Interim Results
Knowledge Technology Solutions PLC
27 March 2006
RNS Release
Embargoed until 7am on Monday 27 March 2006
Interim results for the six months ended 31 December 2005
Knowledge Technology Solutions PLC (KTS), the independent provider of real-time
market data services, reports its unaudited results for the six months ended 31
December 2005.
Financial and business highlights:
• Turnover increased by 26% to £720,278 (2004: £572,283)
• Continued investment in R&D and enhanced exchange coverage resulted in a
loss before tax of £547,447 (2004: £419,898)
• Cash position of £1.3 million as at 31 December 2005 (2004: £2.3
million)
• All live market data services successfully integrated under the
MarketTerminal brand
• Progress made on a number of revenue-enhancing initiatives to capture
new market opportunities
Dr. Marc Pinter-Krainer, Chief Executive of KTS, said:
'This continues to be a challenging market in which to provide live market data
applications. KTS is responding positively to this challenge and we are pleased
that our initiatives to create additional income streams, currently at early
stages, are progressing well.'
Enquiries, please contact:
Dr Marc Pinter-Krainer Knowledge Technology Solutions PLC 020 7256 2300
Oliver Scott KBC Peel Hunt Ltd 020 7418 8900
Neil Boom Gresham PR Ltd 020 7404 9000
David Pettet
Chief Executive's statement
In the six months ended 31 December 2005, KTS has made encouraging progress in
seeking additional revenue streams from new initiatives.
As shareholders were previously informed, intense competition among vendors of
UK market data display applications has exerted pressure on profit margins and
turnover growth. Last year, the Board therefore decided to enhance growth by
seeking potential additional income streams which exploited KTS's core
technologies.
Against a background of strong competition first half sales of MarketTerminal,
our live international market data display service, rose by 26% to £720,278
(2004: £572,283) and our subscriber base remained steady at 130 client
organisations.
We have also maintained our commitment to develop our technology, customer
service and the quality and depth of data available on MarketTerminal. Further
investment in these areas led to higher pre-tax losses of £547,447 (2004:
£419,898). Our cash position as at 31 December 2005 was £1.3 million (2004: £2.3
million).
In January, we successfully unified our live market data products into a single,
customisable solution - MarketTerminal. We are pleased that clients have
responded positively to this initiative and we have successfully migrated our
subscriber base to the new MarketTerminal service. We believe that our
MarketTerminal subscription service, that includes access to live share prices,
analytics and news from major markets around the world, and exchange rates for
more than 170 currencies, remains a highly attractive product.
As previously reported, our strategy is to complement the provision and further
development of our MarketTerminal subscription service with new growth
initiatives. These include indirect sales of MarketTerminal through
international resellers, the introduction of a fully integrated mobile market
data service for handheld devices and the seamless integration of our
MarketTerminal display application with clients' existing market data
infrastructures.
In line with the current industry trend towards increased mobility we are
planning the launch of an end-to-end mobile handheld market data service within
the current financial year.
With regard to client data integration solutions, we have identified an
opportunity to license our proven MarketTerminal display application to clients
for integration with their existing market data infrastructure. This is
particularly relevant to larger financial institutions who will benefit from the
high level of customisation, ease of deployment and low cost of ownership which
a tailored implementation of the MarketTerminal display application provides.
The integrated MarketTerminal solution is particularly well suited for clients
to display their own internal quote data, without depending on third party quote
vendors.
There has been considerable interest from a number of banks, one of which is
currently carrying out a proof of concept evaluation.
Outlook
'This continues to be a challenging market in which to provide live market data
applications. KTS is responding positively to this challenge and we are pleased
that our initiatives to create additional income streams, currently at early
stages, are progressing well.'
Dr. Marc Pinter-Krainer
Chief Executive
27 March 2006
KNOWLEDGE TECHNOLOGY SOLUTIONS PLC
CONSOLIDATED PROFIT & LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2005
Period ended Period ended Year ended
31 December 31 December 30 June
2005 2004 2005
(unaudited) (unaudited) (audited)
Notes £ £ £
Turnover 3 720,278 572,283 1,250,474
Distribution costs (718,626) (529,795) (1,192,594)
Administrative costs (583,210) (519,787) (1,119,527)
--------- ----------- -----------
Operating loss (581,558) (477,299) (1,061,647)
Interest receivable 34,111 57,401 95,111
--------- ----------- -----------
Loss on ordinary activities
before taxation (547,447) (419,898) (966,536)
Taxation on loss on
ordinary activities 4 - - -
--------- ----------- -----------
Loss on ordinary activities
after taxation (547,447) (419,898) (966,536)
Dividends 5 - - -
--------- ----------- -----------
Retained loss (547,447) (419,898) (966,536)
========= =========== ===========
Basic earnings per
ordinary share 6 (0.37)p (0.28)p (0.65)p
========= =========== ===========
Diluted earnings per
ordinary share 6 (0.37)p (0.28)p (0.65)p
========= =========== ===========
All of the results relate to continuing operations.
There are no recognised gains and losses other than the loss for the period.
