RNS Number:5363V
Total Systems PLC
11 December 2000
FOR RELEASE
11 DECEMBER 2000
TOTAL SYSTEMS plc
Interim results for half year ended 30 September 2000
Return to profitability and dividend payments; strong financial position;
better 2nd half anticipated
Total Systems plc ("Total" or "the Company"), suppliers of established
software products and services to the Financial Services markets, announces
its interim results in respect of the half year ended 30 September 2000.
Commenting on the results and pick-up in orders, Terry Bourne, Total's
Chairman, said:
"It would appear that the confidence to implement new computer systems is now
returning. The confidence I expressed in my last Chairman's statement is
proving well founded with conditions improving sooner than anticipated. There
is solid evidence that those organisations that had deferred investment
decisions are now looking to invest in new systems. Recent orders gained are
progressing according to plan and new order intake is now beginning to meet
our expectations."
Highlights
* Turnover up 34% to #1.58m (1999: #1.18m)
* Return to profitability
* Profit before tax of #156,071 (1999: loss of #128,216) giving EPS of 1.05p
(1999: loss per share of 0.88p)
* Continuing strong financial position: zero gearing and net assets of
24.6p, 17.5p represented by cash
* Return to regular dividend payments, interim dividend held at 0.8p per
share (1999 interim: 0.8p per share)
* Continued investment in Ultima product enables leading edge market
position to be maintained
* Important contracts in recent months; many potential clients view the
flexibility of Ultima very positively, likely to lead to increased market
share and business across a broader spectrum of organisations
* Internet and e-business solutions developments. These encompass the
latest technologies in web design and architecture providing customers
with a fully scalable, flexible product to match changing needs
* Powerful, flexible products in Total's chosen markets, against outdated
competitive products
* Well placed to respond to challenges and opportunities offered by the
e-business market place
* Anticipate that business in this sector will reach break even by end of
2001
* New e-business products to be launched in early 2001
Regarding Total's current trading and outlook, Terry Bourne added:
"It is expected that performance will be considerably stronger in the second
half of the year resulting in a significant improvement over the first half.
This should result in market expectations being exceeded and a successful year
for your Company."
e-mail: web site: http:// web site: http://
info@totalsystems.co.uk www.totalsystems.co.uk www.totalenow.com
Enquiries:
Terry Bourne, Chairman Total Systems plc 020 7294 4888
Peter Binns/Simon Ellis Binns & Co. PR Ltd. 020 7786 9600
INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2000
CHAIRMAN'S STATEMENT
RESULTS
Turnover for the period amounted to #1,584,209, an increase of 34% against
last year. Profit before tax was #156,071 (1999: loss #128,216) resulting in
an earnings per share of 1.047p (1999: loss per share 0.884p). It would appear
that the confidence to implement new computer systems is now returning.
FINANCIAL
The strength of our financial position is demonstrated by zero gearing and net
assets of 24.6p per share, of which 17.5p per share is represented by cash.
DIVIDEND
Your Board propose the payment of an interim dividend of 0.8p per share (1999:
0.8p).
STRATEGIC DEVELOPMENTS
Our main markets remain 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 and for warranty cover products, to maintain its position as
the leading edge user oriented, web enabled, multi currency application
package. It is envisaged that in the future the flexibility of Ultima will
enable the product to be made available to other markets. This ensures that
Total will further increase sales across a broader spectrum of organisations.
Due to the product investment that has been undertaken, your company is
ideally placed to meet the requirements of both existing and new clients. The
modern methodologies we adopt allow us to implement our systems quickly and
efficiently. Additionally our "fast track" development process enables us to
rapidly translate original ideas into deliverable solutions. These are the key
differentiators that lead clients to choose Total.
We continue to develop our internet & e-commerce solutions as well as web
hosting services. A new, dynamic B2B and B2C application has been developed,
encompassing the latest technologies in web design and architecture. This
provides customers with a truly scalable and flexible product to match their
changing needs.
MARKET PLACE
Our investment in new and existing products, which has put us in such a strong
market position, will continue. Competitive products in our chosen market
places have become very dated and lack the power and flexibility of your
Company's products. Accordingly more companies are turning to us as potential
providers of their planned new systems.
CURRENT TRADING AND OUTLOOK
The confidence I expressed in my last Chairman's statement is proving well
founded with conditions improving sooner than anticipated. There is solid
evidence that those organisations that had deferred investment decisions are
now looking to invest in new systems. The recent orders gained are progressing
according to plan and new order intake is now meeting our expectations.
