RNS Number:7738D
CybIT Holdings PLC
14 November 2002
CYBIT HOLDINGS PLC
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2002
Highlights
Cybit Holdings Plc, one of the UK's fastest growing and most innovative
telematics service providers, today announces its interim results for the six
months ended 30 September 2002.
Unaudited Unaudited Audited
6 months ended 30 6 months ended 30 15 months ended 31
September 2002 September 2001 March 2002
#'000 #'000 #'000
Turnover 2,235 44 623
Operating profit / (loss) before depreciation and 100 (689) (1,814)
goodwill amortisation and interest (EBITDA)
Pre - tax loss before depreciation and goodwill (276) (638) (1,535)
amortisation after interest costs
Key points
* Cash generative in the first half of the year.
* Company delivering profits on an EBITDA basis in the first half.
* Significant increase in turnover following Fleetstar acquisition in
February 2002.
* Fleetstar fully integrated into the Cybit structure by April 2002 with
operational efficiencies being achieved.
* Launch of a number of technology advances to widen the Company's solutions
portfolio, which are already starting to develop significant revenue
streams.
* Strategic partnerships with Lex Vehicle Leasing and Norwich Union
representing additional channels to market that will allow the Company to
accelerate growth and increase market share.
Neil Johnson, Chairman of Cybit commented:
"We have made good progress in the period and have delivered a solid set of
results. It is testament to our strong management team that we have delivered
EBITDA profits for the period. The outlook for Cybit is good and we look forward
to developing the business further, taking advantage of the firm foundations we
have put in place."
For further information please contact:
Richard Horsman Chief Executive, Cybit Holdings Plc
01480 389100
Jonathon Brill Bell Pottinger Financial
020 7861 3232
Chairman's Statement
Introduction
Despite tough trading conditions within both global and UK markets, Cybit has
continued to build upon its position as one of the fastest growing and most
innovative telematics service providers in the UK. It is particularly
encouraging that the Company delivered an EBITDA profit of #100,000 on first
half revenues of #2.2million.This represents substantial growth over full year
revenue performance of #623,000 during 2001.
Financial Results
Cybit's turnover was #2.2million with an EBITDA profit of #100,000. This
turnover and profit excludes deferred revenue amounting to #382,000 which
represents the conservative revenue recognition accounting policy that the Board
has decided to adopt.
Even more importantly in today's financial climate, Cybit was net cash
generative during the period. Cash in hand as at 30 September 2002 had increased
by around 50% to #310,000 compared with #214,000 at 31 March 2002. This has been
achieved through a combination of a strong sales performance coupled with a
tight focus on both cost and cash management.
Business Update
Cybit now has more than 350 customers using a broad range of products and
services from our continually expanding solutions portfolio. This represents an
installed base of more than 4,000 fixed and mobile assets, and it is
particularly encouraging that more than 20% of orders during the period came
from existing Cybit customers who were purchasing additional products and
services from the Company.
The Board firmly believes that our success reflects the fact that an increasing
number of UK companies recognise the enhanced benefits to both the fleet
operator and driver offered by the Cybit open platform telematics approach. It
is now widely recognised that, whilst a focus on operational efficiencies is key
to achieving bottom line performance, it is also important that corporate
governance is maintained in such areas as duty of care and other emerging
legislative issues.
Following the acquisition of Fleetstar assets from Trafficmaster in February, I
am pleased to report that the integration of the Fleetstar business within the
Cybit company structure was completed by the end of April 2002. Further
operational efficiencies have been achieved through consolidation of the
customer services and technical operations into a single site based at our
Godmanchester office.
Cybit launched a number of new technology advances during the first half of
2002. The most significant of these was the launch of the Internet-based,
Fleetstar On-line service. This solution was released at the end of May 2002 and
by the end of September there were 41 live customers representing more than 600
installed units.
The Fleetstar On-line service was enhanced in June 2002 with the integration of
Trafficmaster's Smartnav intelligent satellite navigation solution which
combines off-board navigation, real-time traffic and fleet management
capabilities into a single telematics device.
In addition, Cybit has launched a major new upgrade to the cybitfleet.com
platform that will encompass new core functionality including support for GPRS.
For the first time, this will allow for the development of cost effective,
real-time tracking applications and the transmission of volume data between
vehicle and base over the GSM network.
