RNS Number:0381L
Clinical Computing PLC
14 April 2005
For Release 7:00 am 14 April 2005
CLINICAL COMPUTING PLC
2004 PRELIMINARY RESULTS
Clinical Computing Plc ("the Group"), the international developer of clinical
information systems for the healthcare market, announces Preliminary Results for
the year ended 31 December 2004. The Group trades through three operating
subsidiaries: Clinical Computing UK, Ltd. in the United Kingdom and Europe,
Clinical Computing, Inc. in the United States and Clinical Computing Pty Limited
in Australia.
Financial Overview
*Turnover of #1.76m (2003: #1.86m) - 78.3% from the US (2003: 75.61%)
*Turnover on a constant currency basis between dollar and sterling
increased 3.0%
*Operating costs decreased 7.1% to #2.78m (2003: #3.0m)
*R&D tax credits of #324,882
*Loss on ordinary activities after taxation #0.76m (2003: #1.24m)
*Loss per share (basic and diluted): 2.4p (2003: loss 4.5p)
Business Review
*Clinical Vision 4 product "live" with 8 customers (2003: 7)
*Clinical Vision 4 delivered and being implemented at 4 other customers
*Largest order to date for Clinical Vision 4 was won in April 2005
(contract in excess of #350,000)
*100 customers under maintenance agreements for all products (2003: 102)
*Cash balance of #0.88m as at 31 December 2004 with an additional
unutilised debt facility of #0.5m available
*US based CEO steps down from Board to concentrate on US activities. UK
based CEO in place to focus sales strategy
Outlook and Prospects
Chairman Howard Kitchner, commenting on the Group outlook, said:
"Our strategy remains one of providing leading clinical information solutions in
our chosen markets. We believe that industry trends indicate that clinically
focused products will be in demand in our primary geographic markets of the US
and UK. We will continue to adapt to the changing landscape of healthcare
purchasing by focusing on partner relationships, and believe that changes to our
management structure will provide a sharper emphasis on closing new business and
we look forward to reporting contract wins in the coming months."
Contacts:
Joe Marlovits, Finance Director 020 8747 8744
Peter Binns/Paul McManus Binns & Co PR Ltd 020 7786 9600
Chairman's Statement
Introduction
Our latest clinical information system for the healthcare market, Clinical
Vision 4 ("Clinical Vision") is live with eight customers using the renal
medicine application and implementations at four other customers are nearing
completion. Clinical Vision was developed as a generic clinical information
system based on the Company's cumulative expertise serving the clinical
healthcare markets in the USA and UK. The product provides the Group with the
opportunity to move into other clinical modalities, leveraging its leadership
position in renal medicine and transplantation. We remain committed to expanding
the capabilities of Clinical Vision and demonstrating that this product provides
the clinical functionality that our hospital based customers require in
supporting their initiatives to improve staff efficiency and patient care, while
adopting a paperless working environment.
2004 continued to be a challenging year in moving our targeted customers for
Clinical Vision through to license agreements. In our half-year announcement we
stated that we had won six deals compared to only one in the previous year, all
in the US. During the second half we experienced further delays in finalising
license agreements in both the US and UK markets and no further orders were
closed. However, we did receive a down payment on our first Clinical Vision 4
agreement outside the US and UK with a hospital in New Zealand and in April 2005
we secured our largest contract to date for Clinical Vision, which was in excess
of #350,000 from the US and is scheduled to be implemented in the current year.
The Company continues to be in discussion directly with NHS Trusts as well as
key suppliers within the National Programme for IT (the National Programme now
known as 'Connecting for Health') to make Clinical Vision available to NHS
clinicians.
Geographic markets and risk
UK healthcare market
The Company remains enthusiastic about the UK healthcare market where we believe
that current initiatives in healthcare computing within the NHS will lead the
way that computerised medicine evolves in Europe. Purchasing decisions with
respect to specialist clinical systems like Clinical Vision continue to be
dominated by the progress of the NHS National Programme for IT. Under this
initiative the NHS is modernising technologies available to its medical staff,
beginning with the national data spine, electronic bookings and electronic
prescribing systems. This widely publicised #6 billion initiative has over the
last two years significantly delayed the decision making with respect to
individual NHS Trusts adopting new clinical information systems. This is
primarily due to uncertainty as to whether such systems will be funded centrally
through the National Programme.
US healthcare market
The immediate opportunity for the Company in the US is for it to continue
building on our customer base of healthcare organisations providing renal
dialysis services. During the year under review we secured six license
agreements with such organisations, five of which were hospitals and one was a
for-profit dialysis chain. I am pleased to report that in April 2005 we secured
our largest contract to date for Clinical Vision. This contract, which is in
excess of #350,000, is to provide our renal dialysis application to a 12-chain
facility in the Midwest USA.
