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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Chelford | LSE:CHR | London | Ordinary Share | GB00B02TW537 | ORD 100P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 207.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number:3867D
Chelford Group PLC
06 September 2007
FOR IMMEDIATE RELEASE 6 September 2007
Chelford Group plc
RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2007
Chelford Group plc ("Chelford" or the "Group"), the specialist IT solutions
group, announces its unaudited results for the six months ended 30 June 2007.
These results are reported under IFRS.
Key points:
* The financial results for the period were:
o Revenue up 2% to #9.3m (H1, 2006: #9.2m);
o Adjusted profit before tax*: up 44% to #0.63m (H1, 2006: #0.44m);
o Profit before tax: up 98% to #0.46m (H1, 2006: #0.23m); and
o Basic earnings per share: up 162% to 3.75p (H1, 2006: 1.43p).
* stated before tax, amortisation of intangibles and share-based payments
* Continued cash generation resulted in net cash of #1.76m at 30 June 2007
(31 December 2006: #1.45m).
* Results reflect a strong turn-round into profitability within the
Chelford SAP Division.
* Customer contracts signed in the period include British Sugar, Lin Pac,
Gordon & McPhail, Scottish Enterprise, Fig Leaves.com, Neopost, Lyons
Seafoods and Hewlett Packard.
On outlook, William Birkett, Chelford's Chairman stated:
"The months of July and August have seen the same level of order in-take
increase experienced in the first half of the year. With the order book
increasing, the performance of the Microsoft operation improving and with a good
pipeline of new business opportunities, the Board anticipates a satisfactory
outcome to the year."
For further information, please contact:
Trevor Lewis, Chief Executive today: 020-7367-8888
thereafter: 01256-685400
Mark Taylor, Charles Stanley Securities 020-7149-6000
(Nominated Advisor)
Steve Liebmann, Bankside 020-7367-8883 or 07802-888159
About Chelford
Chelford Group plc, the IT solutions group is headquartered in Basingstoke,
Hampshire and its shares are quoted on AIM ( stock code: CHR). Chelford provides
specialist systems solutions for its target markets based upon its own IPR, SAP,
Microsoft and RFID technologies.
CHAIRMAN'S STATEMENT
CHAIRMAN'S STATEMENT
Introduction
The results for the six months to 30 June 2007 show a strong overall performance
with the Group's profit before tax increasing 98%. The SAP Division moved firmly
into profit, putting behind it the contract losses which affected performance
last year. There was a somewhat mixed performance within the Solutions Division
with good growth from the Agility business and a reduced contribution from the
SSI and Microsoft businesses.
Order books increased progressively during the first half year and should
provide a firm base for the second half of the year.
Results and finance
Revenues were ahead by 2 per cent to #9,340,000 (H1, 2006: #9,162,000) but
earnings before interest, tax and amortisation of intangibles for the first half
of 2007 were 44% higher at #630,000 (2006: #438,000). The profit before tax for
the period was #458,000 (H1, 2006: #231,000) and basic earnings per share for
the period were up 162 per cent to 3.75p (H1, 2006: 1.43p).
The analysis of revenue and profit for the six months ended 30 June is as
follows:
2007 2006 Change
Revenue: Chelford Solutions #5.15m #5.27m - 2%
Chelford SAP Solutions #4.19m #3.89m + 8%
Total #9.34m #9.16m + 2%
Operating Chelford Solutions #0.33m #0.50m - 34%
profit*:
Chelford SAP Solutions #0.30m (#0.07)m n/a
Total #0.63m #0.44m + 44%
Operating profit before financial income #0.44m #0.22m + 100%
* Operating profit before charging amortisation of intangibles and interest
The cash balance as at 30 June 2007 was #1,763,000, against #1,453,000 on 31
December 2006, an increase of #310,000 (H1, 2006: #1,111,000).
The problems previously reported with a fixed-price contract in the SAP Division
have been resolved and the Division in the first half of 2007 has contributed
earnings before interest, tax and amortisation of #300,000 against a loss of
#66,000 for the same period last year.
Revenues in Chelford Solutions reduced by 2 per cent, due primarily to decision
delay in the bidding process for new contracts. Earnings before interest, tax
and amortisation at #330,000 (H1, 2006: #504,000) were also impacted by a loss,
before interest, tax and amortisation of intangibles, of #114,000 incurred in
investing in the transformation of the Microsoft business from a resource-based
to a project-based business model. The Microsoft order book is strengthening
progressively and a significant improvement in performance is anticipated in the
second half of 2007.
Order intake across the Group increased by 21 per cent over the same period last
year.
GROUP OPERATIONS
Chelford Solutions
Revenue in Chelford Solutions was down slightly on the same period in 2006, with
earnings before tax and amortisation of intangibles lower by #176,000, due in
part to the loss incurred in repositioning the Microsoft business as a projects
business leveraging new capabilities in Microsoft Dynamics CRM, Sharepoint and
in Sitecore Content Management. Within the SSI business, final decision delay on
certain contracts involving UK subsidiaries of international companies reduced
activity and impacted profitability. The Agility warehouse and supply chain
solutions business achieved good growth in both revenue and profitability and
invested in strengthening its sales capacity.
