REG - M&C Saatchi PLC - Final Results - 2009 Preliminary results - Part 2
Released : 25/03/2010 07:00
- Part 2: For the preceeding part double click [ID:nRSY1415Ja]
119 2 - 5 229
Finance costs (274) (65) (16) - (10) - (365)
profit before Taxation 7,020 1,253 2,441 (316) (1,404) 1,294 10,288
Taxation (2,075) (413) (906) 102 (14) (397) (3,703)
Profit after taxation 4,945 840 1,535 (214) (1,418) 897 6,585
Minority interests (80) (226) (194) 24 106 - (370)
Profit attributable to Equity holders of the Group 4,865 614 1,341 (190) (1,312) 897 6,215
Headline BASIC EPS 10.15p
COSTS INCLUDED IN OPERATING PROFIT:
Depreciation (581) (138) (772) (23) (24) (153) (1,691)
Amortisation of software (8) (28) (55) (6) (3) - (100)
Share option charges (216) - (31) (4) - - (251)
Office location London Paris Sydney Melbourne Auckland Wellington LA Sao Paulo Geneva London Amsterdam New York
Berlin Madrid Kuala Lumpur Tokyo Hong Kong
New Delhi Mumbai Sydney
Hong Kong Shanghai
10.15p
COSTS INCLUDED IN OPERATING PROFIT:
Depreciation
(581)
(138)
(772)
(23)
(24)
(153)
(1,691)
Amortisation of software
(8)
(28)
(55)
(6)
(3)
-
(100)
Share option charges
(216)
-
(31)
(4)
-
-
(251)
Office location
London
Paris
Berlin Madrid
Sydney Melbourne Auckland Wellington
Kuala Lumpur
New Delhi Mumbai
Hong Kong Shanghai
LA
Sao Paulo Geneva
Tokyo
London Amsterdam New York
Hong Kong
Sydney
Year Ended UK Europe Asia & Australia America New Offices Clear Total
31 December 2008
£000 £000 £000 £000 £000 £000 £000
REVENUE 52,357 8,727 29,677 3,200 - 10,422 104,383
OPERATING PROFIT EXCLUDING GROUP COSTS 11,259 1,306 2,376 295 - 1,905 17,141
Group costs 3,088 38 273 3 - - 3,402
Operating profit 8,171 1,268 2,103 292 - 1,905 13,739
Share of result of associates - (81) - - - - (81)
Finance income 1,180 45 162 2 - 21 1,410
Finance costs (672) (258) (43) - - - (973)
profit before Taxation 8,679 974 2,222 294 - 1,926 14,095
Taxation (2,730) (209) (871) (103) - (590) (4,503)
Profit after taxation 5,949 765 1,351 191 - 1,336 9,592
Minority interests (240) (182) (114) (32) - - (568)
Profit attributable to Equity holders of the Group 5,709 583 1,237 159 - 1,336 9,024
Headline BASIC EPS 14.62p
COSTS INCLUDED IN OPERATING PROFIT:
Depreciation (605) (106) (726) (25) - (169) (1,631)
Amortisation of software - (23) (46) (6) - - (75)
Share option charges 96 - 36 1 - - 133
Office location London Paris Sydney Melbourne Auckland Wellington LA - London Amsterdam New York Hong Kong
Berlin Kuala Lumpur
Madrid New Delhi Mumbai
Hong Kong Shanghai Bangkok Singapore
COSTS INCLUDED IN OPERATING PROFIT:
Depreciation
(605)
(106)
(726)
(25)
-
(169)
(1,631)
Amortisation of software
-
(23)
(46)
(6)
-
-
(75)
Share option charges
96
-
36
1
-
-
133
Office location
London
Paris
Berlin
Madrid
Sydney Melbourne Auckland Wellington
Kuala Lumpur
New Delhi Mumbai
Hong Kong Shanghai Bangkok Singapore
LA
-
London Amsterdam New York Hong Kong
Segmental income statement translated at 2008 exchange rates
It is normal practice in our industry to provide like for like results. In the year we had not acquired any significant new
businesses therefore the only difference in our like for like results is the impact from movements in exchange rates. Had
our 2009 results been translated at 2008 exchange rate then our results would have been:
Year ended 31 December 2009 UK Europe Asia & Australia America New Offices Clear Total
£000 £000 £000 £000 £000 £000 £000
REVENUE 49,079 8,425 30,065 2,014 800 8,208 98,591
OPERATING PROFIT EXCLUDING GROUP COSTS 10,453 1,169 2,337 (276) (1,355) 1,302 13,630
Group costs 3,252 63 335 3 39 - 3,692
Operating profit 7,201 1,106 2,002 (279) (1,394) 1,302 9,938
Share of result of associates - 57 - - - - 57
Finance income 90 9 109 2 - 5 215
Finance costs (271) (65) (15) - (10) - (361)
profit before Taxation 7,020 1,107 2,096 (277) (1,404) 1,307 9,849
Taxation (2,075) (364) (801) 86 (14) (396) (3,564)
Profit for the Year 4,945 743 1,295 (191) (1,418) 911 6,285
Increase in 2009 results caused by translation differences - 97 240 (23) - (14) 300
profit before Taxation
7,020
1,107
2,096
(277)
(1,404)
1,307
9,849
Taxation
(2,075)
(364)
(801)
86
(14)
(396)
(3,564)
Profit for the Year
4,945
743
1,295
(191)
(1,418)
911
6,285
Increase in 2009 results caused by translation differences
-
97
240
(23)
-
