RNS Number:0321E
TripleArc PLC
05 June 2006
5 June 2006
TripleArc Plc
Preliminary Results for the Year Ended 31 December 2005
TripleArc Plc ("TripleArc", the "Company" or the "Group") provides technology
enhanced print management solutions to businesses seeking to reduce costs and
streamline business processes. The Group is able to differentiate its offering
by providing its customers with industry leading technology solutions which
streamline the supply chain and facilitate sustainable cost savings.
SUMMARY
#'m Year ended 31 Year ended Year ended
December 2005 31 December 31 December
2005 2004 (Restated)
Continuing Total Total
Turnover 49.7 57.5 48.2
Gross profit 13.3 14.8 11.3
EBITA 2.1 1.8 3.5
EBITDA 2.5 2.3 3.7
Adjusted earnings per share ** 0.38p 0.14p 0.89p
Basic (loss)/earnings per share (1.16p) (1.69p) (0.29p)
Cash inflow from operating activities 2.7 3.4
EBITA - Earnings before exceptional costs, amortisation, interest and tax.
EBITDA - Earnings before exceptional costs, amortisation, depreciation, interest
and tax.
** Based on earnings before amortisation of intangible assets, deferred
financing amortisation and exceptional costs
*2005 Top 30 accounts grew by 24%
*Contracted revenue increased by 50%, now accounting for 44% of turnover
*Slowdown in retail sector and decline in business forms
*Continuing investments in infrastructure, sales and account management
*Positive cash flow and further debt repayments
*Board restructured and review completed allowing accurate 2006 guidance
to be given
Jason Cromack, CEO commented; "2005 was a very difficult year for the Group and
the Board is cautious in its immediate expectations. However with contracted
revenue increasing by 50% from a strong blue-chip client base and new contract
wins since the year end, the Board remains positive in the longer term outlook
for the Group."
For further information please contact:
TripleArc Plc 0117 933 1006
Jason Cromack, Chief Executive Officer
Richard Hodgson, Chief Financial Officer
Weber Shandwick Square Mile 020 7067 0700
Terry Garrett/ Nick Dibden
Chairman's review
Year ended 31 December 2005
As has previously been highlighted, 2005 was an extremely challenging year for
the Group. The ongoing decline in business forms, a slow down in demand from the
retail sector and the necessity to restate the 2004 accounts, all had a negative
impact on the Group in 2005.
Despite this, the Group is reporting growth in both turnover and gross profit
over the comparable period in 2004. Although operating profit for the period was
impacted by substantial investments in infrastructure, the Group successfully
managed its resources not only to carry these investments but also to cover the
exceptional costs of a major restructuring exercise, to generate positive cash
flow and to pay down debt. Having made these investments the Group now has the
capability to manage the larger print management contracts which are the ongoing
focus of the Board's strategy to deliver an annuity business. Encouragingly,
contracted revenues during the year increased by 50% on the same period in 2004
and accounted for 44% of the Groups 2005 revenue, up from 28% in 2004.
The Group has restructured its Board enabling it to steer the Company through
this period of rebuilding.
The announcement on 26 September 2005, regarding the restatement of the Group's
accounts for the year ended 31 December 2004 and the downward revision of the
Group's expectations for the full year was extremely disappointing. However, the
Board is pleased that the Group has met its most recent expectations for 2005,
in what continued to be a very challenging environment for the business.
Since the year end the Board has announced that it has disposed of its loss
making high-volume direct mail business, Stream, but had 'hived-up' the
marketing solutions business into another Group company prior to disposal. The
retained business provides data-centric marketing propositions consisting of
highly targeted direct mail, database management, fulfilment, contact centre and
response management services.
Following the completion of this prolonged period of restructuring, review and
the finalisation of the audits for both 2004 and 2005, the Board is only now
able to give accurate guidance. Its prudent view is for only modest year on year
growth and that 2006 will be a year of steadily building on the foundations that
have been laid.
I believe that the Group is well positioned to deliver innovative print
management and business communication solutions.
