Triad Regulatory News (TRD)

26 Jul 2005 12:42

Triad Group Plc26 July 2005 Chairman's statement Results Turnover for the year ended 31 March 2005 increased by 26.5% to £46.2 million(2004: £36.5 million); pre tax profits are £0.15 million (2004: £0.76 millionloss). Dividends The Board recommend that no final dividend be paid: no interim payment was made(2004: total dividend nil). Review of activities Market conditions in the resourcing side of the Company's business showsubstantial improvement over recent years and growth in this area during theyear has been encouraging. In the systems and consultancy areas during the yearthe level of business from one major government customer has declined steadilyand our current efforts are directed towards replacing that business. I amconfident that we shall be able to do this successfully as current marketconditions in the government area are strong, although I expect it to take somemonths before the results of our current efforts are reflected in theperformance figures. In addition to the government sector, we have excellentopportunities in commercial and institutional clients. The reduction in cash during the period reflects the increase in working capitalrequirements created by the rapid growth from the resourcing business, togetherwith slippage in credit collection performance. The auditors have indicated thatthey are likely to issue an unqualified opinion on the financial statements.Their report will however include a statement regarding accounting controlissues in the sales ledger function of the resourcing business for a period ofseveral months during the year and therefore that, in their opinion, properaccounting records as required by section 221 of the Companies Act 1985 have notbeen kept in all respects. Appropriate steps have been taken to address theseissues during the year and it has not impacted on the ability of the Company toprepare its financial statements. There have been no material bad debts. Staff attrition in our systems and consultancy areas is now extremely low and weare hiring high quality staff where appropriate. We have a core of highlyqualified and experienced staff, mainly composed of permanent employees who havebeen with the company for many years. This core should provide the platform forrapid growth in years to come. On 4 February 2005 the Group Chief Executive, Mira Makar, was suspended withimmediate effect. I have taken the position of acting CEO as well as ExecutiveChairman. Mira continues to be suspended on full pay. The Board will continue tomake efforts to resolve this situation as soon as possible. John RiggChairman26 July 2005 Profit and loss accountfor the year ended 31 March 2005 Unaudited Audited 2005 2004 £'000 £'000 Turnover 46,200 36,534Cost of sales (39,307) (31,803) ______ ______Gross profit 6,893 4,731Administrative expenses (6,755) (5,500) ______ ______ Operating profit/(loss) 138 (769) Net finance income 12 10 ______ ______Profit/(loss) on ordinary activities 150 (759)Before taxationTaxation on profit/(loss) on ordinary activities (30) (29) Dividends - - ______ ______Profit retained/(loss sustained) for the financialyear 120 (788) --------- ---------Basic profit/(loss) per ordinary share 0.79p (5.20)pDiluted profit/(loss) per ordinary share 0.77p (5.20)p --------- --------- Dividends per share 0.00p 0.00p --------- --------- The above figures relate entirely to continuing operations. The profit/(loss) onordinary activities before taxation and the retained profit/(sustained loss), asstated above, are prepared on a historical cost basis, and therefore noreconciliation to historical cost profit/(loss) is required. There are no recognised gains or losses except for the profit/(loss) for theyear as stated above, and therefore no separate statement of total recognisedgains or losses has been prepared. Balance sheetat 31 March 2005 Unaudited Audited 2005 2004 £'000 £'000 Fixed assetsTangible assets 908 730 ______ ______Current assets Debtors 12,145 7,555Cash at bank and in hand 104 3,244 ______ ______ 12,249 10,799Creditors: amounts falling due (6,782) (5,017)Within one year ______ ______Net current assets 5,467 5,782 ______ ______Total assets less current liabilities 6,375 6,512Provisions for liabilities and charges (2,006) (2,263) ______ ______Net assets 4,369 4,249 --------- --------- Capital and reservesCalled up share capital 151 151Share premium account 562 562Capital redemption reserve 104 104Profit and loss account 3,552 3,432 ______ ______Equity shareholders' funds 4,369 4,249 --------- --------- Cash flow statementfor the year ended 31 March 2005 Unaudited Audited 2005 2004 £'000 £'000 Net cash outflow from operating activities (2,578) (1,188) _____ _____Returns on investments and servicing of financeInterest received 50 91Interest paid (16) - ______ ______ 34 91Taxation UK corporation tax paid (13) - ______ ______Capital expenditure and financial investmentPurchase of tangible fixed assets (667) (510)Sale of tangible fixed assets 84 112 ______ ______ (583) (398) ______ ______ ______ ______Decrease in net cash (3,140) (1,495) --------- --------- Reconciliation of operating profit/(loss) to net cash flow from operatingactivities Unaudited Audited 2005 2004 £'000 £'000 Operating profit/(loss) 138 (769)Depreciation of tangible fixed assets 422 409Profit on sale of fixed assets (17) (15)Increase in debtors (4,620) (2,186)Increase in creditors 1,778 1,641Decrease in provisions (279) (268) ______ ______Net cash outflow from operating activities (2,578) (1,188) --------- --------- Notes 1. The financial information set out above has been prepared on the basisof the accounting policies set out in the statutory accounts for the year ended31 March 2005 and are consistent with those applied in the previous year. The financial information set out above does not constitute the company'saudited statutory accounts for the years ended 31 March 2004 or 2005. Thefinancial information for 2004 is derived from the statutory accounts for 2004which have been delivered to the registrar of companies. The auditors havereported on the 2004 accounts; their report was unqualified and did not containa statement under section 237(2) or (3) of the Companies Act 1985. The statutoryaccounts for 2005 will be finalised on the basis of the financial informationpresented by the directors in this preliminary announcement and will bedelivered to the registrar of companies following the company's annual generalmeeting. 2. The financial information set out above has been prepared in accordance withFinancial Reporting Standard Number 3. All items above relate to continuingoperations. 3. Profit/(loss) per ordinary share Profit/(loss) per share has been calculated on the profit/(loss) on ordinaryactivities after tax divided by the weighted average number of shares in issueduring the period based on the following: 2005 2004 Profit/(loss) on ordinary activities aftertaxation £120,000 £(788,000) -------------- -------------- Average number of shares in issue 15,149,579 15,149,579Effect of dilutive options * 504,600 - _________ _________Average number of shares in issue plusdilutive options 15,654,179 15,149,579 -------------- -------------- Basic profit/(loss) per share 0.79p (5.20)pDiluted profit/(loss) per share 0.77p (5.20)p --------- ---------* The share options have no dilutive effect in the previous year. 4. Profit and loss account Unaudited £'000 At 1 April 2004 3,432 Retained profit for the year 120 _____At 31 March 2005 3,552 ----- 5. The annual report and accounts will be sent to shareholders in due course.Further copies will be available from the company's registered office at WeysidePark, Catteshall Lane, Godalming, Surrey, GU7 1XE. This information is provided by RNS The company news service from the London Stock Exchange