Information  X 
Enter a valid email address

PremiSys Tech. PLC (ASE)

  Print      Mail a friend       Annual reports

Thursday 07 June, 2001

PremiSys Tech. PLC

Final Results

PremiSys Technologies PLC
7 June 2001


                                                                               
                            PremiSys Technologies plc
                          (formerly PremiSys Group plc)
                                        
                        PRELIMINARY RESULTS ANNOUNCEMENT
                           YEAR ENDED 31 DECEMBER 2000
                                        
                                        
Results Highlights:

-    Major changes during the financial year in the strategic direction of    
     the Group with a refocusing on technology-related activities

-    Plans to develop Asite as the principal European b2b construction portal 
     on track. Sir John Egan appointed Chairman in April 2001

-    Property  management  business,  Prime  Estates,  continues  to  increase
     operating profitability, with strong cash generation

-    Post  the financial year end, Whinney Mackay-Lewis subsidiary was sold   
     in March 2001 and we have announced separately today details of the      
     disposal of the Foreman's consultancy subsidiary

-    Substantial investment in the development of Asite during the course of  
     the year  has  contributed to a loss on ordinary activities  before  tax 
     of  £2.3 million,* with a loss per share of 6.3p*

*   (before exceptional write down of goodwill)

Walter Goldsmith, Chairman of PremiSys Technologies, commented;

'The  substantial  new opportunities offered by our Asite subsidiary  and 
other similar  technology-related  initiatives, together  with  the  continued
under-performance  of  two of the group's service businesses, has led to  a 
strategic refocusing of the PremiSys business.

'The architectural subsidiary, Whinney Mackay-Lewis, was sold in March 2001 
and contracts  have  been  exchanged  regarding  the  disposal  of  the 
engineering consulting  subsidiary,  Foremans Ltd. Details have been  released
today  in  a separate  announcement.  We will however, be retaining our 
property  management business, Prime Estates, which continues to improve its
profitability and to  be cash generative.

'The  group  will  continue  to develop the Asite portal,  which  has 
attracted considerable  support  from within the construction  sector,  and 
we  are  also examining  a  number of other business opportunities with a 
view  to  providing technology solutions to enhance the efficiency of
traditional industries'.


For further information please contact:

PremiSys Technologies plc
Walter Goldsmith, Chairman
Charles Woods, Finance Director                       Tel:  020  7388 4890

Gavin Anderson & Company
Neil Garnett / Rebecca Penney                         Tel:  020 7457 2345


CHAIRMAN'S STATEMENT

RESULTS AND DIVIDENDS
Reflecting a year when a major change was made in the strategic direction of
the Group, pre-tax losses before exceptional write down of goodwill for the
year  to 31  December  2000 were £2.3 million on a turnover of £11.2 million. 
Loss  per share  of  6.3p  was before the exceptional write down of goodwill, 
details  of which are given below.

The  operating  losses for the Group principally resulted from writing  off 
the costs  involved  in  the  investment in developing an online  exchange 
for  the construction  industry,  Asite.com,  with the  intention  that  it 
becomes  the principal European business-to-business construction portal.

Within the service businesses, operating profits rose in our property
management businesses.   However, these increased profits were offset, as
reported  in  our interim  statement, by the under-performance of our
architectural and mechanical and electrical businesses.

In line with current policy, the Board is not recommending a dividend this
year.

DEVELOPMENT OF THE GROUP
The  substantial new opportunities offered by our subsidiary, Asite Limited 
and other similar technology enablement projects, together with the continued
under-performance of two of the Group's service businesses has led to a
strategic  re-focusing on these new opportunities.

In  March  2001 the architectural subsidiary, Whinney Mackay-Lewis Limited, 
was sold,  75%  to  Woods  Bagot,  an Australian based  international 
architectural practice and 25% to five of Whinney Mackay-Lewis existing
directors.

In  June  2001 the mechanical and electrical engineering management 
subsidiary, Foremans Limited was sold subject to contract to Barry Shaw and
Richard Kennedy. Following an impairment review of the goodwill associated
with this subsidiary a provision for impairment of £1.2 million has been made.

There  are  no  plans  to  dispose of the property  management  business, 
Prime Estates,  whose profits and strong positive cash flows contribute 
significantly toward the central overhead costs of the Group.

The  Group  intends  to  continue  the  development  of  Asite.com  through 
its subsidiary  Asite  Limited, which has attracted significant support 
within  the construction  sector.   Further information is given in the 
Operational  Review below.

The  Group  is  currently  developing  a number  of  business  opportunities 
in conjunction with Dynamis Solutions with a view to providing technology
solutions to  enhance the efficiency of traditional industries.  In doing so
we will build on the expertise and technology developed for the Asite project.

The  Group  recently  became the sole UK commercial distributor  for  Lytec, 
an innovative  electroluminescent lighting cable through  its  subsidiary 
Lyteline Technology Limited.

OPERATIONAL REVIEW
In  March  2001  Asite  Limited announced that a number  of  major 
construction industry  groups  were  the  first to sign up to become 
shareholders  in  Asite Limited  whereby  equity can be earned by utilising
the  portal  which  in  turn enhances Asite's revenues.  These customers
include AXA, British Land,  Legal  & General,  Mace,  Morley  Fund Management,
Prudential,  St.  Modwen  and  Tishman Speyer,  in addition to PremiSys
shareholders Stanhope and Rotch. In April  2001 this  Group  was  joined  by 
BAA plc, one of the UK's principle  infrastructure developers. Further
announcements are expected in due course.

In October 2000 the site was launched with the participation of a number of
high profile  technology partners, including Microsoft and Commerce One.  The 
portal is  now operational on a number of pilot projects with public launch
expected in June  2001.  It is anticipated that the project will begin to
generate  revenues shortly  and reach profitability as early as next year. The
company is intending to  raise £5 million by way of a placing and open offer
and these funds will  be available to continue the development of Asite.

The  Company  announced in April 2001 the appointment  of  Sir  John  Egan  as
chairman of Asite.  This is the first such position that he has accepted 
within the  construction  industry  since  he  chaired  the  government's 
Construction Taskforce  and published his challenging recommendations for
industry change  in 1998.   He  has  recently been appointed chairman of the
government's  strategic forum for the construction industry. Property 
management activities through Prime Estates have continued  to  expand
profitability and the number of major commercial properties under management
for the  Rotch Property Group and other clients has increased in the period to
over 200.

Whinney  Mackay-Lewis Limited, the architectural subsidiary achieved an
increase in  fee  income  over  the previous year but struggled to  breakeven 
against  a background of increasing costs.  The Group's exposure to any
potential  downturn ceased  as a result of the subsequent disposal of the
company subsequent to  the year end.

Foremans  Limited,  the mechanical and electrical engineering  subsidiary, 
also turned  in a disappointing performance as costs increased ahead of the 
increase in  fee  income.  The  Group's  exposure to any further 
deterioration  will  be minimised in June 2001 with the disposal of the
company.


PROSPECTS
Your  Board believes that the Group's future profitability and growth rests
with the  fulfilment  of Asite's potential and the utilisation of similar 
technology and  management skills to develop or acquire other technology
enabling ventures. The  development and implementation of the Asite toolkit,
as outlined above, has established  the base from which Asite intends to
establish itself as  a  market leader in the UK and Europe.  By offering a
comprehensive set of internet  based management tools to the European
construction sector and by delivering value  to the  whole of the supply
chain, the Board believes that Asite is well positioned to consolidate and
expand its customer base.


Your  Board  believes  that the steps already taken in  developing  systems 
and winning  nominations  from  a  variety  of  industry  sources,  including 
Asite shareholders,  underpins  its  confidence  that  a  substantial  and 
profitable business can be developed.


Walter Goldsmith
Chairman
4 June 2001


CONSOLIDATED PROFIT AND LOSS ACCOUNT
Year ended 31 December 2000

                                                                    
                                                      2000       1999
                                                     £'000      £'000
                                                                   
TURNOVER                                             11,242      7,438
                                                                   
Change in work in progress                            (71)        148
                                                    -------      -------
                                                                    
                                                     11,171      7,586
                                                    -------      -------      
Staff costs                                           7,953      4,738
Depreciation and amortisation                                      
(including exceptional impairment                                 
of goodwill amounting to                             1,441       114
£1,235,000)
Other operating charges                               5,217      2,103
                                                    -------      -------      
                                                     14,611      6,955
                                                    -------      -------      

