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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Secure Income Reit Plc | LSE:SIR | London | Ordinary Share | GB00BLMQ9L68 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 461.00 | 461.00 | 461.50 | 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:0290L
Sirius Financial Solutions PLC
14 April 2005
14 April 2005
SIRIUS FINANCIAL SOLUTIONS PLC
2004 PRELIMINARY RESULTS
PERFORMANCE IN KEY AREAS EXCEED EXPECTATIONS
Sirius Financial Solutions, the specialist supplier of software and services to
the insurance and financial services industry worldwide, today announces its
preliminary results for the year ended 31 December 2004.
* Group turnover grew 5.7% to #21.7m (2003: #20.5m)
* In line with the Group's strategy to improve predictability of revenue,
recurring revenues remained strong, growing 9.8% to #7.6m (2003: #6.9m)
which represents 35.0% of Group turnover
* Operating profit before goodwill amortisation of #1.4m (2003: #0.4m)
exceeded Board expectations - after charging goodwill, operating profit was
#0.5m (2003: operating loss of #0.5m)
* Basic earnings per share of 1.4p (2003: loss per share of 3.9p), and
adjusted earnings per share(1) of 6.5p (2003: 1.2p)
* Continued strong operating cash inflows of #2.6m (2003: #0.7m)
* Net cash of #0.5m (2003: net debt of #1.1m) at the year end, after
acquisition spend
* Acquisition of a 75.8% shareholding in Sirius Datasure, the leading
supplier in New Zealand of broking software systems with a market share in
excess of 60.0%, supports an increasing commitment to the region
* Proposed final dividend of 1.0p per share (2003: 0.5p) making a total
of 1.5p per share for the year
(1) Adjusted earnings per share is based on the profit for the year before
deduction of goodwill amortisation
Stephen Verrall, Chairman and Group Chief Executive of Sirius Financial
Solutions, said:
"Our performance in 2004 exceeded expectations and represents a marked
improvement over the previous year in all key areas. We now have a strong
foundation upon which we can build and grow the business going forward.
"The current financial year has started well and the Board looks forward to
continued good progress."
Enquiries:
Sirius Financial Solutions (0121 779 8400) Citigate Dewe Rogerson (020 7638 9571)
Stephen Verrall Martin Jackson
Richard Bowser George Cazenove
SIRIUS FINANCIAL SOLUTIONS PLC
2004 PRELIMINARY RESULTS
CHAIRMAN'S STATEMENT
REVIEW OF RESULTS
I am delighted to report an excellent year for Sirius with improvements in all
key areas of financial performance. Turnover grew by 5.7% to #21.7m (2003:
#20.5m), and operating profit before goodwill amortisation was ahead of the
Board's expectations at #1.4m (2003: #0.4m). After charging goodwill
amortisation, interest and tax the profit for the year was #0.2m (2003: loss of
#0.7m). In 2004 the Group continued to generate strong operating cash inflows,
which for the year amounted to #2.6m (2003: #0.7m).
The 2004 results are all the more remarkable as during the year Sirius adopted
its new business model and incurred the cost of its new head office. The
improved working environment arising from the move to new offices was one of the
key factors in the considerable improvements achieved in the contribution from
professional services.
The Group's turnover growth for the year was supported in part by a 9.8%
increase in recurring revenues to #7.6m (2003: #6.9m). Recurring revenues
continue to increase as a proportion of turnover, accounting for 35.0% of total
Group turnover in 2004 (2003: 33.8%). This improving trend is a direct result
of larger Solutions projects moving into their care and maintenance phase, and a
planned focus on moving the business model to annual charges and away from large
upfront licences.
A static staff cost base set against the higher turnover level for the year
resulted in improved margins from service revenues. Whilst maintaining the
commitment to ongoing investment in our applications, the amount of unfunded
research and development activity undertaken by Sirius was reduced by comparison
to 2003. This was made possible by a number of measures including effective
project management which removed the need to engage sub-contract labour, and the
establishment of our own off-shore development capability in India.
