TIDMHTWS
RNS Number : 1006J
Helios Towers PLC
19 August 2021
HELIOS TOWERS plc
Unaudited results for the 6 months ended 30 June 2021
Strong H1 performance through acquisitions and continued
operational excellence
Transformational period underway for the Company through
multiple acquisitions
2021 tenancy outlook for existing markets unchanged
London, 19 August 2021: Helios Towers plc ("Helios Towers", "the
Group" or "the Company"), the independent telecommunications
infrastructure company, today announces results for the six months
to 30 June 2021.
H1 2021 H1 2020 Change Q2 2021 Q1 2021 Change
----------------------------------- ------- ------- ------ ------- ------- ------
Sites 8,603 7,092 +21% 8,603 7,358 +17%
Tenancies 17,090 14,906 +15% 17,090 15,732 +9%
Tenancy ratio 1.99x 2.10x -0.11x 1.99x 2.14x -0.15x
Revenue (US$m) 212.4 204.0 +4% 108.8 103.6 +5%
Adjusted EBITDA (US$m) 1 114.2 109.1 +5% 58.4 55.8 +5%
Adjusted EBITDA margin 1 54% 53% +1ppt 54% 54% -
Operating profit (US$m) 26.9 29.3 -8% 9.8 17.1 -43%
Portfolio free cash flow (US$m)(1) 73.8 89.1 -17% 36.8 37.0 -1%
Cash generated from operations
(US$m) 45.7 88.3 -48% 15.7 30.0 -48%
Net debt (US$m)(1) 786.0 655.7 +20% 786.0 673.2 +17%
Net leverage(1,2) 3.2x 3.0x +0.2x 3.2x 3.0x +0.2x
(1) Alternative Performance Measures are described in our defined terms and conventions.
(2) Calculated as per the Senior Notes definition of net debt
divided by annualised Adjusted EBITDA.
Kash Pandya, Chief Executive Officer, said:
"The first half of 2021 has been a busy period for the Group,
closing the acquisition of Free Senegal's tower assets and
announcing five further acquisitions across Africa and the
Middle-East. We are delighted to have commenced operations in the
attractive Senegal market and through our experienced new markets
function we have created a strong local team with our processes,
systems and culture in place, ready to support mobile network
operators efficiently expand coverage. We will be applying our
tried and tested framework across each of the announced
acquisitions, which we expect to close over the coming nine
months.
At the same time we remain incredibly focused on delivering
exceptional customer service to our MNO partners in all our
operating markets and driving organic growth. In Q2 2021 we
delivered steady organic growth and another quarter of leading
power uptime, while strengthening our tenancy pipeline to support
accelerated growth in the second half of 2021."
Financial highlights
-- H1 2021 revenue increased by 4% year-on-year to US$212.4m (H1
2020: US$204.0m) driven by continued organic tenancy growth across
the Group and the addition of 1,264 tenancies through the
acquisition of Free Senegal's passive infrastructure assets, which
closed during Q2 2021.
o Q2 2021 revenue increased by 5% quarter-on-quarter to
US$108.8m (Q1 2021: US$103.6m).
-- H1 2021 Adjusted EBITDA increased by 5% year-on-year to
US$114.2m (H1 2020: US$109.1m), driven by tenancy growth and
continued improvements in operational efficiency, with H1 2021
Adjusted EBITDA margin at 54% (H1 2020: 53%), up 1ppt.
o Q2 2021 Adjusted EBITDA increased by 5% quarter-on-quarter to
US$58.4m (Q1 2021: US$55.8m), including a contribution of US$2.3m
from Senegal, with Q2 2021 Adjusted EBITDA margin at 54% (Q1 2021:
54%).
-- Operating profit decreased by US$2.4 million, from US$29.3
million in H1 2020 to US$26.9 million in H1 2021, driven by an
increase in deal costs, depreciation and loss on disposal of
property, plant and equipment, partially offset by an increase in
adjusted EBITDA and lower amortisation and project costs.
-- Portfolio free cash flow decreased by 17% year-on-year to
US$73.8m (H1 2020: US$89.1m), driven by timing of corporate income
tax and non-discretionary capex payments.
o Q2 2021 portfolio free cash flow decreased by 1%
quarter-on-quarter to US$36.8 million (Q1 2021: US$37.0m), driven
by forward purchases of non-discretionary capex and upfront ground
lease payments in our new market Senegal.
-- Cash generated from operations decreased by US$42.6 million
from US$88.3 million in H1 2020 to US$45.7 million in H1 2021,
primarily driven by working capital movements including escrow
deposit payments in relation to acquisitions.
-- Net leverage increased by +0.2x both year-on-year and
quarter-on-quarter to 3.2x (H1 2020: 3.0x), remaining below the
Group's medium term target range of 3.5x-4.5x.
-- In June 2021, Helios Towers successfully raised US$160m gross
proceeds through a US$110m equity placing and retail offer and
US$50m convertible bond tap issuance. The proceeds have further
enhanced the Company's balance sheet and provides additional
capital to drive the Group's organic and inorganic growth
strategy.
-- Business underpinned by long-term contracted revenues of
US$3.5bn (H1 2020: US$2.8bn), of which 99% is from multinational
MNOs, with an average remaining life of 7.4 years (H1 2020: 6.8
years).
Operational highlights
-- Sites increased by 1,511 year-on-year to 8,603 sites (H1
2020: 7,092 sites), driven by the acquisition of 1,207 sites from
Free Senegal and 304 site additions within Helios Towers'
established markets. Sites increased by 1,245 quarter-on-quarter
(Q1 2021: 7,358).
-- Tenancies increased by 2,184 year-on-year to 17,090 tenants
(H1 2020: 14,906 tenants), reflecting the addition of 1,264
tenancies through the acquisition of Free Senegal's passive
infrastructure assets and 920 tenancy additions within Helios
Towers' established markets.
-- Tenancy ratio decreased 0.11x year-on-year to 1.99x (H1 2020:
2.10x), reflecting the expected dilutive impact of the acquired
assets from Free Senegal (Senegal H1 21 tenancy ratio: 1.05x).
Excluding the acquisition, the Group's tenancy ratio expanded 0.04x
year-on-year to 2.14x.
-- Helios Towers continues to monitor the impact of COVID-19 on
its operations. The telecommunications sector has been classified
as an 'essential service' in our markets, allowing us to operate at
our normal high levels of service. To date, there has been minimal
impact on the Group's delivery of service and operational
execution.
Environmental, Social and Governance (ESG)
-- Helios Towers' Sustainable Business Strategy enables the
company to deliver a positive impact for all stakeholders, in line
with its purpose of driving the growth of communications in Africa
and the Middle-East.
-- The Group published its first Sustainable Business Report on
10 March 2021. The report provides a detailed review of the Group's
progress against its strategic objectives and ambitions.
-- The Group is currently developing its carbon emissions
reduction target and expects to publish this target in Q4 2021.
-- The Group submitted its first climate questionnaire response
to CDP in July 2021, which will deliver Helios Towers' first CDP
score and will be communicated once received.
Strategic Updates
-- During H1 2021 Helios Towers has made significant progress on
its growth strategy including closing the acquisition of Free
Senegal's passive infrastructure assets and entering into the
following agreements for entry into new markets:
o On 23 March 2021, Helios Towers announced it had signed
agreements with Airtel Africa Group companies ("Airtel Africa") to
acquire its passive infrastructure operating companies in
Madagascar and Malawi and enter into exclusive memorandum of
understanding arrangements for the potential acquisition of its
passive infrastructure assets in Chad and Gabon (together, the
"Transactions"). The Transactions represent 2,227 sites with
further growth anticipated through 315 committed BTS and colocation
lease-up.
o On 11 May 2021, Helios Towers announced it had entered into an
agreement to acquire 2,890 sites from Oman Telecommunications
Company ("Omantel") for US$575m, with further growth anticipated
through a 300 build-to-suit ("BTS") site commitment as well as
colocation lease-up. The acquisition supports the Company's entry
into one of the fastest growing markets in the Middle-East region,
and further diversifies its portfolio with an acquisition that
meets Helios Towers' acquisition criteria.
o On 18 May 2021, Helios Towers closed the acquisition of Free
Senegal's passive infrastructure assets, adding 1,207 sites to its
portfolio.
-- These acquisitions, together with the committed BTS,
increases Group site count close to 15,000 towers across 11
markets, delivering the Group's 2025 vision of expanding to 12,000+
towers in at least 8 markets.
-- Upon closing these acquisitions, Helios Towers will become the most diverse independent telecommunications infrastructure company across Africa and the Middle-East.
2021 Outlook and guidance
-- Tenancy guidance for the established five markets remains
unchanged, targeting 1,000 - 1,500 tenancies which is supported by
a robust tenancy pipeline.
-- Capex guidance for the Group is unchanged, targeting the following for FY 2021:
o US$110m - US$140m of capex in Helios Towers' established five
markets, of which US$20m - US$25m is non-discretionary capex.
o US$215m of capital expenditure in our sixth market, Senegal,
reflecting acquisition capex of approximately US$190m and US$25m of
growth, upgrade and non-discretionary capex.
o US$108m consideration for the acquisition of Airtel Africa's
passive infrastructure companies in Madagascar and Malawi, expected
to close in or around Q4 2021.
o US$575m consideration for the acquisition of Omantel's tower
portfolio, expected to close in H2 2021.
For further information go to:
www.heliostowers.com
Investor Relations
Chris Baker-Sams - Corporate Finance Manager
+44 (0)752 310 1475
Media relations
Edward Bridges / Stephanie Ellis
FTI Consulting LLP
+44 (0)20 3727 1000
Helios Towers' management will host a conference call for
analysts and institutional investors at 09.30 BST on Thursday, 19
August 2021. For the best user experience, please access the
conference via the webcast. You can pre-register and access the
event using the link below :
Registration Link - Helios Towers H1 2021 Results Conference
Call
Event Name: H1RESULTS
Password: HELIOS
If you intend to participate in Q&A during the call or are
unable to use the webcast, please dial in using the details
below:
Europe & International +44 203 936 2999
South Africa (local) 087 550 8441
USA (local) + 1 646 664 1960
Passcode: 238362
About Helios Towers
-- Helios Towers is a leading independent telecommunications
infrastructure company, having established one of the most
extensive tower portfolios across Africa . It builds, owns and
operates telecom passive infrastructure, providing services to
mobile network operators.
-- Helios Towers owns and operates telecommunication tower sites
in Tanzania, Democratic Republic of Congo , Congo Brazzaville,
Ghana, South Africa and Senegal. Following recent acquisition
agreements and subject to regulatory approval , Helios Towers
expects to establish a presence in five new markets across Africa
and the Middle-East over the next nine months. Including these
acquisitions and committed BTS, the Group's total site count is
expected to increase from over 8,600 towers to almost 15,000.
-- Helios Towers pioneered the model in Africa of buying towers
that were held by single operators and providing services utilising
the tower infrastructure to the seller and other operators. This
allows wireless operators to outsource non-core tower-related
activities, enabling them to focus their capital and managerial
resources on providing higher quality services more
cost-effectively.
