Hss Hire Share Discussion Threads

[pacman88] 27/11/2003 07:42

RNS Number:5534S
Highams Systems Services Group PLC
27 November 2003


Press Release

For Immediate Release

27 November 2003






HIGHAMS SYSTEMS SERVICES GROUP PLC

INTERIM STATEMENT

for the six months ended 30 September 2003



Results

Group turnover for the six month period to 30 September 2003 amounted to #4.8m
(2002: #5.6m) and the operating loss, after exceptional costs of #68k, was #112k
(2002: loss - #222k). The loss before taxation was #102k (2002: loss - #212k).


The Group's cash position remained strong at #904k.


Highams Recruitment Limited and Highams Recruitment BV

The recruitment businesses achieved turnover figures for the six month period of
#4.0m (2002: #4.9m) and profits (before their share of group overheads and
before providing for closure costs) of #289k (2002: #226k). Permanent
recruitment sales improved but there was less contract recruitment business. The
Dutch recruitment business is now operated from the UK head office following the
closure of its office in The Hague.


Highams Business Solutions Limited

Turnover for the six month period was #720k (2002: #717k), and profits (before
its share of group overheads) were #284k (2002: #204k). This improvement in
profitability was largely due to the successful implementation of the Hi-Finance
system at a new South African client


Dividend

Consistent with previous years, the Board is not recommending an interim
dividend.


Other matters

Please see the accompanying announcement concerning the sale of Highams Business
Solutions Limited to Surecomp Inc for a total consideration of #910,000, and
progress on the implementation of the Group's strategy.


For further information, please contact:

Ted Andrews, Group Managing Director, Highams Systems Services 01883 341144
Group plc
Rick Thompson, Charles Stanley (Nominated Adviser and Broker) 020 7953 2482
David Haggie, Haggie Financial Limited 020 7417 8989

Consolidated Profit & Loss Account for the six months ended 30 September 2003

6 months to 6 months to 12 months
Notes 30 Sep 2003 30 Sep 2002 to 31 Mar 2003
(unaudited) (unaudited) (audited)
#'000 #'000 #'000

Turnover 4,754 5,618 11,096
Cost of (3,984) (4,786) (9,485)
sales
-------- -------- --------
Gross profit 770 832 1,611
-------- -------- --------
Administrative (814) (1,054) (1,819)
expenses
before
exceptional
costs
Exceptional 3 (68) - -
costs -------- -------- --------
(882) (1,054) (1,819)
-------- -------- --------
Operating (112) (222) (208)
Loss
Interest 10 13 21
receivable
Amounts - (1) (5)
written off
investments
Interest - (2) (3)
payable
-------- -------- --------
Loss on 2 (102) (212) (195)
ordinary
activities
before
taxation
Tax on loss on - - -
ordinary
activities
-------- -------- --------
Loss on (102) (212) (195)
ordinary
activities
after
taxation

Dividends - - -
-------- -------- -------
Loss for the (102) (212) (195)
period
-------- -------- -------

Loss per share
- basic and
diluted
Loss after 4 (0.18) p (1.09) p (1.00) p
taxation
before
exceptional
costs

Loss after 4 (0.53) p (1.09) p (1.00) p
taxation and
exceptional
costs

Consolidated Statement of Total Recognised Gains and Losses for the six months
ended 30 September 2003

6 months to 6 months to 12 months
30 Sep 2003 30 Sep 2002 to 31 Mar 2003
(unaudited) (unaudited) (audited)
#'000 #'000 #'000

Loss on (102) (212) (195)
ordinary
activities
after
taxation

(Loss)/Profit (2) 2 (7)
on foreign
currency
translation
------- ------- -------
Total (104) (210) (202)
recognised
gains and
losses
======= ======= =======




Consolidated Balance Sheet
As at 30 September 2003

Notes
30 Sep 2003 30 Sep 2002 31 Mar 2003
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Fixed assets
Tangible assets 122 82 80
Investments 9 13 9
------ ------- -------
131 95 89
------ ------- -------

