Ithaca Energy Regulatory News (ITH)

11 Jun 2007 07:01

ITIS Holdings PLC11 June 2007 ITIS Holdings plc ("ITIS" or the "Company") Preliminary Results for the year ended 31 March 2007 ITIS Holdings plc, a leading road traffic information and data specialist ispleased to announce its preliminary results for the year ended 31 March 2007. HIGHLIGHTS • Turnover up 30.3% to £18.79m (2006: £14.42m) • Full year profit before tax and exceptional items up 140% to £3.90m* (2006: profit of £1.63m) • Full year profit after tax and exceptional items up 361% to £9.45m (2006: profit of £2.05m) • Adjusted ** basic and diluted EPS** was up 271% to 5.2p (2006: 1.4p), after taking into account the deferred tax asset credit of 1.54p per share (2006: nil). Basic and diluted EPS up 357% to 9.6p (2006: 2.1p) • Year end cash balance remains strong at £11.57m (2006: £5.70m) • Company intends to pay a maiden dividend of 1.5p per share, subject to court and shareholder approval • UK business continued to experience growth with solid margins • Excellent progress made with Cellular Floating Vehicle Data (CFVD) with new projects in Australia, Czech Republic, Ireland and Spain • Successful disposal of NavTrak Limited enables the Company to focus solely on traffic information services Stuart Marks, Chief Executive of ITIS, commented: "I am very pleased to reportthis strong set of results for the Company which demonstrate the success of ourfocussed strategy. We have delivered record turnover and profit levels and asthe business continues to grow our confidence in our ability to generate cashhas led us to propose a maiden dividend of 1.5p per share subject to court andshareholder approval. Whilst last year's revenues were almost entirely UKbased, we are now expanding our business internationally and believe that wewill start to see new revenue from these international activities to complementsteady growth in the UK." FINANCIAL OVERVIEW For the year ended 31st March 2007, turnover increased by 30.3% to £18.79m(2006: £14.42m). £4.62m of turnover for the year (2006: £4.24m) has beenpresented as discontinued following the sale on 26 March 2007 of NavTrak Limited("NavTrak"), the Group's stolen vehicle tracking subsidiary, to Cobra AutomotiveTechnologies spa. Turnover for the year ended 31st March 2007 arosepredominantly from the Group's UK business, being traffic data sales to RDS-TMCcustomers, data sales to local and central Government and other third partyorganisations and from customers using the Group's various mobile telephoneinformation services. On a Group basis, pre exceptional profit before taxation was £3.90m (2006:£1.63m), and £7.96m (2006: £1.96m) on a post exceptional basis. During the yeara deferred tax asset of £1.49m was recognised (2006: £nil), which created ataxation credit of £1.49m in the profit and loss account. Adjusted basic and diluted earnings per share ** were up 271% to 5.2p (2006:1.4p), after taking into account the deferred tax asset credit of 1.4p per share(2006: nil). Basic and diluted earnings per share were 9.6p (2006: 2.1p). NavTrak was sold for an initial cash consideration of £2.20 million. Additionalcash consideration of up to £1.38 million may become receivable by the Groupover the next five years, subject to NavTrak meeting certain trading conditions.Boosted by this cash receipt, the year-end cash balance strengthened to £11.57m(2006: £5.70m). The Company is proposing to pay a maiden dividend of 1.5p per share subject tocourt and shareholder approval. UK BUSINESS REVIEW For the period under review, virtually all of our revenues and profits weregenerated in the UK. Our growth has been driven from customers' demand tointegrate real time traffic information into satellite systems to improvefunctionality and the driver experience. In particular, our early adoption of RDS-TMC, the international standard for thedelivery of traffic to satellite navigation systems, has given us closerelationships with eighteen car manufacturers. We are particularly pleased tohave renewed contracts with BMW UK Limited for a five year period and with theFord Motor Company for three years. We remain committed to developing our dataquality and service coverage for TMC and recently signed deals with UTV Radio,Guardian Media Group (GMG) and others to acquire further capacity on FM radio tosupplement the our national broadcast licence on Classic FM. Apart from competing for contract renewals and tendering for new contracts, fromthe few manufacturers we do not service, growth in this market is entirelydependant upon our customers selling more navigation units year on year. Webelieve that there are now over 550,000 devices receiving our TMC service andthis number will continue to grow. Last month we simultaneously launched an enhanced mobile IVR (Interactive VoiceResponse) service and increased our presence on the web with a totallyredesigned site at www.keepmoving.co.uk. Amongst many new options, the IVR now offers callers the opportunity to recordtheir own eyewitness report. The Company provides its traffic information to twenty Personal NavigationDevice (PND) and aftermarket manufacturers and to support mapping and routingorganisations, such as the AA and Multimap. The PND market continues to attractnew entrants of which ITIS will be supplying traffic to Thinkware Systems, a newentrant to the UK market, and Road Angel who are for the first time integratingtraffic into their navigation products. The Company has a powerful real time and historic data set which supports all ofthe UK business. Outside of organic growth from its existing customers, theCompany intends to build on several strong and long term relationships todevelop service enhancements that will be valued by drivers whilst creating newrevenue streams. INTERNATIONAL BUSINESS REVIEW ITIS enjoys a reputation for innovation, high levels of data quality andcommercial success. All of these attributes have enabled us to develop ourbusiness outside the UK with local partners who can benefit from our technologyand expertise. As we found when we launched the business in the UK, developing a new marketsuccessfully can take time with considerable effort spent on pilot schemesbefore a national service can be implemented. We have proven in the UK that ourtechnologies are robust and scaleable which allow us to quickly scope thepotential of a new market and to work closely with partners to establish abusiness model and demonstrate the viability of the services. Whilst ourstrategy is to qualify new prospects by speed and potential, business models andstart up costs can vary from country to country. USA On 6th December 2005, the Company announced that an agreed form contract withthe Missouri Department of Transportation ("MODOT") had been approved by theMissouri Highways and Transportation Commission. However, as previously highlighted, due to circumstances beyond ITIS' control,this project remained undelivered in the year ended 31 March 2007. During thistime both ITIS and its US partner, Delcan, remained in contract with MODOTwhilst seeking a solution, with its involvement. Whilst Missouri has the potential to provide us with an excellent referencesite, the financial contribution from delivering this contract is expected tobe modest. OTHER COUNTRIES Activities outside the UK and the US are now beginning to show their truepotential. We are pleased to announce today that we have reached agreement toprovide traffic information services in the Republic of Ireland through a newlicensing deal. Under this arrangement our partner, iTraffic, has secured thecooperation of a mobile operator which has become a de facto requirement for uswhen launching our services into a new country. We have also licensed ourtechnology in a second European country and the system is currently being rolledout nationwide. More details will be announced shortly once our partners havemade their own press announcements Other European activity includes a pilot with a mobile operator based in Spainto provide traffic information in Barcelona and the launch of a traffic servicein Prague. In Australia we have successfully provided our RDS-TMC software platform forIntelematics a wholly owned subsidiary of Royal Automobile Club of Victoria andhave completed a successful demonstration of our CFVD technology through ourpartner Traffic Intelligence for Optus. Optus are a leading mobile operator, whoare part of the SingTel group, one of Asia's leading communications groups withoperations in more than twenty countries and territories around the world. CURRENT TRADING & PROSPECTS The Board is encouraged with the Company's progress and believes that it canbuild upon the success in the UK and start to generate revenues internationally. The current financial year has started well and the Board remains confidentabout the Company's future prospects. Footnotes * 2007 2006Profit on ordinary activities before taxation £7,959,752 1,960,324Less: exceptional profit on sale of discontinued operations ( £4,056,923) - Less: exceptional income (331,268)Profit before taxation and exceptional items £3,902,829 1,629,056 ** The profit basis for adjusted earnings per share has been calculated to includeonly continuing operations and to exclude the impact of exceptional items. Areconciliation between profit for the financial year and the profit used tocalculate the adjusted earnings per share figures is shown below. 