Interim Results

Anite Group PLC 16 January 2001 ANITE GROUP PLC ('ANITE') Interim results for the six months ended 31st October 2000 Anite Group plc, the European IT consultancy and solutions business, announces its interim results for the six months ended 31st October 2000. The main highlights are as follows: HIGHLIGHTS - Profit before tax* up 42% to £8.5m (1999: £6.0m) - Earnings per share* up 44% to 2.3p (1999: 1.6p) - Improved operating margin from continuing businesses 10.9% (1999: 7.8%) - Turnover of core businesses up 32.4% to £69.0m (1999: £52.1m) - Strong organic growth in core businesses: - Telecoms: Turnover up 123% to £11.6m, Operating profits up 145% to £2.7m - Consultancy: Turnover up 20% to £47.3m, Operating profits up 40% to £4.9m - Travel: Turnover up 35% to £10.1m, Operating profits up 43% to £1.0m - The December 2000 acquisition of Calculus, which markets billing solutions to telecoms operators, will enhance the Telecom Division's product set and contribute to further growth - Record order backlog at the half year in the Solutions businesses * before goodwill amortisation, profit on sale/closure of discontinued operations and after net interest Commenting on the results Alec Daly, Chairman, said: 'All of our divisions continue to trade strongly. The second half has begun well and all divisions continue to show strong organic growth. Our recent acquisitions are expected to contribute significantly to Anite's businesses and I am confident that the Group will demonstrate further outstanding progress for the full year.' For further information, please contact: www.anite.com Anite Group plc 0118 945 0129 John Hawkins, Chief Executive Simon Hunt, Finance Director Golin/Harris Ludgate 020 7253 2252 Edward Macquisten/Reg Hoare CHAIRMAN'S STATEMENT I am pleased to report half year profits before tax* of £8.5m, 42% ahead of last year's figure of £6.0m and that earnings per share have increased 44% to 2.3p (1999:1.6p). All of our core businesses have traded strongly. Sales of continuing businesses increased by 11.4% to £83.6m (1999: £75.0m). The leading performer was Anite Telecoms whose profits grew by 145% to £2.7m, with a 140% increase in half-year orders to £13.0m. Datavance, acquired in July 2000 for £49.4m including earnouts, achieved a profit contribution in line with expectations. In December 2000, we announced the acquisition by Anite of Calculus, which supplies billing solutions to telecoms operators, for £15.0m on completion, together with an earn out of up to £35.0m. *before goodwill amortisation, profit on sale/closure of discontinued operations and after net interest. Trading results Anite Telecoms The profits for this division increased 145 per cent to £2.7m from £1.1m. Sales more than doubled to £11.6m (1999: £5.2m). Orders continued to benefit from strong demand from the division's GPRS testing solutions and increased to £13.0m (1999: £5.4m), with a backlog of £8.8m at October 2000. We have received orders of US$3.0m (£2.0m) from customers in the USA through our office in Chicago, which opened in July 2000. Testing solutions for next generation mobile phones, including EDGE and 3G technology, continue to be developed, and both will be available for shipment from the beginning of the next financial year. We have made two acquisitions in pursuance of our strategic objective of marketing solutions to telecoms operators. Calculus' billing solutions, acquired in December 2000, are well-suited to the needs of operators rapidly rolling out network infrastructure, as they can be implemented over far shorter timescales (typically 3-6 months) than traditional billing solutions. They also provide strong visibility of interconnect costs, an increasingly significant factor in operator profitability. Calculus' customers include major European telecoms operators. Calculus' European operational capabilities will be enhanced by the local integration skills provided by Anite Telecoms and our IT Consultancy businesses. Syzygy, acquired in November 2000 for £3.7m including earnouts, has developed a solution for network operators that enables rapid analysis of call traffic. Anite