Acg Metals Regulatory News (ACG)

28 Mar 2006 07:02

Accuma Group PLC28 March 2006 Press Release 28 March 2006 Accuma Group Plc ("Accuma" or "the Group") Interim Results Accuma Group Plc, a leading provider of consumer financial solutions, todayannounces its Interim Results for the six months ended 31 January 2006. Highlights• Turnover for the period increased 310% to £4.1m (H1 2005: £1.0m)• Pre-tax profit of £304k - results higher than management expectations• Gross profit has increased 236% to £1.4m (H1 2005: £0.4m)• Future contracted revenue now stands at £12.1m at the end of February 2006• Successful placing in February 2006 raising £4.7m net for the Group• Strong balance sheet with £5.8m cash and net assets of £11.5m• Cases completed in the period increased 345% to 1,170 (H1 2005: 263)• Monthly run rate of 239 cases at February 2006• Resource strengthened - staff numbers increased to 141• Four additional Insolvency Practitioners appointed - total now eight• Appointment of Operations Director within main operating subsidiary• Acquisition of Wilson Phillips in August 2005• Relocation of Head Office completed to accommodate future growth• Established mortgage department in January 2006 Commenting on the results, Charles Howson, Chief Executive of Accuma Group said: "I am delighted to announce our Interim Results which are ahead of managementexpectations and demonstrate the Group's continued strong performance. With thestrengthening of our systems and operational resource, particularly InsolvencyPractitioners, we are well placed to take advantage of a market that continuesto experience significant growth." For further information:Accuma Group PlcCharles Howson, Chief Executive Tel: +44 (0) 161 751 6787charles.howson@accumagroup.com www.accumagroup.com Daniel Stewart & Company PlcTom Jenkins/Marc Young Tel: +44 (0) 20 7776 6550tom.jenkins@danielstewart.co.uk Media enquiries:AbchurchChris Lane / Sarah Hollins Tel: +44 (0) 20 7398 7700chris.lane@abchurch-group.com www.abchurch-group.com Chief Executive's Statement Financial Overview I am pleased to report this strong set of Interim Results for Accuma. The Grouphas made significant progress and for the six months ended 31 January 2006turnover has increased 310% to £4.1 million (H1 2005: £1.0 million). Grossprofit has increased by 236% to £1.4 million (H1 2005: £0.4 million) with profitbefore tax of £304,000, which was higher than management expectations. TheGroup's balance sheet remains strong with £5.8 million cash and net assets of£11.5 million. The Group's average monthly run rate has continued to grow to 239 in February2006, an increase of 28% from the last reported average monthly run rate of 186in December 2005. Accuma's run rate has increased significantly as shown below: New IVAs Monthly Case Run Rate: 2004 2005/20063 months to March 20 373 months to June 31 843 months to September 50 1263 months to December 47 186As of February 2006 239 Future contracted revenue has increased from £5.4 million at the end of July2005 to £12.1 million at the end of February 2006. With an average 80% grossmargin on supervisory fees, this will have a significant positive impact onearnings growth. The Group acquired Wilson Phillips in August 2005, for a total consideration of£3.3 million. The acquisition was financed by a placing of 1,935,500 new sharesat a price of 155p, and the issue of 161,290 shares to one of the vendors.Deferred consideration of £667,000 is payable of which £167,000 has been paid incash, with the balance to be settled by the issue of 322,742 shares. The acquisition of Wilson Phillips has enabled the Group to widen both itseconomic reach and provide opportunities to develop referral relationships. Theintegration has progressed well with the activities of Wilson Phillips beingcomplimentary to those of Accuma with considerable synergies between thecompanies. In January 2006 the Group raised £4.7 million net from a placing of 2,500,000ordinary shares at 200 pence per share in a significantly oversubscribed offer.These funds will be used to continue to grow the business organically but inparticular to increase the focus on developing third party referralrelationships and ensuring we capitalise on all areas of our marketingexpenditure, broadening our offering where necessary. Operational Review The Group now employs eight licensed Insolvency Practitioners (IPs), four havingbeen appointed in the period. The monthly capacity for IVA cases will increaseto over 500 from 350 with the appointment of further IVA drafting team members. Two further IT development staff were appointed in the period to ensure that wecontinue to strengthen our systems and processes. This will ensure futurerobustness as case volumes continue to increase whilst driving furtherefficiencies within the business. Andrew Bland was appointed Operations Director of our main operating subsidiaryin February 2006. He is both a chartered accountant and a qualified insolvencypractitioner, although he has spent the past few years in a commercial role withoperational responsibility for a privately owned group of companies. Andrew willfocus on improving operational efficiencies whilst continuing to grow the caserun rate. The Group now employs 141 staff compared to 41 at the time of flotation. Therelocation of our head office to Manchester city centre from previous servicedoffice premises was completed in December 2005. This, together with the imminentrelocation of Wilson Phillips, will allow the Group to increase staff numbers toover 300 without incurring a material increase in premises costs. The major positive impact of this will be reflected in the next financial yearwhen staff numbers are expected to have increased significantly in line withexpected increases in case volumes. The Group now has referral relationships in place with nine organisations, fourof which have been signed within the past three months. In line with our statedstrategy, whilst individually these organisations will not provide significantvolume, combined, our referral relationships will provide a growing percentageof our new case run rate therefore reducing our reliance on high costadvertising campaigns thus reducing client acquisition costs. We expect toannounce further new referral relationships over the next few months. In January 2006 we established a mortgage department in order to maximise on theenquiries we receive where best advice dictates a lending solution. Currently wehave five staff in this department and whilst this has increased our overhead inthe short term, the department is making excellent progress and will make apositive impact, net of costs, against the referral fees we have historicallyachieved in this area. Outlook The Group operates in a market that doubled in size during 2005 and is widelypredicted to grow at a similar rate in 2006. We have consistently outpaced themarket growing three-fold in 2005 and in fact recent growth has seen a four-foldincrease. Our market share has increased significantly since flotation and weestimate that this now stands at 12%. We are confident however that with our head office relocation complete, theincrease to eight IPs and further strengthening of our senior management andoperational resource, the Group will continue to see further gains in marketshare. Charles Howson Chief Executive Accuma Group Plc Consolidated Profit and Loss Account For the period 1 August 2005 to 31 January 2006 Period 1 August 2005 Year ended to 31 January 2006 31 July 2005 Unaudited Audited £'000 £'000 Turnover 4,110 2,846Cost of sales 2,678 2,204 ----- -------Gross profit 1,432 642Administrative expenses 1,020 1,081 ----- -------EBITDA 412 (439)Depreciation (57) (34)Goodwill amortisation (70) (10) ----- -------Operating profit/(loss) 285 (483) Interest receivable 35 40Interest payable and similar charges (16) (30) ----- -------Profit/(loss)on ordinaryactivities 304 (473) Tax on profit/(loss)on ordinary activities (65) 83 ----- -------Profit/(loss) for thefinancial period 239 (390) ----- -------Profit/(loss)per share - basic 1.08p (2.28p) Profit/(loss) per share -diluted 1.04p n/a Profit/(loss)per share -diluted and adjusted 1.30p n/a The group has no recognised gains or losses other than the results for theperiod as set out above. All of the activities of the group are classed as continuing. Accuma Group Plc Consolidated Balance Sheet As at 31 January 2006 As at As at 31 January 2006 31 July 2005 Unaudited Audited £'000 £'000Fixed assetsIntangible assets 3,155 114Tangible assets 589 111 ------- ------- 3,744 225Current assetsDebtors 4,280 2,112Cash at bank 1,345 2,041 ------- ------- 5,625 4,153 Creditors:amounts falling duewithin one year (2,297) (816) ------- ------- Net current assets 3,328 3,337 ------- ------- Total assets less current liabilities 7,072 3,562 Creditors:amounts falling dueafter more than one year (322) (178) ------- ------- Net