half yearly financial report for the six months ended …/media/files/d/dmgt/results... · doug...

24 May 2018

Daily Mail and General Trust plc (‘DMGT’)

Half Yearly Financial Report for the six months ended 31 March 2018

Performance in line with expectations and continued progress against strategic priorities

Highlights:

Underlying¹ revenue growth +1%; stable underlying adjusted operating profit

o Good B2B performance: underlying revenues +4% with margin improvement

o Challenging Consumer Media conditions: underlying revenues –3%, margin 11%

Adjusted² profit before tax up pro forma³ +8%; adjusted EPS up pro forma +2% to 24.4p

Statutory⁴ operating profit £133m (HY 2017 £17m); statutory profit before tax £113m (£41m);

statutory EPS 32.2p (155.8p)

Interim dividend increased +3% to 7.1p

Good progress made against key strategic priorities

Strong financial position: net debt:EBITDA ratio of 1.2 including EDR disposal (Apr ‘18 proceeds)

Recommended offer for ZPG Plc on 11 May 2018; c.£640m potential proceeds

Outlook for the Full Year unchanged

Adjusted Results²

(from continuing and discontinued operations)

Statutory Results⁴

Half Year

2018

Half Year

2017

Change~ Half Year

2018

Half Year

2017 Pro forma³ Underlying¹

Revenue £746m £890m -6% +1% £746m £794m

Operating profit £84m £100m +3% +0% £133m £17m

Profit before tax £103m £105m +8% £113m £41m

Earnings per share 24.4p 24.6p +2% 32.2p 155.8p

Dividend per share 7.1p 6.9p

Paul Zwillenberg, Chief Executive, commented:

“DMGT’s performance in the first half was in line with our expectations as we continue to transition

the Group and execute against our three strategic priorities. We have delivered continued, broad-

based growth across our B2B businesses and a strong performance from our Consumer Media

business in challenging market conditions.

We have made good progress with increasing our portfolio focus, notably through the disposal of EDR.

Most recently, the expected disposal of our stake in ZPG Plc is a clear demonstration of our long-term

approach to value creation. As a result of this portfolio activity, our balance sheet will be

strengthened considerably, enhancing our financial flexibility for balanced capital allocation. We

have also continued to implement a series of performance improvement initiatives across the Group

which are starting to gain traction.

Guidance for the Full Year remains unchanged. Although progress during the period was

encouraging, we remain cautious about the outlook as we continue to transition the Group during

challenging market conditions for some of our businesses. However, the Board remains confident

that the Group’s strategy and strong balance sheet will, over the medium term, deliver consistent

earnings growth to underpin DMGT’s long-standing commitment to sustainable annual real dividend

growth.”

Half Year 2018 Financial Results:

Revenue of £746m; underlying growth +1%: the underlying growth reflects broad-based growth

from Insurance Risk, EdTech, Energy Information and Events and Exhibitions and stable revenues

from Property Information, partially offset by a decrease from Consumer Media.

Adjusted operating profit of £84m; stable underlying performance: the growth from Insurance

Risk and EdTech was offset by lower Consumer Media profits and increased Corporate costs.

Statutory operating profit of £133m increased from £17m in the prior year due to reduced

exceptional operating costs, the absence of impairment charges and the share of associates’ gains

on disposals.

Income from JV’s and Associates: the share of adjusted operating profit increased +14% on a pro

forma basis to £41m, primarily due to growth from ZPG Plc.

Profit before tax (PBT): adjusted PBT grew +8% on a pro forma basis to £103m, including finance

charges of £21m (£21m) and the adverse effect of the weaker US dollar. Statutory PBT was £113m

(£41m).

Tax: the adjusted tax charge was £16m (£14m pro forma) and the adjusted effective tax rate

increased to 15.8%, as expected, whilst statutory tax was a credit of £4m. Overall, we estimate that

the impact of tax changes in the US will be largely neutral in the short term but become beneficial

as US-generated profits increase.

Earnings per share: adjusted EPS grew +2% on a pro forma basis to 24.4p (24.6p). Statutory EPS

was 32.2p (155.8p) reflecting the prior year gain on the disposal of Euromoney.

Net debt was £534m as at 31 March 2018, excluding the benefit of £146m of proceeds from the

disposal of EDR, which completed in April 2018. The net debt:EBITDA ratio was 1.6 compared to

1.4 as at 30 September 2017 and 1.6 as at 31 March 2017, reflecting the usual seasonal cash

outflows. Including the proceeds from EDR and excluding EDR’s profits, the net debt:EBITDA

ratio would have been 1.2 as at 31 March 2018.

Portfolio management: the focus within the portfolio has been further increased by Xceligent’s

cessation of trading, the disposal of EDR and Hobsons’ Solutions business and the partial sale of

SiteCompli, which is now classified as an associate rather than a subsidiary. The potential disposal

of DMGT’s stake in ZPG Plc was announced in May 2018 and is expected to complete during the

final quarter of the current financial year with c.£640m potential proceeds. The Events and

Exhibitions business made two small acquisitions during the period.

Outlook: the outlook and guidance for the Full Year remain unchanged, with the expectation of

slower revenue growth in the second half due to challenging conditions for advertising and

property information as well as timing factors. The B2B businesses are collectively expected to

deliver a Full Year underlying revenue growth rate in the low-single digits and an operating

margin in the mid-teens. The Consumer Media business, dmg media, is expected to experience a

mid-single digit underlying decline in revenues and to deliver an operating margin of around 10%.

Half Year 2018 - segmental performance:

Revenue Adjusted operating profit² Statutory

operating profit

HY18

£m

HY17

£m

Change~ HY18

£m

HY17

£m

Change~ HY18

£m

HY17

£m Rep UL Rep UL

Insurance Risk 113 117 -4% +6% 20 16 +26% +52% 20 13

Property Information 151 161 -6% +0% 28 22 +29% +1% 22 10

EdTech 33 54 -40% +10% 3 3 +19% N/A† 2 (5)

Energy Information 43 44 -1% +6% - - N/A N/A† 2 (4)

Events & Exhibitions 72 69 +5% +3% 20 21 -5% -7% 20 21

B2B Total* 411 444 -7% +4% 71 61 +16% +15% 65 35

Consumer Media 335 350 -4% -3% 38 36 +5% -8% 36 (5)

Corporate costs (24) (16) +54% +32% (24) (16)

DMGT Group* 746 794 -6% +1% 84 81 +3% +0% 77 14

* HY17 figures exclude Euromoney, so revenues and adjusted operating profit are on a pro forma³ basis. The DMGT Group

statutory operating profit shown above excludes the share of operating profits from joint ventures and associates.

† Underlying operating profit performance improved by £4m for EdTech, from loss to profit, and deteriorated by £1m for

Energy Information, from profit to loss.

Rep: Reported change UL: Underlying change

Enquiries

Investors:

Tim Collier, Group CFO

+44 20 3615 2902

Adam Webster, Head of Management Information

and Investor Relations

+44 20 3615 2903

Media:

Doug Campbell / Paul Durman, Teneo Blue Rubicon

+44 20 7260 2700

Half Year Results presentation

A presentation of the Half Year Results will be given to investors and analysts at 9.30am on 24 May

2018, at the offices of Numis Securities Limited, The London Stock Exchange Building, 10 Paternoster

Square, London, EC4M 7LT. There will also be a live webcast available on our website at

www.dmgt.com/webcasthy18.

Next trading update

The Group’s next scheduled announcement of financial information will be the third quarter trading

update on 26 July 2018.

About DMGT

DMGT manages a diverse, multinational portfolio of companies, with total revenues of around £1.5

bn, that provide businesses and consumers with compelling information, analysis, insight, events,

news and entertainment. DMGT is also a founding investor and the largest shareholder of Euromoney

Institutional Investor PLC and ZPG Plc.

Notes

1 Underlying revenue or profit is revenue or operating profit on a like-for-like basis, see pages 22 and 23. Underlying results

are adjusted for constant exchange rates, the exclusion of disposals and closures, the inclusion of the year-on-year organic

growth from acquisitions and for the consistent timing of revenue recognition. For events, the comparisons are between

events held in the year and the same events held the previous time. For Consumer Media, underlying revenues exclude low

margin newsprint resale activities. For FY 2017, central dmg information costs allocated to Property Information, EdTech

and Energy Information are reclassified to Corporate costs, consistent with all US central costs being included in Corporate

costs in FY 2018.

2 Unless otherwise stated, all profit and profit margin figures in this Interim Management Report refer to adjusted results

and not statutory results. The Board and management team use adjusted results, rather than statutory results, to give greater

insight to the financial performance of the Group and the way that it is managed. Similarly, adjusted results are used in

setting management remuneration. Adjusted results are stated before exceptional items, other gains and losses, impairment

of goodwill and intangible assets, amortisation of intangible assets arising on business combinations, pension finance

charges and fair value adjustments. For reconciliations of statutory profit before tax to adjusted profit before tax and

supporting explanations, see pages 16 to 19. Adjusted results include results from discontinued operations, specifically the

Euromoney subsidiary during the first three months of Half Year 2017.

3 Euromoney ceased to be a subsidiary at the end of December 2016. Pro Forma Half Year 2017 figures have been restated to

treat Euromoney as a c.49% owned associate for the whole period, consistent with the ownership profile during Half Year

2018. See page 15.

4 The statutory results are IFRS figures before any adjustments. They are for continuing operations only (excluding the

discontinued operations, Euromoney, from the first three months of Half Year 2017), other than basic earnings per share

since the statutory figure includes discontinued operations.

~ Percentages are calculated on actual numbers to one decimal place.

The average £: US$ exchange rate for the first half of the year was £1:$1.36 (against £1:$1.24 last year). The rate at the Half

Year end was $1.40 (2017: $1.26), compared to $1.34 at the September 2017 year end.

Daily Mail and General Trust plc Northcliffe House, 2 Derry Street,

London, W8 5TT

www.dmgt.co.uk

Registered in England and Wales No. 184594

http://www.dmgt.co.uk/

Interim Management Report

This interim management report focuses principally on the adjusted results to give a more

comparable indication of the Group's business performance. The adjusted results are summarised

below, with the pro forma³ Half Year 2017 and pro forma Full Year 2017 comparatives:

Adjusted results²

Half Year

2018

£m

Half Year

2017

£m

(Pro Forma³)

Change~ Full Year

2017

£m

(Pro Forma³)

Revenue 746 794 -6% 1,564

Operating profit 84 81 +3% 179

Income from JV’s and associates 41 36 +14% 79

Net finance costs (21) (21) +2% (41)

Profit before tax 103 96 +8% 216

Tax charge (16) (14) +20% (27)

Minority interest - 2 -120% 4

Group profit 86 84 +3% 194

Adjusted earnings per share 24.4p 23.8p +2% 54.8p Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers.

Group revenue for the six months to 31 March 2018 was £746m, a decrease of 6% on both a statutory

and pro forma basis, reflecting the adverse effect of the weaker US dollar relative to sterling. On an

underlying¹ basis, adjusted revenue grew 1%. Underlying revenue growth was delivered in

subscriptions, digital advertising, events and transactions, but was partly offset by the anticipated

decline in print advertising and circulation.

Adjusted operating profit of £84m grew 3% on a pro forma basis, including the impact of the disposal

and closure of loss-making businesses, and was stable on an underlying basis. The underlying

performance reflected growth in profits from the B2B businesses, notably Insurance Risk and EdTech,

a decrease from Consumer Media and, as guided to, an increase in Corporate costs. The adjusted

operating margin in the period was 11%, an improvement on the pro forma 10% in the first half of the

prior year, with the increase being largely attributable to Insurance Risk and Property Information.

Adjusted profit before tax was £103m, pro forma growth of 8%, reflecting the growth in operating

profit and a 14% pro forma increase in the share of operating profits from joint ventures and

associates. The adjusted tax charge was £16m, a pro forma increase of 20% on last year, due to an

increase in the effective tax rate as well as the impact of increased profits. Adjusted basic earnings per

share of 24.4p grew by 2% on a pro forma basis.

The statutory profit before tax for the period was £113m, an increase of £72m on the prior year, due to

reduced exceptional costs, the absence of impairments and the benefit of the share of gains on

associates’ disposals. Statutory basic earnings per share were 32.2p, a reduction on the prior year

which included a gain on the Euromoney transaction.

The table below sets out the reconciliation from statutory profit before tax to adjusted profit before

tax. More detail and explanations are provided on pages 16 to 19.

Half Year

2018

£m

Half Year

2017

£m

Explanation

(as per pages 16

and 17)

Statutory profit before tax 113 41

Discontinued operations - 525 1

Exceptional operating costs 2 23 2

Impairment of plant - 36 3

Intangible impairment and amortisation 21 38 4

Profit on sale of assets (41) (530) 5

Pension finance (credit) / charge (1) 3 6

Other adjustments 9 (29) 7

Adjusted profit before tax 103 105

Euromoney pro forma³ adjustment - (10)

Adjusted profit before tax (Pro Forma³) 103 96

Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers.

Progress on Strategic Priorities

DMGT’s three key strategic priorities are improving operational execution, increasing portfolio focus

and enhancing financial flexibility. As presented at the DMGT Investor Briefing event on 1 February

2018, the Performance Improvement Programme includes operating initiatives for each company that

are aligned with each business’s clear role within the Group. Good initial progress was made during

the period, with initiatives across all five categories of product, commercial, operations, people and

technology.

The focus within the portfolio has been further increased by Xceligent’s cessation of trading, the

disposal of EDR and Hobsons’ Solutions business and the partial sale of SiteCompli. DMGT’s financial

flexibility has been further enhanced and, including the impact of the EDR disposal, which completed

in early April 2018, the net debt:EBITDA ratio was 1.2 at the period end. The potential disposal of

DMGT’s c.30% stake in ZPG Plc, which is expected to complete during the final quarter of the current

financial year, would be a clear demonstration of long-term value creation, further increasing

portfolio focus and significantly enhancing financial flexibility. Our approach to capital allocation

remains structured and disciplined. The commitment to organic investment and consistent, real

dividend growth will continue to be our highest priorities. We take a balanced view on the relative

merits of acquisitions, reducing net debt and returning capital to shareholders through share buy-

backs.

Group outlook

The Group’s first half performance has been in line with expectations and the outlook for the Full

Year, as provided in November 2017, remains unchanged:

The B2B businesses are collectively expected to deliver underlying revenue growth in the low-

single digits and an adjusted operating margin in the mid-teens;

The underlying rate of decline in Consumer Media’s revenues is expected to be in the mid-

single digits and the adjusted operating margin is expected to be around 10%;

Corporate costs are expected to be around £45m;

The share of adjusted operating profits from joint ventures and associates is expected to be at

least £75m, excluding any impact from the ZPG Plc disposal occurring pre year end;

Net finance costs are expected to be around £40m; and

The effective tax rate is expected to be around 18%.

Business Review

Business to Business (B2B)

Half Year

2018

£m

Half Year

2017

£m

(Pro Forma³)

Change~

Underlying¹

Change~

Full Year

2017

£m

(Pro Forma³)

Revenue 411 444 -7% +4% 881

Adjusted² operating profit 71 61 +16% +15% 133

Adjusted² operating margin 17% 14% 15%

B2B revenues totalled £411m, up 4% on an underlying basis, with growth from EdTech, Energy

Information, Insurance Risk and Events and Exhibitions whilst Property Information delivered a

stable underlying performance. Revenues decreased by 7% on a pro forma basis, following disposals

by the EdTech business in September and October 2017 and reflecting the weaker US dollar. B2B

operating profits were £71m, up an underlying 15%, driven by Insurance Risk and EdTech. The

overall B2B operating margin increased to 17% and included the benefit of a stronger Property

Information margin following the closure of Xceligent in December 2017.

Outlook: the guidance for the B2B businesses remains unchanged. The financial performance during

the remainder of the year will be impacted by the disposal of EDR, which occurred in April 2018, and

by the sale of the seasonal Hobsons Admissions and Solutions businesses, which had profits weighted

towards the second half. The challenging conditions facing the UK property market are also expected

to continue. The underlying revenue growth rate for the Full Year is expected to be in the low-single

digits and the adjusted operating margin is expected to be in the mid-teens.

Insurance Risk: RMS

Half Year

2018

£m

Half Year

2017

£m

Change~

Underlying¹

Change~

Full Year

2017

£m

Revenue 113 117 -4% +6% 233



RMS’s revenues increased by 6% on an underlying basis, including the benefit of one-off project

revenues and a 3% underlying increase in subscription revenues. Reported revenues decreased 4% to

£113m due to the weaker US dollar. The adjusted operating margin improved to 17% and included the

benefit of some timing differences to the cost base which are expected to reverse in the second half.

RMS’s pipeline of models remains strong, reflecting an ongoing commitment to strengthening the

business’s leading market position. The new high definition US inland flood, North American wildfire

and European severe convective storm models, as well as the third generation cyber models, are

expected to be made available to customers by the end of calendar year 2018. Also, RiskLink18 is

scheduled for release in July 2018 and will include updates to the US storm surge model as well as new

and updated earthquake and typhoon models that will expand coverage across the Asia Pacific region.

Karen White was appointed RMS CEO in March 2018, bringing significant experience of leading

enterprise software companies. RMS will continue to invest and to target growth in its core

catastrophe model business. At the same time, the company will enhance its software platform,

RMS(one). In order to give clients greater flexibility, a more modular approach to the delivery of

RMS(one) to the market will be adopted, enabling clients to choose modules and functionality that

best meets their needs over time.

Property Information

Half Year

2018

£m

Half Year

2017

£m

Change~

Underlying¹

Change~

Full Year

2017

£m

Revenue 151 161 -6% +0% 328



The focus within the US Property Information portfolio has been significantly increased this financial

year. Firstly, Xceligent filed for liquidation in December 2017. Secondly, the disposal of EDR for

US$205m was completed in April 2018. Thirdly, also in April 2018, DMGT reduced its stake in

SiteCompli to 49%, with the founding management team now holding a majority stake in the business.

SiteCompli is now classified as an associate rather than a DMGT subsidiary. The underlying

performance during the period excludes these three businesses.

The US Property Information portfolio now comprises Trepp, a leading provider of data, analytics and

technology solutions to the global securities and investment management industries, and one of

DMGT’s operating at scale businesses; and BuildFax, an early stage but leading provider of property

condition and history data. The European Property Information portfolio continues to consist of the

Landmark Information Group, including Landmark and SearchFlow in the UK and On-geo in

Germany.

Property Information revenues were stable on an underlying basis as the growth in the US offset the

decrease from the European business, which continued to face challenging conditions in the UK with

lower volumes of residential transactions. The 6% reported decrease in revenues reflected the weaker

US dollar and the absence of Xceligent during the second quarter. Adjusted operating profit grew by

1% on an underlying basis and the operating margin increased to 18%. The margin benefited from the

absence of loss-making Xceligent during the second quarter and with central US costs, previously

allocated to dmg information’s cost base, now being included in Group Corporate costs in the current

year.

