Calculus Vct Regulatory News (CLC)

29 Sep 2006 07:02

Clinical Computing PLC29 September 2006 CLINICAL COMPUTING PLC 2006 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 2006. 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 36% to £967,698 (2005: £710,332) • Operating costs down 12% to £1,420,572 (June 2005: £1,621,498) • Loss for the period before tax reduced by 48% to £464,112 (June 2005: loss £895,582) • Loss for the period £464,112 (June 2005: loss £736,648) • Loss per share (basic and diluted): 1.5p (June 2005: loss 2.3p) • Borrowed £292,594 at 30 June 2006 (from the £1,000,000 facility) to support working capital Business Review • 21 customers under contract for Clinical Vision 4 (CV4) (2005:18) • 8 implementations underway in second half • 2 CV4 contracts secured from NHS Trusts • Continued progress on web-enabling CV4 technology • Staff restructuring nearing completion • Progress in UK on upgrade proposition to move ProtonTM customers on to CV4 Outlook Chairman Howard Kitchner, commenting on the Group Outlook, said: "I believe that as we have now implemented the majority of our restructuringplan, which we agreed over a year ago, your Company is stronger today than itwas a year ago and that it is capable of delivering improving results in linewith our plan." Contacts:Joe Marlovits, Chief Executive, Clinical Computing 020 8747 8744 www.ccl.comPaul McManus, Parkgreen Communications Ltd 020 7493 3713 07980 541 893 Chairman's Statement Introduction I am pleased to report that as we closed out the first half of 2006 the Companyhad nearly completed the restructuring plan that began in the first half of 2005(as highlighted in the 30 June 2005 Chairman's Statement). Under this plan themanagement team has realigned its staff resources and commercial focus,balancing the Group's emphasis equally between the US and Europe (primarily theUK). Prior to this the Group's main focus was on the US renal dialysis market.This transition has taken more than twelve months to implement, and yourdirectors believe that as we near completion of this transition that thisbalanced focus will improve the Group's near term and long term prospects. The restructuring plan called for several new full time positions to be createdto improve our operating performance. I can report that we have filledpositions in the following areas: product management, quality assurance andproduct support. The individuals joining the Group bring management experiencefrom larger organisations and new skills that are expected to benefit ouroperational performance going forward. In the UK we are making significant progress on marketing our Clinical Vision 4TM (CV4) transition programme to a selected number of the larger ProtonTMcustomers. The management team continues to explore and evaluate potentialchannel partnerships in other parts of Europe that could enhance our mid termrevenue opportunities. Our development team continues to make steady progress on web-enabling the CV4framework. This effort should have a favourable impact on 2007 and beyond. As noted below the Group is reporting an increase in revenue for the periodunder review when compared to the same period last year. This increase waspartially driven by the eight CV4 implementations that are currently active. Wehave determined that our customers require more service from us to assist themin moving an implementation through to go-live. Our strategy in the secondhalf is to increase the amount of professional services that we provide which webelieve will assist our customers in moving implementations to full use fasterwhich should result in recognising revenue sooner. Trading Results During the period under review, Group revenues increased 36 %, from £710,322 to£967,698. The increase in revenue compared to the same period in the prior yearis attributed to software licenses for both CV4 and our legacy products,primarily Proton. The Group continues to derive revenue from maintenancecontracts from approximately 100 healthcare organisations using one of its 4product lines. Maintenance revenue for the period was £621,841 or 64% of totalrevenue (2005: £540,345 or 76%). Total operating costs decreased 12 % from £1,621,498 to £1,420,572. Theoperating cost decrease is primarily attributed to staff costs which have fallencompared to the prior year as we implemented our restructuring plan. As notedabove management continues to make strategic appointments according to our planand as at the date of this announcement had hired 11 new employees since thebeginning of the year. However, as we continue to re-align our resources we donot expect the average headcount for 2006 to exceed the 2005 average of 40staff. The effect of the increase in revenue and decrease in costs resulted in theGroup's operating loss before tax being reduced by 48% to £464,112 (2005:£895,582 loss). The loss for the period after tax was £ 464,112 or 1.5p per share (2005:£736,648 (see note 4) or 2.3p per share). Clinical Vision 4 We now have 21 healthcare organisations under contract to use CV4. These 21customers are spread over five countries and we are currently implementing aFrench version of the renal application in Europe. As of the date of thisannouncement we have 13 customers using CV4 with eight implementations currentlyunderway. During the period under review we have made several enhancements tothe clinical application including the addition of a more generic clinicalscheduling component. We are scheduled to implement a transplantation modulefor both the kidney and pancreas during the second half of the year. Theseapplication extensions to CV4 continue to expand the functionality of the systemfor our core renal market as well as the general clinical healthcare market. Cash Flows and Liquidity In June the board of directors secured a £1,000,000 credit facility for theGroup's working capital needs through to September 2007. At the AGM in June aresolution was passed to allow the Company to borrow