2006 2007 £ £Profit for the financial year 9,445,845 2,048,278 _________ _________ 2006 exceptional item - (331,268)Profit on sale of a discontinued operation (4,056,923) -Discontinued operations: operating profit (221,038) (333,519) interest receivable (11,628) (13,123) _________ _________Adjusted profit 5,156,256 1,370,368 _________ _________ Deferred tax credit (1,491,830) -Adjusted profit (from continuing operations, excluding deferred tax 3,664,426 1,370,368credit) _________ _________ Preliminary announcement of results for the year ended 31 March 2007 Consolidated profit and loss account 2007 2006 Restated (Note 4) £ £TurnoverContinuing operations 14,171,896 10,177,457Discontinued operations 4,616,585 4,238,656 __________ __________Total Turnover 18,788,481 14,416,113Cost of sales (8,179,828) (6,982,244) __________ __________Gross profit 10,608,653 7,433,869Distribution costs (116,605) (106,179)Administrative expenses (6,912,267) (5,523,966) __________ __________Operating profit 3,579,781 1,803,724Operating profit - continuing operations 3,358,743 1,138,937Exceptional item - continuing operations - 331,268Operating profit - discontinued operations 221,038 333,519Operating profit 3,579,781 1,803,724Profit on sale of discontinued operations 4,056,923 -Interest receivable and similar income 323,755 158,723Interest payable and similar charges (707) (2,123) __________ __________Profit on ordinary activities before taxation 7,959,752 1,960,324Current tax on ordinary activities (5,737) 93,350Deferred tax credit 1,491,830 - __________ __________Total tax on profit on ordinary activities 1,486,093 93,350 __________ __________Profit on ordinary activities after taxation 9,445,845 2,053,674Minority interests - (5,396) __________ __________Profit for the financial year 9,445,845 2,048,278 __________ __________ Basic and diluted earnings per share from continuing 5.2 1.4operations (pence)*Adjusted basic and diluted earnings per share from 3.7 1.4continuing operations (pence)**, excluding in 2007 a1.5p per share deferred tax creditBasic and diluted earnings per ordinary share (pence) 9.6 2.1 __________ __________ The accompanying notes are an integral part of this consolidated profit and loss account. *Excludes exceptional items, the profit on the sale of NavTrak and net interest receivable of £11,628 (2006 -£13,123) relating to discontinued operations. **Excludes exceptional items, the profit on the sale of NavTrak, net interest receivable of £11,628 (2006 -£13,123) relating to discontinued operations and the impact of a deferred tax credit of £1,491,830. Consolidated statement of total recognised gains and losses 2007 2006 Restated (Note 4) £ £Profit for the financial year 9,445,845 2,048,278Currency translation difference (1,649) 1,858 __________ __________Total recognised gains and losses relating to the year 9,444,196 2,050,136 __________ __________ Consolidated balance sheet at 31 March 2007 2007 2006 Restated (Note 4) £ £Fixed assetsIntangible assets 684,838 617,812Tangible assets 932,997 659,746 __________ __________ 1,617,835 1,277,558 __________ __________Current assetsStocks - 374,998Debtors- due within one year 6,182,635 4,300,432- due after more than one year 98,337 40,000Cash at bank and in hand 11,571,102 5,697,498 __________ __________ 17,852,074 10,412,928Creditors: Amounts falling due within one year (3,291,283) (4,434,618) __________ __________Net current assets 14,560,791 5,978,310 __________ __________Total assets less current liabilities 16,178,626 7,255,868 Creditors: Amounts falling due after more than one year (61,396) (601,991) Provisions for liabilities and charges - (54,459) __________ __________Net assets 16,117,230 6,599,418 __________ __________Capital and reservesCalled-up share capital 5,230,270 5,230,270Share premium account 38,070,740 38,070,740Profit and loss account (27,440,187) (36,888,816)Other reserve 256,407 178,025 __________ __________Equity shareholders' funds 16,117,230 6,590,219Minority interests - equity - 9,199 __________ __________Total capital employed - equity 16,117,230 6,599,418 __________ __________ Consolidated cash flow statement for the year ended 31 March 