(14)
300
MARKET RISK
2009 2008
Largest client as a % of total revenue % %
Top Client 5.8 6.3
Top 10 36.8 32.9
Top 15 46.3 40.9
Top 30 60.1 57.5
60.1
57.5
M&C SAATCHI PLC
NOTES TO THE PRELIMINARY STATEMENTS
YEAR ENDED 31 DECEMBER 2009
5. Operating costs
Year ended 31 December 2009 2008
£'000 £'000
Total staff costs 66,350 61,913
Other costs 26,907 31,704
Total operating costs 93,257 93,617
Other costs include:
Goodwill impairment - 846
Acquired intangibles impairment - 1,552
Amortisation of intangibles
- Acquired intangibles 159 575
- Capitalised software 100 75
Depreciation of plant and equipment 1,691 1,631
Losses on disposal of fixed assets 2 15
Losses on disposal of intangible assets 23 -
2
15
Losses on disposal of intangible assets
23
-
6. Share of associates
Year ended 31 December 2009 2008
£'000 £'000
Share of associates' (loss) / profit before taxation 112 (20)
Share of associates' taxation (48) (61)
64 (81)
64
(81)
IMPAIRMENT OF ASSOCIATE
During the year £nil of our investment in the associate was impaired (2008: £2,400k).
M&C SAATCHI PLC
NOTES TO THE PRELIMINARY STATEMENTS
YEAR ENDED 31 DECEMBER 2009
7. Finance Income
2009 2008
Year ended 31December £000 £000
Bank interest receivable 203 1,247
Other interest receivable 26 163
Total interest receivable 229 1,410
Fair value adjustments to minority shareholder put option liabilities 157 1,940
Total 386 3,350
Total
386
3,350
8. Finance expense
2009 2008
£000 £000
Finance costs
Bank interest chargeable (350) (925)
Interest payable on finance leases - (1)
Other interest payable (15) (47)
Total interest payable (365) (973)
Notional interest on contingent consideration - (169)
Fair value adjustments to call options (4) -
Total (369) (1,142)
-
Total
(369)
(1,142)
9. Taxation
Year ended 31 December 2009 2008
£'000 £'000
Current taxation
Taxation in the year
- UK 2,176 2,990
- Overseas 1,466 1,768
Withholding taxes payable - 12
Utilisation of previously unrecognised tax losses - (182)
Adjustment for over provisions in prior periods (20) (144)
Total 3,622 4,444
Deferred taxation
Origination and reversal of temporary differences 27 (596)
Effect of changes in tax rates 17 56
Total 44 (540)
Total taxation 3,666 3,904
44
(540)
Total taxation
3,666
3,904
M&C SAATCHI PLC
NOTES TO THE PRELIMINARY STATEMENTS
YEAR ENDED 31 DECEMBER 2009
9. Taxation CONTINUED
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 2009 2008
£'000 £'000
Profit before taxation 10,259 10,493
Taxation at UK Corporation tax rate of 28% (2008: 28.5%) (2,873) (2,991)
Tax effect of associates 18 (23)
Expenses not deductible for tax (272) (250)
Different tax rates applicable in overseas jurisdictions (30) (89)
Effect of changes in tax rates on deferred tax (17) (56)
Withholding taxes - (12)
Utilisation of previously unrecognised tax losses - 182
Adjustment for over provisions in prior periods 20 144
Tax losses for which no deferred tax asset was recognised (580) (222)
Share based incentive charge greater than value of shares 30 (167)
Fair value adjustments on minority shareholder put options 44 553
Notional interest of deferred consideration - (48)
Loss on disposal of intangible asset (6) -
Impairment of goodwill - (925)
Total taxation (3,666) (3,904)
(6)
-
Impairment of goodwill
-
(925)
Total taxation
(3,666)
(3,904)
10. Dividends
Year ended 31 December 2009 2008
£'000 £'000
2008 final dividend 2.75p (2007 2.75p) 1,683 1,658
2009 interim dividend 0.87p (2008 0.87p) 536 529
2,219 2,187
2,219
2,187
An additional 2009 interim dividend of 2.75p totalling £1,692k will be paid 1 April 2010. No final dividend is proposed.
Dividends relate to the profit of the following years:
Year ended 31 December 2009 2008
£'000 £'000
First interim dividends 536 529
Second interim dividend 1,692 -
Final dividends - 1,683
Total dividend that relates to the year 2,228 2,212
The headline dividend cover is:
Headline profit after tax attributable to equity shareholders 6,215 9,024
Total dividend that relates to the year 2,228 2,212
Headline dividend cover 2.8 4.1
Headline dividend cover is calculated by taking headline profit after tax attributable to equity shareholders and dividing
it by the total dividends that relate to that year's profits. The Group seeks to maintain a long term headline dividend
cover of between 3 and 4.