Financial and Operating Review
Condensed consolidated statement of profit or loss
For the 6 months ended 30 June
6 months ended
30 June
----------------
2021 2020
US$m US$m
-------------------------------------------------- ------- -------
Revenue 212.4 204.0
Cost of sales (138.4) (130.2)
-------------------------------------------------- ------- -------
Gross profit 74.0 73.8
-------------------------------------------------- ------- -------
Administrative expenses (43.9) (43.2)
Loss on disposal of property, plant and equipment (3.2) (1.3)
-------------------------------------------------- ------- -------
Operating profit 26.9 29.3
-------------------------------------------------- ------- -------
Interest receivable 0.2 0.5
Other gains and (losses) (6.2) (35.0)
Finance costs (64.5) (77.8)
-------------------------------------------------- ------- -------
Loss before tax (43.6) (83.0)
-------------------------------------------------- ------- -------
Tax expense (7.5) (7.8)
-------------------------------------------------- ------- -------
Loss after tax (51.1) (90.8)
-------------------------------------------------- ------- -------
Key metrics
For the 6 months ended 30 June
Congo South Senegal
Group Tanzania DRC Brazzaville Ghana Africa (3)
--------------- ------------ ------------ --------------- ------------ ---------------- ------------
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m
---------- ------ ------- ----- ----- ----- ----- ----- -------- ----- ----- ----- --------- ----- -----
Revenue
for
the
period $212.4 $204.0 $84.1 $83.2 $85.5 $85.4 $13.9 $12.5 $21.4 $21.6 $2.8 $1.3 $4.7 -
Adjusted
gross
margin1 67% 67% 69% 67% 65% 65% 64% 69% 69% 74% 73% 76% 60% -
Sites at
beginning
of the
period 7,356 6,991 3,821 3,667 1,895 1,853 426 384 978 964 236 123 - -
Sites at
period
end 8,603 7,092 3,817 3,668 1,915 1,867 431 415 986 970 247 172 1,207 -
Tenancies
at
beginning
of the
period 15,656 14,677 8,625 8,120 4,096 3,883 617 565 1,914 1,891 404 218 - -
Tenancies
at period
end 17,090 14,906 8,649 8,131 4,185 3,944 629 606 1,952 1,905 411 320 1,264 -
Tenancy
ratio
at period
end 1.99x 2.10x 2.27x 2.22x 2.19x 2.11x 1.46x 1.46x 1.98x 1.96x 1.66x 1.86x 1.05x -
Adjusted
EBITDA
for the
period2 $114.2 $109.1 $55.6 $51.0 $49.7 $49.0 $6.5 $5.7 $12.7 $13.7 $1.2 $0.1 $2.3 -
---------- ------ ------- ----- ----- ----- ----- ----- -------- ----- ----- ----- --------- ----- -----
Adjusted
EBITDA
Margin(2)
for the
period 54% 53% 66% 61% 58% 57% 47% 46% 59% 63% 43% 8% 49% -
---------- ------ ------- ----- ----- ----- ----- ----- -------- ----- ----- ----- --------- ----- -----
(1) Adjusted gross margin means gross profit, adding back site depreciation, divided by revenue.
(2) Group Adjusted EBITDA for the period is stated including
corporate costs of US$13.8 million (2020: US$10.4 million).
(3) Results for the period from completion on 18 May 2021.
Total tenancies as at 30 June
Group Tanzania DRC Congo Brazzaville Ghana South Africa Senegal
----------- -------------- ------------ ------------ ------------------ ------------ -------------- -----------
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
----------- ------ ------ ----- ----- ----- ----- -------- -------- ----- ----- ------ ------ ----- ----
Standard
colocation
tenants 7,574 7,017 4,287 3,993 2,170 1,983 175 173 726 722 159 146 57 -
Amendment
colocation
tenants 913 797 545 470 100 94 23 18 240 213 5 2 - -
----------- ------ ------ ----- ----- ----- ----- -------- -------- ----- ----- ------ ------
Total
colocation
tenants 8,487 7,814 4,832 4,463 2,270 2,077 198 191 966 935 164 148 57 -
Total sites 8,603 7,092 3,817 3,668 1,915 1,867 431 415 986 970 247 172 1,207 -
----------- ------ ------ ----- ----- ----- ----- -------- -------- ----- ----- ------ ------
Total
tenancies 17,090 14,906 8,649 8,131 4,185 3,944 629 606 1,952 1,905 411 320 1,264 -
----------- ------ ------ ----- ----- ----- ----- -------- -------- ----- ----- ------ ------ ----- ----
Revenue
Revenue increased by 4% to US$212.4 million in the period ended
30 June 2021 from US$204.0 million in the period ended 30 June
2020. The increase was largely driven by the growth in total
tenancies from 14,906 as of 30 June 2020 to 17,090 as of 30 June
2021, including the addition of 1,264 tenancies in Senegal. For the
period ended 30 June 2021 99% of revenues were from multinational
MNOs and 61% were denominated in USD or CFA (which is pegged to the
Euro).
Cost of sales and adjusted gross margin
6 months ended 30 June
--------------------------------
% of % of
Revenue Revenue
----- -------- ----- --------
(US$m) 2021 2021 2020 2020
------------------------------------------ ----- -------- ----- --------
Power 39.3 18.5% 42.3 20.7%
Non-power 31.1 14.6% 24.6 12.1%
------------------------------------------ ----- -------- ----- --------
Cost of sales excluding site depreciation 70.4 33.1% 66.9 32.8%
------------------------------------------ ----- -------- ----- --------
Site depreciation 68.0 32.1% 63.3 31.0%
------------------------------------------ ----- -------- ----- --------
Total cost of sales 138.4 65.2% 130.2 63.8%
------------------------------------------ ----- -------- ----- --------
Year-on-year cost of sales increased from US$130.2 million in
the period ended 30 June 2020 to US$138.4 million in the period
ended 30 June 2021 mainly due to the acquisition of Free Senegal's
passive infrastructure assets and ongoing costs for Senegal during
H1 2021 and non-power cost increases in Congo Brazzaville and
Ghana.
The table below shows an analysis of the cost of sales on a
country-by-country basis for the 6 month period ended 30 June 2021
and 2020.
Tanzania DRC Congo Brazzaville Ghana South Africa Senegal
---------- ---------- ------------------- ---------- -------------- ----------
(US$m) 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
------------------ ---- ---- ---- ---- --------- -------- ---- ---- ------ ------ ---- ----
Power 12.8 15.2 18.7 21.7 1.8 1.5 4.2 3.7 0.6 0.2 1.2 -
Non-power 13.4 12.1 11.1 8.1 3.2 2.5 2.6 1.8 0.2 0.1 0.6 -
Site depreciation 26.0 26.5 27.6 27.3 5.5 5.0 4.3 4.1 1.3 0.4 3.3 -
------------------ ---- ---- ---- ---- --------- -------- ---- ---- ------ ------ ---- ----
Total cost
of sales 52.2 53.8 57.4 57.1 10.5 9.0 11.1 9.6 2.1 0.7 5.1 -
------------------ ---- ---- ---- ---- --------- -------- ---- ---- ------ ------ ---- ----
Adjusted gross profit is defined as gross profit, adding back
site depreciation. Adjusted gross margin is defined as adjusted
gross profit divided by revenue.
Adjusted gross margin for the period has remained flat
year-on-year at 67%.
6 months ended 30 June
----------------------------------
% of % of
Revenue Revenue
-------- --------
(US$m) 2021 2021 2020 2020
------------------------------------------ ------ -------- ------ --------
Revenue 212.4 100.0% 204.0 100.0%
Cost of sales excluding site depreciation (70.4) 33.1% (66.9) 32.8%
------------------------------------------ ------ -------- ------ --------
Adjusted gross margin 142.0 66.9% 137.1 67.2%
------------------------------------------ ------ -------- ------ --------
Site depreciation (68.0) 32.1% (63.3) 31.0%
------------------------------------------ ------ -------- ------ --------
Gross profit 74.0 34.8% 73.8 36.2%
------------------------------------------ ------ -------- ------ --------
Administrative expenses
Administrative expenses increased by 2% year-on-year, to US$43.9
million from US$43.2 million in the comparative period.
Depreciation and amortisation costs decreased in H1 2021, due to
the right of first refusal becoming fully amortised in 2020 (H1
2020: US$2.6 million charge). The increase in Adjusting items
relates to increased expenditure in H1 2021 related to deal costs
and capital raising activities.
6 months ended 30 June
------------------------------
% of % of
Revenue Revenue
-------- --------
(US$m) 2021 2021 2020 2020
----------------------------------------------- ---- -------- ---- --------
Sales, general and administrative costs (SG&A) 27.8 13.1% 28.0 13.7%
Depreciation and amortisation 6.6 3.1% 9.4 4.6%
Adjusting items(1) 9.5 4.5% 5.8 2.8%
----------------------------------------------- ---- -------- ---- --------
43.9 20.7% 43.2 21.2%
----------------------------------------------- ---- -------- ---- --------
(1) Adjusting items primarily relate to project and deal costs
please see Note 4 of the condensed consolidated financial
statements.
Loss on disposal of property, plant and equipment
Loss on disposal of property, plant and equipment was US$3.2
million in the period ended 30 June 2021, compared to US$1.3
million during the period ended 30 June 2020 mainly due to site
consolidations in DRC and Tanzania.
Other gains and losses
The derivative financial instrument represents the fair value of
the put and call options embedded within the terms of the Senior
Notes. See Notes 9 and 13 of the condensed consolidated financial
statements. The loss on derivative financial instruments of US$6.2
million in the 6 months ended 30 June 2021 compared to a loss of
US$37.6 million for the 6 months ended June 2020 was due to the
change in credit spreads during the period and the upsizing of the
bond in 2020. A gain of US$2.6 million in the prior year was
recognised due to the change in fair value of the contingent
consideration relating to the acquisition of SA Towers in South
Africa.
6 months ended
30 June
----------------
2021 2020
US$m US$m
----------------------------------------------------------- ------- -------
Fair value gain/(loss) on derivative financial instruments (6.2) (37.6)
Fair value gain on movement in contingent liability - 2.6
----------------------------------------------------------- ------- -------
(6.2) (35.0)
----------------------------------------------------------- ------- -------
Finance costs
Finance costs of US$64.5 million for the period ended 30 June
2021, mainly comprise of US$51.2 million interest on all external
loan borrowings across the Group. See note 13 of the condensed
consolidated financial statements for further details. Included in
finance costs in the prior period is a call premium and the release
of transaction costs of US$13.7 million and US$10.2 million
respectively, relating to the early redemption of the US$600
million Senior Notes. Foreign exchange differences relate primarily
to unrealised US Dollar / local currency exchange movements on
inter-company loans from the Group to Operating Subsidiaries.
6 months ended
30 June
----------------
2021 2020
US$m US$m
----------------------------------- ------- -------
Foreign exchange differences 4.4 6.5
Interest cost 51.2 39.3
Early redemption expenses - 23.9
Interest cost on lease liabilities 8.9 8.1
----------------------------------- ------- -------
64.5 77.8
----------------------------------- ------- -------
Tax expense
Tax expense was US$7.5 million in the period ended 30 June 2021
as compared to US$7.8 million in the period ended 30 June 2020.
Entities in Congo Brazzaville and Senegal are loss making, however
minimum income tax is levied as stipulated by law in these
jurisdictions. DRC, Ghana, Tanzania and one entity in South Africa
are profit making and subject to income tax on taxable profits.
Adjusted EBITDA
Adjusted EBITDA was US$114.2 million in the period ended 30 June
2021 compared to US$109.1 million in the period ended 30 June 2020.
The increase in Adjusted EBITDA between periods is primarily driven
by the integration of Senegal and organic growth as mentioned
above. Please refer to the Alternative Performance Measures section
for more details and Note 4 of the condensed consolidated financial
statements for a reconciliation of aggregate segment Adjusted
EBITDA to loss before tax.
Contracted revenue
The following table provides our total undiscounted contracted
revenue by country as of 30 June 2021 for each of the periods from
2021 to 2025, with local currency amounts converted at the
applicable average rate for US Dollars for the period ended 30 June
2021 held constant. Our contracted revenue calculation for each
year presented assumes: (i) no escalation in fee rates, (ii) no
increases in sites or tenancies other than our committed tenancies,
(iii) our customers do not utilise any cancellation allowances set
forth in their MLAs, (iv) our customers do not terminate MLAs early
for any reason and (v) no automatic renewal.
Year ended 31 December
----------------------------
6 months
to
31 December
2021 2022 2023 2024 2025
US$m US$m US$m US$m US$m
------------------ ------------ ------ ------ ----- -----
Tanzania 81.9 164.3 159.4 142.2 123.5
DRC 85.0 172.5 175.0 174.5 148.5
Congo Brazzaville 13.8 27.7 27.7 27.7 17.7
South Africa 2.8 6.0 6.2 6.3 6.2
Ghana 16.1 32.6 32.6 32.6 32.6
Senegal 19.0 39.8 41.5 43.2 44.9
------------------ ------------ ------ ------ ----- -----
218.6 442.9 442.4 426.5 373.4
------------------ ------------ ------ ------ ----- -----
The following table provides our total undiscounted contracted
revenue by key customers as of 30 June 2021 over the life of the
contracts with local currency amounts converted at the applicable
average rate for US Dollars for the period ended 30 June 2021 held
constant. Our calculation uses the same assumptions as above. The
average remaining life of customer contracts is 7.4 years.