R Atkins
Chairman
5 June 2006
Chief Executive's review
Year ended 31 December 2005
Overview
The Group's strategy is to provide its customers with innovative print
management and business communication solutions, which remove considerable cost
from within their organisations. Using the experience of our staff, service
offering and technology we are able to provide our customers with tailored
solutions which re-engineer and manage the way they communicate their corporate
messages. A corporate message is anything from a brochure to direct mail, point
of sale, emails, report and accounts, or an invoice.
The print industry is the UK's fifth largest sector and the supply chain is
complex and incredibly fragmented. As a result, customers with a large print
spend will almost certainly be able to save money from an outsourced print
management solution. AccessPlus has demonstrated savings of over 30% to a number
of its customers.
In the current environment, businesses are looking to reduce headcount and
external spend. Customers are seeking contracted relationships with partners to
whom they can outsource their print and associated spend. These contract terms
range from 12 months to 10 years and will allow the Group to deliver an annuity
business. The Group is already working in partnership with a number of leading
businesses, across a variety of sectors including: financial services, retail,
charities, telecommunications and IT.
It is particularly pleasing to have increased our contracted revenue in 2005 by
50% and we will look to increase this further in the short to medium term thus
giving the Group greater visibility in earnings.
The twelve months to 31 December 2005 represented a period of substantial
Group-wide infrastructure improvement, service integration and corporate
development. Also, whilst not in the period under review it is important to
highlight the disposal of the high-volume direct mail business, Stream, on 31
March 2006. The Group retained the 'added-value' marketing solutions element of
the Stream business which was located at separate premises. This new business
has been named AccessPlus Marketing Logistics and allows the Group to provide
its customers with data solutions which will enable them to communicate with
their end-customers more effectively and see better returns from their
communication campaigns.
The disposal of the high volume Stream business comes at a time of continued
over-capacity and rapidly deflating prices in the high-volume direct mail market
and substantial investment would have been required to make the business
competitive and profitable. The Group is now able to focus on its core business
of outsourcing print and high-volume direct-mail to its accredited supplier
base. The disposal of Stream will have a positive impact on the operational
gearing of the business.
To enable the Board to deliver on its strategy, important investments in new
staff (in the areas of contract management, procurement, managed solutions, and
human resources), IT infrastructure and new property in London and Swindon were
undertaken during 2005, which have provided the Group with a solid foundation
for future growth and development.
Outsourced Solutions
The Group provides services to many major organisations, including BAA Plc,
General Healthcare Group, Skandia, MacMillan Cancer Relief, Manpower, Virgin
Mobile and Virgin Megastores.
The Group has focussed on developing each customer by providing additional added
value services to those we were first contracted to provide. This not only
delivers revenue growth, but strengthens the partnership we have with our
customers as we are able to provide them with further cost savings from the
services the Group provides.
In 2005 the Group suffered a decline in ad hoc revenue from its non-contracted
customers, mainly in the area of business forms. However the major accounts
performed well, with the revenue from our top 30 customers in 2005 up 24% on
2004, highlighting the impact of this strategy.
The Group will continue to focus on converting its non-contracted customer base
onto contracts. Whilst contracts can mean lower margins in return for a more
robust revenue stream, our ability to offer additional services can lead to
further revenue growth opportunities.
The Group is also focused on winning new long term contracts to drive organic
growth. These contracts require significant investment in terms of management
time to win, to implement, and often involve financial investment to set up.
Typically it can take anything from one month to a year from winning a contract
to generating full revenues.
In the year under review, the Group has increased its contracted revenue base by
50%. The contracts awarded to the Group in 2004 produced additional revenue in
2005 of #5m.
The Board believes that these indicators validate its strategy of growing long
term contracted revenue across a range of vertical markets with the obvious
positive impact on stability and quality of earnings.
At the time of the preliminary announcement of the Group for the year ended 31
December 2004, the Board announced that it was currently at preferred bidder
status with a leading financial services organisation. This contract to provide
a major print management service for its UK operation has now been signed. The
contract is for an initial three year period, with the option to renew the
agreement for two additional successive one year terms. Whilst we have been
working with this organisation for a number of months now we are pleased to have
the signed contract in place. We now look forward to continuing our close
working relationship with this organisation and building on the work we have
already done for them. There are further growth opportunities available to us
with this contract and we will look to maximise on these opportunities in the
foreseeable future.
