7th Apr 2005 07:00
IS Solutions PLC07 April 2005 IS Solutions Plc. Preliminary Results For the year ending 31st December 2004 Statement by the Chairman, Barrie Clark The 2004 results were in line with expectations with turnover for the full yearat £5.514 million (2003: £5.985 million) and profit (pre-tax, pre-goodwill andbefore profit from sale of investments) of £97k (2003:loss £190k). Earnings pershare (excluding goodwill amortisation and sale of investments) were 0.54 pence(2003: loss 0.90 pence) with net assets at 31st December 2004 standing at £2.500million (2003: £2.954 million). Net cash increased in the year to £1.910 millionas at 31st December 2004 (2003: £1.551 million). At the half year the Board was pleased to announce the reinstatement of adividend payment of 0.1 pence per share reflecting both the improving tradingconditions and the strong balance sheet and cash position of the Company. Thesecond half trading has continued in the same vein and the cash has againimproved; the Board therefore is recommending a final dividend of 0.2 pence pershare giving 0.3 pence per share for the full year. Subject to shareholders'approval at the AGM, to be held on the 26th May 2005, this dividend will be paidon the 2nd June to shareholders on the register at close of business on the 13thMay 2005. The market for project work showed signs of recovery through 2004. Although theaverage value of new projects remained low the number of projects startedincreased slightly over 2003. Throughout the year we continued to focus onproduct led sales around our analytics offering (our 'EyeSite' brand) andthrough this have opened up a number of new client accounts , some of which haveled to project work. The recurring revenue streams from Outsourced services and Financial feedscontinue to cover a substantial proportion of overheads, allowing the company toinvest in other areas of growth for the future. Personnel Over the last four years we have built up a very experienced and stableworkforce which has allowed us to improve the efficiency of delivery of projectsand services. The Board would like to express its appreciation and thanks to allemployees for their support through the whole of 2004. Outlook In the light of the recent history of our industry and the advent of 'offshore' competition for project work, it is our intention to return to growth bycontinuing to broaden our product and software portfolio (either by license oracquisition) leading to a broader customer base into which to sell our services.In particular we are focused on identifying software and services that cannot beput off shore for implementation and are in the process of signing an agreementwith one such company. 7th April 2005 Consolidated Profit and Loss Account for the year ended 31st December 2004 Notes 2004 2003 Total Total £'000 £'000 Turnover 1 5,514 5,985Cost of sales (3,038) (3,412)Gross profit 2,476 2,573Distribution costs (1,709) (1,977)Administration expenses (including amortisation of goodwill (1,160) (1,272)£429,000 (2003: £453,000))Operating loss (393) (676) Profit on sale of discontinued operation - 3 Profit on sale of investments 15 455Loss on ordinary activities before interest (378) (218)Interest receivable and other similar income 61 30 Profit before goodwill amortisation 112 265 Amortisation of goodwill (429) (453)Loss on ordinary activities before taxation (317) (188)Tax on loss on ordinary activities 72 (42)Loss on ordinary activities after taxation (245) (230)Equity minority interests (34) 9Loss for the financial year (279) (221)Equity dividends (73) -Transferred from reserves (352) (221) Earnings per ordinary share 2 Basic (1.13)p (0.89)p Before goodwill amortisation 0.61p 0.94p Diluted (1.13)p (0.89)p Proposed dividend 0.30p - There are no material differences between reported profits and losses andhistorical profits and losses on ordinary activities before tax. Statement of total recognised gains and losses 2004 2003 £'000 £'000Loss for the year (279) (221)Currency translation differences - (15)Total recognised gains and losses (279) (236) Consolidated Balance Sheet as at 31st December 2004 2004 2003 £'000 £'000 £'000 £'000Fixed assetsIntangible assets 107 591Tangible assets 299 319Investments - 4 406 914Current assetsDebtors 1,437 1,505Cash at bank and in hand 1,910 1,551 3,347 3,056CreditorsAmounts falling due within one year (1,272) (1,069)Net current assets 2,075 1,987Total assets less current liabilities 2,481 2,901Equity minority interests 19 53Net assets 2,500 2,954 Capital and reservesCalled up share capital 496 496Share premium account 1,783 2,133Profit and loss account 323 325Treasury share reserve (102) -Equity shareholders' funds 2,500 2,954 Consolidated cash flow statement for the year ended 31st December 2004 Notes 2004 2003 £'000 £'000 Net cash flow from operating activities 3 523 16Returns on investments and servicing of financeInterest received 61 30Net cash flow from returns on investmentsand servicing of finance 61 30Taxation - 48Capital expenditure and financial investmentPurchase of tangible fixed assets (129) (125)Sale of tangible fixed assets 12 20Purchase of treasury shares (102) -Sale of investments 19 480Net capital expenditure and financial investment (200) 375Acquisitions and disposalsSale of subsidiary - 3Net income from acquisitions and disposals - 3Equity dividends paid (25) -Change in cash in the year 359 472 Reconciliation of net cash flow to movement in net funds 2004 2003 £'000 £'000Change in cash in the year 359 472Translation differences - (15)Movement in net funds in the year 359 457Net funds at 1st January 1,551 1,094Net funds at 31st December 1,910 1,551 1 Segmental information 2004 2003 £'000 £'000Turnover by origin and destinationUK 5,514 5,964USA - 21 5,514 5,985Loss before taxationUK (317) (221)USA - 33 (317) (188)Net assetsUK 2,500 3,426USA - - 2,500 2,954 2 Earnings per ordinary share 2004 2003Loss for the financial year (£'000s) (279) (221)Total issued shares excluding treasury shares (000s) 23,993 24,793Weighted average number of ordinary shares (000s) 24,723 24,793Basic earnings per share (1.13)p (0.89)pDiluted earnings per share (1.13)p (0.89)p Earnings per ordinary share have been calculated using the weighted averagenumber of shares in issue during the relevant financial periods. The weightedaverage number of equity shares in issue, excluding treasury shares, is24,723,244 (2003: 24,793,190) and the earnings, being loss after tax andminority interests are £(279,000) (2003: £(221,000)). 2004 2003 £'000 £'000Earnings used for calculation of basic and diluted (279) (221)EPSGoodwill amortisation 429 453Earnings used for calculation of EPS before goodwill 150 232amortisation 3 Reconciliation of operating loss to net cash flow from operatingactivities 2004 2003 £'000 £'000Operating loss (393) (676)Net depreciation charge 192 258Amortisation of goodwill 429 453Decrease in debtors 101 329Increase/(decrease) in creditors 194 (266)Decrease in provisions - (82)Net cash flow from operating activities 523 16 4 The financial information set out above does not constitute thecompany's statutory accounts for the years ended 31st December 2003 and 2004,but is derived from those accounts. Statutory accounts for 2003 have beendelivered to the registrar of companies, and those for 2004 will be deliveredfollowing the company's annual general meeting. The auditors have reported onthose accounts: their reports were unqualified and did not contain statementsunder section 237(2) or (3) of the Companies Act 1985. 5 It is anticipated that the report and accounts will be posted toshareholders on 3rd May 2005. Further copies will be available after that datefrom the company's registered 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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