RNS Number:9212R
Clinical Computing PLC
29 September 2005
For Release 7:00 am
29 September 2005
CLINICAL COMPUTING PLC
2005 INTERIM RESULTS
Clinical Computing Plc ("the Company"), the international developer of clinical
information systems for the healthcare market, announces Interim Results for the
six months ended 30 June 2005. 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 #710,000 (30 June 2004: #728,000) - 72% from the US (2004:
74%)
* Administrative expenses higher due to restructuring and current investment
in Web technology platform
* Loss for the period #737,000 (30 June 2004: #635,000)
* Loss per share (basic and diluted): 2.3p (30 June 2004: loss 2.0p)
Business Review
* Six contracts secured with total value of over #1.10m since March from all
three geographic markets (UK, US, Australasia)
* Represents most successful order book position since releasing Clinical
Vision 4 in 2001
* Company now has 18 customers under contract for Clinical Vision 4
* 11 customers now using renal medicine application, two go-lives set for
fourth quarter, five implementations to begin in fourth quarter
* Sales pipeline suggests procurement activity is increasing in all three
geographic markets
* New UK based Directors of Product Development and Product Management
* First release of web-based technology nearing completion
Outlook
Chairman Howard Kitchner, commenting on the Group Outlook, said:
"During the second half of the current year, the Company anticipates that it
will begin to bill the six contracts won this year; however, over #500,000 of
revenue associated with these contracts will not be recognised during the
current year.
The combination of the recent contract gains, current cash balance, software
maintenance contracts and the supporting line of credit provides the Company
with the operating capital to continue to pursue its objectives. The board is
also reviewing a possible move of the Company's stock market listing from the
Official List to AIM."
Contacts:
Joe Marlovits, Finance Director, Clinical Computing 020 8747 8744
www.ccl.com
Peter Binns, Binns & Co PR Ltd 020 7786 9600
Chairman's Statement
Overview
In April 2005, the board of directors appointed John Lowry as its CEO.
Following a complete review of operations, John produced a restructuring plan to
focus Company resources on commercially exploiting the Clinical Vision 4
technology across more sectors of the healthcare market.
In appointing John Lowry, the board sought to have a UK based CEO, and under
John's direction the Company is now concentrating its executive management team
in the UK. The Company has recently recruited Tim Brennan, as the Director of
Product Development. Tim joins us after working as a Senior Director at
Business Objects where he oversaw product development across four sites
(including two US offices, a European and an Indian operation). Joel Tatham who
was recruited 20 months ago to lead our development team will now be focused
full time on Product Management. Joel is now responsible for the commercial
viability of our Clinical Vision 4 product line, for identifying complementary
technologies to be incorporated within Clinical Vision 4 and evaluating the
market for new clinical applications of the Clinical Vision architecture. Both
of these product-oriented positions are based in the UK reporting to John Lowry.
The sales team has been consolidated under a single Sales Director for all
territories and I am pleased to report that since March, the Company has secured
six orders with a total value in excess of #1,100,000. Since signing our
largest contract for Clinical Vision 4 in April 2005 (previously announced with
our 2004 results statement) we have followed this with further contract gains
from all three of our geographic markets (UK, US, and Australasia). This
represents the Company's most successful six months order book position since
releasing Clinical Vision 4 in 2001. Consistent with these contract wins, our
sales pipeline report suggests procurement activity is increasing in all three
of our geographic markets.
The Company now has 18 customers under contract for Clinical Vision 4: 11
customers are now using the renal medicine application, two implementations are
nearing completion and five implementations are set to begin in the fourth
quarter.
Under the restructuring plan the executive management team is focused on
positioning Clinical Vision 4's reach beyond the renal market where we currently
derive the majority of our revenue. The Company's UK subsidiary is exploring
opportunities for Clinical Vision within the NHS including utilising Clinical
Vision 4 as a general clinical information system. Additionally the Company has
made and continues to make staffing changes to better align the staff skill sets
to deliver on this restructuring plan and since the beginning of the year
through September has initiated a 25 per cent labour turnover with no increase
in headcount.
Outlook
Better utilising electronic information in medicine continues to receive
significant interest from political leaders and healthcare administrators in the
geographic markets that we serve. The requirement to automate the healthcare
workflow process, providing seamlessly integrated information to care teams to
lower the cost of care is a primary driver in the markets we serve. This need
to bring together the administrative and clinical needs of a healthcare
organisation has required us to work more closely with complementary partners
when marketing our Clinical Vision 4 product. Through successful partnerships,
and by providing integrated solutions with our partners we will augment our
sales initiatives.
