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Rightmove PLC (RMV)

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Friday 29 August, 2008

Rightmove PLC

Half-yearly Report


                                                                               
                                Embargoed until  07.00,  Friday  29 August 2008

                                                                               
                            RIGHTMOVE PLC - 2008 HALF YEAR RESULTS                             


Rightmove plc, the UK's no. 1 property search website, announces half year
results for the six months ended 30 June 2008.


Financial Highlights
for the six months ended 30 June 2008


- Revenue up 49% to £37.8m (2007: £25.4m)

- Underlying operating profit* up 58% to £20.8m (2007: £13.2m)

- Underlying earnings per share up 38% to 11.3p (2007: 8.2p)

- Average revenue per advertiser up to £317 per month (2007: £234)

- Interim dividend of 3.0p per ordinary share (2007: 2.0p)

- Share buy back programme continued with 10.7m shares bought back in the
  period at a total cost of £42m

- Net debt of £23.3m (2007: net cash of £17.5m)

- Number of advertisers up 5% to 19,301 (2007: 18,383)

- Page impressions on Rightmove websites up 15% to 3.1bn (2007: 2.7bn)

* From continuing operations and excludes share-based payments, National
Insurance on share options under issue and capital reconstruction costs


Ed Williams, Group Managing Director, said:
"These strong results, coming at a time of severe housing market difficulties,
are evidence of the strength of the Rightmove proposition and the loyalty of
our customers.

Having established Rightmove as the home movers' no.1 property search engine,
it now enables our members to make big reductions in their print marketing
spend helping them to survive the drastic downturn in property sales.

We are redoubling our efforts to ensure that Rightmove generates the enquiries
from prospective home buyers which our customers so desperately need."


Half yearly statement

Overview

The half year results come at a time when the UK housing market is suffering a
severe downturn in activity which is having serious consequences for many of
Rightmove's customers. The strength of the results in these circumstances is
testament to the loyalty of our customers. The results also reflect the key
role Rightmove plays in generating enquiries and sales opportunities for our
customers and our cost effectiveness compared to local and regional newspaper
advertising.

Revenue increased 49% to £37.8m compared to the same period last year, driven
by strong growth in revenue per advertiser and sales to new members. Indeed,
despite the reduction in the number of estate agents in the industry, overall
membership grew by 5% driven by growth in our lettings and new homes
businesses. Underlying operating profit* grew by 58% to £20.8m.

The continued success of Rightmove Choice advertising products and the
introduction of email campaigns for new homes developers contributed to average
revenue per advertiser per month increasing by 35% to £317 by the half year
(30 June 2007: £234). Holiday Lettings Limited continues to grow rapidly with
like-for-like revenue growth of 75% in the period. We have also seen the first
major sale of our Automated Valuation Model.

The underlying operating margin for the first half of 2008 was 55.1% compared
to 51.9% for the first half of 2007. With plans for a major new marketing
campaign including new TV adverts, coupled with the prospect of a further
reduction in the number of estate agents, margins are unlikely to rise in the
second half of the year, as they have in previous years.

Operating costs** for the first six months were up 39% compared to the same
period twelve months ago at £17.0m (2007: £12.2m) due primarily to higher
personnel costs, continued investment in marketing and increased bad debt
provision. A one off cost of £0.3m relating to our former London office vacated
in July 2007 was provided for in full in the period.

Underlying earnings per share rose 38% to 11.3p, lower than the increase in
profitability as a consequence of a higher tax rate of 36% (compared to a
standard rate of 28%), (30 June 2007: 28%). This was principally due to the
reversal of the deferred tax asset relating to future share option gains.

Borrowings

During April 2008, Rightmove entered into a bilateral facility of up to £40m
with the Bank of Scotland for the specific purpose of facilitating share buy
backs. Under the terms of the loan agreement there is an option at maturity in
April 2009 for the revolving loan facility to convert to a term loan for a
further five years. Whilst the underlying business generated strong operating
cash flow of £19.2m in the period, share repurchases of £42m have resulted in a
net debt position of £23.3m. We completed our capital reconstruction in January
2008 which increased the distributable reserves available to the Group to
approximately £430m and allows Rightmove to continue its strategy of returning
capital to shareholders through share buy backs.

Membership growth

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

- Overall membership up 5% to 19,301

- Estate agency membership down 3% to 11,984

- New homes developments up 16% to 4,022

- Lettings agents up 22% to 2,719

- Overseas homes agents up 14% to 576

- Retention rate among estate agents down to 84% as a consequence of the large
number of estate agency businesses leaving the industry

- Page impressions on Rightmove websites up 15% to 3.1bn.


* From continuing operations and excludes share-based payments, National
Insurance on share options under issue and capital reconstruction costs
** Administrative expenses excluding share-based payments and National
Insurance on share options under issue

Customer spending

Average customer spending with Rightmove has risen by 35% to £317 per month
over the last year.

