Half Yearly Report

 

TIDMTTS 
 
RNS Number : 2061D 
Total Systems PLC 
27 November 2009 
 
? 
 
 
27 November 2009 
 
 
TOTAL SYSTEMS plc 
 
 
Unaudited Interim Results for the half year ended 30 September 2009 
 
 
Total Systems plc ("Total" or "the Company"), suppliers of cost effective, 
flexible, software systems for the financial services industry, primarily in the 
insurance and warranty sectors, announces its interim results for the half year 
ended 30 September 2009. 
 
 
Commenting on the Company's results Terence Bourne, Chairman, said: 
 
 
"During the first six months of the financial year the Company has faced very 
difficult trading conditions which have resulted in a loss for the half year. 
Nevertheless the sales and marketing team has identified new prospects in the 
market and is pursuing a number of sales opportunities. The development of new 
products and the skills of our staff remain key investment areas in preparation 
for the economic recovery." 
 
 
Financial Highlights 
 
 
+---------------------+--+-----------+--+--------------------------------------------------+ 
| *  Turnover         |  | GBP1.782m |  | (2008 GBP 2.141m)                                | 
+---------------------+--+-----------+--+--------------------------------------------------+ 
| *  (Loss)/profit    |  | GBP       |  | (2008: GBP202k)                                  | 
| before tax          |  | (444k)    |  |                                                  | 
+---------------------+--+-----------+--+--------------------------------------------------+ 
| *  Basic            |  | (3.08p)   |  | (2008: 1.39)                                     | 
| (loss)/earnings per |  |           |  |                                                  | 
| share               |  |           |  |                                                  | 
+---------------------+--+-----------+--+--------------------------------------------------+ 
| *  Interim          |  |           |  | (2008: Nil)                                      | 
| dividend            |  | Nil       |  |                                                  | 
+---------------------+--+-----------+--+--------------------------------------------------+ 
| *  Gearing          |  |           |  | (2008: Nil)                                      | 
|                     |  | Nil       |  |                                                  | 
+---------------------+--+-----------+--+--------------------------------------------------+ 
| *  Net assets per   |  |           |  | (2008: 40.23p)                                   | 
| share               |  | 40.62p    |  |                                                  | 
+---------------------+--+-----------+--+--------------------------------------------------+ 
| *  Cash per share   |  |           |  | (2008: 28.96p)                                   | 
|                     |  | 32.06p    |  |                                                  | 
+---------------------+--+-----------+--+--------------------------------------------------+ 
 
Product Summary 
 
 
Ultima, the complete insurance and warranty solution, continues to bring 
significant business benefits to clients including: 
 
 
  *  Low cost of ownership. 
  *  Integrated solution. 
  *  Flexible and designed for change with Business Configurator. 
  *  Easy integration with external systems. 
 
insureTracc, in our opinion, the most innovative solution for motor insurance on 
the market today. In association with one of the world's leading mobile 
communication providers and using the latest telematics technology, insureTrac 
provides insurers with a comprehensive view of their customers' driving habits 
and driving styles as well as instant notification of incidents. Fully 
integrated to the back office system, insureTrac facilitates automatic 
underwriting and claims handling. Typically, insurers should expect a minimum 
10% reduction in claims costs. 
bluescape:rating - new product just launched. The bluescape:rating engine is the 
first component of Total Systems brand new .NET solution. The functionality in 
the new rating engine rivals all other rating engines currently available in the 
insurance market particularly in terms of its agility, integration ability and 
performance. Designed and built as a fully SOA compliant n-tier .NET application 
bluescape:rating uses established next generation technologies to provide 
flexibility, consistent results, performance, scalability and skill 
set rationalisation. 
 
 
Services - Specialist insurance consultancy, business intelligence, management 
information systems, compliance advice and document retention assistance can be 
supplied. The Company offers a full range of business support, consultancy and 
system integration services and acts as a value added reseller for related 
applications to provide the best possible support for our customers. A hosted 
service is available for those companies who wish to use Ultima's business 
functionality without investing in IT infrastructure. 
 
Regarding the Company's current trading and outlook, Terence Bourne commented: 
 
 
"The trading outlook for the second half of the financial year is very 
unpredictable but the effects of our cost reduction programme will crystallise 
during this period. In this challenging market place we remain focussed on cash 
conservation, ensuring that costs are kept under tight control, seeking new 
clients and positioning the business to compete effectively. 
 