We are nearing completion of our first Web-based technology that is fully
compatible with our current Clinical Vision 4 applications. This technology
will provide us with an opportunity to offer the healthcare market deployment
options, such as a hosted service.
During the second half of the current year, the Company anticipates that it will
begin to bill the six contracts won this year, however over #500,000 of revenue
associated with these contracts will not be recognised during the current year.
As a result of delays in turning our sales opportunities to contracts and the
timing of recognising revenue on recently signed contracts it is likely that the
Company will not meet the current market forecast for 2005.
With regard to the working capital position, the Company has positive cash
balances as of the date of this statement consistent with the 30 June 2005
balance. Whilst the Company has historically used more cash in the second half
than the first half, the recent contract wins are expected to reverse this
historical trend. In addition to the current cash balance and contract backlog,
the Company has access to a further #500,000 via an unused line of credit. The
combination of the recent contract gains, current cash balance, software
maintenance contracts and the supporting line of credit provides the Company
with the operating capital to continue to pursue its objectives. The board is
also reviewing a possible move of the Company's stock market listing from the
Official List to AIM.
Trading Results
Note: All results are presented under IFRS (with restated comparatives).
Revenue for the period was #710,000 and consistent with revenue in the same
period in the prior year (2004: #728,000). Gross profit improved to #342,000
from #318,000, as a result of adjusting our headcount with respect to staff
supporting our older technologies. Administrative expenses increased from
#737,000 to #953,000 as a result of the above noted restructuring plan and the
current investment in the Clinical Vision Web technology platform. Loss per
share for the period was 2.3p compared to 2.0p for the same period in the prior
year.
Cash Flows
Cash used by operations was #491,000 compared to a cash use of #303,000 in the
same period in the prior year. The difference in cash flow between the periods
is the result of the above noted restructuring plan. In addition to the cash
balance at the end of the period of #392,000 the Company has an available unused
line of credit totalling #500,000. Following a review of management's
projections, the directors have formed a judgement at the time of approving the
financial statements, that the Company has adequate resources for the
foreseeable future.
Howard Kitchner
Chairman
28 September 2005
Unaudited consolidated income statement
Six months ended 30 June 2005
Six months Six months Year
ended ended ended
30 June 2005 30 June 2004 31 December 2004
(restated) (restated)
#'000 #'000 #'000
Continuing operations
Revenue (Note 2) 710 728 1,758
Cost of sales (368) (410) (780)
---------- ---------- ----------
Gross profit 342 318 978
Distribution costs (301) (215) (496)
Administrative expenses
Research & development (450) (383) (804)
Other (503) (354) (714)
Total administrative expenses (953) (737) (1,518)
---------- ---------- ----------
Loss from operations (912) (634) (1,036)
Investment income (expense) 16 (1) (62)
---------- ---------- ----------
Loss before tax (896) (635) (1,098)
Tax (Note 5) 159 - 325
---------- ---------- ----------
Loss for the period (737) (635) (773)
---------- ---------- ----------
Basic and diluted loss per share (Note 3) (2.3p) (2.0p) (2.4p)
----------- ---------- -----------
Unaudited consolidated statement of recognised income and expense
Six months ended 30 June 2005
Six months Six months Year
ended ended ended
30 June 2005 30 June 2004 31 December 2004
(restated) (restated)
#'000 #'000 #'000
Exchange differences on translation of foreign
operations
(23) 31 119
Loss for the period (737) (635) (773)
---------- ---------- ----------
Total recognised expense for the period (760) (604) (654)
---------- ---------- ----------
Unaudited consolidated balance sheet
30 June 2005
30 June 30 June 31 December
2005 2004 2004
(restated) (restated)
#'000 #'000 #'000
Non-current assets
Property, plant and equipment 91 110 99
---------- ---------- ----------
Current assets
Trade and other receivables 503 228 524
Cash and cash equivalents 392 1,445 876
---------- ---------- ----------
895 1,673 1,400
---------- ---------- ----------
Total assets 986 1,783 1,499
---------- ---------- ----------
Current liabilities
Trade and other payables (919) (953) (712)
---------- ---------- ----------
Net current (liabilities) assets (24) 720 688
---------- ---------- ----------
Net assets 67 830 787
---------- ---------- ----------
Equity
Share capital 1,577 1,577 1,577
Share premium account 6,125 6,099 6,099
Share option reserve 24 4 10
Translation reserve 96 31 119
Retained earnings (7,755) (6,881) (7,018)
---------- ---------- ----------
Total equity 67 830 787
---------- ---------- ----------
Unaudited consolidated cash flow statement
Six months ended 30 June 2005
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2005 2004 2004
(restated) (restated)
#'000 #'000 #'000
Net cash from operating activities (Note 4) (491) (303) (868)
Investing activities
Interest received 16 27 49
Purchases of property, plant and equipment (11) (28) (49)
---------- ---------- ----------
Net cash from (used in) investing activities 5 (1) -
---------- ---------- ----------
Net decrease in cash and cash equivalents (486) (304) (868)
Cash and cash equivalents at beginning of period
876 1,750 1,750
Effect of foreign exchange rate changes 2 (1) (6)
---------- ---------- ----------
Cash and cash equivalents at end of period 392 1,445 876
---------- ---------- ----------
NOTES:
1. Accounting policies
Basis of preparation
The accounting policies applied in these un-audited interim financial statements
are those that the group expects to apply in its annual financial statements for
the year ended 31 December 2005, which will be prepared in accordance with
International Financial Reporting Standards (IFRS), and those parts of the
Companies Act 1985 that remain applicable to companies reporting under IFRS.
The IFRS standards that will be applicable at 31 December 2005 are not known
with complete certainty at the time of preparation of these interim financial
statements, and as such the policies herein may be subject to amendment.
The interim financial statements have been prepared under the historical cost
convention.
This interim report does not constitute statutory accounts of the group within
the meaning of section 240 of the Companies Act 1985. Statutory accounts for
the year ended 31 December 2004, which were prepared under UK generally accepted
accounting principles (UK GAAP), have been filed with the Registrar of
Companies. The auditors' report on those accounts was unqualified and did not
contain a statement under section 237 of the Companies Act 1985.
Transitional arrangements
The group has taken the following optional exemptions contained in IFRS 1
'First-time Adoption of International Financial Reporting Standards' in
preparing the group's balance sheet on transition to IFRS at 1 January 2004:
* Cumulative translation differences - the cumulative translation
differences for all foreign subsidiaries have been set to zero at 1 January
2004 and exchange differences arising prior to this date will not be
recycled to the income statement.
* The group's policy for share-based payments has been applied to equity
instruments that were granted after 7 November 2002 and that had not vested
on or before 31 December 2004.
Based on the above exemptions there are no transitional adjustments to the 1
January 2004 opening balance sheet. A UK GAAP to IFRS reconciliation for the
comparative periods is included in this interim statement in Note 6.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of
Clinical Computing Plc ("the Company") and all of its subsidiary undertakings
(together, the Group).
Subsidiary undertakings are those entities controlled directly or indirectly by
the Company. Control arises when the Company has the ability to direct the
financial and operating policies of an entity so as to obtain benefits from its
activities.
On acquisition, the assets and liabilities and contingent liabilities of a
subsidiary are measured at their fair values at the date of acquisition. Any
excess of the cost of the acquisition over the fair values of the identifiable
net assets acquired is recognised as goodwill. Any deficiency of the cost of
acquisition below the fair values of the identifiable net assets acquired (i.e.
discount on acquisition) is credited to the profit and loss in the period of
acquisition. The interest of minority shareholders is stated at the minority's
portion of the fair values of the assets and liabilities recognised.
Subsequently, any losses applicable to the minority interest in excess of the
minority interest are allocated against the interest of the parent.
The results of subsidiaries acquired or disposed of during the year are included
in the consolidated income statement from the date of acquisition or up to the
effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of
subsidiaries to bring the accounting policies used into line with those used by
the Group.
All intra-group transactions, balances, income and expenses are eliminated on
consolidation.
Research and development
Expenditure on research activities is recognised as an expense in the period in
which it is incurred.
An internally generated intangible asset arising from the Group's computer
software development initiative is recognised only if all of the following
conditions are met:
* An asset is created that can be identified (such as software)
* It is probable that the asset created will generate future economic
benefits; and
* The development cost of the asset can be measured reliably.
Development costs meeting these criteria are capitalised and amortised on a
straight-line basis over their useful economic lives once the related software
product is available for use.
Other intangible assets
Intangible assets purchased separately, such as software licences that do not
form an integral part of related hardware, are capitalised at cost and amortised
over their useful economic life. Intangible assets acquired through a business
combination are initially measured at fair value and amortised over their useful
economic lives.
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation
and any accumulated impairment losses. The cost of an item of property, plant
and equipment comprises its purchase price and any costs directly attributable
to bringing the asset into use.
Depreciation is calculated on a straight-line basis to write down the assets to
their estimated residual value over their useful economic lives at the following
rates:
* Furniture 15 - 20%
* Computer equipment 25 - 33%
* Office equipment 25 - 33%
* Leasehold improvements are depreciated over the life of the lease
Leases
Leases are classified as finance leases whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee. All other
leases are classified as operating leases.
Assets held under finance leases are initially recognised as property, plant and
equipment at an amount equal to the fair value of the leased assets or, if
lower, the present value of minimum lease payments at the inception of the
lease, and then depreciated over their useful economic lives. Lease payments
are apportioned between repayment of capital and interest. The capital element
of future lease payments is included in the balance sheet as a liability.
Interest is charged to the income statement so as to achieve a constant rate of
interest on the remaining balance of the liability.
Rentals payable under operating leases are charged to the income statement on a
straight-line basis over the lease term. Operating lease incentives are
recognised as a reduction in the rental expense over the lease term.
Investments in subsidiaries
Investments in subsidiaries in the company's balance sheet are held at cost less
any accumulated impairment losses.
Impairment of tangible and intangible assets excluding goodwill
At each balance sheet date, the Group reviews the carrying amounts of its
tangible and intangible assets to determine whether there is any indication that
those assets have suffered an impairment loss. If any such indication exists,
the recoverable amount of the asset is estimated in order to determine the
extent of the impairment loss (if any). Where the asset does not generate cash
flows that are independent from other assets, the Group estimates the
recoverable amount of the cash-generating unit to which the asset belongs.
Financial instruments
The following policies for financial instruments have been applied in the
preparation of the Group's interim financial statements. Financial assets and
financial liabilities are recognised on the Group's balance sheet when the Group
becomes a party to the contractual provisions of the instrument.
Cash and cash equivalents
For the purpose of preparation of the cash flow statement, cash and cash
equivalents includes cash at bank and in hand, and short-term deposits with an
original maturity period of three months or less.
Trade and other receivables
Trade and other receivables are stated at their nominal value as reduced by
appropriate allowances for estimated irrecoverable amounts.
Trade payables
Trade payables are not interest bearing and are stated at their nominal value.
Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received,
net of direct issue costs.
Taxation
The tax expense represents the sum of the tax currently payable and deferred
tax. The tax currently payable is based on taxable profit for the year.
Taxable profit differs from net profit as reported in the income statement
because it excludes items of income or expense that are taxable or deductible in
other years and it further excludes items that are never taxable or deductible.
The Group's liability for current tax is calculated using tax rates that have
been enacted or substantially enacted by the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amounts of assets and liabilities for financial statements
and the corresponding tax bases used in the computation of taxable profit, and
is accounted for using the balance sheet liability method. Deferred tax
liabilities are generally recognised for all taxable temporary differences and
deferred tax assets are recognised to the extent that it is probable that future
taxable profits will be available against which deductible temporary differences
can be utilised.
The carrying amount of deferred tax assets is reviewed at each balance sheet
date and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the assets to be
recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset is realised. Deferred tax is
charged or credited in the income statement, except when it relates to items
charged or credited directly to equity, in which case the deferred tax is also
dealt with in equity.
Foreign currencies
Items included in the separate financial statements of Group entities are
measured in the functional currency of each entity. Transactions denominated in
foreign currencies are translated into the functional currency of the entity at
the rates prevailing at the dates of the individual transactions. Foreign
currency monetary assets and liabilities are translated at the rates prevailing
at the balance sheet date. Exchange gains and losses arising are charged or
credited to the income statement within net operating costs.
The income statement and balance sheet of foreign entities are translated into
pounds sterling on consolidation at the average rates for the period and the
rates prevailing at the balance sheet date respectively. Exchange gains and
losses arising on the translation of the group's net investment in foreign
entities, are recognised as a separate component of shareholders' equity. On
disposal of a foreign entity, the cumulative translation differences are
recycled to the income statement and recognised as part of the gain or loss on
disposal.
