Final Results
June 15 2007 - 3:01AM
UK Regulatory
RNS Number:4162Y
Business Systems Group Hldgs PLC
15 June 2007
BUSINESS SYSTEMS GROUP HOLDINGS PLC
PRELIMINARY RESULTS FOR THE TWELVE MONTHS ENDED 31 MARCH 2007
CHAIRMAN'S STATEMENT
I present the results for Business Systems Group Holdings plc (the "Group") for
the year ended 31 March 2007. The main objective of the year was to move the
Group back to breakeven following the loss of a contract in March 2006, the
consequence of which was to take the business into loss, as seen in the interim
results. I am pleased to report that we achieved breakeven in the second half of
the year following a good performance by all parts of the Group.
Summary of results
* Pre-tax loss of #262k (#767k profit prior year).
* Revenues decreased by 5.1% to #32.9m for the year (#34.6m prior year).
* Cash balance of #8.2m and no debt (#9.3m prior year). During the year
the Group returned #1m of cash to shareholders through a combination of
share buy-backs and dividend.
* The Group has made substantial progress in building contractual
revenues. The annualised value of contracts at the year end increased from
#5.4m at 31 March 2006 to #7.1m at 31 March 2007.
* Breakeven achieved in second half of the year.
Contractual revenues
The Group's core strategy to create value continues to be to grow its book of
services contracts, and we have made substantial progress in achieving this
during the year. The Board believes that in the competitive IT market it is
important to have on-going contractual relationships with customers that ensure
long-term trading partnerships, which in turn gives the Group greater
opportunity to demonstrate differentiation and add value. Increasing the value
of this measure is the single most important key performance indicator for the
business.
In the course of the year, we have grown the annualised value of contracts at
the year end by 31% from #5.4m to #7.1m.
Share buy-back
Further to the share buy backs reported in the last annual report which totalled
6.8 million shares as at 15th June 2006, the Board made a further purchase of
500,000 shares during this financial year, making a total of 7.3 million shares
held in treasury by the Group.
Dividend
The Group has not paid an interim dividend (2006: nil) and does not propose to
pay a final dividend (2006: 0.31p).
Current trading and outlook
The key objective of the coming year is to continue profitable trading in the
Hardware and Solutions parts of the Group and to achieve a further year of
strong growth in managed services.
The Board believes that the market for managed services in medium size companies
has never been larger and more active. There are two key opportunities to ensure
growth in this area over the coming year. Firstly, the Group's data centre
supply contracts expire later in the year. Whilst this presents a risk as market
prices have risen, driven by increasing power demands in under specified
facilities, the Board is seeking to take advantage of this situation to secure
long term supply of space which is of a more contemporary specification. This
should give the Group a competitive cost base and capacity for growth.
In addition to this, and in order to maximise the opportunity for growth, the
Group intends to overhaul and innovate its core managed service products, such
as back-up and monitoring in order to ensure that by bringing the right services
to market, with the right quality and at the right price, we are ideally
positioned to benefit from this increasingly active market-place.
Roger Keenan
Chairman
14 June 2007
CONSOLIDATED PROFIT & LOSS ACCOUNT
Year ended 31 March 2007
Year Year
ended ended
31 March 31 March
2007 2006
#'000 (as restated
per note 2)
#'000
TURNOVER 32,861 34,639
Cost of sales (27,148) (28,282)
---------- ----------
GROSS PROFIT 5,713 6,357
Administrative expenses (6,411) (6,002)
---------- ----------
OPERATING (LOSS)/PROFIT (698) 355
Other interest receivable and similar
income 436 412
---------- ----------
(LOSS)/PROFIT ON ORDINARY ACTIVITIES BEFORE
TAXATION (262) 767
Tax on (loss)/profit on ordinary activities - -
---------- ----------
(LOSS)/PROFIT ON ORDINARY ACTIVITIES AFTER
TAXATION (262) 767
========== ==========
Basic (loss)/earnings per share (0.35)p 0.94p
Diluted (loss)/earnings per share (0.35)p 0.90p
========== ==========
COMBINED STATEMENT OF MOVEMENT IN SHAREHOLDERS' FUNDS
AND STATEMENT OF MOVEMENTS ON RESERVES
Year ended 31 March 2007
Own Profit
Share Shares and Loss EBT
Capital Held Account Reserve Total
#'000 #'000 #'000 #'000 #'000
Balance at 1 April 2006 4,209 (114) 4,805 (190) 8,710
Retained loss for the year - - (262) - (262)
Purchase of own shares (758) - - (758)
Dividends - - (234) - (234)
Share-based payment - - 11 - 11
Movement in reserves from EBT
redemptions - - (21) 97 76
------- ------- ------- ------- -------
Balance at 31 March 2007 4,209 (872) 4,299 (93) 7,543
======= ======= ======= ======= =======
There are no recognised gains or losses for this financial year or the previous
year other than as stated above and therefore no separate statement of total
recognised gains and losses has been presented.
