10 April 2008

 

Adventis Group plc (“Adventis Group plc” or the “Company”)

 

 

Preliminary results, for the year ended 31 December 2007

 

Adventis Group plc (“ATG”), the AIM quoted multimedia marketing services and advertising agency, is pleased to announce record results for the year ended 31 December 2007. The results represent the Company’s third full trading year since the admission of the Company’s shares to AIM.

 

Financial Highlights

·         Group billings (Turnover): £47.1m, up 33% (2006: £35.5m)

·         Pre-tax profit: £2.64m, up 47% (2006: £1.80m)

·         Pre-tax profit margin remains in excess of 20%

·         Earnings per share: 4.33p, up 15.2% (2006: 3.76p)

·         Recommended final dividend up 5% to 0.48p (2006: 0.46p); total up 5% to 0.71p (2006: 0.68p)

·         Net cash of £3.74m at year end (2006: £2.46m)

 

Operational Highlights

·         The sole newly acquired business, Leapfrog Medical Communications Limited contributed 5% to Group billings and made a first time profit contribution

·         Billings relating to existing businesses grew by 26%

·         Client wins across all our sectors

 

Prospects

 

Said Charles Phillpot, Chief Executive of Adventis Group plc:

 

“2007 saw significant consolidation of Group assets and their reorganisation into structures that more fully exploit their synergies. Leapfrog Medical Communications Limited made an immediate contribution in its first year of trading as part of the Group and we continue to consolidate our position in our market sectors.

 

The first quarter results indicate that the Group as a whole is ahead of target and ahead of last year.  Visibility for the year ahead is generally good and overall we anticipate our clients’ marketing expenditure continuing at a similar or greater level to the prior year.  Cost controls remain paramount and we will continue to be vigilant especially as economic conditions tighten. We remain open to, but very selective about, acquisition opportunities in each market sector.”

 

 

 

Enquiries:

 

Adventis Group Plc                                                     

Charles Phillpot, CEO                                                    Tel: 020 7034 4750

Peter Linnell, Finance Director                                        Tel: 020 7034 4795

 

Adventis Group plc Financial PR                                                

Chris Steele                                                                  Tel: 020 7034 4759   

Tarquin Edwards                                                            Tel: 020 7034 4758

                                                                                     

Arbuthnot Securities                                                   

Tom Griffiths                                                                  Tel: 020 7012 2000

 

 

 

 

 

Notes to Editors

 

Adventis Group plc’s strategy is to focus its marketing and media buying services on the healthcare, financial services and property sectors, in which it has the opportunity to build significant market positions.

 

There are three main strands to Adventis Group plc’ strategy to develop the business:

 

 

Management intends to achieve these objectives through a mix of organic development, acquisitions and by creating structures to attract new senior people with proven revenue earning ability and appropriate sector expertise.

 

 

 

Chairman’s statement for the year ended 31 December 2007

 

2007 proved to be another excellent year for Adventis Group plc with significant advances across key financial metrics – Turnover + 33%, profit before tax (“PBT”) + 47% and earnings per share (“EPS”) +15%. This strong growth continues the Company’s record of improved financial performance since its listing almost four years ago.

 

Particularly encouraging has been the profitable expansion of our established businesses, built through acquisition and organic growth between 2004 and 2006. This was added to, very positively in 2007, by the acquisition of Leapfrog Medical Communications Limited which has greatly enhanced our total healthcare offering.

 

2007 saw increasing benefits across the Group with the consolidation of leading parts of our business in healthcare marketing, media planning and buying and property marketing. This greater integration in our main business sectors is delivering an improved service to our clients and increasing financial benefits to the Company. In 2007, this was supplemented by growth in our financial services sector and our fast developing digital marketing business, both of which promise well for the future. Our financial PR business has also continued to consolidate its position in the market.

 

A further very important development in this consolidation process was the opening, in mid-2007, of our new office in Beaconsfield, bringing together our various healthcare businesses and re-branded as Adventis Group plc Health.

 

The continuing strong progress made in 2007 affirms our ongoing focus on growth in specific sectors of marketing services where our expertise lies, while seeking to reinforce our established business with selective acquisitions. This will continue and our strong balance sheet means Adventis Group plc is well placed to pursue such acquisition opportunities as they present themselves.

