MOTIVCOM plc : Interim Results 30 June 2013

Interim Results - London Stock Exchange

Page 1 of 11

Regulatory Story

Go to market news section

Company Motivcom PLC TIDM MCM Headline Interim Results Released 07:00 26-Sep-2013 Number 8582O07

RNS Number : 8582O Motivcom PLC

26 September 2013

26 September 2013

Motivcom plc

("Motivcom" or "the Group")

Interim Results for the six months ended 30 June 2013

Motivcom plc (AIM:MCM), a leading business services group offering incentives & loyalty expertise and meetings & event management services to major blue-chip corporate clients, is pleased to announce its unaudited interim results for the six months ended 30 June 2013.

Financial Highlights

Unaudited Interim Results for the period ended 30 June 2013

• Headline operating profit* increased by 35% to £1,808,000 (2012: £1,337,000)

• Headline profit before tax† increased by 37% to £1,806,000 (2012: £1,317,000)

• Headline basic earnings per share‡ increased by 48% to 4.87 pence (2012: 3.28 pence)

• Operating profit increased by 56% to £1,606,000 (2012: £1,027,000)

• Profit before tax increased by 74% to £1,560,000 (2012: £897,000)

• Basic earnings per share increased by 94% to 4.18 pence (2012: 2.15 pence)

• Interim dividend increased by 20% to 1.80 pence per share (2012: 1.50 pence per share)

• Net cash of £3,838,000 after April 2013 share buyback of £3,311,000 (2012: net cash of

£5,151,000)

* Operating profit of £1,606,000 (2012: £1,027,000) plus amortisation of intangibles of £202,000 (2012: £310,000)

† Profit before tax of £1,560,000 (2012: £897,000) plus amortisation of intangibles of £202,000 (2012: £310,000) and unwinding of discount relating to contingent consideration liability of £44,000 (2012: £110,000)

‡ See reconciliation in Note 5

Commenting on the results, Colin Lloyd, Chairman of Motivcom plc, said: "The Board is pleased to report on a successful period, in which operating profit increased and new client wins were secured across all divisions. The tender offer in April
2013 to buy back 10% of the Group's equity benefited our shareholders and our strong cash position gives the Group the ability to consider further tender offers and bolt-on acquisitions should appropriate opportunities arise.
"The Group's continued innovation and investment in technology has underpinned our levels of business activity during the period, and we are pleased to confirm that the Board's outlook for the Group remains positive."
For further information:
- Ends -

http://www.londonstockexchange.com/exchange/news/market-news/market-news-det...

26/09/2013

Interim Results - London Stock Exchange

Page 2 of 11

Motivcom
Sue Hocken Tel: [phone] [e-mail] www.motivcom.com
Grant Thornton UK LLP
Philip Secrett / Salmaan Khawaja / Jamie Barklem Tel: [phone] [e-mail] www.gtuk.com
Numis Securities Limited
David Poutney/James Serjeant Tel: [phone]
Media enquiries: Abchurch
Joanne Shears / Quincy Allan Tel: [phone]

[e-mail] www.abchurch-group.com
CHAIRMAN'S STATEMENT
I am pleased to report the results for Motivcom for the six months to 30 June 2013. The Group has benefited from the cost reductions that were implemented in 2012 which resulted in reduced operating costs and increased headline operating profit. Cash balances remain strong and were in line with expectations.
I am also pleased that on 14 April 2013 shareholders benefited from the cash generative nature of the Group's business through a tender offer for 10% of the Company's ordinary shares for a total consideration of £3,311,000. The Headline basic earnings per share were partially enhanced by this tender offer, increasing by 48%. The £3,838,000 cash position at the end of June 2013 continues to provide the Group with flexibility to consider further tender offers and bolt-on acquisitions should appropriate opportunities arise.

Financial update

The Group's gross profit was broadly in line with 2012 at £13,745,000 (2012: £13,885,000). The Group has benefited from the cost reductions that were implemented in 2012 which resulted in reduced operating costs and a headline operating profit of £1,808,000 (2012: £1,337,000), an increase of 35%. Headline profit before tax increased by 37% to £1,806,000 (2012: £1,317,000) and headline basic earnings per share increased by 48% to 4.86 pence (2012: 3.28 pence).
In view of the cash generative nature of the Group's business and the Board's confidence in Motivcom's prospects, the Board is pleased to propose an interim dividend for the period to June 2013 of 1.8 pence, an increase of 20% (2012: 1.5 pence). This will be paid on 1 November 2013 to shareholders on the register at close of business on 4 October 2013. As I have detailed previously, the Board intends to continue its progressive dividend policy.