The biggest increase, at just under 60%, has come from new homes developers who
have been finding it increasingly difficult to sell properties and have
invested substantially more in their online marketing efforts. Around half of
all new homes developments are now being displayed using our enhanced
advertising products known generally as Rightmove Choice. Developers have also
adopted our email campaign service by which Rightmove targets registered home
hunters on their behalf with propositions being made by the developers.

The initial three Choice products have been extended to six. Lettings agents
and overseas agents can now also buy selected products from the Choice range.

In order to support our member agents in tough times, we have given every
member agent a free set of Premium Displays for them to use with their own
clients. We have also put together a bundle of Choice products worth over £400
available to agents for just £200 per month. Despite severe pressures on estate
agent budgets, almost one in four agents now take at least one Choice product,
contributing significantly to the overall increase in spend with Rightmove.

Market update

We identified three main areas of uncertainty or risk to our business in the
2007 annual report. First, we noted that Rightmove's exposure to the state of
the UK housing market was uncertain. Secondly, we highlighted the potential for
further competition from traditional media companies seeking to protect their
franchises and other potential new entrants. Thirdly, we underlined the
uncertainty around adoption of our new products and the rate of migration of
advertising spend from traditional to online media. These issues are further
commented upon below.

The Rightmove directors believe that a major structural shift is now underway
within the UK property advertising industry. Until this year, growth in
spending online had been accompanied by spending growth in newspapers. However,
2008 is seeing local and regional newspaper groups reporting very substantial
declines in their property advertising revenue. We believe that, although there
has been a decline in the number of estate agents, the majority of the decline
being reported by newspapers is a result of agents deciding to cut their
newspaper spending. This comes at a time when Rightmove has grown year-on-year
revenues by 49%.

In our view, the remainder of 2008 will see estate agents leaving the industry
at higher rates than in the first six months of the year as conditions continue
to toughen. Indeed, given the current low level of transactions in the market,
it is probable that 2009 will also see a further decrease in the number of
estate agents trading. While the number of new developments being brought to
market has declined substantially, and will continue to do so, the lengthening
in the time taken to sell developments has meant that the new homes business
has proven relatively robust thus far. By focusing resources on Housing
Associations (social providers of housing) Rightmove is seeking to protect its
position in the new homes market against what will undoubtedly be a prolonged
difficult time for new homes developers.

Rightmove continues to be cost effective and of demonstrable value for money as
property advertisers increasingly scrutinise all their costs. Nonetheless,
market conditions mean that we cannot rule out customers seeking to reduce
spend by cancelling Choice products or indeed by cancelling their membership
completely.

Our lettings, automated valuation and non-property advertising sales businesses
as well as our subsidiary, Holiday Lettings Limited, all offer the prospects of
continued growth despite the general economic environment and the specific
challenges of the housing market.

Since the year end there has been no significant change in the competition from
traditional media companies seeking to defend a threatened franchise and from
potential new entrants to online media.

For eight years Rightmove has been strongly focused as a business on managing
the migration from traditional media to online in UK property advertising, a
process much further advanced in jobs and cars. We intend to build on
Rightmove's position as the property site most used by the UK home moving
public and the place that a home buyer is most likely to first see their new
home. In doing so the directors believe Rightmove will be a major beneficiary
of the cyclical up turn in the property industry as and when it happens.

Dividend and share buy back

The Board intends to pay an interim dividend of 3.0p (2007: 2.0p) in line with
the declared progressive dividend policy and with earnings growth in the
period. The interim dividend will be paid on 10 October 2008 to members on the
register on  12 September 2008.

In June 2007, Rightmove initiated a share buy back programme in addition to
returning cash to shareholders by way of dividend. During the first six months
of 2008 Rightmove bought back 10,712,806 shares (of which 2,505,430 have been
transferred into treasury) at an average price of 390p per share. The total
number of shares bought back since the programme began is 14m shares at a total
cost including expenses of £61.6m. The Board of Rightmove anticipates that,
subject to market conditions, the share buy back programme will continue.

Current trading and outlook

The UK residential housing market is now in the grips of a major downturn. The
depth and length of this downturn is hard to judge and will be dependent on the
state of the wider economy.

The Board believes Rightmove's exposure relates first to the number of estate
agents who leave the industry and secondly to the viability of new homes
developers. These are both driven, above all, by the number of housing
transactions. Falls in house prices and increasing levels of repossessions,
while generally bad news, should help to restart transaction volumes at some
point though we believe that there is little immediate prospect of an
improvement.

Our primary focus is on maintaining our market position through delivering the
most effective service to our customers. As a result, irrespective of market
conditions, we believe we will see a continuation of the dramatic structural
shift of property advertising online which has been accelerated by the current
cyclical downturn.

The Board reiterates its confidence in meeting market expectations for the
current year.


