TIDMDXSP
DXS INTERNATIONAL PLC
(EPIC: DXSP)
AUDITED FINAL RESULTS 2016
The Directors of DXS International plc ("DXS" or the "Company"), the
ISDX quoted developer and supplier of clinical decision support systems
to Clinical Commissioning Groups ("CCGs"), GPs, Doctors and healthcare
professionals are pleased to announce the Company's Final Results for
the 12 months ending 30th April 2016.
Financial and Operational Highlights
The year under review has seen a number of significant achievements:
-- Revenue up by 20% to GBP3.25 million;
-- Number of CCGs contracted increased to 40;
-- Debt reduced and healthy cash balance of GBP300,000 at year end;
-- Three R&D projects have now reached Pilot phase including major
development to core product DXS Point of Care;
Commenting on the results Bob Sutcliffe said;
"The year under report has been challenging, principally as a result of
changes within the NHS funding regime, but the Company has continued to
grow revenues and maintained its commitment to continual improvement and
innovation. The Company is also preparing a major updated version of DXS
Point of Care, our core product offering, and offering a Personal Care
Record (PCR), The PCR will enable patients to access and own the
electronic medical record via an app on their mobile phone or PC."
Contacts:
For further information please contact:
David Immelman, CE0
DXS International plc
www.dxs-systems.co.uk 01252 719800
City & Merchant Ltd (Corporate Adviser)
David Papworth 0207 101 7676
About DXS:
DXS International presents up to date treatment guidelines and
recommendations, from Clinical Commissioning Groups and other trusted
NHS sources, to doctors, nurses and pharmacists in their workflow and
during the patient consultation. This effective clinical decision
support ultimately translates to improved healthcare outcomes delivered
more cost effectively which should significantly contribute towards the
NHS achieving its projected efficiency savings.
The following information has been extracted from the Company's audited
accounts for the year to 30th April 2016. The financial reporting
framework that has been applied in their preparation is applicable law
and United Kingdom Accounting Standards (United Kingdom Generally
Accepted Accounting Practice), including Financial Reporting Standard
102 'The Financial Reporting Standard applicable in the UK and Republic
of Ireland'.
The Directors of DXS International plc accept responsibility for this
announcement.
CHAIRMAN'S REPORT
We are pleased to report that the year ending April 2016 has again seen
a number of significant achievements.
-- Revenue grew by 20% compared with 2015.
-- Three of DXS's R&D projects have now reached Pilot phase. These are the
Personal Care Record, the Interactive Patient Care Pathway and the DXS
Referral Management solution.
-- New partnerships and collaborations are being formed with providers of
additional healthcare functionality. These include the provider of the
Personal Care Record, the provider of the Patient Care Pathway, the
provider of Medical Devices that integrate into the Personal Care Record,
and Kinesis, a solution that enables Consultants to provide virtual
opinions on patients on behalf of GPs.
-- DXS Point of Care, our generic solution, delivers considerable ROI for
its clients: one study showed a GBP2.7 million reduction in referral
costs achieved over a twelve month period.
Revenue grew from GBP2,723,762 at 30 April 2015 to GBP3,255,081 at 30
April 2016, a year on year increase of 20%. Currently, we have 40 CCG
clients representing 1250 practices. While CCG numbers have increased,
practice numbers are declining. This is due to an NHS initiative to
encourage smaller practices to merge. In addition, our planned growth
has been hampered by the NHS cutting allocated budgets for GPSoC
subsidiary solutions and our expectations of future growth from this
area are therefore reduced.
To mitigate the NHS budget cuts, DXS is focusing on accessing new
revenue sources coupled with new and innovative solutions. These are:
-- Personal Care Record - The personal care record enables a patient to
enrol via DXS Point of Care in a GP Practice which will provide the
patient with full access to their medical records via an app on their
mobile device. The system will automatically detect, for example, that a
patient is a diabetic and then send the patient reminders for requisite
tests such as blood pressure checks, foot health checks etc that become
due. This is in line with NHS priorities and a new budget of GBP40
million has been made available to CCG's beginning in 2017 to fund a
Diabetes initiative.
-- Personal Care Pathway - DXS has been working on this solution for
approximately three years. This is a complex algorithmic engine that will
assess a patient in relation to a recommended treatment protocol and
alert clinicians of actions to implement to ensure treatment compliance.
-- DXS Referral Management solution - This is an enhancement to the existing
DXS Point of Care referring functionality. This area is high on the NHS
agenda and DXS are about to pilot our new referring workflow solution. As
noted above, the existing payback for users is exceptional and the
enhancement will reduce unnecessary referrals to an even greater extent.
