TIDMDNM
RNS Number : 4705L
Dianomi PLC
13 September 2021
13 September 2021
Dianomi plc
("Dianomi", the "Company" or the "Group")
Interim Results
Dianomi, a leading provider of native digital advertising
services to premium clients in the Financial Services and Business
sectors, is pleased to announce its unaudited interim results for
the six months ending 30 June 2021.
Financial Highlights
-- Revenue increased 34.0% to GBP17.4 million (H1 2020: GBP13.0
million) with growth from both new and existing customers
-- Gross margin increased 0.5% to 28.7% (H1 2020: 28.2%)
-- Adjusted EBITDA* increased 122% to GBP1.7 million (H1 2020: GBP0.8 million)
-- Adjusted EPS** of 2.11 pence per share (H1 2020: 1.67 pence per share)
-- As at 30 June 2021 the Company had no borrowings and cash of
GBP7.9 million (31 December 2020: net cash of GBP3.5 million)
Operating Highlights
-- Completed a successful listing on AIM alongside a
significantly over-subscribed share placing in May
-- Strong demand from both existing and new advertisers,
including several premium global brands from both the Business and
Lifestyle sectors which went 'live' on the platform in H1
-- Continued expansion of the publisher base with the additions
of a market leading luxury publishing house and a British national
newspaper, providing additional premium advertising space to meet
increased demand
-- Launch of new applications and innovations including Podcast
ads and a new self-serve platform for advertisers/ publishers
Outlook
-- New partnership with CNN as the exclusive content
recommendation partner across CNN Business, replacing the incumbent
provider, demonstrates the quality and relevance of Dianomi's ad
monetisation capabilities
-- Structural shift away from third party cookies presents opportunities for Dianomi
-- Strong budgets from advertisers alongside publisher pipeline gives good visibility over H2
* Adjusted EBITDA is calculated as profit after tax before
deducting net finance costs, tax, depreciation, exceptional items
and share based payment charges
** Adjusted to exclude exceptional costs related to the IPO and
share based payments . Share numbers for H1 2020 have been adjusted
to reflect the share reorganisation which took place in May
2021
Rupert Hodson, Chief Executive Officer of Dianomi, said : "I am
very proud to report a strong first six months of trading in 2021
following a successful IPO on AIM in May. Our proposition continues
to grow in appeal amongst our customers who appreciate the
transparency in pricing and the brand protection and relevance our
ad platform delivers. Our publisher base is also expanding driven
by a number of factors, in particular the attraction of working
with our premium client base. Looking ahead, the shift to digital
news is ongoing across multiple applications from mobile to laptop
and we believe we are well placed to continue to gain market share,
as demonstrated by the recent CNN Business win."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
For further information contact:
Dianomi Tel: +44 (0)207 802 5530
Rupert Hodson (Chief Executive Officer)
Charlotte Stranner (Chief Financial Officer)
Panmure Gordon (NOMAD and Broker) Tel: +44 (0)207 886 2500
Emma Earl/ Freddy Crossley, Corporate Finance
Rupert Dearden, Corporate Broking
Novella Communications Tel: +44 (0)203 151 7008
Tim Robertson / Fergus Young
About Dianomi
Dianomi, established in 2003, is a leading provider of native
digital advertising services to premium clients in the Financial
Services and Business sectors. The Group operates from its offices
in London, New York and Sydney. The Group enables premium brands to
deliver native advertisements to a targeted audience on the
desktop, mobile and tablet websites and apps of premium publishers.
It provides over 400 advertisers, including blue chip names such as
Aberdeen Standard Investments, Invesco and Baillie Gifford, with
access to an international audience of 438 million devices per
month through its partnerships with over 300 premium publishers of
business and finance content, including blue chip names such as
Reuters, Bloomberg and WSJ. Ads served are contextually relevant to
the content of the web page on which they appear and mirror the
style of the page, which enhances reader engagement.
http://www.dianom i.com .
Chief Executive's Statement
Introduction
I am delighted to report on a strong first six months of trading
as well as confirm that we have made further progress in the second
half of the year with a new partnership with CNN Business as their
exclusive content recommendation partner. As is widely apparent,
the shift to digital continues apace with digital ad spend in the
U.S., our main market, expected to increase from USD 356 billion in
2020 to USD 460 billion by 2024. Worldwide, digital ad spend is
expected to increase from USD 378 billion in 2020 to USD 646
billion by 2024 ([1]) .
Also adding to our appeal is the structural shift occurring
around protecting consumers' privacy with the likes of iOS and
Chrome phasing out third party cookies and thereby leading
advertisers to seek alternative solutions like ours which is not
reliant on third party cookies.
Our focus is to continue to expand our share of this growth
market, focusing on the premium segments in Business and Finance,
and the newer Lifestyle vertical. Key to our ability to grow is
adding new advertisers and publishers as well as growing our
existing base of both. We believe the business is well placed to
address these opportunities.
Operational Review
Dianomi is focused on serving the premium segment of the
Business and Finance sector with our client base including 7 of the
world's top 10 largest asset management companies, 7 of the top 10
of the largest wealth management firms in the US and half of the
top 10 largest banks in the US. The Company also recently entered
the premium Lifestyle sector which is complementary in its focus on
premium brands and affluent audiences.
