Interim Results

Huveaux PLC 21 July 2005 HUVEAUX PLC Interim Results for the six months ended 30 June 2005 and the proposed acquisition of JB Bailliere Sante for €11.5 million (£7.9 million) in cash Highlights • Turnover up 96 per cent. to £9.0 million including organic sales growth: - in the Political Division, up 20 per cent. - in Lonsdale (part of the Learning Division), up 21 per cent. • Pre-tax profits up 73 per cent. to £0.63 million* • EPS up 20 per cent. to 0.42 pence* • Outlook for the remainder of 2005 is for continued good performance • Offer announced today to acquire JB Bailliere Sante, a leading publisher in the French medical sector, for €11.5 million (£7.9 million) in cash Interim Results: Summary Six months to Six months to 30 June 2005 30 June 2004 £'000 Unaudited Unaudited Turnover 9,046 4,638 Profit before tax and exceptional 635 367 items* Profit before tax 635 66 Earnings per share pre exceptional 0.42p 0.35p items (basic)* Earnings per share (basic) 0.42p 0.06p * Exceptional items in 2004 amounted to £301,000 pre tax (2005: nil) relating principally to the cost of restructuring the Parliamentary Communications business acquired in 2004. John van Kuffeler, executive Chairman of Huveaux, commented: 'The results demonstrate our continued strong performance, particularly in the seasonally quiet first half of the year, and our commitment to achieve a solid balance of organic and acquisition-led growth. The offer announced today for JB Bailliere Sante will help us build on the success we have already achieved through our existing ATP-Egora business in the attractive French medical press sector. With the increasing scale of our combined operations, we have now created the Professional Division whose focus will be to provide essential information and continuing education to the medical profession. The outlook for Huveaux for the remainder of the 2005 financial year remains good and the Board expects the acquisition of JB Bailliere Sante to enhance significantly Huveaux's EPS going forward#.' # This statement should not be taken to mean that the future EPS of Huveaux will necessarily match or exceed the historical reported EPS of Huveaux and no forecast is intended or implied. For further information, please contact: John van Kuffeler, executive Chairman, Huveaux 020 7245 0270 James Leviton, Finsbury Limited 020 7861 3801 An analysts presentation will be held at 9.30 am this morning at the offices of Dresdner Kleinwort Wasserstein, 20 Fenchurch Street, London. Note to Editors : Huveaux is a publishing and media group which operates through its Political, Learning and Professional Divisions. Since being admitted to AIM in December 2001, the Company has successfully completed the acquisition of seven complementary businesses. Huveaux was founded by John van Kuffeler, formerly Chief Executive and now non-executive Chairman of Provident Financial plc. OPERATING AND FINANCIAL REVIEW Financial Performance Huveaux achieved substantial growth in sales, profit and EPS in the seasonally quiet first half of 2005. Sales increased from £4.64 million to £9.05 million of which £3.70 million of the increase came from the three acquisitions made last year. Organic sales growth for the Group was 15 per cent. Pre-tax profits (before exceptional items) increased from £367,000 to £635,000 and adjusted EPS increased 20 per cent. to 0.42 pence per share. Divisional Highlights •Political Division The Political Division operates as Dod's Parliamentary Communications in the UK where operations comprise political magazines; new media services; political training and seminars; database and reference books and recruitment. In the EU, our activities consist of reference books, newsletters, magazines, websites and reference books. The first half results demonstrate an excellent performance from the Political Division which saw underlying organic sales growth of 20 per cent. supplemented by £3.70 million from acquisitions and £0.25 million from the recognition of deferred revenue on the publication of Eurosource. In the UK, the General Election in May provided a platform for continuing strong demand for advertising in our portfolio of magazines and the value of orders for Dod's Parliamentary Companion reached a new record level. Our new media websites, political seminars and events and political recruitment businesses each performed well and all achieved good growth. In France, our political business is trading in line with management's expectations and its results are almost entirely weighted to the second half. In Brussels, Parliament Magazine achieved a further 20 per cent. growth in revenues following its 46 per cent. revenue growth achievement in 2004. •Professional Division Today we announced an offer to acquire JB Bailliere Sante, a leading publisher in the French medical press sector based in Paris, for €11.5 million (£7.9 million) in cash. The business will be merged with our existing ATP-Egora operations and as a result of this combined scale the new Professional Division is being created. This acquisition is expected to be significantly earnings enhancing#. During the first half, underlying sales growth at ATP-Egora