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Rightmove Plc (RMV)

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Friday 29 February, 2008

Rightmove Plc

Final Results

Rightmove Plc
29 February 2008


Rightmove plc
33 Soho Square
London
W1D 3QU


                                 RIGHTMOVE plc
                            2007 PRELIMINARY RESULTS


Rightmove plc, the UK's number one property website, today announces preliminary
results for the year ended 31 December 2007.

Highlights:

• Revenue grew 69% from £33.6m to £56.7m

• Underlying profit before tax increased 77% from £17.7m to £31.4m*

• Number of advertisers increased by 18% from 16,321 to 19,287 with over
  90% of UK estate agents listing on the website

• Success of Rightmove Choice - more than one in five customers now uses
  one or more Rightmove Choice products

• Average revenue per advertiser rose 35% to £259 per month at the end of
  2007 (2006: £192 per month)

• Cash balance as at 31 December 2007 was £11.8m (2006: £14.9m)

• Scheme of Arrangement completed in January 2008 creating over £400m of
  additional distributable reserves

• Proposed final dividend of 6.0p, making a total dividend of 8.0p for the
  year (2006: 4.5p)

Notes: 
* from continuing operations and before share-based payments, NI on share
  options under issue, flotation and capital reconstruction costs.

Ed Williams, Group Managing Director, said:

'2007 has been a year of continued success for Rightmove. We now have more
customers using more of our products as they seek to differentiate themselves
and their properties. Rightmove continues to be the website of choice for home
hunters and where vendors expect to see their property advertised. Looking
forward, we expect to make further progress in a tougher environment for the
housing market. Rightmove is a cost effective way for our customers to advertise
and makes an even stronger contribution at times in the cycle when enquiries are
most scarce. The property advertising sector has, to date, seen a much more
limited structural switch from traditional media to the internet. A tougher
housing market means that property advertisers examine the cost effectiveness of
everything they do and this plays to Rightmove's strengths - the ability to
reach by far the largest audience of UK home movers. Rightmove is by far the
largest single source of quality enquiries to property advertisers.'


For more information please contact:

Rightmove
For Ed Williams, Group Managing Director, and Graham
Zacharias, Group Finance Director                             020 7087 0605

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


                    Introduction from Scott Forbes, Chairman

It is my pleasure to present Rightmove plc's financial results for the year
ended 31 December 2007.

Our first full year as a public company was a year of many achievements.
Foremost was the continued delivery of our proven service to home hunters and
our property advertisers. The value they associate with Rightmove is evident
from their usage of our website, with 320 million visits to the site and one in
four people who bought a house last year first seeing it on Rightmove. Currently
nine out of ten homes for sale in the UK are advertised on our website.

This year, we have also shown that Rightmove is of value to our advertisers for
far more than simply putting their properties in front of the UK's largest
audience of home movers. Rightmove Choice products, introduced in February 2007,
assist our customers in promoting their brands' strengths and differentiating
their product. One in five customers has now adopted at least one Rightmove
Choice product during the first year of their introduction. In addition, our
'best price' guide provides agents with objective evidence to share with their
own customers regarding the correct pricing of their property, of particular
importance in a tougher housing market.

We are equally proud of the increasingly important role we play with new home
developers. We now count all 25 of the largest new homes developers among our
growing customer base. In addition to their adoption of Choice products we have
also introduced a highly targeted email campaign service which has generated
excellent responses and low customer acquisition costs.

Lastly, Rightmove has also quadrupled the size of its holiday lettings business
following the acquisition of a majority stake in Holiday Lettings Limited, the
fastest growing major holiday home website in the UK.

Financial Results

All these achievements are reflected in our full year results, which show a 69%
increase in revenue to £56.7m (2006: £33.6m). Healthy operating margins (54%)
resulted in significant fall-through to underlying profit before tax which
increased by 77% to £31.4m (2006: £17.7m)*. Cash balances at the year end were
£11.8m (2006: £14.9m) after a total cost on the share buy back programme of
£19.5m. These financial results are underpinned by strong performance against
our key metrics. Customer advertisers have increased by 18% to 19,287 (2006:
16,321). Despite a tougher housing market in the second half of the year
retention rates have stayed within historical ranges of 91-94%. We have
continued to increase both the value and number of product offerings we deliver
to our members and this has been reflected in turn by a healthy 35% increase in
their average spend with us.

The Board announced a 2.0p (2006: 1.5p) per ordinary share interim dividend
which was paid on 12 October 2007. Based on our continued cash conversion
capabilities, the Board proposes to pay a final dividend of 6.0p per ordinary
share which, combined with the interim dividend of 2.0p, gives a total dividend
for the year of 8.0p (2006: 4.5p) a 78% increase over last year's comparable
payments and in line with earnings growth. The final dividend, subject to
shareholder approval, will be paid on 13 May 2008 to members on the register on
11 April 2008.

The Company also seeks to provide value to shareholders by using the significant
levels of cash generated from its operations for share buy backs. In June 2007,
we announced a share buy back programme and ultimately acquired 3.3m shares at a
total cost of £19.5m during the period to 31 December 2007.

In order to provide the Board with greater flexibility to achieve greater
returns of capital by way of dividend or share buy backs, we completed a capital
reconstruction in the form of a Scheme of Arrangement on 28 January 2008. As
previously announced, shareholders approved the transaction which resulted in
the creation of a new public company but with no change to the Company name,
directors, managers or shareholder interests and resulted in a £430m increase in
distributable reserves.

Notes:
* from continuing operations and before share-based payments, NI on share 
  options under issue, flotation and capital reconstruction costs.


Annual General Meeting

The Annual General Meeting will be held at 12 noon on 6 May 2008 at our offices
at 33 Soho Square, London, W1D 3QU.

Current Trading and Outlook

Our 300 plus hard working Rightmove employees remain committed to providing
greater value added products and services to our customers and home hunters
alike. Thus far, our experience in a softening housing market is that
Rightmove's proposition is as relevant as ever. Indeed, the tougher the market
the more essential it is for agents and developers to secure enquiries from home
hunters. The subscription business model should provide resilience to a direct
impact from falling house prices and declining transaction volumes, though
Rightmove will, in all probability, be operating in an environment where the
overall size of the property advertising market is shrinking.

Following a positive start to the current year, the Board remains confident that
despite a more difficult housing market further significant growth and
profitability of the business will be achieved.


                         Business and Financial Review

           Ed Williams, Group Managing Director and Graham Zacharias,
                             Group Finance Director

2007 saw Rightmove achieve a landmark of 90% of all estate agents in the UK
listing their property on the Rightmove.co.uk website. We believe we now also
have three-quarters of lettings only agents and half of all the new home
developments currently being actively marketed in the UK. During 2007 on average
over three million different people visited the website each month spending a
collective total of 10,116 years* looking at property.
Continued strong growth has resulted in underlying profit before tax increasing
77% to £31.4m in 2007 (2006: £17.7m)**.

Notes:
*   Source Hitwise January - December 2007
** from continuing operations and before share-based payments, NI on share
   options under issue, flotation and capital reconstruction costs.


Keys to success

Rightmove's success is the result of our contribution to our advertisers'
success. We help our advertisers by providing quality enquiries at a
significantly lower cost than their traditional advertising alternatives. For
estate agents and letting (rental) agents, Rightmove also plays a key role in
generating new opportunities to win instructions (the right to offer a property
for sale or for rent on behalf of the owner). Many home movers and landlords now
expect their properties to appear on Rightmove's website in order to reach the
largest audience possible.

Connecting more people with more property than anyone else

We are able to make the contribution that we do to our members' businesses
because we are the destination of choice for home hunters. In a typical month in
2007, between three and four million people visited the website, each averaging
more than one visit a week and spending around 16 minutes on the site each time.

In 2007, usage of the Rightmove.co.uk website grew by 23% compared to 2006. This
generated 15 million enquiries tracked through our systems for agents and
developers. The growth in visits to our website underscores the fact that
Rightmove specifically, and the internet generally, are now a key part of how
people search for property. Of all people who brought a home last year 72% used
the internet as part of their search and of them 82% used Rightmove.

The key performance indicators that we monitor are:

Number of page impressions   Number of enquiries that we    Number of properties
in the year grew from 4.0bn  delivered increased to 15.0m   displayed on
(2006) to 4.9bn (2007), up   (2007) from 14.2m (2006), up   Rightmove.co.uk at
22% (+900m)                  6% (+800,000)                  31 December 2007 was
                                                            1,038,000 (2006:
                                                            802,000), up 29%
                                                            (+236,000)

While our members value enquiries received, Rightmove often makes its biggest
contributions at times in the cycle when enquiries in general are most scarce.
Hence the number of enquiries generated is not an immediate marker of success
and although the absolute number may decline in a tougher housing market, the
value to our members of each enquiry increases.

Strong top-line growth

Rightmove's profit growth is driven by increased revenue. This has been achieved
through:

• Increased number of advertisers;

• Increases in the perceived value our advertisers recognise from their
  spending with us; and

• Increased spend per advertiser.

2007 saw substantial success in terms of sales. Overall property advertiser
membership increased by 18% from 16,321 to 19,287 with 90% of estate agencies
now using Rightmove. Based on our estimate of the market of approximately 24,750
potential advertisers, this represents an increase in our customer base from 64%
to 78% of the total addressable UK market.

The slowdown in the rate of growth compared to previous years is a consequence
of the high proportion of potential UK property advertisers that are already
Rightmove members. Notable areas of strong progress in 2007 were among smaller
new homes developers and with central London agents.

The 92% retention rate was within our historical range of 91-94%. The majority
of the estate agents and lettings agents who left Rightmove did so because their
own business ceased to trade or because there was a significant change in their
business focus. The impact of a tougher housing market was detected in the last
few months of the year but this has not resulted in a substantial decline in
overall retention.

The value that our advertisers place in being a Rightmove member also increased
significantly. It was particularly pleasing to see more than one in five of our
customers taking up our Rightmove Choice products between launch in February and
the end of December 2007. Overall the average monthly spend per advertiser rose
from £192 per month at the end of 2006 to £259 per month at the end of 2007, an
increase of 35%.

We continued to invest heavily in technology and in our field consultants and
customer service teams. The level of support we provide, including our
investment in helping our customers make the most of the service we provide
them, is frequently noted within the industry as a key differentiator between
Rightmove and other advertising companies. More than 5,000 estate agents took
advantage of the free online learning package we provided to master the
requirements of the Home Information Packs (HIPs) legislation which came into
effect during 2007.

