employees from April to August at a total salary saving of approximately
Other cost-saving measures included reduced print costs for three months providing a saving of
We also participated in the PPP and, as a result, headcount in the US has remained stable at 46 people. The PPP loan is expected to be fully forgiven and converted to a grant in Q4 2020 once the application process is opened by the lending bank. As previously announced, while the Company sought further financial support under the
These measures have been complemented by the execution of existing plans to increase operational efficiency as part of the ongoing integration process. The Transitional Service Agreement terminated in
The combination of the response to COVID-19 and ongoing integration efficiencies have contributed to reinforcing the financial strength of the Group during this challenging time.
The current operating environment
Financial Services
Our Financial Services division comprises two businesses, namely InvestmentNews and Last Word Media.
InvestmentNews
During the period, InvestmentNews focused primarily on driving recurring revenue through subscriptions and building a broader customer base through key vertical market segments. It has launched three new products since
In the six months ended
During the period, revenue increased by 11% Q1 to Q2 and there has been encouraging growth in digital activity as a result of the investment in its website. Currently, digital revenues for the year are expected to be in excess of the original pre-COVID-19 budget. InvestmentNews is currently booked 82% to its revised post-COVID revenue budget for FY2020 with a qualified pipeline in excess of that.
Of total revenues generated by InvestmentNews in the six months ended
The decision to stop production of InvestmentNews' weekly print magazine and replace it with a digital version was taken in
In
With a completed technology investment, new enhanced core website, developing portal strategy and continued strong engagement with a broadening client base, InvestmentNews is well placed to enter 2021 primed for growth.
Last Word Media
Last Word Media (LWM) saw revenues impacted due to its historic focus on large live events. Total revenues in the period were down 44% (on a like-for-like basis) reflecting the lack of live event activity between March and June. The direct impact of COVID-19 has seen all of LWM's planned Q2 events move into the second half of this year in both live and virtual formats.
Prior to the onset of lockdown, we took the decision to restructure the European business to better align our product offering to the broad European audience. This reduced headcount by 12, which, combined with the removal of the print version of Expert Investor has created annualised cost savings of
Another round of restructuring was taken post period-end to reflect the current outlook for live events and the end of furlough and this has resulted in a further seven redundancies creating annualised savings of
The split of revenue by proposition generated by LWM in the period was Business Information 55%, Events 39% and Data & Insight 6%.
Despite the challenges, LWM is currently booked 86% to its post-COVID revenue budget for FY2020. We have worked hard to develop innovative formats with virtual events and new business areas. Three notable successes have been the sustainability title ESG Clarity, the Content Marketing business LastWord Create and the Last Word research business.
Governance
Governance (formally known as Diversity) supports organisations with their policies, processes, systems and behaviours to ensure that they align with legislation. There has been an increased level of activity and confirmed activity in the Events business, which now has a proven revised product set for H2 2020. The media team continues to perform well.
We have restructured the division in order to better align the teams and improve efficiency. This has resulted in a reduction in headcount of five people due to the drop in live awards-based events in H2 2020.
This division is 99% booked to budget for FY 2020 with a modest risk of having to repurpose some revenues into 2021 which were booked pre-COVID-19. Event venue liabilities have been further reduced, from a peak of
The Women in IT London virtual summit was the success story of the period in terms of engagement and in proving the new digital platform. Although it had modest revenues, it proved our new template and was a tremendous showcase for our virtual platform going forward. 11 virtual events are planned for H2 2020.
Business Solutions
Our Business Solutions division consists of SmallBusiness.co.uk, GrowthBusiness.co.uk, www.information-age.com and www.whatinvestment.co.uk.
The impact of new leadership introduced in 2019 is demonstrated by the enormous growth in interest in SmallBusiness.co.uk and GrowthBusiness.co.uk during the early days of the pandemic. The audience increased fivefold in the first weeks of lockdown as people sought information on all aspects of the various government initiatives.