During the six months to 30 June 2021, the Company had over 400
active advertisers with an average spend by the top one hundred of
GBP0.14 million compared to GBP0.11 million in the first half of
2020. Of the GBP17.4 million of advertising revenue generated,
there was a high level of repeat revenue with 59% of revenue being
generated by relationships beginning in the past five years and 60%
was generated through direct relationships with advertisers. During
the period, a number of new advertisers within both the established
Finance and Business vertical and the newer premium Lifestyle
vertical have 'gone live' on Dianomi's platform, including several
premium global brands.
Through partnerships with over 250 premium publishers over the
six months to 30 June 2021, the Company accessed an international
audience of, on average, 425 million devices per month. A key focus
is to continue to build on our existing publisher partnerships as
well as forming new ones, thus delivering increased distribution
capabilities to our platform as well as increased scale and reach
to our advertisers. There is substantial scope for increasing
distribution, with publishers tending to increase their
collaboration with Dianomi as they experience the success and
quality of the offering. In the period under review, a market
leading luxury publishing house and a British national newspaper
joined the publisher base and, post period end, we were delighted
to have signed a new partnership with CNN as the exclusive content
recommendation partner across CNN Business.
Mobile and Video are two growth segments for the Company. Mobile
has grown significantly over the last two years, in H1 2021 GBP9.3
million (H1 2020: GBP6.6 million) of all advertising revenue came
from ads served to mobile devices. Growth in mobile income has
benefitted from Dianomi becoming an Apple News sales agent in March
2019 enabling the Company to work directly with Apple News
publishers. Video, while much smaller in revenue terms currently,
is also expected to expand significantly. In H1 2021, video
generated revenue of GBP0.6 million (H1 2020: GBP0.2 million). In
time this is expected to move to more regular patterns of ad spend
with budgets already received for campaigns later in the year.
Dianomi's ad algorithm sits at the heart of the business and is
constantly evolving to match the changes in consumer dynamics and
uses of technology. In 2021, the Company began distributing
in-stream paid podcasts across our publisher partners. This is an
area where we have seen significant interest from advertisers
looking to drive new listeners through to their podcast content.
Our ability to distribute paid podcast onto our partner sites,
where listeners are able to engage with the podcast on-site, is a
first for a native ad platform. Furthermore, we launched a new
self-serve ad platform with several new features requested by our
advertisers; targeting ads by time of day; the ability to create
and manage video ads and several other improvements. Advertisers
can now also adjust bids by device as well as by publisher.
In May 2021 the Company completed a successful listing on the
AIM market of the London Stock Exchange alongside a significantly
over-subscribed placing, raising gross proceeds of GBP5.0 million
for the Company. The new capital provides additional working
capital and is being used to drive additional growth, in
particular, through expanding the North American sales and
marketing team with three new hires having recently joined,
including a senior sales person in the US. Post IPO the GBP1.25
million loan notes in issue to BGF were repaid and the business is
now debt free with cash of GBP7.9 million as at 30 June 2021 (31
December 2020: net cash of GBP3.5 million).
Financial Review
Revenue grew by GBP4.4 million to GBP17.4 million in the six
months to 30 June 2021 (H1 2020: GBP13.0 million) representing an
increase of 34.0%. Gross margin benefited from growth in certain
higher margin publishers increasing from 28.2% to 28.7% and as a
result gross profit increased by 36.5% to GBP5.0 million (H1 2020:
GBP3.7 million).
Adjusted EBITDA([2]) increased 122% to GBP1.7 million (H1 2020:
GBP0.8 million), reflecting the operational leverage within the
business alongside reduced office rental costs and lower than
expected marketing expenditure. As expected, the rate of growth in
Adjusted EBITDA will be lower in the second half of the year, as
new recruits come on board, and office rental costs increase as we
take on additional space.
Share based payments amounted to GBP2.7 million for the period
(H1 2020: GBPnil), the vast majority of which related to the
options which were in existence pre-IPO and which were exercised
upon IPO. Included in the GBP2.7 million was a small charge of
GBP0.06 million relating to the new options granted on IPO as a
result of the share price having increased since IPO.
Exceptional items of GBP0.6 million consisted of costs relating
to the IPO (H1 2020: nil), with a further GBP0.6 million of IPO
related costs, including commission payable on new shares issued,
being set against share premium.
Adjusted Profit before Tax ([3]) of GBP1.6 million was also
delivered at an improved margin of 9.4% compared with 5.5% for the
six-month period ended 30 Jun 2020.
Adjusted basic earnings per share([4]) for the six months to 30
June 2021 increased by 26 % to 2.11 pence (H1 2020: 1.67 pence
([5]) ). Basic loss per share was 7.87 pence (H1 2020: profit per
share of 1.67 pence*).
Net assets as at 30 June 2021 amounted to GBP 8.4 million (31
December 2020: GBP3.3 million). In May 2021, shortly before the
IPO, the Company undertook a share reorganisation whereby the
various classes of shares were redesignated and sub-divided into
ordinary shares of GBP0.002 pence each. At the time of the IPO, the
Company raised gross proceeds of GBP5.0 million by the issue of
1,831,501 new ordinary shares at a price of GBP2.73 each. Further
details on the movements in share capital can be found in Note
8.
Cash generated from operations was GBP0.6 million (H1 2020:
GBP1.7 million). Conversion of EBITDA (adjusted for share based
payments) to operating cash was 57% in the period. The conversion
rate was impacted by the timing of cash receipts with the
significant majority of the debtor balances due as at 30 June 2021
now settled.
The Group's net cash position increased to GBP7.9 million as at
30 June 2021 (31 December 2020: GBP3.5 million) as a result of the
net proceeds of the IPO (GBP3.8 million) and the cash generated
from operations. In May 2021, the Group repaid the GBP1.25 million
loan notes outstanding to BGF and is now debt-free.
Outlook
The Company entered the second half of 2021 with a strong
pipeline of new publishers and has already had success in
converting these opportunities, notably with the recent entry into
a new partnership with CNN as the exclusive content recommendation
partner across CNN Business, replacing the incumbent . Consistent
with the digital media market as a whole, our publisher base has
seen lower average traffic volumes over the summer as people take
advantage of the opening up of economies following sustained
periods of lockdown across the world. However, despite these lower
overall traffic volumes, Dianomi has been successful in increasing
revenues with publishers and signing up new publishers as detailed
above. Significant budgets are already being received from
advertisers for the remainder of the year, and this, combined with
our pipeline of new publishers and our established base of premium
publishers, gives us confidence in the Group's prospects for the
current financial year and beyond.
([1]) Statista.com, May 2021
([2]) Adjusted EBITDA is calculated as profit after tax before
deducting net finance costs, tax, depreciation, exceptional items
and share based payment charges
([3]) Adjusted profit before tax is calculated as profit after
tax before deducting tax, exceptional items and share based
payments
([4]) Adjusted basic earnings per share is calculated using
profit after tax before deducting exceptional items and share based
payments
([5]) Share numbers for H1 2020 have been adjusted to reflect
the share reorganisation which took place in May 2021
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 months 6 months Year
ended ended ended
30 Jun 2021 30 Jun 2020 31 Dec 2020
GBP000 GBP000 GBP000
Note
Revenue 17,358 12,953 28,430
Cost of
sales (12,368) (9,298) (20,285)
--------------------------------------------------- -------------------------------------------------- -------------------------------------------------------
Gross
profit 4,990 3,655 8,145
Administrative
expenses (6,038) (2,918) (5,939)
Exceptional
items (568) - (115)
Other operating
income - - 38
Fair value
movements (21) (6) 9
---------------------------------------------------- ----------------------------------------------- -----------------------------------------------------
Operating
(loss)/profit (1,637) 731 2,138
Depreciation 77 26 103
Share based
payments 9 2,673 - -
Exceptional
items 568 - 115
----------------------------------------------- ----------------------------------------------------- ----------------------------------------------------
Adjusted EBITDA 1,681 757 2,356
Finance income 2 3 7
Finance expense (43) (51) (105)
------------------------------------------------- ----------------------------------------------- -----------------------------------------------------
(Loss)/profit
on ordinary
activities
before
taxation (1,678) 683 2,040
Taxation (366) (267) (534)
------------------------------------------------- --------------------------------------------- -----------------------------------------------------
(Loss)/profit
for the year (2,044) 416 1,506
Other
comprehensive
(loss)/income
items that may
be
reclassified
subsequently
to profit or
loss
Currency
translation
differences (2) 75 (182)
------------------------------------------------- ------------------------------------------------- ---------------------------------------------------
Total
comprehensive
(loss)/income
for the year
attributable
to the owners
of the
company (2,046) 491 1,324
================================================= ================================================= ==================================================
Adjusted basic
earnings per
ordinary share
(p) 6 2.11 1.67 6.41
Adjusted
diluted
earnings
per ordinary
share (p) 6 1.90 1.52 5.78
Basic (loss)/
earnings per
ordinary share
(p) 6 (7.87) 1.67 6.05
Diluted (loss)/
earnings per
ordinary share
(p) 6 (7.87) 1.52 5.45
All operations are continuing operations .
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at As at 30 As at 31
30 Jun Jun Dec
2021 2020 2020
GBP000 GBP000 GBP000
Note
Non-current assets
Right-of-use
assets 77 231 154
--------------------------------------------------- --------------------------------------------------- ---------------------------------------------------
Total
non-current
assets 77 231 154
Current assets
Trade and
other
receivables 7,141 5,165 5,906
Cash and cash
equivalents 7,854 4,307 4,722
------------------------------------------------------ ---------------------------------------------------- ---------------------------------------------------
Total current
assets 14,995 9,472 10,628
Total assets 15,072 9,703 10,782
Current
liabilities
Trade and
other
payables (6,445) (5,584) (5,636)
Corporation
tax payable (198) (158) (427)
Lease
liabilities (79) (153) (157)
------------------------------------------------------ ----------------------------------------------------- -----------------------------------------------------
Total current
liabilities (6,722) (5,895) (6,220)
----------------------------------------------------- ----------------------------------------------------- -----------------------------------------------------
Non-current
liabilities
Loans and
borrowings 7 - (1,250) (1,250)
Lease
liabilities - (79) -
----------------------------------------------------- ----------------------------------------------------- -----------------------------------------------------
Total
non-current
liabilities - (1,329) (1,250)
----------------------------------------------------- ----------------------------------------------------- -----------------------------------------------------
Total
liabilities (6,722) (7,224) (7,470)
==================================================== ==================================================== ====================================================
Net assets 8,350 2,479 3,312
==================================================== ==================================================== ====================================================
Equity
Share
capital 8 60 - -
Share
premium
account 5,436 1,085 1,085
Share
options
reserve 2,673 - -
Foreign
currency
reserve (558) (299) (556)
Capital
redemption
reserve - - -
Retained
earnings 739 1,693 2,783
==================================================== ==================================================== ====================================================
Total equity
attributable
to
the
owners of
the company 8,350 2,479 3,312
==================================================== ==================================================== ====================================================
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to the owners of the Company
Capital Share options Foreign
Share Share premium redemption reserve currency Retained
capital account reserve reserve earnings Total equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
----------------------------------------- ------------------------------------------- ------------------------------------------------ ------------------------------------------------ ------------------------------------------------ ----------------------------------------------- -------------------------------------
Balance at 1
January
2021 - 1,085 - - (556) 2,783 3,312
----------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ----------------------------------------------- ------------------------------------------------
Comprehensive
income
for the period
Loss for the
period - - - - - (2,044) (2,044)
Currency
translation
differences - - - - (2) - (2)
----------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ----------------------------------------------- ------------------------------------------------
Total
comprehensive
income for
the period - - - - (2) (2,044) (2,046)
----------------------------------------- ----------------------------------------------- ----------------------------------------------- ----------------------------------------------- ----------------------------------------------- ----------------------------------------------- ------------------------------------------------