 
The Company's finances remain robust with no debt and strong cash balances. The 
Board will continue to initiate all measures necessary to ensure the long-term 
prospects of the Company." 
 
 
E-mail: [e-mail]    web site: www.totalsystems.co.uk 
 
Enquiries: 
Terence Bourne, Chairman          Total Systems plc    020 7294 4888 
Granville Harris, Finance Director    Total Systems plc    020 7294 4888 
  Notes for Editors: 
 
 
Based in the City of London Total provides cost effective flexible software 
systems for the financial services sector, primarily in the insurance and 
warranty sectors, as well as complementary IT consultancy, development, 
integration and support services. 
 
 
The Company has a full listing on the London Stock Exchange. 
 
 
Significant investment has been made by the Company in developing Ultima, the 
general insurance system for personal and commercial lines. Examples of Total's 
clients for Ultima include Capita, Denplan (part of the Global AXA Group), DSG 
International, HSBC Insurance and Zurich Insurance Company (Navigators & 
General). 
 
 
Total Systems provide customer-centric systems for the General Insurance market. 
 
 
Total's flagship product Ultima is a complete insurance back-office solution 
accommodating all lines of business and products. Ultima is a truly 
multi-product, multi-company, multi-currency solution, proven over many years of 
successful implementations with Insurers and Warranty providers. Our product 
range has now been expanded with insureTrac, bluescape and the offering of 
specialist insurance consultancy services. 
 
 
One of the key factors differentiating Ultima from its competitors is the 
Business Configurator tool. This provides an unrivalled capability to deliver 
new products to market without the need for IT development. Not only does 
Business Configurator dramatically reduce the time it takes to introduce new 
products, or change existing ones, but it also significantly reduces cost of 
ownership. The level of cost savings that can be made from the introduction of 
Ultima can be considerable. It is one of the few products available in the 
market place that allows users to comfortably live with a constantly changing 
business environment in a cost effective manner while still providing a robust 
and scaleable platform for future growth. 
Our primary focus is to deliver exactly what the market needs when the market 
wants it, and we are constantly adapting and developing our products to meet 
demand. In addition to listening to our customers and expanding our product 
roadmap, we continue to seek business partners that add additional value through 
new technology and innovation. 
 
 
  Chairman's Statement 
 
 
Summary 
 
 
During the first six months of the financial year the Company has faced very 
difficult trading conditions which have resulted in a loss for the half year. 
Nevertheless the sales and marketing team has identified new prospects in the 
market and is pursuing a number of sales opportunities. The development of new 
products and the skills of our staff remain key investment areas in preparation 
for the economic recovery. 
Results 
 
 
Revenue for the half year was GBP1,782,217 (2008: GBP2,141,054) resulting in a 
loss before tax of GBP443,805 (2008 profit: GBP201,636) equivalent to a loss per 
share of 3.08p (2008: profit per share 1.39p). 
 
 
Financial 
 
 
Zero gearing and net assets of 40.62p per share (2008: 40.23p) of which 32.06p 
per share (2008: 28.96p) is represented by cash continues to demonstrate our 
financial strength during this difficult trading period. 
 
 
Dividend 
 
 
The Board looks very carefully at the issue of whether or not to propose a 
dividend but we feel that it is in the interests of our shareholders that we 
conserve resources while we continue to invest in the business. Consequently the 
Board does not propose payment of an interim dividend. 
 
 
Strategy 
 
 
Total Systems is committed to the financial services market. Our strategy is to 
provide a growing range of software products together with support and 
consulting services to enable financial services companies to rapidly launch new 
products, take advantage of new channels to market, reduce costs and improve 
efficiency. All our efforts are aimed at producing software solutions that 
deliver impeccable service to our clients. 
 
 
We continued our program of product development throughout the period, 
delivering a number of product enhancements. It is intended to continue our 
investment program, albeit at more conservative levels in the short term, in 
order to exploit the opportunities that the sales and marketing team has 
identified. 
 
 
Our virtualisation skills enable us to build, deploy and manage clients' 
platforms with a much higher level of complexity, increasing the range of 
managed services that we provide. While the Company is able to provide SaaS 
(Software as a Service) solutions through BPO (Business Process Outsourcing) 
partners, progress to date is disappointing. 
 