The most important foreign currency for the Group is the US dollar. The
relevant exchange rates for the US dollar to sterling were:
30 June 2005 30 June 2005 30 June 2004 30 June 2004 31 December 2004 31 December 2004
average closing average closing average closing
1.8702 1.8048 1.8213 1.8074 1.8341 1.9266
Revenue and profit recognition
Revenue represents the fair value of consideration received or receivable from
clients for goods and services provided by the group, net of discounts, VAT and
other sales-related taxes. Where the time value of money is material, revenue
is recognised as the present value of the cash inflows expected to be received
from the customer in settlement.
Revenue from the sale of software products with no significant service
obligation is recognised on delivery. Revenue from the sale of software
products requiring significant modification, integration or customisation is
recognised using the percentage of completion method. Revenue is only fully
recognised when no significant obligations remain and collection is probable.
The revenue and profit of contracts for the supply of professional services at
predetermined rates is recognised as and when the work is performed,
irrespective of the duration of the contract.
Revenue from software maintenance agreements is apportioned over the period to
which the agreement relates.
Any amounts invoiced in advance of being recognised as revenue are included in
the balance sheet as deferred income.
Retirement benefit costs
The Group operates only defined contribution retirement plans. The cost of
defined contribution plans is charged to the income statement as they fall due.
Share-based payments
The Group has applied the requirements of IFRS 2 Share-based Payments. In
accordance with the transitional provisions, IFRS 2 has been applied to all
grants of equity instruments after 7 November 2002 that were unvested as of 1
January 2005.
The Group issues equity-settled share-based payments to certain employees.
Equity-settled share-based payments are measured at fair value at the date of
grant. Fair value is measured by use of the Black-Scholes model. The expected
life used in the model has been adjusted, based on management's best estimate,
for the effects of non-transferability, exercise restrictions, and behavioural
considerations. The fair value determined at the grant date of the
equity-settled, share-based payments are expensed on a straight-line basis over
the vesting period, based on the Group's estimate of shares that will eventually
vest. The assumptions underlying the number of awards expected to vest are
subsequently adjusted to reflect conditions prevailing at the balance sheet
date. At the vesting date of an award, the cumulative expense is adjusted to
take account of the awards that actually vest.
2. Segmental analysis
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2005 2004 2004
#'000 #'000 #'000
Turnover by source
UK 167 149 310
USA 510 541 1,376
Other 33 38 72
--------- --------- ---------
710 728 1,758
--------- --------- ---------
Turnover by destination is not materially different from that by source.
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2005 2004 2004
#'000 #'000 #'000
Turnover by business type
Software licences 79 118 526
Services 76 59 122
Maintenance 540 535 1,082
Other 15 16 28
---------- ---------- ----------
710 728 1,758
---------- ----------- ----------
3. Loss per share
Basic loss per share has been calculated on the basis of the weighted average
number of shares in issue during the period. In each of the three periods
presented the average number of shares in issue was 31,535,361.
The loss for the period and the weighted average number of share for the
purpose of calculating the diluted earnings per share are the same as for the
basic loss per share calculation.
4. Reconciliation of operating loss to operating cash flows
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2005 2004 2004
(restated) (restated)
#'000 #'000 #'000
Loss from operations (912) (634) (1,036)
Depreciation 23 29 55
Decrease (increase) in debtors 41 96 (52)
Increase (decrease) in creditors 181 202 (8)
Share option charge 14 4 10
Research and development tax credit 162 - 163
--------- -------- -------
Net cash from operating activities (491) (303) (868)
---------- ---------- ----------
5. Tax
The tax credit of #159,000 for the six-month period ended 30 June 2005 relates
to a research and development claim for 2004. The tax credit of #325,000 for
the year ended 31 December 2004 relates to a research and development claims
from 2002 and 2003.