-- DXS Innovation - This is an initiative where various medical devices are
integrated with the Patient's personal care record providing valuable
data, such as blood pressure, seamlessly into the patient's personal care
record.
-- DXS has during the past year ensured that it meets the required levels of
conformance which include customer support, content management, clinical
safety and disaster backup and management.
Our cash position remains positive and at the year end, cash at bank
stood at GBP315,000.
The audited profit for the year ending 30 April 2016 is GBP219,089
including the remaining once only write off of GBP54,000 due to a
management share option issue (see Directors Report for more information
on this item).
While NHS cuts have seen the company's revenue growth slowed, to an
estimated 10% for the year ending April 2017, the Company is actively
seeking new sources of revenue for continued growth. An example is our
recent submission of a tender for the LPP (London Partnership Program)
which should be complete by November 2016.
I particularly want to thank all DXS staff for their ongoing effort and
contribution to ensuring that DXS has achieved FRA and in parallel grown
the revenue by a significant margin.
Yours sincerely,
Bob Sutcliffe
Chairman
REPORT OF THE DIRECTORS
The directors present their annual report and the audited financial
statements for the year ended 30 April 2016. The Chairman's statement
which is included in this report includes a review of the achievements
of the Company, the trading performance, financial position and trading
prospects.
Directors
The directors for the year were:
D Immelman - CEO
S Bauer - MD
B Sutcliffe - Chair
Principal Activities
The group's principal activities during the period were the development
and distribution of clinical decision support to General Practitioners,
Nurses and Retail Pharmacies in the United Kingdom and South Africa. The
commercial side included the licensing of DXS to various CCG's, the sale
of e-detailing opportunities to the pharmaceutical industry, the UK
Primary Care sector and the licensing of DXS technology to healthcare
publishers.
Principal Risks
Failure to achieve predicted quantities of DXS contracts, particularly
due to NHS budget cuts, and slower development of additional revenue
streams may result in revenues growing more slowly than anticipated.
Financial Instruments
At this stage the Group is not faced with risk relating to interest
rates on loans, credit and liquidity.
Dividend
The Directors do not recommend a dividend.
Research and Development
The Company continues to invest into research and development both
locally and internationally. With the rapid emergence of CCGs in the UK
healthcare sector and their requirement to achieve billions of pounds of
savings, the demands of CCG's for DXS to design and create new solutions
to achieve this is on-going. Each newly developed product represents
additional potential revenue streams for the Company.
Directors' Responsibilities
The directors are responsible for preparing the financial statements for
each financial year. The directors have elected to prepare the financial
statements in accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards and applicable
law). Under company law the directors must not approve the financial
statements unless they are satisfied that they give a true and fair view
of the state of affairs of the company and of the profit or loss of the
company for that period. In preparing these financial statements, the
directors are required to:
-- Select suitable accounting policies and apply them consistently.
-- Make judgments and accounting estimates that are reasonable and prudent.
-- State whether UK accounting principles have been followed subject to any
material departures disclosed and explained in the financial statements
and,
-- Prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the company will continue in the business.
The directors are responsible for keeping proper accounting records that
are sufficient to show and explain the company's transactions and
disclose with reasonable accuracy at any time the financial position of
the company and enable them to ensure that the financial statements
comply with the Companies Act 2006. They are also responsible for
safeguarding the assets of the company and hence for taking reasonable
steps for the prevention and detection of fraud and other
irregularities.
The directors have taken all the necessary steps that they ought to have
taken as directors in order to make themselves aware of all relevant
audit information and to establish that the company's auditors are aware
of that information.
Approved by the board and signed on its behalf by:
D A Immelman
Director
30 September 2016
STRATEGIC REPORT
Review of the Company's Business
The Company has managed to grow revenues from GBP2,723,762 at April 2015
to GBP3,255,081 in April 2016, a rise of 20%. This was attributed to
increasing our CCG customers combined with our Pharmaceutical revenue.
The Company managed a profit of GBP219,089 even after the write off of
GBP54,000 for a "share option valuation". This charge has been provided
in terms of current Accounting Standards.
After significant investment of our limited resources it has been
frustrating to have the NHS cut budgets for the GPSOC initiative.
However the company has been seeking alternative revenue streams for its
offering to the UK healthcare market.
While the foregoing has resulted in slower than expected revenue growth,
management are optimistic about new opportunities going forward.
Description of Principle Risks and Uncertainties
The principle risk is that a competitor provides the market with a
superior Clinical Decision Support Solution and takes market share from
DXS. To mitigate this risk DXS continually meets the dynamic needs of
its customers through a program of R&D.
