ARGP.L Regulatory News (ARGP)

2 Jun 2005 07:00

Intellego Holdings PLC02 June 2005 Intellego Holdings plcFinal results for the year to 31 March 2005 Financial Highlights • Sales up by over 86% to £517,812 (fourteen months to 2 April2004, ("2004") £278,151) • Gross margin increase to 66% (2004, 57%) • Loss before tax £176,284 (2004, (£66,828)) reflective of investments made and in line with budget. • Sales revenue from technical services activities increased to 36% of total revenue (2004, 22%). • Cash balance of £200,477 as at 31 March 2005 (2004, £19,030). Business Highlights • Significant new customer wins in period include; Securicor, DHL, Xerox, Prudential Property Investment Managers, AMEC Group, TUI and The Open University. • Strong sales growth driving increased market share. • Sales force incremented and strengthened by hiring proven e-Learning sales professionals. • Considering acquisition to enhance services capability, announcement expected in the near term. • New products to be added focussed on the SAP market. Mike Couzens, Chairman of Intellego Holdings plc, said: "We are continuing to sustain strong sales growth as a consequence of, newcustomer wins and repeat sales from existing customers. In the period since ouradmission to AIM on 17 December 2004 management has been focussed on expandingthe sales capability and technical services capacity of the business whilstconcurrently exploring strategically important new opportunities. This hasculminated in sales growth of 86% when compared with the previous financialperiod. We are now looking to an early acquisition and the expansion of ourproduct portfolio, with new products to address the SAP training market. Theoutlook for the coming year is very encouraging with a healthy pipeline offuture sales opportunities." Chairman's Statement The year was one of achievement for your Company, with organic growth of thecore business in both sales and gross profit. The admission of Intellego'sshares to AIM in December 2004 enables the business to continue its expansionand to take opportunities to grow by strategic acquisition. The e-Learning market in the UK is predicted by market analysts IDC to grow byaround 28% to over £140m in 2005 and according to the ELearning Network - theProfessional Association for Users and Developers of e-Learning, the influenceof e-Learning continues to spread throughout the UK economy with an increasingnumber of people and functions becoming involved in the purchase, developmentand use of distributed learning solutions. Against this market backcloth, in theyear to 31 March 2005, Intellego has made significant developments in growingits service based e-Learning solutions business.I am pleased to report that sales in the year rose by over 86% to £517,812(2004, £278,151). This increase in turnover was achieved with a series ofimportant new customer wins and by the expansion of our relationships withexisting customers. Gross margin strengthened to 66% (2004, 57%) we continue toincrease the percentage of overall revenue achieved from the delivery oftechnical services, which in the period was 36% (2004, 22%). The business incurred pre-tax losses in the period of £176,284 (2004 (£66,828))which is in line with our budget. We have made key investments in sales,marketing and our technical services capability. Intellego is now positioned togrow revenues and take an increasing share of the e-Learning market. As far aswe can determine, during the past year your company has gown comparatively at amuch faster pace than the UK e-Learning market per-se, thereby increasing itsshare of a growing market. Intellego's business to date has been based on exclusive distribution agreementsfor market leading software products. We have to date, secured over 80 customersthe majority of which are large corporate or governmental organisations,including companies in; transport and distribution, telecommunications, localgovernment, higher education, financial services and the travel and leisuresectors. New customers secured in the year include; Securicor, DHL, Xerox,Prudential Property Investment Managers, Wesleyan Assurance, AMEC Group,TMobile, TUI, The Open University and Reuters. No one customer represents morethan 8% of the Company's sales. I would like to record my thanks to my fellow directors, the highly dedicatedworkforce at Intellego and our professional advisers for their collective andindividual contributions during the past year. Outlook Intellego has a healthy sales pipeline, new supplier relationships and newproducts from existing suppliers all of which firmly positions the Company to beable to increase penetration of the e-Learning market place over the next 12months. We are also looking to a near-term acquisition that will enable Intellego toincrease its technical services capability into higher value projects. I ampleased to note that several opportunities have been identified and are beingevaluated, including the provision of SAP training to major corporations. Theprime criteria when considering any acquisition are; enhancement of the existingbusiness and creating value for Intellego shareholders. The Annual General Meeting will be held on 29 June 2005 at 10.30 a.m. at