During 2005, the Group entered into discussions with Standard Register, a
leading document services provider in the US, to provide its US based customers
with a European solution. In March 2006 AccessPlus Marketing Services Limited,
and Standard Register in the US entered into an alliance to better serve their
customers in North America and Europe. The reciprocal relationship provides
customers with print management services and technology integration that helps
both companies' customers ensure brand consistency worldwide, whilst driving
cost out of the supply chain.
One of the key drivers of the relationship with Standard Register is to provide
our respective global clients with more products and services at all their
locations. TripleArc technology is well established in the US and is used by
Standard Register providing both parties with a common platform for its print
procurement. AccessPlus and Standard Register have standardised procedures and
reporting strategies to facilitate a common service offering. AccessPlus is
already providing print management services for two of Standard Register's
customers in the UK and Europe. The Group hopes to be able to take the US
proposition to a number of its customers in due course.
TripleArc Technology
IT is a key component in an outsourced solution for streamlining and removing
cost from the supply chain. The technology expertise within the Group provides
key support in selling and delivering customer solutions, and TripleArc's
proprietary software gives the Group a competitive advantage in this area.
Our suppliers are now connected to the Group via TripleArc's Collaborative
Workflow System (CWS) and we continue to work with our supplier base to ensure
best procurement practice and benefits to the Group and our customers.
We are currently in development with a new solution which will enable our
customers to receive instant print quotations from the Group's supplier base.
The solution is currently in development testing with a number of our suppliers
and the initial results are very encouraging both in terms of process
improvement and customer interest from a new business perspective.
Further enhancements were made to TripleArc's edit2print solution, a leading
online PDF editing software. A number of the Company's customers including
General Healthcare Group licensed this solution in 2005, generating revenue for
the Group and removing significant cost from the customers supply-chain. These
costs include reversion costs typically charged by the design or marketing
agency.
TripleArc's Online Stock Catalogue and Ordering System (OSCOS) is now fully
deployed within many of Access Plus' customers. OSCOS provides the Group's
customers with a shop window displaying the printed products they have stored
within our warehousing facilities and allows them to order goods and check stock
levels. OSCOS is a market-leading solution and again strengthens our
partnerships with our customers.
The Group's ongoing technology strategy is to partner with software companies to
provide a 'best-in-class' IT offering rather than committing itself to
substantial in-house R&D spend. This will allow the Group to provide flexible
solutions and ensure the right process driving technology is integrated into
each customer.
Board Changes
On 5 July 2005, Richard Hodgson joined the Board as Chief Financial Officer.
Richard joined the Group from Iron Mountain Europe where he was European Finance
Director.
David Wong retired from the Board as a non-executive director on 25 July 2005 in
order to spend more time on his other business interests. David was a founding
director of TripleArc and was previously Chairman of the Group.
In February 2006, the Board welcomed Richard Atkins to the role of Independent
Non-Executive Chairman. Richard has spent the majority of his career within the
IT and Support Services industries, most recently at IBM where he held a number
of senior positions in marketing, strategy and general management. The Company
also announced that Chris Pople, JT Wong and Nick Haigh had resigned from the
Board.
Staff
The year under review was one of change and the Board would like to thank the
Group's staff for the commitment, professionalism and loyalty that they have
shown during this period. The Group can differentiate itself because of its
staff and the skills that they can provide to its customers, and they are the
resource that underpins the Group's strategy.
Suppliers
The Board would like to take this opportunity to thank its suppliers for
embracing the Group's technology and excellent service they provide.
Current Trading & Outlook
As noted above, the latter half of 2005 was difficult due to the very public
issues the Group faced and this has delayed the winning of new business.
The over-capacity and deflationary pricing in the market for high volume direct
mail required decisive action by the Board resulting in the disposal of that
business. Whilst this has provided immediate positive impact on the Group's
liabilities, it absorbed a significant amount of senior management time and
delayed the implementation of the Group's strategy. This has also removed what
was previously viewed as a profitable division.
The Board is beginning to see momentum building from maintaining its strategy of
pursuing contracted revenue and account development. These early positive signs,
combined with a further strategic review, have convinced the Board that
continued investment in sales, marketing and account management are justified as
opposed to further cost reductions.
