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Final Results Presentation Year ended 30 April 2012 July 2012. an Ebiquity company. Review of the year. Year ended 30 April 2012. Strong year on year performance. All profit and margin numbers are underlying (before highlighted items). Revenue growth Total revenue of £52.9m up 20%
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Final Results PresentationYear ended 30 April 2012July 2012 an Ebiquity company
Change sub heading - via *View* / HEADER & FOOTER Review of the year Year ended 30 April 2012
Strong year on year performance Profit and earnings growth in line with expectations All profit and margin numbers are underlying (before highlighted items) Revenue growth Total revenue of £52.9m up 20% Operating profit growth Total operating profit of £8.2m up 55% Organic operating profit up 35% Margin and earnings growth Operating margin up from 12.0% to 15.5% Underlying diluted EPS up 23% to 7.4p
Business growth International expansion and broadened Ebiquity offering Development into social media and brand reputation Echo Research Russian media analytics Joined Up Media Company Australian media analytics Faulkner Media Management Expanded international presence Fairbrother Lenz Eley
Change sub heading - via *View* / HEADER & FOOTER 5 year review Taking 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
5 year revenue growth £52.9m £k £17.2m
5 year underlying operating profit growth £8.2m £k £2.0m
5 year underlying diluted EPS growth 7.4p 4.3p pence
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
5 key factors driving importance of the market Growing worldwide demand for independent marketing and media performance measurement Proliferation of marketing and media channels and the impact of digital media distribution Rise of user-generated content such as social media and blogs, which have lead to the increasing empowerment of consumers Challenges of multi-channel marketing, and the burgeoning need for the measurement of marketing performance Growth in available data that can provide clients with greater insight into the effectiveness of their marketing programmes Consolidation and globalisation of the marketing and advertising industry as it relates to brand owners
Financial Summary Year ended 30 April 2012
Year on year revenue analysis Revenue increase of 20% £k
Revenue from current year acquisitions Results consolidated from date of control £k Both columns are year ended 30 April 2012
Revenue analysis by segment Strong shift towards Analytics business Analytics organic growth 9% Analytics acq’n p-f growth 8%
Pro forma continuing revenue analysis Continuing organic revenue plus pro forma acquisitions £k
Gross margins Positive impact of synergy release and disposal of underperforming business 2012 2011 53% 61% 54% Analytics 61% 51% 57% Platform 57% 56% 56% Total Total gross profit £29,898k (2011: £24,799k)
Year on year underlying operating profit analysis Positive impact of synergy release, acquisitions and disposal of underperforming business £k
Underlying margins Positive impact of synergy release and disposal of underperforming business 2011 2012 18.0% 14.6% EBITDA 15.5% 12.0% Operating profit (EBIT)
Highlighted items – administration expenses Low level of integration costs £k £6,546k £4,607k 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).
Profit before tax and EPS Strong growth in underlying profit and EPS +55% +59% +23%
Financing analysis £11m of available facility…comfortably in line with all banking covenants Gross debt £k ¹EBITDA based on 12m historic pro forma
Strong year on year performance Profit and earnings growth in line with expectations All profit and margin numbers are underlying (before highlighted items) Revenue growth Total revenue of £52.9m up 20% Operating profit growth Total operating profit of £8.2m up 55% Organic operating profit up 35% Margin and earnings growth Operating margin up from 12.0% to 15.5% Underlying diluted EPS up 23% to 7.4p
Change sub heading - via *View* / HEADER & FOOTER Outlook 2012/13 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
Financial Appendices Year ended 30 April 2012
Appendix: Acquisitions during the year Appendix: Acquisitions during the period
Appendix: Summary of new banking facility In place from March 2012 on 4 year term * £5.4m in 2012/13, £1.7m in 2013/14 and £0.1m in 2014/15 All numbers are approximate due to foreign exchange fluctuations £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: