REG - Brave Bison Grp PLC - Half-year Report
09/09/2024 07:15
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RNS Number : 3301D Brave Bison Group PLC 09 September 2024
The information contained within this announcement is deemed by the Company to
constitute inside information pursuant to Article 7 of EU Regulation 596/2014
as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 as amended. Upon the publication of this announcement
via a Regulatory Information Service, this inside information is now
considered to be in the public domain.
9 September 2024
Brave Bison Group plc
("Brave Bison" or the "Company", together with its subsidiaries "the Group")
Interim Results
20% increase in adjusted profit before tax
FY24 trading ahead of market expectations
Brave Bison, the digital advertising and technology services company, today
reports its unaudited interim results for the six months ended 30 June 2024.
Commenting on the results, Oliver Green, Executive Chairman, said:
"We are pleased to report strong trading in the first half of the year and
expect momentum to build as we approach the last few months of FY24. With adj.
EBITDA of £2.1m in H1, an increase of 20% YoY, we expect to deliver results
ahead of market expectations. Our business plan of buying, integrating and
growing digital advertising and technology services businesses continues to
show traction and we look forward to updating shareholders with further
progress at the end of the year."
Financial Highlights
Unaudited H1 2024 H1 2023 Change FY23
Net Revenue / Gross Profit £10.1m £10.0m +1% £20.9m
Adj. Net Revenue ((1)) £10.0m £9.3m +7% £19.5m
Adj. EBITDA ((2)) £2.1m £1.9m +12% £4.3m
Adj. Profit Before Tax ((3)) £1.8m £1.5m +20% £3.6m
Adj. Basic EPS ((4)) 0.14p 0.12p +17% 0.29p
Profit Before Tax £1.2m (£0.2m) n/a £1.1m
Net Cash excl. Lease Liabilities £6.8m £4.3m +57% £6.8m
Small apparent errors due to rounding
(1) Adj. Net Revenue excludes net revenue from mothballed operations
(2) Adj. EBITDA is defined as earnings before interest, taxation,
depreciation and amortisation, and after adding back acquisition costs,
restructuring costs and share-based payments. Under IFRS16 most of the costs
associated with the Company's property leases are classified as depreciation
and interest, therefore Adj. EBITDA is stated before deducting these costs.
(3) Adj. Profit Before Tax is stated after adding back acquisition costs,
restructuring costs, impairments, amortisation of acquired intangibles and
share-based payments, and is after the deduction of costs associated with
property leases.
(4) Adj. Profit Before Tax divided by the weighted average number of
ordinary shares in issue
· Adj. EBITDA of £2.1m (H1 2023: £1.9m) and Adj. Profit Before
Tax of £1.8m (H1 2023: £1.5m), a year-on-year increase of 12% and 20%,
respectively
· Net revenue / gross profit of £10.1m (H1 2023: £10.0m)
· Brave Bison did not renew a number of large, low margin /
loss-making client contracts serviced from New York and has mothballed
operations in the US. Excluding these mothballed operations, net revenue grew
by 7% year-on-year on a like-for-like basis
· Statutory profit before tax of £1.2m (H1 2023: loss of £0.2m).
