RNS Number:4689S
CamAxys Group PLC
25 November 2003
CAMAXYS GROUP PLC ('CAMAXYS' or the 'Company')
Preliminary results for the year ended 30 June 2003
Key Points:
* Following the acquisition during the year of CamAxys Limited, the
Group is now focussed on the development of software systems for
Environmental, Health and Safety ("EHS") management, and related areas
* The Directors believe that the market for Camaxys' EHS reporting
systems will show strong growth, driven by companies' increasing need
to control the cost of EHS incidents, to reduce related insurance
costs and to comply with legislation.
* During the year a multi-language web-enabled EHS Accident/Incident
Reporting System was successfully completed and implemented of for
Invensys PLC.
* Completion of disposal of assets of old Fieldens Agricultural Tyre
and Wheel business.
* The overall pre-tax loss for the year, after goodwill amortisation
and transaction costs of #234,507 and #291,392 respectively, was
#915,452.
* Cash of #550,000 as at 30 June 2003.
Derek Bonham, Chairman of CamAxys, commented:
"This has been a year of significant developments. The sale of the Starhouse
agricultural, tyre and wheel business in October 2002 and the acquisition of
CamAxys in November provided the company with the strategic new direction for
which we had been searching for some time. CamAxys is a leading developer of
software systems for Environmental Health and Safety management. We believe
CamAxys will provide a good platform upon which we can develop the group.
"We have now restructured the management team to enhance the sales function and
have the completed some major projects. The interest in our products is very
positive."
For further information:
Andrew Arends, CamAxys Group PLC Tel: 01480-497739
Graham Shore / Jonathan Nelson, Shore Capital Tel: 020 7408 4090
CHAIRMAN'S STATEMENT
This has been a year of significant developments for your company. The sale of
the Starhouse agricultural, tyre and wheel business in October 2002 and the
acquisition of CamAxys in November provided the company with the strategic new
direction for which we had been searching for some time. We are confident that
the core CamAxys business will provide a good platform upon which we can develop
the group as a leading producer of risk management software for Environmental,
Health and Safety (EHS) requirements.
For the year to 30 June 2003 there was an overall pre-tax loss of #915,452
(#680,945 before goodwill amortisation of #234,507) on turnover of #1,235,353.
These figures comprise a loss of #30,623 from the sold Starhouse business and
exceptional costs relating to that disposal of #39,820. They also include the
continuing operations of the group which reported an operating loss of #854,987
from the date of acquisition, 20 November 2002, until 30 June 2003. This figure
is after the goodwill amortisation of #234,507 and transaction costs relating to
the acquisition of #291,392, on turnover of #307,801. The directors do not
recommend payment of an ordinary dividend for the year. The results for the year
ended 30 June 2002, which are solely of the Starhouse wheel and tyre business
and are therefore not comparable, showed an operating loss of #35,949 on
turnover of #3,314,982.
The loss on continuing operations stems from a shortfall in revenue, partly
caused by the disruptions of the acquisition itself, as well as the need for
management to focus on the completion of some major projects. These projects,
such as the web-enabled EHS Accident/Incident Reporting system for Invensys PLC,
are the key to future growth in the business. We also needed to make some
significant personnel changes and we took action in July to restructure the
management team and recruit new sales resource. Colin West has taken over full
time executive responsibilities from Alan James who has stepped down, partly for
health reasons. The urgent requirement was to find experienced sales resource
for the type of product we sell, which we had been lacking, as well as to
prioritise the sales and marketing of the key modules. We believe we have now
started to address that need. The new sales team is now up to speed and we feel
that the superior performance of the software - as evidenced by a strong
customer list of large blue chip companies - will be reflected in good sales
growth going forward. There remains a risk in the near term that the sales do
not materialise as rapidly as we require but the board is confident that there
will be financing available to sustain and develop the business.
CamAxys is a producer of sophisticated software applications to monitor, measure
and control Environmental, Health and Safety (EHS) risks for large corporations.
The company produces a comprehensive suite of modular applications designed
around a core database system. These include, among others,
* EHS Incident/Accident reporting
* Risk Management
* Control of Substances Hazardous to Health (COSHH)
* Material Safety Data Sheets (MSDS)
* Occupational Health
* Action Tracking
* Environmental Monitoring
We believe it is a strong feature of these products that they provide seamless
integration across the modules. They also allow senior managers to 'drill down'
for data to operational level, as well as providing aggregate data at the higher
level in formats that are easily comprehensible and adaptable for senior
management. A key recent addition to the company's armoury of features is the
ability to provide forms in a wide range of languages appropriate to multi-site,
multi-national organisations including Chinese, Spanish, French, Portuguese and
German. These forms facilitate the flow of information from the local level
upwards. CamAxys is a leader in its field with a strong list of blue chip
companies in the oil and gas, chemical and manufacturing industry both in the UK
and overseas.
We believe that demand for these applications will show strong growth, driven by
the increasing need by companies to control the actual costs of EHS incidents,
to reduce the insurance costs of covering those risks, as well as providing
company boards with the tools to fulfil their requirement to comply with the
appropriate health, safety and environmental legislation. The market for EHS
management software is a fragmented one and we believe there are a number of
opportunities for strategic alliances or potential bolt-on acquisitions in
related areas.