Rightmove's cost to its members continues to represent a small proportion of the
total industry spend on advertising, a total of a little over £50m compared to
over £600m across traditional media (based on the Advertising Yearbook 2007 and
Rightmove estimates of the size of the online property marketing spend). The
considerable majority of spending by agents and developers continues to be in
local and regional newspapers.

Driving the business forward

Without doubt 2008 has the characteristics of a much tougher housing market.
This may or may not lead to absolute falls in house prices. It has however
already caused a drop in the number of housing transactions taking place in the
market. Our estate agent and new home developer customers' own business models
are driven by transaction volumes.

These market conditions create opportunities for Rightmove. Our position as a
cost effective means of generating enquiries from home buyers is firmly
established. This is a position which is of more value to our customers when it
is hard to sell properties than when there is a list of applicants queuing to
snap up properties as they come onto the market or, in the case of developers,
off-plan.

Our service also includes a range of reports that allows agents to justify the
correct pricing of properties to vendors as well as demonstrating what is and is
not currently selling.

A range of further Rightmove Choice products has been launched in the first
quarter of 2008. These products have a particular focus on giving our customers
the right type of advertising options for operating successfully in a tough
market.

We expect many of our customers to be faced with difficult choices about how
much they spend on marketing and where they spend it. Given the significantly
higher return on investment from advertising with Rightmove relative to
newspaper advertising, we expect a tougher market to see property advertising
spend following the same profile as jobs and cars - a sharp and sustained shift
from newspapers to online.

As in the past, our successes in 2007 have been achieved as a result of the hard
work and dedication on the part of our employees. I would like to thank them for
their efforts past and continuing. The high level of take up of our second
Sharesave scheme for staff provides a further opportunity for that effort to be
acknowledged and rewarded.

Financial position

Margin growth

                First    Second   Year ended     First   Second    Year ended
                 half      half   31 December     half     half   31 December
                 2007      2007          2007     2006     2006          2006
Underlying
operating
margin % *       51.9      56.1          54.2     54.7     50.1          52.1

* based upon operating profit from continuing operations and before share-based
  payments, NI on share options under issue, flotation costs and capital
  reconstruction costs. The above figures are unaudited.

The operating margin for the year increased from 52.1% to 54.2% as a consequence
of strong revenue growth and more modest increases in overheads. On a
like-for-like basis, excluding Holiday Lettings Limited, the margin in 2007 was
55.3%.

Taxation

The Group's consolidated tax rate for the year ended 31 December 2007 was 31%
(2006: 40%). The difference between this and the standard rate of tax of 30%
relates chiefly to non-deductible costs.

Share-based payment (IFRS 2)

In accordance with IFRS 2, a non-cash charge of £2.3m (2006: £2.2m) is included
in the income statement representing amortisation of the fair value of share
options granted, including Sharesave options, since November 2002.

Earnings per share

Earnings per ordinary share of 15.2p (2006: 3.6p) is based on profit after
taxation and a weighted average of 123,023,728 shares in issue (2006:
122,468,206). Underlying earnings per ordinary share based on continuing
operations and before share-based payments, NI on share options under issue,
flotation and capital reconstruction costs was 18.7p (2006: 10.5p).

Balance sheet

Total shareholders' funds amounted to £12.4m at 31 December 2007 (2006: £16.0m).
Non-current assets rose from £4.1m to £11.0m chiefly as a result of goodwill
arising on the acquisition of Holiday Lettings Limited.

Trade and other receivables increased from £2.9m to £11.2m in part due to the
strong growth in revenue but also as a result of a change in the Value Added Tax
(VAT) tax point date. The latter resulted in a requirement to raise the January
2008 invoices in December 2007 thereby increasing trade and other receivables as
at 31 December 2007 by approximately £4.5m. Other debtors also included blocked
cash balances of £0.9m which arose on the capital reconstruction carried out at
the end of 2006.

Trade and other payables rose from £5.8m to £14.7m. As a consequence of the
change in VAT tax point date explained above, deferred income increased by £4.5m
and other taxation payable by £0.7m. Furthermore costs of £1.3m associated with
the Scheme of Arrangement completed in January 2008 were accrued.

Cash flow

Net cash at 31 December 2007 was £11.8m (2006: £14.9m) with operating profit
converting into operating cash flow at slightly above 100% as a consequence of a
broadly neutral movement in trade working capital, notwithstanding the
significant growth in sales.

A total of £19.5m was invested during 2007 in the repurchase of own shares
(2006: £nil) while a further £6.2m was paid out by way of dividends (2006:
£1.9m).

Capital reconstruction

On 30 January 2008, the capital reconstruction of the Group became effective
following approval by the Court. As was outlined in a shareholder circular dated
11 December 2007, the object of this exercise was to create additional
distributable reserves to allow Rightmove to continue its current strategy of
returning capital to shareholders via dividends and share buy backs, subject to
market conditions.

The costs involved in this exercise amounting to £1.7m have been fully accounted
for in the 2007 results.

Current trading and outlook

Rightmove continues to be in excellent shape as the website of choice for UK
home hunters to find all available property. From our advertisers' viewpoint,
Rightmove remains a small proportion of their marketing spend and delivers a
dramatically enhanced return on investment compared to alternatives.

