RNS Number:3941O
Total Systems PLC
10 December 2001
FOR RELEASE 10 DECEMBER 2001
TOTAL SYSTEMS plc
Interim results for the half year ended 30 September 2001
Performance ahead of target; current trading & outlook in line with
expectations for the full year
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 interim results in
respect of the half year ended 30 September 2001.
Commenting on the Company's impressive results, Terry Bourne, the Chairman,
said:
"I have pleasure in presenting a good performance for your Company at the half
year stage. This period has seen significant growth in both turnover and
profit."
Highlights
* Turnover up 79% to #2.84m (2000: #1.58m)
* Profit before tax of #772,911 (2000: #156,071), more than that
achieved in the year to March 2001
* Earnings per share increased nearly five-fold and amounted to 5.15p
(2000: 1.05p)
* Interim dividend up 12.5% to 0.9p per share
* Zero gearing and increased net assets of 31.3p per share, of which
25.6p is represented by cash
* Total anticipates that it will have a number of additional live
sites running Ultima and Optima2000+
* Company continues to invest in Ultima so as to keep the product at
the forefront of new generation fully integrated and fully functional
systems for the insurance industry that are available in the UK and
Europe
* Renewed interest in Optima2000+, Total's software system for the
Pension Funds industry
Regarding the Company's current trading and outlook, Terry Bourne said:
"The first half of the current financial year has produced revenue and profit
ahead of target and we remain on course to meet market expectations for the
year...strong long term client relationships have enabled us to secure a
larger share of available budgets...We expect to sign a number of contracts
with new clients that will give us a strong start to the next financial year.
We remain convinced that your Company has an excellent future and should
deliver significant value to shareholders in the medium and long term."
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
INTERIM RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2001
Chairman's Statement
RESULTS
I have pleasure in presenting a good performance for your Company at the half
year stage. This period has seen significant growth with turnover for the half
year amounting to #2,838,066, an increase of 79% against the corresponding
period last year. Profit before tax was #772,911 (2000: #156,071) resulting in
an earnings per share of 5.15p (2000: 1.05p).
FINANCIAL
The strength of our financial position is demonstrated by zero gearing and net
assets of 31.3p per share (2000: 24.6p), of which 25.6p per share is
represented by cash.
DIVIDEND
Your Board proposes the payment of an interim dividend of 0.9p per share, an
increase of 12.5% over last year's interim dividend of 0.8p per share. This
dividend will be paid on 23 January 2002 to all shareholders on the register
on 21 December 2001.
STRATEGIC DEVELOPMENTS
The further significant development of Ultima, our product for the insurance
and related industries, has provided significant growth opportunities. By the
end of the current financial year we anticipate that we will have a number of
additional live sites running Ultima and Optima2000+.
We aim for Ultima to be the software system of first choice in the provision
of new generation fully integrated and fully functional systems for the
insurance industry, as well as other sectors such as utilities, within the UK
and Europe. It is our intention to keep this product at the forefront of "
wall to wall" insurance/warranty systems that are so much more efficient and
cost effective than competitors' modular systems.
PRODUCTS
Ultima, available on all leading versions of UNIX, is written in the most
effective Relational Database and 4GL Technology, and incorporates WEB and EDI
capability. This product has a low cost of ownership and negligible database
administration costs due to the incorporation of "near-lights-out"
administration tools.
Optima2000+ is our product for Investment Management, Accounting
and Administration for Pension Funds. It is multi currency, has extensive
performance measurement, compliance, and reporting facilities, as well as
external links for information about securities, security prices and exchange
rates. Information on the structure of the standard index and benchmark
portfolios is also provided. The rich functionality of this product makes it
one of the most user friendly, comprehensive and completely integrated
products of its type available in the market today.
MARKET PLACE
The Board believes that next year will continue to see lower levels of
spending on information technology in the financial services sector.
Nevertheless our strong long term client relationships have enabled us to
secure a larger share of available budgets while we actively seek to expand
our client base.
Product investment has been, and will continue to be a priority,
to meet the requirements of both existing and new clients and to maintain
market advantage. Our "fast track" development process enables us to rapidly
translate original ideas into deliverable solutions and the modern
methodologies we adopt allow us to implement our systems quickly and
efficiently. These are the key differentiators that lead discerning clients to
choose Total Systems.
STAFF
Your Company's success is based upon the skill, dedication and
loyalty of our employees and I wish to extend my thanks to each member of
staff for their outstanding commitment and hard work. John Rivans, Sales
Director, has decided to retire at the end of December 2001. John has been
with the Company for more than twenty years, during which time his valuable
contribution has been much appreciated. I wish John the very best for a long
and happy retirement. Our sales team has been strengthened in the last year
and the necessary sales management is in place.
CURRENT TRADING AND OUTLOOK
The first half of the current financial year has produced
revenue and profit ahead of target and we remain on course to meet market
expectations for the year provided that no existing clients experience
unforeseen difficulties.
