RNS Number:5245I
Total Systems PLC
27 November 2007
FOR RELEASE 7:00 AM 27 NOVEMBER 2007
TOTAL SYSTEMS plc
Unaudited Interim Results for the half year ended 30 September 2007
Total Systems plc ("Total" or "the Company"), suppliers of cost effective,
flexible, software systems for the financial services industry, primarily in the
insurance and warranty sectors, announces its interim results for the half year
ended 30 September 2007.
Commenting on the Company's results Terence Bourne, Chairman, said:
"During the first six months of the financial year the Company has continued to
work with existing clients while keeping discretionary costs under control. This
has resulted in a 3% fall in revenue and a near halving of the loss compared to
the corresponding period of last year. The sales and marketing team continues to
identify new prospects in the market and is pursuing a number of sales
opportunities. Ultima and the development of the skills of our staff remain our
key investment areas."
Financial Highlights
* Turnover #1.635m (2006: # 1.689m)
* Loss before tax # (163)k (2006: # (302)k)
* Basic Loss Per Share (1.18)p (2006: (2.12)p)
* Interim dividend Nil (2006: Nil)
* Gearing Nil (2006: Nil)
* Net assets per share 34.37p (2006: 37.16p)
* Cash per share 22.07p (2006: 29.53p)
Product Summary
Ultima, the complete insurance and warranty solution, continues to bring
significant business benefits to clients including:
* Low cost of ownership.
* Integrated solution.
* Flexible and designed for change with Business Configurator.
* Easy integration with external systems.
* Service Oriented Architecture.
Regarding the Company's current trading and outlook, Terence Bourne commented:
"The trading outlook for the second half of the financial year is showing an
improvement over the first half as the relationship announced in January starts
to progress. We continue to see a reasonable level of business from our existing
clients. Indications are that we should approach breakeven on a monthly basis
during the second half of the year. We are engaging with a number of
opportunities and remain optimistic of future orders.
The Company's finances remain on a strong footing with discretionary costs being
controlled. The Board will initiate all measures necessary to ensure the
long-term prospects of the Company."
E-mail: ir@totalsystems.co.uk web site: www.totalsystems.co.uk
Enquiries:
Terence 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 cost effective flexible software
systems for the financial services sector, primarily in the insurance and
warranty sectors, as well as complementary IT consultancy, development,
integration and support services.
The Company has a full listing on the London Stock Exchange.
Significant investment has been made by the Company in developing Ultima, the
general insurance system for personal and commercial lines. Examples of Total's
clients for Ultima include Denplan (part of the Global AXA Group), DSG
International, HSBC Insurance and Zurich Insurance Company (Navigators &
General).
The Company also markets the Invu electronic document management system and a
highly innovative product that enables insurers to dynamically adjust pricing to
meet market competition and to maximise profitability.
Chairman's Statement
During the first six months of the financial year the Company has continued to
work with existing clients while keeping discretionary costs under control. This
has resulted in a 3% fall in revenue and a near halving of the loss compared to
the corresponding period of last year. The sales and marketing team continues to
identify new prospects in the market and is pursuing a number of sales
opportunities. Ultima and the development of the skills of our staff remain our
key investment areas.
Results
Revenue for the half year was # 1,634,635 (2006: #1,688,588) and I am pleased to
report a reduced loss before tax of #163,356 (2006 loss: #302,055) resulting in
a loss per share of 1.18p (2006: 2.12p). The reduction in loss achieved against
the previous half year is #138,699.
Financial
Zero gearing and net assets of 34.37p per share (2006: 37.16p) of which 22.07p
per share (2006: 29.53p) is represented by cash continues to demonstrate our
financial strength during this difficult trading period.
Dividend
Your Board does not propose a payment of an interim dividend.
Strategy
Total Systems is committed to the financial services market. Our strategy is to
provide innovative software products together with support and consulting
services to enable financial services companies to rapidly launch new products,
take advantage of new channels to market, reduce costs and improve efficiency.
Products
Ultima is a customer oriented policy management system for insurance and
warranty administration encompassing quotations, underwriting, claims,
accounting, broker management, management information and reporting.
