We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register to chat with like-minded investors on our interactive forums.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Ims Maxims | LSE:IMX | London | Ordinary Share | GB00B3KKWM62 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 11.75 | 0.00 | 00:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
Hot Features
Premium
RNS Number:2569Q
IMS Maxims PLC
26 September 2003
Press Release
IMS MAXIMS plc
26 September 2003
Preliminary Results for the year ended 31 March 2003
HIGHLIGHTS
* After a challenging year, IMS MAXIMS remains well placed in its
core market, the UK NHS
* Increased focus on healthcare and significant progress with LSPs
* Restructuring complete and non-core business disposed of
* Focused marketing strategy in other geographies yielding results
* Reduced run rate of operating expenses
* Increased resources available to execute business plan
Commenting on the results Mr David MacDonald, Chairman of IMS, said
"IMS Maxims has responded to the challenges of a difficult market place. The
effects of our cost reduction programme and the discipline of our financial
strategy will be seen in the current and future years. We are confident that the
strength of our products will allow us to participate significantly in the NHS
market when that market begins to grow."
Chairman's Statement
I am pleased to present my report for our year ended 31 March 2003.
As a developer of healthcare software for the UK National Heath Service (NHS)
market, the value of IMS MAXIMS plc is encapsulated in the successful Electronic
Patient Record (EPR) and Electronic Health Record (EHR) software which we have
developed over past years and the extent to which this asset can generate future
revenues and profits. This obviously continues to depend upon the rate of
investment by the NHS and Government. In July 2002 the Government announced a
#2.3 billion investment over 3 years to modernise the NHS via the National
Programme for IT (NPfIT). It is our view that this programme is proceeding in a
direction and at a pace that is broadly in line with the original plan and our
expectations, and we have seen substantial progress in the Government's widely
publicised commitment to the modernisation of the NHS in the last 12 months. In
the short term, however, the development of the National Programme for IT
(NPfIT) has created a situation which has been often described in the market as
"planning blight".
As a result, the year has been a very challenging period, largely due to the
poor trading conditions in our main market. In previous statements from IMS
MAXIMS plc, we have highlighted the extent to which your company's trading
performance is dependent upon the evolving situation in the NHS. Not
unexpectedly, the slowdown that was created by the evolving situation has
damaged our turnover. This situation continues to unfold and is addressed in
greater detail below.
Nonetheless, we are convinced that our strategy to remain committed to this
market will create substantial shareholder value in the longer term. We have
demonstrated this commitment during the year by increasing our focus on the
healthcare sector. We have done this by
* Disposing of all our non-healthcare business;
* Re-focusing our product portfolio to ensure that we are best positioned
to meet the NHS market needs when Local Service Providers (LSPs) are appointed;
* Continuing appropriate market development activity during the planning
blight in the NHS.
We have managed our way through this difficult period by
* Restructuring the company in order to reduce costs;
* Securing additional working capital of #777,000 through a placing of
13,196,666 new ordinary shares at 6p each;
* Widened the marketing of our products to North America and in Ireland;
* Strengthening the board with the appointment of Stephen Casey as Finance
Director, with effect from 23 September 2003.
The company has secured long term loan financing of #2million, which is to be
received in October 2003.
In summary, although 2003 was a challenging year for IMS MAXIMS plc, we end the
year in a stronger position in our chosen niche in the NHS market. We are now
well placed to be selected as a supplier of software to the NHS via the LSPs
when the NPfIT becomes operational in 2004.
D W Macdonald
Chairman
Chief Executive Officer's Statement
The UK NHS
The level of business done in the NHS throughout the 12 months to 31 March 2003
has been disappointingly low, due to the fact that our customers and prospects
continue to be unable to purchase new information systems while the market goes
through fundamental restructuring. This will continue until Local Service
Providers (LSPs) have been appointed. We have maintained close links with many
of the companies who aspire to be LSPs, and are confident that IMS MAXIMS has an
important role to play in the new market environment. During the year we
continued to develop those components of our software portfolio that will be
required when the NHS makes the significant investment in information systems to
which it is committed.
The appointment of a new NHS IT Director General in late 2002 has driven a
fundamental restructuring of the NHS IT market and the basis upon which
Information Systems (IS) will be procured. Five Strategic Health Authorities
Clusters have been created and it is planned that the IS needs of each will be
serviced by one LSP.
