Interim results for the 6 months ended 30 Jun 2024

24 July 2024

Centaur Media Plc

("Centaur" or "Group")

Interim results for the 6 months ended 30 June 2024

Good start to implementing Build, Invest and Grow strategy (BIG27)

Investment and resources targeted to strategically valuable revenue streams

Centaur, an international provider of business intelligence and learning, presents its interim results for the 6 months ended 30 June 2024.

Financial highlights

Strategic and operational highlights

Swag Mukerji, Chief Executive Officer, commented:

"During the first half of 2024 we have focused on implementing the initial phase of our Build, Invest and Grow strategy (BIG27), which we announced in April.

BIG27 supports the vision to be our customers' partner of choice for business intelligence and learning through understanding and satisfying their needs. Embedding this at the core of our business will drive significant revenue growth in the medium term.

I am pleased that our future growth drivers, MW Mini MBA, Marketing Week subscriptions and The Lawyer have performed well, although the Xeim H1 performance in some parts of Econsultancy and Oystercatchers has been negatively impacted by sector headwinds. This reinforces the importance of our investment in insight and learning expertise. With the greater weighting of revenue in H2, we expect to return to growth in the second half of 2024 and look forward to driving the delivery of our BIG27 strategy over the next four years."

Financial performance

Over the first six months of 2024, Centaur has focused on strengthening its foundations and starting the investment required to drive growth as part of BIG27. Significant headwinds in the marketing sector and legal recruitment, together with wider macro-economic challenges and the initial cost of investment for BIG27 (£0.2m) negatively impacted the Group's financial performance in the first half of the year. 

First half reported revenue was £16.5m, down 8% (H1 2023: £17.9m). Growth from The Lawyer of 7% has been offset by weaker performance in some of the Xeim brands. Adjusted¹ EBITDA declined 26% to £2.5m (H1 2023: £3.3m) and adjusted¹ EBITDA margin decreased to 15% (H1 2023: 19%).

The Group has maintained resilient cash generation, despite the decline in revenue, and management has carefully managed the cost base to reinforce the efficiency of the business through the BIG27 transition period. Centaur has also continued to focus on its strategically valuable revenue⁴ streams, which account for 90% of Group sales.

The decrease in adjusted¹ EBITDA has resulted in an adjusted¹ operating profit of £1.4m (H1 2023: £2.3m) leading to an adjusted¹ diluted EPS of 0.7 pence for H1 2024 (H1 2023: 1.6 pence).

Centaur has a robust cash position with a net cash³ balance of £8.9m at 30 June, after paying out £1.7m of ordinary dividends during the period, and strong cash conversion⁵ at 102%. This supports future investment in the growth of the business through the BIG27 strategy. 

Business Unit performance

Following the launch of BIG27 in April, Centaur has focused investment and resource allocation on key drivers of growth, including new product development and marketing spend in the MW Mini MBA, Marketing Week and The Lawyer.

Xeim

Centaur has seen lower revenue across Xeim, as blue-chip companies and large clients responded to macro-economic challenges by cutting back on their budgets for the first half of the year in particular impacting new and repeat business at Econsultancy. Highlights during H1 2024 include:

However, Xeim has strong foundations and management is confident that its suite of well-established brands is well placed to benefit from a strengthening economy, with targeted investment in growth areas under BIG27 to capture resurgent demand.

The Lawyer

The Lawyer continues to deliver good growth in Premium Content, with an 8% increase from the first half of 2023, driven by a combined 102% renewal rate from all of its subscription products and a more than doubling of new business. This resilient performance was further supported by a 15% increase in revenue from events due to the continuing success of the GC Summit and The Lawyer Awards, together with the introduction of the new Legal Transformation Summit in March.

The growth in Premium Content and Events was partially offset by 11% lower revenue from non-strategic Marketing Solutions and Recruitment Advertising.

Dividend

Centaur's Board has approved an interim ordinary dividend for 2024 of 0.6p per share (H1 2023: 0.6p), in line with Centaur's new progressive dividend policy to distribute the higher of the previous year's dividend or 40% of adjusted¹ earnings after taxation.

Outlook

Centaur's profitability dipped in the first half of 2024, reflecting adverse trading conditions and the Group's investment as part of its BIG27 strategy. In keeping with historical trends, we anticipate a greater weighting of revenue and profit in the second half of 2024, primarily due to the Festival of Marketing in October and a higher proportion of revenue in H2 from MW Mini MBA due to the timing of the courses. This seasonality will be further amplified with growth in revenue in H2 2024 from BIG27 investments.