Targeted at insurers and warranty providers Ultima seeks to facilitate maximum
efficiency while ensuring regulatory compliance and enabling clients to quickly
adapt to changing business conditions. Ultima can run in excess of 30 lines of
business concurrently and is noted for its flexibility and reliability. It is
available on a Service Oriented Architecture basis, so that individual business
components can be deployed even more cost effectively. The Business Configurator
facility enables clients to make their own enhancements and launch new and
original products without the need for programming. All these features combine
to make Ultima easily configurable to meet client's specific requirements, for
both large and small scale applications, while delivering fast implementation
compared to our competitors.
Enhancements recently released include the latest credit card encryption,
improved Business Configurator controls and workflow advances. In addition
innovative new features are in development. These include vehicle tracking &
charging and customer service environments where system flexibility is
paramount. Plans are also underway for full internationalisation of the product
making it multi-language to enable swift worldwide roll out for local usage.
The Company is also marketing Invu, an electronic document management solution
and a dynamic pricing optimiser.
Operations
Excellent support has been given to our blue chip clients and we continue to see
real benefits from our account management strategy. Our long term objective of
increasing our recurring revenues is starting to bear fruit with transaction and
time based licence fees likely to increase in future years.
We have supported one of our customers as they have rolled out their offering
across Western Europe. It is anticipated that some Eastern European countries
will soon be using Ultima and we will continue to supply our expertise to assist
that process. Our technical team have supplied specific developments and general
upgrades to all our customers in a timely and professional manner as required.
Technical staff have been retained during the difficult conditions that the
Company has experienced in anticipation of new orders and this is the major
reason for the loss for the half year.
Market place
The general insurance market place remains extremely competitive. Our
relationship with a large systems integrator is developing and it is anticipated
that, over time, the significant investment made in that relationship will bring
further success in the wider marketplace. During the period we participated in a
number of events and held seminars to promote our portfolio. These actions have
brought our products to the attention of a wider audience. The sales pipeline
looks healthy at this point in time and we are running a new integrated
marketing campaign in the second half of the financial year to enhance our
suspect and prospect base. As part of this process we have sponsored and
presented at a major conference in November with the result that Total's market
profile has been considerably improved to the point where we are now recognised
as a key player.
Personnel
I would like to thank all our staff for their enthusiastic support. It is their
versatility and in depth experience of the insurance and warranty industries
together with their proactive team spirit that drives the success of the
Company. Our sales director's resignation in July has had no significant impact
on the business and the sales and marketing team continue to be positive and
motivated.
Current trading and outlook
The trading outlook for the second half of the financial year is showing an
improvement over the first half as the relationship announced in January starts
to progress. We continue to see a reasonable level of business from our existing
clients. Indications are that we should approach breakeven on a monthly basis
during the second half of the year. We are engaging with a number of
opportunities and remain optimistic of future orders.
The Company's finances remain on a strong footing with discretionary costs being
controlled. The Board will initiate all measures necessary to ensure the
long-term prospects of the Company.
Terence Bourne
Chairman
26 November 2007
TOTAL SYSTEMS plc
Consolidated Income Statement
for the half year ended 30 September 2007
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended
30 September 30 September 31 March
Note 2007 2006 2007
# # #
Continuing operations
Revenue 2 1,634,635 1,688,588 3,357,988
----------------- -------------- --------------
Operating loss (227,337) (373,255) (670,349)
Interest receivable and similar income 63,981 71,243 140,626
Interest payable and similar charges - (43) (283)
-------------- ------------- -------------
Loss on ordinary activities before taxation (163,356) (302,055) (530,006)
Taxation 39,517 78,530 111,133
--------------- -------------- -------------
Loss after taxation (123,839) (223,525) (418,873)
--------------- --------------- -------------
Basic loss per ordinary share 5 (1.18)p (2.12)p (3.98)p
Diluted loss per ordinary share (1.18)p (2.12)p (3.98)p
There is no recognised income or expense for the current period or prior year
other than as stated above.
