16th Oct 2006 07:00
Ultrasis PLC16 October 2006 16 October, 2006 Ultrasis plc Final results for the year ended 31 July 2006 Ultrasis, the provider of computer-delivered, interactive healthcare productsand associated services, announces its preliminary results for the year ended 31July 2006. Highlights • Turnover ahead 37% to £1,243k (2005: £907k) • Pre-tax loss reduced by 45% to £188,000 (2005: £342,000) • Net cash of £197,000 (2005: negative net cash £492,000) • NICE recommendation of core CCBT product "Beating the Blues" for use in NHS • Pilot contracts to provide "Beating the Blues" as part of the Department of Work and Pensions (DWP) Initiative to get people off incapacity benefits • Successful completion of Healthstar acquisition of strategic importance to Ultrasis Nigel Brabbins, Chief Executive, said: "In a year in which we have achieved successful landmarks, we have also recordedour best financial results to date. Against a background of growing demand forour services, and potential opportunities in the wider healthcare market andcorporate sector, we believe we are making considerable progress, and lookforward with confidence to the future." Further information: Ultrasis plcNigel Brabbins +44 (0) 20 7566 [email protected] Media enquiries: Capital MS&LPeter Curtain / Halina Kukula +44 (0) 20 7307 [email protected] Chairman and Chief Executive's Statement Your Group has enjoyed a successful year of further positive development.Consolidated turnover of £1,243,000 shows a 37% increase on 2005 (£907,000),other administrative expenses growing by only 22%, resulting in an operatingloss of £188,000 (2005: £342,000). There are no exceptional revenues in thisresult, making this the Group's best financial performance to date.Significantly, this improvement in performance has taken place against abackdrop of extremely difficult market conditions in the second half, while theNHS restructuring of important customers, Primary Care Trusts (PCTs) - reducedfrom 300 to 152 - was being completed and whilst budget overspends across theNHS were being addressed. In spite of disruption in a key market some key developments have taken placethis year, the culmination of which we expect to have an impact on the long termsuccess of your Group's business: The DoH white paper "Our Care, Our Health, OurSay", released Jan 30th 2006 confirmed its support of PCTs in ensuringsuccessful implementation of any Computer delivered Cognitive BehaviouralTherapy (CCBT) packages recommended by the National Institute of Health andClinical Excellence (NICE). On February 22nd 2006, NICE recommended our coreCCBT product "Beating the Blues" for use in the NHS to manage mild and moderatedepression. This was followed in April by an invitation from the Department ofHealth to take part in talks to implement this guidance across the NHS by March2007. These have been protracted due to the restructuring and budget issues,referred to above, but constructive talks continue and we remain confident of apositive outcome shortly. We were delighted to be able to announce recently two new pilot contracts, toprovide "Beating the Blues" as part of the Condition Management Programmes inthe North West of England. These pilot contracts further extend the involvementof Ultrasis in a key government initiative aimed at helping people claimingincapacity benefits return to work. We were pleased to receive another independent endorsement of "Beating the Blues" in the July edition of the Journal of Primary Care Mental Health. TheSwindon Primary Care Psychology and Counselling Service has clearly demonstratedin a one year study that "Beating the Blues" led to significant improvements indepression, anxiety and general health in clients referred to the service. Significantly, in the light of calls to provide CBT centres across the country,Beating the Blues has achieved a landmark in the CBT department in Chelmsford,with well over 600 patients treated over 6 years. The majority of patientsrequire no further therapy and the waiting list for CBT has been significantlyreduced. In January we were pleased to secure the conversion of the outstanding £826,000nominal of 6% convertible unsecured loan stock with the consequential allotmentof 165,000,000 ordinary shares. This released the Group from a significantannual interest liability and the potential future cash outflow had theconvertibles had to be redeemed on maturity. Completion of conversion confirmedinvestors' long term belief in Ultrasis. Your Group is now debt free and withGroup sales income comfortably expected to cover costs, is well positioned toexploit growth opportunities. In March we announced we were entering into a Scheme of Arrangement undersection 425 of the Companies Act for the acquisition of Healthstar Plc,successfully completed on 16th May, with the issue of 127,349,992 Ultrasisshares for the entire issued share capital of Healthstar plc. This acquisitionwas of strategic importance to Ultrasis as the rights to sell products direct tothe consumer were reacquired. Along with the assets acquired - including a cashbalance and a fully developed stress management product - Ultrasis now has theability to match its success in the public sector by also addressing the privatesector retail market This year also saw the completion, by Agilisys, a strategic partner, of the "Online" version of "Beating the Blues". This gives us increased reach andprovides greater flexibility and points of access for users. Agilisys is aleading