was 28 per cent. This substantial increase was due in part to two large new contracts which we won for our medical website business in France. •Learning Division The Learning Division (formerly entitled the Education & Training Division) comprises Fenman, which publishes material for professional training managers, and Lonsdale, which publishes specialist revision guides for schools. In response to changing market conditions we have reduced Fenman's dependence on direct marketing, which will result in a business with lower sales but higher profit margins. During the first half of 2005 direct marketing costs were reduced by 35 per cent. and sales were 9 per cent. lower than in the same period last year. The margin benefit is expected to flow through in the second half of this financial year. The training seminars business continued its strong growth performance. Our subscription magazine, the Training Journal, completed a successful move into our existing London based magazine publishing operations which will deliver both operating efficiencies and further sales opportunities in the future. Lonsdale achieved overall sales growth of 21 per cent. in the first six months of this year with new titles selling particularly well. The revision guides continue to be a quick and inexpensive solution for achieving better examination results in schools. Cash Cash on deposit at 30 June 2005 amounted to £ 625,000. During the first half we settled all deferred cash considerations outstanding from previous acquisitions totalling £1.6 million and paid the final 2004 dividend of £1.1 million. Huveaux continues to maintain a strong balance sheet. Outlook The second half of the year is an important period for the business as it coincides with the start of the academic and parliamentary years in September and October. Forward orders are already strong and the outlook for the remainder of the 2005 financial year continues to be good. This positive position will be further significantly enhanced by the proposed acquisition of JB Bailliere Sante which was announced today. Acquisitions remain an important part of Huveaux's growth strategy and the Board is currently pursuing another acquisition opportunity. # This statement should not be taken to mean that the future EPS of Huveaux will necessarily match or exceed the historical reported EPS of Huveaux and no forecast is intended or implied. HUVEAUX PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT Notes For the six For the six For the year months ended months ended ended 30 June 30 June 31 December 2005 2004 2004 Unaudited Unaudited Audited £000s £000s £000s Turnover Continuing operations 3 9,046 3,192 7,572 Acquisitions 3 - 1,446 6,861 9,046 4,638 14,433 Cost of sales (5,370) (2,006) (6,872) Gross profit 3,676 2,632 7,561 Administrative expenses (3,045) (2,308) (5,217) Exceptional items - (301) (322) Total operating expenses (3,045) (2,609) (5,539) Continuing operations 3 631 61 1,281 Acquisitions - (38) 741 Total operating profit 631 23 2,022 Other interest receivable and 27 52 116 similar income Interest payable and similar (23) (9) (10) charges Profit on ordinary activities 635 66 2,128 before taxation Tax on profit on ordinary 4 (190) (20) (345) activities Profit for the period 445 46 1,783 Dividends on equity shares - - (1,065) Retained profit for the period 445 46 718 Adjusted basic earnings per share 5 0.42 p 0.35 p 2.19 p before exceptional items Earnings per share - basic 5 0.42 p 0.06 p 1.94 p Earnings per share - diluted 5 0.42 p 0.06 p 1.92 p HUVEAUX PLC CONSOLIDATED BALANCE SHEET Notes As at As at As at 30 June 30 June 31 December 2005 2004 2004 Unaudited Unaudited Audited £000s £000s £000s Fixed assets Intangible assets 6 38,046 37,967 38,046 Tangible assets 836 687 800 38,882 38,654 38,846 Current assets Stocks 1,287 1,022 1,329 Debtors 6,317 3,522 4,638 Cash at bank and in hand 625 2,653 3,120 8,229 7,197 9,087 Creditors: amounts falling due (7,565) (7,390) (8,736) within one year Net current assets 664 (193) 351 Total assets less current 39,546 38,461 39,197 liabilities Creditors: amounts falling due - - (77) after more than one year Provision for liabilities and - (38) - charges Net assets 39,546 38,423 39,120 Capital and reserves Called-up equity share capital 10,761 10,646 10,646 issued Called-up equity share capital - 400 400 not issued Share premium account 26,726 26,450 26,444 Merger reserve 409 409 409 Profit and loss account 1,650 518 1,221 Equity shareholders' funds 7 39,546 38,423 39,120 HUVEAUX PLC CONSOLIDATED CASH FLOW STATEMENT Notes As at As at As at 30 June 30 June 31 December 2005 2004 2004 Unaudited Unaudited Audited £000s £000s £000s Reconciliation of operating profit to net cash flow from operating activities Operating profit 631 23 2,022 Depreciation charges 154 25 238 Decrease/ (increase) in stocks 25 (166) (483) (Increase)/ decrease in (1,741) 794 (773) debtors Increase/ (decrease) in 1,284 (580) (108) creditors Net cash inflow from operating 353 96 896 activities Cash Flow statement Cash flow from operating 353 96 896 activities Returns on investments and 8 4 43 106 servicing of finance Taxation - (7) (49) Capital expenditure and 8 (193) (29) (309) financial investment Acquisitions and disposals 8 (1,571) (17,084) (17,122) Equity dividends paid (1,076) (629) (629) Management of liquid resources - - (47) Cash outflow before financing (2,483) (17,610) (17,154) Financing 8 (3) 16,793 16,787 Decrease in cash in the year 9 (2,486) (817) (367) HUVEAUX PLC Notes to the Accounts 30 June 2005 1. These accounts comply with relevant accounting standards and have been prepared using the accounting policies set out in the Annual Report 2004. 