Divisional Reports

Motivation
The motivation division has continued to deliver good growth during the period with headline operating profits increasing by 20% to £876,000 (2012: £729,000). New business enquiries remain at steady levels with a marked improvement in the speed and reliability of client decisions.
Motivation programme activity has benefited from new client wins in 2012 which are at various stages of implementation. We are experiencing a more committed and stable environment from our existing client base which is now taking positive steps to invest in our area of employee engagement.
Our voucher / gift card business remains consistent with previous years and continues to benefit from the shift from paper vouchers to plastic retailer gift cards. Improved functionality and lower distribution costs continue to drive efficiencies into this operation.
Spree, our pre paid MasterCard product, has continued to grow with transaction values in H1 reaching £88 million (H1 2012:
£82 million). Spree offers rich cashback saving at most key high street brands and is available to employee and membership groups. The recent growth in the market for cashback cards is testament to the effectiveness of this approach that we first introduced in 2007. Investment in cardholder marketing, mobile solutions and product for the SME market have driven both growth in the cardholder base and improved profitability from existing cardholders.
A steady stream of new business wins means that the division is performing well and the Board anticipates that it will continue to make good progress in H2 2013 and on into 2014.
Promotions
The Board is pleased to report that the promotions division has performed considerably better than H1 2013 with headline operating profits doubling to £201,000 (2012: £107,000).
Employee Benefits and Communications
Our publishing business has, despite the substantial market move to digital, been successful in achieving 100% client retention, as well as winning a number of significant new clients. It continues to develop innovative technological solutions which will assist the business in retaining clients, increasing client spend and winning new clients.
Following a successful 2012 for Employee Benefits, 2013 has continued apace. We are pleased to report continuing client

http://www.londonstockexchange.com/exchange/news/market-news/market-news-det...

26/09/2013

Interim Results - London Stock Exchange

Page 3 of 11

wins within the private and public sectors. The Group's increasing use of technologically based solutions and the introduction of mobile adaptability give the Board confidence for a positive H2 2013.
Sales Promotion
A positive start to the year has been driven by the structural changes made during 2012. These changes have improved sales focus and operational efficiency in H1 and are expected to contribute further in H2 and into 2014. Both Filmology and Fotorama have won significant levels of new business. Treatme, our activity and experience business, has been successfully integrated, and has a new web presence in both the consumer and B2B arenas. The strategy of building the business within the B2B and retail space has begun with a number of B2B clients secured and distribution through a major national retailer. The Board remains confident that this division will perform to expectation for 2013.
Events
The events division has shown a significant improvement in performance over H1 2012 with headline operating profits increasing by 38% to £806,000 (2012: £585,000).
Our contracted venue sourcing business finds venues and manages meetings programmes for large global and international companies. This area saw a positive start to 2013 with booking volumes for H1 in excess of 2012 by 20%. This trend has continued through the summer period and we are on track to exceed 2012 volumes. Fewer delegate numbers at each event and lower hotel rates create margin pressures which we are combating with improved technological efficiency, however profitability remains challenging in this area. We expect continued growth in this area as economic confidence leads to recovery. This in turn will lead to potentially higher hotel rates and the opportunity for increased business at higher margins could improve profit significantly in 2014. We are investing in new technology and IT solution platforms to further improve efficiency and provide service differentiation and we expect this investment to be on line by mid 2014.
Our event businesses develop creative conferences, product launches and incentive rewards for over 100 top global brands. The event management and live production areas have continued to see budgetary pressures and reducing numbers of delegates impacting volume, average spend per head and profitability. Traditionally our event management division follows the trends of our venue sourcing business usually 8-12 months later. We therefore expect a year of flat performance in events management, leading to an upturn in 2014 based on the trend currently being experienced in venue sourcing. We continue to monitor costs in this area.
The market remains challenging but there are signs of significant and potentially rapid improvements in market conditions as confidence returns to the sales and marketing community. Our creative approach to client service and business development means we are well placed to take advantage of any market recovery.

