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HALF YEAR RESULTS
ANNOUNCEMENT FOR RIGHTMOVE PLC - SIX MONTHS ENDED 30 JUNE
2024
Rightmove plc, the UK's largest
property portal, announces its unaudited results for the six months
ended 30 June 2024.
A strong financial
performance during a period of investment, driven by continued
demand from agents and new homes developers for our products and
services
Reiterating full-year 2024
guidance
Financial Highlights
|
H1 2024
|
H1 2023
|
Change vs
2023
|
% Change vs
2023
|
Revenue
|
£192.1m
|
£179.5m
|
£12.6m
|
7%
|
Operating profit
|
£131.6m
|
£129.5m
|
£2.1m
|
2%
|
Underlying operating
profit(1)
|
£135.1m
|
£133.2m
|
£1.9m
|
1%
|
Interim dividend
|
3.7p
|
3.6p
|
0.1p
|
3%
|
Basic earnings per
share
|
12.4p
|
12.1p
|
0.3p
|
2%
|
Underlying basic earnings per
share(2)
|
12.8p
|
12.5p
|
0.3p
|
2%
|
· Revenue up £12.6m/7% to £192.1m, as both agents and new homes
developers renewed contracts, upgraded their packages and invested
in additional products
·
Operating profit of £131.6m, up 2% (2023:
£129.5m)
·
Underlying operating profit(1) of
£135.1m, up 1% (2023: £133.2m)
·
Basic earnings per share up 2% to 12.4p (2023:
12.1p); underlying basic earnings per share(2) up 2% to
12.8p (2023: 12.5p)
· Operating profit and underlying operating profit include
one-off acquisition costs of £0.6m, relating to HomeViews and the
strategic long-term investment in Coadjute, as well as a one-off
charge of £3.0m in relation to the investment in Coadjute (see
Financial Performance and note 13): adjusting to remove the impact
of these costs would mean that operating profit would be £135.2m,
up 4%; underlying operating profit would be £138.7m, up 4%; and
underlying EPS would be 13.2p, up 6%
·
Interim dividend up 3% to 3.7p per ordinary share
(2023: 3.6p)
·
£100.2m of returns to shareholders through share
buybacks and dividends in the first half of 2024 (2023: £97.6m);
10.1 million shares (1.2% of outstanding share capital) cancelled
to 30 June (2023: 10.0 million)
·
Cash and cash equivalents, including money market
deposits, of £28.1m (31 December 2023: £38.8m)
Operational highlights
· Our market share leadership position continues at over 80%
(2024: 86%, 2023: 86%)(3), as we remain the trusted site
for home-hunters to inform themselves about the housing
market
·
Resilient traffic, with a total of 8.3
billion(4) minutes spent on the platform in the period
(2023: 8.2 billion).
·
Membership numbers stable: up 276/1% since the
start of the year at 19,061 (Dec 23: 18,785), driven by strong
growth in Agency Lettings members. Agency branches were
16,193 and New Homes developments totalled 2,868 (31 December 2023:
15,839 and 2,946)
·
Average Revenue Per Advertiser (ARPA)
(5) up 6% to £1,497 per month (30 June 2023:
£1,411)
·
New Homes ARPA growth of £164/9%, and Agency ARPA
growth of £76/6%, both driven by increased product and package
purchases and partner contract renewals
·
Penetration of the top Estate Agency package,
Optimiser, increased to 36% (Dec 23: 35%) and membership of the New
Homes top package, Advanced, increased to 56% (Dec 23:
53%)
·
Continued product innovation, with over 130
features and enhancements underway in 2024, and 24 product teams
all enabled with AI copilots
·
Positive progress on Strategic Growth Areas
during the half, with revenue growth of
30%(6)
·
Continued focus on advocating for our partners,
consumers and the wider property industry.
(1) Underlying operating
profit is operating profit before the share-based payments charges
(including the related NI charge)
(2) Underlying basic EPS
is profit for the year before share-based payments charges
(including the related National Insurance and appropriate tax
adjustments), divided by the weighted average number of ordinary
shares outstanding in the period
(3) Source: Comscore,
June 2023 and June 2024. Comscore MMX® Desktop only +
Comscore Mobile Metrix® Mobile Web & App, Total Audience,
Custom-defined list of Rightmove sites, zoopla.co.uk,
primelocation.com, onthemarket.com, United
Kingdom.
(4) Source: Google
Analytics
(5) Average Revenue per
Advertiser (ARPA) is calculated as revenue from Agency and New
Homes advertisers in a given month divided by the total number of
advertisers during the month, measured as a monthly average over
the six-month period
(6) Strategic Growth
Areas comprise Commercial, Mortgages and Rental Services.
Combined revenues in H1 2024 of £11.2m (H1 2023:
£8.6m)
Summary and Outlook
Our financial performance in the
first half of 2024 reflects the strength of our business model, our
market-leading position with UK consumers, and the power of the
Rightmove network effect. We continue to build the business from
this position of strength.
For the full year 2024, our
guidance from the trading statement on 10 May is unchanged: we
continue to expect revenue growth of 7-9%, with membership growth
of up to 2% across Estate Agency and New Homes, and full-year ARPA
growth of £75-85.
We continue to invest in product
innovation for both our consumers and our partners, and are
accelerating our strategic growth areas of commercial real estate,
rental services and mortgage lead generation, all while maintaining
disciplined cost management. We continue to anticipate an
underlying operating margin, when excluding the one-off acquisition
costs and Coadjute investment, of 70% in 2024.
Our capital allocation policy
remains unchanged. We prioritise organic investment, including any
bolt-on M&A that might help us to accelerate the execution of
our strategy. We then prioritise a progressive dividend policy,
following which all remaining cash generated in the year is
returned via share buybacks.
The strength of our business
model, coupled with ongoing innovation, underpins the Board's
confidence in Rightmove's
outlook for 2024 and
beyond.
Johan Svanstrom, Chief Executive Officer,
said:
"We're pleased to deliver a strong set of H1 results, and to
be progressing in executing our plan to build an even more valuable
digital platform for the UK property industry.
"Our performance came against the backdrop of the sustained
challenging mortgage rate environment. The period saw a pick-up in
existing-homes listings and transactions, a continued yet softening
imbalance of demand and supply for rentals, and a tentative outlook
for new homes development volumes. With the election now
concluded, the property market looks forward to potential interest
rate reductions which will further stimulate
activity.
"On the back of our leading position in the market, we have
exciting momentum expanding our products and innovation for
consumers and partners and remain confident in Rightmove's
long-term prospects."
The Company will present its results at a meeting for
analysts and investors, to be held at 9:30am today and available
online at
https://edge.media-server.com/mmc/p/nk8x46xy
Enquiries:
Investor
Relations
Investor.Relations@rightmove.co.uk
Sodali
rightmove@sodali.com
About
Rightmove
·
Rightmove has the UK's largest selection of
properties for sale and to rent, adds more listings than anyone
else, and over 80% of all time spent on property portals is on
Rightmove
·
Rightmove's vision is to give everyone the belief
that they can make their move by giving people the best place to
turn and return to for access to tools and expertise to make it
happen
·
People can search Rightmove for residential
resale, new homes, rentals, commercial property and overseas
properties and use tools and information including securing a
Mortgage in Principle, checking local sold prices, property
valuations, market trends, maps and schools
·
Partners include the following key groups: estate
agents, lettings agents, new homes developers, rental operators,
commercial property operators and overseas property
agents
·
Using the UK's largest housing datasets, we issue
a number of regular reports to track housing market indicators: our
monthly House Price Index (established 2002), our quarterly Rental
Trends Tracker (established 2015), and a weekly Mortgage Rates
Tracker (established 2023). Historical data is available on
request
·
Founded in 2000, Rightmove listed on the London
Stock Exchange in 2006 and is a member of the FTSE 100
index.
Half Year
Statement
Throughout the first half of 2024
partner demand for our products and services was strong and we have
continued to invest and to innovate to expand our business, in
order to deliver meaningful acceleration in both revenues and
profits over the coming years.
The recovery in the housing market
so far this year has been tentative: mortgage rates have eased a
little but remain high, and housing transactions remain muted and
slow to close - taking an average of seven
months from first listing to completion. Nonetheless, our
partners remained focused on competing for new vendor mandates and
delivering value for their customers (our consumers) and continued
to rely on our products to help them to do that.
Estate agents' investment in our
packages and products increased Agency revenues by 7% and Agency
ARPA(1) by 6%, to £1,417 (June 23: £1,341). Over 36% of our agent partners are now on our
top package, Optimiser (Dec 2023: 35%). Vendor lead products,
such as Local Valuation Alert, increased
by 8% and we saw record growth in the number of new Lettings
partners (a net c.350 increase on June 2023).
The acquisition of HomeViews -
which provides the UK's largest community of verified residential
reviews of property developments - was a valuable addition to our
already strong listings proposition for Rental
Operators.
New homes developers continued to
face a challenging market, with competition from the resale market
in the face of a tentative pickup in demand. We welcome the
new government's proposals to reform the planning system and to
'get Britain building'. However, while developers are being
generally cautious in their approach to building so far this year,
their usage of our digital products remained strong and New Homes
ARPA(2) increased by 9% to £1,940 as a result (June 23: £1,776).
Revenue growth was more muted (4%) as development numbers reduced
to 2,868 (Dec 2023: 2,946) reflecting the slower pace of
building. The number of developments on our top tier package,
Advanced, increased to 56% (Dec 2023: 53%).
Our Strategic Growth Areas
continued to make progress, with Mortgages delivering stellar
growth in Mortgages in Principle volumes and revenue up 176%/£1.4m
to £2.2m. Commercial revenues grew by 12%/£0.7m to £6.5m,
reflecting both increased membership numbers and contract renewals.
Within Rental Services, our Lead to Keys proposition continues to
gain traction with lettings agents and we enhanced further the
quality and efficiency of the product during the half.
Rental Services revenues grew by 29%/£0.6m to
£2.5m.
Overall, total revenues increased
by 7% on the same period in 2023 to £192.1m and Group
ARPA(3) grew by 6% to £1,497 (June 2023:
£1,411).
Innovation in new products, not
only for partners but for consumers, continued apace and we will
launch our latest consumer enhancement - Renovation Calculator - in
the third quarter, which will allow consumers to evaluate the
uplift in the value of their property from specific
renovations.
Growth in the first half was
underpinned by our ongoing investment in both the Rightmove
platform and people. Over 100 people have been recruited so
far in 2024, and our developers are now AI-enabled, with Github
Copilot. Rightmove was listed as a Sunday Times Best Place to Work
for the first time and over 80% of employees think Rightmove is a
great place to work.
Rightmove
remains the only place to find virtually the whole of the UK
property market in one place. It is the
place home hunters turn to first, and engage with most, to help
them with their searches. Our platform is central to making
any move easier through driving the digitisation of the property
market and we also provide insights into the market from our vast
and unique property market data. As the market leader our market
share of consumer time is over 80%(4).
Our strategy is to generate growth
for all our stakeholders. We enjoy working with all our partners to
build success together and to advocate for the industry, which in
turn generates growth for Rightmove and our
shareholders.
(1) Agency ARPA is
calculated as revenue from Agency advertisers in a given month
divided by the total number of advertisers during the month,
measured as a monthly average over the year
(2)
New Homes ARPA
is calculated as revenue from New Homes developers in a given month
divided by the total number of developers during the month,
measured as a monthly average over the year
(3) Average Revenue
per Advertiser (ARPA) is calculated as revenue from Agency and New
Homes advertisers in a given month divided by the total number of
advertisers during the month, measured as a monthly average over
the six-month period.
(4) Source:
Comscore June 24
Financial
performance
Revenue
Revenue increased by £12.6m/7%
year on year to £192.1m (2023: £179.5m) with growth across all
business units.
|
H1 2024
£m
|
H1 2023
£m
|
Change vs 2023
£m
|
Change vs 2023
%
|
Agency
|
138.5
|
129.4
|
9.1
|
7%
|
New Homes
|
33.9
|
32.7
|
1.2
|
4%
|
Other
|
19.7
|
17.4
|
2.3
|
13%
|
Total revenue
|
192.1
|
179.5
|
12.6
|
7%
|
|
30 June
2024
|
31 Dec
2023
|
30 June
2023
|
Change vs Dec
2023
|
Change vs Dec 2023
%
|
Agency branches
|
16,193
|
15,839
|
16,093
|
354
|
2%
|
New Homes devs
|
2,868
|
2,946
|
3,023
|
(78)
|
(3%)
|
Total membership
|
19,061
|
18,785
|
19,116
|
276
|
1%
|
Agency revenue increased by £9.1m year on year to £138.5m, as
core membership price increases were secured through partner
contract-renewals and agents continued to purchase additional
products. HomeViews, acquired in February, contributed £0.7m of the
increase in revenue. Agency ARPA(1) increased by £76/6% to
£1,417 (June 2023: £1,341) and agency membership numbers were up 2%
on 31 December 2023, ending the first half of the year at 16,193
branches.
New Homes revenue increased by 4%
to £33.9m, through contract renewals, upgrades to our top package,
and the developers purchasing incremental products. New Homes
ARPA(2) increased
by £164/9% to £1,940 per development per month (June 2023: £1,776)
and the strength of this ARPA growth more than offset development
listings which, at 2,868, were marginally down on
December.
Other revenue increased to £19.7m,
driven primarily by the increased volume of MIPs (mortgages in
principle) delivered within our Mortgages business and increased
membership numbers and successful contract renewals within our
Commercial business.
Administration costs
Total costs increased by £10.5m to
£60.5m (2023: £50.0m), which included share-based payments charges
and related National Insurance charges of £3.5m (2023:
£3.7m).
Excluding share-based payments
charges and related National Insurance, underlying operating
costs(3) increased by £10.7m/23% to £57.0m (2023: £46.3m). The
increase is due primarily to:
· the
£3.0m strategic investment in Coadjute (a property market
technology company: see note 13), which was written down
immediately given the long-term nature of the investment, and £0.6m
relating to the acquisition costs of Coadjute and of acquiring
HomeViews;
· higher people costs, reflecting on-going investment in line
with the growth ambitions set out at our Capital Markets Day in
November 2023 (c£5m);
· increased spend on IT security, infrastructure and cloud
hosting (c£2m); and
· other general and admin costs.
The share-based payments charge of
£3.5m was broadly flat on 2023 as the impact of new awards was
largely offset by credits arising from forfeitures.
Operating profit
Operating profit increased by
£2.1m to £131.6m (H1 2023: £129.5m), with an operating profit
margin of 69% (H1 2023: 72%).
Underlying operating
profit(4) increased by £1.9m/1% to £135.1m, with an underlying
operating profit margin(5)
of 70% (June 2023: 74%).
If the one-off acquisition costs
of £0.6m and Coadjute investment charge of £3.0m are excluded, the
underlying operating profit would be £138.7m, an increase of 4% on
prior year, and the underlying operating margin would be
72%.
|
H1 2024
£m
|
H1 2023
£m
|
Change vs 2023
£m
|
Change vs 2023
%
|
Revenue
|
192.1
|
179.5
|
12.6
|
7%
|
Underlying
costs(3)
|
(57.0)
|
(46.3)
|
(10.7)
|
(23%)
|
Underlying operating
profit(4)
|
135.1
|
133.2
|
1.9
|
1%
|
Underlying operating
margin(5)
|
70%
|
74%
|
|
|
Share based incentive
costs
|
(3.5)
|
(3.7)
|
0.2
|
5%
|
Operating profit
|
131.6
|
129.5
|
2.1
|
2%
|
Operating
Margin
|
69%
|
72%
|
|
|
Earnings per share (EPS)
Basic EPS increased by 2% to 12.4p
(2023: 12.1p), driven by the increase in profit and the share
buyback programme, which reduced the weighted average number of
ordinary shares in issue to 795.1m (2023: 819.8m).
Underlying basic
EPS(6) (based on
underlying profit) increased by 2% to 12.8p (2023:
12.5p).
Excluding the acquisition costs of
£0.6m and the £3.0m Coadjute investment, underlying basic EPS would
be 13.2p, an increase of 6% on 2023.
Summary consolidated statement of financial
position
|
30 June
2024
£m
|
31
December 2023
£m
|
30
June
2023
£m
|
Change
from
Dec
2023
£m
|
Property,
plant and equipment
|
9.1
|
9.4
|
9.2
|
(0.3)
|
Intangible assets
|
34.0
|
21.8
|
22.0
|
12.2
|
Deferred
tax asset
|
1.7
|
2.4
|
2.1
|
(0.7)
|
Trade and
other receivables
|
29.9
|
31.5
|
31.8
|
(1.6)
|
Contract
assets
|
1.1
|
0.8
|
0.8
|
0.3
|
Income
tax receivable
|
-
|
0.2
|
-
|
(0.2)
|
Cash
including money market deposits
|
28.1
|
38.8
|
43.2
|
(10.7)
|
Trade and
other payables
|
(26.9)
|
(24.7)
|
(23.9)
|
(2.2)
|
Contract
liabilities
|
(2.2)
|
(2.5)
|
(2.0)
|
0.3
|
Income
tax payable
|
(0.9)
|
-
|
(0.7)
|
(0.9)
|
Lease
liabilities
|
(6.7)
|
(7.5)
|
(8.3)
|
0.8
|
Provisions
|
(0.8)
|
(0.8)
|
(0.8)
|
-
|
Other
non-current liabilities
|
(0.4)
|
-
|
-
|
(0.4)
|
Net assets
|
66.0
|
69.4
|
73.4
|
(3.4)
|
Rightmove's balance sheet as at 30
June 2024 shows total equity of £66.0m (31 December
2023: £69.4m) and reflects the continued strong trading
position and returns to shareholders.
The increase in intangible assets
to £34.0m is mostly due to the acquisition of HomeViews (see note
13), generating goodwill and intangible assets on consolidation of
£8.8m, as well as capitalisation of increased investment in product
development of £4.4m.
Trade and other receivables of
£29.9m, are down £1.6m on December 2023 reflecting a decrease in
underlying trade receivables, partially offset by an increase in
prepayments and other receivables reflecting timing. Trade
and other payables of £26.9m increased due to timing of accruals at
half year. Trade payments continue to be made in line with
contractually agreed terms.
Cash flow and liquidity
Rightmove remained debt-free
during the period and cash generation remained strong, with cash
generated from operating activities of £143.2m (30 June 2023:
£131.7m) and operating cash conversion of
109%(7) .
The closing Group cash balance at
30 June 2024, including money market deposits, was £28.1m (31
December 2023: £38.8m). Cash remains invested in short-term,
easily accessible money market deposits, including in a green
money-market fund.
The Group bought back and
cancelled 10.1 million ordinary shares during the period (2023:
10.0m), at a cost of £55.0m (excluding expenses) as part of its
ongoing share buyback programme (2023: £55.0m). Dividends totalling
£45.2m in relation to the final 2023 dividend were also paid during
the period (2023: £42.6m).
Shareholder returns
Consistent with the policy of
growing dividends broadly in line with the increase in Underlying
EPS, the Directors are declaring an interim dividend of 3.7p per
ordinary share, which will be paid on 25 October 2024 to all
shareholders on the register as at 27 September 2024. We intend to
continue the share buyback programme in the second half of
2024.
Alison Dolan
Chief Financial Officer
(1) Agency ARPA is
calculated as revenue from Agency advertisers in a given month
divided by the total number of advertisers during the month,
measured as a monthly average over the year
(2) New Homes ARPA is
calculated as revenue from New Homes developers in a given month
divided by the total number of developers during the month,
measured as a monthly average over the year
(3) Underlying operating
costs are defined as administrative expenses before share-based
payments charges (including the related National
Insurance)
(4) Underlying operating
profit is defined as operating profit before share-based payments
charges (including the related National
Insurance)
(5) Underlying operating
margin is defined as the underlying operating profit as a
percentage of revenue
(6) Underlying basic EPS
is defined as profit for the year before share-based payments
charges (including the related National Insurance and appropriate
tax adjustments), divided by the weighted average number of
ordinary shares in issue for the period
(7) Cash generated from
operating activities of £143.2m (2023: £131.7m) compared to
operating profit as reported in the income statement of £131.6m
(2023: £129.5m).
Principal Risks and
Uncertainties
The Board and Audit Committee
regularly review the principal risks to our business and the
position against the risk appetite and monitor progress to manage
risks accordingly.
Consideration is given to emerging
risks and to any changes in the internal or external environment
that could impact our strategy and the way we operate. We regularly
update our risks and responses where required.
The Board and Audit Committee have
reviewed the principal risks and uncertainties faced by the Group.
The risks set out in the 2023 Annual Report remain relevant for
2024 and there have been no significant changes.
Statement of Directors'
responsibilities
The Directors are responsible for
preparing the interim report in accordance with applicable law and
regulations. The Directors confirm that the condensed consolidated
interim financial information has been prepared in accordance with
UK-adopted International Accounting Standard 34, 'Interim Financial
Reporting' and the Disclosure and Transparency Rules sourcebook of
the United Kingdom's Financial Conduct Authority.
The interim management report
includes a fair review of the information required by the
Disclosure and Transparency Rules paragraphs 4.2.7R and 4.2.8R,
namely:
·
an indication of important events that have
occurred during the six months ended 30 June 2024 and their impact
on the condensed set of financial information, and a description of
the principal risks and uncertainties for the remaining six months
of the financial year; and
·
material related-party transactions during the
six months ended 30 June 2024 and any material changes in the
related-party transactions described in the Annual Report and
Accounts 2023.
The Directors of Rightmove plc are
listed in the Annual Report and Accounts 2023. A list of current
Directors is maintained on the Rightmove plc website:
https://plc.rightmove.co.uk.
The Directors are responsible for
the maintenance and integrity of, amongst other things, the
financial and corporate governance information as provided on the
Rightmove website (https://plc.rightmove.co.uk). Legislation in the
United Kingdom governing the preparation and dissemination of
financial information may differ from legislation in other
jurisdictions.
The interim report was approved by
the Board of Directors and authorised for issue on 26 July 2024 and
signed on its behalf by:
Johan
Svanstrom
Alison
Dolan
Chief Executive
Officer
Chief Financial Officer
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE
INCOME
for the six months ended
30 June 2024
|
Note
|
Six months ended
30 June 2024
|
Six months ended
30 June 2023
|
Year ended
31 December 2023
|
|
|
£000
|
£000
|
£000
|
|
|
|
|
|
Revenue
|
5
|
192,114
|
179,454
|
364,316
|
|
|
|
|
|
Administrative expenses
|
|
(60,512)
|
(49,944)
|
(106,283)
|
|
|
|
|
|
Operating
profit
|
|
131,602
|
129,510
|
258,033
|
|
|
|
|
|
Operating profit before
share-based incentive charge
Share- based incentive
charge
|
6
|
135,138
(3,536)
|
133,171
(3,661)
|
264,570
(6,537)
|
|
|
|
|
|
|
|
|
|
|
Financial
income
|
|
1,356
|
1,008
|
2,227
|
Financial
expenses
|
|
(270)
|
(234)
|
(491)
|
|
|
|
|
|
Net
financial income
|
|
1,086
|
774
|
1,736
|
|
|
|
|
|
Profit before
tax
|
|
132,688
|
130,284
|
259,769
|
|
|
|
|
|
Income
tax expense
|
9
|
(33,748)
|
(30,840)
|
(60,618)
|
|
|
|
|
|
Profit for the period being
total comprehensive income
|
|
98,940
|
99,444
|
199,151
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
Equity
holders of the Parent
|
|
98,940
|
99,444
|
199,151
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
(pence)
|
|
|
|
|
Basic
|
7
|
12.4
|
12.1
|
24.5
|
Diluted
|
7
|
12.4
|
12.1
|
24.4
|
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL
POSITION
Company number
06426485
at
30 June 2024
|
Note
|
30 June 2024
|
30 June 2023
|
31 December 2023
|
|
|
£000
|
£000
|
£000
|
Non-current
assets
|
|
|
|
|
Property,
plant and equipment
|
|
9,083
|
9,226
|
9,385
|
Intangible assets
|
13
|
34,005
|
22,008
|
21,842
|
Deferred
tax assets
|
9
|
1,690
|
2,059
|
2,383
|
|
|
|
|
|
Total non-current
assets
|
|
44,778
|
33,293
|
33,610
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Trade and
other receivables
|
10
|
29,928
|
31,798
|
31,474
|
Contract
assets
|
5
|
1,084
|
838
|
759
|
Income
tax receivable
|
|
-
|
-
|
165
|
Money
market deposits
|
|
5,363
|
5,131
|
5,224
|
Cash and
cash equivalents
|
|
22,740
|
38,091
|
33,641
|
|
|
|
|
|
Total current
assets
|
|
59,115
|
75,858
|
71,263
|
|
|
|
|
|
Total
assets
|
|
103,893
|
109,151
|
104,873
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Trade and
other payables
|
11
|
(26,921)
|
(23,871)
|
(24,737)
|
Lease
liabilities
|
|
(2,387)
|
(2,274)
|
(2,291)
|
Contract
liabilities
|
5
|
(2,157)
|
(1,958)
|
(2,536)
|
Income
tax payable
|
|
(881)
|
(668)
|
-
|
|
|
|
|
|
Total current
liabilities
|
|
(32,346)
|
(28,771)
|
(29,564)
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Lease
liabilities
|
|
(4,308)
|
(6,120)
|
(5,112)
|
Provisions
|
|
(847)
|
(835)
|
(841)
|
Other
non-current liabilities
|
13
|
(400)
|
-
|
-
|
|
|
|
|
|
Total non-current
liabilities
|
|
(5,555)
|
(6,955)
|
(5,953)
|
|
|
|
|
|
Total
liabilities
|
|
(37,901)
|
(35,726)
|
(35,517)
|
|
|
|
|
|
Net assets
|
|
65,992
|
73,425
|
69,356
|
|
|
|
|
|
Equity
|
|
|
|
|
Share
capital
|
|
804
|
828
|
814
|
Other
reserves
|
|
628
|
604
|
618
|
Retained
earnings (net of own shares held)
|
|
64,560
|
71,993
|
67,924
|
Total equity attributable to
the equity holders of the Parent
|
|
65,992
|
73,425
|
69,356
|
CONDENSED CONSOLIDATED
INTERIM STATEMENT OF CASH FLOWS
for the
six months ended 30 June 2024
|
Note
|
6 months ended
30 June 2024
|
6 months ended
30 June 2023
|
Year ended
31 December 2023
|
|
|
£000
|
£000
|
£000
|
Cash flows from operating
activities
|
|
|
|
|
Profit
for the period
|
|
98,940
|
99,444
|
199,151
|
Adjustments for:
|
|
|
|
|
Depreciation charges
|
|
1,782
|
1,759
|
3,424
|
Amortisation charges
|
|
967
|
770
|
1,560
|
Financial
income
|
|
(1,356)
|
(1,008)
|
(2,227)
|
Financial
expenses
|
|
270
|
234
|
491
|
Charge on
investment
|
13
|
3,000
|
-
|
-
|
Share-based payments
|
6
|
3,330
|
3,315
|
5,886
|
Income
tax expense
|
9
|
33,748
|
30,840
|
60,618
|
Operating cash flow before
changes in working capital
|
|
140,681
|
135,354
|
268,903
|
|
|
|
|
|
Decrease/(increase) in trade and other receivables
|
10
|
1,153
|
(5,000)
|
(4,503)
|
Increase
in trade and other payables
|
11
|
2,056
|
2,064
|
3,863
|
Increase
in provisions
|
|
-
|
6
|
-
|
Increase
in contract assets
|
5
|
(325)
|
(384)
|
(305)
|
Decrease
in contract liabilities
|
5
|
(379)
|
(367)
|
211
|
|
|
|
|
|
Cash generated from
operating activities
|
|
143,186
|
131,673
|
268,169
|
|
|
|
|
|
Financial
expenses paid
|
|
(267)
|
(235)
|
(479)
|
Income
taxes paid
|
|
(32,855)
|
(30,179)
|
(60,979)
|
Net cash from operating activities
|
|
110,064
|
101,259
|
206,711
|
|
|
|
|
|
Cash flows used in investing
activities
|
|
|
|
|
Interest
received on cash and cash equivalents
|
|
1,548
|
816
|
1,694
|
Increase
in money market deposits
|
|
-
|
(84)
|
-
|
Acquisition of property, plant and equipment
|
|
(866)
|
(456)
|
(2,018)
|
Acquisition of subsidiary, net of cash received
Acquisition of investment
|
13
13
|
(7,552)
(3,000)
|
-
-
|
-
-
|
Acquisition of intangible assets
|
|
(4,363)
|
(704)
|
(1,328)
|
|
|
|
|
|
Net cash used in investing
activities
|
|
(14,233)
|
(428)
|
(1,652)
|
|
|
|
|
|
Cash flows used in financing
activities
|
|
|
|
|
Net
dividends paid
|
8
|
(45,214)
|
(42,580)
|
(71,651)
|
Purchase
of own shares for cancellation
|
12
|
(55,000)
|
(54,095)
|
(130,000)
|
Purchase
of own shares for share incentive plans
|
12
|
(5,213)
|
-
|
(1,998)
|
Share-related expenses
|
|
(385)
|
(360)
|
(922)
|
Payment
of lease liabilities
|
|
(1,306)
|
(1,275)
|
(2,530)
|
Proceeds on exercise of
share-based incentives
|
386
|
481
|
594
|
|
|
|
|
|
Net cash used in financing
activities
|
|
(106,732)
|
(97,829)
|
(206,507)
|
Net
increase/(decrease) in cash and cash equivalents
|
|
(10,901)
|
3,002
|
(1,448)
|
Cash and
cash equivalents at 1 January
|
|
33,641
|
35,089
|
35,089
|
Cash and cash equivalents at period end
|
|
22,740
|
38,091
|
33,641
|
|
|
|
|
| |
CONDENSED CONSOLIDATED
INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS'
EQUITY
for the six months ended
30 June 2024
|
Share
capital
£000
|
Own shares
held
£000
|
Other
reserves
£000
|
Reverse acquisition
reserve
£000
|
Retained
earnings
£000
|
Total
equity
£000
|
|
|
|
|
|
|
|
At
1 January 2023
|
838
|
(13,898)
|
456
|
138
|
80,629
|
68,163
|
|
|
-
|
|
|
|
|
Total comprehensive income
Profit for the period
|
-
|
-
|
-
|
99,444
|
99,444
|
|
|
|
|
|
|
|
Transactions with owners recorded directly in
equity
|
|
|
|
|
|
|
Share-based payments
|
-
|
-
|
-
|
-
|
3,315
|
3,315
|
Tax debit in respect of share-based
incentives recognised directly in equity
|
-
|
-
|
-
|
-
|
(2)
|
(2)
|
Exercise of share-based
incentives
|
-
|
517
|
-
|
-
|
(36)
|
481
|
Cancellation of own
shares
|
(10)
|
-
|
10
|
-
|
(55,000)
|
(55,000)
|
Net Dividends paid
|
-
|
-
|
-
|
-
|
(42,588)
|
(42,588)
|
Cost of share purchases
|
-
|
-
|
-
|
-
|
(388)
|
(388)
|
At
30 June 2023
|
828
|
(13,381)
|
466
|
138
|
85,374
|
73,425
|
|
|
|
|
|
|
|
|
At
1 January 2023
|
838
|
(13,898)
|
456
|
138
|
80,629
|
68,163
|
|
|
|
|
|
|
|
Total comprehensive income
|
-
|
-
|
-
|
-
|
199,151
|
199,151
|
Profit for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners recorded directly in
equity
|
|
|
|
|
|
|
Share-based payments
|
-
|
-
|
-
|
-
|
5,886
|
5,886
|
Tax credit in respect of share-based
incentives recognised directly in equity
|
-
|
-
|
-
|
-
|
133
|
133
|
Net dividends
|
-
|
-
|
-
|
-
|
(71,651)
|
(71,651)
|
Exercise of share-based
incentives
|
-
|
2,156
|
-
|
-
|
(1,562)
|
594
|
Purchase of shares for share
incentive plan
|
-
|
(1,998)
|
-
|
-
|
|
(1,998)
|
Cancellation of own
shares
|
(24)
|
-
|
24
|
-
|
(130,000)
|
(130,000)
|
Cost of share purchases
|
-
|
-
|
-
|
-
|
(922)
|
(922)
|
At
31 December 2023
|
814
|
(13,740)
|
480
|
138
|
81,664
|
69,356
|
|
|
|
|
|
|
|
At
1 January 2024
|
814
|
(13,740)
|
480
|
138
|
81,664
|
69,356
|
|
|
|
|
|
|
|
Total comprehensive income
Profit for the period
|
-
|
-
|
-
|
-
|
98,940
|
98,940
|
|
|
|
|
|
|
|
Transactions with owners recorded directly in
equity
|
|
|
|
|
|
Share-based payments
|
-
|
-
|
-
|
-
|
3,330
|
3,330
|
Tax
debit in respect of share-based incentives recognised directly in
equity
|
-
|
-
|
-
|
-
|
(196)
|
(196)
|
Exercise of share-based incentives
|
-
|
488
|
-
|
-
|
(102)
|
386
|
Purchase of shares for plans
|
-
|
(5,213)
|
-
|
-
|
-
|
(5,213)
|
Cancellation of own shares
|
(10)
|
-
|
10
|
-
|
(55,000)
|
(55,000)
|
Net
dividends paid
|
-
|
-
|
-
|
-
|
(45,226)
|
(45,226)
|
Cost of share purchases
|
-
|
-
|
-
|
-
|
(385)
|
(385)
|
At
30 June 2024
|
804
|
(18,465)
|
490
|
138
|
83,025
|
65,992
|
|
|
|
|
|
|
|
|
|
|
| |
NOTES
1 General
information
Rightmove plc (the Company) is a public limited Company registered
in England (Company no. 6426485) domiciled in the United Kingdom
(UK). The condensed consolidated interim financial statements
('interim financial statements') as at and for the six months ended
30 June 2024 comprise the Company and its interest in its
subsidiaries (together referred to as 'the Group'). The principal
business of the Group is the operation of the Rightmove platforms,
which have the largest audience of any UK property portal (as
measured by time on site).
The consolidated financial
statements of the Group as at and for the year ended
31 December 2023 are available upon request to the
Company Secretary from the Company's registered office at 2
Caldecotte Lake Business Park, Caldecotte Lake Drive, Caldecotte,
Milton Keynes, MK7 8LE or are available on the corporate
website at plc.rightmove.co.uk.
Basis of preparation
These condensed interim financial
statements, for the six months ended 30 June 2024, have been
prepared in accordance with IAS 34 Interim Financial
Reporting, under UK-adopted international accounting standards, and
the Disclosure and Transparency Rules of the United Kingdom's
Financial Conduct Authority. They should be read in conjunction
with the Group's last annual consolidated financial statements as
at and for the year ended 31 December 2023 ('last annual financial
statements'). The interim financial statements do not include all
the information required for a complete set of financial statements
prepared in accordance with UK-adopted international accounting
standards. However, selected explanatory notes are included to
explain events and transactions that are significant to an
understanding of the changes in the Group's financial position and
performance since the last annual financial statements. New
standards and amendments effective from 1 January 2024 have not had
a material impact on the interim consolidated financial statements
of the Group.
The interim financial statements
were approved by the Board of Directors on 25 July 2024 and the
results for the current and comparative period are unaudited. The
auditor, Ernst &Young LLP, has carried out a review of the
interim financial statements and its report is set out at the end
of this document.
The interim financial information
does not constitute statutory accounts within the meaning of
sections 434 and 435 of the Companies Act 2006. Statutory accounts
for the year ended 31 December 2023 were approved by the Board of
Directors on 29 February 2024 and have been delivered to the
Registrar of Companies. The report of the auditors was
unqualified.
Alternative performance
measures
In the analysis of the Group's
financial performance, certain information disclosed in the
financial statements may be prepared on a non-GAAP basis or has
been derived from amounts calculated in accordance with IFRS but
are not themselves an expressly permitted GAAP measure. These
measures are reported in line with the way in which financial
information is analysed by management and designed to increase
comparability of the Group's year-on-year financial position, based
on its operational activity. The key alternative performance
measures presented by the Group are:
· Underlying
profit: which is defined as profit
for the year before share-based payments charges (including the
related National Insurance and appropriate tax
adjustments);
· Underlying basic earnings
per share (EPS): which is defined
as underlying profit, divided by the weighted average number of
ordinary shares outstanding in the period;
· Underlying operating
profit: which is defined as
operating profit before share-based payments charges (including the
related National Insurance);
· Underlying
costs: which is defined as
administrative expenses before share-based payments charges
(including the related National Insurance); and
· Underlying operating
margin: which is defined as the
underlying operating profit as a percentage of revenue.
The Directors believe that these
alternative performance measures provide a more appropriate measure
of the Group's business performance, as the share-based payments
charge is a non-cash charge that is not entirely driven by the
principal operational activity of the Group. The Directors
therefore consider underlying operating profit to be the most
appropriate indicator of the performance of the business and
year-on-year trends.
A reconciliation of the underlying
performance measures to the GAAP measures are shown
below:
Underlying profit
A reconciliation of the profit
for the period to the underlying profit is presented
below:
|
6 months
ended
30 June
2024
£000
|
6 months
ended
30
June 2023
£000
|
Profit for the period
|
98,940
|
99,444
|
Share-based incentives
charge
|
3,330
|
3,315
|
NI on share-based
incentives
|
206
|
346
|
Impact on tax charge
|
(817)
|
(684)
|
Underlying profit
|
101,659
|
102,421
|
Underlying profit is used instead of
profit to calculate the underlying basic earnings per share, which
is underlying profit divided by the weighted average number of
ordinary shares in issue for the period, whereas earnings per share
is profit divided by weighted average number of ordinary shares in
issue for the period (note 7).
Underlying operating profit
A reconciliation of the operating
profit to the underlying operating profit is presented
below:
|
6 months
ended
30 June
2024
£000
|
6 months
ended
30
June 2023
£000
|
Operating profit
|
131,602
|
129,510
|
Share-based incentives
charge
|
3,330
|
3,315
|
NI on share-based
incentives
|
206
|
346
|
Underlying operating profit
|
135,138
|
133,171
|
Underlying operating profit is used
to calculate the underlying operating margin, which is underlying
operating profit as a proportion of revenue, whereas the operating
margin calculated as operating profit as a proportion of
revenue.
Underlying costs
A reconciliation of the
administrative expenses to the underlying costs is presented
below:
|
6 months
ended
30 June
2024
£000
|
6 months
ended
30
June 2023
£000
|
Administrative expenses
|
60,512
|
49,944
|
Share-based incentives
charge
|
(3,330)
|
(3,315)
|
NI on share-based
incentives
|
(206)
|
(346)
|
Underlying costs
|
56,976
|
46,283
|
Going concern
The Directors have performed a
detailed going concern review and tested the Group's liquidity in a
range of scenarios, as set out below.
Throughout the period, the Group was
debt-free, remained strongly cash generative and had a cash balance
of £22.7m and money market deposits of £5.4m at 30 June 2024 (31
December 2023: cash balance £33.6m and money market deposits
£5.2m).
The Group bought back shares to the
value of £55.0m by 30 June 2024 (period ended 30 June 2023: £55.0m)
and paid the 2023 final dividend of £45.2m in May 2024 (period
ended 30 June 2023: £42.6m).
In reaching its assessment on going
concern, the Directors have used the most recent Board approved
forecasts for the Group for the period to 31 December 2025 ("the
going concern period"), which have been modelled to reflect the
expected impact of current economic conditions on trading, as set
out in these financial statements.
In stress testing the future cash
flows of the Group, the Directors modelled a range of scenarios
which considered the effect on the Group of reductions of varying
severity in the number of housing transactions for the period to 31
December 2025 and modelled the likely timing of cashflows from our
customers during the going concern period. These included severe
but plausible downside scenarios that are considered to pose the
greatest threat to the business model and future performance of the
Group, such as: an economic shock, increased competition and new
disruptive technologies, or a cyber threat. The model considered
the impact of changes in the key drivers of the Group's revenues,
including customer numbers and average revenue per advertiser
(ARPA) - one scenario being a 30% reduction in revenue,
irrespective of cause. Cost assumptions were also considered in
each of the severe but plausible scenarios, including an increase
in marketing costs and IT costs, employee recruitment and retention
costs, and higher spend on innovation and protection of the
platform. The scenarios were stress tested individually and in
combination. In all combinations of the scenarios tested, the Group
remained cash positive and debt-free.
The Directors also reviewed the
results of a reverse stress test, which was undertaken to provide
an illustration of the scenario required to exhaust cash balances.
The possibility of this scenario arising was assessed to be highly
remote and could arise only in extreme circumstances, much more
severe than the scenarios modelled above.
The Directors are confident that the
Group will remain cash positive and will have sufficient funds to
continue to meet its liabilities as they fall due for at least the
period to 31 December 2025 and have therefore prepared the
financial statements on a going concern basis.
2 Material accounting policies
The accounting policies applied in
these interim financial statements are the same as those applied by
the Group's consolidated financial statements as at and for the
year ended 31 December 2023.
3 Judgements and estimates
In preparing these interim financial
statements in accordance with UK Adopted International accounting
standards, management is required to make judgements and estimates
that affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expenses.
Management has determined that there are no significant areas
of estimation uncertainty or critical judgements in applying
accounting policies that have a significant effect on the amounts
recognised in the consolidated financial statements, as described
in the last annual financial statements.
4 Operating segments
Rightmove has one reportable
segment, being the consolidated result. Whilst the Chief Operating
Decision Maker separately monitors revenue for different business
units they do not separately monitor business unit profit,
operating costs, financial income, financial expenses and income
taxes for these areas of the business, instead monitoring this on a
consolidated level.
The Group presents internal
financial information that measures business performance to the
Chief Executive Officer, who is the Group's Chief Operating
Decision Maker. This information is used for the purpose of making
decisions about resources to be allocated and of assessing
performance. This financial information includes information on
revenue performance and specific monitoring of trade receivable
levels for each of the following business units:
• 'Agency' which provides resale and
lettings property advertising services on Rightmove's
platforms;
• 'New Homes' which provides
property advertising services to new home developers and housing
associations on Rightmove's platforms; and
• 'Other' which comprises Overseas
and Commercial property advertising services; non-property
advertising services of Third-Party advertising and Data Services;
and the mortgages business.
All revenues in all periods are
derived from third parties. The disaggregated revenue is included
within Note 5.
5 Revenue
The Group's operations and main
revenue streams are those described in the last annual financial
statements. The Group's revenue is derived from contracts with
customers.
Disaggregation of
revenue
In the following table, revenue is
disaggregated by property and non-property advertising revenue. The
table also includes a reconciliation of the disaggregated revenue
with the Group's business units (see Note 4).
Six months
ended
30 June
2024
|
Estate
Agency
|
New Homes
|
Other
|
Total
|
£000
|
£000
|
£000
|
£000
|
Revenue
stream
|
|
|
|
|
Property
products
|
138,488
|
33,867
|
9,913
|
182,268
|
Non-property products
|
-
|
-
|
9,846
|
9,846
|
|
138,488
|
33,867
|
19,759
|
192,114
|
|
|
|
|
|
Six
months ended
30 June
2023
|
Estate
Agency
£000
|
New
Homes
£000
|
Other
£000
|
Total
£000
|
Revenue
stream
|
|
|
|
|
Property
products
|
129,374
|
32,634
|
9,184
|
171,192
|
Non-property products
|
-
|
-
|
8,262
|
8,262
|
|
129,374
|
32,634
|
17,446
|
179, 454
|
|
|
|
|
|
Year
ended
31
December 2023
|
Estate
Agency
£000
|
New
Homes
£000
|
Other
£000
|
Total
£000
|
Revenue
stream
|
|
|
|
|
Property
products
|
261,954
|
66,447
|
18,877
|
347,278
|
Non-property products
|
-
|
-
|
17,038
|
17,038
|
|
261,954
|
66,447
|
35,915
|
364,316
|
Contract
balances
The following table provides
information about contract assets and contract liabilities from
contracts with customers.
|
|
Contract
Assets
£000
|
Contract
Liabilities
£000
|
Contract balance as at 31 December
2023
|
|
759
|
(2,536)
|
Performance obligations satisfied in
previous periods
|
|
(759)
|
-
|
Performance obligations satisfied in
current periods
|
|
-
|
2,290
|
Accrued/(deferred) during the
period
|
|
1,084
|
(1,911)
|
Contract balances as at 30 June 2024
|
|
1,084
|
(2,157)
|
|
|
|
| |
The contract assets primarily relate
to the Group's rights to consideration for services provided but
not invoiced at the reporting date. The contract assets are
transferred to trade receivables when invoiced and the rights have
become unconditional.
The contract liabilities primarily
relate to the advance consideration received from Estate Agency,
Overseas and Commercial customers, for which revenue is recognised
as or when the services are provided.
6 Share-based payments
The Group operates share-based
incentive schemes for executive Directors and employees; a Savings
Related Share Option Scheme (Sharesave Plan) and Share Incentive
Plan (SIP) for all employees; a performance share plan (PSP) for
Directors; and a Deferred Share Bonus Plan (DSP) for the Directors
and selected senior management. There is also a restricted share
plan (RSP) in operation which is awarded on an ad-hoc basis, based
on service conditions only, for selected senior
individuals.
Four new share-based incentive
awards were made during the period to 30 June 2024:
· 335,970 PSP awards were granted on 12 March 2024 subject to
Earnings Per Share (EPS), Revenue and Total Shareholders Return
(TSR) performance. Performance will be measured over three
financial years (1 January 2024 - 31 December 2025). The vesting on
12 March 2026 of 50% of the 2024 PSP awards will be dependent on
the relative TSR performance condition measured over the three-year
performance period, with the remaining 50% dependent on the both
the satisfaction of the EPS growth and revenue targets in equal
measure. The PSP awards have been valued using the Monte Carlo
model for the TSR element and the Black Scholes model for the EPS
element.
· 605,476 DSP nil cost shares were awarded to executives and
senior management on 12 March 2024 following the achievement of the
2023 internal performance targets, with the right to exercise the
shares deferred until March 2026 (assuming service conditions are
met). The DSP awards were valued using the Black Scholes
model.
· 354,736 RSP nil cost shares were awarded to selected senior
management on 1 March 2024, and a further 16,008 on 6 June 2024,
subject only to service conditions over a one-to-three-year period.
Participants are not entitled to receive dividends on these awards.
RSP awards have been valued using the Black Scholes
model.
The total charge in relation to
share-based payments for the six months ended 30 June 2024 was
£3,536,000 (2023: £3,661,000): the charge in relation to the
share-based payments relating to all share-based incentive plans
was £3,330,000 (2023: £3,315,000); and the related National
insurance charge for the six months ended 30 June 2024 relating to
all awards was £206,000 (2023: £346,000).
7 Earnings per share (EPS)
|
|
Pence per share
|
|
£000
|
Basic
|
Diluted
|
Six months ended
30 June 2024
Profit after
tax
|
98,940
|
12.4
|
12.4
|
Underlying profit after
tax
|
|
101,659
|
12.8
|
12.8
|
Six months ended 30 June
2023
|
|
|
|
Profit
after tax
|
99,444
|
12.1
|
12.1
|
Underlying profit after tax
|
102,421
|
12.5
|
12.5
|
Year ended 31 December
2023
|
|
|
|
Profit
after tax
|
199,151
|
24.5
|
24.4
|
Underlying profit after tax
|
204,680
|
25.2
|
25.1
|
|
|
|
|
|
| |
Weighted average number of ordinary shares
(basic)
|
6 months ended
30 June 2024
Number of shares
|
6 months
ended
30 June 2023
Number of shares
|
Year
ended
31 December 2023
Number of shares
|
Issued ordinary shares at 1 January
less ordinary shares held by the EBT and SIP Trust
|
811,252,473
|
835,094,530
|
835,094,530
|
Less own shares held in treasury at
the beginning of the year
|
(11,709,197)
|
(12,185,222)
|
(12,185,222)
|
Weighted effect of own shares
purchased for cancellation
|
(4,040,251)
|
(3,388,739)
|
(9,991,531)
|
Weighted effect of share-based
incentives exercised
|
196,083
|
267,142
|
433,805
|
Weighted
effect of shares purchased by the EBT
|
(563,497)
|
-
|
(14,726)
|
|
795,135,611
|
819,787,711
|
813,336,856
|
Weighted average number of ordinary shares (diluted)
For diluted EPS, the weighted
average number of ordinary shares in issue is adjusted to assume
conversion of all potentially dilutive shares. The Group's
potential dilutive instruments are in respect of share-based
incentives granted to employees, which will be settled by ordinary
shares held by the Employees' Share Trust (EBT), SIP Trust and
shares held in treasury.
|
6 months ended
30 June 2024
Number of shares
|
6 months
ended
30 June 2023
Number of shares
|
Year
ended
31 December 2023
Number of shares
|
Weighted
average number of ordinary shares (basic)
|
795,135,611
|
819,787,711
|
813,336,856
|
Dilutive
impact of share-based incentives outstanding
|
1,783,649
|
2,005,735
|
2,002,000
|
|
796,919,260
|
821,793,446
|
815,338,856
|
8 Dividends
Dividends declared and
paid by the Company were as follows:
|
6 months ended
30 June 2024
|
6
months ended
30 June 2023
|
Year
ended 31 December 2023
|
|
|
|
|
|
|
|
|
|
|
Pence per
share
|
£000
|
Pence per share
|
£000
|
Pence per share
|
£000
|
|
2022 final
dividend paid
|
|
|
5.2
|
42,588
|
5.2
|
42,588
|
|
2023
interim dividend paid
|
|
|
-
|
-
|
3.6
|
29,084
|
|
2023 final
dividend paid
|
5.7
|
45,226
|
|
|
|
|
|
|
5.7
|
45,226
|
5.2
|
42,588
|
8.8
|
71,672
|
|
Unclaimed
dividends returned
|
(12)
|
|
(8)
|
|
(21)
|
|
Net
dividends included in the
statement
of cash flows
|
45,214
|
|
42,580
|
|
71,651
|
|
After the period end the Board
approved an interim dividend of 3.7p (2023: 3.6p) per qualifying
ordinary share being £28,700,000
(2023: £29,084,000).
The 2023 final dividend of
£45,226,000 (5.7p per qualifying share) was paid on 24 May 2024. It
was £104,000 lower than that reported in the 2023 annual accounts
due to a decrease in the ordinary shares entitled to a dividend
between 1 March 2024 and the -final dividend record date of 26
April 2024.
The terms of the EBT provide that dividends payable on the ordinary
shares held by the EBT are waived.
9 Taxation
The income tax expense of
£33,748,000 (2023: £30,840,000) is recognised based on management's
best estimate of the consolidated effective tax rate expected for
the full financial year, applied to the profit before tax for the
six-month period. The Group's consolidated effective tax rate for
the six months ended 30 June 2024 was 25.4%
(2023: 23.7%). The difference between the standard rate of
25.0% and the Group's effective rate of 25.4% as at 30 June 2024 is
attributable to the impact of non-deductible items.
The net deferred tax asset of £1,690,000 (31 December 2023:
£2,383,000 and 30 June 2023: £2,059,000) comprises a deferred tax
asset of £3,089,000 (31 December 2023: £3,145,000 and 30 June
2023: £2,791,000) and a deferred tax liability of £1,399,000
(31 December 2023: £762,000 and 30 June 2023: £732,000).
The deferred tax asset is mostly in
respect of equity settled share-based incentives and provisions.
The deferred tax asset arising on equity settled share-based
incentives was recognised in profit or loss to the extent that the
related equity settled share-based payments charge was recognised
in the statement of comprehensive income. The deferred tax
liability is mostly in respect of the intangible assets recognised
on acquisition HomeViews in 2024 and the impact of 100% first year
allowances on fixed assets.
The deferred tax assets and
liabilities as at 30 June 2024 have been calculated at a rate of
25% which is the expected rate that will prevail at the
date upon which the net deferred tax asset will reverse in the
future, based on substantively enacted UK tax rates.
10 Trade and other
receivables
|
30 June 2024
|
30 June 2023
|
31 December 2023
|
|
£000
|
£000
|
£000
|
Trade receivables
|
23,435
|
24,721
|
25,740
|
Less provision for impairment of
trade receivables
|
(990)
|
(966)
|
(1,249)
|
Net trade receivables
|
22,445
|
23,755
|
24,491
|
Prepayments
|
6,547
|
7,640
|
6,259
|
Interest receivable
|
62
|
232
|
405
|
Other debtors
|
874
|
171
|
319
|
|
29,928
|
31,798
|
31,474
|
11 Trade and other payables
|
30 June 2024
|
30 June 2023
|
31 December 2023
|
|
£000
|
£000
|
£000
|
Trade payables
|
2,224
|
2,429
|
2,057
|
Accruals
|
9,049
|
7,697
|
7,662
|
Other creditors
|
1,941
|
896
|
1,510
|
Other taxation and social
security
|
13,707
|
12,849
|
13,508
|
|
26,921
|
23,871
|
24,737
|
12 Reconciliation of movement in capital and
reserves
Own
shares purchased for cancellation
The total number of shares bought back in the six months to
30 June 2024 was 10,067,328 (2023: 10,031,573)
representing 1.2% (2023: 1.2%) of the ordinary shares in issue
(excluding shares held in treasury). All the shares bought
back in the period were cancelled. The shares were acquired on the
open market at a total consideration (excluding costs) of
£55,000,000 (2023: £55,000,000). The maximum and minimum
prices paid were £5.84 (2023: £5.89) and £5.00
(2023: £4.90) per share respectively.
Own
shares held - £000
|
EBT shares
reserve
£000
|
SIP shares
reserve
£000
|
Treasury
shares
£000
|
Total
own shares
held
£000
|
Own shares held as at 1 January
2023
|
(3,157)
|
(4,952)
|
(5,789)
|
(13,898)
|
Share-based incentives
exercised
|
89
|
272
|
84
|
445
|
SIP releases in the
period
|
-
|
72
|
-
|
72
|
Own shares held as at 30 June
2023
|
(3,068)
|
(4,608)
|
(5,705)
|
(13,381)
|
|
|
|
|
|
Own shares held as at 1 January
2023
|
(3,157)
|
(4,952)
|
(5,789)
|
(13,898)
|
Shares purchased for SIP
|
(725)
|
(1,273)
|
-
|
(1,998)
|
Shares transferred to SIP
|
725
|
(725)
|
-
|
-
|
Share-based incentives
exercised
|
1,297
|
557
|
230
|
2,084
|
SIP releases in the year
|
-
|
72
|
-
|
72
|
Own shares held as at 31 December
2023
|
(1,860)
|
(6,321)
|
(5,559)
|
(13,740)
|
|
|
|
|
|
Own
shares held as at 1 January 2024
|
(1,860)
|
(6,321)
|
(5,559)
|
(13,740)
|
Shares purchased for RSP
|
(5,213)
|
-
|
-
|
(5,213)
|
Share-based incentives
exercised
|
36
|
289
|
140
|
465
|
SIP releases in the
period
|
-
|
23
|
-
|
23
|
Own
shares held as at 30 June 2024
|
(7,037)
|
(6,009)
|
(5,419)
|
(18,465)
|
Own
shares held - number of shares
|
EBT shares
reserve
|
SIP shares
reserve
|
Treasury
shares
|
Total
own
shares
held
|
Own shares held as at 1 January
2023
|
1,375,963
|
930,592
|
12,185,222
|
14,491,777
|
Share-based incentives
exercised
|
(184,563)
|
(52,980)
|
(176,955)
|
(414,498)
|
SIP releases in the
period
|
-
|
(12,200)
|
-
|
(12,200)
|
Own shares held as at 30 June
2023
|
1,191,400
|
865,412
|
12,008,267
|
14,065,079
|
Own shares held as at 1 January
2023
|
1,375,963
|
930,592
|
12,185,222
|
14,491,777
|
Shares purchased for SIP
|
127,240
|
226,335
|
-
|
353,575
|
Shares transferred to SIP
|
(127,240)
|
127,240
|
-
|
-
|
Share-based incentives
exercised
|
(346,044)
|
(104,740)
|
(476,025)
|
(926,809)
|
SIP releases in the year
|
-
|
(12,200)
|
-
|
(12,200)
|
Shares held as at 31 December
2023
|
1,029,919
|
1,167,227
|
11,709,197
|
13,906,343
|
|
|
|
|
|
Own
shares held as at 1 January 2024
|
1,029,919
|
1,167,227
|
11,709,197
|
13,906,343
|
Shares purchased for RSP
|
915,626
|
-
|
-
|
915,626
|
Share-based incentives
exercised
|
(75,376)
|
(53,670)
|
(291,226)
|
(420,272)
|
SIP releases in the
period
|
-
|
(4,275)
|
-
|
(4,275)
|
Shares held as at 30 June 2024
|
1,870,169
|
1,109,282
|
11,417,971
|
14,397,422
|
(a) EBT shares reserve
This reserve represents the cost of
own shares acquired by the EBT less any exercises of share-based
incentives. At 30 June 2024, the EBT held 1,870,169 (June 2023:
1,191,400) ordinary shares in the Company, representing 0.2% (June
2023: 0.1%) of the ordinary shares in issue (excluding shares held
in treasury). The market value of the shares held by the EBT at 30
June 2024 was £10,042,808 (June 2023: £6,233,405).
(b)
SIP shares reserve
In November 2014, the Group
established the Rightmove Share Incentive Plan Trust (SIP). This
reserve represents the cost of acquiring shares less any exercises
or releases of SIP awards. At
30 June 2024 the SIP Trust held 1,109,282 (June 2023:
865,412) ordinary shares in the Company of 0.1 pence each,
representing 0.1% (June 2023: 0.1%) of the ordinary shares in issue
(excluding shares held in treasury). The market value of the shares
held in the SIP Trust at the period end was £5,956,844 (June
2023: £4,525,350).
(c)
Treasury shares
This represents the cost of
acquiring shares held in treasury less any exercises of share-based
incentives. These shares were bought back in 2008 at an average
price of 47.60 pence and may be used to satisfy certain share-based
incentive awards.
Other reserves
This represents the Capital
Redemption Reserve in respect of own shares bought back and
cancelled. The movement in other reserves of £10,067 (June
2023: £10,000) comprises the nominal value of ordinary shares
cancelled during the period.
Retained earnings
The loss on exercise of share-based
incentives of £102,000 (June 2023: £36,000) is the difference
between the value that the shares held by the EBT, SIP and treasury
shares were originally acquired for and the exercise price at which
share-based incentives were exercised during the
period.
13 Acquisitions and
investments
HomeViews Limited
On 1 February 2024, the Group
acquired the entire ordinary share capital of HomeViews Limited, a
business providing the UK's biggest community of verified resident
reviews of property developments, with a particular focus on the
build to rent sector. This augments our existing Rental Operators
proposition, provides a basis for introducing resident reviews into
other business units, and will leverage the scale benefits that the
Rightmove platform and customer base bring to the HomeViews'
existing market. This acquisition has been treated in line
with IFRS 3 - business combinations.
|
|
2024
£000
|
Cash consideration
|
|
8,471
|
Total consideration
|
|
8,471
|
The following table provides a
reconciliation of the amounts included in the Consolidated
Statement of Cash Flows:
Net
cash flow on acquisition
|
2024
£000
|
Cash paid for subsidiary
|
8,471
|
Net of cash and cash equivalents
acquired
|
(519)
|
Net
cash cost paid for subsidiary
|
7,952
|
Deferred consideration
|
(400)
|
Net
cash outflow included in the statement of cash
flows
|
7,552
|
The total cash consideration paid of
£8,471,000 excludes acquisition costs of £590,000, which have been
recognised as an expense in the period in the Consolidated
Statement of Comprehensive Income (£370,000 in the period and
£220,000 in December 2023). Included within transaction costs on
acquisition of £590,000 are legal and due diligence fees and stamp
duty. The deferred consideration will be payable on the second
anniversary of the completion date and has no performance
obligations.
In the five-month period to 30 June
2024, HomeViews contributed revenue of £0.7m and a trading profit
after tax of £nil to the Group's results. If the acquisition had
occurred on 1 January 2024, management estimates that consolidated
revenue would have been £0.8m and consolidated profit for the
period would have been £nil. In determining these amounts,
management has assumed that the fair value adjustments, determined
provisionally, that arose on the date of acquisition would have
been the same if the acquisition had occurred on 1 January
2024.
The following table details the fair
values of the assets and liabilities acquired at the date of
acquisition:
Net
assets acquired
|
Carrying values
pre-acquisition
£000
|
Fair value
adjustments
£000
|
Fair values
£000
|
Non-current assets
|
|
|
|
Property, plant and
equipment
|
14
|
-
|
14
|
Intangible assets - IT development
costs
|
-
|
1,845
|
1,845
|
Intangible assets - customer
relationships
|
-
|
757
|
757
|
Total non-current assets
|
14
|
2,602
|
2,616
|
Current assets
|
|
|
|
Trade and other
receivables
|
150
|
-
|
150
|
Cash and cash equivalents
|
519
|
-
|
519
|
Total current assets
|
669
|
-
|
669
|
Current liabilities
|
|
|
|
Trade and other payables
|
(328)
|
-
|
(328)
|
Total current liabilities
|
(328)
|
-
|
(328)
|
Non-current liabilities -
deferred tax
|
-
|
(650)
|
(650)
|
Fair value of net assets acquired
|
355
|
1,952
|
2,307
|
Goodwill
Goodwill arising from the
acquisition has been recognised as follows:
|
£000
|
Total consideration
|
8,471
|
Fair value of net assets
acquired
|
(2,307)
|
Goodwill
|
6,164
|
The goodwill figure recognised
above includes the knowledge and experience of HomeViews which is
established within the Rental Operators markets, their skilled
workforce and the reputation of the business. This is together
with the synergy benefits expected to the Group through leveraging
the scale and reach of the Rightmove customer base, its sales and
marketing teams and technological capability. For the purposes of
impairment testing, goodwill allocated to the relevant lowest cash
generating unit which is the Agency only unit. The Directors have
considered the fair value of assets and liabilities acquired
and have concluded that there are no other intangible assets to be
recognised other than goodwill, computer software and customer
relationships.
Investment in Coadjute Limited
During the period, the Group
acquired a 7.4% holding in Coadjute Limited, a business providing a
nationwide infrastructure for the property market, connecting
buyers, sellers and property professionals with data, services, and
each other. Other investors include Lloyds Banking Group,
Nationwide and NatWest. The potential of a
platform like Coadjute to, over time, digitise and transform the
house purchase journey - reducing the time to closure and providing
greater visibility of the progress of the transaction to buyers,
sellers and lenders - is immense, but this is a journey that will
take time.
For that reason, the investment is
strategic and longer-term in its nature and the cost of £3.0m was
therefore fully written down and recognised in the Income Statement
as a strategic research-related cost.
ADVISERS AND SHAREHOLDER INFORMATION
Contacts
|
|
Registered office
|
Corporate advisers
|
Chief Executive Officer:
|
Johan Svanstrom
|
Rightmove plc
|
Financial adviser
|
Chief Financial Officer:
Company Secretary:
Website:
|
Alison Dolan
Carolyn Pollard
www.rightmove.co.uk
|
2 Caldecotte Lake
Business Park
Caldecotte Lake Drive
|
UBS Investment Bank
Joint brokers
|
|
|
Caldecotte
Milton Keynes
|
UBS AG London Branch
Deutsche Numis
|
|
|
MK7 8LE
|
Auditor
|
|
|
|
Ernst & Young LLP
|
|
|
Registered in
England no. 6426485
|
Bankers
|
Financial calendar 2024
|
|
|
Barclays Bank Plc
|
Interim dividend record
date
Interim dividend payment
Full year results
|
27 September 2024
25 October 2024
28 February 2025
|
|
Santander UK plc
HSBC UK Bank plc
Lloyds Banking Group plc
Solicitors
EMW LLP
Slaughter and May
|
|
|
|
Herbert Smith Freehills
LLP
|
|
|
|
|
|
|
|
Registrar
|
|
|
|
Link Asset Services*
|
*Shareholder enquiries
The Company's registrar is Link
Group. They will be pleased to deal with any questions regarding
your shareholding or dividends. Please notify them of your change
of address or other personal information. Their contact details are
below:
Shareholder helpline: 0371 664 0300 calls are charged at the standard
geographic rate and will vary by provider. Calls outside the United
Kingdom will be charged at the applicable international rate. Lines
are open between 09:00 - 17:30, Monday to Friday excluding public
holidays in England and Wales.
Email: enquiries@linkgroup.co.uk
Signal Shares shareholder portal:
www.signalshares.com
Address: Link Group
10th Floor Central Square
29 Wellington Street
Leeds LS1 4DL
Shareholders can register online to
view your holdings using the shareholder portal, a service offered
by Link Group at www.signalshares.com.
The shareholder portal is an online service enabling you to quickly
and easily access and maintain your shareholding online - reducing
the need for paperwork and providing 24 hour access for your
convenience. You may:
- View your holding balance and get an indicative
valuation
- View the dividend payments you have received
- Cast your proxy vote on the AGM resolutions online
- Update your address
- Register and change bank mandate instructions so that
dividends can be paid directly to your bank account
- Elect to receive shareholder communications
electronically
- Access a wide range of shareholder information and download
shareholder forms
INDEPENDENT REVIEW REPORT TO RIGHTMOVE PLC
Conclusion
We have been engaged by the Company
to review the condensed set of financial statements in the
half-yearly financial report for the six months ended 30 June 2024
which comprises the condensed consolidated interim statement of
comprehensive income, condensed consolidated interim statement of
financial position, condensed consolidated interim statement of
cash flows, condensed consolidated interim statement of changes in
shareholders' equity and the related explanatory notes. We have read the other information
contained in the half yearly financial report and considered
whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of
financial statements.
Based on our review, nothing has
come to our attention that causes us to believe that the condensed
set of financial statements in the half-yearly financial report for
the six months ended 30 June 2024 is not prepared, in all material
respects, in accordance with UK adopted International Accounting
Standard 34 and the Disclosure Guidance and Transparency Rules of
the United Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in
accordance with International Standard on Review Engagements 2410
(UK) "Review of Interim Financial Information Performed by the
Independent Auditor of the Entity" (ISRE) issued by the Financial
Reporting Council. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
As disclosed in note 1, the annual
financial statements of the group are prepared in accordance with
UK adopted international accounting standards. The condensed set of
financial statements included in this half-yearly financial report
has been prepared in accordance with UK adopted International
Accounting Standard 34, "Interim Financial Reporting".
Conclusions Relating to Going Concern
Based on our review procedures,
which are less extensive than those performed in an audit as
described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or
that management have identified material uncertainties relating to
going concern that are not appropriately disclosed.
This conclusion is based on the
review procedures performed in accordance with this ISRE, however
future events or conditions may cause the entity to cease to
continue as a going concern.
Responsibilities of the directors
The directors are responsible for
preparing the half-yearly financial report in accordance with the
Disclosure Guidance and Transparency Rules of the United Kingdom's
Financial Conduct Authority.
In preparing the half-yearly
financial report, the directors are responsible for assessing the
company's ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to
liquidate the company or to cease operations, or have no realistic
alternative but to do so.
Auditor's Responsibilities for the review of the financial
information
In reviewing the half-yearly report,
we are responsible for expressing to the Company a conclusion on
the condensed set of financial statements in the half-yearly
financial report. Our conclusion, including our Conclusions
Relating to Going Concern, are based on procedures that are less
extensive than audit procedures, as described in the Basis for
Conclusion paragraph of this report.
Use
of our report
This report is made solely to the
company in accordance with guidance contained in International
Standard on Review Engagements 2410 (UK) "Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity" issued by the Financial Reporting Council. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the company, for our work, for this report, or
for the conclusions we have formed.
Ernst & Young LLP
Luton
25 July 2024