Through a public procurement process started in 2002, the National Programme for
IT (NPfIT) obtained initial interest from almost 100 companies interested in
participating in the programme as LSPs. The list of potential LSPs was reduced
to 31 in June 2003, and to 11 at the end of July 2003. The successful LSPs for
the first two Clusters will be selected shortly and the target is to conclude
contracts by the end of October 2003. The other three Cluster/LSP combinations
are expected to be finalised by the end of the year.
Progress in the rollout of our software with recent clients Clatterbridge and
Crewe, and with our customers of longer standing, continues at a very
satisfactory level. Contract extensions for existing sites and a new contract in
South Tees Hospitals NHS Trust have been signed, albeit not for major systems
due to uncertainty at the level of individual Trusts.
In Ireland, we concluded agreement on migration to Oracle of the Irish Patient
Administration System, which is installed in 46 hospitals. Phase 1 of this
project is due for delivery shortly with full migration to Graphical User
Interface, including Web enabling, planned shortly afterwards.
Prospects
Your Board is confident that the re-structured NHS NPfIT environment will bring
major benefits to IMS MAXIMS plc, and that your company's products have a
serious role to play in the UK when the LSPs are appointed. We are in ongoing
discussion with a number of the potential LSPs and our information systems can
enable them to deliver quickly the functionality required by NPfIT.
We see North America as a large market with considerable potential for the
information systems IMS MAXIMS has developed for the UK NHS. Your company is a
partner in a consortium that has just commenced contract negotiations, as
preferred supplier, for a significant contact. This project could break new
ground in North America, and your company's products will play an important role
in delivering clinically focussed and geographically distributed applications as
part of a highly innovative initiative. This breakthrough will not only add to
our business, but also serves to demonstrate the underlying strength of our
product portfolio.
We also believe that our recently signed relationship with PICIS Inc, a supplier
of perioperative systems in the USA and Europe, has potential for
bi-directional distribution of a combined set of IMS and PICIS products which
are highly complementary. It is too early in the relationship to elaborate
further at this stage.
J B Ennis
Chief Executive Officer
Financial Review
Turnover for the year of #3,356,000 (2002: #5,700,000) produced an operating
loss before goodwill and exceptional items of #2,434,000 (2002: profit of
#737,000). After goodwill amortisation and exceptional items the loss for the
year was #4,053,000 (2002: profit of #462,000). The group loss for the year
after taxation was #4,386,000 (2002: profit of #296,000).
There was no charge to taxation for the year and tax losses available to offset
future profits were estimated at #4,286,000 (2002: #1,686,000).
The basic loss per share for the year was 3.2p (2002: profit per share of 0.23p)
per share.
The group's intangible assets include goodwill of #3,658,000 (2002: #3,904,000)
and development costs of #4,210,000 (2002: #5,016,000) representing projects
where recovery can be reasonably regarded as assured.
Net assets of the group of #3,697,000 (2002: #7,493,000) include net current
liabilities of #1,791,000 (2002: net current assets of #567,000). Net current
liabilities includes #942,000 (2002: #679,000) of deferred revenue and #957,000
relating to the Irish Business Expansion Scheme ("BES"). The BES has agreed to
convert the liability into non-equity shares, subject to shareholder approval,
which results in the liability being treated as being not due within the next
year. Before deferred revenue and the BES liability the group has net current
assets. The movements in the net assets relate to the loss for the year and the
effect of the investment in development costs.
The statement of cash flows illustrates that there was an decrease in cash for
the year of #858,000 (2002: increase in cash of #1,146,000). This was
principally due to the outflow of cash from operating activities of #1,235,000
(2002: cash generated by operations of #664,000), #1,844,000 (2002: #2,681,000)
utilised in the developments of products as well as fixed asset investment. To
offset this cash outflow the group have obtained financing through new loans of
#1,650,000 (2002: #1,528,000) as well as from an issue of new shares which
raised #777,000 (2002: #1,857,000). The company has secured long term loan
financing of #2,000,000 which is to be received in October 2003. In addition,
the Board is to present proposals to shareholders in general meeting concerning
the conversion of current liabilities amounting to some #957,000 to non-equity
shares.
The directors have reasonable expectation that the group has adequate resources
to continue in operational existence for the foreseeable future.