Our strategy continues to focus on creating and realising the value we bring to
the process of helping people find a home and helping UK property professionals
to be successful in selling homes. This strategy seems all the more relevant
during the stage of the housing market cycle where the real challenge for our
customers is that of finding buyers.

The outlook for continued growth remains strong. Indeed, good progress has been
achieved in the closing months of 2007, despite the slowdown beginning to bite
and we have made a robust start to 2008. The Board is confident of meeting its
expectations for 2008.


                         CONSOLIDATED INCOME STATEMENT
                      FOR THE YEAR ENDED 31 DECEMBER 2007

                              Year ended               Year ended
                             31 December            31 December 2006
                                    2007
                              Continuing   Continuing   Discontinued
                              operations   operations     operations     Total
                       Note         £000         £000           £000      £000
Revenue                           56,712       33,626              -    33,626
                      ------ ------------     --------      ---------  --------
Administrative                   (30,285)     (19,869)        (6,668)  (26,537)
expenses              ------ ------------     --------      ---------  --------

Operating profit
before share-based 
payments, NI on
share options under               30,746       17,530         (6,668)   10,862
issue, flotation and 
capital reconstruction 
costs

Share-based payments      6       (2,331)      (2,168)             -    (2,168)

NI on share options
under issue               6         (298)           -              -         -

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

Capital reconstruction    8       (1,690)           -              -         -
costs                 ------ ------------     --------      ---------  --------

Operating profit                  26,427       13,757         (6,668)    7,089
                      ------ ------------     --------      ---------  --------
Financial income                     891          322              -       322

Financial expenses                  (199)         (66)             -       (66)
                      ------ ------------     --------      ---------  --------
Net financial income                 692          256              -       256
                      ------ ------------     --------      ---------  --------
Share of associate                     -          (77)             -       (77)
loss                  ------ ------------     --------      ---------  --------

Profit before tax                 27,119       13,936         (6,668)    7,268

Income tax expense        3       (8,472)      (4,917)         1,993    (2,924)
                      ------ ------------     --------      ---------  --------
Profit for the year               18,647        9,019         (4,675)    4,344
                      ------ ------------     --------      ---------  --------
Attributable to:                  18,647        9,019         (4,675)    4,344

Equity holders of the
Parent                ------ ------------     --------      ---------  --------

Earnings per share
(pence)

Basic                     4        15.16         7.37          (3.82)     3.55

Diluted                   4        14.19         6.86          (3.55)     3.31


      CONSOLIDATED AND COMPANY STATEMENT OF RECOGNISED INCOME AND EXPENSE
                      FOR THE YEAR ENDED 31 DECEMBER 2007

                              Group         Group       Company       Company
                         Year ended    Year ended    Year ended    Year ended
                        31 December   31 December   31 December   31 December
                               2007          2006          2007          2006
                               £000          £000          £000          £000
Tax in respect of
share options recognised 
directly in equity                -         4,681             -         4,681
                          -----------   -----------   -----------   -----------
Net income recognised
directly in equity                -         4,681             -         4,681
Profit for the year          18,647         4,344        18,633         4,344
                          -----------   -----------   -----------   -----------
Total recognised
income and expense for
the year attributable
to equity holders of
the Parent                   18,647         9,025        18,633         9,025
                          -----------   -----------   -----------   -----------


                           CONSOLIDATED BALANCE SHEET
                             AS AT 31 DECEMBER 2007

                                                    31 December    31 December
                                                           2007           2006
                                            Note           £000           £000
Non-current assets
Property, plant and equipment                             2,042          1,375
Intangible assets                                         7,580          1,471
Deferred tax assets                            5          1,336          1,241
                                            ------ -------------- --------------
Total non-current assets                                 10,958          4,087
                                            ------ -------------- --------------
Current assets
Trade and other receivables                              11,202          2,921
Income tax receivable                                       163            163
Cash and cash equivalents                                11,807         14,881
                                            ------ -------------- --------------
Total current assets                                     23,172         17,965
                                            ------ -------------- --------------
Total assets                                             34,130         22,052
                                            ------ -------------- --------------
Current liabilities
Trade and other payables                                (14,714)        (5,835)
Income tax payable                                       (4,413)             -
Provisions                                                 (130)           (96)
                                            ------ -------------- --------------
Total current liabilities                               (19,257)        (5,931)
                                            ------ -------------- --------------
Non-current liabilities
Deferred tax liabilities                       5           (110)             -
Deferred consideration                         7         (2,328)             -
Provisions                                                  (43)          (112)
                                            ------ -------------- --------------
Total non-current liabilities                            (2,481)          (112)
                                            ------ -------------- --------------
Net assets                                               12,392         16,009
                                            ------ -------------- --------------
Equity
Share capital                                             1,327          1,327
Share premium                                               105              -
Retained earnings                                        10,960         14,682
                                            ------ -------------- --------------
Total equity attributable to the equity
holders of the parent                                    12,392         16,009
                                            ------ -------------- --------------