Travel This division performed strongly, with profits increasing by 43% to £1.0m (1999: £0.7m). Sales increased by one third to £10.1m (1999: £7.5m). Order intake grew by 66% to £13.3m with strong demand for managed service and e-commerce solutions. The backlog at October 2000 was £12.8m, half of which is deliverable in 2000/01 and half in the next financial year. In November 2000, the division acquired Carus Ab for up to £5.3m including earn out. Carus is a Finnish company that develops and markets the latest technology ferry reservation and CRM solution. Anite Travel will market this product to Carus's Nordic customers, as well as to other European ferry operators including users of Anite's AFOS ferry reservation system. IT Consultancy The Group's consultancy division increased profits by 40% to £4.9m (1999: £3.5m). Sales increased by 20% to £47.3m (1999: £39.4m) with a good performance in the banking sector across Europe. Datavance (France), acquired in July 2000, produced a profits contribution in line with expectations. The refocusing of GMO (Germany) in favour of e-commerce skills showed signs of improving its performance. Anite Public Sector UK was profitable, but was affected by restructuring costs following the merger of the three solutions businesses acquired in 1999/00. This business now has a focused distribution strategy with products supplied to Revenues, Housing and Social Services departments in Local Authorities being marketed by a single sales force. We have continued to brand our consultancy businesses Anite. IT Personnel The business has continued to improve margins by focusing on contingency contract business, and is marketing its e-commerce solutions to contract customers. As a result of this sales fell to £14.6m (1999: £22.9m) but profits were maintained at £0.5m (1999: £0.5m). Sales of permanent recruitment services were encouraging, and management has been strengthened. Acquisitions Datavance, a French IT consultancy employing 350 people focused on supplying e-commerce and other leading edge technology solutions to Telecoms and banking companies, was acquired in July 2000. The initial consideration was Ffr309.2m (£29.9m), comprising Ffr100m (£9.7m) in Anite shares and Ffr209.2m (£20.2m) in cash. In addition, there is an earn out of up to Ffr211m (£20.4m) based on profit performance up to December 2001. Carus, which markets proprietary ferry reservation solutions to Nordic operators, was acquired in November 2000 for £0.3m paid in Anite shares, with an earn out over two and a half years of up to £5m, based on achieving profit targets. Syzygy, which has developed a tool used by telecoms operators to analyse call traffic, was acquired in November 2000 for £0.2m cash, with an earn out of up to £3.5m over two years based on achieving licence revenue targets. Calculus, which develops billing solutions and markets these to telecoms operators, was acquired in December 2000 for £15.0m on completion, payable as to £6.5m in cash and the remainder in Anite shares. In addition, there is an earn out of up to £35m payable in Anite shares on profits achieved to 30 April 2003. Cash At October 2000, the group's net borrowings totalled £6.1m including a £10.0m unsecured bank loan (1999/00: £6.0m cash). In June 2000, 8.7m Anite shares were placed for cash to realise £12.0m, as part financing for the Datavance acquisition, of which the cash element was £20.2m. In the second half of 2000/01, earn outs of up to £12.0m will be paid, and £6.4m was provided as cash- backed loan notes as part of the Calculus acquisition. Gearing at the half year end stood at 9.8% with interest cover of 15 times. The increase in shares issued during the period to fund acquisitions is equivalent to 6.7% of the opening share capital. Board and employees At an EGM in August 2000, a proposal to introduce overseas SAYE schemes was approved by shareholders. Overseas schemes have been introduced in the Netherlands, Germany and France, with a strong take up by employees. An All Employee Share Ownership Plan was also approved by shareholders. Dividend In accordance with our normal practice, no dividend will be paid at