OPERATING (LOSS)/PROFIT                              (3,440)      631
                                                                   
Net interest payable                                    (74)      (22)
                                                    -------      -------  
 (LOSS)/PROFIT ON ORDINARY                                          
ACTIVITIES BEFORE TAXATION                          (3,514)       609
Tax on (loss)/profit on ordinary                       (93)      (253)
activities
                                                    -------      -------      
(Loss)/profit for the financial year                (3,607)       356
                                                    -------      ------- 
                                                                   
(Loss)/earnings per share - basic and diluted       (6.3)p       2.4p
                          before exceptional item
                          - basic and diluted       (9.6)p       1.2p
                          after exceptional item
                                                                   

There  are  no  recognised gains and losses in either the  current  or 
previous financial  years  other  than the (loss)/profit for the year.  
Accordingly,  no statement of total recognised gains and losses is provided.

All transactions arise from continuing operations.

CONSOLIDATED BALANCE SHEET
31 December 2000
                                                             
                                                  2000       1999
                                                 £'000      £'000
FIXED ASSETS                                                  
Intangible fixed assets                           1,000       2,187
Tangible fixed assets                             1,603       851
                                                 ------      -------
                                                  2,603       3,038
CURRENT ASSETS                                                
Stock                                               570         318
Debtors                                           4,952       4,450
Cash at bank                                        563          84
                                                 ------      -------
                                                  6,085       4,852
CREDITORS: amounts falling due                                
 within one year                                 (6,011)     (3,780)
                                                 ------      -------
NET CURRENT ASSETS                                   74       1,072
                                                 ------      -------
TOTAL ASSETS LESS CURRENT LIABILITIES             2,677       4,110
                                                              
CREDITORS: amounts falling due                                
after more than one year                          (768)       (1,032)
                                                 ------      -------          
                                                  
NET ASSETS                                        1,909       3,078
                                                 ------      -------
                                                             
CAPITAL AND RESERVES                                          
Called up share capital                           3,955       3,146
Share premium account                             2,825       1,196
Merger reserve                                   (1,871)     (1,871)
Profit and loss account                           (3,000)       607
                                                 ------      -------
EQUITY SHAREHOLDERS' FUNDS                        1,909       3,078
                                                             

CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 December 2000
                                                              
                                                     2000       1999
                                                     £'000      £'000
Net cash (outflow)/inflow from operating            (1,030)       15
activities
                                                    -------     -------
Returns on investments and servicing of finance                
Interest received                                      102         19
Interest paid                                         (174)       (24)
Interest element of finance lease rental payments       (2)        (5)
                                                    -------     -------       
                                                       (74)        (10)
                                                    -------     -------       
Taxation                                                      
UK corporation tax paid                               (178)       (204)
                                                    -------     -------       
Capital expenditure                                           
Payments to acquire fixed assets                      (438)       (22)
Receipts from sale of fixed assets                      28          -
                                                    -------     -------       
                                                      (410)       (22)
Acquisitions and disposals                                    
Payments to acquire investments in subsidiary          -       (1,050)
undertakings
Acquired overdrafts                                    -         (470)
                                                    -------     -------       
                                                       -       (1,520)
                                                    -------     -------       
Net cash outflow before financing                  (1,692)     (1,741)
                                                             
Financing                                                     
Issue of ordinary share capital                      2,410         -
Repayment of borrowings                               (233)       (18)
Capital elements of finance lease rental payments      (33)         -
Exercise of share options                               27          -
                                                    -------     -------       
                                                     2,171        (18)
                                                    -------     -------       
Increase/(decrease) in cash in the year                479     (1,759)
                                                             


1.   TURNOVER

    The turnover of the Group arises in the United Kingdom.
    
    The  analysis  of  turnover and operating profit  before  tax  by  class 
    of business are:
    
                                     Turnover           Operating
                                                      (loss)/profit
                                 2000     1999      2000       1999
                                 £'000    £'000     £'000      £'000
Class of business:                                           
Property services                11,242   7,438     (1,354)     631
e-commerce portal                -        -         (2,086)     -
                                 ------   ------    -------    -----
                                 11,242   7,438     (3,440)     631
                                                             
The analysis of net assets employed by class of business is
Class of business:                                            
Property services                                     3,959     3,078
e-commerce portal                                    (2,050)    -
                                                     -------    -----         
                                                      1,909     3,078
                                                              