A second risk is that of CCG budgets drying up.
Analysis of Business during Year Ending April 2016
Sales growth of 20% was below expectations due to NHS budget cuts. The
company is also still waiting for GPSOC to provide DXS with access to a
compliant API which will add in excess of GBP100,000 to our bottom line.
The reason is that we still are but not meant to be paying Clinical
Systems royalties for access to patient records.
The staff headcount, including freelancers, is approximately 80 and this
is considered sufficient for current requirements.
During the past year the Company continues to meet its obligations in
terms of its systems and robustness, dictated by NHS requirements. This
should continue to offer any customer, whether in the UK or globally,
the confidence that DXS is able to deliver a high quality of service and
solution and thus provide complete peace of mind.
Financial KPI
Group Revenue GBP3,255,081 an increase of 20%. Definition: Total Group
sales including distribution of clinical decision support to General
Practitioners and the licensing of DXS to CCGs and healthcare
publishers.
Underlying Group Profit After Tax has declined and this reduction in
annual profit from the previous year is largely caused by the write off
of deferred development expenditure included in Administrative Expenses.
A required write off of GBP54,000 for a management share option
valuation has also been deducted at arriving at the profit- Definition:
Underlying profit provides information on the underlying performance of
the business adjusting for either income or charges which are both one
off or significant.
Earnings Per Share 2016 0.7p, 2015 0.9p. Definition: Earnings per share
is the underlying profit divided by the average number of ordinary
shares in issue.
ROCE 2016 13%, 2015 18%. Definition: Return on capital employed (ROCE)
is the ratio of net operating profit of a company to its capital
employed. It measures the profitability of a company by expressing its
operating profit as a percentage of its capital employed.
Approved by the board and signed on its behalf by:
D A Immelman
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEARED 30 APRIL 2016
2016 2015
GBP GBP
Turnover 3,255,081 2,723,762
Cost of sales (517,991) (461,608)
2,737,090 2,262,154
Administrative expenses (2,612,286) (2,092,782)
Provision for costs of share option
awards (54,000) (108,580)
Operating profit/ (loss) 70,804 60,792
Interest received and similar income 2,403 2,170
73,207 62,962
Interest payable and similar charges (27,271) (35,477)
Profit on ordinary activities before
taxation 45,936 27,485
Tax on Profit on ordinary activities 173,153 272,290
Profit for the year 219,089 299,775
Profit per share -
- Basic .7p .9p
- fully diluted .6p .7p
Statement of Other Comprehensive income for the year ended 30 April 2016
2016 2015
GBP GBP
Profit for the year 219,089 299,775
Tax on components of other comprehensive income - -
Total comprehensive income for the year 219,089 299,775
Statement of Financial Position for the Year Ended 30 April 2016
Group Group Company Company
2016 2015 2016 2015
GBP GBP GBP GBP
Fixed Assets
Intangible assets 2,111,147 1,868,510 - -
Tangible assets 11,650 22,132 - -
Investments - - 1,310,696 1,077,528
2,122,797 1,890,642 1,310,696 1,077,528
Current assets
Debtors: - amounts falling due
within one year 1,592,310 1,153,954 60,948 47,650
Cash at Bank and in hand 315,049 480,928 82,517 287,897
1,907,359 1,634,882 143,465 335,547
Creditors: amounts falling due
within one year (1,197,623) (1,273,960) (17,856) (21,778)
Net current assets 709,736 360,922 125,609 313,769
Total assets less current liabilities 2,832,533 2,251,564 1,436,305 1,391,297
Creditors: amounts falling due after
more than one year (94,849) (242,128) - -
Accruals and Deferred Income (1,070,844) (665,081) - -
1,666,840 1,344,355 1,436,305 1,391,297
Capital and reserves
Called up share capital 110,174 108,592 110,174 108,592
Share premium 1,639,523 1,591,709 1,639,523 1,591,709
Provision for costs of share option
awards 162,580 108,580 162,580 108,580
Retained earnings (245,437) (464,526) (475,972) (417,584)
Shareholders' funds 1,666,840 1,344,355 1,436,305 1,391,297
The financial statements were approved and authorised by the Board on
D Immelman S Bauer
Director Director
30(th) September 30(th) September
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARED 30 APRIL 2016
1. Summary of significant accounting policies
a) General information and basis of preparation.
DXS International PLC is a public company limited by shares incorporated
in England and Wales. The address of the registered office is given in
the company information on Page 1 of these financial statements.
