25th Apr 2006 07:01
Synchronica PLC25 April 2006 Embargoed, for release at 0700h, 25 April 2006 Synchronica plc ("Synchronica" or "the Company") Preliminary Results for the Year to 31 December 2005 London, 25 April 2006 - Synchronica, an international developer and provider ofmobile device management and synchronisation solutions, announces itspreliminary results for the year to 31 December 2005. Summary o Fundamental restructuring of the business and its products largely completed, new management team in place under CEO Carsten Brinkschulte. o Acquisition and integration of Berlin based Synchronica GmbH - technology portfolio substantially expanded. o Successful fundraising to secure £5 million. o Revenues in line with stock market expectations at £3.1million (2004: £2.4 million). o Year end cash balances of £6.6 million, £5.6 million at 31 March 2006. John Gunn, Chairman, said, "We are making progress towards our priority goal ofrestoring value to shareholders. Everyone at Synchronica is playing their partin this process and I thank all of them, on behalf of the Board andshareholders, for the effort and dedication they bring to achieving our newbusiness goals." Commenting, Carsten Brinkschulte, Chief Executive Officer, said, "We are makingprogress; I am pleased to report that the restructuring is on course and alreadyhaving a positive effect on the business. We now have a focused suite ofproducts, all with significant competitive advantages, and we are gaining markettraction. I am confident the Company's financial performance will improve in2006." For more information please visit www.synchronica.com or contact: Carsten Brinkschulte, Chief Executive Officer Simon Hudson/Clemmie CarrNicole Meissner, Chief Marketing Officer Tavistock CommunicationsSynchronica plc Tel: +44 20 7920 3150Tel: +44 1580 830 033 / +44 7966 477 256 Synchronica plc - Preliminary Results for the Year Ended 31 December 2005 Chairman's Statement 2005 was a year of considerable positive change for Synchronica (formerly DATGroup) as we moved from being a consultancy-led business to a products ledbusiness; during the year we: • acquired Synchronica GmbH and the rights to all its technologies on31st March 2005 for €1.35 million. • identified and addressed weaknesses in the Board and management teams,appointing a new CEO, Carsten Brinkschulte, a new COO, Terry Page, a new NonExecutive Deputy Chairman David Wickham and in April 2006 a new CFO, Angus Dent,to replace the retiring CFO Allan Jonnes. • addressed a lack of focus in our customer offering by focusing in fourcore areas, where we believe we have significant competitive advantage and wherethe market is growing; • SyncML Gateway, • SyncML DM (Device Management) Server • Mobile Manager(previously known as Enterprise Assistant), and • ROM Builder together with any consultancy services associated withthem. • invested, and this process is continuing, in the development,marketing and sales of each of these products. • successfully raised £5.0 million (net) of new funds through a placingof 17.7 million new shares. • developed and maintained relationships with a number of the largestplayers in the mobile communications industry worldwide. • delivered results for 2005 in line with revised Stock Marketexpectations. As a result of these actions, we have entered 2006 with considerable cashbalances of £6.6 million (2005: £5.5 million) and, we believe, justifiedoptimism that the business can progress and that we can achieve our prioritygoal of rebuilding shareholder value. Everyone at Synchronica is playing theirpart in this process and I thank all of them, on behalf of the Board andshareholders, for the effort and dedication they bring to achieving our newbusiness goals. As previously announced, the Board intends to elect David Wickham to theposition of chairman following the AGM, when I will step down from the positionbut remain on the Board as a non-executive director. John Gunn 24 April 2006 Synchronica plc - Preliminary Results for the Year Ended 31 December 2005 Summarised Consolidated Profit and Loss Account Continuing Operations Total TotalYear to 31 December Note Existing Acquisitions 2005 2004 £'000 £'000 £'000 £'000 Group turnover 1 2,541 537 3,078 2,424Total operating loss (2,898) (2) (2,900) (2,271)Net interest receivable /(payable) 166 (105) --- ---Loss