RNS Number:0691O
Total Systems PLC
18 December 2006
FOR RELEASE 7:00 AM 18 DECEMBER 2006
TOTAL SYSTEMS plc
Unaudited Interim Results for the half year ended 30 September 2006
Total Systems plc ("Total" or "the Company"), suppliers of cost effective,
flexible, software systems for the financial services industry, primarily in the
insurance and warranty sectors, announces its interim results for the half year
ended 30 September 2006.
Financial Highlights
* Revenue #1.689m (2005: # 1.419m)
* Loss before tax # (302)k (2005: # (61)k)
* Basic Loss Per (2.12)p (2005: (0.44)p)
Share
* Interim dividend Nil (2005: 0.525p)
* Gearing Nil (2005: Nil)
* Net assets per 37.16p (2005: 37.86p)
share
* Cash per share 29.53p (2005: 31.70p)
Product Summary
Ultima, the complete insurance and warranty solution, continues to bring
significant business benefits to clients including:
* Low cost of ownership.
* Integrated solution.
* Flexible and designed for change with Business Configurator.
* Easy integration with external systems.
* Service Oriented Architecture.
Sales and marketing agreements have been signed with Invu, for electronic
document management, and with Contemi for PriceBuilder, their dynamic pricing
optimiser.
Regarding the Company's current trading and outlook, Terence Bourne commented:
"Trading since the half year continues at a reduced rate and our prospects for
the full financial year reflect this. Sales and marketing are pursuing all
possible opportunities and the Board expects positive results in the medium to
long term.
The Company's finances remain on a strong footing with discretionary costs being
controlled. The Board will initiate all measures necessary to ensure the
long-term prospects of the Company."
E-mail: ir@totalsystems.co.uk web site: www.totalsystems.co.uk
Enquiries:
Terence Bourne, Chairman Total Systems plc 020 7294 4888
Granville Harris, Finance Director Total Systems plc 020 7294 4888
Notes for Editors:
Based in the City of London Total provides cost effective flexible software
systems for the financial services sector, primarily in the insurance and
warranty sectors, as well as complementary IT consultancy, development,
integration and support services.
The Company has a full listing on the London Stock Exchange.
Significant investment has been made by the Company in developing Ultima, the
general insurance system for personal and commercial lines. Examples of Total's
clients for Ultima include Axa Insurance Services (Denplan), DSG International,
HSBC Insurance and Zurich Insurance Company (Navigators & General).
The Company also markets the Invu electronic document management system and
PriceBuilder, the dynamic pricing optimiser, from Contemi.
Chairman's Statement
During the first six months of the financial year the Company has made
considerable progress in building its new business pipeline and meeting its
strategic objective of developing a wider footprint in general insurance. Since
the annual report the Company has signed sales and marketing agreements with
Invu, a market leader in the Electronic Document Management arena with exclusive
re-selling rights for the general insurance sector, and with Contemi, a
Norwegian company that has developed a dynamic pricing product that enables
insurers to react with speed to competition and maximise profits. The market
remains very competitive but both our clients and new business prospects are
showing increasing interest in the high quality products in our portfolio and we
therefore remain optimistic. I believe that the strength of our products will
show through in due course. Our highly experienced technical staff, who have
extensive knowledge of the insurance and warranty industries, continue to
enhance and develop our product range and capabilities.
Results
Revenue for the half year was # 1,688,588 (2005: #1,419,101) and the loss before
tax was #302,055 (2005 loss: #61,309) resulting in a loss per share of 2.12p
(2005: 0.44p).
Financial
Zero gearing and net assets of 37.16p per share (2005: 37.86p) of which 29.53p
per share (2005: 31.70p) is represented by cash continues to demonstrate our
financial strength during this difficult trading period.
Dividend
Your Board does not propose payment of an interim dividend (2005: 0.525p). This
is a reflection of the results for the half year and the Company's immediate
prospects for the remainder of this financial year.
Strategy
Total Systems is committed to the financial services market. Our strategy is to
provide innovative software products together with support and consulting
services to enable financial services companies to rapidly launch new products,
take advantage of new channels to market and to improve efficiency.