Media will be ahead of budget again in Q3 2020 (and is
Information Age had a strong Q2 2020 with revenue up fourfold from Q1 2020. This is a result of pre-COVID-19 changes feeding through and the broadening of revenue streams to include lead generation products, webinars and premium gated content.
Across Governance and Business Solutions, the combined revenue split by proposition in the period was Business Information 45%, Events 55% and Data & Insight 0%.
Our investment in technology continues as we look to protect and grow revenues as well as to enhance operational efficiency. We have made significant upgrades to key websites and have implemented key changes to our technology to simplify and centralise operations with additional control processes. This includes a shift from using external agencies to FTE resources.
Dividend
Last year saw Bonhill pay its maiden interim dividend for the six months ended
Outlook
The Group continues to trade ahead of the expectations released on
Chief Executive
Financial Review
Income statement
Overall unaudited Group revenue for the first half ("H1 20") was
InvestmentNews' revenue for H1 20 was
Last Word Media's revenue in H1 20 of
The Bonhill
|
|
|
|
|
6 months |
6 months |
6 months |
|
£'000 |
£'000 |
£'000 |
Revenue |
7,760 |
10,743 |
13,777 |
Cost of sales |
(1,725) |
(3,981) |
(4,867) |
Net operating expenses |
(17,032) |
(9,001) |
(10,833) |
Operating profit/(loss) |
(10,996) |
(2,238) |
(1,923) |
Finance costs |
(146) |
(204) |
(207) |
Loss before tax |
(11,142) |
(2,442) |
(2,130) |
Tax |
1,232 |
60 |
(26) |
Loss |
(9,910) |
(2,382) |
(2,156) |
|
|
|
|
Statutory loss per share |
(15.13p) |
(5.85p) |
|
*Proforma numbers include pre-acquisition results for Last Word Media as if it had been owned for the six months
Operating loss in the period was
Additionally, when comparing against H1 19, Last Word Media only contributed to two and a half months of trading post-acquisition in
A further breakdown of net operating expenses is shown below.
|
|
|
|
6 months |
6 months |
|
£'000 |
£'000 |
Staff costs |
6,965 |
5,155 |
IT costs |
496 |
117 |
Legal and professional costs |
1,005 |
1,572 |
Office costs |
187 |
281 |
Travel and expenses |
105 |
362 |
Other operating expenses |
460 |
528 |
Share based payments |
(79) |
70 |
Depreciation |
73 |
63 |
Amortisation |
1,228 |
853 |
Impairment of intangible assets |
6,593 |
- |
Net operating expenses |
17,032 |
9,001 |
Cash flow
|
|
|
|
|
|
6 months |
6 months |
|
|
£'000 |
£'000 |
Operating cash flows before working capital |
(3,182) |
387 |
|
Working capital movement |
3,079 |
97 |
|
Interest paid |
(146) |
(180) |
|
Tax paid |
- |
(38) |
|
Foreign exchange gains or losses |
42 |
94 |
|
Purchases of property, plant and equipment and intangible assets |
(171) |
(64) |
|
Free cash outflow |
(377) |
296 |
|
Acquisition of Last Word Media |
- |
(5,840) |
|
Acquisition costs |
- |
(815) |
|
Integration costs |
- |
(732) |
|
Re-organisation costs |
- |
(100) |
|
Proceeds from issue of ordinary shares |
2,259 |
9,484 |
|
Net repayment of borrowings and lease liabilities |
(326) |
(949) |
|
Net cash inflow |
1,555 |
1,344 |
During the six months to
The Group has seen a positive working capital movement of
During the COVID-19 lockdown, the Company furloughed 16 people in the
Financial position
|
|
|
|
£'000 |
|
£'000 |
|
Intangibles |
21,413 |
|
30,706 |
Tangible fixed assets |
268 |
|
183 |
Lease asset |
1,107 |
|
1,479 |
Lease liability |
(1,190) |
|
(1,549) |
Working capital |
(351) |
|
1,667 |
Deferred and current tax |
1,221 |
|
(2,455) |
Cash |
3,446 |
|
5,711 |
Debt |
(2,888) |
|
(3,647) |
Net assets |
23,024 |
|
32,095 |
As at
The debt balance of
At
Principal risks and COVID-19
The COVID-19 pandemic and measures taken to contain it have had an unprecedented impact on the
- All live events were cancelled across all countries in which Bonhill operates.