Percentage
Total of Total
Committed Committed
(US$m) Revenues Revenues
------------------- ---------- ----------
Multinational MNOs 3,464.5 98.7%
Others 45.9 1.3%
------------------- ---------- ----------
3,510.4 100.0%
------------------- ---------- ----------
Management cash flow
6 months ended
30 June
------------------------------------------------------ ----------------
(US$m) 2021 2020
------------------------------------------------------ -------- ------
Adjusted EBITDA 114.2 109.1
Less:
Maintenance and corporate capital additions (14.3) (7.4)
Payments of lease liabilities1 (15.2) (11.3)
Tax paid (10.9) (1.3)
------------------------------------------------------ -------- ------
Portfolio free cash flow 73.8 89.1
Cash conversion %2 65% 82%
Net payment of interest3 (44.7) (51.3)
------------------------------------------------------ -------- ------
Levered portfolio free cash flow 29.1 37.8
Discretionary capital additions4 (222.9) (30.6)
------------------------------------------------------ -------- ------
Adjusted free cash flow (193.8) 7.2
Net change in working capital5 (13.1) (21.5)
Cash paid for adjusting and EBITDA adjusting items6 (29.3) (8.7)
Cash paid in relation to Change of Control Taxes - (37.7)
Proceeds on disposal of property, plant and equipment 0.3 0.6
------------------------------------------------------ -------- ------
Free cash flow (235.9) (60.1)
Net cash flow from financing activities7 447.6 52.8
------------------------------------------------------ -------- ------
Net cash flow 211.7 (7.3)
------------------------------------------------------ -------- ------
Opening cash balance 428.7 221.1
Foreign exchange movements (0.2) (1.3)
------------------------------------------------------ -------- ------
Closing cash balance 640.2 212.5
------------------------------------------------------ -------- ------
(1) Payment of lease liabilities includes interest and principal
repayments of lease liabilities.
(2) Cash conversion % is calculated as portfolio free cash flow divided by Adjusted EBITDA.
(3) Net payment of interest corresponds to the net of 'Interest
paid' (including withholding tax) and 'Interest received' in the
condensed consolidated statement of cash flows, excluding interest
payments on lease liabilities.
(4) Discretionary capital additions includes acquisition, growth
and upgrade capital additions and excludes IFRS 3 accounting
adjustments.
(5) Net change in working capital corresponds to movements in
working capital in the condensed consolidated statement of cash
flows, excluding cash paid for adjusting and EBITDA adjusting items
and including movements in capital expenditure related working
capital.
(6) Cash paid for adjusting and EBITDA adjusting items
corresponds to cash paid in respect of items per note 4 of the
condensed consolidated financial statements - project costs, deal
costs and deposits in relation to acquisitions.
(7) Net cash flow from financing activities includes gross
proceeds from issue of equity share capital, share issue costs,
borrowing drawdowns, loan issue costs and repayment of loans in the
condensed consolidated statement of cash flows.
The measure is used to value the cash flow generated by the
business operations after expenditure incurred on maintaining
capital assets, including lease liabilities, and taxes. It is a
measure of the cash generation of the tower estate. The condensed
consolidated statement of cash flows is outlined on page 17.
Capital expenditure
The following table shows capital expenditure additions by
category during the 6 months ended 30 June:
2021 2020
------------- ------------
% of % of
Total Total
US$m Capex US$m Capex
------------ ----- ------ ---- ------
Acquisition 177.3 74.7% 10.2 26.8%
Growth 39.1 16.5% 15.1 39.7%
Upgrade 6.5 2.8% 5.3 13.9%
Maintenance 13.5 5.7% 6.9 18.2%
Corporate 0.8 0.3% 0.5 1.4%
------------ ----- ------ ---- ------
237.2 100.0% 38.0 100.0%
------------ ----- ------ ---- ------
Acquisition capex in the six months ended 30 June 2021 relates
primarily to Senegal, excluding the fair value of assets and
liabilities acquired and goodwill recognised under IFRS 3 (see Note
20 of the condensed consolidated financial statements).
Off-Balance Sheet arrangements
The Group does not have any off-balance sheet arrangements.
Indebtedness
As of 30 June 2021 and 31 December 2020, the Group's outstanding
loans and borrowings net of issue costs and excluding lease
liabilities, were US$1,280.1 million and US$989.4 million
respectively. The Group's net debt as of 30 June 2021 and 31
December 2020 was US$786.0 million and US$692.4 million with net
leverage of 3.2x and 2.9x respectively. Indebtedness and leverage
as at 30 June 2021 reflect the US$975 million Senior Notes
refinance which was completed during H2 2020 , US$300 million of
convertible bonds of which US$250m was issued in March 2021 with a
coupon of 2.875% due in 2027 and US$50m of the same notes tapped in
June 2021. Further details of the refinance are provided in Note 13
of the condensed consolidated financial statements and net debt and
net leverage details are provided in Alternative Performance
Measure section.
Risk management
The risk management and governance process has not changed since
the 2020 Annual report was published and is set out on pages 62 to
65 of the 2020 Annual report (available on the Group's website at
www.heliostowers.com) and summarised as follows.
The creation and maintenance of the Group risk register involves
the whole business with operating company and functional head input
being consolidated by Group Compliance into a register for
discussion and agreement at Executive level prior to submission to
the Audit Committee and the Board. The risk register is updated
twice a year after these discussions and a review of the external
environment for any emerging risks.
All risks are classified into six broad risk types: Strategic,
Reputational, Compliance (including legal), Finance, Operational
and People. All risks are assessed according to the probability and
consequence of being realised and a determination made to accept,
avoid, or control and mitigate, in which case mitigating controls
are clearly defined. A risk owner for all risks is identified.
During bi-annual discussions with Executive Management and
functional heads of department, potential emerging risks are also
discussed. These may result from internal developments, changes in
organisational structure/personnel, potential new products or
markets being considered or changes in the external environment
such as regulatory changes, socio-economic, political or health and
safety matters.
Emerging risks related to sustainability, climate change,
evolving legal requirements concerning modern slavery and human
rights abuses have been identified as part of the risk management
process and continue to be monitored. Due to the nature of the
operations, Brexit is not considered to be a principal risk.
Principal risks and uncertainties
There has been no change in the nature, probability or potential
impact of previously identified risks as set out on pages 62 to 65
of the 2020 Annual report (available on the Group's website at
www.heliostowers.com ). The risks are summarised as follows:
- Operational resilience
- Major quality failure or breach of contract
- Non-compliance with various laws and regulations
- Economic and political instability
- Significant exchange rate movements
- Non-compliance with licence requirements
- Loss of key personnel
- Technology risk
- Failure to remain competitive
- Failure to integrate new lines of business in new markets
- Tax disputes
- COVID-19
- Information technology failure and cyber attack risk
Control environment
The effectiveness of the Group's system of internal control is
regularly reviewed by the Board with specific consideration given
to material financial, operational and sustainable risks and
controls, with appropriate steps taken to address any issues
identified. As a result of COVID-19 management, internal audit and
the audit committee have reviewed the internal control framework to
ensure that the controls continue to operate or have been
adequately amended to operate effectively in a remote working
environment.
Impact of COVID-19
The Group's business and operations are inherently resilient
against the implications of the COVID-19 pandemic and associated
lockdowns, due to operating in the telecoms sector, which sees
continued strong demand, and through having long-term revenue
contracts with multinational MNOs. The table below provides a
summary of the impact across key areas of the Group's
operations:
Commentary Impact Assessment
------------ -------------------------------------------------------------- -------------------------------------------------------------
Workforce
& * Office staff are working from home across all * Minimal disruption to-date
Operations operating companies
* Business continuity maintained
* Field operations are in dispersed locations and
outdoor environments with personnel classified as
essential workers
* Return to work protocols are being discussed with
employee wellbeing at the core
------------ -------------------------------------------------------------- -------------------------------------------------------------
Existing
Revenue / * US$3.5 billion contracted revenues with 7.4 years * Minimal impact to existing revenue experienced
Liquidity contract duration across six countries and 99% with
multinational MNOs
* Strong liquidity
* The Group has strong liquidity with >US$1bn available,
reflecting a cash balance of US$640m and undrawn debt
facilities of US$270m at Group, ZAR 351m at Helios
Towers South Africa and EUR80m (denominated in both
XOF and EUR) at Helios Towers Senegal
------------ -------------------------------------------------------------- -------------------------------------------------------------
Customer
roll-out * Implications for rate of roll out if equipment supply * Mobile services are critical and in high demand
chains are disrupted
* Long-term customer growth strategies remain unchanged
* Strong pipeline of opportunities coming through from
customers with tenancy outlook unchanged
* Robust pipeline
------------ -------------------------------------------------------------- -------------------------------------------------------------
Supply * High quality operational performance ensured
Chain * Minimal supply chain delays have been experienced to
date
* Forward purchasing of capex and materials
------------ -------------------------------------------------------------- -------------------------------------------------------------
Situation
management * Regular monitoring and communications with Board, * Minimal disruption experienced
executive management and employees
* Cloud-based systems and group-wide video-conferencing
for smooth remote-working
------------ -------------------------------------------------------------- -------------------------------------------------------------
Going concern
The Directors also considered it appropriate to prepare the
condensed consolidated financial statements on a going concern
basis, as explained in Note 1.
Alternative Performance Measures
The Group has presented a number of Alternative Performance
Measures ("APMs"), which are used in addition to IFRS statutory
performance measures. The Group believes that these APMs, which are
not considered to be a substitute for or superior to IFRS measures,
provide stakeholders with additional helpful information on the
performance of the business. These APMs are consistent with how the
business performance is planned and reported within the internal
management reporting to the Board. Some of these measures are also
used for the purposes of setting remuneration targets.
Adjusted EBITDA and Adjusted EBITDA margin
Definition - Management de nes Adjusted EBITDA as loss before
tax for the period, adjusted for, nance costs, other gains and
losses, interest receivable, loss on disposal of property, plant
and equipment, amortisation of intangible assets, depreciation and
impairment of property, plant and equipment, depreciation of
right-of-use assets, deal costs for aborted acquisitions, deal
costs not capitalised, share-based payments and long-term incentive
plan charges, and other adjusting items. Adjusting items are
material items that are considered one-off by management by virtue
of their size and/or incidence. Adjusted EBITDA margin is
calculated as Adjusted EBITDA divided by revenue.
Purpose - The Group believes that Adjusted EBITDA and Adjusted
EBITDA margin facilitates comparisons of operating performance from
period to period and company to company by eliminating potential
differences caused by variations in capital structures (affecting
interest and finance charges), tax positions (such as the impact of
changes in effective tax rates or net operating losses) and the age
and booked depreciation on assets. The Group excludes certain items
from Adjusted EBITDA, such as loss on disposal of property, plant
and equipment and other adjusting items because it believes they
are not indicative of its underlying trading performance.
Adjusted EBITDA is reconciled to loss before tax as follows:
6 months ended
30 June
----------------
2021 2020
US$m US$m
------------------------------------------------------------- ------- -------
Adjusted EBITDA 114.2 109.1
Adjustments applied in arriving at Adjusted EBITDA:
Adjusting items:
Project costs1 - (4.6)
Deal costs2 (8.8) (0.8)
Share-based payments and long-term incentive plans3 (0.7) (0.4)
Loss on disposals of property, plant and equipment (3.2) (1.3)
Other gains and (losses) (6.2) (35.0)
Depreciation of property, plant and equipment (66.3) (63.7)
Depreciation of right-of-use assets (7.1) (4.8)
Amortisation of intangibles (1.2) (4.2)
Interest receivable 0.2 0.5
Finance costs (64.5) (77.8)
------------------------------------------------------------- ------- -------
Loss before tax (43.6) (83.0)
------------------------------------------------------------- ------- -------
(1) Project costs relate to the preparation of debt refinancing which cannot be capitalised.
(2) Deal costs comprise costs related to potential acquisitions
and the exploration of investment opportunities, which cannot be
capitalised. These comprise employee costs, professional fees,
travel costs and set up costs incurred prior to operating
activities commencing.
(3) Share-based payments and long-term incentive plan charges and associated costs.
6 months ended
30 June
----------------
2021 2020
US$m US$m
----------------------- ------- -------
Adjusted EBITDA 114.2 109.1
----------------------- ------- -------
Revenue 212.4 204.0
Adjusted EBITDA margin 54% 53%
----------------------- ------- -------
Adjusted gross profit and adjusted gross margin
Definition - Adjusted gross profit is defined as gross profit,
adding back site depreciation. Adjusted gross margin is defined as
adjusted gross profit divided by revenue.
