Final Results

Focus Solutions Group PLC 6 June 2000 Significant year of progress for Focus Solutions Group Insurance industry introduces business to business e-commerce solutions for new business Preliminary results for the year to March 31, 2000 - These are the maiden results of Focus Solutions following its flotation on AIM in March. - The Group's software product for electronic new life, pensions and investment applications called goal:proposal has now been adopted by the three leading internet service providers for the financial services industry. - The largest 11 insurance companies - including CGU and Norwich Union, Legal &General, Scottish Equitable, Royal & Sun Alliance and Friends Provident - are using goal:proposal software. - Systems for electronically created and processed new business applications are starting to go live. Focus Solutions' licence revenue is starting to increase as a result. - Other group products - goal:pos and goal:plan - developed further. - New channels to market, such as digital TV, and new products, such as mortgages, are being pursued. - Focus Solutions is accelerating its product development and product introduction plans and investing in additional personnel to support its programmes. For further information contact: John Streets, Chief Executive Mark Loosmore, Sales and Partnerships Director Focus Solutions Group Tel: 01926 623090 Tel: 020 7638 9571 (today only) John Rudofsky/Sara Thomas Citigate Dewe Rogerson Tel: 020 7638 9571 Focus Solutions Group plc Preliminary results for the year ended March 31, 2000 These are the first results of the Focus Solutions Group as a public company following the successful placing of shares in March and admission to the Alternative Investment Market (AIM). The placing raised £10 million net of expenses for the Group. The funds will enable the Group to extend its market reach and accelerate product development in the business to business e-commerce environment. Turnover for the year exceeded budget to 31 March 2000 at £721,000 (1999: £360,000) and the loss before taxation was £1,039,000 (1999: £368,000). The increase in turnover includes revenues in the latter part of the year arising from the start of goal:proposal licence revenue. The anticipated loss is the result of the accelerated investment in product development and in building up an experienced team of people to support the progress Focus Solutions has made in its markets. Commercial review Focus Solutions has maintained and developed a strong relationship with CGU which is now consolidating its operations with Norwich Union. The merger has afforded new opportunities with the enlarged group and the Board believes further consolidation in the industry will be a key driver to bring down costs. This will increase demand for more cost effective, electronically-based administrative solutions and new business processing. The Group has now delivered goal:proposal to the market and in its latest version it supports the standards of Origo, the organisation representing the leading UK assurance companies, as it drives forward the introduction of electronic commerce for the industry. Since flotation a further three companies, including Royal & Sun Alliance and Friends Provident, have bought goal:proposal so that 11 top insurers in this country now use Focus Solutions' software for developing electronic proposals. Focus Solutions also has partnership programmes with three leading internet service providers - Moneyextra (formally The exchange), Synaptic and Assuresoft. The eXchange service is now live and Norwich Union was the first financial services Group to launch electronic products on this service. These service providers will be deploying the Group's software products to all their end users. between them they have approximately 20,000 subscribers. New product development has continued at a pace. goal:pos is now well established as a point of sale tool and is progressively being moved into new distribution channels. We are actively pursuing partnership approach with the industry along similar lines to that of our other products. The Group has also started research to take goal:proposal into the mortgage market. Good progress is being made and the Group hopes to secure partnerships later this year. The Group's leading position in the life and pensions industry means that it is holding more strategic discussions with major insurance company customers and receiving a growing number of commercial approaches from financial service portals. Focus Solutions is also expanding the development skills of the Group. It has brought in additional management and restructured the development team to ensure the Group meets its accelerated product development plans whilst maintaining quality of product and service delivery to customers. On the 1st June 2000, Piers Brooke joined the board as our third non executive director. Piers, who has held a number of senior positions in the major clearing banks, most recently with NatWest Group, brings a wealth of experience to the Group. The considerable opportunities highlighted at the time of the flotation for the Group's products in the financial services market, including new emerging distribution channels, remain as strong as ever which should lead to significant revenue growth in the current year. To take advantage of these opportunities Focus Solutions has accelerated its sales and marketing recruitment programme with additional business development managers to cover new markets and new partnerships. This team will be responsible for the enhancement of relationships with the service providers in the financial service market and negotiations with new internet portals. This team will also secure partnerships required to deploy new versions of goal:proposal for the mortgage market place. The Group is on track to launch a digital TV pilot using its point of sale software and with its business development team it is looking to secure partners for worksite marketing. The successful placing and the significant achievements in the business over the past year enables the Board to be confident that the business will continue to build its position as the leading developer of business to business e-commerce software solutions for the financial services industry. 6 June, 2000 Focus Solutions Group plc Consolidated Profit and Loss Account for the year ended 31 March 2000 2000 1999 £'000 £'000 Turnover 721 360 Staff costs (1,140) (397) Depreciation (85) (33) Other external charges (555) (317) ----- ----- Operating loss (1,059) (387) Investment income 32 25 ----- ----- (1,027) (362) Interest payable (12) (6) ----- ----- Loss on ordinary activities before taxation (1,039) (368) Taxation 1 - ----- ----- Loss on ordinary activities after taxation & sustained loss for the year (1,038) (368) ===== ===== Loss per ordinary share (5.6p) (2.6p) ===== ===== Turnover and operating loss areis derived from the Group's continuing operations. No separate statement of total recognised gains and losses has been presented as all such gains and losses have been dealt with in the profit and loss account. Focus Solutions Group plc Balance Sheets 31 March 2000 31 March 2000 1999 £'000 £'000 Fixed assets Tangible assets 165 110 Current assets Debtors 312 68 Cash at bank and in hand 9,917 444 ----- ----- 10,229 512 ----- ----- Creditors: Amounts falling due within one year 412 150 ----- ----- Net current assets 9,817 362 ----- ----- Total assets less current liabilities 9,982 472 Creditors: Amounts falling due in more than one year 28 41 ----- ----- Net assets 9,954 431 ===== ===== Capital & reserves Called up share capital 2,508 1,660 Share premium 9,426 - Profit & loss account (1,980) (1,229) ----- ----- Shareholders' funds 9,954 431 ===== ===== Focus Solutions Group plc Consolidated Cash Flow Statement for the year ended 31 March 2000 2000 1999 £'000 £'000 Net cash outflow from operating activities (1,022) (2998) Returns on investments & servicing of finance 20 1920 Taxation 1 (1) Capital expenditure & fnancial investment (92) (85) ----- ----- Cash outflow before financing (1,093) (365) Financing 10,566 795 ----- ----- Increase in cash in the year 9,473 430 ===== ===== Reconciliation of net cashflow to movement in net funds 2000 1999 £'000 £'000 Increase in cash in the year 9,473 430 Change in net funds resulting from cash flows 61 (14) New finance leases (48) (24) ----- ----- Movement in net funds in the year 9,486 392 Net funds at start of year 379 (13) ----- ----- Net funds at end of year 9,865 379 ===== =====
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