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TIDMULT
RNS Number : 3983C
Ultrasis PLC
07 March 2011
Ultrasis plc
("Ultrasis" or the "Company")
Interim results for the six months ended 31 January 2011
Highlights
-- Revenue of GBP1,437,000 (2010: GBP1,668,000), being lower than the prior period due to the emergence of new NHS commissioning structures as part of the NHS reorganisation.
-- Profitability maintained. Profit before tax of GBP191,000 (2010: GBP237,000).
-- Costs tightly controlled at GBP1,227,000 (2010: GBP1,408,000).
-- Strong cash position maintained at GBP2,123,000 (2010: GBP2,248,000) with the group remaining debt free.
-- Major deal secured with UPMC, a circa US$8.0 billion US integrated healthcare provider, to create a US version of "Beating the Blues" ("BtB") and to form a joint venture to be launched in the US market.
-- Strong progress in diversifying into new markets at home and abroad with both "GetFit Wellness" solutions and "Beating the Blues".
Chief Executive, Nigel Brabbins, commented on the results:
"I am pleased to report that profitability has been maintained, despite a difficult economic climate and the impact of the continuing major structural changes in the NHS, which remains our biggest customer. The shift to GP commissioning has inevitably had an impact on these interim results, however, as new GP consortia emerge, there is evidence of a resumption in support for BtB, as the improved choice, swift access for patients and the cost benefits of the product to GPs are being better understood. We believe, as the move to GP commissioning gathers pace, that the impact on the Company's NHS business will be positive.
We have made excellent progress diversifying into new markets, both at home and abroad, with, for example, BtB being selected by the Ministry of Health in New Zealand for use across all GP practices. In addition, we have completed the rollout of BtB in Northern Ireland, which is now being offered across all GP practices, while in the Netherlands, health insurers have recommended its use throughout primary care. We have seen similar success in establishing new partnerships for the introduction of our "GetFit" wellbeing programmes with Serco and LA Fitness in the UK and PPC Worldwide in the UK, Australia and India.
Of most significance to Ultrasis, is the Company's ground breaking partnership with UPMC, a circa US$8.0 billion integrated global health enterprise based in Pittsburgh, Pennsylvania, which is investing US$1.0 million to develop a US specific version of BtB for use within its insurance services companies and, along with Ultrasis, forming a 50:50 joint venture corporation to launch the US version of BtB across the wider US market.
Passing this significant milestone for the Company and our world leading product, "Beating the Blues", will enable us to develop a new presence in the largest healthcare market in the world. The board continues to look to the future with great confidence."
For further information please contact:
Ultrasis plc Tel: +44(0) 20 7535 2050
Nigel Brabbins, CEO
Strand Hanson Limited Tel: +44(0) 20 7409 3494
Stuart Faulkner / Liam Buswell
JBP Public Relations Tel: +44(0) 20 3267 0074
Liam Herbert
Statement from Chairman and Chief Executive
The NHS - Beating the Blues
Progress in Ultrasis' NHS market has remained slow, following the recently announced Coalition policy change from PCT to GP commissioning and the concomitant reorganisation. Our view is that whilst this change has resulted in a slowdown in the uptake of "Beating the Blues", this will only be temporary and, in the medium term, the move to GP commissioning will, once the process has taken root, be beneficial. Putting decision making at the interface between GP and patient should result in demand for more immediate access to, and choice of, treatments for patients. Ultrasis has a strong track record in developing partnerships with major operators in the sector and the early creation of consortia by a large number of GPs around the country is already providing opportunities for Ultrasis and its partners to provide new and cost effective solutions.
The UK government has recently published its mental health outcomes strategy, "No health without mental health," accompanied by a four year plan of action for talking therapies, a major element of cross-government mental health strategy. This is backed by a GBP400 million investment, over the four years to 2014/15, and a statement that every adult that requires it should have access to psychological therapies to treat anxiety disorders or depression. It also intends to broaden the reach, to provide services to children and young people as well as people with long term conditions or medically unexplained symptoms.
Ultrasis is well positioned to capitalise on these opportunities and hopes that the new GP commissioning structure will prove the catalyst for increased uptake of "Beating the Blues", providing evidence based treatment at a fraction of the cost of traditional services, much greater speed of access and increased patient choice.
A postcode lottery in access to treatment has developed and we continue to remind UK ministers of their commitment to improve access to evidence based talking therapies for all. We hope that the renewed commitment by the UK government, "No health without mental health," will result in the oft stated objective of a universal level of provision being achieved.