                             COMPANY BALANCE SHEET
                             AS AT 31 DECEMBER 2007

                                                    31 December    31 December
                                                           2007           2006
                                            Note           £000           £000
Non-current assets
Property, plant and equipment                             2,007          1,375
Intangible assets                                         1,787          1,471
Investments                                               3,108              -
Deferred tax assets                            5          1,336          1,241
                                            ------ -------------- --------------
Total non-current assets                                  8,238          4,087
                                            ------ -------------- --------------
Current assets
Trade and other receivables                              10,984          2,921
Income tax receivable                                       163            163
Cash and cash equivalents                                11,600         14,881
                                            ------ -------------- --------------
Total current assets                                     22,747         17,965
                                            ------ -------------- --------------
Total assets                                             30,985         22,052
                                            ------ -------------- --------------
Current liabilities
Trade and other payables                                (14,137)        (5,835)
Income tax payable                                       (4,329)             -
Provisions                                                 (107)           (96)
                                            ------ -------------- --------------
Total current liabilities                               (18,573)        (5,931)
                                            ------ -------------- --------------
Non-current liabilities
Provisions                                                  (34)          (112)
                                            ------ -------------- --------------
Total non-current liabilities                               (34)          (112)
                                            ------ -------------- --------------
Net assets                                               12,378         16,009
                                            ------ -------------- --------------
Equity
Share capital                                             1,327          1,327
Share premium                                               105              -
Retained earnings                                        10,946         14,682
                                            ------ -------------- --------------
Total equity attributable to the equity
holders of the Parent                                    12,378         16,009
                                            ------ -------------- --------------


                      CONSOLIDATED STATEMENT OF CASH FLOW
                      FOR THE YEAR ENDED 31 DECEMBER 2007

                                                      Year ended    Year ended
                                                     31 December   31 December
                                                            2007          2006
                                              Note          £000          £000
Cash flows from operating activities
Profit for the year                                       18,647         4,344

Adjustments for:
Depreciation charges                                         503           385
Amortisation charges                                         390           304
Impairment of tangible and intangible assets                   -         1,011
Loss on sale of investment in associate                        -           206
Investment income                                              -          (129)
Interest income                                             (891)         (322)
Interest expense                                             129             1
Share-based payments charge                      6         2,331         2,168
Income tax expense                               3         8,472         2,924
                                              ------ ------------- -------------

Operating profit before changes in working
capital                                                   29,581        10,892
Increase in trade and other receivables                   (8,023)         (471)
Increase/(decrease) in trade and other                     8,337          (838)
payables
(Decrease)/increase in provisions                            (35)          208
                                              ------ ------------- -------------

Cash generated from operations                            29,860         9,791
Interest paid                                                 (3)           (1)
Income taxes (paid)/received                              (4,250)        1,259
                                              ------ ------------- -------------

Net cash from operating activities                        25,607        11,049
                                              ------ ------------- -------------

Cash flows from investing activities
Interest received                                            891           322
Acquisition of property, plant and equipment              (1,157)         (938)
Acquisition of intangible assets                            (643)         (249)
Acquisition of subsidiary (net of cash
acquired)                                        7        (3,177)            -
Acquisition of investment in associate           7             -        (3,320)
Proceeds from sale of investment in associate    7             -         3,243
                                              ------ ------------- -------------

Net cash from investing activities                        (4,086)         (942)
                                              ------ ------------- -------------

Cash flows from financing activities
Dividends paid                                            (6,176)       (1,861)
Purchase of treasury shares                              (19,362)            -
New shares issued                                            105         1,055
Proceeds on exercise of share options                        838             -
                                              ------ ------------- -------------

Net cash from financing activities                       (24,595)         (806)
                                              ------ ------------- -------------
Net (decrease)/increase in cash and cash
equivalents                                               (3,074)        9,301
Cash and cash equivalents at 1 January                    14,881         5,580
                                              ------ ------------- -------------
Cash and cash equivalents at 31 December                  11,807        14,881
                                              ------ ------------- -------------
                         

                          COMPANY STATEMENT OF CASH FLOW
                      FOR THE YEAR ENDED 31 DECEMBER 2007

                                                      Year ended    Year ended
                                                     31 December   31 December
                                                            2007
                                             Note           £000     2006 £000
Cash flows from operating activities
Profit for the year                                       18,633         4,344

Adjustments for:
Depreciation charges                                         499           385
Amortisation charges                                         327           304
Impairment of property, plant and equipment                    -         1,011
Impairment of investment in associate                          -            77
Interest income                                             (889)         (322)
Interest expense                                               3             1
Share-based payments charge                      6         2,331         2,168
Income tax expense                                         8,401         2,924
                                             ------- -------------  ------------

Operating profit before changes in working
capital                                                   29,305        10,892
Increase in trade and other receivables                   (8,063)         (471)
Increase/(decrease) in trade and other                     8,302          (838)
payables
(Decrease)/increase in provisions                            (67)          208
                                             ------- -------------  ------------

Cash generated from operations                            29,477         9,791
Interest paid                                                 (3)           (1)
Income taxes (paid)/received                              (4,167)        1,259
                                             ------- -------------  ------------

Net cash from operating activities                        25,307        11,049
                                             ------- -------------  ------------

Cash flows from investing activities
Interest received                                            889           322
Acquisition of property, plant and equipment              (1,131)         (938)
Acquisition of intangible assets                            (643)         (249)
Acquisition of investment in subsidiary                   (3,108)            -
Acquisition of investment in associate           7             -        (3,320)
Proceeds from sale of investment in              7             -         3,243
associate                                    ------- -------------  ------------