 

In line with our progressive dividend policy, the Board is recommending a 5% increase in the final dividend to 0.484p per share which will be put to the Annual General Meeting for approval.

 

To have achieved the excellent results of 2007 would not have been possible without the talented efforts and commitment of almost 150 staff across the various Adventis Group plc companies. The Board offers its thanks and appreciation to all of them.

 

2008 has started well, but the Board recognises the more volatile and uncertain economic climate in which all businesses are operating. Nonetheless, we believe Adventis Group plc’s operational strengths, financial soundness and high quality client service will enable it to continue to progress strongly through this year and beyond.

 

On a personal note, I have been Chairman of Adventis Group plc for approximately four years.  I informed my Board colleagues some time ago that I would be seeking to retire as a director during the next year, to enable me to pursue new interests. A process to appoint a new Chairman is under way.  A further announcement will be made in due course.

 

 

 

Peter Mitchell

Chairman

Chief Executive Officer’s review

 

I am pleased to report a strong set of results for the year ended 31 December 2007, with record levels of billings and profits, both organically across all of our businesses and through acquisitions. Group turnover of £47.1m was up 33% (2006: £35.5m); gross profit of £11.7m was up 38% (2006: £8.5m), and pre-tax profit of £2.64m was up 47% (2006: £1.80m). This represents the fourth successive year of significantly increased billings and profits and the Company continues to benefit from healthy margins and strong cash flow. 

 

The earnings per share for 2007, including acquisitions were 4.33p, which compares with 3.76p for the previous year, an increase of 15%.

 

Dividend

 

The Board is recommending an increased final dividend of 0.48p per share, making a total for the year of 0.71p.  This is in line with our progressive dividend policy and reflects our confidence in the business going forward, especially our continued ability to translate revenue growth into cash.  Net cash as at 31 December 2007 was £3.74m, and the Company continues to be cash generative and has a strong balance sheet.

 

Market Overview

 

The Company was regrouped into five business divisions in 2007 covering Health, Property, Financial, Media and PR.  With the addition of Adventis Digital, offering a full range of digital service to all group clients, and Adventis Group plc Integrated, offering direct marketing services, the Company now has seven divisions.  This re-organisation has enabled us to exploit further synergies and economies leading to business growth and improved cost control.

 

Each of our business units enjoyed continued profitability in 2007 and their management was structured to exploit the considerable depth of skills to the full.  Retaining the services of key directors and staff continues to be an issue in the marketing services industry due to its highly labour intensive nature.  Our policy of offering competitive packages with an element of profit share has delivered a high quality and stable senior team.  It is in this environment of consolidation that I am pleased to report results that reflect the hard work of all the team at Adventis Group plc.

 

Business Strategy

 

Our rapid growth has not been at the expense of either our cash position or operating margins.  The Board intends to continue to pursue growth on a similar scale, but retain the same level of checks and balances.  We continue to assess other market sectors with a view to acquiring operations that both match our current performance and complement our existing business offering.  The drive for an increase in scale will be matched only by the focus on overall business performance.

 

Acquisition

 

In February 2007, the Group announced the acquisition of Leapfrog Medical Communications Limited.  This strategic purchase of one of the best medical education service providers was seen as a vital asset to our healthcare operation, as pharmaceutical companies demand a fully integrated marketing offering.

 

It remains our intention to be extremely selective in our M&A activity and the Board will only sanction purchases that meet our strict internal criteria.

 

Operational Review

 

The following is a summary of activity by business sector for the year ended 31 December 2007.

 

 

 

 

Healthcare Sector

 

The Group now has a substantial presence in the Healthcare sector through its two creative agencies, Affiniti and Roundhouse.  Together with Leapfrog Communications, a medical education specialist, the three business units have been combined to create Adventis Health, a specialist MedComms agency, offering innovative and dynamic business solutions to the pharmaceutical industry. With an impressive list of blue chip clients, Adventis Health is in a leading position to explore new generation concepts, such as digital media and interactive customer generated programmes.

 

Adventis Health now occupies new premises at Adventis House in Beaconsfield, with a satellite office in Hertfordshire.

 

Financial Services Sector

 

Adventis Group plc NMG grew significantly in 2007.  A series of large scale projects were concluded for clients, such as Foresters Friendly Society, Just Retirement, Cardiff Pinnacle, Equity Insurance Group and Reita. The outlook for further such projects from similar clients is positive.  The integration of digital projects increased and the range of services was enhanced following key senior appointments in digital and creative roles.

