19th Jun 2006 07:00
Appian Technology PLC19 June 2006 Appian Technology plc / Ticker: ATT / Market: AIM / Sector: Technology 19 June 2006 Appian Technology plc ('Appian' or 'the Company') Interim Results Appian Technology plc ('Appian' or 'the Company'), the AIM-traded provider ofAutomatic Number Plate Recognition systems ('ANPR') and traffic managementproducts and solutions, announces its results for the six month period to 31March 2006. Overview: • Turnover up 35 per cent. to £1,941,253 (March 2005: £1,435,170) • Gross Profit up by 27 per cent. to £991,890 (March 2005: £780,967) • Strong pipeline of new contracts with various blue-chip clients and governmental bodies • Strong order book • Raised £460,000 before expenses in November 2005 through a placing of 9,200,000 shares at 5.0p per share to meet additional working capital requirements • Admitted to trading on AIM on 4 January 2006 following a placing of 41,580,000 new ordinary shares at 5.0p raising £2.08 million before expenses Chairman's Statement It gives me pleasure to announce our Interim Results for the period ended 31March 2006. For the six months ended 31 March 2006 we incurred a post tax loss of £107,333,which is a substantial improvement on the loss of £339,267 reported for the sameperiod last year. Turnover for the period increased by 35 per cent. to£1,941,253 (March 2005: £1,435,170) and gross profit increased by 27 per cent.to £991,890 (March 2005: £780,967). We are confident that this trend is set tocontinue. As reported in the trading statement made on 13 April 2006 we have madesignificant progress in all aspects of the business, which has been reflected inthe improvement in our financial performance for the half year and theincreasing flow of new business both in the UK and internationally. The demandfor ANPR products continues to increase and with the strengthening of ourbalance sheet and the move to AIM in early January, I believe we are well placedto build substantial shareholder value. We have invested in focusing the business on our core markets and implementingour sales and marketing strategy, to fully maximise the sales potential of ourANPR technology both in the UK and internationally. The success of our strategy has been highlighted by an increase in orders andthe contract wins announced in recent months. The level of interest andenquiries for large scale projects continues to be strong. Significant contract wins in the reporting period include a £300,000 order toequip police cars with the Talon ANPR system with a major UK Metropolitan PoliceForce, which we believe reinforces our opinion that there is a rapid roll-out ofANPR across the UK police market and is an acknowledgement of ANPR being anessential crime fighting tool. In addition, Appian has also secured a £285,000order from another major UK police force to assist them in improving securitymeasures. Furthermore the Company has won a £626,000 contract to install Talon ANPRtechnology into a number of UK ports, where it will be integrated, together withits imaging equipment into other systems. The contract is for the initial phaseof a multi year project which is being sponsored by the UK Government. The totalorder intake to date on this project is in excess of £780,000. This not onlyreinforces Appian's position as a market leader but also highlights the strengthof Appian's product. Internationally, Appian has continued to make progress particularly in NorthAmerica where we secured an £80,000 order to equip the Royal Canadian MountedPolice and Vancouver Police Department with Talon and the Board anticipatefurther orders from Canadian law enforcement agencies over the next two years. Since the period end Appian has secured £335,000 of orders to install the Talonsystems in 12 UK seaports and a major UK international airport and a £500,000international contract for counter terrorist roadside installations using ANPRin a Mediterranean country where our technology will be part of a nationalsecurity system which will be used for counter terrorist and general policingapplications. Appian has developed a range of "best in class" high technology proprietaryproducts for the automatic number plate recognition, vehicle identification,traffic management, parking guidance and car park management for surveillance,counter terrorism, access control and congestion charging markets. Our contractwins have been primarily in competitive tenders and we are frequently thepreferred choice amongst government bodies, local authorities and companies dueto the quality of Appian's equipment. I believe that this bodes well for thefuture. In January we moved from Ofex to AIM, which I believe was a significant move forthe Company, primarily as it provided increased credibility, particularlyinternationally. During the process we raised an additional £2.08 million beforeexpenses from a placing at 5p per ordinary share. This additional injection ofcash not only considerably improved the Company's balance sheet and cashposition, but has also allowed Appian to implement its marketing strategy, theearly results of which have been seen from the contract wins referred to above. To maintain our competitive advantage, product development is continuing in linewith market