RNS Number:1682G
Total Systems PLC
2 July 2001
FOR RELEASE
2 JULY 2001
TOTAL SYSTEMS plc
Preliminary results for the year ended 31 March 2001
Performance ahead of market expectations; dividend up 175%; outlook promising
Total Systems plc ("Total" or "the Company"), suppliers of established
software products and services to the insurance sector of the financial
services market and related industries, announces its final results in respect
of the year ended 31 March 2001.
Commenting on the Company's results and, in particular, its strong performance
in the second half, Terry Bourne, the Chairman, said:
"Performance for the financial year 2001 has been above expectations with our
results being influenced by a strong take up in the second half of the
financial year of our product for the insurance and related industries."
Highlights
* Turnover up 97% to #3.85m (2000: #1.96m)
* Profit before tax of #717,337 (2000: loss before tax #579,589)
* Earnings per share amounted to 4.94p (2000: loss per share 4.00p)
* Proposed final dividend of 1.4p, making a total dividend of 2.2p, up
175%
* Zero gearing and net assets of 27.04p per share, of which 21.04p is
represented by cash
* Notable new contracts include Dixons Group plc, The Caravan Club and
Navigators & General (a part of Zurich Insurance Company)
* Continued investment in core ULTIMA product enables Total's leading
edge market position to be retained with interest continuing to grow
in a number of new industry sectors
* Improved turnover and profit outlook for 2001/02
Regarding the Company's current trading and outlook, Terry Bourne said:
"Your Company is now in an exceptionally strong position to take advantage of
the improvement in trading conditions we are now experiencing. The first half
of the current financial year has started far more strongly than the same
period last year. There is good reason to believe that we will show
additional growth for the coming year in terms of turnover and profitability."
e-mail: info@totalsystems.co.uk web site: http://www.totalsystems.co.uk
Enquiries:
Terry Bourne, Chairman Total Systems plc 020 7294 4888
Granville Harris, Finance Director Total Systems plc 020 7294 4888
Simon Ellis/Peter Binns Binns & Co. PR Ltd 020 7786 9600
TOTAL SYSTEMS plc
FINAL RESULTS FOR THE YEAR ENDED 31 MARCH 2001
Chairman's Statement
RESULTS
Performance for the financial year 2001 has been above expectations with our
results being influenced by a strong take up in the second half of the
financial year of our product for the insurance and related industries. The
Company maintained its recovery in the financial period under review after a
difficult year 2000, which was severely impacted by Y2K issues. Turnover for
the year was #3,849,292, an increase of 97% over the previous year (2000: #
1,958,040). The profit before tax was #717,337 (2000: Loss before tax #
579,589) resulting in earnings per share of 4.94p (2000: Loss per share
4.00p).
DIVIDEND
Your Board is proposing the payment of an increased final dividend of 1.4p due
to the Company's strong financial position, making the total dividend for the
year 2.2p. This represents an increase of 175% over last year's dividend and
an increase of 10% over the 1999 dividend.
FINANCIAL
Our financial strength is demonstrated by zero gearing, net assets of 27.04p
per share of which 21.04p per share is represented by cash. The dividend is
covered 2.24 times and return on capital employed is 25.38%.
STRATEGIC DEVELOPMENTS
The Company's main focus is on the insurance sector of the financial services
and related industries, an area in which we have had success in the past year.
It is being proven that Ultima has a far wider application than just for the
traditional insurance industry and considerable investment in this product is
continuing.
Our rapid product development tool, Product Developer Plus, enables users to
develop new financial and service products quickly and cost effectively,
irrespective of the currency, as well as operating in parallel with the euro.
This tool can also be used with applications outside the insurance industry.
One area where we consider Ultima is highly appropriate for use is in the
utilities industry. The international market place is a further area for
expansion.
External system interfaces enable Ultima to co-habit with a wide range of
other platforms and applications. The underlying software can operate on any
open system including AIX and all UNIX variations as well as on Microsoft NT.
A pilot simulation has been achieved running under LINUX but we will not
pursue this avenue further until the operating system becomes more widely
accepted.
Chairman's Statement (continued)
Together with many others in the industry, we have found that the e-commerce
market is evolving in a different manner, and at a slower pace, than that
which was originally anticipated. However, the skill sets and experience we
have gained are proving highly beneficial in relation to the further
development of Ultima.
CURRENT TRADING AND OUTLOOK
Your Company is now in an exceptionally strong position to take advantage of
the improvement in trading conditions we are now experiencing. The first half
of the current financial year has started far more strongly than the same
period last year. There is good reason to believe that we will show additional
growth for the coming year in terms of turnover and profitability.
Interest in our Ultima product continues to grow, both in relation to internet
trading and generally.
Research has shown that the insurance industry needs to modernise its systems
and working practices with efficient and cost effective operations if it is to
prosper in the future. Current market conditions and events support the
results of this research.
Ultima provides the ideal platform to enable such companies to meet the
prerequisites for survival. Robust reliable technology and cost effectiveness
are two compelling criteria for choosing database technology. Combine this
with a much lower visible cost of ownership than any competitor for the
underlying embedded database software, then their way forward is clear.
This successful product and a growing order pipeline in its core sector and
the potential to enter other appropriate industries, should enable your
Company to continue to make progress over the coming years.
I would like to thank the Company's employees for their hard work during a
demanding year. It is their dedication and enthusiasm that has enabled growth
to be resumed.
Terry Bourne
Chairman
2 July 2001
TOTAL SYSTEMS plc
Consolidated Profit and Loss Account for the year ended 31 March 2001
Note 2001 2000
# #
TURNOVER 2 3,849,292 1,958,040
======== ========
OPERATING PROFIT/(LOSS) 622,871 (709,921)
Interest Receivable 94,466 130,332
------------- -------------
PROFIT/(LOSS) ON ORDINARY ACTIVITIES BEFORE 717,337 (579,589)
TAXATION
TAX (CHARGE)/CREDIT ON
PROFIT/(LOSS) ON ORDINARY ACTIVITIES (201,248) 163,061
------------- -------------
PROFIT/(LOSS) ON ORDINARY 516,089 (416,528)
ACTIVITIES AFTER TAXATION
DIVIDENDS (229,957) (83,372)
------------- -------------
AMOUNT TRANSFERRED TO/(FROM) RESERVES
286,132 (499,900)
======== ========
Earnings/(Loss) per share 5 4.94p (4.00)p
Diluted Earnings/(Loss) per share 4.90p (3.97)p
Dividend per share 6 2.20p 0.80p
Notes:
1. The statutory accounts for the year ended 31 March 2000 have been delivered
to the Registrar of Companies.
2. 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.
3. The financial information contained in this statement does not constitute
the statutory accounts for the years ended 31 March 2000 and 2001, as defined
in Section 240 of the Companies Act 1985, but is derived from those accounts.
The auditors have reported on those accounts; their reports were unqualified.
4. The announcement has been prepared on the basis of accounting policies as
per the prior year.
5. The calculation of earnings per share is based on a profit after taxation
of #516,089 (2000: loss #416,528) and a weighted average of 10,452,529 shares
(2000: 10,424,815) in issue during the period.
6. An interim dividend of 0.80p per share (2000: 0.80p) was paid to
shareholders on 1 March 2001. It is proposed to pay a final dividend for the
year, to all shareholders on the register on 13 July 2001 (the record date),
of 1.40p per share on 13 August 2001 (2000: nil).
7. It is intended to post the Annual Statement and Report to shareholders on 5
July 2001. Copies are otherwise available from the Registered Office of the
Group at 394 City Road, London EC1V 2QA. The Annual General Meeting will be
held at 394 City Road, London EC1V 2QA on Friday 27 July 2001 at 10.00 a.m.
TOTAL SYSTEMS plc
Consolidated Balance Sheet
At 31 March 2001
2001 2000
# # # #
Fixed assets
Tangible assets 749,323 773,465
Current assets
Debtors 905,263 414,746
Cash at bank and in hand 2,198,746 1,772,589
3,104,009 2,187,335
Creditors: amounts falling due within
one year (1,026,488) (420,288)
Net current assets 2,077,521 1,767,047
Total assets less current liabilities 2,826,844 2,540,512
Capital and reserves
Called up share capital 522,628 522,578
Share premium account 66,327 66,177
Profit and loss account 2,237,889 1,951,757
Equity shareholders' funds 2,826,844 2,540,512
TOTAL SYSTEMS plc
Consolidated Cash Flow Statement for the year ended 31 March 2001
2001 2000
# # # #
Operating activities
Cash received from customers 3,997,170 2,604,063
Cash payments to suppliers (881,067) (571,927)
Cash payments to employees (1,376,374) (1,270,659)
Cash for P.A.Y.E. and National Insurance (794,671) (762,197)
Cash paid for VAT (460,896) (270,051)
Other business payments (145,705) (129,040)
Net cash inflow/(outflow) from operating
activities 338,457 (399,811)
Return on investments and servicing of
finance
Interest received 94,466 130,332
Net cash inflow from returns on investments
and servicing of finance
94,466 130,332
Taxation
Corporation tax refunded/(paid) 159,035 (155,519)
Capital expenditure and financial investment
Purchase of tangible fixed assets (82,503) (96,241)
Sale of tangible fixed assets 123 3,179
Net cash outflow from capital expenditure
and financial investment (82,380) (93,062)
Equity dividends paid (83,621) (208,342)
Cash inflow/(outflow) before use of liquid
resources and financing 425,957 (726,402)
Financing
Proceeds from exercise of share options 200 8,340
Increase/(decrease) in cash
in the period 426,157 (718,062)
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