RNS Number:3065G
Total Systems PLC
13 December 2004
FOR RELEASE 7:00 AM 13 DECEMBER 2004
TOTAL SYSTEMS plc
Unaudited Interim results for the half year ended 30 September 2004
Results in line with market expectations; dividend held
Total Systems plc ("Total" or "the Company"), suppliers of software systems for
leaders embracing the future in financial services, announces its preliminary
results for the half year ended 30 September 2004.
Commenting on the Company's results Terry Bourne, Chairman, said:
"Performance for the half year to 30 September 2004 was in line with the Board's
expectations. "
Financial Highlights
( Turnover #1.697m (2003: # 2.001m)
( Profit before tax #137k (2003: # 381k)
( Basic EPS 1.04p (2003: 2.51p)
( Interim dividend 1.05p (2003: 1.05p)
( Gearing Nil (2003: Nil)
( Net assets per share 37.58p (2003: 36.96p)
( Cash per share 32.75p (2003: 33.42p)
Regarding the Company's current trading and outlook, Terry Bourne added:
"Trading continues at a reasonable level. Until new business materialises there
is unlikely to be any significant change in performance.
The Company's finances remain on a sound footing with costs being held under
strict control and our strong balance sheet being maintained. "
E-mail: info@totalsystems.co.uk web site: www.totalsystems.co.uk
Enquiries:
Terry 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 software, support and expertise for
leaders embracing the future in financial services to help them realise their
business vision as shown by the success of their many clients.
The Company gained a full listing on the London Stock Exchange in 1995.
Total's clients for Ultima are Corinthian (to become HSBC Insurance from 1/1/
05), Axa Insurance Services (Denplan), Bluesure, Dixons, Civil Service
Healthcare, The Caravan Club, UIA and Zurich Insurance Company (Navigators &
General).
Chairman's Statement
Results
Performance for the half year to 30 September 2004 was in line with the Board's
expectations. While turnover has reduced, the company has remained profitable by
controlling costs. Turnover for the half year was # 1,696,642 (2003:# 2,000,586)
and profit before tax was # 136,878 (2003: # 381,061) resulting in earnings per
share of 1.04p (2003: 2.51p).
Financial
Zero gearing and net assets of 37.58p per share (2003: 36.96p), of which 32.75p
per share (2003: 33.42p) is represented by cash, demonstrates our financial
strength. The proposed dividend is covered 0.99 times (2003: 2.4 times).
Dividend
Payment of an interim dividend of 1.05p per share is proposed by the Board. This
is the same as last year's interim and will be paid on 1 February 2005 to all
shareholders on the register on 24 December 2004.
Strategy
We aim to help leaders in financial services embrace the future by delivering
software, support and expertise to realise their business vision. Our focus is
on the insurance, warranty and fund management sectors of the financial services
industry and the Board continues to invest significantly in the development of
products. Yet again we have been ranked in the top 700 companies in the UK for
absolute R&D spend by the DTI.
Considerable investment in management, marketing and specialised training for
staff has been undertaken during the period under review, in order to assist in
our pursuit of new business.
Close relationships with existing customers are continuing to mutual benefit.
Prospective clients are given a full range of pricing and delivery options
including 24/7 support, disaster recovery and business continuity.
The Board is confident that the strategy adopted will produce improved
profitability in the medium term.
Products
Two complementary products are marketed. Ultima, a customer orientated policy
management system for complete insurance policy lifecycle management,
encompassing quotations, underwriting, claims, accounting, broker management and
reporting. Total Fund Manager (TFM) is a fully featured, multi-fund,
multi-currency, administration and accounting system with extensive performance
measurement, compliance and reporting capabilities.
Chairman's Statement
Continued
Ultima is targeted at existing and new insurers seeking to maximise efficiency
while ensuring regulatory compliance and enabling quick and easy adaptation to
changing business conditions. Ultima is key in helping insurers realise their
business vision. For new insurers, and those insurers regretting their
outsourcing and/or offshoring strategy, the ability to have a fully operational
wall to wall system in a very short timeframe is a compelling argument. TFM is
suitable for any fund manager looking for a cost-effective reliable solution for
administration and accounting of an unlimited number of funds under management.
Market place
The market has continued to prove difficult. We strive to identify all available
contracts and the Board believes that the investments made in staff and the
products will produce success.
Staff
Our staff have continued to show their outstanding professionalism and have
thrived on helping our clients realise their vision. I would like to thank them
all for their loyalty, dedication, enthusiasm and commitment and look forward to
working with them in the future.
Operations
Strong client relationships have enabled your Company to continue operations at
a stable level. The Corinthian contract won in February is progressing to time
and budget while Bluesure have had a successful re-launch. Dixon's have rolled
out Ultima into Spain with other countries to follow shortly. Clients continue
to express satisfaction with the capabilities, resilience and reliability of our
systems.
Current trading and outlook
Trading continues at a reasonable level. Until new business materialises there
is unlikely to be any significant change in performance.
The Company's finances remain on a sound footing with costs being held under
strict control and our strong balance sheet being maintained.
Terry Bourne
Chairman
13 December 2004
Consolidated Profit and Loss Account
for the half year ended 30 September 2004
Unaudited Unaudited Audited
6 Months 6 Months 12 months
ended ended ended
30 September 30 September 31 March
Note 2004 2003 2004
# # #
Turnover 2 1,696,642 2,000,586 3,843,856
----------- -------------------- -----------
Operating Profit 57,432 323,632 596,444
Interest
receivable and 79,446 57,429 122,314
similar income
Interest payable
and - - (2,820)
similar charges
------------------ ----------------- --------------
Profit on
ordinary
activities 136,878 381,061 715,938
before
taxation
Tax on profit on
ordinary (27,856) (117,355) (195,656)
activities --------------- ------------- ------------
Profit on
ordinary
activities after
taxation
attributable
to shareholders 109,022 263,706 520,282
Dividend (110,455) (110,406) (299,758)
proposed ------------- ------------- ------------
Retained (loss)/
profit (1,433) 153,300 220,524
for the period --------------- ------------ -----------
Basic earnings
per 4 1.04p 2.51p 4.95p
ordinary share
Diluted earnings
per 1.03p 2.50p 4.94p
ordinary share
Dividend per
ordinary 1.05p 1.05p 2.85p
share
General notes:
1. 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 2004 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 was unqualified and did not contain a statement under
either of Section 237(2) or 237(3) of the Companies Act 1985.
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. This Interim Report has been prepared on the basis of the
accounting policies consistent with the prior year and are in accordance with
IAS.
4. The calculation of basic earnings per share is based on a
profit after taxation of # 109,022 (2003: # 263,706) and a weighted average of
10,517,617 shares (2003: 10,513,376) in issue during the period.
5. It is intended to post this Interim Report to shareholders
on 15 December 2004. Copies will also be available from the Registered Office of
the Group at 394 City Road, London, EC1V 2QA.
Consolidated Balance Sheet
at 30 September 2004
Unaudited Unaudited Audited
as at as at as at
30 September 30 September 31 March
2004 2003 2004
# # #
Fixed assets
Tangible assets 669,357 658,103 656,198
Current assets
Debtors 622,643 713,015 838,059
Cash at bank and in hand 3,445,626 3,513,940 3,673,867
---------- ---------- ----------
4,068,269 4,226,955 4,511,926
Creditors: amounts falling
due within one year (784,766) (998,925) (1,214,767)
---------- ---------- ----------
Net current assets 3,283,503 3,228,030 3,297,159
---------- ---------- ----------
Total assets less current liabilities 3,952,860 3,886,133 3,953,357
---------- ---------- ----------
Net assets 3,952,860 3,886,133 3,953,357
---------- ---------- ----------
Capital and reserves
Called up share capital 525,978 525,744 525,744
Share premium account 83,004 82,302 82,302
Profit and loss account 3,343,878 3,278,087 3,345,311
---------- ---------- ----------
Equity shareholders' funds 3,952,860 3,886,133 3,953,357
---------- ---------- ----------
Consolidated Cash Flow Statement
for the half year ended 30 September 2004
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended
30 September 30 September 31 March
2004 2003 2004
Note # # #
Operating activities
Cash received
from customers 2,101,539 2,231,264 4,361,104
Cash payments to
suppliers (352,026) (325,066) (472,416)
Cash payments to
employees (902,742) (814,383) (1,542,989)
Cash paid for
PAYE and
National
Insurance (575,218) (481,036) (904,285)
Cash paid for
VAT (297,574) (379,608) (755,397)
Other business
payments (42,717) (32,245) (79,392)
----------- ------------- ----------------
Net cash (outflow)/
inflow from
operating
activities (a) (68,738) 198,926 606,625
---------- ------------ -----------
Return on investments
and
servicing of finance
Interest
received 79,446 57,429 122,314
Interest paid - - (2,820)
------------ ------------- ------------
Net cash inflow
from returns on 79,446 57,429 119,494
investments and ------------ ------------ -----------
servicing of finance
Taxation
Corporation tax
payment - - (165,722)
---------------- ---------------- -----------
Capital expenditure
and financial investment
Purchase of
tangible fixed
assets (50,533) (44,604) (78,313)
------------ ------------- ------------
Net cash outflow
from capital
expenditure and
financial
investment (50,533) (44,604) (78,313)
------------ ------------- ------------
Equity dividends
paid (189,352) (178,752) (289,158)
----------- ------------ -----------
Cash (outflow)/inflow
before use of liquid
resources and
financing (229,177) 32,999 192,926
Financing
Proceeds from
exercise of
share
options (d) 936 2,684 2,684
-------------- ------------- -----------
(Decrease)/Incre
ase in cash in
the period (b) (228,241) 35,683 195,610
------------ ------------ ---------
Notes to the cash flow statement
(a) Reconciliation of operating profit to net cash (outflow)/inflow from
operating activities
Unaudited Unaudited Audited
6 Months 6 Months 12 Month
ended ended ended
30 September 30 September 31 March
2004 2003 2004
# # #
Operating profit 57,432 323,632 596,444
Depreciation charges 37,812 37,018 72,279
(Gain)/loss on disposal
of tangible assets (438) - 353
Decrease/(increase) in 215,416 (32,195) (157,239)
debtors
(Decrease)/increase in (378,960) (129,529) 94,788
creditors ------------- ----------- ---------------
(68,738) 198,926 606,625
---------- ------------------ ----------------
(b) Reconciliation of net cash flow to movement in net funds
Unaudited Unaudited Audited
6 Months 6 Months 12 months
ended ended ended
30 September 30 September 31 March
2004 2003 2004
# # #
(Decrease)/increase in cash in the
period and change in net funds (228,241) 35,683 195,610
Net funds at the
beginning of period 3,673,867 3,478,257 3,478,257
----------- ----------- ---------------
Net funds at the end of
period 3,445,626 3,513,940 3,673,867
----------- ----------- ---------------
(c) Analysis of changes in net funds
Unaudited Audited Unaudited
6 Months 12 Months 6 Months
Ended Change Ended Change Ended
30 September in 31 March in 30 September
2004 6 months 2004 6 Months 2003
# # # # #
Cash at bank
and in hand 3,445,626 (228,241) 3,673,867 159,927 3,513,940
----------- ------------- ----------- --------- -----------
Notes to the cash flow statement
(d) Analysis of changes in financing during the period
Share capital Share capital Share capital
(including (including (including
premium) premium) premium)
Unaudited Unaudited Audited
6 Months 6 Months 12 Month
ended ended ended
30 September 30 September 31 March
2004 2003 2004
# # #
Balance at the
beginning of
period 608,046 605,362 605,362
Cash inflows
from employees
exercising
share options 936 2,684 2,684
----- ------------ -------------
Balance at the
end of period 608,982 608,046 608,046
--------- ---------- -----------
This information is provided by RNS
The company news service from the London Stock Exchange
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