TTS Total Systems

RNS No 6570e
TOTAL SYSTEMS PLC
1st July 1998

TOTAL SYSTEMS plc

Chairman's Statement

Performance for the year has proved satisfactory and in line with expectations.
Turnover has increased by 26% to #4,134,866. Profit before tax at #1,019,675 is
147% up on last year, with earnings per share at 6.80p increasing by 146%.
Consequent upon the improvement in performance a final dividend of 1.0p per
share is proposed, making the total dividend for the year 1.65p. This represents
an increase of 32%.

The current financial year has started with a large number of prospects; the
speed of decision making is encountering some delays due to year 2000, with the
possibility of demand levelling off. Much current investment by users is going
into systems to overcome year 2000 problems, rather than into new core systems.
It is significant that many systems require expensive maintenance leaving many
companies unable to deliver cost effective service to their customers. Growth
for our Ultima insurance system continues with ongoing and planned further
development of this package assuring its position as a "leading edge" solution
for medium and large users. Development of the Optima investment management
package continues and its prospects are bright.

Current development of our generic applications software is particularly
exciting as it enables the timescale and cost of implementation in most
application areas to be significantly reduced. Cost reduction achieved in client
operating expenses has been as much as 50%.

The breadth of our general service capabilities continues to grow, leading to an
increase in the number of clients across a range of industry sectors. A prime
example is where our web team have been retained by a major manufacturer to
design and implement multi-lingual, world wide, intranet and internet solutions
to interface with a system successfully implemented by Total Systems, using the
latest development and database technologies.

We continue to actively seek larger office premises in London from which we can
run an increasingly efficient centralised operation.
Future development of and investment in the business remains your Board's
priority as being the key to maximising share value.

The financial strength of the company is demonstrated by cash of 21.3p per share
and net assets of 26.8p per share

Skill shortages have been well publicised in our industry resulting in
increasing salaries that can not be sustained. In the last year our investment
in training and retraining staff should put us in a strong position for the
future. The commitment and dedication of our staff can not be overstated. It is
they who have enabled this excellent result to be achieved. The existing profit
share and share option schemes, which align their interests with those of our
shareholders, will ensure that they receive rewards commensurate with their
efforts. During the year a long term loyalty bonus scheme was also introduced to
encourage our staff to develop a rewarding career with Total Systems.

30 June 1998                                        Terry Bourne
                                                    Chairman  
e-mail: info@totalsystems.co.uk

http://www.totalsystems.co.uk

TOTAL SYSTEMS plc


FINAL RESULTS ANNOUNCEMENT

                                                  Year Ended        Year Ended
                                                  31/3/98           31/3/97
                                                     #                 #  
TURNOVER                                          4,134,866         3,279,609


OPERATING PROFIT                                    904,763           345,219

Interest Receivable                                 114,912            67,326
                                                  -------------  -------------
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION     1,019,675           412,545

TAX ON PROFIT ON ORDINARY ACTIVITIES               (320,243)         (133,248)
                                                  -------------     -------- 
PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION 
FOR THE FINANCIAL YEAR                              699,432           279,297

DIVIDENDS                                          (171,297)         (126,788)
                                                  ------------- --------------
RETAINED PROFIT FOR THE FINANCIAL YEAR              528,135           152,509
                                                  ------------  -------------- 
EARNINGS                                            699,432           279,297
                                                  -----------   --------------

Earnings per share                                  6.80p              2.76p

Dividend per share                                  1.65p              1.25p

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 ofthe Companies Act 1985.

3. It is intended to post the Annual Statement and Report to shareholders on 7
July 1998. Copies are otherwise available from the Registered Office of the
Group at 392/4 City Road, London ECIV 2QA.

4. The dividend will be paid to shareholders on 17 September 1998 who are on the
Register on 17 July 1998 (the record date).

5. The calculation of earnings per share is based on profit after taxation of
#699,432 (1997: #279,297) and a weighted average of 10,288,654 shares (1997:
10,127,090) in issue during the period.

6. Cash balances at 31 March 1998 #2,217,753 (1997: #1,224,520).

7. Net Current Assets at 31 March 1998 #1,937,831 (1997: #1,319,154).


END


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