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Rightmove Plc (RMV)

  Print      Mail a friend       Annual reports

Friday 31 August, 2007

Rightmove Plc

Interim Results

Rightmove Plc
31 August 2007


                                 RIGHTMOVE PLC

                              2007 INTERIM RESULTS

Rightmove plc, the UK's no. 1 property website, announces Interim Results for
the six months ended 30 June 2007.

Financial Highlights
for the six months ended 30 June 2007

Highlights

• Revenue up 68% to £25.4m (2006: £15.1m)
• Underlying operating profit * up 60% to £13.2m (2006: £8.3m)
• Net cash of £17.5m (2006: £5.2m)
• Underlying earnings per share up 70% to 8.2p (2006: 4.9p)
• Interim dividend of 2.0p per ordinary share (2006:1.5p)
• Share buy back programme initiated with 1.7m shares (at a cost of
  £10.5m) transferred into treasury by 26 July 2007
• Number of advertisers up 26% to 18,514 (2006: 14,680)
• Visits to Rightmove.co.uk up 58% to 24.3m per month
• Successful launch of Rightmove Choice products contributing to an
  increase in average revenue per advertiser per month of 29% to £234.

* from continuing operations and excludes share-based payments expense, National
  Insurance on share options under issue and flotation costs

Ed Williams, Group Managing Director, said:

'Rightmove continued to grow rapidly in the first half of the year as we
increased our membership of agents and new homes developers.  We introduced a
suite of new products under the Rightmove Choice name, giving our members the
opportunity to stand out from their competitors and further enhance the value
for money of their online marketing spend. Rightmove has become an essential
tool for all homebuyers with around nine out of ten properties available in the
UK now presented on the website.

Rightmove will continue to expand its advertising services both to property
advertisers on Rightmove.co.uk and to a wider group of advertisers on our new
mapping site, Aboutmyplace.co.uk.  We also offer a service to holiday home
owners who wish to advertise their properties for holiday letting, through our
acquisition of a two-third stake in holidaylettings.co.uk.

We are confident about the Company's prospects for the second half of the year.'

Chairman and Group Managing Director's statement

Overview

The Interim Results reflect continued rapid and profitable growth in the
Rightmove business.

Revenue increased 68% to £25.4m compared to the same period last year, driven by
strong growth in revenue per advertiser and in sales to new members. Underlying
operating profit* grew by 60% to £13.2m.

The number of advertisers grew 26% to 18,514 members compared with the first six
months of 2006. Rightmove Choice was launched, allowing agents and developers to
differentiate themselves by increasing their online profile. 2,900 Rightmove
Choice products were in use at the mid-year. As at June 2007, the average
revenue per advertiser per month, including Rightmove Choice products, increased
by 29% to £234 (2006: £181).

The operating margin for the first half of 2007 was 51.9% compared to 54.7% for
the first half of 2006 and 52.1% for the whole of 2006. Operating margin is
typically lower in the first half of the year than in the second half, making
the 2007 first half number consistent with a further strengthening of margin in
the full year. In the first half of 2006, operating margin reflected the estate
agency sales force working on the sale of Home Information Packs (HIPs) rather
than on the core business alone.

Costs of continuing operations excluding share-based payment and National
Insurance expenses for the first six months were up 79% compared to the same
period twelve months ago at £12.2m (2006: £6.8m) due primarily to higher
personnel costs associated with sales and technology, together with the planned
increase in marketing spend in line with revenue growth.

Membership growth

The first six months have seen continued growth on all key metrics compared with
the same period a year ago:

• Overall membership up 26% to 18,514
• Estate agency membership up 19% to 12,295
• New homes developments up 47% to 3,478
• Letting agents up 47% to 2,234
• Overseas homes agents up 18% to 507
• Retention rate among members unchanged at 93%

The percentage of estate agents who are members has increased from 74% a year
ago to around 88%. The growth rates have been highest in Northern England,
Scotland and in Wales, which started from a lower base. Evidence from the South
East and East Anglia suggests there is no inherent reason why Rightmove cannot
achieve close to 100% adoption among estate agents.

