Arcontech Group Regulatory News (ARC)

27 Mar 2006 07:00

Knowledge Technology Solutions PLC27 March 2006 RNS Release Embargoed until 7am on Monday 27 March 2006 Interim results for the six months ended 31 December 2005 Knowledge Technology Solutions PLC (KTS), the independent provider of real-timemarket data services, reports its unaudited results for the six months ended 31December 2005. Financial and business highlights: • Turnover increased by 26% to £720,278 (2004: £572,283) • Continued investment in R&D and enhanced exchange coverage resulted in a loss before tax of £547,447 (2004: £419,898) • Cash position of £1.3 million as at 31 December 2005 (2004: £2.3 million) • All live market data services successfully integrated under the MarketTerminal brand • Progress made on a number of revenue-enhancing initiatives to capture new market opportunities Dr. Marc Pinter-Krainer, Chief Executive of KTS, said: "This continues to be a challenging market in which to provide live market dataapplications. KTS is responding positively to this challenge and we are pleasedthat our initiatives to create additional income streams, currently at earlystages, are progressing well." Enquiries, please contact: Dr Marc Pinter-Krainer Knowledge Technology Solutions PLC 020 7256 2300Oliver Scott KBC Peel Hunt Ltd 020 7418 8900Neil Boom Gresham PR Ltd 020 7404 9000David Pettet Chief Executive's statement In the six months ended 31 December 2005, KTS has made encouraging progress inseeking additional revenue streams from new initiatives. As shareholders were previously informed, intense competition among vendors ofUK market data display applications has exerted pressure on profit margins andturnover growth. Last year, the Board therefore decided to enhance growth byseeking potential additional income streams which exploited KTS's coretechnologies. Against a background of strong competition first half sales of MarketTerminal,our live international market data display service, rose by 26% to £720,278(2004: £572,283) and our subscriber base remained steady at 130 clientorganisations. We have also maintained our commitment to develop our technology, customerservice and the quality and depth of data available on MarketTerminal. Furtherinvestment in these areas led to higher pre-tax losses of £547,447 (2004:£419,898). Our cash position as at 31 December 2005 was £1.3 million (2004: £2.3million). In January, we successfully unified our live market data products into a single,customisable solution - MarketTerminal. We are pleased that clients haveresponded positively to this initiative and we have successfully migrated oursubscriber base to the new MarketTerminal service. We believe that ourMarketTerminal subscription service, that includes access to live share prices,analytics and news from major markets around the world, and exchange rates formore than 170 currencies, remains a highly attractive product. As previously reported, our strategy is to complement the provision and furtherdevelopment of our MarketTerminal subscription service with new growthinitiatives. These include indirect sales of MarketTerminal throughinternational resellers, the introduction of a fully integrated mobile marketdata service for handheld devices and the seamless integration of ourMarketTerminal display application with clients' existing market datainfrastructures. In line with the current industry trend towards increased mobility we areplanning the launch of an end-to-end mobile handheld market data service withinthe current financial year. With regard to client data integration solutions, we have identified anopportunity to license our proven MarketTerminal display application to clientsfor integration with their existing market data infrastructure. This isparticularly relevant to larger financial institutions who will benefit from thehigh level of customisation, ease of deployment and low cost of ownership whicha tailored implementation of the MarketTerminal display application provides.The integrated MarketTerminal solution is particularly well suited for clientsto display their own internal quote data, without depending on third party quotevendors. There has been considerable interest from a number of banks, one of which iscurrently carrying out a proof of concept evaluation. Outlook "This continues to be a challenging market in which to provide live market dataapplications. KTS is responding positively to this challenge and we are pleasedthat our initiatives to create additional income streams, currently at earlystages, are progressing well." Dr. Marc Pinter-KrainerChief Executive27 March 2006 KNOWLEDGE TECHNOLOGY SOLUTIONS PLC CONSOLIDATED PROFIT & LOSS ACCOUNT FOR THE SIX MONTHS ENDED 31 DECEMBER 2005 Period ended Period ended Year ended 31 December 31 December 30 June 2005 2004 2005 (unaudited) (unaudited) (audited) Notes £ £ £ Turnover 3 720,278 572,283 1,250,474Distribution costs (718,626) (529,795) (1,192,594)Administrative costs (583,210) (519,787) (1,119,527) --------- ----------- -----------Operating loss (581,558) (477,299) (1,061,647)Interest receivable 34,111 57,401 95,111 --------- ----------- ----------- Loss on ordinary activitiesbefore taxation (547,447) (419,898) (966,536)Taxation on loss onordinary activities 4 - - - --------- ----------- -----------Loss on ordinary activitiesafter taxation (547,447) (419,898) (966,536)Dividends 5 - - - --------- ----------- -----------Retained loss (547,447) (419,898) (966,536) ========= =========== =========== Basic earnings perordinary share 6 (0.37)p (0.28)p (0.65)p ========= =========== ===========Diluted