Doordrop Media Revenue for the year of £58.4m (2016: £63.3m), was impacted by political and economic uncertainty in the months around the General Election in June 2017 due to freezes in advertising budgets but recovered in the second half of the year. Underlying trends were positive with growth of the customer base, strong customer retention and market share gains from our competitors. Whistl generates value by helping brands to reach their customers with multi-channel, targeted leaflets, catalogues and sample distribution. Operating profit of £1.4m (2016: £0.9m) increased 56% compared to 2016. Fulfilment In August 2017 Whistl acquired 76% of the share capital of Prism DM for £1.37m which supports our strategy to expand our e-commerce delivery and fulfilment capability on behalf of new and existing customers. The acquisition was funded from the retained earnings of the Group. Prism DM has been integrated into the Group as Whistl Fulfilment. Revenue for the post acquisition period up to the year-end was £6.0m and operating profit was £0.2m. Goodwill and other intangible assets of £0.6m have been recognised in the consolidated accounts of Whistl Group Holdings Ltd in relation to the acquisition of Prism DM. Exceptional costs Exceptional costs of £1.9m were incurred in the year. These include restructuring costs of £1.2m in relation to the transfer of the Leeds and Warrington depots into Bolton and represent exceptional moving and double running costs in the year. The move was completed successfully in 2017 and all one-o¦ costs have now been incurred and recognised in 2017. Other exceptional legal and professional costs of £0.7m were incurred in relation to M&A activity including the acquisition of Prism DM and other ongoing or aborted projects.
Balance sheet
2017 £m (1.9) 9.9 75.2 37.1 (103.3)
Change £m 2.3 1.7
2016 £m (4.2) 8.2
Goodwill & negative goodwill Fixed assets Debtors Cash at bank and in hand Creditors: amounts falling due within one year Creditors: amounts falling due after one year Provision for liabilities Net assets
(1.8) 14.2 (11.3)
77.0 22.9 (92.0)
(0.2)
(0.0)
(0.2)
(0.6) 16.2
0.8 5.9
(1.4) 10.3
Cash flow
2017 £m 19.9
Change £m 8.1
2016 £m 11.8
Net cash from operating activities Taxation (paid) / received Net investment in fixed assets Purchase of subsidiary undertaking net of acquired cash Net cash inflow/(outflow) from financing activities
(0.2) (4.3) (0.9)
(0.1) (0.7) (0.9)
(0.1) (3.6) -
1.2
1.8
(0.6)
(1.5) 14.2
Equity dividends paid Net increase in cash
(1.5) 6.7
-
7.5
Finance costs Interest payable of £0.6m (2016: £0.6m) relates
predominantly to the supplier guarantee facilities in place during the year with PostNL and RBS, prior and subsequent to the refinancing respectively.
16 CFO Financial Review | Whistl Annual Report 2017
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