business process service provider with which we have entered a strategicpartnership to further develop the market for our products and provide improveddelivery options. The successful relationship with Managed Health Networks (MHN) in the USAcontinues and further opportunities are being sought to develop the US market. Results for the year to 31st July 2006 In the year to 31st July 2006 the Group's recognised revenues from ordinaryoperating activities were £1,243,000, (2005: £907,000). The operating loss forthe period is £188,000 (2005: £342,000). Gerald Malone Nigel BrabbinsNon-Executive Chairman Chief Executive Consolidated Profit And Loss Account Year ended 31 July 2006 2006 2005 £000 £000Turnover - software licensing and services 1,243 844- advance royalties and development work re: Mindtech Licence - 63 ________ ________ 1,243 907 Cost of sales (17) (19) ________ ________Gross profit 1,226 888 Administrative expenses- other (1,414) (1,162)- exceptional costs associated with move to AIM - (68) ________ ________ (1,414) (1,230) Operating loss (188) (342) ________ ________ - loss on the disposal of fixed assets (10) (84) ________ ________ Loss on ordinary activities before interest (198) (426) Finance charges (net) (79) (150) ________ ________ Loss on ordinary activities before taxation (277) (576)Tax on loss on ordinary activities (2) - ________ ________ Loss on ordinary activities after taxation (279) (576) ________ ________ Retained loss for the year (279) (576) ________ ________Loss per shareBasic (0.02) p (0.06) pDiluted (0.02) p (0.06) p * Results for both years all resulted from continuing operations. Consolidated balance sheet as at 31 July 2006 2006 2005 £000 £000Fixed assetsIntangible assets 2,497 -Tangible assets 43 48 __________ __________ 2,540 48 __________ __________Current assetsStock 28 -Debtors 429 206Cash at bank and in hand 872 440 __________ __________ 1,329 646Creditors: amounts falling due within one year (1,029) (582) __________ __________Net current assets 300 64 __________ __________Total assets less current liabilities 2,840 112Creditors: amounts falling due after more than (96) (738)one year including convertible debt __________ __________Net assets/(liabilities) 2,744 (626) __________ __________Capital and reservesCalled-up share capital 1,478 1,165Share premium account 21,104 20,085Capital reduction reserve 6,650 6,650Merger Reserve 2,324 -Profit and loss account (28,812) (28,526) __________ __________Equity shareholders' funds / (deficit) 2,744 (626) __________ __________ The financial statements were approved by the board of directors on 13th October2006 and were signed on its behalf by: N BrabbinsDirector Consolidated cash flow statement for the year ended 31 July 2006 2006 2005 £000 £000Net cash inflow/(outflow) from operating 292 (399)activitiesReturns on investments and servicing of finance 8 (53)Taxation - -Capital expenditure (10) (40)Acquisitions (93) - __________ __________Net cash inflow / (outflow) before management of 197 (492)liquid resources and financingFinancing 235 738 __________ __________Increase in cash in the year 432 246 __________ __________ Reconciliation of operating loss to net cash outflow from operating activities 2006 2005 £000 £000Operating loss (188) (342)Depreciation charge 19 34Fees settled in shares 145(Increase) /Decrease in debtors (223) 200Increase/(Decrease) in creditors 539 (291) __________ __________Net cash outflow from operating activities 292 (399) __________ __________ Analysis of cash flows 2006 2005 £000 £000Returns on investments andservicing of financeInterest received 14 8Interest paid (6) (61) __________ __________Net cash inflow/(outflow) 8 (53) __________ __________ TaxationTaxation Paid - -Tax Credit Received - - AcquisitionsAcquisition costs (215)Healthstar Group Plc - Cash acquired 122 __________ __________Net cash outflow (93) - __________ __________ Capital expenditure and financialinvestmentPurchase of tangible fixed assets (10) (40) __________ __________Net cash outflow (10) (40) __________ __________FinancingIssue of share capital 235 738 _________ __________Net cash inflow 235 738 __________ __________ Analysis and reconciliation of net funds 1 August Non-cash 31 July 2005 Cash flow movement 2006 £000 £000 £000 £000Cash in hand and at 440 432 - 872bank __________ _________ 440 872Debt due after one year (738) - 738 - __________ _________Net (debt)/funds (298) 432 738 872 _________ _________ _________ _________ 2006 2005 £000 £000 Increase in cash in the year 432 246 __________ __________Change in net funds/(debt) resulting from cash flows 432 246Other non-cash changes 738 426 __________ __________Movement in net funds in year 1,170 672Net debt at 1 August (298) (970) __________ __________Net funds/(debt) at 31 July 872 (298) __________ __________ Note to the preliminary statement Nature of financial information: The financial information set out in the announcement does not constitute thecompany's statutory accounts for the years ended 31 July 2006 or 31 July 2005.The financial information for the year ended 31 July 2005 is derived from thestatutory accounts for that year which have been delivered to the Registrar ofCompanies. The auditors reported on those accounts; their report was unqualifiedand did not contain a statement under Article 243(3) of the Companies (NorthernIreland) Order, 1986. The accounts have been prepared on the historical cost basis. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Ultrasis Plc