I would like to thank the employees of CamAxys for their efforts over the last
year and in particular for their success in the implementation of a
sophisticated state of the art web-based worldwide EHS Incident/Accident system
for Invensys PLC which was delivered on time and on budget to the customer. It
was described in the Invensys Annual Report as a "best in class reporting system
" and we now look to ramp up sales of this and our other modules.
D C Bonham
Consolidated Profit and Loss Account (1)
For the year ended 30 June 2003
2003 2003 2003 2002
# # # #
Continuing Discontinued Total
Turnover 307,801 927,552 1,235,353 3,314,982
Cost of sales (21,105) (800,719) (821,824) (2,749,077)
Gross Profit 286,696 126,833 413,529 565,905
Selling and distribution costs
- Continuing operations - - - -
- Discontinued - - - (263,900)
Administrative expenses
- Continuing operations (615,784) (615,784) -
- Transaction costs (291,392) (291,392)
- Amortisation of Goodwill (234,507) (234,507)
- Discontinued - (157,456) (157,456) (337,949)
Total Administration Expenses (1,141,683) (157,456) (1,299,139) (337,949)
Operating Loss (854,987) (30,623) (885,610) (35,944)
Exceptional item (2) - (39,820) (39,820) (179,000)
(854,987) (70,433) (925,430) (214,944)
Rent receivable 3,340 3,340 -
Interest receivable and similar income 11,092 - 11,092 13,068
Interest payable and similar charges (4,454) - (4,454) -
Loss on ordinary activities before (848,349) (67,103) (915,452) (201,876)
taxation
Tax on loss on ordinary activities - - - 245
Loss on ordinary activities after (848,349) (67,103) (915,452) (201,631)
taxation
Dividends (25) (25)
Retained loss transferred to reserves (915,477) (201,656)
Earnings per ordinary share (3)
Basic (14.53)p (4.03)p
Diluted (14.53)p (4.03)p
The company has no recognised gains or losses other than the loss for the year.
The retained loss for the year is equivalent to the historical cost loss.
All continuing operations relate to acquisitions in the year, apart from costs
of #51,878 included in administrative expenses.
Consolidated Balance Sheet
As at 30 June 2003
2003 2002
# # # #
FIXED ASSETS
Intangibles - goodwill 703,522 -
Tangible assets 38,208 438,522
741,730 438,522
CURRENT ASSETS
Stocks 16,213 569,492
Debtors 232,413 499,359
Cash at bank and in hand 550,227 409,430
798,853 1,478,281
CREDITORS
Amounts falling due within one year (484,313) (586,552)
NET CURRENT ASSETS 314,540 891,729
TOTAL ASSETS LESS CURRENT LIABILITIES 1,056,270 1,328,251
CREDITORS
Amounts falling due after more than one year (2,413) -
NET ASSETS 1,053,857 1,328,251
CAPITAL AND RESERVES
Called up share capital 359,347 252,500
Share premium account 1,333,431 799,195
Profit and loss account (686,421) 229,056
Capital redemption reserve 47,500 47,500
Shareholders' Funds (including non-equity 1,053,857 1,328,251
interests)
Approved by the Board on 24 November 2003
D C Bonham K A Arends
Director Director
Consolidated Cash Flow Statement
For The Year Ended 30 June 2003
2003 2002
# # # #
Net cash (outflow)/inflow from operating activities (214,526) 30,015
Returns on investments and servicing of finance
Rent received 3,340 -
Interest received 11,092 13,068
Interest paid (4,454) -
Net cash inflow from returns on investments and
servicing of finance
9,978 13,068
Taxation
Corporation tax refunded - 7,870
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (16,194) (68,379)
Receipts from sales of tangible assets 422,669 4,910
Net cash inflow/(outflow) from capital expenditure and 406,475 (63,469)
financial investment
Non equity dividend paid (25) (50)
Acquisition
Exceptional costs re acquisition of CamAxys Limited (39,820) -
Net cash inflow/(outflow) before financing 162,082 (12,566)
Financing
Capital element of hire purchase repaid (21,285) -
Net cash outflow from financing (21,285) -
Increase (decrease) in cash 140,797 (12,566)
Notes:
1. The figures above have been extracted from the unaudited
accounts of the Group. These figures have been prepared using the historical
cost convention on a going concern basis and the accounting policies for CamAxys
Limited set out in the Readmission Document of 29 October 2002. The auditors are
expected to give an unqualified report on the accounts, but to disclose a
fundamental uncertainty over the forecasts covering the year following these
financial statements. A full copy of the audited accounts will be posted to
shareholders in due course.
2. The exceptional item relates to the disposal of the
Starhouse business on 11 October 2002.
3. Earnings per ordinary share is calculated by dividing the
loss, after charging tax and preference dividends of #915,477 loss (2002 -
#201,656 loss), by the weighted average number of ordinary shares in issue
during the period of 6,299,732 (2002 - 5,000,000).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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