REG-M&C Saatchi PLC Final Results - 2008 Prelimin - Part 2
Released : 26/03/2009 07:00
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Part 2 : For preceding part double click [nRn1Z5006P]
- Sharesave options 159 159
- Float options 411 411
- LTIP options 975 975
- Contingent consideration 595 595
Total 58,303 58,303
DILUTED EARNINGS PER SHARE 5.59p 12.09p
M&C SAATCHI PLCNOTES TO THE PRELIMINARY STATEMENTS
YEAR ENDED 31 DECEMBER 2008
4. SEGMENTAL INFORMATION
Segmental analysis is provided by reference to the geographical origin of
business.
Year ended 31 December 2008 UK Asia & Australia America Europe Total
£000 £000 £000 £000 £000
REVENUE 60,349 29,677 4,028 10,329 104,383
OPERATING PROFIT 7,851 1,258 295 1,362 10,766
Add
- Amortisation of intangibles 575 - - - 575
- Impairment of intangibles 1,552 846 - - 2,398
HEADLINE OPERATING PROFIT 9,978 2,104 295 1,362 13,739
Share of result of associates - - - (81) (81)
Net interest 528 118 2 (211) 437
Headline profit before Taxation 10,506 2,222 297 1,070 14,095
Less
- Impairment and amortisation of intangibles (2,127) (846) - - (2,973)
- Impairment of associate - - - (2,400) (2,400)
- Fair value adjustments to minority put option liabilities 1,940 - - - 1,940
- Notional interest on deferred consideration (169) - - - (169)
Total of statutory adjustments (356) (846) - (2,400) (3,602)
Profit before Taxation 10,150 1,376 297 (1,330) 10,493
Taxation (2,692) (872) (104) (236) (3,904)
Profit for the year 7,458 504 193 (1,566) 6,589
Minority interests 241 112 32 183 568
Profit attributable to Equity holders of the Group 7,217 392 161 (1,749) 6,021
Add
- Statutory adjustments above 356 846 - 2,400 3,602
- Deferred tax on impairment and amortisation of acquired (599) - - - (599)
intangibles
Headline profit attributable to Equity holders of the Group 6,974 1,238 161 651 9,024
Headline BASIC EPS 15.05p
M&C SAATCHI PLCNOTES TO THE PRELIMINARY STATEMENTSYEAR ENDED 31 DECEMBER 2008
Year ended 31 December 2007 UK Asia & Australia America Europe Total
£000 £000 £000 £000 £000
Revenue 52,765 24,663 4,132 6,060 87,620
OPERATING PROFIT 7,761 550 581 722 9,614
Add
- Amortisation of intangibles 608 - - - 608
Headline Operating Profit 8,369 550 581 722 10,222
Share of result of associates 25 - - 309 334
Net interest 1,448 10 2 (90) 1,370
Headline profit before Taxation 9,842 560 583 941 11,926
Less
- Amortisation of intangibles (608) - - (53) (661)
- Fair value adjustments to minority put option liabilities (3,052) - - - (3,052)
- Notional interest on deferred consideration (257) - - - (257)
Total of statutory adjustments (3,917) - - (53) (3,970)
Profit before Taxation 5,925 560 583 888 7,956
Taxation (2,833) (368) (207) (122) (3,530)
Profit for the year 3,092 192 376 766 4,426
Minority interests 997 59 67 45 1,168
Profit attributable to Equity holders of the Group 2,095 133 309 721 3,258
Add
- Statutoryadjustments above 3,917 - - 53 3,970
- Deferred tax on amortisation of acquired intangibles (182) - - - (182)
Headline profit attributable to Equity holders of the Group 5,830 133 309 774 7,046
Headline BASIC EPS 12.55p
M&C SAATCHI PLCNOTES TO THE PRELIMINARY STATEMENTS
YEAR ENDED 31 DECEMBER 2008
5. Operating costs
Year ended 31 December 2008 2007
£'000 £'000
Total staff costs 61,913 53,763
Other costs 31,704 24,243
Total operating costs 93,617 78,006
Other costs include:
Goodwill impairment 846 -
Acquired intangibles impairment 1,552 -
Amortisation of intangibles
- Acquired intangibles 575 608
- Capitalised software 75 106
Depreciation of plant and equipment 1,631 1,463
Losses on disposal of fixed assets 15 36
6.Share of associates
Year ended 31 December 2008 2007
£'000 £'000
Share of associates' (loss) / profitbefore taxation (20) 491
Share of associates' taxation (61) (157)
Amortisation of intangibles - (53)
(81) 281
During the year £2,400k of our investment in the associate was impaired (2007:
Nil).
M&C SAATCHI PLC
NOTES TO THE PRELIMINARY STATEMENTS
YEAR ENDED 31 DECEMBER 2008
7. FINANCE INCOME
Year ended 31 December 2008 2007
£'000 £'000
Bank interest receivable 1,247 1,771
Other interest receivable 163 38
Total interest receivable 1,410 1,809
Fair value adjustments to minority shareholder put option 1,940 -
liabilities
Total 3,350 1,809
8. Finance Expense
Year ended 31 December 2008 2007
£'000 £'000
Bank interest chargeable (925) (403)
Interest payable on finance leases (1) (2)
Other interest payable (47) (34)
Total interest payable (973) (439)
Notional interest on contingent consideration (169) (257)
Fair value adjustments to minority shareholder put option - (3,052)
liabilities
Total (1,142) (3,748)
M&C SAATCHI PLCNOTES TO THE PRELIMINARY STATEMENTS
YEAR ENDED 31 DECEMBER 2008
9. Taxation
Year ended 31 December 2008 2007
£'000 £'000
Current taxation
Taxation in the year
- UK 2,990 3,223
- Overseas 1,768 1,119
Withholding taxes payable 12 7
Utilisation of previously unrecognised tax losses (182) (128)
Adjustment for overprovisions in prior periods (144) (138)
Total 4,444 4,083
Deferred taxation
Origination and reversal oftemporary differences (596) (606)
Effect of changes in tax rates 56 53
Total (540) (553)
Total taxation 3,904 3,530
The difference between the actual tax and the standard rate of corporation tax
in the UK applied to profits for the year are as follows:
Year ended 31 December 2008 2007
£'000 £'000
Profitbefore taxation 10,493 7,956
Taxation at UK Corporation tax rate of 28.5% (2007: 30%) (2,991) (2,387)
Tax effect of associates (23) 93
Expenses not deductible for tax (250) (212)
Different tax rates applicablein overseas jurisdictions (89) (93)
Effect of changes in tax rateson deferred tax (56) (53)
Withholding taxes (12) (7)
Utilisation of previously unrecognisedtax losses 182 128
Adjustment for overprovisions in prior periods 144 138
Tax losses for which no deferredtax asset was recognised (222) (145)
Share based incentive chargegreater than value of shares (167) -
Fair value adjustments on minorityshareholder put options 553 (915)
Notional interest of deferred consideration (48) (77)
Impairment of goodwill (925) -
Total taxation 3,904 3,530
M&C SAATCHI PLCNOTES TO THE PRELIMINARY STATEMENTS
YEAR ENDED 31 DECEMBER 2008
9. Dividends
Year ended 31 December 2008 2007
£'000 £'000
2007 final dividend 2.75p (2006 2.43p) 1,658 1,300
2008 interim dividend 0.87p (2007 0.87p) 529 513
2,187 1,813
The directors propose a final dividend of 2.75 pence per share (2007: 2.75
pence per share) payable on 10 July 2009 to shareholders who are on the register
at 12 June 2009. This final dividend, amounting to £1,672k (2007: £1,658k) has
not been recognised as a liability in these preliminary statements.