As a consequence a statement of recognised income and expenses is not presented.
Consolidated Balance Sheet
as at 30 September 2007
Unaudited Unaudited Audited
as at as at as at
30 September 30 September 31 March
2007 2006 2007
Note # # #
ASSETS
Non-current assets
Property, plant & equipment 974,770 790,841 1,040,102
Deferred tax assets 92,539 - 53,022
---------------- -------------- ---------------
Total non-current assets 1,067,309 790,841 1,093,124
---------------- ---------------- ----------------
Current assets
Trade and other receivables 873,268 623,414 845,810
Cash and cash equivalents 2,321,588 3,106,166 2,380,016
------------- -------------- ----------------
Total current assets 3,194,856 3,729,580 3,225,826
-------------- --------------- -----------------
TOTAL ASSETS 4,262,165 4,520,421 4,318,950
----------------- --------------- ----------------
LIABILITIES
Current liabilities
Trade and other payables (646,836) (549,404) (590,027)
Current tax liabilities - (52,567) -
-------------- ------------ -------------
Total current liabilities (646,836) (601,971) (590,027)
-------------- ---------------- ---------------
Non-current liabilities
Deferred tax liabilities - (9,239) -
------------- ---------------- -------------
TOTAL LIABILITIES (646,836) (611,210) (590,027)
-------------- -------------- --------------
NET ASSETS 3,615,329 3,909,211 3,728,923
------------- --------------- --------------
SHAREHOLDERS EQUITY
Issued share capital 525,978 525,978 525,978
Share premium 83,010 83,010 83,010
Retained earnings 2,954,036 3,273,223 3,077,875
Stock option reserve 52,305 27,000 42,060
---------------- --------------- ---------------
TOTAL EQUITY 8 3,615,329 3,909,211 3,728,923
--------------- ---------------- -----------------
Consolidated Cash Flow Statement
for the half year ended 30 September 2007
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended
30 September 30 September 31 March
Note 2007 2006 2007
# # #
Operating activities
Cash received from customers 1,943,066 2,345,057 4,101,042
Cash payments to suppliers (367,863) (554,777) (987,877)
Cash payments to employees (865,119) (900,347) (1,787,743)
Cash paid for PAYE and National
Insurance
(569,768) (549,343) (1,118,556)
Cash paid for VAT (292,172) (389,421) (663,419)
Other business payments (16,248) (23,330) (45,869)
--------------- --------------- -----------------
Cash outflow from operating activities 7 (168,104) (72,161) (502.422)
Income taxes received 52,567 - -
Income taxes paid - - (52,567)
-------------- -------------- ---------------
Net cash outflow from operating
activities
(115,537) (72,161) (554,989)
-------------- -------------- --------------
Cash flows from investing activities
Interest received 63,981 71,243 140,626
Receipts on sale of assets - 100 327
Purchase of plant and equipment (6,872) (23,242) (335,934)
------------- -------------- ---------------
Net cash inflow/(outflow) from investing
activities
57,109 48,101 (194,981)
-------------- --------------- --------------
Cash flows from financing activities
Interest paid - (43) (283)
Equity dividends paid - (94,676) (94,676)
------------ ------------ -------------
Net cash outflow from financing
activities
- (94,719) (94,959)
------------ ------------ -------------
Net change in cash and cash equivalents
(58,428) (118,779) (844,929)
Opening cash and cash equivalents 2,380,016 3,224,945 3,224,945
-------------- --------------- ----------------
Closing cash and cash equivalents 2,321,588 3,106,166 2,380,016
--------------- ---------------- ----------------
Notes to the Interim Report:
1. The financial information contained in this statement does not
constitute the statutory accounts as defined in section 240 of the Companies Act
1985 and have not been audited. The abridged information for the 12 months ended
31 March 2007 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 were unqualified and did not
contain a statement under Section 237(2) or Section 237(3) of the Companies Act
1985. Prior half year comparatives remain unaudited. The Interim Report was
approved by the directors for release on 26 November 2007.
