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TIDMULT
RNS Number : 9792W
Ultrasis PLC
30 November 2010
Ultrasis plc
Final results for the year ended 31 July 2010
Highlights
-- Profit before tax of GBP595,000 (2009: GBP704,000), continuing strong foundation established last year.
-- Turnover of GBP3,186,000 (2009: GBP4,168,000) in difficult economic climate with changing Government and awaited change in policy direction in the NHS.
-- Strong cash position with year end balances of GBP2,383,000 (2009: GBP2,858,000), maintaining resources for continued investment in developing new markets and to capitalise on further acquisition opportunities. We remain debt free.
-- Deferred income reduced to GBP1,008,000 (2009: GBP2,673,000) due to pause in NHS market. Recent new contract wins will benefit positively the year ahead.
-- Strong progress in securing business relationships in USA to deliver Ultrasis suite of products to the American market.
-- Strong progress diversifying into new markets at home and abroad with GetFit Wellness solutions and Beating the Blues.
Chief Executive, Nigel Brabbins commented on the results:
"I am pleased to be able to report a second year of sound profits in spite of a difficult economic background and considerable delays in our NHS business due to operational and structural changes in the NHS. We believe that when these changes are implemented the impact on our business will be positive.
We have made good progress in diversifying into new markets at home and abroad especially through the Getfit acquisition and international exploitation of "Beating the Blues". It is significant that we are now contracting with major groups, including Brain Resource, GHG/BMI Hospitals, Serco and LA Fitness, and with strong partners in international markets. The diversification activity is continuing apace and we expect to report further progress in the current period. The potential for revenue growth across these new markets is substantial."
For further information please contact:
Ultrasis plc:
Nigel Brabbins, Chief Executive +44 (0) 20 535 2050
nbrabbins@ultrasis.com www.ultrasis.com
FinnCap, Nominated Adviser
and Joint Broker
Geoff Nash +44 (0) 20 7600 1658
www. finncap.com
Marshall Securities, Joint Broker:
John Webb +44 (0) 20 7490 3788
Media enquiries:
JBP Public Relations
Karen White/Sarah Rice: +44 (0) 117 9073400
Chairman and Chief Executive's Statement
Highlights
This has been a year of progress in the board's strategy of forging new partnerships, developing new markets and services for Ultrasis products in the UK and Internationally. In what have been and remain, very challenging economic conditions, we are pleased to report full year profit before tax of GBP595,000 (2009: GBP704,000), we remain debt free and have cash reserves of GBP2,383,000 (2009: GBP2,858,000). Revenue was GBP3,186,000 (2009: GBP4,168,000).
Costs remained tightly controlled, however we have invested in supporting the current service contract in NHS Northern Ireland and in developing alternative service models to partner blue chip companies in delivering new services and entering new markets in the UK and Internationally.
UK Market
We were delighted to announce in October 2009 that our treatment for depression, "Beating the Blues" (BtB), as recommended by the National Institute for Health and Clinical Excellence (NICE), had been chosen by the Northern Ireland Department of Health to be provided in every GP practice. We are pleased to report that we will have successfully completed that roll-out by December 2010 and are now working with the Department of Health and GP's to ensure all patients benefit fully from this initiative.
At the time of the interim statement, we reported a pause in revenues in the NHS in England as PCT commissioners reflected on new guidelines from NICE (October 2009) which supported the introduction of CCBT as a treatment modality and widened therapeutic options. This significantly increases the number of people for which "Beating the Blues" is considered an appropriate treatment. This pause in revenues within the NHS continued into 2010 with the announcement of the General Election, which effectively put everything on hold whilst a Government was elected.
The current position in the NHS is now only just becoming clear, with the new Coalition Government announcing policy for the NHS to remove Strategic Health Authorities and absolve them and PCT's from commissioning responsibilities, devolving that responsibility to GPs, with a target completion date of 2013. We now have a period of uncertainty as commissioning moves at differing speeds around the country, with some GPs ready to form consortia and /or hand over the reins for commissioning to local provider groups or commercial organisations that are already well positioned and able to provide these services.
There is, therefore, going to be a period of flux whilst these changes are established, but ultimately, we believe it will prove beneficial for Ultrasis, as commissioning is repositioned closer to the patient providing greater speed of access, increased focus on quality and value and in providing the services that deliver appropriate patient choice and care.
The Coalition Government has just announced its continued support to improving access to psychological therapies, with the commitment of GBP70m funding for years 2010/11 and we are of course keen to see some of that directed to providing BtB to all GPs as in other forward thinking health economies. We are continuing our lobbying of the Department of Health and Government ministers to ensure they are fully aware of the benefits of CCBT provision and the great cost savings available through its wide scale provision.
In April we were pleased to announce our exclusive partnership with General Healthcare Group (GHG) the UK's largest independent provider of private healthcare, to deliver "Beating the Blues" (BTB) within the UK private healthcare market. GHG's principal subsidiary company, BMI Healthcare, will use BTB to treat depression and anxiety, offering immediate access over the internet with additional telephone support, or alongside clinician delivered services.
One such early success of this JV has been the recent contract win to provide Serco Occupational Health with access to the BMI supported BtB service and a range of face to face services to Serco customers. Serco Occupational Health is one of the UK's leading providers of occupational health services, with over 250 occupational health professionals supporting the needs of 450,000 employees nationwide.
Get Fit Wellness
In a separate initiative we have recently announced another contract with Serco Occupational Health, who were extremely impressed by the quality and wellness improvements offered by the Get Fit Health Manager program that they wished to act as a distribution partner to offer the wellness benefits it brings, to all of their customers.
In August we announced a new contract with the a leading fitness club operator, LA Fitness, which will see our award winning online health and wellbeing program, Get Fit Health Manager, offered to LA Fitness's 220 000 members and corporate clients to assist with personal health and wellbeing goals and engage workforces in healthier living. We expect that this will develop into a significant business opportunity for both companies.
In March we announced a $100,000 two year contract to supply the US company Hummingbird Coaching Services LLC, with our online exercise management service "GetFit Fitness". Hummingbird provides health coaching services to some of the largest healthcare providers in the world and has recently been subject to an acquisition by Humana Inc.
The significant progress we are making in the field of Wellness, underscores the Board's decision to acquire Get Fit Technologies as it is now creating new opportunities for Ultrasis and opening up new markets for all of our products at home and abroad. With the significant shift in health policy towards encouraging and rewarding people to better manage their own health and wellbeing we are now well placed for significant growth of this part of the Ultrasis business.
International
In February 2010 we announced a strategic collaboration with Brain Resource Ltd, a company listed on the Australian stock exchange, distributing a revolutionary new web based corporate wellbeing program called www.MyBrainSolutions.com (MBS). Brain Resource has built the world's first and largest, standardised and integrative international database of the human brain. It includes measures of brain function, brain structure, genetics and clinical and behavioural outcomes. It is currently delivering the largest international Personalised Medicine Study in depression.
Brain Resource has contracted with Optum Health, United Health's behavioural health division to make MBS available to its 60,000,000 EAP members. A number of our self-help solutions are embedded in the MBS portal in a commercial arrangement and we are looking at ways to further integrate our products and business opportunities where appropriate.
New Zealand
A major success for Ultrasis recently, was the selection of "Beating the Blues" for a National E-Therapy Service in New Zealand, funded by the New Zealand Ministry of Health. The NZ$2.1m (Ultrasis' share being NZ$1m) three year contract was won in partnership with New Zealand's leading healthcare company Medtech Global. It will see "Beating the Blues" made available to all GPs in New Zealand through Medtech's revolutionary "Manage My Health" patient centric eHealth technology system.
New Zealand is a leading eHealth economy and the selection of "Beating the Blues" demonstrates that the program remains the product of choice in leading healthcare systems looking for affordable treatment solutions. We are delighted to have succeeded against more local technology providers and made this significant breakthrough in New Zealand.
We will be working in partnership with Medtech to develop similar solutions to provide treatment options in Australia and India, where Medtech also has a significant presence in primary healthcare.
Netherlands
The exclusive partnership with the Dutch company, Innohealth B.V., the provider of interactive healthcare and associated services, is progressing well, with the translated Dutch version of BtB being approved by the Dutch health insurance companies as a reimbursable treatment for depression within basic health insurance cover in the Netherlands. Innohealth is now promoting the use of BtB to Insurers and recruiting health care providers to use the program.
Other
From these developments and strategic partnerships we will be looking to move forward with varying wellbeing product offerings and Beating the Blues in to markets in Australia and India. We are in advanced discussions with potential US partners which, if successful, will facilitate the marketing of Ultrasis' suite of products in America.
Research & New Products
This year Ultrasis has been successful in two key research grants, using its products for further development in stress and mild depressive symptoms and Insomnia.
Optimi: Online Predictive Tools for Intervention in Mental Illness; is a European Research Grant for a 3 year project to develop new solutions to identify and alleviate the early symptoms of high stress and mild depressive symptoms and prevent further progression, using wearable devices and smartphone technology. The consortium consists of eleven participants in six countries (UK, Spain, Italy, Germany, Switzerland and China).
ENACT: Exploiting Social Networks to Augment Cognitive Behavioural Therapy; is a research grant with the Universities of Lincoln and Loughborough to develop a cCBT package for the treatment of Insomnia using online social networks, social computer games and mobile technology.
Financial Results:
The Group reports a full year profit before tax of GBP595,000 (2009: GBP704,000) continuing the strong foundation established last year. Group revenue held up at GBP3,186,000 (2009: GBP4,168,000) despite a difficult economic climate with changing Government and the awaited change in policy direction in the NHS. Deferred income has decreased to GBP1,008,000 (2009: GBP2,673,000) due to a pause in the NHS market, although recent new contract wins are expected to benefit positively the year ahead.
Administrative expenses were down from the prior year at GBP2,555,000 (2009: GBP3,459,000) due to the falling away of share option charges and reductions in personnel costs. The tax charge for the year was greater than the standard rate of corporation tax resulting from the impact of changes in future corporation tax rates on the carrying value of deferred tax assets. Earnings per share were 0.01p (2009: 0.21p); the 2009 figure being inflated by the recognition of deferred tax assets. Cash reserves remained strong with a year end cash position of GBP2,383 000 (2009: GBP2,858,000), maintaining resources for continued investment in developing new markets and positioning us well to capitalise on further acquisition opportunities. We remain debt free.
Outlook
We shall continue the move away from dependency on the NHS in a turbulent period of change and economically challenging conditions.
The board's policy is to concentrate on new markets and product extension and securing relationships that allow us to address the US market effectively, build on success in entering new markets and developing partnerships with blue chip providers leading the field in their own markets.
Our objective now is to capitalise on these developments over the coming months and years, continuing the policy of building a company of high value with a long term outlook.
Gerald Malone Nigel Brabbins
Non Executive Chairman Chief Executive Officer
29 November 2010
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 July 2010
2010 2009
Notes GBP'000 GBP'000
Revenue 3,186 4,168
Cost of sales (45) (32)
Gross profit 3,141 4,136
Administrative expenses
- Share based payments (7) (391)
- Other (2,548) (3,068)
(2,555) (3,459)
Operating profit
Before share based payments 593 1,068
Share based payments (7) (391)
-------- --------
Operating profit after share based
payments 586 677
Finance costs (4) (6)
Finance income 13 33
-------- --------
9 27
Profit before taxation 595 704
Taxation 2 (449) 2,496
Profit for the year 146 3,200
Other comprehensive income
Exchange differences on foreign
currency net investments in subsidiaries (12) 30