the half year. As highlighted at the full year, the Board continues to see many growth opportunities and believes that shareholder funds would be best-utilised pursuing these opportunities. As a result of this the Board proposes to suspend payment of dividends forthwith. Outlook All of our divisions continue to trade strongly. Anite Telecoms entered the second half with a record order backlog and new distribution capability established in the USA and Japan. We believe that demand for its solutions addressing mobile phone manufacturers will remain high, and will be enhanced further by Calculus' billing solutions for telecom operators. Anite Travel also has a record order book, and we expect it to benefit from continued investment by tour operators and online travel companies in e-commerce and managed services solutions. Our IT consultancy businesses will benefit from increasing co- operation between the businesses, and continuing strong demand in the telecoms, banking, and public sectors. The second half has begun well and all divisions continue to show strong organic growth. Our recent acquisitions are expected to contribute significantly to Anite's businesses and I am confident that the Group will demonstrate further outstanding progress for the full year Alec Daly Chairman 16 January 2001 For further information, please contact: www.anite.com Anite Group plc 0118 945 0129 John Hawkins, Chief Executive Simon Hunt, Finance Director Golin/Harris Ludgate 020 7253 2252 Edward Macquisten/Reg Hoare Anite Group plc Group Profit & Loss Account for the six months to 31 October 2000 Unaudited Unaudited Audited 6 months 6 months 12 months to to to 31 Oct 31 Oct 30 April 2000 1999 2000 00 Notes £'000 £'000 £'000 Turnover Existing operations 77,546 74,982 146,687 Acquisitions 2 5,995 - - Continuing operations 83,541 74,982 146,687 Discontinued 2,124 8,948 12,289 ========= ========= ========= 85,665 83,930 158,976 ========= ========= ========= Operating profit Existing operations 8,164 5,856 13,854 Acquisitions 2 938 - - Amortisation of goodwill (5,843) (3,219) (6,997) Total continuing operations 3,259 2,637 6,857 Discontinued operations 36 (62) (265) Operating profit 3,295 2,575 6,592 Profit on sale/closure of discontinued operations 352 1,821 425 Profit on ordinary activities before interest 3,647 4,396 7,017 Interest receivable less interest payable (606) 294 154 Profit on ordinary activities before tax 3,041 4,690 7,171 Tax on profits on ordinary activities 3 (2,407) (1,948) (3,969) Profit on ordinary activities after tax 634 2,742 3,202 Minority interest - (94) - Profit for the period 634 2,648 3,202 Dividend 4 (48) - (750) Retained profit for the period 586 2,648 2,452 Earnings per share 7 Basic - after goodwill amortisation 0.2p 1.1p 1.3p Basic - adjusted* 2.3p 1.6p 3.9p Diluted - after goodwill amortisation 0.2p 1.0p 1.3p Diluted - adjusted* 2.3p 1.6p 3.9p * before goodwill amortisation, profit on sale/closure of discontinued operations and after net interest. Anite Group plc Consolidated Statement of Total Recognised Gains and Losses for the six months ended 31 October 2000 Unaudited Unaudited Audited 6 months 6 months 12 to to months to 31 Oct 31 Oct 30 2000 1999 April 2000 2000 £'000 £'000 £'000 Profit for the financial period 634 2,648 3,202 Gain/(loss) on foreign currency translation 1,169 (173) 960 ========= ========= ======= Total recognised gains for the period 1,803 2,475 4,162 ========= ========= ======= Group Balance Sheet as at 31 October 2000 Unaudited Unaudited Audited 31 Oct 31 Oct 30 April 2000 2000 1999 2000 £'000 £'000 £'000 Fixed assets Intangible 120,131 61,246 75,292 Tangible 11,760 11,919 11,489 Investments 1,310 - 322 ========= ========= ======== 133,201 73,165 87,103 ========= ========= ======== Current assets Stock and WIP 7,524 4,039 6,929 Debtors 44,687 40,224 41,012 Short term deposits - 3,000 - Cash at bank and in hand 5,953 5,983 4,474 ========= ========= ======== 58,164 53,246 52,415 ========= ========= ======== Current liabilities Bank borrowings (12,103) - (5,012) Hire purchase (449) (185) (283) Amounts falling due within one year (57,081) (54,467) (52,316) ========= ========= ======== (69,633) (54,652) (57,611) ========= ========= ======== Net current liabilities (11,469) (1,406) (5,196) Creditors due after one year Hire purchase (471) (120) (270) Other creditors (462) (481) (1,665) Provisions for liabilities and charges (58,632) (39,366) (43,609) ========= ========= ======== (59,565) (39,967) (45,544) ========= ========= ======== Net assets employed 62,167 31,792 36,363 Called-up share capital 26,725 24,685 25,051 Share premium account 28,276 3,772 5,901 Reserves 7,081 3,151 5,326 Minority interest 85 184 85 ========= ========= ======== Total capital employed 62,167 31,792 36,363 ========= ========= ======== Anite Group plc Group Cashflow Statement for the six months to 31 October 2000 Unaudited Unaudited Audited 6 months 6 months 12 to to months to 31 Oct 31 Oct 30 April 2000 1999 2000 £'000 £'000 £'000 Net cash inflow/(outflow) from operating activities 8,377 (4,385) 2,044 Returns on investments and servicing of finance (273) 416 402 Taxation (1,801) 198 (1,480) Capital expenditure and financial investments (2,638) (1,202) (4,337) Acquisitions and disposals (20,775) 7,094 (4,516) Equity dividends paid (798) (737) (737) Cash (outflow)/ inflow before management of liquid resources and financing (17,908) 1,384 (8,624) Management of liquid resources - - 3,000 Financing 22,296 (781) (198) ========= ========= ======== Increase/(decrease) in cash in the period 4,388 603 (5,822) ========= ========= ======== Reconciliation of operating profit/ to net cash inflow/(outflow) from operating activities Unaudited Unaudited Audited 6 months 6 months 12 to to months to 31 31 October 30 April October 1999 2000 2000 £'000 £'000 £'000 Operating profit 3,295 2,575 6,592 Depreciation 1,571 1,149 3,493 Amortisation of goodwill 5,842 3,219 6,997 (Profit)/loss on disposal of fixed assets (22) - 509 Increase in stock (595) (2,110) (4,978) Decrease/(increase) in debtors 1,896 (1,323) 703 Decrease in creditors (3,120) (7,772) (11,463) Exchange movement (490) (123) 191 ========= ========= ======== Net cash inflow/(outflow) from operating activities 8,377 (4,385) 2,044 ========= ========= ======== Notes to the Interim Accounts for the six months to 31 October 2000 1.The financial information contained in this document does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The accounts have been prepared using accounting policies consistent with those set out in the most recent audited financial statements. Statutory accounts for the year to 30 April 2000 have been filed with the registrar of companies. The Auditors have reported on those accounts; their report is unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. 2. Acquisitions Turnover Profit £'000 £'000 Datavance Group 5,995 938 3. Taxation £'000 On the profit on ordinary activities for the period UK corporation tax 435 Overseas taxation 1,972 ===== 2,407 ===== 4. Dividends £'000 Balance of final dividend paid for year ended 30 April 2000 48 Proposed - ===== 48 ===== 5.Reconciliation of net cash flow to movement in net debt £'000 Increase in cash in period 4,388 Increase in bank loan and financing (10,367) Change in net debt in period (5,979) Opening net debt (1,091) ======== Closing net debt (7,070) ======== 6.Analysis of net debt 1 May 2000 Cash Flow 31 Oct 2000 2000 £'000 £'000 £'000 Cash at bank and in hand 4,474 1,479 5,953 Bank overdrafts (5,012) 2,909 (2,103) Bank loans - (10,000) (10,000) Finance leases (553) (367) (920) ========== ========= ========== (1,091) (5,979) (7,070) ========== ========= ========== 7.The earnings per share has been calculated on the net profit of £634,000 (1999: £2,648,000) and the average number of shares in issue of 261,103,833 (1999: 246,139,782) and the weighted average number of shares (adjusted for dilution) of 265,385,655 (1999: 250,489,393). The adjusted earnings per share has been based on the adjusted net profit (excluding goodwill amortisation and profit on sale/closure of discontinued operations and after net interest) of £6,125,000(1999: £4,046,000).

Companies

Ashoka India Equity Investment Trust (AIE)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today