The Division continued to re-inforce its position in its target markets, signing
significant new contracts with British Sugar, Lin Pac, Bolton MKM, Gordon &
McPhail, Matrix Polymers, Pathway Polymers and Scottish Enterprise, where the
Division has won a contract to establish and host international web sites
focused on attracting new industry to Scotland and on finding Scottish partners
for companies wishing to enter the Scottish market.
During the period, the Division's order intake improved by 43% over the
comparable period last year, providing a firm foundation for the remainder of
the year.
Chelford SAP Solutions
The SAP Division continued its good top-line growth and returned to profit
before tax and amortisation of intangibles, with an improvement over the first
half of 2006 of #366,000. The SAP Division also strengthened its position in its
target markets, signing significant new contracts with Fig Leaves.com and Wilts
Electrical (in multi-channel sales), LDH, Lyons Seafoods, Neopost, Groundstar
and Hewlett Packard.
Order intake continues to be strong and further progress is anticipated in the
second half of 2007.
STAFF
The Group now employs in excess of 150 people at its offices in Basingstoke,
Darlington and Glasgow. I would like to extend my thanks to the management and
staff for their drive and commitment in continuing to take the business forward.
OUTLOOK FOR 2007
The months of July and August have seen the same level of order in-take increase
experienced in the first half of the year. With the order book increasing, the
performance of the Microsoft operation improving and with a good pipeline of new
business opportunities, the Board anticipates a satisfactory outcome to the
year.
J W Birkett
Chairman
5 September 2007
Consolidated income statement
for the period ended 30 June 2007 (Unaudited)
H1 2007 H1 2006 Y/E 2006
#000 #000 #000
Revenue 9,340 9,162 18,625
Cost of sales (4,832) (4,952) (11,572)
Gross profit 4,508 4,210 7,053
Other operating income 43 40 86
Administrative expenses
Before amortisation and IFRS 2 Share (3,921) (3,812) (6,116)
option charges
Amortisation expense (191) (222) (474)
IFRS 2 Share option charges - - (25)
(4,112) (4,034) (6,615)
Operating profit
Before amortisation and IFRS 2 Share 630 438 1,023
option charges
Amortisation expense (191) (222) (474)
IFRS 2 Share option charges - - (25)
439 216 524
Financial income 20 17 24
Financial expenses (1) (2) (1)
Net financing income 19 15 23
Profit before tax 458 231 547
Income tax expense
Current tax (190) (129) (345)
Deferred tax - - (128)
(190) (129) (473)
Profit for the year attributable to equity
holders of the parent
268 102 74
Basic earnings per share 3.75p 1.43p 1.03p
Statements of recognised income and expense
for period ended 30 June 2007 (Unaudited)
H1 2007 H1 2006 Y/E 2006
#000 #000 #000
Profit for the period 268 102 74
Total recognised income and expense
attributable to equity holders of the
parent 268 102 74
Consolidated balance sheet
As at 30 June 2007 (Unaudited)
H1 2007 H1 2006 Y/E 2006
#000 #000 #000
Non-current assets
Property, plant and equipment 459 469 483
Intangible assets 8,945 9,689 9,136
Investments in subsidiaries - - -
Other receivables - - -
Deferred tax assets 155 197 155
9,559 10,355 9,774
Current assets
Trade and other receivables 5,281 5,320 5,505
Cash and cash equivalents 1,763 1,111 1,453
7,044 6,431 6,958
Total assets 16,603 16,786 16,732
Current liabilities
Trade and other payables (5,127) (5,063) (5,463)
Income tax payable (155) (429) (216)
(5,282) (5,492) (5,679)
Non-current liabilities
Trade and other payables - (300) -
Deferred tax liabilities (89) (2) (89)
- (302) (89)
Total liabilities (5,371) (5,794) (5,768)
Net assets 11,232 10,992 10,964
Equity attributable to equity holders of
the parent
Share capital 7,141 7,141 7,141
Share premium 3,337 3,337 3,337
Retained earnings 754 514 486
Total equity 11,232 10,992 10,964
Cash flow statement
for period ended 30 June 2007 (Unaudited)
H1 2007 H1 2006 Y/E 2006
#000 #000 #000
Cash flows from operating activities
Profit/(loss) for the year 269 102 74
Adjustments for:
Depreciation, amortisation and impairment 286 302 641
Financial income (20) (17) (24)
Financial expense 1 2 1
Taxation 190 129 473
Operating profit before changes in working
capital and provisions
726 518 1,165
Decrease in stock - - -
(Increase)/decrease in trade and other
receivables
(79) 923 777
Increase/(decrease) in trade and other (135) (831) (42)
payables
Cash generated from the operations 512 610 1,900
Interest paid (1) (2) (1)
Tax paid (150) 131 (627)
Net cash from operating activities 361 739 1,272
Cash flows from investing activities
Interest received 20 17 64
Acquisition of subsidiary - (431) (612)
Acquisition of subsidiary - net of cash - - -
acquired
Acquisition of property, plant and (71) (83) (184)
equipment
Development expenditure acquisition of
intangible assets
- - -
Net cash from investing activities (51) (497) (732)
Cash flows from financing activities
Proceeds from the exercise of share - - 44
options
Net increase in cash and cash equivalents 310 242 584
Cash and cash equivalents at 1 January 1,453 869 869
Cash and cash equivalents at end of period 1,763 1,111 1,453
NOTES TO THE INTERIM FINANCIAL STATEMENTS (UNAUDITED)
FOR THE SIX MONTHS ENDED 30 JUNE 2007
1. Basis of Accounting
The interim financial statements have been prepared on the basis of the
accounting policies set out in the Group's 2006 financial statements.
The results for the full year 2006 have been extracted from the Group's full
accounts for that year, which included an unqualified audit report, and have
been filed with the Registrar of Companies.
The financial statements for the half year ended 30 June 2007 have not been
audited.
2. Segmental analysis
Segment information is presented in respect of the Group's business and
geographical segments. The primary format, business segments, is based on the
Group's management and internal reporting structure.
Segment results and assets and liabilities include items directly attributable
to a segment. Unallocated items comprise mainly amortisation and tax charges.
Segment capital expenditure is the total cost incurred during the period to
acquire segment assets that are expected to be used for more than one period.
30 June 2007
Chelford Chelford SAP
Group Solutions Solutions Total
#000 #000 #000 #000
Revenue 5,146 4,194 9,340
Operating profit before 330 300 630
amortisation
Amortisation of intangibles (150) (41) (191)
Operating profit 439
Net financing income 19
Profit before tax 458
Taxation (190)
Profit for year 268
Total Assets 8,781 4,252 3,569 16,602
Total Liabilities (210) (3,078) (2,083) (5,371)
Capital expenditure (including
development expenditure)
- 56 15 71
Depreciation - (75) (20) (95)
Research costs expensed - 307 - 307
30 June 2006
Chelford Chelford SAP
Group Solutions Solutions Total
#000 #000 #000 #000
Revenue - 5,273 3,889 9,162
Operating profit before - 504 (66) 438
amortisation
Amortisation of intangibles - (198) (24) (222)
Operating profit - 306 (90) 216
Net financing income 15
Profit before tax 231
Taxation (129)
Profit for year 102
Total Assets 9,175 4,028 3,583 16,786
Total Liabilities (1,217) (2,263) (2,314) (5,794)
Capital expenditure (including
development expenditure)
- 69 14 83
Depreciation - 62 18 80
Research costs expensed - 320 - 320
31 December 2006
Chelford Chelford SAP
Group Solutions Solutions Total
#000 #000 #000 #000
Revenue - 10,520 8,105 18,625
Operating profit before - 1,087 (89) 998
amortisation
Amortisation of intangibles - (407) (67) (474)
Operating profit - 680 (156) 524
Net financing income 23
Profit before tax 547
Taxation (473)
Profit for year 74
Total Assets 8,514 4,082 4,136 16,732
Total Liabilities (55) (3,193) (2,520) (5,768)
Capital expenditure (including
development expenditure)
- 84 100 184
Depreciation - 123 44 167
Research costs expensed - 496 - 496
Revenue
(by destination of goods)
H1 2007 H1 2006 Y/E 2006
#000 #000 #000
United Kingdom 9,277 8,944 18,045
Europe 63 55 490
Rest of the world - 163 90
_______ _______ _______
9,340 9,162 18,625
_____ _____ _____
The Group's geographical segmental results and net assets derived from its
principal activity in Europe and the Rest of the world is less than 10% of the
consolidated results and is therefore considered not to be significant to the
financial statements.
3. Earnings per share
Earnings per share have been calculated by dividing the Group's profit on
ordinary activities after taxation by the number of issued ordinary shares.
30 June 30 June 31 Dec
2007 2006 2006
Weighted number of shares in issue in 7,141,323 7,118,456 7,130,546
period
________ ________ ________
Profit on ordinary activities after 268,000 102,000 73,562
taxation
_______ _______ _______
Basic earnings per share 3.75p 1.43p 1.03p
_____ _____ _____
4. Reconciliation of movement in equity
30 June 30 June 31 Dec
2007 2006 2006
#000 #000 #000
Profit for the period 268 102 74
Shares issued - 44 44
Equity-settled share-based transactions - 25 25
________ _______ _______
Net increase in equity 268 171 143
Opening equity 10,964 10,821 10,821
________ ________ ________
Closing equity 11,232 10,992 10,964
_____ _____ _____
5. Analysis of movement in net debt
At 1 Jan At 30 June
2007 Cash flow 2007
#000 #000 #000
Cash in hand, at bank 1,453 310 1,763
_______ _______ _______
Total 1,453 310 1,763
____ ____ _____
6. Nature of Financial Information
The interim financial information for the six months ended 30 June 2007 was
approved by the Board on 5 September 2007.
7. Availability of Interim Report
A copy of this Interim Report is being sent to shareholders and copies are
available from the Company's Registered Office at Chelford House, Hampshire
International Business Park, Crockford Lane, Basingstoke RG24 8WH or by visiting
our web site at www.chelfordgroup.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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