Cybit is continuing to develop channels to market that will allow the Company to
accelerate growth and increase market share. In May 2002, Cybit announced a
strategic partnership with Norwich Union as part of its major Roadsense
initiative to help reduce fleet accident rates. Following on from this, in July
2002, Cybit announced a strategic partnership with Lex Vehicle Leasing (LVL)
within which the two companies will deliver advanced telematics and fleet
management capabilities to both new and existing LVL customers. Cybit has
already received orders as a direct result of these relationships and expects a
contribution from these and similar partnerships to be announced during the
second half of the year.
Outlook
The outlook for the business is good. As stated in the Annual Report, your Board
will continue to maintain a focus on development and growth within the UK market
such that the Company moves towards sustainable profitability in the near term.
Opportunities for growth through both organic and acquisition activity will
continue to be explored in line with available resources.
Finally, I would like to thank our dedicated and loyal team for their help and
support during what has been a very successful first half.
Neil Johnson
Chairman
14 November 2002
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the 6 months ended 30 September 2002
Unaudited Unaudited Audited
6 months ended 30 6 months ended 30 15 months ended 31
September 2002 September 2001 March 2002
# # #
Turnover 2,235,117 44,054 623,463
Cost of sales (613,297) (244,711) (327,459)
___________ ____________ ____________
Gross profit / (loss) 1,621,820 (200,657) 296,004
Administrative expenses
Other operating expenses (1,522,122) (488,472) (1,814,145)
Depreciation and goodwill (197,713) (56,817) (119,137)
amortisation
___________ ____________ ___________
Total administrative expenses (1,719,835) (545,289) (1,933,282)
___________ ____________ ___________
Operating loss (98,015) (745,946) (1,637,278)
Net interest and financing costs (375,500) 51,386 (16,554)
___________ ____________ ___________
Loss on ordinary activities before taxation (473,515) (694,560) (1,653,832)
Tax on loss on ordinary activities - - -
___________ ____________ ___________
Retained loss set against reserves (473,515) (694,560) (1,653,832)
___________ ____________ ___________
Loss per share
Basic (0.07)p (0.11)p (0.27)p
___________ ____________ ___________
CONSOLIDATED BALANCE SHEET
As at 30 September 2002
Unaudited Unaudited Audited
6 months ended 30 6 months ended 30 15 months ended 31
September 2002 September 2001 March 2002
# # #
Fixed Assets
Intangible assets 932,159 82,206 858,232
Tangible assets 390,271 167,187 544,959
___________ ____________ ____________
1,322,430 249,393 1,403,191
Current assets
Stocks 128,023 63,090 110,116
Debtors 1,416,698 180,292 1,265,151
Called up share capital not paid 8,260 8,260 8,260
Cash at bank and in hand 310,410 1,670,371 214,309
___________ ___________ ____________
1,863,391 1,922,013 1,597,386
Creditors:amounts falling due within one year (995,366) (200,302) (688,703)
___________ ____________ ____________
Net current assets 868,025 1,721,711 909,133
___________ ____________ ____________
Total assets less current liabilities 2,190,455 1,971,104 2,312,324
Creditors : amounts falling due after more than (416,188) - (64,542)
one year
Deferred income
Provisions for liabilities and charges (140,000) - (140,000)
___________ ____________ ____________
1,634,267 1,971,104 2,107,782
___________ ____________ ____________
Capital and reserves
Called up share capital 6,725,444 6,132,944 6,725,444
Share premium account 1,746,731 1,590,122 1,746,731
Other reserve (4,090,553) (4,881,017) (4,090,553)
Profit and loss account (2,747,355) (870,945) (2,273,840)
___________ ____________ ____________
Shareholders' funds 1,634,267 1,971,104 2,107,782
___________ ____________ ____________
The interim financial information was approved by the Board of Directors on 14
November 2002 and was signed on its behalf by
Richard Horsman Kevin Lawrence
Chief Executive Finance Director
CONSOLIDATED CASH FLOW STATEMENT
For the 6 months ended 30 September 2002
Unaudited Unaudited Audited
6 months ended 30 6 months ended 30 15 months ended 31
September 2002 September 2001 March 2002
# # #
Net cash inflow / (outflow) from operating 515,312 (898,123) (2,450,871)
activities
___________ ____________ ____________
Returns on investments and servicing of finance
Interest received 4,650 51,818 79,808
