TIDMDATA
RNS Number : 0576F
GlobalData PLC
25 July 2016
25 July 2016
GlobalData Plc
Unaudited Interim Report For The Six Months Ended 30 June
2016
"Delivering quality data and analytics"
Key highlights and achievements
-- Transformed the business with the recent acquisitions and change in management
-- Change of name
-- Focused business model, with an increased scale of business information offering
-- Increased our sales capabilities in key geographies and verticals
-- Increased revenues, earnings and cash generation
Financial Highlights
-- Group revenues increased by 65% to GBP47.1m (2015: GBP28.6m)
-- Deferred revenues increased by 97% to GBP37.9m (2015: GBP19.2m)
-- Adjusted EBITDA (1) increased by 63% to GBP9.4m (2015: GBP5.8m)
-- Cash generated from operations increased by 193% to GBP8.8m (2015: GBP3.0m)
-- Loss before tax of GBP1.3m (2015: GBP0.8m profit) after a
GBP7.3m (2015: GBP1.5m) amortisation charge
-- Interim dividend of 2.5 pence per ordinary share (2015: Nil)
with full year at 6.5p (2015: 2.5p)
-- Net debt GBP23.1m (2015: GBP5.5m)
Bernard Cragg, Chairman of GlobalData Plc, commented:
"It has been an encouraging first half of our financial year
with the Group making progress across a broad range of metrics and
reporting good increases in revenue, earnings and cash generation.
The business is performing well and the Board is confident that we
will continue to make progress both this year and beyond."
Note 1: Adjusted EBITDA: Earnings before interest, tax,
depreciation and amortisation, non-trading exchange rate losses,
impairment, share based payments, adjusted for costs associated
with derivatives, acquisitions, integration and restructure of the
Group. Adjusted EBITDA margin is defined as: Adjusted EBITDA as a
percentage of revenue.
About GlobalData Plc
GlobalData is a leading data analytics provider for industry
verticals.
ENQURIES
GlobalData Plc 0207 936 6400
Mike Danson, Chief Executive
Simon Pyper, Group Financial Officer
N+1 Singer 0207 496 3000
James Maxwell
James White
Hudson Sandler 0207 796 4133
Nick Lyon
CHAIRMAN'S STATEMENT
The recent acquisitions and the change in management and
organisational structure have transformed the business. We have as
a result of this transformation, simplified our business model to
focus on the provision of unique subscription based proprietary
content and analysis delivered via innovative online platforms. We
have also made progress in the period developing the right metrics
and processes to deliver on our strategy and objectives.
It has been an encouraging first half of our financial year with
the Group making progress across a broad range of metrics and
reporting good increases in revenues (both reported and deferred),
earnings (Adjusted EBITDA) and cash generation.
The transformation of the Group
The acquisition of the Datamonitor Consumer business (completed
September 2015) from Informa Plc and the acquisition of the
Healthcare business (completed January 2016) from GlobalData Ltd
have transformed the Group. We are in many respects a new business;
with a new name, a new yet experienced management team and a new
but greatly simplified business model which I believe provides an
ever more compelling proposition to our clients and for our
shareholders.
Acquisitions transform the business
The acquisition of the Datamonitor Consumer business added scale
and depth to our existing consumer offer. Since acquisition much of
the focus has been on integrating the enlarged consumer offering
onto one simplified platform with a common taxonomy and customer
proposition. The results thus far are satisfactory and I expect the
integration programme to conclude on schedule.
The acquisition of the Healthcare business introduced a third
global vertical to the Group. Additionally, it provided the
management and operational infrastructure in the important North
America market where previously the Group was under-represented.
The integration onto our common platform and process is proceeding
to schedule, as are our plans to more fully leverage our new North
American infrastructure.
The integration programmes for our recent acquisitions are on
schedule but there remains a significant amount of work to do
before the Group can fully deliver the expected revenue and
operational synergies.
A change in management team and company name
We announced with our 2015 results that as a result of the
recent acquisitions there would be a number of changes to the Board
and senior management team and moreover that the Group would be
renamed to GlobalData Plc. It is pleasing to note that these
changes have been implemented, well received and are having a
positive influence on the performance and management of the
Group.
Subscription based business model
Our business model is designed to provide our clients with an
ever more compelling proposition and is based upon the provision of
innovative subscription based customer solutions and world-class
customer service. Additionally, our business model is largely
subscription based with high levels of recurring revenues and is
both capital light and operationally geared, the attractive
economics of which are strong forward (deferred) revenues, improved
earnings and strong cash generation.
Our employees
We have had a good first half and I, along with my fellow Board
members, thank all our employees for their hard work and commitment
during such a period of change and extend a warm welcome to those
who have recently joined the Group.
Dividend and dividend policy
It is the Board's intention to maintain a progressive dividend
policy, which reflects our improving financial performance, the
cash generative nature of our business model and our commitment to
delivering total return to shareholders. Consequently, the Board
anticipates a total dividend for the year of 6.5 pence per share
with an interim dividend of 2.5 pence per share. Thereafter,
dividends are expected to increase in line with adjusted earnings.
The interim dividend will be paid on 9(th) September 2016 to
shareholders on the register at the close of business on 12(th)
August 2016.
Outlook
The longer-term implications of the United Kingdom's vote to
leave the European Union are unknown but we do know that a period
of prolonged economic uncertainty will for some businesses lengthen
their normal procurement cycles, which could affect sales growth.
Whilst we have yet to see any bearing of this on our business, we
are now more than ever focused on building a business with a
compelling proposition and one that delivers real value for our
clients.
Bernard Cragg
Chairman
25 July 2016
CHIEF EXECUTIVE'S REVIEW
We have transformed the Group into one of the world's leading
business information companies, serving a growing client base,
which is diversified across geography, size and industry vertical.
We are focused on the delivery of unique data, proprietary content
together with analysis and innovative delivery. We have made good
progress in the period, developing the right metrics and processes
to deliver on our objectives.
Review and development of the business
Our business has changed significantly over the past year with
the Group now focused on the provision of premium subscription
based business information services to clients operating in a
number of distinct global verticals. The benefits of this
transformation are characterised by the increased quality and
visibility of our revenue streams, which allows the Group to invest
in its content, customer platforms and geographic operations,
whilst at the same time continuing to grow.
Our principal objective is to become one of the world's leading
providers of premium, subscription based business information
products and services to the verticals we serve.
To that end, we have four core strategic priorities:
-- To develop world class products and services
-- To continue to develop our sales capabilities
-- To improve operational effectiveness
-- To provide best in class customer service
Developing world class products and services
Our content is data driven and analyst led and provides our
clients with strategic and tactical insights for the markets that
they operate in. Our content is robust, relevant and unique; the
majority of which can be accessed via our online delivery platforms
that give our clients real time access to critical business
information and an increasing array of work flow tools.
