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Interactive Prospect (STGR)

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Friday 15 September, 2006

Interactive Prospect

Interim Results

Interactive Prospect TargetingHdgs
15 September 2006


For release                         07.00am                    15 September 2006

            
               Interactive Prospect Targeting Holdings plc ('IPT')

                                Interim Results

IPT (IPH.L), the UK's leading on-line direct marketing services company,
announces record interim results for the six months to 30 June 2006, reflected
in the strong organic growth of operating profits in the core businesses. A
major acquisition in France in May, IPT'S first in Europe and largest to date,
has moved the business onto a European dimension.

Highlights

   • Turnover up 73% to £9.8m (2005 : £5.7m)
   • Headline operating profits up 156% to £1.8m (2005 : £0.7m)
   • Pre-tax profits up 94% to £1.75m (2005 : £1.19m)
   • Diluted EPS up 23% to 3.2p (2005 : 2.6p)
   • Total equity £31.02m, (2005 : £8.31m)
   • Headline operating margin 18.6% (2005: 12.6%)
   • Acquisition of Directinet, the leading online direct marketing company
     in France, on May 24th for approx £22.4m (maximum consideration)

Commenting, Lionel Thain, Chief Executive, said: 'In 2006 internet advertising
is expected to represent the third largest segment within the total advertising
market after TV and newspapers, growing at on current estimates at nearly 50%
per annum compared to less than 4% in overall advertising expenditure. We view
the remainder of 2006 with a positive outlook. We retain our market leading
position in Internet direct marketing in the UK and with the acquisition have
established a similar position in the wider European market. The second half has
begun on a positive note.'

Notes to Editors

   • IPT is established as the number 1 online consumer data and services
     company in the UK
   • Directinet similarly establishes the Group as the market leader in
     France
   • The UK and French markets together account for approximately 64% of
     total internet advertising spend across Europe
   • The Group's market position is continually enhanced by the introduction
     of additional successful products and services to the French market
   • Both markets showing continuing high levels of growth
   • The Group has over 750 blue chip clients
   • The Group's data bases currently list over 6m e-mail addresses and 9m
     postal addresses


Enquiries:

Interactive Prospect Targeting Holdings plc
Lionel Thain, CEO                         Tel: 020 7932 4100
Ivan Southall, Director                   Tel: 020 7932 4100

Adventis Financial PR
Peter Binns                               Tel: 020 7034 4760 / 07768 392 582
Chris Steele                              Tel: 020 7034 4759 / 07979 604 687
Annie Evangeli                            Tel: 020 7034 4757 / 07778 507 162

Canaccord Adams Ltd
Mark Williams                             Tel: 020 7518 2777



Overview

Interactive Prospect Targeting Holdings plc (IPT) has continued to make
significant progress in the 6 months to 30 June 2006 with its core businesses
experiencing strong organic growth. In addition, a major acquisition in France
has moved the business into a European dimension.

In the six-month period to June 2006:

   • Revenue increased 73% to £9.8 million on June 2005;
   • Headline Operating Profit* increased by 156% to £1.8m on June 2005 (see
     note 3);
   • Headline earnings** per share increased 111% to 4.0p on June 2005 (see
     note 5). Basic earnings per share were 3.6p;
   • Group operating profit rose by 131% to £1.7m on June 2005;
   • Acquisition of Directinet, the leading online direct marketing services
     company in France, for a maximum consideration of €33m (£22.4m) was
     completed. The above results include Directinet's profit from the date of
     acquisition, being 31 May 2006;

IPT continues to lead the UK as the number 1 online consumer data and services
company, which is reflected in the strong growth of operating profits.

The acquisition of Directinet in May 2006 establishes the Group with a market
leading position in France, which will be further enhanced by introducing the
Group's successful UK products and services to the French market.

The second half-year has begun on a positive note from all of our core UK
operating divisions, with the integration of Directinet progressing as expected.

