Calculus Vct Regulatory News (CLC)

25 Sep 2007 07:03

Clinical Computing PLC25 September 2007 CLINICAL COMPUTING PLC 2007 INTERIM RESULTS Clinical Computing Plc ("the Company"), the international developer of clinicalinformation systems for the healthcare market, announces Interim Results for thesix months ended 30 June 2007. The Group trades through three operatingsubsidiaries: Clinical Computing UK, Ltd. in the United Kingdom and Europe,Clinical Computing, Inc. in the United States and Clinical Computing Pty Limitedin Australia. Financial Overview • Revenue up 6% to £1,025,370 (June 2006: £967,698) • Operating costs down 7% to £1,327,843 (June 2006: £1,420,572) • Loss for the period before tax reduced by 28% to £336,461 (June 2006: loss £464,112) • Loss for the period £267,944 (June 2006: loss £464,112) • Loss per share (basic and diluted): 0.8p (June 2006: loss 1.5p) • Borrowed £1,334,185 at 30 June 2007 (from £1,750,000 of available working capital facilities) Business Review • 5th consecutive six month period of improving bottom line results • Move to AIM complete • 4 Clinical Vision 4 (CV4) contracts won in the US market • 7 CV4 implementations in progress Outlook Chairman Howard Kitchner, commenting on the Group outlook, said: "The results for the first half of 2007 continue a positive trend which nowcovers five consecutive reporting periods where the Group has reporteddecreasing losses for the period. The board and management team are completelyfocused on delivering further improving results in line with our business plan." Contacts:Joe Marlovits, Chief Executive, Clinical Computing 020 8747 8744 www.ccl.comPaul McMannus, Parkgreen Communications Ltd 020 7479 7933Ross Andrews, City Financial Associates - Nominated Adviser 020 7492 4777 Chairman's Statement Introduction I am pleased to report the fifth consecutive six month period of improvingbottom line results for the Group. Since your board put into effect itsrestructuring plan the Group has reported progressively decreasing losses andthis trend has continued with these results. Additionally, the first six monthsof 2007 shows increasing revenues compared to the same period in the prior yearand when compared to the final six months of 2006. During the period the Group secured four Clinical Vision 4 (CV4) contracts fromcurrent customers who have been licensing legacy products. These contractsalong with other legacy license orders in the US exceeded £1,000,000, and thesecontracts will be recognised as revenue in the second half of 2007 and into2008. Three customers went live with CV4 in the first half and the Company iscurrently managing 7 other implementations. The restructuring plan included a re-organisation of the operations, and alsoincluded addressing the Company's financial structure so that the Groupmaximises its ability to deliver shareholder value. Earlier this summer yourboard announced plans to move the Company's share listing from the Official Listto AIM. The cancellation from the Official List and admission and trading toAIM took effect on 17 September 2007. The Company has recently been supported with debt facilities backed by myselfand two other shareholders. As the restructuring plan is showing positive andconsistent progress against plan the board will continue to review the long termfinancing alternatives available to the Group. Included in the shareholdercircular, the board sought and received authority to issue equity securities inthe amount of £1,000,000 against the Company's ordinary shares of 1p nominal.This authority provides the board with the flexibility in providing alternativesin funding the delivery of the Clinical Vision product roadmap which sees theClinical Vision product expanding internationally and supporting other chronicdiseases. Trading Results During the period under review, Group revenues increased 6 %, from £967,698 to£1,025,370. The increase in revenue compared to the same period in the prioryear is attributed to software licenses for both CV4 and our legacy products,primarily Proton. The Group continues to derive revenue from maintenancecontracts and providing support services to approximately 94 healthcareorganisations. Maintenance revenue for the period was £566,776 or 55% oftotal revenue (2006: £621,841 or 64%). The majority of the decrease inmaintenance revenue compared to the prior period is due to the strengthening ofsterling versus both the US and Australian dollars, currencies in which 68% ofour maintenance revenues were invoiced. Total operating costs decreased 7% from £1,420,572 to £1,327,843. The operatingcost decrease is primarily attributed to staff costs which have fallen whencompared to the prior period. The Group's operating loss before tax has reduced by 28% to £336,461 (2006:£464,112 loss). The loss for the period after tax was £267,944 or 0.8p per share (2006: £464,112or 1.5p per share). Cash Flows and Liquidity As disclosed in the shareholder circular dated 23 July 2007, the Companyincreased its debt resources by a further £200,000 taking the borrowingavailable to the Group to £1,650,000 from sterling based facilities. The Groupalso has a US dollar based facility of £100,000 ($200,000) which is notutilised. The Company borrowed £465,032 during the period, which took its total borrowingsfrom the sterling facilities to £1,334,185 at the end of the