Current assets
Debtors 1,692 2,060 2,233
Cash at bank and in hand 904 878 872
------- ------- -------
2,596 2,938 3,105

Creditors: amounts falling (742) (952) (1,105)
due within one year
------- ------- -------
Net current Assets 1,854 1,986 2,000
------- ------- -------
Net assets 1,985 2,081 2,089
------- ------- -------

Capital and reserves
Called up share capital 979 979 979
Share premium 5 684 684 684
Merger reserve 5 - 222 -
Profit and loss account 5 322 196 426
------- ------- -------
1,985 2,081 2,089
Equity shareholders' funds ------- ------- -------



Consolidated
Cash Flow
Statement
for the six
months ended
30 September
2003

Notes 6 months to 6 months to 12 months
30 Sep 2003 30 Sep 2002 to 31 Mar 2003
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Reconciliation of
operating result to
net cash flow from
operating activities
Operating loss (44) (222) (208)
before
exceptional
costs
Exceptional 3 (68) - -
costs
------ ------ ------
Operating loss (112) (222) (208)
after
exceptional
costs
------ ------ ------
Depreciation 31 39 74
Decrease in 541 605 432
debtors
Decrease in (363) (126) 28
creditors
Loss on - - (3)
disposal of
fixed assets
Exchange (2) - (7)
differences
------ ------ ------
Net cash 95 296 316
inflow from
operating
activities
------ ------ ------

CASH FLOW
STATEMENT

Net cash 95 296 316
inflow from
operating
activities

Returns on
investments
and servicing
of finance
Interest 10 13 21
received
Interest - (2) (3)
paid
------ ------ ------
Net cash 10 11 18
inflow
------ ------ ------

Taxation
UK Corporation - - -
tax
------ ------ ------

Capital
expenditure
and financial
investment
Purchase of (73) (20) (56)
tangible fixed
assets
Sale of - - 6
tangible fixed
assets
------ ------ ------
Net cash (73) (20) (50)
outflow
------ ------ ------

Equity - (20) (20)
dividends
paid
------ ------ ------

Increase in 6 32 267 264
cash in the
period
------ ------ ------





Notes to the Interim Report

1. Basis of
preparation

The interim report has been prepared on the basis of the accounting
policies set out in the statutory accounts for the year ended 31 March
2003 and includes the accounts of the Company and its trading
subsidiaries.

The interim report is unaudited and does not constitute statutory
accounts. A copy of the statutory accounts for the year ended 31 march
2003 has been filed with the Registrar of Companies. The auditors'
opinion on those was unqualified and did not contain a statement under
section 237(2) or (3) of the Companies Act 1985.

The interim report for the six months ended 30 September 2003 was
approved by the Board on 26th November 2003. A copy of this report has
been sent to shareholders and further copies of this report are available
from the Company's registered office.

2. Segmental analysis of turnover and loss before taxation


6 months to 6 months to 12 months to
30 Sep 2003 30 Sep 2002 31 Mar 2003
(unaudited) (unaudited) (audited)
Continuing Turnover Profit/(loss) Turnover Profit/ Turnover Profit/
operations (loss) (loss)
#'000 #'000 #'000 #'000 #'000 #'000

Recruitment 4,034 289 4,901 226 9,544 523
Services

Business 720 284 717 204 1,552 535
Solutions

Common - (607) - (642) - (1,253)
costs
(net of
interest)

Exceptional - (68) - - - -
costs (note
3)
-------- -------- -------- -------- -------- --------
4,754 (102) 5,618 (212) 11,096 (195)
-------- -------- -------- -------- -------- --------

3.
Exceptional
costs
6 months to 6 months to 12 months to
30 Sep 2003 30 Sep 2002 31 Mar 2003
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Exceptional
costs
comprise the
following:

Closure of (68) - -
Dutch
office
===== ===== =====
All Highams Recuitment BV operations have now been transferred to the UK.