Last year I reported that 2003 had been a challenging year with a record number
of large projects to deliver. It is pleasing to report that these challenges
were successfully overcome and that in 2004 the business maintained a strong
focus and control over our operations that is apparent in the Group's improved
financial performance for the year. I can report that good progress was made in
2004 against all developments and that Sirius continues to make successful
project deliveries.
Following the successful go-live of our first Managed Service Provision ("MSP")
customer, Country Mutual Insurance Brokers, we undertook a re-launch of our
Sirius for Broking product in December 2004 under the Sirius 21 banner. Sirius
21 adopts the MSP deployment method. It is our aim to sell Sirius 21 to both
new customers and convert existing users to this model. Early response has been
very encouraging, not only in terms of take up and acceptance, but also in the
benefits to be gained from improved and reduced costs of maintenance.
The strong operating cash inflows generated by the Group helped to remove all
gearing as at 31 December 2004 (2003: gearing of 20.9%) and contributed towards
the year end net cash position of #0.5m (2003: net debt of #1.1m). This net
cash position is after applying the proceeds from the disposal of the Group's
vacant freehold property in Sutton Coldfield, and payment of cash consideration
in December 2004 to the vendors of Datasure Management Systems Limited, which
was subsequently renamed Sirius Datasure Limited ("Sirius Datasure").
Following an excellent year of cash inflows, the Board propose a final dividend
for 2004 of 1.0p per share (2003: 0.5p) to shareholders on the register on 22
April 2005 and payable on 25 May 2005.
NEW BUSINESS MODEL
From the outset of 2004 we have operated under a new business model. In common
with other software companies, Sirius had for many years relied on an element of
licence sales in order to achieve its revenue and profit targets. We concluded
that the Group had grown too dependent upon large initial licence fees and that
this combined with prolonged sales cycles and contract negotiations had led to a
high degree of unpredictability and volatility in our revenues.
To remove most of the unpredictability of licence revenues, the Board decided to
change the business model, and in 2004 we began the transition from licencing
our software on a perpetual basis to licencing for a finite term - term
licencing. This provides greater opportunity for future licence sales from
existing customers, thus reducing the reliance on new customer wins. In this
regard, 2004 was a year of transition with good progress made on major
contracts. This model will be more extensively applied going forward and it
should be remembered that in the medium term revenue growth and therefore
profitability will be lower than under our previous model. After this transition
period the Group will benefit from the comfort of more predictable and
sustainable revenues and profits.
AUSTRALIA AND NEW ZEALAND
The acquisition of a 75.8% shareholding in Sirius Datasure supports our
increasing commitment to the New Zealand and Australia region. Sirius Datasure
is the leading supplier in New Zealand of broking software systems with a market
share in excess of 60.0%. It is our intention to launch the Sirius for Broking
product in New Zealand by quarter four of 2005. This will provide an upgrade
path for Sirius Datasure's existing customers and expand the company's market
presence.
During the year our customer IAG undertook a strategic review of their IT
requirements. They concluded not to proceed with the deployment of Sirius for
Insurance, deciding instead that the system in use at their Australian parent
should be extended into IAG's operations in New Zealand. Whilst this is
disappointing, it has not altered our original assessment that the region has
excellent potential for both our broking and insurer products. In support of
this assessment, we are pleased to have signed contracts with two new insurer
customers in Australia during the first quarter of 2005. These two customers
should provide the necessary credentials and comfort for the larger prospects
that we have already engaged with.
OFFICES
Head Office
A key event for the Group was the move, in January 2004, from our offices of 15
years in Sutton Coldfield to a new, larger head office within the Birmingham
Business Park. We are delighted that the move went so smoothly and that we
continue to benefit from the much improved location and facilities offered by
our new accommodation.