requirements. Management has been strengthened in the Company'soperations department, which is responsible for delivery, R&D and maintenance. The heightened issue of security across the world is increasing the need for ourtechnology and expertise. The Company is focused on the policing and trafficsectors and with the threat to security, initiatives to improve the productivityof policing, the rise in vehicle numbers and the trend towards implementation ofroad user charging, we believe we are well positioned to continue our growth andcreate significant value for our shareholders. For the reasons outlined above I look forward to the future with optimism. Patrick RyanChairman APPIAN TECHNOLOGY PLCConsolidated Profit & Loss AccountFor the six months ended 31 March 2006 Unaudited Unaudited Audited 6 months 6 months 12 months ended ended ended 31-Mar-06 31-Mar-05 30-Sep-05 £ £ £ Turnover 1,941,253 1,435,170 2,902,294 Cost of Sales (949,363) (654,203) (1,477,056) Gross Profit 991,890 780,967 1,425,238 Operating Expenses (1,160,726) (1,186,486) (2,399,271) Operating loss before depreciation and amortisation (168,836) (405,519) (974,033) Amortisation & Depreciation (12,495) (11,549) (25,064) Operating Loss (181,331) (417,068) (999,097) Interest (12,002) (4,251) (24,289) Loss before tax (193,333) (421,319) (1,023,386) Taxation - R&D Tax Credit 86,000 82,052 82,052 Loss after tax (107,333) (339,267) (941,334) Basic and diluted loss per share (Pence) (0.12) (0.60) (1.61) APPIAN TECHNOLOGY PLCConsolidated Balance SheetAs at 31 March 2006 Unaudited Unaudited Audited 31-Mar-06 31-Mar-05 30-Sep-05 £ £ £ Fixed assetsTangible assets 30,387 57,052 42,606Total Fixed Assets 30,387 57,052 42,606 Current assetsDebtors 1,771,367 1,430,828 1,203,948Stock 512,253 431,325 477,837Cash at bank and in hand 1,253,513 173,085 3,710Total Current Assets 3,537,133 2,035,238 1,685,495 Creditors - Amounts falling due within one year (2,023,957) (1,902,493) (2,105,529) Net current assets 1,513,176 132,745 (420,034) Total assets less current liabilities 1,543,563 189,797 (377,428) Creditors - Amounts falling due after more than one year (212,850) (87,456) (117,436) Capital and reservesCalled up share capital 1,164,275 656,475 656,475Share premium account 8,374,785 6,949,675 6,949,675Profit and loss account (8,208,347) (7,503,809) (8,101,014) Shareholders' funds 1,330,713 102,341 (494,864) APPIAN TECHNOLOGY PLCConsolidated Cash Flow StatementFor the six months ended 31 March 2006 Unaudited Unaudited Audited 6 months 6 months 12 months ended Ended ended 31-Mar-06 31-Mar-05 30-Sep-05 £ £ £ Net cash outflow from operating activities (583,818) (578,771) (850,566) Return on investments and servicing of finance (12,002) (4,251) (24,289) Taxation - - 82,052 Capital expenditure and finance investments (276) (31,243) (30,312) Financing 1,919,736 436,449 460,009 Increase/(decrease) in cash in the period 1,323,640 (177,816) (363,106) APPIAN TECHNOLOGY PLC NOTES TO THE INTERIM RESULTS For the period ended 31 March 2006 1 BASIS OF PREPARATION The interim results have been prepared in accordance with applicable accountingstandards and under the historical cost convention. The principal accounting policies of the group are set out in the group's 2005annual report and financial statements. The policies have remained unchangedfrom the previous annual report other than the adoption of the presentationrequirements of FRS 25 'Financial instruments: disclosure and presentation' asset out below. FRS 25: Presentation and disclosure FRS 25 requires financial instruments to be presented in accordance with theirsubstance. The company's accounting policy on financial instruments is set outbelow. Financial instruments Financial liabilities and equity instruments are classified according to thesubstance of the contractual arrangements entered into. An equity instrument isany contract that evidences a residual interest in the assets of the entityafter deducting all of its financial liabilities. Where the contractual obligations of financial instruments (including sharecapital) are equivalent to a similar debt instrument, those financialinstruments are classed as financial liabilities. Financial liabilities arepresented as such in the balance sheet. Finance costs and gains or lossesrelating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on theoutstanding liability. Where the contractual terms of share capital do not have any terms meeting thedefinition of a financial liability then this is classed as an equityinstrument. Dividends and distributions relating to equity instruments aredebited direct to equity. The interim financial statements have been reviewed by the company's auditors. Acopy of the auditors' review report is attached to this interim report. 