Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).

  • FEAnalytics.com
  • FEInvest.net
  • FETransmission.com
  • Investegate.co.uk
  • Trustnet.hk
  • Trustnetoffshore.com
  • Trustnetmiddleeast.com

For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.

WHAT INFORMATION DO WE COLLECT ABOUT YOU?

We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.

COOKIES

In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.

HOW WE USE INFORMATION

We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.

ACCESS TO YOUR INFORMATION AND CORRECTION

We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.

WHERE WE STORE YOUR PERSONAL DATA

The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.

CHANGES TO OUR PRIVACY POLICY

Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.

OTHER WEBSITES

Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.

CONTACT

If you want more information or have any questions or comments relating to our privacy policy please email publishing@financialexpress.net in the first instance.

 Information  X 
Enter a valid email address

Arcontech Group PLC (ARC)

  Print      Mail a friend       Annual reports

Monday 21 September, 2009

Arcontech Group PLC

Final Results

RNS Number : 3543Z
Arcontech Group PLC
21 September 2009
 



RNS Release

21 September 2009


ARCONTECH GROUP PLC


PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2009


Arcontech Group PLC (AIM: ARC) ('Arcontech' or the 'Company'), providers of products and services for real-time financial market data processing and trading, reports its preliminary results for the year ended 30 June 2009.


Financial and business highlights:


  • Revenue from continuing operations increased by 19% to £1.40m (2008: £1.18m)


  • Contracted recurring revenue increased by 43% to £0.68m (2008: £0.48m)


  • Group loss for the year reduced by 71% to £0.47m (2008: £1.6m)


  • Continuing intention to increase investment in sales and marketing


  • Name changed to Arcontech Group PLC


  • Completed substantial fund raising in September 2009 amounting to approximately £1.5 million (net of expenses) - see separate announcement.


Richard Last, Chairman of Arcontech, said:


'As with many businesses of similar size to Arcontech, predicting the financial outcome over a relatively short period is always difficult and fraught with uncertainty.  The timing of contract wins and the precise point of delivery or deployment of a system is not easy to determine.  

That said, the new business won by Arcontech in the second half of the year and the increasing level of new prospects for our CityVision and AXE products, together with our recently strengthened balance sheet gives great encouragement that significant opportunities for growth exist

We are optimistic for the prospects of the business in the coming year.'


Enquiries, please contact:


Andrew Miller (Chief Executive)

Arcontech Group PLC

020 7256 2300

Richard Last (Chairman and Non-Executive Director)

Arcontech Group PLC 

01608 683 108

Shane Gallwey

Astaire Securities PLC

020 7448 4400
















Chairman's Statement

Commentary 

The year ended 30 June 2009 has been one of significant change for Arcontech Group PLC.  It brought to a close our involvement with the loss-making MarketTerminal business; the company's name was changed to Arcontech Group PLC, reflecting our focus on the CityVision market data platform and AXE, the CFD and spread betting business.  

We have also rationalised our cost base to improve our efficiency and competitiveness.  This leaves the Company well placed to benefit from the improved market conditions for our products and services which are now evident. 

Turnover from continuing operations for the year ended 30 June 2009 amounted to £1,395,078 (2008: £1,177,173). The Group reported a reduced loss for the year of £470,550 (2008: £1,637,498). Underlining this was a significant reduction in the loss for the second half of the year of £71,237 compared to £399,313 in the first half and £722,535 in the corresponding six months to June 2008, reflecting the reduction in costs and an improvement in new business activity. Contracted support revenues for the year amounted to £678,009 (2008: £473,746), representing 49% of total revenue (2008: 40%).

Having reduced our cost base and improved operational efficiency our focus is now on increasing the level of new sales. The company has the capacity to deliver increases in turnover without significantly expanding its cost base so that any increase in sales adds disproportionately to the overall level of profit achieved. 

It continues to be our intention to increase our investment in sales and marketing.  

Financing and Share Placing 

The Group had cash of £426,710 at 30 June 2009 (30 June 2008: £1,082,604) up from £374,478 at 31 December 2008.  As expected, the Arcontech business was broadly cash neutral at the operating level in the second half of the year. 

