RNS Number:8670N
CMS WebView PLC
22 June 2005
RNS Release
22 June 2005
CMS WebView plc
Final results for the year ended 31 December 2004
CMS WebView plc, provider of software systems for real-time financial data
distribution and management, reports its final results for the year ended 31
December 2004.
Business and financial highlights:
* Turnover of #839,000 (2003: #1,629,000)
* Losses before taxation at #1,693,000 (2003: #543,000)
* Net cash position of #1,461,000 as at 31 December 2004
* Strategic Review completed in April 2005 resulting in significant
ongoing cost savings and new sales and marketing approach
* Recent order from a major existing Exchange customer to enhance TDI,
delivery scheduled for June 2005
* Orders in 2004 from the Chicago Board of Trade to extend its use of TDI
for the distribution of data from three other North American exchanges
* New project to promote CMS browser-based price reporting product called
PriceView
Keppel Simpson, Chairman, said:
"We believe that the effects of the significant cost reductions will be
recognised in 2005. However, we wish to reassure all stakeholders that resources
have been effectively focused on maintaining our core services and continuing to
develop the TDI platform.
"Our strong confidence in our TDI product has again been endorsed by a recent
order from an existing major Exchange customer, who has commissioned a series of
technical enhancements in 2005. Currently we are in various discussions with new
customers, some of which may result in orders later this year.
"Whatever the outcome of the current order discussions for the remainder of
2005, we have assumed that even if we do not win any other new TDI contracts
this year, that our 2005 financial losses will be limited to a maximum of
#550,000, and that our cash reserves will be sufficient to meet working capital
requirements for 2005 and beyond."
Enquiries, please contact:
Bob Antell Neil Boom/Jenny Leahy
Chief Executive Gresham PR Ltd.
CMS WebView plc 020 7404 9000
020 7744 7722
CHAIRMAN'S STATEMENT
RESULTS
CMS had a disappointing year in which the sales performance clearly failed to
match Company and shareholder expectations. As a result of difficulties in
securing new contracts from additional international Exchange customers, in
November 2004 CMS commenced a review of its expansion strategy, particularly the
performance of its new offices in North America. The Review not only examined
CMS's new business strategy, but also all other aspects of the business,
including central administration, office locations and staffing, and the
continuing development of the core TDI software technology.
Following the Review (results previously reported to shareholders on 8 April
2005), the Board of CMS acted swiftly to reduce costs substantially and
instigate a number of new sales and marketing initiatives. The Board were aware
of its priority during this important transitional phase to concentrate on
service to existing customers, and to continue investing in the ongoing
development of TDI, the Company's wholly-owned software system product. We are
pleased to report that customer satisfaction has remained high, and that CMS has
had no service delivery issues.
In the year ended 31 December 2004, turnover was 48 per cent lower at #839,000
(2003: #1,629,000) and losses before taxation higher at #1,693,000 (2003:
#543,000). However, with a series of cost cutting measures already implemented,
the Company's balance sheet remains comparatively strong with a net cash
position of #1,461,000 as of 31 December 2004.
REVIEW OF THE BUSINESS
The Company continued to supply and maintain mission-critical TDI systems to the
Chicago Board of Trade (CBOT) and the Chicago Mercantile Exchange (CME), the
largest futures exchanges in North America, whose real-time prices are used by
traders in virtually every country around the world.
We are pleased that during 2004 the CBOT extended its use of TDI to include the
distribution of data from three other North American exchanges (Minneapolis
Grain Exchange, Kansas City Board of Trade and the Winnipeg Commodity Exchange).
A contract was also obtained from the CBOT to enhance the distribution of Dow
Jones Indexes' data which the CBOT undertakes on an exclusive basis. This
extension of the Exchange's use of TDI is an endorsement of the functionality,
reliability and performance of the TDI product in essential applications.
CMS also undertook further development work on TDI, including producing a new
Linux version to accompany the existing Windows-based one. Other enhancements
included the development of a FIX protocol delivery. We believe our full
ownership rights to TDI make it a significant CMS asset.
We continued to supply wholesale data feeds to a loyal global customer base of
quote vendor and other organisations. During 2004, we replaced our own 'ticker
plant' (i.e. the system that generates the wholesale data feed) software with
TDI itself. CMS is therefore now able to offer customers an enhanced and
improved wholesale feed product (now called TDI Feed). As well as enhanced
functionality, an added benefit of improving our ticker plant has been to reduce
fixed costs, as both the TDI and TDI Feed products can now be supported by a
single team. Currently 17 global companies have adopted TDI-based services for
the distribution and/or collection of financial data.
Regarding other overheads, following the Strategic Review CMS successfully
renegotiated contracts with a number of its suppliers and advisers on more
favourable terms. One of the largest savings resulted from relocating Head
Office staff to the same premises as our technical staff. The move was smoothly
accomplished and customer service unaffected.
Recently we commenced a project to further promote an entry-level browser-based
price reporting product called PriceView. Currently there are around 70
PriceView clients from a broad range of market sectors including trading
companies, soft commodity brokers and private clients. The real-time data source
for the PriceView product is our own TDI Feed.
Looking forward, in addition to attempting to increase the current end user
client base of PriceView, we will also devote internal resource in the second
half of 2005 to determining whether there is sufficient demand among the
commodities industry in general for this quality but cost-effective product. We
will also explore opportunities to produce versions of PriceView, but under
white label, for medium-to-large trading organisations.
Lastly, shareholders were aware that CMS had entered early discussions with a
potential acquisition target. As previously reported, the directors of CMS felt
that the proposed structure and timing of the deal and potential benefits were
not in the best interests of CMS shareholders and discussions were therefore
terminated.
OUTLOOK
We believe that the effects of the significant cost reductions will be
recognised in 2005. However, we wish to reassure all stakeholders that resources
have been effectively focused on maintaining our core services and continuing to
develop the TDI platform.
Our strong confidence in our TDI product has again been endorsed by a recent
order from an existing major Exchange customer, who has commissioned a series of
technical enhancements in 2005. Currently we are in various discussions with new
customers, some of which may result in orders later this year.
Whatever the outcome of the current order discussions for the remainder of 2005,
we have assumed that even if we do not win any other new TDI contracts this
year, that our 2005 financial losses will be limited to a maximum of #550,000,
and that our cash reserves will be sufficient to meet working capital
requirements for 2005 and beyond.
Keppel Simpson
Chairman
21 June 2005
Consolidated profit and loss account
for the year ended 31 December 2004
Notes 2004 2003
#'000 #'000
Turnover 839 1,629
Cost of sales 1,097 1,122
------- ----------
Gross (loss)/ profit (258) 507
Business development and marketing 641 231
Administrative expenses 882 848
------- ----------
Operating loss (1,781) (572)
Interest receivable 88 29
------- ----------
Loss on ordinary activities before taxation (1,693) (543)
Taxation - 31
------- ----------
Loss on ordinary activities after taxation (1,693) (512)
Dividends - equity - -
------- ----------
Retained loss for the year (1,693) (512)
======= ==========
Earnings per share (p) 3 (2.116) (0.921)
Dividends per share (p) - -
There are no recognised gains or losses other than those as set out above.
Turnover is wholly derived from continuing activities.
Balance sheets
as at 31 December 2004
Group Company
Notes 2004 2003 2004 2003
#'000 #'000 #'000 #'000
Fixed assets
Intangible assets 14 43 14 43
Tangible assets 55 50 55 50
Investments - - - -
------- ------ ------ -------
69 93 69 93
Current assets
Debtors 147 235 147 235
Cash at bank and in hand 1,461 3,329 1,461 3,329
------- ------ ------ -------
1,608 3,564 1,608 3,564
Creditors: amounts falling
due within one year 449 736 455 736
------- ------ ------ -------
Net current assets 1,159 2,828 1,153 2,828
------- ------ ------ -------
Total assets less current
liabilities 1,228 2,921 1,222 2,921
======= ====== ====== =======
Capital and reserves
Called up share capital 160 160 160 160
Share premium account 4,615 4,615 4,615 4,615
Profit and loss account (3,547) (1,854) (3,553) (1,854)
------- ------ ------ -------
Shareholders' funds 4 1,228 2,921 1,222 2,921
======= ====== ====== =======
Approved and signed on behalf of the Board on 21 June 2005.
K M Simpson
R E Antell
Consolidated cash flow statement
for the year ended 31 December 2004
Notes 2004 2003
#'000 #'000
Net cash outflow from operating activities 5 (1,905) (371)
Returns on investments and servicing of
finance
Interest received 88 29
Taxation 9 92
Capital expenditure and financial
investment
Purchase of intangible fixed assets - -
Purchase of tangible fixed assets (60) (23)
-------- ---------
Net cash flow from capital expenditure
and financial investment (60) (23)
Equity dividends paid - -
-------- ---------
Financing
Issue of ordinary shares - 2,500
-------- ---------
Net cash flow from financing - 2,500
-------- ---------
(Decrease)/increase in cash 6 (1,868) 2,227
======== =========
Notes to the final results
for the year ended 31 December 2004
1. Basis of consolidation
The Group accounts consolidate the accounts of the Company and its wholly owned
subsidiaries, Commodity Market Services Limited and CMS WebView Inc.
The Company has taken advantage of the exemption in section 230(1)-(4) of the
Companies Act 1985 not to present its own profit and loss account.
2. IT development costs
IT software development and the investigation of relevant technology is
performed mainly in-house. The costs are written off as incurred to the profit
and loss account.
3. Earnings per share
2004 2003
Weighted average number of shares in issue
during the year and used to calculate:
Loss attributable to equity shareholders
(#'000) (1,693) (512)
Ordinary shares in issue during the year 80,000,000 55,616,438
Earnings per share (p) (2.116) (0.921)
=========== ==========
4. Reconciliation of movements in shareholders' funds
2004 2003
#'000 #'000
Loss for the financial year (1,693) (512)
Ordinary dividends - -
New share capital issued - 50
Net premium on shares issued - 2,281
---------- -----------
Net additions to/(reductions from)
shareholders' funds (1,693) 1,819
Shareholders' funds at the start of the
year 2,921 1,102
---------- -----------
Shareholders' funds at the end of the
year 1,228 2,921
========== ===========
5. Reconciliation of operating loss to net cash flow from operating activities
2004 2003
#'000 #'000
Operating loss (1,781) (572)
Depreciation 55 65
Amortisation of IT development
costs 29 29
Profit on sale of investments - -
Increase/(decrease) in debtors 79 (16)
(Decrease)/increase in creditors (287) 123
---------- ----------
Net cash outflow from operating
activities (1,905) (371)
========== ==========
6. Reconciliation of net cash flow to movement in net funds
2004 2003
#'000 #'000
(Decrease)/increase in cash in the year (1,868) 2,227
Net cash at 1 January 3,329 1,102
------------ -----------
Net cash at 31 December 1,461 3,329
============ ===========
7. Copies of the Report and Accounts for the year ended 31 December 2004 will be
will be sent to shareholders in due course and will be available from Corporate
Synergy Plc, 12 Nicholas Lane, London EC4N 7BN.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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