Interim Results

Clinical Computing PLC 26 September 2000 Clinical Computing plc INTERIM RESULTS Chairman's and Chief Executive's Statement For the first half of 2000 the Group produced an operating profit of £84,000, which together with net interest income of £73,000 generated a profit on ordinary activities of £157,000. The Group continued to have a strong cash position with total cash and short-term deposits balances of approximately £3 million at the end of the first half of 2000. Turnover for the first half of the year was £1.3 million, which is a decrease of 15% on the same period of the prior year. Total cost of sales for the first half of the year decreased by 6% when compared to the same period of the prior year. Research and development costs, however, increased by 22%, whereas other cost of sales decreased by 33%. Distribution costs remain at a similar level to the same period of the prior year, but administrative expenses have decreased by 24%. With the introduction of the Clinical Vision product line, we expect to see a reduction in the cash balances during the remainder of 2000 as we strengthen our sales team in the US market and their activity increases. We are pleased to announce that we have now recruited a new head of Sales and Marketing for the US who has an extensive background in the sale of clinical systems. Our maintenance and support business remains strong in all markets. Despite some delays, Clinical Vision has been successfully implemented at our two beta sites in the UK. Both customers have upgraded to the latest functionality of Version 3.0. Version 3.1, which will be available in the third quarter of this year, contains US billing interface and insurance capture capabilities plus the protocols to allow for translation into other languages. During the second half of the year the Group will focus on closing orders for beta sites in the UK, Eire, New Zealand and the US, as well as the expansion of the Clinical Vision product line into other specialties. The Group continues to explore technologies which will ensure that we stay current with ever-changing market trends and that we have the software capability for the complete electronic clinical record which health services need and will demand. M Gordon J Richardson Chairman Chief Executive Unaudited Consolidated Profit and Loss Account Six months ended 30 June 2000 6 Months 6 Months Year ended ended ended 30.06.00 30.06.99 31.12.99 £000 £000 £000 Turnover 1,331 1,561 3,113 Cost of sales Research and development 507 414 886 Other 279 419 780 (786) (833) (1,666) Gross Profit 545 728 1,447 Distribution costs 220 216 413 Administrative expenses 241 317 769 (461) (533) (1,182) Operating profit 84 195 265 Net interest receivable 73 58 117 Profit on ordinary activities before 157 253 382 and after taxation Basic and diluted earnings per share 0.6p 1.0p 1.5p All results are derived from continuing operations. Unaudited Consolidated Statement of Total Recognised Gains and Losses Six Months Ended 30 June 2000 6 Months 6 Months Year ended ended ended 30.06.00 30.06.99 31.12.99 £000 £000 £000 Profit for the period 157 253 382 (Loss)/gain on foreign currency translation (33) (38) (25) Total recognised gains and losses 124 215 357 Unaudited Consolidated Balance Sheet 30 June 2000 30.06.00 30.06.99 31.12.99 £000 £000 £000 Tangible fixed assets 313 341 345 Current assets Stocks 41 41 41 Debtors 727 1,137 748 Cash at bank and in hand (including short term deposits) 2,957 2,495 2,794 3,725 3,673 3,583 Creditors: Amounts falling due within one year Deferred income 727 909 649 Other 216 268 308 943 1,177 957 Net current assets 2,782 2,496 2,626 Total assets less current liabilities 3,095 2,837 2,971 Creditors: Amounts falling due After more than one year 0 13 0 Net assets 3,095 2,824 2,971 Capital and reserves Called-up share capital 1,254 1,254 1,254 Share premium account 4,248 4,248 4,248 Profit and loss account (2,407) (2,678) (2,531) Shareholders' funds - all equity 3,095 2,824 2,971 Unaudited Consolidated Cash Flow Statement Six Months Ended 30 June 2000 6 Months 6 Months Year ended ended ended 30.06.00 30.06.99 31.12.99 £000 £000 £000 Operating profit 84 195 265 Depreciation and amortisation charges 75 71 144 (Increase)/decrease in debtors 21 (70) 319 Increase/(decrease) in creditors (14) 7 (178) Unrealised foreign exchange loss (33) 0 (27) Net cashflow from operating activities 133 203 523 Returns on investments 73 58 117 Capital expenditure (31) (85) (158) 42 (27) (41) Net cashflow before financing 175 176 482 Financing 0 (3) (20) Increase in cash 175 173 462 Notes 1. The interim results for the six months ended 30 June 2000, set out here, have been compiled in accordance with applicable accounting standards and on a basis consistent with the annual accounts. They have been reviewed by our auditors, Arthur Andersen, and a copy of their report is attached. The auditors discussed their review and findings with the Audit Committee. 2. The above financial information does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. Group statutory accounts for the year ended 31 December 1999,which included an unqualified audit report, have been filed with the Registrar of Companies. 3. Basic earnings per share has been calculated on the basis of the weighted average number of shares in issue, being 25,080,310 for the six months ended 30 June 2000, six months ended 30 June 1999, and for the year ended 31 December 1999. Diluted earnings per share has been calculated on the basis of the weighted average number of shares in issue, being 25,426,926 for the six months ended 30 June 2000, six months ended 30 June 1999, and for the year ended 31 December 1999. 4. Copies of this interim report will be sent to shareholders and are available from the Company's head office at 4 Thameside Centre, Kew Bridge Road, Brentford, Middlesex, TW8 0HF. INDEPENDENT REVIEW REPORT TO CLINICAL COMPUTING PLC Introduction We have been instructed by the company to review the financial information set out on pages 2 to 5 and we have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information. Directors' responsibilities The interim report, including the financial information contained therein, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim report in accordance with the Listing Rules of the Financial Services Authority and applicable United Kingdom accounting standards. The Listing Rules require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4 issued in the United Kingdom by the Auditing Practices Board and with our profession's ethical guidance. A review consists principally of making enquiries of management and applying analytical procedures to the financial information and underlying financial data and, based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly we do not express an audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 30 June 2000. Arthur Andersen Chartered Accountants Betjeman House 104 Hills Road Cambridge CB2 1LH Enquiries: Jack Richardson, Chief Executive Clinical Computing plc 0208 380 4400

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