Net cash from investing activities                        (3,993)         (942)
                                             ------- -------------  ------------

Cash flows from financing activities
Dividends paid                                            (6,176)       (1,861)
Purchase of treasury shares                              (19,362)            -
New shares issued                                            105         1,055
Proceeds on exercise of share options                        838             -
                                             ------- -------------  ------------

Net cash from financing activities                       (24,595)         (806)
                                             ------- -------------  ------------
Net (decrease)/increase in cash and cash
equivalents                                               (3,281)        9,301
Cash and cash equivalents at 1 January                    14,881         5,580
                                             ------- -------------  ------------
Cash and cash equivalents at 31 December                  11,600        14,881
                                             ------- -------------  ------------


Notes to the Preliminary announcement

1 General Information

The Group's accounts have been prepared in accordance with International
Accounting Standards and International Financial Standards that were effective
at 31 December 2007 and adopted by the EU.

The financial information set out above does not constitute the Company's
statutory accounts for the years ended 31 December 2007 or 2006. Statutory
accounts for 2006 have been delivered to the registrar of companies, and those
for 2007 will be delivered following the Company's Annual General Meeting. The
auditors have reported on those accounts; their reports were (i) unqualified,
(ii) did not include references to any matters to which the auditors drew
attention by way of emphasis without qualifying their reports and (iii) did not
contain statements under section 237 (2) or (3) of the Companies Act 1985.


2 Segmental reporting

The Group does not have geographical segments with all revenue derived from
external operations in the UK in both years. Revenue derived outside the UK is
not material in either 2006 or 2007.

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

For the year ended 31 December 2006

                                        Property           HIPs          Total
                                     advertising
                                            £000           £000           £000
Income statement information
Segmental revenue                         33,626              -         33,626
Depreciation and amortisation                550            139            689
                                        ----------     ----------     ----------

Segmental results                         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)
                                        ----------     ----------     ----------

Segmental results, total assets and total liabilities for the year ended 31
December 2006 included items directly attributable to the segment as well as
those that could be allocated on a reasonable basis. There were no
inter-segmental sales in 2006.

Segmental capital expenditure during 2006 represented the total cost incurred
during the year to acquire segmental assets that were expected to be used for
more than one period.


3 Income tax expense

                                                     Year ended     Year ended
                                                    31 December    31 December
                                                           2007           2006
                                                           £000           £000
Current tax expense
Current year                                             9,272           3,544

Deferred tax expense
Origination and reversal of temporary differences         (896)           (620)
Reduction in tax rate                                       96               -
                                                   -------------   -------------
                                                          (800)           (620)
Total income tax expense                                 8,472           2,924
                                                   -------------   -------------

Reconciliation of effective tax rate

The income tax expense for the year is higher (2006: higher) than the standard
rate of corporation tax in the UK of 30% (2006: 30%). The differences are
explained below:

                                                    Year ended      Year ended
                                                   31 December     31 December
                                                          2007            2006
                                                          £000            £000
Profit before tax                                       27,119           7,268
                                                   -------------   -------------
Current tax at 30% (2006: 30%)                           8,136           2,180
Share-based payments                                      (322)            331
Non deductible expenses                                    460             413
Change in tax rate                                          96               -
Deferred tax movement in respect of prior years            102               -
                                                   -------------   -------------
                                                         8,472           2,924
                                                   -------------   -------------

During the year, the Company utilised tax losses brought forward of £689,000.
These losses arose on the exercise of share options for which no related equity
settled share option charge was recognised. The reduction in the current year
tax charge resulting from the utilisation of these losses has been reflected in
retained earnings in accordance with IFRS 2 and thus a notional tax charge of
£689,000 has been applied for the year ended 31 December 2007 (2006:
£3,544,000).

The Group's consolidated effective tax rate for the year ended 31 December 2007
is 31% (2006: 40%). The difference between the standard rate and effective rate
at 31 December 2007 is attributable mainly to the high level of expenditure on
which no tax relief is available but which is offset by the increase in the
Company's deferred tax asset arising on share options.


4 Earnings per share

                                      Weighted
                                       average                       Per share
                                        Number       Earnings           amount
                                     of shares           £000            Pence
Year ended 31 December 2007
Basic EPS                          123,023,728         18,647            15.16
Diluted EPS                        131,431,538         18,647            14.19
Underlying basic EPS               123,023,728         22,966            18.67
Underlying diluted EPS             131,431,538         22,966            17.47

Year ended 31 December 2006
Basic EPS                          122,468,206          4,344             3.55
Diluted EPS                        131,434,219          4,344             3.31
Underlying basic EPS               122,468,206         12,792            10.45
Underlying diluted EPS             131,434,219         12,792             9.73

Underlying EPS is calculated before the charge for HIP costs, flotation and
capital reconstruction costs, share-based payments and Employer's National
Insurance (NI) on share options under issue. A reconciliation of the basic
earnings for the year to the underlying earnings is presented below:

                                                Year ended         Year ended
                                               31 December        31 December
                                                      2007               2006
                                                      £000               £000

Basic earnings for the year                         18,647              4,344
HIP costs (net of tax)                                   -              4,675
Flotation costs                                          -              1,605
Capital reconstruction costs                         1,690                  -
Share-based payments                                 2,331              2,168
NI on share options under issue                        298                  -
                                                ------------       ------------
Underlying earnings for the year                    22,966             12,792
                                                ------------       ------------