on ordinary activitiesbefore taxation (2,734) (2,376)Tax on loss on ordinaryactivities 2 4 406 --- ---Loss for financial year (2,730) (1,970) === === Basic and diluted loss perordinary share 3 (12.5)p (14.7)p === === Summarised Reconciliation of Movements in Consolidated Shareholder's Funds 2005 2004 £ '000 £ '000 Loss for the period (2,730) (1,970)Net proceeds of share issues 5,046 8,095Capital to be issued 173 - ------------------ ------------ 2,489 6,125 Opening shareholders' funds/(deficit) 5,093 (1,032) ------------------ ------------Closing shareholders' funds 7,582 5,093 ================== ============ Synchronica plc - Preliminary Results for the Year Ended 31 December 2005 Summarised Consolidated Balance Sheet At 31 December 2005 2004 £ '000 £ '000 Fixed assetsIntangible assets and goodwill 862 -Tangible assets 100 108 ------------------ ------------------ 962 108 Current assetsStocks and work in progress 19 29Debtors 888 663Cash at bank and in hand 6,615 5,512 ------------------ ------------------ 7,522 6,204 Creditors: Amounts falling due within one (902) (1,203)year ------------------ ------------------Net current assets 6,620 5,001 ------------------ ------------------Total assets less current liabilities 7,582 5,109 Creditors: Amounts falling due after more - (16)than one year ------------------ ------------------Net assets 7,582 5,093 ================== ================== ------------------ ------------------Capital and reserves 7,582 5,093 ================== ================== Synchronica plc - Preliminary Results for the Year Ended 31 December 2005 Summarised Consolidated Cash Flow Statement Year ended 31 December 2005 2004 Note £ '000 £ '000 Net cash outflow from operating 4 (3,518) (1,726)activitiesReturns on investment and servicing 149 (119)of financeTaxation (6) 410Capital expenditure and financial (178) (41)investmentAcquisitions (349) - ------------------ ------------------Net cash flow before financing (3,902) (1,476) Financing 5,005 6,970 ------------------ ------------------Increase in cash 1,103 5,494 ================== ================== Synchronica plc - Preliminary Results for the Year Ended 31 December 2005 Notes 1. Turnover by Geographical Market 2005 2004 £ '000 £ '000 United Kingdom 341 874European and other foreign markets 628 437North America 2,109 1,113 ------------------ ------------------ 3,078 2,424 ================== ================== 2. Taxation 2005 2004 £ '000 £ '000Current taxationOverseas corporation tax credit / (charge) 2 (4)Research and development tax credit - 410 2 406Adjustment in respect of prior years:Overseas corporation tax credit 2 - Current taxation 4 406 3. Loss per Share The loss per ordinary share has been calculated based on the weighted averagenumber of ordinary shares in issue during the year. 2005 2004 Loss for the financial period £(2,730,000) £(1,970,000)Weighted average number of ordinary shares 21,777,390 13,375,672Basic and diluted loss per ordinary share (12.5)p (14.7)p 4. Reconciliation of Operating Loss to Net Cash Outflow From OperatingActivities 2005 2004 £ '000 £ '000 Operating loss (2,900) (2,271)Amortisation of intangible assets 114 -Depreciation of tangible assets 98 83Loss/(Profit) on sale of tangible fixed 5 (1)assetsChange in stocks 10 27Change in debtors (194) 264Change in creditors (651) 172 ------------------ ------------------Net cash outflow from operating activities (3,518) (1,726) ================== ================== 5. Preliminary Statement This preliminary statement was approved by the Board on 24 April 2006. It is notthe Company's statutory accounts. The statutory accounts for the period ended 31December 2004 have been delivered to the Registrar of Companies and received anaudit report which was unqualified and did not contain statements under s237(2)or (3) of the Companies Act 1985. A copy of this preliminary statement is available from the Company Secretary atthe Company's registered office: Synchronica plc, Bodiam Business Park, JunctionRoad, Bodiam, East Sussex, TN32 5UP. A copy of the 2005 Report and Accounts, containing notice of the forthcomingannual general meeting, will be posted to shareholders in May and will also beavailable from the Company's registered office. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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