IENERGIZER LIMITED Interim Statement September 2015
www.ienergizer.com
('iEnergizer' or 'the Company')
iEnergizer is pleased to announce its Interim Results for the six months ended 30 September 2015. iEnergizer is a digital publishing and technology leader, which benefits from the dual disruptive waves of big data and the cloud. The present structure of the group combines a well-established, high growth, business process solution enterprise with a leading provider of end-to-end digital transformation solutions to the media and publishing industries.
Revenues of $68.9m (H1 2015: $76.1m)
Adjusted EBITDA1 $16.6m (H1 2015: $14.9m)
Adjusted EBITDA1 margin at 24.1% (H1 2015: 19.6%)
Operating profit $13.7m (H1 2015: $9.8m)
Operating profit margin at 19.9% (H1 2015: 12.9%)
Cash and cash equivalents of $7.7m (31 March 2015: $13.5m)
Term Debt of $94.0m (31 March 2015: $109.0m). The Company is compliant of all applicable financial covenants including on-time payments of loan instalments and interest.
(1) Non-recurring expenses relate to one off costs of US$ 0.3mn for professional charges.
Operational HighlightsFocus on profitable growth
Delivered 40% improvement to operating profit ($13.7m H1 2016,
$9.8m H1 2015)
Implementation of further best practices and leaner processes throughout the Content services division
Ensured return to profit in the division, with improved segment operating margin (16.8% H1 2016, -6.7% H1 2015)
Decline in aggregate revenue in project-driven content services, as expected ($39.7m H1 2016, $45.1m H1 2015)
Successful completion of a digital solutions project, including digitization of a sophisticated online library, impacted revenue by
$3.3m
Reduction in financial publishing, in line with reduced workflow, reduced revenues by $2.1m
Sustainable long term growth prospects for content services division
World economy's irreversible shift to the digital sphere
iEnergizer provides cutting edge technology for clients
Confident outlook of returning to the previous growth trajectory in FY 2017
High level of customer demand for social engagement and digital products, particularly in the focused verticals of education and professional publishing, and enterprise learning and development
Real Time Processing ('RTP'): Continued strong revenue growth, of 10.4%
Back Office Services: Tough comparable period in Back Office Services ('BOS') due to a one-off project
Expectation to resume growth momentum in this division
Focused cost saving initiatives increased EBITDA and operating profit margins:
Running a leaner organization using technology effectively and optimising utilization of the Company's resources
Consolidation of the content services division into the Company's low cost effective operations centre in Noida, India
Rationalizing SG&A costs including leveraging the Company's US based sales team for generating sales pipeline and cross-selling opportunities for all the business verticals of the Group
Continued focus on recurring revenue streams from business critical processes and long term customer relationships.
'Following the management actions to consolidate our operations in the prior year, we are pleased with the performance in the first half of this financial year, demonstrated by the better operating margins achieved.
'The Company's healthy cash position, together with its cash generative business model, puts the Company in a strong position to invest in both organic and inorganic growth opportunities.
'We expect current trends to continue with full year revenues in line with last year and an improvement in underlying operating margins. We believe there is significant opportunity for us to continue to expand the business further using this approach.'
iEnergizer Ltd. Chris de Putron Mark De La Rue | +44 (0)1481 242233 |
FTI Consulting - Communications adviser Edward Westropp, Jonathon Brill, Eleanor Purdon | +44 (0)20 3727 1000 |
Arden Partners-Nominated adviser and broker Steve Douglas, Patrick Caulfield | +44 (0)20 7614 5900 |
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