Scott Forbes, Chairman

Ed Williams, Group Managing Director

29 August 2008


For further information please contact:-
Rightmove

Ed Williams, Group Managing Director  

Graham Zacharias, Group Finance Director 

Katherine Seaborn, Head of PR   07894 255315  

                                                                               
                                                                               
            RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF            
                     THE HALF-YEARLY FINANCIAL REPORT 2008                     

We confirm that to the best of our knowledge:
The condensed set of financial statements has been prepared in accordance with
IAS 34 Interim Financial Reporting as adopted by the EU;

The interim management report includes a fair review of the information
required by:
(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of
important events that have occurred during the first six months of the
financial year and their impact on the condensed interim financial statements;
and description of the principal risks and uncertainties for the remaining six
months of the financial year; and
(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position or
performance of the entity during that period; and any changes in the related
party transactions described in the last annual report that could do so.


By order of the Board



Scott Forbes, Chairman

Ed Williams, Group Managing  Director 

29 August 2008

                                                                               
                CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT                
                     for the six months ended 30 June 2008                     

                                                                               
                                Note       6 months     6 months     Year ended
                                              ended        ended    31 December
                                       30 June 2008 30 June 2007           2007
                                                                               
                                               £000         £000           £000
                                                                               
Revenue                                      37,817       25,425         56,712
                                                                               
Administrative expenses                    (17,702)     (13,780)       (30,285)
                                                                               
Operating profit before                                                        
share-based payments, NI on                                                    
share options under issue, and               20,833       13,184         30,746
capital reconstruction costs                                                   
                                                                               
Share-based payments              5           (958)      (1,210)        (2,331)
                                                                               
NI on share options under issue   5             240        (329)          (298)
                                                                               
Capital reconstruction costs                      -            -        (1,690)
                                                                               
Operating profit                             20,115       11,645         26,427
                                                                               
Financial income                  6             203          488            891
                                                                               
Financial expenses                7           (524)            -          (199)
                                                                               
Net financial (expenses)/                     (321)          488            692
income                                                                         
                                                                               
Profit before tax                            19,794       12,133         27,119
                                                                               
Income tax expense               10         (7,203)      (3,447)        (8,472)
                                                                               
Profit for the period                        12,591        8,686         18,647
                                                                               
Attributable to:                                                               
                                                                               
Equity holders of the Parent                 12,591        8,686         18,647
                                                                               
Earnings per share (pence)                                                     
                                                                               
Basic                             8           10.71         7.00          15.16
                                                                               
Diluted                           8           10.57         6.55          14.19

                                                                               
                                                                               
            CONDENSED CONSOLIDATED INTERIM STATEMENT OF RECOGNISED             
                              INCOME AND EXPENSE                               
                     for the six months ended 30 June 2008                     
                                                                               
                                                                               

                                                                               
                                           6 months      6 months    Year ended
                                              ended         ended   31 December
                                       30 June 2008  30 June 2007          2007
                                                                               
                                               £000          £000          £000
                                                                               
Tax in respect of share options                                                
recognised directly in equity                     -           857             -
                                                                               
                                                                               
Net income recognised directly                    -           857             -
in equity                                                                      
                                                                               
Profit for the period                        12,591         8,686        18,647
                                                                               
Total recognised income and                                                    
expense for the period                                                         
attributable to equity holders               12,591         9,543        18,647
of the Parent                                                                  

                 CONDENSED CONSOLIDATED INTERIM BALANCE SHEET                  

                              as at 30 June 2008                               

                                                                               
                            Note   30 June 2008   30 June 2007 31 December 2007
                                                                               
                                           £000           £000             £000
                                                                               
Non-current assets                                                             
                                                                               
Property, plant and          11           2,142          1,511            2,042
equipment                                                                      
                                                                               
Intangible assets                         7,839          6,876            7,580
                                                                               
Deferred tax assets                         192          2,262            1,336
                                                                               
Total non-current assets                 10,173         10,649           10,958
                                                                               
Current assets                                                                 
                                                                               
Trade and other receivables  12          12,485          4,912           11,202
                                                                               
Income tax receivable                         -            163              163
                                                                               
Cash and cash equivalents                 3,162         17,464           11,807
                                                                               
Total current assets                     15,647         22,539           23,172
                                                                               
Total assets                             25,820         33,188           34,130
                                                                               
Current liabilities                                                            
                                                                               
Loans and borrowings         14        (26,500)              -                -
                                                                               
Trade and other payables     13        (13,400)       (10,169)         (14,714)
                                                                               
Income tax payable                      (6,224)        (3,692)          (4,413)
                                                                               
Deferred consideration       15         (2,461)              -                -
                                                                               
Provisions                                (160)           (96)            (130)
                                                                               
Total current liabilities              (48,745)       (13,957)         (19,257)
                                                                               
Non-current liabilities                                                        
                                                                               
Deferred tax liabilities                   (99)          (126)            (110)
                                                                               
Deferred consideration                        -        (2,202)          (2,328)
                                                                               
Provisions                                (167)           (64)             (43)
                                                                               