To strengthen our balance sheet and provide further support and resources for our sales and marketing drive we have, in September 2009, placed 776,635,000 shares (of which 199,750,000 are subject to shareholder approval at the Annual General Meeting) at 0.2 pence per share to raise additional funds of approximately £1.5 million, after anticipated costs.  This share placing was supported by both existing and new shareholders and we thank them for their support. 

Management and Staff

I would like to thank our management and staff for their continued hard work, commitment and dedication during what undoubtedly has been a challenging year.  

Having been through a period of cost reduction and business realignment when a number of people left the company, we are now entering a period of growth and investment and I am confident that all our staff will continue to support and contribute to the future success of the business. 

Outlook

As with many businesses of similar size to Arcontech, predicting the financial outcome over a relatively short period is always difficult and fraught with uncertainty.  The timing of contract-wins and the precise point of delivery or deployment of a system is not easy to determine.  

That said, the new business won by Arcontech in the second half of the year and the increasing level of new prospects for our CityVision and AXE products, together with our recently strengthened balance sheet gives great encouragement that significant opportunities for growth exist

We are optimistic for the prospects of the business in the coming year. 


         Richard Last

      Chairman

18 September 2009

 

Chief Executive's Review


This review comes after my first full year as CEO, one that has seen a great deal of change and some significant successes despite perhaps the worst market conditions I have ever experienced.


The year had four main themes: 

  • dealing with issues following the decision to withdraw from the MarketTerminal business

  • streamlining the business and reducing costs in response to the prevailing economic climate

  • restructuring and building business momentum and the sales pipeline for the proven Arcontech CityVision products

  • developing and enhancing products in response to customer demand


Following withdrawal from the MarketTerminal business during 2008 the group was renamed and the business refocused under the 'Arcontech Group PLC' banner.  


Regrettably staff reductions were necessary but were mostly achieved by normal staff turnover. We have the entire technical team from the time of the merger with KTS intact and, indeed, have expanded this resource, leaving us in a strong position to address market opportunities. I wish to thank the staff for their splendid efforts and support during such a difficult time.


Working with our sell-side investment banking clients, we have continued to enhance Arcontech's traditional 'CityVision' market data platform, identifying opportunities for new and existing products.


We are addressing sales and marketing of CityVision with both new and re-assigned resource. This has led to important business with major new banking clients in the second half, significantly reducing losses, greatly helping cash flow, and adding to growth in recurring annual revenue.


Increased international activity is also yielding results and we are seeing strong interest from several regions, with active product evaluations and contract negotiations in process. Our independence from the major data vendors is an important factor and is fundamental in many of these opportunities. We are the largest independent company with proven products in some areas - indeed, the only credible firm in some cases. 


The legacy track record has impeded sales progress in some instances due to concerns over financial stability. However, we believe that the improvement in this year's results, together with a strong balance sheet following the recent funding round, will counter this concern. CityVision will benefit from planned increases in sales and marketing spend over the next 12 months.


The core development of AXE, our platform for on-line and telephone trading of retail derivatives, is now substantially complete. We currently have two customers with expanding client bases - one involved with both Contracts for Difference trading (CFDs) and financial spread betting and the other with CFD trading.


The 'credit crunch' has affected the previously buoyant market for such systems. We minimised sales and marketing costs but continued to develop the product, working with our existing clients. We are seeing early signs of recovery in this area and will be increasing our sales and marketing efforts imminently.


Existing operators in this area continue to sign up new clients, often via 'white labels' for introducing brokers (IBs). We believe that there will be considerable opportunities for AXE and its component technology as larger IBs see the benefits of offering margin products directly to their retail clients and via their own IB arrangements.


Overall, I am pleased that the note of optimism expressed last year was well founded and that we have gained some significant new business. The pipeline today of identifiable, well qualified prospects is considerably stronger than it was for the corresponding period of 2008. 


I look forward to working with staff, clients and prospects to achieve the growth that we believe is possible in the coming year.