Exceptional costs associated with the acquisition, restructuring and
integration of SocialChain were mostly contained in FY23
· Net cash, excluding lease liabilities, of £6.8m at 30 June 2024
(31 December 2023: £6.8m, 30 June 2023: £4.3m), an increase of 58%
year-on-year and flat over the period. Cash inflow of at least £2m is
expected in H2 2024 as a result of large customer receipts and higher trading
profits
· Adj. basic EPS for the period of 0.14p (H1 2023: 0.12p), a 17%
increase year-on-year. There was no material share issuance during the period
Strategic Highlights
· Brave Bison won and onboarded a record 15 new clients during the
period, including SharkNinja, Primark, Sony Pictures, Yours Clothing, Greene
King, Seasalt Cornwall, Reed, HSS and The Travel Corporation
· As announced in June 2024, the Board chose not to proceed with an
offer for The Mission Group plc. Abort costs from the potential transaction
amounted to £33k
· Launch of AudienceGPT, a tool that uses artificial intelligence
to create audience data for media planning. Take up from new and existing
clients has been encouraging
· Launch of FutureFit, a new consultancy offering that brings
together talent and capabilities from Brave Bison Performance, Commerce and
SocialChain to build custom solutions combining media, creative and technology
to drive client growth
· Consolidation of office property into two principal locations
across London and Manchester. Brave Bison has entered into two new leases with
lower occupational costs and minimal capex incurred
· Organised four live in-person events with hundreds of attendees
during the period: two editions of SocialMinds Live, a conference for social
media marketers; the UK's first Composable Commerce Summit, an event for
technology partners and clients building ecommerce systems; and AudienceGPT at
MAD//Fest, the debut of our new technology product at a media and advertising
conference
Trading Update & Outlook
· The Board expects to exceed current market forecasts ((1)) for
FY24 as a result of better than anticipated trading at Brave Bison Performance
and increased profitability at SocialChain
· Net cash is expected to increase to at least £9m by year end
(1) Cavendish Capital Markets research dated 22 July 2024. FY24 net
revenue of £21.0m, Adj. EBITDA of £4.2m and Adj. PBT of £3.2m
For further information please contact:
Brave Bison Group plc
Oliver Green, Executive
Chairman
via Cavendish
Theo Green, Chief Growth Officer
Philippa Norridge, Chief Financial Officer
Cavendish Capital
Markets
Tel: +44 (0) 20 7220 0500
Nominated Adviser & Broker
Ben Jeynes
Dan Hodkinson
About Brave Bison
Brave Bison (AIM: BBSN) is a media, marketing and technology company purpose
built for the digital era. Headquartered in London with a globally distributed
work across eight countries, the company's unique position as both a digital
media owner and a marketing technology partner to brands allows it to own and
operate its own channels and communities while providing clients with a
comprehensive suite of advertising and technology services to reach digital
audiences.
Brave Bison's clients are serviced through four practices: Brave Bison
Performance, Brave Bison Commerce, Brave Bison Media Network and Social Chain.
Each is an industry leader in its field, providing digital advertising,
technology, creative and commerce services to renowned global brands such as
New Balance, Shark Ninja, and Linkedin. These practices work independently and
together to capitalise on the complexity that defines the modern marketing
landscape by building custom digital media and technology solutions that keep
clients ahead of competitors.
Financial & Strategic Review
The focus for the first half of 2024 has been twofold: operational excellence
and business growth. Operational excellence is the practice of implementing
new systems and processes to increase the profitability of our operations, and
that improve client and staff satisfaction across the company. Business growth
involves increasing revenue by expanding engagements with existing clients,
winning new clients, launching new capabilities and making acquisitions.
Operational Excellence
The focus on operational excellence has delivered tangible results during the
period. On flat net revenue of £10.1m (H1 2023: £10.0m), Brave Bison
recorded Adj. EBITDA of £2.1m (H1 2023: £1.9m) and Adj. Profit Before Tax of
£1.8m (H1 2023: £1.5m), a year-on-year increase of 12% and 20%,
respectively. With underlying margins approaching 18-20%, Brave Bison is now
beginning to operate within its medium-term target range. Our investment into
senior leadership and public company listing costs means that Brave Bison will
benefit from high levels of operational gearing as Net Revenue increases.
Statutory Profit Before Tax of £1.2m (H1 2023: loss of £0.2m) also showed a
significant improvement year-on-year. The primary reason for this is that the
bulk of the adjusting items associated with the acquisition of SocialChain
(namely professional fees, fundraising fees, termination payments etc.) were
contained in 2023. There were £0.2m of restructuring and acquisition costs
(H1 2023: £1.4m) recorded in the period, which relate to the final elements
of the SocialChain integration, leases and software contracts, as well as
costs relating to corporate reorganisation of Brave Bison Commerce to reflect
the evolving technological skill sets required within this business unit.
Brave Bison uses a professional services automation platform to centralise all
resource management and hiring. Timesheets are completed by billable staff,
and the business has visibility on profitability by service line, by client,
by department and by person. Client engagements are planned by a centralised
operations team and hiring decisions are made on the basis of committed and
weighted revenue. Further, resource from different offices or services can be
shared across the different parts of the business based on availability and
client demand.
An analysis of the profit before tax is shown below:
£'000 H1 FY24 H1 FY23
Adj. EBITDA 2,127 1,893
Finance income 128 70
Finance costs (96) (105)
Depreciation (333) (336)
Adj. Profit Before Tax 1,826 1,522
Adjusting Items:
Acquisition Costs 33 810
Restructuring Costs 193 626
Amortisation of Acquired Intangibles 194 114
Impairment of Brand Name - 26
Share Based Payments 230 190
Profit Before Tax 1,176 (244)
Business Growth
We are confident that we have a winning customer proposition in the market,
and the evidence of this has been a record number of new business engagements
in the first half with global clients including SharkNinja, Sony Pictures,
Reed and The Travel Corporation. These clients have engaged Brave Bison due to
our differentiated proposition and our ability to combine strategic
consultancy with experienced execution.
During the period Brave Bison did not renew a number of significant, low
margin and loss-making client engagements serviced from our New York hub. As a
result, the operations in the US have been mostly minimised which distorts the
year-on-year comparison in Net Revenue. Adjusting for these mothballed
operations, net revenue in the first half of 2024 grew 7% when compared to the
prior year.
Turnover / billings decreased from £16.9m in H1 2023 to £15.6m in H1 2024.
We do not look at this metric as a management KPI as it is inflated by pass
through costs such as client media spend, as well as revenue share pass
through payments on the media channels we manage for our partners. It is
therefore distorted by factors which have little impact on the profitability
or management of the business.
We have won a number of new clients by developing our capabilities and leading
with a more consultative and strategic approach. H1 2024 saw the launch of
AudienceGPT, a media planning tool that uses artificial intelligence models to
create marketing personas for the purpose of media planning. The insights we
receive from these 'silicon audiences' have shown to be indistinguishable from
what we see in real life, and this enables us to be more efficient for our
clients by testing strategies faster, and ultimately buying media more
effectively and improving returns.
AudienceGPT follows Scribe, our copywriting bot that uses artificial
intelligence to generate product descriptions, as the second proprietary tool
Brave Bison has developed over the last two years. These proprietary tools
underpin our technology-enabled approach to marketing services and ultimately
drive better results for our clients and client retention for our business.
We have been particularly active marketing our proposition through live,
in-person events. These events give us the opportunity to meet face-to-face
with existing and prospective clients, and we often invite partners and
sponsors from the relevant ecosystem to present alongside our business
leaders, increasing the value of the content for our attendees. Our most
successful series is SocialMinds Live, an extension of our popular podcast
series. The SocialMinds podcast achieves 6,000 monthly downloads, and our
events in H1 2024 saw over 300 professionals attend to hear from marketing
leaders from advertisers such as Oatly, American Express, Monzo, Pinterest,
LinkedIn as well as our own SocialChain.
The Board is keen to grow Brave Bison through accretive acquisitions and we
dedicate a significant amount of time to building relationships and evaluating
targets. On 13 May 2024, Brave Bison announced it was considering an offer to
acquire The Mission Group plc ("Mission"), an AIM-listed digital marketing and
communications business. In its 2023 financial year, Mission reported revenues
of £86m, adj. EBIT of £6.5m and had over 1,100 employees at 31 December
2023. The scale of this potential acquisition would have amounted to a
transformational reverse takeover.
However, the Mission Board did not engage constructively or provide due
diligence access, and Brave Bison ultimately walked away from the potential
transaction on 9 June 2024. Brave Bison is a disciplined acquirer and is not
willing to progress an acquisition unless it meets our strict requirements for
risk and growth in shareholder value.
Net cash, excluding lease liabilities, at the period end was £6.8m (H1 2023:
£4.3m, H2 2023: £6.8m). We would normally expect to have been cash
generative in the first half of the year, however, customer receipts totalling
£0.9m were delayed due to client contractual negotiations and received in
early July. We anticipate being significantly cash generative in H2 2024,
with net cash at the period end expected to be at least £9m.
The investments made by the Company during 2023 are bearing fruit, we are
optimistic for the year ahead and our platform is primed for both organic and
inorganic growth. Brave Bison has a strong and increasing net cash position,
and the Board has a track record in acquiring and integrating businesses on an
accretive basis.
On behalf of the Board
Oliver Green
Chairman
9 September 2024
BRAVE BISON GROUP PLC
CONDENSED CONSOLIDATED INCOME STATEMENT AND CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
For the six months ended 30 June 2024
(unaudited) (unaudited) (audited)
6 months to 6 months to Year to 31
Note 30 June 30 June December
2024 2023 2023
£000's £000's £000's
Revenue 3 15,582 16,902 35,704
Cost of sales (5,459) (6,877) (14,802)
Gross profit / Net revenue 10,123 10,025 20,902
Administration expenses (8,979) (10,234) (19,847)
Operating (loss)/profit 1,144 (209) 1,055
Finance income 128 70 198
Finance costs (96) (105) (143)
Profit(loss) before tax 1,176 (244) 1,110
Analysed as
Adjusted EBITDA 2,127 1,893 4,277
Finance income 128 70 198
Finance costs (96) (105) (143)
Depreciation (333) (336) (694)
Adjusted profit before tax 1,826 1,522 3,638
Restructuring costs (193) (626) (832)
Acquisition costs (33) (810) (847)
Impairment charge - (26) (26)
Amortisation of acquired intangibles (194) (114) (388)
Equity settled share based payments (230) (190) (435)
Profit/(loss) before tax 1,176 (244) 1,110
Income tax credit 43 17 2,279
Profit/(loss) attributable to equity holders of the parent 1,219 (227) 3,389
Statement of Comprehensive Income
Profit/(loss) for the period/year 1,219 (227) 3,389
Items that may be reclassified subsequently to profit or loss
Exchange (loss)/gain on translation of foreign subsidiaries (9) (10) (2)
Total comprehensive profit/(loss) for the period/year attributable to owners 3,387
of the parent
1,210 (237)
Profit per share (basic and diluted)
Basic profit/(loss) per ordinary share (pence) 5 0.09p (0.02p) 0.27p
Diluted profit/(loss) per ordinary share (pence) 5 0.09p (0.02p) 0.25p
BRAVE BISON GROUP PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2024
(unaudited) (unaudited) (audited)
Note At At At 31
30 June 30 June December 2023
2024 2023
£000's £000's £000's
Non-current assets
Intangible assets 6 12,467 12,592 12,661
Property, plant and equipment 7 2,176 815 2,210
Deferred tax asset 2,183 48 2,183
16,826 13,455 17,054
Current assets
Trade and other receivables 7,389 7,032 6,523
Cash and cash equivalents 6,889 4,453 6,920
14,278 11,485 13,443
Current liabilities
Trade and other payables (8,333) (8,468) (8,860)
Bank Loans <1 year 12 (19) (14) (10)
Lease Liabilities 9 (211) (270) (212)
(8,563) (8,752) (9,082)
Non-current liabilities
Lease Liabilities 9 (1,605) (31) (1,487)
Deferred tax liability (632) (411) (674)
Bank loan >1 year 12 (110) (144) (143)
Provisions for liabilities (159) (877) (516)
(2,506) (1,463) (2,820)
Net assets 20,035 14,725 18,595
Equity
Share capital 8 1,288 1,287 1,288
Share premium 89,095 89,095 89,095
Capital redemption reserve 6,660 6,660 6,660
Merger reserve (24,060) (24,060) (24,060)
Merger relief reserve 62,624 62,624 62,624
Retained deficit (115,728) (121,038) (117,177)
Translation reserve 156 157 165
Total equity 20,035 14,725 18,595
BRAVE BISON GROUP PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 June 2024
(unaudited) (unaudited) (audited)
6 months to 6 months to Year to 31
30 June 2024 30 June 2023 December 2023
£000's £000's £000's
Operating activities
Profit/(loss) before tax 1,176 (244) 1,110
Adjustments:
Depreciation, amortisation and impairment 527 476 1,108
Finance income (128) (70) (198)
Finance costs 96 105 143
Share based payment charges 230 190 435
(Increase)/decrease in trade and other receivables (866) 1,478 2,252
(Decrease)/increase in trade and other payables (885) (3,104) (3,076)
Tax received - 265 49
Cash inflow/(outflow) from operating activities 150 (904) 1,823
Investing activities
Acquisition of subsidiaries - (4,756) (4,756)
Net cash acquired on acquisition - (27) (27)
Purchase of property, plant and equipment (70) (23) (156)
Interest received 128 70 198
Cash inflow/(outflow) from investing activities 58 (4,736) (4,741)
Cash flows from financing activities
Issue of share capital - 4,750 4,750
Interest paid (96) (105) (143)
Repayment of borrowings (24) (628) (634)
Repayment of lease liability (110) (399) (619)
Cash (outflow)/inflow from financing activities (230) 3,618 (3,355)
Net change in cash and cash equivalents (22) (2,022) 437
Movement in net cash
Cash and cash equivalents, beginning of period 6,920 6,485 6,485
(Decrease)/increase in cash and cash equivalents (22) (2,022) 437
Movement in foreign exchange (9) (10) (2)
Cash and cash equivalents, end of period 6,889 4,453 6,920
BRAVE BISON GROUP PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2024
Share Capital redemption Retained Total
Share premium reserve Merger reserve Merger relief reserve Translation deficit equity
capital reserve
£000's £000's £000's £000's £000's £000's £000's £000's
At 1 January 2023 (audited) 1,081 84,551 6,660 (24,060) 62,624 167 (121,001) 10,022
Shares issued during the period 206 4,544 - - - - - 4,750
Equity settled share based payments - - - - - - 190 190
Transactions with owners 206 4,544 - - - - 190 4,940
Other Comprehensive Income
Profit and total comprehensive income for the period - - - - - (10) (227) (237)
At 30 June 2023 (unaudited) 1,287 89,095 6,660 (24,060) 62,624 157 (121,038) 14,725
At 1 January 2023 (audited) 1,081 84,551 6,660 (24,060) 62,624 167 (121,001) 10,022
Shares issued during the year 207 4,544 - - - - - 4,751
Equity settled share based payments - - - - - - 435 435
Transactions with owners 207 4,544 - - - - 435 5,186
Other Comprehensive Income
Profit and total comprehensive income for the period - - - - - (2) 3,389 3,387
At 31 December 2023 (audited) 1,288 89,095 6,660 (24,060) 62,624 165 (117,177) 18,595
At 1 January 2024 (audited) 1,288 89,095 6,660 (24,060) 62,624 165 (117,177) 18,595
Shares issued during the period - - - - - - - -
Equity settled share based payments - - - - - - 230 230
Transactions with owners - - - - - - 230 230
Other Comprehensive Income
Profit and total comprehensive income for the period - - - - - (9) 1,219 1,210
At 30 June 2024 (unaudited) 1,288 89,095 6,660 (24,060) 62,624 156 (115,728) 20,035
BRAVE BISON GROUP PLC
NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS
For the six months ended 30 June 2023
1 General information
The information for the year ended 31 December 2023 does not constitute
statutory accounts as defined in section 435 of the Companies Act 2006. A
copy of the statutory accounts has been delivered to the Registrar of
Companies. The auditors reported on those accounts: their report was
unqualified, did not draw attention to any matters by way of emphasis and did
not contain a statement under section 498 (2) or (3) of the Companies Act
2006. The interim financial statements have not been audited or reviewed by
the Group's auditor.
2 Accounting policies
Basis of preparation
The annual financial statements of Brave Bison Group plc are prepared in
accordance with IFRS as adopted by the European Union. The condensed set of
financial statements included in this half yearly report has been prepared in
accordance with International Accounting Standard 34 "Interim Financial
Reporting", as adopted by the European Union.
The interim statement has been prepared on a going concern basis, which
assumes that the Group will be able to meet its liabilities for the
foreseeable future. The Group is dependent for its working capital
requirements on cash generated from operations, cash holdings and from equity
markets. The cash holdings of the Group at 30 June 2024 were £6.9 million.
The Directors have prepared detailed cash flow projections ("the Projections")
which are based on their current expectations of trading prospects. The board
forecasts that the Group will achieve positive cash inflows in the second half
of 2024 and 2025. Accordingly, the Directors have concluded that it is
appropriate to continue to adopt the going concern basis in preparing these
financial statements. The Directors are confident that the Group's forecasts
are achievable, and are committed to taking any actions available to them to
ensure that any shortfall in forecast revenues is mitigated by cost savings.
The Directors also continue to maintain rolling forecasts which are regularly
updated.
Significant accounting policies
The accounting policies applied by the Group in this condensed set of
consolidated financial statements are the same as those applied by the Group
in its consolidated financial statements as at and for the year ended 31
December 2023.
Other pronouncements
Other accounting pronouncements which have become effective from 1 January
2024 and therefore have been adopted do not have a significant impact on the
Group's financial results or position.
3 Segment reporting
The Group has identified three geographic areas (United Kingdom & Europe,
Asia Pacific and Rest of the world) and the information is presented based on
the customers' location.
Geographic reporting
The information is presented based on the customers' location.
(audited)
(unaudited) (unaudited) 12 months
6 months ended 6 months ended ended 31
June 2024 June 2023 December
2023
£000's £000's £000's
United Kingdom & Europe 14,141 14,844 31,558
Asia Pacific 49 212 82
Rest of the World 1,392 1,846 4,064
Total Revenue 15,582 16,902 35,704
The Group identifies two revenue streams, advertising and fee based services,
which correspond to the Media Network and Digital Advertising and Technology
Services pillars respectively. The analysis of revenue by each stream is
detailed below.
(audited)
(unaudited) (unaudited) 12 months
6 months ended 6 months ended ended 31
June 2024 June 2023 December
2023
Revenue £000's £000's £000's
Advertising 4,333 5,015 10,079
Fee based services 11,249 11,887 25,625
Total revenue 15,582 16,902 35,704
(audited)
(unaudited) (unaudited) 12 months
6 months ended 6 months ended ended 31
June 2024 June 2023 December
2023
Gross profit £000's £000's £000's
Advertising 1,329 1,313 2,753
Fee based services 8,794 8,712 18,149
Total gross profit 10,123 10,025 20,902
Timing of revenue recognition
The following table includes revenue from contracts disaggregated by the
timing of recognition.
(audited)
(unaudited) (unaudited) 12 months
6 months ended 6 months ended ended 31
June 2024 June 2023 December
2023
£000's £000's £000's
Products and services transferred at a point in time 4,333 5,025 10,077
Products and services transferred over time 11,249 11,877 25,627
Total revenue 15,582 16,902 35,704
4 Restructuring
(audited)
(unaudited) (unaudited) 12 months
6 months ended 6 months ended ended 31
June 2024 June 2023 December
2023
£000's £000's £000's
Restructuring costs 193 626 832
Restructuring costs in 2023 relate to corporate reorganisation activities as a
result of the acquisition of SocialChain. Restructuring costs in 2024 relate
to the final elements of this relating to staff costs, leases and software
contracts, as well as some costs relating to corporate reorganisation of Brave
Bison Commerce to reflect the evolving technological skill sets required
within this business unit.
5 Earnings per share
Both the basic and diluted earnings per share have been calculated using the
profit after tax attributable to shareholders of Brave Bison Group plc as the
numerator, i.e. no adjustments to profits were necessary in 2023 or 2024. The
calculation of the basic earnings per share is based on the profit
attributable to ordinary shareholders divided by the weighted average number
of shares in issue during the year.
(audited)
(unaudited) (unaudited) 12 months
6 months ended 6 months ended ended 31
June 2024 June 2023 December
2023
Weighted average number of ordinary shares 1,288,147,280 1,249,684,604 1,268,816,088
Dilution due to share options 91,483,392 73,926,266 96,616,725
Total weighted average number of ordinary shares 1,379,630,672 1,323,610,870 1,365,477,813
Basic profit/(loss) per ordinary share (pence) 0.09p (0.02p) 0.27p
Diluted profit/(loss) per ordinary share (pence) 0.09p (0.02p) 0.25p
Adjusted basic profit per ordinary share (pence) 0.14p 0.12p 0.29p
Adjusted diluted profit per ordinary share (pence) 0.13p 0.11p 0.27p
(audited)
(unaudited) (unaudited) 12 months
6 months ended 6 months ended ended 31
June 2024 June 2023 December
2023
£000's £000's £000's
Profit/(loss) for the year attributable to ordinary shareholders 1,219 (227) 3,389
Equity settled share based payments 230 190 435
Restructuring costs 193 626 832
Acquisition costs 33 810 847
Impairment charge - 26 26
Amortisation of acquired intangibles 194 114 388
Tax credit (43) (17) (2,279)
Adjusted operating profit for the period attributable to the equity 1,826 1,522 3,638
shareholders
6 Intangible Assets
Goodwill Online Channel Content Technology Customer Relation-ships Total
Brands
£000's £000's £000's £000's £000's £000's
Cost
At 30 June 2023 46,399 2,034 5,213 755 20,819 75,220
Additions - - - - - -
Reallocation of Goodwill (1,222) - - 364 1,201 343
At 31 December 2023 45,177 2,034 5,213 1,119 22,020 75,563
Additions - - - - - -
Reallocation of Goodwill - - - - - -
At 30 June 2024 45,177 2,034 5,213 1,119 22,020 75,563
Amortisation and impairment
At 30 June 2023 35,075 1,975 5,213 755 19,610 62,628
Charge for the period - 16 - 67 191 274
Impairment charge - - - - - -
At 31 December 2023 35,075 1,991 5,213 822 19,801 62,902
Charge for the period - 17 - 36 141 194
Impairment charge - - - - - -
At 30 June 2024 35,075 2,008 5,213 858 19,942 63,096
Net Book Value
At 30 June 2023 11,324 59 - - 1,209 12,592
At 31 December 2023 10,102 43 - 297 2,219 12,661
At 30 June 2024 10,102 26 - 261 2,078 12,467
7 Property, plant and equipment
Right of Use asset Leasehold Improvement Computer Equipment Fixtures & Total
Fittings
£000's £000's £000's £000's £000's
Cost
At 30 June 2023 1,032 279 315 27 1,653
Additions 1,606 76 73 4 1,759
Disposals (719) (3) (2) - (724)
At 31 December 2023 1,919 352 386 31 2,688
Additions 282 4 66 - 352
Disposals (301) - - - (301)
At 30 June 2024 1,900 356 452 31 2,739
Depreciation and impairment
At 30 June 2023 697 33 102 6 838
Charge for the period 263 28 68 5 364
Disposals (719) (3) (2) - (724)
At 31 December 2023 241 58 168 11 478
Charge for the period 220 43 65 5 333
Disposals (248) - - - (248)
At 30 June 2024 213 101 233 16 563
Net Book Value
At 30 June 2023 335 246 213 21 815
At 31 December 2023 1,678 294 218 20 2,210
At 30 June 2024 1,687 255 219 15 2,176
Included in the net carrying amount of property, plant and equipment are
right-of-use assets as follows:
(audited)
(unaudited) (unaudited) 12 months
6 months ended 6 months ended ended 31
June 2024 June 2023 December
2023
£000's £000's £000's
Right-of-use-asset 1,687 335 1,678
Total right-of-use asset 1,687 335 1,678
8 Share capital
7 At 30 June 2024
8 Ordinary share capital
Number £000's
Ordinary shares of £0.001 1,288,147,280 1,288
Total ordinary share capital of the Company 1,288
Rights attributable to ordinary shares
The holders of ordinary shares are entitled to receive notice of and attend
and vote at any general meeting of the Company.
9 Leases
Lease liabilities are presented in the statement of financial position as
follows:
(unaudited) (unaudited) (audited)
At At At 31
30 June 30 June December 2023
2024 2023
£000's £000's £000's
Current 211 270 212
Non-current 1,605 31 1,487
1,816 301 1,699
During the period, four office leases expired. The Group entered into two new
office leases which expire in June 2026. With the exception of short-term
leases and leases of low-value underlying assets, each lease is reflected on
the balance sheet as a right-of-use asset and a corresponding lease liability.
The table below describes the nature of the Group's leasing activities by type
of right-of-use asset recognised on the statement of financial position:
No. of right-of-use assets leased Range of remaining term Average remaining lease term No. of leases with extension options No. of leases with termination options
Office building 3 2 - 5.5 years 3.25 years - -
The lease liabilities are secured by the related underlying assets. Future
minimum lease payments at 30 June 2024 were as follows:
Within one year One to six Total
years
£000's £000's £000's
Lease payments 367 1,936 2,304
Finance charges (156) (332) (488)
Net present values 211 1,605 1,816
The Group does not have any liabilities for short term leases.
