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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:5583M
Business Systems Group Hldgs PLC
20 June 2003
Immediate Release 20 June 2003
Business Systems Group Holdings plc (the "Group")
Preliminary results for the year ended 31 March 2003
Business Systems Group Holdings plc, the information technology company
providing business solutions, products and services for the entire technology
lifecycle, today announces its preliminary results for the year ended 31 March
2003.
Highlights
* Turnover grew by 9% compared to prior year, with the increase derived
mainly from consulting and services revenues.
* Significantly improved trading performance with a small
pre-exceptional profit recorded in the second half of the year.
* Pre-tax loss for the year of #383,000 (before exceptional items),
compared favourably to an equivalent loss of #6.4m in the prior year.
* Exceptional items of #2.6m (2002: #4.1m) relating to goodwill,
unoccupied property and a write down in the carrying value of the investment in
own shares.
* Gross margins rose from 6% to 20% during the year.
* Cash balances of #7.6m at the year-end.
* Appointment of new Chairman
Outlook
Whilst the Board is encouraged by the improved performance achieved in the year
ended 31 March 2003, it is apparent that demand in the current market remains
subdued. With business slower than anticipated, and, bearing in mind the
continuing weak visibility of earnings experienced in the technology sector, the
trading outlook for the Group remains challenging.
Board changes
The Board also announces today the appointment of Roger Keenan as the Group's
new Chairman following the resignation of Geoffrey Procter. Mr Procter will
retire from the Group with effect from 30 June 2003 and receive no compensation.
Mr Keenan will take up his appointment with effect from 1 July 2003.
Roger, aged 38, founded Eyretel in 1991 and grew the then small
telecommunications company into a worldwide concern which gained its full
listing on the London Stock Exchange in April 2000. It was subsequently sold to
Witness Systems Inc earlier this year. He was also a director of Realscape Ltd
(entered member's voluntary liquidation in 2002), is currently a non-executive
director of Amacis, a Belfast based technology start-up, and a trustee of
Community Network, a charity which uses conferencing technology to improve
social interaction for under-served sections of the community.
Nick Gerard, Chief Executive, thanked Mr Procter for his support and commitment
since the Group's flotation three years ago and said "We are delighted to have
found someone of Roger's calibre to take on the role going forward and believe
that with his very relevant experience at Eyretel, he brings with him a great
deal of value to the Board."
Change of Broker
In addition to the above, the Board also announces that KBC Peel Hunt have been
appointed as broker, sponsor and financial advisor with immediate effect.
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 2003 saw a significant improvement over the prior year
performance for the Group. Demand in the IT sector remained weak whilst wider
business conditions faltered due to political and economic uncertainty.
However, despite these negative conditions, the Group improved its performance
in most areas as it benefited from actions taken during the previous year ended
31 March 2002. These actions significantly reduced costs but also set the base
for increasing revenues.
Summary of results
* Turnover for the year increased by 9% from #24.2m in the prior year to
#26.5m. The revenue growth was derived principally from the consulting and
services businesses across the Group, which grew by 92% and 42%,
respectively.
* The Group produced a loss before tax of #2.9m after taking exceptional
charges of #2.6m (relating to goodwill, unoccupied property and write down
of investment in own shares).
* The trading performance of the Group improved significantly. Excluding the
exceptional items, the Group reported a pre-tax loss of #383,000 compared to
the loss of #6.4m in the prior year.
* In the second half of the year, the Group recorded a small pre-exceptional
profit of #63,000 improving upon the first half loss of #446,000. Gross
margins rose from 6% to 20% during the year.
* The improved trading performance was reflected in positive cash generation
in the second half, resulting in cash balances rising from the interims by
#0.3m to #7.6m.
* Webgenerics Ltd reported a profit for the second half of the year and was
cash generative having completed the development of its ASP suite of
products and successfully developing its managed hosting offer. The
development team have now been integrated into the BSG Solutions team
working on revenue generating projects.
* The Group continues to develop its outsourcing offering, an early success
being the renewal of the Mapeley outsourcing contract for a further 3 year
period from 1 April 2003. This significantly outweighs the loss of a
longstanding support contract with a client who continued to downsize in the
current economic climate.
Current trading and outlook
The markets in which the Group trades continue to be very difficult, and there
is still no indication as to the timing and nature of a turnaround in the
corporate technology sector. However, having taken significant action in the
past 24 months to counter these external pressures, the Group is beginning to
see the benefits, having achieved a near break-even position from a trading
perspective during the financial year under review and having been cash
generative in the second half. We remain confident as a Board that we can
continue to improve the financial performance of the Group despite adverse
external factors.
On a closing note, it only remains for me to announce my resignation both as
Chairman and as a member of the Board and to greet the new Chairman of BSG. I
have enjoyed the last three years at BSG but am very pleased to announce the
appointment of Roger Keenan as my replacement. Roger has considerable
experience working in the technology sector, and this experience should prove
invaluable to the Group as it continues to develop. I wish Roger and the other
members of the Board well for the future.
