Interim Results - Turnover Up 287%
Mondas PLC
14 December 1999
Mondas PLC
e-Commerce software house announces turnover up 278% and strategic focus on
the securities and banking sector
Mondas PLC ('Mondas' or 'the Company') announces interim results for the
six months ended 31st October 1999. Mondas also announces that it will
focus its UK efforts on the securities and banking sector. This move
capitalises upon the financial sector experience within the Company and its
successful client relationships including Brewin Dolphin Securities Limited
and Christiania Markets, of Norway.
Key points:
* 287% increase in turnover to £641,678 (1998: £223,945)
* 12% reduction in pre-tax loss (before amortisation and interest) to
£137,839 (1998: £153,846)
* New clients include BBC Worldwide
* Larvik kommune (Norwegian Local Authority) recently launched its
Intranet and Internet site based upon IntraLink ST (sale through Ephorma
AS) which was hailed as a milestone in kommune services to Norwegian
citizens
Commenting, Chairman, Tim Simon, said:
'The dramatic increase in our turnover and the number of well known names
on our client list demonstrates our progress. In addition, had it not been
for the one-off recruitment costs we incurred, we were almost at break-even
point in the last three months of the period.
'Our products and skills are ideally suited to the securities and banking
sector and I believe that our focus on this market will continue our plan
for controlled expansion'
For further information:
Tim Simon, Mondas PLC: 01932 334 600
Richard Sunderland, GCI Focus: 0171 398 0800
MONDAS PLC
INTERIM REPORT FOR THE SIX MONTH PERIOD
ENDED 31 OCTOBER 1999
CHAIRMAN'S STATEMENT
Consolidated Unaudited Financial Results
During the period, turnover grew by 287% to £641,678 (1998: £223,945)
accompanied by a 11.7% reduction in pre-tax loss before amortisation of
goodwill and interest to £137,839 (1998: £156,174). There was a lower cash
outflow than in the comparative period and the loss per share was reduced
to 3.1p (1998: 3.4p).
Goodwill amortisation increased to £258,000 (1998: £54,185) due to the
acquisition of Reality Communications Scandinavia AS in November 1998.
During the period a substantial contract was agreed with Ephorma AS (see
below). It is expected that significant deliveries of product will take
place in the second half of the year and therefore the majority of the
revenue received from Ephorma in this period has been treated as deferred
income.
The Directors have not declared a dividend for the period.
The Company was on the verge of breaking even in the final three months of
the period excluding recruiting fees relating to the expansion of the sales
and technical teams.
SALES & MARKETING
The Financial Markets and E-Commerce
In the first quarter of the current financial year the Company conducted an
in-depth review of its sales and marketing strategy. This led to an
increased focus on the UK securities and banking sector, as our bridge-head
strategy, to increase revenues in the financial vertical market. This
market is particularly attractive to us, leveraging both our pedigree and
core competences. We have found through existing clients like Brewin
Dolphin Securities Ltd and Christiania Markets, that our solutions,
products and skills are ideally suited to address key business and IT
requirements within medium to large securities and banking clients.
Whilst we have the core technology components required for e-business and e-
commerce in any market, (Internet / intranet / extranet, business process
control, workflow, computer telephony integration, and business
applications), the financial sector is the first we intend to develop as a
vertical market with industry-specific applications such as Web and
Intranet Publishing, Straight Through Processing and Operational Risk
Management.
Sales Activity
In the UK, Brewin Dolphin Securities Limited, a long-term client of Mondas
PLC, continued to use Mondas' consulting, systems integration / migration
and development expertise, managed by a dedicated project director, and to
increase its competitive edge through our Client Relationship Management
solution.
We are delighted to add BBC Worldwide to our client list. Mondas provided
senior management consultancy on technical and commercial issues involving
the BBC Worldwide's Web presence.
Norway is a strengthening region for the Company, with progress in several
key areas.
Our relationship with Ephorma AS, a subsidiary of Telenor AS (the Norwegian
Telecommunications company), has positioned Mondas as the market leader for
Intranet solutions for the kommune (Norwegian Local Authorities) market.
Ephorma is the largest Norwegian software house addressing the Government
sector. In the last few days Larvik kommune has launched its Intranet and
Internet site, based upon IntraLink ST. The event was hosted by the local
Councillor (Lord Mayor) and was very well received by the local press and
featured in two television programmes, hailing it a milestone in kommune
services to Norwegian citizens.
Progressing the securities and banking strategy, we continue to develop our
relationship with Christiania Markets, the investment banking branch of K-
Bank, Norway's second largest bank. Christiania Markets uses our products
as a platform for its Internet strategy, to provide an intranet and
extranet service for its client executives, clients and investors to
receive market and investment reports produced by the research analysts of
Christiana Markets.