Even with the uncertain macroeconomic conditions, the performance of The Lawyer and MW Mini MBA, together with the impact of BIG27 investment, leads us to expect a return to growth in H2.

The Board is confident in the successful delivery of Centaur's BIG27 strategy with clear and detailed roadmaps to deliver accelerated revenue growth. The Group's balance sheet strength will support continued investment in high growth areas of the business, as well as future plans for both organic growth and M&A. 

¹        Adjusted EBITDA is adjusted operating profit before depreciation and amortisation. Adjusted results exclude adjusting items as detailed in note 4 of this Interim Report.

²        Re-presented results exclude the discontinued operations of the Really B2B and Design Week brands in 2023 as detailed in note 1 of the interim results.

³        Net cash is the total of cash and cash equivalents and short-term deposits. There are no overdrafts or borrowings in the Group.

⁴        Strategically valuable revenue comprises Premium Content, Training and Advisory, and Events.

⁵        Cash conversion is calculated as adjusted operating cash flow (excluding any one-off significant cash flows) / adjusted EBITDA.

Enquiries

Note to editors

Centaur is an international provider of business intelligence and learning that inspires and enables people to excel at what they do within the marketing and legal professions.

BIG27 is Centaur's four-year strategy to Build, Invest and Grow as detailed at its Capital Markets Day in April 2024: Research | Centaur Media PLC.

Overview of Group Performance

Following the successful completion of MAP23 at the end of 2023, the next stage of Centaur's journey is now underway. At our Capital Markets Day in April we announced BIG27, our new strategy to Build, Invest and Grow the business over the next four years, focusing on revenue growth in particular from product development and M&A.

Current trading is below the levels experienced in the first half of 2023 as we confront a challenging macroeconomic environment and sector-wide headwinds. Revenue in H1 2024 declined 8% compared to H1 2023, with Xeim reporting a 13% decrease partially offset by The Lawyer which achieved growth of 7%. Despite this, we have maintained our continuing focus on satisfying customer needs with our offering of high-quality products, with 90% (H1 2023: 90%) of revenue being generated from strategically valuable revenue⁶. 

Trading Summary

The adjusted¹ operating profit declined year on year to £1.4m (H1 2023: £2.3m) reflecting the reduction in revenue and the resulting reduction in EBITDA margin to 15% (H1 2023: 19%), as well as initial investment costs for BIG27. As a result of the decreased adjusted¹ operating profit, a credit for adjusting items of £0.1m (H1 2023: charge of £0.6m) and a tax charge of £0.4m (H1 2023: a credit of £0.2m), the Group reported a profit for the period of £1.1m (H1 2023: £1.9m).

Adjusted¹ diluted earnings per share for the reporting period decreased to 0.7 pence (H1 2023: 1.6 pence). Diluted earnings per share for the period on a reported basis was 0.7 pence (H1 2023: 1.3 pence).

Net cash⁴ decreased from £9.5m at the end of 2023 to £8.9m at the end of June 2024. Cash inflows were strong in the period, mainly due to continued focus on cash collection reducing trade receivables by £1.3m. This, combined with a £1.3m increase in deferred income, offset by a decrease in trade payables and an increase in prepayments and accrued income, resulted in strong cash conversion⁴ in the period of 102% (H1 2023: 115%) demonstrating the Group's continuing ability to successfully convert its profits into cash.

The Group generated an adjusted operating cash inflow of £2.5m and, in addition to capital expenditure of £0.6m, paid out £1.7m of ordinary dividends, £0.4m of exceptional costs and £0.4m of lease obligations, net interest and other payments.

* Adjusted operating profit for 2023 has not been re-presented in relation to discontinued operations

Segmental Review

Revenue for the six months ended 30 June, together with reported growth rates across each segment, are set out below.

The table below reconciles the adjusted¹ operating profit/(loss) for each segment to the adjusted¹ EBITDA:

Xeim

Xeim's revenue decreased by 13% for the first half of 2024, driven by challenging trading conditions within certain Xeim brands and sector headwinds relating to non-strategic revenue. Adjusted¹ EBITDA reduced by £1.1m to £1.9m on the back of the lower revenue and initial investment costs for BIG27, partially offset by a reduction in operating costs from careful management, resulting in a 6 percentage point decrease in EBITDA margin to 16%.