 

Property Marketing Sector

 

We continued to serve a number of clients during the year across the residential property spectrum, such as Savills, Galliard Homes, Devington Homes and Grove Manor Homes.  We were also instructed by leading registered social landlords, including Places for People, Home Group, Genesis Housing Group and London & Quadrant.

 

The year also presented several opportunities in the commercial property market. New business wins included The Winston Group, Oakhurst Properties, Ahli United Bank, Sunlight Property Finance, Greenhills, Mckay Securities, Scottish Widows Investment, Target Follow, The Blackstone Group, Protego Real Estate Investments, Davis Coffer Lyons, EPF Group and Sackville Properties.

 

Media Planning and Buying Sector

 

Our three media planning and buying companies, Premium Media, Adgenda Media and Adventis Group plc Coltman, represent a significant force in the property and financial sector. Their combined billings account for around the UK’s 30th largest buying point.  They have full NPA (Newspapers Publishing Association) and TV recognitions, enjoying favourable commercial terms with media owners.  The specialist media services that we offer work very much in tandem with our creative businesses.  Business volumes continue to grow at good margins for this industry. Account wins during 2007 included Brit Insurance, Partnership Assurance, SPA ETF’s, China Travel Service, St James Homes, Weston Homes, Shepherds Bush Housing Group and St Modwen Plc.

 

Outlook

 

The turbulence of the global financial markets has permeated the economy overall, but

the first quarter results indicate that the Group as a whole is ahead of target and ahead of last year. 

 

Visibility for the year ahead is generally good and overall we anticipate our clients marketing expenditure continuing at a similar or greater level to the prior year.  Cost controls remain paramount and we will continue to be vigilant especially as economic conditions tighten.

 

We continue to raise our profile in our chosen market sectors and consider suitable acquisition opportunities. I am confident that our growth and operating efficiency will continue in 2008.

 

Charles Phillpot

Chief Executive Officer

 

 

Consolidated income statement for the year ended 31 December 2007

 

 

 

 

 

 

2007

 

2006

 

 

 

Notes

 

£'000

 

£'000

Turnover

 

 

 

 

 

 

 

Continuing operations

 

 

 

44,788

 

27,973

Acquisitions

 

 

 

 

2,288

 

7,556

 

 

 

 

 

47,076

 

35,529

Operating profit

 

 

 

 

 

 

Continuing operations

 

 

 

2,116

 

1,221

Acquisitions

 

 

 

 

310

 

451

Profit on ordinary activities before interest

 

 

2,426

 

1,672

 

 

 

 

 

 

 

 

Investment revenue

 

 

 

226

 

130

Finance costs

 

   

 

(15)

 

(2)

 

 

 

 

 

 

 

 

Profit on ordinary activities before taxation

 

 

2,637

 

1,800

 

 

 

 

 

 

 

 

Taxation on profit on ordinary activities

 3

 

(832)

 

(467)

 

 

 

 

 

 

 

 

Profit for the financial year

 

 

 

1,805

 

1,333

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

Equity holders of the parent

 

 

1,756

 

1,316

Minority interest

 

 

 

49

 

17

 

 

 

 

 

 

 

 

Profit for the financial year

 

 

 

1,805

 

1,333

 

 

 

 

 

 

 

 

Earnings per share ("EPS")

5

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

 

 

 

 

Average number of shares in issue

 

 

40,580,636

 

35,007,794

EPS (pence)

 

 

 

 

4.33

 

3.76

Fully diluted earnings per share

 

 

 

 

 

Fully diluted average number of shares in issue

 

42,654,944

 

36,066,998

EPS (pence)

 

 

 

 

4.12

 

3.65

 

 

 

 

 

 

 

 

The Group's results derive entirely from continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated balance sheet as at 31 December 2007

 

 

 

 

 

2007

 

2006

 

 

 

 

Notes

£'000

 

£'000

 

 

ASSETS

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

Property, plant and equipment

 

 

531

 

259

 

 

Goodwill and other intangible assets

 

6 

11,126

 

8,273

 

 

Deferred tax asset

 

 

143

 

164

 

 

 

 

 

11,800

 

8,696

 

 

Current assets

 

 

 

 

 

 

 

Work in progress

 

 