Products
Ultima is a customer oriented policy management system for complete insurance
and warranty policy lifecycle management encompassing quotations, underwriting,
claims, accounting, broker management, management information and reporting.
Targeted at insurers and warranty providers Ultima seeks to facilitate maximum
efficiency while assuring regulatory compliance and enabling clients to quickly
adapt to changing business conditions. Ultima can run over 30 lines of business
concurrently and is noted for its flexibility and reliability. It is also
available on a Service Oriented Architecture basis which means that individual
business components can be deployed even more cost effectively. The Business
Configurator facility enables clients to make their own amendments and enhance
or launch new products without the need for programming work.
The Company is also marketing Invu, an electronic document management solution
and PriceBuilder from Contemi, a dynamic pricing optimiser.
Operations
Operations have been diligent in their support of clients and, with active
account management, this has resulted in an increase in revenue in the half
year. As indicated in the annual report, Shell are moving their fund management
operations to Holland and we will continue to support them at a reduced level in
the interim until this move is completed. Another client, Bluesure, has closed
its operations. Due to the investment in progressing the Company's strategy
there has been an increase in costs that has resulted in a loss for the period.
Market place
The general insurance market place for replacement and new products remains
subdued with intense competition for any potential clients. The Company has
already made significant strides in increasing its presence in the market place
as a result of the new products. This heightened profile should enable us to
build closer relationships with insurers.
Personnel
I would like to extend my warmest appreciation to all our staff for their
efforts. As always I am impressed by their dedication and willingness.
Current trading and outlook
Trading since the half year continues at a reduced rate and our prospects for
the full financial year reflect this. Sales and marketing are pursuing all
possible opportunities and the Board expects positive results in the medium to
long term.
The Company's finances remain on a strong footing with discretionary costs being
controlled. The Board will initiate all measures necessary to ensure the
long-term prospects of the Company.
Terence Bourne
Chairman
15 December 2006
TOTAL SYSTEMS plc
Consolidated Income Statement
For the half year ended 30 September 2006
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended
30 September 30 September 31 March
Note 2006 2005 2006
# # #
Continuing operations
Revenue 2 1,688,588 1,419,101 3,488,309
Operating (Loss)/Profit (373,255) (139,390) 143,558
Interest receivable and similar income 71,243 78,087 141,080
Interest payable and similar charges (43) (6) (6)
(Loss)/Profit on ordinary activities before (302,055) (61,309) 284,632
taxation
Taxation 78,530 15,055 (58,110)
(Loss)/Profit after taxation for the period (223,525) (46,254) 226,522
Basic (loss)/earnings per ordinary share 5 (2.12)p (0.44)p 2.15p
Diluted (loss)/earnings per ordinary share 5 (2.12)p (0.44)p 2.13p
Consolidated Balance Sheet
As at 30 September 2006
Unaudited Unaudited Audited
as at as at as at
30 September 30 September 31 March
2006 2005 2006
Note # # #
ASSETS
Non-current assets
Property, plant & equipment 790,841 653,522 822,074
Current assets
Trade and other receivables 623,414 607,739 853,752
Cash and cash equivalents 3,106,166 3,335,457 3,224,945
Total current assets 3,729,580 3,943,196 4,078,697
TOTAL ASSETS 4,520,421 4,596,718 4,900,771
LIABILITIES
Current liabilities
Trade and other payables (549,404) (492,387) (628,748)
Current tax liabilities (52,567) (121,473) (52,567)
Total current liabilities (601,971) (613,860) (681,315)
Non-current liabilities
Deferred tax liabilities (9,239) - (5,544)
TOTAL LIABILITIES (611,210) (613,860) (686,859)
NET ASSETS 3,909,211 3,982,858 4,213,912
Shareholders equity
Issued share capital 525,978 525,978 525,978
Share premium 83,010 83,004 83,010
Retained earnings 3,273,223 3,373,876 3,591,424
Stock option reserve 27,000 - 13,500
TOTAL EQUITY 8 3,909,211 3,982,858 4,213,912
Consolidated Cash Flow Statement
For the half year ended 30 September 2006
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended
30 September 30 September 31 March
Note 2006 2005 2006
# # #
Operating activities
Cash received from clients 2,345,057 1,885,123 3,987,797
Cash payments to suppliers (554,777) (357,175) (667,571)
Cash payments to employees (900,347) (891,516) (1,671,894)
Cash paid for PAYE and National
Insurance (549,343) (455,519) (916,832)
Cash paid for VAT (389,421) (255,819) (561,826)
Other business payments (23,330) (15,629) (35,694)
Cash (outflow)/inflow from operating
activities 7 (72,161) (90,535) 133,980
Income tax paid - - (121,472)
Net cash (outflow)/inflow from operating
activities (72,161) (90,535) 12,508
Cash flows from investing activities
Interest received 71,243 78,087 141,080
Sale of plant and equipment 100 - -
Purchase of plant and equipment ((23,242) (27,781) (249,107)
Net cash inflow/(outflow) from investing
activities 48,101 50,306 (108,027)
Cash flows from financing activities
Share option receipts - - 6
Interest paid (43) (6) (6)
Equity dividends paid (94,676) (189,352) (244,580)
Net cash outflow from financing
activities (94,719) (189,358) (244,580)
Net change in cash and cash equivalents (118,779) (229,587) (340,099)
Opening cash and cash equivalents 3,224,945 3,565,044 3,565,044
Closing cash and cash equivalents 3,106,166 3,335,457 3,224,945
Notes to the Interim Report:
1. The financial information contained in this statement does
not constitute the statutory accounts as defined in section 240 of the Companies
Act 1985. The abridged information for the 12 months ended 31 March 2006 has
been extracted from the Group's statutory accounts for that period, which have
been filed with the Registrar of Companies. The auditors report on the Group's
accounts for that period were unqualified and did not contain a statement under
Section 237(2) or Section 237(3) of the Companies Act 1985. Prior year
comparatives are unaudited.
2. The Group's revenue 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 accounting policies followed in the interim financial
report are in accordance with IFRS and are consistent with the prior periods. A
full list of the accounting policies under IFRS was disclosed in the Group's
statutory accounts for the year ended 31 March 2006.
4. No interim dividend has been declared.
5. The calculation of basic and diluted loss per share is
based on a loss after taxation of # 223,525 (2005: #46,254) and a weighted
average of 10,519,553 shares (2005: 10,519,553) in issue during the period.
6. It is intended to post this Interim Report to shareholders
on 20 December 2006. Copies will also be available from the Registered Office of
the Group at 394 City Road, London, EC1V 2QA.
7. Reconciliation of operating (loss)/profit to cash (outflow)/
inflow from operating activities
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended
30 September 30 September 31 March
2006 2005 2006
# # #
Operating (loss)/profit (373,255) (139,390) 143,558
Depreciation charges 54,475 35,099 87,873
Gain on sale of equipment (100) - -
Decrease/(increase) in trade and other receivables 312,563 131,815 (129,253)
(Decrease)/increase in current liabilities (79,344) (118,059) 18,302
Change in share based payments 13,500 - 13,500
Cash (outflow)/inflow from operating activities (72,161) (90,535) 133,980
8. Changes in consolidated equity shareholders' equity
Issued Share Retained Stock Total
share premium earnings option equity
capital reserve
# # # # #
As at 1 April 2005 525,978 83,004 3,609,482 - 4,218,464
Loss after tax for the half year - - (46,254) - (46,254)
Final dividend paid - - (189,352) - (189,352)
As at 30 September 2005 525,978 83,004 3,373,876 - 3,982,858
Profit after tax for the half year - - 272,776 - 272,776
Interim dividend paid - - (55,228) - (55,228)
Funds received on grant of options - 6 - - 6
Share based payments - - - 13,500 13,500
As at 31 March 2006 525,978 83,010 3,591,424 13,500 4,213,912
Loss after tax for the half year - - (223,525) - (223,525)
Final dividend paid - - (94,676) - (94,676)
Share based payments - - - 13,500 13,500
As at 30 September 2006 525,978 83,010 3,273,223 27,000 3,909,211
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR AKOKKPBDDABD
Total Systems (LSE:TTS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Total Systems (LSE:TTS)
Historical Stock Chart
From Jul 2023 to Jul 2024
