Interim Results - Pre-tax Profits Up 23%
Comino PLC
25 November 1999
COMINO plc
INTERIM RESULTS ANNOUNCEMENT
PBT up 23%; Dividend up 24%
Disposal for £3.85m of Prologic subsidiary to generate £2.5m profit
Comino plc ('Comino'), the provider of computer systems for occupational
pensions, housing and local authority revenues & benefits, announces Interim
Results for the six months ended 30 September 1999.
Highlights of the interim results:
Sep 1999 Sep 1998 Increase
* Turnover £11.04m £8.72m 27%
* Profit before tax £1.56m £1.27m 23%
* Earnings per share - full tax 8.02p 7.24p 11%
charge for the first time
* Dividend 1.55p 1.25p 24%
* Cash balances £6.81m £5.86m 16%
* Disposal of Prologic subsidiary, which sells fashion and clothing systems,
to generate profit of £2.5m
* Anticipated group trading profit not expected to change materially as a
result of transaction
* Comino now focused on core business of providing systems for occupational
pensions, housing and local authority revenues & benefits
* Two remaining subsidiaries, Context and ISE, will now converge into a
unified Comino model and this will allow performance to be reported
more clearly on a divisional basis by sector
* ISE gains 5 Local Authority Revenue sites in September, wins 4th call-
centre from existing housing customer
* Context customer service demand at a high level
* Comino admitted to Official List from AIM in July 1999.
The Company made the following comments on its results:
'These results are on target with market expectations and reflect solid
performance. Comino starts the second half with balanced order books for
customer services, support and new installations and is in a strong position
as the millennium period begins to close. Our staff have successfully tackled
Y2K compliance issues alongside an ambitious development programme whilst
maintaining customer support and service delivery.
Comino is well balanced to complete the year and well positioned to take
advantage of future opportunities.'
For further information please contact:
Garth Selvey, Chief Executive tel: 0171 786 9600 until 12:30pm on the day
Paul Clifford, Finance Director thereafter: 01628 525 433
Interim Statement
------------------------------------------------------------------------------
These results are on target with market expectations and reflect solid
performance. Comino is well balanced to complete the year and well positioned
to take advantage of future opportunities.
------------------------------------------------------------------------------
Comino is pleased to report a profit before tax for the half year to 30
September 1999 of £1.56m, an increase of 23% on the same period last year.
Turnover increased by 27%. EPS suffered a full tax charge (1998 - 24%) for
the first time and increased more slowly at 11%. Cash rose to £6.81m up 16%
on the same period last year and the interim dividend increased by 24% to 1.55
pence per share. Comino was admitted to the Official List of the London Stock
Exchange on 19 July of this year.
Prologic which has been recognised for some time as a non-core activity was
the subject of a buyout by its management. The sale will generate a profit on
disposal of £2.5m and cash after tax of £2.8m. The level of anticipated group
trading profit will not be materially altered as a result of this transaction.
We thank Prologic management and staff for their contribution to the Comino
Group and wish them success in their new venture.
Comino is now focused entirely on its 'Business to Public' model and provides
computer systems for Occupational Pensions, Housing and Local Authority
Revenue administration. Context and ISE will now converge into a unified
Comino model and this will allow performance to be reported more clearly on a
divisional basis by sector.
Gordon Skinner, the Chairman, was regrettably forced to retire though ill
health in October of this year and the Board wishes to thank him for his very
considerable contribution. David Quysner has taken the Chair on a temporary
basis pending the appointment of a new Chairman.
Throughout the period, ISE has maintained its normal pattern of trading and in
particular gained five Local Authority Revenue sites in September. ISE has
also won its fourth call-centre sale from an existing Housing customer.
Context countered the expected Y2K new business downturn with an increase in
service delivery and service demand from the customer base remains at a high
level. Comino starts the second half with balanced order books for customer
services, support and new installations and is in a strong position as the
millennium period begins to close.
Our staff have successfully tackled Y2K compliance issues alongside an
ambitious development programme whilst maintaining customer support and
service delivery. We thank staff and customers alike for their continued hard
work and support.
Consolidated Profit and Loss Account
6 months to 6 months to Year to
30 September 30 September 31 March
1999 1998 1999
£'000 £'000 £'000
Turnover 11,036 8,721 18,595
Cost of sales (3,650) (2,620) (5,784)
------------ ------------ ------------
Gross profit 7,386 6,101 12,811
Administrative expenses (5,978) (4,981) (10,377)
------------ ------------ -----------
Operating profit 1,408 1,120 2,434
Net interest receivable 154 146 284
------------ ----------- ----------
Profit on ordinary activities
before taxation 1,562 1,266 2,718
Tax on profit on ordinary
activities (Note 1) (473) (303) (676)
------------ ----------- ----------
Profit on ordinary activities
after taxation 1,089 963 2,042
Dividend proposed (212) (175) (513)
----------- ---------- ----------
Retained profit for the period 877 788 1,529
====== ===== =====
Earnings per share (Note 2) 8.02p 7.24p 15.21p
====== ===== =====
Diluted earnings per share 7.79p 6.97p 14.83p
====== ===== =====
Dividend per share 1.55p 1.25p 3.75p
====== ===== =====
The dividend of 1.55 pence per share will be paid on 27 January 2000. The
dividend record date is 10 December 1999.
Consolidated Balance Sheet
30 September 30 September 31 March
1999 1998 1999
£'000 £'000 £'000
Tangible fixed assets 829 692 649
Current assets
Stocks 911 376 859
Debtors 4,298 4,108 6,596
Cash at bank and in hand 6,809 5,859 7,449
----------- ----------- -----------
12,018 10,343 14,904
Creditors falling due
within one year (4,109) (3,877) (5,678)
----------- ----------- -----------
Net current assets 7,909 6,466 9,226
----------- ----------- -----------
Total assets less
current liabilities 8,738 7,158 9,875
Creditors falling due after
more than one year (515) (381) (55)
Deferred income (4,065) (4,243) (6,545)
------------ ------------ -----------
4,158 2,534 3,275
======= ======= ======
Capital and reserves
Share capital 682 678 678
Share premium account 4,335 4,334 4,334
Profit and loss account (859) (2,478) (1,737)
----------- ----------- -----------
Shareholders' funds 4,158 2,534 3,275
====== ====== ======
Consolidated Cash Flow Statement
6 months to 6 months to Year to
30 September 30 September 31 March
1999 1998 1999
£'000 £'000 £'000
Net cash inflow/(outflow)
from operating activities (72) 1,918 4,134
Net returns on investments
and servicing of finance
Interest received 154 146 284
----------- ----------- -----------
154 146 284
----------- ----------- -----------
Tax paid 0 0 (451)
Capital expenditure
Purchase of tangible fixed assets (356) (188) (341)
Sale of tangible fixed assets 0 21 29
----------- ----------- -----------
Net cash outflow from
capital expenditure (356) (167) (312)
------------ ------------ ------------
Equity dividends paid (339) (334) (502)
Financing
Issue of shares (net of costs) 6 31 31
Repayment of borrowings (33) (64) (64)
----------- ----------- -----------
Net cash inflow/(outflow)
from financing (27) (33) (33)
----------- ----------- -----------
Management of
liquid resources
Increase in short term deposits 0 (1,800) 2,200
----------- ----------- -----------
Increase/(decrease) in cash (640) (270) 5,320
====== ====== ======
Notes to the Interim Accounts
1. The charge for taxation is based on the expected rate for the financial
year.
2. The calculation of earnings per share for the six months ended 30
September 1999 is based on the profit for the financial period of
£1,089,000 (1998 - £963,000) and on 13,571,975 (1998 - 13,291,187)
ordinary shares being the average number of shares in issue during the
period.
3. The interim statement, which has been prepared on the same accounting
basis as those set out in the financial statements for the year ended 31
March 1999, was approved by the Board on 24 November 1999. The
foregoing financial information does not represent full accounts within
S240 of the Companies Act 1985 and has not been reported on by the
auditors or delivered to the Registrar of Companies.
4. The above results for the year ended 31 March 1999 have been abridged
from the full Group accounts for that year, which received an
unqualified auditors' report and which have been delivered to the
Registrar of Companies.
Independent Review Report to Comino plc
Introduction
We have been instructed by the company to review the interim financial
information set out on pages 3 to 5 and we have read the other information
contained in the interim report and considered whether it contains any
apparent mis-statements 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 Listing
Rules of the London Stock Exchange 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 in Bulletin 1999/4
'Review of Interim Financial Information' issued by the Auditing Practices
Board. 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 accounting policies and
presentation have been consistently applied unless otherwise disclosed. A
review excludes audit procedures such as tests of control 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 audit. Accordingly, we do not
express an opinion on the interim financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the interim financial information as presented for the six
months ended 30 September 1999.
Grant Thornton
Chartered Accountants
London
24 November 1999
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