against this facility andat 30 June 2006 £292,594 has been used to support the Group. Also in June theCompany completed an equity fundraising of £102,375 under a Private Issue of1,575,000 new ordinary 5p shares at 6.5 pence per share representing 4.99% ofthe ordinary shares then outstanding. The new shares were admitted to tradingon 12 June 2006 and following this transaction the Company has 33,110,361 sharesin issue. During the period under review the Group's required £495,000 tosupport its operations and it is likely that a similar amount will be requiredin the second half of the year. The board regularly monitors the progress ofthe contract pipeline and evaluates the likely timing of cash inflow from signedand potential new contracts along with ongoing maintenance contracts against ourcost structure. At this time your directors believe that the £1,000,000 line ofcredit provides the working capital support for the Group to continue to pursueits business objectives and as of the date of this announcement has theappropriate level of funding to continue as a going concern. Outlook The Group has a backlog of eight CV4 implementations and we are adding resourcesto ensure the timely delivery of these contracts. This additional resource willallow us to handle larger contracts in the future. I believe that as we have now implemented the majority of our restructuringplan, which we agreed over a year ago, your Company is stronger today than itwas a year ago and that it is capable of delivering improving results in linewith our plan. Howard KitchnerChairman28 September 2006 Unaudited consolidated income statementSix months ended 30 June 2006 Six months Six months Year ended ended ended 30 June 2006 30 June 2005 31 December 2005 £ £ £Continuing operationsRevenue (Note 3) 967,698 710,322 1,655,806 Cost of sales (345,161) (368,064) (720,228) -------------- -------------- ----------------- Gross profit 622,537 342,258 935,578 Distribution costs (211,659) (301,024) (496,194)Administrative expensesResearch & development (471,308) (450,245) (878,561)Other (392,444) (502,165) (1,122,065)Total administrative expenses (863,752) (952,410) (2,000,626) -------------- ------------- -----------------Loss from operations (452,874) (911,176) (1,561,242) Interest income 1,656 15,594 22,743Finance costs (12,894) - - -------------- ------------ -----------------Loss before income tax (464,112) (895,582) (1,538,499)Income tax (Note 4) - 158,934 158,934 -------------- ------------ ----------------- Loss for the period (464,112) (736,648) (1,379,565) -------------- ------------ ----------------Basic and diluted loss per share (Note 5) (1.5p) (2.3p) (4.4p) -------------- ------------ ---------------- Unaudited consolidated statement of recognised income and expenseSix months ended 30 June 2006 Six months Six months Year ended ended Ended 30 June 2006 30 June 2005 31 December 2005 £ £ £Exchange differences on translation of foreignoperations 32,662 (23,770) (40,722)Loss for the period (464,112) (736,648) (1,379,565) ------------- ------------- ----------------Total recognised expense for the period (431,450) (760,418) (1,420,287) ------------- ------------- ---------------- Unaudited consolidated balance sheet30 June 2006 30 June 30 June 31 December 2006 2005 2005 £ £ £ Non-current assetsProperty, plant and equipment 74,378 90,780 81,883 --------------- --------------- ----------------- Current assets Trade and other receivables 357,973 503,116 345,977Cash and cash equivalents 54,878 391,566 173,010 --------------- --------------- ----------------- 412,851 894,682 518,987 --------------- --------------- -----------------Total assets 487,229 985,462 600,870 --------------- ---------------- ----------------- Current liabilitiesTrade and other payables (1,090,650) (919,019) (1,180,620)Bank overdrafts and loans (292,594) - - --------------- --------------- ----------------- (1,383,244) (919,019) (1,180,620) --------------- --------------- ----------------- Net current liabilities (970,393) (24,337) (661,633) --------------- --------------- ----------------- Net (liabilities) / assets (896,015) 66,443 (579,750) --------------- -------------- ----------------- Equity Share capital 1,655,518 1,576,768 1,576,768Share premium account 6,149,063 6,125,438 6,125,438Share option reserve 50,465 23,979 37,655Translation reserve 111,199 95,489 78,537Retained earnings (8,862,260) (7,755,231) (8,398,148) --------------- ---------------- ------------------- Total (deficit) / equity (Note 6) (896,015) 66,443 (579,750) ---------- ---------- ---------- Unaudited consolidated cash flow statementSix months ended 30 June 2006 Six months Six months Year ended ended ended 30 June 30 June 31 December 2006 2005 2005 £ £ £ Net cash from operating activities (Note 7) (491,621) (491,589) (714,913) Investing activities Interest received 1,656 15,594 22,743Purchases of property, plant and equipment (16,580) (10,367) (21,923) --------------- ---------------- --------------Net cash (used in) from investing activities (14,924) 5,227 820 --------------- --------------- -------------- Financing activities New bank loans raised 292,594 - -Proceeds from equity 102,375 - - --------------- ---------------- ---------------Net cash from financing activities 394,969 - - --------------- ---------------- --------------- Net decrease in cash and cash equivalents (111,576) (486,362) (714,093) Cash and cash equivalents at beginning of period 173,010 875,731 875,731 Effect of foreign exchange rate changes (6,556) 2,197 11,372 --------------- ----------------- ---------------- Cash and cash equivalents at end of period 54,878 391,566 173,010 --------------- ----------------- --------------- 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") and the ListingRules of the Financial Services Authority. The un-audited financial statementshave been prepared using accounting policies consistent in all material respectswith those applied in the Company's Annual Report for the year ended 31 December2005 and consistent with those that will be applied during the year ended 31December 2006. The financial information provided herein should be read inconnection with the company's audited Consolidated Financial Statements and thenotes thereto for the year ended 31 December 2005. 