Your Board remains optimistic for the future but is aware that
the general economic downturn, exacerbated by recent events, has resulted in
some prospective clients delaying investment in new systems. To date this has
not had any significant effect on your Company and orders gained previously
are progressing according to plan. We expect to sign a number of contracts
with new clients over the coming months that will give us a strong start to
the next financial year.
The world is currently experiencing economic and political
uncertainty and it is investment in modern systems that will provide
considerable assistance in weathering economic turbulence. To survive,
organisations must upgrade to new systems that are able to vastly improve
efficiency, reduce costs and provide the flexibility for speedy reaction to
market conditions. In the insurance arena this is particularly true in
relation to new customer generation and the cost effective management of
claims.
A cautious approach is required when predicting the financial
outlook for the year ending 31 March 2003 and beyond. Our intention is to
continue to provide an excellent service to our clients whilst balancing
product development for long term growth with the need for profitability. We
remain convinced that your Company has an excellent future and should deliver
significant value to shareholders in the medium and long term. Our business
fundamentals are solid and we have good reason to look forward to the future
with confidence.
Terry Bourne
Chairman
10 December 2001
INTERIM RESULTS
Consolidated Profit and Loss Account
for the half year ended 30 September 2001
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended
30 30 31
September September March
2001 2000 2001
Note # # #
TURNOVER 1 2,838,066 1,584,209 3,849,292
OPERATING PROFIT 714,694 115,426 622,871
Interest Receivable 58,217 40,645 94,466
PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION 772,911 156,071 717,337
TAX ON PROFIT ON ORDINARY ACTIVITIES (234,728) (46,647) (201,248)
PROFIT ON ORDINARY ACTIVITIES AFTER
TAXATION ATTRIBUTABLE TO 538,183 109,424 516,089
SHAREHOLDERS
DIVIDENDS (94,091) (83,621) (229,957)
RETAINED PROFIT FOR THE PERIOD 444,092 25,803 286,132
Earnings per ordinary share 3 5.15p 1.05p 4.94p
Diluted Earnings per ordinary share 5.11p 1.04p 4.90p
Dividend per share 0.90p 0.80p 2.20p
INTERIM RESULTS
Consolidated Balance Sheet
at 30 September 2001
Unaudited Unaudited Audited
as at as at as at
30 30 31
September September March
2001 2000 2001
# # #
Fixed assets
Tangible assets 706,327 731,288 749,323
Current assets
Debtors 1,208,276 928,778 905,263
Cash at bank and in hand 2,672,540 1,829,159 2,198,746
3,880,816 2,757,937 3,104,009
Creditors: amounts falling due within one (1,315,037) (922,710) (1,026,488)
year
Net current assets 2,565,779 1,835,227 2,077,521
Total assets less current liabilities 3,272,106 2,566,515 2,826,844
Net assets 3,272,106 2,566,515 2,826,844
Capital and reserves
Called up share capital 522,728 522,628 522,628
Share premium account 67,397 66,327 66,327
Profit and loss account 2,681,981 1,977,560 2,237,889
Equity shareholders' funds 3,272,106 2,566,515 2,826,844
INTERIM RESULTS
Consolidated Cash Flow Statement
for the half year ended 30 September 2001
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended
30 September 30 September 31 March
2001 2000 2001
# # #
Operating activities
Cash received from customers 3,103,400 1,693,502 3,997,170
Cash payments to suppliers (438,679) (475,609) (881,067)
Cash payments to employees (969,579) (559,011) (1,376,374)
Cash for P.A.Y.E. and National (585,002) (326,596) (794,671)
Insurance
Cash paid for VAT (482,593) (233,474) (460,896)
Other business payments (66,194) (66,375) (145,705)
Net cash inflow from operating 561,353 32,437 338,457
activities
Return on investments and servicing
of finance
Interest received 58,217 40,645 94,466
Net cash inflow from returns on
investments and
servicing of finance 58,217 40,645 94,466
Taxation
Corporation tax refund - - 159,035
Capital expenditure and financial
investment
Purchase of tangible fixed (4,091) (16,793) (82,503)
assets
Sale of tangible fixed assets 3,481 81 123
Net cash outflow from capital
expenditure and
financial investment (610) (16,712) (82,380)
Equity dividends paid (146,336) (83,621)
-
Cash inflow before use of liquid
resources
and financing 472,624 56,370 425,957
Financing
Proceeds from exercise of share 1,170 200 200
options
Increase in cash in the period 473,794 56,570 426,157
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. The
abridged information for the 12 months ended 31 March 2001 has been
extracted from the Company's statutory accounts for that period, which have
been filed with the Registrar of Companies. The auditors' report on the
company's accounts for that period was unqualified and did not contain a
statement under either of sections 237(2) or 237(3) of the Companies Act
1985.
3. The calculation of earnings per share is based on a profit after taxation of
#538,183 (2000: #109,424) and a weighted average of 10,452,784 shares (2000:
10,452,494) in issue during the period.
4. It is intended to post this Statement and Report to shareholders on 12
December 2001. Copies are otherwise available from the Registered Office of
the Group at 394 City Road, London EC1V 2QA.
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