period. Althoughborrowing increased by £465,032 operations only used £228,554 and the Group isshowing cash balance of £195,883 at the end of the reporting period. The boardregularly monitors the progress of the contract pipeline and evaluates thelikely timing of cash inflow from signed and potential new contracts along withongoing maintenance contracts against our cost structure. At this time yourdirectors believe that the current facilities provides sufficient workingcapital to support the Group and allow it to continue to pursue its businessobjectives and as of the date of this announcement has the appropriate level offunding to continue as a going concern. Outlook The results for the first half of 2007 continue a positive trend which nowcovers five consecutive reporting periods where the Group has reporteddecreasing losses for the period. The board and management team are completelyfocused on delivering further improving results in line with our business plan. Howard KitchnerChairman26 September 2007 Unaudited consolidated income statementSix months ended 30 June 2007 Audited Six months Six months year ended ended ended 30 June 2007 30 June 2006 31 December 2006 £ £ £Continuing operationsRevenue (Note 3) 1,025,370 967,698 1,781,658 Cost of sales (359,280) (345,161) (711,663) -------------- -------------- ----------------- Gross profit 666,090 622,537 1,069,995 Distribution costs (116,611) (211,659) (371,830)Administrative expensesResearch & development (475,102) (471,308) (965,120)Other (376,850) (392,444) (676,772)Total administrative expenses (851,952) (863,752) (1,641,892) -------------- ------------- -----------------Loss from operations (302,473) (452,874) (943,727) Interest income 1,629 1,656 2,565Finance costs (35,617) (12,894) (23,476) -------------- ------------ -----------------Loss before income tax (336,461) (464,112) (964,638)Income tax (Note 4) 68,517 - 121,234 -------------- ------------ ----------------- Loss for the period (267,944) (464,112) (843,404) -------------- ------------ ----------------Basic and diluted loss per share (Note 5) (0.8p) (1.5p) (2.6p) -------------- ------------ ---------------- Unaudited consolidated statement of recognised income and expenseSix months ended 30 June 2007 Audited Six months Six months year ended ended ended 30 June 2007 30 June 2006 31 December 2006 £ £ £Exchange differences on translation of foreignoperations 9,827 32,662 69,243Loss for the period (267,944) (464,112) (843,404) ------------- ------------- ----------------Total recognised expense for the period (258,117) (431,450) (774,161) ------------- ------------- ---------------- Unaudited consolidated balance sheet30 June 2007 Audited 30 June 30 June 31 December 2007 2006 2006 £ £ £ Non-current assets Intangibles 59,834 - 29,360 Property, plant and equipment 139,770 74,378 146,141 --------------- --------------- ----------------- 199,604 74,378 175,501Current assets Trade and other receivables 405,036 357,973 353,001Cash and cash equivalents 195,883 54,878 14,418 --------------- --------------- ----------------- 600,919 412,851 367,419 --------------- --------------- -----------------Total assets 800,523 487,229 542,920 --------------- ---------------- ----------------- Current liabilitiesTrade and other payables (949,528) (1,090,650) (904,382)Bank overdrafts and loans (1,334,185) (292,594) (869,153) --------------- --------------- ----------------- (2,283,713) (1,383,244) (1,773,535) --------------- --------------- ----------------- Net liabilities (1,483,190) (896,015) (1,230,615) --------------- -------------- ----------------- Equity Share capital 1,655,518 1,655,518 1,655,518Share premium account 6,149,063 6,149,063 6,149,063Share option reserve 64,118 50,465 58,576Translation reserve 157,607 111,199 147,780Retained earnings (9,509,496) (8,862,260) (9,241,552) --------------- ---------------- ----------------- Shareholders' funds (Note 6) (1,483,190) (896,015) (1,230,615) -------------- -------------- ----------------- Unaudited consolidated cash flow statementSix months ended 30 June 2007 Audited Six months Six months year ended ended ended 30 June 30 June 31 December 2007 2006 2006 £ £ £ Net cash from operating activities (Note 7) (228,554) (491,621) (984,024) Investing activities Interest received 1,629 1,656 2,565Expenditure on product development (33,075) - (29,360)Purchases of property, plant and equipment (24,601) (16,580) (113,972) --------------- ---------------- --------------Net cash (used in) from investing activities (56,047) (14,924) (140,767) --------------- --------------- -------------- Financing activities New bank loans raised 465,032 292,594 869,153Proceeds from equity - 102,375 102,375 --------------- ---------------- ---------------Net cash from financing activities 465,032 394,969 971,528 --------------- ---------------- --------------- Net increase / (decrease) in cash and cash equivalents 180,431 (111,576) (153,263) Cash and cash equivalents at beginning of period 14,418 173,010 173,010Effect of foreign exchange rate changes 1,034 (6,556) (5,329) --------------- ----------------- ---------------- Cash and cash equivalents at end of period 195,883 54,878 14,418 --------------- ----------------- --------------- NOTES: 1. Basis of preparation The accounting policies applied in the un-audited interim financial statementshave been prepared in conformity