India
Following the success of our pilot office in Delhi, established during 2004 with
12 staff, we are now in the process of expanding this operation. The quality
and cost effectiveness of software development undertaken by our Indian
workforce supported the move in April 2005 to larger premises, again in Delhi,
which will facilitate expansion up to a total of 30 employees.
New Zealand
Following the acquisition of Sirius Datasure in December 2004, we have closed
the Group's small office in Wellington and are in the process of relocating our
staff to Sirius Datasure's premises in Auckland.
PRINCE'S TRUST
I am delighted to announce that Sirius has given it's support to the Prince's
Trust - the UK's leading charity which helps improve the lives of disadvantaged
young people - by becoming a Patron. Our involvement with the Trust has also
led to us spearheading the Insurance Leadership Group which has positioned
Sirius at the forefront of this prominent networking forum to increase the
insurance industry's profile within business and government.
EMPLOYEES
The Board would like to record its appreciation of our employees who continue to
demonstrate considerable commitment and skill in pursuing the Group's vision for
market leadership. We continue to invest in the professional development of our
employees, which includes a management training programme in association with
the Open University Business School.
SUMMARY
At the beginning of 2004, we set ourselves a number of specific goals and we are
pleased to be able to report positive progress against all of them. All of the
main initiatives planned and introduced for 2004 have been successful in both
implementation and impact. They include:
* Significant improvement to recoverable man-time revenues.
* Launch of the Sirius for Broking product as an MSP deployment under
the Sirius 21 banner.
* Establishment of a presence in Australia, with the Group's first two
customer contracts secured in the first quarter of 2005.
* Establishment of a greater presence in New Zealand through the
acquisition of the largest insurance broking software house.
* Sirius for Insurance increasing its market acceptance with 30
customers.
* Securing the largest order to date for our Swift application, from
Zurich Financial Services Group.
* Investment in off-shoring with the set up and recruitment of our
office in Delhi, which is now set to expand.
We forecast that the move to term licencing would, inevitably, result in reduced
growth until such time as the Group builds a larger base of recurring revenues.
The encouraging performance of 2004 supports the Board's belief that this is a
course of action that the business was right to take and that substantial
benefits will follow in the medium term and beyond.
The financial and operational performance for the year represents a marked
improvement over 2003, and provides a strong foundation upon which to build
further returns in 2005.
OUTLOOK FOR 2005
In 2005, the Board expects the business to build on the established success of
Sirius for Insurance with further growth in sales from this product. In the
Intermediary Systems business unit, managed service revenue growth will be
driven from the successful launch of Sirius 21 which is expected to be
significant in 2005.
The drive to improve the visibility of future revenues by selling to new
customers under term licence arrangements will continue. Our base of recurring
support and maintenance revenues is expected to increase further as secured
customers go-live with our applications, and as we continue to attract new
customers to our market leading products.
Management continue to focus on improving the contribution made by our
professional service and development functions, supported in part by our
improved working environment in the UK and the expansion of our development
centre in India.
The current financial year has started well, and is in line with the Board's
expectations. The improved structure and focus of our business and the progress
made in 2004 presents a number of exciting opportunities which we confidently
expect to build upon.
Stephen J Verrall
Chairman and Group Chief Executive
14 April 2005
SIRIUS FINANCIAL SOLUTIONS PLC
2004 PRELIMINARY RESULTS
BUSINESS REVIEW
From the outset of 2004 the Group has operated under the simplified structure of
three business units: Intermediary Systems, Insurance Systems and Sirius Web
Services.
INTERMEDIARY SYSTEMS
Intermediary Systems is the largest of the Group's business units, and is
accountable for all revenue derived from the sale and support of the Sirius for
Broking application to insurance intermediaries of all sizes. It is also
responsible for the insurance distribution operation, which develops and
supports product distribution between insurers and broking customers. Turnover
for 2004 for this unit was #11.8m (2003: #11.2m). Some of this turnover growth
was achieved from the renewal of customers' Sirius for Broking contracts which
were for an initial four year licence term.
