GO plc - Interim Results

On 9 August 2024, GO plc published its interim results covering the six-month period ending 30 June 2024.

Revenues fell by 5.8% to €113.5 million (H1 2023: €120.5 million), reflecting an anticipated reduction in hardware sales of €10.2 million, partially offset by a €3.3 million increase in recurring service revenues.

On the expenditure side, total operating costs (net of other income) decreased by 5% to €96.8 million from €101.8 million in the corresponding period last year, as the lower cost of sales, also largely reflecting the anticipated reduction in hardware sales, outweighed the increase in administrative and distribution expenses.

Nonetheless, operating profit contracted by 10% to €16.8 million compared to €18.6 million in the corresponding period last year. Excluding a depreciation and amortisation charge of €27.6 million, EBITDA decreased by 2.0% to €44.4 million (H1 2023: €45.3 million). Nonetheless, the EBITDA margin rose to 39.1% compared to 37.6% in the first half of 2023, reflecting the decrease in hardware sales which attract lower margins.

After accounting for net finance costs of €4.1 million, a realised gain on equity investments of €1.7 million, a tax charge of €4.9 million, as well as non-controlling interests of €0.5 million, the net profit for the period attributable to shareholders amounted to €8.9 million (H1 2023: €8.7 million) translating into an annualised return on average equity of 21.1% (H1 2023: 18.6%).

The Statement of Financial Position as at 30 June 2024, when compared to the position as at 31 December 2023 shows that total assets fell by 10.3% (or €47.3 million) to €410.8 million, mostly driven by a decrease in cash and equivalents to €12.0 million from €49.2 million in December 2023 on the back of further investments in the Group’s property plant and equipment as well as intangible assets, repayment of bank borrowings and distribution of dividends. Total liabilities contracted by 9.5% (or €34.3 million) to €324 million, mainly due to a reduction in payables. Shareholders’ funds fell by 13.1% (or -€13.0 million) to €86.4 million, mostly attributable to GO’s distribution of a special dividend of €15.2 million last January and a final dividend distribution (with respect to the 2023 financial year) of €0.05 amounting to €5.1 million. Consequently, the net asset value per share fell to €0.78 from €0.91 in December 2023.

Dividend

The Directors of GO plc declared a net interim dividend of €0.05 per share, compared to last year’s interim dividend of €0.07 per share. The dividend represents a payout ratio of 56.9% (H1 2023: 81.4%) and is payable on Friday 30 August 2024 to all shareholders as at the close of trading on Tuesday 13 August 2024.