John Menzies acquires Orbital Marketing Services

November 29, 2012 — Fusion DigiNet

John Menzies plc subsidiary Menzies Distribution has acquired Orbital Marketing Services Group Limited for £13.6 million.  Orbital was 51% owned by BP Direct Mail Company Limited and 49% by Rydlings Limited, whose shareholders comprise the existing management team who will remain with the business.

Orbital comprises a portfolio of UK based logistics and marketing services businesses serving the travel, tourism, education, charity, publishing and healthcare sectors. The company was established in 1972 and it employs over 550 staff at 9 locations across the UK.

For the year to March 2012 Orbital reported an operating profit of £2.2m and gross assets of £13.5m.

Menzies are paying a total of £13.6 million with £7.7 million payable now and a further £5.9 million payable on 31 December 2014. Further consideration, up to a maximum of £6.3m may be payable only if exceptionally high levels of profit performance were to be achieved by December 2014.

Iain Napier, Chairman of John Menzies plc, said, “I am delighted that Menzies Distribution has acquired Orbital. This acquisition allows us to expand our printed media distribution footprint whilst also taking a large stride into adjacent growth areas. The team are now focussed on integrating these new businesses and driving through the significant synergies that have been identified. Orbital opens up new opportunities for us. The combined network will bring new reach to our logistical capabilities and allow us to expand some of Orbital’s services into new areas.”

UK, Edinburgh, Scotland & Asford, Kent

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Creston acquires DJM Digital Solutions

November 29, 2012 — Fusion DigiNet

Creston plc has acquired 75 per cent of the share capital of DJM Digital Solutions Ltd, a UK-based digital healthcare agency for up to £1.8 million. DJM’s founder, Dominic Marchant who will remain as Managing Director.

£1.2 million is being paid in cash. Net current assets of £0.3 million is retained within DJM. There will be a final cash payment based on average profit to March 2015 of up to £1.8 million which will be payable in June 2015. From April 2018 onwards the minority shareholders in DJM will have a request to put option and from April 2020 onwards Creston will have a call option, both options are for the remaining 25 per cent of DJM for a maximum consideration of £2.4 million.

For the financial year ended 31 July 2012, DJM’s unaudited statutory accounts reported revenues of £0.6 million and a pro-forma profit before taxation of £0.2 million, including a normalised shareholder Managing Director salary. As at 31 July 2012 DJM had net assets of £0.5 million.

Creston’s Health division and DJM have had a successful trading relationship for the past year and already have many clients in common (including AstraZeneca, Abbott and Takeda) at a UK, European and global level.  Recent collaborations between DJM and Creston Health have already led to new client work with Leo Pharma, UCB and Pfizer.

Based in Richmond, Surrey, and founded in 2001 with the aim of creating digital technology solutions for the healthcare and pharmaceutical industries, DJM employs 26 professionals with a broad spectrum of capabilities.

Commenting on the acquisition, Don Elgie, Group Chief Executive of Creston plc, said: “The healthcare industry has historically been very cautious about the use of digital marketing in light of the tight regulatory environment in which it operates. However, the rapid uptake of smartphones and tablets among physicians is revolutionising work practices and the pharmaceutical industry is having to adapt its marketing communications accordingly.

“In the UK, in an industry where digital has been adopted quite late compared to other business sectors, DJM is one of the largest and most respected independent digital healthcare agencies. Working with our other health companies, as part of Creston Health, we are confident that DJM will facilitate the continued growth of the division as digital becomes an ever-more significant element of our clients’ and prospective clients’ briefs.”

UK, London & Richmond, Surrey

 

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DMGT preliminary results – pre-tax profits up 64%

November 27, 2012 — Fusion DigiNet

Daily Mail and General Trust has reported its unaudited preliminary results for the year ended 30 September, 2012.

Total pre-tax profits rose 64% to £206.3 million. This included more than £100 million in charges and £150m in profits from disposals. Total revenues dropped by 1% to £1.96 billion.

MailOnline enjoyed a strong year of growth, recording a 74% increase in revenue to £28 million.

Northcliffe Media was the biggest surprise, contributing operating profit of £26 million (2011: £17 million) from revenues of £213 million (2011: £236 million).

Northcliffe Media, which is being sold to Local World venture, had reported a 37% fall in profits in 2011.

Martin Morgan, Chief Executive, said, “DMGT has delivered a good set of results in the 12 months to 30 September. Group adjusted pre-tax profits* rose by 10%. Our international B2B companies have increased their revenues and profits* by 7% and 8% respectively on an underlying# basis. Although our UK consumer businesses were impacted by challenging trading conditions, it was particularly pleasing that Associated was able to grow its revenues by 2% on an underlying# basis and that underlying# profits* for the consumer businesses rose 12% – reflecting greater productivity and efficiency linked to continued digitisation in that division.

We continued to refine our portfolio of businesses during the year with further acquisitions and disposals aimed at improving our long term growth potential. Today we are a more focused and financially stronger Group, leaving us well positioned for 2013 and beyond.”