--------------------------
* before goodwill impairment, amortisation of other intangibles and one-time
restructuring costs.
**before goodwill impairment, amortisation of other intangibles, one-time
restructuring costs and profit on available-for -sale investments.
*before goodwill impairment, amortisation of other intangibles, and one-time
restructuring costs as defined in note 3.



CHAIRMAN'S STATEMENT

IFRS
This is the Group's first set of results under the new IFRS accounting
standards. The principal changes relate to goodwill, share based payments and
tax expense but had minimal effect on the underlying operating performance of
the Group in this period.

Results
Revenues increased by 73% to £9.8m (2005: £5.7m) in the 6 months ended June
2006, with strong growth across all product lines.

Headline Operating profits* for the period increased by 156% to £1.8m (2005:
£0.7m). Significantly our headline operating margin* for the 6 months to June
2006 increased to 18.6%, up from 12.6% for the 6 months to 30 June 2005 and
14.6% for the 12 months to 31 December 2005.

Group Operating profit for the period was £1.7m (2005: £0.7m), profit after tax
was £1.3m (2005: £0.9m), and basic earnings per share were 3.6p (2005: 3.0p)

Overview
UK Internet advertising expenditure continues to grow well ahead of the general
growth in advertising expenditure. The World Advertising Research Centre's,
European Advertising & Media forecast July 2006, predicts growth in Internet
advertising expenditure of 49.9% in 2006 (to £2bn) compared to a general growth
of 3.9% (to £15.5bn) in overall advertising expenditure. In 2006 Internet
advertising is expected to represent the third largest segment within the total
advertising market behind only TV and Newspapers.

IPT has continued to flourish in this rapidly expanding market place. Our
Customer Acquisition products go from strength to strength with MyOffers.co.uk
continuing to lead the market in the collection of on-line consumer information
for marketing purposes. Customer Acquisition currently collects between 3m to 4m
questionnaires each month on behalf of its customers. WebBrands, which was
established in 2005, is now firmly established as the UK's leading shared
registration program.

Our IPT Direct products continue to provide data to its customers for direct
communication by email, post or SMS. Following the acquisition of the Postal
Preference Service in 2005, the provision of data for postal direct marketing
has increased both in numbers and value and now represents a significant
proportion of this revenue. IPT currently carries out, on average, over 139
direct campaigns per month on behalf of its clients.

IPT continues to develop new and innovative products and launch new web sites
designed to acquire data focussed on specific market segments. In July IPT
launched MyPropertySpy.co.uk, a web site dedicated to acquiring data about
property and home movers and providing information to these individuals. This
web site is rapidly building a database of marketing prospects representing
consumers at a particular life-cycle stage.

Acquisitions
As announced on 24 May 2006, the Group acquired the entire issued share capital
of Directinet for a maximum consideration of €33.0m (approximately £22.4m). The
consideration is payable as an initial consideration of €24.5m (approximately
£16.9m) and a maximum contingent consideration of €8.5m (approximately £4.6m
after discounting future cash payments) to the management vendors based on
achieving certain financial targets for the years ended 31 December 2006, 2007
and 2008 (see note 8).

Directinet is the leader in Internet direct marketing in France. Together with
IPT's leading position in the UK market, the combined Group is uniquely well
positioned to lead the provision of Internet direct marketing services in 
Europe. Many of the programmes and sites provided by IPT in the UK can be
rapidly rolled out into France, enhancing the Directinet operating model and
leading to synergistic benefits. The acquisition is the first by IPT in Europe
and its largest to date.

The French and UK markets together account for some 64% of the total spend on
Internet advertising across Europe and both markets continue to grow rapidly.

In May 2006, to coincide with the acquisition of Directinet, the Group
successfully raised £11m, net of expenses, in a secondary placing of 5.6 million
shares on the AIM, at a price of £2.05 per share.