Andrew Miller

Chief Executive

18 September 2009


GROUP INCOME STATEMENT


For the year ended 30 June 2009




Note

2009


2008




£


£


Continuing operations






Revenue

2

1,395,078


1,177,173


Distribution costs


(37,138

)

(32,677

)

Administrative costs


(1,930,576

)

(2,287,111

)

Administrative costs - exceptional

3

(2,103

)

(222,062

)

Operating loss from continuing operations


(574,739

)

(1,364,677

)

Finance income


8,417


36,548


Loss before taxation from continuing operations


(566,322

)

(1,328,129

)

Taxation


38,458


67,754


Loss for the year from continuing operations


(527,864

)

(1,260,375

)

Discontinued operations






Profit/(loss) for the year after tax from discontinued operations


57,314


(377,123

)

Loss for the year


(470,550

)

(1,637,498

)

Earnings per share (basic and diluted)

4





From continuing operations


(0.07

)p

(0.24

)p

From discontinued operations


0.01

p

(0.07

)p

From continuing and discontinued operations


(0.06

)p

(0.31

)p






















GROUP STATEMENT OF CHANGES IN EQUITY


For the year ended 30 June 2009


For the year ended 30 June 2009



Share 

capital

Share

premium

Share option reserve

Retained

earnings

Shares to be issued

Total 

equity


£

£

£

£

£

£

Balance at 1 July 2007


332,532


   6,316,870


-


(5,279,626)


  -


1,369,776

Loss for the year

-

 

-

-

(1,637,498)

  -

(1,637,498)

 

Total recognised income and expenses 

for the year


-


-


-


(1,637,498)


  -


(1,637,498)

Share-based payments


-


-


45,920


-


-

   


45,920

Issue of equity share capital

403,911

 

2,200,070

-

-

-

2,603,981

 

Balance at 30 June 2008

736,443

      8,516,940 

45,920

(6,917,124)

  -

2,382,179

Loss for the year

 

-

 

-

 

-

 

(470,550)

 

-

 

(470,550)

Total recognised income and expenses 

for the year

-

         -

-


(470,550)


  -

 

(470,550)

Share-based payments

-

-

62,822

-

-

62,822

Recognition of equity shares to be issued


-

-

-

-

200,606

 

200,606


Balance at 30 June 2009

736,443

  8,516,940

108,742

(7,387,674)

  200,606

2,175,057











GROUP BALANCE SHEET


As at 30 June 2009








2009
£


2008
£












Non-current assets










Goodwill






1,715,153


1,634,547


Property, plant and equipment






57,638


154,390


Investments in subsidiaries






-


-


Total non-current assets






1,772,791


1,788,937












Current assets










Trade and other receivables






521,328


563,159


Cash and cash equivalents






426,710


1,082,604


Total current assets






948,038


1,645,763












Current liabilities










Trade and other payables






(545,772

)

(1,052,521

)

Total current liabilities






(545,772

)

(1,052,521

)











Net current assets






402,266


593,242












Net assets






2,175,057


2,382,179












Equity










Called up share capital






736,443


736,443


Shares to be issued






200,606


-


Share premium account






8,516,940


8,516,940


Share option reserve






108,742


45,920


Retained earnings






(7,387,674

)

(6,917,124

)







2,175,057


2,382,179





GROUP CASH FLOW STATEMENT


For the year ended 30 June 2009



Note

2009


2008




£


£


Continuing operations






Net cash used in operating activities


(687,627

)

(1,162,698

)

Investing activities






Interest received


7,193


36,548


Acquisition of subsidiary, net of cash acquired


-


(784,523

)

Purchases of plant and equipment


(1,956

)

(75,178

)

Disposal of plant and equipment


19,500


-


Net cash received/(used) in investing activities


24,737


(823,153

)

Financing activities






Proceeds on issue of shares


-


2,239,000


Expenses paid in connection with share issues


-


(130,019

)

Net cash generated from financing activities


-


2,108,981


Net (decrease)/increase in cash and cash equivalents from continuing operations


(662,890

)

123,130


Discontinued operations






Cash flows from operating activities


4,067


(519,153

)

Cash flows from investing activities


2,929


5,176


Net increase/(decrease) in cash and cash equivalents from discontinued operations


6,996


(513,977

)

Net decrease in cash and cash equivalents


(655,894

)

(390,847

)

Cash and cash equivalents at beginning of year


1,082,604


1,473,451


Cash and cash equivalents at end of year


426,710


1,082,604





















NOTES TO THE PRELIMINARY ANNOUNCEMENT


For the year ended 30 June 2009


1.    Basiof preparation

    

The financial information presented in this preliminary announcement is extracted from, and is consistent with, the Group's audited financial statements for the year ended 30 June 2009. 

The preliminary announcement for the year ended 30 June 2009 was approved by the Board of Directors on 18 September 2009. The financial information set out above does not constitute the Company's statutory financial statements for the year ended 30 June 2009 or 2008 but is derived from those financial statements. Statutory financial statements for 2009 will be delivered to the registrar of companies following the Company's annual general meetingThe financial statements for the year ended 30 June 2009 and 2008 were reported on by the auditors without qualification or an emphasis of matter reference and did not contain a statement under section 498(2) or (3) of the Companies Act 2006 (2008: a statement under section 237(2) or (3) of the Companies Act 1985).

The Group's results have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU.


2. Revenue


An analysis of the Group's revenue is as follows:




2009
£


2008
£


Financial information service, advertising and sponsorship, software development and consultancy 






Continuing and discontinued operations 


1,395,078


1,939,604


Discontinued operations 


-


(762,431

)

Continuing operations


1,395,078


1,177,173




3. Administrative costs - exceptional:




2009
£


2008
£


Directors' remuneration - payment in lieu of notice


2,103


135,315


(in respect of Marc Pinter-Krainer, the former Chief Executive)






Restructuring costs - office relocation expenses


-


86,747




2,103


222,062















NOTES TO THE PRELIMINARY ANNOUNCEMENT (CONTINUED)


For the year ended 30 June 2009 (continued)


4.    Earnings per share 




2009


2008




£


£








Earnings






Earnings for the purpose of basic and diluted earnings per share being net profit/(loss) attributable to equity shareholders:






Continuing operations


(527,864

)

(1,260,375

)

Discontinued operations


57,314


(377,123

)



(470,550

)

(1,637,498

)



No.


No.


Number of shares






Weighted average number of ordinary shares for the purpose of basic earnings per share


736,442,943


520,890,310


Number of dilutive shares under option


-


-


Weighted average number of ordinary shares for the purposes of dilutive earnings per share


736,442,943


520,890,310


The calculation of diluted earnings per share assumes conversion of all potentially dilutive ordinary shares, all of which arise from share options. A calculation is done to determine the number of shares that could have been acquired at fair value, based upon the monetary value of the subscription rights attached to outstanding share options. Share options are anti-dilutive and are therefore not included above.



5    Dividends


        There were no dividends paid or proposed during the period (2008: Nil).



6    Post balance sheet events


On 10 July 2009, the Company issued 18,236,927 shares of 0.1 pence, being the deferred consideration in 

connection with the acquisition of Arcontech Limited on 4 September 2007. The shares were issued at a price 

of 1.1 pence as per the share purchase agreement and amounted to £200,606.


On 15 September 2009, the Company placed 776,635,000 shares of 0.1 pence (of which 199,750,000 are subject to shareholder approval at the Annual General Meeting). The shares were placed at a price of 0.2 pence and amounted to £1,553,270.


7. Annual General Meeting


The annual general meeting of  the Company will be held at the Company's offices, 8th Floor, Finsbury Tower, 103-105 Bunhill Row, London EC1Y 8LZ on 29 October 2009 at 10 a.m.






NOTES TO THE PRELIMINARY ANNOUNCEMENT (CONTINUED)


For the year ended 30 June 2009 (continued)


8.     Copies of this statement


Copies of this statement are available from the Company Secretary at the Company's registered office at 8th Floor Finsbury Tower, 103-105 Bunhill Row, LondonEC1Y 8LZ or from the Company's website at www.arcontech.com.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
FR CKKKDOBKDFCB