9th Jun 2005 07:00
Electronic Data Processing PLC09 June 2005 9 June 2005 Electronic Data Processing PLC (EDP) Interim results - 6 months to 31 March 2005 EDP is the largest IT solution provider to the UK independent Builders andTimber Merchants market place and a leading supplier to the wholesaledistribution industry. Financial Highlights • Group pre-tax profit for period, before goodwill amortisation, £273,000 (2004: £606,000, before net exceptional items and goodwill amortisation). • Profit before tax £193,000 (2004: £549,000) reflecting continuing tough trading conditions in the sector. • Turnover £3.5 million (2004: £4.3 million). • Recurring revenues represent 71% of total revenues. • Continued demand for Business Intelligence software product. • Further action to be taken to reduce cost base. • Interim dividend maintained at 0.713p per share. Michael Heller, Chairman of EDP, said: "Although trading conditions in the sector remain tough, with a significantpipeline of business and our competitive software product portfolio I lookforward to a satisfactory outcome for the year as a whole." -Ends- For further information please contact: Richard Jowitt Julian WassellChief Executive Financial Director0114 262 2007 0114 262 2007 www.edp.fastfreenet.com Toby Mountford / Sebastian Hoyle Citigate Dewe Rogerson 020 7638 9571 Chairman's Statement Group pre-tax profit for the period, before goodwill amortisation, was £273,000(2004: £606,000 before net exceptional items & goodwill) reflecting thecontinuing tough trading conditions in the sector. The goodwill charge of£80,000 relates to the acquisitions of Disys & BCT in 2000 where that goodwillis being amortised over 5 years and will be wholly written off by 30 September2005. Profit before tax was £193,000 (2004: £549,000). Group sales for the period were £3.5 million compared with £4.3 million in thecorresponding period. Contracted recurring revenues, the majority of whichrelate to Group software products, represent 71% of turnover. Licence sales of Quantum VS myViewpoint, the Group's Business Intelligence &Decision Support Solution, have continued successfully. With Reseller Partnersnow established in Australia and Asia we expect further licence sales as theseterritories begin to produce results. Quantum VS XML Highway, the XML BusinessDocument Transmission and System Integration Tool Set, has not yet achieved theLicence sales growth anticipated, although further significant implementationshave been completed. Both these software deliverables are leading edge,platform independent, Java based technology product sets, which form animportant element of the Group's next generation software portfolio. Recent benchmarking results of the latest Intel Xeon MP and IBM Power PCmicroprocessor based hardware technology platforms show that the pricecompression over the past ten years in computing power/performance & capacity,is now some 99%. The cost base of your Group is too high as is reflected in the above results,and steps have been taken and continue to be taken to reduce that cost base, sothat the direction of the Group will be almost exclusively that of a supplier ofsoftware products, associated services and application hosting services. The Group's investment in Research & Development has continued with expenditureof some £834,000 during the period (2004: £854,000), all of which has beenwritten off to Profit & Loss. The Group's balance sheet remains strong with net assets of £13.2 million (2004:£14.8 million) having accounted for the Special Dividend in respect of the fullyear 2004 of £1.2 million. Cash balances at 31 March 2005 were £6.5 million,but before payment of the Special Dividend. Your Directors have resolved to pay an interim dividend of 0.713p per share, thesame as last year, and this dividend will be paid on 1 August 2005 to thoseshareholders on the register on 1 July 2005. The shares will be ex-dividend on29 June 2005. Although trading conditions in the sector remain tough, with a significantpipeline of business and our competitive software product portfolio I lookforward to a satisfactory outcome for the year as a whole. MICHAEL HELLER Chairman 8 June 2005 Consolidated Profit and Loss AccountFor the 6 months ended 31 March 2005 Unaudited Unaudited Audited 6 months 6 months Accounts to to year to 31.3.05 31.3.04 30.9.04 £'000 £'000 £'000 Turnover 3,472 4,323 8,319 ________ ________ ________ Operating profit before exceptional items andgoodwill amortisation 119 497 981 Goodwill amortisation (80) (80) (160) Exceptional charges (note 4) - (64) (124) ________ ________ ________Operating profit 39 353 697 Profit on disposal of property - 87 89 Net interest receivable 154 109 246 ________ ________ ________Profit on ordinary activities before taxation 193 549 1,032 Tax on profit on ordinary activities (86) (79) (396) ________ ________ ________Profit on ordinary activities after taxation 107 470 636 Dividends (174) (174) (1,800) ________ ________ ________(Loss) / profit for the period (67) 296 (1,164) ________ ________ ________ Earnings per share - basic and diluted 0.44p 1.93p 2.61p ________ ________ ________Earnings per share before exceptionalitems and goodwill amortisation (note 5) 0.77p 2.19p 3.36p ________ ________ ________Dividends per share 0.713p 0.713p 7.376p ________ ________ ________Net assets per share 54.2p 60.5p 54.5p ________ ________ ________ Consolidated Balance Sheetat 31 March 2005 Unaudited Unaudited Audited at at at 31.3.05 31.3.04 30.9.04 £'000 £'000 £'000Fixed assetsIntangible assets 