The Group has been successful in early 2006 in securing new contract wins but
given a better understanding of the period taken to fully realise the results of
these wins, and the much greater potential benefit of taking the time to get it
right, the Board is cautious in its immediate expectations for their impact.
The Group is committed to delivering innovative print management and business
communication solutions which will deliver future benefits for its customers,
suppliers, investors and staff and the Board is determined to build a secure
long term business model.
J Cromack
Chief Executive Officer
5 June 2006
Financial review
Year ended 31 December 2005
Restatement of 2004 Accounts
Following a review in the second half of 2005 it was determined that a number of
financial reporting errors arose during the integration of Access Plus and the
implementation of the Group-wide financial reporting system. Approximately #1.1m
of costs were misallocated between the 2004 and the 2005 financial periods which
resulted in a material overstatement of profitability in the Group's accounts
for the year ended 31 December 2004 (the "2004 Accounts"). The Board concluded
that the 2004 Accounts required restating when the statutory accounts for the
year ended 31 December 2005 were filed.
The restatement of the 2004 accounts is primarily due to cut-off errors
resulting from the implementation of a new accounting system. The Board is
confident that these previous financial control issues have been addressed.
Financial Highlights
In the twelve months to 31 December 2005, turnover increased by 19% to #57.5m
(2004 - #48.2m) and gross profit improved by 30% to #14.8m (2004 - #11.3m).
Group operating profit before exceptional items and the amortisation of
intangible assets ("EBITA") decreased from #3.5m in 2004 to #1.8m in 2005.
Revenue and gross profit from continuing operations increased by 3% and 17%
respectively.
EBITA from continuing operations was #2.1m after removing the impact of the
discontinued Stream business. Adding back depreciation of #0.4m the Groups
continuing operations produced EBITDA of #2.5m, sufficient to cover continuing
interest and exceptionals of #2.2m combined.
The impact of the decline in the business forms market and a slow down in demand
from the retail sector on the Group's EBITA would have been far greater if not
offset by the increase in contracted annuity revenue. However, to achieve this
more secure revenue base, significant investments in infrastructure have had to
be made in IT, HR, property and account management. These investments increased
administrative expenditure by #1.1m in 2005.
Against this increase, a full review of costs has so far generated #0.8m of
annualised savings in the continuing operations. As these costs were realised
towards the end of 2005 their impact is not yet fully felt.
Working Capital and Debt
Operating cash generation continues to be positive and overall there was a net
cash inflow over the period of #2.7m (2004 - net cash inflow of #3.4m). This was
primarily achieved through focused working capital management. Debtor days were
reduced and creditor days were maintained.
Outstanding bank loans in 2005 fell by #1.25 million. Net debt at 31 December
2005 was #16.3m, including #1.3m in respect of the invoice discounting line
acquired with the Stream business versus #17.4m in 2004. Net debt within
continuing operations stood at #15.7m.
Net current liabilities of #1.9m included #1.9m of bank loan repayments due in
the next 12 months, #1m of net liabilities that were disposed with the Stream
business and #0.5m of deferred consideration. Stock, trade debtors and cash
stood at #13.2m versus trade creditors of #9.9m, giving us adequate headroom in
these key lines.
The Group has completed a full strategic review with its senior lender, HSBC and
continues to enjoy their support.
