Final Results

Eurolink Managed Services PLC 05 August 2003 Release: 5 August 2003 Embargoed: 7.00am EUROLINK MANAGED SERVICES PLC CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 MARCH 2003 Introduction and Results I am happy to report an increase in profit before tax of 32% to £204,000 (2002: £155,000) on turnover similar to last year at £9.15 million (2002: £9.23 million). Earnings per share were 1.22p (2002: 0.47p). As in previous years a dividend is not being recommended as the directors are seeking to develop the Group through organic growth and acquisitions and accordingly are retaining resources for this purpose. Business Review With the IT sector in the UK continuing to be a very difficult market we are encouraged to be able to report a level of business similar to last year. We believe this reflects the quality of our relationships with our major clients and the robustness of our business model, which has proven to be effective in these testing market conditions. Our strategy has been to focus on maintaining and improving, where possible, the quality of our software development solutions to our existing key clients. Using our core set of processes and skills and ability to build teams of people around the core team, we are able to enhance our competitiveness. This business model means we can focus on people skills and it enables us to remain software platform independent. Throughout the year there has been and continues to be a demand for presentations and proposals from existing and new clients, although often final decisions are continuing to be deferred. This is frustrating for all concerned but it does demonstrate an increasing awareness amongst potential clients of our presence. Through the control of costs there has been an improvement in gross margin in the second half of the year, when compared to the first half. The supporting infrastructure of the Group is of course continually under review. Our current available capacity does allow for significant expansion and we have increased our sales activity to pick up the slack in capacity. In respect of the balance sheet the Group has now increased net asset value to just over £1 million. This compares with a net asset value of £235,000 as at 31 March 1999 shortly before the company obtained its listing on AIM. Outlook Maintaining the strengths of the business for the future and keeping short-term profitability is the balance the directors seek to achieve in the current conditions. In addition, the directors now believe the market place for acquisitions has settled at more realistic valuation levels and will continue to search for attractive, sensibly priced acquisitions that can enhance the total return to shareholders. The outlook on business levels from existing clients remains positive and encouraging for the year ahead and provides a sound basis for the Group going forwards. With the timing of the more substantial known project work anticipated to benefit the second half of the year the directors do not expect the first half of this year to see an improvement over last year's first half. There are few signs of any improvement in market conditions and as a result the current year is likely to prove challenging. With continuing opportunities to present proposals to potential new clients, the higher level of sales activity and new projects anticipated from existing clients the directors remain cautiously optimistic. Jim Carr Chairman 4 August 2003 Consolidated profit and loss account for the year ended 31 March 2003 Note 2003 2002 £'000 £'000 Turnover 9,152 9,226 Cost of sales (7,106) (7,293) --------- --------- Gross profit 2,046 1,933 Administrative expenses (1,792) (1,734) --------- --------- Operating profit 254 199 Net interest payable (50) (44) --------- --------- Profit on ordinary activities before taxation 204 155 --------- --------- Tax (77) (106) --------- --------- Profit for the financial year 127 49 --------- --------- Earnings per share Basic 2 1.22p 0.47p Diluted 2 1.22p 0.47p --------- --------- Consolidated balance sheet at 31 March 2003 2003 2002 £'000 £'000 Fixed assets Tangible assets 256 297 Current assets Debtors 2,368 1,930 Cash at bank 3 418 --------- --------- 2,371 2,348 --------- --------- Creditors: amounts falling due within one year (1,585) (1,713) --------- --------- Net current assets 786 635 --------- --------- Total assets less current liabilities 1,042 932 --------- --------- Creditors: amounts falling due after more than one year (26) (43) --------- --------- 1,016 889 --------- --------- Capital and reserves Called up share capital 208 208 Share premium account 103 103 Profit and loss account 705 578 --------- --------- Equity shareholders' funds 1,016 889 --------- --------- Consolidated cash flow statement for the year ended 31 March 2003 2003 2002 £'000 £'000 Net cash inflow/(outflow) from operating activities (213) (98) Returns on investments and servicing of finance Net interest paid (50) (44) Taxation UK corporation tax (60) (143) Capital expenditure and financial investment Purchase of tangible fixed assets (23) (24) Sale of tangible fixed assets - 33 --------- --------- Cash (outflow) before financing (346) (276) --------- --------- Financing Capital element of finance lease contracts - Repayments (43) (108) Amounts advanced against trade debtors (362) 591 --------- --------- Cash (outflow)/inflow from financing (405) 483 --------- --------- (Decrease)/increase in cash in the year (751) 207 --------- --------- Reconciliation of operating profit to net cash inflow/(outflow) from operating activities 2003 2002 £'000 £'000 Operating profit 254 199 Depreciation 64 67 Loss on sale of tangible assets - 9 Increase in debtors (438) (538) (Decrease)/increase in creditors (93) 165 --------- --------- Net cash inflow/(outflow) from operating activities (213) (98) --------- --------- Reconciliation of net cash inflow to movement in net debt 2003 2002 £'000 £'000 (Decrease)/increase in cash at bank (751) 207 Cash outflow/(inflow) from changes in debt 405 (483) --------- --------- Movement in net funds (346) (276) Net (debt)/funds at start of year (229) 47 --------- --------- Net debt at end of year (575) (229) --------- --------- Notes to the Preliminary Announcement 1. Preparation of preliminary announcement The preliminary results have been extracted from the company's audited accounts which have been approved and signed by the directors and auditors. They have not yet been delivered to the Registrar of Companies. The financial information set out in this preliminary announcement does not comprise Statutory Accounts within the meaning of section 254 of the Companies Act 1985. 2. Earnings per share The calculation of earnings per share is based on the profit on ordinary activities after tax for each period and the weighted average number of shares in issue during the period, being 10,400,000 (2002: 10,400,000). The diluted earnings per share is based on the profit after tax for each period and the fully diluted weighted average number of shares in issue during the period being 10,400,000 (2002: 10,400,000). 3. Copies of report The Annual Report will be posted to all shareholders and will be available on request from the Company Secretary, Queen Square House, 15 Queen Square, Brighton, East Sussex, BN1 3FD. 4. Copy of this announcement A copy of this announcement will be available for one month from the Company Secretary, Queen Square House, 15 Queen Square, Brighton, East Sussex, BN1 3FD. 4 August 2003 This information is provided by RNS The company news service from the London Stock Exchange

Companies

Roebuck Food Group Public Limited Company (CDI) (RFG)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today