 
Products 
 
 
Total Systems provides customer-centric systems for the General Insurance 
market. Ultima is a customer oriented policy management system for insurance and 
warranty administration encompassing quotations, underwriting, claims, 
accounting, broker management, management information and reporting. Details of 
our products and services are given in the overview. 
 
 
Targeted at insurers and warranty providers Ultima seeks to facilitate maximum 
efficiency while ensuring regulatory compliance and enabling clients to quickly 
adapt to changing business conditions. Ultima can run in excess of 30 lines of 
business concurrently and is noted for its flexibility and reliability. The 
Business Configurator facility enables clients to make their own enhancements 
and launch new and original products without the need for programming. All these 
features combine to make Ultima easily configurable to meet client's specific 
requirements, for both large and small scale applications, while delivering fast 
implementation compared to our competitors. 
 
 
Our bluescape rating product has just been launched and is the first in a line 
of new components using state of the art technology specifically designed with 
the needs of today's modern insurers in mind. Initial feedback has been very 
positive with both new and existing customers expressing a keen interest in 
adopting this new technology which should enable insurers to exploit new markets 
and strategies more effectively. We anticipate that a new Quote Engine will be 
released to market in the first half of 2010 followed by a full claims solution. 
 
 
Market place 
 
 
The economic downturn has presented significant challenges across all industries 
with companies looking to improve efficiencies and reduce costs in an attempt to 
ride out the global financial storm. As a result IT expenditure and budgets have 
received significant focus but solely with the view of reducing or deferring 
investment costs even though improving operational efficiencies would achieve 
greater savings in the future. 
 
 
In the present economic climate gaining new clients is proving particularly 
tough and we are concentrating on maintaining our financial stability so that we 
are well placed when the inevitable upturn arrives. It is comforting for 
customers to know that we have a more stable financial platform than the vast 
majority of our competitors. Existing clients as well as sales prospects can 
have confidence that we are financially strong and will be there to support them 
in the future. 
 
 
While we are experiencing a drop in revenues, the number of prospects we are 
working with give us cause for optimism. 
 
Environmental and social 
 
 
The Company operates from a single site in premises it owns in central London. 
Every care is taken to ensure that we operate in an environmentally friendly way 
within the limitations imposed by our location and the nature of our operations. 
In regard to its employees and the local community the Company allows employees 
time to take part in their own social responsibilities as necessary. 
 
 
Operations 
 
 
The continuing global recession has resulted in a drop off in demand for 
software and services. Consequently our operational costs have been reviewed and 
a cost reduction programme has recently been implemented. The savings achieved 
will be reflected in the second half of the financial year. 
 
 
Excellent support has been given to all our clients. Our technical team has 
supplied specific enhancements and upgrades to all our customers in a timely and 
professional manner. This team now contains high level Microsoft expertise and 
is preparing to bring new products to the market. 
 
 
Personnel 
 
 
I am continually impressed by the outstanding dedication of our people and the 
high levels of service that the Company provides to its clients. Our impressive 
portfolio of blue chip clients is a reflection of the quality of our commitment 
and talent. On behalf of the Board I would like to thank all staff for their 
efforts and hard work over the last very difficult and demanding six months. 
 
 
Current trading and outlook 
 
 
The trading outlook for the second half of the financial year is very 
unpredictable but the effects of our cost reduction programme will crystallise 
during this period. In this challenging market place we remain focussed on cash 
conservation, ensuring that costs are kept under tight control, seeking new 
clients and positioning the business to compete effectively. 
 
 
The Company's finances remain robust with no debt and strong cash balances. The 
Board will continue to initiate all measures necessary to ensure the long-term 
prospects of the Company. 
 