R Hodgson
Chief Financial Officer
5 June 2006
Consolidated Profit and Loss Account
for the year ended 31 December 2005
Note 2005 2005 2004
Contin- Discon- 2005 Restated
uing tinued Total (note 2)
#'000 #'000 #'000 #'000
Turnover 3 49,738 7,794 57,532 48,211
Cost of sales (36,431) (6,314) (42,745) (36,870)
________ ________ ________ ________
Gross profit 13,307 1,480 14,787 11,341
Administrative expenses:
Excluding exceptional items and
amortisation of intangible assets (11,228) (1,789) (13,017) (7,891)
Exceptional items 4 (946) (757) (1,703) (285)
Amortisation of intangible assets (2,211) 41 (2,170) (2,165)
________ ________ ________ ________
(14,385) (2,505) (16,890) (10,341)
Operating (loss)/ profit 3
__________________________________________________________________________________
Excluding exceptional items
and amortisation of intangible
assets 2,079 (309) 1,770 3,450
Exceptional items 4 (946) (757) (1,703) (285)
Amortisation of intangible
assets (2,211) 41 (2,170) (2,165)
________ ________ ________ ________
__________________________________________________________________________________
Operating (loss)/ profit (1,078) (1,025) (2,103) 1,000
Interest receivable ======== ======== 82 54
Interest payable and similar
charges (1,553) (1,407)
________ ________
Loss for the financial year
before taxation (3,574) (353)
Tax on loss on ordinary
activities 5 80 (236)
________ ________
Loss for the financial year (3,494) (589)
======== ========
Loss per ordinary share
- basic and diluted (pence) 6 (1.69p) (0.29p)
The discontinued operations in 2005 relate to the high volume direct mail
business within Stream GWC Group Limited, which was sold on 31 March 2006.
Stream GWC Group Limited was acquired by Triple Arc Plc on 31 December 2004 and
therefore no comparative disclosures can be made in 2004.
Consolidated Statement of Total Recognised Gains and Losses
for the year ended 31 December 2005
2004
Restated
2005 (note 2)
#'000 #'000
Loss attributed to shareholders (3,494) (589)
Prior year adjustment (note 2) (845) -
________ ________
Total gains and losses recognised since last Annual Report (4,339) (589)
======== ========
Consolidated Balance Sheet
at 31 December 2005
Restated
(note 2)
2005 2004
#'000 #'000
Fixed assets
Intangible assets 34,974 43,703
Tangible assets 2,206 2,466
________ ________
37,180 46,169
________ ________
Current assets
Stocks 1,281 1,140
Debtors 11,450 15,467
Cash at bank and in hand 994 277
________ ________
13,725 16,884
Creditors: amount falling due within one year (15,633) (16,592)
________ ________
Net current (liabilities)/assets (1,908) 292
________ ________
Total assets less current liabilities 35,272 46,461
Creditors: amounts falling due after more than one year (14,010) (22,010)
________ ________
Net assets 21,262 24,451
======== ========
Capital and reserves
Called up share capital 10,353 10,213
Share premium account 20,175 20,010
Share option reserve 1,030 1,030
Merger reserve (621) (621)
Group interest in shares of TripleArc Plc (150) (150)
Profit and loss account (9,525) (6,031)
________ ________
Equity shareholders' funds 21,262 24,451
======== ========
Consolidated Cash Flow Statement
for the year ended 31 December 2005
Note Restated
(Note 2)
2005 2004
#'000 #'000
Net cash inflow from operating activities 7 2,742 3,364
________ ________
Returns on investment and servicing of finance
Interest received 82 54
Interest paid (1,381) (1,322)
________ ________
Net cash outflow from returns on investments and
servicing of finance (1,299) (1,268)
________ ________
Taxation
UK corporation tax paid (17) (723)
________ ________
Capital expenditure and financial investment
Purchase of tangible fixed assets (511) (400)
Receipts from sales of tangible fixed assets 58 -
________ ________
Net cash outflow from capital expenditure (453) (400)
________ ________
Acquisitions and disposals
Costs incurred in connection with acquisitions - (157)
Cash acquired on acquisition - 161
________ ________
Net cash inflow from acquisitions and disposals - 4
________ ________
Net cash inflow before financing 973 977
________ ________
Financing
Proceeds from issue of share capital 305 -
Repayment of loan notes (33) -
Long term loans repaid (1,251) (2,925)
New long term bank loans - 720
New finance leases 26 -
________ ________
Net cash outflow from financing (953) (2,205)
________ ________
Increase/(decrease) in cash 9 20 (1,228)
======== ========
Notes to the Financial Statements
31 December 2005
1. PRELIMINARY STATEMENT
This preliminary statement, which has been agreed with the auditors, was
approved by the Board on 4 June 2006.
The financial information set out in this preliminary statement does not
constitute the company's statutory accounts for the years ended 31 December 2005
or 31 December 2004. The financial information for the year ended 31 December
2004 is derived from the statutory accounts for that year which have been
delivered to the Registrar of Companies and which received an audit report which
was unqualified and did not contain statements under s237(2) or (3) of the
Companies Act 1985. The statutory accounts for the year ended 31 December 2005
have not yet been approved, audited or filed and will be sent to shareholders in
due course.