The Xeim portfolio brings together a suite of nine brands - MW Mini MBA, Marketing Week, Econsultancy, Festival of Marketing, Creative Review, Influencer Intelligence, Fashion & Beauty Monitor, Oystercatchers and Foresight News - which have contributed to this performance:

The Lawyer

Revenue for The Lawyer increased 7% compared to H1 2023 with an increase in strategically valuable revenue from Premium Content and Events, offset by a decrease in non-strategic Marketing Solutions and Recruitment Advertising revenue of 11%.

Premium Content subscriptions continued to grow, with an 8% increase from the first half of 2023, driven by healthy renewal rates of 102% across The Lawyer's subscription products together with a doubling of new business. This has resulted in an increase in the book of business since the start of the period of 11%.

Events revenue increased 15% after multiple successful events including the new Legal Transformation Summit in March, the GC Summit and another successful The Lawyer Awards in June.

Adjusted¹ EBITDA increased by 3% to £1.8m on the back of the higher revenue with a small reduction in EBITDA margin to 39% (H1 2023: 40%).

Central

Central operating costs have decreased by £0.2m to £1.4m compared to H1 2023 (£1.6m).

Dividends

In line with the Group's new progressive dividend policy to distribute the higher of 40% of adjusted¹ retained earnings or the previous year's dividend, the Board has announced an interim dividend for 2024 of 0.6 pence per share (H1 2023: 0.6 pence). This will be paid on 25 October 2024 to all shareholders on the register as at close of business on 11 October 2024.

Balance Sheet

The balance sheet of the Group remains strong albeit with a small reduction in net cash since the end of 2023 after paying out £1.7m in ordinary dividends during the period. Healthy cash collection during the period has resulted in a decrease in days sales outstanding such that trade receivables have decreased by £1.3m to £2.3m. Trade and other payables have decreased by £2.0m since 31 December 2023 largely due to a reduction in accruals arising from the timing of expenses and lower costs including bonuses. Non-current assets and non-current liabilities have both decreased since 31 December 2023 in relation to the right of use asset and related lease liability. Deferred tax assets have decreased by £0.4m in relation to utilisation of losses carried forward.

Principal Risks and Uncertainties

The principal risks and uncertainties currently faced by the Group are reviewed regularly by the Board. The principal risks faced by the Group are set out below and the Board considers the risk levels to have remained the same since December 2023, except where stated otherwise.

Forward Looking Statements

Certain statements in this interim report are forward looking. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to be correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. It undertakes no obligation to update any forward-looking statements whether because of new information, future events or otherwise.

Statement of Directors' Responsibilities

The Directors confirm that the condensed consolidated interim financial information for the six-month period ended 30 June 2024 has been prepared in accordance with the Disclosure Guidance and Transparency Rules (DTR) of the Financial Conduct Authority and with International Financial Reporting Standards ('IFRSs') and IAS 34, 'Interim financial reporting', in line with UK-adopted international accounting standards.

In addition, the interim management report herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:

The Directors of Centaur Media Plc are listed in the Centaur Media Plc Annual Report for the year ended 31 December 2023. A list of current directors is maintained on the Centaur Media Plc website.

Going Concern

In assessing the going concern status, the Directors considered the Group's activities, the financial position of the Group and their identification of any material uncertainties and the principal risks to the Group. The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for at least 12 months from the date of this report and for this reason, they continue to adopt the going concern basis in preparing the condensed consolidated interim financial information.

The interim report was approved by the Board of Directors and authorised for issue on 23 July 2024 and signed on behalf of the Board by:

Swag Mukerji, Chief Executive Officer

Notes:

Footnotes:

¹   Adjusted EBITDA is adjusted operating profit before depreciation and amortisation. Adjusted results exclude adjusting items, as detailed in note 4 of this Interim Report.

²   See note 1 of this Interim Report for description of the prior period re-presentation.

³   For reconciliation of adjusted operating cash flow see note 1 of this Interim Report.

⁴   Cash conversion is calculated as adjusted operating cash flow (excluding any one-off significant cash flows) / adjusted EBITDA.

⁵   Net cash is the total of cash and cash equivalents and short-term deposits. There are no overdrafts or borrowings in the Group.

⁶   Strategically valuable revenue comprises Premium Content, Training and Advisory, and Events.

INDEPENDENT REVIEW REPORT TO CENTAUR MEDIA PLC

On the interim financial information for the six months ended 30 June 2024

Conclusion

We have been engaged by Centaur Media Plc (the "Group"), to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2024 which comprise the condensed consolidated statement of comprehensive income, condensed consolidated statement of changes in equity, condensed consolidated statement of financial position, condensed consolidated cash flow statement and the related notes 1 to 20.

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 aspects, 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 (UK) 2410 - "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued for use in the United Kingdom. A review of interim financial information consists of making inquiries, 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 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 ISRE(UK) 2410, however future events or conditions may cause the entity to cease to continue as a going concern.

Responsibilities of directors

The directors are responsible for preparing the half-yearly financial report in accordance with UK adopted International Accounting Standard 34 and 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 Group'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 Group 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 Conclusion 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 International Standard on Review Engagements (UK) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Financial Reporting Council. Our work has been undertaken so that we might state to the Company those matters we are required to state to it in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusions we have formed.

Crowe U.K. LLP

Statutory Auditor

London, United Kingdom

23 July 2024

Condensed consolidated Statement of Comprehensive Income

for the six months ended 30 June 2024

¹ Adjusting items are disclosed in note 4.

² See note 1 for description of the prior period re-presentation.

Condensed consolidated Statement of Changes in Equity

for the six months ended 30 June 2024

Condensed consolidated Statement of Financial Position as at 30 June 2024      

Registered number 04948078

The notes are an integral part of these condensed consolidated interim financial information. The condensed consolidated interim financial information was approved by the Board of Directors on 23 July 2024 and were signed on its behalf by:

Simon Longfield

Chief Financial Officer

Condensed consolidated Cash Flow Statement

for the six months ended 30 June 2024

Notes to the condensed consolidated interim financial information

1 Summary of explanatory information and material accounting policies

General information

Centaur Media Plc ('the Company') is a public company limited by shares and incorporated and domiciled in England and Wales. The address of the Company's registered office is 10 York Road, London, SE1 7ND, United Kingdom. The Company is listed on the London Stock Exchange.

These condensed consolidated interim financial information was approved for issue on 23 July 2024. 

These condensed consolidated interim financial information is unaudited and do not constitute the statutory accounts within the meaning of Section 434 of the Companies Act 2006.  The Group's most recent statutory financial statements, which comprise the Annual Report and audited Financial Statements for the year ended 31 December 2023 were approved by the Board of Directors on 12 March 2024 and delivered to the Registrar of Companies.  The report of the auditor on those financial statements was not qualified, did not contain an emphasis of matter paragraph and did not contain any statement under Section 498 of the Companies Act 2006.

The consolidated financial statements of the Group as at, and for the year ended 31 December 2023, are available upon request from the Company's registered office or at www.centaurmedia.com. 

Basis of preparation

The condensed consolidated interim financial information for the six-month period ended 30 June 2024 has been prepared in accordance with the Disclosure and Transparency rules of the Financial Conduct Authority and with UK-adopted International Accounting Standards and IAS 34, 'Interim Financial Reporting'. The condensed consolidated financial information should be read in conjunction with the Annual Report and Financial Statements for the year ended 31 December 2023, which have been prepared in accordance with UK-adopted International Accounting Standards.

Going concern

The condensed consolidated interim financial information has been prepared on a going concern basis.

At 30 June 2024, the Group has cash and cash equivalents of £1,378,000 (2023: £2,839,000), short-term deposits of £7,500,000 (2023: £6,000,000) and has net current liabilities of £3,289,000 (2023: net current liabilities £6,298,000). In both periods net current liabilities primarily arose from the Group's normal high levels of deferred income relating to performance obligations to be delivered in the future and is not a liability that is likely to be paid in cash.

The Directors have assessed the Group's activities, the financial position of the Group, and their identification of any material uncertainties and the principal risks to the Group. The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for at least twelve months from the date of approval of this report and for the foreseeable future. Therefore, the Directors consider it appropriate to adopt the going concern basis of accounting in preparing the condensed consolidated interim financial information.

Accounting policies and estimates

The accounting policies adopted by the Group in the condensed consolidated interim financial information is consistent with those applied by the Group in its consolidated financial statements for the year ended 31 December 2023.

The preparation of the condensed consolidated interim financial information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense.  Actual results may differ from these estimates.

In preparing these condensed consolidated interim financial information, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 31 December 2023.

New and amended standards adopted by the Group

No new mandatory standards or amendments have been announced which currently impact the year commencing 1 January 2024.

New standards and interpretations not yet adopted

There are no standards that are not yet effective and that would be expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.

Prior period re-presentation

Discontinued operations

Where the requirements of IFRS 5 have been met, the operational results of closed brands have been re-presented as discontinued in the comparative period. See note 6 for more details.

