Final Results

FOR RELEASE 7.00AM 8 MARCH 2006 ACCESS INTELLIGENCE PLC ('Access Intelligence or 'the Group') (A technology-based support services group which uses the power of internet-based information and communication technologies to deliver vital information and support services to a broad range of companies) PRELIMINARY RESULTS FOR THE FINANCIAL YEAR ENDED 30 NOVEMBER 2005 2005 2004 Change Â£000 Â£000 Turnover 1,943 543 358% Profit / (loss) before tax and amortisation of goodwill 175 (259) N/a Loss before tax (10) (381) N/a Basic earnings / (loss) per share (0.10p) (1.59p) N/a Adjusted earnings / (loss) per share 0.21p (1.02p) N/a Dividends per share Nil Nil N/a * Turnover adjusted for acquisitions up by 45% * Recurring revenue for current year around Â£2m p.a. * Capital raising of Â£2.8m net of expenses. * Net cash Â£603,000 (2004: net debt Â£224,000) * Two substantial acquisitions * + Ridgeway Technologies Limited for initial payment of Â£700,000 + Due North Limited for an initial payment of Â£1.5 million * Current trading in line with market expectations For further information: Access Intelligence plc 01904 520 840 Jeremy Hamer (Non Executive Chairman) Brendan Austin (Chief Executive) Colin Davies (Finance Director) Cubitt Consulting 020 7367 5100 Brian Coleman-Smith / Allison Reid / Nia Thomas Corporate Synergy 020 7448 4400 Rhod Cruwys / David Seal Background Note Who are we and what do we do? Access Intelligence is a group of companies, with operations in York, Newcastle-Upon-Tyne, Chorley in Lancashire and Stockport in Greater Manchester, delivering a range of business critical support services to private and public sector organisations. The team of directors, Jeremy Hamer, Brendan Austin, Colin Davies, Ian Savage and Alwin Thompson, has extensive experience in making successful acquisitions while simultaneously driving organic growth. In the two years since flotation, Access Intelligence has acquired and successfully integrated two businesses. The Group Today Today, Access Intelligence is a technology-based support services business. It harnesses the power of internet-based information and communication technologies (ICT) to deliver vital information and support services. Specifically these are: * Digital marketing services and business development support; * Online and offline data storage back-up and retrieval; * Sourcing and procurement software for both buyers and suppliers in industry and local government; and * Electronic news and current awareness digests of government initiatives, policies and finance affecting business, the professions and the public sector. The Business Model The majority of the Group's income is derived from repeat revenues delivered through recurring contracts ranging between one and five years. This model provides excellent visibility of future revenues and, with effective customer retention, outstanding gross margins over the longer term. The Strategy for Growth The strategy is to acquire businesses which have good management and high growth potential that fit the revenue model while, at the same time, adding value to the Group's existing services. The businesses acquired will have substantial autonomy to develop within budgets agreed with the Group Chief Executive and Finance Director, whilst benefiting from the experience and cross selling opportunities provided by being part of an expanding group of companies. At this stage of the Group's development, the Central Group Executive Team, which is based in York, will be kept to a maximum of four people, including support staff. The Non-Executive Directors will continue to be involved in sourcing and evaluating potential acquisitions and monitoring the performance of the Group. ACCESS INTELLIGENCE PLC PRELIMINARY RESULTS FOR THE FINANCIAL YEAR ENDED 30 NOVEMBER 2005 Chairman's statement I am very pleased to announce our results for the year ended 30th November 2005. This year has seen the Group transformed by both the fundraising we completed in December 2004 and the two acquisitions we made in June and July 2005. Together with the progress we have made in our core businesses this has been an excellent year. Results Group turnover was up by 358% to Â£1,943,000 (2004: Â£543,000). Turnover adjusted for acquisitions grew by 45%. Operating profit before amortisation has now moved into a profit of Â£175,000 (2004: Loss Â£259,000). Adjusted earnings per share improved significantly to 0.21p (2004: Loss per share of 1.02p). The Group is not proposing to pay a dividend on the ordinary shares. The dividend scheduled in the accounts is payable to the preference share holders. The Year in focus In December 2004 we raised