Though Rightmove had already established a very strong position among the
largest estate agency groups and new homes developers, there have nonetheless
been some key customer gains of note. Kinleigh Folkard & Hayward, a major London
estate agent, joined during 2007 which means that all 15 of the largest UK
estate agents list on Rightmove. Among house builders, McCarthy and Stone joined
resulting in 19 of the largest 20 house builders now also listing on Rightmove.

Rightmove Choice

Prior to February 2007, estate agents and developers could not invest more than
the basic membership fee on their marketing with Rightmove. Furthermore, estate
agents and developers primarily used traditional classified advertising media
such as newspapers to promote their brand and attract new home listings. With
the launch of Rightmove Choice, we now offer a selection of ways in which agents
and developers can increase their marketing effectiveness and their online
prominence on Rightmove. The initial three products BrandPlus, Premium Display
and Showcase cost from £50 to £275 per month depending on the product type and
number of properties listed.

Adoption has exceeded expectations with over 2,900 products in use at the end of
June 2007. This means that more than one in six estate agent offices and new
homes developers have chosen to differentiate the way they present themselves
and their properties on Rightmove. Based on the mix of sales achieved to date
the average price per product per month is approximately £95.

Revenue per advertiser

The 12-month period from June 2006 to June 2007 has seen a substantial increase
in the average revenue per advertiser which now stands at £234, up 29% on a year
ago. Among the major contributors to this increase have been:

• An increase on 1 January in our base membership price among estate agents from 
  £195 to £250 per office per month, with similar percentage increases for new 
  homes developers and letting agents
• The significantly higher rates paid by new joiners than by our longer
  standing members who benefit from a loyalty discount (new joiners in the last 
  12 months comprising 26% of our total customers)
• Adoption of Rightmove Choice products.

Growth prospects

The property industry's marketing spend is directed predominantly towards
newspapers. Indeed, even with the strong revenue growth year-to-date, Rightmove
accounts for a mere 10% of the total spend. Were Rightmove to achieve full
penetration in its markets (implying a further increase of around a third over
current membership levels) this spend would still only represent around 13% of
the total.

Rightmove continues to appear cost effective and demonstrable value for money.
This can be seen by the sales growth and the retention rate despite increases in
the basic membership charge on 1 January. It is further reinforced by the
initial adoption of Rightmove Choice products.

Holiday Lettings Limited

In March 2007 we completed our acquisition of a 66.7% interest in Holiday
Lettings Limited (www.holidaylettings.co.uk ), one of the leading three holiday
homes rental advertising websites. Immediately following the acquisition,
Rightmove's embryonic holiday lettings business was folded into the Holiday
Lettings proposition. The acquisition gives Rightmove a level of know-how in the
travel and tourism business which is as important in the holiday rentals sector
as knowledge of the property market.

The business has traded well ahead of both expectations and the projections used
to make the investment case. Whilst currently driven by higher sales and higher
retention rates than anticipated, we also believe there will be early
opportunities to increase prices.

Holiday Lettings is earlier in its development than Rightmove. It is achieving a
doubling on most of its key metrics, just as Rightmove did two or three years
ago. Already profitable, we see the prospect of the business generating 50%
margins in two to three years' time.

Expanding our advertising services

During the first half of 2007 we have phased in our own mapping service based on
Microsoft Virtual Earth TM technology. In terms of maps served, simply by people
looking to identify the precise location of a property, Rightmove is already the
UK's fifth largest mapping site. We have named this service 'Aboutmyplace' with
its own URL www.aboutmyplace.co.uk. This gives us the flexibility to develop the
service as a fully fledged mapping site and to widen the range of information
and services we can provide without distracting or deflecting users of the
Rightmove.co.uk website from their main objective of finding their right home.

The first step in the commercialisation of Aboutmyplace has been the
introduction of banner advertising around the maps, currently limited to two
banners per page. This allows non-property advertisers to reach the Rightmove
audience. With more than 20m pages of maps being served this provides an
inventory of 40m banner adverts per month.

Initial adoption by advertisers has been encouraging based on the demographics
of our users generally and the interest of many advertisers to reach an audience
which is specifically considering moving home.

Dividend and shareholdings

The Board intends to pay an interim dividend of 2.0p (2006:1.5p) in line with
the declared progressive dividend policy. The interim dividend will be paid on
12 October 2007 to members on the register on 14 September 2007.

In June 2007, Rightmove initiated a share buy back programme in addition to
returning cash to shareholders by way of dividend. As at the end of June 2007,
Rightmove had bought back into treasury 1.18m shares at an average price of 606p
per share. The Board of Rightmove anticipates that, subject to market
conditions, the share buy back programme will continue. The ability to buy back
shares has been made possible by the significant increase in the proportion of
shares in public hands which now approximates 60% of the total share capital, as
compared to around 25% at the start of the year. This significant change has
arisen as a result of Countrywide plc's distribution of Rightmove shares to its
shareholders coincident with its acquisition by a private equity firm (returning
their approximate 22% Rightmove interest to Countrywide's former investors) and
the subsequent sell-down of approximately six million shares each by founding
shareholders Connells Ltd and Halifax Estate Agencies Ltd (leaving each with
around 21.3m shares).

Board changes

At the Annual General Meeting in May 2007, Jane Pridgeon stepped down from the
Board as the Halifax Estate Agencies Ltd nominee and was replaced by Colin Kemp.
We thank Jane for her support and guidance over the years and wish her well in
retirement.

Prospects for the second half of 2007

Whilst equity and debt markets have been turbulent in recent weeks, the outlook
continues to be positive in terms of our 2007 performance. The Board also
believes that Rightmove will continue to benefit from wider structural changes
in the property advertising industry in which it operates.


Scott Forbes                 Ed Williams
Chairman                     Group Managing Director

31 August 2007


For further information please contact:

Rightmove
Ed Williams, Group Managing Director and
Graham Zacharias, Group Finance Director                     020 7087 0700

Maitland
Neil Bennett / Brian Hudspith /Charlotte Walsh               020 7379 5151


Consolidated income statement
for the six months ended 30 June 2007

                                  6 months       6 months ended 30 June 2006         12 months ended 31 December 2006
                                     ended       
                              30 June 2007                                      
                                Continuing   Continuing   Discontinued     Total   Continuing   Discontinued     Total
                       Note     operations   operations     operations             operations     operations
                                      £000         £000           £000      £000         £000           £000      £000

Revenue                             25,425       15,099              -    15,099       33,626              -    33,626
                                   --------     --------       --------  --------     --------       --------   -------
Administrative
expenses                           (13,780)      (9,020)        (4,650)  (13,670)     (19,869)        (6,668)  (26,537)
                                   --------     --------       --------  --------     --------       --------   -------
Operating profit before
share-based payments, NI
on share options under
issue and flotation costs           13,184        8,256         (4,650)    3,606       17,530         (6,668)   10,862

Share-based payments      4         (1,210)        (794)             -      (794)      (2,168)             -    (2,168)

NI on share options 
under issue               4           (329)           -              -         -            -              -         -

Flotation costs                          -       (1,383)             -    (1,383)      (1,605)             -    (1,605)
                                   --------     --------       --------  --------     --------       --------   -------

Operating profit                    11,645        6,079         (4,650)    1,429       13,757         (6,668)    7,089
                                   --------     --------       --------  --------     --------       --------   -------
Financial income                       488           78              -        78          322              -       322

Financial expenses                       -            -              -         -          (66)             -       (66)
                                   --------     --------       --------  --------     --------       --------   -------
Net financial income                   488           78              -        78          256              -       256
                                   --------     --------       --------  --------     --------       --------   -------
Share of associate                       -          129              -       129          (77)             -       (77)
profit / (loss)                    --------     --------       --------  --------     --------       --------   -------

Profit before tax                   12,133        6,286         (4,650)    1,636       13,936         (6,668)    7,268
Income tax expense        6         (3,447)      (2,532)         1,395    (1,137)      (4,917)         1,993    (2,924)
                                   --------     --------       --------  --------     --------       --------   -------
Profit for the period                8,686        3,754         (3,255)      499        9,019         (4,675)    4,344
                                   --------     --------       --------  --------     --------       --------   -------
Attributable to:
Equity holders of 
the Parent                           8,686        3,754         (3,255)      499        9,019         (4,675)    4,344
                                   --------     --------       --------  --------     --------       --------   -------

Earnings per ordinary share (pence)

Basic                     5           7.00         3.11          (2.70)     0.41         7.37          (3.82)     3.55

Diluted                               7.00         3.03          (2.63)     0.40         7.27          (3.77)     3.50


Consolidated statement of recognised income and expense
for the six months ended 30 June 2007

                                    6 months           6 months      12 months
                                       ended              ended          ended
                         Note   30 June 2007       30 June 2006    31 Dec 2006
                                        £000               £000           £000
Tax in respect of
share options
recognised directly in
equity                      6            857              3,305          4,681
                                      --------           --------      --------
Net income recognised
directly in equity                       857              3,305          4,681
Profit for the period                  8,686                499          4,344
                                      --------           --------      --------

Total recognised
income and expense for
the period                             9,543              3,804          9,025
                                      --------           --------      --------


Consolidated balance sheet
as at 30 June 2007

                          Note    30 June 2007      30 June 2006   31 Dec 2006
                                          £000              £000          £000
Non-current assets
Property, plant and
equipment                                1,511               998         1,375
Intangible assets                        6,876             4,737         1,471
Investments                                  -               185             -
Deferred tax asset                       2,262             3,012         1,241
                                      ---------         ---------     ---------
Total non-current
assets                                  10,649             8,932         4,087
                                      ---------         ---------     ---------
Current assets
Trade and other
receivables                              4,912             2,282         2,921
Income tax receivable                      163             1,585           163
Cash and cash
equivalents                             17,464             5,206        14,881
                                      ---------         ---------     ---------
Total current assets                    22,539             9,073        17,965
                                      ---------         ---------     ---------
Total assets                            33,188            18,005        22,052
                                      ---------         ---------     ---------
Current liabilities
Trade and other
payables                     7         (10,169)           (5,371)       (5,835)
Income tax payable                      (3,692)                -             -
Provisions                                 (96)                -           (96)
                                      ---------         ---------     ---------

Total current
liabilities                            (13,957)           (5,371)       (5,931)
                                      ---------         ---------     ---------
Non-current liabilities
Deferred tax
liabilities                               (126)                -             -
Deferred consideration                  (2,202)                -             -
Provisions                                 (64)                -          (112)
                                      ---------         ---------     ---------
Total non-current
liabilities                             (2,392)                -          (112)
                                      ---------         ---------     ---------
Net assets                              16,839            12,634        16,009
                                      ---------         ---------     ---------
Equity
Share capital                            1,327             1,327         1,327
Share premium                              105            18,711             -
EBT own shares reserve                 (17,149)          (17,707)      (17,663)
Retained earnings                       32,556            10,303        32,345
                                      ---------         ---------     ---------
Total equity
attributable to equity
holders of the Parent         9         16,839            12,634        16,009
                                      ---------         ---------     ---------


Consolidated statement of cash flow
for the six months ended 30 June 2007
                                           6 months       6 months   12 months
                                              ended          ended       ended
                                Note   30 June 2007   30 June 2006 30 Dec 2006
                                               £000           £000        £000
Cash flows from operating 
activities

Profit for the period                         8,686            499       4,344

Adjustments for:

Depreciation charges                            218            368         385

Amortisation charges                            185              -         304

Impairment of tangible
and intangible assets                             -            971       1,011

Loss on sale of
investment in
associate                                         -              -         206

Investment income                                 -           (129)       (129)

Interest income                                (488)           (78)       (322)

Interest expense                                  -              -           1

Share options charge                          1,210            794       2,168

Income tax expense                            3,447          1,137       2,924
                                           ----------     ---------- ----------
Operating profit
before changes in
working capital                              13,258          3,562      10,892

(Increase) / decrease
in trade and other
receivables                                  (1,728)           172        (471)

Increase / (decrease)
in trade and other
payables                                      1,117         (1,305)       (839)

(Decrease) / increase
in provisions                                   (48)             -         208
                                           ----------     ---------- ----------
Cash generated from
operations                                   12,599          2,429       9,790

Income taxes (paid) /
received                                          -           (164)      1,259
                                           ----------     ---------- ----------
Net cash from
operating activities                         12,599          2,265      11,049
                                           ----------     ---------- ----------
Cash flows from investing
activities

Interest received                               488             78         322

Acquisition of
property, plant and
equipment                                      (341)          (307)       (938)

Acquisition of
intangible assets                              (157)          (222)       (249)

Acquisition of
investment in
associate                                         -         (3,243)     (3,319)

Acquisition of
subsidiary (net of
cash acquired)                    10         (3,177)             -           -

Proceeds from sale of
investment in associate                           -              -       3,243
                                           ----------     ---------- ----------
Net cash from
investing activities                         (3,187)        (3,694)       (941)
                                           ----------     ---------- ----------
Cash flows from financing
activities

Interest paid                                     -              -          (1)

Dividends paid                               (3,729)             -      (1,861)

Purchase of treasury shares                  (4,043)             -           -
Share issue                                     105          1,055       1,055

Proceeds on exercise
of share options                                838              -           -
                                           ----------     ---------- ----------
Net cash from
financing activities                         (6,829)         1,055        (807)
                                           ----------     ---------- ----------
Net increase /
(decrease) in cash and
cash equivalents                              2,583           (374)      9,301

Cash and cash
equivalents at 1
January                                      14,881          5,580       5,580
                                           ----------     ---------- ----------
Cash and cash
equivalents at period end                    17,464          5,206      14,881
                                           ----------     ---------- ----------

Notes


1 General information

Rightmove plc is a Company incorporated in England and Wales No. 03997679, under
the Companies Act 1985.


2 Basis of preparation

This interim financial information has been prepared applying the accounting
policies and presentation that were applied in the preparation of the Group's
financial statements for the year ended 31 December 2006.
The financial statements are prepared on the historical cost basis.
The financial statements for the half year ended 30 June 2007 have not been
audited, although the auditor, KPMG Audit Plc, has carried out an independent
review.

The comparative figures for the financial year ended 31 December 2006 are
extracted from the Group's statutory accounts for that financial year. Those
accounts have been reported on by the Company's auditors and delivered to the
registrar of companies. The report of the auditors:

(i) was unqualified,
(ii) did not include a reference to any matters to which the auditors drew
attention by way of emphasis without qualifying their report, and
(iii) did not contain a statement under section 237(2) or (3) of the Companies
Act 1985.


3 Segmental reporting

Due to the discontinuance of the Home Information Packs (HIPs) business in 2006
all activities in the current year relate to the property advertising segment.
There are no other separately identifiable business segment income statement or
balance sheet items.

For the six months ended 30 June 2006
                                        Property
                                     advertising           HIPs         Total
                                            £000           £000          £000
Income statement information
Segmental revenue                         15,099              -        15,099
Depreciation and amortisation                262            106           368
                                       ----------     ----------    ----------

Segmental operating profit / (loss)        6,079         (4,650)        1,429
Financial income                              78              -            78
Financial expenses                             -              -             -
Income tax expense                        (2,532)         1,395        (1,137)
Share of associate profit                    129              -           129
                                      ----------     ----------    ----------
Profit for the period                      3,754         (3,255)          499
                                      ----------     ----------    ----------
Balance sheet information
Capital expenditure                        3,565            207         3,772
Property, plant and equipment                998              -           998
Intangible assets                          4,737              -         4,737

Total assets                              17,591            414        18,005

Total liabilities                         (5,144)          (227)       (5,371)
                                                
For the year ended 31 December 2006               
                                        Property
                                     advertising           HIPs         Total
                                            £000           £000          £000
Income statement information
Segmental revenue                         33,626              -        33,626
Depreciation and amortisation                550            139           689
                                      ----------     ----------    ----------