EdTech: Hobsons

Half Year

2018

£m

Half Year

2017

£m

Change~

Underlying¹

Change~

Full Year

2017

£m

Revenue 33 54 -40% +10% 115

Adjusted² operating profit 3 3 +19% N/A* 16


* The underlying operating profit performance has improved from a loss to a profit, with a £4m improvement.

EdTech revenues grew by an underlying 10%, with continued growth from each of Hobsons’ three

product lines: Naviance, the K-12 career and college planning solution; Intersect, the higher education

matching business, and Starfish, the higher education student retention and success platform. The

disposal of the Admissions and Solutions businesses in September and October 2017 respectively

resulted in reported revenues decreasing to £33m. Adjusted operating profit was £3m, in line with the

prior year, but a £4m improvement on an underlying basis. Due to the seasonality of the Admissions

and Solutions businesses, the adverse profit impact will be more pronounced during the second half

of the year than it was in the first half.

Energy Information: Genscape

Half Year

2018

£m

Half Year

2017

£m

Change~

Underlying¹

Change~

Full Year

2017

£m

Revenue 43 44 -1% +6% 88

Adjusted² operating profit - - N/A N/A* 2


* The underlying operating profit performance has deteriorated from a profit to a loss, with a £1m change.

Energy Information revenues grew by an underlying 6%, with continued strong growth from the core

Oil, Power and Gas sectors and a reduction in the rate of decline from the solar business, Locus

Energy. Including the adverse effect of the weaker US dollar, revenue decreased slightly to £43m. An

efficiency and performance improvement programme has been instigated by the new management

team which resulted in some non-exceptional restructuring costs being incurred during the period.

The breakeven profit performance during the period also reflected a larger proportion of payroll costs

being expensed directly, with reduced capitalisation.

Events and Exhibitions: dmg events

Half Year

2018

£m

Half Year

2017

£m

Change~

Underlying¹

Change~

Full Year

2017

£m

Revenue 72 69 +5% +3% 117

Adjusted² operating profit 20 21 -5% -7% 31


Events and Exhibitions revenues increased by 3% on an underlying basis. Big 5 Dubai and ADIPEC,

two of the business’s three large events, were held in November 2017 and collectively delivered mid-

single digit underlying revenue growth. The Index interior design show occurred in March 2018,

having previously been held in May 2017. Although the Index show was a smaller event this year, the

timing benefit supported the 5% year-on-year growth in total revenues in the period to £72m, despite

the weaker US dollar. The operating margin was 28%, a slight reduction compared to the prior year,

due to expected increased costs for the major shows, notably ADIPEC. Two small businesses were also

acquired in the period, with events in the construction and hotel interior design sectors.

The Gastech event, one of the three large events in the portfolio, is being held in Barcelona in

September 2018 and is expected to generate less revenue than the April 2017 Tokyo event, which

benefited from Japan being the largest LNG market. An additional Index Elements event will also be

held in September 2018, however, and this is expected to offset the Gastech impact. In FY 2019, all

three of the business’s large events will occur; Gastech, which has historically been on an 18 month

cycle, will be held in Houston in September 2019.

Consumer Media: dmg media

Half Year

2018

£m

Half Year

2017

£m

Change~

Underlying¹

Change~

Full Year

2017

£m

Revenue:

Daily Mail / The Mail on Sunday 219 234 -6% -6% 455

MailOnline 61 60 +2% +5% 119

Mail Businesses 280 293 -5% -4% 574

Metro 37 34 +8% +8% 68

Newsprint and other continuing 18 18 +2% 36

Sub-total 335 345 -3% -3% 678

Elite Daily and 7 Days - 5 -100% 5

Total Revenue 335 350 -4% -3% 683

Adjusted² operating profit

Adjusted² operating margin

38

11%

36

10%

+5%

-8%

77

11% Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers.

Revenue decreased by an underlying 3% to £335m. As expected, the underlying growth from

MailOnline (+5%), was more than offset by decreasing circulation revenues (-6%) and declines in print

advertising (-3%). Total advertising revenues were in line with last year on an underlying basis.

Including the impact of the disposal of Elite Daily in April 2017, reported revenues decreased by 4%.

Revenues for the combined Mail newspaper and website businesses (Daily Mail, The Mail on Sunday

and MailOnline) decreased by an underlying 4% to £280m. A 6% reduction in circulation revenue, to

£147m, and a 9% decline in print advertising revenue, to £64m, was partly offset by MailOnline, which

grew revenues by an underlying 5%, to £61m. Continued declining circulation volumes were partly

offset by the benefit of the cover price increase of The Mail on Sunday from £1.70 to £1.80 in October

2017. The Mail brand remains strong, which is reflected in the large market shares held by the Daily

Mail and The Mail on Sunday of 23.4% and 22.0% respectively∞.

MailOnline continues to grow the number of visitors coming directly to its site. Indirect traffic,

notably via search and social platforms, has reduced however, and this resulted in total average daily

global unique browsers during the period decreasing by 9% to 13.6m. These challenging market

conditions resulted in the slowing underlying revenue growth rate for MailOnline in the period. Total

advertising revenues across the combined Mail newspaper and website businesses were £124m, an

underlying decrease of 3%.

Metro delivered a robust revenue performance in the context of a declining print advertising market,

growing revenues by 8% to £37m, including the benefit of taking on four franchises from Trinity

Mirror in January 2017 and a further two in January 2018.

Adjusted operating profit for the period grew by 5% to £38m, including the benefit from disposing of

the loss-making Elite Daily business. Profits decreased by 8% on an underlying basis, as the reduction

in the Mail newspapers’ cost base and improved contribution from MailOnline only partially offset the

adverse effect of decreasing circulation and print advertising revenues. The operating margin in the

period was 11%. The operating margin in the same period last year was 10% although, excluding Elite

Daily and 7 Days to give a like-for-like comparison, it would have been 12%.

Outlook: the Consumer Media outlook remains unchanged. The challenging conditions in the

advertising market are expected to continue and further declines in circulation volumes are

anticipated. The underlying rate of decline in Consumer Media revenues for the Full Year is expected

to be in the mid-single digits and the operating margin is expected to be around 10%.

Corporate costs

Half Year

2018

£m

Half Year

2017

£m

Change~

Underlying¹

Change~

Full Year

2017

£m

Corporate costs² (24) (16) +54% +32% (32)

Corporate costs were £24m, an underlying increase of 32% after adjusting for US based costs

previously within dmg information’s cost base. The increase was largely due to payroll costs, given

the strengthening of central functions, including strategy, technology and talent, to better support,

monitor and review businesses and to assess potential capital allocation decisions.

Outlook: Corporate costs are expected to be around £45m in FY 2018.

Joint Ventures & Associates

Share of pre-tax operating profits² Half Year

2018

£m

Half Year

2017

£m

(Pro Forma³)

Change~

Full Year

2017

£m

(Pro Forma³)

Euromoney Institutional Investor PLC 27 26 +6% 56

ZPG Plc 17 12 +47% 25

Other joint ventures and associates (4) (2) +100% (2)

Total joint ventures and associates 41 36 +14% 79 Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers.

The Group’s share of adjusted operating profits from joint ventures and associates was £41m, a 14%

pro forma increase on the prior year. The share of profits from DMGT’s c.49% stake in Euromoney

was £27m, up 6% on last year on a pro forma basis. Euromoney released its Half Year results on 17

May 2018 and reported underlying revenue growth of 4% in the period, driven by 11% growth from its

events businesses, and a 6% increase in adjusted profit before tax. In April 2018, Euromoney disposed

of its Global Markets Intelligence Division and, including the proceeds, the company is now in a net

cash position.

The share of adjusted operating profits from DMGT’s c.30% stake in ZPG Plc increased 47% to £17m.

ZPG released its Half Year results on 23 May 2018 and reported revenue growth of 33% and a 41%

increase in adjusted EBITDA, including the benefit of acquisitions, with strong growth across both the

Property and Comparison divisions. In May 2018, DMGT gave an irrevocable undertaking to accept

Silver Lake’s offer to acquire DMGT’s entire holding of 131m ZPG shares for £4.90 per share. The ZPG

disposal is expected to complete during the final quarter of the current financial year with c.£640m of

potential proceeds.

The share of operating profits and losses from other joint ventures and associates, which are mainly

early stage businesses, was a net loss of £4m (HY 2017 £2m). The increase was largely due to

investment in consumer businesses, notably DailyMailTV which has been renewed for a second

season following its successful launch in September 2017.

Outlook: the results during the second half of the year will be adversely affected by Euromoney’s

disposal of its Global Markets Intelligence Division. The Full Year share of operating profits from

joint ventures and associates is expected to be at least £75m, excluding any impact from ZPG Plc

disposal occuring pre year end.

Net finance costs

Half Year

2018

£m

Half Year

2017

£m

(Pro Forma³)

Change~

Full Year

2017

£m

(Pro Forma³)

Net interest payable and similar charges² (21) (21) +2% (41)

Net interest payable and similar charges, including DMGT’s share of associates’ interest costs, was

£21m, a 2% increase on the prior year. DMGT benefited from lower average debt levels during the

period but the interest payable was adversely affected by an increase in the share of associates’ interest

payable to £3m, from £2m in the prior period.

The pension finance credit, which is excluded from adjusted results, was £1m for the period, reflecting

the pension surplus on an accounting basis. This compared to a £3m charge for the same period last

year and £5m charge for the prior Full Year.

Outlook: net finance costs for the Full Year are expected to be around £40m.

Other income statement items

Exceptional items and amortisation

The exceptional cash items in the period amounted to a credit of £2m in respect of previously accrued

legal fees. This was a significant reduction compared to the £20m charge for exceptional cash items in

the first half of the prior year. Total exceptional operating costs, including those of joint ventures and

associates, were £2m in the period (HY 2017 £23m).

The charge for amortisation of intangible assets arising on business combinations, including the share

from joint ventures and associates, was £19m (HY 2017 £26m). There were no impairment charges in

the period, other than DMGT’s £2m share of associates’ charges, whereas the Group incurred a £35m

charge in respect of the Didcot printing plant in the first half of the prior year. The Group recorded

other net gains on disposal of businesses and investments of £41m, primarily from Euromoney’s

disposal of its investment in Dealogic (HY 2017 gain £530m).

Taxation

The adjusted tax charge of £16m (HY 2017 £14m pro forma³) is stated after adjusting for the effect of

exceptional items. As expected, the adjusted tax rate for the half year was 15.8%, an increase on the

pro forma basis 14.2% in Half Year 2017, due to new legislation substantively enacted during the

period restricting the use of historic UK losses. The rate for the Half Year is lower than the expected

rate of 18% for the Full Year, due to the majority of profits in low tax countries being earned in the

first half of the year.

The statutory tax credit for the period was £4m and the share of associates’ tax charge amounted to

£10m. There were £10m of exceptional tax credits including a one-off non-cash tax credit of £16m on

the revaluation of the Group’s US deferred tax liabilities as a result of the reduction in the US federal

tax rate.

Outlook: the US ‘Tax Cuts and Jobs Act’ was enacted during the period, reducing the federal tax rate

but also introducing various measures to fund that reduction, including restrictions to the

deductibility of interest costs and amendments to the taxation of non-US subsidiaries. Overall, we

assess the impact of tax changes in the US to be largely neutral for DMGT in the short term, but to be

beneficial over time as our US-generated profits increase. The effective tax rate for the Full Year is

still expected to be around 18%. The rate is then expected to increase further over the next few years,

to over 20%.

Pensions

The net surplus on the Group’s defined benefit pension schemes increased from £62m at the start of

the year to £79m at the half year (calculated in accordance with IAS 19 (Revised)), with an increase in

the value of assets exceeding the increase in the value of the defined benefit obligation. Funding

payments into the main schemes during the period were £13m and are expected to continue at least

until the next triennial actuarial valuation as the schemes remain in deficit on an actuarial basis. The

defined benefit schemes are closed to new entrants.

Net debt and cash flow

Net debt at the end of the period was £534m, an increase of £70m since the start of the financial year,

reflecting the usual seasonal cash outflows. The net debt:EBITDA ratio was 1.6. Cash outflows in the

period included dividends of £56m, interest payments of £17m, pension funding payments of £13m

and taxation of £1m. Net expenditure on acquisitions and investments, including proceeds from

disposals, was £17m. Group operating cash flow was £24m in the period, including £26m of capital

expenditure, and was adversely affected by the usual seasonal outflows. The seasonality was also

reflected in the 28% conversion rate of operating profits to operating cash flow, an improvement on

the 22% pro forma³ rate in the prior year.

The Group’s adjusted cash operating income, which is calculated by adding back depreciation and

amortisation and by deducting capital expenditure from Group adjusted operating income, was £87m

in the period. This metric, a Group key performance indicator, reflects the cash generation of the

Group’s subsidiary businesses and improved by 4% on a pro forma basis, from £84m in the prior year.

The Group broadly matches the profile of its net debt by currency to the components of its operating

cash flow by currency. The strengthening of sterling, notably against the US dollar, resulted in a

favourable debt revaluation of £11m during the period.

Including the benefit of the proceeds from the disposal of EDR, which completed in April 2018, and

eliminating EDR’s profits, the net debt:EBITDA ratio would have been 1.2 at the period end. Net debt is

typically at its peak at around the half year, due to the timing of the payment of the prior year’s final

dividend and other annual payments. The potential disposal of DMGT’s c.30% stake in ZPG Plc was

announced in May 2018. The disposal is expected to complete during the final quarter of the current

financial year, with c.£640m proceeds, which will strengthen the balance sheet further.

In December 2017, Standard & Poor’s revised its corporate credit rating for DMGT from BBB- to BB+,

following the reduction in DMGT’s profit margin due to the deconsolidation of Euromoney. In January

2018, Fitch reaffirmed DMGT’s BBB- investment grade rating. In March 2018, DMGT renewed its bank

facilities, with largely similar terms, and the Group now has £415m of facilities available until March

2023, in addition to £424m of bond debt at the period end.

The Directors consider that the Group has adequate resources to continue in operational existence for

at least the next twelve months. Accordingly, they continue to adopt the going concern basis in

preparing the half yearly report.

Financing

During the first half of the year, the Group acquired 0.7m ‘A’ Ordinary Shares for £5m in order to meet

obligations to provide shares under its incentive plans. In addition, 1.4m shares were used from the

Employee Benefit Trust, valued at £10m, to provide shares under various incentive plans. As at 31

March 2018, DMGT had 354.3m shares in issue, including 19.9m Ordinary Shares, and a further 7.8m

‘A’ Ordinary Shares held in Treasury and the Employee Benefit Trust∂.

Dividend

The Board has declared an interim dividend of 7.1 pence per Ordinary and ‘A’ Ordinary Non-Voting

share (HY 2017 6.9 pence) which will be paid on 29 June 2018 to shareholders on the register at the

close of business on 8 June 2018.

Pro Forma Half Year 2017 and Full Year 2017 adjusted results

Euromoney ceased to be a c.67% owned subsidiary and became a c.49% owned associate with effect

from 29 December 2016. As a subsidiary, 100% of Euromoney’s revenue and operating profit was

included in DMGT’s results whereas as an associate, DMGT recognises its share of operating profits.

The tables below make revisions to Half Year 2017 and Full Year 2017 to treat Euromoney as a c.49%

owned associate for the whole period, consistent with the ownership profile during the current year.

Group summary

Adjusted results²

(from continuing and

Half Year

2017

£m

Full Year

2017

£m discontinued operations)

Reported Revision Pro

Forma³


Forma³

Revenue 890 (95) 794 1,660 (95) 1,564

Operating profit 100 (19) 81 198 (19) 179

Income from JV’s and associates 26 9 36 69 9 79

Net finance costs (21) - (21) (42) - (41)

Profit before tax 105 (10) 96 226 (10) 216

Tax charge (15) 2 (14) (29) 2 (27)

Minority interest (3) 5 2 (1) 5 4

Group profit 87 (3) 84 196 (3) 194

Earnings per share 24.6p (0.8)p 23.8p 55.6p (0.8)p 54.8p

Operating profit margin 11% 10% 12% 11% Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers.

Business to business (B2B)

Adjusted results²


Half Year

2017

£m

Full Year

2017



Forma³


Forma³

Revenue 540 (95) 444 976 (95) 881

Operating profit 80 (19) 61 152 (19) 133

Operating margin 15% 14% 16% 15%

Euromoney Institutional Investor

Adjusted results²


Half Year

2017

£m

Full Year

2017



Forma³


Forma³

Revenue 95 (95) - 95 (95) -

Operating profit 19 (19) - 19 (19) -

Operating margin 20% N/A 20% N/A

Adjusted results: statutory profit before tax (PBT) reconciliation to adjusted PBT

The Board and management team use adjusted results, rather than statutory results, to give greater

insight to the financial performance of the Group and the way it is managed. Similarly, adjusted

results are used in setting management remuneration. Adjusted results exclude certain items which,

if included, could distort the understanding of performance during the period and the comparability

between periods.

The tables on pages 18 and 19 show the adjustments between statutory profit before tax and adjusted

profit before tax, by business, for both the first half of FY 2018 (HY 2018) and HY 2017.

The explanation for each type of adjustment is as follows:

1) Discontinued operations: the adjusted results for HY 2017 include the pre-disposal results of

discontinued operations, namely Euromoney, in which DMGT reduced its stake from c.67% to

c.49% in December 2016, whereas statutory results only include continuing operations.

2) Exceptional operating costs: businesses occasionally incur exceptional costs, including

severance and consultancy fees, in respect of a reorganisation that is incremental to normal

operations. Similarly, for the Group’s B2B businesses, there may be legal costs in respect of

litigation that are outside the ordinary course of business and sufficiently material to be treated

as an exceptional cost. These are excluded from adjusted results.

3) Impairment of plant: occasionally the carrying value of an asset in the balance sheet is

considered to be greater than the value in use or the fair value less costs to sell and it is

appropriate to impair it. The associated charge is excluded from adjusted results since it is

unrelated to the ongoing cost of doing business. The ongoing depreciation and amortisation of

tangible assets and software, including products, is, however, an everyday cost of doing

business and is included in both statutory and adjusted results. A reorganisation may also

result in the write-off of the carrying value of tangible fixed assets, as was the case during HY

2017 when dmg media closed its Didcot printing plant, and this expense is excluded from

adjusted results.

4) Intangible impairment and amortisation: when acquiring businesses, the premium paid

relative to the net assets on the balance sheet of the acquired business is classified as either

goodwill or as an intangible asset arising on a business combination and is recognised on

DMGT’s balance sheet. This differs to organically developed businesses where assets such as

employee talent and customer relationships are not recognised on the balance sheet.

Impairment and amortisation of intangible assets and goodwill arising on acquisitions are

excluded from adjusted results as they relate to historical M&A activity and future expectations

rather than the trading performance of the business during the period. An example is the

impairment during the second half of FY 2017 of the goodwill and intangible assets associated

with the US Property Information business, Xceligent.