Presentation of non-statutory measures

In addition to IFRS statutory measures, the Directors use various non-GAAP key financial measures to evaluate the Group's performance and consider that presentation of these measures provides shareholders with an additional understanding of the core trading performance of the Group. The basis of the principal adjustments is comparable with that presented in the consolidated financial statements for the year ended 31 December 2023, and as described in those financial statements. The measures used are explained and reconciled to their IFRS statutory headings below.

The Directors believe that adjusted results and adjusted earnings per share provide additional useful information on the core operational performance of the Group to shareholders and review the results of the Group on an adjusted basis for management purposes.  The term 'adjusted' is not a defined term under IFRS and may not therefore be comparable with similarly titled profit measurements reported by other companies.  It is not intended to be a substitute for, or superior to, IFRS measurements of profit.

The basis of the principal adjustments is consistent with that presented in the consolidated financial statements for the year ended 31 December 2023, and as described in those financial statements.

For the six-month periods ended 30 June 2023 and 30 June 2024, adjustments were made in respect of:

The tax related to adjusting items is the tax effect of the items above that are allowable deductions for tax purposes, calculated using the standard rate of corporation tax.

Further details of adjusting items are included in note 4. A reconciliation between adjusted and reported earnings per share is shown in note 7.

Adjusted operating profit

Profit before tax reconciles to adjusted operating profit as follows:

² See note 1 for description of the prior period re-presentation.

Adjusted operating cash flow

Adjusted operating cash flow is not a measure defined by IFRS. It is defined as cash flow from operations excluding the impact of adjusting items, which are defined above. The Directors use this measure to assess the performance of the Group as it excludes volatile items not related to the core trading of the Group. Reported cash flow from operations reconciles to adjusted operating cash as follows:

Our cash conversion rate for the period was 102% (2023: 115%).

Underlying revenue growth

The Directors review underlying revenue growth in order to allow a like-for-like comparison of revenue between years. Underlying revenue therefore excludes the impact of revenue contribution arising from acquired or disposed businesses and other revenue streams that are not expected to be ongoing in future years. There were no exclusions for underlying revenue in the current or prior period. Reported revenue growth is equal to underlying revenue growth and is as follows:

Adjusted EBITDA

Adjusted EBITDA is not a measure defined by IFRS. It is defined as adjusted operating profit before depreciation and amortisation of intangible assets other than those acquired through a business combination. It is used by the Directors as a measure to review performance of the Group and forms the basis of some of the Group's financial covenants under its revolving credit facility. Adjusted EBITDA is calculated as follows:

² See note 1 for description of the prior period re-presentation.

Net cash

Net cash is not a measure defined by IFRS. Net cash is the total of cash and cash equivalents and short-term deposits. There are no overdrafts or borrowings in the Group. The Directors consider the measure useful as it gives greater clarity over the Group's liquidity as a whole. A reconciliation between net cash and statutory measures is shown below:

Financial risk factors

The Group's activities expose it to a variety of financial risks: interest rate risk, credit risk, liquidity risk, capital risk and currency risk. The condensed consolidated interim financial information does not include all financial risk management information and disclosures that are required in the annual consolidated financial statements; they should be read in conjunction with the Group's annual consolidated financial statements for the year ended 31 December 2023.

There have been no changes in risk management processes or policies since the year end.

Seasonality

In line with the historical seasonal performance of the business, there is an expected greater weighting of revenue and profit derived in the second half of each financial year. This weighting is mainly driven by the Festival of Marketing Event in October and timing of Training and Advisory revenue from MW Mini MBA. During the year ended 31 December 2023, from continuing operations, 48% (2022: 47%) of revenue and 33% (2022: 35%) of EBITDA occurred in the first half of the year.

2 Segmental reporting

The Group is organised around two reportable market-facing segments: Xeim and The Lawyer. These two segments derive revenue from a combination of premium content, training and advisory, events and other non-strategic revenue. Overhead costs are allocated to these segments on an appropriate basis, depending on the nature of the costs, including in proportion to revenue or headcount. Corporate income and costs have been presented separately as 'Central'. The Group believes this is the most appropriate presentation of segmental reporting for the user to understand the core operations of the Group. There is no inter-segmental revenue. Refer to note 6 for details on the discontinued operations for the period ended 30 June 2023.

Segment assets consist primarily of property, plant and equipment, intangible assets (including goodwill) and trade receivables. Segment liabilities comprise trade payables, accruals and deferred income. 

Corporate assets and liabilities primarily comprise property, plant and equipment, intangible assets, current and deferred tax balances, cash and cash equivalents, short-term deposits, borrowings and lease liabilities.

Capital expenditure comprises additions to property, plant and equipment and intangible assets.