earnings perordinary share 6 (0.37)p (0.28)p (0.65)p ========= =========== =========== All of the results relate to continuing operations. There are no recognised gains and losses other than the loss for the period. KNOWLEDGE TECHNOLOGY SOLUTIONS PLC CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2005 As at As at As at 31 December 31 December 30 June 2005 2004 2005 (unaudited) (unaudited) (audited) Notes £ £ £ Fixed assetsTangible fixed assets 154,519 194,952 180,027 ----------- ----------- --------- Current assetsDebtors 173,633 162,419 162,926Cash at bank and in hand 1,353,363 2,270,839 1,716,053 ----------- ----------- --------- 1,526,996 2,433,258 1,878,9789 Creditors: amounts fallingdue within one year (426,055) (278,665) (256,099) ----------- ----------- --------- Net current assets 1,100,941 2,154,593 1,622,880 ----------- ----------- --------- Total assets less currentliabilities 1,255,460 2,349,545 1,802,907 =========== =========== ========= Capital and reservesCalled up share capital 148,275 148,275 148,275Share premium account 4,777,574 4,777,574 4,777,574Profit and loss account (3,670,389) (2,576,304) (3,122,942) ----------- ----------- --------- Equity shareholders' funds 9 1,255,460 2,349,545 1,802,907 =========== =========== ========= KNOWLEDGE TECHNOLOGY SOLUTIONS PLC CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2005 Period ended Period ended Year ended 31 December 31 December 30 June 2005 2004 2005 (unaudited) (unaudited) (audited) Notes £ £ £ Net cash outflow fromoperating activities 7 (396,136) (449,842) (1,027,646) --------- ----------- ----------- Returns on investment andservicing of financeInterest received 34,111 57,401 95,111 --------- ----------- ----------- Net cash inflow from returnson investments and servicing offinance 34,111 57,401 95,111 --------- ----------- ----------- Taxation Corporation tax refund - - - --------- ----------- ----------- Net cash inflow from - - -taxation --------- ----------- ----------- Capital expenditurePurchase of tangible fixedassets (665) (50,953) (65,645) --------- ----------- ----------- Net cash outflow fromcapital expenditure and financialinvestment (665) (50,953) (65,645) --------- ----------- ----------- Net cash outflow beforefinancing (362,690) (443,394) (998,180) --------- ----------- ----------- FinancingIssue of share capital - 11,700 11,700Expenses paid in connectionwith share issues - - - --------- ----------- -----------Net cash inflow fromfinancing - 11,700 11,700 --------- ----------- ----------- Decrease in cash 8 (362,690) (431,694) (986,480) --------- ----------- ----------- All cash flows relate to continuing operations. KNOWLEDGE TECHNOLOGY SOLUTIONS PLC NOTES TO THE INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 20051 Basis of preparationThe interim financial information in respect of the six months ended 31 December2005 is unaudited and has been prepared on the basis of the accounting policiesset out in the company's audited accounts for the year ended 30 June 2005.The financial information contained in this statement does not constitutestatutory accounts. Statutory accounts for the year ended 30 June 2005 receivedan unqualified audit report and have been filed with the Registrar of Companies. 2 Continuing activitiesAll of the activities are continuing. 3 TurnoverAll of the turnover arises in the United Kingdom. 4 TaxationAs a result of losses available no liability to corporation tax is expected toarise. 5 DividendsThe Directors do not recommend the payment of an interim dividend. 6 Earnings per ordinary shareThe basic earnings per ordinary share has been calculated by dividing the losson ordinary activities after tax attributable to shareholders by the weightedaverage number of ordinary shares in issue during the period which carry theright to receive a dividend.The diluted earnings per ordinary share has been calculated as above on thebasis of full exercise of options and warrants. 7 Reconciliation of operating loss to net cash outflow from operating activities Period ended Period ended Year ended 31 December 31 December 30 June 2005 2004 2005 £ £ £ Operating loss (581,558) (477,299) (1,061,647)Depreciation of fixed assets 26,173 29,066 58,682Loss on disposal of fixed assets - 2,612 2,613Increase in debtors (10,707) (48,833) (49,340)Increase in creditors 169,956 44,612 22,046 --------- ----------- -----------Net cash outflow from operatingactivities (396,136) (449,842) (1,027,646) --------- ----------- ----------- 8 Reconciliation of net cash flow to movement of liquid funds Period ended Period ended Year ended 31 December 31 December 30 June 2005 2004 2005 £ £ £ Net funds at start of period 1,716,053 2,702,533 2,702,533Decrease in cash for the period (362,690) (431,694) (986,480) --------- ----------- -----------Net funds at end of period 1,353,363 2,270,839 1,716,053 --------- ----------- -----------Net funds at the end of the period relate to cash at bank and in hand. 9 Reconciliation of movement in shareholders' funds Period ended Period ended Year ended 31 December 31 December 30 June 2005 2004 2005 £ £ £ Loss for the period (547,447) (419,898) (966,536)New share capital issued less costs - 11,700 11,700 --------- ----------- -----------Net reduction during the period (547,447) (408,198) (954,836)Opening shareholders' funds 1,802,907 2,757,743 2,757,743 --------- ----------- -----------Closing shareholders' funds 1,255,460 2,349,545 1,802,907 --------- ----------- ----------- This information is provided by RNS The company news service from the London Stock Exchange