The group's principal activities during the year were the development
and distribution of clinical decision support to General Practitioners,
Nurses and Retail Pharmacies in the United Kingdom and South Africa. The
commercial side includes the licensing of DXS products to various CCGs ,
the sale of e-detailing opportunities to the pharmaceutical industry,
the UK Primary Care sector and the licencing of DXS technology to
healthcare publishers.
The financial statements have been prepared in accordance with
applicable accounting standards including Financial Reporting Standard
102 Applicable in the UK and Republic of Ireland (FRS 102) and the
Companies Act 2006. The financial statements have been prepared on a
going concern basis under the historical cost convention. The financial
statements are prepared in sterling which is the functional currency of
the company.
The significant accounting policies applied in the preparation of these
financial statements are set out below. These policies have been
consistently applied to all years presented unless otherwise stated. The
company adopted FRS 102 in the current year and an explanation of how
transition to FRS 102 has affected the reported finance position and
performance is given in note 25
b) Intangible assets
Intangible assets acquired separately from a business are capitalised at
cost.
Research and development expenditure is written off against profits in
the year in which it is incurred. Identifiable development expenditure
is capitalised to the extent that the technical, commercial and
financial feasibility can be demonstrated.
Goodwill arising on business combinations is capitalised, classed as an
asset on the balance sheet and amortised over its useful life. The
period chosen for writing off goodwill is 20 years. The reason for
choosing this period is because the directors believe that this is the
period of time for the benefit to be received.
Intangible assets are amortised over a straight line basis over their
useful lives. The useful lives of intangible assets are as follows:
Intangible Useful life Reasons
type
Development 5 years from the date that the specific product is Period of
expenditure completed and available for distribution time for
benefit to
be received
Goodwill 20 years from acquisition of goodwill Period of
time for
benefit to
be received
c) Tangible fixed assets
Tangible fixed assets are stated at cost less accumulated depreciation.
Depreciation is provided on all tangible fixed assets at rates
calculated to write off the cost, less estimated residual value, of each
asset on a systematic basis over its expected useful life as follows:
Plant and equipment 3-4 years straight line
d) Debtors and creditors receivable/ payable within one year
Debtors and creditors with no stated interest rate and receivable or
payable within one year are recorded at transaction price. Any losses
arising from impairment are recognised in the profit and loss account in
other administration expenses
e) Loans and borrowings
Loans and borrowings are initially recognised at the transaction price
including transaction costs. Subsequently they are measured at amortised
cost using an effective interest rate method, less impairment. If an
arrangement constitutes a finance transaction it is measured at present
value.
f) Provisions
Provisions are recognised when the company has an obligation at the
balance sheet date as a result of a past event. It is probable that an
outflow of economic benefit will be required in settlement and the
amount can be reliably estimated.
g) Tax
Current tax represents the amount of tax payable or receivable in
respect of the taxable profit for the current or past reporting periods.
It is measured at the amount expected to be paid or recovered using the
tax rates and laws that have been enacted or substantively enacted by
the balance sheet date.
h) Turnover and other income
Turnover is measured at the fair value of the consideration received or
receivable net of VAT and trade discounts. The policy adopted for the
recognition of turnover is as follows:
i) Foreign currency
Foreign currency transactions are initially recognised by applying to
the foreign currency amount the exchange rate between the functional
currency and the foreign currency at the date of the transaction.
Monetary assets and liabilities denominated in a foreign currency at the
balance sheet date are translated using the closing rate.
The company's principal activities during the year were the development
and distribution of clinical decision support to General Practitioners,
Nurses and Retail Pharmacies in the United Kingdom and South Africa. The
commercial side includes the licensing of DXS products to various CCGs,
the sale of e-detailing opportunities to the pharmaceutical industry,
the UK Primary Care sector and the licencing of DXS technology to
healthcare publishers.
j) Employee benefits
When employees have rendered service to the company, short term employee
benefits to which the employees are entitled are recognised at the
undiscounted amount expected to be paid in exchange for that service.
The company operates a defined contribution plan for the benefit of its
employees. Contributions are expensed as they become payable.
FRS 102 requires that a provision for holiday pay is provided in the
annual accounts. This provision, not previously made, was included as
an adjustment in the 2015 accounts as provided in terms of the
transitional rules of FRS 102.
k) Leases
Rentals payable and receivable under operating leases are charged to the
profit and loss account on a straight line basis over the period of the
lease
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: DXS International plc via Globenewswire
http://www.dxs-systems.com/
(END) Dow Jones Newswires
October 03, 2016 01:30 ET (05:30 GMT)
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