104

 

293

 

 

Trade and other receivables

 

 

7,840

 

6,590

 

 

Cash and cash equivalents

 

 

3,740

 

2,464

 

 

 

 

 

11,684

 

9,347

 

 

Total assets

 

 

23,484

 

18,043

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

Capital and reserves

 

 

 

 

 

 

 

Share capital

 

 

104

 

96

 

 

Share premium account

 

 

6,168

 

4,789

 

 

Treasury stock

 

 

(10)

 

0

 

 

Capital redemption reserve

 

 

200

 

200

 

 

Other reserves

 

 

20

 

20

 

 

Share based payments reserve

 

 

96

 

43

 

 

Retained earnings

 

 

4,506

 

3,036

 

 

 

 

 

11,084

 

8,184

 

 

Minority interest

 

 

67

 

18

 

 

Total equity

 

 

11,151

 

8,202

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

Obligations under finance leases - due in more than

 

 

 

 

 

 

one year

 

 

10

 

7

 

 

Provisions for other liabilities and charges

 

10

 

4

 

 

Deferred consideration

 

 

2,922

 

3,400

 

 

 

 

 

2,942

 

3,411

 

 

Current liabilities

 

 

 

 

 

 

 

Trade and other payables

 

 

6,423

 

4,371

 

 

Current income tax liabilities

 

 

945

 

572

 

 

Obligations under finance leases - due in less than

 

 

 

 

 

 

one year

 

 

4

 

5

 

 

Deferred consideration

 

 

2,019

 

1,482

 

 

 

 

 

9,391

 

6,430

 

 

Total liabilities

 

 

12,333

 

9,841

 

 

Total equity and liabilities

 

 

23,484

 

18,043

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated statement of changes in equity for the year ended 31 December 2007

 

 

 

 

Share

Share

Capital

Minority

Treasury

Share based

Retained

Total

 

 

capital

premium

reserves

Interests

stock

transactions

earnings

 

 

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

 

Balance 31 December 2005

81

2,862

220

47

-

23

1,892

5,125

 

 

 

 

 

 

 

 

 

 

Changes in equity for 2006

 

 

 

 

 

 

 

 

Profit for the year

-

-

-

-

-

-

1,333

1,333

Dividends paid

-

-

-

-

-

-

(218)

(218)

Minority interests

-

-

-

17

-

-

(17)

0

Adjustment

 

-

-

-

(46)

-

-

46

0

Recognised earnings

-

-

-

(29)

-

-

1,144

1,115

for the year

 

 

 

 

 

 

 

 

 

 

Issue of share capital

15

2,015

-

-

-

-

-

2,030

Cost of share issue

-

(88)

-

-

-

-

-

(88)

Share based transactions

-

-

-

-

-

20

-

20

 

 

 

 

 

 

 

 

 

 

Balance 31 December 2006

96

4,789

220

18

-

43

3,036

8,202

 

 

 

 

 

 

 

 

 

 

Changes in equity for 2007

 

 

 

 

 

 

 

 

Profit for the year

-

-

-

-

-

-

1,805

1,805

Dividends paid

-

-

-

-

-

-

(285)

(285)

Minority interests

-

-

-

49

-

-

(49)

0

Recognised earnings

-

-

-

49

-

-

1,471

1,520

for the year

 

 

 

 

 

 

 

 

 

 

Issue of share capital

8

1,499

-

-

-

-

-

1,507

Cost of share issue

 

(120)

-

-

-

-

-

(120)

Share based transactions

-

-

-

-

-

53

-

53

EBT holding

 

-

-

-

-

(10)

-

-

(10)

 

 

 

 

 

 

 

 

 

 

Balance 31 December 2007

104

6,168

220

67

(10)

96

4,506

11,151

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated cash flow statement for the year ended 31 December 2007

 

 

 

 

 

 

2007

 

2006

 

 

 

 

£'000

 

£'000

Cash flows from operating activities

 

 

 

 

Profit from operations

 

 

2,426

 

1,672

 

 

 

 

 

 

 

Adjustments for:

 

 

 

 

 

Amortisation of investments

 

 

50

 

25

Share based transactions

 

 

53

 

20

Depreciation on fixtures and equipment

 

136

 

80

 

 

 

 

 

 

 

Operating cash flows before movement in working capital

 

2,665

 

1,797

 

