TIDMLOOP
RNS Number : 5142T
LoopUp Group PLC
21 March 2019
LOOPUP GROUP PLC
("LoopUp Group" or the "Group")
Preliminary results for the year ended 31 December 2018
Transformative growth year, enabling increased investment in
proven sales structure
LoopUp Group plc (AIM: LOOP), the premium remote meetings
company, today announces its unaudited preliminary results for the
year ended 31 December 2018.
The results demonstrate transformational growth for the Group,
driven by both the acquisition of MeetingZone in June 2018 and our
organic LoopUp growth engine. The maintenance of strong organic
unit economics, combined with a successful proof-of-concept
programme to accelerate recruitment into our proven new business
pods, now lead the Group to announce additional investment out of
its increasingly cash-generative operations to accelerate future
growth.
Financial Highlights
FY2018 FY2017
Year-on-year
GBP million (unaudited) (audited) growth
------------------------------ ------------- ----------- -------------
Revenue 34.2 17.5 96%
Gross profit 23.9 13.4 78%
Adjusted EBITDA (1) 7.7 3.5 121%
Adjusted operating profit
(2) 4.5 0.7 521%
Operating profit 0.9 0.7 16%
Adjusted diluted EPS (pence)
(2) 9.3 4.4 111%
------------------------------ ------------- ----------- -------------
1. Earnings before interest, taxation, depreciation and
amortisation, adjusted to exclude non-recurring transaction costs,
exceptional reorganisation costs and share-based payment
charges
2. Adjusted to exclude non-recurring transaction costs,
exceptional reorganisation costs, amortisation of acquired
intangibles and share-based payment charges
-- Adjusted diluted EPS(2) grew by 111% to 9.3 pence in FY2018
(FY2017: 4.4 pence), well ahead of market expectations.
-- Adjusted operating profit(2) grew by 521% to GBP4.5 million
in FY2018 (FY2017: GBP0.7 million), and adjusted EBITDA(2) grew by
121% to GBP7.7 million in FY2018 (FY2017: GBP3.5 million).
-- Group revenue increased by 96% to GBP34.2 million in FY2018 (FY2017: GBP17.5 million).
-- The Group ended the year with cash of GBP5.6 million and net debt of GBP10.6 million.
Operating Highlights
-- On 4 June 2018, the Group completed the acquisition of
MeetingZone, which is now fully integrated into a unified Group
organisational structure with annualised cost synergies materially
above the GBP3 million announced at the time of acquisition.
-- The project to transition MeetingZone's audio conferencing
business over to the LoopUp platform has progressed positively and
the Group expects a successful overall transition to be completed
by Summer 2019.
-- The Group has maintained its track record of 'negative net
churn' - i.e. net growth - in its long-term established customer
base, driven by continued strong end user engagement with
differentiated capabilities of the LoopUp product.
-- The unit economics of our seven UK and US team-based 'pods'
for new business acquisition have remained highly efficient during
FY2018, returning GBP0.73 of Year 1 gross margin for every pound
invested (FY2017: GBP0.75).
-- The Group entered the Australian market in March 2018 and has
won 55 new customers to date in the region.
-- The Group operated at a total of approximately 7.5
quota-effective pods during the year (7 in the UK/US and 0.5 in
Australia), below the expected level of 11. This was partly due to
necessary pipeline build in Australia and partly due to the Group's
decision not to migrate any MeetingZone sales staff over to LoopUp
pods during the period. This resulted in constant currency organic
LoopUp revenue growth of approximately 20% in the period (FY15-FY17
average: 32%).
Post Period Highlights
-- The Group has closed a material contract renewal with leading
global law firm, Clifford Chance for a minimum contract value of
GBP2.34 million in aggregate over its 3-year term.
-- To boost its number of pods for FY2019, the Group has
successfully completed its inaugural 'Pod Academy' programme,
bringing 14 career change recruits into more senior sales and
account executive pod roles.
-- Our Pod Academy graduates have been joined by 30 new Business
Development Associates, recruited through the Group's established
graduate recruitment program.
-- In line with the above expanded Pods, in February 2019, the
Group opened new offices in Chicago, Dallas, Los Angeles, Atlanta
and Madrid, employing 32 people in aggregate.
-- Following the success of Pod Academy, the Group now plans to
invest an additional GBP2.0 million out of its increasingly
cash-generative operations in the faster expansion of pods,
bringing the total number of quota-effective pods back on track
with prior expectations by the end of FY2019 and ahead of prior
expectations from FY2020 onwards.
Steve Flavell and Michael Hughes, co-CEOs of LoopUp Group,
commented,
"We're delighted to announce strong results at the end of a
busy, exciting and transformational year for the Group. MeetingZone
is now bedded in organisationally, with greater cost savings
delivered than envisaged at the time of acquisition and the
transition to the LoopUp platform progressing positively.
Our core business metrics all remain strong: further improved
end user engagement with the LoopUp product; continued net revenue
growth in our long-term established customer base; and continued
efficient return on investment metrics from our new business
pods.
We're incredibly excited by the success and potential of our new
Pod Academy programme. Pod Academy now provides a more dynamic
lever to expand our established and consistently-efficient pods
structure, and we're excited to announce additional investment into
this programme to drive future growth.
We continue to see strong demand for the LoopUp product from our
target market of mid-large enterprises and professional services
firms. We've started 2019 with healthy pipelines and we're
confident in our ability to deliver continued strong growth."
Market abuse regulation:
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
For further information, please contact:
LoopUp Group plc via FTI
Steve Flavell, co-CEO
+44 (0) 20 7886
Panmure Gordon (UK) Limited 2500
Dominic Morley / Alina Vaskina (Corporate Finance)
Erik Anderson (Corporate Broking)
+44 (0) 20 7260
Numis Securities Limited 1000
Simon Willis / Jonny Abbott (Corporate Finance)
Tom Ballard (Corporate Broking)
+44 (0) 20 3727
FTI Consulting, LLP 1000
Matt Dixon / Harry Staight
About LoopUp Group plc
LoopUp (LSE AIM: LOOP) is a premium remote meetings solution.
Streamlined and intuitive, LoopUp is built to give mainstream
business professionals a better and more productive experience than
basic dial-in conferencing, while delivering the quality, security
and reliability required in the enterprise. One-click screen
sharing and integration with tools business people use every day,
like Outlook(TM), make it easy for LoopUp users to collaborate in
real time. LoopUp's award-winning SaaS solution doesn't overwhelm
users with features and doesn't require training. Over 2,000
enterprises worldwide, including Travelex, Kia Motors America,
Planet Hollywood, National Geographic and Clifford Chance trust
LoopUp with their remote meetings.
The Group is headquartered in London, with offices in San
Francisco, New York, Boston, Chicago, Dallas, Los Angeles, Atlanta,
Denver, Cardiff, Milton Keynes, Madrid, Berlin, Malmo, Hong Kong,
Sydney and Barbados, and is listed on the AIM market of the London
Stock Exchange (LOOP). For further information, please visit:
www.loopup.com.
Chief Executive Officers' Business Review
We are pleased to report on a period of transformational growth
for the Group during financial year 2018, with revenue growing by
96% and adjusted operating profit(2) by 521%. This strong
performance has been driven by both the acquisition of MeetingZone
and continued robust organic growth of the LoopUp product,
delivered by our efficient new business acquisition pods.
The Group has also strengthened its senior management team
during the period with several key hires: Robert Jardine as Chief
Marketing Officer; Ben Fried as VP of Group Commercial; Dave
Carroll as VP of Network Operations; Paul Tunstall as Senior
Director of Account Management; Sarah Cranston as Head of Customer
Support; and Angel Junio as Director of HR.
Acquisition of MeetingZone
On 4 June 2018, the Group completed the acquisition of
MeetingZone for GBP61.4 million, funded by a GBP50 million equity
placing and a new GBP17 million term loan. Following a detailed
strategic review of the MeetingZone business during the summer,
LoopUp and MeetingZone are now fully integrated into a unified
organisational structure for new business acquisition, customer
success and operations. This reorganisation has resulted in
annualised cost synergies in excess of the GBP3 million announced
at the time of acquisition.
The Group's strategic rationale for the acquisition was to
transition MeetingZone's audio conferencing business over to the
LoopUp platform, and by so doing, amplify the established 'network
effect' in the LoopUp product that accounts for approximately 30%
of the Group's new business origination. The transition project
continues to progress well, and the Group expects a successful
transition to be completed by Summer 2019.
Continued strong organic growth metrics
The Group has continued to see strong organic demand for the
LoopUp product from its target market of mid-large enterprises and
professional services firms. Landmark accounts won during the
period included a publicly-quoted UK telecommunications company, a
leading pet products retailer, multiple major international law
firms including Australia's largest law firm; a US-headquartered
medical non-profit organization operating in 43 countries; and a
leading global brokerage company with joint headquarters in London
and New York.
As announced on 18 January 2019, the Group closed a material
contract renewal with leading global law firm, Clifford Chance. The
minimum total contract value of GBP2.34 million in aggregate over
the 3-year term is for the provision of conference calls across
Clifford Chance's global operations, spanning 32 major financial
centres in the Americas, Asia Pacific, Europe, the Middle East and
Africa.
The Group's strong organic growth has continued to be driven by
our compelling retention and new business metrics.
The Group maintained its track record of low gross revenue churn
at 5.5% (FY2017: 5%; FY2016: 5% and FY2015: 6%) and 'negative net
churn' - i.e. net growth of 1% (FY2017: 2%[1]) - in its long-term
established customer base, driven by continued strong end user
engagement with differentiated capabilities of the LoopUp product.
All newly-provisioned users during FY2018 joined 79%[2] of their
meetings via the LoopUp join link - and so used the LoopUp software
- rather than via traditional dial-in.
Our seven UK and US pods delivered on average approximately
GBP471,000 of new annual recurring revenue (FY2017: GBP472,000) -
or approximately GBP368,000 of new annual recurring gross margin
(FY2017: GBP362,000) - at an average fully-loaded cost of
approximately GBP508,000 (FY2017: GBP483,000). This equates to a
Year 1 gross margin return of GBP0.73 for every pound invested
(FY2017: GBP0.75).
As announced on 28 March 2018, the Group entered the Australian
market with two Pods, formed by a mix of senior team members
exported from the UK and US and junior team members recruited
locally. Notwithstanding their need to build pipelines from a
standing start, our Australian team has already closed 55 accounts
and their performance has ramped from zero in the first half to
approximately 50% of UK/US pod levels in the second half. They are
now working under fully-ramped quota levels during FY2019.
Additional investment in growth via 'Pod Academy'
The Group met its top line growth expectations despite only
running at an average of 7.5 quota-effective pods during the year
(7 in the UK/US and 0.5 in Australia), versus our plans of 11. This
was partly due to necessary pipeline build in Australia and partly
due to the Group's decision not to migrate any MeetingZone sales
staff over to LoopUp pods during the period, although some such
migration will start to occur in the German and Swedish markets
from April 2019. This resulted in constant currency organic LoopUp
revenue growth of approximately 20% in the period (FY15-FY17
average: 32%).
The Group's strategy to address this shortfall in the number of
pods going into 2019 has been to conduct a major 'career change'
recruitment and training programme called 'Pod Academy'. The
Group's first 'Pod Academy' programme ran from November 2018 to
January 2019 inclusive, involving 20 recruits with experience from
outside of sales. Following three months of intensive training, 14
graduated Pod Academy in January 2019 as sales and account
executives, the more senior roles within Pods. They have been
joined by 30 new Business Development Associates, recruited through
the Group's established graduate recruitment programme, resulting
in new Pods forming in Chicago, Dallas, Los Angeles, Atlanta and
Madrid in February 2019, employing 32 people in aggregate.
The success of the Pod Academy program now provides a proven and
more dynamic lever to accelerate the expansion of our established
and consistently-efficient pods distribution structure. As such, we
are excited to announce additional investment of GBP2.0 million
into this programme during FY2019 out of our increasingly
cash-generative operations to accelerate future growth. Looking
forward, therefore, the Group now expects to have the following
number of quota-productive Pods on average during the period:
-- H1 2019: approximately 10
-- H2 2019: approximately 16
-- H1 2020: approximately 21
-- H2 2020: approximately 27
-- H1 2021: approximately 31
-- H2 2021: approximately 35
Continued product development and innovation
We continue to invest in developing the LoopUp product. During
2018, we worked on scaling various aspects of the LoopUp platform
and network operations in preparation to accommodate the extra
scale required by the MeetingZone platform transition project. We
also introduced language support into the product, making the
LoopUp software available to users in German, French, Spanish,
Swedish and both traditional and simplified Chinese. A considerable
amount of work has also been done on new product innovation
projects that the Group plans to announce during 2019.
Positive Outlook
We continue to see strong demand for the LoopUp product, and our
compelling product differentiation combined with our efficient new
business unit economics, make for an exciting outlook. Pipelines
are healthy and we remain confident in our ability to deliver
further strong growth.