 
Terence Bourne 
Chairman 
27 November 2009 
TOTAL SYSTEMS plc 
 
 
Consolidated Income Statement 
for the half year ended 30 September 2009 
 
 
+------------------------------------+------+-------------------+-----------------+----------------+ 
|                                    |      |        Unaudited  |       Unaudited |        Audited | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
|                                    |      |          6 Months |        6 Months |      12 Months | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
|                                    |      |             ended |           ended |          ended | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
|                                    |      |      30 September |    30 September |       31 March | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
|                                    |Note  |              2009 |            2008 |           2009 | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
|                                    |      |               GBP |             GBP |            GBP | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
| Continuing operations              |      |                   |                 |                | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
|                                    |      |                   |                 |                | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
| Revenue                            |  2   |         1,782,217 |       2,141,054 |      4,878,427 | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
|                                    |      |                   |                 |                | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
| External charges                   |      |         (187,009) |        (83,594) |      (155,709) | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
|                                    |      |                   |                 |                | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
| Staff costs                        |      |       (1,697,652) |     (1,562,894) |    (3,357,922) | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
|                                    |      |                   |                 |                | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
| Depreciation                       |      |          (70,264) |        (67,336) |      (136,703) | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
|                                    |      |                   |                 |                | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
| Share based payments               |      |          (13,992) |        (16,489) |       (32,978) | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
|                                    |      |                   |                 |                | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
| Exceptional operating costs        |      |                 - |               - |      (145,027) | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
|                                    |      |                   |                 |                | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
| Other operating charges            |      |         (263,224) |       (279,881) |      (556,785) | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
|                                    |      | ----------------- |  -------------- | -------------- | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
| Operating (loss)/profit            |      |         (449,924) |         130,860 |        493,303 | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
|                                    |      |                   |                 |                | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
| Interest receivable and similar    |      |             6,119 |          70,776 |        116,742 | 
| income                             |      |                   |                 |                | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
|                                    |      |                   |                 |                | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
|                                    |      |    -------------- |   ------------- |  ------------- | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
| (Loss)/profit before taxation      |      |         (443,805) |         201,636 |        610,045 | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
|                                    |      |                   |                 |                | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
| Tax credit/(charge)                |      |           119,562 |        (55,541) |      (163,767) | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
|                                    |      |   --------------- |  -------------- |  ------------- | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
| (Loss)/profit after taxation       |      |         (324,243) |         146,095 |        446,278 | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
|                                    |      |   --------------- | --------------- |  ------------- | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
|                                    |      |                   |                 |                | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
| Basic (loss)/profit per ordinary   |  5   |           (3.08p) |           1.39p |          4.24p | 
| share                              |      |                   |                 |                | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
|                                    |      |                   |                 |                | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
| Diluted (loss)/profit per ordinary |      |           (3.08p) |           1.39p |          4.24p | 
| share                              |      |                   |                 |                | 
+------------------------------------+------+-------------------+-----------------+----------------+ 
 
 
There are no recognised income or expenses for the current period or prior year 
other than as stated above. 
As a consequence a statement of recognised income and expenses is not presented. 
 
 
 
 
 
 
Consolidated Balance Sheet 
at 30 September 2009 
 
 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
|                             |            |         Unaudited |        Unaudited |           Audited | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
|                             |            |             as at |            as at |             as at | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
|                             |            |      30 September |     30 September |          31 March | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
|                             |            |              2009 |             2008 |              2009 | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
|                             |    Note    |               GBP |              GBP |               GBP | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| ASSETS                      |            |                   |                  |                   | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
|                             |            |                   |                  |                   | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| Non-current assets          |            |                   |                  |                   | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| Property, plant & equipment |            |           853,022 |          871,261 |           913,829 | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| Deferred tax assets         |            |           124,492 |                - |             4,930 | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
|                             |            |  ---------------- |   -------------- |   --------------- | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| Total non-current assets    |            |           977,514 |          871,261 |           918,759 | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
|                             |            |  ---------------- | ---------------- |  ---------------- | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| Current assets              |            |                   |                  |                   | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| Trade and other receivables |            |         1,151,074 |        1,388,699 |         1,447,326 | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| Cash and cash equivalents   |            |         3,345,063 |        3,046,492 |         3,354,694 | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
|                             |            |     ------------- |   -------------- |  ---------------- | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| Total current assets        |            |         4,496,137 |        4,435,191 |         4,802,020 | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
|                             |            |    -------------- |  --------------- | ----------------- | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| TOTAL ASSETS                |            |         5,473,651 |        5,306,452 |         5,720,779 | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
|                             |            | ----------------- |  --------------- |  ---------------- | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| LIABILITIES                 |            |                   |                  |                   | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
|                             |            |                   |                  |                   | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| Current liabilities         |            |                   |                  |                   | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| Trade and other payables    |            |       (1,079,520) |        (956,376) |         (994,997) | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| Current tax liabilities     |            |         (177,346) |        (114,966) |         (177,346) | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
|                             |            |    -------------- |     ------------ |     ------------- | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| Total current liabilities   |            |       (1,256,866) |      (1,071,342) |       (1,172,343) | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
|                             |            |    -------------- | ---------------- |   --------------- | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| Non-current liabilities     |            |                   |                  |                   | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| Deferred tax liabilities    |            |                 - |          (3,346) |                 - | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
|                             |            |     ------------- | ---------------- |     ------------- | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| TOTAL LIABILITIES           |            |       (1,256,866) |      (1,074,688) |       (1,172,343) | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
|                             |            |    -------------- |   -------------- |    -------------- | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| NET ASSETS                  |            |         4,216,785 |        4,231,764 |         4,548,436 | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
|                             |            |     ------------- |  --------------- |    -------------- | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| SHAREHOLDERS' EQUITY        |            |                   |                  |                   | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| Issued share capital        |     8      |           525,978 |          525,978 |           525,978 | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| Share premium               |     8      |            83,047 |           83,047 |            83,047 | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| Own shares in treasury      |     8      |          (21,400) |                - |                 - | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| Retained earnings           |     8      |         3,541,122 |        3,564,357 |         3,864,609 | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| Stock option reserve        |     8      |            88,038 |           58,382 |            74,802 | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
|                             |            |  ---------------- |  --------------- |   --------------- | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
| TOTAL EQUITY                |     8      |         4,216,785 |        4,231,764 |         4,548,436 | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
|                             |            |   --------------- | ---------------- | ----------------- | 
+-----------------------------+------------+-------------------+------------------+-------------------+ 
  Consolidated Cash Flow Statement 
for the half year ended 30 September 2009 
 
