FJET.L Regulatory News (FJET)

22 Dec 2006 07:01

Rubicon Software Group PLC22 December 2006 FOR IMMEDIATE RELEASE 22 December 2006 Rubicon Software Group Plc PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2006 Rubicon Software Group plc ("Rubicon" or "the Group"; AIM: RUBI), the specialistprovider of CRM software solutions to the UK financial services sector, hasannounced its audited results for the year ended 30 June 2006. These are theGroup's maiden full-year results since its flotation on AIM on 6th September2006. Highlights: • Turnover of £1,418,000 (2005: £740,000) • Profit before tax of £60,000 (2005: loss £630,000) • Earning per share of 0.36p (2005: n/a) • Shareholders funds of £212,000 (2005: £181,000) • £430,000 net raised via placing and AIM flotation • Strengthening of management team with the appointment of financial director and three non-executives • Ongoing investment in functionality of Rubicon's core technology platform, Accelerator Commenting on the results, Alistair Hancock, Rubicon's Chief Executive Officer,said: "Rubicon has made encouraging progress over the past year. We now have the teamand funds in place to execute our growth strategy. Whilst it is frustrating thatthe results for the current financial year will be depressed by a projectoverrun, we have taken remedial action to ensure effective delivery goingforward. "Accelerator has been particularly well-received within the burgeoning loan andmortgage broking and packaging sector, where there is a largely unmet need tospeed processes and improve service quality. Our challenge now is to increaseour speed-to-market and reach the critical mass necessary to exploit this marketpotential fully." Notes to Editors: About RubiconBased near Woking in Surrey, Rubicon is a specialist provider of customerrelationship management ("CRM") systems to niche markets within the financialservices sector, notably building societies and sub-prime lenders. Currentclients include First Response Finance, Mortgages plc, Market HarboroughBuilding Society, Norton Finance and Universal Building Society. Its coretechnology platform, "Accelerator", is designed to enhance the effectiveness andefficiency of customer service and sales targeting, whilst facilitating businessprocess and change management, a key differentiator given the pace of regulatoryand market change within the sector. Rubicon has partnered with TietoEnator, aleading European IT services provider, for over three years in the UK to providean integrated CRM solution for the "SUMMIT" mortgage finance and savings suiteof products. For more information, please visit www.rubiconsoftware.com. For further information, please contact: Rubicon Software Group Plc 01276 706900Alistair Hancock, Chief Executive OfficerRichard Gordon, Finance Director Bankside Consultants 020 7367 8888Sue Scott/Daniela Hale CHAIRMAN'S STATEMENT I am pleased to report that the Group has achieved a significant turnaround inits operating performance, reporting a profit for the year of £60,000 versus aloss in 2005 of £630,000. This was achieved by delivering record turnover of£1,418,000, nearly double the prior-year level. This was thanks to additionaldevelopment fees from our existing client base and two significant newcustomers, for whom we have embarked on major development projects, based on ourcore technology platform, Accelerator. We continue to invest heavily inenhancing Accelerator's functionality, particularly in process automation and inloan/mortgage sourcing, a very buoyant market. Management Ahead of the Group's AIM flotation, four key Board appointments were made. InApril, Richard Gordon, formerly the Finance Director of Broadcastle plc, joinedRubicon as Finance Director. In May, David Webber (currently ChiefExecutive of Patsystems plc, another AIM technology company), Richard Blakesley(a former international investment banker) and I joined the Board innon-executive roles. We now have a highly experienced management team in place,capable of delivering the Group's longer-term growth strategy, withcomplementary skill sets and plc experience. Additionally, I have to announce that Gavin Jones resigned from the Board of Rubicon with effect from 21 December 2006. Gavin contributed to the early development of Rubicon and we would like to thank him for his hard work. Financial On 6 September 2006, the Company issued 7,700,000 ordinary shares raising£430,000 net of expenses, by means of a placing accompanied by admission of theGroup's shares to AIM. The proceeds are being applied to increase the Group's front-line sales andmarketing capabilities, to strengthen the development and delivery teams inanticipation of projected revenue growth, to repay short-term loans from Directors and to provide working capital. Dividends Distributable reserves are not available and the Directors do not propose to paya dividend for the period. As stated at the time of the flotation, it is theBoard's intention to initiate a progressive dividend policy once recurringrevenues are sufficient to cover the Group's fixed costs. Current Trading An additional customer development project has taken longer to deliver thanoriginally anticipated and we have only been able to pass on a portion of theadditional costs to our client. Staff have been heavily utilised on thisproject, leaving the company short of resources for other revenue-generatingprojects. As a result, we are now expecting to report a loss for the first halfof the current financial year. However, we have a strong pipeline of goodprospects and we anticipate being marginally profitable in the second half ofthe current financial year, albeit that this is unlikely to be sufficient togenerate a profit for the year as a whole. Outlook The over-running project is now close to completion and we expect minimalongoing impact on our ability to deploy staff profitably. Management has takenremedial measures to enhance project management and effective delivery goingforward. A new sales methodology has been adopted which involves us undertakingevaluation workshops with our prospective clients to provide both a betterqualification of the business opportunity and a clearer understanding of theirrequirements. Prospects have reacted positively to this approach. Our new business pipeline is stronger than ever and, although the timing ofclients' decision-making cannot always be predicted accurately, we are confidentin our ability to win and implement significant