5 Deferred tax assets and liabilities

Deferred tax assets and liabilities are attributable to the following:

                                        Assets                  Liabilities                    Net
                              Year ended   Year ended    Year ended     Year ended   Year ended   Year ended
                             31 December  31 December   31 December    31 December  31 December  31 December
                                    2007         2006          2007           2006         2007         2006
Group                               £000         £000          £000           £000         £000         £000

Property, plant and equipment        (84)        (232)            2              -          (82)        (232)
Tax losses                             -         (689)            -              -            -         (689)
Intangible assets                      -            -           108              -          108            -
Equity settled share options      (1,252)        (320)            -              -       (1,252)        (320)
                                  --------     --------     ---------     ----------     --------     --------
Net tax (assets)                  (1,336)      (1,241)          110              -       (1,226)      (1,241)
                                  --------     --------     ---------     ----------     --------     --------

The net deferred tax asset of £1,226,000 at 31 December 2007 (31 December 2006:
£1,241,000) is in respect of share options, tax losses brought forward,
accelerated capital allowances and intangibles.

The deferred tax asset relating to share options at 31 December 2007 is
£1,252,000 (31 December 2006: £320,000). This increase is mainly due to the
Company's share price rising from £3.95 at 1 January 2007 to £4.64 at 
31 December 2007.

Deferred tax assets and liabilities are attributable to the following:

                                        Assets                    Liabilities                     Net
                               Year ended    Year ended    Year ended    Year ended    Year ended    Year ended
                              31 December   31 December   31 December   31 December   31 December   31 December
                                     2007          2006          2007          2006          2007          2006
Company                              £000          £000          £000          £000          £000          £000

Property, plant and equipment        (84)         (232)            -             -           (84)         (232)
Tax losses                             -          (689)            -             -             -          (689)
Equity settled share options      (1,252)         (320)            -             -        (1,252)         (320)
                                 ---------     ---------     ---------     ---------     ---------     ---------
Net tax (assets)                  (1,336)       (1,241)            -             -        (1,336)       (1,241)
                                 ---------     ---------     ---------     ---------     ---------     ---------

Movement in deferred tax during the year:

                                                                           Arising on
                                    1 January   Recognised   Recognised      business   31 December
                                         2007    in income    in equity   combination          2007
Group                                    £000         £000         £000          £000          £000

Property, plant and equipment            (232)         147            -             2           (83)
Tax losses                               (689)           -          689             -             -
Intangible assets                           -          (15)           -           124           109
Equity settled share options             (320)        (932)           -             -        (1,252)
                                       --------   ----------   ----------     ---------    ----------
                                       (1,241)        (800)         689           126        (1,226)
                                       --------   ----------   ----------     ---------    ----------

                                                 1 January   Recognised    Recognised   31 December
                                                      2007    in income     in equity          2007
Company                                               £000         £000          £000          £000

Property, plant and equipment                         (232)         148             -           (84)
Tax losses                                            (689)           -           689             -
Equity settled share options                          (320)        (932)            -        (1,252)
                                                  ----------    ---------     ---------    ----------
                                                    (1,241)        (784)          689        (1,336)
                                                  ----------    ---------     ---------    ----------

The deferred tax asset arising on equity settled share options is recognised in
the income statement to the extent that the related equity settled share options
charge was recognised in the income statement.


6 Share-based payments

The Company operates a share incentive scheme for key management personnel and
senior employees, comprising the Rightmove Unapproved Executive Share Option
Plan (Unapproved Plan) and the Rightmove Approved Executive Share Option Plan
(Approved Plan). The Company also operates a Savings Related Share Option Scheme
(Sharesave).

The fair value of services received in return for share options granted is
measured by reference to the fair value of share options granted. The estimate
of the fair value of the services received is measured based on the Black
Scholes model. The contractual life of the options is used as an input into this
model.

All share incentive schemes are granted under a service condition. Such
conditions are not taken into account in the fair value of the services
received. There are no market conditions associated with the above grants.

The total charge for the year relating to employee share-based payment plans was
£2,331,000 (2006: £2,168,000), all of which related to share options granted in
2006 and 2007.

NI 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 share options. The
charge for the year ended 31 December 2007 was £298,000 (2006: £nil).


7 Acquisitions and disposals

On 21 March 2007, the Company acquired 66.7% of the ordinary share capital of
HLL, a provider of online advertising services to owners of holiday rental
properties, for consideration of £3,216,000, including acquisition costs of
£73,000. From the date of acquisition to 31 December 2007 the acquisition
contributed £1,499,000 to Group revenue and £216,000 to Group profit. If the
acquisition had been completed on the first day of the financial year, the
acquisition would have contributed £1,968,000 to Group revenue and £381,000 to
Group profit.

In terms of the shareholders' agreement, a put and call option exists to acquire
the remaining 33.3%. 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
5.7%.

At 31 December 2007, £126,000 has been changed to financial expense representing
the unwinding of the effective interest rate on deferred consideration. This
results in a carrying value of £2,328,000 for deferred consideration on the
balance sheet.