Steve Flavell Michael Hughes
co-CEO co-CEO
Chief Financial Officer's Review
2018 was a transformative year for LoopUp, with the acquisition
of MeetingZone significantly increasing the scale and profitability
of the business.
The acquisition was completed in June 2018 for a total
consideration of GBP61.4m. Since the acquisition, the Group has
made significant progress with both integrating MeetingZone into
the LoopUp business, and in releasing significant cost synergies
principally through reorganization of the MeetingZone management
structure.
Operating results
Group revenues increased by 96% year-on-year to GBP34.2m,
including seven months of revenue from MeetingZone.
The Group has continued to benefit from improvements to its
gross margin due to the benefits of scale impacting the cost of
bought-in telephony. Overall gross margin on the Group's core
conferencing revenue grew from 76.7% in FY2017 to 78.2% in FY2018.
Certain other revenue streams acquired as part of the MeetingZone
acquisition operate at a lower margin, meaning that overall gross
margin was 70% for the year (2017: 76.7%).
Adjusted EBITDA[3] grew from GBP3.5m in FY2017 to GBP7.7m in
FY2018.
The Group's spend on development costs rose from GBP3.8m in
FY2017 to GBP4.3m in FY2018. The resulting amortisation charge is
lower at GBP2.6m (FY2017: GBP2.1m) due to the timing of completion
of individual development projects. There were no issues with
impairment of development projects during 2018.
The acquisition of MeetingZone has resulted in two one-off
charges to the income statement in FY2018. Firstly, the Group
incurred GBP3.8m of legal and professional fees in relation the
acquisition and fundraise - of these costs, GBP1.0m have been
charged to the income statement as non-recurring transaction costs
in relation to acquisition expenses. Of the remainder, GBP2.5m
relating to the GBP50m equity placing have been set against share
premium and GBP0.3m relating to the new debt facility have been
charged to finance costs (of which GBP0.2m are spread over the life
of the debt facility). Secondly, GBP1.2m of exceptional
reorganisation costs have been incurred, in relation to the
restructuring of MeetingZone.
Of the intangible assets created from the acquisition, GBP31m
has been classified as goodwill, with GBP33m considered to relate
to specific identifiable assets (customer relationships and
brands). The latter will be amortised over an estimated 15-year
life, resulting in a charge to the income statement of GBP1.3m in
FY2018.
The Group continues to receive a tax benefit from its product
development activity, and we expect to submit a claim for
approximately GBP1.0m of tax cash credit for FY2018, in addition to
the GBP0.9m successfully claimed for FY2017.
Assets and cash flows
The Group generated operating cash flows of GBP5.3m (FY2017:
GBP4.0m) and net cashflow before financing for the year was GBP0.6m
(FY2017: (GBP0.1m)). These numbers are after non-recurring
transaction costs and exceptional reorganization costs of GBP2.2m.
The Group ended the year with cash of GBP5.6m and net debt of
GBP10.6m.
To finance the acquisition of MeetingZone, the Group issued
12,500,000 new shares at an issue price of GBP4.00 per share. The
Group also arranged a GBP17m term loan through Bank of Ireland at
an interest rate of LIBOR plus 2.5%, repayable over five years
(with a 50% bullet payment). Separately, the Group has access to a
GBP3m revolving credit facility from the same lender, which was
undrawn at the end of 2018. The Group has significant headroom
against the covenants attached to these facilities.
The Group has over GBP13m of accumulated tax losses available
for relief against future taxable profits. The Directors have
decided not to recognise a deferred tax asset on these losses at
this time, as the significant investment being made in product
development is still generating tax losses in the UK. This policy
will be reviewed during 2019.