2 LOSS PER ORDINARY SHARE The calculation of the basic loss per share is based on the loss attributable toordinary shareholders divided by the weighted average number of shares in issueduring the year. Loss per share has been calculated on the "net basis". Unaudited Unaudited Audited 6 months 6 months 12 months ended ended ended 31-Mar-06 31-Mar-05 30-Sep-05 Loss after taxation (£) 107,333 339,267 941,334Ordinary shares in issue during the period 87,651,120 56,539,732 58,599,240 Loss per ordinary 1 p share (pence) 0.12 0.6 1.61 3 NET CASH OUTFLOW FROM OPERATING ACTIVITIES Unaudited Unaudited Audited 6 months 6 months 12 months Ended ended ended 31-Mar-06 31-Mar-05 30-Sep-05 £ £ £ Operating loss (181,331) (417,068) (999,097)Depreciation 12,495 9,411 22,926Amortisation of goodwill and intangibles - 2,138 2,138(Increase) in stock (34,416) (38,088) (84,599)(Increase) in debtors (481,419) (468,242) (323,417)Increase in creditors 100,853 333,078 531,483 Net cash outflow from operating activities (583,818) (578,771) (850,566) 4 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS/ (DEBT) Unaudited Unaudited Audited 6 months 6 months 12 months ended ended ended 31-Mar-06 31-Mar-05 30-Sep-05 £ £ £ Change in net funds/(debt) resulting from cash flows 1,323,640 (177,816) (363,106)Inception of finance leases (7,166) (19,251) (24,266) Movement in net funds/(debt) in the period 1,316,474 (197,067) (387,372)Net (debt)/funds at 1 October (387,101) 271 271 Net funds/(debt) 31 March 929,373 (196,796) (387,101) 5 SHARE CAPITAL On 11 November 2005 the Company issued 9,200,000 ordinary shares of £0.01 eachat a price of £0.05 per share, yielding £460,000. On 4 January 2006 the Company issued 41,580,000 ordinary shares of £0.01 each ata price of £0.05 per share, yielding £2,079,000, upon the Company's admission toAIM. The difference between the total consideration and the nominal value of theshares issued has been credited to the share premium account. Issue costs of£606,090 have been debited to the share premium account. 6 PUBLICATION OF NON-STATUTORY ACCOUNTS The financial information set out in this interim report does not constitutestatutory accounts as defined in section 240 of the Companies Act 1985. Thefigures for the year ended 30 September 2005 have been extracted from thestatutory financial statements which have been filed with the Registrar ofCompanies. The auditors' report on those financial statements was unqualifiedand did not contain a statement under Section 237(2) of the Companies Act 1985. INDEPENDENT REVIEW REPORT TO APPIAN TECHNOLOGY PLC Introduction We have been instructed by the company to review the financial information forthe six months ended 31 March 2006 which comprises the consolidated profit andloss account, consolidated balance sheet, consolidated cash flow statement andthe related notes 1 to 6. We have read the other information contained in theinterim report which comprises only the Chairman's statement and consideredwhether it contains any apparent misstatements or material inconsistencies withthe financial information. Our responsibilities do not extend to any otherinformation. This report is made solely to the company in accordance with guidance containedin APB Bulletin 1999/4 "Review of Interim Financial Information". Our reviewwork has been undertaken so that we might state to the company those matters weare required to state to it in a review report and for no other purpose. To thefullest extent permitted by law, we do not accept or assume responsibility toanyone other than the company for our review work, for this report, or for theconclusion we have formed. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. They areresponsible for preparing the interim report and ensuring that the accountingpolicies and presentation applied to the interim figures are consistent withthose applied in preparing annual accounts except where any changes, and thereasons for them, are disclosed. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4"Review of Interim Financial Information" issued by the Auditing Practices Boardfor use in the United Kingdom. A review consists principally of makingenquiries of management and applying analytical procedures to the financialinformation and underlying financial data and, based thereon, assessing whetherthe accounting policies and presentation have been consistently applied unlessotherwise disclosed. A review excludes audit procedures such as tests ofcontrols and verification of assets, liabilities and transactions. It issubstantially less in scope than an audit performed in accordance with UnitedKingdom auditing standards and therefore provides a lower level of assurancethan an audit. Accordingly, we do not express an audit opinion on the financialinformation. REVIEW CONCLUSION On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 31 March 2006. GRANT THORNTON UK LLPChartered AccountantsOxfordDate: 19 June 2006 * * ENDS * * For Enquiries: Pat Ryan Appian Technology plc Tel: 01628 554750Hugo de Salis St Brides Media and Finance Ltd Tel: 020 7242 4477 Notes to Editors: Appian Technology plc, which joined AIM on 4 January 2006, provides high techproducts for automatic number plate recognition ('ANPR'), vehicleidentification, modern traffic management, parking guidance and car parkmanagement problems for the surveillance, counter terrorism, access controland congestion charging markets. Key products are Talon ('ANPR') andNavigator PGI (parking guidance information system). In 2003 the Companyintroduced TalonSP, a software based version with all the functionality ofTalon, which is capable of running a number of cameras on any modern PCplatform. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Applied Nutri