RNS Number : 1226K
IMS Maxims PLC
15 December 2008
IMS MAXIMS plc
Interim Results for the period ended 30 September 2008
Chairman's statement
Review of the half year to 30 September 2008
The directors present our interim results for the period ended 30 September 2008.
Turnover decreased 3% to �2.2 million reflecting the challenging nature of the UK National Health Service ("NHS") sector with gross
profit down 8% as margins suffered from increasing pricing pressure. However, this was more than offset by the increase in operating margins
to 25% producing an operating profit of �572,000, up 17% on the same period last year after capitalising certain software development
costs.
Despite the fact that IMS can now offer an immediate means of delivering the key priority applications described in the recent NHS
Informatics Review as "The Clinical 5", the situation in the NHS remains unclear. The Connecting for Health ("CfH") programme appears to be
once again under review, and continues to have difficulty in meeting the needs of Trusts; the South Region still remains without a Local
Service Provider ("LSP"); and the supplier framework agreements - known as the Additional Supply Capability and Capacity ("ASCC") - have
failed to simplify the contracting process. The complex contractual arrangements between CfH and its LSPs continue to make it extremely
difficult for suppliers to make progress.
We have continued to focus our efforts more towards the private healthcare provider sector in the first half of this year with some
success. As a result, with private healthcare business we have been able to compensate for the ongoing difficulty in generating revenue from
the NHS due to the uncertainty around the National Programme for IT and the completion of a large public sector contract.
Going forward, we will continue to diversify our efforts and look at international markets for our products.
Cash and equivalents at the end of the period were �255,000, down from �297,000 at the year end. In October 2008 we raised an
additional �2m in debt finance that will allow us to continue to invest in the development of our product suite and provides us with cash
reserves to take advantage of other investment opportunities that may arise.
On 2 December 2008 we announced that we had acquired certain assets of CSW Group Limited ("CSW") for
�175,000 in cash. This acquisition includes a number of contracts, including a significant contract with British Telecommunications plc
("BT"), the London Local Service Provider. We expect this to be neutral in terms of the consolidated profits for IMS in the year to 31 March
2009. We have also engaged a number of former CSW employees who are charged primarily with supporting the acquired contracts, but also bring
further valuable domain knowledge to IMS.
Finally, we welcome Dr Penny O'Hara to IMS Maxims in the role of Clinical Director. Penny has in depth knowledge of the global
healthcare market and provides a strong customer perspective as we move forward with our MAXIMS web based applications which have been
designed to enhance clinical effectiveness and improve patient care both within hospitals and the wider community
D W MacDonald
15 December 2008
Unaudited Consolidated Income Statement
6 months 6 months Year ended
30 Sept 2008 30 Sept 2007 31 March 2008
Unaudited Unaudited Audited
Notes �'000 �'000 �'000
Revenue
Sales Revenue 2 2,282 2,349 4,734
Cost of Sales (222) (101) (700)
Gross Profit 2,060 2,248 4,034
Administrative expenses (1,488) (1,761) (3,299)
Operating profit 572 487 735
Finance costs (616) (539) (1,120)
Finance income 65 68 130
Pre-tax result for the period 2 21 16 (255)
R&D tax credit / deferred tax 3 - - 265
Net result for the period 21 16 10
Attributable to:
Minority interests - equity - - -
Equity holders of the group 21 16 10
Basic profit per Ordinary 4 0.01p 0.01p 0.00p
Share
Diluted profit per Ordinary 4 0.01p 0.01p 0.00p
Share
Unaudited Consolidated balance sheet
as at 30 September 2008
6 months 6 months Year ended
30 Sept 2008 30 Sept 2007 31 March 2008
Unaudited Unaudited Audited
ASSETS �'000 �'000 �'000
Non-current Assets
Property, plant and equipment 51 45 33
Intangible assets 3,811 2,814 3,616
Trade and other receivables 942 - 1,018
Total 4,804 2,859 4,667
Current assets
Debtors falling due after 1 year - 1,095 -
Stocks - 524 -
Trade and other receivables 2,966 863 3,738
Cash and cash equivalents 255 37 297
Total 3,221 2,519 4,035
Total Assets 8,025 5,378 8,702
EQUITY
Capital and reserves
attributable to
the group's equity holders
Share capital 2,535 2,535 2,535
Share premium account 7,600 7,600 7,600
Merger reserve 3,600 3,600 3,600
Other Reserve 18 11 18
Cumulative Translation (60) (90) (60)
difference
Retained earnings (17,583) (17,598) (17,604)
(3,890) (3,942) (3,911)
Minority interest in equity 43 43 43
Total equity (3,847) (3,899) (3,868)
LIABILITES
Non-current Liabilities
Borrowings 5,709 5,838 6,528
Deferred tax liability 48 - 48
Current Liabilities
Trade and other payables 3,306 1,168 2,789
Borrowings 2,809 2,271 3,205
Total Liabilities 11,872 9,277 12,570
Total equity and liabilities 8,025 5,378 8,702
Unaudited Consolidated cash flow statement
as at 30 September 2008
6 months 6 months Year ended
30 Sept 2008 30 Sept 2007 31 March 2008
Unaudited Unaudited Audited
�'000 �'000 �'000
Operating activities
Result for the period before tax 21 16 (255)
Depreciation 18 10 19
Amortisation of intangible fixed 140 - -
assets
Share based payment - - 7
Foreign exchange movements - - 65
Change in trade and other 848 989 (1,373)
receivables
Change in contract costs - 1,000 1,524
recoverable
Change in trade and other 114 (2,336) (686)
payables
Interest paid 616 539 1,120
Interest received (65) (68) (130)
1,692 150 291
Investing activities
Additions to property, plant
and equipment (36) (24) (25)
Additions to intangible
fixed assets (335) - (612)
Acquisition of Preview Health
net of cash acquired - - 26
Interest received 65 68 130
(306) 44 (481)
Financing activities
Proceeds from bank loans - - 2,286
Repayment of bank loans (812) (554) (1,495)
Interest paid (616) (539) (1,120)
(1,428) (1,093) (329)
Cash and cash equivalents
at beginning of period 297 936 816
Cash and cash equivalents
at end of period 255 37 297
Unaudited Statement of changes in equity
for the six months ended 30 September 2008
Called up Share premium Merger Translation Other Retained
Share capital Account Reserve Difference Reserve Loss
�'000 �'000 �'000 �'000 �'000 �'000
At 31 March 2007 2,535 7,600 3,600 (90) 11 (17,614)
Retained for six months - - - - - 16
At 30 September 2007 2,535 7,600 3,600 (90) 11 (17,598)
Currency Translation - - - 30 - -
Provision for share options - - - - 7 -
Retained for six months - - - - - (6)
At 31 March 2008 2,535 7,600 3,600 (60) 18 (17,604)
Retained for six months - - - - - 21
At 30 September 2008 2,535 7,600 3,600 (60) 18 (17,583)
Notes to the unaudited interim statement
1. Basis of preparation
The unaudited interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs),
including IAS 34 "interim financial reporting" and on the same basis and using the same accounting policies as used in the audited financial
statements for the year ended 31 March 2008. The financial information set out in these interim financial statements does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985. The figures for the year ended 31 March 2008 have been extracted
from the statutory financial statements which have been filed with the Registrar of Companies. The auditors' report on those financial
statements was unmodified. The Board approved the interim report on 15 December 2008.
2. Segmental analysis
Revenue is attributable to the provision of computer software products and the exploitation of royalty income.
An analysis of revenue by geographical area is given below:
6 months ended 6 months ended Year ended
30 Sept 2008 30 Sept 2007 31 March 2008
�'000 �'000 �'000
Revenue
United Kingdom 1,673 1,861 3,659
Europe 609 488 1,075
Group 2,282 2,349 4,734
Net result for the period
United Kingdom (355) 358 (498)
Europe 376 (342) 508
Group 21 16 10
3. Taxation
No provision for taxation has been made due to the availability of losses.
4. Earnings per share
The calculation of the basic earnings per share for the 6 months ended 30 September 2008 is based on a profit of �21,000 (30 September
2007: profit of �16,000) and a weighted average number of shares in issue during the period of 253,450,826 (30 September 2007: 253,450,826).
The calculation of the diluted earnings per share for the 6 months ended 30 September 2008 is based on a profit of �21,000 (30 September
2007: profit of �16,000) and a weighted average number of shares in issue during the period of 253,450,826 (30 September 2007:
253,450,826).
The calculation of the basic and diluted earnings per share for the year ended 31 March 2008 is based on a profit of �10,000; a weighted
average number of shares in issue during the period of 253,450,826 and a diluted number of shares for the period of 253,450,826.
Contact:-
Brian Ennis Liam Murray / Antony Legge
CEO Dowgate Capital Advisers Limited
IMS Maxims plc 46 Worship Street
Sandymount London EC2A 2EA
Station Road
Woburn Sands
MK17 8RR
Tel: 01908 588800 Tel: 020 7492 4777
Fax: 01908 588819
This information is provided by RNS
The company news service from the London Stock Exchange
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