5) Profit on sale of assets: the Group makes gains or losses when disposing of businesses, for

example on the disposal of Euromoney shares when DMGT reduced its stake from c.67% to

c.49%. These items are excluded from adjusted results as they reflect the value created since

the business was formed or acquired rather than the operating performance of the business

during the period. Similarly, the gains or losses made by joint ventures or associates when

disposing of businesses are excluded from adjusted results.

6) Pension finance charge: the finance charge or credit on defined benefit schemes is a formulaic

calculation that does not necessarily reflect the underlying economics associated with the

relevant pension assets and liabilities. It is effectively a notional charge and is excluded from

adjusted results.

7) Other adjustments: other items that are excluded from adjusted results include changes in the

fair value of certain financial instruments and changes to future acquisition payments. They

are considered to be unrelated to the ongoing cost of doing business. The share of joint

ventures’ and associates’ tax charges is included in statutory profit before tax but, since it is a

tax charge, is excluded from adjusted profit before tax. The share of joint ventures’ and

associates’ interest charges is reclassified to financing costs in the adjusted results

Reconciliation: Statutory profit to adjusted profit – Half Year 2018

£ millions Note IRA PIB ETC EID E&EE CMF CCG JV&AH DMGT

Group

Statutory operating profit 20 22 2 2 20 36 (24) 56 133

Exceptional operating costs 2 - 2 - (4) - 1 - 2 2 ∞

Intangible impairment and amortisation 4 - 4 1 2 - - - 13 21 ∞

Associates’ profit on sale of assets 5 (43) (43)

Exclude JV’s & Associates 28 (28)

Adjusted operating profit 20 28 3 - 20 38 (24) 84

£ millions Note IRA PIB ETC EID E&EE CMF CCG JV&AH FCI DMGT

Group

Statutory PBT 20 25 (6) 2 20 37 (24) 56 (16) 113

Profit on sale of assets 5 - (3) 8 - - (1) (1) (43) - (41)

Operating profit adjustments (∞ above) 2, 4 - 6 2 (2) - 2 - 15 - 22 Total ∞

Pension finance charge 6 - - - - - - - - (1) (1)

Other adjustments 7 - - - 1 - - - 13 (4) 9

Adjusted PBT 20 28 2 - 20 38 (24) 41 (21) 103

Notes: The figures in the Note column above correspond with explanations of the adjustments given on pages 16 and 17.

A IR = Insurance Risk, B PI = Property Information, C ET = EdTech, D EI = Energy Information, E E&E = Events and Exhibitions, F CM = Consumer

Media, G CC = Corporate costs, H JV&A = Joint ventures and Associates, I FC = Financing costs


Reconciliation: Statutory profit to adjusted profit – Half Year 2017

£ millions Note IRA PIB ETC EID E&EE ERMF CMG CCH JV&AI DMGT

Group

Statutory operating profit 13 10 (5) (4) 21 - (5) (16) 3 17

Discontinued operations 1 - - - - - 13 - - (1) 12

Exceptional operating costs 2 3 6 5 1 - 1 5 - 3 23 ∞

Impairment of plant 3 - - - - - - 35 - - 36 ∞

Intangible impairment and amortisation 4 - 6 2 3 - 5 - - 20 38 ∞

Associates’ profits on sale of assets 5 (1) (1)

Exclude JV’s & Associates 24 (24)

Adjusted operating profit 16 22 3 - 21 19 36 (16) 100

£ millions Note IRA PIB ETC EID E&EE ERMF CMG CCH JV&AI FCJ DMGT

Group

Statutory PBT 13 10 (6) (3) 21 - 13 (16) 3 7 41

Discontinued operations 1 - - - - - 525 - - 1 (1) 525

Profit on sale of assets 5 - - 1 - - (512) (18) - (1) - (530)

Operating profit adjustments (∞ above) 2, 3, 4 3 12 7 4 - 6 41 - 23 - 96 Total ∞

Pension finance charge 6 - - - - - - - - - 3 3

Other adjustments 7 - - - - - - 1 - 1 (30) (29)

Adjusted PBT 16 22 3 - 21 19 36 (16) 26 (21) 105

Notes: The figures in the Note column above correspond with explanations of the adjustments given on pages 16 and 17.

A IR = Insurance Risk, B PI = Property Information, C ET = EdTech, D EI = Energy Information, E E&E = Events and Exhibitions, F ERM = Euromoney,

G CM = Consumer Media, H CC = Corporate costs, I JV&A = Joint ventures and Associates, J FC = Financing costs


Reconciliation: Adjusted results including and excluding discontinued operations

Half Year 2017

£ million Adjusted

results

including

discontinued

operations

Discontinued

operations

Adjusted

results

excluding

discontinued

operations

Revenues

Continuing operations 794 - 794

Discontinued operations 95 95 -

Total Revenue 890 95 794

Operating Profit

Continuing operations 81 - 81

Discontinued operations 19 19 -

Total Operating Profit 100 19 81

Operating margin % 11% 20% 10%

Notes: The discontinued operations refer to Euromoney.


Cash operating income

Half Year 2017

£ million Reported Revision Pro Forma Half Year 2018

Adjusted Group operating profit 100 (19) 81 84

Add: Depreciation of tangible fixed assets 18 (1) 17 13

Add: Amortisation of intangible assets

(e.g. products and software)

24 (1) 23 16

Less: Purchase of tangible fixed assets (14) 3 (12) (16)

Less: Expenditure on intangible fixed assets

(e.g. products and software)

(27) 1 (26) (10)

DMGT Cash operating income 101 (18) 84 87

Notes: The Pro Forma revision is to exclude Euromoney, consistent with Half Year 2018.


Underlying analysis – Revenues

Half Year 2018 Half Year 2017

£ millions % Underlying M&A Other Reported Underlying M&A Exchange Other Reported

Insurance Risk +6% 113 - - 113 107 - (10) - 117

Property Information +0% 117 (34) - 151 117 (38) (6) - 161

EdTech +10% 33 - - 33 30 (21) (4) - 54

Energy Information +6% 43 - - 43 41 - (3) - 44

Events and Exhibitions +3% 72 - - 72 70 1 (6) 6 69

Euromoney N/A - - - - - (95) - - 95

B2B +4% 377 (34) - 411 363 (153) (29) 6 540

Consumer Media -3% 318 - (17) 335 326 (5) (2) (17) 350

DMGT Group +1% 695 (34) (17) 746 690 (158) (31) (11) 890

Notes: M&A adjustments are for disposals and acquisitions. The underlying results include the post-acquisition organic growth from acquired entities. In

April 2018, EDR was sold and SiteCompli ceased to be a subsidiary and both businesses are excluded from the underlying growth rates. ‘Other’

includes adjustments for the timing of shows at Events and Exhibitions, for the consistent timing of revenue recognition and for the gross-up,

equivalent to the cost of sales, on the low margin resale of newsprint activities.


Underlying analysis – Adjusted operating profit²

Half Year 2018 Half Year 2017

£ millions % Underlying M&A Other Reported Underlying M&A Exchange Other Reported

Insurance Risk +52% 20 - - 20 13 - (3) - 16

Property Information +1% 27 (1) - 28 27 4 (1) 2 22

EdTech N/A* 3 - - 3 (1) (5) - 1 3

Energy Information N/A* - - - - 1 - - 1 -

Events and Exhibitions -7% 20 - (1) 20 21 - (2) 2 21

Euromoney N/A - - - - - (19) - - 19

B2B +15% 69 (1) (1) 71 61 (19) (5) 5 80

Consumer Media -8% 38 - - 38 41 4 - - 36

Corporate costs -32% (24) - - (24) (19) - - (3) (16)

Operating profit +0% 83 (1) (1) 84 83 (15) (5) 2 100

Notes: M&A adjustments are for disposals and acquisitions. The underlying results include the post-acquisition organic growth from acquired entities. In

April 2018, EDR was sold and SiteCompli ceased to be a subsidiary and both businesses are excluded from the underlying growth rates. ‘Other’

includes adjustments for the timing of shows at Events and Exhibitions, for the consistent timing of revenue recognition and for the gross-up,

equivalent to the cost of sales, on the low margin resale of newsprint activities. For FY 2017, central dmg information costs allocated to Property

Information, EdTech and Energy Information are reclassified to Corporate costs, consistent with all US central costs being included in Corporate costs

in FY 2018; this adjustment is also included in ‘Other’.


* The underlying performance improved by £4m for EdTech and deteriorated by £1m for Energy Information.

Principal risks and uncertainties

The principal risks and uncertainties that affect the Group on an ongoing basis are described

in our 2017 Annual Report. These are still considered to be the most relevant risks and

uncertainties for the Group at this time and they are summarised below.

Strategic Risks

Market disruption creates opportunities as well as risks. Disruption enables us to move

into new markets and geographies to grow the business. Failure to anticipate and

respond to market disruption may affect the demand for our products and services and

our ability to drive long-term growth.

Internal investments in new products and services, and developments of existing

products and services, may fail to achieve customer acceptance and yield expected

benefits.

Economic and geopolitical uncertainty.

Acquisitions and investments not delivering as expected, portfolio changes not delivering

expected benefits, or not divesting from non-core businesses at the right time.

Failure to secure and retain the right people for senior and business critical roles.

Operational Risks

Information security breach or cyberattack.

Reliance on key third parties; a failure of one of our critical third parties may cause

disruption to business operations.

Compliance with laws and regulations across multiple jurisdictions. Readiness for the

General Data Protection Regulation, which comes into effect on 25 May 2018, has been a

specific focus area for the Group.

Pension scheme deficit within our newspaper business, certain other businesses and

DMGT head office.

Statement of Directors’ responsibilities

The Directors are responsible for preparing the Half Yearly Financial Report, in accordance

with applicable law and regulations.

The Directors confirm that to the best of their knowledge:

a) this Condensed set of Financial Statements which should be read in conjunction with the

annual financial statements for the year ended 30 September 2017 and has been prepared in

accordance with IAS 34 ‘Interim Financial Reporting’ as adopted by the European Union; and

b) the Interim Management Report includes a fair review of the information required by the

Financial Conduct Authority’s Disclosure and Transparency Rules 4.2.7R and 4.2.8R.

By order of the Board of Directors

The Viscount Rothermere

Chairman

23 May 2018

Notes

1 Underlying revenue or profit is revenue or operating profit on a like-for-like basis, see pages 22 and 23.

Underlying results are adjusted for constant exchange rates, the exclusion of disposals and closures, the inclusion

of the year-on-year organic growth from acquisitions and for the consistent timing of revenue recognition. For

events, the comparisons are between events held in the year and the same events held the previous time. For

Consumer Media, underlying revenues exclude low margin newsprint resale activities. For FY 2017, central dmg

information costs allocated to Property Information, EdTech and Energy Information are reclassified to Corporate

costs, consistent with all US central costs being included in Corporate costs in FY 2018.

2 Unless otherwise stated, all profit and profit margin figures in this Interim Management Report refer to adjusted

results and not statutory results. The Board and management team use adjusted results, rather than statutory

results, to give greater insight to the financial performance of the Group and the way that it is managed. Similarly,

adjusted results are used in setting management remuneration. Adjusted results are stated before exceptional

items, other gains and losses, impairment of goodwill and intangible assets, amortisation of intangible assets

arising on business combinations, pension finance charges and fair value adjustments. For reconciliations of

statutory profit before tax to adjusted profit before tax and supporting explanations, see pages 16 to 19. Adjusted

results include results from discontinued operations, specifically the Euromoney subsidiary during the first three

months of Half Year 2017.

3 Euromoney ceased to be a subsidiary at the end of December 2016. Pro Forma Half Year 2017 figures have been

restated to treat Euromoney as a c.49% owned associate for the whole period, consistent with the ownership

profile during Half Year 2018. See page 15.

4 The statutory results are IFRS figures before any adjustments. They are for continuing operations only

(excluding the discontinued operations, Euromoney, from the first three months of Half Year 2017), other than

basic earnings per share since the statutory figure includes discontinued operations.

~ Percentages are calculated on actual numbers to one decimal place.

∞ Since late December 2017, dmg media has stopped making multiple copy sales of the Daily Mail and The Mail on

Sunday; for example, to airlines to give to their customers free of charge. Multiple copy sales previously

accounted for approximately 5% of both the Daily Mail’s and The Mail on Sunday’s circulation volumes. Despite

this impact, the Daily Mail’s 23.4% average market share during the six months to March 2018 was in line with a

23.4% average during the six months to March 2017 and The Mail on Sunday’s 22.0% average market share during

the six months to March 2018 was in line with a 22.0% average during the six months to March 2017. Circulation

market share figures are calculated using ABC’s March 2018 and March 2017 National Newspapers Reports and

exclude digital subscribers.

∂ As at the end of 31 March 2018, there were 4,812,419 ‘A’ Ordinary Shares held in Treasury and 3,023,124 ‘A’

Ordinary Shares held by the DMGT Employee Benefit Trust.

The average £: US$ exchange rate for the first half of the year was £1:$1.36 (against £1:$1.24 last year). The rate at

the Half Year end was $1.40 (2017: $1.26), compared to $1.34 at the September 2017 year end.

All references to profit or margin in this interim management report are to adjusted profit or margin, except

where reference is made to statutory profit.

For further information

For analyst and institutional enquiries:

Tim Collier, Group CFO +44 20 3615 2902

Adam Webster, Head of Management Information and

Investor Relations

+ 44 20 3615 2903

For media enquiries

Doug Campbell / Paul Durman, Teneo Blue Rubicon

+44 20 7260 2700

Half Year Results presentation

A presentation of the Half Year Results will be given to investors and analysts at 9.30am on 24

May 2018, at the offices of Numis Securities Limited, The London Stock Exchange Building,

10 Paternoster Square, London, EC4M 7LT. There will also be a live webcast available on our

website at www.dmgt.com/webcasthy18.

Next trading update

The Group’s next scheduled announcement of financial information will be the third quarter

trading update on 26 July 2018.

This Interim Management Report (‘IMR’) is prepared for and addressed only to the Company’s shareholders as a

whole and to no other person. The Company, its Directors, employees, agents and advisers accept and assume no

liability to any person in respect of this IMR save as would arise under English law. Statements contained in this

IMR are based on the knowledge and information available to the Group’s Directors at the date it was prepared

and therefore facts stated and views expressed may change after that date.

This document and any materials distributed in connection with it may include forward-looking statements,

beliefs, opinions or statements concerning risks and uncertainties, including statements with respect to the

Group’s business, financial condition and results of operations. Those statements and statements which contain

the words “anticipate”, “believe”, “intend”, “estimate”, “expect” and words of similar meaning, reflect the Group's

Directors’ beliefs and expectations and involve risk and uncertainty because they relate to events and depend on

circumstances that will occur in the future and which may cause results and developments to differ materially

from those expressed or implied by those statements and forecasts. No representation is made that any of those

statements or forecasts will come to pass or that any forecast results will be achieved. You are cautioned not to

place any reliance on such statements or forecasts. Those forward-looking and other statements speak only as at

the date of this IMR. The Group undertakes no obligation to release any update of, or revisions to, any forward-

looking statements, opinions (which are subject to change without notice) or any other information or statement

contained in this IMR. Furthermore, past performance of the Group cannot be relied on as a guide to future

performance.

No statement in this document is intended as a profit forecast or a profit estimate and no statement in this

document should be interpreted to mean that earnings per DMGT share for the current or future financial years

would necessarily match or exceed the historical published earnings per DMGT share.

Nothing in this document is intended to constitute an invitation or inducement to engage in investment activity.

This document does not constitute or form part of any offer for sale or subscription of, or any solicitation of any

offer to purchase or subscribe for, any securities nor shall it or any part of it nor the fact of its distribution form

the basis of, or be relied on in connection with, any contract, commitment or investment decision in relation

thereto. This document does not constitute a recommendation regarding any securities.

http://www.dmgt.com/webcasthy18

Independent review report to Daily Mail and General Trust plc

Report on the Condensed Consolidated Financial Statements

Our conclusion

We have reviewed Daily Mail and General Trust plc’s Condensed Consolidated Financial

Statements (the “interim financial statements”) in the Half Yearly Financial Report of Daily

Mail and General Trust plc for the six month period ended 31 March 2018. Based on our

review, nothing has come to our attention that causes us to believe that the interim financial

statements are not prepared, in all material respects, in accordance with International

Accounting Standard 34, ‘Interim Financial Reporting’, as adopted by the European Union

and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's

Financial Conduct Authority.

What we have reviewed

The interim financial statements comprise:

· the Condensed Consolidated Statement of Financial Position as at 31 March 2018;

· the Condensed Consolidated Income Statement and Condensed Consolidated Statement of

Comprehensive Income for the period then ended;

· the Condensed Consolidated Cash Flow Statement for the period then ended;

· the Condensed Consolidated Statement of Changes in Equity for the period then ended;

and

· the explanatory notes to the interim financial statements.

The interim financial statements included in the Half Yearly Financial Report have been

prepared in accordance with International Accounting Standard 34, ‘Interim Financial

Reporting’, as adopted by the European Union and the Disclosure Guidance and

Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

As disclosed in note 1 to the interim financial statements, the financial reporting framework

that has been applied in the preparation of the full annual financial statements of the Group

is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the

European Union.

Responsibilities for the interim financial statements and the review

Our responsibilities and those of the directors

The Half Yearly Financial Report, including the interim financial statements, is the

responsibility of, and has been approved by, the directors. The directors are responsible for

preparing the Half Yearly Financial Report in accordance with the Disclosure Guidance and

Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

Our responsibility is to express a conclusion on the interim financial statements in the Half

Yearly Financial Report based on our review. This report, including the conclusion, has been

prepared for and only for the company for the purpose of complying with the Disclosure

Guidance and Transparency Rules sourcebook of the United Kingdom’s Financial Conduct

Authority and for no other purpose. We do not, in giving this conclusion, accept or assume

responsibility for any other purpose or to any other person to whom this report is shown or

into whose hands it may come save where expressly agreed by our prior consent in writing.

What a review of interim financial statements involves

We conducted our review in accordance with International Standard on Review Engagements

(UK and Ireland) 2410, ‘Review of Interim Financial Information Performed by the

Independent Auditor of the Entity’ issued by the Auditing Practices Board for use in the

United Kingdom. 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.

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 interim financial statements.

PricewaterhouseCoopers LLP

Chartered Accountants

London

23 May 2018

a) The maintenance and integrity of the Daily Mail and General Trust plc website is the

responsibility of the directors; the work carried out by the auditors does not involve

consideration of these matters and, accordingly, the auditors accept no responsibility

for any changes that may have occurred to the interim financial statements since they

were initially presented on the website.

b) Legislation in the United Kingdom governing the preparation and dissemination of

financial statements may differ from legislation in other jurisdictions.

Shareholder Information

Financial Calendar (provisional)

2018

24 May Half yearly financial report released

7 June Interim ex-dividend date

8 June Interim record date

21 June Payment of interest on bonds

29 June Payment of interim dividend

26 July Third quarter trading update

30 September Year end

29 November Announcement of Full Year 2018 results

6 December Ex-dividend date

7 December Record date

7 December Payment of interest on bonds

Contacts

Daily Mail and General Trust plc

Northcliffe House

2 Derry Street

London

W8 5TT

Email: [email protected]

Auditor

PricewaterhouseCoopers LLP

1 Embankment Place

London

WC2N 6RH

Stockbrokers

Credit Suisse International

One Cabot Square

London

E14 4QJ

Registrars

Equiniti

Aspect House

Spencer Road

Lancing

West Sussex

BN99 6DA

J.P. Morgan Cazenove

25 Bank Street

Canary Wharf

London

E14 5JP

For further investor information and contacts, please visit the Company's website at

www.dmgt.com.

DMGT plcCondensed Consolidated Income StatementFor the 6 months ended 31 March 2018

Unaudited 6 months ended

31 March 2018


31 March 2017

Audited year ended 30 September 2017

Note £m £m £m

CONTINUING OPERATIONS

Revenue 2 745.8 794.3 1,564.3

Adjusted operating profit 2, (i) 83.8 81.1 179.0

Exceptional operating income/(expense), impairment of internally generated and acquired computer software, property, plant and equipment

2 0.8 (54.4) (166.2)

Amortisation and impairment of acquired intangible assets arising on business combinations and impairment of goodwill

2 (7.8) (12.5) (158.2)

Operating profit/(loss) before share of results of joint ventures and associates 2 76.8 14.2 (145.4)

Share of results of joint ventures and associates 3 55.8 2.9 16.9

Total operating profit/(loss) 132.6 17.1 (128.5)

Other gains and losses 4 (2.8) 16.7 14.0

Profit/(loss) before investment revenue, net finance costs and tax 129.8 33.8 (114.5)

Investment revenue 5 1.9 1.6 2.5

Finance expense (20.9) (23.7) (43.8)

Finance income 2.6 29.2 43.5

Net finance (expense)/income 6 (18.3) 5.5 (0.3)

Profit/(loss) before tax 113.4 40.9 (112.3)

Tax 7 3.9 (9.9) (64.7)

Profit/(loss) after tax from continuing operations 117.3 31.0 (177.0)

DISCONTINUED OPERATIONS 20

Profit from discontinued operations – 519.3 519.3

Profit for the period 117.3 550.3 342.3

Attributable to:

Owners of the Company 114.1 549.5 345.3

Non-controlling interests * 3.2 0.8 (3.0)

Profit for the period 117.3 550.3 342.3

Earnings/(loss) per share 10

From continuing operations

Basic 32.2p 8.6p (49.3)p

Diluted 31.8p 8.4p (48.5)p

From discontinued operations

Basic - p 147.2p 147.1p

Diluted - p 144.9p 144.8p

From continuing and discontinued operations

Basic 32.2p 155.8p 97.8p

Diluted 31.8p 153.3p 96.3p

Adjusted earnings per share

Basic 24.4p 24.6p 55.6p

Diluted 24.1p 24.2p 54.7p

* Continuing operations 3.2 (2.5) (6.4)

Discontinued operations – 3.3 3.4

3.2 0.8 (3.0)

(i) Adjusted operating profit is defined as total operating profit from continuing operations before share of results of joint ventures and associates, exceptional operating costs, impairment of goodwill and intangible assets, amortisation of acquired intangible assets arising on business combinations and impairment of property, plant and equipment.

DMGT plcCondensed Consolidated Statement of Comprehensive IncomeFor the 6 months ended 31 March 2018


31 March 2018


31 March 2017


£m £m £mProfit for the period 117.3 550.3 342.3

Items that will not be reclassified to Consolidated Income Statement

Actuarial gain on defined benefit pension schemes 4.4 191.5 299.1

Losses on hedges of net investments in foreign operations of non-controlling interests – (5.5) (5.5)

Foreign exchange differences on translation of foreign operations of non-controlling interests (0.2) 11.2 11.4

Tax relating to items that will not be reclassified to Consolidated Income Statement (0.7) (31.0) (49.3)

Total items that will not be reclassified to Consolidated Income Statement 3.5 166.2 255.7

Items that may be reclassified subsequently to Consolidated Income Statement

Gains/(losses) on hedges of net investments in foreign operations 12.0 (16.2) 4.5

Cash flow hedges:

Profits/(losses) arising during the period 4.3 3.8 (0.6)

Transfer of (gain)/loss on cash flow hedges from translation reserve to Consolidated Income Statement

– (3.3) 1.1

Share of joint ventures' and associates' items of other comprehensive income (7.1) 0.2 (9.7)

Translation reserves recycled to Consolidated Income Statement on disposals (4.1) 54.1 49.4

Foreign exchange differences on translation of foreign operations (11.9) 27.3 8.7

Total items that may be reclassified subsequently to Consolidated Income Statement (6.8) 65.9 53.4

Other comprehensive (expense)/income for the period (3.3) 232.1 309.1

Total comprehensive income for the period 114.0 782.4 651.4

Attributable to:


Non-controlling interests 3.0 9.5 5.7

114.0 782.4 651.4

Continuing operations 114.0 182.7 51.7

Discontinued operations – 599.7 599.7

114.0 782.4 651.4

Total comprehensive income/(expense) for the year from continuing operations attributable to:


Non-controlling interests 3.0 (2.5) (2.5)

114.0 182.7 51.7

DMGT plcCondensed Consolidated Statement of Changes in EquityFor the 6 months ended 31 March 2018

Called-up share

capital

Share premium account

Capital redemption

reserve

Own shares

Translation reserve

Retained earnings

Total Non-controlling

interests

Total equity

£m £m £m £m £m £m £m £m £mAt 30 September 2016 45.3 17.8 5.0 (88.7) 11.9 359.8 351.1 178.2 529.3Profit for the period – – – – – 549.5 549.5 0.8 550.3

Other comprehensive income for the period – – – – 65.6 157.8 223.4 8.7 232.1

Total comprehensive income for the period – – – – 65.6 707.3 772.9 9.5 782.4Issue of share capital – – – – – – – 0.5 0.5

Dividends – – – – – (53.9) (53.9) – (53.9)

Own shares acquired in the period – – – (28.3) – – (28.3) – (28.3)

Disposal of Euromoney treasury shares held by Euromoney – – – 14.1 – – 14.1 – 14.1

Own shares transferred on exercise of share options – – – 37.5 – – 37.5 – 37.5

Changes in non-controlling interests following disposal of Euromoney – – – – – – – (171.1) (171.1)

Other transactions with non-controlling interests – – – – – – – (0.3) (0.3)

Adjustment to equity following increased stake in controlled entity – – – – – 0.5 0.5 (2.6) (2.1)

Adjustment to equity following decreased stake in controlled entity – – – – – (0.3) (0.3) 0.3 –

Credit to equity for share-based payments – – – – – 0.9 0.9 0.1 1.0

Settlement of exercised share options of subsidiaries – – – – – (33.0) (33.0) – (33.0)

Deferred tax on other items recognised in equity – – – – – (1.1) (1.1) – (1.1)

At 31 March 2017 45.3 17.8 5.0 (65.4) 77.5 980.2 1,060.4 14.6 1,075.0

At 30 September 2016 45.3 17.8 5.0 (88.7) 11.9 359.8 351.1 178.2 529.3Profit/(loss) for the year – – – – – 345.3 345.3 (3.0) 342.3

Other comprehensive income for the year – – – – 63.0 237.4 300.4 8.7 309.1

Total comprehensive income for the year – – – – 63.0 582.7 645.7 5.7 651.4

Issue of share capital – – – – – – – 0.5 0.5

Dividends – – – – – (78.3) (78.3) – (78.3)

Own shares acquired in the year – – – (28.6) – – (28.6) – (28.6)

Disposal of Euromoney treasury shares held by Euromoney – – – 14.1 – – 14.1 – 14.1


Changes in non-controlling interests following disposal of Euromoney – – – – – – – (171.1) (171.1)

Other transactions with non-controlling interests – – – – – – – (0.1) (0.1)

Adjustment to equity following increased stake in controlled entity – – – – – 0.4 0.4 (2.6) (2.2)

Adjustment to equity following decreased stake in controlled entity – – – – – (0.3) (0.3) 0.3 –

Credit to equity for share-based payments – – – – – 4.0 4.0 0.1 4.1


Deferred tax on other items recognised in equity – – – – – (0.4) (0.4) – (0.4)

At 30 September 2017 45.3 17.8 5.0 (64.3) 74.9 829.5 908.2 11.0 919.2

Profit for the period – – – – – 114.1 114.1 3.2 117.3

Other comprehensive (loss)/income for the period – – – – 0.3 (3.4) (3.1) (0.2) (3.3)

Total comprehensive income for the period – – – – 0.3 110.7 111.0 3.0 114.0

Dividends – – – – – (55.9) (55.9) – (55.9)

Own shares acquired in the year – – – (4.6) – – (4.6) – (4.6)


Changes in non-controlling interests following disposal of businesses – – – – – – – 0.6 0.6

Credit to equity for share-based payments – – – – – 4.9 4.9 – 4.9


At 31 March 2018 45.3 17.8 5.0 (57.9) 75.2 877.1 962.5 14.6 977.1

DMGT plcCondensed Consolidated Statement of Financial PositionAt 31 March 2018

Unaudited at 31 March 2018


Audited at 30 September 2017

Note £m £m £mASSETS

Non-current assets

Goodwill 11 356.8 572.2 363.1

Other intangible assets 11 196.1 343.8 213.0

Property, plant and equipment 12 99.4 131.5 103.3

Investments in joint ventures 1.5 4.1 0.2

Investments in associates 771.0 734.8 735.2

Available-for-sale investments 17 33.5 8.2 30.6

Trade and other receivables 22.5 11.3 20.5

Other financial assets 17 18.1 13.7 15.5

Derivative financial assets 17 5.0 20.7 4.6

Retirement benefit assets 23 88.8 54.3 73.4

Deferred tax assets 71.2 130.7 75.9

1,663.9 2,025.3 1,635.3

Current assets

Inventories 23.0 25.6 26.6

Trade and other receivables 248.9 292.6 236.8

Current tax receivable 7.4 15.8 9.6

Other financial assets 17 7.2 21.3 14.5

Derivative financial assets 17 0.9 3.8 3.0

Cash and cash equivalents 15.6 13.3 14.6

Total assets of businesses held-for-sale 21 120.5 – 107.8

423.5 372.4 412.9

Total assets 2,087.4 2,397.7 2,048.2

LIABILITIES

Current liabilities

Trade and other payables (433.9) (498.9) (502.7)

Current tax payable (1.9) (3.7) (1.7)

Acquisition put option commitments 17 (0.6) (0.5) (0.6)

Borrowings 15 (226.0) (8.8) (9.4)

Derivative financial liabilities 17 (4.5) – (0.4)

Provisions (41.4) (52.2) (43.6)

Total liabilities of businesses held-for-sale 21 (37.7) – (29.0)

(746.0) (564.1) (587.4)

Non-current liabilities

Trade and other payables (2.2) (2.9) (2.9)

Acquisition put option commitments 17 (7.1) (9.7) (7.4)

Borrowings 15 (317.3) (561.7) (470.3)

Derivative financial liabilities 17 (6.0) (44.6) (18.8)

Retirement benefit obligations 23 (9.4) (97.3) (11.0)

Provisions (15.0) (32.9) (19.1)

Deferred tax liabilities (7.3) (9.5) (12.1)

(364.3) (758.6) (541.6)

Total liabilities (1,110.3) (1,322.7) (1,129.0)

Net assets 977.1 1,075.0 919.2

DMGT plcCondensed Consolidated Statement of Financial Position continuedAt 31 March 2018




Note £m £m £mSHAREHOLDERS' EQUITY

Called-up share capital 45.3 45.3 45.3

Share premium account 17.8 17.8 17.8

Share capital 22 63.1 63.1 63.1

Capital redemption reserve 5.0 5.0 5.0

Revaluation reserve – – –

Own shares (57.9) (65.4) (64.3)

Translation reserve 75.2 77.5 74.9

Retained earnings 877.1 980.2 829.5

Equity attributable to owners of the Company 962.5 1,060.4 908.2

Non-controlling interests 14.6 14.6 11.0

977.1 1,075.0 919.2

Approved by the Board of Directors on 23 May 2018.

DMGT plcCondensed Consolidated Cash Flow StatementFor the 6 months ended 31 March 2018


31 March 2018


31 March 2017


Note £m £m £mCash generated by operations 13 26.4 61.3 232.7

Taxation paid (12.3) (13.3) (18.1)

Taxation received 10.8 0.7 4.9

Net cash generated by operating activities 24.9 48.7 219.5

Investing activities

Interest received 0.3 0.1 2.4

Dividends received from joint ventures and associates 17.1 28.5 35.9

Dividends received from available-for-sale investments 0.1 0.1 0.1

Purchase of property, plant and equipment 12 (15.7) (14.3) (21.1)

Expenditure on internally generated intangible fixed assets 11 (10.4) (26.3) (57.7)

Expenditure on other intangible assets 11 (0.2) (0.2) (0.2)

Purchase of available-for-sale investments (3.4) (0.1) (19.4)

Proceeds on disposal of property, plant and equipment and investment property

12 – 0.1 0.7

Proceeds on disposal of available-for-sale investments 1.0 – –

Purchase of subsidiaries 18 (7.2) (23.9) (26.7)

Settlements and collateral receipts/(payments) on treasury derivatives 16.1 (13.6) 2.8

Investment in joint ventures and associates (1.5) (0.5) (2.3)

Loans advanced to joint ventures and associates (7.3) – (2.7)

Loans to joint ventures and associates repaid – 8.6 8.6

(Costs)/proceeds on disposal of businesses 19 (5.2) 217.8 215.8

Proceeds on disposal of joint ventures and associates 5.4 0.7 2.4

Net cash (used in)/generated by investing activities (10.9) 177.0 138.6

Financing activities

Purchase of additional interests in controlled entities 18 – (2.1) (2.1)

Equity dividends paid 8 (55.9) (53.9) (78.3)

Issue of shares by Group companies to non-controlling interests – 0.5 0.5

Purchase of own shares 22 (4.6) (28.3) (28.6)

Net (payment)/receipt on settlement of subsidiary share options (1.5) 4.4 0.5

Interest paid (17.2) (16.8) (34.7)

Loan notes repaid – (0.5) (0.6)

Repayments of obligations under finance lease agreements – (0.2) (0.7)

Inception of finance leases – 0.3 0.5

Increase/(decrease) in bank borrowings 15 66.6 (140.1) (224.9)

Net cash used in financing activities (12.6) (236.7) (368.4)

Net increase/(decrease) in cash and cash equivalents 1.4 (11.0) (10.3)

Cash and cash equivalents at beginning of period 7.4 17.5 17.5

Exchange (loss)/gain on cash and cash equivalents (0.3) 0.5 0.2

Net cash and cash equivalents at end of period 14 8.5 7.0 7.4

DMGT plc

For the 6 months ended 31 March 2018NOTES

1 Basis of preparation

Impact of new accounting standards

Although not required by IAS 34, comparative figures for the Condensed Consolidated Income Statement for the year ended 30 September 2017 and the Condensed Consolidated Statement of Financial Position at 31 March 2017 have been included on a voluntary basis.

These Group Condensed Financial Statements have been prepared in accordance with the accounting policies set out in the 2017 Annual Report and Accounts, as amended, where appropriate by the application of certain new or amended accounting standards in the period, described below, with the exception of changes in estimates that are required in determining the interim provision for income taxes. These policies are expected to be followed in the preparation of the full financial statements for the financial year ending 30 September 2018.

A number of new and amended IFRS's have been adopted in the period, none had any significant impact on the Group's financial statements.

Other than IFRS 15 Revenue from Contracts with Customers and IFRS 16 Leases, the adoption of standards, amendments and interpretations which have been issued but are not yet effective is not expected to have a material impact on the Group's financial statements.

IFRS 15, effective for the 2019 fiscal year introduces additional guidance surrounding performance obligations within sales contracts and the timing of revenue recognition. In 2016 the Group commenced a project to evaluate the impact of IFRS 15 but due to the complexity of this new accounting standard and the number of different revenue streams in the Group, the impact is still being evaluated.

IFRS 16, effective for the 2020 fiscal year will require lessees to recognise assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value eliminating the distinction between operating and finance leases. The new standard will also replace the operating lease expense with a depreciation charge for the leased assets and an interest expense on the corresponding lease liability. Lessors will continue to classify leases as operating orfinance, with IFRS 16’s approach to lessor accounting substantially unchanged from its predecessor, IAS 17.

The Group is in the process of assessing the impact of this standard.

The Annual Report and Accounts of DMGT plc are prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board as adopted by the European Union. These condensed financial statements have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting as adopted by the European Union.

The information for the 6 months ended 31 March 2018 and 31 March 2017 and for the year ended 30 September 2017 does not constitute statutory accounts for the purposes of section 435 of the Companies Act 2006. A copy of the accounts for the year ended 30 September 2017 has been delivered to the Registrar of Companies. The auditor's report on those accounts was not qualified and did not contain statements under section 498 (2) or (3) of the Companies Act 2006.

The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the interim management report. The financial position of the Group, its cash flows, liquidity position and borrowing facilities are described in the condensed financial statements and notes. After making enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for at least one year from the date of the half yearly financial report date. Accordingly, they continue to adopt the going concern basis in preparing the half yearly report.

Other than the Daily Mail, The Mail on Sunday and Metro businesses, the Group prepares accounts for a 6 month period ending on 31 March. The Daily Mail, The Mail on Sunday and Metro businesses prepare financial statements for a 26 or 27 week financial period ending on a Sunday near to the end of March and do not prepare additional financial statements corresponding to the Group's financial period for consolidation purposes as it would be impracticable to do so. The Group considers whether there have been any significant transactions or events between the end of the financial period of these businesses and the end of the Group's financial period and makes any material adjustments as appropriate.

The Group’s business activities are split into six operating divisions : Insurance Risk (previously named RMS), Property Information, EdTech and Energy Information (all previously known as dmg information), Events and Exhibitions (previously named dmg events) and Consumer Media (previously named dmg media). These divisions are the basis on which information is reported to the Group's Chief Operating Decision Maker, which has been determined to be the Group Board. The segment result is the measure used for the purposes of resource allocation and assessment and represents profit earned by each segment, including share of results from joint ventures and associates but before exceptional operating costs, amortisation of acquired intangible assets arising on business combinations, impairment charges, other gains and losses, net finance costs and taxation.

The Group presents the results from discontinued operations separately from those of continuing operations. An operation is classed as discontinued if it has been, or is in the process of being disposed and represents either a separate major line of business or a geographical area of operations, or is part of a single coordinatedplan to dispose of a separate major line of business or exit a major geographical area of operations.

DMGT plcFor the 6 months ended 31 March 2018NOTES

1 Basis of preparation continuedCritical accounting judgements and key sources of estimation uncertainty

Adjusted measures

Investment in Euromoney

Forecasting

Impairment of goodwill and intangible assets

Acquisitions and intangible assets

Contingent consideration and put options payable

In addition to the judgement taken by management in selecting and applying the accounting policies set out above, the Directors have made the following judgements concerning the amounts recognised in the consolidated financial statements.