Segmental operating profit / (loss)       13,757         (6,668)        7,089
Financial income                             322              -           322
Financial expenses                           (66)             -           (66)
Income tax expense                        (4,917)         1,993        (2,924)
Share of associate loss                      (77)             -           (77)
                                      ----------     ----------    ----------
Profit for the year                        9,019         (4,675)        4,344
                                      ----------     ----------    ----------
Balance sheet information
Capital expenditure                          901            286         1,187
Property, plant and equipment              1,375              -         1,375
Intangible assets                          1,471              -         1,471

Total assets                              22,052              -        22,052

Total liabilities                         (5,612)          (431)      (6,043)


Notes (continued)


4 Share-based payments

In accordance with IFRS 2 a charge of £1,210,491 (30 June 2006: £794,000) is
included in the income statement, being the amortisation of the value of the
share options granted in 2006. Employer's National Insurance is being accrued at
a rate of 12.8% on the difference between the share price at the balance sheet
date and the average exercise price of the share options.


5 Earnings per share

Earnings per ordinary share is based upon profit after taxation and on a
weighted average of 124,136,849 shares in issue during the period
(30 June 2006: 120,860,606). Underlying earnings per ordinary share which is
calculated before the charge for HIPs costs, flotation costs, share-based
payments and National Insurance on share options under issue was 8.24p for the
six months to 30 June 2007 (six months to 30 June 2006:4.85p).


6 Taxation

The Group's consolidated effective tax rate for the six months ended 30 June
2007 is 28% (30 June 2006: 69 %). The difference between the standard rate and
the effective rate at 30 June 2006 was due to the high level of expenditure on
which no tax relief was available. This consisted of mainly flotation costs and
share-based payments.

The deferred tax asset of £2,262,000 at 30 June 2007 is in respect of tax losses
brought forward, share options and accelerated capital allowances.

The deferred tax asset relating to share options at 30 June 2007 is £1,682,000
(1 January 2007: £320,000). This increase is mainly due to the Company's share
price rising from £3.95 at 1 January 2007 to £6.28 at 30 June 2007. The deferred
tax movement on this asset has been recognised in equity (£857,000) to the
extent that it exceeds the related IFRS 2 charge reflected in the income
statement.

As at 1 January 2007, the Company had a deferred tax asset in respect of tax
losses carried forward of £689,000. These losses crystallised as a result of the
corporation tax deduction available under Schedule 23 in respect of share
options exercised by employees. The large deduction resulted from options
exercised when the Company listed on the London Stock Exchange. The deferred tax
asset in respect of these losses was released directly to equity in accordance
with the requirements of IFRS 2 and a notional charge of £345,000 was applied in
the period ended 30 June 2007.


7 Trade and other payables

                               30 June 2007       30 June 2006     31 Dec 2006
                                       £000               £000            £000

Trade payables                          989                862             925
Amounts owed to related
parties                                   -                  -               4
Amounts accrued in relation
to purchase of treasury
shares                                3,094                  -               -
Trade accruals                        2,060                949           1,472
Other creditors                         373                  -             339
Other taxation and social
security                              2,201              1,032           1,320
Deferred income from
government contract                   1,452              2,528           1,775
                                   ----------         ----------      ----------
                                     10,169              5,371           5,835
                                   ----------         ----------      ----------

8 Share buy back

In June 2007, the Company commenced a share buy back program to purchase its own
shares. Treasury shares represent the aggregate cost of £7,136,921 of the
Company's ordinary shares purchased as at 30 June 2007. These shares were
acquired on the open market using funds provided by the Company. The maximum and
minimum prices paid in respect of shares purchased were 612p and 600p per share
respectively. The total number of shares bought back at 30 June 2007 was
1,176,966, representing 1% of the issued share capital.