Purpose - These measures are used to evaluate the underlying
level of gross profitability of the operations of the business,
excluding depreciation, which is the major non-cash measure
reflected in cost of sales. The Group believes that Adjusted gross
profit facilitates comparisons of operating performance from period
to period and company to company by eliminating potential
differences caused by the age and booked depreciation on assets. It
is also a proxy for the gross cash generation of its
operations.
6 months ended
30 June
----------------
2021 2020
US$m US$m
---------------------------- ------- -------
Gross profit 74.0 73.8
Add back: site depreciation 68.0 63.3
---------------------------- ------- -------
Adjusted gross profit 142.0 137.1
---------------------------- ------- -------
Revenue 212.4 204.0
Adjusted gross margin 67% 67%
---------------------------- ------- -------
Portfolio free cash flow
Definition - Portfolio free cash flow is defined as Adjusted
EBITDA less maintenance and corporate capital expenditure, payments
of lease liabilities (including interest and principal repayments
of lease liabilities) and tax paid.
Purpose - This measure is used to evaluate the cash flow
generated by the business operations after expenditure incurred on
maintaining capital assets, including lease liabilities, and taxes.
It is a measure of the cash generation of the tower estate.
6 months ended
30 June
----------------
2021 2020
US$m US$m
-------------------------------------------------- ------- -------
Adjusted EBITDA 114.2 109.1
-------------------------------------------------- ------- -------
Less: Maintenance and corporate capital additions (14.3) (7.4)
Less: Payments of lease liabilities1 (15.2) (11.3)
Less: Tax paid2 (10.9) (1.3)
-------------------------------------------------- ------- -------
Portfolio free cash flow 73.8 89.1
-------------------------------------------------- ------- -------
Cash conversion %(3) 65% 82%
------- -------
(1) Payment of lease liabilities includes interest and principal
repayments of lease liabilities.
(2) Tax paid in the 6 months ended 30 June 2020 exclude US$37.7
million paid in relation to Change of Control Taxes. See Note 6 to
the condensed consolidated financial statements.
(3) Cash conversion % is calculated as portfolio free cash flow divided by Adjusted EBITDA.
Gross debt, net debt, net leverage and cash & cash
equivalents
Definition - Gross debt is calculated as non-current loans,
current loans, and long-term and short-term lease liabilities. Net
debt is calculated as gross debt less cash and cash equivalents.
Net leverage is calculated as net debt divided by annualised
Adjusted EBITDA.
Purpose - Net debt is a measure of the Group's net indebtedness
that provides an indicator of overall balance sheet strength. It is
also a single measure that can be used to assess both the Group's
cash position and its indebtedness. The use of the term 'net debt'
does not necessarily mean that the cash included in the net debt
calculation is available to settle the liabilities included in this
measure. Net leverage is used to show how many years it would take
for a company to pay back its debt if net debt and Adjusted EBITDA
are held constant. The Group aims to maintain net leverage broadly
in the range of 3.5x-4.5x.
30 June 31 December
2021 2020
US$m US$m
------------------------------ ------- -----------
External debt(1) 1,280.1 989.4
Lease liabilities 146.1 131.7
------------------------------ ------- -----------
Gross debt 1,426.2 1,121.1
Cash and cash equivalents 640.2 428.7
Net debt 786.0 692.4
------------------------------ ------- -----------
Annualised Adjusted EBITDA(2) 243.4 240.4
------------------------------ ------- -----------
Net leverage (3) 3.2x 2.9x
------------------------------ ------- -----------
(1) External debt is presented in line with the balance sheet at
amortised cost. External debt is the total loans owed to commercial
banks and institutional investors.
(2) Annualised Adjusted EBITDA calculated as per the Senior
Notes definition as the most recent fiscal quarter multiplied by 4,
adjusted to reflect the annualised contribution from acquisitions
that have closed in the most recent fiscal quarter. This is not a
forecast of future results.
(3) Net leverage is calculated as net debt divided by annualised
Adjusted EBITDA.
Return on invested capital
Definition - Return on invested capital is defined as annualised
portfolio free cash flow divided by invested capital. Invested
capital is defined as gross property, plant and equipment and gross
intangibles, less accumulated maintenance and corporate capital
expenditure, adjusted for IFRS 3 accounting adjustments and
deferred consideration for future sites.
Purpose - This measure is used to evaluate asset efficiency and
the effectiveness of the Group's capital allocation.
30 June 31 December
2021 2020
US$m US$m
---------------------------------------------------------- ------- -----------
Property, plant and equipment 674.7 594.7
Accumulated depreciation 766.8 713.0
Accumulated maintenance and corporate capital expenditure (194.8) (180.6)
Intangible assets 119.8 23.2
Accumulated amortisation 23.2 56.4
---------------------------------------------------------- ------- -----------
Total invested capital 1,389.7 1,206.7
---------------------------------------------------------- ------- -----------
Annualised portfolio free cash flow(1) 163.7 174.4
---------------------------------------------------------- ------- -----------
Return on invested capital 12% 14%
---------------------------------------------------------- ------- -----------
(1) Annualised portfolio free cash flow is calculated as the
most recent fiscal quarter multiplied by four, adjusted to
annualise the impact of acquisitions closed during the period
Material recent developments
On 18 August 2021 Kash Pandya informed the Board of his decision
to retire as Chief Executive Officer with effect from the Company's
AGM in April 2022. Effective upon his retirement and at the Board's
request, Kash will move into a new role as non-executive Deputy
Chairman of the Company. In an orderly transition, the Board is
also pleased to announce that Tom Greenwood, currently Chief
Operating Officer, has been appointed CEO-Designate with immediate
effect. Tom will formally take up the Chief Executive Officer role
from Kash following the AGM in April 2022.
Condensed consolidated financial statements
Independent review report to Helios Towers plc
We have been engaged by the Company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 June 2021 which comprises the condensed
consolidated statement of profit or loss and other comprehensive
income, condensed consolidated statement of financial position,
condensed consolidated statement of changes in equity, condensed
consolidated statement of cash flows and related notes 1 to 23. 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 condensed set of financial statements.
Directors' responsibilities
The half-yearly financial report 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 of the United
Kingdom's Financial Conduct Authority.
As disclosed in note 2, the annual financial statements of the
group will be prepared in accordance with United Kingdom adopted
International Financial Reporting Standards. The condensed set of
financial statements included in this half-yearly financial report
has been prepared in accordance with United Kingdom adopted
International Accounting Standard 34, "Interim Financial
Reporting".
Our responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
Scope of review
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 Financial Reporting Council for use in
the United Kingdom. A review of interim financial information
consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
June 2021 is not prepared, in all material respects, in accordance
with United Kingdom adopted International Accounting Standard 34
and the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
Use of our report
This report is made solely to the Company 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 Financial
Reporting Council. Our work has been undertaken so that we might
state to the company those matters we are required to state to it
in an independent review report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company, for our review
work, for this report, or for the conclusions we have formed.
Deloitte LLP
Statutory Auditor
Birmingham, United Kingdom
18 August 2021
Condensed consolidated statement of profit or loss and other
comprehensive income (unaudited)
For the 6 months ended 30 June 2021
6 months ended
30 June
----------------
2021 2020
Note US$m US$m
------------------------------------------------------------- ---- ------- -------
Revenue 212.4 204.0
Cost of sales (138.4) (130.2)
------------------------------------------------------------- ---- ------- -------
Gross profit 74.0 73.8
------------------------------------------------------------- ---- ------- -------
Administrative expenses (43.9) (43.2)
Loss on disposal of property, plant and equipment (3.2) (1.3)
------------------------------------------------------------- ---- ------- -------
Operating profit 26.9 29.3
------------------------------------------------------------- ---- ------- -------
Interest receivable 0.2 0.5
Other gains and (losses) 16 (6.2) (35.0)
Finance costs 5 (64.5) (77.8)
------------------------------------------------------------- ---- ------- -------
Loss before tax 4 (43.6) (83.0)
------------------------------------------------------------- ---- ------- -------
Tax expense 6 (7.5) (7.8)
------------------------------------------------------------- ---- ------- -------
Loss for the period (51.1) (90.8)
------------------------------------------------------------- ---- ------- -------
Other comprehensive income/(expense):
Items that may be reclassified subsequently to profit
and loss:
Exchange differences on translation of foreign operations 3.6 (3.9)
------------------------------------------------------------- ---- ------- -------
Total comprehensive loss for the period (47.5) (94.7)
------------------------------------------------------------- ---- ------- -------
Loss attributable to:
Owners of the Company (51.1) (91.1)
Non-controlling interests - 0.3
------------------------------------------------------------- ---- ------- -------
Loss for the period (51.1) (90.8)
------------------------------------------------------------- ---- ------- -------
Total comprehensive loss attributable to:
Owners of the Company (47.5) (94.9)
Non-controlling interests - 0.2
------------------------------------------------------------- ---- ------- -------
Total comprehensive loss for the period (47.5) (94.7)
------------------------------------------------------------- ---- ------- -------
Earnings per share
Basic loss per share (cents) 21 (5.1) (9.1)
Diluted loss per share (cents) 21 (5.1) (9.1)
------------------------------- ----- -----
Condensed consolidated statement of financial position
(unaudited)
As at 30 June 2021
Audited
30 June 31 December
2021 2020
Note US$m US$m
------------------------------------ ---- ------- ------------
Non-current assets
Intangible assets 7 195.8 23.2
Property, plant and equipment 8a 674.7 594.7
Right-of-use assets 8b 129.7 109.2
Derivative financial assets 9 79.5 88.8
------------------------------------ ---- ------- ------------
1,079.7 815.9
------------------------------------ ---- ------- ------------
Current assets
Inventories 9.6 9.0
Trade and other receivables 10 181.6 137.6
Prepayments 36.7 39.3
Cash and cash equivalents 11 640.2 428.7
------------------------------------ ---- ------- ------------
868.1 614.6
------------------------------------ ---- ------- ------------
Total assets 1,947.8 1,430.5
------------------------------------ ---- ------- ------------
Equity
Share capital 12 13.5 12.8
Share premium 105.6 -
Other reserves (87.0) (87.0)
Convertible bond reserves 52.7 -
Share-based payment reserves 18.5 18.4
Treasury shares (1.7) (2.3)
Translation reserve (88.3) (91.9)
Retained earnings 229.2 280.3
------------------------------------ ---- ------- ------------
Total equity attributable to owners 242.5 130.3
------------------------------------ ---- ------- ------------
Current liabilities
Loans 13 3.3 2.6
Trade and other payables 14 245.8 174.7
Short-term lease liabilities 15 24.3 23.5
------- ------------
273.4 200.8
------------------------------------ ---- ------- ------------
Non-current liabilities
Loans 13 1,276.8 986.8
Long-term lease liabilities 15 121.8 108.2
Deferred tax liabilities 33.3 4.4
------------------------------------ ---- ------- ------------
1,431.9 1,099.4
------------------------------------ ---- ------- ------------
Total liabilities 1,705.3 1,300.2
------------------------------------ ---- ------- ------------
Total equity and liabilities 1,947.8 1,430.5
------------------------------------ ---- ------- ------------
Condensed consolidated statement of changes in equity
(unaudited)
For the 6 months ended 30 June 2021
Attributable
Share-based Convertible to owners
Share Share Other Treasury payments bond Translation Retained of the Non-controlling Total
capital premium reserves shares reserves reserves reserves earnings Company interest equity
US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m
-------------- ------- ------- -------- -------- ----------- ----------- ----------- -------- ------------ --------------- ------
Balance at 1
January 2020 12.8 - (87.0) (4.4) 19.6 - (82.7) 317.6 175.9 (0.6) 175.3
-------------- ------- ------- -------- -------- ----------- ----------- ----------- -------- ------------ --------------- ------
Loss for the
period - - - - - - - (91.1) (91.1) 0.3 (90.8)
Other
comprehensive
expense - - - - - - (3.8) - (3.8) (0.1) (3.9)
-------------- ------- ------- -------- -------- ----------- ----------- ----------- -------- ------------ --------------- ------
Total
comprehensive
(loss)/income
for the
period - - - - - - (3.8) (91.1) (94.9) 0.2 (94.7)
-------------- ------- ------- -------- -------- ----------- ----------- ----------- -------- ------------ --------------- ------
Share-based
payments - - - - 0.4 - - - 0.4 - 0.4
Exercise of
share
options - - - 1.6 (1.6) - - - - - -
Balance at 30
June 2020 12.8 - (87.0) (2.8) 18.4 - (86.5) 226.5 81.4 (0.4) 81.0
-------------- ------- ------- -------- -------- ----------- ----------- ----------- -------- ------------ --------------- ------
Balance at 1
January 2021 12.8 - (87.0) (2.3) 18.4 - (91.9) 280.3 130.3 - 130.3
-------------- ------- ------- -------- -------- ----------- ----------- ----------- -------- ------------ --------------- ------
Loss for the
period - - - - - - - (51.1) (51.1) - (51.1)
Other
comprehensive
income - - - - - - 3.6 - 3.6 - 3.6
-------------- ------- ------- -------- -------- ----------- ----------- ----------- -------- ------------ --------------- ------
Total
comprehensive
(loss)/income
for the
period - - - - - - 3.6 (51.1) (47.5) - (47.5)
-------------- ------- ------- -------- -------- ----------- ----------- ----------- -------- ------------ --------------- ------
Issue of share
capital 0.7 105.6 - - - - - - 106.3 - 106.3
Convertible
bond
reserves - - - - - 52.7 - - 52.7 - 52.7
Share-based
payments - - - - 0.7 - - - 0.7 - 0.7
Exercise of
share
options - - - 0.6 (0.6) - - - - - -
Balance at 30
June 2021 13.5 105.6 (87.0) (1.7) 18.5 52.7 (88.3) 229.2 242.5 - 242.5
-------------- ------- ------- -------- -------- ----------- ----------- ----------- -------- ------------ --------------- ------
Condensed consolidated statement of cash flows (unaudited)
For the 6 months ended 30 June 2021
6 months ended
30 June
----------------
2021 2020
Note US$m US$m
------------------------------------------------------------------------------------ ------- -------
Cash flows generated from operating activities
Loss for the period before taxation 4 (43.6) (83.0)
Adjustments for:
Other (gains) and losses 16 6.2 35.0
Finance costs 5 64.5 77.8
Interest receivable (0.2) (0.5)
Share-based payments and long-term incentive plans 0.7 0.4
Depreciation and amortisation of property, plant and
equipment 74.6 72.7
Loss on disposal of property, plant and equipment 3.2 1.3
Movement in working capital:
(Increase)/decrease in inventories (0.6) 0.4
(Increase)/decrease in trade and other receivables (39.5) 1.9
Increase in prepayments (7.7) (2.8)
Decrease in trade and other payables (11.9) (14.9)
------------------------------------------------------------------------------------ ------- -------
Cash generated from operations 45.7 88.3
Interest paid (46.2) (56.0)
Tax paid 6 (10.9) (39.0)
------------------------------------------------------------------------------------ ------- -------
Net cash used in operating activities (11.4) (6.7)
------------------------------------------------------------------------------------ ------- -------
Cash flows from investing activities
Payments to acquire property, plant and equipment (49.2) (51.6)
Payments to acquire intangible assets (1.9) -
Proceeds on disposal of property, plant and equipment 0.3 0.6
Business acquisition 20 (167.4) -
Interest received 0.2 0.5
------------------------------------------------------------------------------------ ------- -------
Net cash used in investing activities (218.0) (50.5)
------------------------------------------------------------------------------------ ------- -------
Cash flows from financing activities
Gross proceeds from issue of equity share capital 109.3 -
Share issue costs (1.0) -
Loan drawdowns 351.8 756.5
Loan issue costs (12.5) (15.0)
Repayment of loan - (688.7)
Repayment of lease liabilities (6.5) (2.9)
Net cash generated from financing activities 441.1 49.9
------------------------------------------------------------------------------------ ------- -------
Foreign exchange on translation movements (0.2) (1.3)
Net increase/(decrease) in cash and cash equivalents 211.7 (7.3)
Cash and cash equivalents at the beginning of period 428.7 221.1
------------------------------------------------------------------------------------ ------- -------
Cash and cash equivalents at end of period 640.2 212.5
------------------------------------------------------------------------------------ ------- -------
Notes to the condensed consolidated financial statements
(unaudited)
For the 6 months ended 30 June 2021
1. General Information
Helios Towers plc is a public company incorporated in the
UK.
Going concern
The Directors believe that the Group is well placed to manage
its business risks successfully, despite the current uncertain
economic outlook in the wider economy. The Group's forecasts and
projections, taking account of possible changes in trading
performance, show that the Group should remain adequately liquid
and should operate within the covenant levels of its current debt
facilities. The Directors consider it appropriate to adopt the
going concern basis of preparation for the condensed consolidated
financial statements.
As part of their regular assessment of the Group's working
capital and financing position, the Directors have prepared a
detailed trading and cash flow forecast for a period which covers
at least 12 months after the date of approval of the interim
financial statements. As at 30 June 2021 Helios Towers had a strong
liquidity position, with approximately US$390 million of undrawn
facilities and US$640 million of cash and cash equivalents (see
Note 11). In assessing the forecast, the Directors have
considered:
-- trading risks presented by the current economic conditions in the operating markets;
-- the impact of macroeconomic factors, particularly interest rates and foreign exchange rates;
-- the status of the Group's financial arrangements;
-- progress made in developing and implementing cost reduction
programmes and operational improvements; and
-- mitigating actions available should business activities fall
behind current expectations, including the deferral of
discretionary overheads and restricting cash outflows.
In particular, the Directors have considered the impact of
COVID-19 on the Group's operations. The Directors have acknowledged
the latest guidance on going concern as issued by the Financial
Reporting Council in June 2020 and December 2020 and the thematic
review published in July 2020. Management have considered the
latest forecasts available to them and additional sensitivity
analysis has been prepared to consider any reduction in anticipated
levels of Adjusted EBITDA and operating profit arising from various
scenarios.
The Directors continue to consider it appropriate to adopt the
going concern basis of accounting in preparing the interim
financial information. Forecast liquidity has been assessed under a
number of stressed scenarios and a reverse stress test was
performed to support this assertion.
2. Accounting Policies
Basis of preparation
The interim financial statements of Helios Towers plc and its
subsidiaries are prepared using accounting policies consistent with
International Financial Reporting Standards ("IFRS") as adopted by
the United Kingdom, taking into account IFRS Interpretations
Committee (IFRS IC) interpretations.
The condensed set of financial statements included in this
interim financial report has been prepared in accordance with
International Accounting Standard 34 'Interim Financial Reporting',
as issued by the International Accounting Standards Board.
Accounting policies are consistent with those adopted in the
last statutory financial statements of Helios Towers plc and the
audit opinion was unmodified. The information as of 31 December
2020 has been extracted from the audited financial statements of
Helios Towers plc for the year ended 31 December 2020. These
condensed financial statements do not constitute statutory
financial statements under the Companies Act 2006.
The preparation of financial statements in conformity with IFRS
requires the use of estimates and assumptions that affect the
reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and
expenses during the reporting period. Although these estimates are
based on management's best knowledge of the amount, event or
actions, actual results ultimately may differ from those
estimates.
Judgements and estimates
Judgements and estimates are consistent with those adopted in
the last statutory financial statements of Helios Towers plc. The
Directors have considered the impact of events in the half year
including the ongoing effects of COVID-19 on these judgements and
estimates and still consider them appropriate.
3. Segmental reporting
The following segmental information is presented in a consistent
format with management information considered by the CEO of each
operating segment, and the CEO, COO and CFO of the Group, who are
considered to be the chief operating decision makers ('CODMs').
Operating segments are determined based on geographical location.
All operating segments have the same business of operating and
maintaining telecoms towers and renting space on such towers.
Accounting policies are applied consistently for all operating
segments. The segment operating result used by CODMs is Adjusted
EBITDA, which is defined in Note 4.
Total
Congo South operating Group
6 months ended Tanzania DRC Brazzaville Ghana Africa Senegal companies Corporate Total
30 June 2021 US$m US$m US$m US$m US$m US$m US$m US$m US$m
------------------- -------- ------ ------------ ----- ------- ------- ---------- --------- ------
Revenue 84.1 85.5 13.9 21.4 2.8 4.7 212.4 - 212.4
Adjusted gross
margin1 69% 65% 64% 69% 73% 60% 67% - 67%
Adjusted EBITDA(2) 55.6 49.7 6.5 12.7 1.2 2.3 128.0 (13.8) 114.2
Adjusted EBITDA
margin(3) 66% 58% 47% 59% 43% 49% 60% - 54%
Financing costs:
Interest costs (17.6) (24.7) (6.0) (4.3) (2.6) (1.4) (56.6) (3.5) (60.1)
Foreign exchange
differences (0.4) 0.2 (2.7) - - (0.1) (3.0) (1.4) (4.4)
------------------- -------- ------ ------------ ----- ------- ------- ---------- --------- ------
Total financing
costs (18.0) (24.5) (8.7) (4.3) (2.6) (1.5) (59.6) (4.9) (64.5)
------------------- -------- ------ ------------ ----- ------- ------- ---------- --------- ------
Total
Congo South operating Group
6 months ended Tanzania DRC Brazzaville Ghana Africa Senegal companies Corporate Total
30 June 2020 US$m US$m US$m US$m US$m US$m US$m US$m US$m
------------------- -------- ------ ------------ ----- ------- ------- ---------- --------- ------
Revenue 83.2 85.4 12.5 21.6 1.3 - 204.0 - 204.0
Adjusted Gross
margin1 67% 65% 69% 74% 76% - 67% - 67%
Adjusted EBITDA(2) 51.0 49.0 5.7 13.7 0.1 - 119.5 (10.4) 109.1
Adjusted EBITDA
margin(3) 61% 57% 46% 63% 8% - 59% - 53%
Financing costs:
Interest costs (17.6) (24.6) (4.6) (3.9) (3.0) - (53.7) 6.3 (47.4)
Early redemption
expenses(4) - - - - - - - (23.9) (23.9)
Foreign exchange
differences (1.1) 0.1 (0.1) (1.2) (2.8) - (5.1) (1.4) (6.5)
------------------- -------- ------ ------------ ----- ------- ------- ---------- --------- ------
Total financing
costs (18.7) (24.5) (4.7) (5.1) (5.8) - (58.8) (19.0) (77.8)
------------------- -------- ------ ------------ ----- ------- ------- ---------- --------- ------
(1) Adjusted gross margin means gross profit, adding back site depreciation, divided by revenue.
(2) Adjusted EBITDA is loss before tax for the period, adjusted
for, nance costs, other gains and losses, interest receivable, loss
on disposal of property, plant and equipment, amortisation of
intangible assets, depreciation and impairment of property, plant
and equipment, depreciation of right-of-use assets, recharged
depreciation, deal costs for aborted acquisitions, deal costs not
capitalised, share-based payments and long-term incentive plan
charges, and other adjusting items.
(3) Adjusted EBITDA margin is Adjusted EBITDA divided by revenue.
(4) Includes call premium and release of transaction costs of
US$13.7 million and US$10.2 million respectively, related to the
early redemption of the US$600 million Senior Notes.
4. Reconciliation of aggregate segment Adjusted EBITDA to loss
before tax
The key segment operating result used by chief operating
decision makers (CODMs) is Adjusted EBITDA.
Management de nes Adjusted EBITDA as loss before tax for the
period, adjusted for nance costs, other gains and losses, interest
receivable, loss on disposal of property, plant and equipment,
amortisation of intangible assets, depreciation and impairment of
property, plant and equipment, depreciation of right-of-use assets,
deal costs for aborted acquisitions, deal costs not capitalised,
share-based payments and long-term incentive plan charges, and
other adjusting items. Adjusting items are material items that are
considered one-off by management by virtue of their size and/or
incidence.
The Group believes that Adjusted EBITDA facilitates comparisons
of operating performance from period to period and company to
company by eliminating potential differences caused by variations
in capital structures (affecting interest and finance charges), tax
positions (such as the impact of changes in effective tax rates or
net operating losses) and the age and booked depreciation on
assets. The Group excludes certain items from Adjusted EBITDA, such
as loss on disposal of property, plant and equipment, and adjusting
items because it believes they are not indicative of its underlying
trading performance.