Total non-current                         (266)        (2,392)          (2,481)
liabilities                                                                    
                                                                               
Net (liabilities)/assets               (23,191)         16,839           12,392
                                                                               
Equity                                                                         
                                                                               
Share capital                             1,212          1,327            1,327
                                                                               
Share premium                                 -            105              105
                                                                               
Other reserves                              220              -                -
                                                                               
(Deficit)/retained earnings            (24,623)         15,407           10,960
                                                                               
Total equity attributable                                                      
to equity holders of the     16        (23,191)         16,839           12,392
Parent                                                                         


             CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOW             
                     FOR THE SIX MONTHS ENDED 30 JUNE 2008                     

                                                                               
                              Note      6 months 6 months ended      Year ended
                                           ended   30 June 2007     31 December
                                    30 June 2008                           2007
                                                                               
                                            £000           £000            £000
                                                                               
Cash flows from operating                                                      
activities                                                                     
                                                                               
Profit for the period                     12,591          8,686          18,647
                                                                               
Adjustments for:                                                               
                                                                               
Depreciation charges                         314            218             503
                                                                               
Amortisation charges                         207            185             390
                                                                               
Financial income                           (203)          (488)           (891)
                                                                               
Financial expenses                           524              -             129
                                                                               
Share-based payments charge                  958          1,210           2,331
                                                                               
Income tax expense                         7,203          3,447           8,472
                                                                               
Operating profit before                                                        
changes in working capital                21,594         13,258          29,581
                                                                               
Increase in trade and other              (1,283)        (1,728)         (8,023)
receivables                                                                    
                                                                               
(Decrease)/increase in trade                                                   
and other payables                       (1,310)          1,117           8,337
                                                                               
Increase/(decrease) in                       154           (48)            (35)
provisions                                                                     
                                                                               
Cash generated from                       19,155         12,599          29,860
operations                                                                     
                                                                               
Interest paid                              (191)              -             (3)
                                                                               
Income taxes paid                        (4,100)              -         (4,250)
                                                                               
Net cash from operating                                                        
activities                                14,864         12,599          25,607
                                                                               
Cash flows from investing                                                      
activities                                                                     
                                                                               
Interest received                            203            488             891
                                                                               
Acquisition of property,                   (414)          (341)         (1,157)
plant and equipment                                                            
                                                                               
Acquisition of intangible                  (466)          (157)           (643)
assets                                                                         
                                                                               
Acquisition of subsidiary                      -        (3,177)         (3,177)
(net of cash acquired)                                                         
                                                                               
Net cash used in investing                 (677)        (3,187)         (4,086)
activities                                                                     
                                                                               
Cash flows from financing                                                      
activities                                                                     
                                                                               
Dividends paid                  9        (7,082)        (3,729)         (6,176)
                                                                               
Purchase of shares for         16       (11,917)        (4,043)        (19,362)
treasury                                                                       
                                                                               
Purchase of shares for         16       (29,861)              -               -
cancellation                                                                   
                                                                               
Share buy back expenses                    (272)              -               -
                                                                               
New shares issued                              -            105             105
                                                                               
Proceeds from borrowings       14         26,500              -               -
                                                                               
Debt issue costs                           (200)              -               -
                                                                               
Proceeds on exercise of share                  -            838             838
options                                                                        
                                                                               
Net cash used in financing              (22,832)        (6,829)        (24,595)
activities                                                                     
                                                                               
Net (decrease)/increase in                                                     
cash and cash equivalents                (8,645)          2,583         (3,074)
                                                                               
Cash and cash equivalents at              11,807         14,881          14,881
1 January                                                                      
                                                                               
                                                                               
Cash and cash equivalents at               3,162         17,464          11,807
period end                                                                     

NOTES

1 General information


Rightmove plc (the Company) is a Company domiciled in the United Kingdom (UK).
The condensed consolidated interim financial statements of the Company as at
and for the six months ended 30 June 2008 comprise the Company and its interest
in its subsidiaries (together referred to as the Group).

The consolidated financial statements of the Group as at and for the year ended
31 December 2007 are available upon request to the Company Secretary from the
Company's registered office at 4th Floor, 33 Soho Square, London, W1D 3QU or
from the investor relations website at www.rightmove.co.uk/investors.rsp.

2 Basis of preparation

The condensed consolidated interim financial statements have been prepared in
accordance with International Financial Reporting Standard IAS 34 Interim
Financial Reporting and the Disclosure and Transparency Rules of the UK's
Financial Services Authority. They do not include all of the information
required for full annual financial statements and should be read in conjunction
with the consolidated financial statements of the Group as at and for the year
ended 31 December 2007.

The condensed consolidated interim financial statements were approved by the
Board of directors on  29 August 2008. The half-year results for the current
and comparative period are unaudited. The auditor, KPMG Audit Plc, has carried
out a review of the interim financial statements and their report is set out at
the end of this document.