Â£3,000,000 (Â£2,808,000 net) at 10p per share to accelerate our acquisition strategy. At the year-end we had net cash of Â£ 603,000 (2004: Net Debt Â£224,000). On June 27th 2005 we completed a reverse takeover of Ridgeway Technologies Limited ('Ridgeway Technologies'), a leading provider of managed data storage, retrieval and network solutions. The acquisition complemented the activities of Backup and Running plc ('Backup and Running') our online data storage and retrieval business. Ridgeway was purchased for a cash consideration of Â£650,000 and Â£50,000 in Access Intelligence shares. There were net cash balances at completion of Â£176,000. There is an earn-out payable in shares based upon 5 times profits in excess of Â£100,000 for the year ended December 2005 which is likely to result in the Group issuing a further Â£800,000 in Ordinary Shares. Since joining the Group Ridgeway and Backup and Running have been merged operationally enabling us better to exploit reseller channels and reduce costs by Â£75,000 annually. On the 6th July 2005 we completed the purchase of Due North Limited ('Due North') a leading software developer of e-commerce solutions predominantly in purchasing and procurement, to both public and private sectors. The consideration at completion was Â£1,000,000 in cash and Â£500,000 in Access Intelligence shares. There is an earn-out in place providing the vendors with 4 times 2006 operating profits in excess of Â£350,000 and 3 times 2007 operating profits in excess of Â£450,000. These payments will be predominantly share based. At this stage we have made a provision of Â£350,000 for additional payments. Our other two companies The Marketing Guild Limited ('Marketing Guild') who provide marketing and business development information and support to small and medium sized businesses and Wired Gov Limited ('Wired Gov') who provide an electronic distribution service of government initiatives, policies and finance affecting businesses, have both developed their offering significantly during the year. Our business model The Group's objective is to acquire and build businesses which provide services to corporates and the public sector by way of recurring revenue contracts lasting between one and five years. This model provides excellent visibility of future revenues and, with effective customer retention, outstanding gross margins over the longer term. On the first day of the new financial year we had approximately Â£2m of contracted recurring revenue for this year. Staff Our future prosperity is in large measure dependent on the ability and loyalty of our people. Their specialist knowledge and skills is key to providing our value added services to our customers. Staff turnover is low and we continue to attract high calibre people. On behalf of the board I would like to thank our employees for their continued commitment. Current Trading and Outlook We have begun the new year in line with market expectations. The markets where we compete are still buoyant and together with our continuing investment in technology and people development enable us to view the Group's outlook with optimism. We continue to look for further businesses to join the Group and are encouraged by the opportunities available to us. In conclusion we are looking forward to another significant step forward in 2006 founded on full year contributions from Ridgeway and Due North. Jeremy Hamer Chairman 8 March 2006 Chief Executives Review Looking back Last year we completed two strategic acquisitions. Both companies have strong management teams and operate in expanding markets. Ridgeway Technologies, which trades as Willow Starcom, supplies mission critical data storage, retrieval and network solutions to mid-sized corporate businesses. It sells its services predominantly through a reseller channel, which enables them to grow with a minimum increase in headcount. Currently more than 50% of its revenues are recurring. The acquisition has enabled us to move Backup and Running from York to Willow Starcom's premises in Chorley in Lancashire with the added advantages of using their channel to sell our online service and utilise its 24-hour support centre to service our existing customer base. Both sales forces are tightly integrated and are already supplying each other with sales opportunities. Due North, based in Newcastle-Upon-Tyne, develops business support software using industry standard platforms. Its e-procurement software is used widely in the local authority sector. It provides a complete closed loop solution which enables authorities to save money and increase operational efficiencies. The product suite enables any organisation to manage the complete customer supplier relationship from initial expression of interest, through tender evaluation, post tender negotiation - using its reverse auction software - contract award and management. Since joining the group Due North has nearly doubled its market penetration and has begun opening up opportunities in health, universities and the private sector. Wired Gov, based in Stockport in Greater Manchester, which uses its technology platform to provide government press releases to a growing subscriber base in both public and private sectors, has seen year on year growth of 10%. Subscriber retention rate is 94%, demonstrating the value its customers place on the service they receive. During the year it increased revenues from permission based advertising sponsorship by 86%. In 2006 the management plans to launch a newsletter to capitalise on that success to increase advertising and sponsorship revenues. The Marketing Guild, based at the head office in York, has continued to develop the Platinum Service offering increased benefits to members. During the year it has increased revenues by 34%. A new online service has been launched during the year with an encouraging response. The year ahead Market conditions look promising for our data storage and recovery division Willow Starcom and Backup and Running. The world network storage software market rose 10% year on year to reach $2.1bn in the third quarter of 2005. At the same time the back-up and archive market increased by 12.7% growth (IDC 2005). We believe this trend will continue as the increasing awareness of regulatory compliance among companies grows. Storage revenues are set to grow globally by 20% in 2006 and 18.5% in 2007. (EIU 2005). Legislation such as the Data Protection Act and the Freedom of Information Act will fuel this growth as will high press coverage of Basel II and the US initiated Sarbanes-Oxley legislation. E-mail archiving and retrieval is set to grow at an annual compound rate of 34.5% until 2009 (IDC 2005). We will launch Starscan, our managed e-mail scanning service, in May to support our e-mail retrieval capability to capitalise on this opportunity. We are increasing our sales resource and support infrastructure in support of this initiative. Due North is well positioned to take advantage of the efficiency targets and savings set out in the Gershon review of civil procurement, by building on its success in local authorities and emergency services. Additional sales resource has been invested to enable it to increase its share of the health service and universities markets. It continues to seek partners to help it exploit the private sector. In summary we have positioned ourselves to take advantage of the opportunities that are available to us following the restructuring of the Group and we remain confident, barring a major economic downturn, that we will have another successful year. Brendan Austin Chief Executive 8 March 2006 Finance Director's Review During the year we successfully raised Â£2.8m new equity net of expenses and introduced new institutions to our shareholder base. The fundraising allowed us to acquire two companies and start to build some critical mass within the Group. Although the Group has grown by acquisition our existing companies demonstrated organic growth of 45%, which is an excellent achievement. During the year we repaid all our bank loans and at the year-end had net cash of Â£603,000. The strategy of the Group is to focus on companies that have a high element of recurring revenue. We believe that this will underpin the quality of earnings and generate strong cash flow. At the start of the current financial year income from contracts, licences fees and subscriptions was approaching Â£2m. p.a. Colin Davies Finance Director 8 March 2006 ACCESS INTELLIGENCE PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE FINANCIAL YEAR ENDED 30 NOVEMBER 2005 Notes 2005 2004 Â£000 Â£000 Turnover Continuing operations 787 543 Acquisitions 1,156 - ----------- ----------- 1,943 543 Cost of sales (782) (290) ----------- ----------- Gross profit 1,161 253 Operating expenses Amortisation of goodwill (185) (122) Other operating expenses (1,061) (504) ----------- ----------- Total operating expenses (1,246) (626) Operating profit (loss) Continuing operations (21) (251) Acquisitions 121 - Amortisation of goodwill (185) (122) ----------- ----------- Operating (loss) (85) (373) Interest receivable 79 9 Interest payable (4) (17) ----------- ----------- (Loss) on ordinary activities before (10) (381) taxation Taxation 3 (50) 41 ----------- ---------- (Loss) for the financial year (60) (340) Dividends (16) - ----------- ----------- (Loss) transferred to reserves (76) (340) ====== ====== Basic earnings per share 2 (0.10p) (1.59p) ====== ===== Adjusted earnings per share 2 0.21p (1.02p) ====== ===== Diluted earnings per share 2 (0.10p) (1.53p) ====== ===== Diluted adjusted earnings per share 2 0.20p (0.98p) ====== ===== ACCESS INTELLIGENCE PLC CONSOLIDATED BALANCE SHEET AT 30 NOVEMBER 2005 Notes 2005 2004 Â£'000 Â£'000 Fixed assets Intangible 5 5,730 2,433 Tangible 123 83 ---------- ---------- 5,853 2,516 ---------- ---------- Current assets Stocks 277 14 Debtors 1,122 121 Cash at bank and in hand 603 31 ---------- ---------- 2,003 166 Creditors: amounts falling due within one (2,245) (361) year ---------- ---------- Net current ( liabilities)/assets (242) (195) ---------- ---------- Total assets less current liabilities 5,611 2,321 Creditors: amounts falling due after more than (150) (142) one year Net assets ---------- ---------- 5,461 2,179 ---------- ---------- Capital and reserves Called up share capital 508 332 Share premium account 5,369 2,187 Other reserves Profit and loss account (416) (340) ---------- ---------- Equity shareholders' funds 5,461 2,179 ---------- ---------- ACCESS INTELLIGENCE PLC CONSOLIDATED CASH FLOW STATEMENT FOR THE FINANCIAL YEAR ENDED 30 NOVEMBER 2005 Notes 2005 2004 Â£'000 Â£'000 Net cash outflow from operating activities (172) (540) --------- --------- Returns on investments and servicing of finance Interest paid (4) (17) Interest received 79 9 Dividends Paid (16) Net cash inflow/ (outflow) from returns on 59 ------- investments and servicing of finance (8) Taxation (24) - Capital expenditure and financial investment Purchase of intangible fixed assets (57) (98) Purchase of tangible fixed assets (92) (49) Net cash outflow from capital expenditure --------- --------- (149) (147) -------- -------- Acquisitions and disposals Purchase of subsidiary undertakings (1,971) (1,753) Net cash acquired with subsidiaries 276 --------- --------- Net cash outflow from acquisitions and (1,695) (1,753) disposals --------- --------- Net cash outflow before financing (1,981) (2,448) Financing Issue of share capital 3,000 2,727 Costs of Fundraising (192) (208) Net movement on loans (213) (82) Net cash inflow from financing --------- --------- 2,595 2,437 --------- --------- Increase/(Decrease) in cash 614 (11) ---------- ---------- NOTES TO THE FINANCIAL INFORMATION 1. Basis of preparation and financial information The financial information in this preliminary announcement has been prepared in accordance with the accounting policies set out in the financial statements of Access Intelligence PLC for the financial year ended 30 November 2005 which have remained unchanged from the financial year 2004. The financial information in this document does not constitute the company's statutory accounts for the financial year ended 30 November 2005 or financial year 2004, but is derived from those accounts. Statutory accounts for 2004 have been delivered to the Registrar of Companies and those for 2005 will be delivered following the company's Annual General Meeting. The auditors have reported on these accounts; their reports were unqualified and did not contain statements under sections 237 (2) or (3) of the Companies Act 1985. 2. Earnings per share Earnings per share is calculated on the basis of profit for the year after tax divided by the weighted average number of shares in issue for 2005 of 59,152,498 (2004: 21,361,595). Diluted earnings per share is calculated on the basis of profit for the year after tax divided by the weighted average number of shares in issue for 2005 adjusted for the dilutive effect of options granted which totals 62,502,498 (2004: 22,200,095). An adjusted earnings per share and a diluted adjusted earnings per share, which exclude goodwill amortisation, have also been calculated to allow shareholders to gain a clearer understanding of the trading performance of the Group. 2005 2004 Earnings Weighted Per Share Earnings Weighted Per Share Average No of Amount Average No of Amount Â£'000 shares pence Â£'000 shares pence Earnings (60) 59,152,498 (0.10p) (340) 21,361,595 (1.59p) attributable to ordinary shareholders Amortisation 185 - - 122 - - of goodwill -------- ----------- ----------- ---------- ----------- ----------- Adjusted 125 59,152,498 0.21p (218) 21,361,595 (1.02p) earnings per share ======= ======== ====== ======= ======== ====== Dilutive - 3,350,000 - - 838,500 - effect of options ------------ ------------- ----------- ------------ ------------- ----------- Diluted (60) 62,502,498 (0.10p) (340) 22,200,895 (1.53p) earnings per share --------- ------------ -------- --------- ------------ -------- Diluted 