M&C SAATCHI PLC
NOTES TO THE PRELIMINARY STATEMENTS
YEAR ENDED 31 DECEMBER 2009
11. Cash generated from operations
Year ended 31 December 2009 2008
£000 £000
Revenue 103,435 104,383
Operating expenses (93,257) (93,617)
Operating Profit 10,178 10,766
Adjustments for:
Depreciation of plant and equipment 1,691 1,631
Losses on sale of plant and equipment 2 15
Loss on sale of intangible assets - 5
Impairment and amortisation on acquired intangible assets 233 2,127
Impairment of goodwill - 846
Loss on disposal of intangible 23 -
Amortisation of capitalised software intangible assets 100 75
Non-cash share based incentive plans 251 133
Operating cash flow before movements in working capital and provisions 12,478 15,598
Decrease in trade and other receivables 7,217 17,615
Decrease in trade and other payables (2,724) (18,163)
Net cash inflow from operating activities 16,971 15,050
Net cash inflow from operating activities
16,971
15,050
M&C SAATCHI PLC
NOTES TO THE PRELIMINARY STATEMENTS
YEAR ENDED 31 DECEMBER 2009
12. Cash consumed by acquisitions
Year ended 31 December 2009 2008
£000 £000
Initial cash consideration
- Clear Ideas Ltd - (2,405)
- Walker Media Holdings Ltd - (9,258)
- M&C Saatchi Export Ltd (formerly The Immediate Sales Ltd) - (3)
- Play London Ltd (43)
- FCINQ SAS (107) (71)
- Talk PR Ltd (58) -
- M&C Saatchi Sport & Entertainment Ltd (171) -
- M&C Saatchi/Insight Pesquisa & Planejamento Ltda (82) -
- M&C Saatchi Berlin Gmbh (109) -
(527) (11,780)
Cash and cash equivalents acquired - -
(527) (11,780)
Purchase of associate (Zapping, Spain) (9) (2,376)
Total payments made in the year relating to acquisitions (536) (14,156)
(9)
(2,376)
Total payments made in the year relating to acquisitions
(536)
(14,156)
M&C SAATCHI PLC
NOTES TO THE PRELIMINARY STATEMENTS
YEAR ENDED 31 DECEMBER 2009
13. Minority shareholder put option liabilities
When the Group sets up new subsidiary businesses with partners, the minority partners acquire the right to a put option.
The put options give the minorities a right to exchange their minority holdings in the subsidiary into shares in M&C
Saatchi Plc or cash (as per the agreement).
Year ended 31 December 2009 2008
£000 £000
Amounts falling within one year
- Cash (419) (675)
- Equity (670) (1,206)
(1,089) (1,881)
Amounts falling after one year
- Cash (379) (422)
- Equity (2,455) (1,394)
(2,834) (1,816)
(3,923) (3,697)
(1,816)
(3,923)
(3,697)
Year ended 31 December 2009 2008
£000 £000
At 1 January (3,697) (10,545)
Exchange difference (84) (29)
Additions (1,736) (654)
Exercises 939 5,591
Termination 498 -
Income statement charge due to
- Change in estimates 244 1,526
- Change in share price (59) 1,182
- Time (28) (768)
At 31 December (3,923) (3,697)
(3,923)
(3,697)
Company Country of incorporation Put options are exercisable from % of Company shares exchangeable
Talk PR Ltd UK 2009 5%
M&C Saatchi Export Ltd UK 2009 3%
M&C Saatchi LA Inc USA 2009 16%
M&C Saatchi Marketing Arts Ltd UK 2009 50%
M&C Saatchi (M) SDN BHD Malaysia 2009 20%
M&C Saatchi Sports and Entertainment Ltd UK 2009 3%
Provenance Communication Ltd UK 2009 30%
Influence Communications Limited UK 2009 5%
M&C Saatchi Europe Holdings Ltd UK 2010 4%
M&C Saatchi German Holdings Ltd UK 2010 4%
M&C Saatchi GAD SAS France 2011 48%
M&C Saatchi Corporate SAS France 2011 13%
M&C Saatchi Communications Pty Ltd India 2011 38%
M&C Saatchi Berlin GmbH Germany 2011 15%
Talk PR Audience Ltd UK 2011 17%
FCINQ SAS France 2013 18%
M&C Saatchi/Insight Pesquisa & Planejamento Ltda Brazil 2014 40%
M&C Saatchi Sport & Entertainment LLP USA 2014 35%
M&C Saatchi (Switzerland) SA Switzerland 2015 40%
2013
18%
M&C Saatchi/Insight Pesquisa & Planejamento Ltda
Brazil
2014
40%
M&C Saatchi Sport & Entertainment LLP
USA
2014
35%
M&C Saatchi (Switzerland) SA
Switzerland
2015
40%
This information is provided by RNS
The company news service from the London Stock Exchange