The comparative figures as at and for the year ended 31 December 2007 are
extracted from the Group's statutory accounts for that financial year. Those
accounts have been reported on by the auditor and delivered to the registrar of
companies. The report of the auditor was: (i) unqualified, (ii) did not include
a reference to any matters to which the auditor 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.

The Group's financial risk management objectives and policies are consistent
with that disclosed in the consolidated financial statements as at and for the
year ended 31 December 2007.

The directors are satisfied that the Group is a going concern and able to meet
its current obligations as they fall due. The Group net liability position at
30 June 2008 has arisen as a result of the loan facility entered into to
finance the share buy back programme (see Notes 14 and 17). The directors
expect this to convert into a five year term loan as set out in Note 14.

Capital structure


On 28 January 2008, the ordinary shares of Rightmove Group plc (Company no.:
6426485) (subsequently renamed Rightmove plc) (the Company) were admitted to
trading on the official list of the London Stock Exchange and became the
holding company of Rightmove plc (Company no.: 3997679) and its subsidiary
companies. This occurred as part of a Scheme of Arrangement under Section 425
of the Companies Act 1985 under which Rightmove Group plc (Company no.:
6426485) replaced the previously listed company, Rightmove plc (Company no.:
3997679). With effect from 28 January 2008, Rightmove Group plc (Company no.:
6426485) changed its name to Rightmove plc and Rightmove plc (Company no.:
3997679) re-registered as a private company and changed its name to Rightmove
Group Limited.

The corporate restructuring has been accounted for as a reverse acquisition.
Therefore, the condensed unaudited consolidated interim financial statements as
at and for the six-month period ended 30 June 2008 of the Company are prepared
as a continuation of the previously listed company's condensed unaudited
consolidated interim financial statements.

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

3 Significant accounting policies

The accounting policies applied by the Group in these condensed consolidated
financial statements are in accordance with International Financial Reporting
Standards as adopted by the European Union (Adopted IFRSs) and are the same as
those applied by the Group in its consolidated financial statements as at and
for the year ended 31 December 2007. The same accounting policies are
anticipated to be applied for the year ending 31 December 2008.

Judgements and estimates
The preparation of financial statements in conformity with Adopted IFRSs
requires management to make judgements, estimates and assumptions that affect
the application of policies and reported amounts of assets and liabilities,
income and expenses. The estimates and associated assumptions are based on
historical experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis of
making judgements about carrying values of assets and liabilities that are not
readily apparent from other sources. Actual results may differ from these
estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised and in future periods if applicable.

In particular information about significant areas of estimation uncertainty and
critical judgements in applying accounting policies that have the most
significant effect on the amounts recognised in the financial statements is
included in Note 5 Share-based payments, Note 10 Taxation and Note 12 Trade and
other receivables.


4 Segmental reporting

The Group does not have geographical segments, with all revenue derived from
external operations in all periods. Revenue derived from outside the UK is not
material in either 2008 or 2007.

All activities in all periods relate to the property advertising segment and
there were no other separately identifiable business segment income statement
or balance sheet items.

5 Share-based payments

In accordance with International Financial Reporting Standard (IFRS) 2 a charge
of £958,000 (30 June 2007 : £1,210,000) is included in the income statement,
being the amortisation of the value of the share options granted in 2006 and
2007. Employer's National Insurance (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 the share options. Based on the share price at 30
June 2008 the accrual built up in prior periods has been reversed resulting in
a credit to the income statement of £240,000.

6 Financial income

                                                                               
                               6 months ended  6 months ended        Year ended
                                 30 June 2008    30 June 2007  31 December 2007
                                         £000            £000              £000
                                                                               
                                                                               
Interest income on cash                   203             488               891
balances                                                                       

7 Financial expenses

                                                                               
                                6 months ended  6 months ended       Year ended
                                  30 June 2008    30 June 2007 31 December 2007
                                                                               
                                          £000            £000             £000
                                                                               
Debt issue costs                           200               -                -
                                                                               
Interest expense                           138               -                -
                                                                               
Unwinding of effective                                                         
interest rate on deferred                  133               -              126
purchase consideration                                                         
                                                                               
Other financial expenses                    52               -               70
                                                                               
Preference dividend interest                 1               -                -
                                                                               
Interest expense on late                                                       
payment of taxes                             -               -                3
                                                                               
                                           524               -              199



8 Earnings per share (EPS)

                                                                               
                                                                               
                               Weighted average                                
                                     number of         Earnings           Pence
                                ordinary shares            £000       per share
                                                                               
Six months ended 30 June 2008                                                  
                                                                               
Basic EPS                           117,518,535          12,591           10.71
                                                                               
Diluted EPS                         119,123,970          12,591           10.57
                                                                               
Underlying basic EPS                117,518,535          13,309           11.32
                                                                               
Underlying diluted EPS              119,123,970          13,309           11.17
                                                                               
Six months ended 30 June 2007                                                  
                                                                               
Basic EPS                           124,136,849           8,686            7.00
                                                                               
Diluted EPS                         132,599,665           8,686            6.55
                                                                               
Underlying basic EPS                124,136,849          10,225            8.24
                                                                               
Underlying diluted EPS              132,599,665          10,225            7.71
                                                                               
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



Weighted average number of ordinary shares (basic)