Geoffrey Procter
Chairman
19 June 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Year Ended 31 March 2003
Year Year
ended ended
31 March 31 March Year Year
2003 2003 ended ended
Before 31 March 31 March
exceptional
items Exceptional 2003 2002
items Total Total
#'000 #'000 #'000 #'000
TURNOVER 26,475 - 26,475 24,224
Cost of sales (21,074) - (21,074) (22,691)
GROSS PROFIT 5,401 - 5,401 1,533
Administrative expenses (6,257) (2,566) (8,823) (12,847)
Other operating income 170 - 170 278
OPERATING LOSS (686) (2,566) (3,252) (11,036)
Other interest receivable and similar income 303 - 303 526
LOSS ON ORDINARY ACTIVITIES (383) (2,566) (2,949) (10,510)
BEFORE TAXATION
Tax on loss on ordinary activities 160 -
LOSS ON ORDINARY ACTIVITIES (2,789) (10,510)
AFTER TAXATION AND RETAINED LOSS FOR THE YEAR
Basic and fully diluted loss per share (3.44)p (12.84)p
There are no recognised gains and losses for this financial year or the previous
period other than as stated above and therefore no separate statement of total
recognised gains and losses has been presented.
All results are derived from continuing operations.
COMBINED STATEMENT OF MOVEMENTS IN SHAREHOLDERS' FUNDS AND STATEMENT OF
MOVEMENTS ON RESERVES
Year Ended 31 March 2003
Share Profit and
Premium Loss
Share Account Account Total
Capital #'000 #'000 #'000
#'000
THE GROUP
Balance at 1 April 2002 4,209 13,940 (7,970) 10,179
Retained loss for the year - - (2,789) (2,789)
Balance at 31 March 2003 4,209 13,940 (10,759) 7,390
BALANCE SHEET
31 March 2003
Group Group
2003 2002
#'000 #'000
FIXED ASSETS
Intangible assets - 1,347
Tangible assets 1,552 1,669
Investments - -
Investments in own shares 211 595
1,763 3,611
CURRENT ASSETS
Stocks 91 137
Debtors 4,381 4,780
Cash at bank and in hand 7,627 8,411
12,099 13,328
CREDITORS: amounts falling due
within one year (5,472) (6,760)
NET CURRENT ASSETS 6,627 6,568
TOTAL ASSETS LESS CURRENT LIABILITIES 8,390 10,179
PROVISION FOR LIABILITIES AND
CHARGES (1,000) -
NET ASSETS 7,390 10,179
CAPITAL AND RESERVES
Called up share capital 4,209 4,209
Share premium account 13,940 13,940
Profit and loss account (10,759) (7,970)
EQUITY SHAREHOLDERS' FUNDS 7,390 10,179
CONSOLIDATED CASH FLOW STATEMENT
Year Ended 31 March 2002
Year ended Year ended Year ended Year ended
31 March 31 March 31 March 31 March
2003 2003 2002 2002
#'000 #'000 #'000 #'000
Net cash outflow from operating activities (446) (4,810)
Returns on investments and servicing of
finance
Interest received 351 548
Net cash inflow from returns on
Investments and servicing of finance 351 548
Taxation (4) (153)
Capital expenditure
Payments to acquire tangible assets (706) (1,107)
Receipts from sales of tangible fixed assets 21 30
Net cash outflow for capital expenditure (685) (1,077)
Acquisitions
Capital costs of acquisitions - (941)
Net cash outflow for acquisitions - (941)
Equity dividends paid - (84)
Net cash outflow before management of
liquid resources and financing (784) (6,517)
Decrease in cash in the year (784) (6,517)
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 2003 or 2002, but is
derived from those accounts. Statutory accounts for 2002 have been delivered to
the Registrar of Companies and those for 2003 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
2003 2002
#'000 #'000
Operating loss (3,252) (11,036)
Depreciation of tangible assets 781 742
Amortisation of intangible assets 1,347 3,288
Loss on disposal of tangible assets 21 9
Increase in provisions 1,000 -
Diminution in value of investment in own shares 384 -
Decrease in stocks 46 80
Decrease in debtors 444 2,441
Decrease in creditors within one year (1,217) (334)
Net cash outflow from operating activities (446) (4,810)
3. ANALYSIS OF NET FUNDS
At At
1 April 2002 Cash 31 March
#'000 flows 2003
#'000 #'000
Cash at bank and in hand 8,411 (784) 7,627
Net funds 8,411 (784) 7,627
4. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
2003 2002
#'000 #'000
Decrease in cash in the year (784) (6,517)
Change in net funds resulting from cash flows (784) (6,517)
Movement in net funds in the year (784) (6,517)
Opening net funds 8,411 14,928
Closing net funds 7,627 8,411
This information is provided by RNS
The company news service from the London Stock Exchange
END
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