interim results

1
interim results

• April 12th 2005

2
summary

• Completed move to AIM
• Net Cash 2.7m

30.7
16.4
10.3
10
1.37m
1.85p
20.4m
0.33p
operating profit
dividend
revenues
EPS
3
business update
4
strategy

• Continue to expand Group organically
• Pursue selective acquisitions in technology PR
  and specialist services e.g. consumer PR
• Tie in key staff through LTIP
• Appoint executive to develop plan to expand UK
  base

5
business performance

• North American business expanded 16 despite
  continued weakness of US dollar (27 growth at a
  constant rate)
• APAC business grew 23
• Bite added office in New York
• Text 100 added office in Hong Kong and Guangzhou
• New clients include Siebel, Samsung Corporate,
  AMD, Motorola and Kiss Technology
• Group now represents 12 of the worlds top 20
  technology brands
• Restructured Inferno as a Next Fifteen brand
  housing Microsoft UK work

6
group clients
7
revenue by region
8
revenue by brand
9
financial review

• Highlights
• net revenue up gt10 to record level of 20.4m
• operating profit up gt30 as margin improved to
  6.7
• net funds of over 2.7m at half-year despite
  significant capital expenditure on new office
  space
• interim dividend increased for first time since
  flotation in 1999

10
PL highlights

• 2005H1 2004H1 2004 m m m
• Net revenue 20.4 18.5 37.7
• Staff costs 14.2 12.5 26.0
• Staff cost 69.4 67.2 69.0
• Amortisation 0.1 0.1 0.2
• Other operating costs 4.8 4.9 9.6
• Operating profit 1.37 1.05 1.90
• Margin 6.7 5.7 5.1
• Tax rate 43.6 40 42.6
• Basic eps 1.85p 1.59p 2.67p
• Dividend per share 0.33p 0.3p 1.1p

11
eps and tax rate

• Basic eps was up 16.4 at 1.85p (2004 1.59p)
• Tax rate increased to 43.6 (2004 Interim 40)
  as a result of three main factors
• Significant additional profits in US, where tax
  rate is 42.
• Unplanned trading losses in Japan
• Very high effective tax rate in Italy because of
  IRAP (regional tax on productive activities)

12
balance sheet

• 2004(H1) 2004 2005(H1)
• m m m
• Fixed Assets
• Intangible assets 0.9 0.8 0.7
• Tangible assets 2.1 2.1 2.4
• Net Current assets 5.3 5.2 5.3
• Creditorsgt 1 year (0.8) (0.4) (0.2)
• Net assets 7.7 8.2
• Share Capital 1.1 1.1 1.1
• Reserves 8.0 8.1 8.6
• ESOP Reserve (1.8) (1.8) (1.8)
• Minority Interests 0.2 0.3 0.3
• Total 7.5 7.7 8.2
• Net funds 2.2 2.9 2.7

7.5
13
cashflow

• 2005(H1) 2004(H1) 2004
• m m m
• Operating profit items 2.0 1.8
  3.4
• Working capital items (0.3) (1.1)
  (0.9)
• Provisions (0.3) (0.3)
• Net inflow from operations 1.6 0.4
  2.2
• Taxation (0.4) (0.9) (1.1)
• Net capital expenditure (0.9) (0.2)
  (0.9)
• Sale of own shares - 0.2
  0.2
• Acquisitions (0.2) (0.4) (0.5)
• Dividends (0.3) (0.3) (0.4)
• Financing - (0.1) (0.2)
• Decrease in cash (0.2) (1.3)
  (0.7)

(0.1)
14
summary

• Record results for the trading period, heading
  towards record year for the Group.
• Added significant brands to client list thus
  increasing market share
• Added further offices in Hong Kong, Guangzhou and
  New York
• Increased interim dividend
• Pursuing organic growth and selective
  acquisitions
• Completed move to AIM

15
vital statistics

• founded 1981
• listed on LSE 1999
• moved to AIM 2005
• Core businesses
• Text 100
• Bite Communications
• Inferno
• AUGUST.ONE Communications
• 32 offices and 2 licensed partners around the
  world
• 250 clients
• 640 people