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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Bus.Sys.Grp | LSE:BSG | London | Ordinary Share | GB0008222043 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 18.75 | 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:3071X
Business Systems Group Hldgs PLC
17 June 2002
17 June 2002
Business Systems Group Holdings plc
Preliminary results for the year ended 31 March 2002
Business Systems Group Holdings plc, which provides end to end technology
solutions for the business-to-business ("B2B") market, today announces its
preliminary results for the year ended 31 March 2002.
Highlights
• Full year loss before tax of £6.4m before exceptionals of £4.1m.
• Pre-exceptional losses reduced by 50% in the second half of the year.
• EBITDA breakeven for the Group in March 2002
• Webgenerics Ltd produced its first monthly profit in March 2002
• £8.4m cash balance at the year end.
Contacts:
BSG Tel: 020 7880 8888
Nick Gerard, Group Chief Executive
James Wheaton, Group Finance Director
Buchanan Communications Tel: 020 7466 5000
Tim Thompson / Catherine Miles
Chairman's Statement
The year ended 31 March 2002 was an extremely difficult one for the Group. The
sudden down-turn of corporate investment in information technology has resulted
in a serious fall in demand across the whole IT market, negatively affecting all
companies operating in that sector. BSG has been no exception. Despite
incurring considerable losses in the year the management has taken appropriate
action which, coupled to the loyalty of our excellent staff and long term
customers, has resulted in both trading Companies in the Group returning to cash
breakeven in March 2002. Given these factors, the wide offering of services the
Group provides and its cash resources, we remain confident of the future.
Summary of results
Turnover for the year fell by 36% to £24.2m from £37.7m in the prior year and
the Group produced a loss before tax of £10.5m after taking exceptional charges
of £1m for redundancies and £3m for write downs of goodwill. Clearly this loss
is extremely disappointing and has consumed some of the Group's financial
resources. However the Board believes the Group has now weathered the dramatic
change in its markets and emerged in better shape than many of its competitors,
whilst still retaining the balance sheet to grow from the current position.
BSG Limited
BSG Ltd suffered the most difficult year in its 15 year history in the twelve
months to 31 March 2002. In the middle of 2001 revenues in the consulting
business contracted by 75% in a matter of weeks. Revenues on completed contracts
could not be replaced as a significant number of the division's pipeline
projects were cancelled or postponed indefinitely. The Company incurred a loss
for the year of £6.3m (2001: profit £1.2m). The losses of the business before
goodwill and redundancy costs were halved in the second half of the year
compared with the first six months and it achieved ebitda breakeven in March
2002.
In June 2001 the Company acquired the Experience Design Team of Atomic Tangerine
Inc. for a consideration of £941,000. The team is now fully integrated into the
consulting division - BSG Atomic Solutions. There was a deferred element to the
consideration that was payable on meeting certain performance criteria in the
twelve months following acquisition. These criteria were not met and no deferred
consideration was payable. Given the collapse of the IT consulting market since
the middle of 2001 the Board considered it realistic to write off the goodwill
arising on this acquisition.
Webgenerics Limited
Investment continued through the year in the Company's hosting and dotEncrypt
products and services. As a result of this investment the Company made a loss
for the year of £2.4m. This loss (including £0.1m of redundancy costs)
represented a small increase over the £1.6m reported in the ten month prior
period. Having won a substantial hosting contract in the fourth quarter, the
Company made its first profit in March 2002. While revenues from the dotEncrypt
family of products are not yet significant, all the products are in commercial
use or in pilot with customers.
An impairment review was carried out on the goodwill arising from the
acquisition of Webgenerics. This review has led to the goodwill on products
that are not actively being sold or developed being written off. Therefore the
goodwill retained relates to the hosting service, which is now profitable, and
dotEncrypt.
Current trading
The markets in which the Group trades continue to be very difficult and the
specific timing of the turnaround in the corporate technology sector is
impossible to predict. Therefore management is continuing to keep a tight rein
on costs with the target of at least trading at ebitda breakeven, while
positioning the Group for the eventual improvement in the marketplace. To this
end a further 15 positions were cut in April in the consulting division leaving
total Group headcount at 166. We remain confident that BSG, having emerged from
the turmoil of the last twelve months, will be among the companies that benefit
most from the recovery in its markets.
Geoffrey Procter
Chairman
14 June 2002
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Year Ended 31 March 2002
Year ended 31 March 2002 Year ended
2002 31 March
2001
Before Exceptional Total Total
exceptional items
items
£'000 £'000 £'000 £'000
TURNOVER
Continuing operations 24,030 - 24,030 37,707
Acquisition 194 - 194 -
Total turnover 24,224 - 24,224 37,707
Cost of sales (22,691) - (22,691) (30,897)
GROSS PROFIT 1,533 - 1,533 6,810
Administrative expenses (8,688) (4,159) (12,847) (8,022)
Other operating income 278 - 278 288
OPERATING LOSS
Continuing operations (6,173) (4,159) (10,332) (924)
Acquisition (704) - (704) -
Group operating loss (6,877) (4,159) (11,036) (924)
Other interest receivable and similar income 526 - 526 776
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (6,351) (4,159) (10,510) (148)
Tax on loss on ordinary activities - (125)
LOSS ON ORDINARY ACTIVITIES AFTER TAXATION (10,510) (273)
Equity dividends (2001: 0.2p per share) - (167)
Retained loss for the year (10,510) (440)
Loss per share (12.84)p (0.37)p
There are no recognised gains and losses for this financial year or the previous
year other than as stated above and therefore no separate statement of total
recognised gains and losses has been presented.
