Ultrasis Plc Regulatory News (ULT)

Ultrasis plc

("Ultrasis" or the "Company")

Interim Results for the six months ended 31 January 2014

Ultrasis, the provider of interactive health care services, announces its unaudited financial results for the six months ended 31 January 2014 (the "Interim Results"):

· Revenue of £475,000 (2013: £486,000)

· Loss before tax of £559,000 (2013: £632,000) including costs of approximately £100,000 regarding three completed acquisitions

· Substantial reduction in ongoing overheads

· Cash balances of £190,000 (2013: (restated) £372,000)

· The Group has unused loan facilities of £1,625,000

· Highlights of the period include:

o Completion of three acquisitions: Screenetics, Step Success and Waterloo Health Clinic

o Contract wins which, the Directors believe, have the potential to add over £10 million of income over the next three years which will begin to generate income later this year

o Creating a new joint venture company with the NHS: Ki Group, with a primary objective of creating public sector sales opportunities for Beating the Blues

o Launch of Beating the Blues 2.0 in the US following significant content and technology platform development

· Expecting further growth in the second half of this year as the Group moves towards profitability

John Smith, CEO commented "We are pleased with the substantial progress we have made in the first half and are delighted with our recent acquisitions which are now all integrated into the Group. We look forward to further progress in the second half and beyond."

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Notes to Editors:

Ultrasis is a healthcare company with core expertise in health, psychology, software development and programme management. We deliver a range of healthcare products to the consumer, the NHS, the corporate sector and other healthcare providers in the UK and Internationally. Ultrasis was the first company to offer computerised products based on Cognitive Behavioural Therapy (CBT) and interactive multimedia, and is still the world leader in this field.

Chief Executive's and Chairman's Statement

Overview

This has been a very active period for the Group which has seen progress in implementing the Board's strategy - to develop into a significant health and social care provider in the public and corporate sectors, return the Group to profitability through well targeted acquisitions and broaden our sales pipeline. Whilst we would have liked to see actual income grow much sooner we have established a solid platform of contracts which we believe will contribute regular revenue to the Group.

In the period we completed three acquisitions: Screenetics, Step Success and Waterloo Health Clinic and have quickly integrated the companies and their employees into the Group. This has seen the number of employees grow from 20 to 47. This growth in staff will continue as we win more contracts and expand our offering to new locations throughout the UK. We are currently targeting other acquisition opportunities with a view to complementing our range of on-line products.

Screenetics has recently won several major contracts with an estimated income value of more than £10 million 'phased in' over the next three years and we have begun the process of implementing the necessary infrastructure changes and securing the necessary resources to deliver the contracts. This has required initial "set-up" expenditure to ensure we have sufficient capacity in place to deliver our contractual obligations and ensure we maximise the contracts' income potential. We have a number of exciting opportunities for the Screenetics business and are confident of securing further sizable contracts in the near future.

The Waterloo Health Clinic acquisition came with existing forward contracts of £700,000 per annum and the team have focused their efforts to date on ensuring that these contracts are delivered to the highest quality standards and existing customers remain satisfied with the services being offered. We will now look to develop a strategy to expand the services the clinic provides, so increasing its contribution to Group revenue.

The public sector, and the NHS in particular, remains an important customer for our Beating the Blues programme and we have developed a new joint venture with Cheshire and Wirral Partnership NHS Foundation Trust called Ki Group. The primary focus of Ki Group is to target our sales efforts on the tender process that is now part of the NHS modus operandi of contracting and to ensure that Beating the Blues is included in as many tender responses as possible. These tenders are mainly for IAPT and Primary Care Mental Health services, where we have strong evidence to support the cost and clinical benefit of using Beating the Blues. We will move away from a license only model of sales and focus our efforts on selling Beating the Blues with telephone support as an integral part of a wider package of services. This model has successfully been implemented within Cheshire and Wirral Partnership NHS Trust and has been shown to deliver consistently high levels of engagement and positive clinical outcomes. This repositioning of Beating the Blues will take time to come to fruition but we are of the opinion that it is the right strategy to adopt for long term success of the programme.