The US healthcare industry is evolving in a similar manner as the UK. In the US
the federal government is becoming involved in the electronic health record
initiative, in a manner similar to the one being led in the UK. The current
purchasing environment is therefore subject to changing economic and political
influences. The federal government, as well as individual state governments, can
influence healthcare practices and the types of information systems purchased by
healthcare providers, as regulations and reimbursement for some categories of
care may come from government sources. Our potential customers may respond to
these influences by further delaying the purchase of new information systems. At
this time the Health Insurance Portability and Accounting Act of 1996 is
directly impacting the industry by specifying standards to protect the security
and confidentiality of patient information. We continue to address these market
factors with our development of the product but, much like the UK market, the US
market is being influenced by macro events that previously had not had such an
influence on our US customers' purchasing decisions.
In general we believe that the US and UK healthcare markets are dominated by
healthcare organisations utilising legacy-based systems that rely on inefficient
paper-based processes and workflows. As a result, many of these organisations
are under a significant amount of pressure to invest in a complete electronic
clinical information system like Clinical Vision. Adopting new technology will
enable changes to current working practices that will improve the quality of
care, increase patient safety, increase staff productivity and reduce the risk
of medical errors.
Management changes
Following a review of the opportunities in the two main geographic markets, as
noted above, the board believes that a UK based Chief Executive Officer will
benefit the Company in exploiting the current opportunity that exists with the
NHS and the National Programme. Jack Richardson, has stepped down from the board
of the Company, effective 14 April 2005 and will concentrate on the activities
of the Group in the US. John Lowry has been appointed as Chief Executive Officer
and will lead the Group's initiatives in exploiting its sales strategy.
Results
Results for the year reflect the market conditions described above that resulted
in a lower number of new license agreements than expected. Turnover for the year
was #1,757,997 (2003: #1,858,828) a reduction of 5.4 per cent which reflects a
decrease in our sterling based business. Increases in our US dollar denominated
turnover for the year partially offset the continued decline of the dollar.
Group turnover, using a constant currency basis, for the two years would have
increased 3.0 per cent from 2003 to 2004. Results from operations produced a
loss of #1,025,870 (2003: #1,138,501) an improvement of 9.9 per cent. Loss on
ordinary activities after taxation was #762,859 (2003: loss #1,236,892). The
loss per share was 2.4p (2003: loss 4.5p).
Outlook
Our strategy remains one of providing leading clinical information solutions in
our chosen markets. We believe that industry trends indicate that clinically
focused products will be in demand in our primary geographic markets of the US
and UK. We will continue to adapt to the changing landscape of healthcare
purchasing by focusing on partner relationships, and believe that changes to our
management structure will provide a sharper emphasis on closing new business and
we look forward to reporting contract wins in the coming months.
H Kitchner
Chairman
13 April 2005
Finance review
The Group's operations remain the development and support of clinical
information systems, primarily for healthcare organisations that specialise in
renal medicine. In addition to Clinical Vision 4 the Group continues to derive
revenue from support and maintenance contracts for its other products: PROTON,
di-PROTON, and RENLStar. At the end of 2004 the Group had 100 customers using
one of these products (2003: 102).
During the year under review the Group derived 78.3 per cent of its revenues
from the US market (2003: 75.6 per cent). Total turnover for the year of
#1,757,997 decreased 5.4 per cent from the prior year. 72 per cent of this
decrease was driven by the fall in our sterling based revenue. The remainder
related to the US where despite growth, the decline of the US dollar compared to
sterling, resulted in lower revenues.
The Group's operating costs for the year were #2,783,867 compared to #2,997,329,
a decrease of 7.1 per cent. This decrease is largely attributed to the decrease
in our US dollar denominated costs as a result of the weaker dollar when
compared to the prior year.
Operations generated a loss of #1,025,870 an improvement of 9.9 per cent
compared to the prior year (2003: loss #1,138,501).
Interest and taxation
Net interest payable for the period was #61,871 (2003: #98,391). Interest
payable is the net of bank interest earned on short-term deposits, income of
#49,147 (2003: #23,302) and the non-cash currency fluctuation on loans made by
the Company to its foreign subsidiaries generated a loss of #111,018 (2003: loss
121,693).
During the year under review the Group filed a research and development (r&d)
tax credit claim with respect to r&d activities undertaken in 2002 and 2003 on
various components of the Clinical Vision 4 product. Under the terms of the
current United Kingdom r&d tax credit regime the Company was able to elect for a
cash refund on a percentage of its total r&d expenditure. A tax credit of
#324,882 has been reported in the year under review. The Company received
#162,753 of this amount in November 2004 and the balance in March 2005.
Cash flow
Cash used to support the operations was #1,004,280 (2003: #994,236) and
approximated the operating loss before interest and tax of #1,025,870. The net
cash outflow before financing was #841,236 (2003: #998,627), as a result of
receiving a tax refund of #162,753 in November 2004. Cash including short-term
deposits at the end of the year was #875,731.
Capital structure and finance
Shareholders' fund at 31 December 2004 totalled #786,797 (2003: #1,430,397). The
decrease is due to the loss for the year offset by the gain on translating
foreign subsidiaries as detailed in the consolidated statement of total
recognised gains and losses.
The Company has obtained a #500,000 Revolving Overdraft Facility with a
committed period of 18 months, ending 30 September 2006. This facility has been
provided by Brown Shipley, on normal commercial terms, backed by guarantees of
the Chairman and two shareholders. Neither the Chairman nor the shareholders
have received compensation or other benefits for providing such guarantees. This
facility, along with our cash resources, maintenance contracts and signed but
unbilled license agreements provide the financial resources for the Board to
continue to pursue its strategy.
Accounting standards
The Company will adopt International Financial Reporting Standards (IFRS) for
the year 2005 and thereafter. During the first half of 2005, the Company will
restate the 2004 results herein reported under UK GAAP with reconciliation to
IFRS, thereby providing appropriate comparators. On 29 September, the company
will announce its interim results fully in accordance with IFRS. The adoption of
IFRS has some impact on the presentation of the primary financial statements but
does not change the economics, risk profile or cash flow of the business.
Foreign currency risk
The Company has one major overseas trading subsidiary in the US. Receipts and
payments for this subsidiary are largely in the local currency, US dollars and
we do not hedge against the fluctuation between sterling and the dollar.
The Group via this subsidiary generated 78% of the total turnover or #1,376,169
and 53% of its costs or #1,474,432 in US dollars.
The Company also has a small subsidiary in Australia. Receipts and payments are
largely in the local currency and are also not hedged.
J Marlovits
Finance Director
13 April 2005
Clinical Computing Plc
Consolidated Profit and Loss Account
For the year ended 31 December 2004
Notes 2004 2003
# #
--------------------- --------- --------- -----------
Turnover 2 1,757,997 1,858,828
Cost of sales (780,219) (916,780)
--------- -----------
Gross profit 977,778 942,048
Distribution costs (495,827) (525,482)
Administrative expenses
--------- -----------
Research and development (803,442) (854,601)
Other (704,379) (700,466)
--------- -----------
Total (1,507,821) (1,555,067)
--------- -----------
Operating loss (1,025,870) (1,138,501)
Net interest payable (61,871) (98,391)
--------- -----------
Loss on ordinary activities before
taxation (1,087,741) (1,236,892)
Tax credit on loss on ordinary
activities 324,882 -
--------- -----------
Loss on ordinary activities after
taxation and retained loss for the
financial year (762,859) (1,236,892)
--------- -----------
Basic and diluted loss per share 3 (2.4p) (4.5p)
--------- -----------
All activities are derived from continuing operations.
Clinical Computing Plc
Consolidated Statement of Total Recognised Gains and Losses
For the year ended 31 December 2004
Notes 2004 2003
# #
-------------------- ---------- --------- ----------
Loss for the financial year (762,859) (1,236,892)
Gain on foreign currency translation 119,259 133,306
--------- -----------
Total recognised gains and losses
relating to the year (643,600) (1,103,586)
--------- -----------
Clinical Computing Plc
Consolidated Balance Sheet
31 December 2004
Notes 2004 2003
# #
-------------------- ---------- --------- -----------
Fixed assets
Tangible assets 98,963 110,694
--------- -----------
Current assets
Debtors 524,618 326,305
Cash at bank and in hand (including
short term deposits) 5 875,731 1,749,977
--------- -----------
1,400,349 2,076,282
--------- -----------
Creditors: amounts falling due
within one year (712,515) (756,579)
--------- -----------
Net current assets 687,834 1,319,703
--------- -----------
Total assets less current
liabilities and net assets 786,797 1,430,397
--------- -----------
Capital and reserves
Called up share capital 1,576,768 1,576,768
Share premium account 6,099,699 6,099,699
Profit and loss account (6,889,670) (6,246,070)
--------- -----------
Equity shareholders' funds 6 786,797 1,430,397
--------- -----------
Clinical Computing Plc
Consolidated Cash Flow Statement
For the year ended 31 December 2004
Notes 2004 2003
# #
------------------- ---------- --------- -------------
Net cash outflow from operating
activities 4 (1,004,280) (994,236)
Returns on investments and
servicing of finance 49,147 23,302
Taxation 162,753
Capital expenditure (48,856) (27,693)
--------- -----------
163,044 (4,391)
--------- -----------
Cash outflow before management of
liquid resources and financing (841,236) (998,627)
Management of liquid resources 888,941 (1,310,072)
Financing (27,125) 2,267,425
--------- -----------
Increase (decrease) in cash in the
year 20,580 (41,274)
--------- -----------
Clinical Computing Plc
Reconciliation of net cash flow to movement in net funds
For the year ended 31 December 2004
2004 2003
# #
-------------------- ---------- ------------
Increase (decrease) in cash in the year 20,580 (41,274)
Cash (outflow) inflow from movement in
liquid resources (888,941) 1,310,072
--------- -----------
Change in net funds resulting from cash
flows (868,361) 1,268,798
Exchange movement (5,885) (6,910)
--------- -----------
Movement in net funds in year (874,246) 1,261,888
Net funds at beginning of year 1,749,977 488,089
--------- -----------
Net funds at end of year 875,731 1,749,977
--------- -----------
Notes:
1. Basis of preparation
The financial information set out in this preliminary announcement was
approved by the board on 13 April 2005 and does not constitute the
company's statutory accounts for the years ended 31 December 2004 or 2003,
but is derived from those accounts. Statutory accounts for 2003 have been
delivered to the Registrar of Companies and those for 2004 will be
delivered following the company's Annual General Meeting in due course.