 
+--------------------------------+--------+------------------+------------------+-------------------+ 
|                                |        |        Unaudited |        Unaudited |           Audited | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
|                                |        |         6 Months |         6 Months |         12 Months | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
|                                |        |            Ended |            ended |             ended | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
|                                |        |     30 September |     30 September |          31 March | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
|                                |  Note  |             2009 |             2008 |              2009 | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
|                                |        |              GBP |             GBP  |               GBP | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
| Operating activities           |        |                  |                  |                   | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
| Cash received from customers   |        |        2,404,805 |        2,801,921 |         6,007,065 | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
| Cash payments to suppliers     |        |        (473,551) |        (454,227) |       (1,094,688) | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
| Cash payments to employees     |        |      (1,040,941) |        (924,097) |       (1,976,131) | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
| Cash paid for PAYE and         |        |        (632,598) |        (586,438) |       (1,223,597) | 
| National Insurance             |        |                  |                  |                   | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
| Cash paid for VAT              |        |        (228,817) |        (238,759) |         (646,964) | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
| Other business payments        |        |         (13,791) |         (14,741) |          (50,400) | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
|                                |        |  --------------- |  --------------- | ----------------- | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
| Cash inflow from operating     |   7    |           15,107 |          583,659 |         1,015,285 | 
| activities                     |        |                  |                  |                   | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
|                                |        |                  |                  |                   | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
| Income taxes paid              |        |                - |                - |          (54,122) | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
|                                |        |   -------------- |   -------------- |   --------------- | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
| Net cash inflow from operating |        |           15,107 |          583,659 |           961,163 | 
| activities                     |        |                  |                  |                   | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
|                                |        |   -------------- |   -------------- |    -------------- | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
| Cash flows from investing      |        |                  |                  |                   | 
| activities                     |        |                  |                  |                   | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
|                                |        |                  |                  |                   | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
| Interest received              |        |            6,119 |           70,776 |           116,742 | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
| Receipts on sale of assets     |        |                - |                - |                20 | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
| Purchase of plant and          |        |          (9,457) |         (17,416) |         (132,704) | 
| equipment                      |        |                  |                  |                   | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
|                                |        |    ------------- |   -------------- |   --------------- | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
| Net cash (outflow)/inflow from |        |          (3,338) |           53,360 |          (15,942) | 
| investing activities           |        |                  |                  |                   | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
|                                |        |   -------------- |  --------------- |    -------------- | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
| Cash flows from financing      |        |                  |                  |                   | 
| activities                     |        |                  |                  |                   | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
|                                |        |                  |                  |                   | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
| Purchase of own shares into    |        |         (21,400) |                - |                 - | 
| treasury                       |        |                  |                  |                   | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
| Consideration for grant of     |        |                - |               37 |                37 | 
| share options                  |        |                  |                  |                   | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
|                                |        |     ------------ |     ------------ |     ------------- | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
| Net cash (outflow)/inflow from |        |         (21,400) |               37 |                37 | 
| financing activities           |        |                  |                  |                   | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
|                                |        |     ------------ |     ------------ |     ------------- | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
| Net change in cash and cash    |        |          (9,631) |          637,056 |           945,258 | 
| equivalents                    |        |                  |                  |                   | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
|                                |        |                  |                  |                   | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
| Opening cash and cash          |        |        3,354,694 |        2,409,436 |         2,409,436 | 
| equivalents                    |        |                  |                  |                   | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
|                                |        |   -------------- |  --------------- |  ---------------- | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
| Closing cash and cash          |        |        3,345,063 |        3,046,492 |         3,354,694 | 
| equivalents                    |        |                  |                  |                   | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
|                                         |  --------------- | ---------------- |  ---------------- | 
+--------------------------------+--------+------------------+------------------+-------------------+ 
 
