Preliminary Results.
FINANCIAL HIGHLIGHTS
· Reported profit before tax up 16% to £24.7 million (2010: £21.2 million)
· Reported operating income up 10% (2010: 21%)
· Reported operating profit up 15% to £25.5 million (2010: £22.1 million)
· Operating profit margin3up to 19.5% (2010: 18.3%)
· Earnings per share from continuing operations1 and 3 up 9% to 26.56p (2010: 24.38p)
· Net cash as at 31 December 2011 of £3.3 million (2010: £6.9 million)
· Total dividend of 6.58p per share (2010: 6.05p), an increase of 9%
OPERATIONAL HIGHLIGHTS
• Strong performance from Sports Marketing and Advertising
• Successful realignment of business mix following the end of main American Government contract
• Satisfactory performance of Public Relations Division which now includes a strong healthcare business
• Continued investment and expansion in Sports Marketing
• VCCP named Marketing magazine's "Agency of the Year"
• Fast Track named Marketing magazine's "Sponsorship Agency of the Year"
• Insight and Engagement Division continuing to recover
• Developed digital and social capability organically and through start-ups
• Further international expansion - total of 27 overseas offices in 2011
POST YEAR END HIGHLIGHTS
· First quarter trading so far in line with management expectations
· Discussions continue for the sale of certain parts of the Public Relations Division to relevant management
· Earnings enhancing acquisitions of:
- McKenzie Clark - a sports based graphic and digital design business
- iLUKA - management and activation of major sports based events
- Rough Hill (60%) - youth marketing
- StratAgile (40%) -data analytics based in Singapore
- Succinct (announced on 1st February 2012)
Note: 1. Reported fully diluted earnings per share was 19.8p (2010: 18.4p)
2. Like for Like comparisons are calculated by taking current year actual results (which include acquisitions from the relevant date of completion) compared with prior year actual results, adjusted to include the results of acquisitions for the commensurate period in the prior year.
3. Before taking account of amortisation of acquired intangible assets and impairment of goodwill (£3.3 million, 2010: £3.0 million) and costs relating to acquisitions and restructuring (£3.0 million, 2010: £2.2 million). In the Income Statement this is referred to as Headline Operating Profit.