Develop our sales capabilities
The business information market is dominated by North America,
which accounts for 50% of global spend, followed by Europe and Asia
Pacific. Our goal is to create more geographical balance in our
business, reflecting market size. Our recent acquisitions have
brought significant management and infrastructure both in the
United Kingdom and in the important North American market and we
are now looking to invest further in our sales operations across
all our key geographies and in particular North America.
Improve operational effectiveness
The Group has a number of common systems and processes, which
improve efficiency, ease expansion into new geographies and reduce
integration risk. We have started to introduce these common systems
and processes into our recent acquisitions and whilst there is
still a significant amount of work to do before integration is
complete we have made good progress during the first half of the
year.
Providing best in class customer service
We believe that outstanding customer service is a critical
component in delivering customer satisfaction and improved customer
retention. Our aim is to deliver best in class customer service at
every point of interaction with our clients.
If we are successful in executing our strategy
We aim to keep things simple and execute well. If we are
successful, we should expect to see:
-- High barriers to entry with a client base that is diversified
by size, geography and industry vertical
-- High levels of recurring revenues with increased renewal rates and new client wins
-- High incremental margins on existing business
-- Increased EBITDA and cash generation
Our first half results show good progress against these
metrics.
The Group's first half performance
Our first half results include a full six-month benefit from our
recent acquisitions.
1. Revenue
Revenues increased by 64.6% to GBP47.1m (2015: GBP28.6m), which
reflects both good underlying performance and the impact of the
Consumer and Healthcare acquisitions. The acquisitions, which
completed in September 2015 and January 2016, are performing in
line with management expectations.
2. Deferred Revenue
Deferred revenue increased by 97.4% to GBP37.9m (2015:
GBP19.2m).
3. Adjusted EBITDA
Adjusted EBITDA increased by 63.2% to GBP9.4m (2015: GBP5.8m)
with the Group's margin broadly remaining consistent at 19.9%
(2015: 20.1%). Margins are expected to improve in the second half
of this financial year as we normalise the investment in our recent
acquisitions and secure planned synergies.
4. Cash Generation
Cash generation improved significantly during the first half,
with cash generated from operations increasing by GBP5.8m to
GBP8.8m (2015: GBP3.0m). Cash conversion (cash generated from
operations as a percentage of Adjusted EBITDA) increased to 94%
from 52% in the prior year.
Current Trading
The business is performing in line with management expectations
and the Board is confident that we will continue to make progress
both this year and beyond.
Mike Danson
Chief Executive
25 July 2016
Independent review report to the members of GlobalData Plc
Introduction
We have reviewed the condensed set of financial statements in
the half-yearly financial report of GlobalData Plc for the six
months ended 30 June 2016 which comprises the consolidated income
statement, the consolidated statement of comprehensive income
statement, the consolidated statement of financial position, the
consolidated changes in equity and the consolidated statement of
cash flows. We have read the other information contained in the
half yearly financial report which comprises the Chairman's and
Chief Executive's statements and considered whether it contains any
apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
This report is made solely to the company's members, as a body,
in accordance with International Standard on Review Engagements (UK
and Ireland) 2410, 'Review of Interim Financial Information
performed by the Independent Auditor of the Entity'. Our review
work has been undertaken so that we might state to the company's
members those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the company and the company's members as a
body, for our review work, for this report, or for the conclusion
we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the directors.
As disclosed in note 1, the annual financial statements of the
Group are prepared in accordance with International Financial
Reporting Standards as adopted by the European Union. The condensed
set of financial statements included in this half-yearly financial
report has been prepared in accordance with International
Accounting Standard 34, 'Interim Financial Reporting', as adopted
by the European Union.
Our responsibility
Our responsibility is to express a conclusion on the condensed
set of financial statements in the half-yearly financial report
based on our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, 'Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity'. A review of interim financial information consists
of making enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing
(UK and Ireland) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
June 2016 is not prepared, in all material respects, in accordance
with International Accounting Standard 34, 'Interim Financial
Reporting', as adopted by the European Union.
GRANT THORNTON UK LLP
AUDITOR
London
25 Jul 2016
Consolidated income statement
Notes 6 months 6 months Year
to 30 to 30 to 31
June June December
2016 2015 2015
Unaudited Unaudited Audited
Continuing operations GBP000s GBP000s GBP000s
Revenue 4 47,129 28,627 60,466
Cost of sales (30,717) (16,627) (36,745)
-------------------------------------- ------ ----------- ----------- ----------
Gross profit 16,412 12,000 23,721
Distribution costs (29) (401) (804)
Administrative costs (8,145) (6,791) (12,391)
Other expenses 5 (9,083) (3,655) (12,443)
-------------------------------------- ------ ----------- ----------- ----------
Operating (Loss) / profit (845) 1,153 (1,917)
Analysed as:
Adjusted EBITDA(1) 9,387 5,753 12,002
Items associated with acquisitions
and restructure of the Group 5 (746) (1,073) (5,795)
Other adjusting items 5 (1,731) (1,705) (3,056)
-------------------------------------- ------ ----------- ----------- ----------
EBITDA(2) 6,910 2,975 3,151
Amortisation (7,318) (1,465) (4,392)
Depreciation (437) (357) (676)
-------------------------------------- ------ ----------- ----------- ----------
Operating (Loss) / profit (845) 1,153 (1,917)
-------------------------------------- ------ ----------- ----------- ----------
Finance costs (436) (329) (886)
(Loss) / Profit before tax
from continuing operations (1,281) 824 (2,803)
Income tax expense (1,242) (714) (306)
-------------------------------------- ------ ----------- ----------- ----------
(Loss) / profit for the period
from continuing operations (2,523) 110 (3,109)
Loss for the period from
discontinued operations 11 (516) (532) (7,992)
-------------------------------------- ------ ----------- ----------- ----------
(Loss) for the period (3,039) (422) (11,101)
-------------------------------------- ------ ----------- ----------- ----------
Earnings/ (loss) per share
attributable to equity holders
from continuing operations: 6
Basic (loss)/ earnings per
share (pence) (2.55) 0.14 (4.08)
Diluted (loss)/ earnings
per share (pence) (2.55) 0.13 (4.08)
Loss per share attributable
to equity holders from discontinued
operations:
Basic loss per share (pence) (0.52) (0.70) (10.48)
Diluted loss per share (pence) (0.52) (0.70) (10.48)
Total basic loss per share
(pence) (3.07) (0.55) (14.56)
Total diluted loss per share
(pence) (3.07) (0.55) (14.56)
-------------------------------------- ------ ----------- ----------- ----------
The accompanying notes form an integral part of this financial
report. (1) We define Adjusted EBITDA as EBITDA adjusted for costs
associated with acquisition, integration, restructure of the Group,
share based payments, impairment, unrealised exchange rate losses
and impact of foreign exchange contracts. We present Adjusted
EBITDA as additional information because we understand that it is a
measure used by certain investors. However, other companies may
present Adjusted EBITDA differently. EBITDA and Adjusted EBITDA are
not measures of financial performance under IFRS and should not be
considered as an alternative to operating profit or as a measure of
liquidity or an alternative to net income as indicators of our
operating performance or any other measure of performance derived
in accordance with IFRS.