In April 2006, the Group acquired the business and assets of Direct Excellence
Limited ('DE'), a business that helps organisations develop more effective
customer management strategies, for an initial consideration of £0.5m (see note
8).

Subsequent to the period-ended 30 June 2006, the Group acquired the entire
issued share capital of Smartquotes Limited, an online company that provides
individuals with access to consumer finance products, for a total consideration
of £0.3m (see note 9).

Outlook
IPT has achieved its objectives for the first half-year and views the remainder
of 2006 with a positive outlook. It retains its market leading position in
Internet direct marketing in the UK and with the acquisition of Directinet is
now poised to participate in the wider European market.

Colin Lloyd
Non-executive Chairman
14 September 2006




INDEPENDENT REVIEW REPORT TO INTERACTIVE PROSPECT TARGETING HOLDINGS PLC ('the
GROUP')

Introduction
We have been instructed by the Group to review the financial information for the
six months ended 30 June 2006 that comprises the consolidated income statement,
the consolidated statement of recognised income and expenses the consolidated
balance sheet, the consolidated cash flow statement and related notes 1 to 9. We
have read the other information contained in the interim report and considered
whether it contains any apparent misstatements or material inconsistencies with
the financial information.

This report is made solely to the Group in accordance with Bulletin 1999/4
issued by the Auditing Practices Board. Our work has been undertaken so that we
might state to the Group 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 Group, for our review work, for this report, or for the conclusions we have
formed.

Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures are consistent with
those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.

International Financial Reporting Standards
As disclosed in note 1, the next annual financial statements of the Group will
be prepared in accordance with International Financial Reporting Standards as
adopted for use in the EU. Accordingly, the interim report has been prepared in
accordance with the recognition and measurement criteria of IFRS and the
disclosure requirements of the Listing Rules. The accounting policies are
consistent with those that the directors intend to use in the annual financial
statements. There is, however, a possibility that the directors may determine
that some changes to these policies are necessary when preparing the full annual
financial statements for the first time in accordance with IFRSs as adopted for
use in the EU.

Review work performed
We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of Group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with International Standards on Auditing (UK and
Ireland)  and therefore provides a lower level of assurance than an audit.
Accordingly, we do not express an audit opinion on the financial information.

Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2006.


Deloitte & Touche LLP
Chartered Accountants,
Reading
14 September 2006



CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2006

Continuing operations                     6 months        6 months        Year
                                             ended           ended       ended  
                                           30 June         30 June 31 December
                                              2006            2005        2005
                              Note       Unaudited       Unaudited   Unaudited
                                             £'000           £'000       £'000

Revenue                                      9,800           5,669      13,560

Cost of sales                               (2,163)         (1,109)     (2,381)

Gross profit                                 7,637           4,560      11,179
---------------------------   ------        --------        --------   ---------
Administrative expenses                     (5,811)         (3,846)     (9,197)
Costs of restructuring                           -               -        (230)
Goodwill impairment                            (88)              -           -
Amortisation of other
intangibles - non-data                         (88)              -         (36)
---------------------------   ------        --------        --------   ---------

Total administrative expenses               (5,987)         (3,846)     (9,463)

Operating Profit                             1,650             714       1,716

Profit on disposal of
available-for-sale      
investments                                      -             354         509

Interest on bank deposits                       97             119         190

Profit on ordinary activities
before tax                                   1,747           1,187       2,415

Tax                           4               (467)           (254)       (576)

Profit for the period from
continuing operations                        1,280             933       1,839

Profit attributable to equity
holders of the parent                        1,280             933       1,839

Earnings per share from
continuing operations         5

Basic (pence)                                  3.6             3.0         5.7

Diluted (pence)                                3.4             2.7         5.3



CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
FOR THE SIX MONTHS ENDED 30 JUNE 2006

                                           6 months        6 months        Year
                                              ended           ended       ended  
                                            30 June         30 June 31 December
                                               2006            2005        2005
                              Note        Unaudited       Unaudited   Unaudited
                                              £'000           £'000       £'000

Gains on revaluation of
available-for-sale investments
taken to equity                                   -              21          59
Tax on items taken directly to
equity                                          435             (13)        631

Net income recognised directly
in equity                                       435               8         690

Transfer to profit on sale of
available-for-sale investments                    -            (354)       (509)

Profit for the period                         1,280             933       1,839

Total recognised income for
the period                                    1,715             587       2,020

Attributable to:
Equity holders of the parent                  1,715             587       2,020



CONSOLIDATED BALANCE SHEET 
AT 30 JUNE 2006

                                       30 June           30 June   31 December
                                          2006              2005          2005
                              Note   Unaudited         Unaudited     Unaudited
                                         £'000             £'000         £'000
Non-current assets
Goodwill                      8         22,143                44         2,438
Other intangible
assets                                   4,884               649         2,556
Property, plant and
equipment                                  647               405           449
Deferred tax asset                       1,618               667         1,139

                                        29,292             1,765         6,582

Current assets
Trade and other
receivables                              7,435             3,301         5,212
Cash and cash
equivalents                              6,693             5,461         5,414

                                        14,128             8,762        10,626
Assets held for sale                         -               186             -

Total assets                            43,420            10,713        17,208

Current liabilities
Trade and other payables                (5,828)           (1,860)       (4,263)
Current Tax liabilities                   (638)             (538)         (187)
Obligations under
finance leases                              (1)               (8)           (5)
Bank loans and 
overdrafts                                 (83)                -             -
Provisions                    8         (1,723)                -             -

                                        (8,273)           (2,406)       (4,455)

Non-current liabilities
Bank loans and
overdrafts                                (332)                -             -
Deferred tax liability                    (888)                -          (219)
Provisions                    8         (2,911)                -             -

                                        (4,131)                -          (219)

Total liabilities                      (12,404)           (2,406)       (4,674)

Net assets                              31,016             8,307        12,534

EQUITY
Called up share capital       6            177               133           143
Share premium account         6         23,437             3,915         6,747
Own shares                    6            (72)               (2)          (72)
Share option reserve          6             91                40            62
Revaluation reserve           6              -               117             -
Other reserves                6          2,386             2,372         2,372
Retained earnings             6          4,997             1,732         3,282

Total equity                  6         31,016             8,307        12,534


These financial statements were approved by the Board of Directors on 
14 September 2006.

Signed on behalf of the Board

Eoin Ryan
Director



CONSOLIDATED CASH FLOW STATEMENT 
FOR THE SIX MONTHS ENDED 30 JUNE 2006

                                          6 months        6 months        Year
                                             ended           ended       ended  
                                           30 June         30 June 31 December
                                              2006            2005        2005
                                Note     Unaudited       Unaudited   Unaudited
                                             £'000           £'000       £'000

Net cash from operating
activities                        7          2,208             174       1,859

Investing activities
Interest received                               97             119         190
Proceeds on disposal of
available-for-sale
investments                                      -             516         755
Purchases of plant, property
and equipment                                 (374)           (230)       (451)
Purchases of other
intangibles - data                            (592)           (304)       (808)
Acquisition of subsidiary                  (11,100)              -      (1,121)

Net cash (used in) / from
investing activities                       (11,969)            101      (1,435)

Financing activities
Repayment of loans and
overdrafts on acquisitions                       -               -      (2,966)
Proceeds on issue of shares                 11,027             (12)      2,831
Purchase of own shares                           -               -         (70)
Repayment of obligations
under finance leases                            (5)             (6)         (9)

Net cash from /(used in)
financing activities                        11,022             (18)       (214)

Net increase in cash and
cash equivalents                             1,261             257         210

Cash and cash equivalents at
the beginning of the period                  5,414           5,204       5,204

Effect of foreign exchange
rate changes                                    18               -           -