174 322 269Tangible assets 9,856 10,261 10,068 ________ ________ ________ 10,030 10,583 10,337Current assetsStocks 289 346 308Debtors 2,454 3,066 2,512Investments 17 23 17Cash at bank and in hand 6,513 6,272 6,320 9,273 9,707 9,157 ________ ________ ________Creditors: amounts falling due within one year (3,292) (2,673) (3,462) ________ ________ ________Net current assets 5,981 7,034 5,695 ________ ________ ________Total assets less current liabilities 16,011 17,617 16,032 Provisions for liabilities and charges (111) (20) (87) Deferred income (2,663) (2,835) (2,641) 13,237 14,762 13,304 ________ ________ ________Capital and reservesCalled up share capital 1,220 1,220 1,220Share premium account 77 77 77Revaluation reserve 917 928 922Capital redemption reserve 88 88 88Profit and loss account 10,935 12,449 10,997 ________ ________ ________ 13,237 14,762 13,304 ________ ________ ________ Consolidated Cash Flow Statementfor the 6 months ended 31 March 2005 Unaudited Unaudited Audited 6 months 6 months Accounts to to year to 31.3.05 31.3.04 30.9.04 £'000 £'000 £'000 Net cash inflow from operating activities (note 6) 133 887 1,435Returns on investments and servicing of finance 121 110 246Taxation (23) - 3Capital expenditure and financial investment (37) (447) (505)Equity dividends paid - - (580)Management of liquid resources (note 7) 5,663 (374) (425) ________ ________ ________Increase in cash 5,857 176 174 ________ ________ ________ Reconciliation of net cash flow to movement in net funds Unaudited Unaudited Audited 6 months 6 months Accounts to to year to 31.3.05 31.3.04 30.9.04 £'000 £'000 £'000 Increase in cash 5,857 176 174Cash (inflow from) / outflow to short-term deposits (5,663) 374 425 ________ ________ ________Change in net funds from cash flows 194 550 599Exchange differences (1) (4) (5) ________ ________ ________Movement in net funds 193 546 594Net funds at 1 October 6,320 5,726 5,726 ________ ________ ________Net funds at 31 March / 30 September 6,513 6,272 6,320 ________ ________ ________ Statement of Total Recognised Gains and Lossesfor the 6 months ended 31 March 2005 Unaudited Unaudited Audited 6 months 6 months Accounts to to year to 31.3.05 31.3.04 30.9.04 £'000 £'000 £'000 Profit for the period 107 470 636 Currency translation differences onforeign currency net investments - (21) (18) _______ ________ ________Total recognised gains and losses 107 449 618 _______ ________ ________ Notes (1) The interim results to 31 March 2005, which are unaudited, have been prepared in accordance with the accounting policies to be adopted in the Group's next annual accounts, which are the same as those policies used in the preparation of the accounts for the year ended 30 September 2004. (2) The comparative figures for the financial year ended 30 September 2004 are not the Company's statutory accounts for that financial year but are derived therefrom. Those accounts have been reported on by the Company's auditor and delivered to the Registrar of Companies. The independent auditor's report was unqualified and did not contain a statement under Section 237(2) or (3) of the Companies Act 1985. (3) The taxation charge is derived from the Directors' best estimate of the annual tax rate applied to the result for the period. The tax rate for the period differs from the standard rate of corporation tax in the UK of 30% mainly due to ineligible goodwill amortisation. (4) Exceptional charges Unaudited Unaudited Audited 6 months 6 months Accounts to to year to 31.3.05 31.3.04 30.9.04 £'000 £'000 £'000 Reorganisation and redundancy costs - 64 124 _______ ________ ________ (5) Earnings per share is calculated by dividing the profit after tax of £107,000 (2004: £470,000) by 24,402,362 (2004: 24,402,362) being the average number of shares in issue during the period. Basic and diluted earnings per share are both 0.44p (2004: 1.93p). Earnings per share before exceptional items and goodwill amortisation is calculated by dividing the profit for the period after tax, but excluding the effect of exceptional items and goodwill amortisation, of £187,000 (2004: £534,000) by 24,402,362 (2004: 24,402,362) being the average number of shares in issue during the period, and is reconciled to basic earnings per share as follows: Unaudited Unaudited Audited 6 months 6 months Accounts to to year to 31.3.05 31.3.04 30.9.04 Basic earnings per share 0.44p 1.93p 2.61p Exceptional items (note) - (0.09p) 0.14p Tax effect of exceptional items - 0.03p (0.04p) Goodwill amortisation 0.33p 0.32p 0.65p _______ ________ ________ Adjusted earnings per share 0.77p 2.19p 3.36p _______ ________ ________ Note Exceptional items incorporate those charges detailed in note 4 which are stated before operating profit together with the exceptional profit on disposal of property which is disclosed separately after operating profit in accordance with FRS 3. (6) Reconciliation of operating profit to net cash inflow from operating activities Unaudited Unaudited Audited 6 months 6 months Accounts to to year to 31.3.05 31.3.04 30.9.04 £'000 £'000 £'000 Operating profit 39 353 697 Depreciation and amortisation 339 329 640 Changes in working capital and other non-cash items (245) 205 98 _______ ________ ________ Cash inflow from operating activities 133 887 1,435 _______ ________ ________ (7) The Group's bank deposits have been re-analysed in accordance with FRS 1 as cash, as opposed to short-term deposits, as they are now available on demand. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Electronic Data Processing