2. PRIOR YEAR ADJUSTMENT
The 2004 comparative figures have been restated to correct a fundamental error
relating to cut-off, whereby costs and revenue were incorrectly treated during
the year ended 31 December 2004. In addition, the goodwill amortisation charge
in 2004 was incorrect and this has also been restated.
The impact of these restatements upon the 2004 consolidated profit and loss
account is described below:
2004
#'000
Profit for the 2004 financial year before restatement 256
________
Cut-off errors (1,066)
Goodwill amortisation (80)
Corporation tax impact 301
________
Prior year adjustment (845)
________
Restated loss for the 2004 financial year (589)
========
The effect on the consolidated balance sheet is shown below:
2004
#'000
Net assets before restatement 25,296
Intangible assets (80)
Stocks (86)
Debtors (96)
Creditors falling due within 1 year (583)
________
24,451
========
3. SEGMENTAL ANALYSIS
Operating profit/
Turnover (loss) Net Assets
2004 2004 2004
2005 Restated 2005 Restated 2005 Restated
#'000 #'000 #'000 #'000 #'000 #'000
Continuing operations
- Print procurement
solutions 152 371 (1,269) (513) 917 625
- Print management 49,586 47,840 191 1,513 36,230 41,248
________ ________ ________ ________ ________ ________
49,738 48,211 (1,078) 1,000 37,147 41,873
________ ________ ________ ________ ________ ________
Discontinued operations
- Print procurement
solutions - - - - - -
- Print management 7,794 - (1,025) - 431 -
________ ________ ________ ________ ________ ________
7,794 - (1,025) - 431 -
======== ======== ======== ________ ________ ________
37,578 41,873
======== ========
Interest bearing assets 994 277
Interest bearing liabilities (17,310) (17,699)
________ ________
Net assets 21,262 24,451
======== ========
Predominantly all of the Group's turnover and operating (loss)/ profit
originates within the UK and the vast majority of the Group's net assets are
located within the UK.
On 31 March 2006 the Group disposed of the high volume direct mail business
within the Stream Group. The turnover and operating results of this business for
the year ended 31 December 2005 have been classified as 'discontinued' in
accordance with FRS3, 'Reporting Financial Performance'. The consideration
received was #1, generating a profit on disposal of approximately #950,000
before associated costs.
Interest bearing assets and interest bearing liabilities comprise the components
of the Group's net debt.
4. EXCEPTIONAL COSTS
The following costs were derived from events that fall within the ordinary
activities of the group and have been classified as operating exceptional items
by virtue of their size or incidence:
2005 2004
#'000 #'000
Recruitment, reorganisation and integration costs (1,703) (285)
======== ========
The costs mainly relate to the reorganisation of the Group following the
acquisition of the Stream Group on 31 December 2004.
5. TAXATION
Taxation (credit)/charge for the year
a) The taxation (credit)/charge for the year is analysed below:
Restated
2005 2004
#'000 #'000
Current taxation
UK corporation tax - 274
Under provision in prior years - 30
________ ________
- 304
Deferred tax
Elimination of timing differences (80) (68)
________ ________
Taxation (credit)/charge for the year (80) 236
======== ========
b) Factors affecting the current tax charge
The effective rate of tax for the period differs from the standard rate of tax
in the United Kingdom. The differences are set out in the tax reconciliation
below:
Restated
2005 2004
#'000 #'000
Loss on ordinary activities before taxation (3,574) (353)
======== ========
Loss on ordinary activities multiplied
by the standard rate of corporation tax
in the UK of 30% (2004: 30%) (1,072) (106)
Effects of:
Expenses not deductible for tax purposes 200 9
Goodwill amortisation 629 626
Depreciation in excess of capital allowances 68 25
Other timing differences 50 (49)
Losses carried forward 125 (231)
Prior year adjustment - 30
________ ________
- 304
======== ========
The group has not recognised any deferred tax assets in respect of losses
carried forward as the ultimate utilisation of these losses is uncertain. The
group has losses carried forward of approximately #3.7m.
