Slide 1: Annual Results Presentation
Annual Results Presentation Full Year Ended 31 December 2021 30 March 2022
Slide 2: Executive Summary
Executive Summary • Strong recovery from 2020 • Revenue and profitability slightly ahead of management expectations • Supported by healthy new business performance, growth of existing clients, and prudent cost control • Digital revenue and profit contribution ahead of plan • Growth in all regions an
Slide 3: Financial Overview
Financial Overview 3 Delivering on the Strategy
Slide 4: Group Income Statement Summary
FINANCIAL OVERVIEW Group Income Statement Summary Summary results(1) Financial Highlights 2021 2020 Change • Revenue up £7.2 million to £63.1 million, up 13% (FY20: £55.9 million), reflecting strong business momentum across all regions and business segments Income statement underlying(2) Revenue £63
Slide 5: Balance Sheet Summary
FINANCIAL OVERVIEW Balance Sheet Summary Balance Sheet 2021 2020 • Goodwill and intangibles: reduced by £0.4m £m £m • Non-current assets include IFRS 16 “Right-of-use Goodwill 28.2 28.6 asset” of £4.5m (2020: £6.2m) reduced in line with lease period remaining Other intangible assets 4.5 6.1 • Net wo
Slide 6: Cash Flow Statement
FINANCIAL OVERVIEW Cash Flow Statement Cash Flow (includes highlighted items) 2021 2020 £m £m • Cash inflow from operations of £11.8m Cash generated from operations 11.8 5.8 including highlighted items Interest and Tax (3.1) (2.8) • Underlying cash inflow from operations of Net cash generated from o
Slide 7: New RCF Facility in place
FINANCIAL OVERVIEW New RCF Facility in place 31 December 31 December • New bank loan facilities agreed in March 2022 for Liquidity 2021 2020 initial 3 year period extendable for up to 2 years £m £m • Total RCF increased to £30 million from £24 million Gross debt (18.0) (19.0) • Barclays and NatWest
Slide 8: Segmental Analysis
FINANCIAL OVERVIEW Segmental Analysis Revenue 2021 2020 Change £m £m £m % Media 52.8 46.0 6.8 15% Analytics and Tech 10.3 9.9 0.4 4% Total 63.1 55.9 7.2 13% Operating Profit Operating Profit 2021 2020 Change Margin % £m £m £m £m 2021 2020 Media 10.1 6.8 3.3 48% 19% 15% Analytics and Tech 1.4 (0.7) 2
Slide 9: Progress against strategy
Progress against strategy 9 Delivering on the Strategy
Slide 10: Media market growth opportunities
PROGRESS AGAINST STRATEGY Media market growth opportunities • Strong growth in global advertising markets • Digital the dominant communications channel • New channel dynamics – strong growth in e-retail media advertising spend • Advanced TV reaching critical mass in the US, and establishing in sever
Slide 11: Strategy
PROGRESS AGAINST STRATEGY Strategy • Increase revenue from digital services by developing productised data solutions • Build higher value strategic relationships with major customers • Improve operational efficiency • Strengthen the business in North America and Asia Pacific 11 Delivering on the Str
Slide 12: Product: digital solutions performing ahead of expectations
PROGRESS AGAINST STRATEGY Product:- digital solutions performing ahead of expectations • Seven data-led product solutions for analysing digital media now in market • Revenue growth of 260% to £3.7m at 51% operating margin • Operational KPIs ahead of plan o Number of clients buying digital products u
Slide 13: Clients: strong progress in development of higher value strategic clients
PROGRESS AGAINST STRATEGY Clients:- strong progress in development of higher value strategic clients • Revenue from higher value strategic clients considerably ahead of expectations • Addition of three new Global Client Partners adds to bench strength of strategic customer management and broadens ge
Slide 14: Operational efficiency: continuous improvement
PROGRESS AGAINST STRATEGY Operational efficiency:- continuous improvement • Near-shore Media Operations Centre on plan, supporting 15% more projects than prior year • Guatemala addition to Media Operations Centre to better service US time zone now operational • Improved process automation the US Med
Slide 15: Geographic development: strengthening North America and Asia Pacific
PROGRESS AGAINST STRATEGY Geographic development:- strengthening North America and Asia Pacific • New Managing Directors recruited in January in the US and China • Good new business performance • US - large global FMCG becomes top 3 client; global tech leader – including digital product solutions; l
Slide 16: Operational metrics
PROGRESS AGAINST STRATEGY Operational metrics 31 Dec 2020 31 Dec 2021 # clients buying 2+ Service Lines 58 76 # clients buying 1 or more products from the new digital solutions portfolio 10 28 Volume of digital advertising analysed on the platform – impressions 112 bn 639 Value of digital advertisin
Slide 17: MediaPath Network AB: Acquisition of a Swedish-based multi-national media consultancy
MediaPath Network AB Acquisition of a Swedish-based multi-national media consultancy Delivering economies of scale and greater efficiencies Group-wide Overview Financial highlights(1) • Technology enabled multi-national media consulting company specialising Year ended 31 Dec 2021 in agency selection
Slide 18: Media Management, Inc.: Acquisition of a US-focused media audit specialist
Media Management, Inc. Acquisition of a US-focused media audit specialist Accelerating growth in the US, the world’s largest market Overview Financial highlights(1) • US media audit company providing clients with transparency and accountability of their media investments, and agency performance Year
Slide 19: Outlook
FULL YEAR RESULTS 2021 Outlook • Trading is currently in line with the Board’s expectations • The geopolitical environment has not yet impacted client activity • The two acquisitions will accelerate the company’s progress in executing our strategy • Increase scale in the US • Facilitate improved ope
Slide 20: Summary
FULL YEAR RESULTS 2021 Summary • Strong recovery in 2021 • All regions and business units returned to growth • Revenue growth and profit contribution from new Digital Media Solutions ahead of plan • Development of higher value strategic clients also ahead of plan • Acquisitions to accelerate transfo
Slide 21: Appendix
Appendix 21 Delivering on the Strategy
Slide 22: Highlighted Items
APPENDIX Highlighted Items Highlighted items 2021 2020 £m £m Digital Decisions: post date remuneration 7.9 - Share based payments 0.5 (1.9) • £7.9m accrual for Digital Decisions post- Purchased intangible asset amortisation 1.1 1.1 date remuneration: calculated as 2/3rd of Professional costs incurre