Adventis Group plc
(‘Adventis’ or ‘the Group’), the specialist multi-media marketing and
advertising agency, today announces its maiden preliminary results for the year
ended 31 December 2004 following the Group’s successful admission to AIM in
July 2004.
KEY POINTS
· Pre-tax profit up 83% at £0.77m (2003 - £0.42m)
· Turnover up 32% at £12.09m (2003 - £9.16m)
· Earnings per share up 29% at 2.20p (2003 - 1.70p)
· Final dividend of 0.40p per share making a total for
the year of 0.85p per share
· Net cash inflow from operating activities £0.67m
· Acquisition of Affiniti (UK) Ltd, a specialised
· Successful launch of Adventis NMG Ltd in August 2004
· Major client wins include the Hub in
Peter Mitchell, Chairman
of Adventis Group plc, commented:
“2004, and particularly our first six months as a publicly quoted
company, has been extremely encouraging with not only a significant rise in
both turnover and profit, but also with the achievement of the early part of
our long-term strategy through the announcement of a significant joint venture
and a major acquisition.
The Group’s strategy at flotation was to expand its marketing services
offering with a strong focus on the property, healthcare and financial services
sectors. We have made significant
progress to this end in the last year through both organic and new venture
growth and we are confident of continuing this through 2005.”
Enquiries:
Charles
Phillpot, Chief Executive Officer Fiona
Mulcahy, Justin Griffiths
Adventis
Group plc Citigate
Dewe Rogerson
Tel:
020 7034 4750 Tel:
020 7638 9571
Paul
Dudley
WH
Ireland Limited
Tel:
020 7397 3225
Chairman’s Statement
This is my first statement as Chairman of Adventis Group plc
having been appointed on 19 April 2004 prior to the flotation on 1 July
2004. 2004, and particularly our first six months as a publicly quoted
company, has been extremely encouraging with not only a significant rise in
both turnover and profit, but also with the achievement of the early part of
our long-term strategy through the announcement of a significant joint venture
and a major acquisition.
It is pleasing to note that, in a year when the management had to
focus on a flotation, both continued successful business performance and long
term strategic development could be achieved.
This is encouraging for our future business plans and reflects the
strength of talent within Adventis.
Today, the Group consists of five operating companies in two
locations employing 70 people providing a broad range of marketing services to
a large range of clients.
The successful launch of Adventis NMG Ltd, as a venture with NMG
Financial Services Consulting Ltd, represents the beginning of our strategy to
offer a full range of services to the financial services industry. The acquisition of Affiniti (UK) Ltd, a
specialised
The Group comprises a talented and commercial team. The past year has been a turning point for
the Group in terms of funding and strategy.
Trading in 2005 has made a positive start and is ahead of last year and
therefore the outlook for 2005 remains encouraging. Our existing businesses continue to perform
well and we look forward to announcing further corporate activity in the near
future.
Peter Mitchell
Chairman
Chief Executive Officer’s
Statement
I am pleased to report a strong set of maiden preliminary results
for the year ended 31 December 2004. Group
billings of £12.09m were up 32% (2003: £9.16m) and pre-tax profit of £0.77m was
up 83% (2003: £0.42m). In addition, we
benefited from healthy margins and strong cash flow.
The earnings per share for 2004 of 2.2p was ahead of the previous
year at 1.7p. The Board is recommending a final dividend of 0.40p
per share, making a total for the year of 0.85p.
The Group operates in a highly
competitive market place. The diversified marketing services industry is highly
labour intensive reflecting the reliance on creative skill and knowledge. There
is a rising demand for specialists in various marketing fields. Our revenues
are generated predominantly in the form of fees for project specific
work. It is against this background that
I am pleased to report results that reflect the hard work of all the team at
Adventis.
Business Strategy
The Group enjoyed a more buoyant market and most areas of the
business were able to generate higher revenues at good margins. Since our admission to AIM on 1 July 2004,
where we raised £2.60m net of expenses for the Group, we have pursued our
business strategy of increasing the market share for our media services in the
residential and commercial property sectors.
Furthermore, we continue to expand the services we provide in our other
target markets, currently comprising the financial services and healthcare
sectors.
Acquisitions and Joint
Ventures
In August 2004, we formed Adventis NMG Ltd as a venture with NMG
Financial Services Consulting Ltd, a highly specialised management consulting
firm, providing a comprehensive range of services to the global financial
industry. The NMG global network has
unrivalled access to financial institutions with clients such as ISIS, Scottish
Widows, Charcol and HBOS and is able to act as a very effective business
introducer.
In early January 2005, we completed the acquisition of Affiniti
(UK) Ltd, a specialised UK healthcare advertising agency with clients such as
Allergan, sanofi pasteur MSD, Chiron Vaccines, Eden Biopharm, Leo Pharma, Napp
and Serono. This acquisition builds on
the foothold Adventis Group already has in this profitable market and is likely
to act as the vehicle for all future healthcare activity.
Operational Review
The following is a summary of activity by business sector for the
year ended 31 December 2004.