Adjusted EBITDA is reconciled to loss before tax as follows:
6 months ended
30 June
----------------
2021 2020
US$m US$m
------------------------------------------------------------- ------- -------
Adjusted EBITDA 114.2 109.1
Adjustments applied in arriving at Adjusted EBITDA:
Adjusting items:
Project costs1 - (4.6)
Deal costs2 (8.8) (0.8)
Share-based payments and long-term incentive plans3 (0.7) (0.4)
Loss on disposals of property, plant and equipment (3.2) (1.3)
Other gains and (losses) (note 16) (6.2) (35.0)
Depreciation of property, plant and equipment (66.3) (63.7)
Depreciation of right-of-use assets (7.1) (4.8)
Amortisation of intangibles (1.2) (4.2)
Interest receivable 0.2 0.5
Finance costs (64.5) (77.8)
------------------------------------------------------------- ------- -------
Loss before tax (43.6) (83.0)
------------------------------------------------------------- ------- -------
(1) Project costs relate to the preparation of debt refinancing which cannot be capitalised.
(2) Deal costs comprise costs related to potential acquisitions
and the exploration of investment opportunities, which cannot be
capitalised. These comprise employee costs, professional fees,
travel costs and set up costs incurred prior to operating
activities commencing.
(3) Share-based payments and long-term incentive plan charges and associated costs.
5. Finance costs
6 months ended
30 June
----------------
2021 2020
US$m US$m
----------------------------------- ------- -------
Foreign exchange differences 4.4 6.5
Interest cost 51.2 39.3
Early redemption expenses1 - 23.9
Interest cost on lease liabilities 8.9 8.1
----------------------------------- ------- -------
64.5 77.8
----------------------------------- ------- -------
(1) Includes call premium and release of transaction costs of
US$13.7 million and US$10.2 million respectively, relating to the
early redemption of the US$600 million Senior Notes.
6. Tax expense
Entities in Congo Brazzaville and Senegal are loss making,
however minimum income tax is levied as stipulated by law in these
jurisdictions. DRC, Ghana, Tanzania and one entity in South Africa
are profit making and subject to income tax on taxable profits.
The tax expense for the period is calculated by reference to the
forecast full year tax rate and applied to profits for the period,
adjusted for actual tax on adjusting items. The effective tax rate,
calculated by reference to the statutory tax rates which are
applicable to the Group's operating subsidiaries is approximately
30% for the profitable jurisdictions. A tax charge is reported in
the consolidated financial statements despite a consolidated loss
for accounting purposes, as a result of losses recorded in
Mauritius and UK which are not able to be group relieved against
taxable profits in the operating company jurisdictions.
6 months ended
30 June
----------------
2021 2020
Tax expense US$m US$m
------------------ ------- -------
Total current tax 8.0 6.9
Deferred tax (0.5) 0.9
------------------ ------- -------
7.5 7.8
------------------ ------- -------
6 months ended
30 June
----------------
2021 2020
Tax paid US$m US$m
------------------------------------------------------- ------- -------
Change of Control tax funded by escrow restricted cash - 37.7
Income tax 10.9 1.3
------------------------------------------------------- ------- -------
10.9 39.0
------------------------------------------------------- ------- -------
7. Intangible assets
Right Computer
Customer Customer Colocation of first Non-compete software
contracts relationships Goodwill rights refusal agreement and licences Total
US$m US$m US$m US$m US$m US$m US$m US$m
--------------------- ---------- -------------- -------- ---------- --------- ----------- ------------- ------
Cost
At 1 January 2021 3.3 6.8 4.9 8.8 35.0 1.1 19.7 79.6
Additions during
the period - - - - - - 1.9 1.9
Additions on
acquisition
(note 20) - 171.0 5.6 - - - - 176.6
Disposals - - - - (35.0) - - (35.0)
Foreign exchange 0.1 (4.2) - - - - - (4.1)
--------------------- ---------- -------------- -------- ---------- --------- ----------- ------------- ------
At 30 June 2021 3.4 173.6 10.5 8.8 - 1.1 21.6 219.0
--------------------- ---------- -------------- -------- ---------- --------- ----------- ------------- ------
Amortisation
At 1 January 2021 (0.4) (0.8) - (0.9) (35.0) (0.3) (19.0) (56.4)
Charge for period (0.1) (0.3) - (0.3) - (0.1) (0.4) (1.2)
Disposals - - - - 35.0 - - 35.0
Foreign exchange - (0.6) - - - - - (0.6)
--------------------- ---------- -------------- -------- ---------- --------- ----------- ------------- ------
At 30 June 2021 (0.5) (1.7) - (1.2) - (0.4) (19.4) (23.2)
--------------------- ---------- -------------- -------- ---------- --------- ----------- ------------- ------
Net book value
--------------------- ---------- -------------- -------- ---------- --------- ----------- ------------- ------
At 30 June 2021 2.9 171.9 10.5 7.6 - 0.7 2.2 195.8
--------------------- ---------- -------------- -------- ---------- --------- ----------- ------------- ------
At 31 December
2020 2.9 6.0 4.9 7.9 - 0.8 0.7 23.2
--------------------- ---------- -------------- -------- ---------- --------- ----------- ------------- ------
Impairment
Goodwill acquired in a business combination is allocated, at
acquisition, to the cash generating units (CGUs) that are expected
to benefit from that business combination. The Group tests goodwill
annually for impairment or more frequently if there are indications
that goodwill might be impaired. The Group's CGUs are aligned to
its operating segments. No impairment indicators were identified
during the period.
8a. Property, plant and equipment
Fixtures Motor Leasehold
IT equipment and fittings vehicles Site assets Land improvements Total
US$m US$m US$m US$m US$m US$m US$m
------------------------- ------------ ------------- --------- ----------- ----- ------------- -------
Cost
At 1 January 2021 22.8 1.5 4.6 1,268.8 6.8 3.2 1,307.7
Additions during the
period 1.5 0.3 0.2 64.2 - 0.3 66.5
Additions on acquisition
(note 20) - - - 85.0 - - 85.0
Disposals - - - (12.5) - - (12.5)
Foreign exchange - - - (4.8) (0.4) - (5.2)
------------------------- ------------ ------------- --------- ----------- ----- ------------- -------
At 30 June 2021 24.3 1.8 4.8 1,400.7 6.4 3.5 1,441.5
------------------------- ------------ ------------- --------- ----------- ----- ------------- -------
Depreciation
At 1 January 2021 (15.4) (1.4) (3.3) (689.9) (0.1) (2.9) (713.0)
Charge for period (2.4) (0.1) (0.3) (63.4) - (0.1) (66.3)
Disposals - - - 9.4 - - 9.4
Foreign exchange (0.1) - - 3.2 - - 3.1
------------------------- ------------ ------------- --------- ----------- ----- ------------- -------
At 30 June 2021 (17.9) (1.5) (3.6) (740.7) (0.1) (3.0) (766.8)
------------------------- ------------ ------------- --------- ----------- ----- ------------- -------
Net book value
------------------------- ------------ ------------- --------- ----------- ----- ------------- -------
At 30 June 2021 6.4 0.3 1.2 660.0 6.3 0.5 674.7
------------------------- ------------ ------------- --------- ----------- ----- ------------- -------
At 31 December 2020 7.4 0.1 1.3 578.9 6.7 0.3 594.7
------------------------- ------------ ------------- --------- ----------- ----- ------------- -------
8b. Right-of-use assets
30 June 31 December
2021 2020
US$m US$m
----------------------------------------------------------- ------- -----------
Right-of-use assets by class of underlying assets carrying
value
Land 123.8 105.4
Buildings 5.8 3.7
Motor vehicles 0.1 0.1
----------------------------------------------------------- ------- -----------
129.7 109.2
----------------------------------------------------------- ------- -----------
Depreciation charge for right-of-use assets
Land 5.9 12.7
Buildings 1.2 1.3
----------------------------------------------------------- ------- -----------
7.1 14.0
----------------------------------------------------------- ------- -----------
9. Derivative financial instruments
The amounts recognised in the statement of financial position
are as follows:
30 June 31 December
2021 2020
US$m US$m
-------------------------------------------------------- ------- -----------
Balance brought forward 88.8 41.0
Change in fair value of derivative financial instrument
- US$600m 9.125% Senior Notes 2022 - (41.0)
Derivative financial instrument - US$975m 7.000% Senior
Notes 2025 (6.2) 85.7
Currency forward contracts (3.1) 3.1
-------------------------------------------------------- ------- -----------
Balance carried forward 79.5 88.8
-------------------------------------------------------- ------- -----------
The derivatives represent the fair value of the put and call
options embedded within the terms of the Senior Notes. The call
options give the Group the right to redeem the Senior Notes
instruments at a date prior to the maturity date (18 December
2025), in certain circumstances and at a premium over the initial
notional amount.
The put option provides the holders with the right (and the
Group with an obligation) to settle the Senior Notes before their
redemption date in the event of a change in control resulting in a
rating downgrade (as defined in the terms of the Senior Notes,
which also includes a major asset sale), and at a premium over the
initial notional amount. The options are fair valued using an
option pricing model that is commonly used by market participants
to value such options and makes the maximum use of market inputs,
relying as little as possible on the entity's specific inputs and
making reference to the fair value of similar instruments in the
market. The options are considered a Level 3 financial instrument
in the fair value hierarchy of IFRS 13, owing to the presence of
unobservable inputs. Where Level 1 (market observable) inputs are
not available, the Helios Group engages a third party qualified
valuer to perform the valuation. Management works closely with the
qualified external valuer to establish the appropriate valuation
techniques and inputs to the model. The Senior Notes are quoted and
it has an embedded derivative. The fair value of the embedded
derivative is the difference between the quoted price of the Senior
Notes and the fair value of the host contract (the Senior Notes
excluding the embedded derivative). The fair value of the Senior
Notes as at the Valuation Date has been sourced from an independent
third party data vendor. The fair value of the host contract is
calculated by discounting the Senior Notes' future cash flows
(coupons and principal payment) at USD 3-month LIBOR plus Helios
Towers' credit spread. For the valuation date of 30 June 2021, a
relative 1% increase in credit spread would result in an
approximate US$1.1 million decrease in the valuation of the
embedded derivatives.
As at the reporting date, the call option had a fair value of
US$79.5 million (31 December 2020: US$85.7 million on the US$975
million 7.000% Senior Notes 2025), while the put option had a fair
value of US$0 million (31 December 2020: US$0 million).
10. Trade and other receivables
30 June 31 December
2021 2020
US$m US$m
-------------------------------------- ------- -----------
Trade receivables 106.7 50.9
Loss allowance (6.4) (5.8)
-------------------------------------- ------- -----------
100.3 45.1
Trade receivable from related parties - 37.1
-------------------------------------- ------- -----------
100.3 82.2
Other receivables 73.3 49.1
VAT & Withholding tax receivable 8.0 6.3
-------------------------------------- ------- -----------
181.6 137.6
-------------------------------------- ------- -----------
The Group measures the loss allowance for trade receivables and
trade receivables from related parties at an amount equal to
lifetime expected credit losses ('ECL'). The expected credit losses
on trade receivables are estimated using a provision matrix by
reference to past default experience of the debtor and an analysis
of the debtor's current financial position, adjusted for factors
that are specific to the debtors, general economic conditions of
the industry in which the debtors operate and an assessment of both
the current as well as the forecast direction of conditions at the
reporting date. Loss allowance expense is included within cost of
sales in the Consolidated Income Statement.
There has been no change in the estimation techniques or
significant assumptions made during the current reporting period.
Interest can be charged on past due debtors. The normal credit
period of services is 30 days.
Other receivables mainly comprise of accrued income, sundry
receivables and Escrow receivables.
Of the trade receivables balance at 30 June 2021, 87% (31
December 2020: 84%) is due from five of the Group's largest
customers. The Group does not hold any collateral or other credit
enhancements over these balances nor does it have a legal right of
offset against any amounts owed by the Group to the
counterparty.
Debtor days
The Group calculates debtor days as set out in the table below.
It considers its most relevant customer receivables exposure on a
given reporting date to be the amount of receivables due in
relation to the revenue that has been reported up to that date. It
therefore defines its net receivables as the total trade
receivables and accrued revenue, less loss allowance and deferred
income that has not yet been settled.
30 June 31 December
2021 2020
US$m US$m
----------------------- ------- -----------
Trade receivables1 106.7 88.0
Accrued Revenue2 2.6 11.0
Less: Loss allowance (6.4) (5.8)
Less: Deferred income3 (32.3) (32.6)
----------------------- ------- -----------
Net Receivables 70.6 60.6
----------------------- ------- -----------
Revenue 212.4 414.0
----------------------- ------- -----------
Debtor days 60 53
----------------------- ------- -----------
(1) Trade receivables, including related parties.