2007 Note 2007 2006 £ £Net cash inflow from operating activities 2 4,774,220 1,765,284 __________ __________Returns on investments and servicing of financeInterest element of finance lease rental payments (707) (2,123)Interest received 323,755 158,723 __________ __________Net cash inflow from returns on investments and servicing of finance 323,048 156,600 __________ __________TaxationForeign tax paid (18,205) (20,300)Research and development taxation credit 23,856 127,124 __________ __________Net cash inflow from taxation 5,651 106,824 __________ __________Capital expenditurePurchase of tangible fixed assets (894,958) (489,566)Sale of tangible fixed assets 17,749 -Purchase of intangible fixed assets (381,820) - __________ __________Net cash outflow from capital expenditure (1,259,029) (489,566)DisposalsProceeds on sale of subsidiary 3Costs of disposal (164,484) -Net cash balances disposed of with subsidiary undertaking (4,153) -Repayment of loans owed by subsidiary 2,199,997 __________ __________Net cash inflow from disposals 2,031,363 - __________ __________Cash inflow before financing 5,875,253 1,539,142 __________ __________FinancingProceeds on issue of shares - 771,847Capital element of finance lease rental payments - (28,690) __________ __________Net cash inflow from financing - 743,157 __________ __________Increase in cash in the year 3 5,875,253 2,282,299 __________ __________ Reconciliation of movements in group shareholders' funds for the year ended 31 March 2007 2007 2006 Restated (Note 4) £ £Profit for the financial year 9,445,845 2,048,278Other recognised gains and losses relating to the year (1,649) 1,858Proceeds on issue of shares - 771,847FRS 20 share option charge 82,815 26,128 __________ __________Net addition to Group shareholders' funds 9,527,011 2,848,111Opening shareholders' funds 6,590,219 3,742,108 __________ __________Closing shareholders' funds 16,117,230 6,590,219 __________ __________ Notes 1. Basis of Preparation The financial information set out in this preliminary announcement does not constitute the Group's statutoryaccounts for the years ended 31 March 2006 or 2007, but is derived from those accounts. Statutory accounts forthe year ended 31 March 2006 have been delivered to the Registrar of Companies. The auditors have reported on the accounts for the years ended 31 March 2007 and 2006: their reports wereunqualified and did not contain a statement under section 273(2) or (3) of the Companies Act 1985. The financial information set out in this preliminary announcement has been prepared on the basis of theaccounting policies as stated in the accounts for the year ended 31 March 2006, except for the adoption ofFRS20 (see note 4). A copy of the annual report and accounts will be circulated to all shareholders of the company shortly andcopies will also be available for members of the public upon application to the registered office at FifthFloor, Station House, Stamford New Road, Altrincham, WA14 1EP and on the website www.itisholdings.com. 2. Reconciliation of operating profit to net cash inflow from operating activities 2007 2006 Restated (Note 4) £ £ Operating profit 3,579,781 1,803,724Depreciation and amortisation of licenses 840,023 552,934Decrease (increase) in stocks 55,190 (21,447)Increase in debtors (1,145,813) (1,322,584)Increase in creditors 1,500,496 867,563Decrease in provisions (54,459) (141,034)Profit on disposal of fixed assets (998) -Adoption of FRS 20 26,128 __________ _________Net cash inflow from operating activities 4,774,220 1,765,284 __________ _________ 3. Reconciliation of net cash flow to movement in net funds 2007 2006 £ £ Increase in cash in the year 5,875,253 2,282,299Cash outflow from decrease in lease financing - 28,690 __________ __________Change in net funds resulting from cash flows 5,875,253 2,310,989Translation differences (1,649) 1,858 __________ __________Movement in net funds in the year 5,873,604 2,312,847Net funds brought forward 5,697,498 3,384,651 __________ __________Net funds carried forward 11,571,102 5,697,498 __________ __________ 4. Restatement of comparative figures FRS 20, Share-based Payment, was adopted in the year. FRS 20 requires the group to recognise a charge in theProfit and Loss account and a credit in equity to reflect the fair value of outstanding share options issued toemployees. Share compensation charges have been recognised in the period and the comparative periods have beenrestated to include a similar charge. 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