The e-commerce division continues to make progress and should provide new
areas of revenue growth in the medium term. It is unlikely that a break even
situation in this sector will be achieved before the end of calendar 2001 with
profitability following some eighteen months later. New methods of doing
business take time to gain mass acceptability. We plan ahead on the basis of
the prudent assumption that the critical mass required to make a success of
this new distribution channel is still two to three years in the future. Your
Company is now extremely well placed to respond to the challenges and
opportunities that the e-commerce market place is expected to offer. We look
forward to launching our new products in January 2001 with optimism.
It is expected that performance will be considerably stronger in the second
half of the year resulting in a significant improvement over the first half.
This should result in market expectations being exceeded and a successful year
for your Company. The Board looks forward to the future with increasing
confidence.
Terry Bourne
Chairman
11 December 2000
TOTAL SYSTEMS plc
Consolidated Profit and Loss Account for the half year ended 30 September 2000
Unaudited Unaudited Audited
6 Months 6 Months 12
Months
ended ended ended
30 30
September September 31 March
2000 1999 2000
Note
# # #
Turnover 1 1,584,209 1,180,727 1,958,040
Operating profit/(loss) 115,426 (201,545) (709,921)
Interest Receivable 40,645 73,329 130,332
Profit/(loss) on ordinary activities 156,071 (128,216) (579,589)
before taxation
Tax on profit on ordinary activities (46,647) 36,159 163,061
Profit/(loss) on ordinary activities after
taxation attributable to shareholders 109,424 (92,057) (416,528)
Dividends (83,621) (83,372) (83,372)
Retained profit/(loss) for the period 25,803 (175,429) (499,900)
Earnings/(Loss) per ordinary share 3 1.047p (0.884)p (4.000)p
Diluted Earnings/(Loss) per ordinary share 1.037p (0.879)p (3.970)p
Dividend per share 4 0.800p 0.800 p 0.800 p
TOTAL SYSTEMS plc
Consolidated Balance Sheet
at 30 September 2000
Unaudited Unaudited Audited
As at As at As at
30 30 31 March
September September
2000 1999 2000
# # #
Fixed assets
Tangible assets 731,288 760,010 773,465
Current assets
Debtors 928,778 433,350 414,746
Cash at bank and in hand 1,829,159 2,416,106 1,772,589
2,757,937 2,849,456 2,187,335
Creditors: amounts falling due within one (922,710) (751,271) (420,288)
year
Net current assets 1,835,227 2,098,185 1,767,047
Total assets less current liabilities 2,566,515 2,858,195 2,540,512
Net assets 2,566,515 2,858,195 2,540,512
Capital and reserves
Called up share capital 522,628 521,077 522,578
Share premium account 66,327 60,890 66,177
Profit and loss account 1,977,560 2,276,228 1,951,757
Equity shareholders' funds 2,566,515 2,858,195 2,540,512
TOTAL SYSTEMS plc
Consolidated Cash Flow Statement
for the half year ended 30 September 2000
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended
30 30 31 March
September September
2000 1999 2000
# # #
Operating activities
Cash received from customers 1,693,502 1,640,339 2,604,063
Cash payments to suppliers (475,609) (278,757) (571,927)
Cash payments to employees (559,011) (675,330) (1,270,659)
Cash for P.A.Y.E. and National (326,596) (410,344) (762,197)
Insurance
Cash paid for VAT (233,474) (191,850) (270,051)
Other business payments (66,375) (70,924) (129,040)
Net cash inflow/(outflow) from operating 32,437 13,134 (399,811)
activities
Return on investments and servicing of
finance
Interest received 40,645 73,329 130,332
Net cash inflow from returns on investments
and servicing of finance 40,645 73,329 130,332
Taxation
Corporation tax paid - (20,821) (155,519)
Capital expenditure and financial investment
Purchase of tangible fixed assets (16,793) (17,169) (96,241)
Sale of tangible fixed assets 81 400 3,179
Net cash outflow from capital expenditure and
financial investment (16,712) (16,769) (93,062)
Equity dividends paid - (124,970) (208,342)
Cash inflow/(outflow) before use of liquid
resources and financing 56,370 (76,097) (726,402)
Financing
Proceeds from exercise of share options 200 1,552 8,340
Increase/(Decrease) in cash in the period 56,570 (74,545) (718,062)
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 profit after taxation
of #109,424 (1999: loss #92,057) and a weighted average of 10,452,494
shares (1999: 10,414,743) in issue during the period.
4. The dividend will be paid to shareholders on 1 March 2001 who are on the
register on 22 December 2000 (the record date).
5. It is intended to post this Statement and Report to shareholders on 14
December 2000. Copies are otherwise available from the Registered Office of
the Group at 394 City Road, London EC1V 2QA.
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