RNS Number:8266L
Mediasurface PLC
04 May 2005
Mediasurface plc
Results for the 6 Months ended 31st March 2005
Mediasurface plc, the AIM listed Content Management Software Author and Vendor,
announces unaudited results for the 6 months ended 31st March 2005.
Chairman's Statement
For the six months ended 31st March 2005
I am pleased to announce the results for the six months ended 31st March 2005.
The results which were ahead of expectations clearly demonstrate that our
strategy to empower the business user of Web Content Management Systems is
proving to be a success.
At the time of my previous statement in the Annual Report I indicated that
Morello, the companies innovative software product, was set to drive revenue
growth, I am pleased to report this has indeed been the case over the past 6
months as is evidenced by a number of major wins including Inter-Continental
Hotels Group, Citigroup, The Home Office, ESPN and Aegon Holdings.
Group revenues for the first six months increased by 29% to #3.66 million (2004
: #2.83 million). The Group achieved a pre-tax profit of #0.14 million (2004 :
Pre-tax Loss #0.15). Net Assets stood at #1.67 million compared with #1.46
million at 30th September 2004.
In-line with our stated policy, earnings for the foreseeable future will be
re-invested to finance the growth of the business. The Director's therefore do
not recommend the payment of a dividend.
On the 7th April 2005 the company concluded the acquisition of Class-Act BV in
the Netherlands. The acquisition brings to Mediasurface a new software product
aimed at Small to Medium Enterprises, being a market the company has hitherto
not addressed. The acquisition is expected to be modestly profit enhancing and
will complement the company's product portfolio.
Prospects for the Company as a whole remain positive. Morello continues to
attract significant interest and major new sale opportunities exist for the
second half of the financial year. The Board remains committed to enhancing
shareholder value and believe the Company is well placed to grow profitably.
Michael Jackson
Chairman
3rd May 2005
Chief Executive's Report
For the six months ended 31st March 2005
As you will appreciate from the Chairman's statement the results are ahead of
market expectations both in terms of revenue and profitability. Behind these
headline numbers the company is pleased to report that all of its revenues
streams showed growth on the same period last year with:
* licence sales up 36%,
* consultancy and training up 44%
* recurring revenues on an annualised basis up from #1.72m to #1.91m, up
11%.
These growth figures evidence the impact of the company's R&D efforts on its
competitiveness in the market as is evidenced by significant new business wins
with blue chip customers such as Citigroup, Inter-Continental Hotels Group,
Aegon Holdings, ESPN and The Home Office. It is my firm belief that these
organisations selected Mediasurface because of our innovative flagship product
Morello which clearly differentiates us in the market. Our business strategy of
developing and marketing innovative applications targeted at the business user
yet robust enough to be used to build and run very significant web-applications
has certainly paid off over the period and the average new business sales
transaction has more than doubled.
The company intends to continue with this strategy to power growth and has an
exciting series of product releases planned for the second half of the company
year. Beyond this further releases can be expected which again continue to
demonstrate useful innovation and separation from our competitors.
As part of the company's non-organic growth strategy on April 7th 2005 the
company acquired Class-Act BV, a software developer based in the Netherlands.
The company has already developed a Web Content Management application suitable
for Small to Medium sized Businesses (SMB's) and has approximately 80 customers
in the Netherlands. The acquisition is expected to be immediately, though
modestly, earnings enhancing. Strategically the company has gained access to the
SMB market through this acquisition as well as having an ideal solution to offer
on a hosted rental or ASP basis to this market. The SMB market does appear to
have a preference for hosted solutions of this type to diminish the risks of
having to maintain their own infrastructure and associated skill sets. It is a
proven product and when enhanced through Mediasurface's experience in creating
Business focussed tools and when marketed through Mediasurface's emerging
channel network is expected to make a sound contribution to our recurring
revenues.
I trust you will enjoy reading the detail of our interim results which I believe
make good reading and should provide some comfort that your investment has been
well rewarded through the efforts of the management team and employees.