Since the end of the period under review, Mondas has established a working
relationship with Visma Intraview, to promote IntraLink ST, alongside its
project management packages, TimeEase and TimeEase Web, into large
Norwegian and international corporations. Visma Intraview is a division of
Visma Group, one of Scandinavia's leading software houses with a global
presence providing control systems adapted to commerce, shipping and the
public sector.
PRODUCTS
The focus during this period has been the integration of the products and
developing applications for the financial sector.
The new Web and intranet publishing module, however, is of particular note.
It enables non-technical users to publish news and information to their
intranet or website directly from desktop applications, such as Microsoft's
Word, controlled by a workflow process, such as authorisation. It is this
module that is deployed at Christiania Markets.
RECRUITMENT
We have recruited a number of sales and technical personnel during the
period with proven expertise in e-Commerce, securities and banking. We
shall continue to recruit in line with our expansion programme both in the
UK and Norway.
DIRECTORS
Matthew Crook joined the team just prior to the start of the period as
Director of Sales & Marketing. He was appointed to the Board of Mondas PLC
on 14 September 1999.
Since the end of the period Tony Marienthal, who wishes to return to his
native California, resigned as a director but continued as a consultant to
the company, working on the BBC Worldwide contract. His intention is to
establish a business which will act as a Mondas software products reseller
in the USA. In light of this development, we do not intend to maintain our
own presence in the USA but will instead transfer ownership of IntraLink ST
Inc to Mr Marienthal for a consideration of £1 so that this company can act
as our reseller.
YEAR 2000 ISSUES
The Company's products, Intralink ST, Radica and Radicall were all created
with a clear understanding of the Year 2000 issue and were built with the
millennium in mind. The Company has been advised by the relevant third
parties that the products which work alongside ours, such as the object
database, ObjectStore from Object Design Inc, are Year 2000 compliant. It
is the Directors' belief that the risks of the Year 2000 issue to the
Company are minimal and there are no associated costs foreseen at this
time.
FUTURE PROSPECTS
We are in the process of a sales campaign targeted to organisations in the
financial sector which we have identified as likely to benefit the most
from our products and services. The combined skills and finance industry-
specific experience of Mondas's consultants make a formidable team whom we
believe are more than capable of achieving a satisfactory market share.
The Directors are confident that the rapidly growing e-business and e-
broking market, within the financial sector, will reap benefits from the
tailored solutions and applications developed on the building blocks of
Mondas's skills and Internet, workflow and telephony technologies.
We plan steady growth through this clearly defined focus. As we pick up
momentum, we intend to address additional new markets in a controlled
programme of expansion.
Geographically, we shall continue to exploit our position as market leader
in intranet software to Norwegian local authorities and focus on market
share within the UK. We will remain in touch with the US market but any
business secured will be serviced from the UK office until we can expand
our presence safely across the world.
We will continue to look for joint venture opportunities and growth through
the acquisition of complementary skills, technologies and clients.
You may like to visit the Mondas web site www.mondas.com. In the new year
we will be launching a new Investor Relations section in the website. As
ever we welcome feedback through the site.
Tim Simon
Chairman
14 December, 1999
INDEPENDENT REVIEW REPORT
TO MONDAS PLC
FOR THE SIX MONTHS ENDED 31 OCTOBER 1999
Introduction
We have been instructed by the company to review the financial information
set out on pages 6 to 9, and we have read the other information contained
in the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the interim 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 reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board. A review consists
principally of making enquires of group management and applying analytical
procedures to the financial information and underlying financial data and
based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review
excludes audit procedures such as tests of controls and verification of
assets, liabilities and transactions. It is substantially less in scope
than an audit performed in accordance with Auditing Standards. Accordingly
we do not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications
that should be made to the financial information as presented for the six
months ended 31 October 1999.
The Wells Partnership
Chartered Accountants
The Old Rectory
Church Street
Weybridge
Surrey
KT13 8DE
Date: 14 December 1999
MONDAS PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE 6 MONTHS ENDED 31 OCTOBER 1999
6 months 6 months 12 months
ended ended ended
31 October 1999 31 October 1998 30 April 1999
Unaudited Unaudited Audited
£ £ £
Turnover 641,678 223,945 955,301
Cost of sales (244,756) (149,941) (244,056)
Gross profit 396,922 74,004 711,245
Distribution and administrative
expenses (792,761) (284,363) (1,242,004)
Operating loss (395,839) (210,359) (530,759)
Interest receivable 5,749 2,355 9,989
Loss before taxation (390,090) (208,004) (520,770)
Taxation - - 692
Loss for period (390,090) (208,004) (520,078)
Profit and loss account
brought forward (1,425,592) (905,514) (905,514)
Profit and loss account
carried forward (1,815,682) (1,113,518) (1,425,592)
Loss per share (3.1p) (3.4p) (5.7p)
There are no recognised gains or losses for the above periods other than
the trading losses.
