Policy Master Group - Interim Results
September 20 1999 - 3:30AM
UK Regulatory
RNS No 6905r
POLICY MASTER GROUP PLC
20 September 1999
POLICY MASTER GROUP PLC
INTERIM REPORT
HIGHLIGHTS
* Turnover up 53% to #7.715 million (1998: #5.054 million)
* Operating profit (before goodwill amortisation)up 37% to
#639,000 (1998: #468,000)
* Adjusted earnings per share 4.24p
* First revenues from e-commerce
* Two acquisitions successfully integrated
REVIEW OF RESULTS
I am delighted to report that first half-year results for 1999
show continued growth in both turnover and profitability.
Turnover of #7.7 million was achieved (#5.1 million in first half-
year 1998). This represents a 53% uplift, following sizeable deployment
of new systems, successes in solution sales and the emergence
of electronic commerce as a business line for the company.
Operating profit before goodwill amortisation and interest
was #639,000 (#468,000), an increase of 37%.
Adjusted earnings per share (EPS) was 4.24p and is based on
profit attributable to equity shareholders excluding goodwill.
An interim dividend of 1.0 pence per ordinary share will be paid
on 29 October 1999 to all shareholders on the register at the
close of business on 1 October 1999.
Principal sales growth has been achieved from the new sales areas
introduced since the first half of 1998. These include:
* Sirius Solutions to insurance companies and larger
intermediaries
* Aquarius software packages to the smaller brokers
* Special Projects to the affinity and tied agent broker market
* The Swift range of software for Independent Financial Advisers.
ELECTRONIC COMMERCE
Included within the solutions revenue line are the Group's
first revenues from electronic commerce projects. More importantly,
the period has seen the arrival of e-commerce in the Insurance market.
The Group has adopted a strategy of selling the enabling
technology to both existing and new entrant insurance providers. The Group
is now handling a significant prospect pipeline in this area and
confidently expects revenues in the second half-year and beyond to show
further growth.
The Group has identified this very real opportunity for growth
which needs to be supported by proper investment. In response, the Group
has taken a number of actions during the period:
* Continued conversion of existing products such as GEMINInet
to be web-enabled
* Development of new solutions such as PM Online and of
digital television capabilities
* The launch of a new team under the PMe brand, to provide a
total solution to customer needs, interfacing with key partners such
as Compaq and Microsoft
* Enhancing the capabilities of the team by the addition of
Media Maker.
As a consequence, the Group has invested heavily in
infrastructure that has, in part, impacted upon the net margins achieved. The
other sizeable impact upon margins results directly from the higher
than usual level of hardware sales emanating from the Special
Projects channel to tied agents.
ACQUISITIONS
During the period, the Group successfully entered into
negotiations to acquire MediQuote and Media Maker. These acquisitions were
completed on 29 June and 20 July 1999 respectively.
The MediQuote business is based upon the industry's only
Private Medical Insurance comparative quotation software. It is intended
to develop an improved version of this product that will be capable
of realising the considerable e-commerce potential for this line
of business.
Media Maker was acquired to allow the Group to present
specialist internet, intranet and multi-media design capabilities to
complement its existing e-commerce solutions.
PROSPECTS
Policy Master is well placed to lead the adoption of
electronic commerce in the general insurance market. It is close to
completion and delivery of our first digital television project and has
recently been awarded another major development project from a new entrant
in the market.
Our capabilities span a range of access channels (internet,
extranet, internet, digital and interactive television) and several classes
of insurance. Solutions developed can support insurer-to-
consumer, insurer-to-intermediary and consumer-to-intermediary
communication.