Finance costs of assigning debts to finance (380,150) - (95,502)
companies
Interest paid - (432) (860)
___________ ____________ ____________
Net cash (outflow) / inflow from returns on (375,500) 51,386 (16,554)
investments and servicing of finance
___________ _____________ ____________
Taxation - (97) (193)
___________ ____________ ____________
Capital expenditure
Purchase of tangible fixed assets (27,428) (20,198) (111,748)
Purchase of intangible fixed assets (76,533) (2,369) (130,582)
Sale of tangible fixed assets 60,250 - -
___________ ____________ ____________
Net cash outflow from capital expenditure (43,711) (22,567) (242,330)
___________ ____________ ____________
Acquisitions
Purchase of business - - (704,803)
___________ ____________ ____________
Net cash outflow from acquisitions - - (704,803)
___________ ____________ ____________
Financing
Issue of shares - 254 2,565,303
Pre-merger issue of shares of subsidiary - 1,360,317
undertaking
Expenses paid in connection with share issues - (324,315)
Capital element of finance lease rental - (3,333) -
payments
___________ ____________ ____________
Net cash (outflow) / inflow from financing - (3,079) 3,601,305
___________ ____________ ____________
Increase / (decrease) in cash 96,101 (872,480) 186,554
___________ ____________ ____________
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
For the 6 months ended 30 September 2002
NET CASH INFLOW / (OUTFLOW) FROM OPERATING ACTIVITIES
Unaudited Unaudited Audited
6 months ended 30 6 months ended 30 15 months ended 31
September 2002 September 2001 March 2002
# # #
Operating loss (98,015) (745,946) (1,637,278)
Depreciation and amortisation 197,713 56,187 119,137
Increase in stock (58,899) (63,090) (36,894)
Increase in debtors (207,814) (70,426) (460,051)
Increase / (decrease) in creditors 682,327 (74,848) (465,785)
Issue of shares in lieu of bonus - - 30,000
___________ ____________ ___________
Net cash inflow / (outflow) from operating 515,312 (898,123) (2,450,871)
activities
___________ ___________ ____________
RECONCILIATION OF MOVEMENTS IN NET CASH
1 April 2002 Cash flow 30 September 2002
# # #
Cash in hand and at bank 214,309 96,101 310,410
___________ ____________ ____________
RECONCILIATION OF MOVEMENTS IN GROUP SHAREHOLDERS' FUNDS
Unaudited Unaudited Audited
6 months ended 30 6 months ended 30 15 months ended 31
September 2002 September 2001 March 2002
# # #
Loss for the period (473,515) (694,560) (1,653,832)
Issue of shares in the period - 254 3,072,175
Other reserve arising on merger with subsidiary - - 1,309,130
undertaking
___________ ____________ ____________
Net (decrease) / increase in shareholders' (473,515) (694,306) 2,727,473
funds
Opening shareholders' funds 2,107,782 2,665,410 (619,691)
___________ ___________ ____________
Closing shareholders' funds 1,634,267 1,971,104 2,107,782
___________ ____________ ____________
NOTES TO THE FINANCIAL STATEMENTS
1. The interim financial information does not constitute statutory accounts for
the purpose of section 240 of the Companies Act 1985. The figures for the
period ended 31 March 2002 have been extracted from the Group accounts for
that period. Those financial statements have been delivered to the Registrar
of Companies and included an auditors' report, which was unqualified.
2. With the exception of the adoption of FRS 19 "Deferred Tax" the interim
financial information has been prepared using the same accounting policies
and estimation techniques as set out in the Group accounts for the period
ended 31 March 2002. The unprovided deferred tax balance relates to losses
incurred in the business. The Board is of the opinion that, taking into
account the recent results, it would be inappropriate to recognise any
deferred tax assets in respect of these losses. Consequently no prior year
adjustment has been required to implement this new accounting standard.
3. The basic loss per share has been calculated based on the loss on ordinary
activities after taxation and the weighted average number of ordinary shares
of 1p each in issue for the period of six months to 30 September of
672,544,350 (September 2001: 613,294,350 and March 2002: 605,232,741).
4. A copy of the Interim Statement is being sent to all shareholders and copies
are available for collection from the Company's Registered Office at the
address below:
Cybit Holdings Plc
IT House
Chord Business Park
London Road
Godmanchester
Cambridgeshire
PE29 2NU
www.cybit.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
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