with recognition and measurement principlesrequired by International Financial Reporting Standards ("IFRS"). Theun-audited financial statements have been prepared using accounting policiesconsistent in all material respects with those applied in the Company's AnnualReport for the year ended 31 December 2006 and consistent with those that willbe applied during the year ended 31 December 2007. The financial informationprovided herein should be read in connection with the Company's auditedConsolidated Financial Statements and the notes thereto for the year ended 31December 2006. The Company continues to be loss making and cash negative at the operationallevel. The directors continue to monitor management's forecasts for revenues,costs and working capital needs on a regular basis. Although these projectionsshow improving trading conditions, inherently there can be no certainty thatthese forecasts will be achieved. Supporting this plan is a £1,650,000 workingcapital facility which is secured by personal guarantees of the Chairman and twoother shareholders as well as a further facility for £100,000. Following areview of the above noted forecasts and taking into account available borrowingfacilities, the directors have formed a judgement, at the time of approving thisinterim announcement, that there is reasonable expectation that the Company hasadequate resources to continue in operational existence for the foreseeablefuture. This interim report does not constitute statutory accounts of the group withinthe meaning of section 240 of the Companies Act 1985. Statutory accounts forthe year ended 31 December 2006, have been filed with the Registrar ofCompanies. The auditors' report on those accounts was unqualified and did notcontain a statement under section 237 of the Companies Act 1985. 2. Business and geographic segments Six months Six months Year ended ended ended 30 June 30 June 31 December 2007 2006 2006 £ £ £ Revenue by segment UK 414,947 305,108 578,495 USA 596,713 604,288 1,063,614 Australia 13,710 58,302 139,549 --------------- ---------------- ---------------- 1,025,370 967,698 1,781,658 --------------- ---------------- ---------------- 3. Revenue Six months Six months Year ended ended ended 30 June 30 June 31 December 2007 2006 2006 £ £ £ Revenue by type Software licences 404,270 265,013 425,914 Services and other revenue 54,324 80,844 146,181 Maintenance 566,776 621,841 1,209,563 ------------- ------------- -------------- 1,025,370 967,698 1,781,658 ------------- ------------- -------------- 4. Tax The tax credit of £68,517 for the six-month period ended 30 June 2007 relates toa cash settlement of research and development credits claimed for work performedin 2006. The tax credit of £121,234 for the year ended 31 December 2006 relatesto a cash settlement of research and development credits claimed for workperformed in 2005. Research and development tax credits which are settled incash (not as an off-set to tax due) are accounted for when received from theapplicable tax authority. 5. Loss per share The calculation of the basic and diluted loss per share is based on thefollowing data: Six months Six months Year ended ended ended 30 June 30 June 31 December 2007 2006 2006 £ £ £ Loss for the purposes of basic and diluted loss (267,944) (464,112) (843,404) --------------- -------------- ----------------- Number Number Number Weighted average number of ordinary shares For purposes of basic and diluted loss per share 33,110,361 31,700,692 32,411,320 --------------- -------------- ---------------- The calculation of basic and diluted loss per share is the same because theeffect of including share options would be anti-dilutive and are excluded fromthe calculation per IAS 33. 6. Statement of changes in equity Share Share Share option Translation Retained capital premium reserve reserve loss Total £ £ £ £ £ £At 31 December 2006 1,655,518 6,149,063 58,576 147,780 (9,241,552) (1,230,615)Share options - - 5,542 - - 5,542Translation of foreignoperations - - - 9,827 - 9,827Retained loss for the year - - - - (267,944) (267,944) ------------- ------------ ----------- ----------- -------------- ---------------At 30 June 2007 1,655,518 6,149,063 64,118 157,607 (9,509,496) (1,483,190) ------------- ------------ ---------- ----------- -------------- --------------- 7. Reconciliation of operating loss to operating cash flows Six months Six months Year ended ended ended 30 June 30 June 31 December 2007 2006 2006 £ £ £ Loss from operations (302,473) (452,874) (943,727)Adjustments for:Depreciation of property, plant and equipment 30,211 21,428 44,040Share option charge 5,542 12,810 20,921Amortisation of capitalised R&D 2,601 - - -------------- ---------------- ----------------Operating cash flows before movements in workingcapital (264,119) (418,636) (878,766)(Increase) / decrease in receivables (52,068) (7,779) 1,208Increase / (decrease) in payables 54,733 (52,312) (204,224) -------------- ---------------- -----------------Cash used by operations (261,454) (478,727) (1,081,782) Taxes received 68,517 - 121,234Interest paid (35,617) (12,894) (23,476) --------------- ---------------- -----------------Net cash from operating activities (288,554) (491,621) (984,024) --------------- ---------------- ---------------- This information is provided by RNS The company news service from the London Stock Exchange