 

 

 

 

 

 

Increase /(decrease) in work in progress

 

189

 

(65)

Increase in receivables

 

 

(262)

 

(993)

Increase in payables

 

 

1,183

 

133

 

 

 

 

 

 

 

Cash generated by operations

 

3,775

 

872

 

 

 

 

 

 

 

Corporation tax paid

 

 

(701)

 

(436)

Interest paid

 

 

 

(19)

 

(2)

 

 

 

 

 

 

 

Net cash from operating activities

 

3,055

 

434

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Interest received

 

 

226

 

130

Purchase of property, plant & equipment

 

(475)

 

(128)

Purchase of other investments

 

0

 

(125)

Acquisition of subsidiaries

 

 

(1,561)

 

(1,230)

 

 

 

 

 

 

 

Net cash used in investment activities

 

(1,810)

 

(1,353)

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Dividends paid

 

 

(285)

 

(218)

Repayments of obligations under finance leases

 

0

 

(3)

Proceeds of issuing share capital

 

316

 

1,019

 

 

 

 

 

 

 

Net cash from financing activities

 

31

 

798

 

Net increase/(decrease) in cash and cash equivalents

 

1,276

 

(121)

 

 

 

 

 

 

 

Cash and cash equivalents at the beginning of the

 

 

 

 

period

 

 

 

2,464

 

2,585

 

 

 

 

 

 

 

Cash and cash equivalents at the end of the period

 

3,740

 

2,464

 

 
Notes to the financial statements

For the year ended 31 December 2007

 

1.             Basis of preparation

The financial information set out in this announcement does not constitute the Company’s statutory accounts for the years ended 31 December 2007 and 2006. Except as shown below, the financial information for the year ended 31 December 2007 has been prepared using the accounting policies which are consistent with those adopted in the audited accounts for the year ended 31 December 2006. The financial information for the year ended 31 December 2006 is derived from the statutory accounts for that year, which have been delivered to the Registrar of Companies. The auditors have reported on the 2006 accounts; their report was unqualified and did not contain a statement under section 237 (2) or (3) of the Companies Act 1985. The auditors have yet to sign their report on the 2007 accounts. The statutory accounts for the year ended 31 December 2007 will be finalised on the basis of the financial information presented by the Directors in this preliminary announcement and will be delivered to the Registrar of Companies following the Company’s Annual General Meeting. The financial information set out in this announcement was approved by the Board of Directors on 9 April 2008.

 

2.             Summary of significant accounting policies

 

Basis of accounting

The 2007 financial statements are the group’s third consolidated financial statements prepared under International Financial Reporting and Accounting Standards, with a transition date of 1 January 2004. The financial statements have also been prepared in accordance with International Financial Reporting and Accounting Standards (“IFRSs”) adopted for use by the European Union.

 

The financial statements have been prepared on the going concern basis.

 

                Basis of consolidation

The consolidated financial statements incorporate the financial statements of the company and enterprises controlled by the company (its subsidiaries) made up to 31 December each year. Control is achieved where the company has the power to govern the financial and operating policies of a subsidiary.

 

Minority interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Minority interests consist of the amount of those interests at the date of the original business combination and the minority’s share of changes in equity since the date of the combination. Losses applicable to the minority in excess of the minority’s interest in the subsidiary’s equity are allocated against the interests of the group except to the extent that the minority has a binding obligation and is able to make additional investment to cover the losses.

 

The results of subsidiaries acquired or disposed of during the period are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate.

 

All intra-group transactions and balances are eliminated on consolidation.

 

Taxation

                The tax charge represents the sum of current and deferred tax.

 

                Current tax payable is based on taxable profits for the year. Taxable profits differ from net profits as reported in the income statement because it excludes items that are taxable or deductible in other years and items that are not taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted at the balance sheet date.

 

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the liability method. Deferred tax liabilities are recognised for all temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which temporary differences can be utilised.

 

 

 

Notes to the financial statements

 For the year ended 31 December 2007

 

2. Summary of significant accounting policies

 

Taxation - continued

 

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

 

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability or the asset is realised.

 

Employee Benefit Trust

In accordance with SIC 12 “Consolidation – special purpose entities”, the Company includes the assets and liabilities of that trust within its consolidated balance sheet. In the event of the winding up of the Company, neither the shareholders nor the creditors would be entitled to the assets of the employee benefit trust.

