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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| IT&E | LSE:ITEL | London | Ordinary Share | AU000000ITE8 | ORD NPV (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1.125 | 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 : 4291C
IT&e Limited
01 September 2008
1 September 2008
IT&e Limited
Preliminary Results and Proposed De-listing from AIM
Preliminary Final Results for the year ended 30 June 2008
IT&e Limited (ASX code: ITE, AIM: ITEL, "the Company") today released its preliminary final results for the year ended 30 June 2008.
The Company will release its financial report prior to 30 September 2008.
In releasing the result the Chairman, Ellis Bugg, said that the Board was disappointed to have to again report the Company was in an
operating loss position. He noted however that despite the disappointing financial result, the RAZOR product is now implemented or being
implemented in eight financial institutions and three exchanges around the world which gives the Board confidence in the future prospects
for the Company.
Business highlights of the year
* Two new sales of RAZOR's Clearing House Risk Management System to LCH.Clearnet Group and a new US Clearing Organisation were
secured. These sales, combined with the RAZOR solution provided for the Australian Stock Exchange, place the Company in a good position in
the Central Counter-Party management market.
* Selection by Calyon New York - RAZOR selected to support the requirements of the Bank's regulated AAA derivatives trading
program.
* Sale to a major UK financial institution of a RAZOR solution for management of economic capital.
* Three successful implementation of RAZOR solutions:
* * Royal Bank of Canada (RBC) - global rollout of RAZOR Credit Risk and Economic Capital modules. RBC can now use RAZOR to
obtain a more accurate view of credit exposure and limit utilization across its trading business.
* Man Group plc - implemented RAZOR's Economic Capital module.
* Federal Home Loan Bank of Pittsburgh - implemented RAZOR Credit Risk & Limit Management modules.
Factors impacting the loss
* Delays in sales due to the difficult banking environment
* The deferral of revenue recognition (in accordance with AASB 118) of the sign-on portion (USD$1m) of a Razor product license that
was invoiced and paid prior to 30 June 2008
* Mutually agreed termination of a major joint development project as announced on 30 April 2008
* The resultant decrease in the discounted cash flow value of the NextSet/PTX asset requiring an impairment write-off
Financial Summary
$000 2008 2007
Revenue 13,084 11,791
Operating loss 4,545 5,700
Net loss after impairment 5,936 5,700
write-off (475) 1,791
Net tangible assets
Outlook for the future
Mr Bugg noted that the Company has affirmed that it should maintain its primary focus on the RAZOR product as it offers the greatest
source of upside for stakeholders given its growing global reputation and client base and that should an opportunity emerge to sell
non-strategic assets at an appropriate price this would be embraced.
He also advised that the organisation's cost structure had already been scaled back by approximately $2.5m through reduced headcount and
a tight control over all discretionary expenditure, and that the Board intends to seek shareholder approval at the annual general meeting to
de-list from the AIM market of the London Stock Exchange.
The Board, he confirmed, is committed to continuing to take steps needed to improve the financial performance of the Company and will
further restructure the business as appropriate to better align future revenue and expenses.
Extracts from the financial report for the year ended 30 June 2008 are set out below and a full copy of the financial report is
available on the Company's website www.ite.com.au.
Enquiries/Additional Information:
IT&e Limited
James Maranis, CEO: +61 2 9236 9427
Oliver Carton, Company Secretary: +61 412 149 118
Grant Thornton UK LLP
Fiona Owen: +44 (0)20 7383 5100
Results for announcement to the market
$A'000
Revenue and Net Profit before impairment of Goodwill
Revenue from ordinary activities Up 10% to 13,138
Profit (loss) from ordinary activities Down 20.3% to (4,545)
attributable to members
Revenue and Net Profit
Revenue from ordinary activities Up 10% to 13,138
Profit (loss) from ordinary activities Up 4% to (5,936)
attributable to members
Net profit (loss) for the period attributable Up 4% to (5,936)
to members
Dividends (distributions) Amount per security Franked amount per security
Final dividend Nil Nil
Interim dividend
Previous corresponding period:
Final dividend Nil Nil
Interim dividend
Date for determining entitlements to the N/A
dividend
Brief explanation of Revenue and Net Profit
Revenue showed some improvement from F07 due to four new sales of RAZOR and three successful implementations but was lower than expected
primarily as a consequence of:
* Delays in sales due to the difficult banking environment
* Deferral of recognition of the sign-on portion (US$1m) of a RAZOR product licence that was invoiced and paid prior to 30 June 2008
but will be recognised over several years in accordance with AASB 118 Revenue
* The mutually agreed termination of a major joint NextSet/PTX development project as announced on 30 April 2008
* Lower services revenue reflecting a growing focus on the RAZOR product and related implementations.
Operating loss before Goodwill Impairment was 23% lower than F07 primarily as a consequence of increased Razor product revenue.
The significant loss was primarily due to revenues being lower than expected as explained above.
Operating result including goodwill impairment was a loss higher than F07 as a consequence of the issues explained above and a
NextSet/PTX goodwill impairment write-off of $1,391k following the termination of the NextSet/PTX major joint development project noted
above.
Signed by the Chairman
**************
Ellis Bugg 31 August 2008
Consolidated Income Statement
For the Financial Year ended 30 June 2008
Note CONSOLIDATED
2008 2007
$'000 $'000
License fees and services 13,084 11,791
Interest revenue 54 110
Revenue 5 13,138 11,901
Cost of sales (11,103) (10,527)
Gross profit 2,035 1,374
Other income 5 131 151
Operating expenditure
Marketing expenses (63) (52)
Occupancy expenses (1,017) (790)
Employee benefits expenses (1,469) (2,093)
Administrative expenses (3,457) (3,347)
Goodwill impairment 8 (1,391) -
Other expenses (613) (576)
Finance costs (12) (53)
(Loss) before tax and share-based payments (5,856) (5,386)
Share-based payment expense (53) (298)
(Loss) before income tax (5,909) (5,684)
Income tax expense (27) (16)
Net (loss) for the period (5,936) (5,700)
Basic and diluted earnings per share 6 (2.41) (2.74)
(cents per share)
Consolidated Balance Sheet
As at 30 June 2008
Note CONSOLIDATED
2008 2007
$'000 $'000
ASSETS
Current Assets
Cash and cash equivalents 1,604 2,429
Trade and other receivables 1,905 2,248
Prepayments 120 102
Financial assets 341 62
Accrued revenue 962 339
Total Current Assets 4,932 5,180
Non-current Assets
Financial assets 185 425
Property, plant and equipment 566 286
Goodwill 8 3,290 4,681
Investments in controlled entities - -
Total Non-current Assets 4,041 5,392
TOTAL ASSETS 8,973 10,572
LIABILITIES
Current Liabilities
Trade and other payables 2,141 2,082
Current tax liabilities - 18
Provisions 847 761
Unearned revenue 2,410 968
Total Current Liabilities 5,398 3,829
Non-current Liabilities
Deferred lease incentive 262 -
Convertible Loan 164 -
Provisions 333 271
Total Non-current Liabilities 759 271
TOTAL LIABILITIES 6,157 4,100
NET ASSETS 2,816 6,472
EQUITY
Equity attributable to equity holders of the parent
Contributed equity 9 52,212 49,273
(Accumulated losses) (52,714) (46,778)
Reserves 3,318 3,977
TOTAL EQUITY 2,816 6,472
Consolidated Statement of Changes in Equity
For the Financial Year ended 30 June 2008
CONSOLIDATED
Issued capital Accumulated losses Other reserves Total
$ '000 $ '000 $ '000 $ '000
At 1 July 2007 49,273 (46,778) 3,977 6,472
Net (loss) for the period - (5,936) - (5,936)
Currency translation - - 87 87
differences
Total recognised income and - (5,936) 87 (5,849)
expense for the period
Issue of share capital (note 2,140 - - 2,140
21)
Share earn-out (note 21) 12 - (12) -
Share-based payment (note 21) 5 - 48 53
Share payment Halcyon (note 782 - (782) -
21)
Capital raising expenses (note - - - -
21)
At 30 June 2008 52,212 (52,714) 3,318 2,816
CONSOLIDATED
Issued capital Accumulated losses Other reserves Total
$ '000 $ '000 $ '000 $ '000
At 1 July 2006 46,144 (41,078) 3,017 8,083
Net (loss) for the period - (5,700) - (5,700)
Currency translation - - 240 240
differences
Total recognised income and - (5,700) 240 (5,460)
expense for the period
Issue of share capital (note 3,900 - - 3,900
21)
Share earn-out (note 21) 406 - (418) (12)
Share-based payment (note 21) 9 - 289 298
Share payment Halcyon (note - - 824 824
21)
Capital raising expenses (note (1,186) - 25 (1,161)
21)
At 30 June 2007 49,273 (46,778) 3,977 6,472
Consolidated Cash Flow Statement
For the Financial Year ended 30 June 2008
Note CONSOLIDATED
2008 2007
$'000 $'000
Cash flows from Operating Activities
Receipts from customers (inclusive of GST) 13,264 13,918
Payments to suppliers and employees (inclusive of (15,839) (17,290)
GST)
Interest and other items of a similar nature 54 110
received
ATO Tax Refund 41 -
Government grant received 90 151
Income taxes paid (27) (16)
Net cash flows used in operating activities 7 (2,417) (3,127)
Cash flows from Investing Activities
Payment of cash element for acquisitions - (1,224)
Payments for property, plant and equipment (286) (149)
Net cash flows used in investing activities (286) (1,373)
Cash flows from Financing Activities
Proceeds from issue of shares and options 2,140 3,900
Capital raising costs - (1,186)
Net cash flows from/(used in) financing activities 2,140 2,714
Net increase/(decrease) in cash and cash (563) (1,786)
equivalents
Net foreign exchange differences (262) (34)
Cash and cash equivalents at beginning of the 2,429 4,249
period
Cash and cash equivalents at end of the period 1,604 2,429
This information is provided by RNS
The company news service from the London Stock Exchange
END
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