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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
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Cybit Hldgs | LSE:CYH | London | Ordinary Share | GB00B04QS651 | ORD 5P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
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0.00 | 0.00% | 73.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
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0 | 0 | N/A | 0 |
RNS Number:0542F CybIT Holdings PLC 23 June 2006 Cybit Holdings Plc ("CYBIT") Preliminary Results for the year ended 31 March 2006 HIGHLIGHTS Cybit Holdings Plc, the innovative Telematics Service Provider, today announces its preliminary results for the year ended 31 March 2006. Audited Audited year ended year ended 31 March 2006 31 March 2005 #'000 #'000 Turnover 10,190 6,727 EBITDA 1,770 (214) Operating profit/(loss) 1,338 (627) Profit/(loss) before taxation 200 (1,543) Cash 2,693 3,704 Key points * 52% increase in turnover; * Return to profitability, reporting a profit before tax of #0.2m (2005: loss #1.5m); * Overall 40% increase in customer numbers; * 70% increase in number of assets managed through Cybit's solution portfolio; * Recently announced acquisition of Bluefinger Limited for #1.6m, cementing Cybit's position as the UK's market leader in internet-based vehicle telematics solutions, as well as expanding Cybit's operations into the maritime telematics sector. Neil Johnson, Chairman of Cybit commented: Cybit has had an excellent year. We are seeing increasing evidence in the UK market of a growing acceptance of telematics in transport-related and support service sectors. Two separate markets are emerging, advanced vehicle location systems and more complex integrated business and logistics solutions. While the advanced vehicle location business is becoming highly competitive and price-sensitive, we are well placed to exploit the potential with Fleetstar. In the more complex, and higher margin business, of integrated solutions, Cybit is well placed to further improve market penetration. In the coming year we expect to increase market share in all sectors where Cybit operates. Meanwhile, the acquisition of Bluefinger will extend our reach into the maritime arena where we see new and exciting opportunities whilst also bringing complementary activities in related vehicle telematics where Cybit has clear market leadership. This acquisition therefore represents a significant milestone in Cybit's development. We will continue to develop the potential of our European businesses and to examine the possibility of further acquisitions alongside the ongoing organic development of the business. 23 June 2006 Enquiries: Cybit Holdings Plc 01480 389100 Richard Horsman, Chief Executive College Hill 0207 457 2007 Mark Garraway CHAIRMAN'S STATEMENT Overview I am pleased to be able to report a robust performance for the past trading year with revenues up and a return to profitability This performance was the result of the Group's ongoing consolidation of its position as the market leader in online fleet management solutions. We now have more than 800 corporate customers and our systems cover more than 20,000 fixed and mobile assets. Encouragingly, over 2,000 of the units ordered during the past 12 months have been repeat business from existing satisfied customers. Results Revenues increased 52% to #10.2m (2005: #6.7m) generating a profit before tax of #200,000 compared to a loss of #1.5m last year. Operations Our consultancy business continues to grow and to develop a high reputation in the industry. Of particular note, more than half of our top-50 customers also used our consultancy services during the year. This is an excellent achievement. A cornerstone of our strategic development is the development of new products and services across our range of activities. We made significant progress in this area and Richard Horsman, the Group's Chief Executive Officer, covers these in more detail in his Review. Our relationships with major customers continue to develop positively. For example, our relationship with Norwich Union has already generated around 20 customers and many others are expected to take advantage of the fleet telematics opportunity when they next renew their insurance cover. In Europe, our subsidiaries in Sweden and Germany continue to develop. Routes to market in Germany are being developed, and in Sweden revenue has increased by 129% as customer numbers doubled year on year. Acquisition of Bluefinger We recently announced the acquisition of Bluefinger, a maritime telematics business, for a total consideration of #1.6m, including #0.5m of debt. Bluefinger has developed a vehicle telematics division with approximately 200 customers covering a vehicle base of some 3,600 and also acquired Loca Vista which manages the Vodafone branded vehicle telematics service. A number of synergies between this division and Cybit's business have been identified. Bluefinger's telematics are also used predominantly by government agencies to protect and manage sovereign assets including fish stocks and mineral reserves. Current customers include the UK, Tanzanian and Ghanaian governments and the Southern African Development Community. With an increased focus on coastal security around the world, the management believes that this is an expanding marketplace with high barriers to entry and commensurately attractive margin levels. Outlook Cybit has had an excellent year. We are seeing increasing evidence in the UK market of a growing acceptance of telematics in transport-related and support service sectors. Two separate markets are emerging, advanced vehicle location systems and more complex integrated business and logistics solutions. While the advanced vehicle location business is becoming highly competitive and price-sensitive, we are well placed to exploit the potential with Fleetstar. In the more complex, and higher margin business, of integrated solutions, Cybit is well placed to further improve market penetration. In the coming year we expect to increase market share in all sectors where Cybit operates. Meanwhile, the acquisition of Bluefinger will extend our reach into the maritime arena where we see new and exciting opportunities whilst also bringing complementary activities in related vehicle telematics where Cybit has clear market leadership. This acquisition therefore represents a significant milestone in Cybit's development. We will continue to develop the potential of our European businesses and to examine the possibility of further acquisitions alongside the ongoing organic development of the business. Neil Johnson 23 June 2006 CHIEF EXECUTIVE'S REVIEW Operating Review Cybit made excellent progress during the year. It was particularly pleasing to see a return to profitability. With an overall increase in our own book percentage, a result based on increased margin, major enhancements to our product portfolio, a significant number of larger customer wins and progress in generating service related revenues, Cybit is in robust shape. Our Marketplace As the market for our solutions evolves, two distinct sectors are emerging. The first is strong demand for a simple, low cost solution for the SME market that we are addressing with Fleetstar-AVL through our reseller channel. Although offering opportunities for volume sales, this area of the market is becoming extremely price sensitive with an increasing number of competitors vying for market share. Operating through an indirect channel in this sector poses a far lower risk to the business than the more expensive direct sales route to market. The second sector is a demand for more complex solutions requiring integration with horizontal solutions such as scheduling and Mobile Resource Management (MRM). This market is where Cybit has a strong track record of successful Return on Investment (RoI) and is where we can typically differentiate ourselves through provision of a broader product and service portfolio. Our track record of success means that Cybit is viewed as a lower risk alternative leading to a premium over competitor solutions and better margins. The opportunities for consolidation in the market continue to present themselves on a fairly regular. Most do not pass our strict criteria for further investigation but as the recent acquisition of Bluefinger demonstrated, there are opportunities to develop the group by acquisition as well as organically. Customer Growth The customer base for Fleetstar-Online grew substantially over the period. Net of churn, the Fleetstar-Online customer base increased from 470 customers to 656 (an increase of 40%). More significantly, the number of vehicles supported on the platform increased 70% from 10,000 to 17,000 over the period. This growth can be attributed to an increasing number of larger clients attracted by the broad scope of the Fleetstar-Online solution together with the increasing range of value-added services offered by Cybit. Our existing customers continue to make a significant contribution towards company growth. Larger customers such as Alfred McAlpine Business Services, Sainsbury's to You, Interserve FM and Tulloch Construction have all increased the number of vehicles being managed through the Fleetstar-Online solution. A migration strategy aimed at moving the original server-based Fleetstar application to Fleetstar-Online was undertaken during the year. This has resulted in a reduction in the number of customers using this application from 100 to 31 over the period. The number of customers looking to take advantage of real-time reporting offered by technology such as General Packet Radio Service (GPRS) has increased significantly. At the end of the period under review, Cybit had in excess of 5,500 real-time units installed with the number continuing to increase significantly month on month. This capability now represents over 30% of the installed base and the percentage of customers taking advantage of this capability is expected to grow substantially in the future. Overall renewal rates remain high. When considered as a percentage of the overall Fleetstar base, the number of customers not renewing their Fleetstar or Fleetstar-Online contracts represents less than 5% of total customer numbers. Enhanced Service Delivery During the period, revenues from non-hardware related sources increased 60% from #1m to #1.6m. In addition to increased service support billings and our existing return on investment consultancy, a range of new services has been developed to complement the Fleetstar-Online solution, including new Personnel based consultancy services to support implementation and ongoing management of the new Duty of Care functionality released during late 2005. As a committed user of telematics solutions within our own business, adoption of the Duty of Care functionality (together with the use of our own consulting services) has reduced the incidence of excessive speeding by around 90%. Not only has this initiative reduced the business risks associated with operating a remote workforce, it has also resulted in significant fuel savings and a reduction in fault accidents across the business. Another innovation during the period was the creation of a new Structured Implementation Planning Process (SIPP) aimed at larger clients with more complex implementation and operational environments. At the period end, Cybit was engaged in a number of SIPP engagements with larger clients seeing this as a significant differentiator over competitor offerings. In all, more than 50% of our top 50 customers have taken advantage of the consulting services offered by Cybit. Our mapAmobile GSM mobile phone tracking service continues to deliver revenue to the business. Annual retention rates for existing users of this service are running at more than 95% with new customers jointing on a regular basis. A key benefit of this service is that it acts as a customer acquisition tool for the main Fleetstar solution with many initial mapAmobile enquiries converting to Fleetstar-Online sales. Operational Efficiency In addition to expansion of ISO to include product development and IT infrastructure, Cybit has also undertaken a number of initiatives to reduce cost and increase efficiency. A key strategy was the outsourcing of stock management, configuration and distribution. This initiative has resulted in improved flexibility, increased capacity and faster response times whilst reducing overall cost. We have also established a small internal implementation team. The initial impact of this initiative has been a dramatic quality improvement resulting in greater customer satisfaction. The overall effect has been to reduce cost, improve response times and provide greater flexibility. As a result of this initial success we are currently growing the internal team on a national basis. In the coming year, a new, integrated Enterprise Resource Planning (ERP) system will be implemented to further improve operational efficiencies with associated cost reductions. Product Development During the year, our in-house development team has grown such that we now have both web and technology development capabilities within the team. As a result, this has been another year of significant product enhancement across the portfolio. Fleetstar-Online was again the subject of a significant development program. We released a messaging module supporting two-way text based communication over GPRS and Short Messaging Service (SMS), a comprehensive Duty of Care module with associated driver identification (Driver-id) technology together with the first phase of our exciting new job management module. I am pleased to report that all of these developments have contributed to our revenue growth during the period and perhaps more importantly, have helped Cybit demonstrate competitive advantage and to achieve enhanced revenues. Although many of the deliverables in the year under review were focused on Fleetstar-Online, Cybit also delivered a major upgrade of the Drive-IT car sharing booking system which is now being used extensively by City Car Clubs, our major UK based user of this technology. In addition, development of the new Drive-IT hardware platform was substantially complete by the year-end with general availability scheduled for the summer of 2006. In the coming year, Cybit has an extensive development program planned. In addition to the Drive-IT enhancements, the corporate version of mapAmobile will be the subject of an extensive re-write delivering a new look user interface and enhanced functionality. Fleetstar-Online will also be upgraded to include Swedish language support, phase 2 of the job management module to include job status and forms management through PDAs and Mobile Data Terminals (MDTs), integration of third party Mobile Resource Management (MRM) and scheduling applications plus additional capabilities for larger corporate customers to manage more complex fleet requirements. Indirect Channels Cybit continues to make progress with the Norwich Union Fleet Telematics Solution. Approximately 20 customers have already signed up with many other companies expected to qualify for the product at their next insurance renewal. Progress continues with the specialist brokers who are working with our field sales team identifying potential clients for the Fleet Telematics product. In March 2005, we launched Fleetstar-AVL, a simplified version of Fleetstar-Online targeted at Small to Medium Enterprise (SME) customers looking for a simple, low cost means of managing smaller fleets of vehicles. As Cybit is increasingly targeting larger more complex clients, it was decided that a motivated, focused reseller channel is a far more effective way of driving volume from this sector of the market. Accordingly, this solution will only be available through resellers. The initial response from customers and resellers alike has been extremely positive with a number of new and existing resellers signing up to sell the solution. Our resellers have also achieved sales of the solution within the first few weeks of launch. European Subsidiaries Although modest, revenues in Sweden increased by 129% over the period with a number of contracts signed with new and existing users of both Fleetstar-Online and Drive-IT technology. Much of the contracted revenue is assigned to the Cybit internal lease book, reducing headline revenue numbers but establishing a solid revenue and profit stream for the future. The pipeline of potential Fleetstar business continues to grow with the release of Swedish language in Q1 expected to contribute to future success. Progress in Germany has been slower than expected but the recruitment of a new local sales manager has resulted in new contracts during Q4 and a stronger pipeline of business for the current financial year. During the period Cybit GmbH was formed in Germany and the name of Drive-IT Systems AB in Sweden was changed to Cybit AB. Financial review Cybit recorded a #0.2m profit for the period on revenues of #10.1m. This represents 52% revenue growth and a move from a loss of #1.5m in the same period last year. Significantly, gross margins increased from 59% to 67% over the previous period. This can be attributed to a number of factors including improved supplier terms, reduction in variable costs of running the service and a focus on "value selling" to protect margins. Despite the significant increases in headline revenues, administrative expenses only increased by 21% as strict cost controls have been maintained. During the period, net financing costs reduced from 13.6% to 11.2% as a percentage of turnover. This has been achieved through volume based cost reductions and an increasing number of customers paying cash for hardware. This achievement should be considered against a background of more four and five year leases as a percentage of total deals which would typically increase finance costs. A key strategic goal is to increase the levels of predictable forward profit and cash through greater use of both our internal leasing book and monthly billing programme. During the year under review, approximately #2m of business was treated in this manner, representing 20% of the total business written during the year. This strategy ensures that the business currently has forward visibility of approximately #2m in revenue and related profit, the majority of which will be received over the next three years. Cash in the period reduced by #1m, primarily as a direct result of increased use of our internal leasing book. However, the business still remains cash positive at the operating level with cash generated from operating activities increasing from #316,000 to #373,000 in the year. Additionally, cash generated from recurring sources (including our own leasing book) now stands at #200,000 per month - up from #140,000 per month a year ago. This covers approximately 50% of our monthly fixed cost base representing an increase from the 40% reported in the prior year. Outlook The progress made by Cybit over the last year reflects the growing mainstream acceptance in the UK support services and transport sectors that telematics-based fleet management solutions can play a key role in driving down costs, increasing efficiency and complying with the increasing legislative burden impacting business. Cybit is seeing an increasing pipeline of potential business and expects this to build further on the back of a range of product innovation and development. I would like to thank our dedicated team for their hard work and support during what has been another highly successful year for Cybit. Richard Horsman 23 June 2006 CONSOLIDATED PROFIT AND LOSS ACCOUNT Year ended Year ended 31 March 31 March 2006 2005 # # Turnover 10,190,382 6,727,392 Cost of sales (3,338,521) (2,752,063) Gross profit 6,851,861 3,975,329 Administrative expenses Other operating expenses Depreciation and goodwill (5,081,553) (4,189,110) amortisation (431,949) (412,881) Total administrative expenses (5,513,502) (4,601,991) Operating profit/(loss) 1,338,359 (626,662) Net interest and financing costs (1,138,349) (916,102) Profit/(loss) on ordinary activities before taxation 200,010 (1,542,764) Tax on profit/(loss) on ordinary activities (77,049) 234,835 Profit/(loss) transferred/set against reserves 122,961 (1,307,929) Earnings/(loss) per share - basic 0.62p (6.60p) Earnings/(loss) per share - diluted 0.62p (6.60p) RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS The The group group year ended year ended 31 March 31 March 2006 2005 # # Profit/(loss) for the year 122,961 (1,307,929) Other recognised gains and losses in the year 10,912 (19,140) Issue of shares in the year - 45,167 Net increase/(decrease) in shareholders' funds 133,873 (1,281,902) Shareholders' funds at 1 April 2005 6,327,539 7,609,441 Shareholders' funds at 31 March 2006 6,461,412 6,327,539 STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES The The group group year year ended ended 31 31 March March 2005 2006 # # Profit/(loss) for the year 122,961 (1,307,929) Exchange adjustments offset in reserves 10,912 (19,140) Total recognised gains/(losses) for the year 133,873 (1,327,069) CONSOLIDATED BALANCE SHEET AT 31 MARCH 2006 The The The The group group company company 2006 2005 2006 2005 # # # # Fixed assets Intangible assets 539,186 614,526 - - Tangible assets 600,527 661,063 - - Investment in subsidiaries - - 13,450,213 5,431,204 Total fixed assets 1,139,713 1,275,589 13,450,213 5,431,204 Current assets Stocks, being goods for resale 454,322 120,821 - - Debtors: amounts falling due after more than one year 1,026,476 1,431,293 685,761 8,704,877 Debtors: amounts falling due within one year 3,810,152 2,414,166 8,260 8,260 Cash at bank and in hand 2,693,308 3,704,225 - - 7,984,258 7,670,505 694,021 8,713,137 Creditors: amounts falling due within one year (2,392,554) (2,266,422) - - Net current assets 5,591,704 5,404,083 694,021 8,713,137 Total assets less current liabilities 6,731,417 6,679,672 14,144,341 14,144,341 Creditors: amounts falling due after more than one year (270,005) (352,133) - - Net assets 6,461,412 6,327,539 14,144,341 14,144,341 Capital and reserves Called up share capital 7,046,127 7,046,127 7,046,127 7,046,127 Share premium account 7,098,214 7,060,714 7,098,214 7,060,714 Merger reserve - 37,500 - 37,500 Other reserve (4,090,553) (4,090,553) - - Profit and loss account (3,592,376) (3,726,249) - - deficit Shareholders' funds 6,461,412 6,327,539 14,144,341 14,144,341 CONSOLIDATED CASH FLOW STATEMENT Year ended Year ended 31 March 31 March 2006 2005 # # Net cash inflow from operating activities 381,949 315,861 Returns on investments and servicing of finance Interest received 106,994 122,562 Finance costs of assigning debts to finance companies (1,217,057) (994,833) Interest received on finance leases 9,360 3,535 Finance lease interest paid (21,851) (11,580) Interest paid (15,795) (26,420) Net cash outflow from returns on investments and servicing of finance (1,138,349) (906,736) Taxation (2) (11,808) Capital expenditure Purchase of tangible fixed assets (138,103) (410,687) Purchase of intangible fixed assets (159,424) (7,971) Disposal proceeds of tangible fixed assets 1,048 - Net cash outflow from capital expenditure (296,479) (418,658) Acquisitions Purchase of business - (89,408) Net cash outflow from acquisitions - (89,408) Financing Issue of shares - 5,167 Receipts from borrowing 224,297 308,966 Finance lease repayments (113,984) (69,330) Repayment of loans (67,675) (23,052) Net cash inflow from financing 42,638 221,751 Decrease in cash (1,010,243) (888,998) Net cash inflow from operating activities Year ended Year ended 31 March 31 March 2006 2005 # # Operating profit/(loss) 1,338,359 (626,662) Depreciation and amortisation 431,949 412,881 Increase in stock (333,501) (27,884) (Increase)/decrease in debtors (1,057,916) 123,875 Increase in creditors 57,792 230,565 (Decrease)/increase in deferred income (54,734) 203,086 Net cash inflow from operating activities 381,949 315,861 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS 2006 2005 # # Decrease in cash in the year (1,010,243) (888,998) Receipts from borrowing (224,297) (308,966) Finance lease repayments 113,984 69,330 Repayment of loans 67,675 23,052 Change in net resulting from cash flows (1,052,881) (1,105,582) Effect of foreign exchange (54) (428)) (1,052,935) (1,106,010) Net funds at 31 March 2005 3,422,738 4,528,748 Net funds at 31 March 2006 2,369,803 3,422,738 NOTES TO THE FINANCIAL STATEMENTS 1. The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. 2. The financial information has been extracted from the group's 2006 financial statements. Those financial statements have not yet been delivered to the Registrar. However the group's auditors have given an unqualified audit opinion on those financial statements. 3. Basis of preparation The preliminary results have been prepared under the historical cost convention and in accordance with applicable accounting standards. The principal accounting policies of the group are set out in the group's 2005 annual report and financial statements. The policies in this preliminary announcement have remained unchanged from those 2005 financial statements. The group has implemented FRS 21 'Events After the Balance Sheet Date', FRS 22 'Earnings Per Share', the presentational aspects of FRS 25 'Financial instruments: Disclosures and Presentation', and FRS 28 'Corresponding Amounts'. The implementation of these new standards has had no significant effect on the group's existing disclosures. 4. Earnings/(loss) per share The calculation of the basic earnings/(loss) per share is based on the profits/ (losses) attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year. For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. The group has two classes of dilutive potential ordinary shares: those share options granted to employees where the exercise price is less than the average market price of the company's ordinary shares during the year and the warrants issued to Trafficmaster as part of the acquisition of Fleetstar in February 2002. Reconciliations of the earnings/(losses) and weighted average number of shares used in the calculations are set out below. Year ended 31 March 2006 Year ended 31 March 2005 Earnings Weighted Per-share Earnings Weighted Per-share average amount average amount number of number of (Restated) shares shares (Restated) # No. Pence # No. Pence Basic earnings/ (loss) per share Earnings/(losses) attributable to ordinary shareholders 122,961 19,864,554 0.62p (1,307,929) 19,830,038 (6.60p) Effect of dilutive securities Options and warrants 45,461 - Diluted earnings per share Adjusted earnings 122,961 19,910,015 0.62p (1,307,929) 19,830,038 (6.60p) In the year ended 31 March 2005 the options and warrants were anti-dilutive due to the loss in the year. 5. Copies of the company's Annual Report and Accounts will be available from the company's registered office. END This information is provided by RNS The company news service from the London Stock Exchange END FR UUVWRNBRNUAR
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