2. The Group's revenue is derived from the writing and supply of its
computer software and supply of third party software both with related support
services. The origin and destination of revenue and profit are the same; wholly
in the United Kingdom. A segmentation of major revenue streams is shown below
but a segmentation of operating profit is not meaningful and is not shown. All
activities derive from continuing operations.
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended
30 September 30 September 31 March
2007 2006 2007
# # #
Time & materials 1,220,341 1,383,739 2,507,853
Own software licences and maintenance 286,123 104,140 563,717
Third party software licences and maintenance 128,171 200,709 286,418
--------------- ------------- --------------
Total revenue 1,634,635 1,688,588 3,357,988
-------------- ------------- -------------
3. The Interim Report has been prepared in accordance with International
Accounting Standard 34 (IAS 34) "Interim Financial Reporting". The accounting
policies followed in the interim financial report are in accordance with IFRS
and are consistent with the prior periods. A full list of the accounting
policies under IFRS was disclosed in the Group's statutory accounts for the year
ended 31 March 2007. Copies of the Annual Report are available from the Company
website (www.totalsystems.co.uk) or from the registered office.
4. No interim dividend has been declared.
5. The calculation of basic and diluted loss per share is based on a loss
after taxation of #123,839 (2006: #223,525) and a weighted average of 10,519,553
shares (2006: 10,519,553) in issue during the period.
6. It is intended to post this Interim Report to shareholders on 29
November 2007. Copies of the Interim Report will also be available from the
Registered Office of the Group at 394 City Road, London, EC1V 2QA and the
Company website.
7. Reconciliation of operating loss to cash outflow from operating
activities
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
ended ended ended
30 September 30 September 31 March
2007 2006 2007
# # #
Operating loss (227,337) (373,255) (670,349)
Depreciation charges 72,204 54,475 117,906
Profit on sale of assets - (100) (327)
(Increase)/decrease in receivables (80,025) 312,563 60,509
Increase/(decrease) in payables 56,809 (79,344) (38,721)
Change in share based payments 10,245 13,500 28,560
------------ ----------- -----------
Cash outflow from operating activities (168,104) (72,161) (502,422)
------------ ------------ ------------
8. Changes in Company and consolidated equity shareholders' funds
(Unaudited)
Issued Share Retained Stock Total
share premium earnings option equity
capital reserve
# # # # #
---------- ---------- ---------- --------- -----------
As at 1 April 2006 525,978 83,010 3,591,424 13,500 4,213,912
---------- ---------- ---------- --------- ----------
Loss after tax for the half year - - (223,525) - (223,525)
Final dividend paid - - (94,676) - (94,676)
Share based payments - - - 13,500 13,500
---------- ---------- ------------ --------- ----------
As at 30 September 2006 525,978 83,010 3,273,223 27,000 3,909,211
---------- ---------- ---------- --------- -----------
Loss after tax for the half year - - (195,348) - (195,348)
Share based payments - - - 15,060 15,060
--------- ---------- ------------ --------- ------------
As at 31 March 2007 525,978 83,010 3,077,875 42,060 3,728,923
---------- ---------- ---------- --------- ----------
Loss after tax for the half year - - (123,839) - (123,839)
Share based payments - - - 10,245 10,245
---------- -------- ----------- --------- ------------
As at 30 September 2007 525,978 83,010 2,954,036 52,305 3,615,329
---------- ---------- ------------ --------- ------------
Forward-looking Statements
Certain statements in this announcement are forward-looking statements. By their
nature, forward-looking statements involve a number of risks, uncertainties or
assumptions that could cause actual results or events to differ materially from
those expressed or implied by the forward-looking statements. These risks,
uncertainties or assumptions could adversely affect the outcome and financial
effects of the plans and events described herein. Forward-looking statements
contained in this announcement regarding past trends or activities should not be
taken as a representation that such trends or activities will continue in the
future. You should not place undue reliance on forward-looking statements.
The Company is under no obligation to update or keep current the forward-looking
statements contained in this announcement or to correct any inaccuracies which
may become apparent in such forward-looking statements.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
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