RNS Number:4497C
Total Systems PLC
14 December 1999
Total Systems plc
Interim results for six months ended 30 September 1999
Total Systems plc ("Total"), the financial services software supplier and
internet, intranet and extranet developer, announces its interim results for
the half year ended 30 September 1999.
Commenting on the Results, Terry Bourne, Chairman and Chief Executive, said:
"The year 2000 issue has continued to have a significant impact on our results
as most companies have concentrated their efforts on ensuring compliance of
their existing systems."
Highlights
* Turnover of #1.18m (1998: #1.78m)
* Loss before tax of #128,216 (1998: profit of #495,484)
* Continuing strong financial position demonstrated by net assets of 29.1p
per share, of which 23.2p is represented by cash
* Interim dividend maintained at 0.8p
* Significant investment in Ultima so as to maintain its position as the
leading edge "user oriented", "web enabled", multi currency application
package
* Relationships with a number of end users established to develop an e-
commerce product with industry wide application capability
* Focused marketing campaign has raised Total's profile and is helping to
create an increase in number of prospects
* Total's Board look forward to coming years with optimism
Regarding Total's current trading and outlook, Terry Bourne added:
"The year 2000 issue has continued to have a significant impact on our results
as most companies have concentrated their efforts on ensuring compliance of
their existing systems.
Concerns expressed in my last Chairman's statement in relation to Year 2000
fears and investment deferrals have proven to be well founded.
Nevertheless interest in our products has continued at an exceptionally high
level and we are now beginning to see these prospects placing orders. Current
indications are that order intake will increase quite rapidly once we enter
the year 2000. The switch of IT spend away from Year 2000 concerns should
increase the number of new system implementations and e-commerce applications
over future years. Companies seeking to gain commercial advantage from
utilising the Internet should provide new areas of revenue growth.
The Board looks forward to the coming year with optimism."
e-mail: info@totalsystems.co.uk web site: http://www.totalsystems.co.uk
Enquiries:
Terry Bourne, Chairman Total Systems plc 0171 294 4888
Peter Binns Binns & Co. PR Ltd 0171 786 9600
Note for City Editors:
Total Systems, the financial services software supplier, is the author and
sole distributor of both Ultima and Optima 2000+ and supplier of a wide range
of service capabilities including internet, intranet and extranet development.
Ultima is the Company's general insurance system for personal and commercial
lines. It comprises a unique combination of unprecedented flexibility, low
cost of ownership and rich functionality. Proven benefits of implementing
Ultima include high returns on investment, rapid payback, increased profits,
reduced cost of ownership, greater flexibility and rapid implementation times.
It provides a platform that puts control firmly in the hands of the business
user with internet trading now a reality and available within this product.
Optima 2000+ is the Company's fund management and accounting system for
pension funds which provides an in-house managed system that meets the
business needs of its users, and one that can adapt easily to changes in
internal, regulatory or legislative environments. It has the capability of
managing investments on an index tracking or active management basis and can
deal with the simultaneous application of both methodologies to the same
investment portfolio. In terms of compliance Total Systems consider it to be
the strongest product in its market place throughout Europe. During the
current year Kvaerner Pensions Investment Management Limited implemented
Optima 2000+ for its UK funds.
INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 1999
Chairman's Statement
RESULTS
Turnover for the period is that which was anticipated at #1,180,727, a
reduction of 34% against last year. Loss before tax was #128,216
resulting in a Loss per share of 0.88p (1998: Earnings per share 3.32p).
The year 2000 issue has continued to have a significant impact on our
results as most companies have concentrated their efforts on ensuring
compliance of their existing systems.
FINANCIAL
The strength of our financial position is demonstrated by zero gearing
and net assets of 29.1p per share, of which 23.2p per share is
represented by cash.
DIVIDEND
In view of the strength of the Company's financial position your Board
propose the payment of an unchanged interim dividend of 0.8p.
STRATEGIC DEVELOPMENTS
Currently our main markets are in the insurance and pension fund sectors
of the financial services industry. We continue to invest significantly
in the development of Ultima, our general insurance system for personal
and commercial lines, to maintain its position as the leading edge "user
oriented", "web enabled", multi currency application package.
A dedicated division has been created to focus on the major opportunities
clearly visible in the e-commerce market place into which we plan to
introduce a new product and services.
Alternative pricing structures for our existing and new products are
being introduced to offer clients greater flexibility and to attract
those companies for whom the initial capital expenditure is a barrier.
Our recent focused marketing campaign has proved extremely effective in
raising our profile and we are now beginning to experience a significant
increase in prospects over what was already a very healthy prospect base.
During the period of low staff utilisation cross training and re-training
of personnel has taken place to put your company in the strongest
possible position to take advantage of the anticipated improvement in
trading conditions.
CURRENT TRADING AND OUTLOOK
Concerns expressed in my last Chairman's statement in relation to Year
2000 fears and investment deferrals have proven to be well founded.
Nevertheless interest in our products has continued at an exceptionally
high level and we are now beginning to see these prospects placing
orders. Current indications are that order intake will increase quite
rapidly once we enter the year 2000. The switch of IT spend away from
Year 2000 concerns should increase the number of new system
implementations and e-commerce applications over future years. Companies
seeking to gain commercial advantage from utilising the Internet should
provide new areas of revenue growth.