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 £1,000,000 workingcapital facility which is secured by personal guarantees of the Chairman and twoother shareholders. Following a review of the above noted forecasts and takinginto account the available borrowing facility, the directors have formed ajudgement, at the time of approving this interim announcement, that there isreasonable expectation that the Company has adequate resources to continue inoperational existence for the foreseeable future. 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 2005, 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 2006 2005 2005 £ £ £ Revenue by segment UK 305,108 200,404 397,201 USA 604,288 509,918 1,258,605 Australia 58,302 - - --------------- ---------------- ---------------- 967,698 710,322 1,655,806 --------------- ---------------- ---------------- 3. Revenue Six months Six months Year ended ended Ended 30 June 30 June 31 December 2006 2005 2005 £ £ £ Revenue by type Software licences 265,013 78,976 391,602 Services and other revenue 80,844 91,001 147,805 Maintenance 621,841 540,345 1,116,399 ------------- ------------- -------------- 967,698 710,322 1,655,806 ------------- ------------- -------------- 4. Tax The tax credit of £158,934 for the six-month period ended 30 June 2005 and yearended 31 December 2005 relates to a research and development claim for 2004. Aclaim has been made for research and development efforts undertaken in 2005, butno amount is included in this report. 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 2006 2005 2005 £ £ £ Loss for the purposes of basic and diluted loss (464,112) (736,648) (1,379,565) --------------- -------------- ----------------- Number Number Number Weighted average number of ordinary shares For purposes of basic and diluted loss 31,700,692 31,535,361 31,535,361 --------------- -------------- ---------------- 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. 6. Statement of changes in equity Share Share Share Option translation Retained Capital Premium reserve Reserve loss Total £ £ £ £ £ £At 31 December 2005 1,576,768 6,125,438 37,655 78,537 (8,398,148) (579,750)Share options - - 12,810 - - 12,810Translation of foreign operations - - - 32,662 - 32,662Issue of equity shares 78,750 23,625 - - - 102,375Retained loss for the year - - - - (464,112) (464,112) ------------- ------------ ----------- ----------- -------------- -----------At 30 June 2006 1,655,518 6,149,063 50,465 111,199 (8,862,260) (896,015) ------------- ------------ ----------- ----------- -------------- ----------- 7. Reconciliation of operating loss to operating cash flows Six months Six months Year ended ended ended 30 June 30 June 31 December 2006 2005 2005 £ £ £ Loss from operations (452,874) (911,176) (1,561,242)Adjustments for:Depreciation of property, plant and equipment 21,428 22,951 45,943Share option charge 12,810 14,325 28,001 -------------- ---------------- ----------------Operating cash flows before movements in working (418,636) (873,900) (1,487,298)capital(Increase) / decrease in receivables (7,779) 39,152 35,060(Decrease) / increase in payables (52,312) 181,030 416,262 -------------- ---------------- -----------------Cash used by operations (478,727) (653,718) (1,035,976) Taxes received - 162,129 321,063Interest paid (12,894) - - --------------- ---------------- -----------------Net cash from operating activities (491,621) (491,589) (714,913) --------------- ---------------- ---------------- INDEPENDENT REVIEW REPORT TO CLINICAL COMPUTING PLC Introduction We have been instructed by the company to review the financial information forthe six months ended 30 June 2006 which comprises the consolidated incomestatement, the consolidated statement of recognised income and expense, theconsolidated balance sheet, the consolidated cash flow statement, and therelated notes. We have read the other information contained in the interimreport and considered whether it contains any apparent misstatements or materialinconsistencies with the financial information. This report, including the conclusion, has been prepared for and only for thecompany for the purpose of meeting the requirements of the Listing Rules of theFinancial Services Authority and for no other purpose. We do not, therefore inproducing this report, accept or assume responsibility for any other purpose orto any other person to whom this report is shown or into whose hands it may comesave where expressly agreed by our prior consent in writing. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. The directorsare responsible for preparing the interim report in accordance with the ListingRules of the Financial Services Authority. The accounting policies are consistent with those that the directors intend touse in the next annual financial statements. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board for use in the United Kingdom. A reviewconsists principally of making enquiries of group management and applyinganalytical procedures to the financial information and underlying financial dataand based thereon, assessing whether the disclosed accounting policies have beenconsistently applied unless otherwise disclosed. A review excludes auditprocedures such as tests of controls and verification of assets, liabilities andtransactions. It is substantially less in scope than an audit and thereforeprovides a lower level of assurance. Accordingly, we do not express an auditopinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 30 June 2006. Baker TillyChartered Accountants28 September 2006 This information is provided by RNS The company news service from the London Stock Exchange