 
 
 
Notes to the Interim Report 
                           for the half year ended 30 September 2009 
 
 
 
1. Basis of preparation 
 
These condensed half year financial statements do not constitute statutory 
accounts as defined in section 434 of the Companies Act 2006 and have not been 
audited or reviewed by auditors pursuant to the Auditing Practices Board 
guidance on Review of Interim Financial Information. The abridged information 
for the 12 months ended 31 March 2009 has been extracted from the Group's 
statutory accounts for that period, which have been filed with the Registrar of 
Companies. The auditors report on the Group's accounts for that period were 
unqualified and did not contain a statement under Section 237(2) or Section 
237(3) of the Companies Act 1985. Prior half year comparatives remain unaudited. 
 
The condensed financial statements have been prepared in accordance with 
International Accounting Standard 34 (IAS 34) "Interim Financial Reporting". The 
accounting policies followed are in accordance with IFRS and are consistent with 
those applied in prior periods. A full list of the accounting policies under 
IFRS was disclosed in the Group's statutory accounts for the year ended 31 March 
2009. Copies of the Annual Report are available from the Company's website 
(www.totalsystems.co.uk) or from the registered office. 
 
This Interim Report was authorised for issue by the Directors on 27 November 
2009. 
 
2. Revenue 
 
The Group's revenue is derived from the writing and supply of its computer 
software and supply of third party software both with related support services. 
The origin and destination of revenue and profit are the same; wholly in the 
United Kingdom. A segmentation of major revenue streams is shown below but a 
segmentation of operating profit is not meaningful and is not shown. All 
activities derive from continuing operations. 
 
 
 
 
+-------------------------------------------------+-----------------+---------------+----------------+ 
|                                                 |       Unaudited |     Unaudited |        Audited | 
+-------------------------------------------------+-----------------+---------------+----------------+ 
|                                                 |        6 Months |      6 Months |      12 Months | 
+-------------------------------------------------+-----------------+---------------+----------------+ 
|                                                 |           ended |         ended |          ended | 
+-------------------------------------------------+-----------------+---------------+----------------+ 
|                                                 |    30 September |            30 |       31 March | 
|                                                 |                 |     September |                | 
+-------------------------------------------------+-----------------+---------------+----------------+ 
|                                                 |            2009 |          2008 |           2009 | 
+-------------------------------------------------+-----------------+---------------+----------------+ 
|                                                 |             GBP |           GBP |            GBP | 
+-------------------------------------------------+-----------------+---------------+----------------+ 
| Time & materials                                |       1,163,793 |     1,668,354 |      4,043,313 | 
+-------------------------------------------------+-----------------+---------------+----------------+ 
| Own software licences and maintenance           |         324,866 |       302,233 |        535,844 | 
+-------------------------------------------------+-----------------+---------------+----------------+ 
| Third party software licences and maintenance   |         293,558 |       170,467 |        299,270 | 
+-------------------------------------------------+-----------------+---------------+----------------+ 
|                                                 | --------------- | ------------- | -------------- | 
+-------------------------------------------------+-----------------+---------------+----------------+ 
| Total revenue                                   |       1,782,217 |     2,141,054 |      4,878,427 | 
+-------------------------------------------------+-----------------+---------------+----------------+ 
|                                                 |  -------------- | ------------- |  ------------- | 
+-------------------------------------------------+-----------------+---------------+----------------+ 
 
3. Interim management report/business review 
 
The Group's principal activities during the year were the writing and supply of 
its computer software and supply of third party software, both with related 
support services. 
 
Key performance indicators (KPI's) are used to monitor business performance. The 
level of chargeable hours as a percentage of total available chargeable hours 
for all potential chargeable staff gives an indication of the level of 
efficiency being achieved. Efficiency was 26.9% for the half year (2008: 41.3%). 
Further the level of product development is monitored as a percentage of total 
available chargeable hours for all potential available staff giving an 
indication of the effort placed on product development. This percentage was 
41.0% for the half year (2008: 28.9%). Taking both KPI's together a productivity 
percentage of 67.9% was achieved (2008: 70.2%). 
 
In addition a traditional management accounts package is completed every month 
and includes a profit and loss statement with forecasts for the next reporting 
period. 
 
Given the nature of the business the Board believes that these KPI's are 
sufficient to ensure that appropriate action can be taken as necessary. 
 
Further analysis of the development and performance of the business is contained 
in the Chairman's Statement under the heading "Summary" and "Operations". A 
review of the principal risks and uncertainties facing the group is contained in 
the Chairman's Statement under the headings "Market place", "Strategy" and 
"Current trading and outlook". The section of the Chairman's statement headed 
"Environment and social" should also be read in regard to the interim management 
report/business review. 
 
4. Dividends 
 
No interim dividend has been declared. 
 
5. Loss/earnings per ordinary share 
 
The calculation of basic and diluted loss/profit per share is based on a loss 
after taxation of GBP324,243(2008: profit GBP146,095) and a weighted average of 
10,518,033 shares (2008: 10,519,553) in issue during the period. 
 
6. Interim report to shareholders 
 
It is intended to post this Interim Report to shareholders on 28 November 2009. 
Copies of the Interim Report will also be available from the Registered Office 
of the Group at 394 City Road, London, EC1V 2QA and the Company website. 
 
7. Reconciliation of operating (loss)/profit to cash inflow from operating 
activities 
 
 
+-------------------------------------------------+--------------------+--------------------+------------------+ 
|                                                 |          Unaudited |          Unaudited |          Audited | 
+-------------------------------------------------+--------------------+--------------------+------------------+ 
|                                                 |                  6 |                  6 |               12 | 
|                                                 |             Months |             Months |           Months | 
+-------------------------------------------------+--------------------+--------------------+------------------+ 
|                                                 |              ended |              ended |            ended | 
+-------------------------------------------------+--------------------+--------------------+------------------+ 
|                                                 |       30 September |                 30 |               31 | 
|                                                 |                    |          September |            March | 
+-------------------------------------------------+--------------------+--------------------+------------------+ 
|                                                 |               2009 |               2008 |             2009 | 
+-------------------------------------------------+--------------------+--------------------+------------------+ 
|                                                 |                GBP |                GBP |              GBP | 
+-------------------------------------------------+--------------------+--------------------+------------------+ 
|          Operating (loss)/profit                |          (449,924) |            130,860 |          493,303 | 
+-------------------------------------------------+--------------------+--------------------+------------------+ 
|          Depreciation charges                   |             70,264 |             67,336 |          136,703 | 
+-------------------------------------------------+--------------------+--------------------+------------------+ 
|          Loss on sale of assets                 |                  - |                  - |            3,333 | 
+-------------------------------------------------+--------------------+--------------------+------------------+ 
|          Decrease in receivables                |            296,252 |            238,967 |          180,340 | 
+-------------------------------------------------+--------------------+--------------------+------------------+ 
|          Increase in payables                   |             84,523 |            130,007 |          168,628 | 
+-------------------------------------------------+--------------------+--------------------+------------------+ 
|          Charge for share based payments        |             13,992 |             16,489 |           32,978 | 
+-------------------------------------------------+--------------------+--------------------+------------------+ 
|                                                 |       ------------ |        ----------- |      ----------- | 
+-------------------------------------------------+--------------------+--------------------+------------------+ 
| Cash inflow from operating activities           |             15,107 |            583,659 |        1,015,285 | 
+-------------------------------------------------+--------------------+--------------------+------------------+ 
|                                                 |       ------------ |       ------------ |     ------------ | 
+-------------------------------------------------+--------------------+--------------------+------------------+ 
 
 
 
8. Changes in company and consolidated equity shareholders' funds 
 
 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
|                               |     Issued |      Share |  |        Own |     Retained |     Stock |        Total | 
|                               |      share |    premium |  |     shares |     earnings |    option |       equity | 
|                               |    capital |            |  |         in |              |   reserve |              | 
|                               |            |            |  |   treasury |              |           |              | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
|                               |        GBP |        GBP |  |        GBP |          GBP |       GBP |          GBP | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
|                               | ---------- | ---------- |  | ---------- |   ---------- | --------- |  ----------- | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
| As at 1 April 2008            |    525,978 |     83,010 |  |          - |    3,407,337 |    52,818 |    4,069,143 | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
|                               | ---------- | ---------- |  | ---------- |   ---------- | --------- |   ---------- | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
| Profit after tax for the half |          - |          - |  |          - |      146,095 |         - |      146,095 | 
| year                          |            |            |  |            |              |           |              | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
| Share options lapsed          |          - |          - |  |          - |       10,925 |  (10,925) |            - | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
| Share based payments          |          - |          - |  |          - |            - |    16,489 |       16,489 | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
| Consideration for grant of    |          - |         37 |  |          - |            - |         - |           37 | 
| share options                 |            |            |  |            |              |           |              | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
|                               | ---------- | ---------- |  |  --------- | ------------ | --------- |   ---------- | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
| As at 30 September 2008       |    525,978 |     83,047 |  |          - |    3,564,357 |    58,382 |    4,231,764 | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
|                               | ---------- | ---------- |  | ---------- |   ---------- | --------- |  ----------- | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
| Profit after tax for the half |          - |          - |  |          - |      300,183 |         - |      300,183 | 
| year                          |            |            |  |            |              |           |              | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
| Share options lapsed          |          - |          - |  |          - |           69 |      (69) |            - | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
| Share based payments          |          - |          - |  |          - |            - |    16,489 |       16,489 | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
|                               |  --------- | ---------- |  | ---------- | ------------ | --------- | ------------ | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
| As at 31 March 2009           |    525,978 |     83,047 |  |          - |    3,864,609 |    74,802 |    4,548,436 | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
|                               | ---------- | ---------- |  | ---------- |   ---------- | --------- |   ---------- | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
| Loss after tax for the half   |          - |          - |  |          - |    (324,243) |         - |    (324,243) | 
| year                          |            |            |  |            |              |           |              | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
| Share options lapsed          |          - |          - |  |          - |          756 |     (756) |            - | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
| Share based payments          |          - |          - |  |          - |            - |    13,992 |       13,992 | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
| Purchase of own shares into   |          - |          - |  |   (21,400) |            - |         - |     (21,400) | 
| treasury                      |            |            |  |            |              |           |              | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
|                               | ---------- |   -------- |  | ---------- |  ----------- | --------- | ------------ | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
|                               |            |            |  |            |              |           |              | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
| As at 30 September 2009       |    525,978 |     83,047 |  |   (21,400) |    3,541,122 |    88,038 |    4,216,785 | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
|                               | ---------- | ---------- |  | ---------- | ------------ | --------- | ------------ | 
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+ 
 
 
  9. Directors' responsibility statement 
 
 
The Directors confirm that, to the best of their knowledge: 
 
                     i. The condensed set of financial statements have been 
prepared in accordance with IAS 34 as adopted by the European Union; and 
 
 
ii. The interim management report/business review includes a fair review of the 
information required by the FSA's Disclosure 
 

    and Transparency Rules 
(4.2.7 R and 4.2.8 R). 
 
 
The Directors of Total Systems plc and their functions are: T P Bourne (Chairman 
and Managing Director), G W Harris (Finance Director and Company Secretary), 
Clive Dutton (Operations Director), Arthur Weber (Technical Director) and P J 
Delaney (Non Executive Director). 
 
 
Forward-looking Statements 
 
 
Certain statements in this announcement are forward-looking statements. By their 
nature, forward-looking statements involve a number of risks, uncertainties or 
assumptions that could cause actual results or events to differ materially from 
those expressed or implied by the forward-looking statements. These risks, 
uncertainties or assumptions could adversely affect the outcome and financial 
effects of the plans and events described herein. Forward-looking statements 
contained in this announcement regarding past trends or activities should not be 
taken as a representation that such trends or activities will continue in the 
future. You should not place undue reliance on forward-looking statements. 
 
 
The Company is under no obligation to update or keep current the forward-looking 
statements contained in this announcement or to correct any inaccuracies which 
may become apparent in such forward-looking statements. 
ENDS 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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