Outlook

In the last few years Motivcom companies have invested substantially in systems technologies and digital enabling solutions for clients, operating hundreds of web sites and social media engagement programmes. Almost half the Group revenues are enabled from these developments. The technologies, many of which are unique, provide an excellent platform for future development in the digital age.
The business intake of the Motivcom companies continues to meet the Group's annual budget and I expect the Group to perform in line with your Board's expectations.
Colin Lloyd
Chairman
25 September 2013

CONSOLIDATED INTERIM INCOME STATEMENT (UNAUDITED) FOR THE PERIOD ENDED 30 JUNE 2013

Six months ended 30

June 2013
Six months ended 30

June 2012
Year ended
31
December

2012

Revenue	Note 3	£000 46,312		£000 49,243		£000 106,590
Cost of sales		(32,567)		(35,358)		(77,273)
Gross profit		13,745		13,885		29,317
Administrative expenses		(11,937)		(12,548)		(25,170)
Amortisation and impairment of intangibles		(202)		(310)		(2,075)
Acquisition costs	8	-		-		(59)
Contingent consideration adjustment		-		-		700
Operating profit	3	1,606		1,027		2,713
Finance costs - net		(46)		(130)		(211)
Profit before income tax		1,560		897		2,502
Income tax expense	4	(355)		(268)		(572)
Profit for the period		1,205		629		1,930
Attributable to:
Equity holders of the Company		1,205		629		1,930
Earnings per share for profit attributable to the equity holders of the Company during the year (expressed in

http://www.londonstockexchange.com/exchange/news/market-news/market-news-det...

26/09/2013

Interim Results - London Stock Exchange

Page 4 of 11

pence)
- basic	5	4.18		2.15		6.52
- diluted	5	4.15		2.08		6.35

CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) FOR THE PERIOD ENDED 30 JUNE 2013
Six months ended 30
June 2013
£000
Six months ended 30
June 2012
£000
Year ended
31
December
2012
£000
Profit for the period 1,205 629 1,930
Other comprehensive income:
Deferred tax on property - 24 42

Other comprehensive income, net of tax 1,205 24 42

Total comprehensive income for the period 1,205 653 1,972
Attributable to:

Equity holders of the Company 1,205 653 1,972

All activities are classed as continuing

CONSOLIDATED INTERIM BALANCE SHEET (UNAUDITED) AT 30 JUNE 2013

ASSETS

Non-current assets

Note

At 30 June

2013

£000

At 30 June

2012

£000

At 31

December

2012

£000

Property, plant and equipment 4,490 4,821 4,623

Intangible assets 7 23,447 24,773 23,649

Deferred income tax assets - 28 -

27,937 29,622 28,272

Current assets

Inventories 822 771 743

Trade and other receivables 29,782 21,478 22,475

Cash and cash equivalents 7,721 10,301 13,933

38,325 32,550 37,151

Total assets 66,262 62,172 65,423

EQUITY

Capital and reserves attributable to the Company's equity holders

Share capital 9 140 155 155

Share premium account 9,944 9,944 9,944

Own shares (1,073) (1,309) (1,083) Capital redemption reserve 9 15 - - Other reserves 75 75 75

Retained earnings 10,599 12,899 13,696

Total equity 19,700 21,764 22,787

LIABILITIES

Non-current liabilities

Borrowings 1,690 1,900 1,800

Deferred income tax liabilities 294 427 329

Provisions - 915 267

Current liabilities

1,984 3,242 2,396

Trade and other payables 41,573 33,153 39,455

Current income tax liabilities 362 345 138

Borrowings 2,193 3,243 200

Provisions 450 425 447

http://www.londonstockexchange.com/exchange/news/market-news/market-news-det...

26/09/2013

Interim Results - London Stock Exchange

Page 5 of 11

44,578 37,166 40,240

Total liabilities 46,562 40,408 42,636

Total equity and liabilities 66,262 62,172 65,423

CONSOLIDATED INTERIM CASH FLOW STATEMENT (UNAUDITED) FOR THE PERIOD ENDED 30 JUNE 2013

Cash flows from operating activities

Note

Six months ended 30
June 2013
£000
Six months ended 30
June 2012
£000
Year ended
31
December
2012
£000
Cash (used in)/ generated from operations (3,157) 788 8,662

Interest paid (51) (52) (89) Income tax paid (219) (559) (1,110) Net cash (used in)/generated from operating activities (3,427) 177 7,463
Cash flows from investing activities
Acquisition of subsidiary, net of cash acquired and
dividends due to former shareholders 8 (308) (308) (552) Purchases of property, plant and equipment (PPE) (169) (121) (239) Proceeds on disposal of PPE - 612 658
Interest received 32 42 80