new business in the remainder ofthe current financial year. Increasingly we are engaging with clients at all levels of the value chain inthe highly active loan and mortgage broking and packaging sector. Our ability toautomate loan sourcing and processing fulfils a major requirement in a largemarket which is undergoing rapid change and consolidation. On behalf of the Board, I should like to thank all of our staff who haveperformed admirably through a challenging and difficult period. Their continuingsupport is crucial to our future success. Robert Burnham 22 December 2006ChairmanRubicon Software Group Plc GROUP PROFIT AND LOSS ACCOUNTFOR THE PERIOD ENDED 30 JUNE 2006 Year ended Year ended 30 June 30 June 2006 2005 Notes £'000 £'000 Turnover 1,377 667 Other operating income 41 73 ----- ----- 1,418 740 Operating costs:Staff costs (620) (554)Depreciation and amortisation (167) (200)Other operating income (565) (611) ---- ----Operating profit/(loss) 66 (625) Interest payable and similar charges (6) (5) ---- ----Profit/(loss) on ordinary activities beforetaxation 60 (630)Tax on profit/(loss) on ordinary activities 2 - 64 ---- -----Retained profit/(loss) for the financial 60 (566)period ---- ----- Earnings per ordinary 1p share (p) 3 0.36 - _____ _____ All of the activities of the group are classified as continuing The group has no recognised gains or losses other than the results for theperiods as set out above. GROUP BALANCE SHEETAS AT 30 JUNE 2006 Year ended Year ended 30 June 30 June 2006 2005 Notes £'000 £'000 Fixed assetsIntangible assets 276 242Tangible assets 40 40 ---- ---- 316 282 ---- ----Current assetsStocks - 4Debtors 461 292 ---- ---- 461 296 Creditors: amounts falling due within one (465) (342)year ---- ----Net current assets/(liabilities) (4) (46) ---- ----Total assets less current liabilities 312 236 Creditors: amounts falling due after morethan (100) (417)one year ---- ----Net assets/(liabilities) 212 (181) ____ ____ Capital and reservesCalled up share capital 300 145Share premium account 596 418Profit and loss account (684) (744) ---- ----Shareholders' Funds 4 212 (181) ____ ____ GROUP CASH FLOW STATEMENTFOR THE PERIOD ENDED 30 JUNE 2006 Year ended Year ended 30 June 30 June 2006 2005 Notes £'000 £'000 Net cash inflow/(outflow) from operatingactivities 5 100 (350) Returns on investments and servicing offinanceInterest paid (6) (5) ---- ----Net cash outflow from returns on investmentsand servicing of finance (6) (5) Taxation 62 2Capital expenditure and financial investmentPayments to acquire tangible assets (13) (2)Payments to acquire intangible assets (188) - ---- ----Net cash outflow from capital expenditureand (201) (2)financial investment ---- ----Cash outflow before financing (45) (355) ---- ----FinancingIssue of equity share capital 29 109Share premium on issue of share capital 86 -(Repayment)/receipt of loans (97) 255Capital element of finance lease and hirepurchase agreements (4) (7) --- ---Net cash inflow from financing 14 357 --- ---(Decrease)/increase in cash 6 (31) 2 ___ ___ Notes to the financial statements 1. Basis of preparation The financial statements have been prepared under the historical costconvention. The financial statements have been prepared on the going concern basis as thedirectors believe this to be appropriate because the company's forecastsindicate that the facilities available from the company's lenders and the agreedterms of repayment for company shareholder and other loans will result in thecompany having sufficient financial resources to enable it to meet its cash flowrequirements over the next 12 months. The directors are confident that the company will be able to meet liabilities asthey fall due, and therefore the financial statements do not include anyadjustments that would arise as a result of not being able to do so. 2. Taxation The Group has unrelieved tax losses at 30 June 2006 of approximately £515,000(2005 - £543,000) which remain available to offset against future taxabletrading profits. 3. Earnings per share Earnings Weighted Per share average number amount of shares £'000 pence Earnings attributableto shareholders 60 Weighted average number of shares in issue duringthe year 16,608,876 --- ---------- ----Basic earningsper share 60 16,608,876 0.36 === ========== ==== 4. Reconciliation of movements in shareholders' funds 2006 2005 £'000 £'000 Profit/(loss) for the financial year 60 (566)New ordinary share capital subscribed insubsidiary company 333 109 ----- -----Net addition/(reduction) to shareholders' funds 393 (457)Opening shareholders' funds (181) 276 ----- -----Closing shareholders' funds 212 (181) ===== ===== 5. Reconciliation of operating profit/(loss) to net cash inflow/outflowfrom operating activities 2006 2005 £'000 £'000 Operating profit/(loss) 66 (625)Depreciation and amortisation 167 200Decrease in stocks 4 19Decrease in debtors (230) (42)Increase in creditors 93 98 ----- -----Net cash inflow/(outflow) from operatingactivities 100 (350) ===== ===== 6. Reconciliation of net cash to movement in net debt 2006 2005 £'000 £'000 (Decrease)/increase in cash in period (31) 2Net cash outflow/(inflow) from other loans 97 (255)Loan to equity conversion in subsidiarycompany 218 -Capital element of finance lease and hirepurchase contracts 4 7 ----- -----Change in net debt 288 (246)Net debt at the start of the period (442) (196) ----- -----Net debt at the end of the period (154) (442) ===== ===== 7. Publication of non-statutory accounts The financial information set out in this preliminary announcement does notconstitute statutory accounts as defined in section 240 of the Companies Act1985. The summarised balance sheet at 30 June 2006 and the summarised profit and lossaccount, summarised cash flow statement and associated notes for the period thenended have been extracted from the Group's 2006 statutory financial statementsupon which the auditors opinion is unqualified and does not include anystatement under Section 237 of the Companies Act 1985. The accounts for the period ended 30 June 2006 have been posted to shareholdersand will be delivered to the Registrar of Companies after they have been laidbefore the company at the annual general meeting on 20 February 2007. Copieswill also be available from Rubicon Software Group Plc's Registered Office:Rubicon House, Guildford Road, West End, Surrey, GU24 9PW. ENDS This information is provided by RNS The company news service from the London Stock Exchange