The Group's accounting policy on the acquisition of subsidiaries is to allocate purchase consideration to the fair value of identifiable assets, liabilities and contingentliabilities acquired with any excess consideration representing goodwill. Determining the fair value of assets, liabilities and contingent liabilities acquired requires significant estimates and assumptions, including assumptions with respect to cash flows and unprovided liabilities and commitments, including in respect to tax, to be used. The Group recognises intangible assets acquired as part of a business combination at fair value at the date of the acquisition. The determination of these fair values is based upon estimates and includes assumptions on the timing and amount of future cash flows generated by the assets and the selection of an appropriate discount rate. Additionally, management must estimate the expected useful economic lives of intangible assets and charge amortisation on these assets accordingly.

The Group prepares medium-term forecasts based on Board-approved budgets and up to four-year outlooks. These are used to support estimates made in the preparation of the Group's financial statements including the recognition of deferred tax assets, going concern assessment and for the purposes of impairment reviews. Longer-term forecasts use long-term growth rates applicable to the relevant businesses.

The Board and management team believe these adjusted results, used in conjunction with statutory IFRS results, give a greater insight into the financial performance of the Group and the way it is managed. Similarly, adjusted results are used in setting management remuneration.

Such items would include, but are not limited to, closure costs, costs associated with business combinations, gains and losses on the disposal of businesses, finance costs relating to premia on bond buy backs, fair value movements, exceptional operating costs, impairment of goodwill and amortisation and impairment of intangible assets arising on business combinations.

Following loss of control the Group has also considered factors which may indicate de facto control. The Group has determined that it does not have de facto control over Euromoney since it cannot block any ordinary resolutions, which comprise the majority of corporate actions, has no control over the remuneration of Euromoney's directors and has no control over Euromoney's day-to-day operations nor budgets. In addition, the Group has no material trading activities or relationships which are critical for Euromoney to carry out its business. The Group's relationship with Euromoney is monitored on an ongoing basis to ensure no change in this assessment.

The following represent critical judgements, involving estimations, that have the most significant effect on the amounts recognised in the financial statements :

A description of each adjustment is set out in the Financial Review together with a reconciliation of operating profit to adjusted operating profit.

See note 9 for a reconciliation of profit before tax to adjusted profit.

The Group presents adjusted operating profit and adjusted profit before tax by making adjustments for costs and profits which management believe to be significantby virtue of their size, nature or incidence or which have a distortive effect on current year earnings.

Determining whether goodwill and intangible or other assets are impaired or whether a reversal of an impairment should be recorded requires a comparison of the balance sheet carrying value with the recoverable amount of the asset or cash-generating unit (CGU). The recoverable amount is the higher of the value in use andfair value less costs to sell. The value in use calculation requires management to estimate the future cash flows expected to arise from the asset or CGU and calculate the net present value of these cash flows using a suitable discount rate. A key area of judgement is deciding the long-term growth rate and the operating cash flows of the applicable businesses and the discount rate applied to those cash flows. The carrying amount of goodwill and intangible assets at 31 March 2018 was £552.9 million (31 March 2017 £916.0 million, 30 September 2017 £576.1 million) after an impairment loss on continuing operations of £nil (6 months to 31 March 2017 £nil, 12 months to 30 September 2017 £213.4 million) was recognised during the period (note 2).

Estimates are required in respect of the amount of contingent consideration and put options payable on acquisitions, which is determined according to formulae agreed at the time of the business combination, and normally related to the future earnings of the acquired business. The Directors review the amount of contingentconsideration and put options likely to become payable at each period end date, the major assumption being the level of future profits of the acquired business. At 31 March 2018 the Group had outstanding contingent consideration payable amounting to £14.3 million (31 March 2017 £33.1 million, 30 September 2017 £17.0 million), and put option commitments amounting to £7.7 million (31 March 2017 £10.2 million, 30 September 2017 £8.0 million).


1 Basis of preparation continuedTaxation

Retirement benefit obligationsThe cost of defined benefit pension plans is determined using actuarial valuations prepared by the Group's actuaries. This involves making certain assumptions concerning discount rates, future salary increases, mortality rates and future pension increases. Due to the long-term nature of these plans, such estimates are subject to significant uncertainty. The assumptions and the resulting estimates are reviewed annually and, when appropriate, changes are made which affect the actuarial valuations and, hence, the amount of retirement benefit expense recognised in the Condensed Consolidated Income Statement and the amounts of actuarial gains and losses recognised in the Condensed Consolidated Statement of Changes in Equity. The carrying amount of the net retirement benefit obligation at 31 March 2018 was a surplus of £79.4 million (31 March 2017 a deficit of £43.0 million, 30 September 2017 a surplus of £62.4 million). Further details are given in note 23.

The Group accounts for unresolved issues based on its best estimate of the final outcome, however the inherent uncertainty regarding these items means that the eventual resolution could differ significantly from the accounting estimates and, therefore, impact the Group's results and future cash flows. In situations where uncertainties exist, provision is made for contingent tax liabilities and assets when it is more likely than not that there will be a cash impact. These provisions are made for each uncertainty individually on the basis of management judgement following consideration of the available relevant information. The measurement basis adopted represents the best predictor of the resolution of the uncertainty which is usually based on the most likely cash outflow. The Group reviews the adequacy of these provisions at the end of each reporting period and adjusts them based on changing facts and circumstances.

Being a multinational Group with tax affairs in many geographic locations inherently leads to a highly complex tax structure which makes the degree of estimation and judgement more challenging. The resolution of issues is not always within the control of the Group and actual tax liabilities or refunds may differ from those anticipated due to changes in tax legislation, differing interpretations of tax legislation and uncertainties surrounding the application of tax legislation. Such issues can take several years to resolve.


2 Segment analysis

Unaudited 6 months ended 31 March 2018 Total and external revenue

Segment operating

profit/(loss)

Less operating profit/(loss) of joint

ventures and associates

Adjusted operating profit/(loss)

Note £m £m £m £m

Insurance Risk 112.6 18.9 (0.7) 19.6 Property Information 151.3 27.9 0.1 27.8 EdTech 32.5 3.2 – 3.2Energy Information 43.1 (0.5) (0.3) (0.2)Events and Exhibitions 71.7 20.2 – 20.2 Consumer Media 334.6 52.4 14.8 37.6

745.8 122.1 13.9 108.2 Corporate costs – 2.3 26.7 (24.4)

745.8 83.8

0.8

Amortisation of acquired intangible assets arising on business combinations (7.8)Operating profit before share of results of joint ventures and associates 76.8Share of results of joint ventures and associates 3 55.8Total operating profit 132.6 Other gains and losses 4 (2.8)Profit before investment revenue, net finance costs and tax 129.8 Investment revenue 5 1.9 Finance expense 6 (20.9)Finance Income 6 2.6 Profit before tax 113.4 Tax 7 3.9Profit for the period 117.3

Unaudited 6 months ended 31 March 2018 Amortisation of intangible assets

not arising on business

combinations

Amortisation of intangible assets

arising on business combinations

Exceptional operating

income/(costs)

£m £m £m

Insurance Risk (7.5) – –Property Information (1.8) (4.3) (1.5)EdTech (2.4) (1.4) (0.1)Energy Information (1.6) (1.7) 3.8Events and Exhibitions – (0.3) –Consumer Media (2.3) (0.1) (1.4)Total and continuing operations (15.6) (7.8) 0.8

Unaudited 6 months ended 31 March 2018 Severance costs Other Legal fees Total

(i)£m £m £m £m

Property Information 0.1 – (1.6) (1.5)EdTech 0.2 (0.3) – (0.1)Energy Information – – 3.8 3.8Consumer Media (0.1) (1.3) – (1.4)Total and continuing operations 0.2 (1.6) 2.2 0.8

(i)

The Group's exceptional operating costs are analysed as follows :

Exceptional charges in the Property Information segment relate to fees paid to the Group's lawyers in defence of various claims brought against businesses in this segment. The exceptional credit in the Energy Information segment relates to a release of provisions no longer required.

The Group's tax charge includes a related credit of £0.7 million in relation to these exceptional operating costs.

The Group’s business activities are split into six operating divisions: Insurance Risk (previously named RMS), Property Information, EdTech, Energy Information (all previously known as dmg information), Events and Exhibitions (previously named dmg events) and Consumer Media (previously named dmg media). These divisions are the basis on which information is reported to the Group's Chief Operating Decision Maker, which has been determined to be the Group Board. The segment result is the measure used for the purposes of resource allocation and assessment and represents profit earned by each segment, including share of results from joint ventures and associates but before exceptional operating costs, amortisation of acquired intangible assets arising on business combinations, impairment charges, other gains and losses, net finance costs and taxation.

The accounting policies applied in preparing the management information for each of the reportable segments are the same as the Group's accounting policies described in note 1.

An analysis of the amortisation and impairment of goodwill and intangible assets, exceptional operating costs and impairment of property, plant and equipment and investment property by segment is as follows:

Adjusted operating profit

The results from the Group’s Events and Exhibitions segment are impacted by the seasonality of exhibitions and conferences held in each accounting period. The impact of this seasonality and details of the types of products and services from which each segment derives its revenues are included within the business review.

Exceptional operating income, impairment of internally generated and acquired computer software, property, plant and equipment


2 Segment analysis continued

Unaudited 6 months ended 31 March 2018 Depreciation of property, plant and

equipment

Research costs Investment revenue

Finance income Finance expense

£m £m £m £m £m

Insurance Risk (2.2) (27.8) 0.2 – –Property information (1.4) (0.1) – – –EdTech (0.3) – 0.7 – –Energy Information (1.8) (0.6) 0.1 – (0.8)Events and Exhibitions (0.3) – – – –Consumer Media (7.3) – – – (0.5)

(13.3) (28.5) 1.0 – (1.3)Corporate costs (0.1) – 0.9 2.6 (19.6)Total and continuing operations (13.4) (28.5) 1.9 2.6 (20.9)

Unaudited 6 months ended 31 March 2017 Total and external revenue

Segment operating profit/(loss)





Insurance Risk 116.7 14.9 (0.6) 15.5 Property Information 161.0 21.6 – 21.6 EdTech 54.4 2.5 (0.2) 2.7 Energy Information 43.7 (0.4) (0.4) –Events and Exhibitions 68.5 21.2 – 21.2 Euromoney 95.2 35.8 16.5 19.3 Consumer Media 350.0 46.5 10.6 35.9

889.5 142.1 25.9 116.2Corporate costs – (16.2) (0.4) (15.8)Discontinued operations 20, (i) (95.2) (35.8) (16.5) (19.3)

794.381.1

Exceptional operating income, impairment of internally generated and acquired computer software, property, plant and equipment (54.4)Amortisation of acquired intangible assets arising on business combinations (12.5)Operating profit before share of results of joint ventures and associates 14.2Share of results of joint ventures and associates 3 2.9Total operating profit 17.1Other gains and losses 4 16.7Profit before investment revenue, net finance costs and tax 33.8Investment revenue 5 1.6 Finance expense 6 (23.7)Finance income 6 29.2 Profit before tax 40.9Tax 7 (9.9)Profit from discontinued operations 20 519.3 Profit for the period 550.3

(i)

Unaudited 6 months ended 31 March 2017 Amortisation of intangible assets


combinations


arising on businesscombinations

Exceptional operating costs

Impairment of property,plant and equipment (i)


Insurance Risk (9.5) – (2.9) –Property Information (3.1) (6.4) (5.5) –EdTech (4.6) (2.4) (5.0) –Energy Information (3.0) (3.3) (0.5) –Events and Exhibitions – (0.3) – –Euromoney (0.9) (5.4) (0.9) –Consumer Media (2.4) (0.1) (5.2) (35.3)Total and continuing operations (23.5) (17.9) (20.0) (35.3)Relating to discontinued operations 20 0.9 5.4 0.9 –Continuing operations (22.6) (12.5) (19.1) (35.3)

(i) Following continued declines in the UK printing market the Group decided to close its Didcot print site, resulting in an impairment charge of £35.3 million.

An analysis of the depreciation of property, plant and equipment and investment property, research costs, investment revenue, finance income and finance expense by segment is as follows:


Revenue and adjusted operating profit relating to the discontinued operations of Euromoney have been deducted in order to reconcile total segment result to Group profit before tax from continuing operations.




Unaudited 6 months ended 31 March 2017 Severance costs Consultancy charges Other Legal fees Contingent consideration required

to be shown as remuneration

Total

(i)£m £m £m £m £m £m

Insurance Risk 0.3 (3.2) – – – (2.9)Property Information (3.2) – (2.3) – (5.5)EdTech (3.6) (1.4) – – – (5.0)Energy Information (0.5) – – – – (0.5)Euromoney – (0.1) – (0.8) – (0.9)Consumer Media (2.4) – (2.9) – 0.1 (5.2)Total and continuing operations (9.4) (4.7) (2.9) (3.1) 0.1 (20.0)Relating to discontinued operations – 0.1 – 0.8 – 0.9Continuing operations (9.4) (4.6) (2.9) (2.3) 0.1 (19.1)

(i)

Unaudited 6 months ended 31 March 2017 Depreciation of property, plant and

equipment


Finance Income Finance expense

Note £m £m £m £m £m

Insurance Risk (2.9) (20.5) 0.2 – –Property Information (2.3) (0.1) 0.5 9.8 (0.1)EdTech (1.0) (0.4) – 0.4 –Energy Information (2.0) (2.9) – 14.4 –Events and Exhibitions (0.3) – – – –Euromoney (0.8) (2.5) – – (0.7)Consumer Media (8.8) – 0.8 – (1.8)

(18.1) (26.4) 1.5 24.6 (2.6)Corporate costs (0.1) – 0.1 4.6 (21.8)Total and continuing operations (18.2) (26.4) 1.6 29.2 (24.4)Relating to discontinued operations 20 0.8 2.5 – 0.7 Continuing operations (17.4) (23.9) 1.6 29.2 (23.7)

Audited year ended 30 September 2017 Total and external revenue

Segment operating profit/(loss)




Note £m £m £m £mInsurance Risk 233.2 32.0 (0.8) 32.8 Property Information 328.0 52.0 0.1 51.9 EdTech 114.9 16.1 (0.2) 16.3 Energy Information 87.8 1.1 (0.7) 1.8 Events and Exhibitions 117.0 30.6 – 30.6 Euromoney 95.2 67.3 48.0 19.3 Consumer Media 683.4 99.2 22.0 77.2

1,659.5 298.3 68.4 229.9 Corporate costs (30.7) 0.9 (31.6)Discontinued operations 20, (i) (95.2) (67.3) (48.0) (19.3)

1,564.3 179.0

(166.2)

Impairment of goodwill and acquired intangible assets arising on business combinations (131.7)Amortisation of acquired intangible assets arising on business combinations (26.5)Operating loss before share of results of joint ventures and associates (145.4)Share of results of joint ventures and associates 3 16.9Total operating loss (128.5)Other gains and losses 4 14.0Loss before investment revenue, net finance costs and tax (114.5)Investment revenue 5 2.5 Finance expense 6 (43.8)Finance income 6 43.5Loss before tax (112.3)Tax 7 (64.7)Profit from discontinued operations 20 519.3Profit for the period 342.3

(i) Revenue and adjusted operating profit relating to the discontinued operations of Euromoney have been deducted in order to reconcile total segment result to Group profit before tax from continuing operations.

Exceptional operating income, impairment of internally generated and acquired computer software, property, plant and equipment

An analysis of the depreciation of property, plant and equipment and investment property, research costs, investment revenue, and net finance costs by segment is as follows:



Exceptional legal fees in Property Information relate to fees paid to the Group's lawyers in relation to a claim by CoStar Inc against Xceligent Inc (Xceligent) asserting, inter alia, misuse by Xceligent of CoStar’s intellectual property. Xceligent filed a motion to dismiss on the basis that CoStar’s actions were contrary to the FTC consent order which was put in place when Xceligent was spun out of CoStar’s acquisition of LoopNet. The damages claimed have not been quantified. The Group has made no provision for any claim.




Audited year ended 30 September 2017 Amortisation of intangible assets


combinations


arising on business combinations

Impairment of goodwill and

intangible assets arising on business

combinations

Impairment of internally

generated and acquired computer

software

Exceptional operating costs

Impairment of property, plant and equipment (i)

Note £m £m £m £m £m £m

Insurance Risk (17.8) – – – (2.8) –Property Information (5.7) (13.6) (31.6) (33.7) (11.8) –EdTech (8.5) (4.3) (2.2) (5.3) (7.9) –Energy Information (6.4) (8.2) (97.9) (42.4) (6.8) –Events and Exhibitions (0.1) (0.2) – – (2.6) –Euromoney (0.9) (5.4) – – (0.9) –Consumer Media (4.8) (0.2) – (0.3) (8.8) (42.0)

(44.2) (31.9) (131.7) (81.7) (41.6) (42.0)Corporate costs – – – – (1.8) –Total and continuing operations (44.2) (31.9) (131.7) (81.7) (43.4) (42.0)Relating to discontinued operations 20 0.9 5.4 – – 0.9 –Continuing operations (43.3) (26.5) (131.7) (81.7) (42.5) (42.0)

(i)

Audited year ended 30 September 2017 Severance costs Consultancy charges

Other restructuring costs

Legal fees Total

(i)Note £m £m £m £m £m

Insurance Risk 0.5 (3.3) – – (2.8)Property information (4.8) – – (7.0) (11.8)EdTech (5.5) (1.9) (0.5) – (7.9)Energy information (0.9) – – (5.9) (6.8)Events and Exhibitions – – (2.6) – (2.6)Euromoney – (0.1) – (0.8) (0.9)Consumer Media (4.0) – (4.8) – (8.8)

(14.7) (5.3) (7.9) (13.7) (41.6)Corporate costs (1.8) – – – (1.8)Total and continuing operations (16.5) (5.3) (7.9) (13.7) (43.4)Relating to discontinued operations 20 – 0.1 – 0.8 0.9 Continuing operations (16.5) (5.2) (7.9) (12.9) (42.5)

(i)

Audited year ended 30 September 2017 Depreciation of property, plant and

equipment


Finance Income Finance expense

£m £m £m £m

Insurance Risk (5.9) (40.3) 0.3 – (0.1)Property Information (4.5) (0.1) 0.5 11.5 (0.1)EdTech (1.8) (0.6) – 1.4 –Energy Information (4.0) (1.1) – 25.9 (0.2)Events and Exhibitions (0.5) – – – –Euromoney (0.8) (2.5) – – (0.7)Consumer Media (16.8) (1.4) 1.5 – (3.5)

(34.3) (46.0) 2.3 38.8 (4.6)Corporate costs (0.2) – 0.2 4.7 (39.9)Total and continuing operations (34.5) (46.0) 2.5 43.5 (44.5)Relating to discontinued operations 0.8 2.5 – – 0.7 Continuing operations (33.7) (43.5) 2.5 43.5 (43.8)

Following continued declines in the UK printing market the Group decided to close its Didcot print site, resulting in an impairment charge of £41.3 million.



An analysis of the depreciation of property, plant and equipment and investment property, research costs, investment revenue, and net finance costs by segment is as follows:


Includes dispute settlements and fees paid to the Group's lawyers.

The charge relates principally to a claim by CoStar Inc. (CoStar) against Xceligent, Inc. (Xceligent) asserting, inter alia, misuse by Xceligent of CoStar’s intellectual property. Xceligent filed a motion to dismiss on the basis that CoStar’s actions are contrary to a Federal Trade Commission (FTC) consent order which was put in place when Xceligent was spun out of CoStar’s acquisition of LoopNet. The damages claimed have not been quantified and the Group has made no provision for any claim.


2 Segment analysis continuedThe Group's revenue comprises sales excluding value added tax, less discounts and commission where applicable and is analysed as follows:

Unaudited 6 months ended 31 March 2018

Unaudited 6 months ended 31

March 2017



Total and continuing operations

Total Discontinued operations

Continuing operations

(Note 20)

£m £m £m £mPrint advertising 100.2 110.4 (7.1) 103.3Digital advertising 68.3 74.2 (2.0) 72.2Circulation 146.8 155.4 – 155.4Subscriptions 205.6 289.9 (63.5) 226.4Events, conferences and training 70.7 93.7 (24.7) 69.0Transactions and other 154.2 165.9 2.1 168.0

745.8 889.5 (95.2) 794.3

Audited year ended 30 September 2017 Total Discontinued operations


(Note 20)£m £m £m

Print advertising 203.6 7.1 196.5Digital advertising 142.7 2.0 140.7Circulation 307.8 – 307.8Subscriptions 517.4 63.5 453.9Events, conferences and training 140.9 24.7 116.2Transactions and other 347.1 (2.1) 349.2

1,659.5 95.2 1,564.3

By geographic area

Unaudited 6 months ended 31 March 2018 Total and continuing operations

£mUK 403.4 North America 247.1 Rest of Europe 20.3 Australia 4.7 Rest of the World 70.3

745.8

Unaudited 6 months ended 31 March 2017 Total Discontinued operations


(Note 20)

£m £m £mUK 447.4 30.9 416.5North America 329.2 50.6 278.6Rest of Europe 23.6 4.4 19.2Australia 11.4 0.4 11.0Rest of the World 77.9 8.9 69.0

889.5 95.2 794.3



(Note 20)£m £m £m

UK 873.8 30.9 842.9North America 615.5 50.6 564.9Rest of Europe 43.0 4.4 38.6Australia 22.6 0.4 22.2Rest of the World 104.6 8.9 95.7

1,659.5 95.2 1,564.3

The majority of the Group's operations are located in the United Kingdom, North America, rest of Europe and Australia.

The analysis below is based on the location of companies in these regions. Export sales and related profits are included in the areas from which those sales are made.

Investment revenue is shown in note 5 and finance income in note 6.

Transactions and other within discontinued operations include a £3.8 million foreign exchange loss on forward contracts in the Euromoney segment.

Transactions and other within discontinued operations include a £3.8 million foreign exchange loss on forward contracts in the Euromoney segment.



Unaudited 6 months ended 31 March 2018 Total and continuing operations

£mUK 394.3 North America 216.3 Rest of Europe 74.1 Australia 3.1 Rest of the World 58.0

745.8

Unaudited 6 months ended 31 March 2017 Total Discontinued operations


(Note 20)


889.5 95.2 794.3



(Note 20)


1,659.5 95.2 1,564.3

3 Share of results of joint ventures and associatesUnaudited 6

months ended 31 March 2018


31 March 2017


Note £m £m £mShare of adjusted operating (losses)/profits from operations of joint ventures (1.9) 0.1 (0.1)Share of adjusted operating profits from operations of associates (i) 42.5 25.4 68.6Share of adjusted operating profits from joint ventures and associates 40.6 25.5 68.5Share of associates' other gains and losses 43.3 1.2 –

83.9 26.7 68.5

Share of exceptional operating costs of associates (2.3) (2.6) (6.7)Share of amortisation of intangibles arising on business combinations of joint ventures – (0.1) (0.1)Share of amortisation of intangibles arising on business combinations of associates (10.7) (6.3) (17.1)Share of associates' interest payable (3.3) (1.5) (4.5)Share of associates' tax (9.8) (0.6) (5.2)Share of impairment of goodwill and intangibles arising on business combinations of associates (1.5) (13.7) (13.7)Share of associates' change in present value of acquisition put options 0.3 1.3 –Impairment of carrying value of joint ventures (ii) – (0.3) (3.3)Impairment of carrying value of associates (iii) (0.8) – (1.0)

55.8 2.9 16.9Share of associates' items of other comprehensive income (7.1) 0.2 (9.7)Share of results of joint ventures and associates 48.7 3.1 7.2

Share of results from operations of joint ventures (1.9) – (0.2)Share of results from operations of associates 58.5 3.2 21.4Impairment of carrying value of joint ventures – (0.3) (3.3)Impairment of carrying value of associates (0.8) – (1.0)

55.8 2.9 16.9Share of associates' items of other comprehensive income (7.1) 0.2 (9.7)Share of results of joint ventures and associates 48.7 3.1 7.2

(i)

(ii)

(iii)

The analysis below is based on the geographic location of customers in these regions.

Share of profits before exceptional operating costs, amortisation, impairment of goodwill, interest and tax

Share of adjusted operating profits from associates includes £27.4 million (period ended 31 March 2017 £15.8 million, year ended 30 September 2017 £47.2 million) from the Group's interest in Euromoney and £17.0 million from the Group's interest in ZPG Plc (ZPG) in the Consumer Media segment (period ended 31 March 2017 £11.6 million, year ended 30 September 2017 £24.7 million).

In the prior period, £0.3 million represents a write down in the carrying value of Artirix in the Consumer Media segment together with, for the year ended 30 September 2017, a £3.0 million write-down in the carrying value of Knowlura in the EdTech segment.

Represents a £0.5 million write down in the carrying value of Eatfirst in the Corporate costs segment and a £0.3 million write down in the carrying value of RLTO in the Property Information segment. In the prior period, represents a £0.5 million write down in the carrying value of Carspring in the Consumer Media segment and a £0.5 million write down in the carrying value of iProf Learning Solutions in the EdTech segment.


4 Other gains and lossesUnaudited 6



31 March 2017


Note £m £m £m

Profit on disposal of available-for-sale investments 0.9 – –

Impairment of available-for-sale assets (0.3) (0.5) (0.5)

Impairment of held-for-sale-assets – – (4.1)

Loss on sale and closure of businesses (i) (8.8) (1.2) (6.5)

Recycled cumulative translation differences (ii) 4.1 – 4.7

Gain on dilution of stake in associate (iii) 0.8 18.0 18.0

Profit on disposal of joint ventures and associates (iv) 0.5 0.4 2.4 (2.8) 16.7 14.0

(i)

(ii)

(iii)

(iv)

5 Investment revenueUnaudited 6



31 March 2017


£m £m £mDividend income 0.1 0.1 0.1

Interest receivable from short-term deposits 0.3 0.7 1.0

Interest receivable on loan notes 1.5 0.8 1.4 1.9 1.6 2.5

6 Net finance costsUnaudited 6



31 March 2017


Note £m £m £mInterest, arrangement and commitment fees payable on bonds, bank loans and loan notes (19.2) (19.7) (37.2)

Loss on derivatives, or portions thereof, not designated for hedge accounting (1.0) (1.4) (1.7)

Finance charge on defined benefit pension schemes – (2.5) (4.9)

Change in fair value of derivative hedge of bond (1.1) (1.0) (4.7)

Change in fair value of hedged portion of bond 1.1 1.0 4.7

Finance charge on discounting of contingent consideration payable 17, (i) (0.1) (0.1) –

Fair value movement of contingent consideration payable 17, (i) (0.6) – –Finance costs (20.9) (23.7) (43.8)

Profit on derivatives, or portions thereof, not designated for hedge accounting 0.3 0.4 –

Finance income on defined benefit pension schemes 1.0 – –

Fair value movement of contingent consideration receivable 17, (i) – 15.9 28.6

Fair value movement of undesignated financial instruments 1.3 7.2 7.5

Change in present value of acquisition put options – 5.7 7.4

Finance income 2.6 29.2 43.5

Net finance costs (18.3) 5.5 (0.3)

(i)

Represents cumulative translation differences required to be recycled through the Consolidated Income Statement on disposals.

During the period, the Group disposed of its holding in Artirix in the Consumer Media segment and Skymet in the Energy Information segment.

During the prior period, this principally relates to the disposal of the Group's holding in Fortunegreen and Spaceway Storage Services in the Consumer Media segment and Clipper Data in the Energy Information segment.

Represents a dilution of the Group's stakes in Praedicat and Skymet. In accordance with IAS 28, Investments in Associates and Joint Ventures, this dilution has been treated as a deemed disposal. The carrying value of these investments has increased resulting in a gain on dilution of £0.8 million.

In the current period this principally relates to a £4.1 million loss on the sale of Hobsons Solutions, together with an additional £4.0 million costs on the sale of Admissions in the EdTech segment and an accounting loss of £0.7 million on the closure of Xceligent. In the prior periods this principally relates to a £6.2 million profit on disposal of Elite Daily in the Consumer Media segment offset by a loss of £6.5 million representing an adjustment to the net assets sold with Wowcher in the Consumer Media segment and a loss of £4.4 million on sale of various businesses in the EdTech segment.

The fair value movement of contingent consideration arises from the requirement of IFRS 3, Business Combinations to measure such consideration at fair value with changes in fair value taken to the Income Statement.

The finance income/(charge) on the discounting of contingent consideration arises from the unwinding of the discount following the requirement under IFRS 3, Business Combinations, to record contingent consideration at fair value using a discounted cash flow approach.


7 TaxUnaudited 6 months

ended 31 March 2018


31 March 2017


Note £m £m £mThe credit/(charge) on the profit for the period consists of: UK taxCorporation tax at 19.0% (2017 19.5%) – (0.4) –Adjustments in respect of prior years – – 0.3

– (0.4) 0.3Overseas taxCorporation tax (2.6) (1.2) (12.0)Adjustments in respect of prior years (0.5) 0.2 –

(3.1) (1.0) (12.0)Total current tax (3.1) (1.4) (11.7)Deferred taxOrigination and reversals of temporary differences 7.0 (12.5) (62.4)Adjustments in respect of prior years – – 5.4Total deferred tax 7.0 (12.5) (57.0)

Total tax credit/(charge) 3.9 (13.9) (68.7)Tax credit relating to discontinued operations 20 – 4.0 4.0

3.9 (9.9) (64.7)


31 March 2018


31 March 2017


£m £m £mTotal tax credit/(charge) on the profit for the period 3.9 (13.9) (68.7)Share of tax in joint ventures and associates (9.8) (0.3) (4.9)Deferred tax on intangible assets (2.4) (7.5) (29.6)Reassessment of temporary differences – 12.7 108.9Tax on other adjusting items (11.2) (6.4) (34.7)Share of tax on associates other adjusting items 3.2 – –Adjusted tax charge on the profit for the year (16.3) (15.4) (29.0)

At 31 March 2018, Euromoney an associate, held provisions for uncertain tax of £5.3 million (31 March 2017 £17.0 million, 30 September 2017 £10.2 million) relating to permanent establishment risk and challenges by tax authorities. The maximum potential additional exposure to Euromoney in relation to challenges by tax authorities not provided for is approximately £29.0 million if all cases were to be settled at the maximum potential liability.

The current and deferred tax implications of the prospective withdrawal of the United Kingdom (UK) from the European Union (known as "Brexit") on the Group have been considered by management, these are not expected to have any material impact.

Adjusted tax on profits before amortisation and impairment of intangible assets, restructuring costs and non-recurring items (adjusted tax charge) amounted to a charge of £16.3 million (2017 £15.4 million) and the resulting effective rate is 15.8% (2017 14.6%). The differences between the tax charge and the adjusted tax charge are shown in the reconciliation below:

In calculating the adjusted tax rate, the Group excludes the potential future impact of the deferred tax effects of intangible assets (other than internally generated and acquired computer software), as the Group prefers to give users of its accounts a view of the tax charge based on the current status of such items. Deferred tax would only crystallise on a sale of the relevant businesses, which is not anticipated at the current time, and such a sale, being an exceptional item, would result in an exceptional tax impact.

Reassessment of temporary differences includes a net charge of £nil (2017 £11.4 million) relating to the derecognition of overseas tax losses and a net charge of £nil (2017 £1.3 million) relating to the derecognition of UK tax losses which are treated as exceptional due to their distortive impact on the Group's adjusted tax charge.

Tax on other adjusting items includes a tax credit of £16.0 million (2017 £nil) in respect of the US tax rate change and a tax charge of £4.0 million (2017 £nil) in respect of other one-off impacts of US tax reform.

The EU Commission has opened a State Aid investigation into the Group Financing Exemption included within the UK's controlled foreign company (CFC) rules. DMGT finances its US operations through a Luxembourg resident finance company which has received clearance from HM Revenue & Customs that it benefits from this exemption. If the State Aid investigation leads to a reversal of the benefits that DMGT has accrued through the exemption, the tax cost to the Group would be approximately £6.0 million. The Directors do not assess this outcome as more than likely and accordingly have made no provision in these financial statements.


8 Dividends paidUnaudited 6



31 March 2018


31 March 2017


31 March 2017



Pence per share £m Pence per share £m Pence per share £mAmounts recognisable as distributions to equity holders in the period

Ordinary Shares - final dividend for the year ended 30 September 2017 15.8 3.1 – –

A Ordinary Non-Voting Shares - final dividend for the year ended 30 September 2017

15.8 52.8 – –

Ordinary Shares - final dividend for the year ended 30 September 2016 – – 15.3 3.0 15.3 3.0

– – 15.3 50.9 15.3 50.9

55.9 53.9 53.9

– – – – 6.9 1.4

– – – – 6.9 23.0

– – 24.4 55.9 53.9 78.3

9 Adjusted profitUnaudited 6



31 March 2017


Note £m £m £mProfit/(loss) before tax - continuing operations 113.4 40.9 (112.3)Profit before tax - discontinued operations 20 – 14.0 14.0Profit on disposal of discontinued operations including recycled cumulative translation differences 20 – 509.3 509.3 Adjust for: Amortisation of intangible assets in Group profit, including joint ventures and associates, arising on business combinations 18.5 25.5 50.3Impairment of goodwill and intangible assets arising on business combinations – – 131.7Impairment of goodwill and intangible assets arising on business combinations of joint ventures and associates 1.5 13.7 13.7

(0.8) 55.3 167.1

Share of exceptional operating costs of joint ventures and associates 2.3 2.6 6.7Share of joint ventures' and associates' other gains and losses (43.3) (1.2) –Impairment of carrying value of joint ventures and associates 0.8 0.3 4.3Other gains and losses:

Profit on disposal of available-for-sale investments (0.9) – –Impairment of available-for-sale assets 0.3 0.5 0.5 Impairment of held-for-sale-assets – – 4.1

3.4 (19.6) (21.0)

20 – (509.3) (509.3)

Finance costs: Finance (income)/charge on defined benefit pension schemes (1.0) 2.5 4.9

(i) (1.0) (29.4) (42.8)

Tax: Share of tax in joint ventures and associates 9.8 0.3 4.9

103.0 105.4 226.1Total tax credit/(charge) on the profit for the year 3.9 (13.9) (68.7)Adjust for:

Share of tax in joint ventures and associates (9.8) (0.3) (4.9)Deferred tax on intangible assets (2.4) (7.5) (29.6)Reassessment of temporary differences – 12.7 108.9Tax on other adjusting items (11.2) (6.4) (34.7)Share of tax on associates other adjusting items 3.2 – –

Non-controlling interests (ii) (0.4) (3.2) (0.8)86.3 86.8 196.3

(i)

(ii)

Adjusted profit before tax and non-controlling interests

Adjusted profit after taxation and non-controlling interests

Fair value movements include movements on undesignated financial instruments, contingent consideration payable and receivable and change in value of acquisition put options.

The adjusted non-controlling interests' share of profits for the period of £0.4 million (2017 £3.2 million) is stated after eliminating a charge of £2.8 million (2017 credit of £2.4 million), being the non-controlling interests' share of adjusting items.

Exceptional operating costs, impairment of internally generated and acquired computer software and property, plant and equipment

Loss/(profit) on disposal of businesses, joint ventures, associates, change of control and recycled cumulative translation differencesProfit on disposal of discontinued operations including recycled cumulative translation differences

A Ordinary Non-Voting Shares - final dividend for the year ended 30 September 2016

The Board has declared an interim dividend of 7.1 p per Ordinary / A Ordinary Non-Voting share (2017 6.9 p) which will absorb an estimated £25.2 million (2017 £24.4 million) of shareholders' equity for which no liability has been recognised in these financial statements. It will be paid on 29 June 2018 to shareholders on the register at the close of business on 8 June 2018.

Ordinary Shares - interim dividend for the year ended 30 September 2017

A Ordinary Non-Voting Shares - interim dividend for the year ended 30 September 2017

Fair value movements including share of joint ventures and associates


10 Earnings per share



31 March 2017




31 March 2017


Diluted earnings Diluted earnings Diluted earnings Basic earnings Basic earnings Basic earnings

£m £m £m £m £m £mEarnings/(losses) from continuing operations 114.1 30.2 (174.0) 114.1 30.2 (174.0)Effect of dilutive Ordinary Shares (0.1) (0.1) (0.1) – – –Earnings from discontinued operations – 519.3 519.3 – 519.3 519.3

114.0 549.4 345.2 114.1 549.5 345.3

Adjusted earnings from continuing and discontinued operations

86.3 86.8 196.3 86.3 86.8 196.3

Effect of dilutive Ordinary Shares (0.1) (0.1) (0.1) – – –86.2 86.7 196.2 86.3 86.8 196.3



31 March 2017




31 March 2017


Diluted Diluted Diluted Basic Basic Basicpence pence pence pence pence pence

per share per share per share per share per share per shareEarnings/(losses) from continuing operations 31.8 8.4 (48.5) 32.2 8.6 (49.3)Earnings per share from discontinued operations – 144.9 144.8 – 147.2 147.1

Earnings per share from continuing and discontinued operations

31.8 153.3 96.3 32.2 155.8 97.8

Adjusted earnings per share from continuing and discontinued operations

24.1 24.2 54.7 24.4 24.6 55.6

The weighted average number of Ordinary Shares in issue during the year for the purpose of these calculations is as follows: Unaudited at 31

March 2018Unaudited at 31

March 2017Audited at 30

September 2017

Number m Number m Number mNumber of Ordinary Shares in issue 362.1 362.1 362.1 Own shares held (8.2) (9.4) (9.0)Basic earnings per share denominator 353.9 352.7 353.1 Effect of dilutive share options 4.8 5.8 5.5 Dilutive earnings per share denominator 358.7 358.5 358.6

Basic earnings per share of 32.2 p (2017 155.8 p) and diluted earnings per share of 31.8 p (2017 153.3 p) are calculated, in accordance with IAS 33, Earnings per share, on Group profit for the financial period of £114.1 million (2017 £30.2 million) as adjusted for the effect of dilutive ordinary shares of £0.1 million (2017 £0.1 million) and earnings from discontinued operations of £nil (2017 £519.3 million) and on the weighted average number of ordinary shares in issue during the period, as set out below.

