Comino PLC - Interim Results
November 27 1997 - 2:34AM
UK Regulatory
RNS No 9523q
COMINO PLC
26th November 1997
COMINO ANNOUNCES MAIDEN INTERIM PROFIT
(Interim results for the half year to 30 September 1997)
Comino plc, the group of specialist computer software
companies which floated on AIM in April this year, has
reported its maiden interim results.
Turnover at #5.1million
Profit before tax increased by 40% to #830,000
Earnings per share up 11% to 5.3p
Improved performance across all subsidiary companies:
- Excelsis acquired to complement Context
- ISE and Prologic both expanded customer base
Purchased minority interest in ISE
Prospects
"The Group has established a solid platform from which it can
now move forward and generate strong results. In particular,
ISE with Workflow applications for the efficient delivery of
services to customers via 'call centre' style operations, is
now positioned to contribute to the Group's existing
applications as well as those that result from further
acquisitions."
Comino plc/1
CHAIRMAN'S STATEMENT
Comino is pleased to announce its maiden interim results since
listing on AIM in April of this year. The group has performed
well to 30 September 1997 and the improvement in performance
for the period was reflected across all subsidiary companies.
Prospects are good and in addition Comino has achieved notable
business progress.
The recent fluctuation in your company's share price reflects
speculation and general market anxieties rather than the
underlying strength of the Group. Comino's focus is business
solutions using proven technology for specific market sectors
and as such it is unaffected by a range of factors which have
caused market concern in the technology sector. The Group
continues to apply prudent accounting and revenue recognition
policies.
Immediately prior to the publication of these results, Comino
purchased the remaining 37% of Image Systems Europe (ISE) to
cement the Group's market lead in the application of
specialist Workflow and Electronic Document Management
Systems. The consideration was 802,106 shares and #880,000 in
cash and loan notes and this acquisition will enhance earnings
per share.
On 6 October 1997, Comino acquired the business of Excelsis
Ltd, a competitor in Housing Systems, and transferred this to
its Context subsidiary. The total consideration was #2.25m of
which #657,000 was paid in cash. The benefits are a strong
technical fit, the addition of 100 Housing Associations to the
existing base of 68 customers, a new product which extends the
target market to small and medium sized Housing Associations
and establishment of the Group as a force in Local Authority
Housing with twenty new sites. The gross profit from
recurring revenue in Context now exceeds #3m per annum and the
acquisition will bring the critical mass and economics of
scale important to a market leader. The acquisition will
contribute to profits in the second half and more
significantly in the next financial year.
Comino plc/2
ISE has added a further five Local Authorities and three
Pension Fund Management companies to its customer list and has
opened up the potential for Workflow in both areas. Prologic,
with its enterprise resource management solution for the
fashion and clothing industry, has performed well and added
four new names to its base of thirty-four customers.
The Group has established a solid platform from which it can
now move forward and generate strong results. In particular,
ISE with Workflow applications for the efficient delivery of
service to customers via 'call centre' style operations, is
now positioned to contribute to the Group's existing
applications as well as those that result from further
acquisition. The Board of Directors looks forward confidently
to the future and wishes to thank the hard working and
professional staff in all the Comino companies for their very
positive contribution.
MIKE BROOKE
Chairman
Comino plc
Consolidated Profit and Loss Account
6 months to 8 March 8 March
30 1996 to 1996 to
September
30 30 31 March
September September 1997
1997 1996
#'000 #'000 #'000
Turnover 5,087 3,258 7,792
Cost of sales (1,839) (1,380) (2,875)
Gross profit 3,248 1,878 4,917
Administrative expenses (2,510) (1,314) (3,563)
Operating profits 738 564 1,354
Interest receivable 92 31 71
Interest payable 0 (1) (5)
Profit on ordinary 830 594 1,420
activities before taxation
ationtaxataxation
Tax on profit on ordinary (201) (146) (292)
activities
Profit on ordinary 629 448 1,128
activities after taxation
Minority interest - equity (54) (33) (130)
Profit for the financial 575 415 998
period
Dividend proposed 0 0 (201)
Retained profit for the 575 415 797
period
Earnings per share 5.30p 4.76p 11.46p
Fully diluted earnings per 4.89p 4.25p 9.95p
share
Dividends
In line with statements made at the time of the flotation no
interim dividend will be paid in respect of the year ending 31
March 1998 but the Directors intend to propose a final
dividend to be paid in July 1998. In respect of subsequent
years, the Directors propose to pay interim dividends in
January and final dividends in July.
Comino plc
Consolidated Balance Sheet
30 30 31 March
September September
1997 1996 1997
#'000 #'000 #'000
Tangible fixed assets 254 230 256
Current assets
Freehold property 0 450 0
Stocks 226 62 175
Debtors 3,105 2,655 2,491
Cash at bank and in hand 4,005 1,012 1,894
7,336 4,179 4,560
Creditors falling due within (1,964) (1,473) (1,866)
one year
Net current assets 5,372 2,706 2,694
Total assets less current 5,626 2,936 2,950
liabilities
Creditors falling due after (201) (478) (4)
more than one year
Deferred income (2,003) (1,603) (1,667)
3,422 855 1,279
Capital and reserves
Share capital 552 479 479
Share premium account 1,867 426 426
Merger reserve (434) (379) (434)
Profit and loss account 1,372 415 797
Shareholders' fund 3,357 941 1,268
Minority interests 65 (86) 11
3,422 855 1,279
Comino plc
Consolidated Cash Flow Statement
6 months 8 March 1996 8
to to 1996to March1996
to
1996
1996to
30 30 September 31 March
September
1997 1996 1997
#'000 #'000 #'000
Net inflow from operating 589 (407) 1,006
activities
Net returns on investments
and servicing
of finance
Interest received 92 31 71
Interest paid 0 (1) (5)
92 30 66
Tax paid 0 0 (289)
Capital expenditure
Purchase of tangible fixed (81) (17) (110)
assets
Sale of tangible fixed 2 0 3
assets
Net cash outflow from (79) (17) (107)
capital expenditure
Acquisitions and deposits
Acquisition of subsidiary 0 1,135 1,135
undertakings
Disposal of subsidiary 0 0 50
undertakings
Net cash inflow from 0 1,135 1,185
acquisitions
Financing
Issue of shares (net of 1,514 0 0
costs)
Repayment of borrowings (5) 0 (6)
Net cash inflow/(outflow) 1,509 0 (6)
from financing
Management of liquid
resources
Increase in short term (2150) 0 (1,000)
deposits
Increase/(decrease in cash) (39) 741 855
Comino plc
Notes to the Interim Accounts
1 The charge for taxation is based on the estimated
effective rate for the financial year allowing for tax
losses brought forward from prior periods.
2 The calculation of earnings per share for the six months
ended 30 September 1997 is based on the profit for the
financial period of #575,000 (1996: #415,000) and on
10,860,917 (1996: 8,708,282) ordinary shares being the
average number of shares in issue during the period.
3 The interim statement, which has been prepared on the
same accounting basis as those set out in the financial
statements for the period ended 31 March 1997, was
approved by the board on 26 November 1997. The foregoing
financial information does not represent accounts within
the meaning of S240 of the Companies Act 1985 and has not
been reported on by the auditors or delivered to the
Registrar of Companies.
4 The above results for the period ended 31 March 1997 have
been abridged from the full Group accounts for that
period, which received an unqualified auditors' report
and which have been delivered to the Registrar of
Companies.
5 Copies of the interim report will be sent to shareholders
and are also available at the company's registered
office, 2 The Courtyard, Meadowbank, Furlong Road, Bourne
Road, Bucks, SL8 5AJ.
Review Report by the Auditors to Comino plc
We have reviewed the interim financial information for the six
months ended 30 September 1997 set out on pages 2 to 4 which
is the responsibility of, and has been approved by, the
Directors. Our responsibility is to report on the results of
our review.
Our review was carried out having regard to the Bulletin
'Review of Interim Financial Information' issued by the
Auditing Practices Board. This review consisted principally
of applying analytical procedures to the underlying financial
data, assessing whether accounting policies have been
consistently applied, and making enquiries of management
responsible for financial and accounting matters. The review
excluded audit procedures such as test of controls and
verification of assets and liabilities, and was therefore
substantially less in scope than an audit performed in
accordance with Auditing Standards. Accordingly, we do not
express an audit opinion on the interim financial information.
On the basis of our review:
i in our opinion the interim financial information has been
prepared using accounting policies consistent with those
adopted by Comino plc in its financial statements for the
period ended 31 March 1997; and
ii we are not aware of any material modifications that
should be made to the interim financial information as
presented.
For further information:
Garth Selvey, Chief Executive Shirley Whiting
Paul Clifford, Finance Director Citigate Communications Ltd
Comino plc Tel (today) 0171 282 8000
Tel (today) 0171 282 8000 (thereafter) 0113 297 9899
(thereafter) 01628 525433
GRANT THORNTON
REGISTERED AUDITORS
CHARTERED ACCOUNTANTS
END
IR EQFFLDFKEFKE
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