The Lensbury Club, Broom Road, Teddington, Middlesex. Michael Couzens BSc MSc - Chairman Enquiries, please contact: Edward Arnett Noelle Greenaway/ Leesa Peters/Laurence Reed Roland CornishIntellego Holdings plc Beaumont Cornish Limited Conduit PR Ltd.0870 428 1250 0207 628 3396 020 7618 8760 CONSOLIDATED PROFIT AND LOSS ACCOUNTFOR THE PERIOD ENDED 31 MARCH 2005 Pro-forma Period ended Period ended 31 March 2 April 2005 2004 £ £ TURNOVER 517,812 278,151 Cost of sales (176,345) (118,960) _______________ _______________ GROSS PROFIT 341,467 159,191 Administrative expenses (506,996) (219,934) _______________ _______________ OPERATING LOSS (165,529) (60,743) Interest receivable 834 149 Interest payable (11,589) (6,234) _______________ _______________LOSS ON ORDINARY (176,284) (66,828)ACTIVITIES BEFORE TAXATION Taxation - - ______________ _______________LOSS ON ORDINARY ACTIVITIES AFTERTAXATION (176,284) (66,828) LOSS PER SHARE - basic (0.84)p (7.93)p All operations are continuing CONSOLIDATED BALANCE SHEETSAS AT 31 MARCH 2005 Group Group Pro-Forma Company 2005 2004 2005 £ £ £Fixed AssetsIntangible assets 22,125 28,025 -Tangible assets 64,946 26,457 -Investments - - 100,000 _____________ _____________ _____________ 87,071 54,482 100,000 _____________ _____________ _____________Current AssetsStock 3,996 3,500 -Debtors: Amounts falling duewithin one year 425,700 194,117 -Debtors: Amounts falling dueafter more than oneyear - - 322,018Cash at bank and in hand 200,477 19,030 171,728 _____________ _____________ _____________ 630,173 216,647 493,746 Creditors: amounts falling duewithin one (331,731) (192,813) -year _____________ _____________ _____________Net Current Assets 298,442 23,834 493,746 _____________ _____________ _____________Total Assets Less CurrentLiabilities 385,513 78,316 593,746 Creditors: amounts falling dueafter more than (34,879) (45,144) -one year _____________ _____________ _____________ 350,634 33,172 593,746 _____________ _____________ _____________ Capital and ReservesCalled up share capital 185,000 100,000 185,000Share premium 408,746 - 408,746Profit and loss account (243,112) (66,828) - _____________ _____________ _____________Shareholders' funds - equityinterests 350,634 33,172 593,746 _____________ _____________ _____________ CONSOLIDATED CASH FLOW STATEMENTFOR THE PERIOD ENDED 31 MARCH 2005 2005 Pro Forma 2004 £ £ Net cash outflow from operating activities (247,743) (105,425) Returns on investments and servicing of finance (10,755) (6,085) Capital expenditure and financial investment (45,698) (62,155) ____________ ____________ Net cash outflow before management of liquidresources and financing (304,196) (173,665) Financing 498,818 134,298 ____________ ____________Increase/(decrease) in cash in the period 194,622 (39,367) Notes to the financial statements for the period ended 31 March 2005 Note 1 This preliminary announcement of the results for the period ended 31 March 2005is an excerpt from the forthcoming Annual Report and Accounts for the periodended 31 March 2005 and does not constitute statutory accounts for either theperiod ended 31 March 2005 or the fourteen month period ended 2 April 2004 forthe purposes of section 240(3) of the Companies Act 1985. The figures for theperiod ended 31 March 2005 are extracted from the unaudited accounts for thatperiod which have been prepared using the principles of merger accounting,although those accounts have not yet been filed with Companies House. Thecomparative figures are derived from the latest published statutory accounts forIntellego Systems Limited that have been delivered to the Registrar ofCompanies. The auditors' report in respect of the comparative year wasunqualified and does not contain a statement under Section 237 of the CompaniesAct 1985. The unaudited accounts for the period ended 31 March 2005 have beenprepared using consistent accounting policies to those applied in the statutoryaccounts of Intellego Systems Limited for the fourteen month period ended 2April 2004. The duly authorised Board Committee has approved this preliminaryannouncement. Note 2 Reconciliation of operating loss to net cash outflow from operatingactivities 2005 Pro Forma 2004 £ £ Operating loss (165,529) (60,743)Depreciation of tangible assets 7,209 6,198Amortisation of intangible assets 5,900 1,475Increase in stocks (496) (3,500)Increase in debtors (246,586) (179,114)Increase in creditors 151,759 130,259 ____________ ____________Net cash outflow from operating activities (247,743) (105,425) ____________ ____________ Note 3 Reconciliation of net cash flow to movement in net funds/(debt) 2005 Pro Forma 2004 £ £ Increase/(decrease) in cash in the period 194,622 (39,367)Cash outflow/(inflow) from decrease/(increase)in debt 9,929 (53,718) ___________ _____________Change in net debt resulting from cash flows 204,551 (93,085) Movement in net debt in the periodOpening net debt (93,087) (2) ___________ _____________Closing net funds/(debt) 111,464 (93,087) ___________ _____________ Note 4 Copies of the Report and Accounts for the period ended 31 March 2005 will besent to shareholders in due course and will be available from Intellego's Offices. 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