 

Investment in own shares held in connection with the Group’s employee share schemes are deducted from the shareholders’ funds in accordance with IAS 32 “Financial instruments: disclosure and presentation” until such time as they vest unconditionally to participating employees.

 

The fair value of employee services received in exchange for the grant of shares is recognised as an expense. The total amount to be expensed rateably over the performance period is determined by reference to the fair value of the shares determined at the grant date.

 

 

3.         Tax on profit on ordinary activities

 

Analysis of charge in period

                                                                                                                                                          2007                       2006

                                                                                                                                                         £’000                      £’000 

Current tax:

UK corporation tax on profits of the year                                                                                     819                         544

Adjustments in respect of previous periods                                                                                  (8)                      (104)

                                                                                                                                                                                                      

Total current tax                                                                                                                                811                         440

                                                                                                                                                                                                      

              

Deferred tax:

Origination and reversal of timing differences                                                                             21                           27

                                                                                                                                                                                                      

Total deferred tax                                                                                                                               21                           27

                                                                                                                                                                                                      

Tax on profits on ordinary activities                                                                                              832                         467

                                                                                                                                                                                                      

 

 

4.             Dividends

                                                                                                                                                                       2007                       2006   

                                                                                                                                                                      £’000                      £’000 

                Amounts recognised as distributions to equity holders in the year:

               

                Final dividend of 0.461p (2006: 0.436) per share                                                                  183                         142

                Interim dividend of 0.23p (2006: 0.22p) per share                                                                   95                           76

                First dividend to minority shareholders of Adventis Group plc NMG Ltd                                                   7                               -

                                                                                                                                                                                                                 

 

                                                                                                                                                                         285                         218

                                                                                                                                                                                                                   

 

                Recommended final dividend of 0.484p (2006: 0.461p) per share                                   202                         182

                                                                                                                                                                                                                   

 

 

The recommended final dividend is subject to approval by shareholders at the annual general meeting and has not been included as a liability in these financial statements. The estimate of the recommended dividend is based on the number of shares in issue as at 9 April 2008.

 

Notes to the financial statements

For the year ended 31 December 2007

 

5.             Earnings per share

               

                The calculations of the basic and diluted earnings per share are based on the following data:

 

                                                                                                                                                                       2007                       2006   

                                                                                                                                                                      £’000                      £’000 

                   

                Profit for the purpose of basic earnings per share                                                            1,756                      1,316

                                                                                                                                                                                                                 

 

                Number of shares

 

                Weighted average number of ordinary shares in

                issue during the year                                                                                                     40,580,636           35,007,794 

 

                Effect of dilutive options                                                                                                      783,115                 538,966 

                Effect of dilutive warrants                                                                                                                  -                 171,179

                Effect of dilutive long-term incentive plan                                                                        482,631                               -

                Effect of dilutive deferred consideration                                                                           808,562                 349,059

                                                                                                                                                                                                                 

                Diluted weighted average number of ordinary shares in

                issue during the year                                                                                                     42,654,944           36,066,998 

                                                                                                                                                                                                                 

 

The weighted average number of ordinary shares in issue during the year includes 349,445 Ordinary shares, which represent the deferred consideration due on the acquisition of Coltman Media Company Limited at the average Adventis Group plc share price for 2007. The diluted weighted average number of ordinary shares in issue during the year includes 327,025 Ordinary shares, which represent the contingent deferred consideration due on the acquisition of Roundhouse Advertising Limited, and 539,144 Ordinary shares, which represent the contingent deferred consideration due on the acquisition of Leapfrog Medical Communications Limited, both at the average Adventis Group plc share price for 2007.

 

 

 

 

6.             Goodwill                                                                                                                                       2007                      2006

                                                                                                                                                                      £’000                      £’000 

                Carrying amount

                At 1 January                                                                                                                                8,273                      1,827 

                Additions                                                                                                                                     2,853                      6,030

                Reclassification of intangible assets                                                                                            -                         416

                                                                                                                                                                                                                    

                At 31 December                                                                                                                      11,126                      8,273

                                                                                                                                                                                                                 

 

The additions relate to the acquisition of Leapfrog Medical Communications Limited (£2,248,000) and adjustments to goodwill arising from the re-valuation of the contingent consideration relating to other acquisitions (£605,000).