Regulatory News


Strong revenue growth in first half

02 August 2017

Be Heard Group plc (AIM: BHRD), the digital marketing services group, is pleased to issue the following trading update for the six months ending 30 June 2017.

The Board remains confident in the Group’s outlook for the full year,

Highlights

  • Net revenue growth of over 155 per cent to £8.4million (2016: £3.3 million)
  • Very strong organic growth at agenda21 and MMT Digital (‘MMT’), including a high volume of new business wins
  • Kameleon impacted by suspension of activity by two clients, and also Government work following announcement of General Election, but now starting to recover
  • Strong new business performance with 25 new client wins including Addison Lee, Brakes Brothers, The Forestry Commission, Gresham House, GSK, Save the Children, Sovereign, Unilever Food Solutions and Vodafone Enterprise
  • Additional work from key existing clients including Casumo, ComparetheMarket, SSE, Unilever and Vodafone
  • Investment in additional staff and facilities at MMT and group-level hires to facilitate and promote further growth
  • Six clients now served by two or more Be Heard Group companies representing 23 per cent of Group net revenue in the first half
  • Strong pipeline of work from existing and new clients for the second half of the year, with 73 per cent of current forecast revenue billed or committed

The Group’s net revenue grew by 155 percent to £8.4 million (H1 2016: £3.3 million) as a result of the impact of a full six months’ contribution from MMT and Kameleon, four months’ contribution from Freemavens, which was acquired in February 2017 and recent new business wins.

Net revenue at MMT and agenda21 rose by an encouraging 44 per cent and 21 per cent respectively including additional business from existing clients and significant new client wins. The scale of new business success at MMT called for investment in additional employees and facilities ahead of plan, leading to an increase in costs to support future contracted work.

Kameleon, the Group’s content agency, experienced a slowdown due to the suspension of all Government work following the announcement of the General Election in April, and of activity by two clients. Kameleon has since started to recover, including winning new clients and working with other Group companies to deliver creative content solutions to clients.

The Group has also strengthened its central resource with the appointment of Richard Costa D‘Sa as Chief Growth Officer and Andrew Dunderdale as Financial Director. Both appointments represent investment to drive and manage future growth, by focusing on increasing cross-group work.

Notable new client wins in the first half included Addison Lee, Brakes Brothers and Vodafone Enterprise at agenda21; Unilever Food Solutions and GSK at Freemavens; The Forestry Commission, Gresham House, Save The Children, Sovereign and Vodafone Enterprise at MMT; and ACCA, Public Health England and the Society of Petroleum Engineers at Kameleon. Across the Group key existing clients including Casumo, ComparetheMarket, SSE, Unilever and Vodafone also expanded their briefs.

The Group has started broadening relationships with clients by connecting skill sets to follow and deliver against key stages of the digital customer journey. agenda21 extended its relationship with Vodafone by winning the Enterprise Business Unit SEO account and MMT also expanded its Vodafone relationship, which now operates under the Be Heard umbrella contract with Vodafone. Similarly, Be Heard has continued to make progress extending existing relationships with Apetito/Wiltshire Farm Foods, BDO, CitySprint/OntheDot, Essilor, Northumbria Water and Vodafone, now served by two or more companies within the Group. In total, clients served by two or more Be Heard Group companies represented 23 per cent of Group net revenue in the first half.

Despite macro economic and political uncertainties the Group is seeing a strong pipeline of work from existing and new clients for the second half of the year, with 73 per cent of current forecast revenue for 2017 billed or committed. In addition, the Board is encouraged by the increasing number of opportunities for our partner companies to work together to deliver connected solutions for clients, a key element of Be Heard’s growth strategy.

The company is also developing new proprietary products. These include Content Compass, a new tool created by agenda21 to enable companies to optimise and streamline user journeys. Vodafone has publicly credited Content Compass with significantly improving its search visibility and enabling it to deliver more targeted content. We expect to launch a number of other new tools and services in the second half of the year

While the Group is in the early stages of its development, the Board is encouraged by the levels of revenue growth at MMT and agenda21 in particular, and by client cross referral across partner companies and remains confident in the Group’s outlook for the full year.

 

For further information, please contact:

Be Heard Group plc
Peter Scott,
Executive Chairman
Robin Price,
Chief Operating Officer and Chief Financial Officer
+44 20 3828 6269
   
N+1 Singer
Mark Taylor / Lauren Kettle
+44 20 7496 3000
   
Dowgate
James Serjeant
+44 20 3903 7715
   
Bell Pottinger (Financial PR)
Elly Williamson/Liz Morley
+44 20 3772 2573
ewilliamson@bellpottinger.com

 

Notes to Editors:

About Be Heard Group plc

Be Heard Group plc (AIM:BHRD) is a digital marketing services group operating at the intersection of marketing, technology and e-commerce. Our vision is to build an agile interconnected group focused on helping clients maximise their return-on-investment from digital marketing. To achieve this, we acquire and connect best-in-class partner companies spanning key digital disciplines, providing management experience, access to deeper resources and a strong platform for growth.

Our four partners today are:

Agenda 21 Digital Holding Limited ('agenda21'), a digital media and analytics agency, which became a partner on admission in November 2015 www.agenda21digital.com

MMT Limited ('MMT Digital'), a user experience ("UX"), design and build agency, which became a partner in May 2016 www.mmtdigital.co.uk

Kameleon Worldwide Limited ('Kameleon'), a content marketing agency, which became a partner in December 2016 www.kameleon.co.uk

Freemavens Limited ('Freemavens'), a data-driven analytics and insight consultancy, which became a partner in February 2017 www.freemavens.com

www.beheardgroup.com

@Be_Heard_Group

 

 

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