(2) EBITDA is defined as earnings before interest, tax,
depreciation, amortisation and impairment.
Consolidated statement of comprehensive income
6 months 6 months Year to
to to 31 December
30 June 30 June 2015
2016 2015 Audited
Unaudited Unaudited
GBP000s GBP000s GBP000s
Loss for the period (3,039) (422) (11,101)
Other comprehensive loss
Items that will be classified
subsequently to profit or loss:
Translation of foreign entities (253) (60) (55)
---------------------------------- ----------- ----------- -------------
Other comprehensive loss, net
of tax (253) (60) (55)
---------------------------------- ----------- ----------- -------------
Total comprehensive loss for
the period (3,292) (482) (11,156)
---------------------------------- ----------- ----------- -------------
The accompanying notes form an integral part of this financial
report.
Consolidated statement of financial position
Notes 30 June 30 June 31 December
2016 2015 2015
Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
Non-current assets
Property, plant and
equipment 1,360 1,295 1,297
Intangible assets 7 136,337 41,539 62,540
Trade and other receivables 4,500 - -
Long-term derivative - 37 -
assets
Deferred tax assets 3,018 923 2,042
------------------------------ ------ ----------- ----------- ------------
145,215 43,794 65,879
------------------------------ ------ ----------- ----------- ------------
Current assets
Inventories 186 362 77
Current tax receivable - - 432
Trade and other receivables 28,382 26,796 32,089
Short-term derivative - 137 -
assets
Cash and cash equivalents 10,853 11,365 10,117
------------------------------ ------ ----------- ----------- ------------
39,421 38,660 42,715
------------------------------ ------ ----------- ----------- ------------
Non-current assets
and current assets
classified as held
for sale - - 6,425
------------------------------ ------ ----------- ----------- ------------
Total assets 184,636 82,454 115,019
------------------------------ ------ ----------- ----------- ------------
Current liabilities
Trade and other payables (52,095) (28,537) (46,061)
Short-term borrowings (5,492) (2,543) (5,214)
Current tax payable (892) (1,108) -
Short-term derivative
liabilities 8 (992) - (201)
Short-term provisions (1,456) (281) (1,649)
------------------------------ ------ ----------- ----------- ------------
(60,927) (32,469) (53,125)
------------------------------ ------ ----------- ----------- ------------
Non-current liabilities
Long-term provisions (1,009) (94) (954)
Deferred tax liabilities (6,553) - (3,218)
Long-term derivative
liabilities 8 - - (24)
Long-term borrowings (28,429) (14,336) (30,359)
------------------------------ ------ ----------- ----------- ------------
(35,991) (14,430) (34,555)
------------------------------ ------ ----------- ----------- ------------
Liabilities directly
associated with non-current
assets and current
assets classified as
held for sale - - (2,128)
------------------------------ ------ ----------- ----------- ------------
Total liabilities (96,918) (46,899) (89,808)
------------------------------ ------ ----------- ----------- ------------
Net assets 87,718 35,555 25,211
------------------------------ ------ ----------- ----------- ------------
Equity
Share capital 9 173 154 154
Share premium account 200 200 200
Other reserve (37,128) (37,128) (37,128)
Foreign currency translation
reserve (434) (186) (181)
Special reserve 9 - 48,422 48,422
Merger Reserve 9 66,481 - -
Retained profit 58,426 24,093 13,744
------------------------------ ------ ----------- ----------- ------------
Total equity 87,718 35,555 25,211
------------------------------ ------ ----------- ----------- ------------
The accompanying notes form an integral part of this financial
report.
Consolidated statement of changes in equity (unaudited)
Share Share Other Foreign Special Merger Retained Total
capital premium reserve currency reserve reserve profit equity
account translation
reserve
GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s
Balance at 1
January 2015 154 200 (37,128) (126) 48,422 - 23,106 34,628
Profit for the
period - - - - - - (422) (422)
Other comprehensive
income:
Translation
of foreign entities - - - (60) - - - (60)
---------------------- --------- --------- --------- ------------- --------- --------- --------- ---------
Total comprehensive
income for the
period - - - (60) - - (422) (482)
---------------------- --------- --------- --------- ------------- --------- --------- --------- ---------
Transactions
with owners:
Dividends - - - - - - - -
Share based
payments charge - - - - - - 1,485 1,485
Excess deferred
tax on share
based payments - - - - - - (76) (76)
---------------------- --------- --------- --------- ------------- --------- --------- --------- ---------
Balance at 30
June 2015 154 200 (37,128) (186) 48,422 - 24,093 35,555
Loss for the
period - - - - - - (10,679) (10,679)
Other comprehensive
income:
Translation
of foreign entities - - - 5 - - - 5
---------------------- --------- --------- --------- ------------- --------- --------- --------- ---------
Total comprehensive
loss for the
period - - - 5 - - (10,679) (10,674)
---------------------- --------- --------- --------- ------------- --------- --------- --------- ---------
Transactions
with owners:
Dividends - - - - - - - -
Share based
payments charge - - - - - - 581 581
Excess deferred
tax on share
based payments - - - - - - (251) (251)
---------------------- --------- --------- --------- ------------- --------- --------- --------- ---------
Balance at 31
December 2015 154 200 (37,128) (181) 48,422 - 13,744 25,211
Loss for the
period - - - - - - (3,039) (3,039)
Other comprehensive
income:
Translation
of foreign entities - - - (253) - - - (253)
---------------------- --------- --------- --------- ------------- --------- --------- --------- ---------
Total comprehensive
loss for the
period - - - (253) - - (3,039) (3,292)
---------------------- --------- --------- --------- ------------- --------- --------- --------- ---------
Transactions
with owners:
Shares issued
for GlobalData
acquisition 19 - - - - 66,481 - 66,500
Share Buyback - - - - - - (408) (408)
Special Reserve
Transfer - - - - (48,422) - 48,422 -
Dividend - - - - - - (2,559) (2,559)
Share based
payments charge - - - - - - 1,158 1,158
Excess deferred
tax on share
based payments - - - - - - 1,108 1,108
---------------------- --------- --------- --------- ------------- --------- --------- --------- ---------
Balance at 30
June 2016 173 200 (37,128) (434) - 66,481 58,426 87,718
---------------------- --------- --------- --------- ------------- --------- --------- --------- ---------
The accompanying notes form an integral part of this financial
report.