Read the full announcement here.

UK, London

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Future Plc preliminary results – earnings boosted by digital growth

November 27, 2012 — Fusion DigiNet

Future plc has reported a rise in 2012 earnings with a 26% increase in operating profit to 6.8 million pounds. Revenue was down 13% to £123.5 million.

Digital growth was particularly strong. Group digital revenues were up 30% to £20.6m, with digital advertising accounting for 44% of total advertising. Visits to Future websites were up 70%, to more than 50m global unique users per month.

Mark Wood, Future’s Chief Executive, said: “This has been a year of substantial progress for Future and the Group is now well positioned to grow and diversify revenues as a global digital business. Our US operations have been restructured and are heading for profit in 2013. We are a leading publisher in tablet markets and our online audience has grown by 70% to more than 50 million unique users a month. These advances are opening new opportunities and we will accelerate Future’s digital transformation in the year ahead.”

UK, London

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Local World to acquire the regional publishing assets of Northcliffe and Iliffe

November 21, 2012 — Fusion DigiNet

Local World, a newly formed company, is acquiring the regional publishing assets of the Northcliffe and Iliffe businesses and will have an agreed enterprise valuation of circa £100 million at completion. On a pro forma basis, Local World would have reported revenues of £273 million and operating profit of £21 million for the twelve months ended 30 September 2011, and would have had gross assets of £38 million at that date.

Key terms:

  • DMGT will to sell Northcliffe Media, its regional newspaper business for £52.5m in cash and a 38.7% shareholding in Local World. For the financial year ended 30 September 2011, Northcliffe Media had gross assets of £32m and made an operating profit of £17m.
  • The Iliffe family, owners of Yattendon Group, will sell Iliffe News & Media to Local World in exchange for a 21.3% shareholding in the new business.
  • Trinity Mirror will acquire a 20% shareholding in Local World for £14.2 million.
  • The remaining Local World shares will be purchased by other investors including Artefact Group, an Investment Fund associated with Lord Ashcroft, and Odey Asset Management.
  • Steve Auckland, currently Chief Executive of Northcliffe, will become CEO of Local World. Rachel Addison, Group Finance Director of Northcliffe, will assume the same role at the new company alongside a board of directors drawn from the main shareholders. The company will be chaired by David Montgomery.

Local World will become the fourth-largest regional newspaper publisher in the UK, with more than 107 print titles and 60 websites. DMGT will contribute more than 80 titles to the new venture, with another 36 coming from Iliffe News & Media.

Auckland said: “Local World will be a comprehensive local content provider, offering the best and most trusted source of news, views and advertising in print, online and mobile, to its local audiences in the UK. The new company will be well-resourced, entrepreneurial, and able to respond quickly to the differing requirements of local communities.”

Local World, with a combined weekly newspaper audience of 6 million readers and 7 million online users, aims to revitalise local media by offering fully integrated print and digital media services that focus on relevant content, advertising and local services across the UK.

The combined product portfolio of 63 local portal websites has a monthly audience of over seven million unique users. The print business includes 16 daily titles, 36 paid weeklies, 40 free weeklies, two Metro franchises and a number of niche products including magazines. Famous brands include the Cambridge Evening News, Leicester Mercury and Hull Daily Mail. The combined print portfolio has a weekly reach of six million people.

UK, London

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Aegis Media acquires Netsociety

November 19, 2012 — Fusion DigiNet

Aegis Group plc has acquired Netsociety, a performance and search agency in the Netherlands and Belgium.

Netsociety, with offices in Amsterdam and Brussels, is a specialist performance marketing agency whose focus is on search marketing and digital performance media. Established in 2007, Netsociety has built a fast-growing business, with a diverse client base including Thomas Cook, ING, ABN AMRO and KLM.

The combination of Netsociety and iProspect will form a leading performance marketing agency in the Netherlands. Netsociety’s expertise and client base strengthens Aegis Media’s market position and is expected to generate the benefits of greater scale in the Netherlands and Belgium.

Julius Minnaar, CEO of Aegis Media Netherlands, said: “We are delighted to be acquiring Netsociety, which will enhance the prospects of our business in the Dutch and Belgian markets, ensuring we continue to produce outstanding work for our clients there. We welcome the Netsociety team into the fold and look forward to working with our new colleagues to leverage the exciting opportunities this acquisition will bring to our business in the Netherlands.”

UK, London & Netherlands, Amsterdam & Belgium, Brussels

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Axel Springer Digital Classifieds acquires majority of property portal Immoweb in Belgium

November 16, 2012 — Fusion DigiNet

Axel Springer Digital Classifieds, the company founded by Axel Springer and global growth investor General Atlantic as part of a strategic partnership in Spring 2012, has acquired 80 % of the shares of the Belgian property portal Immoweb from members of the Rousseaux family and Produpress S.C.A. The purchase price comes to €127.5 million. Christophe Rousseaux, who will continue to manage Immoweb as CEO, and two other family members retain a 20 % share in the company.

IMMOWEB S.A. was founded in 1996 and operates the leading Belgian property portal. Every month more than 2.4 million unique visitors use Immoweb’s platform.

Axel Springer’s online classifieds business is bundled into Axel Springer Digital Classifieds GmbH, with Axel Springer holding a 70 % share and General Atlantic holding a 30 % share in this company. Along with the European job portal StepStone Group and UK-based job portal Totaljobs, the French property portal SeLoger, the German property portal Immonet and the German city portal meinestadt.de also form part of Axel Springer Digital Classifieds.

Germany, Berlin & Belgium, Brussels

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Euromoney Institutional Investor Plc announces annual results

November 15, 2012 — Fusion DigiNet

Euromoney Institutional Investor Plc has announced annual results to September 2012

Highlights

Euromoney Institutional Investor PLC, the international online information and events group, achieved a record adjusted profit before tax of £106.8m for the year to September 30 2012, against £92.7m in 2011.  Adjusted diluted earnings a share were 65.9p (2011: 56.1p).  The directors recommend an 18% increase in the final dividend to 14.75p, giving a total for the year of 21.75p (2011: 18.75p), to be paid to shareholders on February 14 2013.

Total revenues for the year increased by 9% to £394.1m.  Underlying revenues, excluding acquisitions, increased by 3%.  The acquisition of Ned Davis Research (NDR) in August 2011 has helped increase the proportion of revenues generated from subscriptions to more than 50% for the first time.  Headline subscription revenues increased by 17% to £199.7m and underlying subscriptions, excluding NDR, by 5%.

The adjusted operating margin was unchanged at 30%.  Costs, particularly headcount, have remained tightly controlled throughout the year.  At the same time, the group has increased its investment in technology and new products as part of its online growth strategy.

Net debt at September 30 was £30.8m compared with £88.5m at March 31 and £119.2m at September 30 2011.  In the absence of any significant acquisitions, net debt has fallen by £88.4m since the start of the year, reflecting the group’s strong cash flows and an operating cash conversion rate* in excess of 100%.  The group’s net debt is now at its lowest level for more than a decade and its robust balance sheet provides plenty of headroom for the group to pursue its acquisition strategy.

As highlighted in previous trading updates, market conditions became noticeably tougher from June.  The uncertainty over Europe remains, as does a solution to the pending US fiscal cliff.  Meanwhile global financial institutions face the combined challenges of difficult markets, increased capital requirements and a tougher regulatory environment.  Inevitably they have responded by cutting costs, particularly people, and exiting some parts of their business.  However, the outlook for emerging markets, which account for more than a third of the group’s revenues, is more positive. The board expects this challenging trading background to continue at least into the early part of 2013.

Commenting on the results, chairman Richard Ensor said: “The record results for the year reflect the challenging market conditions as well as the successful implementation of our strategy.  Investment in online information businesses and emerging markets has created a global portfolio with a resilient business model.  Subscription revenues now account for more than 50% of group revenues, and more than a third of our revenues is derived from emerging markets. In 2013, we will continue to invest in our products to ensure that we are well placed to benefit from any improvement in the global economy.”

Read the full announcement here

UK, London

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Permira acquires Ancestry.com for $1.6 billion

November 14, 2012 — Fusion DigiNet

According to the Wall Streert Journal, European private-equity firm Permira is buying genealogy website Ancestry.com for $1.6 billion.

Ancestry.com has more than two million subscribers who pay at least $12.95 a month for its content and online tools. The purchase price is $32 a share and it includes vesting of outstanding options. The price is a 40 percent premium from the price when word of the company being offered for sale surfaced in June. As a result of the deal, Ancestry.com will carry  ”just under $1 billion” in debt.

The buyout group includes the private-equity firm’s co-investors; members of Ancestry.com’s management, including Chief Executive Tim Sullivan and Chief Financial Officer Howard Hochhauser; and Spectrum Equity, which owns about 30 percent of Ancestry.com.

USA, Utah & UK, London

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WPP’s GroupM acquires a majority stake in Netbooster Asia

November 13, 2012 — Fusion DigiNet

WPP’s wholly owned operating company, GroupM, WPP’s global media investment management arm, is to acquire a majority stake in NB Agency Asia Holding Limited (“Netbooster Asia”), the Hong Kong holding company of digital marketing agencies in the Philippines and Indonesia, subject to regulatory approval.

Founded in 2007 and based in Manila and Jakarta, Netbooster Asia is a digital marketing agency offering media, production and creative services. The agency employs around 110 people and clients include Unilever, L’Oreal, Del Monte, Globe, BDO, Wyeth and Intel. This acquisition will see Netbooster rebrand in the Philippines as Movent. In Indonesia, the agency will be consolidated into GroupM’s digital offering.

Netbooster Asia’s unaudited revenues for the year ended 31 December 2011 were approximately US$2.4 million, with gross assets at the same date of approximately US$2.4 million.

London, UK & the Philippines & Indonesia

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