Net cash (used in)/generated from investing activities (445) 225 (53)

Cash flows from financing activities
Drawdown/(repayment) of borrowings 1,900 (400) (3,550) Payments to acquire own shares 9 (3,347) (91) (91) Proceeds from issue of shares 10 36 262
Dividends paid (903) (835) (1,287)

Net cash used in financing activities (2,340) (1,290) (4,666)

Net (decrease)/increase in cash (6,212) (888) 2,744
Cash at beginning of period 13,933 11,189 11,189

Cash at end of period 7,721 10,301 13,933

Cash generated from operations
Six months ended 30
June 2013
£000
Six months ended 30
June 2012
£000
Year ended
31
December
2012
£000
Profit before income tax 1,560 897 2,502
Adjustments for:
- depreciation 299 346 679
- loss on disposal of property, plant and equipment 3 88 87
- net interest payable 46 130 211
- share based payments 1 5 24
- amortisation and impairment of intangibles 202 310 2,075
Changes in working capital (excluding the effects of acquisitions and exchange differences on consolidation):
- inventories (79) (154) (123)
- trade and other receivables (7,307) 1,635 1,477
- trade and other payables 2,118 (2,469) 1,730

Cash generated from operations (3,157) 788 8,662

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED) FOR THE PERIOD ENDED 30 JUNE 2013

	Share capital	Share premium	Own shares	Capital redemption	Other reserves	Retained earnings	Total equity
	£000	£000	£000	£000	£000	£000	£000
Balance at 1 January 2012	155	9,944	(1,254)	-	75	13,026	21,946
Dividends paid	-	-	-	-	-	(835)	(835)
Share based payments	-	-	-	-	-	5	5
Purchase of own shares Disposed of on exercise of	-	-	(91)	-	-	-	(91)
options Deferred tax on equity share	-	-	36	-	-	-	36

http://www.londonstockexchange.com/exchange/news/market-news/market-news-det...

26/09/2013

Interim Results - London Stock Exchange

Page 6 of 11

based payments - - - - - 51 51

Transactions with owners - - (55) - - (779) (834)

Profit for the period - - - - - 629 629
Other comprehensive income:

Deferred tax on property - - - - - 23 23
Total comprehensive income for the period

- - - - - 652 652
At 30 June 2012 155 9,944 (1,309) - 75 12,899 21,764
Dividends paid - - - - - (452) (452) Share based payments - - - - - 19 19
Disposed of on exercise of
options - - 226 - - - 226
Excess proceeds on share
disposal - - - - - - - Deferred tax on equity share
based payments - - - - - (90) (90)

Transactions with owners - - 226 - - (523) (297)

Profit for the period - - - - - 1,301 1,301
Other comprehensive income:
Deferred tax on property - - - - - 19 19

Total comprehensive income

for the period - - - - - 1,320 1,320
Balance at 31 December 2012 155 9,944 (1,083) - 75 13,696 22,787
Dividends paid - - - - - (903) (903) Share based payments - - - - - 1 1
Purchase and cancellation of
own shares (15) - - 15 - (3,347) (3,347) Disposed of on exercise of
options - - 10 - - - 10
Deferred tax on equity share

based payments - - - - - (53) (53) Transactions with owners (15) - 10 15 - (4,302) (4,292) Profit for the period - - - - - 1,205 1,205
Other comprehensive income:
Deferred tax on property - - - - - - -

Total comprehensive income
for the period - - - - - 1,205 1,205

At 30 June 2013 140 9,944 (1,073) 15 75 10,599 19,700

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2013

1 General information
Motivcom plc ("the Company") and its subsidiaries (together "Motivcom plc" or "the Group") are involved in (1) the development and administration of third party motivation and incentive programmes (2) the provision of incentive travel, live events and venue finding and (3) the provision of trade and consumer sales promotions, employee benefits products and communication programmes.
The Company is a public limited liability company incorporated and domiciled in England. The address of its registered office is Avalon House, Breckland, Linford Wood, Milton Keynes MK14 6LD. The Company has its primary and only listing on Aim, London Stock Exchange's international market for smaller growing companies.
These unaudited condensed consolidated interim financial statements (the interim financial statements) have been approved for issue by the Board of Directors on 25 September 2013.
2 Basis of preparation
These interim financial statements of Motivcom plc are for the six months ended 30 June 2013. They have been prepared in accordance with IAS 34, Interim Financial Reporting. They do not constitute statutory accounts as defined in Section
435 of the Companies Act 2006. They should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2012 which are available on the Group's website (www.motivcom.com) and have been filed with The Registrar of Companies. The auditors report on those financial statements was unqualified and did not contain a statement made under Section 498(3) of the Companies Act 2006.
These interim financial statements have been prepared in accordance with the accounting policies adopted in the last financial statements for the year ended 31 December 2012 except for the application of the following standards as of 1