International - USA
In January 2011, the Company was delighted to announce a ground breaking partnership with UPMC, a circa US$8.0 billion integrated global health enterprise, based in Pittsburgh, Pennsylvania. UPMC Insurance Services is investing US$1.0 million to develop a US specific version of BtB and will be forming a 50:50 joint venture company with Ultrasis (the "JV") to launch BtB to the wider US market. Both Ultrasis and UPMC will invest to develop and drive sales opportunities across US states, government, insurance, primary care providers, major corporations and other health care providers, seeking to enhance their mental health and wellbeing services. The US version of BtB and the JV will enable the Company to develop a new presence in the largest healthcare market in the world.
Get Fit - Wellbeing solutions
We were also pleased to announce, in January 2011, a contract with PPC Worldwide to develop the "Get Fit Health Manager" programme for integration by PPC into their international employee assistance programme ("EAP") and wellness service. The new programme has been integrated into PPC's core product offering and has initially been launched in the UK, India and Australia. We are in discussion with PPC to extend this offer to other countries they currently serve.
PPC Worldwide deploys its range of products and services in over 140 countries, covering six million employees in over 3,000 organisations.
Financial highlights
We are pleased to report a profit before tax in the six months ended 31 January 2011 of GBP191,000 (2010: GBP237,000).
Revenues in the period were GBP1,437,000 (2010: 1,668,000), the slight reduction reflecting a slowdown in the Company's domestic NHS market whilst it comes to terms with recent policy announcements and the shift over to GP commissioning. Despite being disappointing, these results were not unexpected, and, as set out above, we further anticipate that this policy restructuring will be beneficial to the Company over the medium term.
The group has continued to demonstrate tight control of its finances during this challenging economic climate and, accordingly, remains in strong financial health, with cash balances of GBP2,123,000 (2010: GBP2,248,000) and no debt.
Outlook
The partnership with UPMC enables Ultrasis to address the world's most significant healthcare market at low capital risk and without the need to call on shareholder funding. The Company is now in a position to pursue growth in more diverse markets, with stronger sales potential than ever before.
The board of Ultrasis is also confident that the Company's growing reputation overseas will be reflected in increasing recognition domestically and it is the Company's priority to make known the proven benefits and cost effectiveness of BtB within the emerging GP commissioning structure.
Ultrasis' growing relationships with blue chip health care providers spanning a broad geographical spectrum will continue to present opportunities for growth, both by way of sales revenue and, should the right opportunity arise, strategic acquisition.
Nigel Brabbins Gerald Malone
Chief Executive Non executive Chairman
7th March 2011
CONSOLIDATED statement of comprehensive income for the six months ended 31 January 2011
Six months Six months
ended 31 ended 31 Year ended
Jan Jan 31 Jul
Notes 2011 2010 2010
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Revenue 1,437 1,668 3,186
Cost of sales (19) (22) (45)
Gross profit 1,418 1,646 3,141
Administrative expenses (1,227) (1,408) (2,555)
Operating profit 191 238 586
Finance costs (2) (3) (4)
Finance income 2 2 13
------------ -------------- --------------
- (1) 9
Profit before taxation 191 237 595
Taxation (51) (62) (449)
Profit for the period 140 175 146
Other comprehensive income:
Exchange differences on foreign
currency net investments
in subsidiaries - (7) (12)
------------ -------------- --------------
Total comprehensive income
for the year attributable
to equity holders of the
parent 140 168 134
Earnings per share
Basic earnings per
share (p) 2 0.01 0.02 0.01
Diluted earnings per
share (p) 2 0.01 0.02 0.01
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the six months ended 31 January 2011
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 at
1 August 2009 1,508 21,302 1,627 6,650 2,324 5 (26,800) 6,616
Total
comprehensive
income for
the period - - - - - (7) 175 168
Share based
payments - - 48 - - - - 48
Balance at
31 January
2010 1,508 21,302 1,675 6,650 2,324 (2) (26,625) 6,832
-------- ---------- ---------- ------------ -------- -------------- ------------- ----------
Balance at
1 August 2009 1,508 21,302 1,627 6,650 2,324 5 (26,800) 6,616
Total
comprehensive
income for
the period - - - - - (12) 146 134
Share based
payments - - 7 - - - - 7
-------- ---------- ---------- ------------ -------- -------------- ------------- ----------
Balance at
31 July 2010 1,508 21,302 1,634 6,650 2,324 (7) (26,654) 6,757
-------- ---------- ---------- ------------ -------- -------------- ------------- ----------
Total
comprehensive
income for
the period - - - - - - 140 140
Share based
payments - - 13 - - - - 13
-------- ---------- ---------- ------------ -------- -------------- ------------- ----------
Balance at
31 January
2011 1,508 21,302 1,647 6,650 2,324 (7) (26,514) 6,910
