IMSG
International Marketing & Sales Group Limited
Audited results for the year ended 31 December 2007
International Marketing & Sales Group Limited ("IMSG"), the emerging markets
focused sales & marketing company, today announces audited results for the year
ended 31 December 2007.
Financial Highlights
-- Revenue up 61% from US$96.5 million to US$155.2 million
-- Organic Revenue up 29% to US$125.0 million
-- Gross profit up 52% from US$33.8 million to US$51.2 million
-- Profit before tax up 22% from US$7.8 million to US$9.5 million
-- Raised US$31.4 million (�15.8 million before expenses) during 2007, via
an institutional placing of a total of 8.89 million shares in three
tranches (5.34 million on 16 May, 2.15 million on 31 July, 1.4 million
on 2 August) to fund the Group's acquisition strategy
-- Cash of US$8.3 million as at 31 December 2007 (US$11.9 million as at 31
December 2006)
Operating Highlights
-- At 31 December 2007, the Group operated across 14 countries, the
majority of which are situated in the emerging markets. In 2007 the
Group expanded into the following countries: Greece, Romania, Bulgaria,
UK, and Armenia.
-- In 2007 the Group successfully completed eight acquisitions:
-- Tarantula, an integrated communications agency in Russia
-- MAPP & Promer, a sales & marketing agency in Turkey
-- Pragma Consulting, a UK based research and strategic marketing
consultancy
-- V+O, a business and marketing communication consultancy with offices in
Athens, Sofia and Bucharest
-- Friends Group, a Romanian full service communications agency,
-- Zap Medya, an online marketing and advertising services agency based in
Turkey
-- Shared Value, an integrated financial public relations and investor
relations consultancy
-- BIP Grup, a Bucharest-based trade marketing agency
-- In 2007 the revenues of the Group in its core Russian & CIS market were
up 49% to US$90.1 million, which is substantially higher than average
growth rates in the domestic advertising market.
-- In 2007 the Group's continued expansion into other markets reflected in
the % revenue split on a geographic basis in 2007 (2006): Russia 58%
(63%), Turkey 21% (24%), Hungary 9% (7%), India 3% (3%), Romania 3%
(0%), Greece 3% (0%), UK 2% (0%) and Other 1% (3%).
-- Emerging markets continued to develop rapidly in 2007. For example, the
GDP of Russia increased by 30%; India by 14%; Turkey by 7% and Hungary
by 6% (in nominal dollar terms).(1)
-- The holding company of the Group was changed under a Scheme of
Arrangement from Ireland to Jersey. The Scheme comprised a
share-for-share offer, whereby existing IMSG shares were cancelled and
replaced by IMSG Jersey Shares on a one-for-one basis. The Scheme became
effective upon the filing of the Court Order sanctioning the Scheme on
17 July 2007 and the Shares of IMSG Jersey were admitted to trading on
AIM on 19 July 2007.
Post balance sheet events:
-- In January 2008, IMSG announced its offer for the entire issued share
capital of ONE Media, one of the leading direct marketing companies in
the Nordic Region. At the end of the acceptance period for the Offer on
6 May 2008, IMSG had received acceptances in respect of 95.33% of the
issued share capital of ONE Media. A total of 5,656,777 ordinary shares
in IMSG have been issued in respect of accepting shareholders in ONE
Media. ONE Media's expertise in the field of direct marketing, which is
the fastest growing form of marketing communications, complements IMSG's
existing offering and IMSG is now very well positioned to meet the
demand among international and local businesses for direct marketing
services in emerging markets. IMSG is now a full service provider able
to offer multi channel marketing services to its customer base across a
wider geographic footprint stretching from the Nordic Region across
Eastern Europe into Russia and Turkey.
-- On 2 May 2008, IMSG completed the acquisition of Elektrik IIetisim
Organizasyon Hizmetleri Limited Sirketi ('Elektrik'), the Turkish events
organising agency established in 2006. In addition to event
planning/organising, Elektrik's core business is through the line
marketing & communication services. Amongst its clients are some
prestigious Turkish banks and multinational companies such as Yapi Kredi
Bank, Tekstilbank, Shell, Aviva Insurance Company and Eli Lilly. The
acquisition will provide IMSG with an expanded presence in the
fast-growing Turkish market and the agency will be integrated under
IMSG's umbrella of event businesses branded One2Remember.
-- The new financial year has opened with the business continuing to grow
in line with management expectations.
-- A two-tiered management group structure has been put in place with a
Supervisory Board and an Operational Board. The latter comprises key
service area leaders to focus on the development and management of the
business on an operational basis.
-- The Supervisory Board will continue to drive strategy and corporate
governance and has been enhanced by the recent appointment of two new
non-executives: Thomas Heldge Rud Gad and Simon James Crookenden Dunlop,
who were appointed with effect from 18 April, 2008.
-- Mr Gad, aged 57, is founder and director of Stockholm based
Brandflight AB, a brand strategy consultancy and a branding advisory
company with offices in Stockholm, London, Moscow, Hamburg, Paris
and Johannesburg. He has worked on brand development, communication
and advertising for some of the best known companies in the world,
including Nokia (where he co-created the famous slogan "Connecting
People"), SAS Scandinavian Airlines, Procter & Gamble, Compaq,
Microsoft, Telia, SEB, and Nordea. Thomas is the author of the
bestselling '4-D Branding' published in 2001 and the co-author of
'Managing Brand Me', published in 2002. As well as writing, Thomas
gives lectures on branding across the world and he is the founder of
Medinge Group, an international think-tank on branding. Thomas was
Creative Director at Grey Advertising for 17 years.
-- Mr Dunlop, aged 40, is a founding partner and director of EmCo
Capital Partners Ltd, a private equity investment group based in
Moscow and focused on the Russian consumer market. Simon is also
Chairman of Russian Cinema Holdings Ltd., one of Russia's leading
regional operators of multiplex cinemas and bowling alleys and
co-founder and Chairman of Greenleaf Ingredients OOO in Russia.
Previously, until 2006, Simon was Director of Strategic Planning of
Bridgetown Snackfoods OOO, one of the leading manufacturers of
Snackfoods in the CIS, which he co-founded in 1999. Simon's past
appointments also include Head of Sales, distribution and logistics
for Philip Morris Russia, where he developed and implemented a sales
and distribution strategy for the full portfolio of PM products in
Russia.
-- Following the appointment of Mr Gad and Mr Dunlop, Mr Nicholas Martin
Rossiter, who had been a non-executive director since 2002, tendered his
resignation due to his other business commitments.
-- The Group has also put in place a new streamlined management system in
Russia, with Mark Huntley as chairman of the Russian board of 6
directors resident in Russia. Mark has over 20 years of agency
management experience which began in one of the UK's largest public
agencies, KLP. He ran many multi-million pound, integrated, through the
line marketing campaigns for household names such as Andrex and Cadbury,
before founding Tarantula International in 1998. Tarantula was an
independent, emerging markets focused network, operating in 7 countries
including China, Thailand and Russia, employing more than 180 people in
14 offices and with revenues exceeding US$40m. IMSG's acquisition of
Tarantula Russia brought Mark into Group management in 2007. Tarantula
UK was acquired by WPP in 2003 and Tarantula China by Omnicom in 2004.
The other directors of the Russian board are: Adrian Stewart, Natalya
Petlyakova-Frahm, Polina Horton, Victor Shikin and Yaroslav Plink.
-- The continued expansion of the Group has resulted in the recognition
that additional central management resource will help ensure that the
growth and focus of the business are maintained. On 1 April 2008 Nick
Harmer was hired as Business Systems Director. Mr Harmer has previous
relevant industry experience having been with WPP, Cordiant
Communications and Saatchi and Saatchi where he held the position of
Worldwide Financial Systems Director and Head of Audit.
(1) Source: GroupM
Commenting on the results, Greg Thain, Chairman of the Group said:
"2007 was an exciting year for the Group and we are pleased to report a
satisfactory outcome at the full year. The focus in 2007 was on delivering on
operational objectives and the continued expansion of the Group's service
offering across the emerging markets.
"Trading across the Group is currently good and we are encouraged by the
continued progress we are making in winning new work and expanding current work
across the Group. We are pleased to report that the Group's development
continues to outperform that of the markets in which it operates. This
reinforces our confidence in the Group's long-term strategy to develop IMSG,
through a combination of organic and acquisitive growth, to be the leading
marketing services group focused on emerging market countries.
"While we continue to negotiate further acquisitions, part of the focus for the
next two years will be on growing organically and enhancing the Company's
service offerings and expertise across emerging markets."
Chairman's statement
Results
2007 was a year of strong growth for the Group and I am pleased to report a good
outcome at the full year. The highlights of 2007 were a 61% growth in revenue to
US$155.2 million resulting in 22% growth in pre-tax profit to US$9.5 million.
Adjusting pre-tax profit for the following exceptional charges; the holding
company reorganisation to Jersey from Ireland of US$0.3 million and the office
move in Russia of US$0.2 million, would result in a pre-tax profit of US$10.0
million providing an effective growth of 28%.
During the year a further 8 businesses were acquired: Tarantula, MAPP & Promer,
Pragma, Friends, V&O, ZAP, Shared Value and BIP.
IMSG remains one of the largest and fastest growing marketing services holding
companies worldwide and, we believe, the only such company with a focus on the
emerging markets.
At year-end the group operated across 14 countries, the majority of which are
situated in the emerging markets which continue to expand and grow ahead of most
economic forecasts. There is no doubt in our minds that the emerging markets
remain the correct focus for the Group.
Organic Business
In 2007 the revenues of the Group in its core Russian & CIS market were up 49%
to US$90.1 million with organic growth of 40%. The Group's total organic growth
in 2007 of 29% remains substantially higher than that of the domestic
advertising market.
By the end of 2007, the Group had developed to cover 5 main sectors of activity
which can be defined as follows;
* Outsourced Sales & Trade Marketing
* Events & Consumer Marketing
* Multi Channel Marketing
* Retail Marketing & Consultancy
* PR & IR
It is our belief that there is significant demand in emerging markets for all 5
of these areas and that IMSG should be able to achieve significant growth in
each over the next few years.
Each of the business areas is managed by one or more experienced directors, who
form the core of an Operational Board that consists of main Business Units
Directors, who manage the day-to-day operations of IMSG.
Sales and marketing services is one of the fastest growing media markets in
Russia. In 2007 the expenditure on "below-the-line" advertising by Russian
companies was up by 29% from 2006.
Acquisitions
On Admission to trading on AIM in December 2005, we set out our strategy for
growth, to be achieved both organically and by acquisition. In line with this
strategy I am pleased to be able to report the completion of eight further
acquisitions in 2007, which are the building blocks for the further development
of the Group.
The 2007 acquisitions were;
Tarantula: a Moscow based consumer marketing agency working for major
multinational clients.
MAPP & Promer: a trade marketing agency working for clients such as Coca-Cola
and Siemens.
Pragma: a London based leading research and strategic marketing consultancy
specialising in enhancing revenue for those involved in retail and
customer-facing businesses. Pragma works globally for clients such as Ikea,
Starbucks, Autogril, Hamleys and many more.
Friends: a creative agency based in Bucharest and working for clients including
Canon, Unilever, Siemens and a number of local producers.
V+O: a PR and corporate communications business based in Athens and operating
across SE Europe for clients including Google, HP, Hilton, Philip Morris,
Coca-Cola, Pizza Hut and Emirates.
ZAP Medya: an Istanbul based online marketing and advertising services agency.
Among Zap's clients are the major local and international media planning
companies and brands.
Shared Value: an integrated financial public relations and investor relations
consultancy, with a well established portfolio of international corporate client
relationships. Based in London, Shared Value has built a reputation as a
Northern European and emerging markets specialist, with a particular focus on
Scandinavia, Russia, the CIS, and Central and Eastern Europe.
BIP: a Bucharest based trade marketing agency servicing a large number of both
local and multinational brands.
Jersey
The holding company of the Group was changed under a Scheme of Arrangement from
Ireland to Jersey. The Scheme comprised a share-for-share offer, whereby
existing IMSG shares were cancelled and replaced by IMSG Jersey Shares on a
one-for-one basis. The Scheme became effective upon the filing of the Court
Order sanctioning the Scheme on 17 July 2007 and the Shares of IMSG Jersey were
admitted to trading on AIM on 19 July 2007.
AIM Fundraising
In order to fund the organic and acquisitive expansion of the Group, IMSG
undertook a secondary placing with a range of institutional investors at 178
pence per share to raise a total of �15.8 million (before expenses). The
8,890,000 shares were admitted to trading on AIM in three tranches (5 340 000 on
16 May 2007; 2 150 000 on 31 July 2007 and 1 400 000 on 2 August 2007).
Employees
The acquisitions have provided a pool of senior management with the attributes
that are helping to drive the business. This management group is forming an
important pillar of the Operational Board that is driving the service area focus
of the business.
At 31 December 2007 IMSG employed 1 811 people (December 2006: 867).
Outlook
The new financial year has opened well in the first quarter. However, the
downturn to the world economic situation and the likely recession in the USA
gives some cause for concern about an overall slowdown in marketing & sales
activity worldwide. The majority of our customers are international groups who,
however well they are trading locally in the emerging markets, may still be
subject to cuts made across the board. This, together with the recent management
changes within our Russian business, which will inevitably focus the attention
of our competitors, means that the Board, whilst optimistic about the outcome
for this year, are so with slightly more caution. As with all situations in
emerging markets, the market environment is subject to rapid change, creating
the opportunity for the high rates of growth which the Group has experienced to
date. It is for this reason that the Board remains fully committed to its
strategy of growth within emerging markets, despite this short term market
uncertainty.
Having aired a degree of caution, we currently have a significant new business
pipeline and continue to win new work, with visibility to the year end
continuing to improve as we grow. However, with the loss of some business in
Russia following two senior management departures in the first quarter, it means
that if we are to achieve our internal business targets in Russia, we need to
convert these new business opportunities.
The Russian economy continues to be robust as two recent research reports
published in April by Interactive Research Group ("IRG") and the Economist
Intelligent Unit ("EIU") testify. The EIU's report, entitled 'Russia really is
the Best Market in the World', argues that Russia is the best placed market in
the world to survive the global credit crunch due to its tremendous reserves
which include a budget surplus running at 3.5%, a Stabilisation Fund of
US$160bn, Central bank reserves of US$490bn and total debt at a mere 11% of GDP.
The report states that Russia has the potential to be one of the world's most
powerful economies in the next 7-20 years and that GDP, which, per capita, was
the same as that for Croatia in 2007, has averaged annual growth of 6.6% this
decade, one of the fastest in CEE, with growth of about 6% expected over the
next five years. The drivers of this growth are the boom in personal consumption
fuelled by real wage growth and credit expansion, the surge in fixed investment
and the strong value of exports due to the high oil price. The IRG report argues
that Russia and specifically Moscow during this year will become the largest
consumer markets in Europe.
The strength of the Russian economy will continue to underpin the growth of IMSG
but we will continue to monitor the economic development across all our markets
and Romania, Hungary and Turkey in particular could be slower in 2008.
We continue to negotiate further acquisitions in the emerging markets: our
pipeline is in excess of US$100m, but of course our ability to complete
acquisitions is dependent upon the Group's ability to raise debt or equity
finance in difficult markets. One very positive sign has been our recent
agreement for an aggregated facility of US$15m with Fortis Bank.
In closing I would like to thank our Directors, Managers and Staff for the
performance over the year. I would also like to welcome all the new members to
the team from across the emerging markets.
Greg Thain
Executive Chairman
Consolidated Income Statement
Year to Year to
31 31
December December
In thousands of US Dollars 2007 2006
-------------------------------------------------------------------------------------------------------
Continuing operations:
-----------------------------------------------------
Revenue 155 235 96 506
-----------------------------------------------------
Cost of sales (104 030) (62 715)
-------------------------------------------------------------------------------------------------------
Gross profit 51 205 33 791
-----------------------------------------------------
-----------------------------------------------------
Other operating income 789 1 002
-----------------------------------------------------
General and administrative expenses (42 139) (27 426)
-----------------------------------------------------
Other operating expenses (147) (50)
-----------------------------------------------------
-------------------------------------------------------------------------------------------------------
Operating profit 9 708 7 317
-----------------------------------------------------
-----------------------------------------------------
Finance income 985 721
-----------------------------------------------------
Finance costs (1 164) (222)
-------------------------------------------------------------------------------------------------------
Profit before income tax 9 529 7 816
-----------------------------------------------------
Income tax expense (2 553) (1 768)
-----------------------------------------------------
Profit for the year from continuing operations 6 976 6 048
-------------------------------------------------------------------------------------------------------
-----------------------------------------------------
Profit is attributable to:
-----------------------------------------------------
Equity holders of the Company 5 611 4 965
-----------------------------------------------------
Minority interests 1 365 1 083
-----------------------------------------------------
-------------------------------------------------------------------------------------------------------
Profit for the year 6 976 6 048
-------------------------------------------------------------------------------------------------------
Earnings per share:
-------------------------------------------------------------------------------------------------------
Basic 7.00 pence 7.93 pence
-------------------------------------------------------------------------------------------------------
Diluted 6.88 pence 7.73 pence
-------------------------------------------------------------------------------------------------------
Consolidated Balance Sheet
31 December 2007 31 December 2006
In thousands of US Dollars
------------------------------------------------------------------------------------------------
Assets
Non-current assets
------------------------------------------------------------------------------------------------
Property, plant and equipment 4 679 2 911
--------------------------------------------------
Investment property 10 -
--------------------------------------------------
Goodwill 76 515 23 828
--------------------------------------------------
Other intangible assets 1 978 1 059
--------------------------------------------------
Deferred income tax asset 1 255 304
--------------------------------------------------
Investments 101 -
--------------------------------------------------
Other non-current assets 902 472
------------------------------------------------------------------------------------------------
Total non-current assets 85 440 28 574
------------------------------------------------------------------------------------------------
Current assets
--------------------------------------------------
Inventories 429 441
--------------------------------------------------
Trade and other receivables 60 703 35 666
--------------------------------------------------
Current income tax prepayments 1 735 235
--------------------------------------------------
Investments 1 329 912
--------------------------------------------------
Available-for-sale investments - 215
--------------------------------------------------
Cash and cash equivalents 8 313 11 918
------------------------------------------------------------------------------------------------
Total current assets 72 509 49 387
------------------------------------------------------------------------------------------------
Total assets 157 949 77 961
------------------------------------------------------------------------------------------------
Equity
--------------------------------------------------
Share capital 534 408
--------------------------------------------------
Other reserves 65 346 33 431
--------------------------------------------------
Retained earnings 14 045 9 076
------------------------------------------------------------------------------------------------
Equity attributable to the Company's equity
holders 79 925 42 915
------------------------------------------------------------------------------------------------
Minority interests 3 298 2 371
------------------------------------------------------------------------------------------------
Total equity 83 223 45 286
------------------------------------------------------------------------------------------------
Liabilities
--------------------------------------------------
Non-current liabilities
--------------------------------------------------
Borrowings 180 521
--------------------------------------------------
Deferred income tax liability 1 062 796
--------------------------------------------------
Trade and other payables 20 015 1 882
--------------------------------------------------
Provision for employee benefits 341 172
------------------------------------------------------------------------------------------------
Total non-current liabilities 21 598 3 371
------------------------------------------------------------------------------------------------
Current liabilities
--------------------------------------------------
Borrowings 981 1 073
--------------------------------------------------
Trade and other payables 45 854 24 539
--------------------------------------------------
Current income tax payable 3 115 1 194
--------------------------------------------------
Other taxes payable 3 042 2 498
--------------------------------------------------
Provisions 136 -
------------------------------------------------------------------------------------------------
Total current liabilities 53 128 29 304
------------------------------------------------------------------------------------------------
Total liabilities 74 726 32 675
------------------------------------------------------------------------------------------------
Total liabilities and equity 157 949 77 961
------------------------------------------------------------------------------------------------
Company Balance Sheet
31 December 2007 31 December 2006
In thousands of US Dollars
------------------------------------------------------------------------------------------------
Assets
Non-current assets
------------------------------------------------------------------------------------------------
Investments 47 328 -
------------------------------------------------------------------------------------------------
Total non-current assets 47 328 -
------------------------------------------------------------------------------------------------
Current assets
--------------------------------------------------
Trade and other receivables 3 279 -
------------------------------------------------------------------------------------------------
Total current assets 3 279 -
------------------------------------------------------------------------------------------------
Total assets 50 607 -
------------------------------------------------------------------------------------------------
Equity
--------------------------------------------------
Share capital 534 -
--------------------------------------------------
Other reserves 13 383 -
--------------------------------------------------
Retained earnings 10 -
------------------------------------------------------------------------------------------------
Equity attributable to the Company's equity
holders 13 927 -
------------------------------------------------------------------------------------------------
Total equity 13 927 -
------------------------------------------------------------------------------------------------
Liabilities
--------------------------------------------------
Non-current liabilities
--------------------------------------------------
Trade and other payables 20 015 -
--------------------------------------------------
Total non-current liabilities 20 015 -
------------------------------------------------------------------------------------------------
Current liabilities -
--------------------------------------------------
Trade and other payables 16 665 -
------------------------------------------------------------------------------------------------
Total current liabilities 16 665 -
------------------------------------------------------------------------------------------------
Total liabilities 36 680 -
------------------------------------------------------------------------------------------------
Total liabilities and equity 50 607 -
------------------------------------------------------------------------------------------------
Consolidated Statement of Changes in Equity
Attributable to equity holders of the
Company
------------------------------------------Minority Total
In thousands of US Dollars Share Other Retained Total interests Equity
capital reserves earnings
--------------------------------------------------------------------------
Balance at 31 December 2005 361 16 412 4 344 21 117 7 21 124
Profit for the year - - 4 965 4 965 1 083 6 048
Shares issued 49 17 709 - 17 758 - 17 758
Share based expenses - - (84) (84) - (84)
Share options exercised 4 313 (134) 183 - 183
Own shares (6) (1 003) (15) (1 024) - (1 024)
Acquisitions in the year - - - - 1 780 1 780
Dividends - - - - (499) (499)
-------------------------------------------------------------------------------------------
Balance at 31 December 2006 408 33 431 9 076 42 915 2 371 45 286
-------------------------------------------------------------------------------------------
Currency Translation - 166 - 166 308 474
-------------------------------------------------------------------------------------------
Net Income recognised directly
in equity - 166 - 166 308 474
Profit for the year - - 5 611 5 611 1 365 6 976
-------------------------------------------------------------------------------------------
Total recognised income for 2007 - 166 5 611 5 777 1 673 7 450
-------------------------------------------------------------------------------------------
Shares issued 125 31 587 - 31 712 - 31 712
Share based payments - 80 - 80 - 80
Share options exercised 4 190 - 194 - 194
Own shares (3) (664) (10) (677) - (677)
Contribution from minority - 556 - 556 - 556
Acquisition of minority interest - - - - 623 623
Dividends - - (632) (632) (1 369) (2 001)
-------------------------------------------------------------------------------------------
Balance at 31 December 2007 534 65 346 14 045 79 925 3 298 83 223
-------------------------------------------------------------------------------------------
Company Statement of Changes in Equity
Attributable to equity holders of the
Company Minority Total
-----------------------------------------------------------------interests Equity
In thousands of US Dollars Share Other Retained Total
capital reservesearnings
------------------------------------------------------------------------------------
Balance at 31 December
2006 - - - - - -
------------------------------------------------------------------------------------
Profit for the year - - 642 642 - 642
------------------------------------------------------------------------------------
Total recognised income
for 2007 - - 642 642 - 642
------------------------------------------------------------------------------------
Shares issued 534 13 339 - 13 873 - 13 873
------------------------------------------------------------------------------------
Share options expense - 44 - 44 - 44
------------------------------------------------------------------------------------
Dividends - - (632) (632) - (632)
------------------------------------------------------------------------------------
Balance at 31 December
2007 534 13 383 10 13 927 - 13 927
------------------------------------------------------------------------------------
Consolidated Statement of Cash Flows
Year ended 31 Year ended 31
In thousands of US Dollars December 2007 December 2006
-------------------------------------------------------------------------------------
Cash flows from operating activities
---------------------------------------
Profit for the year 6 976 6 048
---------------------------------------
Depreciation and impairment of property, plant
and equipment 1 680 1 092
---------------------------------------
Amortisation and impairment of other
intangible assets 382 374
---------------------------------------
Impairment of trade and other receivables (26) 177
---------------------------------------
Losses / (Gains) on disposals of property,
plant and equipment 234 (231)
---------------------------------------
Revaluation of property, plant and equipment (16) (129)
---------------------------------------
Income tax expense 2 553 1 768
---------------------------------------
Interest income (985) (721)
---------------------------------------
Interest expense 433 223
---------------------------------------
Share option revaluation 80 (99)
---------------------------------------
Gains on trading investments (411) (643)
---------------------------------------
Provision for retirement obligations 77 47
---------------------------------------
Discounted cost of deferred consideration 727 -
---------------------------------------
Foreign exchange translation and monetary
losses 143 -
-------------------------------------------------------------------------------------
Operating cash flows before working capital
changes 11 847 7 906
-------------------------------------------------------------------------------------
Increase in trade and other receivables (13 082) (20 267)
---------------------------------------
Decrease / (Increase) in inventories 757 (298)
---------------------------------------
(Decrease) / Increase in trade and other
payables (1 582) 11 741
---------------------------------------
(Decrease) / Increase in taxes payable (340) 975
-------------------------------------------------------------------------------------
Cash (used in) / generated from operations (2 400) 57
---------------------------------------
Income taxes paid (2 571) (1 112)
---------------------------------------
Interest received 985 721
---------------------------------------
Interest paid (433) (223)
-------------------------------------------------------------------------------------
Net cash used in operating activities (4 419) (557)
-------------------------------------------------------------------------------------
Cash flows from investing activities
---------------------------------------
Purchase of property, plant and equipment (1 934) (712)
---------------------------------------
Proceeds from sale of property, plant and
equipment 8 20
---------------------------------------
Proceeds from sale of investments and
investment property 215 1 297
---------------------------------------
Acquisition of subsidiaries, net of cash
acquired (24 725) (14 263)
---------------------------------------
Acquisition of intangible assets (1 074) (661)
-------------------------------------------------------------------------------------
Net cash used in investing activities (27 510) (14 319)
-------------------------------------------------------------------------------------
Cash flows from financing activities
---------------------------------------
Proceeds from borrowings 7 501 13 612
---------------------------------------
Repayment of borrowings (9 123) (13 168)
---------------------------------------
Issue of ordinary shares 31 357 14 382
---------------------------------------
Share options exercised 194 183
---------------------------------------
Witholding tax on dividends paid (117) -
---------------------------------------
Purchase of treasury shares (677) -
---------------------------------------
Contribution from minority 556 -
---------------------------------------
Dividends paid to the Company's shareholders (632) (1)
---------------------------------------
Dividends paid to minority interests (1 508) (460)
-------------------------------------------------------------------------------------
Net cash from financing activities 27 551 14 548
-------------------------------------------------------------------------------------
Net decrease in cash and cash equivalents (4 378) (328)
-------------------------------------------------------------------------------------
Translation differences 773 -
-------------------------------------------------------------------------------------
Cash and cash equivalents at the beginning of
the year 11 918 12 246
-------------------------------------------------------------------------------------
Cash and cash equivalents at the end of the
year 8 313 11 918
-------------------------------------------------------------------------------------
Company Statement of Cash Flows
Year ended 31 Year ended 31
December 2007 December 2006
In thousands of US Dollars
------------------------------------------------------------------------------------
Cash flows from operating activities
--------------------------------------
Profit for the year before minority interests 642 -
--------------------------------------
Adjustments for: - -
--------------------------------------
Share option revaluation 44 -
------------------------------------------------------------------------------------
Net cash from operating activities 686 -
------------------------------------------------------------------------------------
Cash flows from investing activities
Acquisition of subsidiaries (16 209) -
Advances to subsidiaries (3 279) -
------------------------------------------------------------------------------------
Net cash used in investing activities (19 488) -
------------------------------------------------------------------------------------
Cash flows from financing activities
--------------------------------------
Issue of ordinary shares 13 873 -
--------------------------------------
Advances from subsidiaries 5 561 -
--------------------------------------
Dividends paid (632) -
------------------------------------------------------------------------------------
Net cash from financing activities 18 802 -
------------------------------------------------------------------------------------
Net (decrease)/ increase in cash and cash
equivalents - -
------------------------------------------------------------------------------------
Cash and cash equivalents at the beginning of
the year - -
------------------------------------------------------------------------------------
Cash and cash equivalents at the end of the
year - -
------------------------------------------------------------------------------------
Earnings per share
The calculation of earnings per share is based on the following profits and
number of shares:
In thousands of US Dollars As at 31 December As at 31 December
2007 2006
Profit from continuing operations
attributable to equity holders of the
Company 5 611 4 965
Weighted average number of ordinary shares
in issue (thousands) 40 147 33 891
Weighted average number of share options
(thousands) 705 861
Basic earnings per share for profit from
continuing operations 7.00 pence 7.93 pence
Diluted earnings per share for profit from
continuing operations 6.88 pence 7.73 pence
Publication of non-statutory accounts and basis of preparation
The audited results for the year ended 31 December 2007 are prepared in
accordance with International Financial Reporting Standards ("IFRS"). Amounts
are reported in thousand US dollars.
The financial information set out above does not constitute the Company's
statutory accounts for the year ended 31 December 2007, but is derived from
those accounts. The comparative figures for the financial year ended 31 December
2006 have been derived from the statutory accounts of International Marketing
and Sales Group Plc.
The report of the auditors for the year ended 31 December 2007 is unqualified
and does not contain statements in accordance with the Companies (Jersey) Law
1991. The statutory financial statements for the year ended 31 December 2007
will be filed with the Jersey Companies Registration Office following the
Company's Annual General Meeting.
This financial information was approved for release by the board of IMSG on 13
June 2008.
The 2007 accounts will be circulated to all shareholders. Further copies can be
obtained from the registered office of the Company at 47 Esplanade, St Helier,
Jersey. They may also be accessed via the investor section of the Company's
website at www.imsg.co.uk.
Enquiries
Terry Livingstone Tel: +44 (0) 20 773 56788
Johanna Fagrell Kohler Tel: +46 734 100 550
International Marketing & Sales Group Limited
Emily Bruning/Andrew Best
Shared Value Limited Tel: +44 (0)20 7321 5010
Mark Williams / Andrew Chubb
Canaccord Adams Limited Tel: +44 (0)20 7050 6500
Notes to Editors
-- IMSG was founded in 1996 and the Group was admitted to trading on AIM on
6 December 2005.
-- The Group's clients include multinational and first tier local companies
operating in FMCG, telecommunications, retail trade, banking and
finance, automotive, consumer electronics and pharmaceutical industries.
-- IMSG currently has over 40 offices predominantly in emerging markets:
Moscow, Saint Petersburg, Yekaterinburg, Kazan, Nizhniy Novgorod,
Novosibirsk, Rostov-on-Don, Samara, Krasnodar (Russia), Kiev (Ukraine),
Almaty, Astana (Kazakhstan), Dushanbe (Tajikistan), Tashkent
(Uzbekistan), Erevan (Armenia), Belgrade (Serbia) Istanbul (Turkey), New
Delhi, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad (India), Kuala
Lumpur (Malaysia), Dubai (UAE), Doha (Qatar), Budapest (Hungary),
Bucharest (Romania), Athens (Greece), Sofia (Bulgaria) London (UK),
Stockholm, Malmo (Sweden) and Barcelona (Spain).
Further information about the Group is available on its website at:
http://www.imsg.co.uk
International Marketing & Sales (LSE:IMSG)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
International Marketing & Sales (LSE:IMSG)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024