                              6 months ended   6 months ended       Year ended
                                30 June 2008     30 June 2007 31 December 2007
                            Number of shares Number of shares Number of shares
                                                                              
Issued ordinary shares at                                                     
1 January less own shares        121,046,278      124,054,318      124,054,318
held                                                                          
                                                                              
Effect of own shares held        (1,783,400)         (59,219)      (1,242,710)
in treasury                                                                   
                                                                              
Effect of own shares                                                          
purchased for cancellation       (1,744,343)                -                -
                                                                              
Effect of share options                    -          140,884          195,890
exercised                                                                     
                                                                              
Effect of new shares issued                -              866           16,230
                                                                              
                                 117,518,535      124,136,849      123,023,728

Weighted average number of ordinary shares (diluted)

For diluted EPS, the weighted average number of ordinary shares in issue is
adjusted to assume conversion of all dilutive potential shares. The Group has
one class of dilutive potential ordinary shares being those shares held by The
Rightmove Employees' Share Trust (EBT) to satisfy share options granted to
employees.

                              6 months ended   6 months ended       Year ended
                                30 June 2008     30 June 2007 31 December 2007
                            Number of shares Number of shares Number of shares
                                                                              
Weighted average number of                                                    
ordinary shares (basic)          117,518,535      124,136,849      123,023,728
                                                                              
Dilutive impact of share           1,605,435        8,462,816        8,407,810
options                                                                       
                                                                              
                                                                              
                                 119,123,970      132,599,665      131,431,538


Underlying EPS is calculated before the charge for share-based payments,
capital reconstruction costs and Employer's NI on share options under issue.
Reconciliation of the basic earnings for the period to the underlying earnings
is presented below:

                              6 months ended   6 months ended        Year ended
                                30 June 2008     30 June 2007  31 December 2007
                                        £000             £000              £000
                                                                               
Basic earnings for the                12,591            8,686            18,647
period                                                                         
                                                                               
Share-based payments                     958            1,210             2,331
                                                                               
NI on share options under              (240)              329               298
issue                                                                          
                                                                               
Capital reconstruction                     -                -             1,690
costs                                                                          
                                                                               
                                                                               
Underlying earnings for the           13,309           10,225            22,966
period                                                                         


9 Dividends

Dividends declared and paid by the Group were as follows:

                           6 months ended     6 months ended         Year ended
                             30 June 2008       30 June 2007   31 December 2007
                                                                               
                       Pence per          Pence per          Pence per         
                           share     £000     share     £000     share     £000
                                                                               
                                                                               
2006 final dividend            -        -       3.0    3,729       3.0    3,729
paid                                                                           
                                                                               
                                                                               
2007 interim dividend          -        -         -        -       2.0    2,447
paid                                                                           
                                                                               
                                                                               
2007 final dividend          6.0    7,082         -        -         -        -
paid                                                                           
                                                                               
                                                                               
                                    7,082              3,729              6,176



After the period end an interim dividend of 3.0p (30 June 2007: 2.0p) per
qualifying ordinary share being £3,279,000 (30 June 2007: £2,447,000) was
proposed by the directors. No provision was made for the interim dividend in
either period and there are no income tax consequences.

The 2007 final dividend paid on 12 May 2008 was £7,082,000 (31 December 2007: 
£ 7,119,000) the difference of £37,000 being due to a reduction in the ordinary
shares entitled to a dividend following share buy backs made in the period
between the year end and the 2007 final dividend record date of
11 April 2008.

10 Taxation

The Group's consolidated effective tax rate for the six months ended 30 June
2008 is 36% (30 June 2007: 28%). The difference between the standard rate and
the effective rate is the reversal of the deferred tax asset on share options
(6%) and disallowable expenditure (2%).

The deferred tax asset of £192,000 as at 30 June 2008 is in respect of tax
losses brought forward, equity settled share options and accelerated capital
allowances.

The deferred tax asset relating to equity settled share options at 30 June 2008
is £4,000 (1 January 2008: £1,252,000). This decrease is due to the Company's
share price decreasing from £4.64 at 1 January 2008 to £2.68 at 30 June 2008.


11 Property, plant and equipment

During the six months ended 30 June 2008 the Group acquired assets with a cost
of £414,000 (30 June 2007: £341,000).


