30th Mar 2007 15:34
IS Solutions PLC30 March 2007 Issued by Citigate Dewe Rogerson Ltd, BirminghamDate: Friday, 30 March 2007 IMMEDIATE RELEASE IS Solutions plc Amendment to Record Date The issuer has advised that the following amendment should be made to the ISSolutions plc Preliminary Results issued today at 7.00am under RNS No. 0424U. The final dividend of 0.33 pence per share will be paid on 24 May 2007 toshareholders on the register at close of business on the 27 April 2007 not aspreviously stated 28th April 2007. Amended press release appears below:- All other details remain unchanged. Issued by Citigate Dewe Rogerson Ltd, BirminghamDate: Friday, 30 March 2007 Embargoed: 7.00am IS Solutions plcPreliminary Resultsyear ended 31 December 2006 Turnover £6.9 million (2005 : £5.1 million) + 36% Pre-tax profit pre-amortisation £309,000 + 39%(2005 : £222,000 before a £114,000 bad debt charge) Reported profit before tax £286,000 (2005: £108,000) +165% Diluted earnings per share 1.16 pence (2005 : 0.35 pence) + 231% Final dividend proposed of 0.33 pence (2005: 0.27 pence) + 22% Successful integration of Candric, acquired March 2006 - contributing to Group profits Successful projects during the year include:Two web based major projects completed for Toshiba'Social Network' (web based community driven portal) for a Welsh County BoroughCouncil CHAIRMAN, BARRIE CLARK SAID:"Last year we concentrated on top line growth and achieved a 36% increase yearon year. This financial year, whilst still looking to achieve top line growth,we are also looking to improve the gross profit (and therefore net profit) bydriving for a greater proportion of Project revenues derived from Productlicense sales. "The first quarter has got off to a good start in this direction with a numberof substantial contracts being won based around Adobe and Watchfire Productlicense sales. "This, coupled with the successful integration of Candric, leads the Board to beoptimistic about the year ahead." FULL STATEMENT ATTACHED Enquiries:John Lythall, Managing Director Fiona TooleyIS Solutions Plc Citigate Dewe Rogerson LtdTel: 01932 893333 Tel: 0121 455 8370www.issolutions.co.uk -2- IS Solutions plc Preliminary Results year ended 31 December 2006 STATEMENT BY THE CHAIRMAN, BARRIE CLARKTurnover for the full year increased by 36% to £6.9 million (2005: £5.1 million)and was in line with the Board's expectations. The pre-tax, pre intangibleamortisation (£23,000) profits rose by 39% to £309,000 (2005 : £222,000, statedbefore a £114,000 bad debt charge). Reported profit before tax increased to£286,000 (2005: £108,000). Diluted earnings per share were 1.16 pence (2005 : 0.35 pence) with net assetsat 31st December 2006 standing at £ 2.8 million (2005: £2.6 million). Cash andcash equivalents as at 31st December 2006 stood at £1.6 million (2005: £2.1million). The reduction in cash balances at the year end was due to the purchaseof Candric, an element of the consideration being in cash, and the investment inthe Product areas, discussed below. The cash position has increasedsubstantially since the year end. At the half year the Board was pleased to announce an interim dividend paymentof 0.17 pence per share reflecting both the improving trading conditions and thestrong balance sheet and cash position of the Group. The second half tradingcontinued in the same vein; the Board therefore is recommending a final dividendof 0.33 pence per share giving 0.5 pence per share for the full year (2005: 0.4pence), an increase of 25%. Subject to shareholders' approval at the AGM, to beheld on the 17th May 2007, this dividend will be paid on the 24th May 2007 toshareholders on the register at close of business on the 27th April 2007. In March 2006 we purchased Candric Ltd., a small IT Services business based inWindsor, with turnover of £697,000 and a small pre-tax loss of £11,000 in itslast financial year. This business has now been relocated into our Head Officein Sunbury. This move, coupled with other cost savings, has allowed it to startcontributing to Group profits. Candric was bought for a total consideration of£200,000 (made up of £150,000 cash and £50,000 in shares). The purchase ofCandric has strengthened our recurring revenue stream and given us a broaderbase from which to grow our Support Service revenues. The Product side of the business grew strongly last year, particularly from ourrelationship with Adobe. Our traditional web based Project side also grew as wecompleted two major projects for our long standing client Toshiba and broadenedour relationship with Toyota by completing our first project for their FinanceDivision. Last year also saw the completion of our second 'Social Network' (webbased community driven portals) for a Welsh County Borough Council and the startof our third. PersonnelOnce again the Board would like to express its appreciation and thanks to allemployees for their support through the whole of 2006. It is the teamwork andcommitment to quality shown by our employees that has allowed us to build thestrong and sustainable relationships we have with our clients and suppliers. OutlookLast year we concentrated on top line growth and achieved a 36% increase year onyear. This financial year, whilst still looking to achieve top line growth, weare also looking to improve the gross profit (and therefore net profit) bydriving for a greater proportion of Project revenues derived from Productlicense sales. The first quarter has got off to a good start in this direction with a number ofsubstantial contracts being won based around Adobe and Watchfire Product licensesales. The above, coupled with the successful integration of Candric, leads the Boardto be optimistic about the year ahead. -3- IS Solutions plc Preliminary Results Consolidated income statement for the year ended 31st December 2006-------------------------------------------------------------------------------- 2006 2005 £'000 £'000--------------------------------------------------------------------------------Continuing operations Revenue 6,909 5,085 Cost of sales (4,560) (2,652)--------------------------------------------------------------------------------Gross profit 2,349 2,433 Distribution costs (1,280) (1,453) Administration expenses (908) (971)--------------------------------------------------------------------------------Profit from operations 161 9 Investment revenues 99 99 Other gains and losses 26 ---------------------------------------------------------------------------------Profit before tax 286 108 Tax - (20)--------------------------------------------------------------------------------Profit for the period attributable to equity holders 286 88-------------------------------------------------------------------------------- Earnings