Dividends relate to the profit of the following years:
Year ended 31 December 2008 2007
£'000 £'000
Interim dividends 529 513
Final dividends 1,672 1,658
Total dividend that relates to the year 2,201 2,171
The headline dividend cover is:
Headline profit after tax attributable to equity shareholders 9,024 7,046
Total dividend that relates to the year 2,201 2,171
Headline dividend cover 4.1 3.2
M&C SAATCHI PLCNOTES TO THE PRELIMINARY STATEMENTS
YEAR ENDED 31 DECEMBER 2008
10. RESERVES
Share capital Share premium Merger reserve Treasury reserve Minority interest put option reserve Foreign exchange reserve Retained earnings Subtotal Minority interests Total
£000 £000 £000 £000 £000 £000 £000 £000 £000 £000
1 January 2007 542 9,618 14,756 (792) (13,318) (371) (1,261) 9,174 576 9,750
Issue of shares for
- acquisitions 55 3,118 5,529 - - - - 8,702 - 8,702
- share save - 22 - - - - - 22 - 22
Exchange rate movements - - - - - 834 - 834 (1) 833
Tax on items taken directly to equity - - - - - (145) - (145) - (145)
Exercise of minority put options - - - - 8,741 - 8,353 17,094 - 17,094
New minority shareholder put options - - - - (2,299) - - (2,299) - (2,299)
Transfer to minority reserves - - - - - - (191) (191) 191 -
Other - - - - - - 275 275 25 300
Equity settled share based payments - - - - - - 432 432 - 432
Dividends - - - - - - (1,813) (1,813) (1,404) (3,217)
Profit for the year - - - - - - 3,258 3,258 1,168 4,426
31 December 2007 597 12,758 20,285 (792) (6,876) 318 9,053 35,343 555 35,898
Issue of shares for acquisitions 18 - 1,925 - - - - 1,943 - 1,943
Repayment of minorityshare capital - - - - - - - - (38) (38)
Exchange rate movements - - - - - 2,242 - 2,242 161 2,403
Tax on items taken directly to equity - - - - - (311) - (311) - (311)
Exercise of minority put options - - - - 2,413 - 2,657 5,070 - 5,070
Transfer to minority reserves - - - - - - (212) (212) 212 -
Transfer of reserves - - (433) - - - 433 - - -
Equity settledshare based payments - - - - - - 104 104 - 104
Dividends - - - - - - (2,187) (2,187) (648) (2,835)
Profit for the year - - - - - - 6,021 6,021 568 6,589
31 December 2008 615 12,758 21,777 (792) (4,463) 2,249 15,869 48,013 810 48,823
M&C SAATCHI PLCNOTES TO THE PRELIMINARY STATEMENTS
YEAR ENDED 31 DECEMBER 2008
11. Cash generated from operations
Year ended 2008 2007
£'000 £'000
Revenue 104,383 87,620
Operating expenses (93,617) (78,006)
Operating Profit 10,766 9,614
Adjustments for:
Depreciation of plant and equipment 1,631 1,463
Loss / (profit) on sale of plant and equipment 15 (36)
Loss / (profit) on sale of intangible assets 5 (2)
Impairment and amortisation on acquired intangible assets 2,127 608
Impairment of goodwill 846 -
Amortisation of capitalised software intangible assets 75 106
Non-cash share based incentive plans 133 432
Operating cash flow before movements in working capital 15,598 12,185
and provisions
Decrease / (increase) in trade and other receivables 17,615 (22,064)
(Decrease) / increase in trade and other payables (18,163) 18,870
Net cash inflow from operating activities 15,050 8,991
M&C SAATCHI PLCNOTES TO THE PRELIMINARY STATEMENTS
YEAR ENDED 31 DECEMBER 2008
12. Cash consumed by acquisitions
Year ended 2008 2007
£'000 £'000
Cash consideration includingcapitalised acquisition costs
2007 Acquisitions:
- M&C Saatchi Berlin Gmbh - (358)
- Talk PR Ltd - (3)
- Clear Ideas Ltd (2,405) (14,508)
- Walker Media Holdings Ltd (acquisition of 19.5%) (5,369) (8,922)
2008 Acquisitions:
- Walker Media Holdings Ltd (acquisition of 5.5%) (3,889) -
- The Immediate Sales Company Ltd (3) -
- Play London Ltd (43) -
- F5 (71) -
(11,780) (23,791)
Less cash and cash equivalents acquired - 776
(11,780) (23,015)
Purchase of associate (Zapping, Spain, 2007 acquisition) (2,376) (1,587)
Total payments made in the year relating to acquisitions (14,156) (24,602)
This information is provided by RNS
The company news service from the London Stock Exchange
END