Transactions
with owners
of the Company
Shares issued 60 - - - - - 60
Contributions
of equity - 4,947 - - - - 4,947
Transaction
costs - (596) - - - - (596)
Share buybacks - - - - - - -
Share based
payment
credit - - - 2,673 - - 2,673
----------------------------------------- ----------------------------------------------- ----------------------------------------------- ----------------------------------------------- ----------------------------------------------- ------------------------------------------------- ------------------------------------------------
Total
transactions
with owners
of the
Company 60 4,351 - 2,673 - - 7,084
----------------------------------------- ----------------------------------------------- ----------------------------------------------- ----------------------------------------------- ----------------------------------------------- ------------------------------------------------- ------------------------------------------------
Balance at 30
June
2021 60 5,436 - 2,673 (558) 739 8,350
----------------------------------------- --------------------------------------------------- ----------------------------------------- --------------------------------------------------- --------------------------------------------------- ------------------------------------------------ ----------------------------------------------
----------------------------------------- ------------------------------------------------ ------------------------------------------------ ------------------------------------------------ ------------------------------------------------ ----------------------------------------------- ------------------------------------------------
Balance at 1
January
2020 - 1,085 - - (374) 1,277 1,988
----------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ----------------------------------------------- ------------------------------------------------
Comprehensive
income
for the period -
Profit for the
period - - - - - 416 416
Currency
translation
differences - - - - 75 - 75
----------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- --------------------------------------------------- ------------------------------------------------
Total
comprehensive
income for
the period - - - - 75 416 491
----------------------------------------- ------------------------------------------------ ------------------------------------------------ ----------------------------------------------- ----------------------------------------------- --------------------------------------------------- ----------------------------------------------
----------------------------------------- --------------------------------------------------- --------------------------------------------------- ----------------------------------------------- ----------------------------------------------- -------------------------------------------------- ------------------------------------------------
Balance
at 30
June
2020 - 1,085 - - (299) 1,693 2,479
----------------------------------------- ------------------------------------------------ ------------------------------------------------ ----------------------------------------------- ----------------------------------------------- -------------------------------------------------- -----------------------------------------------
----------------------------------------- ------------------------------------------------ ------------------------------------------------ ------------------------------------------------ ------------------------------------------------ ----------------------------------------------- ------------------------------------------------
Balance at 1
January
2020 - 1,085 - - (374) 1,277 1,988
----------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ----------------------------------------------- ------------------------------------------------
Comprehensive
income
for the year
Profit for the
year - - - - - 1,506 1,506
Currency
translation
differences - - - - (182) - (182)
----------------------------------------- ------------------------------------------------- ------------------------------------------------- ----------------------------------------------- ----------------------------------------------- ----------------------------------------------- ------------------------------------------------
Total
comprehensive
income for
the year - - - - (182) 1,506 1,324
----------------------------------------- ----------------------------------------------- ----------------------------------------------- ----------------------------------------------- ----------------------------------------- ----------------------------------------------- -----------------------------------------------------
Transactions
with owners
of the
Company
----------------------------------------- --------------------------------------------------- ----------------------------------------------- ----------------------------------------------- ----------------------------------------------- -------------------------------------------------- ------------------------------------------------
Balance at 31
December
2020 - 1,085 - - (556) 2,783 3,312
----------------------------------------- ----------------------------------------------- ----------------------------------------------- ----------------------------------------------- ----------------------------------------------- ----------------------------------------------------- -----------------------------------------------
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
Six months Six months Year
ended ended ended 31
30 Jun 2021 30 Jun 2020 Dec 2020
GBP000 GBP000 GBP000
Cash flows from operating activities
Profit on ordinary activities
before taxation (1,678) 683 2,040
Adjustments for:
Depreciation - leased assets 77 26 104
Interest paid 43 50 105
Interest received (2) (3) (7)
Increase in trade and other
receivables (1,552) (1,323) (1,332)
Increase in trade and other
payables 1,096 2,264 1,154
Net fair value gain recognised
in P&L (21) (6) (9)
Share based payment charge 2,673 - -
------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------
Cash
generated
from
operations 636 1,691 2,055
Taxation
(paid)/
received (622) 3 5
------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------
Net cash
generated
from /
(used
in)
operating
activities 14 1,694 2,060
====================================================== ====================================================== ======================================================
Cash flows from investing activities
Interest
received 2 3 7
------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------
Net cash
generated
from
investing
activities 2 3 7
====================================================== ====================================================== ======================================================
Cash flows from financing activities
Issue of
ordinary
shares 4,411 - -
Loan
repayment (1,250) - -
Interest
paid (43) (50) (101)
Finance
lease
repayment - (257) (105)
------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------
Net cash
generated
from/
(used
in)
financing
activities 3,118 (307) (206)
====================================================== ====================================================== ======================================================
Net increase
in cash and
cash
equivalents 3,134 1,390 1,861
Cash and
cash
equivalents
at
beginning
of period 4,722 2,842 2,842
Exchange
movement on
cash (2) 75 19
------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------
Cash and
cash
equivalents
at
end of
period 7,854 4,307 4,722
====================================================== ====================================================== ======================================================
DIANOMI PLC
NOTES TO THE HISTORICAL FINANCIAL INFORMATION
1. General information
Dianomi plc (the "Company") and its subsidiaries' (together the
"Group") principal activity is the delivery of premium native
advertising for the financial services, technology, corporate sand
lifestyle sectors. The Company was incorporated on 16 August 2002
in England and Wales as a private company limited by shares under
the name Data-ID Limited. On 17 December 2002, the Company changed
its name to Dianomi Limited. On 17 May 2021, the Company
re-registered as a public limited company and changed its name to
Dianomi plc.
The address of the registered office is 6(th) Floor, 60
Gracechurch Street, London, EC3V 0HR and the limited company number
is 04513809.
2. Basis of preparation and significant accounting policies
2.1. Basis of preparation
The financial information relating to the half year ended 30
June 2021 is unaudited and does not constitute statutory financial
statements as defined in section 434 of the Companies Act 2006.
The annual report and accounts for the year ended 31 December
2020, which received an unqualified audit opinion and did not
include a statement under section 498 (2) or (3) of the Companies
Act 2006, have been filed with the Registrar of Companies. The
statutory financial statements for the year ended 31 December 2020
were prepared in accordance with FRS 102, the Financial Reporting
Standard applicable in the UK and the Republic of Ireland (United
Kingdom Generally Accepted Accounting Practice - "UK GAAP").
On admission to AIM, the Company adopted International Financial
Reporting Standards and interpretations (collectively "IFRS")
issued by the International Accounting Standards Board ("IASB") as
adopted by the European Union. The financial information in these
interim accounts have been prepared and presented on that basis.
The comparative figures for the year ended 31 December 2020
included in these interim accounts are therefore not consistent
with the annual report and accounts as filed at Companies
House.
The financial information for the half year ended 30 June 2021
has been prepared in accordance with the accounting policies the
Company applied in the preparation of the accounts for the year
ended 31 December 2020 which were included in the Company's
admission document and are expected to be applied in the annual
financial statements for the year ending 31 December 2020. These
accounting policies are based on the EU-adopted International
Financial Reporting Standards ("IFRS").
Whilst the financial information included in these interim
accounts has been prepared in accordance with IFRS, they do not
contain sufficient information to comply with IFRS. In addition,
this report is not prepared in accordance with IAS 34.
This interim report was approved by the board of directors on 10
September 2021 and is available on the Company's website,
dianomi.com
The presentational currency of these financial statements and
the functional currency of the Group is pounds sterling.
2.2. Measurement convention
The consolidated financial information has been prepared under
the historical cost convention. Historical cost is generally based
on the fair value of the consideration given in exchange for
assets.
The preparation of the consolidated financial information in
compliance with IFRS requires the use of certain critical
accounting estimates and management judgements in applying the
accounting policies. The significant estimates and judgements that
have been made and their effect is disclosed in note 3.
2.3. Basis of consolidation
The consolidated financial information incorporates the
financial information of Dianomi Plc and all of its subsidiary
undertakings. Subsidiary undertakings include entities over which
the Group has effective control. The Group controls a group when it
is exposed to, or has right to, variable returns from its
involvement with the Group and has the ability to affect those
returns through its power over the Group. In assessing control, the
Group takes into consideration potential voting rights.
2.4. Going concern
The Directors have, at the time of approving the financial
statements, a reasonable expectation that the Company and the Group
have adequate resources to continue in operation for the
foreseeable future. The Group's forecasts and projections, taking
into account reasonable possible changes in trading performance,
show that the Group has sufficient financial resources, together
with assets that are expected to generate cash flow in the normal
course of business. Accordingly, the Directors have adopted the
going concern basis in preparing these consolidated financial
statements.
2.5. Principal Accounting Policies
2.5.1.1. Revenue
The Group's customers are direct advertisers, affiliate
advertisers and advertising agencies with whom the Group will enter
into a contract or insertion order.
The Group generates revenue by charging its customers a fee
based on a customer's total spend on advertising campaigns
delivered through its platform. The customer's total spend on
advertising is determined by multiplying an agreed performance
metric option, such as cost per mil (CPM), cost per impression
(CPI), click (CPC) or action (CPA) with the volumes of units
delivered.
Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the Group and the revenue can be
reliably measured. Revenue is measured as the fair value of
consideration received or receivable, excluding discounts, rebates,
value added tax and other sales taxes.
Revenue is recognised on completion of the performance criteria
which, in most cases, is when an internet user clicks through to an
advertisement that has been displayed on a web page.
Where advanced payments are made in advance of satisfying the
performance obligation, these amounts are transferred to deferred
revenue (contract liabilities) and recognised when the performance
obligation has been met.
The Group's standard payment terms require settlement of
invoices within 60-90 days of receipt.
The Group does not adjust the transaction price for the time
value of money as it does not expect to have any contracts where
the period between the transfer of the promised services to the
client and the payment by the client exceeds one year.
2.5.1.2. Cost of sales
Cost of sales represents the direct expenses that are
attributable to the services sold. They consist primarily of
payments to publishers under the terms of the revenue share
agreements that the Group has with them. Depending on the terms of
the revenue share agreements, cost of sales can include commissions
where applicable.
2.5.1.3. Foreign currency translation
a) Function and presentational currency
Items included in the financial information of each of the
Group's entities are measured using the currency of the primary
economic environment in which the entity operates ('the functional
currency'). The consolidated financial information is presented in
'sterling', which is the Group's functional currency and the
Group's presentation currency.
On consolidation, the results of overseas operations are
translated into sterling at rates approximating to those ruling
when the transactions took place. All assets and liabilities of
overseas operations are translated at the rate ruling at the
reporting date. Exchange differences arising on translating the
opening net assets at opening rate and the results of overseas
operations at actual rate are recognised in other comprehensive
income.
b) Transactions and balances
Foreign currency transactions are translated into the functional
currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at
year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the income
statement.
2.5.1.4. Exceptional items
Items which are material because of their size or nature and
which are non-recurring are highlighted separately on the face of
the consolidated statement of comprehensive income. The separate
reporting of exceptional items helps provide a better picture of
the Group's underlying performance. Items which have been included
within the exceptional category are the costs relating to the
Company's IPO on AIM in May 2021. The costs specifically related to
the issue of new shares have been set against share premium. Other
IPO costs which relate to listing both new and existing shares have
been allocated on a 50/50 basis between exceptional P&L costs
and share premium.
Exceptional items are excluded from the headline profit measures
used by the Group and are highlighted separately in the
consolidated statement of comprehensive income as management
believe that they need to be considered separately to gain an
understanding the underlying profitability of the trading
businesses.
2.5.1.5. Employee Benefits
Post-retirement benefits
The Group operates a defined contribution plan for its
employees. A defined contribution plan is a pension plan under
which the Group pays fixed contributions into a separate entity.
Once the contributions have been paid the Group has no further
payment obligations.
The contributions are recognised as an expense in administrative
expenses in the Consolidated Statement of Comprehensive Income when
they fall due. Amounts not paid are shown in accruals as a
liability in the Statement of Financial Position. The assets of the
plan are held separately from the Group in independently
administered funds.
Share based payments
Where share options are awarded to employees, the fair value of
the options at the date of grant is charged to profit or loss over
the vesting period. Non-market vesting conditions are taken into
account by adjusting the number of equity instruments expected to
vest at each Statement of Financial Position date so that,
ultimately, the cumulative amount recognised over the vesting
period is based on the number of options that eventually vest.
Market vesting conditions are factored into the fair value of the
options granted. The cumulative expense is not adjusted for failure
to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting
conditions. These are either factors beyond the control of either
party (such as a target based on an index) or factors which are
within the control of one or other of the parties (such as the
group keeping the scheme open or the employee maintaining any
contributions required by the scheme).
Where the terms and conditions of options are modified before
they vest, the increase in the fair value of the options, measured
immediately before and after the modification, is also charged to
profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than
employees, profit or loss is charged with fair value of goods and
services received.
2.6. Alternative performance measures
In order to provide better clarity to the underlying performance
of the Group, adjusted EBITDA and adjusted earnings per share are
used as alternative performance measures. These measures are not
defined under IFRS. These non-GAAP measures are not intended to be
a substitute for, or superior to, any IFRS measures of performance,
but have been included as the Directors consider adjusted EBITDA
and adjusted earnings per share to be key measures used within the
business for assessing the underlying performance of the Group's
ongoing business across periods. Adjusted EBITDA excludes from
operating profit non-cash depreciation and share based payment
charges and non-recurring exceptional costs. Adjusted EPS excludes
from profit after tax, share based payment charges and
non-recurring exceptional items and their related tax impacts.
3. Judgements and key sources of estimation uncertainty
The preparation of the consolidated financial information
requires the Directors to make estimates and judgements that affect
the reported amounts of assets, liabilities, costs and revenue in
the consolidated financial information. Actual results could differ
from these estimates. The judgements, estimates and associated
assumptions are based on historical experience and other factors
that are considered to be relevant.
The judgements and key sources of estimation uncertainty that
have a significant effect on the amounts recognised in the
consolidated financial information are:
- The Group measures the cost of equity-settled transactions
with employees by reference to the fair value of equity instruments
at the date at which they are granted. The fair value is determined
by using the Black-Scholes model taking into account the terms and
conditions upon which the instruments were granted and requires
assumptions to be made in particular the value of the shares at the
date of options granted. Management have had to apply judgement
when selecting assumptions.
4. Revenue
Revenue arises from:
6 months
to 6 months Year to
30 Jun to 30 Jun 31 Dec
2021 2020 2020
GBP000 GBP000 GBP000
United
Kingdom 2,817 1,879 4,836
Rest of
World 14,541 11,074 23,594
====================================================== ====================================================== ======================================================
17,358 12,953 28,430
====================================================== ====================================================== ======================================================
5. Operating segments
IFRS 8 requires that operating segments be identified on the
basis of internal reporting and decision-making. The Group is
operated as one global business by its executive team, with key
decisions being taken by the same leaders irrespective of the
geography where work for clients is carried out. Management
therefore consider that the Group has one operating segment. As
such, no additional disclosure has been recorded under IFRS 8.
6. Earnings per share
The Group presents non-adjusted and adjusted basic and diluted
earnings/loss per share (EPS) for its ordinary shares. Basic EPS is
calculated by dividing the profit/loss for the period attributable
to ordinary shareholders by the weighted average number of ordinary
shares outstanding during the period.
Diluted EPS takes into consideration the Company's dilutive
contingently issuable shares. The weighted average number of
ordinary shares used in the diluted EPS calculation is inclusive of
the number of share options that are expected to vest subject to
performance criteria as appropriate, being met.
The (loss) / profit and weighted average number of shares used
in the calculations are set out below:
Six months Six months Year
ended ended ended
30 Jun 21 30 Jun 31 Dec 2020
20
GBP000 GBP000 GBP000
(Loss)/ profit attributable
to the ordinary equity holders
of the Group used in calculating (2,044
basic and diluted EPS ) 416 1,506
Basic (loss)/ earnings per
ordinary share (p) (7.87 ) 1.67 6.05
Diluted (loss)/ earnings
per ordinary share (p) (7.87 ) 1.52 5.45
Six months Six months
ended ended Year
30 Jun 30 Jun ended
21 20 31 Dec 20
Adjusted basic GBP000 GBP000 GBP000
and diluted EPS
Reconciliation
of earnings
used
in calculating
adjusted EPS:
(Loss) / profit
attributable
to the ordinary
equity holders
of the Group
used in
calculating
basic and
diluted EPS (2,044) 416 1,506
Adjusting
items:
Share based
payments 2,673 - -
Exceptional items 568 - 115
Tax impact of
adjusting items (648) - (23)
====================================================== ====================================================== ======================================================
Profit
attributable to
the ordinary
equity holders
of the Group
used
in calculating
adjusted basic
and diluted EPS 549 416 1,598
Adjusted basic
earnings per
ordinary
share (p) 2.11 1.67 6.41
Adjusted diluted
earnings per
ordinary share
(p) 1.90 1.52 5.78
Year
Six months Six months ended
ended ended 31 Dec
30 Jun 21 30 Jun 20 20
Weighted
average
number of
ordinary
shares used
as the
denominator
in
calculating
non-adjusted
and adjusted
basic
EPS 25,986,890 24,913,036 24,913,036
Weighted share
option
dilution
impact 2,900,015 2,487,950 2,716,169
====================================================== ====================================================== ======================================================
Weighted
average
number of
ordinary
shares used
as the
denominator
in
calculating
non-adjusted
and adjusted
diluted
EPS 28,886,905 27,400,986 27,629,205
7. Loans and borrowings
As at 30 As at 30 As at 31
Jun 2021 Jun 2020 Dec 2020
GBP GBP GBP
Non-current
liabilities
Other loans - 1,250,000 1,250,000
-------------------------------------------- ----------------------------------------------- --------------------------------------------
- 1,250,000 1,250,000
========================================== ============================================== ==========================================
In 2018 the Group issued loan notes totalling GBP1,250,000 to
BGF Investments LP ("BGF"), a shareholder and related party. The
loan notes accrued annual interest at 8% and were repayable in 4
equal, bi-annual instalments starting 31 December 2023, however the
loan notes were repaid in full following the Company's admission to
trading on AIM in May 2021.
