FJET.L Regulatory News (FJET)

21 Mar 2007 07:01

Rubicon Software Group PLC21 March 2007 FOR IMMEDIATE RELEASE 21 March 2007 Rubicon Software Group Plc INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 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 unaudited results for the six months ended 31 December 2006. KEY POINTS : • Operating income £505,000 (2005: £539,000) • Loss before tax £273,000 (2005: £86,000) • Loss per share 0.78p (2005: n/a) Commenting on these results, Rob Burnham, Rubicon's Chairman, said: "We have addressed the project management issues that contributed to theselosses. With our software engineers all profitably engaged in delivering ourfive current projects, we expect a much improved performance in the second halfof the current financial year." About Rubicon Based near Woking in Surrey, Rubicon is a specialist provider of customerrelationship management ("CRM") systems to niche markets within the financialservices sector, notably building societies, sub-prime lenders, brokers andpackagers. Current clients include First Response Finance, Mortgages plc, MarketHarborough Building Society, Norton Finance and Universal Building Society. Itscore technology platform, "Accelerator", is designed to enhance theeffectiveness and efficiency of customer service and sales targeting, whilstfacilitating business process and change management, a key differentiator giventhe pace of regulatory and market change within the sector. For moreinformation, 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 As indicated in our 2006 preliminary results, trading in the first half of thecurrent financial year has been more difficult than anticipated and has resultedin a pre-tax loss of £273,000 (2005: £86,000)for the six months to 31stDecember 2006. During this period an additional customer development project took longer todeliver than originally anticipated and we were only able to pass on aproportion of the extra costs to our client. Staff were heavily utilised on thisproject, leaving the company short of resources for other revenue generatingprojects. Remedial measures have now been taken to enhance project managementand ensure effective delivery going forward. The second half of the year has begun on a more positive note. We have won a newcontract for our principal product 'Accelerator', as well additional repeatbusiness from two existing customers. To ensure timely delivery of theseprojects additional resources have been recruited, initially on a contractbasis, but we are also seeking to recruit additional permanent staff. We continue to be very active in the loan and mortgage broking and packagingmarket where our ability to automate loan sourcing and application processingprovides a competitive advantage to our customers. Our pipeline of potential newbusiness is strong and our improved sales approach is being consistently appliedto improve the conversion rate. To enhance our own competitive position we have maintained our research anddevelopment programme which is now focused on application development. This workrelates specifically to potential customers already in our new business pipelineand is intended to reduce implementation costs and speed project delivery,thereby making our product offering more competitive. In the first half of theyear development costs of £89,000 (2005: £115,000) have been capitalised and asimilar amount is projected for the six months to 30 June 2007. We are aware from market intelligence and our own sales activity that potentialcustomers in our main markets have identified the use of technology as a keyfactor in their ability to achieve significant operational efficiencies. Rubiconis well positioned to take advantage of this increased interest and we willcontinue to develop our products so they are closely aligned to marketrequirements. Whilst the outcome for the full year will depend upon timelydelivery of projects and the successful conversion of identified business, theBoard is encouraged by the progress made to date. Rob Burnham 21 March 2007ChairmanRubicon Software Group plc CONSOLIDATED INCOME STATEMENTFOR THE PERIOD ENDED 30 JUNE 2006 Notes 6 months 6 months 12 months to 31/12/06 to 31/12/05 to 30/06/06 (Unaudited) (Unaudited) (Audited) £000 £000 £000 Turnover 466 503 1,377 Other operating income 41 36 41 --- --- -----Total operating income 507 539 1,418 Operating costs:Staff costs (469) (293) (620)Depreciation and amortisation (83) (99) (167)Other operating charges (224) (230) (565) ---- ----- -----Net operating (loss)/profit (269) (83) 66Interest payable and similarcharges (4) (3) (6) --- ---- ---(Loss)/profit before taxation (273) (86) 60Income tax expense 2 - - - --- ---- ---(Loss)/profit for the period (273) (86) 60 ==== ==== === Basic earnings per share (p) 4 (0.78) n/a 0.36 CONSOLIDATED BALANCE SHEETAS AT 31 DECEMBER 2006 Notes at 31/12/06 at 31/12/05 at 30/06/06 (Unaudited) (Unaudited) (Audited) £000 £000 £000 Fixed AssetsIntangible assets 289 265 276Tangible assets 35 37 40 --- --- --- 324 302 316Current AssetsDebtors 370 466 461Bank balances and cash 6 55 - - --- --- --- 425 466 461 Creditors: amounts fallingdue within one year (340) (650) (465) --- --- ----Net current liabilities 85 (184) (4) Total assets less current --- --- ---liabilities 409 118 312 Creditors: amounts fallingdue after more than one year - (385) (100) --- ---- ----Net assets/(liabilities) 409 (267) 212 === ==== ====Capital and reservesCalled up equity sharecapital 377 145 300Share premium account 393 418 -Merger reserve 596 - 596Profit and loss account (957) (830) (684) --- --- ---Shareholders' funds 7 409 (267) 212 === ==== === CONSOLIDATED CASH FLOW STATEMENTFOR THE PERIOD ENDED 31 DECEMBER 2006 Notes 6 months 6 months 12 months to 31/12/06 to 31/12/05 to 30/06/06 (Unaudited) (Unaudited) (Audited) £000 £000 £000 Net cash (outflow)/inflow fromoperating activities 8 (167) 95 100 Returns on investments andservicing of financeInterest paid (4) (3) (6)Net cash outflow on returns on ---- investment and servicing of (4) (3) (6)finance Taxation - - 62 Capital expenditure andfinancial investmentPayments to acquire tangible (2) (4) (13)assetsPayments to acquire intangibleassets (89) (115) (188)Net cash outflow from capital --- ---- ----expenditure and financialinvestment (91) (119) (201) === ==== ==== Cash outflow before financing (262) (27) (45) FinancingIssue of equity share capital 77 - 29Share premium on issue of sharecapital 693 - 86Costs relating to share issue (300) - -Repayment of loans (100) (31) (97)Capital element of financelease and hire purchase agreements (1) (2) (4) --- ---- ---Net cash inflow from financing 369 (33) 14 --- ---- ---Increase/(decrease) in cash 9 107 (60) (31) === ==== === Notes to the financial statements 1. Basis of preparation These financial statements do not constitute full accounts within the meaning ofSection 240 of the Companies Act 1985 (as amended by Section 10 of the CompaniesAct 1989). The interim accounts have been prepared on the basis of the accounting policiesset out in the 2006 Annual Report and Accounts. 2. Taxation There is no charge for taxation in the period and the Group has unrelieved taxlosses at 31 December 2006 of approximately £800,000. 3. Dividend Distributable reserves are not available and the Directors do not propose to paya dividend for the period. 4. Earnings per share The calculation of earnings per share is based upon earnings after taxation. Therelevant figures used in the calculation are stated below: at 31/12/06 at 31/12/05 at 30/06/06 (Unaudited) (Unaudited) (Audited) (Loss)/earnings attributable toshareholders (273) n/a 60 Weighted average number of sharesoutstanding 34,854,343 n/a 16,608,876 At 31 December 2006 the Company had 3,278,750 share options outstanding. None ofthese options were exercisable in the period so there is no dilutive effect onthe Group's earnings per share. 5. Placing and admission to AIM On 6 September 2006, the Company issued 7,700,000 ordinary shares raising£470,000 net of expenses, by means of a placing accompanied by admission of theCompany's shares to AIM. The funds raised from the placing are being applied toincrease the Company's frontline sales and marketing capabilities, to strengthenthe development and delivery team in anticipation of projected revenue growth,to repay short-term loans from Directors and provide working capital. 6. Analysis of changes in net debt At 1 July 2006 Cash flow At 31 December 2006 £000 £000 £000 Bank balances and cash - 55 55Overdraft (52) 52 -Loans (100) 100 -Finance lease and hirepurchase contracts (2) 1 (1)Net cash at end of the period ---- ---- --- (154) 208 54 ==== ==== === 7. Reconciliation of movements in shareholders' funds 6 months 6 months 12 months to 31/12/06 to 31/12/05 to 30/06/06 (Unaudited) (Unaudited) (Audited) £000 £000 £000 (Loss)/profit attributable toshareholders (273) (86) 60New ordinary share capital subscribedin subsidiary company - - 333New ordinary share capital 470 - - --- ---- ----Net addition/(reduction) toshareholders' funds 197 (86) 393Opening shareholders' funds 212 (181) (181) --- ---- ----Closing shareholders' funds 409 (267) 212 === ==== ==== 8. Reconciliation of operating loss to net cash (outflow)/inflow from operating activities 6 months 6 months 12 months to 31/12/06 to 31/12/05 to 30/06/06 (Unaudited) (Unaudited) (Audited) £000 £000 £000 Operating (loss)/profit (269) (83) 66Depreciation and amortisation 83 99 167Decrease in stocks - 4 4Decrease/(increase) in debtors 91 (174) (230)(Decrease)/increase in creditors (72) 249 93 --- ---- ----Net cash (outflow)/inflow fromoperating activities (167) 95 100 === ==== ==== 9. Reconciliation of net cash to movement in net debt 6 months 6 months 12 months to 31/12/06 to 31/12/05 to 30/06/06 (Unaudited) (Unaudited) (Audited) £000 £000 £000 Increase/(decrease) in cash in period 107 (60) (31)Net cash outflow from other loans 100 31 97Loan to equity conversion insubsidiary company - - 218Capital element of finance lease andhire purchase contracts 1 2 4 --- --- --- Change in net debt 208 (27) 288Net debt at start of the period (154) (442) (442) ---- ---- ----Net cash/(debt) at end of the period 54 (469) (154) ==== ==== ==== 10. Availability of Interim Report Copies of this interim report are available from the Company's Registered Officeat Rubicon House, Guildford Road, West End, Surrey, GU24 9PW or via the website(www.rubiconsoftware.com). ENDS This information is provided by RNS The company news service from the London Stock Exchange