4. Loss per share

6 months to 6 months to 12 months to
30 Sep 2003 30 Sep 2002 31 Mar 2003
(unaudited) (unaudited) (audited)
Loss Per share Loss Per share Loss Per
share
#'000 p #'000 p #'000 p

Loss after (34) (0.18) (212) (1.09) (195) (1.00)
taxation
before
exceptional
costs

Exceptional (68) (0.35) - - - -
costs
-------- -------- ------- ------- ------- -------

Loss after (102) (0.53) (212) (1.09) (195) (1.00)
taxation and
exceptional
costs
-------- -------- ------- ------- ------- -------

Shares 000's 000's 000's
Weighted 19,425 19,425 19,425
average number
of shares

Loss per share has also been calculated based on the loss for the financial
period before exceptional costs as the directors believe this loss per share
figure provides a better indication of financial performance.

5. Movement in reserves

Share Profit and Total
Premium Loss Account Reserves

#'000 #'000 #'000
1 April 2003 684 426 1,110
Loss for the - (102) (102)
period
Exchange rate - (2) (2)
differences
------ ------- -------
30 Sept 2003 684 322 1,006
------ ------- -------
Note: The merger reserve was transferred to the Profit and Loss Account in the
year to 31 March 2003.

6. Analysis and reconciliation of net funds

Analysis of
changes in net
funds
1 Apr 2003 Cash Flow 30 Sep 2003
#'000 #'000 #'000

Cash at bank 872 32 904
and in hand
Overdrafts - - -
------ ------ ------
872 32 904
------ ------ ------

Cash at bank and in hand includes #2,312 (31 March 2003: #2,312) in
respect of monies held in the Employee Share Benefit Trust.

Reconciliation
of net cash
flow to
movement in
net funds
6 months to 6 months to 12 months
30 Sep 2003 30 Sep 2002 to 31 Mar 2003
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Increase in 32 267 264
cash in the
period
------ ------ ------

Change in net 32 267 264
funds
Net funds 872 608 608
brought
forward
------ ------ ------
Net funds 904 875 872
carried
forward
------ ------ ------


7. Post balance sheet event

Since the period end, Highams Systems Services Group plc has disposed of
its shareholding in Highams Business Solutions Limited for a total
consideration of #910,000.



Sale by Highams Systems Services Group plc (Group)of Highams Business Solutions
Limited (HBS)



Introduction


The Board of Highams Systems Services Group plc announced today that the Group
has completed the sale of HBS to Surecomp Inc, a Canadian company, for a total
consideration of #910,000. Further details of the consideration are set out
below under the heading "Terms of the Sale". The purpose of this announcement
is to provide information on the sale, the consequential re-alignment of the
Group's business strategy, and why the Board considers these changes to be in
the best interests of the Group and shareholders as a whole. The net proceeds to
the Group from the sale and loan repayment, after compensation and professional
costs, are anticipated to be approximately #750,000.



Background to and Reasons for the Sale


To date, the Group has consisted of two distinct businesses. The Business
Solutions subsidiary, HBS, focussed on marketing its financial software package
Hi-Finance to a blue chip client base in banking, factoring of debts, and
asset-based leading; and Highams Recruitment Limited (HRL) which provides
specialised permanent and contract IT personnel, primarily to the insurance and
financial markets.


HBS has successfully developed and sold its software systems to users in the UK
and in Continental Europe as well as in America, Australia and South Africa. As
reflected in the Group's (unaudited) Interim Results, as at 30 September 2003
HBS had tangible net assets of #418k before debiting loans to HBS from Group,
and pre-tax profits for the six months then ended of #284k before deducting its
share of head office costs, on sales during the period of #720k.


The Group Board has for some time been aware that HBS required and merited more
support in terms of software enhancement, application development and
international marketing representation to maintain its leading position than the
Group had the resources to provide. Satisfying these requirements was seen as
important from the points of view of both clients and staff.