                                          Carrying
                                       values pre-    Fair value
                                       acquisition   adjustments   Fair values
                                Note          £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 cash equivalents                       36             -            36
                                ------    ----------    ----------    ----------
                                               315           (16)          299

Current liabilities                           (207)         (417)         (624)

Non-current liabilities
Deferred tax liabilities                        (2)         (124)         (126)
                                ------    ----------    ----------    ----------

Fair value of net assets                       118           (42)           76
acquired

Purchase consideration - cash                                            3,213
Purchase consideration - accrued                                             3
expenses
Purchase consideration - deferred                                        2,202
                                ------    ----------    ----------    ----------

Total consideration                                                      5,418
                                ------    ----------    ----------    ----------

Goodwill                                                                 5,342
                                ------    ----------    ----------    ----------

Upon acquisition the revenue recognition policy for HLL was changed to align it
with the existing Group policy. Revenue is principally billed annually in
advance. An adjustment of £422,000 has been reflected in current liabilities to
recognise the deferral of revenue over the 12 month contract on a straight line
basis as opposed to the previous upfront recognition policy.

Included in the £5,342,000 of goodwill recognised are intangible assets that do
not meet the definition of intangible assets under IAS 38. These items include
an assembled workforce and operating synergies.

                                                                    Year ended
                                                                   31 December
                                                                          2007
Net cash flow on acquisition                                              £000

Cash paid for subsidiary                                                (3,213)
Cash acquired                                                               36
                                                                   -------------

Net cash outflow                                                        (3,177)
                                                                   -------------

During 2006, the Company acquired 25% of the ordinary share capital of TM for a
consideration of £3,243,000 and acquisition costs of £77,000. This gave rise to
positive goodwill of £2,140,000 and an intangible asset relating to customer
lists of £1,124,000. The Group's share in the fair value of net assets of the
associate at the date of acquisition was £56,000.

As a result of the discontinuance of the HIPs business, it was no longer
considered appropriate to retain this shareholding. Accordingly, the holding was
disposed of for £3,243,000 before costs. The sale gave rise to a consolidated
loss on disposal of £206,000. Whilst TM was an associate and before the decision
to sell was made, the results of the associate were equity accounted for. The
Group recognised a profit of £129,000 representing its share of TM's profit for
that period. The directors decided to present the loss on disposal of £206,000
and the share of associate's profit of £129,000 on the face of the income
statement as share of associate loss of £77,000.


8 Subsequent event

On 28 January 2008, Rightmove Group plc (Company no: 6426485) was admitted to
the official list of the London Stock Exchange and became the holding company of
Rightmove plc (Company no: 3997679 (the Company)) pursuant to a Scheme of
Arrangement under Section 425 of the UK Companies Act 1985 that was previously
approved by shareholders on 7 January 2008 and the High Court of Justice in
England and Wales (the Scheme of Arrangement).

Pursuant to the Scheme of Arrangement, the Company's ordinary shareholders
received ordinary shares in Rightmove Group plc, each having a nominal value of
£3.35 (Rightmove Group Ordinary Shares), in exchange for ordinary shares in the
Company each having a nominal value of £0.01 (Rightmove Ordinary Shares) on a
one-for-one basis (at nil cost). The Rightmove Group Ordinary Shares carry
substantially the same rights as did the Rightmove Ordinary Shares. As a result
of the Scheme of Arrangement, the Company became a wholly-owned subsidiary of
Rightmove Group plc.

The Rightmove Ordinary Shares were cancelled on 28 January 2008. Rightmove Group
Ordinary Shares were admitted to the Official List of the UK Listing Authority
and to trading on the main market for listed securities of the London Stock
Exchange plc on 28 January 2008.

There was no change in the Board of directors, management and corporate
governance arrangements as a result of the Scheme of Arrangement. The
consolidated assets and liabilities of Rightmove Group plc immediately after the
Scheme of Arrangement were substantially the same as the consolidated assets and
liabilities of the Company immediately prior thereto.

Rightmove Group plc was incorporated and registered in England and Wales under
the Companies Act as a private company, Rightmove Group Limited, on 14 November
2007 and re-registered as a public limited company on 29 November 2007.  Prior
to 28 January 2008 Rightmove Group plc had not commenced trading or made any
profits or trading losses.

On 29 January 2008 the High Court of Justice in England and Wales approved a
reduction of Rightmove Group plc's share capital to take effect on 30 January
2008 when the nominal value of each Rightmove Group plc Ordinary Share was
reduced from £3.35 to £0.01 each. This reduction increased the distributable
reserves available to Rightmove Group plc to approximately £430m, which the 
directors of Rightmove Group plc can utilise for future distributions to 
shareholders.

The corporate restructuring will be accounted for as a reverse acquisition.
Accordingly, the historical financial statements prior to the reorganisation
will be labelled as those of Rightmove Group plc, but represent the operations
of the Company. After the Scheme of Arrangement, shareholders' equity will
represent the equity of Rightmove Group plc.

All share options granted to directors and employees under the Company's
existing Executive Share Option and Sharesave plans, prior to the Scheme of
Arrangement are exchangeable for share options over shares in Rightmove Group
plc on a one-for-one basis with no change in the terms or conditions.

With effect from 28 January 2008 Rightmove Group plc changed its name to
Rightmove plc. With effect from 28 January 2008, the Company re-registered as a
private company and changed its name to Rightmove Group Limited.


                                      Ends






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