125 62,502,498 0.20p (218) 22,200,895 (0.98p) adjusted earnings per ====== ======= ===== ====== ======= ===== share 3. Taxation 2005 2004 Â£'000 Â£'000 Corporation tax at 30% (2004: 30%) 42 - Deferred tax 8 (41) ---------- ---------- 50 (41) ---------- ----------- Factors affecting the tax charge for the year The corporation tax assessed for the year is lower than the standard rate of corporation tax in the United Kingdom of 30% (2004: 30%). The differences are explained below: 2005 2004 Â£'000 Â£'000 Profit (Loss) on ordinary activities before tax (10) (381) ====== ====== Profit (Loss) on ordinary activities multiplied by (2) (72) standard rate of corporation tax in the UK of 30% (2003: 30%) Effect of: Expenses not deductible for tax purposes (1) (4) Capital allowances in excess of depreciation 1 9 Other timing differences 35 26 Adjustment due to tax rate of 19% 17 - ---------- ---------- Current tax charge for the year 50 (41) ---------- ---------- 4 Acquisitions The acquisitions of the Group for the year were as follows: On 27 June 2005, the entire issued share capital of Ridgeway Technologies Limited (RT) was acquired for an initial consideration of Â£700,000 satisfied by the issue of 500,000 shares at 10p per share and cash of Â£650,000. Deferred consideration of up to Â£1m is payable dependent on the results for the year ended 31 December 2005. A provision has been made for additional consideration payable in shares of Â£800,000. On 5 July 2005 the entire issued share capital of Due North Limited (DN) was acquired for an initial consideration of Â£1 million, which was satisfied by the issue of 4,686,034 ordinary shares at 10.67p per share and Â£1,000,000 in cash. Deferred consideration of up to Â£1.85m is payable dependent on the results for the three years ending 31 August 2008. At this stage a provision has been made for Deferred consideration of Â£350,000. The acquisitions have been accounted for using the acquisition method of accounting, and goodwill arising on consolidation has been capitalised and will be amortised over a period of 20 years, their expected useful lives. The following table sets out the identifiable assets and liabilities acquired: RT DN Total Â£'000 Â£'000 Â£'000 Tangible fixed assets 29 17 46 Stocks 238 238 Debtors 423 180 603 Cash 176 100 276 Creditors (632) (205) (837) Taxation (34) (32) (66) --------- --------- --------- Net assets acquired 200 60 260 Fair value adjustments Goodwill 1,469 1,942 3,411 --------- --------- --------- Satisfied by: 1,669 2,002 3,671 ------- -------- -------- Cash 650 1,000 1,650 Issue of shares 50 500 550 Deferred consideration 800 350 1,150 Acquisition costs 169 152 321 ------- -------- -------- 1,669 2,002 3,671 ------- -------- -------- Ridgeway Technologies Limited achieved a profit before taxation of Â£102,000 in the year ended 31 December 2004. The profit before taxation of Due North Limited was Â£69,000 in the year ended 31 August 2004. 5. Intangible fixed assets Goodwill Development Total costs Â£'000 Â£'000 Â£'000 ------------- ------------- ------------- Cost At 1 December 2004 2,435 134 2569 Additions - 92 92 On acquisition 3,411 3,411 ------------- ------------- ------------- At 30 November 2005 5,846 226 6,072 ------------- ------------- ------------- Amortisation At 1 December 2004 122 14 136 Charge for the year 185 20 205 ------------- ------------- ------------- At 30 November 2005 307 34 341 ------------- ------------- ------------- Net book amount At 30 November 2005 5,539 192 5,731 ------------- ------------- ------------- At 30 November 2004 2,313 120 2,433 ------------- ------------- ------------- The useful economic life of the goodwill in respect of all acquisitions is 20 years, based on the directors' assessment of the income streams of the acquired businesses. Copies of the preliminary announcement are available from the company's Registered Office at Regency House, Westminster Place, York Business Park, York, YO26 6RW. The Annual Report and Accounts for the financial year ended 30 November 2005 will be posted to shareholders on or about 8 April 2006.

Companies

Pulsar Group (PULS)

Friday, 17th May 2024

COMPANIES COVERED:

BT.A LAND FA.

BT Group continues to bask in yesterday’s well received earnings news and FireAngel jumps on clarity over getting a possible takeover across the line but Land Securities investors fail to find inspiration despite macroeconomic woes easing.

Full Archive

UK 100

Latest directors dealings

4 minutes ago Vertu Motors
16 minutes ago Brickability Group
21 minutes ago Abrdn Property Income Trust Limited
32 minutes ago M&G
32 minutes ago Hochschild Mining

All directors dealings today