assets 6,750 3,384 ------- -------Capital and reservesCalled up equity share capital 2,252 2,042Share premium account 6,130 3, 213Other reserve (1,262) (1,262)Profit and loss account (370) (609) ------- -------Shareholders'funds 6,750 3,384 ------- ------- Accuma Group Plc Consolidated Cash Flow Statement For the period 1 August 2005 to 31 January 2006 Period 1 August Period ended 2005 31 July 2005 to 31 January Audited 2006 Unaudited £'000 £'000 Net cash outflow fromoperating activities (970) (1,529) Returns on investments and servicing of FinanceInterest received 35 40Interest paid (15) (27)Interest element of finance lease rental payments ( 1) ( 3) ------- ------- Net cash inflow from returns on investments 19 10 and servicing of finance ------- ------- Capital expenditure Payments to acquiretangible fixed assets (169) (110) ------- ------- Net cash outflow fromcapital expenditure (169) (110) ------- ------- AcquisitionsAcquisition of Debt Solver Limited - (24)Acquisition of Wilson Phillips Limited (2,495) - Net cash outflow from acquisitions (2,495) (24) --------- ------ Net cash outflow before financing (3,615) (1,653) --------- --------- FinancingProceeds from issue of ordinary shares 3,000 4,140Share issue costs (124) (495)Capital element of finance lease rentals (7) (9)Repayments of loans (19) (6) Net cash inflow from financing 2,850 3,630 ------- ------- (Decrease)/increase in cash (765) 1,977 ------- ------- Reconciliation of operating profit/(loss) to net cash outflow from operating activities Operating profit/(loss) 285 (483)Amortisation of intangible assets 70 10Depreciation of tangible assets 57 34(Increase) in debtors (1,681) (1,392)Increase in creditors 299 302 ----- ----- Net cash outflow from operating activities ( 970) (1,529) ------ --------- Reconciliation of net cash flow to movement in net debt(Decrease)increase in cash in period (765) 1,977 Cash outflow/(inflow) from decrease/(increase) in debt and Lease financing (92) 7 Acquired with subsidiary (29) - ------ ---Change in net funds (886) 1,984 ------- ------- Net funds/(debt) at 1 August 2005 1,780 (204) ======= ======= Net funds at 31 January 2006 894 1,780 ======= ======= Accuma Group Plc Consolidated Accounts for the period 1 August 2005 to 31 January 2006 NOTES 1. Earnings per share The earnings per share (basic) has been calculated using the profit for thefinancial period and a weighted average number of ordinary shares in issueduring the six month period to 31 January 2006 of 22,144,813 (17,160,935 for theperiod ended 31 July 2005). The diluted EPS number takes the weighted average number of ordinary shares inissue during the six month period to 31 January 2006 as adjusted to take accountof the dilutive share options existing at 31 January 2006, resulting in adenominator of 23,047,210. The share options in issue at 31 July 2005 woulddecrease the loss per share and were therefore anti dilutive. The diluted and adjusted EPS number uses the same number of shares as above, butthe goodwill amortisation figure has been added back to profit. 2. Comparative figures Where comparative figures for H1 2005 are included, these have been extractedfrom the management accounts for the six months to 31 January 2005. Detailedcomparative figures within the profit and loss account, balance sheet andcashflow statement for the period are not available. 3. Status of financial information The interim results of the Group for the six months to 31 January 2006 wereapproved by the Board on 27 March 2006. The interim financial statements have not been audited and do not constitutestatutory accounts as defined under s240 of the Companies Act 1985. The interim financial statements have been prepared in accordance withapplicable accounting standards and are consistent with those adopted anddisclosed in the Group's statutory accounts for the period ended 31 July 2005.Those accounts, upon which the auditors issued an unqualified opinion, have beendelivered to the Registrar of Companies. 4. Distribution of the Interim Report Copies of the Interim Report are being sent to shareholders. Further copies onthe Interim Report and Accounts may be obtained from the Company's RegisteredOffice, City Tower, Piccadilly Plaza, Manchester, M1 4BT. In addition, anelectronic version will be available on the Company's website, www.accumair.com. This information is provided by RNS The company news service from the London Stock Exchange