Sirius for Broking
Sirius for Broking continues to win customers from all of its competitors. The
Sirius for Broking application has now been deployed to over 5,000 users. From
2005 the application is being deployed via the internet and within a managed
service framework - Sirius 21. The launch of Sirius 21 allows us to build on
our success to date and maintain a competitive advantage in the marketplace.
Sirius 21 has been well received by both customers and the market alike. It is
absolutely right for the market at a time when broadband internet access becomes
both widely and cheaply available. Sirius 21 is the preferred deployment method
for Sirius for Broking and in 2005 there will be clear focus on migrating
existing customers across to Sirius 21 and on selling it to new customers.
As predicted, FSA regulation as well as being a distraction continues to be a
key factor in prompting the UK's insurance brokers to consolidate into groups
and networks, and to consider the ability of their IT systems to help them cope
with the increased regulatory environment. Sirius continues to benefit from
this market trend, a significant new business win in the first half of 2004
being that of Perkins Slade, Birmingham's largest provincial broker. It was
also pleasing to report that during the period, Country Mutual Insurance Brokers
(part of NFU) successfully completed the roll out of Sirius for Broking across
its 22 broker sites which account for greater than 400 users.
Intermediary Systems has performed in line with plans for 2004 and is well
positioned to make further advances in 2005.
INSURANCE SYSTEMSs
Insurance Systems is responsible for the sale, deployment and support of the
Sirius for Insurance application for insurers, underwriters and underwriting
agencies; and the Swift application for financial services organisations.
Product deployments from this business unit extend across territories including
the UK, North America, Australasia, the Caribbean, Africa and the Far East.
During the year the business unit generated #7.0m of revenues (2003: #6.2m).
Insurance Systems benefited during the year from the appointment of a Managing
Director, Phil Race, who brings experience of business development in the
international financial sector, with a particular emphasis on the insurance
marketplace. In his recent role as Sales Director within LogicaCMG's financial
services business, Race secured and directed the delivery of high value projects
to many blue chip companies.
Sirius for Insurance
During 2004, Sirius for Insurance consolidated its dominant position in the
Caribbean region with a number of clients transitioning to live operation of the
application including GA Jamaica and Harmony General. Sirius has also continued
to secure new clients in the region, the most notable being the second largest
insurer in Jamaica, NEM.
The signing of Europa General develops a fledgling position in the mature UK
marketplace whilst the recent 2005 successes in Australia, with Calliden gaining
their insurance licence and going live simultaneously, alongside Australian
International Insurance signing up for Sirius for Insurance proves the logic of
the international strategy.
The Sirius for Insurance product has moved forward significantly with two
extensive enhancements being multi-currency and the incorporation of
ClaimsBuilder. 2005 will see a focus on on-line functionality with enhanced
servicing of insurance clients and business partners via the web.
Swift
The Swift application has been integral in arguably the largest programme for
multi-tie in the UK - Zurich's Openwork initiative. This follows success with
phase one of the St. James's Place programme and adds to an impressive Swift
customer portfolio which includes Royal Bank of Scotland and Co-operative Bank
Financial Advisers.
2005 has seen Skipton go-live with Swift and activity levels remain high due to
the dynamic UK legislative regime. Sirius has a market leading position in the
large intermediary marketplace and has proven its ability to support the
complexities of the Self Invested Pensions (SIPP) marketplace. Pensions 'A' Day
and multi-tie will continue to fuel demand.
Swift will also be deployed within a managed service framework during 2005.