Consolidated statement of cash flows
6 months 6 months Year to
to 30 June to 30 June 31 December
2016 2015 2015
Unaudited Unaudited Audited
Cash flows from operating GBP000s GBP000s GBP000s
activities
Continuing operations
(Loss)/ profit for the
period (2,523) 110 (3,109)
Adjustments for:
Depreciation 437 357 676
Amortisation 7,318 1,465 4,392
Finance expense 436 329 886
Taxation recognised in
profit or loss 1,242 714 306
Revaluation of foreign
currency loan 927 (93) 774
Share based payments charge 1,158 1,485 2,066
Decrease/ (increase) in
trade and other receivables 8,743 2,770 (6,504)
(Increase)/ decrease in
inventories (109) (212) 73
(Decrease)/ increase in
trade and other payables (9,443) (3,656) 9,018
Revaluation of derivatives 767 (182) 216
Movement in provisions (138) (77) 2,151
--------------------------------- ------------ ------------ -------------
Cash generated from continuing
operations 8,815 3,010 10,945
Interest paid (continuing
operations) (496) (292) (775)
Income taxes paid (continuing
operations) (570) (1,176) (2,182)
--------------------------------- ------------ ------------ -------------
Net cash from operating
activities (continuing
operations) 7,749 1,542 7,988
Net (decrease)/ increase
in cash and cash equivalents
from discontinued operations (516) 2,165 (1,624)
--------------------------------- ------------ ------------ -------------
Total cash flows from operating
activities 7,233 3,707 6,364
Cash flows from investing
activities (continuing
operations)
Acquisition of GlobalData (277) - -
Holdings
Acquisition of Verdict
Research - - (20,679)
Purchase of property, plant
and equipment (187) (141) (468)
Purchase of intangible
assets (154) (402) (1,066)
--------------------------------- ------------ ------------ -------------
Total cash flows from investing
activities (618) (543) (22,213)
Cash flows from financing
activities (continuing
operations)
Repayment of short-term
borrowings (2,659) - (1,920)
Proceeds from long-term
borrowings - - 20,000
Acquisition of own shares (408) - -
Dividend paid (2,559) - -
--------------------------------- ------------ ------------ -------------
Total cash flows from financing
activities (5,626) - 18,080
--------------------------------- ------------ ------------ -------------
Net increase in cash and
cash equivalents 989 3,164 2,231
Cash and cash equivalents
at beginning of period 10,117 8,261 8,261
Effects of currency translation
on cash and cash equivalents (253) (60) (375)
--------------------------------- ------------ ------------ -------------
Cash and cash equivalents
at end of period 10,853 11,365 10,117
--------------------------------- ------------ ------------ -------------
The accompanying notes form an integral part of this financial
report.
Notes to the interim financial statements
1. General information
Nature of operations
The principal activity of GlobalData Plc and its subsidiaries
(together 'the Group') is to provide unique, high quality business
information and services across multiple platforms to enable
organisations in the Consumer, ICT and Healthcare markets to gain
competitive advantage.
GlobalData Plc ('the Company') is a company incorporated in the
United Kingdom and listed on the Alternative Investment Market
(AIM). The registered office of the Company is John Carpenter
House, John Carpenter Street, London, EC4Y 0AN. The registered
number of the Company is 03925319.
Basis of preparation
These interim financial statements are for the six months ended
30 June 2016. They have been prepared in accordance with IAS 34,
Interim Financial Reporting as adopted in the European Union. They
do not include all of the information required for full annual
financial statements, and should be read in conjunction with
GlobalData Plc's audited financial statements for the year ended 31
December 2015.
The financial information for the year ended 31 December 2015
set out in this interim report does not constitute statutory
accounts as defined in Section 434 of the Companies Act 2006. The
Group's statutory financial statements for the year ended 31
December 2015 have been filed with the Registrar of Companies and
can be found on the Group's website www.globaldata.com. The
auditor's report on those financial statements was unqualified and
did not contain statements under Section 498(2) or Section 498(3)
of the Companies Act 2006.
These interim financial statements have been prepared under the
historical cost convention as modified by the revaluation of
derivative financial instruments.
The interim financial statements are presented in Pounds
Sterling (GBP), which is also the functional currency of the
Company. These interim financial statements have been approved for
issue by the Board of Directors.
Critical accounting estimates and judgements
The Group makes estimates and assumptions regarding the future.
Estimates and judgements are continually evaluated based on
historical experience and other factors, including expectations of
future events that are believed to be reasonable under the
circumstances.
In the future, actual experience may deviate from these
estimates and assumptions. The estimates and assumptions that have
a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial period
relate to valuation of acquired intangible assets, provisions for
share based payments, provisions for bad debt, deferred tax assets
and the carrying value of goodwill and other intangibles.
Going concern
The Group has closing cash of GBP10.9 million as at 30 June 2016
and net debt of GBP23.1 million (30 June 2015: GBP5.5 million),
being cash and cash equivalents less short and long-term
borrowings.
The Group has outstanding loans of GBP33.9 million with The
Royal Bank of Scotland.
The Group considers the current cash balance, cash flow
projections and the existing financing facilities to be adequate to
meet short-term commitments. The Directors have a reasonable
expectation that there are no material uncertainties that cast
significant doubt about the Group's ability to continue as a going
concern. Accordingly, the Directors have prepared the interim
financial statements on a going concern basis.
Notes to the interim financial statements (continued)
2. Accounting policies
This interim report has been prepared based on the accounting
policies detailed in the Group's financial statements for the year
ended 31 December 2015. All policies have been consistently
applied.
3. Taxation
Income tax on the profit or loss for the year comprises current
and deferred tax.
Current tax is the expected tax payable on the taxable income
for the year, using rates substantively enacted at the reporting
date, and any adjustments to the tax payable in respect of previous
years.
Deferred taxation is provided in full on temporary differences
between the carrying amount of the assets and liabilities in the
financial statements and the tax base. Deferred tax assets are
recognised only to the extent that it is probable that future
taxable profits will be available against which the temporary
difference can be utilised. Deferred tax is determined using the
tax rates that have been enacted or substantially enacted by the
reporting date, and are expected to apply when the deferred tax
liability is settled or the deferred tax asset is realised.
Tax is recognised in the income statement for interim reporting
purposes based upon an estimate of the likely effective tax rate
for the year.
4. Segment analysis
The principal activity of GlobalData Plc and its subsidiaries
(together 'the Group') is to provide unique, high quality business
information and services across multiple platforms to enable
organisations in the Consumer, ICT and Healthcare markets to gain
competitive advantage.
IFRS 8 "Operating Segments" requires the segment information
presented in the financial statements to be that which is used
internally by the chief operating decision maker to evaluate the
performance of the business and to decide how to allocate
resources. The Group has identified the Executive Directors as its
chief operating decision maker.
Business information is provided to customers through multiple
channels by a dedicated content team that is centrally managed by
Research Directors who report directly to the Executive Directors.
Business information is therefore considered to be the operating
segment of the Group.
The Group profit or loss is reported to the Executive Directors
on a monthly basis and consists of earnings before interest, tax,
depreciation, amortisation, central overheads and other adjusting
items. The Executive Directors also monitor revenue within the
operating segment.
A reconciliation of Adjusted EBITDA to profit before tax from
continuing operations is set out below:
6 months 6 months Year to
to 30 to 30 June 31 December
June 2015 2015
2016 Unaudited Audited
Unaudited GBP000s GBP000s
GBP000s
Business Information 47,129 28,627 60,466
Total Revenue 47,129 28,627 60,466
Business Information Adjusted
EBITDA 9,387 5,753 12,002
Other expenses (see note
5) (9,083) (3,655) (12,443)
Depreciation (437) (357) (676)
Amortisation (excluding amortisation
of acquired intangible assets) (712) (588) (800)
Finance costs (436) (329) (886)
(Loss)/ profit before tax
from continuing operations (1,281) 824 (2,803)
-------------------------------------- ----------- ------------ -------------
Notes to the interim financial statements (continued)
4. Segment analysis (continued)
Geographical analysis
From continuing operations
6 months to 30 June 2016 Rest of World
UK Europe North America Total
GBP000s GBP000s GBP000s GBP000s GBP000s
Revenue from external customers 12,821 14,497 12,506 7,305 47,129
--------------------------------- -------- -------- ---------------- -------------- --------
6 months to 30 June 2015 Rest of World
UK Europe North America Total
GBP000s GBP000s GBP000s GBP000s GBP000s
Revenue from external customers 8,189 8,412 8,041 3,985 28,627
--------------------------------- -------- -------- ---------------- -------------- --------
12 months to 31 December 2015 Rest of World
UK Europe North America Total
GBP000s GBP000s GBP000s GBP000s GBP000s
Revenue from external customers 17,001 17,054 17,457 8,954 60,466
--------------------------------- -------- -------- ---------------- -------------- --------
5. Other expenses
6 months 6 months Year to
to to 31 December
30 June 2016 30 June 2015 2015
Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
Restructuring costs (1) 467 1,031 4,258
Property related provisions 18 45 61
Exceptional property
costs - 5 6
Deal costs - (9) 6
M&A costs 261 1 1,464
------------------------------------- ------ --------------- --------------
Items associated with
acquisitions and restructure
of the Group 746 1,073 5,795
Share based payment charge 1,158 1,485 2,066
Revaluation of short
and long-term derivatives 767 (182) 216
Unrealised foreign exchange
loss (194) 402 774
Amortisation of acquired
intangibles 6,606 877 3,592
Total other expenses 9,083 3,655 12,443
------------------------------------- ------ --------------- --------------
(1) Restructuring costs consist of redundancy costs relating to
three key management personnel as well as other costs in
relation
to restructuring the business.
Notes to the interim financial statements (continued)
6. Earnings per share
The calculation of the basic earnings per share is based on the
earnings attributable to ordinary shareholders of the parent
company divided by the weighted average number of shares in issue
during the period. The Group also has a share options scheme in
place and therefore the Group has calculated the dilutive effect of
these options. The below table shows earnings per share for both
continuing and discontinued operations:
6 months
to
30 June
2016
Unaudited
6 months
to Year to
30 June 31 December
2015 2015
Unaudited Audited
Continuing operations
Basic
Profit/ (loss) for the period
attributable to ordinary shareholders
of the parent company (GBP000s) (2,523) 110 (3,109)
Weighted average number of
shares (000s) 98,888 76,268 76,268
Basic earnings/ (loss) per
share (pence) (2.55) 0.14 (4.08)
Diluted
Profit/ (loss) for the period
attributable to ordinary shareholders
of the parent company (GBP000s) (2,523) 110 (3,109)
Weighted average number of
shares (000s) * 98,888 83,949 76,268
Diluted earnings/ (loss) per
share (pence) (2.55) 0.13 (4.08)
Discontinued operations
Basic
Loss for the period attributable
to ordinary shareholders of
the parent company (GBP000s) (516) (532) (7,992)
Weighted average number of
shares (000s) 98,888 76,268 76,268
Basic loss per share (pence) (0.52) (0.70) (10.48)
Diluted
Loss for the period attributable
to ordinary shareholders of
the parent company (GBP000s) (516) (532) (7,992)
Weighted average number of
shares (000s) * 98,888 76,268 76,268
Diluted loss per share (pence) (0.52) (0.70) (10.48)
---------------------------------------- ------------ ----------- -------------
Total
Basic
(Loss)/ profit for the period
attributable to ordinary shareholders
of the parent company (GBP000s) (3,039) (422) (11,101)
Weighted average number of
shares (000s) 98,888 76,268 76,268
Basic (loss)/ earnings per
share (pence) (3.07) (0.55) (14.56)
Diluted
(Loss)/ profit for the period
attributable to ordinary shareholders
of the parent company (GBP000s) (3,039) (422) (11,101)
Weighted average number of
shares (000s) * 98,888 76,268 76,268
Diluted (loss)/ earnings per
share (pence) (3.07) (0.55) (14.56)
---------------------------------------- ------------ ----------- -------------
Notes to the interim financial statements (continued)
6. Earnings per share (continued)
Reconciliation of basic weighted average number of shares to the
diluted weighted average number of shares:
