Access Intelligence Regulatory News (ACC)

1 Aug 2006 07:02

Access Intelligence PLC01 August 2006 FOR RELEASE 7.00AM 1 August 2006 ACCESS INTELLIGENCE PLC (Software and computer services group providing critical and legislative driven services to both public and private sectors on a recurring revenue basis) UNAUDITED INTERIM RESULTS FOR SIX MONTHS ENDED 31 MAY 2006 GROUP NOW TRADING PROFITABLY Unaudited Unaudited Audited 6 months ended 6 months ended Year Ended 31 May 31 May 30 Nov 2006 2005 2005 £000s £000s £000s Turnover 1,764 391 1,943Operating profit (loss) beforegoodwill amortisation 190 (53) 100Profit (loss) before tax 54 (53) (10)Profit /(loss) before tax andgoodwill amortisation 200 8 175Adjusted Earnings per share 0.20p 0.01p 0.21pDividend Nil Nil Nil * Turnover up 352% on six months ended 31 May 2005, helped by contribution from acquisitions * Acquisitions performing well and continuing to contribute to profit growth * Two significant contracts won early in second half * High proportion of incremental sales converting into profit * Actively seeking further acquisitions * Net cash of £534,000 * Looking forward to the second half of the year with optimism For further information: Access Intelligence plc Jeremy Hamer (Chairman) 01904 520840Brendan Austin (Chief Executive) 01904 520840Colin Davies (Finance Director) 01904 520840 Corporate Synergy Plc Luke Ahern / Rhod Cruwys / David Seal 020 7448 4400 Cubitt Consulting Brian Coleman-Smith / Allison Reid / Leanne Denman 020 7367 5100 ACCESS INTELLIGENCE PLC ("Access Intelligence" or "the Company") (Software and computer services group providing critical and legislative driven services to both public and private sectors on a recurring revenue basis) UNAUDITED INTERIM RESULTS FOR SIX MONTHS ENDED 31 MAY 2006 Chairman's Statement We are pleased to announce our results for the six months to 31st May 2006. Thishas been an exciting period as we progressed the integration of our two summer2005 acquisitions and benefited from the integration of Backup and Runningwithin Willow Starcom. Our two marketing businesses are also making progress.There has been considerable investment also in product development particularlyin our compliance software business Due North. Results Turnover in the first half of the current year was £1.76m (2005: £391,000), anincrease of 352% on the comparable period in 2005 and we are pleased to report aprofit before tax and goodwill amortisation of £200,000 (2005: £8,000),substantially ahead of the previous year. The unadjusted profit before tax is£54,000 (2005: £53,000 loss) and loss per share of 0.02p (2005: 0.10p loss). TheGroup has cash and bank balances of £534,000 (2005: £2,420,000). The Directors are not recommending the payment of an ordinary dividend. Operations Our two acquisitions Willow Starcom and Due North have performed well. Annualised recurring revenues at Willow Starcom, our data storage and recoverycompany, have increased to £1,180,000 from £1,000,000, a rise of 18%. On a yearto date proforma basis, the like for like profit has risen to £101,000 from£81,000, an increase of 25%. Investment in the sales resource has beeneffective, as demonstrated by their largest third party order to date amountingto £128,000 of recurring annual revenue won at the beginning of the second half. Due North, our compliance based business software company, has increased itsannualised recurring revenue to £276,000 from £192,000, an increase of 44%.Local authorities who previously had ordered our electronic tendering systemsindividually are now grouping together to form larger buying portals. Once aportal has been built, the authorities buy the appropriate software to tenderthrough the portal. The North East Portal, NEPO, already use our software aswell as 23 North East local authorities. In July we won a contract to build the South East Centre of Excellence portalSECE. This is the largest portal in the local authority sector and gives us theopportunity to sell our e-source software suite to 70 local authorities in theSouth East of England. We have invested heavily in further developments of this software including aEuropean version. Currently a global organisation with Headquarters in Europe ispiloting this version in a live situation. Should this be successful we plan torecruit partners in Europe to sell and support the product. We believe ourproduct is strong enough to compete in Europe and we are encouraged by theinterest we have received from potential