-------- --------
Total comprehensive income for
the year attributable to equity
holders of the parent 134 3,230
Earnings per share
Basic and diluted earnings per
share (p) 3 0.01 0.21
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the year ended 31 July 2010
Share Capital
Share Share Option reduction Merger Translation Retained
Capital Premium reserve reserve reserve Reserve losses Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance
brought
forward 1,478 21,104 1,236 6,650 2,324 (25) (30,000) 2,767
-------- -------- -------- ---------- -------- ------------ --------- --------
1 August 2008
-------- -------- -------- ---------- -------- ------------ --------- --------
Foreign
exchange
translation
differences
on foreign
currency - - - - - 30 - 30
Retained
profit for
the year - - - - - - 3,200 3,200
-------- -------- -------- ---------- -------- ------------ --------- --------
Total
comprehensive
income for
the year - - - - - 30 3,200 3,230
New shares
issues 30 198 - - - - - 228
Movement on
Share Option
reserve - - 391 - - - - 391
-------- -------- -------- ---------- -------- ------------ --------- --------
Balance
carried
forward 31
July 2009 1,508 21,302 1,627 6,650 2,324 5 (26,800) 6,616
======== ======== ======== ========== ======== ============ ========= ========
Share Capital
Share Share option reduction Merger Translation Retained
capital premium reserve reserve reserve reserve losses Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance
brought
forward 1,508 21,302 1,627 6,650 2,324 5 (26,800) 6,616
-------- -------- -------- ---------- -------- ------------ --------- --------
1 August 2009
-------- -------- -------- ---------- -------- ------------ --------- --------
Foreign
exchange
translation
differences
on foreign
currency - - - - - (12) - (12)
Retained
profit for
the year - - - - - - 146 146
-------- -------- -------- ---------- -------- ------------ --------- --------
Total
comprehensive
income for
the year - - - - - (12) 146 134
Movement on
share option
reserve - - 7 - - - - 7
Balance
carried
forward 1,508 21,302 1,634 6,650 2,324 (7) (26,654) 6,757
======== ======== ======== ========== ======== ============ ========= ========
31 July 2010
======== ======== ======== ========== ======== ============ ========= ========
CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 31 July 2010
31 Jul
Notes 31 Jul 2010 2009
GBP'000 GBP'000
Non-current assets
Intangible assets 2,777 2,925
Plant and equipment 62 41
Deferred tax assets 2 2,049 2,496
Total non-current assets 4,888 5,462
Current assets
Inventories 13 15
Trade and other receivables 739 1,728
Cash and cash equivalents 2,383 2,858
Total current assets 3,135 4,601
Current liabilities
Trade and other payables (1,266) (3,447)
Total current liabilities (1,266) (3,447)
Net current assets 1,869 1,154
Net assets 6,757 6,616
Equity
Share capital 1,508 1,508
Share premium 21,302 21,302
Share option reserve 1,634 1,627
Capital reduction reserve 6,650 6,650
Merger reserve 2,324 2,324
Translation reserve (7) 5
Retained losses (26,654) (26,800)
6,757 6,616
CONSOLIDATED STATEMENT OF CASH FLOWS for the year ended 31 July 2010
2010 2009
GBP'000 GBP'000
Cash generated from
operations
Operating profit 586 677
Share based payments 7 391
Depreciation charge 20 19
Amortisation of intangible
fixed assets 187 149
Decrease in inventories 2 4
Decrease/(Increase) in
receivables 989 (994)
(Decrease)/Increase in (2,179) 625
payables Tax paid (2) -
Net cash (used
in)/generated from
operating activities (390) 871
Investing activities
Interest received 13 33
Purchases of intangible
fixed asset (39) (23)
Purchases of plant and
equipment (43) (6)
Acquisition of Getfit
Technologies - (30)
-------- --------
Net cash used in investing
activities (69) (26)
Financing activities
Interest paid (4) (6)
Net cash used in financing
activities (4) (6)
Net (decrease)/increase in
cash and cash equivalents (463) 839
Cash and cash equivalents
at beginning of period 2,858 2,036
Effects of exchange rate
changes on the balance of
cash (12) (17)
held in foreign currencies
Cash and cash equivalents
at end of period 2,383 2,858
======== ========
Notes to the preliminary statement
1. Nature of financial information
The financial information set out in this announcement does not comprise the Group's statutory accounts for the years ended 31 July 2010 or 31 July 2009.