Simon Healey
CFO
Unaudited Consolidated Statement of Comprehensive income
For the year ended 31 December
2018
2018 2017
Note GBP000 GBP000
Revenue 34,213 17,465
Cost of sales (10,314) (4,076)
--------- --------
Gross profit 2 23,899 13,389
Adjusted operating expenses(i) (16,246) (9,926)
--------- --------
Adjusted EBITDA(ii) 7,653 3,463
Depreciation (546) (291)
Amortisation of development costs (2,558) (2,140)
Impairment of development costs - (300)
--------- --------
Adjusted operating profit (iii) 4,549 732
Non-recurring transaction costs (994) -
Exceptional reorganisation costs (1,223) -
Amortisation of acquired intangibles (1,289) -
Share-based payment charges (191) -
Operating profit 852 732
Finance costs (467) (3)
--------- --------
Profit before income tax 385 729
Income tax 858 1,260
--------- --------
Profit for the year 1,243 1,989
--------- --------
Currency translation gain / (loss) 48 (175)
--------- --------
Total comprehensive income for
the year attributable to the
equity holders of the parent 1,291 1,814
========= ========
Earnings per share (pence): 3
Basic 2.5 4.8
Diluted 2.4 4.4
========= ========
(i) Total administrative expenses excluding depreciation,
amortisation and impairment of development costs and acquired
intangibles, non-recurring transaction costs, exceptional
reorganisation costs and share-based payments charges.
(ii) Adjusted EBITDA is operating profit stated before
depreciation, amortisation and impairment of development costs and
acquired intangibles, non-recurring transaction costs, exceptional
reorganisation costs and share-based payments charges.
(iii) Before amortisation of other intangible assets,
non-recurring transaction costs, exceptional reorganisation costs
and share-based payments charges.
Unaudited Consolidated Statement of Financial Position
As at 31 December 2018
2018 2017
GBP000 GBP000
Assets:
Property, plant and equipment 2,168 466
Development costs 7,880 6,142
Other intangible assets 31,866 -
Goodwill 30,950 -
Total non-current assets 72,864 6,608
--------- ---------
Trade and other receivables 9,326 3,348
Cash and cash equivalents 5,581 2,902
Current tax 1,153 904
Total current assets 16,060 7,154
--------- ---------
Total assets 88,924 13,762
--------- ---------
Liabilities:
Trade and other payables (4,486) (2,118)
Accruals and deferred income (2,709) (1,189)
Borrowings (1,700) -
Total current liabilities (8,895) (3,307)
--------- ---------
Net current assets 7,165 3,847
Non-current liabilities:
Borrowings (14,450) -
Deferred tax liability (5,709) -
--------- ---------
Total non-current liabilities (20,159) -
--------- ---------
Total liabilities (29,054) (3,307)
Net assets 59,870 10,455
========= =========
Equity
Share capital 276 210
Share premium 60,504 12,637
Other reserve 12,691 12,691
Foreign currency translation
reserve (1,935) (1,983)
Retained loss (11,666) (13,100)
--------- ---------
Shareholders' funds attributable
to equity owners of parent 59,870 10,455
========= =========
Unaudited Consolidated Statement of Changes in Equity
For the year ended 31 December 2018
Share Share Other Foreign Retained Shareholders
capital premium reserve currency profit funds/
translation / (loss) (deficit)
reserve attributable
to equity
owners
of parent
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
As at 1 January
2017 204 11,708 12,691 (1,808) (15,089) 7,706
--------- --------- --------- ------------- ---------- --------------
Profit for the year - - - - 1,989 1,989
Other comprehensive
loss - - - (175) - (175)
Total comprehensive
profit / (loss)
for the year - - - (175) 1,989 1,814
--------- --------- --------- ------------- ----------
Transactions with
owners of parent
in their capacity
as owners:
Share issues 6 929 - - - 935
--------- --------- --------- ------------- ---------- --------------
As at 31 December
2017 210 12,637 12,691 (1,983) (13,100) 10,455
--------- --------- --------- ------------- ---------- --------------
As at 1 January
2018 210 12,637 12,691 (1,983) (13,100) 10,455
--------- --------- --------- ------------- ---------- --------------
Profit for the year - - - - 1,243 1,243
Other comprehensive
income - - - 48 - 48
Equity share-based
payment compensation - - - - 191 191
--------- --------- --------- ------------- ---------- --------------
Total comprehensive
profit for the year - - - 48 1,434 1,482
--------- --------- --------- ------------- ---------- --------------
Transactions with
owners of parent
in their capacity
as owners:
Share issues 66 47,867 - - - 47,933
As at 31 December
2018 276 60,504 12,691 (1,935) (11,666) 59,870
--------- --------- --------- ------------- ---------- --------------
Unaudited Consolidated Statement of Cash Flows
For the year ended 31 December 2018
2018 2017
GBP000 GBP000
Net cash flows from operating activities
Profit before income tax 385 729
Non-cash adjustments
Depreciation and amortisation 4,393 2,430
Impairment of intangible fixed
assets - 300
Share-based payments charges 191 -
Interest payable 467 -
Working capital adjustments
Increase in trade and other receivables (651) (547)
Increase / (decrease) in trade
and other payables (359) 183
Tax received 836 858
Net cash generated by operations 5,262 3,953
--------- --------
Cash flows from investing activities
Purchase of property, plant and
equipment (373) (331)
Addition of intangible assets (4,296) (3,760)
Payment for acquisition of subsidiary, (61,579) -
net of cash acquired
Net cash used by investing activities (66,248) (4,091)
--------- --------
Cash flows from financing activities
Proceeds of borrowings 17,000 -
Proceeds from share issue net of
issue costs 47,933 935
Repayment of loans (850) (306)
Interest and finance fees paid (467) -
Net cash generated from financing
activities 63,616 629
--------- --------
Net increase in cash and equivalents 2,630 491
Cash and cash equivalents brought
forward 2,902 2,547
Effect of foreign exchange rate
changes 48 (136)
--------- --------
Cash and cash equivalents carried
forward 5,580 2,902
========= ========
Notes to the Financial Statements
1. Background and basis of preparation
The principal activity of the Group is the provision of a
software-as-a-service (SaaS) solution for remote business
meetings.
LoopUp Group plc ('the Group') is a limited liability company
incorporated and domiciled in England and Wales, with company
number 09980752. Its registered office is 78 Kingsland Road, London
E2 8DP.
The unaudited summary financial information set out in this
announcement does not constitute the Group's consolidated statutory
accounts for the years ended 31 December 2018 or 31 December 2017.
The results for the year ended 31 December 2018 are unaudited. The
statutory accounts for the year ended 31 December 2018 will be
finalised on the basis of the financial information presented by
the Directors in this preliminary announcement and will be
delivered to the Registrar of Companies in due course. The
statutory accounts are subject to completion of the audit and may
change should a significant adjusting event occur before the
approval of the Annual Report.
In the past year the Group has applied a number of amendments to
IFRS's issued by the IASB. The adoption has not had a material
impact on the disclosures or the amounts reported in the Group's
consolidated statutory accounts. The following amendments were
applied:
-- IFRS 9: Financial Instruments -classification and measurement
-- IFRS 15: Revenue from contracts with customers
The statutory accounts for the Group for the year ended 31
December 2017 have been reported on by the Group's auditors and
delivered to the Registrar of Companies. The auditor's report on
those accounts was unqualified and did not include references to
any matter which the auditors drew attention by way of emphasis
without qualifying their report and did not contain statements
under section 498(2) or (3) of the Companies Act 2006.
The preliminary announcement for the year ended 31 December 2018
was approved by the Board for release on 20 March 2019.
2. Segmental information
The Directors have identified the segments by reference to the
principal groups of services offered and the geographical
organisation of the business as reported to the chief operating
decision-maker (CODM). The main segment is LoopUp Group meetings
services, which represents revenue generated from providing
customers access to the LoopUp conferencing platform as well as the
acquired MeetingZone conferencing platform. Other collaboration
services consist of revenues from the resale and augmentation of
third party conferencing platforms, along with related hardware and
consultancy sales.
Segmental revenues are external and there are no material
transactions between segments.
The Group's largest customer represented less than 5% of total
revenue in both years.
No segmental balance sheet was presented to the CODM.
2018 2017
GBP000 GBP000
Analysis of revenue by segment:
LoopUp Group meetings services 27,916 17,465
Third party and other services 6,297 -
-------- --------
34,213 17,465
======== ========
Analysis of gross profit before tax
by segment:
LoopUp Group meetings services 21,845 13,389
Third party and other services 2,054 -
-------- --------
23,899 13,389
======== ========
Geographical analysis of total revenue:
UK 18,004 6,957
Other EU 4,243 1,267
North America 11,622 8,968
Rest of World 344 273
-------- --------
34,213 17,465
-------- --------
Geographical analysis of audio conferencing
revenue
UK 13,455 6,957
Other EU 3,555 1,267
North America 10,562 8,968
Rest of World 344 273
-------- --------
27,916 17,465
======== ========
Geographical analysis of other collaboration
services revenue:
UK 4,113 -
Other EU 970 -
North America 1,214 -
Rest of World - -
-------- --------
6,297 -
-------- --------
Geographical analysis of non-current
assets:
UK 72,482 6,209
Other EU 10 -
North America 243 354
Rest of World 29 45
-------- --------
72,764 6,608
======== ========
3. Earnings per share
The basic earnings per share is calculated by dividing the net
profit attributable to equity holders of the Group by the weighted
average number of ordinary shares in issue during the year.
2018 2017
Profit attributable to equity
holders (GBP000) 1,242 1,989
------- -------
Adjusted profit attributable to
equity holders (GBP000) (i) 4,939 1,989
------- -------
Weighted average no. of ordinary
shares in issue ('000) 49,563 41,208
------- -------
Basic adjusted earnings per share
(pence) (i) 10.0 4.8
------- -------
Basic earnings per share (pence) 2.5 4.8
======= =======
The diluted earnings per share has been calculated by dividing
the net profit attributable to equity holders of the Group by the
weighted average number of shares in issue during the year,
adjusted for potentially dilutive shares that are not
anti-dilutive.
2018 2017
'000 '000
Weighted average number of ordinary
shares in issue 49,563 41,208
Adjustment for share options 3,583 3,669
------- -------
Weighted average number of potential
ordinary shares in issue 53,146 44,907
Diluted adjusted earnings per share
(pence) (i) 9.3 4.4
======= =======
Diluted earnings per share (pence) 2.4 4.4
======= =======
(i) Basic adjusted and diluted adjusted earnings per share are
calculated using profit attributable to shareholders, adjusted for
non-recurring transaction costs, exceptional reorganisation costs,
amortisation of acquired intangibles and share-based payment
charges.
4. Dividends
The Directors do not recommend the payment of a dividend (2017:
GBPnil).
5. Acquisitions and financing
On 4 June 2018, the Group acquired the entire issued share
capital of Warwick Holdco Limited, the holding company of the
MeetingZone group. The acquisition from GMT Communication Partners
was on a debt-free and cash-free basis for a total consideration of
GBP61.4 million paid in cash. To fund the acquisition, the group
issued 12,500,000 new Ordinary Shares at a placing price of GBP4.00
each and secured a new GBP17.0 million term loan from the Bank of
Ireland.
The amounts recognised for each class of assets and liabilities
at the acquisition date were as follows:
Fair Value
GBP000
Intangible assets consisting of:
* Customer relationships 31,178
* Brand and trademarks 1,977
Net assets acquired consisting of :
* Property, plant and equipment 1,875
* Trade and other receivables 5,325
* Trade and other payables (4,091)
* Deferred tax liability (5,636)
Net identifiable assets acquired 30,628
Add: goodwill on acquisition 30,950
-----------
Net assets acquired 61,578
===========
In addition, GBP3,004,000 of cash was acquired.
The goodwill is attributable to the workforce acquired and the
value projected to be generated through future new business and the
expected benefits from integrating MeetingZone into the LoopUp
group.
The customer relationship and brand and trademark assets are
being amortised over 15 years, resulting in a charge to the income
statement of GBP1,289,000 (2017: GBPnil) in the year.
The Group incurred legal and professional fees of GBP3.8m in
relation to the acquisition. GBP2.5m of these costs were set
against share premium, GBP1.0m were included in administrative
expenses and GBP0.1m related to finance costs. In addition, GBP0.2m
of arrangement fees for the term loan are being expensed over the
five year life of the facility.
In the year ended 31 December 2017 the trade of Warwick Holdco
Limited and its subsidiaries generated revenues of GBP22.5m and
Adjusted EBITDA of GBP5.0m. The business generated revenues of
GBP13.8m and EBITDA (before exceptional reorganisation costs) of
GBP3.5m in the period from acquisition to 31 December 2018 - these
amounts are included in the consolidated results of the Group.
Total revenue associated with MeetingZone for the year to 31
December 2018 was GBP23.7m, with EBITDA (before exceptional costs)
of GBP5.5m.
If the acquisition had occurred on 1 January 2018, the Group
revenue for the year to 31 December 2018 would have been GBP44.2m,
and Adjusted EBITDA (as defined in the consolidated statement of
comprehensive income) would have been GBP9.7m.
[1] At FY2018 constant currency
[2] 2016 cohort: 77%; 2017 cohort: 71%; 2018 cohort: 79%:
2016-18 cohort: 76%
[3] Earnings before interest, taxation, depreciation and
amortisation, adjusted to exclude non-recurring transaction costs,
exceptional reorganisation costs and share-based payment
charges
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR DDGDXSDDBGCG
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March 21, 2019 03:01 ET (07:01 GMT)
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