Residential Property Marketing Sector
Our residential property marketing sector has a broad base of
clients from international names such as Savills to
Commercial Property Marketing Sector
Our commercial property marketing sector won several major long-term
projects in 2004 such as the Hub in
Media Planning and Buying Sector
Our media planning and buying sector has full NPA (Newspapers
Publishing Association) recognition.
Media broking is highly cash generative and works very much in tandem
with our residential property marketing sector’s creative business. Business volumes continue to grow at good
margins.
Financial Services Sector
The
new venture, Adventis NMG Ltd, which specialises in financial services,
commenced trading in September 2004 and traded profitably for the period ended
31 December 2004. A senior executive
from a similar organisation was recruited and has been successful in exploiting
the many leads generated by Adventis NMG Ltd.
A series of projects were concluded in 2004 and the outlook is positive
for 2005.
Outlook
Since our flotation on AIM, the Group has enjoyed a higher profile
within the industry and national media.
This increased awareness greatly facilitates our mergers and
acquisitions activity.
All staff serving at the time of the flotation participated in a
share option scheme and this has contributed to excellent staff morale and
retention.
Our strong cash flow and balance sheet will assist and help to
support further strategic developments and we continue to explore ways of
growing the Group while ensuring our profit record is maintained.
Charles Phillpot
Chief Executive Officer
Consolidated profit and loss account
Year ended 31 December 2004
|
|
|
Unaudited |
Audited |
|
|
|
2004 |
2003 |
|
|
Notes |
£’000 |
£’000 |
|
|
|
|
|
Turnover
|
2 |
12,087 |
9,159 |
|
|
|
|
|
Operating
Profit
|
2 |
625 |
418 |
|
|
|
|
|
|
Net interest receivable |
|
148 |
1 |
|
|
|
|
|
|
Profit on ordinary
activities before taxation |
|
773 |
419 |
|
|
|
|
|
|
Tax on profit on ordinary
activities |
|
(214) |
(86) |
|
|
|
|
|
|
Profit on ordinary
activities after taxation |
|
559 |
333 |
|
|
|
|
|
|
Minority Interest |
|
(1) |
- |
|
|
|
|
|
|
Profit for the financial
year |
|
558 |
333 |
|
|
|
|
|
|
Dividends |
4 |
(278) |
(297) |
|
|
|
|
|
|
Retained
profit for the financial year |
10 |
280 |
36 |
|
|
|
|
|
Earnings per share
|
|
|
|
|
Basic earnings per ordinary
share |
3 |
2.2p |
1.7p |
|
|
|
|
|
|
Diluted
earnings per ordinary share |
3 |
2.0p |
1.6p |
Balance
sheet
As at 31 December 2004
|
|
|
Group |
Company |
||
|
|
|
Unaudited |
Audited |
Unaudited |
Audited |
|
|
|
2004 |
2003 |
2004 |
2003 |
|
|
Notes |
£’000 |
£’000 |
£’000 |
£’000 |
|
Fixed assets |
|
|
|
|
|
|
Intangible assets |
|
|
|
|
|
|
- goodwill |
|
242 |
259 |
- |
- |
|
- negative goodwill |
|
(42) |
(45) |
- |
- |
|
|
|
200 |
214 |
- |
- |
|
|
|
|
|
|
|
|
Tangible assets |
|
184 |
157 |
175 |
145 |
|
Investments |
|
- |
- |
57 |
57 |
|
|
|
|
|
|
|
|
|
|
384 |
371 |
232 |
202 |
|
Current assets |
|
|
|
|
|
|
Work in progress |
|
5 |
- |
- |
- |
|
Debtors |
6 |
2,218 |
1,972 |
1,235 |
972 |
|
Cash at bank and in hand |
|
3,183 |
501 |
2,766 |
- |
|
|
|
|
|
|
|
|
|
|
5,406 |
2,473 |
4,001 |
972 |
|
Creditors - amounts falling due within one year |
7 |
(1,878) |
(1,808) |
(884) |
(866) |
|
|
|
|
|
|
|
|
Net current assets |
|
3,528 |
665 |
3,117 |
106 |
|
|
|
|
|
|
|
|
Total assets less current liabilities |
|
3,912 |
1,036 |
3,349 |
308 |
|
|
|
|
|
|
|
|
Creditors - amounts falling due after more than one
year |
8 |
(10) |
(7) |
(10) |
(7) |
|
|
|
|
|
|
|
|
Provisions for liabilities and charges |
|
(5) |
(5) |
(5) |
(7) |
|
|
|
|
|
|
|
|
Net assets |
|
3,897 |
1,024 |
3,334 |
294 |
|
|
|
|
|
|
|
|
Capital and reserves |
|
|
|
|
|
|
Called up share capital |
9 |
79 |
50 |
79 |
50 |
|
Share premium account |
10 |
2,563 |
- |
2,563 |
- |
|
Capital redemption reserve |
10 |
200 |
200 |
200 |
200 |
|
Other reserves |
10 |
20 |
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