The Board looks forward to the coming year with optimism.
Terry Bourne
Chairman
14 December 1999
e-mail: info @totalsystems.co.uk website: http://www.totalsystems.co.uk
Consolidated Profit and Loss Account for the half year ended 30 September 1999
Note Unaudited Unaudited Audited
1999 1998 1999
6 Months 6 Months 12 Months
# # #
TURNOVER 1 1,180,727 1,780,866 3,247,157
======== ======== ========
OPERATING (LOSS)/PROFIT (201,545) 376,273 427,028
Interest Receivable 73,329 119,211 202,845
------------ ------------- ------------
(LOSS)/PROFIT ON
ORDINARY ACTIVITIES
BEFORE TAXATION (128,216) 495,484 629,87
TAX ON PROFIT ON
ORDINARY ACTIVITIES 36,159 (149,905) 177,667
------------ ------------- ------------
(LOSS)/PROFIT ON
ORDINARY ACTIVITIES
AFTER TAXATION ATTRIBUTABLE
TO SHAREHOLDERS (92,057) 345,579 452,206
DIVIDENDS (83,372) (83,283) 208,253
------------ ------------- ------------
RETAINED (LOSS)/PROFI
FOR THE PERIOD (175,429) 262,296 243,953
======== ======== ========
(Loss)/Earnings per
ordinary share 3 (0.884)p 3.320p 4.34p
Diluted (Loss)/Earnings
per ordinary share (0.879)p 3.305p 4.29p
Dividend per share 4 0.800p 0.800p 2.00p
Notes:
1. The Group's turnover is derived from the writing and supply of
computer software and supply of third party software both with related
hardware in the United Kingdom. All activities derive from continuing
operations.
2. The financial information contained in this statement does not
constitute statutory accounts as defined in Section 240 of the Companies
Act 1985.
3. The calculation of earnings per share is based on a loss after
taxation of #(92,057) (1998: profit #345,579) and a weighted average of
10,414,743 shares (1998: 10,410,324) in issue during the period.
4. The dividend will be paid to shareholders on 29 February 2000 who are
on the register on 24 December 1999 (the record date).
5. It is intended to post this Statement and Report to shareholders on 17
December 1999. Copies are otherwise available from the Registered Office
of the Group at 394 City Road, London EC1V 2QA.
Consolidated Balance Sheet
At 30 September 1999
Unaudited Unaudited Audited
1999 1998 1999
6 Months 6 Months 12 Months
# # #
Fixed assets
Tangible assets 760,010 815,434 800,336
Current assets
Debtors 433,350 1,048,170 840,275
Cash at bank and in hand 2,416,106 2,512,378 2,490,651
------------- ------------- -------------
2,849,456 3,560,548 3,330,926
Creditors: amounts
falling due within one year (751,271) (1,325,947) (1,096,985)
------------- ------------- -------------
Net current assets 2,098,185 2,234,601 2,233,941
------------- ------------- -------------
Total assets less
current liabilities 2,858,195 3,050,035 3,034,277
Provisions for liabilities
and charges
Deferred taxation - (487) (2,205)
------------- ------------- -------------
Net Assets 2,858,195 3,049,548 3,032,072
------------- ------------- -------------
Capital and reserves
Called up share capital 521,077 520,516 520,710
Share premium account 60,890 59,030 59,705
Profit and loss account 2,276,228 2,470,002 2,451,657
------------- ------------- -------------
Equity shareholders' funds 2,858,195 3,049,548 3,032,072
------------- ------------- -------------
Consolidated Cash Flow Statement
For the half year ended 30 September 1999
Unaudited Unaudited Audited
1999 1998 1999
6 Months 6 Months 12 Months
# # #
Operating activities
Cash received from
customers 1,640,339 2,364,291 4,393,114
Cash payments to
suppliers (278,757) (421,540) (700,644)
Cash payments to
employees (675,330) (822,415) (1,467,613)
Cash for P.A.Y.E.
and National Insurance (410,344) (505,401) (882,411)
Cash paid for VAT (191,850) (317,403) (532,236)
Other business payments (70,924) (69,907) (156,666)
------------- ------------- -------------
Net cash inflow
from operating activities 13,134 227,625 653,544
------------- ------------- -------------
Return on investments and
servicing of finance
Interest received 73,329 119,212 202,845
Net cash inflow from
returns on investments
and servicing of finance 73,329 119,212 202,845
Taxation
Corporation tax paid (20,821) (16,798) (330,849)
Capital expenditure and
financial investment
Purchase of tangible
fixed assets (17,169) (21,067) (67,818)
Sale of tangible
fixed assets 400 1,693 1,693
------------- ------------- -------------
Net cash outflow from
capital expenditure
and financial investment (16,769) (19,374) (66,125)
------------- ------------- -------------
Equity dividends paid (124,970) (104,103) (187,386)
------------- ------------- -------------
Cash (outflow)/inflow
before use of liquid
resources and financing (76,097) 206,562 272,029
Financing
Proceeds from exercise
of share options 1,552 869 869
------------- ------------- -------------
(Decrease)/Increase
in cash in the period (74,545) 207,431 272,898
------------- ------------- -------------
END
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