Cash and cash equivalents at
the end of the period                        6,693           5,461       5,414




NOTES TO THE FINANCIAL STATEMENTS 
FOR THE SIX MONTHS ENDED 30 JUNE 2006

1.     Basis of preparation

For the year ending 31 December 2006, the Group will prepare consolidated
financial statements under IFRS as adopted by the European Commission. These
will be those International Accounting Standards, International Financial
Reporting Standards and related interpretations (SIC-IFRIC interpretations),
subsequent amendments to those standards and related interpretations, future
standards and related interpretations issued or adopted by the IASB that have
been endorsed by the European Commission. This process is ongoing and the
Commission has yet to endorse certain standards issued by the IASB.

This interim report for the 6 months ended 30 June 2006, is the first interim
report under IFRS. The interim report is unaudited and has been prepared on the
basis of the accounting policies set out in the financial statements for the
year ended 31 December 2005, amended where necessary to comply with IFRS.
Details of these amendments are set out in the Group's IFRS restatement
document, released on 12 September 2006 and available on the Group's website or
from the Company Secretary.

2.     Publication of non-statutory accounts

The financial information for the six months ended 30 June 2006 and 30 June 2005
has not been audited and does not constitute full financial statements within
the meaning of Section 240 of the Companies Act 1985.

The financial information relating to year ended 31 December 2005, does not
constitute full financial statements within the meaning of Section 240 of the
Companies Act 1985. This information is based on the Group's statutory accounts
for that period, restated for IFRS. Those statutory accounts that were prepared
in accordance with United Kingdom Generally Accepted Accounting Principles (UK
GAAP) received an unqualified report and have been filed with the Registrar of
Companies.

3.     Operating profit

                                          6 months        6 months        Year
                                             ended           ended       ended  
                                           30 June         30 June 31 December
                                              2006            2005        2005
                                         Unaudited       Unaudited   Unaudited
                                             £'000           £'000       £'000

Reported Operating Profit                    1,650             714       1,716

Add back:
- goodwill impairment                           88               -           -
- amortisation of other intangibles
  - non-data                                    88               -          36

- restructuring costs                            -               -         230

Headline Operating Profit                    1,826             714       1,982



4.     Tax

The tax expense comprises:
                                           6 months       6 months        Year
                                              ended          ended       ended  
                                            30 June        30 June 31 December
                                               2006           2005        2005
                                          Unaudited      Unaudited   Unaudited
                                              £'000          £'000       £'000

Current tax
UK corporation tax                            (446)           (407)       (696)
Adjustment in respect of prior years             -               -         (16)

                                              (446)           (407)       (712)

Deferred tax
Decrease in deferred tax liability              26             151         230
(Decrease)/ increase in recoverable
deferred tax asset                             (47)              2         (94)

                                               (21)            153         136

Total tax expense                             (467)           (254)       (576)


5.     Earnings per share

The calculation of earnings per share is based on the following profits and
number of shares:
                                   6 months ended               6 months ended                 Year ended
                                    30 June 2006                 30 June 2005                31 December 2005
                                      Unaudited                    Unaudited                    Unaudited
                             ------    -------   ------   ------    -------   ------   ------    -------     ------
                             Profit  Number of    Pence   Profit  Number of    Pence   Profit  Number of      Pence 
                                        shares      per              shares      per              shares        per 
                             £'000        '000    share    £'000       '000    share    £'000       '000      share
                            ------     -------   ------   ------    -------   ------   ------    -------     ------

Headline earnings 
per share*                   1,430      35,790      4.0      579     31,021      1.9    1,516     32,048        4.7

Reconciliation to 
reported earnings 
(net of tax at 30%):
-goodwill impairment           (88)                            -                            -
-amortisation of other
intangibles - non-data         (88)                            -                          (36)
-profit on 
available-for-sale
investments                      -                           354                          509
-restructuring costs             -                             -                         (230)
-tax effect of the 
above items                     26                                                         80