(2) Reported within other receivables.
(3) Deferred income, as per Note 14, has been adjusted for
US$18.9 million (2020: US$18.4 million) in respect of amounts
settled by customers at the balance sheet date.
The increase in debtor days at 30 June 2021 is primarily due to
the inclusion of Senegal for the first time, where we have invoiced
customers who have payment terms which extend over the period end,
customers where payments expected in June were received after the
period end and discussions which are ongoing with customers who
have past due debtors. In determining the recoverability of a trade
receivable, the Group considers any change in the credit quality of
the trade receivable from the date credit was initially granted up
to the reporting date. The Directors consider that the carrying
amount of trade and other receivables is approximately equal to
their fair value.
Terms and conditions attached to receivable balances due by
related parties and are disclosed in Note 18.
11. Cash and cash equivalents
30 June 31 December
2021 2020
US$m US$m
-------------------- ------- -----------
Bank balances 640.2 179.7
Short-term deposits - 249.0
-------------------- ------- -----------
640.2 428.7
-------------------- ------- -----------
12. Share capital
30 June 2021 31 December 2020
------------------- -------------------
Number Number of
of shares US$m shares US$m
------------------------------------------ ------------- ---- ------------- ----
Authorised, issued and fully paid
Ordinary share capital class A of GBP0.01 1,048,000,000 13.5 1,000,000,000 12.8
1,048,000,000 13.5 1,000,000,000 12.8
------------------------------------------ ------------- ---- ------------- ----
On 16 June 2021 the Company issued 48 million new Ordinary
Shares in the capital of the Company. This raised gross proceeds of
US$109.3m.
13. Loans
30 June 31 December
2021 2020
US$m US$m
Loans 1,280.1 989.4
Total borrowings 1,280.1 989.4
----------------- ------- -----------
Current 3.3 2.6
Non-current 1,276.8 986.8
----------------- ------- -----------
1,280.1 989.4
----------------- ------- -----------
In March 2021 the Group issued US$250 million of convertible
bonds with a coupon of 2.875%, due in 2027. The initial conversion
price was set at US$2.9312. The conversion price is subject to
adjustments for any dividend in cash or in kind, as well as
customary anti-dilution adjustments, pursuant to the terms and
conditions of the convertible bonds. The bondholders have the
option to convert at any time up to seven business days prior to
the final maturity date. Helios Towers have the right to redeem the
bonds at their principal amount, together with accrued but unpaid
interest up to the optional redemption date, from April 2026, if
the Helios Towers share price has traded above 130% of the
conversion price on twenty out of the previous thirty days prior to
the redemption notice.
In June 2021 the Group tapped the above bond for an aggregate
principal amount of US$50 million. On initial recognition of the
convertible bond and the convertible bond tap, a liability and
equity reserve component were recognised being US$242.4 million and
US$52.7 million respectively including transaction costs.
On 18 June 2020 HTA Group, Ltd., a wholly owned subsidiary of
Helios Towers plc, issued US$750 million of 7.000% Senior Notes due
2025, guaranteed on a senior basis by Helios Towers plc and certain
of its direct and indirect subsidiaries. The Notes were issued at
an issue price of 99.439% of the principal amount.
The proceeds of the Notes were used (i) to redeem US$600 million
of HTA Group's outstanding Senior Notes due 2022 (plus accrued
interest), (ii) to repay all amounts outstanding under its US$125
million term facility (of which US$75 million was outstanding),
(iii) to pay certain fees and expenses in relation to the Offering
and (iv) with excess funds available for general corporate
purposes.
In addition, on 9 September 2020 HTA Group, Ltd issued a further
US$225 million aggregate principal amount of its 7.000% Senior
Notes due 2025. The Additional Notes will be treated as a single
class together with the Original Notes for all purposes under the
indenture. After giving effect to the issuance of these Additional
Notes, the outstanding aggregate principal amount of Notes will be
US$975 million.
HTA Group also entered into a five-year US$200 million term
facility with borrowing availability in US dollars for the general
corporate purposes (including acquisitions) of the Company and
certain of its subsidiaries. This new term facility replaced the
existing US$125 million term facility, which was cancelled upon
completion of the Offering on 19 June 2020. Transactions fees
related to this are reported in Prepayments.
Additionally, HTA Group entered into a revolving credit facility
(with a 4.5-year tenor) with borrowing availability in US dollars
for the purpose of financing or refinancing the general corporate
and working capital needs of the Company and certain of its
subsidiaries. Commitments under the new revolving credit facility
amount to US$70 million and replaced the previous US$60 million
revolving credit facility, which was also cancelled on 19 June
2020. Transactions fees related to this are reported in
Prepayments.
The current portion of borrowings relates to accrued interest on
the bonds and term loan interest payable within one year of the
balance sheet date.
Loans are classified as financial liabilities and measured at
amortised cost.
14. Trade and other payables
30 June 31 December
2021 2020
US$m US$m
--------------------------------------- ------- -----------
Trade payables 15.1 12.7
Deferred income 51.2 51.0
Deferred consideration 61.6 4.1
Other payables and accruals 90.0 75.1
VAT, Withholding and other tax payable 27.9 31.8
--------------------------------------- ------- -----------
245.8 174.7
--------------------------------------- ------- -----------
Trade payables and accruals principally comprise amounts
outstanding for trade purchases and ongoing costs. The average
credit period taken for trade purchases is 30 days (2020: 27 days).
Payable days are calculated as trade payables and payables to
related parties, divided by cost of sales plus administration
expenses less staff costs and depreciation and amortisation. No
interest is charged on trade payables. The Group has financial risk
management policies in place to ensure that all payables are paid
within the pre-agreed credit terms. Amounts payable to related
parties are unsecured, interest free and repayable on demand.
The Directors consider the carrying amount of trade payables
approximates to their fair value due to their short-term
nature.
15. Lease liabilities
30 June 31 December
2021 2020
US$m US$m
----------------------------- ------- -----------
Short-term lease liabilities
Land 21.4 22.4
Buildings 2.9 1.1
----------------------------- ------- -----------
24.3 23.5
----------------------------- ------- -----------
Long-term lease liabilities
Land 118.9 105.0
Buildings 2.8 3.1
Motor vehicles 0.1 0.1
---------------------------- ----- -----
121.8 108.2
---------------------------- ----- -----
The below undiscounted cash flows do not include escalations
based on CPI or other indexes which change over time. Renewal
options are considered on a case by case basis with judgements
around the lease term being based on management's contractual
rights and their current intentions.
The total cash paid on leases in the 6 months ended 30 June 2021
was US$15.2 million (6 months ended 30 June 2020: US$11.3
million).
The profile of the outstanding undiscounted contractual payments
fall due as follows:
Within
1 year 1-5 years 5+ years Total
US$m US$m US$m US$m
----------------- ------- --------- -------- -----
30 June 2021 24.3 96.4 328.8 449.5
----------------- ------- --------- -------- -----
31 December 2020 23.5 83.9 347.2 454.6
----------------- ------- --------- -------- -----
16. Other gains and (losses)
6 months ended
----------------
30 June 30 June
2021 2020
US$m US$m
------------------------------------------------------------- ------- -------
Fair value (loss) / gain on derivative financial instruments (6.2) (37.6)
Fair value gain on movement in contingent consideration - 2.6
------------------------------------------------------------- ------- -------
(6.2) (35.0)
------------------------------------------------------------- ------- -------
17. Uncompleted performance obligations
The table below represents undiscounted uncompleted performance
obligations at the end of the reporting period. This is total
revenue which is contractually due to the Group, subject to the
performance of the obligation of the Group related to these
revenues.
30 June 31 December
2021 2020
US$m US$m
------------------------- ------- -----------
Total contracted revenue 3,510.4 2,842.8
------------------------- ------- -----------
Contracted revenue
The following table provides our total undiscounted contracted
revenue by country as of 30 June 2021 for each of the periods from
2021 to 2025, with local currency amounts converted at the
applicable average rate for US Dollars for the period ended 30 June
2021 held constant. Our contracted revenue calculation for each
year presented assumes: (i) no escalation in fee rates, (ii) no
increases in sites or tenancies other than our committed
colocations, (iii) our customers do not utilise any cancellation
allowances set forth in their MLAs, (iv) our customers do not
terminate MLAs early for any reason and (v) no automatic
renewal.
Year ended 31 December
----------------------------
6 months
to
31 December
2021 2022 2023 2024 2025
US$m US$m US$m US$m US$m
------------------ ------------ ------ ------ ----- -----
Tanzania 81.9 164.3 159.4 142.2 123.5
DRC 85.0 172.5 175.0 174.5 148.5
Congo Brazzaville 13.8 27.7 27.7 27.7 17.7
South Africa 2.8 6.0 6.2 6.3 6.2
Ghana 16.1 32.6 32.6 32.6 32.6
Senegal 19.0 39.8 41.5 43.2 44.9
------------------ ------------ ------ ------ ----- -----
218.6 442.9 442.4 426.5 373.4
------------------ ------------ ------ ------ ----- -----
18. Related party transactions
Balances and transactions between the Company and its
subsidiaries, which are related parties, have been eliminated on
consolidation and are not disclosed in this note.
During the period, the Group companies entered into the
following commercial transactions with related parties.
6 months ended 6 months ended
30 June 2021 30 June 2020
-------------------- --------------------
Income Income
from from
tower Purchase tower Purchase
services of goods services of goods
US$m US$m US$m US$m
---------------------------------------- --------- --------- --------- ---------
Millicom Holding B.V. and subsidiaries1 - - 35.9 -
Nepic (Pty) Ltd2 - - 0.2 -
Vulatel (Pty) Ltd2 - - - 0.1
---------------------------------------- --------- --------- --------- ---------
- - 36.1 0.1
---------------------------------------- --------- --------- --------- ---------
The following amounts were outstanding at the reporting
date:
As at 30 June As at 31 December
2021 2020
--------------- -------------------
Amount Amount Amount Amount
owed owed owed owed
by to by to
US$m US$m US$m US$m
---------------------------------------- ------- ------ --------- --------
Millicom Holding B.V. and subsidiaries1 - - 31.1 -
Vulatel (Pty) Ltd2 - - 0.1 0.1
SA Towers Proprietary Limited2 - - - 1.2
Nepic (Pty) Ltd2 - - 0.1 -
---------------------------------------- ------- ------ --------- --------
- - 31.3 1.3
---------------------------------------- ------- ------ --------- --------
(1) Millicom Holding B.V is no longer a related party of Helios Towers plc as of November 2020.
(2) No longer classified as related parties as of November 2020 as their shares were sold.
The amounts outstanding are unsecured and will be settled in
cash. No guarantees have been given or received. No provisions have
been made for doubtful debts in respect of the amounts owed by
related parties.
Amounts receivable from the related parties related to other
group companies are short-term and carry interest varying from 0%
to 10% per annum charged on the outstanding trade and other
receivable balances (note 10).
19. Contingencies
In the year ended 31 December 2020, the Congo Brazzaville tax
authority issued an assessment on a number of taxes including VAT
and corporate income tax for the years 2016 and 2017. US$0.2
million has been paid in respect of property build tax, and the
remaining US$2.8 million is subject to an ongoing appeal
process.
In Ghana, a change of control event was triggered on 2 June 2021
and the Ghana Revenue Authority has been notified. At IPO in
October 2019, pre-IPO shareholders set aside funds to cover the
Ghana change of control tax liability, which falls due no later
than 30 April 2022, which is also the deadline to submit the
statutory tax filings to the Ghana tax authority. At the balance
sheet date any measurement of the future tax outflow for HT Ghana
cannot be reliably established.
In the half year ending 30 June 2021, the Tanzania Revenue
Authority issued an initial assessment on a number of taxes
including corporate income tax, withholding tax and stamp duty for
the financial years ending 2015 to 2018 inclusive. Of the initial
claim, US$81 million relates to corporate income tax, US$7.5
million for withholding tax and US$0.4 million for stamp duty.