9 Reconciliation of movements in shareholders' funds

                                   6 months           6 months       12 months
                                      ended              ended           ended
                               30 June 2007       30 June 2006     31 Dec 2006
                                       £000               £000            £000

At 1 January                         16,009              5,622           5,622
Profit for the period                 8,686                499           4,344
Dividends to shareholders            (3,729)                 -          (1,861)
New shares issued                       105             20,037          20,037
EBT own shares held                     514            (17,707)        (17,707)
Bonus issue                               -             (1,275)         (1,275)
Notional corporation tax
charge recognised in
reserves                                  -              1,359               -
Equity settled share options
charge                                1,210                794           2,168
Tax in respect of share
options recognised directly
in equity                               857              3,305           4,681
Purchase of treasury shares          (7,137)                 -               -
Gain on exercise of share
options                                 324                  -               -
                                  ----------         ----------       ----------
Closing shareholders' funds          16,839             12,634          16,009
                                  ----------         ----------       ----------

Notes (continued)

10 Acquisitions

On 21 March 2007, the Company acquired 66.67% of the ordinary share capital of
Holiday Lettings Limited (HLL), a provider of online advertising services to
owners of holiday rental properties, for consideration of £3,216,208, including
acquisition costs of £72,977. From the date of acquisition to 30 June 2007, the
acquisition contributed £483,149 to Group revenue and £92,620 to Group profit.
If the acquisition had been completed on the first day of the financial year,
the acquisition would have contributed £952,217 to Group revenue and £258,179 to
Group profit.

In terms of the shareholders' agreement a put and call option exists to acquire
the remaining 33.33%. The earliest opportunity HLL management has to exercise
the put option is 30 June 2009 based on the audited accounts for the 12 months
ending 31 December 2008. The deferred consideration element has been recognised
based on management's best estimate of likely EBIT for the year then ending at a
multiple of six times the agreed formula and discounted at a risk-free rate of
5.72%.

All intangible assets were recognised at their respective values. The residual
excess over the net assets acquired is recognised as goodwill in the financial
statements. The adjustments applied to the book values of the assets and
liabilities of HLL in order to present the net assets at fair values in
accordance with Group accounting principles are as follows:

                                  Carrying              Fair              Fair
                                    values             value            values
                           pre-acquisition       adjustments
                                      £000              £000              £000

Net assets acquired
Non-current assets
Property, plant and equipment           12                 1                13
Intangible assets -
customer relationships                   -               514               514
                                  ----------        ----------        ----------
                                        12               515               527
Current assets
Trade and other
receivables                            279               (16)              263
Cash and other
cash equivalents                        36                 -                36
                                  ----------        ----------        ----------
                                       315               (16)              299
Current liabilities                   (207)                5              (202)

Non-current liabilities
Deferred tax liabilities                (2)             (124)             (126)
                                  ----------        ----------        ----------
Fair value of net assets
acquired                               118               380               498
Purchase consideration
- cash                                                                   3,213
Purchase consideration
- accrued expenses                                                           3
Purchase consideration - deferred                                        2,202
                                  ----------        ----------        ----------
Total consideration                                                      5,418
Goodwill                                                                 4,920

Included in the £4,920,003 of goodwill recognised are certain intangible assets
that cannot be individually separated and reliably measured due to their nature.
These items include an assembled workforce and operating synergies.

                                                                 6 months
                                                                    ended
Net cash flow on acquisition                                 30 June 2007
                                                                     £000

Cash paid for subsidiary                                           (3,213)
Cash acquired                                                          36
                                                                 ----------
Net cash outflow                                                   (3,177)
                                                                 ----------


Independent review report to Rightmove plc

Introduction

We have been instructed by the company to review the financial information for
the six months ended 30 June 2007 which comprises the primary financial
statements and the related notes 1 to 10. 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 company in accordance with the terms of our
engagement to assist the company in meeting the requirements of the Listing
Rules of the Financial Services Authority. Our review has been undertaken so
that we might state to the company those matters we are required to state to it
in this 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 for
our review work, for this report, or for the conclusions we have reached.

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 should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the UK. A review consists
principally of making enquiries of 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 Statements 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 2007.


KPMG Audit Plc
Chartered Accountants
Milton Keynes
31 August 2007






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