6. EARNINGS PER SHARE
Restated
Dis- Total Total
Continuing continued 2005 2004
operations operations
a) Basic loss per share
Loss attributable
to ordinary shareholders
(#'000) (2,399) (1,095) (3,494) (589)
=========== =========== =========== ===========
Basic weighted average
number of shares 206,588,489 206,588,489 206,588,489 201,012,601
=========== =========== =========== ===========
Basic loss per share
(pence) (1.16p) (0.53p) (1.69p) (0.29p)
=========== =========== =========== ===========
In 2005 and 2004 the diluted EPS is considered to be the same as the basic EPS
as any shares to be issued under the option arrangements will be anti dilutive
due to the loss in both years.
Restated
Dis- Total Total
Continuing continued 2005 2004
operations operations
b) Adjusted earnings /
(loss) per share
Profit/ (loss) attributable
to ordinary shareholders
(#'000) 781 (497) 285 1,791
=========== =========== =========== ===========
Basic weighted average
number of shares 206,588,489 206,588,489 206,588,489 201,012,601
=========== =========== =========== ===========
Basic earnings/
(loss) per share (pence) 0.38p (0.24p) 0.14p 0.89p
=========== =========== =========== ===========
Loss on ordinary activities after taxation of #3.5m (2004: loss #0.6m as
restated) is shown after deducting #1.7m (2004: #0.3m) in respect of exceptional
recruitment and integration costs, #2.3m (2004: #2.2m) in respect of goodwill
and deferred financing amortisation, and #Nil (2004: #7,000) in respect of share
option compensation expense. Adjusted earnings per share has been calculated by
dividing the adjusted profit (after allowing for the potential tax credit on
exceptional costs) by the weighted average number of shares in issue at
31 December 2005 and 31 December 2004 respectively.
7. RECONCILIATION OF OPERATING (LOSS)/PROFIT TO NET CASH INFLOW FROM OPERATING
ACTIVITIES
Restated
2005 2004
#'000 #'000
Operating (loss)/profit (2,103) 1,000
Depreciation 508 252
Profit on disposal of tangible fixed assets (25) (3)
Amortisation of intangible assets 2,170 2,165
Non cash share option compensation expense - 7
(Increase)/decrease in stocks (141) 200
Decrease/(increase) in debtors 4,097 (1,474)
(Decrease)/increase in creditors (1,764) 1,217
________ ________
Net cash inflow from operating activities 2,742 3,364
======== ========
The operations classified as discontinued do not have a material impact on the
cash inflows and outflows from operating activities during 2005.
8. ANALYSIS OF CHANGES IN NET DEBT
At 31 Inception At 31
December Non cash of finance December
2004 Cash flow items leases 2005
#'000 #'000 #'000 #'000 #'000
Cash at bank 277 717 - - 994
Bank overdrafts (730) (697) - - (1,427)
_______ _______ _______ _______ _______
Cash (453) 20 - - (433)
_______ _______ _______ _______ _______
Loan notes (33) 33 - - -
Loans repayable in less
than one year (1,899) 18 - - (1,881)
Loans repayable in more
than one year (15,037) 1,233 (172) - (13,976)
Finance leases - - - (26) (26)
_______ _______ _______ _______ _______
Borrowings (16,969) 1,284 (172) (26) (15,883)
_______ _______ _______ _______ _______
Net Debt (17,422) 1,304 (172) (26) (16,316)
======= ======= ======= ======= =======
The non-cash items relate to the amortisation of FRS 4 finance costs.
9. RECONCILIATION OF NET CASH FLOW TO MOVEMENTS IN NET DEBT
2005 2004
#'000 #'000
Increase/(decrease) in cash in the year 20 (1,228)
Movement in net debt 1,258 1,376
Deferred financing costs (172) (85)
_______ _______
Movement in net debt in the year 1,106 63
Net debt at 1 January (17,422) (17,485)
_______ _______
Net debt at 31 December (16,316) (17,422)
======= =======
10. Copies of this statement will be available from the Company's registered
office: Access House, The Promenade, Clifton Down, Bristol, Avon, BS8 3AQ.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR AKQKPOBKDPAK
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