Lawrence Flynn
Chief Executive Officer
3rd May 2005
Consolidated Profit & Loss Account
For the 6 months ended 31st March 2005
6 Months to 6 Months to 12 months to
31st March 2005 31st March 2004 30th September
(unaudited) (audited) 2004 (audited)
Note # # #
Turnover 3,661,081 2,839,562 5,403,482
Cost of Sales (104,802) (75,083) (142,533)
Gross Profit 3,556,279 2,764,479 5,260,949
Administrative Costs (3,432,373) (2,910,367) (5,993,342)
Operating Profit 123,906 (145,888) (732,393)
Interest Receivable and similar 23,480 2,050 7,603
income
Interest Payable (8,639) (9,628) (12,604)
Profit/(Loss) on Ordinary 138,747 (153,466) (737,394)
Activities
Tax on Profit/(loss) 2 50,000 227,044 331,273
Profit/(Loss) on Ordinary 188,747 73,578 (406,121)
Activities after Tax
Earnings per Share - Basic 3 0.2p 0.1p (0.7)p
Earnings per Share - Diluted 3 0.2p 0.1p (0.6)p
Consolidated Balance Sheet
As at 31st March 2005
Note 31st March 31st March 30th September
2005 2004 2004
(unaudited) (audited) (audited)
# # #
FIXED ASSETS
Goodwill - 22,895 -
Tangible assets 180,777 177,044 177,969
180,777 199,939 177,969
CURRENT ASSETS
Debtors 2,786,869 1,629,410 2,173,866
Cash at bank and in hand 1,040,181 201,540 1,395,558
3,827,050 1,830,950 3,569,424
CREDITORS: amounts falling due (2,330,484) (1,679,958) (2,276,041)
within one year
NET CURRENT ASSETS 1,496,566 150,992 1,293,383
TOTAL ASSETS LESS CURRENT 1,677,343 350,931 1,471,352
LIABILITIES
CREDITORS: amounts falling due (11,428) (16,623) (14,384)
after more than one year
NET ASSETS 1,665,915 334,308 1,456,968
CAPITAL AND RESERVES
Called up equity share capital 764,757 13,474,032 764,738
Share premium account 9,574,782 8,317,666 9,574,782
Capital Redemption Reserve 13,083,244 - 13,083,244
Merger reserve 27,297,412 27,297,412 27,297,412
Profit and loss account (49,054,280) (48,754,802) (49,263,208)
SHAREHOLDERS' FUNDS 1,665,915 334,308 1,456,968
Consolidated Cashflow Statement
For the 6 months ended 31st March 2005
6 months to 6 months to 12 months to
31st March 2005 31st March 30th September
(unaudited) 2004 2004
# (audited) (audited)
# #
Net cash outflow from operating (389,473) (795,492) (1,170,202)
activities
Returns on investments and servicing 14,841 (7,578) (5,001)
of finance
Taxation 50,000 227,044 227,044
Capital expenditure (30,764) (48,556) (80,816)
Cash outflow before financing (355,396) (624,582) (1,028,975)
Financing 19 (53,284) 1,572,606
Increase/(decrease) in cash in the (355,377) (677,866) 543,631
year
Notes:
1. The interim financial information for the six months ended 31st March 2005
has been prepared in accordance with applicable United Kingdom accounting
standards and under the historical cost convention in accordance with the
Group's accounting policies published in the Annual Report for the year ended
30th September 2004.
The financial information for the 6 months ended 31st March 2004 has been
extracted from audited accounts prepared for and included in the Admission
document published 26th August 2004.
The financial information set out above does not constitute the company's
statutory accounts as defined by section 240 of the Companies Act 1985. It is an
extract from the accounts for the year ended 30 September 2004 which have been
filed with the Registrar of Companies. The auditors' report was unqualified. The
auditors' report does not contain a statement under either section 237(2) or (3)
of the Companies Act 1985. The group's auditors have reported on those accounts
as required by section 235 of the Companies Act 1985.
2. The tax on loss on ordinary activities represents Research & Development tax
credits. For the purposes of the Interim Accounts for the 6 months ended 31st
March 2005 an estimated Research and Development tax credit has been recognised.
3. Earnings per Share
The loss per ordinary share is calculated by reference to the profit/(loss)
attributable to ordinary shareholders divided by the weighted average number of
shares in issue during each period as follows:
6 months to 6 months to 12 months to
31st March 2005 31st March 2004 30th September
(unaudited) (audited) 2004 (audited)
# # #
Profit/(Loss) for the year 188,747 73,578 (406,121)
Basic - Weighted average number 76,474,372 59,356,184 61,450,900
of shares
Basic - Profit/(Loss) per Share 0.2p 0.1p (0.7)p
Fully diluted - Weighted average 83,605,770 59,356,184 62,154,270
number of shares
Fully diluted - Profit/(Loss) per 0.2p 0.1p (0.6)p
Share
4. A copy of the unaudited interim accounts of the Company will be sent to all
shareholders within the next 4 weeks.
For further information please contact:
Lawrence Flynn Chief Executive Officer
David Deacon Chief Financial Officer
Telephone : 01635 262000
Fax : 01635 262001
Address : Mediasurface House
Newbury Business Park
London Road
Newbury RG14 2QA
This information is provided by RNS
The company news service from the London Stock Exchange
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