As in previous periods, adjusted earnings per share have also been disclosed since the Directors consider that this alternative measure gives a more comparable indication of the Group's underlying trading performance. Adjusted earnings per share of 24.4 p (2017 24.6 p) are calculated on profit for continuing and discontinued operations before exceptional operating costs, impairment of goodwill and intangible assets, amortisation of intangible assets arising on business combinations, other gains and losses and exceptional financing costs after taxation and non-controlling interests associated with those profits, of £86.3 million (2017 £86.8 million), as set out in note 9 above, and on the basic weighted average number of ordinary shares in issue during the period.


11 Goodwill and other intangible assetsGoodwill Other Intangibles

Note £m £m

CostAt 30 September 2016 1,073.9 1,138.5Additions from business combinations – 0.2 Other additions – 0.2 Internally generated – 26.3Disposals (498.5) (391.4)Classified as held-for-sale (20.5) (6.1)Reclassifications – (45.0)Exchange adjustment 26.4 27.1

At 31 March 2017 581.3 749.8At 30 September 2016 1,073.9 1,138.5Additions from business combinations – 0.7Other additions 0.4 0.2Internally generated – 57.7Disposals (504.2) (504.4)Classified as held-for-sale (72.7) (18.4)Adjustment in respect of prior year acquisition – (47.1)Exchange adjustment 8.8 1.8At 30 September 2017 506.2 629.0Additions from business combinations 18 2.7 2.2Other additions – 0.2Internally generated – 10.4Adjustment to previous year estimate of contingent consideration 17 0.2 –Disposals 19 (10.2) (36.5)Classified as held-for-sale 21 (17.5) (8.7)Exchange adjustment (9.7) (17.0)

At 31 March 2018 471.7 579.6

Goodwill Other IntangiblesNote £m £m

Accumulated amortisation and impairmentAt 30 September 2016 92.3 639.3Amortisation – 41.4Disposals (63.5) (243.5)Classified as held-for-sale (20.5) (6.1)Reclassifications – (39.3)Exchange adjustment 0.8 14.2

At 31 March 2017 9.1 406.0At 30 September 2016 92.3 639.3Amortisation – 76.1Impairment 117.0 96.4Disposals (63.6) (343.6)Classified as held-for-sale (1.8) (9.8)Reclassifications – (41.1)Exchange adjustment (0.8) (1.3)At 30 September 2017 143.1 416.0Amortisation – 23.4Disposals 19 (9.9) (36.4)Classified as held-for-sale 21 (17.5) (8.7)Exchange adjustment (0.8) (10.8)

At 31 March 2018 114.9 383.5Net book value – 30 September 2016 981.6 499.2Net book value – 31 March 2017 572.2 343.8Net book value – 30 September 2017 363.1 213.0Net book value – 31 March 2018 356.8 196.1

12 Property, plant and equipment and Investment property

During the period to 31 March 2018 the Group determined that no indicators of impairment had arisen and accordingly the total impairment charge recognised in the period was £nil (2017 £nil).

In the prior year, the Group had an impairment charge of £213.4 million, largely made up of Genscape in the Energy Information segment and SiteCompli and Xceligent in the Property Information segment.

During the period the Group spent £15.7 million (2017 £14.3 million) on property, plant and equipment and disposed certain of its property, plant and equipment with a carrying value of £nil (2017 £nil) for proceeds of £nil (2017 £0.1 million).

The Group tests goodwill annually for impairment, or more frequently if there are indicators that goodwill might be impaired. Intangible assets, all of which have finite lives, are tested separately from goodwill only where impairment indicators exist.


13 EBITDA and cash generated by operationsUnaudited 6



31 March 2017


Note £m £m £mContinuing operations

2 83.8 81.1 179.02 13.4 17.4 33.72 15.6 22.6 43.33 40.6 25.5 68.5

5.7 1.4 4.0

5 0.1 0.1 0.1

20 – 19.3 19.320 – 0.8 0.820 – 0.9 0.920 – 0.8 0.8

159.2 169.9 350.4

4.9 1.0 4.1 3, 20 (40.6) (26.3) (69.3)

2 0.8 (20.0) (43.4)1.3 – –

5 (0.1) (0.1) (0.1)

(5.7) (1.4) (4.0)

2.9 5.9 3.6(39.2) (10.0) 8.0(41.1) (45.3) 0.4

(3.1) 0.7 (3.9)(12.9) (13.1) (13.1)26.4 61.3 232.7

14 Analysis of net debt




£m £m £mNet debt at start of period (465.1) (679.0) (679.0)Cash flow (65.2) 129.8 215.9Sold on disposals 0.9 – –Fair value hedging arrangements 1.1 1.0 4.7Foreign exchange movements 2.1 (7.2) (3.3)Other non-cash movements (1.5) (1.8) (3.4)Net debt at period end before derivatives and collateral (527.7) (557.2) (465.1)

Analysed as: Cash and cash equivalents 15.6 13.3 14.6Bank overdrafts (7.1) (6.3) (7.2)Cash and cash equivalents in the Condensed Consolidated Cash Flow Statement 8.5 7.0 7.4Debt due within one year: Bonds (217.1) – –Loan notes (1.8) (2.0) (1.8)Finance lease obligations – (0.5) (0.4)Debt due in more than one year: Bonds (206.8) (425.8) (423.5)Bank loans (110.5) (135.2) (46.3)Finance lease obligations – (0.7) (0.5)Net debt at period end before derivatives and collateral (527.7) (557.2) (465.1)Effect of derivatives on bank loans (13.2) (15.2) (13.7)Collateral deposits 7.2 21.3 14.5Net debt including derivatives and collateral - closing rate (533.7) (551.1) (464.3)

Net debt including derivatives and collateral - average rate (542.2) (557.2) (482.2)

The net cash outflow of £65.2 million (2017 inflow of £129.8 million) includes a cash outflow of £7.6 million (2017 £26.6 million) in respect of operating exceptional items.

The analysis of net debt below is calculated using period end exchange rates. The Group's bank facilities require net debt to be measured using average rates for the period, resulting in net debt for bank covenant purposes of £542.2 million (31 March 2017 £557.2 million, 30 September 2017 £482.2 million).

(Increase)/decrease in trade and other receivables(Decrease)/increase in trade and other payables(Decrease)/increase in provisionsAdditional payments into pension schemes

Cash generated by operations

Decrease in inventories

Non-exceptional depreciation chargeAmortisation of internally generated and acquired computer softwareShare of profits from operations of joint ventures and associates

EBITDA

Adjustments for: Share-based payments Share of profits from joint ventures and associates Exceptional operating income/(costs) Non-cash pension past service cost Dividend income

Share of charge of depreciation and amortisation of internally generated and acquired computer software of joint ventures and associates


Adjusted operating profitNon-exceptional depreciation chargeAmortisation of internally generated and acquired computer softwareOperating profits from joint ventures and associatesShare of charge of depreciation and amortisation of internally generated and acquired computer software of joint ventures and associates

Dividend income

Discontinued operations


15 BorrowingsUnaudited at 31

March 2018Unaudited at 31 March

2017Audited at 30

September 2017

£m £m £mCurrent liabilitiesBank overdrafts 7.1 6.3 7.2 Bonds 217.1 – –Loan notes 1.8 2.0 1.8Finance lease obligations – 0.5 0.4

226.0 8.8 9.4

Non-current liabilitiesBonds 206.8 425.8 423.5Bank loans 110.5 135.2 46.3 Finance lease obligations – 0.7 0.5

317.3 561.7 470.3

16 Bank borrowings




£m £m £mExpiring in more than one year but not more than two years – 637.9 611.4 Expiring in more than four years but not more than five years 415.0 – –Total bank facilities 415.0 637.9 611.4




£m £m £mExpiring in more than one year but not more than two years – 502.6 565.1 Expiring in more than four years but not more than five years 304.5 – –Total undrawn committed bank facilities 304.5 502.6 565.1

17 Financial assets and liabilities

Unaudited at 31 March 2018 Level 1 Level 2 (i) Level 3 (ii) Total£m £m £m £m

Financial assetsAvailable-for-sale financial assets – – 33.5 33.5 Fair value through profit and loss Derivative instruments not designated in hedge accounting relationships – 2.8 – 2.8 Provision for contingent consideration receivable – – 0.1 0.1 Derivative instruments in designated hedge accounting relationships – 3.1 – 3.1

– 5.9 33.6 39.5 Financial liabilitiesFair value through profit and loss Provision for contingent consideration payable – – (14.3) (14.3)Derivative instruments in designated hedge accounting relationships – (10.5) – (10.5)

– (10.5) (14.3) (24.8)

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into levels 1 to 3 based on the degree to which the fair value is observable:

Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The following undrawn committed borrowing facilities were available to the Group in respect of which all conditions precedent had been met:

The Group's committed bank facilities analysed by maturity are as follows:

The Group's internal target of Net Debt to EBITDA cover is no greater than 2.0 times whilst the limit imposed by its bank covenants is no greater than 3.50 times. The bank covenant ratio uses the average exchange rate in the calculation of net debt. On a bank covenant basis, using average exchange rates to calculate net debt and EBITDA, the Group's net debt to EBITDA ratio as at 31 March 2018 was 1.60 times (31 March 2017 1.56 times, 30 September 2017 1.38 times).

The limit imposed by the Group's bank covenants is at least 3.0 times EBITDA to net interest. The actual ratio for the year ended 31 March 2018 was 10.0 times (31 March 2017 8.90 times, 30 September 2017 10.07 times).

The Group's bank loans bear interest charged at LIBOR plus a margin. The margin varies by bank and is based on the Group's ratio of net debt to EBITDA or the Group's credit rating. Additionally each facility contains a covenant based on a minimum interest cover ratio. EBITDA for these purposes is defined as the aggregate of the Group's consolidated operating profit including share of results of joint ventures and associates before deducting depreciation, amortisation and impairment of intangible assets, impairment of goodwill, before exceptional items and before interest and finance charges and is calculated in note 13. These covenants were met at the relevant test dates during the period.

During the period, the Group renewed its committed bank facilities for a further five-year term. The Group's total committed bank facilities amount to £415.0 million. Of these facilities £205.0 million are denominated in Sterling and £210.0 million (US$294.0 million) are denominated in US dollars. Drawings are permitted in all major currencies. The terms of the new facilities are substantially the same as those of the previous facilities.


17 Financial assets and liabilities continuedUnaudited at 31 March 2017 Level 1 Level 2 Level 3 Total

£m £m £m £mFinancial assetsAvailable-for-sale financial assets – – 8.2 8.2 Fair value through profit and loss Derivative instruments not designated in hedge accounting relationships – 0.8 – 0.8 Provision for contingent consideration receivable – – 0.8 0.8 Derivative instruments in designated hedge accounting relationships – 23.7 – 23.7

– 24.5 9.0 33.5 Financial liabilitiesFair value through profit and loss Derivative instruments not designated in hedge accounting relationships – (19.4) – (19.4) Provision for contingent consideration payable – – (33.1) (33.1)Derivative instruments in designated hedge accounting relationships – (25.2) – (25.2)

– (44.6) (33.1) (77.7)

Audited at 30 September 2017 Level 1 Level 2 Level 3 Total£m £m £m £m

Financial assetsAvailable-for-sale financial assets – – 30.6 30.6 Fair value through profit and loss Derivative instruments not designated in hedge accounting relationships – 0.5 – 0.5 Provision for contingent consideration receivable – – 0.3 0.3 Derivative instruments in designated hedge accounting relationships – 7.1 – 7.1

– 7.6 30.9 38.5 Financial liabilitiesFair value through profit and loss Provision for contingent consideration payable – – (17.0) (17.0)Derivative instruments in designated hedge accounting relationships – (19.2) – (19.2)

– (19.2) (17.0) (36.2)

Reconciliation of level 3 fair value measurement of financial liabilities: Note £m

Audited at 30 September 2016 (52.6)Cash paid to settle contingent consideration in respect of acquisitions 5.5Change in fair value of contingent consideration payable 15.9Finance charge on discounting of contingent consideration (0.1)Exchange adjustment (1.8)Unaudited at 31 March 2017 (33.1)Audited at 30 September 2016 (52.6)Cash paid to settle contingent consideration in respect of acquisitions 8.2 Change in fair value of contingent consideration payable 28.6Additions to contingent consideration (0.6)Exchange adjustment (0.6)Audited at 30 September 2017 (17.0)Cash paid to settle contingent consideration in respect of acquisitions 18 3.0Change in fair value of contingent consideration payable 6 (0.6)Finance charge on discounting of contingent consideration 6 (0.1)Adjustment to goodwill 11 (0.2)Exchange adjustment 0.6Unaudited at 31 March 2018 (14.3)

There were no transfers between categories in the period.

The rates used to discount contingent consideration range from 0.0% to 1.0% (2017 0.0% to 0.3%). A one percentage point increase or decrease in the discount rate used to discount the expected gross value of payments, results in the contingent consideration liability at 31 March 2018 decreasing by £0.5 million and £0.1 million respectively (2017 £1.3 million and £0.3 million), with the corresponding change in value at 31 March 2018 credited or charged to the Income Statement in future periods.

A one percentage point increase or decrease in the growth rate used in estimating the expected profits, results in the contingent consideration liability at 31 March 2018 decreasing by £0.1 million and 0.4 million respectively (2017 £0.5 million and £0.5 million) with the corresponding change in value at 31 March 2018 charged or credited to the Income Statement in future periods.

The key inputs into the significant level 3 financial liabilities are the future profitability of the businesses to which the contingent consideration relates and the discount rate. The range of possible outcomes for the fair value of these options is £nil to £214.1 million (2017 £1.2 million to £308.4 million).


17 Financial assets and liabilities continued




Carrying value

Carrying value

Carrying value

Note £m £m £m

Trade receivables 158.1 192.5 149.4

Other receivables (i) 34.6 20.8 34.1

Other financial assets (ii) 25.3 35.0 30.0

Cash and cash equivalents 15.6 13.3 14.6Loans and receivables 233.6 261.6 228.1

Trade payables (25.5) (52.6) (66.3)

Bank overdrafts (7.1) (6.3) (7.2)

Bonds (iii) (423.9) (425.8) (423.5)

Bank loans (110.5) (135.2) (46.3)

Loan notes (1.8) (2.0) (1.8)

Amounts payable under finance leases – (1.2) (0.9)Liabilities at amortised cost (568.8) (623.1) (546.0)

Acquisition put option commitments (7.7) (10.2) (8.0)

Interest rate swaps – (19.4) –Derivative liabilities not designated as hedging instruments (7.7) (29.6) (8.0)

(i)

(ii)

(iii)







Maturity Coupon % Fair valueCarrying

value Fair valueCarrying

value Fair valueCarrying

value

£m £m £m £m £m £m

2018 5.750 224.6 217.1 233.8 214.8 229.4 216.2

2021 10.000 8.7 9.5 9.3 10.8 9.0 10.0

2027 6.375 231.1 197.3 243.2 200.2 235.8 197.3464.4 423.9 486.3 425.8 474.2 423.5

18 Summary of the effects of acquisitions

The following table is a summary of the carrying amounts of the Group's other financial instruments which are not measured subsequent to initial recognition at fair value. Other than the bonds, the fair value of the Group's financial instruments equates to the carrying amounts disclosed below:

Other receivables includes a 9.0% fixed rate unsecured loan note, repayable on 31 January 2022 with a carrying value of £14.9 million (31 March 2017 £nil, 30 September 2017 £14.9 million).

Hypenica contributed £0.1 million to the Group's revenue, a loss of £0.1 million to the Group's operating profit and a loss of £0.1 million to the Group's profit after tax for the period between the date of acquisition and 31 March 2018.

If the acquisition had been completed on the first day of the financial period, Hypenica would have contributed £0.4 million to the Group's revenue, £nil to the Group's operating profit and £nil to the Group's adjusted profit after tax.

The Group deposits collateral with counterparties with whom it has entered into a credit support annex to an ISDA (International Swaps and Derivatives Association) Master Agreement. At 31 March 2018, other financial assets include £7.2 million of collateral deposits (31 March 2017 £21.3 million, 30 September 2017 £14.5 million) which represents cash that cannot be readily used in the Group's operations together with a 10.0% fixed rate unsecured loan note, repayable 31 December 2025 with a carrying value of £17.5 million (31 March 2017 £13.6 million, 30 September 2017 £13.6 million) owed by Excalibur, an associate.

The carrying and fair values of the Group's bonds and the coupons payable are as follows:

In October 2017, the Events and Exhibitions segment acquired 100.0% of Atticus Events Ltd and Atticus Events MEA Ltd for total consideration of £3.4 million. These businesses (Atticus) run three Hotel Interior Design forum events which take place annually in Europe, Asia and the Middle East.

Atticus contributed £1.2 million to the Group's revenue, £0.5 million to the Group's operating profit and £0.5 million to the Group's profit after tax for the period between the date of acquisition and 31 March 2018.

If the acquisition had been completed on the first day of the financial period, Atticus would have contributed £1.2 million to the Group's revenue, £0.5 million to the Group's operating profit and £0.5 million to the Group's adjusted profit after tax.

In December 2017, the Events and Exhibitions segment acquired 100.0% of the assets of the following assets, known as Hypenica, for total consideration of £1.1 million.

African Construction Expo, held annually in Johannesburg; Cape Construction Expo, held annually in Cape Town; KwaZulu Natal Construction Expo, held annually in Durban; African Ports Evolution Forum, held annually in Durban; African Ports Evolution West, held annually in Nigeria and Concrete Trends Publication and Concrete TV.

DMGT plc

For the 6 months ended 31 March 2018

NOTES

18 Summary of the effects of acquisitions continued

Provisional fair value of net assets acquired with all acquisitions: Atticus Hypenica Total

Note £m £m £m

Goodwill 11, (i) 2.1 0.6 2.7

Intangible assets 11 1.5 0.7 2.2

Trade and other receivables 0.7 – 0.7

Cash and cash equivalents 0.3 – 0.3

Trade and other payables (0.8) – (0.8)

Corporation tax (0.1) – (0.1)

Deferred tax (0.3) (0.2) (0.5)

Group share of net assets acquired 3.4 1.1 4.5

Cost of acquisitions:

£m £m £m

Cash paid in current year 3.4 1.1 4.5

Total consideration at fair value 3.4 1.1 4.5

(i)

Unaudited at 31

March 2018

Unaudited at 31 March

2017

Audited at 30 September

2017

Note £m £m £m

Cash consideration 4.5 0.2 0.5

Cash paid to settle contingent consideration in respect of acquisitions 17 3.0 5.5 8.2

Cash paid to settle acquisition put options – 18.2 18.0

Cash and cash equivalents acquired with subsidiaries (0.3) – –

7.2 23.9 26.7

Unaudited at 31

March 2018

Unaudited at 31 March

2017

Audited at 30 September

2017

£m £m £m

Cash consideration – 2.1 2.1

The amount of goodwill which is deductible for the purposes of calculating the Group's tax charge is £nil.

During the period, the Group acquired additional shares in controlled entities for cash consideration of £nil (2017 £2.1 million). Under the Group's accounting policy for the

acquisition of shares in controlled entities, no adjustment has been recorded to the fair value of assets and liabilities already held on the Consolidated Statement of Financial

Position. The difference between the cost of the additional shares and the carrying value of the non-controlling interests' share of net assets is adjusted in retained earnings.

The adjustment to retained earnings in the period was a charge of £nil (2017 £0.3 million).

All of the companies acquired during the period contributed £1.3 million to the Group's revenue and £0.4 million to the Group's profit after tax for the period between the date

of acquisition and 31 March 2018.

Acquisition-related costs, amounting to £0.1 million, are charged against profits for the period in the Consolidated Income Statement.

If all acquisitions had been completed on the first day of the period, Group revenues for the period would have been £746.1 million and Group profit attributable to equity

holders of the parent would have been a profit of £114.2 million. This information takes into account the amortisation of acquired intangible assets together with related

income tax effects but excludes any pre-acquisition finance costs and should not be viewed as indicative of the results of operations that would have occurred if the

acquisitions had actually been completed on the first day of the period.

Goodwill arising on these acquisitions is principally attributable to the anticipated profitability relating to the distribution of the Group's products in new and existing markets

and anticipated operating synergies from the business combinations.

Reconciliation to purchase of subsidiaries as shown in the Condensed Consolidated Cash Flow Statement:

Purchase of additional shares in controlled entities


19 Summary of the effects of disposals and closure of businesses

Xceligent Other Sub total Prior year assets held for sale disposed in current year

Adjustment on sale of assets held for

sale in current year

Total

Note £m £m £m £m £m £mGoodwill 11 – – – – 0.3 0.3Intangible assets 11 – – – 0.1 – 0.1Property, plant and equipment 1.6 – 1.6 0.2 – 1.8Inventories – – – 0.1 – 0.1 Trade and other receivables 1.2 – 1.2 1.7 0.5 3.4Cash and cash equivalents – – – – 0.2 0.2Trade and other payables (6.4) – (6.4) (0.3) (1.4) (8.1)Current tax payable – – – – 0.1 0.1Deferred tax liabilities 2.3 – 2.3 – 0.1 2.4Net assets/(liabilities) disposed (1.3) – (1.3) 1.8 (0.2) 0.3Non-controlling interest share of net liabilities disposed 0.6 – 0.6 – – 0.6Loss on sale and accounting gain on closure of businesses including recycled cumulative exchange differences

4 3.4 (4.0) (0.6) – (4.1) (4.7)

2.7 (4.0) (1.3) 1.8 (4.3) (3.8)

Satisfied by: Cash received – 0.4 0.4 – 2.0 2.4Directly attributable costs paid (1.4) (1.1) (2.5) – (2.5) (5.0)Working capital adjustment cash paid – (1.1) (1.1) – (2.0) (3.1)Working capital adjustment – (2.2) (2.2) – – (2.2)Recycled cumulative translation differences 4.1 – 4.1 – – 4.1

2.7 (4.0) (1.3) – (2.5) (3.8)

Reconciliation to disposal of businesses as shown in the Condensed Consolidated Cash Flow Statement: Unaudited at 31

March 2018Unaudited at 31

March 2017Audited at 30

September 2017

£m £m £m

Cash consideration net of disposal costs (2.6) 249.8 247.8 Cash consideration received in the current year relating to businesses sold in the prior year 0.7 – –Cash paid following working capital adjustment (3.1) – –Cash and cash equivalents disposed with subsidiaries (0.2) (32.0) (32.0)

(5.2) 217.8 215.8

20 Discontinued operations



31 March 2017


£m £m £m

Revenue – 95.2 95.2 Expenses – (74.2) (74.2)Depreciation – (0.8) (0.8)Amortisation of intangible assets not arising on business combinations – (0.9) (0.9)

– 19.3 19.3Exceptional operating costs – (0.9) (0.9)Amortisation of intangible assets arising on business combinations – (5.4) (5.4)Operating profit before share of results of joint ventures and associates – 13.0 13.0Share of adjusted operating profits from operations of joint ventures and associates – 0.8 0.8Share of amortisation of intangibles arising on business combinations of associates – (1.2) (1.2)Share of interest payable of associates – (0.6) (0.6)Share of tax in associates – 0.3 0.3 Total operating profit – 12.3 12.3 Other gains and losses – 2.4 2.4 Profit before net finance costs and tax – 14.7 14.7Change in present value of acquisition put options – (0.7) (0.7)Finance costs – (0.7) (0.7)Profit before tax – 14.0 14.0Tax charge – (4.0) (4.0)Profit after tax attributable to discontinued operations – 10.0 10.0Profit on disposal of discontinued operations – 563.4 563.4Recycled cumulative translation differences on disposal of discontinued operations – (54.1) (54.1)Profit attributable to discontinued operations – 519.3 519.3

The Group's Condensed Consolidated Income Statement includes the following results from these discontinued operations:


During the prior period as a subsidiary undertaking Euromoney generated £15.3 million of the Group's net operating cash flows, received £3.0 million in respect of investing activities and paid £0.8 million in respect of financing activities.

In the prior year, the Group announced its intention to reduce its holding in Euromoney from 67.9% to 49.9% after which Euromoney ceased to be a subsidiary and became an associate. The results of Euromoney up to the point of disposal are included in discontinued operations for the prior periods.

All of the businesses disposed of during the period absorbed £7.1 million of the Group's net operating cash flows, paid £nil in investing activities and paid £nil in financing activities.

In October 2017, the EdTech segment disposed of the Hobsons Solutions business for total consideration of £2.0 million. This was recognised as held-for-sale in the prior year.

In December 2017, Xceligent, in the Property segment, filed for Chapter 7 liquidation. Under US law, a trustee with expertise in liquidating companies was appointed to distribute Xceligent's assets and this business has been treated as closed.

The impact of the closure and disposal of businesses, completed during the period, on net assets is as follows:

During the period Xceligent absorbed £7.1 million of the Group's net operating cash flows, paid £nil in respect of investing activities and paid £nil in respect of financing activities.

The Group's tax charge includes a net credit of £4.4 million in relation to these disposals.

During the period Hobsons Solutions generated £nil of the Group's net operating cash flows, paid £nil in respect of investing activities and paid £nil in respect of financing activities.


21 Total assets and liabilities of businesses held-for-sale




£m £m £mGoodwill 70.1 – 70.9 Intangible assets 8.1 – 8.6 Property, plant and equipment 11.8 – 8.7 Inventories – – 0.1 Trade and other receivables 30.5 – 19.5 Total assets associated with businesses held-for-sale 120.5 – 107.8

Trade and other payables (28.7) – (16.8)Current tax (4.6) – (5.3)Deferred tax (4.4) – (6.9)Total liabilities associated with businesses held-for-sale (37.7) – (29.0)

Net assets of the disposal group 82.8 – 78.8

22 Share capital and reserves

23 Retirement benefit obligations




% pa % pa % paPrice inflation 3.15 3.10 3.20Pension increases 3.00 3.00 3.00Discount rate 2.50 2.50 2.60

The net surplus as at the end of the period amounted to £79.4 million (31 March 2017 deficit £43.0 million, 30 September 2017 surplus £62.4 million). The movement from March 2017 largely the result of positive asset returns exceeding corporate bond yields, changes in assumptions reducing the liabilities and deficit payments.

Share capital at 31 March 2018 amounted to £45.3 million (2017 £45.3 million).

During the period the Company utilised 1.4 million (2017 5.0 million) A Ordinary Non-Voting shares out of Treasury and the Employee Benefit Trust valued at £10.4 million (2017 £37.4 million), in order to satisfy incentive schemes. This represented 0.4% (2017 1.5%) of the called up A Ordinary Non-Voting share capital at 31 March 2018.

The Company purchased 0.7 million (2017 3.9 million) A Ordinary Non-Voting shares having a nominal value of £0.1 million (2017 £0.5 million) to match obligations under incentive plans. The consideration paid for these shares was £4.6 million (2017 £28.3 million).

The Group operates a number of pension schemes under which contributions are paid by the employer and employees.

The total net pension charge of the Group for the period ended 31 March 2018 was £6.1 million (2017 £9.9 million).

The schemes include a number of defined contribution pension arrangements, in addition to funded defined benefit pension arrangements which are closed to future accrual. The defined benefit schemes in the UK, together with some defined contribution plans, are administered by Trustees or Trustee Companies.

The defined benefit obligation is calculated on a year-to-date basis, using the latest actuarial valuation at 31 March 2018. The assumptions used in the valuation are summarised below:

At 31 March 2018 options were outstanding under the terms of the Company's Executive Share Option Schemes, Long-Term Incentive Plans and nil cost options, over a total of 3,610,659 (2017 4,878,057) A Ordinary Non-Voting shares.

At 31 March 2018, the assets and liabilities held-for-sale relate to EDR and SiteCompli, which are included in the Property Information segment.

At 31 March 2017, the assets and liabilities held-for-sale relate to certain assets within Elite Daily Inc, in the Consumer Media segment.

At 30 September 2017 the assets and liabilities held-for-sale principally relate to EDR in the Property Information segment and Hobsons Solutions in the EdTech segment.


24 Contingent liabilities

25 Ultimate holding company

26 Related party transactions

Ultimate controlling party

Transactions with Directors

The Group has issued standby letters of credit amounting to £3.2 million (2017 £3.5 million).

The Group is exposed to libel claims in the ordinary course of business and vigorously defends against claims received. The Group makes provision for the estimated costs to defend such claims and provides for any settlement costs when such an outcome is judged probable.

For the purposes of IAS 24, Related Party Disclosures, Executives below the level of the Company's Board are not regarded as related parties.

RCL is a holding company incorporated in Bermuda. The main asset of RCL is its 100.0% holding of DMGT Ordinary Shares. RCL has controlled the Company for many years and as such is its immediate parent Company. RCL is owned by a trust (the Trust) which is held for the benefit of Viscount Rothermere and his immediate family. The Trust represents the ultimate controlling party of the Company. Both RCL and the Trust are administered in Jersey, in the Channel Islands. RCL and its directors, the Trust and its beneficiaries are related parties of the Company.

During the period, Mr A Lane, a Non-Executive Director of the Company and a partner in Forsters LLP, provided legal services to the Company amounting to £8,145 (2017 £nil).

Daily Mail and General Trust plc is the only company in the Group to prepare consolidated financial statements.

Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note. The transactions between the Group and its joint ventures and associates are disclosed below.

Four writs claiming damages for libel were issued in Malaysia against Euromoney, an associate, and three of Euromoney's employees in respect of an article published in one of the Company’s magazines, International Commercial Litigation, in November 1995. The writs were served on Euromoney on October 22 1996. Two of these writs have been discontinued. The total outstanding amount claimed on the two remaining writs is Malaysian Ringgit 83.4 million (£15.4 million). No provision has been made for these claims by Euromoney as Euromoney does not believe it has any material liability in respect of these writs.

In January 2018, the European Commission conducted an unannounced inspection at Euromoney's Brussels office of RISI Sprl (RISI), a wholly-owned subsidiary of Euromoney, as part of an investigation into the sector of kraft paper and industrial paper sacks in the European Union/European Economic Area. Provision is made for the outcome of tax, legal and other disputes where it is both probable that the Company will suffer an outflow of funds and it is possible to make a reliable estimate of that outflow. No proceedings have been issued and Euromoney is unable to make a reliable estimate of any potential liability, therefore no provision has been recognised by Euromoney.

The Group’s Energy Information business (Genscape) provided a real-time third-party auditor service verifying Renewable Identification Numbers (RINs) for renewable fuel production activities in the US, as part of the Renewable Fuel Standard Quality Assurance Program (Program), a regulatory program administered by the US Environmental Protection Agency (EPA).

Following discovery and self-reporting to the EPA by Genscape of potential fraudulent RINs generated by third parties but verified by Genscape under the Program, the EPA issued a notice of intent to revoke the ability of Genscape to verify RINs as a third-party auditor.

EPA regulations for the Program set a liability cap on replacement of invalid RINs of 2% of the RINs. Genscape voluntarily paid the 2% liability cap associated with the invalid RINs at a cost of $1.3m, based on the then-prevailing market rates, subject to a reservation of rights. The EPA regulations allow for situations where the cap does not apply - including auditor fraud and negligence.

The EPA has not formally alleged any wrongdoing by Genscape but the EPA continues to consider a proposed action to seek Genscape to retire, at the current market price, a maximum of 68 million of RINs verified by Genscape. RINs trade in a volatile range currently averaging approximately 45 cents which equates to a theoretical maximum claim of approximately $31.0 million. Genscape has made no provision for any future claim which may be payable.

Genscape continues to co-operate with EPA and discussions are on-going.

The Company’s immediate parent Company is Rothermere Continuation Limited (RCL), a company incorporated in Bermuda.


26 Related party transactions continued

Transactions with joint ventures and associatesDMGV Ltd holds a 23.9% (2017 23.9%) stake in Excalibur Holdco Ltd (Excalibur), an associate. During the period, services provided to Excalibur amounted to £0.3 million (2017 £0.5 million). At 31 March 2018, amounts due from Excalibur amounted to £0.1 million (2017 £3.0 million), together with loan notes of £17.5 million (2017 £13.6 million). The loan notes carry a coupon of 10.0% and £3.3 million (2017 £0.8 million) was outstanding in relation to this coupon at 31 March 2018.

Risk Management Solutions Inc (RMS Inc) has a 20.0% (2017 20.0%) shareholding in OYO RMS Corporation, an associate. During the period, the Group received a dividend of £0.5 million (2017 £nil) from OYO.

Associated Newspapers Ltd (ANL) holds a 50.0% (2017 50.0%) shareholding in Artirix Ltd, a joint venture. During the period, the Group provided services totalling £nil (2017 £0.1 million). The Group's investment in this joint venture was disposed of during the period.

ANL has a 50.0% (2017 50.0%) shareholding in Northprint Manchester Ltd, a joint venture. The net amount due to ANL of £5.8 million (2017 £5.8 million) has been fully provided.

Mail Media, Inc. has a 50.0% (2017 50.0%) shareholding in Daily Mail On Air, a joint venture. Funding provided by Mail Media Inc amounting to £0.2 million in a prior period was outstanding at 31 March 2018 (2017 £0.2 million).

During the period, ANL recharged costs amounting to £0.2 million (2017 £nil) to Euromoney, an associate. At 31 March 2018, £0.3 million (2017 £nil) was owed by Euromoney to ANL.

During the period, services were recharged to Euromoney, an associate, by Daily Mail and General Holdings Ltd amounting to £0.1 million (2017 £0.1 million). At 31 March 2018, £nil (2017 £0.2 million) was owed by Euromoney. During the period the Group received a dividend of £11.7 million (2017 £14.1 million) from Euromoney.

During the period, DMG World Media (2006) Ltd recharged costs amounting to £0.2 million (2017 £0.1 million) to BCA Research Inc, a Euromoney subsidiary.

The Group has a 29.9% (2017 29.8%) shareholding in ZPG, an associate. During the period, the Group received a dividend of £5.0 million (2017 £4.8 million) from ZPG.

During the period, Landmark Information Group Ltd (Landmark) charged management fees of £0.2 million (2017 £0.2 million) and recharged costs of £0.1 million (2017 £nil) to Point X Ltd (Point X), a joint venture. At 31 March 2018, Point X owed £nil (2017 £0.1 million) to Landmark.

Decision Insight Information Group (UK) Ltd (DIIG UK) has a 50.0% (2017 50.0%) interest in Decision First Ltd (DF), a joint venture. During the period, DIIG UK recharged costs to DF amounting to £0.1 million (2017 £0.1 million) and charged management fees amounting to £0.1 million (2017 £nil). At 31 March 2018, DF owed DIIG UK £0.1 million (2017 £nil).

On-Geo GmbH (On-Geo) has a 50.0% (2017 50.0%) interest in HypoPort On-Geo GmbH (HypoPort), a joint venture. During the period, HypoPort made purchases from On-Geo amounting to £3.9 million (2017 £3.7 million). At 31 March 2018, £1.3 million (2017 £0.3 million) was owed by HypoPort to On-Geo.

Hobsons Inc (Hobsons) has a 50.0% (2017 50.0%) shareholding in Knowlura, a joint venture. At 31 March 2018, £0.4 million (2017 £nil) was owed to Hobsons by Knowlura.

RMS Inc has a 25.9% (2017 29.6%) shareholding in Praedicat Inc (Praedicat), an associate. During the period, RMS Inc provided funding of £1.5 million (2017 £nil) to Praedicat. At 31 March 2018 £0.8 million (2017 £nil) was owed to the Group.


26 Related party transactions continuedOther related party disclosures

27 Post balance sheet events

In May 2018, the Boards of Zephyr Bidco Limited, (Bidco), a wholly-owned indirect subsidiary of funds managed by Silver Lake Management Company V, LLC, and ZPG Plc announced that they have reached agreement on the terms of a recommended cash acquisition of the entire issued and to be issued ordinary share capital of ZPG Plc by Bidco at a price of 490p per ordinary share. This values the Group's stake in ZPG Plc at £641.0 million.

The Board of ZPG Plc, which includes two representatives of DMGT, intends to unanimously recommend this offer to ZPG Plc shareholders and DMGT has given an irrevocable undertaking to accept the offer in respect of its entire holding, amounting to 29.9% of ZPG Plc’s issued share capital.

Bidco’s proposed acquisition of ZPG Plc is to be implemented by means of a Scheme of Arrangement and it is anticipated that, if approved by shareholders, this will become effective in the third quarter of calendar year 2018.

Under an agreement to guarantee the income generated from certain property assets held by the Harmsworth Pension Scheme which were purchased from the Group during a prior period, the Group was charged for rent and service charges in relation to the current period amounting to £0.2 million (2017 £0.8 million).

At 31 March 2018, the Group owed £0.7 million (2017 £0.6 million) to the pension schemes which it operates. This amount comprised employees’ and employer’s contributions in respect of March 2018 payrolls.

The Group recharges its principal pension schemes with costs of investment management fees. The total amount recharged during the period was £0.1 million (2017 £0.1 million).

In July 2012, the Group entered into a contingent asset partnership whereby a £150.0 million loan note, guaranteed by the Group, was used to commit £10.8 million funding p.a. to the Harmsworth Pension Scheme. Interest payable to DMG Pension Partnership LP in the period totalled £5.5 million (2017 £5.4 million).

In April 2018, the Group announced the completion of its sale of EDR, a US based property information business, to Silver Lake Partners and Battery Ventures for gross proceeds of $205.0 million. Associated disposal costs amounted to $5.8 million.

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