6. Reconciliation of UK GAAP to IFRS
Six months ended 30 June 2004 income statement IFRS
UK GAAP adjustments IFRS
#'000 #'000 #'000
Revenue 728 - 728
Cost of sales (410) - (410)
--------- -------- -------
Gross profit 318 - 318
Distribution costs (215) - (215)
Administrative expenses
Research & development (383) - (383)
Other (A) (350) (4) (354)
Total administrative expenses (733) (4) (737)
--------- -------- -------
Loss from operations (630) (4) (634)
Investment expense (1) - (1)
--------- -------- -------
Loss before tax (631) (4) (635)
Tax - - -
--------- -------- -------
Loss for the period (631) (4) (635)
--------- -------- -------
Basic and diluted loss per share (2.0p) 0.0p (2.0p)
--------- -------- -------
30 June 2004 balance sheet IFRS adjustments
UK GAAP IFRS
#'000 #'000 #'000
Equity
Share capital 1,577 - 1,577
Share premium account 6,099 - 6,099
Share option reserve (A) - 4 4
Translation reserves (B) - 31 31
Retained earnings (A)(B) (6,846) (35) (6,881)
---------- ---------- ---------
Total equity 830 - 830
---------- ---------- ---------
Year ended 31 December 2004 income statement IFRS adjustments
UK GAAP IFRS
#'000 #'000 #'000
Revenue 1,758 - 1,758
Cost of sales (780) - (780)
--------- -------- -------
Gross profit 978 - 978
Distribution costs (496) - (496)
Administrative expenses
Research & development (804) - (804)
Other (A) (704) (10) (714)
Total administrative expenses (1508) (10) (1,518)
--------- -------- -------
Loss from operations (1,026) (10) (1,036)
Investment expense (62) - (62)
--------- -------- -------
Loss before tax (1,088) (10) (1,098)
Tax 325 - 325
--------- -------- -------
Loss for the period (763) (10) (773)
--------- -------- -------
Basic and diluted loss per share (2.4p) 0.0p (2.4p)
--------- -------- -------
31 December 2004 analysis of impact on balance sheet IFRS adjustments
UK GAAP IFRS
#'000 #'000 #'000
Equity
Share capital 1,577 - 1,577
Share premium account 6,099 - 6,099
Share option reserve (A) - 10 10
Translation reserves (B) - 119 119
Retained earnings (A)(B) (6,889) (129) (7,018)
---------- ---------- ----------
Total equity 787 - 787
---------- ---------- ----------
(A)Share-based payments
The group operates two share option schemes - the Approved and Unapproved
Executive Share Option Schemes ('the Schemes').
Under UK GAAP, a charge was recorded only when an award had intrinsic value on
the date of grant. Historically, share options have only been issued with an
exercise price equal to the prevailing market price on the grant date therefore
a charge was not recorded under UK GAAP. IFRS 2 'Share-based Payment' requires
that an expense is recognised in the income statement based on the fair value of
an award on the date of grant. The expense is then spread over the option
vesting period. The fair value of share options is measured using an
option-pricing model. The Black-Scholes model has been used to determine the
fair value of options granted under the Schemes.
The impact of adopting IFRS was to increase the share-based payments expense in
the income statement. This is principally because an expense is now recognised
for share options issued under the Schemes where none was recognised under UK
GAAP. The charge under IFRS2 reflected in these statements are as follows:
#4,000 for the half year ended 30 June 2004, #10,000 for the year ended 31
December 2004 and #14,000 for the half year ended 30 June 2005 with a total
impact on equity section of the balance sheet of #24,000 at 30 June 2005.
(B)Translation reserves
The translation reserve results from exchange gains and losses arising on the
translation of the Group's net investment in its US and Australian operating
subsidiaries. The foreign exchange impact of translating foreign operations
since 1 January 2004 is as follows: #31,000 for the six-month period ended 30
June 2004 and #119,000 for the year ended 31 December 2004.
INDEPENDENT REVIEW REPORT TO CLINICAL COMPUTING PLC
Introduction
We have been instructed by the company to review the financial information for
the six months ended 30 June 2005, which comprises the consolidated income
statement, the consolidated balance sheet, the consolidated statement of
recognised income and expense, the consolidated cash flow statement and the
related notes. We have read the other information contained in the interim
report and considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.
This report, including the conclusion, has been prepared for and only for the
company for the purpose of the Listing Rules of the Financial Services Authority
and for no other purpose. We do not, therefore in producing this report, accept
or assume responsibility for any other purpose or to any other person to whom
this report is shown or into whose hands it may come save where expressly agreed
by our prior consent in writing.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority.
As disclosed in note 1, the next annual financial statements of the group will
be prepared in accordance with those IFRSs adopted for use by the European
Union. The accounting policies are consistent with those that the directors
intend to use in the next annual financial statements.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and based thereon, assessing whether the accounting policies have been applied.
A review excludes audit procedures such as tests of controls and verification of
assets, liabilities and transactions. It is substantially less in scope than an
audit and therefore provides a lower level of assurance. Accordingly, we do not
express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2005.
Baker Tilly
Chartered Accountants Registered Auditors
London
28 September 2005
This information is provided by RNS
The company news service from the London Stock Exchange
END
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