We have completed the redevelopment of the content and the technology platform for Beating the Blues and recently launched the Beating the Blues 2.0 programme in the US and also released a white paper which set out the return on investment argument for the use of Beating the Blues in the US. This white paper which was written by Open Minds, a leading consultancy company in the US behavioural health market, included a 'cost savings calculator' to enable Health Insurers to estimate the potential savings of introducing Beating the Blues to their membership. Its release was supported by executive web briefings and as a direct consequence we have seen an increase in the number of sales enquiries and are actively involved in several sales opportunities. The US market has been much slower to adopt Beating the Blues than we anticipated, but there is growing evidence that the new version of the programme and the more focused sales initiative will increase the pace of sales.

Financials

The results for the 6 month period 1st August 2013 to 31st January 2014 show a pre-tax loss of £559,000 (2013: £632,000) and are in-line with the Boards forecasts. Cash is at £190,000 (2013: £372,000) and the Group continues to utilise the loan facility made available to it by Mr Paul Bell.

Outlook

The Board will continue to deliver its agreed strategy to become a provider of a wide range of health and social care services and will remain focused on growing the Group and returning it to profitability within the next 12 months. We will continue to identify and acquire companies that add value to this strategy and increase both the revenue and profitability of the Group. We are developing a strong sales pipeline and remain focused on winning higher value and strategically important contracts that offer the opportunity to deliver a wide range of high quality and evidence-based services. We will need to invest further resources in both our technology and our delivery infrastructure, so that we can remain competitive and be in a strong position to win new contracts.

Our employees are our greatest asset and we will continue to attract and recruit high quality people who want to be part of the Group and share our ambition - to become a key player in the wider health and social care market. We strongly believe that the Group has achieved a great deal in this period and are confident that this progress can be maintained.

John Smith - Chief Executive

Gerald Malone - Chairman

CONSOLIDATED statement of PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

 for the six months ended 31 January 2014

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the six months ended 31 January 2014

CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 31 January 2014

CONSOLIDATED CASH FLOW STATEMENT for the six months ended 31 January 2014

NOTES TO THE FINANCIAL INFORMATION for the six months ended 31 January 2013

1. Nature of financial information

The consolidated interim financial statements of Ultrasis comprise the result of the Company and its subsidiaries for the period 1 August 2013 to 31 January 2014. The financial information contained in this interim report does not constitute statutory accounts as defined by section 434 of the Companies Act 2006. The interim financial information is unaudited and incorporates unaudited comparative figures for the interim period 1 August 2012 to 31 January 2013 and extracts from the audited financial statements for the year to 31 July 2013 which have been restated to take into account changes regarding accounting for joint ventures introduced under IFRS11. The Group has also adopted IFRS10, IFRS12, IAS27 and IAS28. The financial information for the year ended 31 July 2013 set out in this interim report does not constitute the Company's statutory accounts for that period. The statutory accounts for the year ended 31 July 2013 have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified and did not contain a statement under either Section 498 (2) or Section 498 (3) of the Companies Act 2006. However, their report drew attention by way of emphasis to the basis of preparation of the financial statements.

The interim financial information has been prepared using accounting policies consistent with International Financial Reporting Standards (IFRS and IFRIC interpretations) issued by the International Accounting Standards Board ("IASB") as adopted for use in the EU. The interim financial information has been prepared on a basis consistent with the accounting policies disclosed in the Annual Report and Accounts for the year ended 31 July 2013 with the exception of the introduction of IFRS11.

2. Basic and Diluted loss per share

The calculation of diluted loss per share assumes conversion of all potentially dilutive ordinary shares, all of which arise from share options.

The calculations of loss per share are based on the following losses and numbers of shares: