Transcript www.thomson-intermedia.com

Company Presentation
July 2008
©copyright billetts 2008
Our new management team
Michael Greenlees, CEO
Nick Manning, COO
Paul Gladman, CIO
Andy Beach, CFO
©copyright Thomson Intermedia 2008
2
Overview
1. Overall performance in line with revised expectations
2. Total revenue for the year to 30 April 2008 up 8% to £17.2 million
3. Underlying operating profit was £2.0 million, down 10% on the
previous year (+27% discounting one-off ‘development’ revenue)
4. Cash generative - net debt fell from £3.0 to £2.1 million
5. Focused on:
•
Introducing greater financial discipline,
•
Eliminating our dependency on ‘one-off’ projects, and
•
Returning to our core strengths by rebuilding a strong
recurring revenue stream
©copyright Thomson Intermedia 2008
3
Financial Highlights
Andrew Beach CFO
©copyright Thomson Intermedia 2008
4
Revenue
All in £k
Apr-08
Apr-07
YoY
12m
12m
%
Technology & Data
5,910
5,716
3%
Consulting Services
11,310
9,604
18%
Core
17,220
15,320
12%
-
661
17,220
15,981
Development
Total
©copyright Thomson Intermedia 2008
5
(100%)
8%
Gross Margin
All in £k
Apr-08
Apr-07
YoY
12m
12m
%
Gross Profit
Technology & Data
3,418
3,483
(2%)
Consulting Services
5,541
4,811
15%
-
661
8,959
8,955
Technology Services
58%
61%
Consulting
49%
50%
-
100%
52%
56%
Development
Total
Gross Margin
Development
Total
©copyright Thomson Intermedia 2008
6
(100%)
0%
Underlying Operating Profit
All in £k
Technology & Data
Apr-08
Apr-07
YoY
12m
12m
%
145
220
Consulting Services
1,993
1,463
36%
Central
(121)
(92)
32%
Core
2,017
1,591
27%
-
642
(100%)
2,017
2,233
(10%)
(1,835)
(1,305)
(657)
(1,398)
179%
(7%)
(1,123)
178
Development
Underlying Operating Profit
Highlighted Items
Non-cash*
Cash**
Reported Operating (Loss)/Profit
(34%)
(731%)
* includes write down of development assets (£1,457k)
**includes property (£548k) and management restructuring costs (£521k)
©copyright Thomson Intermedia 2008
7
Profit Before Tax & EPS
Underlying Operating Profit
Apr-08
Apr-07
YoY
12m
12m
%
2,017
2,233
Highlighted Items
(3,140)
(2,055)
Reported Operating (Loss)/Profit
(1,123)
178
(731%)
(250)
(353)
(1,372)
(175)
(29%)
#DIV/0!
683%
4.34
5.00
(4.00)
(0.55)
Net Finance Costs
Profit Before Tax
EPS (diluted in pence)
Underlying
Reported
©copyright Thomson Intermedia 2008
8
(10%)
53%
2%
Debt and Debtors
All in £k
Apr-08
Cash
1,687
Gross debt
3,751
Apr-07
2,105
5,057
Net Debt
2,064
2,952
Unutilised Cash Facility
4,100
3,600
65
95
19%
32%
Debtor days
% of debts >60 days old
©copyright Thomson Intermedia 2008
9
How things will look going forward…
All in £k
Apr-08
12m
Segment
Audience
Billetts
Reputation monitoring
Publisher solutions
Advertisers
PR professionals
Publishers
Total Revenue
©copyright Thomson Intermedia 2008
16,235
391
594
17,220
10
Strategic Review
Michael Greenlees CEO
©copyright Thomson Intermedia 2008
11
What do we do?
•
Media Monitoring:
–
Monitors advertising spend and appearance across all media
–
Delivers essential data and insights direct to the desktop via a powerful technology
platform refreshed in near real-time
•
•
Media Consulting:
–
Measures media value and
–
Evaluates media buys and sets performance benchmarks for 65% of UK advertisers
Marketing Sciences:
–
Measures marketing effectiveness by establishing relationships between activity and
market effect
–
Measures return on marketing investment - from trade promotional investment to media
spend
•
Reputation Monitoring:
–
•
Provides editorial services to PR professionals
Publisher Services:
–
Provides electronic vouching to the publisher community
©copyright Thomson Intermedia 2008
12
Sources of revenue 2007/8
89% recurring revenues
98% group renewal rate
54%
10%
Media Monitoring
4%
2%
Media Consulting
Marketing Sciences
e-publisher
NewsLive
30%
©copyright Thomson Intermedia 2008
13
Strategic Review
We have reviewed every aspect of our business:
• Management structure: strengthen our depth of senior talent, build a culture of accountability
• Human Resources practices: better motivate, incentivise, reward and retain, our people.
• Systems and processes: improve management practices and ensure clarity of collective and individual responsibility.
• Property portfolio: improve cross-company operations and working conditions
• Financial practices: business planning, ‘real-time’ performance management, treasury efficiency.
• Data capture and quality control: including quality assurance and data integrity
• IT practices, structures and processes: professional project management, generate efficiencies and minimum downtime
• Our ‘go to market’ strategy and branding: build products around clearly identified customer needs
• Sales strategy, structure and pricing: Granular targeting, pipeline management pricing strategy
• International capabilities: identify wider footprint for business expansion
©copyright Thomson Intermedia 2008
14
Strategic Review
We have strengthened our financial procedures by:
•
Aligning budget process to group strategy
•
Creating a bottom-up approach to budget setting
•
Conducting bi-weekly reporting of sales and monthly reporting of results
•
Introducing a Quarterly hard-close in addition to statutory reporting
•
Aligning management KPI’s to budget targets
•
Increasing the focus on cash management
•
Improving the visibility of our cash position
©copyright Thomson Intermedia 2008
15
Strategic Review
…and finally, we have reconfigured our business
to meet the changing demands of the markets:
©copyright Thomson Intermedia 2008
16
Where we are today
How it used to be
Technology and Data
©copyright Thomson Intermedia 2008
Consultancy Services
Ad
monitoring
Media auditing
& consulting
Who’s advertising
and when?
Was my media
buying
delivering value?
17
Market modelling
& econometrics
How do I get value
from my marketing
investment and how
can I improve
effectiveness?
The advertising landscape has never been more complex
©copyright Thomson Intermedia 2008
18
Building a new ‘go-to-market’ strategy
Our new strategy:
•
Upgraded our monitoring product to provide ‘tailored insights’ not just data
•
Combine our various advertiser services into one integrated offering
•
Build a unique proposition which combines the strength of our consulting
business and the power of our database
•
Create a ‘go-to-market’ strategy that resonates with the current market
dynamics
©copyright Thomson Intermedia 2008
19
Step One: Upgrade and re-brand advertising monitoring
©copyright Thomson Intermedia 2008
20
Step Two: combine business units to deliver best practise process
Throughout
Pre-plan
Pre-campaign
Post-campaign
Post-campaign
©copyright Thomson Intermedia 2008
Defines optimal ROI
across channels
‘Pre-flight’ check on
effectiveness, quality and
pricing
‘Post-flight’
check vs. plan,benchmarks
and competition
Updated analysis of ROI
and marketing effectiveness
21
In-depth analysis of competitive
messaging, media use and
market information
Independent analysis and advice for greater
efficiency and performance
©copyright Thomson Intermedia 2008
22
An independent integrated service for a new landscape
• Provides the most relevant, accurate and actionable competitive information
• Delivers independent marketing and media analysis from consolidated
channel data
• Optimizes investment levels and deployment by channel and medium
• Interrogates media investment strategy before commitment
• Encourages transparency and integrates value
• Ensures competitiveness and effectiveness versus objectives and market
norms
• Creates great efficiency in the overall deployment of marketing funds
©copyright Thomson Intermedia 2008
23
Next Steps
√
Advertisers
©copyright Thomson Intermedia 2008
In the coming months we intend to address the
opportunities in our two other important audiences
Public Relations
24
Publishing
Summary and outlook
1. We have improved our financial systems, put in place clear
operating and management processes and developed a clear
strategy for growth
2. Our extensive media data base and monitoring platform opens up
new growth opportunities which we intend to exploit
3. We are well placed to help our clients through a tough period for
the marketing and media industry
We make money by helping our clients use theirs more effectively
©copyright Thomson Intermedia 2008
25
©copyright Thomson Intermedia 2008
26
Appendices
©copyright Thomson Intermedia 2008
27
Highlighted Items
All in £k
Apr-08
Apr-07
12m
12m
Recurring (non-cash)
Share-based expenses
Amortisation of purchased intangible assets
Total
99
369
468
270
387
657
Non-recurring
Writedown of development asset (non-cash)
Property costs
Management restructuring costs
Other
Total
1,457
458
521
236
2,672
218
193
987
1,398
Total Highlighted Items
3,140
2,055
Non-cash
Cash
Total
1,835
1,305
3,140
657
1,398
2,055
©copyright Thomson Intermedia 2008
28
Balance Sheet
All in £k
Non Current Assets
Apr-08
Capitalised Dev't
Other
Apr-07
495
13,111
1,683
12,994
3,052
1,904
797
1,687
7,440
4,165
1,035
620
2,105
7,925
Current Liabilities
Loans & Overdrafts
Provisions
Accruals & Deferred Income
Other
Total
(1,951)
(156)
(4,703)
(2,499)
(9,309)
(2,857)
(59)
(3,995)
(2,132)
(9,043)
Non Current Liabilities
Loans
Provisions
Deferred Tax
Total
(1,800)
(65)
(667)
(2,532)
(2,200)
(159)
(825)
(3,184)
9,205
10,375
Current Assets
Trade Debtors
Accrued Income
Other
Cash
Total
Net Assets
©copyright Thomson Intermedia 2008
29
Management CVs
Michael Higgins
Non-Executive Chairman
Michael joined the board on 1 May 2006. Michael spent the previous 10 years as a Partner at KPMG following 12 years
at Charterhouse Bank, the last 8 as a Director. Michael qualified as a Chartered Accountant with Price Waterhouse.
Michael currently is a Senior Adviser with KPMG and works with a number of private media and technology
companies. In addition to chairing the PLC Board, Michael chairs the Audit Committee.
Michael Greenlees
Chief Executive
Michael was one of the original-founding partners of Gold Greenlees Trott which, from its launch in 1980, grew to
become one of the great names in British advertising. Under Michael’s guidance GGT grew into an international
advertising and marketing group providing services in advertising, sales promotion, direct marketing and media buying
and planning. GGT plc. was listed on the London Stock Exchange in 1986 at which time Michael became Chairman
and Chief Executive Officer, a role he occupied for over ten years until the sale to Omnicom in 1998 when he joined the
Board of Omnicom and served as President & Chief Executive of TBWA Worldwide. In 2001 he was made Executive
Vice-President of Omnicom Inc. Michael also chairs the Remuneration Committee.
Nick Manning
Chief Operating Officer
Nick Manning has spent 27 years in the Media Agency world, principally having co-funded Manning Gottlieb Media
(MGM) in 1990. MGM became one of the most highly respected and fastest growing of Media Specialist agencies
before becoming part of Omnicom in 1997. His most recent position was CEO of OMD's operations in the UK, heading
up £800m of billings and 500 people. Nick also co-founded OPera, the media negotiation arm for OMD and PHD, with
billings of £1bn. Nick has a wealth of operational experience and media insight.
©copyright Thomson Intermedia 2008
30
Management CVs
Paul Gladman
Chief Information Officer
Working with the company from inception and becoming IT Director in 1999, Paul developed the group’s technology
platforms including all data capture and website systems. Now Chief Information Officer with responsibility for software
development, infrastructure, data capture and QA he oversees much of Billetts Media Monitoring operations.
A graduate in Computation from the University of Manchester Institute of Science and Technology Paul Gladman
joined the Wellcome Foundation in 1989 as a systems analyst and programmer. During 1995 and 1997 he provided
systems development services for Mintel International Group Limited in the capacity of Chief Systems Developer
building their then ground breaking CD ROM database offering.
Andrew Beach
Chief Financial Officer
Andrew qualified at PricewaterhouseCoopers, and worked within their Assurance business for 9 years until 2007. For
the last 6 years he specialised in Entertainment and Media clients and headed up the firm's Publishing knowledge
network. He joined Thomson Intermedia as Group Financial Controller in March 2007, and was promoted to Deputy
Finance Director in January 2008, before being promoted again to Finance Director in April 2008. Andrew also acts as
Company Secretary for the Group.
©copyright Thomson Intermedia 2008
31