12 Trade and other receivables

                                                                               
                                                                               
                                    30 June 2008  30 June 2007 31 December 2007
                                                                               
                                            £000          £000             £000
                                                                               
Trade receivables                         11,013         2,744            8,865
                                                                               
Less provision for impairment of                                               
trade receivables                          (726)           (4)             (91)
                                                                               
                                                                               
Net trade receivables                     10,287         2,740            8,774
                                                                               
Amounts owed by related parties              159           335              333
(see Note 18)                                159           335              333
                                                                               
Other debtors                                763           931            1,016
                                                                               
Prepayments and accrued income             1,276           906            1,079
                                                                               
                                          12,485         4,912           11,202


13 Trade and other payables

                                                                               
                                                                               
                                    30 June 2008  30 June 2007 31 December 2007
                                                                               
                                            £000          £000             £000
                                                                               
Trade payables                             1,080           989            1,696
                                                                               
Amounts accrued in relation to                                                 
purchase of shares for treasury                -         3,094                -
                                                                               
                                                                               
Of treasury shares                                                             
                                                                               
Trade accruals                             2,535         2,060            3,215
                                                                               
Other creditors                              137           373              609
                                                                               
Other taxation and social security         3,262         2,201            3,300
                                                                               
Deferred income                            6,386         1,452            5,894
                                                                               
                                          13,400        10,169           14,714


14 Loans and borrowings

During the period, the Company obtained a Sterling-denominated revolving loan
facility of £40m to support its continuing share buy back programme. Under the
terms of the loan agreement there is an option at maturity (April 2009) for the
revolving loan facility to convert into a term loan for a further five years.
The loan bears interest at LIBOR plus 1.5% together with a mandatory cost
applied by the lender.


                           Face value     Carrying  Face value     Carrying
                              30 June        value     30 June        value
                                 2008 30 June 2008        2007 30 June 2007
                                                                           
                                 £000         £000        £000         £000
                                                                           
Unsecured revolving loan       26,500       26,500           -            -
facility                                                                   
                                                                           


Subsequent to the period end on 16 July 2008, a further £4m was drawn down
under the revolving loan facility.


15 Deferred consideration

The deferred consideration of £2,461,000 relates to the Group's acquisition on
21 March 2007 of 66.7% of the ordinary share capital of Holiday Lettings
Limited (HLL). In terms of the HLL shareholders' agreement, a put and call
option exists to acquire the remaining 33.3% of ordinary shares held by
management. The earliest opportunity HLL management has to exercise the put and
call option is 30 June 2009 based on the audited accounts for the year ending
31 December 2008.

16 Reconciliation of movement in capital and reserves

                      Share    Share  EBT own  Treasury    Capital  Merger    Other    Total
                    capital  premium   shares cancelled redemption reserve retained         
                                      reserve    shares    reserve         earnings         
                                                              fund                          
                       £000     £000     £000      £000       £000    £000     £000     £000
                                                                                            
At 1 January 2007     1,327        - (17,663)         -          -       -   32,345   16,009
                                                                                            
Profit for the            -        -        -         -          -       -    8,686    8,686
period                                                                                      
                                                                                            
Dividends to                                                                                
shareholders              -        -        -         -          -       -  (3,729)  (3,729)
                                                                                            
Equity settled                                                                              
share options             -        -        -         -          -       -    1,210    1,210
charge                                                                                      
                                                                                            
New shares issued         -      105        -         -          -       -        -      105
                                                                                            
Purchase of shares                                                                          
for treasury              -        -        -   (7,137)          -       -        -  (7,137)
                                                                                            
EBT own shares held       -        -      514         -          -       -        -      514
                                                                                            
Gain on exercise of                                                                         
share options             -        -        -         -          -       -      324      324
                                                                                            
Tax in respect of                                                                           
share options                                                                               
recognised directly       -        -        -         -          -       -      857      857
in equity                                                                                   
                                                                                            
At 30 June 2007       1,327      105 (17,149)   (7,137)          -       -   39,693   16,839
                                                                                            
At 1 January 2007     1,327        - (17,663)         -          -       -   32,345   16,009
                                                                                            
Profit for the year       -        -        -         -          -       -   18,647   18,647
                                                                                            
Dividends to                                                                                
shareholders              -        -        -         -          -       -  (6,176)  (6,176)
                                                                                            
Equity settled                                                                              
share options             -        -        -         -          -       -    2,331    2,331
charge                                                                                      
                                                                                            
New shares issued         -      105        -         -          -       -        -      105
                                                                                            
Purchase of shares                                                                          
for treasury              -        -        -  (19,362)          -       -        - (19,362)
                                                                                            
EBT own shares held       -        -      514         -          -       -        -      514
                                                                                            
Gain on exercise of                                                                         
share options             -        -        -         -          -       -      324      324
                                                                                            
At 31 December 2007   1,327      105 (17,149)  (19,362)          -       -   47,471   12,392
                                                                                            
At 1 January 2008     1,327      105 (17,149)  (19,362)          -       -   47,471   12,392
                                                                                            
Capital                (33)    (105)        -    19,362                138 (19,362)        -
reconstruction                                                                              
                                                                                            
Profit for the            -        -        -         -          -       -   12,591   12,591
period                                                                                      
                                                                                            
