REG-Infoserve Group PLC AGM Statement

Released: 17/09/2009

com:20090917:RnsQ1904Z
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RNS Number : 1904Z  
  
Infoserve Group PLC  
  
17 September 2009  
  
Infoserve Group plc  
  
AGM Statement  
  
Infoserve Group plc ("Infoserve" or the "Company"), a leading online local 
search marketing specialist, will be holding its Annual General Meeting at 10.00 
am today.  
  
James Newman, Chairman, will provide the following trading update:-  
  
"The unaudited results for the five months ended 31 August 2009 reflect the 
continued improvement in the Group's performance. Top line sales* increased from 
£2,112k in the five months ended 31 August 2008 to £2,514k, an increase of 19%, 
whilst gross profit* increased from £654k to £860k (+32%). Continued tight 
control of administrative costs contributed to an £8k EBITDA* profit from a loss 
of £330k in the comparable period last year. An EBIT* loss of £80k for the five 
months showed a reduction from a £458k loss in 2008.  
  
(* Excludes IAS 18 revenue recognition adjustment of (£95k) 2009 and +£54k 2008. 
The IAS 18 accounting adjustment spreads sales evenly over the life of the 
directory listing as opposed to top line sales which refers to cash received in 
any such period.).  
  
Productivity per sales executive for the period was maintained at last year's 
record level of £23k despite a major recruitment campaign, which would normally 
be expected to reduce productivity because of the higher percentage of less 
experienced sales staff.  
  
Cash inflow from trading activity (excluding working capital fluctuations) for 
the first five months of the financial year was £8k. Ongoing capital expenditure 
remains under tight control and was kept at £18k for the period. The Group has 
met all its deferred payment obligations to HMRC and the PAYE element has now 
been settled in full.  
  
Performance over the last three months has shown further continued improvement, 
with cash generated from trading averaging £26k per month. Once again, the 
impact of the IAS18 revenue adjustment means that cash generation exceeds 
reported EBITDA by some £38k per month.  
  
As Group revenues grow, so the available renewal revenues increase (over 50% of 
revenue still comes from renewals). The Group also expects the current trend of 
growing new business sales to be maintained and, therefore, revenues to continue 
to improve. During July and August, the traditionally quiet holiday season, 
average sales per day reached new historic highs. The Group expects daily 
revenues to continue to increase in the traditionally busy pre-Christmas 
period."  
  
For further information, please contact:  
  
 
  Infoserve Group plc                            www.infoservegroup.com   
  Steve Barnes, Chief Executive                                           
  steve.barnes@infoserve.com                     Tel:  0113 238 6200      
                                                                          
  Jonathan Simpson, Interim Finance Director                              
  jonathan.simpson@infoserve.com                 Tel: 0113 238 6200       
                                                                          
  Nominated Adviser                                                       
  WH Ireland Limited                                                      
  Robin Gwyn                                     Tel:  0161 832 2174      
  
  
 
This information is provided by RNS  
  
The company news service from the London Stock Exchange  
  
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