2. The financial information included in this document does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The accounts for the year ended 31 December 2004, which have been filed with the Registrar of Companies, received an unqualified audit report and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The financial information contained herein in respect of the six month period to 30 June 2005 is unaudited. 3. Segmental information All amounts shown relate to one business segment, that of publishing. Period ended Period ended Year ended 30 June 30 June 31 December 2005 2004 2004 Unaudited Unaudited Audited £000s £000s £000s Group turnover by geographical area United Kingdom Continuing operations 7,060 3,101 6,645 Acquisitions - 1,214 5,580 7,060 4,315 12,225 Continental Europe and the rest of the world Continuing operations 1,986 91 927 Acquisitions - 232 1,281 1,986 323 2,208 Total turnover 9,046 4,638 14,433 Operating profit before exceptional items by geographical area United Kingdom Continuing operations 623 239 1,182 Acquisitions - 261 614 623 500 1,796 Continental Europe & the rest of the world Continuing operations 8 (178) 99 Acquisitions - (299) 127 8 (477) 226 Total operating profit 631 23 2,022 Net assets/ (liabilities) by geographical area United Kingdom Continuing operations 38,878 38,526 38,553 Acquisitions - 106 (575) 38,878 38,632 37,978 Continental Europe & rest of the world Continuing operations 668 1 595 Acquisitions - (210) 547 668 (209) 1,142 Total net assets 39,546 38,423 39,120 Turnover by geographic destination is not materially different from turnover by geographic origin. 4. Taxation The taxation charge for the six months ended 30 June 2005 is based on the expected annual tax rate. 5. Earnings per share Period ended Period ended Year ended 30 June 30 June 31 December 2005 2004 2004 Unaudited Unaudited Audited £000s £000s £000s Profit attributable to 445 46 1,783 shareholders Add: exceptional items - 301 322 Less: tax in respect of - (90) (97) exceptional items Adjusted profit attributable 445 257 2,008 to shareholders 2005 2004 2004 Shares Shares Shares Weighted average number of shares In issue during the year - 107,108,770 74,142,326 91,737,954 basic Dilutive potential ordinary 21,761 - 1,179,162 shares Diluted 107,130,531 74,142,326 92,917,116 Adjusted earnings per share before exceptional items (pence) 0.42 0.35 2.19 Earnings per share- basic 0.42 0.06 1.94 (pence) Earnings per share- diluted 0.42 0.06 1.92 (pence) 6. Intangible fixed assets Period ended Period ended Year ended 30 June 30 June 31 December 2005 2004 2004 Unaudited Unaudited Audited £000s £000s £000s Cost & net book value Opening balance 38,046 19,451 19,451 Additions - - 5 Additions through - 18,516 18,564 acquisition Fair value adjustments - - 26 Closing balance 38,046 37,967 38,046 7. Reconciliation of movements in equity shareholders' funds Total equity shareholders' funds Unaudited £000s Profit for the period 445 Currency translation differences on foreign (16) currency net investments Costs associated with issue of shares to former owners of Lonsdale SRG (3) Net increase in shareholders' funds 426 Shareholders' funds at 31 December 2004 39,120 Shareholders' funds at 30 June 2005 39,546 8. Analysis of cash flows Period ended Period ended Year ended 30 June 30 June 31 December 2005 2004 2004 Unaudited Unaudited Audited £000s £000s £000s Returns on investment and servicing of finance Interest and similar income 27 52 116 received Interest and similar expenses (23) (9) (10) paid 4 43 106 Capital expenditure and financial investment Purchase of tangible fixed (193) (29) (304) assets Purchase of intangible fixed - - (5) assets (193) (29) (309) Acquisitions and disposals Purchase of subsidiary - (17,084) (17,060) undertakings and assets Lonsdale deferred (1,100) - (300) consideration paid PCL deferred consideration 471 - - paid Cash acquired on acquisition - - 238 of subsidiary 1,571 (17,084) (17,122) Financing Issue of ordinary share - 17,500 17,500 capital Expenses paid in connection (3) (707) (713) with share issue (3) 16,793 16,787 9. Analysis of net funds Period ended Period ended Year ended 30 June 30 June 31 December 2005 2004 2004 Unaudited Unaudited Audited £000s £000s £000s Cash at bank and in hand Opening balance 3,120 3,710 3,710 Cash flow during the period -2,486 -1,057 (607) Exchange movement -9 - 17 Closing balance 625 2,653 3,120 Debt due within one year Opening balance - (240) (240) Cash flow during the period - 240 240 Closing balance - - - 625 2,653 3,120 This information is provided by RNS The company news service from the London Stock Exchange

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