The auditors have reported on those accounts; their reports were
unqualified and did not contain statements under s237(2) or (3) Companies
Act 1985. The financial information for the year ended 31 December
2004 has been prepared in accordance with the accounting policies set out
in the Group's 2003 annual report.
2. Segmental analysis
Turnover
An analysis of Group turnover by geographical destination is
given below:
2004 2003
# #
------------------- ---------- ------------
UK 309,734 380,926
USA 1,376,169 1,404,396
Other 72,094 73,506
----------- ------------
1,757,997 1,858,828
------------ ------------
Turnover by origin in the UK would include "Other" sales by destination and
turnover by destination is not materially different from that by origin.
The directors consider that the Group operates in one class of business.
However,
turnover is derived as follows:
2004 2003
# #
------------------- ---------- ---------- ------------
Software
licences 526,789 514,240
Maintenance 1,081,672 1,186,782
Services 121,941 137,811
Other 27,595 19,995
--------------- ---------------
1,757,997 1,858,828
--------------- ---------------
-
3. Basic loss per share is based upon the loss attributable to shareholders of
#762,859 (2003: loss of #1,236,892) and weighted average number of shares in
issue during the year of 31,535,361 (2003: 27,235,423).
For purposes of calculating diluted loss per share, the diluted loss
attributable to shareholders and the weighted average number of shares are
the same as the basic loss per share disclosed above. This is because share
options would dilute the loss per ordinary share in issue and not provide a
meaningful disclosure under the terms of Financial Reporting Standard No.
14.
4. Reconciliation of operating loss to operating cash flows
2004 2003
# #
-------------------- ---------- ---------- ------------
Operating loss (1,025,870) (1,138,501)
Depreciation 54,551 76,552
(Increase) decrease
in debtors (52,092) 187,064
Increase (decrease)
in creditors 19,131 (97,351)
Reversal of
previously
recognised share
option charge - (22,000)
--------------- ---------------
- -
Net cash outflow
from operating
activities (1,004,280) (994,236)
--------------- ---------------
-- --
5. Analysis and reconciliation of net funds
1 January Exchange 31 December
2004 Cash flow movement 2004
# # # #
------------ --------- --------- --------- ----------
Cash in hand
and at bank 77,327 20,580 (4,995) 92,912
Short term
deposits 1,672,650 (888,941) (890) 782,819
-------------- -------------- -------------- --------------
Net funds 1,749,977 (868,361) (5,885) 875,731
-------------- -------------- -------------- --------------
6. Reconciliation of movements in Group shareholders' funds
2004 2003
# #
-------------------- ---------- ---------- ------------
Loss for the year (762,859) (1,236,892)
Gain on foreign
currency
translation 119,259 133,306
New shares issued - 2,582,370
Expenses of share
issue - (408,307)
Reversal of
previously
recognised share
option charge - (22,000)
-------------- --------------
Net (reduction)
addition to
shareholders' funds (643,600) 1,048,477
Opening
shareholders' funds 1,430,397 381,920
-------------- --------------
Closing
shareholders' funds 786,797 1,430,397
-------------- --------------
7. Copies of the full annual report and accounts will be sent to shareholders
in April, and will also be available from the Company's registered office at
2 Kew Bridge Road, Brentford, Middlesex, TW8 OJF.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR USVNRVORSARR
Calculus Vct (LSE:CLC)
Historical Stock Chart
From Jul 2024 to Aug 2024
Calculus Vct (LSE:CLC)
Historical Stock Chart
From Aug 2023 to Aug 2024