per share ---------------------------- Basic 1.18 p 0.37 p Diluted 1.16 p 0.35 p-------------------------------------------------------------------------------- Consolidated statement of changes in equity-------------------------------------------------------------------------------- 2006 2005 £'000 £'000--------------------------------------------------------------------------------Profit for the year 286 88--------------------------------------------------------------------------------Total recognised income and expense for the year 286 88Purchase of own shares (11) -Sale of own shares 50 -Dividends (107) (79)--------------------------------------------------------------------------------Change in shareholders' equity for the year 218 9Shareholders equity at start of year 2,601 2,592--------------------------------------------------------------------------------Shareholders' equity at end of year 2,819 2,601-------------------------------------------------------------------------------- -4- IS Solutions plc Preliminary Results Consolidated balance sheet as at 31st December 2006-------------------------------------------------------------------------------- 2006 2005 £'000 £'000--------------------------------------------------------------------------------Non-current assets Goodwill 254 100 Other intangible assets 37 - Property, plant and equipment 185 223 Deferred tax assets 22 --------------------------------------------------------------------------------- 498 323--------------------------------------------------------------------------------Current assets Trading investments - 75 Trade and other receivables 1,754 999 Cash and cash equivalents 1,563 2,087-------------------------------------------------------------------------------- 3,317 3,161--------------------------------------------------------------------------------Total Assets 3,815 3,484--------------------------------------------------------------------------------Current liabilities Trade and other payables (989) (863) Tax liabilities - (20)-------------------------------------------------------------------------------- (989) (883)Non-current liabilities Deferred tax liabilities (7) ---------------------------------------------------------------------------------Total liabilities (996) (883)--------------------------------------------------------------------------------Net assets 2,819 2,601--------------------------------------------------------------------------------Equity Share capital 496 496 Share premium account 1,786 1,783 Own shares (66) (102) Retained earnings 603 424--------------------------------------------------------------------------------Attributable to equity holders of the parent 2,819 2,601-------------------------------------------------------------------------------- -5- IS Solutions plc Preliminary Results Consolidated cash flow statement for the year ended 31st December 2006-------------------------------------------------------------------------------- 2006 2005 £'000 £'000--------------------------------------------------------------------------------Operating activities Profit from operations 161 9Adjustments for: Depreciation of property, plant and equipment 109 111 Gain on disposal of property, plant and equipment (1) (3) Amortisation of intangible assets 23 - Impairment of goodwill - 19 (Increase)/decrease in debtors (631) 405 Increase/(decrease) in creditors 41 (361)--------------------------------------------------------------------------------Cash (used in)/generated by operations (298) 180 Income taxes repaid - 33--------------------------------------------------------------------------------Net cash (used in)/from operating activities (298) 213--------------------------------------------------------------------------------Investing activities Interest received 69 75 Proceeds on disposal of trading investments 105 - Disposal of operations 26 - Purchase of tangible fixed assets (75) (61) Sale of tangible fixed assets 5 29 Acquisition of subsidiaries (238) ---------------------------------------------------------------------------------Net cash (used in)/from investing activities (108) 43--------------------------------------------------------------------------------Financing activities Dividends paid (107) (79) Purchase of own shares (11) ---------------------------------------------------------------------------------Net cash used in financing activities (118) (79)--------------------------------------------------------------------------------Net (decrease)/increase in cash and cash equivalents (524) 177 Cash and cash equivalents at start of year 2,087 1,910--------------------------------------------------------------------------------Cash and cash equivalents at end of year 1,563 2,087-------------------------------------------------------------------------------- -6- IS Solutions plc Preliminary Results 1 Business and geographical segments Business segments The group is involved solely in the supply of internet services. Geographical segments The group operates entirely within the UK Accordingly, in the opinion of the directors, the Group operates in only one segment, and therefore no segmental analysis is given. 2 Earnings per share 2006 2005 ---------------------- Earnings, being the net profit attributable to 286 88 equity holders of the parent (£'000) ---------------------- Weighted average of ordinary shares in issue 24,793,190 24,793,190 Weighted average of own shares (517,231) (800,000) ---------------------- Weighted average for the purpose of basic earnings 24,275,959 23,993,190 per share Effect of dilutive share options 418,750 950,000 ---------------------- Weighted average for the purpose of diluted 24,694,709 24,943,190 earnings per share ---------------------- 3 The financial information set out above does not constitute the Company'sstatutory accounts for the years ended 31 December 2006 or 2005, but is derivedfrom those accounts. Statutory accounts for 2005 have been delivered to theRegistrar of Companies, and those for 2006 will be delivered following thecompany's annual general meeting. The auditors have reported on those accounts;their reports were unqualified and did not contain statements under Section 237(2) or (3) of the Companies Act 1985. 4 The Annual General Meeting will be convened for Thursday 17th May 2007. 5 Copies of the Report and Accounts will be posted to Shareholders on 25th April2007 Further copies will be available after that date from the company'sregistered office: Windmill House, 91-93 Windmill Road, Sunbury-on-Thames,Middlesex, TW16 7EF. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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