- All employees have been working from home since the lockdown was announced in
- Deferral of VAT payments of
- Furloughing 16 employees, predominantly in roles relating to live events, from 6 April under the Coronavirus Job Retention Scheme.
Due to the uncertainty surrounding COVID-19, business risk is expected to continue into the second half of 2020. In order to further mitigate the impact of this, and to allow the Company to return to its previous performance levels, the decision has been made to convert all future event for 2020 to virtual.
Additionally, we have increased our credit checks for both new and existing customers. This will allow us to maintain up-to-date information on our customer base and protect our working capital should a credit rating deteriorate.
Other than COVID-19 related risks, the directors do not consider that the principal risks and uncertainties described in the Company's annual report for the year ended
Chief Financial Officer
Condensed consolidated statement of comprehensive income
For the 6 month period ended
|
6 month period ended 30 June |
Year ended |
|
|
2020 |
2019 |
Statutory results |
|
£'000 |
£'000 |
£'000 |
|
(unaudited) |
(unaudited) |
(audited) |
|
|
|
|
Revenue |
7,760 |
10,743 |
24,429 |
Cost of sales |
(1,725) |
(3,981) |
(8,156) |
|
|
|
|
Gross Profit |
6,036 |
6,762 |
16,273 |
|
77.8% |
62.9% |
66.6% |
|
|
|
|
Net operating expenses |
(9,217) |
(8,015) |
(17,598) |
Depreciation |
(73) |
(63) |
(104) |
Amortisation |
(1,228) |
(853) |
(2,077) |
Impairment of intangible assets |
(6,593) |
- |
- |
Share based payments |
79 |
(70) |
(149) |
|
|
|
|
Operating Loss |
(10,995) |
(2,238) |
(3,654) |
|
|
|
|
Finance costs |
(146) |
(204) |
(491) |
|
|
|
|
Loss before tax |
(11,141) |
(2,442) |
(4,145) |
|
|
|
|
Tax |
1,232 |
60 |
- |
|
|
|
|
Loss after tax |
(9,909) |
(2,382) |
(4,145) |
Other comprehensive income: |
|
|
|
Exchange differences on translating foreign operations |
954 |
6 |
(455) |
|
|
|
|
Total comprehensive income/(loss) for the year |
(8,955) |
(2,376) |
(4,600) |
Basic loss per share attributable to the owners of the parent |
(15.13p) |
(5.85p) |
(9.28p) |
Consolidated statement of financial position
At
|
|
|
|
|
|
|
|
|
|
£'000 |
|
£'000 |
|
|
£'000 |
|
|
|
|
|
|
|
|
NON-CURRENT ASSETS |
|
|
|
|
|
|
|
|
|
11,525 |
|
20,016 |
|
|
17,109 |
Other intangible assets |
|
9,887 |
|
10,690 |
|
|
10,392 |
Property, plant and equipment |
|
268 |
|
183 |
|
|
343 |
Deferred tax asset |
|
1,238 |
|
326 |
|
|
459 |
Right-of-use asset |
|
1,107 |
|
1,479 |
|
|
1,493 |
|
|
24,025 |
|
32,694 |
|
|
29,796 |
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
Trade and other receivables |
|
7,173 |
|
7,641 |
|
|
8,070 |
Cash and cash equivalents |
|
3,446 |
|
5,711 |
|
|
1,891 |
|
|
10,620 |
|
13,352 |
|
|
9,961 |
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
34,645 |
|
46,046 |
|
|
39,757 |
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES |
|
|
|
|
|
|
|
Lease liability |
|
(321) |
|
(947) |
|
|
(712) |
Deferred tax liability |
|
- |
|
(2,738) |
|
|
(464) |
Borrowings |
|
(278) |
|
(1,891) |
|
|
(1,046) |
|
|
(599) |
|
(5,576) |
|
|
(2,222) |
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
Lease liability |
|
(869) |
|
(602) |
|
|
(23) |
Trade and other payables |
|
(7,525) |
|
(5,974) |
|
|
(5,265) |
Income tax liability |
|
(17) |
|
(43) |
|
|
(1,568) |
Borrowings |
|
(2,610) |
|
(1,756) |
|
|
(888) |
|
|
(11,021) |
|
(8,375) |
|
|
(7,744) |
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
(11,621) |
|
(13,951) |
|
|
(9,966) |
|
|
|
|
|
|
|
|
NET ASSETS |
|
23,024 |
|
32,095 |
|
|
29,791 |
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
Share capital |
|
986 |
|
486 |
|
|
486 |
Share premium account |
|
1,759 |
|
- |
|
|
- |
Share option reserve |
|
147 |
|
138 |
|
|
217 |
Merger reserve |
|
1,976 |
|
- |
|
|
1,976 |
Other reserves |
|
104 |
|
104 |
|
|
104 |
Retained earnings |
|
17,519 |
|
31,327 |
|
|
27,429 |
Foreign exchange reserve |
|
533 |
|
40 |
|
|
(421) |
TOTAL EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT |
|
23,024 |
|
32,095 |
|
|
29,791 |
Consolidated statement of changes in equity
For the 6 month period ended
|
Share capital |
Share premium |
Share option reserve |
Merger Reserve |
Other reserves |
Retained earnings |
Foreign exchange reserve |
Total |
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
|
|
|
Balance as at |
343 |
26,715 |
68 |
|
4,086 |
(8,343) |
34 |
22,903 |
|
|
|
|
|
|
|
|
|
Loss for the period |
|
|
|
|
|
(2,382) |
|
(2,382) |
Other comprehensive income |
|
|
|
|
|
|
6 |
6 |
Issue of share capital |
143 |
11,857 |
|
|
|
|
|
12,000 |
Share issue costs |
|
(524) |
|
|
|
|
|
(524) |
Capital reduction |
|
(38,048) |
|
|
(3,982) |
42,030 |
|
- |
Share option charge |
|
|
70 |
|
|
|
|
70 |
|
|
|
|
|
|
|
|
|
Balance as at |
486 |
- |
138 |
- |
104 |
31,305 |
40 |
32,073 |
|
|
|
|
|
|
|
|
|
Loss for the period |
|
|
|
|
|
(1,764) |
|
(1,764) |
Other comprehensive income |
|
|
|
|
|
|
(461) |
(461) |
Issue of share capital |
|
(1,976) |
|
1,976 |
|
|
|
- |
Capital reduction |
|
1,976 |
|
|
|
(1,976) |
|
- |
Share option charge |
|
|
79 |
|
|
|
|
79 |
Dividend paid |
|
|
|
|
|
(136) |
|
(136) |
|
|
|
|
|
|
|
|
|
Balance as at |
486 |
- |
217 |
1,976 |
104 |
27,429 |
(421) |
29,790 |
|
|
|
|
|
|
|
|
|
Loss for the period |
|
|
|
|
|
(9,909) |
|
(9,909) |
Other comprehensive income |
|
|
|
|
|
|
954 |
954 |
Issue of share capital |
500 |
1,759 |
|
|
|
|
|
2,259 |
Share option charge |
|
|
(70) |
|
|
|
|
(70) |
|
|
|
|
|
|
|
|
|
Balance as at |
986 |
1,759 |
147 |
1,976 |
104 |
17,519 |
533 |
23,024 |
Consolidated statement of cash flows
For the 6 month period ended
|
|
6 month period ended |
|
6 month period ended |
|
|
|
|
|
|
|
£'000 |
|
£'000 |
|
|
|
|
|
CASH USED IN OPERATIONS |
|
(103) |
|
484 |
Interest paid |
|
(146) |
|
(180) |
Taxation paid |
|
- |
|
(38) |
|
|
|
|
|
NET CASH GENERATED FROM OPERATING ACTIVITIES |
|
(249) |
|
266 |
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
|
Purchases of property, plant and equipment |
|
(28) |
|
(51) |
Purchases of intangible assets |
|
(143) |
|
(13) |
Net cash consideration for acquisition |
|
- |
|
(5,840) |
Acquisition costs |
|
- |
|
(815) |
Integration costs |
|
- |
|
(732) |
Re-organisation costs |
|
- |
|
(100) |
|
|
|
|
|
|
|
(171) |
|
(7,551) |
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
Repayment of borrowings |
|
(816) |
|
(949) |
Repayment of lease liabilities |
|
(449) |
|
- |
PPP Loan |
|
939 |
|
- |
Proceeds from issue of ordinary shares |
|
2,259 |
|
9,484 |
|
|
|
|
|
|
|
1,933 |
|
8,535 |
|
|
|
|
|
NET INCREASE IN CASH AND CASH EQUIVALENTS |
|
1,555 |
|
1,344 |
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD |
|
1,891 |
|
4,367 |
|
|
|
|
|
Non-cash foreign exchange movement |
|
42 |
|
94 |
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD |
|
3,446 |
|
5,711 |
Notes to the cashflow statement
|
|
|
|
6 month period ended |
|
6 month period ended |
|
|
|
|
£'000 |
|
£'000 |
|
|
|
|
|
|
|
Loss after tax |
(11,141) |
|
(2,382) |
|||
|
|
|
|
|||
Adjustments for: |
|
|
|
|||
Tax |
|
|
|
- |
|
(60) |
Finance costs |
146 |
|
204 |
|||
Amortisation and impairment |
7,821 |
|
853 |
|||
Depreciation of property, plant and equipment |
73 |
|
63 |
|||
Share-based payment charge |
(79) |
|
70 |
|||
Other exceptional costs |
|
|
- |
|
1,639 |
|
|
|
|
|
|||
Operating cash flows before movements in working capital |
(3,181) |
|
387 |
|||
|
|
|
|
|||
Movement in receivables |
978 |
|
666 |
|||
Movement in payables |
2,100 |
|
(569) |
|||
|
|
|
|
|
|
|
CASH FLOWS USED IN OPERATIONS |
|
(103) |
|
484 |
||
|
|
|
|
|
|
|
Notes to the accounts
1. General information
The financial information set out above does not constitute the Company's statutory accounts for the 6-month period ended
2. Accounting policies
Basis of preparation
The financial information presented in this announcement has been prepared in accordance with the recognition and measurement requirements of EU Endorsed International Financial Reporting Standards and IFRIC interpretations ("IFRS") and the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention.
The principal accounting policies adopted in the preparation of the financial information in this announcement are unchanged from those used in the Company's financial statements for the year ended
Going concern
The directors are satisfied that the Group has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly, they continue to adopt the going concern basis in preparing the condensed financial statements.
3. Revenue and segmental analysis
For executive management purposes, the business has three reportable segments being the Bonhill
|
6 month period ended |
|
6 month period ended |
|
£'000 |
|
£'000 |
|
|
|
|
Analysis of revenue by core propositions |
|
|
|
|
|
|
|
Business information |
5,345 |
|
6,100 |
Live Events |
1,779 |
|
4,258 |
Data and Insight |
636 |
|
385 |
Total |
7,760 |
|
10,743 |
|
6 month period ended 30 June 2020 |
|
6 month period ended 30 June 2019 |
Analysis by country |
£'000 |
|
£'000 |
|
|
|
|
|
3,380 |
|
2,604 |
|
3,825 |
|
7,098 |
|
108 |
|
606 |
|
447 |
|
435 |
Total |
7,760 |
|
10,743 |
6 months ended |
Bonhill |
InvestmentNews |
Last Word Media |
Total |
30 June 2020 |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|
£'000 |
£'000 |
£'000 |
£'000 |
Reportable segmental income statement |
|
|
|
|
Revenue |
1,211 |
3,827 |
2,722 |
7,760 |
Gross profit |
816 |
3,171 |
2,049 |
6,036 |
Operating loss |
(2,052) |
(1,442) |
(908) |
(4,403) |
Loss before tax |
(1,653) |
(1,977) |
(918) |
(4,549) |
|
|
|
|
|
6 months ended 30 June 2019 |
Bonhill |
InvestmentNews |
Last Word Media |
Total |
|
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|
£'000 |
£'000 |
£'000 |
£'000 |
Reportable segmental income statement |
|
|
|
|
Revenue |
2,067 |
6,804 |
1,872 |
10,743 |
Gross profit |
959 |
4,484 |
1,319 |
6,762 |
Operating profit /(loss) |
(2,386) |
292 |
(144) |
(2,238) |
Profit/(loss) before tax |
(2,387) |
124 |
(119) |
(2,382) |
4. Earnings per share
Basic earnings per share is calculated by dividing the loss attributable to owners of the parent by the weighted average number of ordinary shares in issue during the period.
Based on statutory earnings |
6 month period ended 30 June 2020 |
|
6 month period ended 30 June 2019 |
|
£'000 |
|
£'000 |
|
|
|
|
Loss attributable to owners of the parent |
(9,909) |
|
(2,382) |
|
|
|
|
Weighted average number of ordinary shares in issue |
65,513,564 |
|
40,693,032 |
|
|
|
|
Basic loss per share (pence per share) |
(15.13p) |
|
(5.85p) |
|
|
|
|
5. Share capital
Issued and fully paid ordinary share of 1p each
|
Number |
|
£'000 |
|
|
|
|
As at 31 December 2018 |
34,299,978 |
|
343 |
Shares issued during the 6 month period |
14,285,714 |
|
143 |
As at 30 June 2019 and 31 December 2019 |
48,585,692 |
|
486 |
Shares issued during the 6 month period |
50,000,000 |
|
500 |
As at 30 June 2020 |
98,585,692 |
|
986 |
Share capital as at 30 June 2020 amounted to £1.0 million. During the period, the Group issued 50 million shares at nominal value of 1p per share at a consideration of £0.5m.
6. Lease
The Group recognises a right-of-use asset and lease liability under IFRS 16.
|
|
|
|
|
|
Right-of-use asset |
|
|
|
£'000 |
|
Carrying value as at 30 June 2019 |
|
|
|
1,479 |
|
Additions to right-of-use assets |
|
|
|
418 |
|
Amortisation charged |
|
|
|
(385) |
|
Foreign exchange impact of revaluation |
|
|
(19) |
||
Carrying value as at 30 June 2019 |
|
|
|
1,493 |
|
Additions to right-of-use assets |
|
|
|
- |
|
Amortisation charged |
|
|
|
(425) |
|
Foreign exchange impact of revaluation |
|
|
39 |
||
Carrying value as at 30 June 2019 |
|
|
|
1,107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease liability |
|
|
|
|
£'000 |
Carrying value as at 30 June 2019 |
|
|
|
1,549 |
|
Additions to lease liability |
|
|
|
418 |
|
Interest charged |
|
|
|
|
35 |
Repayments made |
|
|
|
(370) |
|
Foreign exchange impact of revaluation |
|
|
(32) |
||
Carrying value as at 31 December 2019 |
|
|
1,600 |
||
Additions to lease liability |
|
|
|
- |
|
Interest charged |
|
|
|
|
28 |
Repayments made |
|
|
|
(463) |
|
Foreign exchange impact of revaluation |
|
|
25 |
||
Carrying value as at 30 June 2020 |
|
|
|
1,190 |
7. Availability
Further copies of this announcement are available on the Company's website, www.bonhillplc.com.
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