Crossword Cybersecurity Regulatory News (CCS)

23 Nov 2006 07:01

Clarity Commerce Solutions PLC23 November 2006 23 November 2006 Clarity Commerce Solutions plc Clarity Commerce Solutions plc, a leading supplier of management softwaresolutions for the entertainment, ticketing, hospitality, retail and leisuresectors, announces its interim results for the six months ended 30 September2006. • Turnover increased by 14% to £9.6m (2005: £8.4m). • Recurring revenue increased by 12% to £3.94m (2005: £3.51m) • Gross margins increased to 69% from 65% in H12005 and from 61% in FY06 • Operating profit increased by 4% to £409,000 (2005: £395,000) • Basic earnings per share at 1.22p (2005: 1.48p) • Research and Development, for product development and integration, at £1.4m (2005: £680,000) • Integration of the MATRA business and products continues to progress well • Confident on prospects for the second half and meeting full year expectations (The above figures include 5 months from MATRA Systems, acquired in April 2006) Graham York, Clarity Commerce Solutions, Chief Executive, said: "We are pleased with the performance of the Group over the last six months. Theprogress made in working with clients and new prospects sets us up for apositive second half performance. The Group is also very pleased with the MATRA acquisition. The two companies areworking very well together and cross selling opportunities are already startingto appear." Enquiries: Clarity Commerce Solutions Graham York, Chief Executive Officer 0870 44 44 234 College Hill Carl Franklin / Ben Way 020 7457 2020 Financial Review The Clarity Board is pleased to report that the Group's operating profits forthe half year ended 30 September 2006 were £409,000 (2005 £395,000), whilecorresponding revenues grew to £9.6m (2005: £8.41m). These reported numbersinclude a 5 month contribution from MATRA Systems, acquired in April 2006. Gross margins increased to 69% from 65% in the first half of 2005 and 61% fromthe full year 2006 as gross profits increased to £6.6m from £5.5m. Profit beforetax was at £271,000 (2005: £323,000). The net assets of the Group have increased to £12,868,000 (2005: £9,728,000) andadjusted basic earnings per share were 1.22p (2005: 1.48p). Operating review MATRA Systems acquisition On 29th April 2006, Clarity completed the acquisition of MATRA Systems. We arevery pleased with progress made towards capitalising on the opportunity thispresents, and as we originally stated, the initial focus has been on businessand product integration. We anticipate that the software integration task will be close to completion bythe year end, and we shall soon be in a position to market a combined product,boosting sales opportunities across all market sectors. Operating costs The Board is pleased to announce that good progress has been made in reducingthe core operating costs of the business in the first half of the year and looksforward to continuing with this effort. This cost reduction has come from the integration of businesses into centralfunctions, and this centralisation is enabling us to offer more consistent,customer focused service levels across all of the markets in which we operate. The Group continues to make a significant investment in R&D, as part of theongoing process of creating innovative new software that strengthens our productofferings. Net asset and debtor levels The Group's net asset position has strengthened and there has also been animprovement made to the Group's net current assets of £1.5m. Debtor levels were unusually high at Clarity's half year point, however cashcollection since that time has been high. The centralisation of our financefunction is nearly completed, and has enabled a focus on processes and increasedclient contact, and we expect this to result in an ongoing reduction in debtorlevels over time. Prospect levels During the period, prospect enquiry levels were robust and bid request volumeshigh across all Clarity's key market sectors. This degree of interest reinforcesthe company's confidence that our integrated product strategy based on theMicrosoft .Net platform is the right approach. The leisure sector awaits our next generation software, which is currently underdevelopment. Across all markets, we anticipate some conversion of prospects inthe second half, which in turn will support future trading growth. Future growth The Board is confident that Clarity's more efficient operational cost base willbe accompanied by ongoing business wins across all sectors, fuelling profitgrowth. With increasingly mature software and a more centralised business, weare entering the next phase of our growth, focused more on sales and marketdevelopment. Outlook Clarity's trading pattern is normally weighted towards the second half of thefinancial year. This year, that effect is more pronounced than normal, with manyorders scheduled for the second six months. Taking this into account, and inview of our promising sales pipeline, the Clarity Board remains confident ofachieving market forecasts for the full year. Consolidated profit and loss accountfor the period ended 30 September 2006 1 April 2006 1 April 2005 1 April 2005 30 September 2006 30 September 2005 31 March 2006 Unaudited Unaudited Audited £'000 £'000 £'000Turnover- continuing operations 7,730 8,415 18,884- acquisitions 1,850 - - 9,580 8,415 18,884Cost