Basic earnings per share     1,280      35,790      3.6      933     31,021      3.0    1,839     32,048        5.7

Impact of share options          -       2,392     (0.2)       -      2,907     (0.3)       -      2,556       (0.4)

Diluted earnings per share   1,280      38,182      3.4      933     33,928      2.7    1,838     34,604        5.3

*Headline earnings per share excluding goodwill impairment, amortisation of
other intangibles, profit on available-for-sale investments, and one-time
restructuring costs have been included as the Directors consider that this
figure provides a meaningful measure on the ongoing business.


6.   Reconciliation of movement in total equity

                               Called     Share      Own        Share     Other   Retained   
                             up share   premium   shares       Option   reserve   earnings
                              capital   account               reserve      
                                £'000     £'000    £'000        £'000     £'000      £'000    £'000

At 1 January 2006                 143     6,747      (72)          62     2,372      3,282   12,534
Issue of shares                    34    17,163        -            -         -          -   17,197
Costs for issue of shares           -      (473)       -            -         -          -     (473)
Total income recognised 
for the period                      -         -        -            -         -      1,715    1,715
Share options movement              -         -        -           29         -          -       29
Translation reserve                 -         -        -                     14          -       14

At 30 June 2006                   177    23,437      (72)          91     2,386      4,997   31,016


     
7.   Reconciliation of operating profit to net cash inflow from operating 
     activities

                                          6 months        6 months        Year
                                             ended           ended       ended  
                                           30 June         30 June 31 December
                                              2006            2005        2005
                                         Unaudited       Unaudited   Unaudited
                                             £'000           £'000       £'000

Operating profit                             1,650             714       1,716

Depreciation                                   214             144         350
Amortisation - data                            449             127         476
Amortisation - other intangibles                88               -          36
Impairment of goodwill                          88               -           -
Share based payments expense                    29              15          37
Increase/ (decrease) in receivables            385            (838)     (1,746)
(Decrease)/ increase in payables              (680)             26       1,142
Tax expense                                    (15)            (14)       (152)

Net cash inflow from operating
activities                                   2,208             174       1,859

     
8.   Acquisitions

Directinet
On 24 May 2006, the Group acquired the entire issued share capital of Directinet
for a maximum consideration of €33.0m (approx. £22.4m). The provisional fair
value of net assets acquired was £3.3m giving rise to goodwill on acquisition of
£19.1m. The consideration was satisfied as follows:
                                                                     Unaudited
                                                                         £'000

Cash consideration                                                      11,182
Shares issued                                                            5,697
Provision for payments due on earn-out agreement                         4,607
Costs of acquisition                                                       885

                                                                        22,371

Direct Excellence
In April 2006, the Group acquired the business and assets of Direct Excellence
Limited for an initial consideration of £0.5m, giving rise to goodwill on
acquisition of £0.6m. The consideration was satisfied in cash. A further
contingent consideration of £27,000 is currently provided for.

9.     Subsequent event

On 28th July 2006, the Group acquired the entire issued share capital of
Smartquotes Limited, an online company that provides individuals with access to
consumer finance products, for a total consideration of £0.3m.


ADVISERS


REGISTERED NUMBER
5173250 England and Wales

GROUP HEAD OFFICE AND REGISTERED ADDRESS
30 Buckingham Gate
London
SW1E 6NN

NOMINATED ADVISOR AND BROKER
Canaccord Adams Limited
1st Floor, Brook House
27 Upper Brook Street
London W1

PRINCIPAL BANKERS
Barclays Bank plc
1st Floor
99 Hatton Garden
London EC1

SOLICITORS
Bircham Dyson Bell
50 Broadway
London SW1

AUDITORS
Deloitte & Touche LLP
Chartered Accountants
Reading

REGISTRARS
Capita Registrars
34 Beckenham Road
Beckenham
Kent BR3 4TU


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