January 2013:

• IFRS 10 'Consolidated Financial Statements' (IFRS 10)

• IFRS 13 'Fair Value Measurement' (IFRS 13)

• Annual Improvements 2009-2011 (Annual Improvements)

There have been no effects whatsoever from applying these standards.

The accounting policies have been applied consistently throughout the Group in preparing these interim financial statements.
The financial statements are prepared on a going concern basis. In considering going concern, the directors have reviewed the Group's future cash requirements and earnings projections. The directors believe these forecasts have been prepared on a prudent basis and have also considered the impact of a range of potential changes to trading performance. The

http://www.londonstockexchange.com/exchange/news/market-news/market-news-det...

26/09/2013

Interim Results - London Stock Exchange

Page 7 of 11

directors have concluded that the Group should be able to operate within its current facilities and comply with its banking covenants for the foreseeable future and therefore believe it is appropriate to prepare the financial statements of the Group on a going concern basis. This is supported by the Group's liquidity position at 30 June 2013.
The Group's financial risk management policies are described in its financial statements for the year ended 31 December
2012.
3 Segment Information
At 30 June 2013 the Group is organised into three main operating segments - (1) development and administration of third party motivation and incentive programmes ("Motivation") - (2) the provision of incentive travel, live events and venue finding ("Events") - (3) trade and consumer sales promotions, employee benefit products and communications ("Promotions"). Unallocated costs represent corporate and share-based payment expenses.

The segment results for the six months ended 30 June 2013 are as follows: The segment results for the six months ended 30 June 2012 are as follows: The segment results for the year ended 31 December 2012 are as follows:

IFRS 8 requires that an entity reports a measure of assets and liabilities for each reportable segment only if such an amount is regularly provided to the Chief Operating Decision Maker. As no such amounts are regularly provided to the Chief Operating Decision Maker, segment assets and liabilities are not disclosed.
The Group's business is divided into two main streams - Incentives and Loyalty ("Incentives") and Meetings and Event Management ("Meetings"). Incentives comprises the segment results of Motivation and Promotions but also includes the motivation business of AYMTM Limited included in Events. Meetings comprises the segment results of Events less the motivation business of AYMTM Limited. The Group recognises that this additional information enables its shareholders to better appreciate the nature of its business.

http://www.londonstockexchange.com/exchange/news/market-news/market-news-det...

26/09/2013

Interim Results - London Stock Exchange

Page 8 of 11

The segment results for the six months ended 30 June 2013 are as follows:
Incentives
£000
Meetings
£000
Unallocated
£000
Group
£000
Revenue from external clients 32,873
13,439
- 46,312
Inter-segment revenues
2,851

1,676

(4,527) -

Total revenue 35,724 15,115 (4,527) 46,312

Gross profit 8,192 5,553 - 13,745

Administrative expenses (6,947) (4,915) (75) (11,937) Headline operating profit 1,245 638 (75) 1,808

Amortisation of intangibles (202) Operating profit 1,606
Net interest expense (46)

Profit before tax 1,560

The segment results for the six months ended 30 June 2012 are as follows:
Incentives
£000
Meetings
£000
Unallocated
£000
Group
£000
Revenue from external clients 34,095
15,148
- 49,243
Inter-segment revenues
1,929

341

(2,270) -

Total revenue 36,024 15,489 (2,270) 49,243

Gross profit 7,549 6,336 - 13,885

Administrative expenses (6,351) (6,113) (84) (12,548) Headline operating profit 1,198 223 (84) 1,337

Amortisation of intangibles (310) Operating profit 1,027
Net interest expense (130)

Profit before tax 897

The segment results for the year ended 31 December 2012 are as follows:
Incentives
£000
Meetings
£000
Unallocated
£000
Group
£000
Revenue from external clients 69,287
37,303
- 106,590
Inter-segment revenues