Following an enquiry regarding change of control tax, a response
has been received and we are in ongoing discussions with the TRA to
ensure our position is understood. We remain of the view that we
are adequately provided for the Change of Control Tax. The initial
assessments for all of these matters are in early stages of review
with local tax experts and as such the impact, if any, is unknown
at this time. A separate assessment was made for VAT and payroll
taxes which have been agreed with the tax authority and fully
settled at the balance sheet date. The Directors are working with
their advisers and are in discussion with the tax authorities to
bring the matter to conclusion based on the facts. The Directors
believe that the potential future cash outflows in relation to the
tax audit are not considered probable and cannot be measured
reliably.
Other tax, and regulatory proceedings, claims and unresolved
disputes are pending against Helios Towers in respect of which the
timing of resolution and potential outcome (including any future
financial obligations) are uncertain and no provisions have been
recognised in relation to these matters.
Legal claims
Other legal and regulatory proceedings, claims and unresolved
disputes are pending against Helios Towers in respect of which the
timing of resolution and potential outcome (including any future
financial obligations) are uncertain and no provisions have been
recognised in relation to these matters.
20. Acquisitions
On 18 May 2021, the Group completed the first closing of sites
of the previously announced transaction with Free Senegal. The
Group has acquired the passive infrastructure on 1,207 sites,
colocation contracts and certain employee contracts. The Group has
treated this as a single business combination transaction and
accounted for it in accordance with IFRS 3 - Business Combinations
('IFRS 3') using the acquisition method. The total consideration in
respect of the transaction was US$226.9m. Goodwill arising on this
business combination has been allocated to the Senegal CGU. This
acquisition is in line with the Group's strategy.
The business combination had the following provisional effect on
the Group's assets and liabilities:
18 May
2021
Provisional
Identifiable assets acquired US$m
-------------------------------------------- ------------
Assets
Fair value of property, plant and equipment 85.0
Fair value of intangible assets 171.0
Right of use assets 17.5
--------------------------------------------- ------------
Total assets 273.5
--------------------------------------------- ------------
Liabilities
Other liabilities (4.8)
Lease liabilities (15.2)
Deferred income (1.9)
Deferred taxation (30.3)
--------------------------------------------- ------------
Total liabilities (52.2)
--------------------------------------------- ------------
Total net identifiable assets 221.3
--------------------------------------------- ------------
Goodwill on acquisition 5.6
--------------------------------------------- ------------
Total consideration 226.9
--------------------------------------------- ------------
Consideration paid in cash 167.4
Deferred consideration 59.5
--------------------------------------------- ------------
Total consideration 226.9
--------------------------------------------- ------------
The identified goodwill reflects the lease-up potential of the
asset base and the intellectual capital of the workforce.
Deferred consideration is payable subject to timing of future
closings of sites and to the committed build-to-suit rollout up to
December 2025. This has been discounted to reflect the present
value of future payments.
The Group has assessed the fair value of assets acquired at
US$273.5 million, based on appropriate valuation methodology. The
valuation techniques used for measuring fair value of material
assets acquired were as follows:
Assets acquired Valuation technique
------------------------------------------ ------------------------------------
Depreciated replacement cost
adjusted for physical deterioration
as well as functional and economic
Property, plant & equipment obsolescence.
------------------------------------------ ------------------------------------
Multi-period excess earnings
method which considered the present
value of net cash flows expected
to be generated by the customer
Intangible assets (Customer relationships) relationships.
------------------------------------------ ------------------------------------
The Group incurred acquisition related costs of US$4.7 million.
These costs have been included in deal costs in the Group's
consolidated income statement. For the period from 18 May 2021 to
30 June 2021 this acquisition contributed revenue of US$4.7 million
and a loss of US$4.4 million.
21. Earnings per share
Basic earnings per share has been calculated by dividing the
total loss for the year by the weighted average number of shares in
issue during the year after adjusting for shares held in employee
benefit trusts.
To calculate diluted earnings per share, the weighted average
number of ordinary shares in issue is adjusted to assume conversion
of all dilutive potential shares. Share options granted to
employees where the exercise price is less than the average market
price of the Company's ordinary shares during the year are
considered to be dilutive potential shares. Where share options are
exercisable based on performance criteria and those performance
criteria have been met during the year, these options are included
in the calculation of dilutive potential shares.
The Directors believe that Adjusted EBITDA per share is
representative of the operations of the business, refer to Note
4.
Earnings per share is based on:
6 months ended
30 June
----------------------------------------------------- ------------------
2021 2020
US$m US$m
----------------------------------------------------- -------- --------
Loss after tax for the period attributable to owners
of the Company (51.1) (91.1)
Adjusted EBITDA (Note 4) 114.2 109.1
----------------------------------------------------- -------- --------
30 June 30 June
2021 2020
Number Number
------------------------------------------------------------- ------------- -------------
Weighted average number of ordinary shares used to calculate
basic earnings per share 1,001,462,251 996,953,727
Weighted average number of dilutive potential shares 57,786,113 6,961,795
------------------------------------------------------------- ------------- -------------
Weighted average number of ordinary shares used to calculate
diluted earnings per share 1,059,248,364 1,003,915,522
------------------------------------------------------------- ------------- -------------
Loss per share
6 months ended
30 June
-------- ------------------
2021 2020
cents cents
-------- -------- --------
Basic (5.1) (9.1)
Diluted (5.1) (9.1)
-------- -------- --------
Adjusted EBITDA per share
6 months ended
30 June
-------- ------------------
2021 2020
cents cents
-------- -------- --------
Basic 11.4 10.9
Diluted 10.8 10.9
-------- -------- --------
The calculation of basic and diluted earnings per share is based
on the loss attributable to owners of the Company entity for the
period US$51.1 million (2020: US$91.1 million). Basic and diluted
earnings per share amounts are calculated by dividing the net loss
attributable to equity shareholders of the Company entity by the
weighted average number of shares outstanding during the year.
Dilutive potential shares are anti-dilutive due to the loss after
tax attributable to ordinary shareholders reported.
The calculation of Adjusted EBITDA per share and diluted EBITDA
per share are based on the Adjusted EBITDA earnings for the period
of US$114.2 million (2020: US$109.1 million). Refer to Note 4 for a
reconciliation of Adjusted EBITDA to net loss before tax.
22. Subsequent events
On 18 August 2021 Kash Pandya informed the Board of his decision
to retire as Chief Executive Officer with effect from the Company's
AGM in April 2022. Effective upon his retirement and at the Board's
request, Kash will move into a new role as non-executive Deputy
Chairman of the Company. In an orderly transition, the Board is
also pleased to announce that Tom Greenwood, currently Chief
Operating Officer, has been appointed CEO-Designate with immediate
effect. Tom will formally take up the Chief Executive Officer role
from Kash following the AGM in April 2022.
23. Directors' responsibility statement
The Directors confirm that, to the best of their knowledge this
condensed set of financial statements has been prepared in
accordance with IAS 34 gives a true and fair view of the assets,
liabilities, financial position and profit or loss of the issuer,
or the undertakings included in the consolidation as a whole as
required by DTR 4.2.4R and that this Interim Report includes a fair
review of the information required by content of the Interim
Management section in the Disclosure Guidance and Transparency
Rules 4.2.7R and Disclosure Guidance and Transparency Rules
4.2.8R.
The interim financial statements for the period ended 30 June
2021 have been authorised for issue on 19 August 2021.
Kash Pandya Manjit Dhillon
Chief Executive Officer Chief Financial Officer
Certain defined terms and conventions
We have prepared the trading update using a number of
conventions, which you should consider when reading information
contained herein as follows:
All references to "we", "us", "our", "HT Group", our "Group" and
the "Group" are references to Helios Towers plc and its
subsidiaries taken as a whole.
"Adjusted EBITDA" Management de nes Adjusted EBITDA as loss
before tax for the period, adjusted for, nance costs, other gains
and losses, interest receivable, loss on disposal of property,
plant and equipment, amortisation of intangible assets,
depreciation and impairment of property, plant and equipment,
depreciation of right-of-use assets, deal costs for aborted
acquisitions, deal costs not capitalised, share-based payments and
long-term incentive plan charges, and other adjusting items.
Adjusting items are material items that are considered one-off by
management by virtue of their size and/or incidence.
"Adjusted EBITDA margin" means Adjusted EBITDA divided by
revenue.
"Adjusted gross margin" means adjusted gross profit, divided by
revenue.
"Company" means Helios Towers plc.
"Corporate capital expenditure" is primarily for furniture,
fixtures and equipment.
"Ghana" means the Republic of Ghana.
"Gross debt" means non-current loans and current loans and
long-term and short-term lease liabilities.
"Growth capex" or "Growth capital expenditure" relates to: (i)
construction of build-to-suit sites (ii) installation of colocation
tenants and (iii) and investments in power management
solutions.
"Group" means Helios Towers, Ltd and its subsidiaries prior to
17 October 2019, and Helios Towers plc and its subsidiaries on or
after 17 October 2019.
"Helios Towers plc" means the ultimate parent of the Group, post
IPO.
"Maintenance capital expenditures" as capital expenditures for
periodic refurbishments and replacement of parts and equipment to
keep existing sites in service.
"MLA" means master lease agreement.
"Net debt" means gross debt less cash and cash equivalents
(excluding restricted cash).
"Organic tenancy growth" means anchor and colocation tenants
added to the portfolio on an organic basis. This excludes tenancies
added to the portfolio through tower portfolio purchases.
"Telecommunications operator" means a company licensed by the
government to provide voice and data communications services in the
countries in which we operate.
"Tenancy" means a space leased for installation of a base
transmission site and associated antennae.
"Tenancy ratio" means the total number of tenancies divided by
the total number of our towers as of a given date and represents
the average number of tenants per site within a portfolio.
"Tenant" means an MNO that leases vertical space on the tower
and portions of the land underneath on which it installs its
equipment.
"Total sites" means total towers, IBS sites, edge data centres
or sites with customer equipment installed on third-party
infrastructure that are owned and/or managed by the Company with
each reported site having at least one active customer tenancy as
of a given date.
Tenant categories
-- "Anchor tenant" means the primary customer occupying a site.
-- "Colocation tenant" each additional tenant on a site in
addition to the anchor tenant and are classified as either a
standard or amendment colocation tenant.
o "Standard colocation tenant" is defined as a customer
occupying site space under a standard tenancy lease rate and
configuration with defined limits in terms of the vertical space
occupied, the wind load and power consumption.
o "Amendment colocation tenant" is a tenant that adds or
modifies equipment, taking up additional space, wind load capacity
and/or power consumption under an existing lease agreement. The
Group calculates amendment colocation tenants on a weighted basis
as compared to the market average lease rate for a standard tenancy
lease in the month the amendment is added.
-- "Total tenancies" means total anchor, standard and amendment
colocation tenants as of a given date.
"Tower sites" means ground-based towers and rooftop towers and
installations constructed and owned by us on real property
(including a rooftop) that is generally owned or leased by us.
"Upgrade capex" comprises structural, refurbishment and
consolidation activities carried out on selected sites.
"US Dollars" or "US$" refers to the lawful currency of the
United States of America.
Disclaimer:
This release does not constitute an offering of securities or
otherwise constitute an invitation or inducement to any person to
underwrite, subscribe for or otherwise acquire or dispose of
securities in Helios Towers plc (the 'Company') or any other member
of the Helios Towers group (the 'Group'), nor should it be
construed as legal, tax, financial, investment or accounting
advice. This document contains forward-looking statements which are
subject to known and unknown risks and uncertainties because they
relate to future events, many of which are beyond the Group's
control. These forward-looking statements include, without
limitation, statements in relation to the Company's financial
outlook and future performance. No assurance can be given that
future results will be achieved; actual events or results may
differ materially as a result of risks and uncertainties facing the
Group.
You are cautioned not to rely on these forward -looking
statements, which speak only as of the date of this announcement.
The Company undertakes no obligation to update or revise any
forward-looking statement to reflect any change in its expectations
or any change in events, conditions or circumstances. Nothing in
this document is or should be relied upon as a warranty, promise or
representation, express or implied, as to the future performance of
the Company or the Group or their businesses.
This release also contains non-GAAP financial information which
the Directors believe is valuable in understanding the performance
of the Group. However, non-GAAP information is not uniformly
defined by all companies and therefore it may not be comparable
with similarly titled measures disclosed by other companies,
including those in the Group's industry. Although these measures
are important in the assessment and management of the Group's
business, they should not be viewed in isolation or as replacements
for, but rather as complementary to, the comparable GAAP
measures.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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END
IR DZGMRNRRGMZM
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August 19, 2021 02:00 ET (06:00 GMT)
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