SIRIUS WEB SERVICES
Sirius Web Services is an interactive communications service provider, offering
creative web design, development and deployment in the business-to-business and
consumer environments. This business unit provides internet and intranet
design and build services, including the provision of full cycle e-commerce, for
many of the Group's insurance customers, as well as for a range of significant
companies in other industries. Sirius Web Services was established in 2004 to
build on and bring focus to an already strong service offering, to capitalise on
the Sirius brand and to exploit the rapidly emerging demand for insurance
businesses to trade and service their offerings over the web.
This business unit adopts its recognised MEDIAmaker brand for more traditional
communication services, including video programme making and the creation, and
delivery of significant conferences and events.
During 2004 the business unit generated turnover of #2.9m (2003 #3.1m). Notable
successes in the year include a three year preferred supplier deal with the
Learning Skills Council, the building of an e-learning platform 'Click Science'
which has the potential to reach over 150,000 UK school children, and delivery
of the largest ever conference undertaken by Boots at the ICC and NEC in
Birmingham.
Stephen J Verrall
Chairman and Group Chief Executive
14 April 2005
SIRIUS FINANCIAL SOLUTIONS PLC
2004 PRELIMINARY RESULTS
GROUP PROFIT AND LOSS ACCOUNT
for the year ended 31 December 2004
2004 2003
Notes # #
Turnover 2
Existing operations 21,628,551 20,523,966
Acquisitions 75,501 -
Continuing operations 21,704,052 20,523,966
Cost of sales (12,453,146) (12,895,684)
Gross profit 9,250,906 7,628,282
Distribution costs (2,479,118) (2,418,984)
Administrative expenses:
- goodwill amortisation (876,310) (870,071)
- depreciation (431,938) (438,081)
- other (4,971,359) (4,414,401)
- total administrative expenses (6,279,607) (5,722,553)
Operating profit before goodwill amortisation 1,368,491 356,816
Goodwill amortisation (876,310) (870,071)
Operating profit/ (loss)
Existing operations 478,861 (513,255)
Acquisitions 13,320 -
Continuing operations 492,181 (513,255)
Interest receivable 70,260 41,269
Interest payable and similar charges (176,997) (109,174)
Profit/ (Loss) on ordinary activities before taxation 385,444 (581,160)
Tax on profit/ (loss) on ordinary activities (145,331) (89,427)
Profit/ (Loss) on ordinary activities after taxation 240,113 (670,587)
Minority interests (3,358) -
Profit/ (Loss) for the financial year 236,755 (670,587)
Equity dividends on ordinary shares 3 (258,274) (255,049)
Retained loss for the financial year (21,519) (925,636)
Earnings/ (Loss) per share: 4
- basic 1.4p (3.9)p
- diluted 1.4p (3.9)p
- adjusted 6.5p 1.2p
EBITDA 1,800,429 794,897
GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the year ended 31 December 2004
2004 2003
# #
Profit/ (Loss) for the financial year 236,755 (670,587)
Exchange difference on retranslation of net assets of subsidiary
undertaking (28,272) (23,212)
Total recognised gains and losses relating to the year 208,483 (693,799)
GROUP RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
for the year ended 31 December 2004
2004 2003
# #
Total recognised gains and losses 208,483 (693,799)
Dividends (258,274) (255,049)
Shares issued net of expenses and amounts accrued 229,704 3,554
Total movements during the year 179,913 (945,294)
Shareholders' funds at 1 January 11,070,578 12,015,872
Shareholders' funds at 31 December 11,250,491 11,070,578
GROUP BALANCE SHEET
at 31 December 2004
2004 2003
# #
Fixed assets
Intangible assets 5,686,700 5,596,902
Tangible assets 1,599,121 1,914,106
7,285,821 7,511,008
Current assets
Stocks 4,351 8,850
Debtors 7,686,485 8,351,152
Cash at bank and in hand 1,063,918 54,290
8,754,754 8,414,292
Creditors: amounts falling due within one year (3,415,813) (3,447,883)
Net current assets 5,338,941 4,966,409
Total assets less current liabilities 12,624,762 12,477,417
Creditors: amounts falling due after more than one year (329,128) (877,033)
Accruals and deferred income (1,074,850) (529,806)
Net assets 11,220,784 11,070,578
Capital and reserves
Called up share capital 175,334 172,157
Share premium account 4,392,760 4,166,233
Merger reserve 5,891,572 5,891,572
Profit and loss account 790,825 840,616
Shareholders' funds 11,250,491 11,070,578
Minority interests (29,707) -
Total capital employed 11,220,784 11,070,578
Shareholders' funds may be analysed as:
Equity 11,248,376 11,068,463
Non-equity 2,115 2,115
11,250,491 11,070,578
GROUP STATEMENT OF CASH FLOWS
for the year ended 31 December 2004
2004 2003
Notes # #
Net cash inflow from operating activities 5(i) 2,613,448 703,571
Returns on investments and servicing of finance
Interest received 70,260 41,269
Interest paid (151,333) (103,836)
Interest element of finance lease rental payments (18,869) (2,628)
(99,942) (65,195)
Taxation
Corporation tax paid (247,997) (757,713)
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (780,206) (224,462)
Receipts from sales of tangible fixed assets 713,314 14,800
(66,892) (209,662)
Acquisitions
Purchase of subsidiary undertaking (766,922) -
Cash acquired with subsidiary undertaking 219,731 -
(547,191) -
Equity dividends paid (170,076) (459,009)
Net cash inflow/ (outflow) before financing 1,481,350 (788,008)
Financing
Issue of ordinary share capital 134,084 3,554
Repayment of long-term loans (452,500) (205,000)
Repayment of capital element of finance leases and hire
purchase contracts (153,306) -
(471,722) (201,446)
Increase/ (Decrease) in cash 5(ii) 1,009,628 (989,454)
NOTES TO THE ACCOUNTS
at 31 December 2004
1. BASIS OF PREPARATION
The financial information set out above does not constitute the full statutory
accounts of Sirius Financial Solutions Plc for the years ended 31 December 2004
and 31 December 2003 respectively, but is derived from those accounts.
Statutory accounts for 2003 have been delivered to the Registrar of Companies,
and those for 2004 will be delivered following Sirius Financial Solution's
Annual General Meeting on 23 May 2005. The auditors have reported on those
accounts; their reports were unqualified and did not contain statements under
section 237(2) or (3) of the Companies Act 1985.
2. TURNOVER AND SEGMENTAL ANALYSIS
The Group operates in one principal area of activity, that of the development
and supply of insurance specific application software both as a package and as a
solution.
In 2004 and 2003, turnover originated principally from two geographical markets:
Europe and the United Kingdom; North America and the Caribbean. On 13
December 2004 a 75.8% shareholding was acquired in Sirius Datasure Limited, a
company domiciled in New Zealand. The turnover originating from Sirius Datasure
Limited in the post acquisition period is not considered significant enough to
require separate disclosure of the New Zealand territory in the analysis below,
and is therefore included in the analysis for Rest of World.
Europe and United North America and Rest of World Total
Kingdom Caribbean
2004 2003 2004 2003 2004 2003 2004 2003
# # # # # # # #
Group turnover
Turnover by
destination:
Sales to third
parties 18,629,743 18,461,713 1,804,841 1,246,396 1,269,468 815,857 21,704,052 20,523,966
Turnover by origin:
Sales to third
parties 19,823,710 19,601,281 1,804,841 922,685 75,501 - 21,704,052 20,523,966
Profit
Segment operating
profit/ (loss)
before
goodwill 1,057,967 689,224 382,530 (131,493) 46,391 - 1,486,888 557,731
amortisation
Goodwill (732,416) (732,416) (135,843) (137,655) (8,051) - (876,310) (870,071)
amortisation
Interest receivable 68,945 40,184 761 1,085 554 - 70,260 41,269
Interest payable
and similar charges (176,434) (106,564) (532) (2,610) (31) - (176,997) (109,174)
Segment profit/
(loss) before
central group costs
and taxation 218,062 (109,572) 246,916 (270,673) 38,863 - 503,841 (380,245)
Central group costs (118,397) (200,915)
Profit/ (Loss) on ordinary activities
before taxation 385,444 (581,160)
Net assets/
(liabilities)
Net assets/
(liabilities) by
segment 11,990,743 12,136,787 (703,997) (1,066,209) (65,962) - 11,220,784 11,070,578
3. DIVIDENDS AND OTHER APPROPRIATIONS
2004 2003
# #
Equity dividends on ordinary shares:
Final proposed 1.0p per share (2003: 0.5p) 173,219 85,021
Interim paid 0.5p per share (2003: 1.0p) 85,055 170,028
258,274 255,049
4. EARNINGS/ (loss) PER ORDINARY SHARE
The calculation of basic earnings per ordinary share is based on profits of
#236,755 (2003: losses of #670,587) and on 17,027,606 (2003: 17,002,039)
ordinary shares, being the weighted average number of ordinary shares in issue
during the year.
The 2004 diluted earnings per share is based on the profit for the year of
#236,755 and on 17,096,084 ordinary shares, calculated as follows:
2004
No.
Basic weighted average number of shares 17,027,606
Dilutive potential ordinary shares:
Executive share options and employee SAYE scheme 68,478
17,096,084
For 2003, the loss attributable to ordinary shareholders and weighted average
number of ordinary shares for the purpose of calculating the diluted loss per
share are identical to those used for the basic earnings per share. This is
because the exercise of share options would have the effect of reducing the loss
per ordinary share and is therefore not dilutive under the terms of FRS14.
Adjusted earnings per share
The adjusted earnings per share is calculated from the profit for the financial
year before goodwill amortisation of #1,113,065 (2003: #199,484) and on
17,027,606 (2003: 17,002,039) ordinary shares of 1p each being the weighted
average number in issue during the year.
The directors have chosen to present this adjusted earnings per share as they
believe that it provides a more meaningful indicator of the performance of the
Group.
5. NOTES TO THE STATEMENT OF CASH FLOWS
(i) Reconciliation of operating profit/ (loss) to net cash inflow from
operating activities
2004 2003
# #
Operating profit/ (loss) 492,181 (513,255)
Depreciation of tangible fixed assets 431,938 438,081
Amortisation of goodwill 876,310 870,071
(Profit)/ Loss on sale of fixed assets (6,501) 12,526
Decrease in deferred payment debtor 36,685 212,243
Decrease in other debtors 709,196 775,224
Decrease in stocks 5,820 7,202
Increase/ (Decrease) in creditors 67,819 (1,098,521)
Net cash inflow from operating activities 2,613,448 703,571
(ii) Analysis of net funds/ (debt)
At At
1 January Cash 31 December
2004 flow Other 2004
# # # #
Cash at bank and in hand 54,290 1,009,628 - 1,063,918
54,290 1,009,628 - 1,063,918
Bank loans (707,400) 452,500 (6,795) (261,695)
Finance leases (490,580) 153,306 - (337,274)
(1,143,690) 1,615,434 (6,795) 464,949
(iii) Reconciliation of net cash flow to movement in net funds/ (debt)
2004 2003
# #
Increase /(Decrease) in cash in the year 1,009,628 (989,454)
Cash outflow from movement in debt and lease financing 605,806 205,000
Change in net debt arising from cash flows 1,615,434 (784,454)
New finance leases - (490,580)
Amortisation of loan issue costs (6,795) (2,710)
Movement in net debt in the year 1,608,639 (1,277,744)
Net (debt) /funds at 1 January (1,143,690) 134,054
Net funds /(debt) at 31 December 464,949 (1,143,690)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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1 Year Secure Income Reit Chart |
1 Month Secure Income Reit Chart |
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