of sales (2,964) (2,928) (7,361)Gross profit 6,616 5,487 11,523Operating costs (6,207) (5,092) (10,414)Operating profit- continuing operations 337 395 1,109- acquisitions 72 - - 409 395 1,109 Operating profit is analysed between:Operating profit from continuing operations before impairment of goodwill 337 395 1,358Continuing operations - impairment of goodwill - - (249)Operating profit from acquired operations 72 - -Operating profit after impairment of goodwill 409 395 1,109 Interest receivable 167 331 506Interest payable (305) (403) (662) (138) (72) (156)Profit on ordinary activities before taxation 271 323 953Taxation on profit on ordinary activities (41) (82) (3)Retained profit for the year 230 241 950 Earnings per ordinary share- basic 1.22p 1.48p 5.81p- diluted 1.12p 1.47p 5.80pDividends per share - - - Consolidated balance sheetas at 30 September 2006 As at As at As at 30 September 2006 30 September 2005 31 March 2006 Unaudited Unaudited Audited £'000 £'000 £'000Fixed assetsIntangible assets 17,460 11,277 11,352Tangible assets 579 560 563 18,039 11,837 11,915Current assetsStocks 598 1,027 600Debtors 5,650 4,093 6,778Cash at bank and in hand 399 990 852 6,647 6,110 8,230 Creditors: amounts falling due within one year (5,062) (5,996) (8,100)Net current assets 1,585 114 130Total assets less current liabilities 19,624 11,951 12,045Creditors: amounts falling due after more than one year (6,722) (2,223) (1,691)Provisions for liabilities and charges (34) - (34)Net assets 12,868 9,728 10,320 Capital and reservesCalled up share capital 4,835 4,084 4,084Shares to be issued 500 - -Share premium account 7,040 5,974 5,974Profit and loss account 493 (330) 262Equity shareholders' funds 12,868 9,728 10,320 Consolidated cash flow statementfor the period ended 30 September 2006 1 April 2006 1 April 2005 1 April 2005 30 September 2006 30 September 2005 31 March 2006 Unaudited Unaudited Audited £'000 £'000 £'000 Net cash inflow from operating activities (453) (1) 884 Returns on investments and servicing of financeInterest received 167 331 506Interest paid and similar charges (257) (402) (595)Interest element of hire purchase and finance leases (2) (1) (2)Net cash outflow from returns on investments and servicing of finance (92) (72) (91) Taxation (95) - (10) Capital expenditure and financial investmentPurchase of tangible fixed assets (36) (115) (200)Sale of tangible fixed assets - 4 -Net cash outflow from capital expenditure and financial investment (36) (111) (200) AcquisitionsPurchase of subsidiary undertakings (2,875) - (110)Cash at bank acquired with subsidiary 370 - -Net cash outflow from acquisitions (2,505) - (110)Net cash (outflow) / inflow before management of liquid resources and financing (3,181) (184) 473 Management of liquid resourcesMovement in blocked cash collateral account 264 (331) 75 FinancingIssue of share capital 1,817 - -Repayment of loan notes (473) - (646)Capital element of finance leases (2) (8) (5)New loans 2,425 - -Bank loan repayments (1,039) (152) (304)Net cash inflow / (outflow) from financing 2,728 (160) (955)Decrease in cash (189) (675) (407) NOTE: Analysis of cash movementsMovement in total Group cash (453) (344) (482)Movement in blocked cash collateral account 264 (331) 75Movement in total cash availability (189) (675) (407) Notes to the financial statements 1 Nature of the financial information The Company prepares statutory accounts annually to 31 March. These are theinterim accounts covering the six months ended 30 September 2006. The results for the period from 1 April 2005 to 30 September 2005 and year to 31March 2006 are extracted from the previous year's interim and final accountsrespectively. The results for the six months ended 30 September 2006 and the period from 1April 2005 to 30 September 2005 are unaudited, and have been prepared inaccordance with the accounting policies set out in the Company's annual report. The financial information set out above does not constitute statutory accountswithin the meaning of section 240 of the Companies Act 1985. The results for theyear ended 31 March 2006 are an abridged version of the full statutory accountsthat have an unqualified audit report and have been delivered to the Registrarof Companies. 2 Taxation The taxation charge for the six months ended 30 September 2006 and 2005 is basedon the anticipated tax position for the full year. 3 Earnings per share Basic earnings per share for the period ended 30 September 2006 is calculated bydividing the profit for the period of £230,000 (period ended 30 September 2005profit of £241,000, year ended 31 March 2006 profit of £950,000) by 18,895,463(period ended 30 September 2005: 16,338,086, year ended 31 March 2006:16,338,086) being the weighted average number of shares in issue during theperiod. The diluted earnings per share has been calculated by dividing the profit forthe period to 30 September 2006 of £230,000 (period ended 30 September 2005:£241,000, year ended 31 March 2006: £950,000) by the weighted diluted averagenumber of shares being 20,577,169 (period ended 30 September 2005: 16,398,791,year ended 31 March 2006: 16,381,088). 4 Dividend The Company does not propose the payment of an interim dividend, which continuesto be reviewed on an on-going basis. This information is provided by RNS The company news service from the London Stock Exchange