All results are derived from continuing operations.
BALANCE SHEET
As at 31 March 2007
2007 2006
#'000 (as restated
per note 2)
#'000
FIXED ASSETS
Tangible assets 1,235 1,052
--------- ---------
1,235 1,052
CURRENT ASSETS
Stocks 141 87
Debtors 6,218 6,209
Cash at bank and in hand 8,244 9,252
--------- ---------
14,603 15,548
CREDITORS: amounts falling due (8,145) (7,697)
within one year
--------- ---------
NET CURRENT ASSETS 6,458 7,851
--------- ---------
TOTAL ASSETS LESS CURRENT LIABILITIES 7,693 8,903
PROVISION FOR LIABILITIES (150) (193)
--------- ---------
NET ASSETS 7,543 8,710
========= =========
CAPITAL AND RESERVES
Called up share capital 4,209 4,209
Own shares held (872) (114)
Profit and loss account 4,299 4,805
EBT reserve (93) (190)
--------- ---------
SHAREHOLDERS' FUNDS 7,543 8,710
========= =========
CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 March 2007
Year ended Year ended
31 March 2007 31 March 2006
#'000 #'000
Net cash inflow from operating
activities 141 502
Returns on investments and
servicing of finance
Interest received 436 412
------ ------
Net cash inflow from returns on 436 412
investments and servicing of
finance
Capital expenditure
Purchase of tangible fixed assets (672) (377)
Sale of tangible fixed assets 3 -
------ ------
Net cash outflow from capital
expenditure and financial (669) (377)
investment
Acquisitions and disposals
Consideration for acquisitions - (70)
------ ------
Net cash outflow for
acquisitions - (70)
Dividends paid (234) (240)
------ ------
Cash (outflow)/inflow before
management of liquid resources
and financing (326) 227
Financing
Sale of shares from EBT 76 145
Purchase of own shares (758) (114)
------ ------
(Decrease)/increase in cash in
the year (1,008) 258
====== ======
NOTES TO THE ACCOUNTS
Year ended 31 March 2007
1. The financial information set out above does not constitute the
Company's statutory accounts for the year ended 31 March 2007 or 2006, but is
derived from those accounts. Statutory accounts for 2006 have been delivered to
the Registrar of Companies and those for 2007 will be delivered following the
Company's annual general meeting. The auditors have reported on those accounts;
their reports were unqualified and did not contain statements under s237(2) or
(3) Companies Act 1985.
2. The financial statements adopt FRS20 "Share-based payment", which
requires a charge in respect of the fair value of share options and other share
based payments, for the first time. The charge for the year ended 31 March 2007
was #11k. Comparative figures for the year ended 31 March 2006 have been
restated with a charge of #15k in accordance with this standard. This charge
relates entirely to the fair value of share options.
3. RECONCILIATION OF OPERATING (LOSS)/PROFIT TO NET CASH INFLOW FROM OPERATING
ACTIVITIES
2007 2006
#'000 #'000
Operating (loss)/profit (698) 355
Depreciation of tangible assets 484 352
Amortisation of intangible assets - 30
Share-based payment 11 15
Loss on disposal of tangible assets 2 1
Decrease in provisions (43) (124)
(Increase)/decrease in stocks (54) 105
(Increase)/decrease in debtors (9) 922
Increase/(decrease) in creditors within one year 448 (1,154)
------ ------
Net cash inflow from operating activities 141 502
====== ======
4. ANALYSIS OF NET FUNDS
At At
1 April Cash 31 March
2006 flows 2007
#'000 #'000 #'000
Cash at bank and in hand 9,252 (1,008) 8,244
------ ------ ------
Net funds 9,252 (1,008) 8,244
====== ====== ======
5. (LOSS)/EARNINGS PER ORDINARY SHARE
Basic earnings per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of ordinary shares in issue
and ranking in full for dividend during the year. Shares held by the trustees of
the employee share scheme and which have not been allotted to staff rank for
dividend only to the extent of 0.01p per share and have, therefore, been
excluded from the calculation of the weighted average number of shares, as have
treasury shares.
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares in issue on the assumption of conversion of all
dilutive potential ordinary shares. The Group has only one category of dilutive
potential ordinary shares, those share options granted under the Enterprise
Management Incentive Plan. When a loss is incurred, since the conversion of
potential Ordinary shares to Ordinary shares would decrease net loss per share,
options are not dilutive and therefore diluted and basic losses per share are
the same.
Year ended Year ended
31 March 31 March
2007 2006
(as restated
per note 2)
(Loss)/profit for the financial period and basic
and diluted earnings attributable to ordinary
shareholders (#'000) (262) 767
Weighted average number of ordinary shares ('000) 75,693 81,427
Effect of dilutive share options 2,167 3,867
Adjusted weighted average number of shares ('000) 77,860 85,294
======= =======
Basic (loss)/earnings per share (0.35)p 0.94p
Diluted (loss)/earnings per share (0.35)p 0.90p
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EANKLFASXEFE
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