COMBINED STATEMENT OF MOVEMENTS IN SHAREHOLDERS' FUNDS AND STATEMENT OF
MOVEMENTS ON RESERVES
Year Ended 31 March 2002
Share Share Profit and Total
capital premium loss account
account
£'000 £'000 £'000 £'000
THE GROUP
Balance at 1 April 2001 4,209 13,940 2,540 20,689
Retained loss for the year - - (10,510) (10,510)
Balance at 31 March 2002 4,209 13,940 (7,970) 10,179
THE COMPANY
Balance at 1 April 2001 4,209 13,940 2,014 20,163
Retained loss for the year - - (2,478) (2,478)
Balance at 31 March 2002 4,209 13,940 (464) 17,685
BALANCE SHEETS
31 March 2002
Group Company
2002 2001 2002 2001
£'000 £'000 £'000 £'000
FIXED ASSETS
Intangible assets 1,347 3,626 - -
Tangible assets 1,669 1,347 115 -
Investments - - 1,651 4,613
Investments in own shares 595 595 595 595
3,611 5,568 2,361 5,208
CURRENT ASSETS
Stocks 137 217 - -
Debtors 4,780 7,240 7,997 829
Cash at bank and in hand 8,411 14,928 7,494 14,538
13,328 22,385 15,491 15,367
CREDITORS: amounts falling due
within one year (6,760) (7,264) (167) (412)
NET CURRENT ASSETS 6,568 15,121 15,324 14,955
TOTAL ASSETS LESS CURRENT LIABILITIES 10,179 20,689 17,685 20,163
CAPITAL AND RESERVES
Called up share capital 4,209 4,209 4,209 4,209
Share premium account 13,940 13,940 13,940 13,940
Profit and loss account (7,970) 2,540 (464) 2,014
EQUITY SHAREHOLDERS' FUNDS 10,179 20,689 17,685 20,163
CONSOLIDATED CASH FLOW STATEMENT
Year Ended 31 March 2002
Year ended Year ended
Note 31 March 2002 31 March 2001
£'000 £'000 £'000 £'000
Net cash outflow from operating activities 2 (4,810) (1,928)
Returns on investments and servicing of
finance
Interest received 548 708
Net cash inflow from returns on investments
and servicing of finance 548 708
Taxation (153) (198)
Capital expenditure
Payments to acquire tangible fixed assets (1,107) (1,029)
Receipts from sales of tangible fixed assets 30 1,111
Net cash (outflow)/inflow for capital
expenditure (1,077) 82
Acquisitions
Capital costs of acquisitions (941) (18)
Cash acquired with subsidiary undertaking - 4
Net cash outflow for acquisitions (941) (14)
Equity dividends paid (84) (83)
Net cash outflow before management of liquid
resources and financing 3 (6,517) (1,433)
Financing
Shares issued net of expenses - 13,934
Net cash inflow from financing - 13,934
(Decrease)/increase in cash in the year 4 (6,517) 12,501
Notes to the Preliminary Statement
1. The financial information set out above does not constitute the
Company's statutory accounts for the year ended 31 March 2002 or 2001, but is
derived from those accounts. Statutory accounts for 2001 have been delivered to
the Registrar of Companies and those for 2002 will be delivered following the
Company's annual general meeting. The auditors have reported on those accounts;
their reports were unqualified and did not contain statements under s237(2) or
(3) Companies Act 1985.
2 RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATING
ACTIVITIES
2002 2001
£'000 £'000
Operating loss (11,036) (924)
Depreciation of tangible assets 742 507
Amortisation of intangible assets 3,288 330
Loss/(profit) on disposal of tangible assets 9 (36)
Decrease in stocks 80 209
Decrease/(increase) in debtors 2,441 (928)
Decrease in creditors within one year (334) (1,086)
Net cash outflow from operating activities (4,810) (1,928)
3. ANALYSIS OF NET FUNDS
At At
1 April 2001 31 March
£'000 Cash flows 2002
£'000 £'000
Cash at bank and in hand 14,928 (6,517) 8,411
Net funds 14,928 (6,517) 8,411
4. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
2002 2001
£'000 £'000
(Decrease)/increase in cash in the year (6,517) 12,501
Change in net funds resulting from cash flows (6,517) 12,501
Movement in net funds in the year (6,517) 12,501
Opening net funds 14,928 2,427
Closing net funds 8,411 14,928
This information is provided by RNS
The company news service from the London Stock Exchange
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