At 30 June 2024 the Group had not committed to any leases which had not yet
commenced excluding those recognised as a lease liability.
10 Financial Instruments
(unaudited) (unaudited) (audited)
Categories of financial instruments As at 30 As at 30 As at 31
June June December
2024 2023 2023
£000's £000's £000's
Financial assets at amortised cost
Trade and other receivables 5,975 6,291 5,850
Cash and bank balances 6,889 4,453 6,920
12,864 10,744 12,770
Financial liabilities at amortised cost
Trade and other payables 6,588 7,184 8,755
Lease liabilities 1,816 301 1,699
Bank Loans 129 158 153
8,533 7,643 10,607
Brave Bison categorises all financial assets and liabilities as level 1 for
fair value purposes which means they are valued using quoted prices
(unadjusted) in active markets for identical assets or liabilities.
11 Contingent liabilities
There were no contingent liabilities at 30 June 2024 (30 June 2023 and 31
December 2023: None).
12 Bank Loans
(audited)
(unaudited) (unaudited) 12 months
6 months ended 6 months ended ended 31
June 2024 June 2023 December
2023
£000's £000's £000's
Loan <1 year 19 14 10
Loan >1 year 110 144 143
129 158 153
The Group has a Bounce Back Loan Agreement which is due to be fully repaid in
2026. The repayment amount and timing of each instalment is based on a fixed
interest rate of 2.5% payable on the outstanding principal amount of the loan
and applicable until the final repayment date. This loan is unsecured. The
Group continues to have an undrawn £3m revolving credit facility (RCF) with
Barclays Bank plc. The RCF is a 3 year facility with an interest margin of
2.75% over Base Rate. The Group also has a U.S. Small Business Administration
loan which was acquired as part of the SocialChain acquisition which is due to
be fully repaid in 2050. The repayment amount and timing of each instalment
was based on a fixed interest rate of 3.75% per annum payable on the
outstanding principal amount of the loan and applicable until the final
repayment date.
13 Transactions with Directors and other related parties
Oliver Green and Theodore Green are directors and shareholders in Tangent
Marketing Services Limited and directors of The Printed Group Limited.
Tangent Marketing Services and The Printed Group both rent office space from
Brave Bison at its London headquarters.
Tangent Marketing Services pays Brave Bison a salary recharge for certain
employees in the HR, IT and facilities departments.
The Printed Group is a client of Brave Bison, whereby Brave Bison provides
search engine optimisation services to The Printed Group.
All related party transactions are undertaken on an arms-length basis and are
approved beforehand by the Group's independent directors. A copy of the
Group's related party policy is available at bravebison.com/investors under
the heading 'Shareholder Documents'.
Transactions with associates during the year were:
(audited)
(unaudited) (unaudited) 12 months
6 months ended 6 months ended ended 31
June 2024 June 2023 December
2023
£000's £000's £000's
Amounts charged to Tangent Marketing Services Limited by Brave Bison
Recharge for HR related salary 18 16 33
Recharge for IT related salary 9 15 33
Recharge for support staff salary 5 8 17
Recharge for marketing related costs 8 - -
Recharge for other costs 1 - -
Charge for property related costs 38 41 76
Charge for client related work 3 7 19
Charge for IT related costs - 5 10
Recharge of other staff costs - 7 7
82 99 195
Amounts charged to Brave Bison by Tangent Marketing Services Limited
Charge for client related work - 67 67
- 67 67
Amounts charged to The Printed Group Limited by Brave Bison
Recharge for property related costs 19 35 39
Charge for client related work 52 26 96
71 61 135
(unaudited) (unaudited) (audited)
6 months to 6 months to Year to 31
30 June 2024 30 June 2023 December 2023
£000's £000's £000's
Amounts owed to Tangent Marketing Services Limited - - -
Amounts owed by Tangent Marketing Services Limited 24 18 21
Amounts owed by The Printed Group Limited 9 22 22
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