4,597

414

(5,011) -
Total revenue 73,884 37,717 (5,011) 106,590

Gross profit 16,114 13,203 - 29,317

Administrative expenses (12,836) (12,124) (210) (25,170) Headline operating profit 3,278 1,079 (210) 4,147
Amortisation and impairment of intangibles (2,075) Acquisition costs (59)
Contingent consideration adjustment 700

Operating profit 2,713

Net interest expense (211) Profit before tax 2,502
4 Income tax expenses
Six months ended 30
June 2013
£000
Six months ended 30
June 2012
£000
Year ended
31
December
2012
£000
Current tax 439 334 684

Overprovision of tax for prior year - - (5) Deferred tax (84) (66) (107)
355 268 572

5 Earnings per share and dividends
Basic
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period.
Six months ended 30
June 2013
£000
Six months ended 30
June 2012
£000
Year ended
31
December
2012
£000

http://www.londonstockexchange.com/exchange/news/market-news/market-news-det...

26/09/2013

Interim Results - London Stock Exchange

Page 9 of 11

Profit attributable to equity holders of the Company	1,205		629		1,930
Weighted average number of ordinary shares in issue (thousands)	28,829		29,222		29,620

Basic earnings per share in pence 4.18 2.15 6.52

Diluted
Diluted earnings per share is calculated adjusting the weighted average number of ordinary shares outstanding to assume conversion of all contracted dilutive potential ordinary shares. The Company has only one category of dilutive potential ordinary shares, share options.
The calculation is performed for the share options to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the Company's shares) based on the monetary value of the subscription rights attached to outstanding share options and taking account of the yet unexpensed share based payment charge relating to those options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options. Tranches two to four of the options granted to C T Lloyd have been excluded from this calculation as all the conditions attaching to the proposed options had not been met at 30 June 2013.
Six months ended 30
June 2013

£000
Six months ended 30
June 2012

£000
Year ended
31
December
2012

£000

Profit attributable to equity holders of the Company	1,205		629		1,930
Weighted average number of ordinary shares in issue (thousands)	28,829		29,222		29,620
Adjustment for share options (thousands)	178		1,071		776
Weighted average number of ordinary shares for diluted earnings per share (thousands)	29,007		30,293		30,396

Diluted earnings per share in pence 4.15 2.08 6.35

Headline basic
Headline basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company plus the amortisation of intangible assets by the weighted average number of ordinary shares in issue during the period.
Six months ended 30
June 2013
£000
Six months ended 30
June 2012
£000
Year ended
31
December
2012
£000

Profit attributable to equity holders of the Company	1,205		629		1,930
Amortisation of intangibles (after deduction of tax)	155		233		1,577
Acquisition costs Unwinding of discount relating to contingent consideration liability (after deduction of tax)	- 44		- 98		59 165
Contingent consideration adjustment	-		-		(534)
Headline profit attributable to equity holders of the Company	1,404		960		3,197
Weighted average number of ordinary shares in issue (thousands)	28,829		29,222		29,620
Headline basic earnings per share in pence	4.87		3.28		10.79

Dividends
During the first six months of 2013 Motivcom plc paid a final dividend in respect of 2012 of £903,000 to its equity shareholders (2012: £835,000). This represents a payment of 3.00 pence per share (2012: 2.85 pence).
6 Share-based payments
The Group has seven contracted share option schemes, comprising those disclosed in the Group's most recent financial statements and a Sharesave Scheme introduced on 3 June 2013. The following options have been valued in accordance with the provisions of IFRS 2.

	Date of original	Number of	Option	Vesting	Life of
Scheme	grant	options	price	conditions	option	Fair Value
EMI Option Scheme	21/11/2005	31,746	£0.945	3 Years	10 Years	£0.11
Sharesave Scheme 6	28/05/2010	72,369	£0.655	3 Years	3 Years	£0.24
Sharesave Scheme 7	02/06/2011	56,578	£1.14	3 Years	3 Years	£0.42
Sharesave Scheme 8	01/06/2012	283,585	£0.745	3 Years	3 Years	£0.14
Sharesave Scheme 9	03/06/2013	200,865	£0.855	3 Years	3 years	£0.08
CSOP	23/01/2009	90,000	£0.33	3 Years	10 Years	£0.11
				Each £20m growth in

http://www.londonstockexchange.com/exchange/news/market-news/market-news-det...

26/09/2013

Interim Results - London Stock Exchange

Page 10 of 11

C T Lloyd Option Scheme 21/06/2007 617,425 £0.005 market value 10 Years £0.12
The fair value of services received in return for share options granted to employees is measured by reference to the fair value of share options granted. The estimate of fair value of the services received is measured based on a binomial lattice model for the EMI, CSOP and Sharesave Schemes and a Monte Carlo model for the C T Lloyd Option Scheme. The vesting period is used as an input to those models.
The following additional assumptions were used for the EMI Option Schemes and the CT Lloyd Option Scheme:
- Expected volatility of 24% based on the average volatility of the Company since flotation in August 2004
- A dividend yield of 1.20%
- Risk free interest rate of 5.31%
The following additional assumptions were used for CSOP:
- Expected volatility of 62% based on the average volatility of the Company since flotation in August 2004
- A dividend yield of 4.79%
- Risk free interest rate of 2.49%
The following additional assumptions were used for Sharesave Scheme 6:
- Expected volatility of 63% based on the average volatility of the Company since flotation in August 2004
- A dividend yield of 3.07%
- Risk free interest rate of 1.64%
The following additional assumptions were used for Sharesave Scheme 7:
- Expected volatility of 62% based on the average volatility of the Company since flotation in August 2004
- A dividend yield of 2.32%
- Risk free interest rate of 1.06%
The following additional assumptions were used for Sharesave Scheme 8:
- Expected volatility of 38% based on the average volatility of the Company since flotation in August 2004
- A dividend yield of 4.37%
- Risk free interest rate of 0.34%
The following additional assumptions were used for Sharesave Scheme 9:
- Expected volatility of 35% based on the average volatility of the Company since flotation in August 2004
- A dividend yield of 4.00%
- Risk free interest rate of 0.71%
7 Intangible assets
Goodwill
Six months ended 30
June 2013
£000
Six months ended 30
June 2012
£000
Year ended
31
December
2012
£000
Balance at beginning of period 21,999

22,020

22,020

Acquired through business combination

- - 641

Amortisation and impairment - - (662)

Balance at end of period 21,999 22,020 21,999
Other intangibles
Balance at beginning of period 1,650 3,063 3,063

Acquired through business combination - - - Amortisation and impairment (202) (310) (1,413) Balance at end of period 1,448 2,753 1,650
Total
Balance at beginning of period 23,649 25,083 25,083
Acquired through business combination - - 641
Amortisation and impairment (202) (310) (2,075)

Balance at end of period 23,447 24,773 23,649
8 Acquisitions
The Group did not make any acquisitions during the period, nor in the six months ended 30 June 2012.
9 Share Capital
On 15 April 2013 the Company purchased 3,010,181 of its own shares at a price per share of 110 pence for a total cost of
£3,311,000 by means of a Tender Offer to all shareholders. Additionally, costs of £36,000 were incurred. The shares were immediately cancelled on 15 April 2013 and £15,000 transferred from share capital to capital redemption reserve.
On 10 May 2012 the Company made an on market purchase of 100,000 of its own ordinary shares at 90 pence per share and placed the shares in Treasury.
10 Fair value hierarchy

http://www.londonstockexchange.com/exchange/news/market-news/market-news-det...

26/09/2013

Interim Results - London Stock Exchange

Page 11 of 11

IFRS 7 Improving Disclosures about Financial Instruments requires the Group to present certain information about financial instruments measured at fair value in the balance sheet. At 30 June 2012 and 30 June 2013 the only financial instruments measured at fair value through profit and loss were contingent consideration. The fair value is estimated using a valuation technique. Significant inputs into the model are based on management's assumptions of the cash outflow and appropriate discount rates. The fair value measurements in respect of deferred consideration are classified as level 3 in the fair value hierarchy as inputs for the asset or liability are not based on observable market data (unobservable inputs).
The losses (after deduction of tax) recognised in profit and loss account are disclosed in the table for headline basic earnings per share in Note 5.

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR FMGZLLKLGFZG

CLOSE

FINANCIAL PUBLICATIONS PROVIDED BY DIANOMI

Free Annuity Calculator

You could get up to 40% more pension income during your retirement

Use our Calculator

Stock Tip Report

Which heavyweight of the FTSE 100 is set to climb?

Download Free Report

Day Trade Shares

Discover the Professional Secrets of

Day Trading

Download Free Report

London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.

©2013 London Stock Exchange plc. All rights reserved

Regulatory

http://www.londonstockexchange.com/exchange/news/market-news/market-news-det...

26/09/2013