-------- ---------- ---------- ------------ -------- -------------- ------------- ----------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 31 January 2011
31 Jan 31 Jan 31 Jul
2011 2010 2010
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 2,715 2,852 2,777
Plant and equipment 47 38 62
Deferred tax assets 1,998 2,434 2,049
Total non-current assets 4,760 5,324 4,888
Current assets
Inventories 13 15 13
Trade and other receivables 1,352 1,252 739
Cash and cash equivalents 2,123 2,248 2,383
------------ ------------ ----------
Total current assets 3,488 3,515 3,135
Current liabilities
Trade and other payables (320) (231) (258)
Deferred revenue (1,018) (1,776) (1,008)
Total current liabilities (1,338) (2,007) (1,266)
------------ ------------ ----------
Net current assets 2,150 1,508 1,869
------------ ------------ ----------
Net assets 6,910 6,832 6,757
============ ============ ==========
Equity
Share capital 1,508 1,508 1,508
Share premium account 21,302 21,302 21,302
Share option reserve 1,647 1,675 1,634
Other reserves 6,650 6,650 6,650
Merger reserve 2,324 2,324 2,324
Foreign exchange reserve (7) (2) (7)
Retained losses (26,514) (26,625) (26,654)
6,910 6,832 6,757
============ ============ ==========
CONSOLIDATED CASH FLOW STATEMENT for the six months ended 31 January 2011
Six months Six months
ended 31 ended 31 Year ended
Jan Jan 31 Jul
2011 2010 2010
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Cash used in operations
Operating profit 191 238 586
Share based payments 13 48 7
Depreciation charge 11 9 20
Amortisation of intangible
fixed assets 88 88 187
Decrease in inventories - - 2
(Increase)/Decrease in receivables (613) 476 989
Increase/(Decrease) in payables 72 (1,440) (2,179)
Tax paid - - (2)
------------ ------------ -----------
Net cash used in operating
activities (238) (581) (390)
Investing activities
Interest received 2 2 13
Purchases of intangible fixed
asset (19) (24) (39)
Purchases of plant and equipment (3) (2) (43)
------------ ------------ -----------
Net cash used in investing
activities (20) (24) (69)
Financing activities
Interest paid (2) (3) (4)
Net cash used in financing
activities (2) (3) (4)
Net decrease in cash and
cash equivalents (260) (608) (463)
Cash and cash equivalents
at beginning of period 2,383 2,858 2,858
Effects of exchange rate
changes on the balance of
cash held in foreign currencies - (2) (12)
------------ ------------ -----------
Cash and cash equivalents
at end of period 2,123 2,248 2,383
NOTES TO THE FINANCIAL INFORMATION for the six months ended 31 January 2011
1. Nature of financial information
The consolidated interim financial statements of Ultrasis plc (the "Company") comprise the result of the Company and its subsidiaries for the period 1 August 2010 to 31 January 2011. The financial information contained in this interim report does not constitute statutory accounts as defined by section 435 of the Companies Act 2006. The interim financial information is unaudited and incorporates unaudited comparative figures for the interim period 1 August 2009 to 31 January 2010 and extracts from the audited financial statements for the year to 31 July 2010. The financial information for the year ended 31 July 2010 set out in this interim report does not constitute the Company's statutory accounts for that period. The statutory accounts for the year ended 31 July 2010 have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified, 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 interim financial information has been prepared using International Financial Reporting Standards (IFRS and IFRIC interpretations) issued by the International Accounting Standards Board ("IASB") as adopted for use in the EU, with the exception of IAS 34, which is not required for AIM listed companies. The interim financial information has been prepared on a basis consistent with the accounting policies disclosed in the Annual Report and Accounts for the year ended 31 July 2010.
2. Basic and Diluted earnings per share
Pence per share
------------------------------------------
Six months Six months
ended ended Year ended
31 Jan 2011 31 Jan 2010 31 Jul 2010
Basic and diluted earnings
per share 0.01 0.02 0.01
Adjusted and adjusted diluted
earnings per share 0.01 0.02 0.01
Adjusted basic earnings per share is calculated based on earnings after interest but excludes the charge for share based payments which has 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 profits and numbers of shares:
Six months Six months
ended 31 ended 31 Year ended
Jan Jan 31 Jul
2011 2010 2010
GBP'000 GBP'000 GBP'000
(unaudited) (unaudited) (audited)
Profit
Profit for the purposes
of basic earnings per
share, being profit for
the period attributable
to equity shareholders 140 175 146
============== ============== ==============
Number of shares
Weighted average number
of ordinary shares for
the purposes of basic
profit per share 1,507,853,258 1,507,853,258 1,507,853,258
Weighted average number
of ordinary shares for
the purposes of diluted
profit per share 1,509,853,258 1,507,853,258 1,509,853,258
============== ============== ==============
This information is provided by RNS
The company news service from the London Stock Exchange
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