6 months
to
30 June
2016
Unaudited
No'000s
6 months
to Year to
30 June 31 December
2015 2015
Unaudited Audited
No'000s No'000s
Basic weighted average number
of shares 98,888 76,268 76,268
Share options in issue at
end of year 9,997 7,681 7,558
------------------------------- ------------ ----------- -------------
Diluted weighted average
number of shares 108,885 83,949 83,826
------------------------------- ------------ ----------- -------------
* The share options in issue are anti-dilutive in respect of the
diluted loss per share calculation in 2016 and 2015, therefore the
options have not been included in the calculation, other than in
respect of the continuing earnings per share for the period ended
30 June 2015.
7. Intangible assets
Software Customer Brands IP rights Goodwill Total
relationships
GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s
Cost
As at 31 December
2015 6,423 15,849 4,817 11,397 53,479 91,965
Additions 154 - - - - 154
Acquisition
of GlobalData - 9,552 5,697 10,522 55,190 80,961
As at 30 June
2016 6,577 25,401 10,514 21,919 108,669 173,080
------------------- --------- --------------- -------- ---------- --------- ---------
Amortisation
As at 31 December
2015 (4,346) (10,615) (641) (4,463) (9,360) (29,425)
Charge for the
year (475) (1,470) (490) (4,883) - (7,318)
As at 30 June
2016 (4,821) (12,085) (1,131) (9,346) (9,360) (36,743)
------------------- --------- --------------- -------- ---------- --------- ---------
Net book value
As at 30 June
2016 1,756 13,316 9,383 12,573 99,309 136,337
As at 31 December
2015 2,077 5,234 4,176 6,934 44,119 62,540
------------------- --------- --------------- -------- ---------- --------- ---------
8. Derivative assets and liabilities
6 months 6 months Year to
to to 31 December
30 June 30 June 2015
2016 2015 Audited
Unaudited Unaudited No'000s
No'000s No'000s
Short-term derivative - 137 -
assets
Short-term derivative
liabilities (992) - (201)
Long-term derivative liabilities - - (24)
Net derivative (liability)/
asset (992) 137 (225)
---------------------------------- ------------ ------------ --------------
Notes to the interim financial statements (continued)
8. Derivative assets and liabilities (continued)
Classification is based on when the derivatives mature. The fair
values of derivatives are expected to impact the income statement
over the next year, dependant on movements in the fair value of the
foreign exchange contracts. The movement in the year was a
GBP767,000 charge to the income statement (2014: credit of
GBP182,000). The large movement was caused by volatility in the
foreign exchange market following the UK's decision to leave the
European Union on 23 June 2016.
The Group uses derivative financial instruments to reduce its
exposure to fluctuations in foreign currency exchange rates. The
notional values of contract amounts outstanding are:
Euro US Dollar Indian
Expiring in the period ending: EUR'000 $'000 Rupee
INR'000
30 June 2017 4,300 9,450 326,782
---------------------------------- --------- ---------- ---------
Fair value of financial instruments
Financial instruments are either carried at amortised cost, less
any provision for impairment, or fair value. As at 30 June 2016 the
fair value of bank borrowings is GBP26.9 million and the carrying
value is GBP33.9 million.
The Group uses the following hierarchy for determining and
disclosing the fair value of financial instruments by valuation
technique:
-- Level 1: quoted (unadjusted) prices in active markets for
identical assets or liabilities;
-- Level 2: other techniques for which all inputs which have a
significant effect on the recorded fair value are observable,
either directly or indirectly; and
-- Level 3: techniques which use inputs which have a significant
effect on the recorded fair value that are not based on observable
market data.
As at 30 June 2016, the only financial instruments measured at
fair value were derivative financial liabilities and these are
classified as Level 2.
9. Equity
Share capital
Allotted, called up
and fully paid:
30 June 2016 30 June 2015 31 December
Unaudited Unaudited 2015
Audited
No'000s GBP000s No'000s GBP000s No'000s GBP000s
Ordinary shares at
1 January (1/14(th)
pence) 76,268 54 76,268 54 76,268 54
Issue of shares: Consideration
GlobalData 26,078 19 - - - -
Shares Buyback - - - - - -
-------------------------------- -------- -------- -------- -------- -------- --------
Ordinary shares c/f
(1/14(th) pence) 102,346 73 76,268 54 76,268 54
-------------------------------- -------- -------- -------- -------- -------- --------
Deferred shares of
GBP1.00 each 100 100 100 100 100 100
------------------------- -------- ---- ------- ---- ------- ----
Total allotted, called
up and fully paid 102,446 173 76,368 154 76,368 154
------------------------- -------- ---- ------- ---- ------- ----
The issue of shares in the year related to the following:
GlobalData Holding Limited Acquisition
The Group issued 26,078,431 ordinary shares as consideration for
GlobalData Holding Limited and its subsidiaries. These shares rank
pari passu with the existing GlobalData Plc ordinary shares in
issue.
Notes to the interim financial statements (continued)
9. Equity (continued)
Share Buyback
During the period the Group purchased an aggregate amount of
130,000 shares at a total market value of GBP408,000. The purchased
shares will be held in treasury for the purpose of satisfying the
exercise of share options under the Company's Employee Share Option
Plan.
Capital management
The Group's capital management objectives are:
-- To ensure the Group's ability to continue as a going concern
-- To fund future growth and provide an adequate return to
shareholders and, when appropriate, distribute dividends
The capital structure of the Group consists of net debt, which
includes borrowings and cash and cash equivalents, and equity.
The Company has two classes of shares:
-- Ordinary shares carry no right to fixed income and each share
carries the right to one vote at general meetings of the
Company
-- Deferred shares do not confer upon the holders the right to
receive any dividend, distribution or other participation in the
profits of the Company. The deferred shares do not entitle the
holders to receive notice of or to attend and speak or vote at any
general meeting of the Company. On distribution of assets on
liquidation or otherwise, the surplus assets of the Company
remaining after payments of its liabilities shall be applied first
in repaying to holders of the deferred shares the nominal amounts
and any premiums paid up or credited as paid up on such shares, and
second the balance of such assets shall belong to and be
distributed among the holders of the ordinary shares in proportion
to the nominal amounts paid up on the ordinary shares held by them
respectively.
There are no specific restrictions on the size of a holding nor
on the transfer of shares, which are both governed by the general
provisions of the Articles of Association and prevailing
legislation. The Directors are not aware of any agreements between
holders of the Company's shares that may result in restrictions on
the transfer of securities or on voting rights.
No person has any special rights of control over the Company's
share capital and all its issued shares are fully paid.
With regard to the appointment and replacement of Directors, the
Company is governed by its Articles of Association, the principles
of the UK Corporate Governance Code, the Companies Act and related
legislation. The Articles themselves may be amended by special
resolution of the shareholders. The powers of Directors are
described in the Board Terms of Reference, copies of which are
available on request.
Other reserve
The other reserve consists of a reserve created upon the reverse
acquisition of the TMN Group Plc.
Foreign currency translation reserve
The foreign currency translation reserve contains the
translation differences that arise upon translating the results of
subsidiaries with a functional currency other than Sterling. Such
exchange differences are recognised in the income statement in the
period in which a foreign operation is disposed of.
Special reserve
The special reserve was created upon the capital reduction which
occurred during 2013.
In order to facilitate the payment of dividends, the special
reserve, constituted by an undertaking to the Court given in
connection with the reduction of the Company's share premium
account undertaken in May 2013 (the "Special Reserve"), has been
released in accordance with its terms pursuant to a resolution of
the Board dated 23 February 2016 (all relevant creditors having
been discharged or otherwise consented to the reduction).
Notes to the interim financial statements (continued)
9. Equity (continued)
Merger reserve
The merger reserve was created to account for the premium on the
shares issued in consideration for the purchase of GlobalData
Holdings Limited in 2016.
Dividends
The Company is one that is focused on the efficient management
of working capital and increased cash generation. The Board
therefore believes it can invest in the business, achieve growth in
profits and service a progressive dividend policy.
The final dividend for 2015 was 2.5p per share and was paid in
June 2016. The Board anticipates a total dividend for the current
year of 6.5 pence per share, with an interim dividend of 2.5 pence
per share. Thereafter, dividends will be progressive and increase
in line with earnings. The interim dividend will be paid on 9th
September 2016 to shareholders on the register at the close of
business on 12th August 2016.
Share based payments
The Group created a share option scheme during the year ended 31
December 2010 and granted the first options under the scheme on 1
January 2011 to certain senior employees. Each option granted
converts to one ordinary share on exercise. A participant may
exercise their options (subject to employment conditions) at any
time during a prescribed period from the vesting date to the date
the option lapses. For these options to be exercised the Group's
earnings before interest, taxation, depreciation and amortisation,
as adjusted by the Remuneration Committee for significant or
one-off occurrences, must exceed certain targets. The fair values
of options granted were determined using the market value at the
date of grant. The market values were compared to the Black-Scholes
model and there were no significant differences.
The following assumptions were used in the valuation:
Award Grant Date Fair Value Estimated Weighted
Tranche of Share Exercise Forfeiture Average
Price Price rate p.a. of Remaining
at Grant (Pence) Contractual
Date Life
---------- -------------- ------------ ----------- ------------ --------------
Award 1 January
1 2011 GBP1.09 0.0714p 15% 3.5
Award
3 1 May 2012 GBP1.87 0.0714p 15% 3.5
Award 7 March
4 2014 GBP2.55 0.0714p 15% 3.5
Award 8 September
5 2014 GBP2.575 0.0714p 15% 3.5
Award 22 September
6 2014 GBP2.525 0.0714p 15% 3.9
Award 9 December
7 2014 GBP2.075 0.0714p 15% 3.7
Award 31 December
8 2014 GBP2.025 0.0714p 15% 3.7
Award 21 April
9 2015 GBP2.05 0.0714p 15% 4.5
Award 17 March
10 2016 GBP2.354 0.0714p 15% 3.8
The estimated forfeiture rate assumption is based upon
management's expectation of the number of options that will lapse
over the vesting period. The assumptions were determined when the
scheme was set up in 2011 and are reviewed annually. Management
believe the current assumptions to be reasonable based upon the
rate of lapsed options.
Each of the awards are subject to vesting criteria set by the
Remuneration Committee. Following on from the acquisition of the
GlobalData Healthcare and Consumer businesses, the targets were
revised by the Remuneration Committee to take into account the
transformed business.
Notes to the interim financial statements (continued)
9. Equity (continued)
The vesting criteria are now as follows:
Vesting Criteria
Group Achieves Group Achieves Group Achieves
GBP10m EBITDA GBP26.7m EBITDA GBP35m EBITDA
------ --------------- ----------------- ---------------
Award 20% Vest 40% Vest 40% Vest
1-4
Award
5 N/a 30% Vest 70% Vest
Award
6 N/a 50% Vest 50% Vest
Award
7 N/a 40% Vest 60% Vest
Award
8 N/a 50% Vest 50% Vest
Award
9 N/a 40% Vest 60% Vest
Award
10 N/a 35% Vest 65% Vest
The total charge recognised for the scheme during the six months
to 30 June 2016 was GBP1,158,000 (2015: GBP1,485,000). The awards
of the scheme are settled with ordinary shares of the Company.
Reconciliation of movement in the number of options is provided
below.
Option price Number
(pence) of
options
31 December 2015 1/14th 7,557,840
Granted 1/14th 3,554,390
Forfeited 1/14th (1,094,800)
------------------ -------------- ------------
31 December 2014 1/14th 10,017,430
------------------ -------------- ------------
The following table summarises the Group's share options
outstanding at 31 December 2015:
Options Option price Remaining
Reporting date outstanding (pence) life (years)
31 December 2011 5,004,300 1/14th 3.7
31 December 2012 4,931,150 1/14th 4.3
31 December 2013 4,775,050 1/14th 3.3
31 December 2014 8,358,880 1/14th 2.5
31 December 2015 7,557,840 1/14th 2.5
30 June 2016 10,017,430 1/14th 3.7
------------------ ------------- ------------- --------------
10. Acquisition
GlobalData Holdings Limited
On 6 January 2016 the Group acquired 100% of the share capital
of GlobalData Holdings Limited. The transaction was effected by a
share for share exchange, in which GlobalData PLC issued 26,078,431
ordinary shares to the shareholders of GlobalData Holdings Limited.
Based on the Closing Price of 255 pence on 17 December 2015 (being
the last business day prior to the Announcement), the terms of the
Acquisition value the transaction GBP66.5 million.
The acquisition of GlobalData Holding and its healthcare
business will add a third global industry vertical to the Group's
existing business information proposition. GlobalData's offering
allows its clients, among other things, access to market forecast
calculations (including epidemiology data), segmentations, costs of
therapy and compliance rates and patient shares. All information is
sourced from primary field intelligence such as key opinion leader
interviews, surveys to high prescribers in all markets covered in
Pharmapoint reports as well as interviews with industry
stakeholders, regulatory bodies and patient advocacy groups.
Notes to the interim financial statements (continued)
10. Acquisition (continued)
The amounts recognised for each class of assets and liabilities
at the acquisition date were as follows:
Carrying Fair
Value Value Fair
Adjustments Value
GBP000s GBP000s GBP000s
Intangible assets consisting
of:
Brand - 5,697 5,697
Customer relationships - 9,552 9,552
Intellectual Property and
Content - 10,522 10,522
Net assets acquired consisting
of:
Tangible fixed assets 313 - 313
Cash (277) - (277)
Trade receivables 2,448 - 2,448
Other receivables 1,199 (425) 774
Trade and other payables (2,272) - (2,272)
Deferred revenue (10,808) - (10,808)
Deferred tax - (4,639) (4,639)
Fair value of net assets
acquired (9,397) 20,707 11,310
--------------------------------------- --------- ------------- ---------
Fair Value
GBP000s
Consideration in shares 66,500
Less net assets acquired (11,310)
----------------------------- ---------
Goodwill 55,190
----------------------------- ---------
In line with the provisions of IFRS 3, further fair value
adjustments may be required within the 12 month period from the
date of acquisition. Any fair value adjustments will result in an
adjustment to the goodwill balance reported above.
In 2015 the acquired businesses had revenues of GBP19.1 million
and profits before tax of GBP1.4 million. The business has
generated revenues of GBP11.2 million and Adjusted EBITDA of GBP3.4
million in the period from acquisition to 30 June 2016.
The goodwill that arose on the combination can be attributed to
the assembled workforce, know-how and expertise.
The Group incurred legal and professional costs of GBP0.8m in
relation to the acquisition, which were recognised in other
expenses.
11. Disposal and discontinued operations
As the business becomes more focused on its Business Information
offering, a number of legacy non-core business units have been
discontinued in recent years.
On 19(th) January the group disposed of some of its non-core B2B
print businesses to a related party. The disposal was for
consideration of GBP1, together with a guaranteed loan from the
related party acquirers. The loan is discussed in more detail in
note 12.
Notes to the interim financial statements (continued)
11. Disposal and discontinued operations (continued)
The amounts recognised for each class of assets and liabilities
at the disposal date were as follows:
Carrying
Value
GBP000s
Non-current assets consisting of:
Goodwill -
Intangible assets -
Current assets consisting of:
Inventories 76
Trade and other receivables 6,292
Other receivables 278
Cash and cash equivalents 500
Total Non-current and Current Assets 7,146
----------------------------------------- -----------
Current liabilities consisting of:
Trade payables (270)
Deferred income (1,068)
Accruals (695)
Total Current Liabilities (2,033)
----------------------------------------- -----------
Net Assets disposed of 5,113
----------------------------------------- -----------
The loss on disposal was calculated as follows:
Fair Value
GBP000s
Fair value of consideration 4,500
Less net assets disposed of (5,113)
------------------------------ --------
Loss on disposal (613)
------------------------------ --------
Notes to the interim financial statements (continued)
11. Disposal and discontinued operations (continued)
a) The results of the discontinued operation are as follows;
6 months 6 months Year
to 30 to 30 to 31
June June December
2016 2015 2015
Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
Discontinued operations
Revenue 8 4,826 10,145
Cost of sales (27) (5,043) (10,013)
---------------------------------------- ----------- ----------- ----------
Gross (loss)/ profit (19) (217) 132
Distribution costs - - -
Administrative costs (609) (535) (8,925)
Loss before tax from discontinued
operations (628) (752) (8,793)
Income tax credit/ (charge) 112 220 801
---------------------------------------- ----------- ----------- ----------
Loss for the period from discontinued
operations (516) (532) (7,992)
---------------------------------------- ----------- ----------- ----------
A loss on disposal of GBP0.6 million is included within admin
expenses.
b) Loss before tax
6 months 6 months Year
to 30 to 30 to 31
June June December
2016 2015 2015
Unaudited Unaudited Audited
This is arrived at after GBP000s GBP000s GBP000s
charging:
Amortisation - 205 409
Impairment - - 6,225
--------------------------- ----------- ----------- ----------
c) Cash flows from discontinued operations
6 months 6 months Year
to 30 to 30 to 31
June June December
2016 2015 2015
Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
Cash outflows from operating
activities (516) 2,165 (1,624)
Cash inflows from investing - - -
activities
Cash outflows from financing - - -
activities
--------------------------------------- ----------- ----------- ----------
Total cash outflows from discontinued
operations (516) 2,165 (1,624)
---------------------------------------- ----------- ----------- ----------
12. Related party transactions
Mike Danson, GlobalData's Chairman, owned 69.7% of the Company's
ordinary shares as at 25 July 2016. Mike Danson owns a number of
businesses that interact with GlobalData PLC. The principal
transactions are as follows:
Accommodation
GlobalData rents two properties from Estel Property Investments,
a company owned by Mike Danson. The total rental expense in
relation to the buildings owned by Estel Property Investments for
the 6 months to 30 June 2016 was GBP1,030,000 (2014:
GBP1,053,000)
Notes to the interim financial statements (continued)
12. Related party transactions (continued)
Corporate support services
Corporate support services are provided to and from other
companies owned by Mike Danson, principally finance, human
resources, IT and facilities management. These are recharged to
companies that consume these services based on specific drivers of
costs, such as proportional occupancy of buildings for facilities
management, headcount for human resources services, revenue or
gross profit for finance services and headcount for IT services.
The recharge made from GlobalData PLC to these companies for the 6
months to 30 June 2016 was GBP618,700 (2015: GBP192,400).
Acquisition of GlobalData Holding Limited and disposal of B2B
print business
On 6(th) January 2016, the Group acquired GlobalData Holdings
Limited (a related party). Also in January the Group agreed to sell
some of its non-core B2B print businesses also to a related party.
Further information on the acquisition can be found in note 10,
with details of the disposal in note 10.
Loan to Progressive Trade Media Limited
As part of the disposal of the non-core B2B print businesses,
the Group agreed to issue a loan to Progressive Trade Media to fund
the purchase consideration. This loan is for GBP4.5m and repayable
in 5 instalments, with the first instalment due in January 2018.
Interest of 2.25% above LIBOR is charged on the loan, with
GBP73,000 charged in the period to 30 June 2016.
Amounts outstanding
The Group has taken advantage of the exemptions contained within
IAS 24 - Related Party Disclosures from the requirement to disclose
transactions between Group companies as these have been eliminated
on consolidation. The amounts outstanding for other related parties
were:
Amounts due within one year:
30 June 30 June 31 December
2016 2015 2015
Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
Global Data Ltd - 2 24
Estel Property Group Ltd (502) (606) (618)
Progressive Media Venture
Ltd 632 784 589
Progressive Trade Media Limited (152) - -
Attentio Research Limited 8 - -
Attentio Inc 8 - -
(6) 180 (5)
--------------------------------- ----------- ----------- ------------
The Group has right of set off over these amounts.
Non-current:
30 June 30 June 31 December
2016 2015 2015
Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
Progressive Trade Media Limited 4,500 - -
4,500 - -
-------------------------------- ----------- ----------- ------------
Advisers
Company Secretary
Graham Lilley
Head Office and Registered Office
John Carpenter House
John Carpenter Street
London
EC4Y 0AN
Tel: + 44 (0) 20 7936 6400
Nominated Adviser and Broker
Nplus1 Singer Advisory LLP
1 Bartholomew Lane
London
EC2N 2AX
Auditor
Grant Thornton UK LLP
Grant Thornton House
Melton Street
London
NW1 2EP
Registrars
Capita Registrars Limited
Northern House
Woodsome Park
Fenay Bridge
Huddersfield
West Yorkshire
HD8 0GA
Solicitors
Osborne Clarke
2 Temple Back East
Temple Quay
Bristol
BS1 6EG
Bankers
The Royal Bank of Scotland Plc
280 Bishopsgate
London
EC2M 4RB
Registered number
Company No. 03925319
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EAAXLAFDKEFF
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July 25, 2016 02:00 ET (06:00 GMT)
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