Dividends to                                                                                
shareholders              -        -        -         -          -       -  (7,082)  (7,082)
                                                                                            
Equity settled                                                                              
share options             -        -        -         -          -       -      958      958
charge                                                                                      
                                                                                            
Purchase of shares                                                                          
for treasury              -        -        -  (11,917)          -       -        - (11,917)
                                                                                            
Purchase of own           -        -        -  (29,861)          -       -        - (29,861)
shares                                                                                      
                                                                                            
Cancellation of own                                                                         
shares                 (82)        -        -    29,861         82       - (29,861)        -
                                                                                            
Share buy back                                                                              
expenses                  -        -        -         -          -       -    (272)    (272)
                                                                                            
At 30 June 2008       1,212        - (17,149)  (11,917)         82     138    4,443 (23,191)



17 Share buy back

In June 2007, the Company commenced a share buy back programme to purchase its
own ordinary shares. The total number of shares bought back in the six months
to 30 June 2008 was 10,712,806 (30 June 2007: 1,176,966) representing 9% of the
issued share capital (excluding shares held in treasury). Of the 10,712,806
shares bought back in the period 8,207,376 shares were cancelled and 2,505,430
shares were transferred to treasury. The shares were acquired on the open
market at a total consideration (excluding costs) of £41,778,000 (30 June 2007:
£7,137,000). The maximum and minimum prices paid were 501p and 319p per share
respectively.

18 Related parties

As at 30 June 2008 Rightmove plc has one principal shareholder, Connells
Limited, who holds 17.9% of the issued share capital (excluding shares held in
treasury). As at 30 June 2007 there were two principal shareholders, Connells
Limited and Halifax Estate Agencies Limited. Halifax Estate Agencies Limited
sold its remaining interest in the Company in May 2008. The Group's
transactions and balances with these shareholders for all periods were as
follows:

                                                                              
                               6 months ended  6 months ended       Year ended
                                 30 June 2008    30 June 2007 31 December 2007
                                         £000            £000             £000
                                                                              
Amounts owed by shareholders:                                                 
                                                                              
Sequence (UK) Limited                      58             102              183
(Connells)                                                                    
                                                                              
Connells Residential                       32             127               62
                                                                              
Halifax Estate Agencies                    69             106               88
Limited                                                                       
                                                                              
                                                                              
                                          159             335              333
                                                                              
                                                                              
Amounts invoiced to                                                           
shareholders:                                                                 
                                                                              
Sequence (UK) Limited                     337             210              539
(Connells)                                                                    
                                                                              
Connells Overseas Property                  2               1                3
Department                                                                    
                                                                              
Connells Residential                      186             106              291
                                                                              
Halifax Estate Agencies                   404             241              543
Limited                                                                       
                                                                              
                                                                              
                                          929             558            1,376
                                                                              
                                                                              
Amounts invoiced by                                                           
shareholders:                                                                 
                                                                              
Connells Residential                        -               4               34


Dividends paid:                                                               
                                                                              
Connells Limited                        1,275             826            1,251
                                                                              
Halifax Estate Agencies                   974             639            1,065
Limited                                                                       
                                                                              
                                                                              
                                        2,249           1,465            2,316
                                                                              
                                                                              
Amounts owed to shareholders:                                                 
                                                                              
Connells Estate Agents                      -               4                -


Included within trade and other receivables is £159,000 due from related
parties (30 June 2007: £335,000).Trade and other payables include £nil due to
related parties (30 June 2007: £4,000).






Independent review report to Rightmove plc

Introduction

We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30 June
2008 which comprises the condensed consolidated interim income statement, the
condensed consolidated interim statement of recognised income and expense, the
condensed consolidated interim balance sheet, the condensed consolidated
interim cash flow statement and the related explanatory notes. We have read the
other information contained in the half-yearly financial report and considered
whether it contains any apparent misstatements or material inconsistencies with
the information in the condensed set of financial statements.

This report is made solely to the company in accordance with the terms of our
engagement to assist the company in meeting the requirements of the Disclosure
and Transparency Rules ("the DTR") of the UK's Financial Services Authority
("the UK FSA"). 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 half-yearly financial report is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the
half-yearly financial report in accordance with the DTR of the UK FSA.

As disclosed in note 3, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the EU. The condensed set of
financial statements included in this half-yearly financial report has been
prepared in accordance with IAS 34 Interim Financial Reporting as adopted by
the EU.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.

Scope of review

We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 Review of Interim Financial Information
Performed by the Independent Auditor of the Entity issued by the Auditing
Practices Board for use in the UK. A review of interim financial information
consists of making enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit performed in accordance
with International Standards on Auditing (UK and Ireland) and consequently does
not enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an
audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2008 is not prepared, in all
material respects, in accordance with IAS 34 as adopted by the EU and the DTR
of the UK FSA.

KPMG Audit Plc
Chartered Accountants
Milton Keynes

29 August 2008