8. Share capital
Ordinary Shares Issued Nominal Issued
Shares Value Amount
Number GBP GBP
As at 1 January 2020, 30 June 2020
and 31 December 2020 18,345 0.01 184
----------- ------------- ----------
As at 1 January 2021 18,345 0.01 184
Bonus issue 3,100,305 0.01 31,003
Redesignation of A, B and C ordinary
shares to Ordinary Shares 1,859,514 0.01 18,595
Subtotal 4,978,164 0.01 49,782
Subdivision of ordinary shares 24,890,820 0.002 49,782
Issue of shares pursuant to exercise
of options 3,305,650 0.002 6,611
Issue of shares pursuant to placing 1,831,501 0.002 3,663
As at 30 June 2021 30,027,971 0.002 60,056
----------- ------------- ----------
A ordinary shares Issued Nominal Issued
Shares Value Amount
Number GBP GBP
As at 1 January 2020, 30 June 2020
and 31 December 2020 10,361 0.01 104
------------------- --------------- -------------------
As at 1 January 2021 10,361 0.01 104
Bonus issue 1,751,009 0.01 17,510
Redesignation to Ordinary Shares (1,761,370) 0.01 (17,614)
As at 30 June 2021 - -
------------------- --------------- -------------------
B ordinary shares Issued Nominal Issued
Shares Value Amount
Number GBP GBP
As at 1 January 2020, 30 June 2020
and 31 December 2020 602 0.01 6
------------------ ------------- -------------------
As at 1 January 2021 602 0.01 6
Bonus issue 101,738 0.01 1,017
Redesignation to Ordinary Shares (80,124) 0.01 (801)
Redesignation to deferred shares (22,216) 0.01 (222)
As at 30 June 2021 - -
------------------ ------------- -------------------
C ordinary shares Issued Nominal Issued
Shares Value Amount
Number GBP GBP
As at 1 January 2020, 30 June 2020
and 31 December 2020 106 0.01 1
----------------- --------------- --------------
As at 1 January 2021 106 0.01 1
Bonus issue 17,914 0.01 179
Redesignation to Ordinary Shares (18,020) 0.01 (180)
As at 30 June 2021 - -
----------------- --------------- --------------
Deferred shares Issued Nominal Issued
Shares Value Amount
Number GBP GBP
As at 1 January 2020, 30 June 2020
and 31 December 2020 - -
------------- ----------- ---------------
As at 1 January 2021 - -
Redesignation of B ordinary shares 22,216 0.01 222
Repurchase of deferred shares (22,216) 0.01 (222)
As at 30 June 2021 - -
------------- ----------- ---------------
On 6 May 2021, GBP49,709.66 of the available GBP1,084,776 of the
Company's share premium account was capitalised through the issue
of bonus ordinary shares of GBP0.01 each, A ordinary shares of
GBP0.01 each ("A Shares"), B ordinary shares of GBP0.01 each ("B
Shares"), and C ordinary shares of GBP0.01 each ("C Shares") to
existing shareholders pro rata to their holdings of ordinary shares
of GBP0.01 each, A Shares, B Shares and/or C Shares. The
capitalisation resulted in an issued share capital of 3,118,650
ordinary shares of GBP0.01 each, 1,761,370 A Shares, 102,340 B
Shares and 18,020 C Shares.
A new set of interim articles of association was adopted by the
Company to reflect its re-registration as a public limited company
and the Company's name was changed to Dianomi plc.
Immediately prior to the Company's admission to trading on AIM
("Admission") taking place, the A Shares and C Shares were
re-designated as ordinary shares of GBP0.01 each in the capital of
the Company on the basis of one ordinary share of GBP0.01 per A
Share or C Share then in issue.
Immediately prior to Admission taking place, the 102,340 B
Shares in issue after the bonus issue described above were
re-designated as 80,124 ordinary shares of GBP0.01 each and 22,216
deferred shares of GBP0.01 each in the capital of the Company.
Immediately after the re-designation of shares described above,
each ordinary share of GBP0.01 was sub-divided into five ordinary
shares of GBP0.002 each.
Immediately on Admission taking place on 24 May 2021, all of the
deferred shares of GBP0.01 each were repurchased by the Company for
an aggregate consideration of GBP1.00 to be satisfied in cash.
Furthermore, on Admission 1,831,501 new ordinary shares of
GBP0.002 pence were issued pursuant to the placing, raising gross
proceeds of GBP5 million for the Company.
9. Share based payments
The Group operates an equity-settled share based remuneration
scheme for employees. All UK employees are eligible to participate
in the long term incentive scheme, the only vesting condition being
that the individual remains an employee of the Group over the ten
year vesting period.
The number of options and weighted average exercise price in the
table below have not been adjusted to reflect the share capital
reorganisation in May 2021 as described in Note 8.
Weighted Weighted Weighted
average average average
exercise exercise exercise
price (pence) Number price (pence) Number price (pence) Number
Jun 21 Jun 21 Jun 20 Jun 20 Dec 20 Dec 20
Outstanding
at the
beginning
of the
period 1.0 3,627 1.0 2,927 1.0 2,927
Granted
during the
period 225.9 1,982,926 1.0 - 1.0 700
Exercised/
lapsed
during the
period 0.2 (345,627) 1.0 - 1.0 -
-------------------------------------------- ----------------------------------------------- ---------------------------------------------- ---------------------------------------------- ---------------------------------------------- ----------------------------------------------
Outstanding
at the
end of the
period 273 1,640,926 1.0 2,927 1.0 3,627
========================================== ============================================== ============================================ ============================================ ============================================ ============================================
Of the total number of options outstanding at the end of the
period, Nil (30 Jun 20: Nil, 31 Dec 20: Nil) had vested and were
exercisable at the end of the year with a weighted average exercise
price of 273p (30 Jun 20: 1.0p, 31 Dec 20: 1.0p).
Certain options granted under the existing option schemes in
place prior to Admission were due to lapse on 17 May 2021, and all
but two of these lapsing options were replaced with equivalent
options. Of the two other lapsing options, one of these was
replaced with an option over a greater number of ordinary shares.
All of the options granted under the existing option schemes in
place prior to Admission were exercised immediately on
Admission.
On Admission, new option schemes were established and a total of
1,640,926 options have been granted under these new option schemes
with an exercise price of 273p.
The Black-Scholes option pricing model was used to value the
equity-settles share-based payment awards as it was considered that
this approach would result in materially accurate estimate of the
fair value of the options granted.
The share-based remuneration expense comprises:
As at 30 As at 30 As at 31
Jun 2021 Jun 2020 Dec 2020
GBP000 GBP000 GBP000
Equity-settled
schemes 2,673 - -
========================================== ============================================== ==========================================
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR ZZGMLVGGGMZM
(END) Dow Jones Newswires
September 13, 2021 02:00 ET (06:00 GMT)
Dianomi (LSE:DNM)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Dianomi (LSE:DNM)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