Stephen Casey
Financial Director
Group profit and loss account
for the year ended 31 March 2003
Exceptional
operations items
Before goodwill and goodwill
amortisation amortisation 2003
2003
Total Total
2003 2002
#000 #000 #000 #000
Turnover
Turnover: group and share 3,356 - 3,356 5,700
of joint ventures turnover
Less: share of joint - - - (17)
ventures turnover
------ ------ ------ ------
Continuing operations 3,142 - 3,142 4,720
Discontinued operations 214 - 214 963
Group turnover - continuing
operations 3,356 - 3,356 5,683
Cost of sales (543) - (543) (678)
------ ------ ------ ------
Gross profit 2,813 - 2,813 5,005
Selling and distribution costs (1,216) - (1,216) (910)
Administrative expenses (4,031) (1,619) (5,650) (3,632)
------ ------ ------ ------
Operating (loss)/profit
Continuing operations:
Ongoing (1,863) (1,619) (3,482) 226
Discontinued operations (571) - (571) 237
Share of operating loss - - - (1)
in joint ventures
------ ------ ------ ------
Total Operating (loss) / profit:
Group and share of joint venture (2,434) (1,619) (4,053) 462
------- ------- ------- -------
Discontinued operations:
Profit on sale of business 115 -
Interest receivable 71 -
Amounts written off investments (198)
Interest payable and similar charges (321) (166)
------ ------
(Loss)/profit on ordinary activities
before taxation (4,386) 296
Tax on profit on ordinary activities - -
------ ------
(Loss)/profit on ordinary activities
after taxation (4,386) 296
Minority interests - equity 86 (41)
(Loss)/profit for the financial year
attributable to members of the parent
company (4,300) 255
------- -------
Basic (loss)/profit per ordinary share (3.2p) 0.23p
Diluted (loss)/profit per ordinary share (3.2p) 0.23p
Group Statement of Total Recognised Gains and Losses
2003 2002
#000 #000
(Loss)/profit for the financial year excluding share
of profit of joint ventures (4,300) 256
Share of joint ventures loss for the year - (1)
------ ------
(Loss)/profit for the financial year attributable to
members of parent undertaking (4,300) 255
Exchange differences on retranslation of net assets
of subsidiary undertaking (273) 20
------ ------
Total recognised gains and losses during the year (4,573) 275
------- -------
Group Balance Sheet
at 31 March 2003
2003 2003 2002 2002
#000 #000 #000 #000
Fixed assets
Intangible assets 7,868 8,920
Tangible assets 150 151
Investments in joint ventures
Share of gross assets - 24
Share of gross liabilities - - (17) 7
Investments - 198
------ ------
8,018 9,276
------ ------
Current assets
Debtors: amounts falling due
after more than one year 1,657 1,629
Debtors: amounts falling due
within one year 1,790 2,199
Cash at bank and in hand 899 1,996
------ ------
4,346 5,824
Creditors: amounts falling due
within one year (6,137) (5,257)
------ ------
Net current (liabilities)/assets (1,791) 567
------ ------
Total assets less current liabilities 6,227 9,843
------ ------
Creditors: amounts falling due after
more than one year (2,664) (2,388)
------ ------
3,563 7,455
------- -------
Minority interests
Equity 134 38
------ ------
3,697 7,493
------- -------
Capital and reserves
Called-up share capital 1,452 1,320
Share premium account 5,611 4,966
Merger reserve 3,600 3,600
Profit and loss account (6,966) (2,393)
------ ------
Equity shareholders' funds 3,697 7,493
------- -------
J B Ennis Stephen Casey
Director Director
26 September 2003 26 September 2003
Group Statement of Cash Flows
at 31 March 2003
2003 2002
#000 #000
Net cash (outflow)/inflow from operating activities (1,235) 664
------ ------
Returns on investments and servicing of finance
Interest paid (309) (134)
Interest and similar income received 71 -
Interest element of finance lease rental payments (12) (16)
------ ------
(250) (150)
------ ------
Taxation received/(paid) 30 (32)
Capital expenditure and financial investment
Payments to acquire intangible fixed assets (1,800) (2,465)
Payments to acquire tangible fixed assets (44) (20)
Payments to acquire investments - (198)
Receipts from sale of tangible fixed assets - 2
------ ------
(1,844) (2,681)
------ ------
Acquisitions and disposals
Proceeds on sale of business 258 -
------ ------
Net cash outflow before financing (3,041) (2,199)
------ ------
Financing
Proceeds from issue of shares 792 2,500
Share issue costs (15) (643)
Repayment of capital element of finance lease rental
payments
(42) (40)
New long term loan 1,250 1,528
Repayment of long term loan (16) -
New short term loan 300 -
New short term loan from directors 100 -
Repayment of deferred consideration (186) -
------ ------
Net cash inflow from financing 2,183 3,345
------ ------
(Decrease)/Increase in cash (858) 1,146
------ ------
Notes
1. Financial information
The financial information set out in the announcement does not constitute the
Company's statutory accounts for the year ended 31 March 2003 or 2002. The
financial information for the year ended 31 March 2003 and 2002 are derived from
the statutory accounts for those years. The 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 a
statements under section 237 (2) or (3) of the Companies Act 1985.
The preliminary announcement covers the period from 1 April 2002 to 31 March
2003 and was approved by the board on 26 September 2003.
2. Business Sector Analysis
In the opinion of the Directors, the continuing and discontinued Group turnover
is attributable to the provision of software products and related services.
3. Dividends
The Directors do not recommend the payment of a dividend.
4. Distribution
Copies of the Group's Annual Report and Accounts will be sent to all
shareholders on September 30th 2003.
5. Reconciliation of operating profit to net cash inflow from operating
activities
2003 2002
#000 #000
Operating (loss)/profit (4,251) 462
Depreciation 91 98
Amortisation of intangible fixed assets 3,075 1,543
Exchange differences (320) 13
(Decrease)/increase in operating debtors and
prepayments 450 (1,751)
Increase in operating creditors and accruals (280) 299
------ ------
Net cash (outflow)/inflow from operating activities (1,235) 664
------- -------
6. Reconciliation of net cash flow to movement in net debt Group
2003 2002
#000 #000
(Decrease)/increase in cash as per cash flow statement (858) 1,146
Repayment of capital element of finance leases 42 40
New loans entered into (1,650) (1,528)
Repayment of loans 16 -
Repayment of deferred consideration 186 -
------ ------
Change in net debt resulting from cash flows (2,264) (342)
Interest accrued on Irish Business Expansion Scheme (22) (16)
Foreign currency translation differences (103) (6)
------ ------
(2,389) (364)
New finance leases entered into (44) (47)
------ ------
Movement in net debt (2,433) (411)
Net debt brought forward (1,954) (1,543)
------ ------
Net debt carried forward (4,387) (1,954)
------- -------
7. Basis of preparation
The accounts are prepared under the historical cost convention and in accordance
with applicable accounting standards.
The accounts have been prepared on the going concern basis, which assumes that
the Group will continue to be able to meet its liabilities as they fall due for
the foreseeable future.
The accounts reflect that the Group had net current liabilities at 31 March
2003, however the following is included in current liabilities:
* Deferred income of #942,000 that relates to maintenance revenue
that is to be released to the profit and loss over the period to which this
revenue relates: and
* The Irish Business Expansion Scheme ("BES") liability of #957,000.
The Group and the BES have agreed in principle to convert the liabiity into a
new class of shares (cumulative redeemable preference shares) in IMS MAXIMS plc.
The directors will seek shareholder approval for this arrangement at an
extraordinary general meeting in early November 2003. The directors are
confident that they will secure the required approval. Should this approval not
be forthcoming the directors are confident that a suitable alternative
arrangement will be agreed with the BES.
The directors believe they have sufficient funding available to meet their cash
requirement. In arriving at this conclusion they have considered the Group's
ability to achieve the forecasted sales in its cash flow forecast as well as its
ability to control overhead costs and flexibility to initiate costs reductions
if necessary.
While the outcome of these matters cannot be predicted with certainty, the
Directors are confident that they will be able to manage the Group's working
capital such that it will have sufficient free cash for the foreseeable future.
On this basis, the Directors have concluded that it is appropriate to adopt the
going concern basis in preparing the accounts.
8. Earnings Per Share
The basic (loss)/earnings per ordinary share is based on a loss of #4,300,000
(2002: profit #255,000) and on a weighted average number of shares in issue of
135,265,833 (2002: 111,418,721).
The diluted (loss)/earnings per ordinary share is based on a loss of #4,300,000
(2002: profit #255,000) and on a weighted average number of shares in issue of
135,265,833 (2002: 111,418,721).
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR DGGZLVVFGFZM
1 Year Ims Maxims Chart |
1 Month Ims Maxims Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