2.   EARNINGS PER SHARE
                                                       2000         1999
Basic                                                                 
Net (loss)/profit for the year:                              
Before exceptional items                            £(2,372,000)   £722,000
After exceptional items                             £(3,607,000)   £356,000
Weighted average number of ordinary shares           37,690,565   29,525,445
outstanding
                                                                      
(Loss)/earnings per share:                                 
Before exceptional items                               (6.3)p        2.4p
After exceptional items                                (9.6)p        1.2p
                                                                      
Diluted                                          
Net (loss)/profit for the year as for basic                        
Adjusted weighted average number of ordinary                        
shares outstanding                                  37,689,351   29,543,330
                                                                      
(Loss)/earnings per share:                                 
Before exceptional items                               (6.3)p        2.4p
After exceptional items                                (9.6)p        1.2p
                                                                      
Reconciliation of number of ordinary shares                        
Basic earnings per share: weighted average number    37,690,565   29,525,445
of shares
Adjustment in respect of potentially dilutive           (1,214)       17,885
share options
                                                     -----------   ---------
Diluted earnings per share: weighted average                        
number of shares                                     37,689,351   29,543,330
                                                                      

3.   RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

                                                   2000           1999
                                                  £'000          £'000
                                                                 
(Loss)/profit for the year                        (3,607)          356
Net proceeds of issues of new share capital        2,438         1,029
                                                  -------       -------
                                                  (1,169)        1,385
Opening shareholders' funds                        3,078         1,693
                                                  -------       -------       
Closing shareholders' funds                       1,909          3,078
                                                                 



4.   NET CASH (OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES

                                                   2000          1999
                                                  £'000         £'000
                                                                
Operating (loss)/profit                           (3,440)        631
Depreciation and amortisation charge               1,441         114
Loss on disposal of fixed assets                      56           -
                                                                
Movement in working capital:                                    
Stock                                              (252)         (148)
Debtors                                            (524)         (173)
Creditors                                          1,689         (409)
                                                  -------       -------       
                                                  (1,030)          15
                                                                

5.   SUBSEQUENT EVENTS

    On  20  March  2001, PremiSys Technologies Plc disposed of  Whitney 
Mackay-    Lewis  Limited  to  Woods  Bagot  UK Limited  and  five  of  the 
directors. £125,000  was paid in cash and there is deferred consideration  of 
expected to be £375,000.
    
    On  4  June  2001 the group exchanged contracts on the disposal of 
Foremans Limited  to  Barry  Shaw  and  Richard Kennedy  for  consideration 
of  £1.2 million.   In  addition,  the subsidiary assumed approximately 
£500,000  of overdraft and £300,000 of loan note liabilities.
    
    
    
6.   STATUS OF FINANCIAL INFORMATION IN THIS ANNOUNCEMENT

     
     THE  FINANCIAL  INFORMATION CONTAINED IN THIS REPORT  DOES  NOT 
CONSTITUTE STATUTORY  ACCOUNTS WITHIN THE MEANING OF SECTION 240 OF THE
COMPANIES  ACT 1985, BUT IS DERIVED FROM THOSE ACCOUNTS.  THE YEAR ENDED 31
DECEMBER  1999 COMPARATIVE  FIGURES  HAVE BEEN EXTRACTED FROM THE AUDITED 
ACCOUNTS.   THE ACCOUNTS  FOR THE YEAR ENDED 31 DECEMBER 1999 ON WHICH THE
AUDITORS  ISSUED AN  UNQUALIFIED  AUDIT REPORT AND WHICH DID NOT CONTAIN A 
STATEMENT  UNDER EITHER  SECTION  237  (2)  OR  (3) OF THE COMPANIES  ACT 
1985,  HAVE  BEEN DELIVERED  TO THE REGISTRAR OF COMPANIES.  THE STATUTORY
ACCOUNTS  FOR  THE YEAR ENDED 31 DECEMBER 2000 WILL BE FINALISED ON THE BASIS
OF THE FINANCIAL INFORMATION PRESENTED BY THE DIRECTORS IN THIS PRELIMINARY
ANNOUNCEMENT AND WILL  BE  DELIVERED TO THE REGISTRAR OF COMPANIES FOLLOWING 
THE  COMPANY'S ANNUAL GENERAL MEETING.