KNOWLEDGE TECHNOLOGY SOLUTIONS PLC
CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2005
As at As at As at
31 December 31 December 30 June
2005 2004 2005
(unaudited) (unaudited) (audited)
Notes £ £ £
Fixed assets
Tangible fixed assets 154,519 194,952 180,027
----------- ----------- ---------
Current assets
Debtors 173,633 162,419 162,926
Cash at bank and in hand 1,353,363 2,270,839 1,716,053
----------- ----------- ---------
1,526,996 2,433,258 1,878,9789
Creditors: amounts falling
due within one year (426,055) (278,665) (256,099)
----------- ----------- ---------
Net current assets 1,100,941 2,154,593 1,622,880
----------- ----------- ---------
Total assets less current
liabilities 1,255,460 2,349,545 1,802,907
=========== =========== =========
Capital and reserves
Called up share capital 148,275 148,275 148,275
Share premium account 4,777,574 4,777,574 4,777,574
Profit and loss account (3,670,389) (2,576,304) (3,122,942)
----------- ----------- ---------
Equity shareholders' funds 9 1,255,460 2,349,545 1,802,907
=========== =========== =========
KNOWLEDGE TECHNOLOGY SOLUTIONS PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2005
Period ended Period ended Year ended
31 December 31 December 30 June
2005 2004 2005
(unaudited) (unaudited) (audited)
Notes £ £ £
Net cash outflow from
operating activities 7 (396,136) (449,842) (1,027,646)
--------- ----------- -----------
Returns on investment and
servicing of finance
Interest received 34,111 57,401 95,111
--------- ----------- -----------
Net cash inflow from returns
on investments and servicing of
finance 34,111 57,401 95,111
--------- ----------- -----------
Taxation
Corporation tax refund - - -
--------- ----------- -----------
Net cash inflow from - - -
taxation --------- ----------- -----------
Capital expenditure
Purchase of tangible fixed
assets (665) (50,953) (65,645)
--------- ----------- -----------
Net cash outflow from
capital expenditure and financial
investment (665) (50,953) (65,645)
--------- ----------- -----------
Net cash outflow before
financing (362,690) (443,394) (998,180)
--------- ----------- -----------
Financing
Issue of share capital - 11,700 11,700
Expenses paid in connection
with share issues - - -
--------- ----------- -----------
Net cash inflow from
financing - 11,700 11,700
--------- ----------- -----------
Decrease in cash 8 (362,690) (431,694) (986,480)
--------- ----------- -----------
All cash flows relate to continuing operations.
KNOWLEDGE TECHNOLOGY SOLUTIONS PLC
NOTES TO THE INTERIM RESULTS FOR THE SIX MONTHS
ENDED 31 DECEMBER 2005
1 Basis of preparation
The interim financial information in respect of the six months ended 31 December
2005 is unaudited and has been prepared on the basis of the accounting policies
set out in the company's audited accounts for the year ended 30 June 2005.
The financial information contained in this statement does not constitute
statutory accounts. Statutory accounts for the year ended 30 June 2005 received
an unqualified audit report and have been filed with the Registrar of Companies.
2 Continuing activities
All of the activities are continuing.
3 Turnover
All of the turnover arises in the United Kingdom.
4 Taxation
As a result of losses available no liability to corporation tax is expected to
arise.
5 Dividends
The Directors do not recommend the payment of an interim dividend.
6 Earnings per ordinary share
The basic earnings per ordinary share has been calculated by dividing the loss
on ordinary activities after tax attributable to shareholders by the weighted
average number of ordinary shares in issue during the period which carry the
right to receive a dividend.
The diluted earnings per ordinary share has been calculated as above on the
basis of full exercise of options and warrants.
7 Reconciliation of operating loss to net cash outflow from operating activities
Period ended Period ended Year ended
31 December 31 December 30 June
2005 2004 2005
£ £ £
Operating loss (581,558) (477,299) (1,061,647)
Depreciation of fixed assets 26,173 29,066 58,682
Loss on disposal of fixed assets - 2,612 2,613
Increase in debtors (10,707) (48,833) (49,340)
Increase in creditors 169,956 44,612 22,046
--------- ----------- -----------
Net cash outflow from operating
activities (396,136) (449,842) (1,027,646)
--------- ----------- -----------
8 Reconciliation of net cash flow to movement of liquid funds
Period ended Period ended Year ended
31 December 31 December 30 June
2005 2004 2005
£ £ £
Net funds at start of period 1,716,053 2,702,533 2,702,533
Decrease in cash for the period (362,690) (431,694) (986,480)
--------- ----------- -----------
Net funds at end of period 1,353,363 2,270,839 1,716,053
--------- ----------- -----------
Net funds at the end of the period relate to cash at bank and in hand.
9 Reconciliation of movement in shareholders' funds
Period ended Period ended Year ended
31 December 31 December 30 June
2005 2004 2005
£ £ £
Loss for the period (547,447) (419,898) (966,536)
New share capital issued less costs - 11,700 11,700
--------- ----------- -----------
Net reduction during the period (547,447) (408,198) (954,836)
Opening shareholders' funds 1,802,907 2,757,743 2,757,743
--------- ----------- -----------
Closing shareholders' funds 1,255,460 2,349,545 1,802,907
--------- ----------- -----------
This information is provided by RNS
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