The financial information has been extracted from the statutory accounts of the Company for the years ended 31 July 2010 and 31 July 2009. The auditors reported on those accounts; their reports were unqualified and did not contain a statement under either Section 498 (2) or Section 498 (3) of the Companies Act 2006 and did not include references to any matters to which the auditor drew attention by way of emphasis.
The statutory accounts for the year ended 31 July 2009 have been delivered to the Registrar of Companies, whereas those for the year ended 31 July 2010 were approved by the Board on 29 November 2010 and will be delivered to the Registrar of Companies following the Company's Annual General Meeting.
The financial information set out in this announcement has been prepared on a basis consistent with the accounting policies for year ended 31 July 2010 which were substantially unchanged from the year ended 31 July 2009 and were disclosed in the Annual Report and Accounts for that year.
2. Taxation
i. Tax credit
The tax (charge)/credit for the period comprise:
2010 2009
GBP'000 GBP'000
Corporation tax (2) -
Deferred Tax (447) 2,496
-------- --------
(449) 2,496
-------- --------
ii. Deferred tax assets:
Deferred tax assets have been recognised based on management's projections of future taxable profits against which they are expected to be utilised.
The Group has deferred tax assets of GBP2,049,000 (2009: GBP2,496,000), of which GBP2,002,000 relates to accumulated tax losses (2009: GBP2,435 000) and GBP47,000 relates to depreciation in excess of capital allowances (2009: GBP61,000), both of which are available for offset in future periods.
Reconciliation of movement in deferred tax assets:
GBP'000
Deferred tax asset at 1 August 2009 2,496
Tax on current year profits (337)
Adjustments to prior year tax charge 16
Impact of changes in future applicable tax rates (126)
--------
Deferred tax assets at 31 July 2010 2,049
--------
The potential effect of future changes in tax rates that have been announced but not substantially enacted is a reduction in the value of deferred tax assets at the balance sheet date of approximately GBP83 000.
iii) Factors Affecting Tax charge for the Current Year The tax assessed for the year is higher/(lower) than that resulting from applying the standard rate of corporation tax (28%). The differences are explained below:
2010 2009
% %
Standard rate of tax applying to profits on ordinary
activities before tax 28 28
---- -----
Effect of:
Expenses not deductible for tax purposes 2 17
Adjustments to prior year tax charge (1) -
Tax losses not recognised 27 34
Capital allowances for period greater than depreciation (3) (2)
Utilisation of tax losses (77)
Recognition of deferred tax assets - (356)
Impact of changes in future applicable tax rates on deferred
tax assets 22 -
Total tax charge/(credit) rate for the year as a percentage
of profit 75 (356)
iv) Factors that may affect the future tax charge
Amounts of unprovided deferred tax assets are as follows:
2010 2009
Applicable tax rate 27% 28%
GBP'000 GBP'000
Trading losses and other losses 2,274 2,466
Capital losses 1,844 1,912
Depreciation in excess of capital allowances - 3
Fair value adjustments (470) (487)
3,648 3,894
-------- --------
3. Earnings per share
Pence per share
2010 2009
-------- --------
Basic and diluted earnings per share 0.01 0.21
Alternative basic and diluted earnings per
share 0.01 0.07
Alternative basic earnings per share is calculated based on earnings after interest but excludes the charge for share based payments and the credit for deferred tax both of which have a non-cash effect.
The calculation of diluted alternative earnings per share assumes conversion of all potentially dilutive ordinary shares, all of which arise from share options.
The calculations of earnings per share are based on the following loss and numbers of shares:
Basic and diluted
------------------------------
2010 2009
GBP'000 GBP'000
Profit for the financial year 146 3,200
Add: Share based payments 7 391
Less: Deferred tax credit - (2,496)
_______ _______
Alternative earnings for the financial
year 153 1,095
_______ _______
Number Number
of shares of shares
2010 2009
Weighted average number of shares for
basic earnings per share: 1,507,853,258 1,494,611,416
____________ ____________
Weighted average number of shares for
diluted earnings per share: 1,509,853,258 1,494,611,416
4. Annual Report and Accounts
Copies of the annual report and accounts for the year ended 31 July 2010 will be posted to shareholders in due course and will be available to download from the Company's website www.ultrasis.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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