None of the group's activities were acquired or discontinued in the current
financial period.
MONDAS PLC
CONSOLIDATED BALANCE SHEET AT 31 OCTOBER 1999
At 31 October At 31 October At 30 April
1999 1998 1999
Unaudited Unaudited Audited
£ £ £ £ £ £
FIXED ASSETS
Intangible 1,782,481 298,033 2,040,481
Tangible 43,728 35,133 60,961
1,826,209 333,166 2,101,442
CURRENT ASSETS
Stocks 4,132 9,684 1,177
Debtors 290,647 143,859 242,721
Cash at bank
and in hand 117,377 40,406 245,286
412,156 193,949 489,184
CREDITORS: Amounts
falling due within
one year (262,013) (156,788) (225,218)
Net current assets 150,143 37,161 263,966
NET ASSETS 1,976,352 370,327 2,365,408
CAPITAL AND RESERVES
Called up share capital 1,261,185 611,175 1,257,740
Share premium account 2,530,849 872,670 2,533,260
Profit and loss account (1,815,682) (1,113,518) (1,425,592)
SHAREHOLDERS' FUNDS 1,976,352 370,327 2,365,408
The interim accounts were approved by the Board of Directors on 14 December
1999 and signed on its behalf by:
Tim Simon
Chairman
MONDAS PLC
CONSOLIDATED CASH FLOW
STATEMENT FOR THE SIX MONTHS ENDED 31 OCTOBER 1999
6 months 6 months 12 months
ended ended ended
31 October 1999 31 October 1998 30 April 1999
Unaudited Unaudited Audited
£ £ £
RECONCILIATION OF OPERATING
LOSS TO NET CASH OUTFLOW
Operating loss (395,839) (210,359) (530,759)
Depreciation 14,052 10,695 27,451
Amortisation 258,000 54,185 289,687
Movement in stocks (2,955) (9,628) (1,121)
Movement in debtors (47,926) (79,666) (150,135)
Movement in creditors 36,795 92,851 (40,319)
Net cash outflow from
operating activities (137,873) (141,922) (405,196)
CASH FLOW STATEMENT
Net cash outflow from
operating activities (137,873) (141,922) (405,196)
Returns on investments and
servicing of finance 5,749 2,355 9,989
Capital expenditure 3,181 (5,251) (34,651)
Acquisitions and disposals - - 13,267
Cash outflow before
financing (128,943) (144,818) (416,591)
Financing - issue of shares 1,034 - 476,653
(Decrease)/increase
in cash (127,909) (144,818) 60,062
ANALYSIS OF MOVEMENTS IN CASH AT BANK AND IN HAND
Balance at beginning
of period 245,286 185,224 185,224
Net cash (outflow)/inflow (127,909) (144,818) 60,062
Balance at end of period 117,377 40,406 245,286
MONDAS PLC
NOTES TO THE INTERIM RESULTS
FOR THE 6 MONTHS ENDED 31 OCTOBER 1999
1. RESULTS
The results for the period have been prepared on a historical cost basis
using the accounting policies adopted by the group in its financial
statements for the year ended 30 April 1999, and in accordance with the
Statement on Interim Reports issued by the Accounting Standards Board.
2. CONSOLIDATED ACCOUNTS
The consolidated accounts represent the results of Mondas Plc and its
100% wholly owned subsidiaries Mondas Information Technology Limited,
Reality Communications Scandinavia AS (a company registered in Norway)
and Reality Communications (Internet) Limited for the six months ended
31 October 1999. The interim results are unaudited, but have been
reviewed by the auditors in accordance with the guidance set out in
Bulletins 1999/4, 'Review of Interim Financial Information,' issued by
the Auditing Practices Board.
3. DIVIDENDS
The directors are not declaring a dividend for the six months ended 31
October 1999.
4. LOSS PER SHARE
Basic loss per share is based on the loss attributable to the members
at Mondas PLC and on the weighted average number of shares outstanding
throughout the 6 months ended 31 October 1999 of 12,577,963 (1998 -
weighted average number of 6,111,731 shares). No material dilution of
loss per share would arise if all outstanding share options were
exercised.
5. GOING CONCERN
The Directors have reviewed the sales pipeline in conjunction with a
review of working capital sources and are satisfied that sufficient
funds are available for the companies' operations until beyond the end
of the current accounting period.
The financial statements have therefore been prepared on a going
concern basis.
6. POST BALANCE SHEET EVENTS
There have been no material post balance sheet events.
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund