DICOM Group plc: Interim Results 2008 - Six Months to 31 December 2007

  
    
  
  
    
      DICOM Group plc (‘DICOM’ 
      or the ‘Company’)(LSE:DCM 
      or DCM.L), a leading provider of Intelligent Capture & Exchange 
      solutions, today announces Interim Results for the six months ended 31 
      December 2007.
    
    
      Financial Highlights of the Interim Results (prepared under IFRS)
    
    
      
        Turnover up 5% to £82.4m (2006: £78.5m)

        
          
            Software licence turnover up 4% and software services up 18% in 
            constant currency terms
          
          
            Total software business revenues up 10% in constant currency terms
          
        
      
      
        Gross profit margins increased to 55.9% (2006: 54.6%)
      
      
        Adjusted operating profits up 15% to £8.1m 
        (2006: £7.0m), an increase of 19% in 
        constant currency terms
      
      
        Adjusted operating profit margins up to 9.8% (2006: 9.0%)
      
      
        Pre-tax profits up 1% to £6.1m (2006: £6m)
      
      
        Adjusted earnings per share up 15% to 6.9p (2006: 6.0p)(a)
      
      
        Net funds of £24.4m (£38.2m 
        at 30 June 2007) after spending £11.2m on 
        share buy back (b)
      
      
        Proposed interim dividend up 15% to 0.82p (2006: 0.71p)
      
    
    
      (a) Further details with regards to the calculation of adjusted earnings 
      and adjusted profits are set out in note 6 to the financial results.
    
    
      (b) Further details with regards to technical issues concerning the 
      share buy back are set out in the Chief Financial Officer’s 
      Financial Review.
    
    
      Operating Highlights
    
    
      
        Achieved major customer wins at ING-DiBa, Emirates Airlines, Deutsche 
        Bank, Prudential and China Merchant Bank
      
      
        Remarketing agreement with HP to sell Kofax Intelligent Capture & 
        Exchange solutions
      
      
        Received numerous industry awards:

        
          
            Technology Partner of the Year from Open Text Corporation
          
          
            Editor’s Choice Award from Document 
            Manager Magazine
          
          
            Named on Software Magazine’s 25th 
            Annual Software 500 List
          
        
      
      
        Hosted Transform 07 in Budapest during November with more than 500 
        attendees and partners from 30 countries
      
    
    
      Post-Period End Activity
    
    
      
        Reorganisation to position DICOM better for future growth:

        
          
            Restructured corporation into vertically aligned, worldwide 
            functions with global managers
          
          
            Restructured the sales function into three groups better aligned 
            with DICOM’s products, markets and 
            customers
          
          
            Affected headcount reductions
          
        
      
      
        Implementation of unified branding:

        
          
            Proposal to change the name of the Company to “Kofax 
            plc”
          
        
      
    
    
      Commenting, Reynolds C. Bish, Chief Executive Officer of DICOM Group 
      said:
    
    
      “The strategic review I’ve 
      conducted since joining DICOM in November 2007 has shown that the 
      company remains fundamentally well positioned and financially sound but 
      also that some strategic changes are necessary. In addition to 
      accelerating previously announced changes in strategy, we have started 
      to affect these further changes through the restructuring of both the 
      company and our sales organisation and with our proposed corporate 
      rebranding. These moves have better focused all of our resources and we 
      expect the appointment of an EVP of Worldwide Field Operations to 
      further improve our sales management, productivity and visibility, plus 
      provide a clearer focus on, and better execution of, key revenue growth 
      strategies.
    
    
      “I and the Board remain confident that we 
      will be able to continue to achieve 10% revenue growth in constant 
      currency terms in our software business, with a higher than expected 
      contribution from software services offsetting lower growth in software 
      licenses during the remainder of this fiscal year. More importantly, 
      despite an uncertain economic environment at the present time we remain 
      enthused about DICOM’s market opportunities 
      and continue to target double digit revenue growth in our software 
      business in future years.“
    
    
      Webcast
    
    
      There will be a webcast available on the Company’s 
      website (http://www.dicomgroup.com) 
      from 2pm today.