In conclusion the Board are confident of its trading performance
in the balance of the year
John Kimberley
Chairman
Group Balance Sheet
Unaudited Audited
As at As at
30 June 31 December
1999 1998
#'000 #'000
Fixed Assets
Intangible assets 3,087 2,992
Tangible assets 1,500 1,462
------- ------
4,587 4,454
------- ------
Current Assets
Stocks 36 144
Debtors 5,160 3,195
Cash at bank and in hand 79 123
------- ------
5,275 3,462
Creditors:
amounts falling due
within one year (3,353) (2,816)
------- ------
Net current assets 1,922 646
Total assets less current
liabilities 6,509 5,100
Creditors: amounts falling
due after more than one
year (1,346) (745)
Accruals and
deferred income
Deferred income (658) (202)
------- ------
4,505 4,153
------- ------
------- ------
Capital and Reserves
Called up share capital 145 143
Share capital to be issued - 250
Share premium account 2,569 2,321
Merger reserve 453 453
Profit & loss account 1,338 986
------- -------
4,505 4,153
------- -------
Shareholders' funds:
Equity 4,503 4,151
Non-equity 2 2
------- ------
4,505 4,153
------- ------
------- ------
Group Profit and Loss Account
For the six months ended 30 June 1999
Unaudited Audited
Six months Year to
to 30 June 31 December
1999 1998 1998
#'000 #'000 #'000
Turnover 7,715 5,054 11,338
Cost of Sales (4,703) (2,886) (6,235)
------- ------- -------
Gross Profit 3,012 2,168 5,103
Distribution costs (1,047) (633) (1,534)
Administration costs
(excluding goodwill
amortisation) (1,326) (1,067) (2,509)
------- ------- -------
Operating profit before
goodwill amortisation 639 468 1,060
Goodwill amortisation (105) (57) (129)
Operating Profit 534 411 931
Interest receivable 41 10 39
Interest payable and
similar charges (75) (257) (273)
------- ------- -------
Profit on ordinary
activities before taxation 500 164 697
Tax on profit on
ordinary activities - - -
Profit for the period 500 164 697
------- ------- -------
Equity dividends on
ordinary shares (148) - (141)
Non-equity dividend on cumulative
participating preferred
ordinary shares - (2) (2)
------- ------- -------
Retained profit
for the period 352 162 554
------- ------- -------
------- ------- -------
Earnings per
ordinary share 3.51p 1.32p 5.88p
Fully diluted earnings
per ordinary share 3.50p 1.32p 5.86p
Dividends per
ordinary share 1.0p nil 1.0p
There are no recognised gains or losses for the period other than
the profit for the period.
1. Earnings Per Ordinary Share
The calculation of basic earnings per ordinary share is based
on earnings of #500,181 (June 1998: #162,585, December 1998:
#695,549),being profit for the half year of #500,181 (June 1998:
#164,058, December 1998: #697,022) less cumulative participating
preferred ordinary dividends of #Nil (June 1998: #1,473, December 1998:
#1,473), and on 14,265,253 ordinary shares (June 1998: 9,573,077,
December 1998: 11,834,988), being the weighted average number of
ordinary shares in issue during the period.
The diluted earnings per share is based on profit for the half
year of #500,181 (June 1998: #162,585, December 1998: #695,549), and
on 14,268,411 (June 1998: 9,573,077, December 1998: 11,863,149)
ordinary shares, calculated as follows:
June 1999 June 1998 December 1998
Basic weighted average
number of shares 14,265,253 9,573,077 11,834,988
Dilutive potential ordinary shares:
Executive share options 3,158 - 33
Deferred consideration - - 28,128
14,268,411 9,573,077 11,863,149
2. Basis of Preparation of Interim Financial Information
The interim financial information has been prepared on the basis
of the accounting policies set out in the Group financial statements
for the year ended 31 December 1998.
3. Publication of Non-Statutory Accounts
The financial information contained in this interim statement does
not constitute statutory accounts as defined in section 240 of
the Companies Act 1985. The financial information for the full
preceding year is based on the statutory accounts for the financial year
ended 31 December 1998. Those accounts, upon which the auditors issued
an unqualified opinion, have been delivered to the Registrar
of Companies.
Copies of the Interim Financial Statement are being sent to
all shareholders. Further copies are available from the
Company's registered office, Policy Master House, Reddicroft, Sutton
Coldfield, West Midlands, B73 6BN.
4. Year 2000 Update
We reported in our Report and Accounts, issued in April 1999, that
our plan for delivering products to the market and installing upgrades
to customers with maintenance contracts had been completed. We
also reported that the last internal system would be replaced or
upgraded by the end of this month and this remains the case.
Whilst it is impossible to give absolute assurances, the
Directors believe that all of our major systems are year 2000 compliant
and, therefore, we do not expect any significant failures or
disruptions to arise from issues with our systems or products.
As stated in our Report and Accounts, the majority of any year
2000 project costs have been incurred and any further costs are not
likely to be material.
END
IR ALLSTADIDLAA
Parkmead (LSE:PMG)
Historical Stock Chart
From Sep 2024 to Oct 2024
Parkmead (LSE:PMG)
Historical Stock Chart
From Oct 2023 to Oct 2024
