Final Results
08 April 2008 - 5:01PM
UK Regulatory
RNS Number:8042R
Atlantic Global PLC
08 April 2008
Press Release 8 April 2008
Atlantic Global Plc
Preliminary Results
Atlantic Global Plc ("Atlantic Global" or "the Group"), the specialist provider
of Project Portfolio Management (PPM) software applications, today announces its
Preliminary Results for the 12 months ended 31 December 2007.
Financial and Operational Summary
* Turnover increased by 17% to �2.303m (2006: �1.961m)
* Profit before tax of �286,000 (2006: Loss �51,000)
* Delivered third consecutive profitable half year during second
half of 2007
* Strong financial position, with net cash balance of �2.010m as
at 31 March 2008
* Earnings per share increased to 1.02p (2006: 0.23p)
* Proposed dividend of 0.3pence per share (2006: nil), a return
to the Group's progressive dividend policy
* Ranked by Gartner as one of the world's leading 25 suppliers of
Project Portfolio Management Software (only UK company listed
by Gartner)
* Appointment of Adrian Bradshaw as Non-Executive Chairman
(September 2007)
Prospects for 2008
* Implementation of licence deals secured during the second half of 2007,
securing continued service revenue in 2008, from new and existing
clients, including Norwich Union, Provident Financial, Capita
National Strategies, Trader Media, Bank of Tokyo, Line Communications
and The British Library
* Continue to build on solid progress made within the business during
2007, into 2008 and beyond
* Launch of next generation software in Q3 2008 using Hosting and
Software as a Service (SaaS) products
* Proactive acquisition strategy for 2008
* Potential re-purchase of up to 10% of the Group's outstanding share
capital, as available, to enhance shareholder value
Adrian Bradshaw, Chairman of Atlantic Global commented:
"I am pleased to report a significant increase in profitability for 2007. We
continue to invest in and build the Atlantic Global Group with new generation
software products being implemented and launched this year. I believe that the
Group is well placed to achieve another year of continued growth in profits."
- ends -
For further information please contact:
Atlantic Global plc
Eugene Blaine, Managing Director Tel: +44 (0) 01274 863 300
eugene.blaine@atlantic-global.com
Rupert Hutton, Finance Director Tel: +44 (0) 01274 863 300
rupert.hutton@atlantic-global.com www.atlantic-global.com
Broker enquiries:
Collins Stewart
Mark Connelly / Adam Cowen Tel: +44 (0) 20 7523 8350
MConnelly@collinsstewart.com www.collinsstewart.com
Media enquiries:
Abchurch
Sarah Hollins / Louise Thornhill Tel: +44 (0) 20 7398 7783
louise.thornhill@abchurch-group.com www.abchurch-group.com
Chairman's Statement
Introduction
This is my first report to shareholders following my appointment as
Non-Executive Chairman in September 2007 and I am pleased to report a
significant increase in profitability for 2007.
Results
The Group produced profit before taxation of �286,000 (2006 loss before
taxation: �51,000). The turnover of the group for 2007 was �2,303,000, (2006:
�1,961,000).
Earnings per share were 1.02 pence (2006: 0.23 pence).
We continued to invest and build our Group and products during 2007. The Group
had net cash balances, at end December 2007, of �1,546,000 (2006: �1,600,000)
and cash at 31 March 2008 had increased to �2,010,000.
The Group remains in the excellent position of being financially secure, with
cash in the bank.
This is the first time that our annual results have been prepared under
International Financial Reporting Standards (IFRS) as adopted by the EU and
comparative results for the twelve month period ended 31 December 2006 have also
been restated in accordance with adopted IFRS.
New Clients
During the year we have gained new Project Portfolio Management (PPM) software
customers, including National Assembly for Wales, Oxford Strategic Marketing,
ICE Computer Services, TRL Technology, Syne Qua Non, Oxford Pharmaceutical
Sciences, Bank of Tokyo, Capita National Strategies, Trader Media Group, Line
Communications, Stepstone and The British Library. We have also continued to
develop our successful relationships with existing customers, as evidenced by
new sales being made to Provident Financial, Kingston Communications, LDA,
Norwich Union, Friends Provident, Tiscali and GroupM.
Recurring Income
A strong feature of Atlantic Global is the level of recurring support and
maintenance income which is around �730,000 for the period. This provides a
solid base for the Group and therefore any new licence sales contribute
significantly to profitability, meaning that the business has high operational
gearing.
Next Generation of our Software
The Group released Atlantic Global Solutions 12 during 2007. The next major
release of our software is scheduled for release in Quarter 3 2008, having been
in development for two years with each module and product being redesigned using
the latest technology and development methodologies. This new product will
create new intellectual property and allow our software to be delivered in one
of three IT industry recognised ways:
* Client hosted - Atlantic Global will install the software on the
clients' hardware and infrastructure, as per the current licensing model;
* Hosted - Atlantic Global will provide software and hardware on an
individual client basis, charged annually; and
* Software as a Service (SaaS) - Atlantic Global will provide software
and hardware in a multi-tenancy environment, providing economies of scale,
charged on a monthly subscription basis.
The new software will include much additional functionality, including
multi-lingual and multi-currency capability, with a new and improved user
interface and the capacity for the scalability required to deliver SaaS.
The new product will provide Atlantic Global with the ability to simplify and
shorten the sales engagement cycle and also to make the software available over
the internet to all geographical areas around the world.
Strategy for the Future and Acquisitions
The Board is continuing to examine acquisitions which will significantly
increase the size of the Atlantic Global footprint within the software market.
Our objective during the last six months has been to consolidate the Group's
position, with a view to executing acquisitions in 2008.
We will also continue to investigate other complementary channels to market our
products.
Repurchase of Company Shares
For a number of years Atlantic Global has maintained relatively high cash
levels, reflecting the cash generative nature of the business. The current
return on this surplus cash is relatively modest and the Directors believe that
this cash could be better used by repurchasing some of the Company's shares.
The Directors believe this would enhance shareholder value and, accordingly, we
will seek approval at the forthcoming AGM from shareholders to repurchase up to
10% of the Company's outstanding share capital as and when appropriate.
Dividend
The Directors are proposing a dividend for the year ended 31 December 2007 of
0.3p per share, (2006: nil). The Directors will maintain a progressive dividend
policy.
Current Trading
From our management accounts up to the end of the first quarter of the year, I
can confirm that trading is in line with expectations, continuing the strong
finish to 2007. We believe that recent additions to our sales team will enable
the group to enjoy continued success.
People
The Group would like to recognise and pay tribute to the employees for their
hard work and professionalism during what has been a difficult chapter in the
Group's history. I am pleased to report that we have resumed the recruitment of
additional people to key areas to support the planned growth of the business
during 2008.
Annual General Meeting
We shall be holding our AGM on 9 May 2008 at 2.30pm in our Group Head Office in
Cleckheaton, West Yorkshire, at Woodland Park, Bradford Road, Chain Bar,
Cleckheaton, West Yorkshire, BD19 6BW.
Following the formalities of the meeting we will, as in previous years, provide
time during which shareholders can meet the Directors and discuss the progress
of the Group. I would extend the Board's invitation to all shareholders in the
hope that as many as possible attend.
I believe that the Group is well placed to achieve another year of continued
profits growth during 2008.
Adrian Bradshaw
Chairman
8 April 2008
Consolidated Income Statement
for the year ended 31December 2007
2007 2006
�000 �000
Continuing Operations
Revenue 2,303 1,961
Cost of sales (1,439) (1,304)
Gross profit 864 657
Administrative expenses (659) (770)
Operating profit / (loss) 205 (113)
Financial income 81 62
Profit / (loss) before tax 286 (51)
Income tax (53) 103
Profit for the period 233 52
Attributable to:
Equity shareholders of the parent 233 52
Earnings per share- continuing and total
Basic and diluted earnings per share (pence) 1.02 0.23
Consolidated Statement of Recognised Income and Expense
for the year ended 31 December 2007
2007 2006
�000 �000
Profit for the period 233 52
Total recognised income and expense for the period 233 52
Total recognised income and expense for the period is attributable
to:
Equity shareholders of the parent 233 52
Consolidated Balance Sheet
at 31 December 2007
2007 2007
�000 �000
Assets
Non-current assets
Intangible assets 2,792 2,792
Property, plant and equipment 19 31
Deferred tax asset 62 91
Total non-current assets 2,873 2,914
Current assets
Trade and other receivables 1,367 799
Income tax receivable 9 39
Cash and cash equivalents 1,546 1,600
Total current assets 2,922 2,438
Total assets 5,795 5,352
Liabilities
Current liabilities
Trade and other payables 768 515
Total current liabilities 768 515
Total liabilities 768 515
Net assets 5,027 4,837
Equity attributable to equity shareholders of the parent
Share capital 1,145 1,145
Share premium 1,578 1,578
Merger reserve 2,538 2,538
Retained earnings (234) (424)
Total equity attributable to equity shareholders of the company 5,027 4,837
Consolidated Cash Flow Statement
for the year ended 31 December 2007
2007 2006
�000 �000
Cash flows from operating activities
Profit for the year 233 52
Adjustments for:
Equity settled share-based payment expenses (43) 18
Financial income (81) (62)
Income tax income 53 (103)
Depreciation, amortisation and impairment 21 26
Operating profit before changes in working capital and provisions 183 (69)
(Increase)/Decrease in trade and other receivables (568) 134
Increase/(Decrease) in trade and other payables 259 (63)
Net cash (used)/from operating activities (126) 2
Cash flows from investing activities
Interest received 81 62
Acquisition of property, plant and equipment (9) (3)
Net cash from investing activities 72 59
Net (decrease)/increase in cash and cash equivalents (54) 61
Cash and cash equivalents at the beginning of the period 1,600 1,539
Cash and cash equivalents at the end of the period 1,546 1,600
Notes to the accounts forming part of the financial statements
1 Basis of preparation
The preliminary announcement has been prepared under the historic cost
convention and in accordance with International Financial Reporting Standards
(IFRS) as adopted by the European Union.
2 Publication of non-statutory financial statements
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in Section 240 of the Companies
Act1985.
The consolidated income statement, the consolidated balance sheet at 31 December
2007, the consolidated statement of recognised income and expense and the
consolidated cash flow statement and have been extracted from the Group's
financial statements upon which the auditors opinion is unqualified and does not
include any statement under section 237 of the Companies Act 1985. Those
financial statements have not yet been delivered to the Registrar.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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