Therefore, as mentioned in past Chairman's Statements, the Group Board has been
seeking a "partner" who had the potential and resources to provide HBS with more
powerful support and parenting benefits. There has been a number of approaches
from potential buyers of HBS, but until recently none has offered the right
combination of a fair price to reflect the intrinsic value of HBS plus the
potential to provide the product with the benefits Hi-Finance requires for its
future development.


Surecomp is a privately held Canadian Software company that is a provider of
software solutions to financial institutions. Surecomp believes itself to be one
of the leading global providers of trade finance solutions. Surecomp has offices
in Hong Kong, New York, Israel, Germany and the Netherlands. (For more
information about Surecomp, visit their website at www.surecomp.com)





Terms of the Sale


Pursuant to the Sale and Purchase Agreement, the Group has agreed to sell the
whole of the issued share capital of HBS and has been repaid its inter-group
loan account with HBS. The total consideration, including the settlement of the
loan account, was #910,000 of which #610,000 was paid on completion, with the
balance of #300,000 being held in escrow to be paid on 31 May 2005.


Under the terms of the Agreement, Bryan Martin has entered into an employment
contract as a Vice President of Surecomp, and has resigned from the Highams
Group Board. The Group has paid him the sum of #90,000 as compensation for loss
of office. The Board greatly thanks him for his skilled and untiring work for
Highams over many years and wishes him well for the future.


Additionally, under the terms of the Agreement, Surecomp has taken a sub-lease
of part of the Group's Caterham premises for a period of up to 16 months at a
full rental which has been paid in advance.



Benefits of the Sale


As a result of the sale of HBS, the Group Board will now be in a position to
concentrate both management time and enhanced financial resources on developing
and expanding the recruitment activities of HRL. The Group Board has for some
time been aware that those activities require additional critical mass in terms
of turnover, contractor throughput and client base, and this in turn calls for
investment which the proceeds of the sale of HBS, along with the Group's
historically strong cash and balance sheet position, will greatly facilitate.
The Group Board is actively pursuing this strategy.


Further information


The Group's Interim Statement for the six months to 30 September 2003 has been
released at the same time as this announcement.






For further information, please contact:

Ted Andrews, Group Managing Director, Highams Systems Services 01883 341144
Group plc
Rick Thompson, Charles Stanley (Nominated Advisor and Broker) 020 7953 2482
David Haggie, Haggie Financial Limited 020 7417 8989

For more information about Surecomp, visit their website at www.surecomp.com









This information is provided by RNS
The company news service from the London Stock Exchange

[tett] 18/10/2003 00:10

feedthegoat
I understand that a very respectable offer was made for HSS by a privately owned company. They were refused at the last minute by the management and Board - who, at the time, decided that they preferred to go the MBO route. Nothing of this was publicly announced to shareholders.

That was some time ago - and nothing ever emerged - but maybe it is now a goer. Has all the hallmarks - lightly traded, gradually moving up as a result of very small volumes.

You may well have hit on the smelly fish in question - I await developments with interest !!!!

[tett] 17/10/2003 07:49

Interesting 8% rise for HSS despite no trades during open hours and 2 apparent sells recorded well after the market closed.

If we see press coverage in the IC or weekend press I strongly suspect smelly fish.

[kiwimonk] 30/9/2003 12:07

Hi-Finance division is well worth a multiple of the current market cap imo.
Looks very promising.

[pacman88] 26/9/2003 13:02

RNS Number:2335Q
Highams Systems Services Group PLC
26 September 2003

PRESS RELEASE
For Immediate Release

26th September 2003

HIGHAMS SYSTEMS SERVICES GROUP PLC

Chairman's AGM Statement

At the Annual General Meeting of Highams Systems Services Group plc held today
in London, all resolutions were duly passed and the Chairman Nigel Graham Maw
said:

"In our Recruitment business, the demand for permanent recruitment has remained
high throughout this financial year, whilst the early drop off in contractor
numbers has levelled out in the past three months. Frequently a quiet time of
the year for Recruitment, we were quite busy over the summer holiday period
which should benefit our second half performance.

As highlighted in our Report and Accounts, since the year end we have closed our
branch operation in the Netherlands and transferred management of the client
accounts to Caterham. The one-off closure and redundancy costs will be shown in
our Interim Results.

I also mentioned in our Report and Accounts that our Business Solutions
subsidiary had successfully concluded a licence agreement for our Hi-Finance
system with a southern hemisphere bank - I am delighted to report that this
system has now been implemented very successfully. Additionally, good progress
is being made on further sales opportunities in Europe.

We continue to seek and explore strategic opportunities for the future growth
and development of the Group."


For further information, please contact:

Ted Andrews, Group Managing Director, Highams [phone]
David Haggie, Haggie Financial [phone]



This information is provided by RNS
The company news service from the London Stock Exchange
END

AGMPUUMWBUPWGPQ

[aixam] 11/9/2003 01:02

BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...

GX NETWORKS,FORMELY KNOWN AS ZIPCOM HAVE BOUGHT COMPANIES WHO HAVE SPENT IN EXCESS OF £150MILLION ON DEVELOPMENT,ALL AT COSTS OF LESS THAN £15 MILLION....

RESULTS OUT SOON, THIS BABY IS A BUY...WILL HIT £1..


CHECKOUT THE B.BOARD EPIC....GXN...ALL INFO ON THERE...HAPPY HUNTING GUYS..

[aixam] 11/9/2003 01:02

BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...

GX NETWORKS,FORMELY KNOWN AS ZIPCOM HAVE BOUGHT COMPANIES WHO HAVE SPENT IN EXCESS OF £150MILLION ON DEVELOPMENT,ALL AT COSTS OF LESS THAN £15 MILLION....

RESULTS OUT SOON, THIS BABY IS A BUY...WILL HIT £1..


CHECKOUT THE B.BOARD EPIC....GXN...ALL INFO ON THERE...HAPPY HUNTING GUYS..

[aixam] 11/9/2003 01:02

BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...

GX NETWORKS,FORMELY KNOWN AS ZIPCOM HAVE BOUGHT COMPANIES WHO HAVE SPENT IN EXCESS OF £150MILLION ON DEVELOPMENT,ALL AT COSTS OF LESS THAN £15 MILLION....

RESULTS OUT SOON, THIS BABY IS A BUY...WILL HIT £1..


CHECKOUT THE B.BOARD EPIC....GXN...ALL INFO ON THERE...HAPPY HUNTING GUYS..

[aixam] 11/9/2003 01:02

BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...

GX NETWORKS,FORMELY KNOWN AS ZIPCOM HAVE BOUGHT COMPANIES WHO HAVE SPENT IN EXCESS OF £150MILLION ON DEVELOPMENT,ALL AT COSTS OF LESS THAN £15 MILLION....

RESULTS OUT SOON, THIS BABY IS A BUY...WILL HIT £1..


CHECKOUT THE B.BOARD EPIC....GXN...ALL INFO ON THERE...HAPPY HUNTING GUYS..

[aixam] 11/9/2003 01:02

BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...

GX NETWORKS,FORMELY KNOWN AS ZIPCOM HAVE BOUGHT COMPANIES WHO HAVE SPENT IN EXCESS OF £150MILLION ON DEVELOPMENT,ALL AT COSTS OF LESS THAN £15 MILLION....

RESULTS OUT SOON, THIS BABY IS A BUY...WILL HIT £1..


CHECKOUT THE B.BOARD EPIC....GXN...ALL INFO ON THERE...HAPPY HUNTING GUYS..

[aixam] 11/9/2003 01:02

BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...BUY...

GX NETWORKS,FORMELY KNOWN AS ZIPCOM HAVE BOUGHT COMPANIES WHO HAVE SPENT IN EXCESS OF £150MILLION ON DEVELOPMENT,ALL AT COSTS OF LESS THAN £15 MILLION....

RESULTS OUT SOON, THIS BABY IS A BUY...WILL HIT £1..


CHECKOUT THE B.BOARD EPIC....GXN...ALL INFO ON THERE...HAPPY HUNTING GUYS..

[tett] 10/9/2003 23:49

Wouldn't disagree - and particularly pleased with the volumes - not a lot of trades - obviously only for the discerning. The "rat pack" must not have spotted HSS yet.

Well done for highlighting it - been sitting with quite a few for quite a while. Would be very nice to see 100% from my investment - so I would probably take 15 and then try and get back in on any pullback to where we are now.

[pacman88] 10/9/2003 18:44

:-)nice increase on good volumes. Next stop 15p where I expect to see resistance and possibly a retratce to 10-12p before consolidation and move up.

[tett] 10/9/2003 09:16

pacman88
Looks like this is staying a well kept secret. Up for a fourth day in a row - something is brewing IMHO.

[pacman88] 08/9/2003 19:09

Slow and steady as HSS continues its move up.

[tett] 05/9/2003 18:05

Kinda expecting some weekend press coverage - must be some naughty people who have inside knowledge of pending announcement - tut, tut

adam
Are you asking me about SBG or referring to HSS ?

[adam] 05/9/2003 15:28

Looks cheap, but large controlling stake makes me nervous. What do you know about the directors?

[tett] 05/9/2003 08:23

Well done pacman88 - been in these for a while - and it now looks as if it's joining the party.

Next one to show some signs of life will be SBG - due to make an announcement about their dreadful banking arrangements - next Thursday/Friday. I suspect we might hear that the debt that has been weighing heavy on them has been resolved - which will make them fly - because it is almost impossible to trade them - very low NMS and terrible spread.

Take a look if you're interested in the sector - they operate worldwide - with some areas being stronger than others. I'm kinda expecting them to do a bit of shuffling of the business when they announce their banking deal next week.

Their market cap at these low levels (supressed by the debt) is £0.7m !!! although last year's turnover was £32m. Been a steady decline over the last few years - with only £13m half year T/O to march 2003.

Whichever way you measure this one it has the classic hallmarks of a do or die recovery play. Remove the debt burden and there's no way it should be trading at less than a couple of million market cap. If we make an assumption that their value should be - say - 10% of turnover - it would make their market cap around £2.6m.

£2.6m MC = 10m shares = 26p v current 7.75 mid.

[recruiter] 04/9/2003 15:39

I too follow these, I actually know them through being in the recruitment market.
My only drawback would be to say, even if one recruitment co. are doing well, doesn't mean another one is...additionally it was only last month they said that they couldn't see any upturn in business prospects.

Saying all that, good luck with this.

[pacman88] 04/9/2003 14:22

Nice to see it move after highlighting this yesterday. Looks like we are moving of a consolidation plateau.

[pacman88] 03/9/2003 16:43

o Share price: 8.5p
o Mkt Cap: £1.6M,
o Cash: £0.8M
o Net current assets: £2M
o Turnover: £11M
o Profitable in H2
o Generated cash in 2002 in a difficult market
o 2 divisions:
1.IT Recruitment (85% of business)
2.Business services (15% of revenue)

IMHO the share price is underpinned by the cash and net asset value of the business. It looks like a great play on the expected pick up in the economy and given the positive noises from the other recruitment companies (MPI, CSV, HAS), I would expect to see a pick up here in due course. Additional kicker is provided by the software business, which is still very small but may just be a gem in the making. I am putting no value on that as I invest.

[tett] 23/7/2003 08:46

Good point - looks as if they should have been out in mid-June - that seems to have been the pattern for a few years - but nothing so far this year.

Maybe they've got more to say than usual - so they've employed one of their contractors to write the story ;)

[tiredandweary] 21/7/2003 11:29

Does anyone know when the full year results are out on this dog?
I'm looking forward to reading their excuses

[tiredandweary] 16/7/2003 11:17

In the old days the rats used to leave the sinking ship.
so long as this ship has cash, I suspect that Ted and Clive will hang on until it runs out, which will probably be another year.
by that time the business will be bust and it's hard to see what the shareholders will have left