partners wishing to represent us. We have doubled our Police Authorities customer base from 15 to 29 in England.We have also gained 8 Regional Fire and Rescue authorities. We are beginning tosee success in the NHS and University sectors with a portal for South Yorkshirewithin NHS and orders from Brunel and Newcastle Universities. Our existing companies within marketing services and government informationcontinue to perform to expectation. Wired Gov is now reaching capacity foradvertising revenue on the existing news alert service and has recently launcheda bi-weekly on-line news supplement summarising government pronouncements with aview to creating further advertising revenues. The Marketing Guild continues torefine its product offering to match market needs. Strategy The Group is continuing its Buy and Build strategy. We intend to focus ouracquisition efforts in two distinct sectors going forward. First, Compliance,where increasing legislation is fuelling considerable growth in demand andsecondly, Data Backup & Recovery, where storage and retrieval of information hasbecome an increasing challenge for most corporates. Board Change Due to increased commitments with his main interests, Alwin Thompson,Non-executive Director, has decided to step down from the board with immediateeffect. The board would like to thank Alwin for his contribution over the pastyears. Employees As ever, the continued expansion of our client base would not be achievedwithout the effort of all our employees. I would like to thank them all fortheir hard work in the period. Outlook We have budgeted for our existing businesses to deliver further improvements intheir operating performances in the second half of the year while we continue tolook for further earnings enhancing acquisitions in both our Compliance and ourData Backup and Recovery divisions. We are looking forward to the second half ofthe year with optimism, having already won the two significant contractsmentioned above. Jeremy HamerChairman1 August 2006 ACCESS INTELLIGENCE PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT SIX MONTHS ENDED 31 MAY 2006 Unaudited Unaudited Audited 6 months 6 months Year ended ended Ended 31 May 31 May 30 Nov 2006 2005 2005 £000s £000s £000sTurnoverContinuing operations 1,764 391 1,943 ---------- --------- ---------Operating profit (loss) before goodwillamortisation 190 (53) 100Goodwill amortisation (146) (61) (185) ---------- --------- ---------Operating Profit (loss) 44 (114) (85)Interest receivable 10 61 75 --------- --------- ---------Profit (Loss) before taxation 54 (53) (10)Taxation (65) - (50) ---------- --------- ---------Loss for the period (11) (53) (60) ====== ====== ======Profit/(Loss) per share (0.02p) (0.10p) (0.10p)Fully diluted Profit/(Loss) per share (0.02p) (0.09p) (0.10p)Profit (Loss) per share excludinggoodwill amortisation 0.20p 0.01p 0.21p ACCESS INTELLIGENCE PLC CONSOLIDATED BALANCE SHEET AT 31 MAY 2006 Unaudited Unaudited Audited As at As at As at 31 May 31 May 30 Nov 2006 2005 2005 £000s £000s £000s Fixed assetsIntangible assets 5,697 2,604 5,731Tangible assets 191 102 122 ---------- ---------- --------- 5,888 2,706 5,853Current assetsStocks 269 14 278Debtors 1,125 217 1,122Cash at bank and in hand 534 2,420 603 ---------- ---------- --------- 1,928 2,651 2,003Creditors: amounts due within one year (1,356) (210) (2,245) ---------- ---------- ---------Net current assets (liabilities) 572 2,441 (242) ---------- ---------- ---------Total assets less current liabilities 6,460 5,147 5,611Creditors: amounts falling due aftermore than one year (150) (31) (150) ---------- ---------- ---------Net assets 6,310 5,116 5,461 ====== ====== ======Share Capital and ReservesCalled up share capital 576 482 508Share premium account 6,170 5,027 5,369Profit and loss account (436) (393) (416) ---------- ---------- ---------Equity and non-equity shareholders' funds 6,310 5,116 5,461 ========== ========== ========= ACCESS INTELLIGENCE PLC CONSOLIDATED CASH FLOW STATEMENT SIX MONTHS ENDED 31 MAY 2006 Unaudited Unaudited Audited 6 months 6 months Year ended ended Ended 31 May 31 May 30 Nov 2006 2005 2005 £000s £000s £000s Net cash inflow/(outflow) from operatingactivities 104 (177) (172) Returns on investments and servicing offinance Interest paid - - (4)Interest received 10 61 79Dividends (8) - (16)Net cash inflow / (outflow) fromservicing of finance 2 61 59 Capital expenditure Payments to acquire intangible assets (89) (22) (92)Payments to acquire tangible assets (86) (27) (57) Net cash outflow from capital expenditure (175) (49) (149) Acquisition and disposals Purchase of subsidiary undertaking - - (1,971)Net Cash Acquired 276Net cash outflow from acquisitions and disposals - - (1,695) ---------- --------- ---------Net cash outflow before use of liquidresources and financing (69) (165) (1,957) Financing Issue of equity share capital - 3,000 3,000Cost of share issue - (192) (192)Repayment of term loans - (213) (213) ---------- --------- ---------Net cash inflow /(outflow) from - 2,595 2,595financing ---------- --------- ---------Increase / (decrease) in cash (69) 2,430 638 ========== ========= ========= ACCESS INTELLIGENCE PLCINTERIM ACCOUNTSFOR THE PERIOD 1 DECEMBER 2005 TO 31 MAY 2006 1. The unaudited results for the six months have been prepared on a basisconsistent with the accounting policies disclosed in the Group's 2005 accountsand do not constitute statutory accounts within the meaning of Section 240 ofthe Companies Act. 2. The figures for the period ended 30 November 2005 have been extracted fromthe statutory accounts, which have been delivered to the Registrar of Companiesand received an unqualified audit report. 3. The calculation of earnings per share is based on the profit (loss) aftertaxation divided by the weighted average number of ordinary shares in issue,being 68,122,355 (6 months to 31 May 2005 - 55,780,851 and period ended 30November 2005 - 59,152,498). 4. The weighted average number of ordinary shares used in the calculation ofdiluted earnings per share is 71,472,355 (31 May 2005 - 55,996,318 and periodended 30 November 2005 - 62,502,498). This has been adjusted for the effect ofpotentially dilutive share options granted under the Company's Share Option andManagement Incentive Schemes. 5. An adjusted earnings per share calculation, which excludes goodwillamortisation, is calculated on the basic eps basis to allow shareholders aclearer understanding of the trading performance of the Company. 6. The tax charge is based on the estimated tax rate for the year to 30 November2006. 7. Reconciliation of Opening Shareholders' Funds Unaudited Unaudited Audited 6 months 6 months Year ended ended Ended 31 May 31 May 30 Nov 2006 2005 2005 £000s £000s £000s Opening shareholders' funds 5,461 2,179 2,179 Loss for the period (11) (53) (60)Dividends paid (8) - (16)Shares issued 868 2,990 3,358 ------- ------- ------- Closing shareholders funds 6,310 5,116 5,461 ======= ======= ======= 8. This statement is being sent to the shareholders of the Company and will beavailable at the Company's Registered Office at Regency House, Westminster Place,York Business Park, York, YO24 6RW. Background Note: Access Intelligence has three operating divisions: * Data backup and recovery * Willow Starcom (Ridgeway Technologies), based in Chorley, provides specialist IT services across a broad range of market sectors that include data storage, backup and recovery, network design support and consultancy and hardware and software maintenance support services. It has growing # recurring revenues from these activities of over £1.25 million per annum. * Backup and Running, now based within Willow Starcom, provides an online data storage and disaster recovery service, which the client can customise to their own requirements. The service offers significant advantages over other alternative systems in that it backs up automatically and can provide a complete backup history for at least three years. * Compliance software * Due North, based in Newcastle-Upon-Tyne, is a developer and provider of e- commerce solutions, primarily to the public sector and emergency services. The range of products includes an e-tendering module combined with an e-auction module. It's software is used widely in the local authority sector. It is the principle supplier to Police Authorities through the Blue Light Portal and also the Regional Fire and Rescue Authorities * Marketing services and information * The Marketing Guild, based in York, which provides marketing advice and support to small and medium sized businesses. This is in the form of newsletters, consultancy, lead generation and member's services. * Wired Gov, based in Stockport, provides an online information service delivering press releases from over 100 government and public sector bodies. Subscribers can customise the service specifying the agency or topic they require. This information is provided by RNS The company news service from the London Stock Exchange