Total Systems Share Discussion Threads

[pugugly] 03/9/2002 13:08

CR Hope you do not mind my bringing this thread ttt but the headline could be inadvertently prophetic both ways, the way TTS share price is heading

[gain] 02/9/2002 10:03

Insurers lost some through being exposed to share market. In the end they make it back one way or another mostly by raising premiums and tightening conditions, we all pay

[hosede] 02/9/2002 09:59

But still making new lows almost every day. I guess TIG disaster not helping

[minuteman] 19/8/2002 15:44

Agree PUG, but the software is designed to save companies money long term isn't it??

NAV at 50% of price aint that bad...

Like I said, its one to stick on your watch list, but take PUGS advice seriously

[pugugly] 18/8/2002 17:44

Agreed a nice company with a strong balance sheet but ntav is only some 34p. The ceo has indicated that trading conditions are tough - usually imo shorthand for diabolical - there have been no announcements of new contracts and the Insurance Industry - their software segment - is really under the cosh with the press predicting insurance coys going to go bust. See article in today's telegraph about the massive increase in many insurance premiums.. Look what has happened to the share price of RSA, PRU and L&G for starters. I fear that Total share price could well fall back to much nearer the ntav (possibly below if no new contracts). Many shares are back at their pre 97 values. Total low in 96 was 20p and 27p in 97. But dyor.

[dan_bach] 16/8/2002 18:23

Stupid fall today of 10% on 19k traded and not all those were sales.

[minuteman] 16/8/2002 16:03

This stock should be on everyones watch list as it drips down on nee volume.

Keep watching, I believe there is value to be had here.

[hosede] 10/7/2002 23:35

As expected, good results - zero uplift in the price which now looks like it may test the 79p low again. Of course the CEO is wise to be cautious - sticking one's head above the parapet at the moment simply invites a hail of bullets

[samuel 1] 01/7/2002 23:54

SCRUTABLE - excellent results indeed from a very good company, which fully justify current share price (and as the fox says - if markets were better we could be looking at £1.50) but I had anticipated a better start to this year and an even stronger second half forecast. I too noted the comment re this year's performance - and whilst the CEO is wise to be cautious at this stage(and may be more optimistic at the interims) this may hold the price from
moving too much forward in the short term.

Kind regards

SAMUEL 1

[scrutable] 01/7/2002 07:20

Outstanding performance for 2002 but results only just topped the forecast. More to the point read between the lines of the following excerpt:

"Trading progress in the current year has been satisfactory although in present market conditions it is unlikely that there will be opportunities to improve on the performance for the year being reported on. Given the timescales usually
involved in converting prospects to sales we anticipate that the second half of the current financial year will be stronger than the first half".

From this I read that H1 results (current trading) are already seen to be poor, but the company is so well positioned that it can see H2 making good the shortfall and just returning to FY2002 results overall.

For this reason I decided not to follow my heart and buy this good company share, but to wait until the AGM to see just how bad things have been for the insurance industry at the present.

[welshanalyst] 01/7/2002 06:44

RNS Number:9585X
Total Systems PLC
01 July 2002



FOR RELEASE 7:00AM 1 JULY 2002




TOTAL SYSTEMS plc
Preliminary results for the year ended 31 March 2002
Performance in line with market expectations



Total Systems plc ("Total" or "the Company"), suppliers of established software
products and services to the insurance, warranty and pension fund sectors of the
financial services market and related industries, announces its preliminary
results in respect of the full year ended 31 March 2002.


Commenting on the Company's impressive results, Terry Bourne, the Chairman,
said:

"Performance for the financial year 2002 has been in line with both the
Company's and market expectations. Ultima, our flexible open software product
for the insurance and related industries, continues to attract strong interest.
The Company has maintained its growth path with a strong increase in both
turnover and profits."



Highlights

• Turnover up 40% to £5.38m (2001: £3.85m)

• Profit before tax has seen a significant increase to £1,415,606 (2001:
£717,337)

• Earnings per share increased by 92% to 9.50p (2001: 4.94p)

• Final dividend of 1.55p per share, making a total dividend of 2.45p
per share (2001: 2.20p)

• Zero gearing and increased net assets of 34.08p per share (an increase
of 26%), of which 28.74p is represented by cash

• Continuing investment in Ultima keeping it at the forefront of "wall
to wall" insurance/warranty systems that are so much more efficient and cost
effective than competitors' modular systems

• Use of Ultima as the software behind new generation fully integrated
and fully functional systems opens up new business opportunities in sectors
other than purely insurance, such as utilities

• Renewed interest in Optima2000+, Total's software system for the
Pension Funds industry, on account of its rich functionality and user friendly
nature



Regarding the Company's current trading and outlook, Terry Bourne added:

"While the Board has good reason to be optimistic, business conditions continue
to be challenging with many uncertainties destabilising the markets...Delays are
still being experienced in gaining new contracts but the Board is confident of
success...Given the timescales usually involved in converting prospects to sales
we anticipate that the second half of the current year will be stronger than the
first half. However, your Company is in a sound financial state enabling it to
take advantage of any improvement in the market place when this occurs and to
embark on a sustainable growth path over future years."



E-mail: [e-mail] web site: www.totalsystems.co.uk

Enquiries:

Terry Bourne, Chairman Total Systems plc 020 7294 4888
Granville Harris, Finance Director Total Systems plc 020 7294 4888
Simon Ellis/Peter Binns Binns & Co. PR Ltd 020 7786 9600



An analyst briefing will be given by Terry Bourne and Granville Harris at the
offices of Binns & Co. PR, 16 St. Helen's Place, London EC3 on Monday 1 July
2002 at 11:00am






Notes for City Editors:

Based in the City of London, Total provides cost effective open software systems
for the financial services sector, primarily in the insurance, warranty and
pension fund management sectors, as well as relevant IT Consultancy and General
Support Services. The Company gained a Full Listing on the London Stock Exchange
in 1995.

Significant investment has been made by the Company in developing further both
Ultima (the General Lines Insurance System) and Optima2000+ (the Investment
Management & Accounting System) such that each is regarded as an established
software product. Examples of Total's clients in the insurance/warranty market
are: Axa Insurance Services (Denplan), Bluesure, Dixons, Fortis, UIA and Zurich
Insurance Company (Navigators & General); whilst in the financial services
market they include: Kvaerner Investment Management, Shell Pension Fund and West
Yorkshire Pension Fund.





PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2002


Chairman's Statement


RESULTS

Performance for the financial year 2002 has been in line with both the Company's
and market expectations. Ultima, our flexible, open software product for the
insurance and related industries, continues to attract strong interest. The
Company has maintained its growth path with a strong increase in both turnover
and profits. Turnover for the year was £5,384,299, an increase of 40% over the
previous year (2001: £3,849,292). Profit before tax has seen a significant
increase to £1,415,606 (2001: £717,337) resulting in earnings per share of 9.50p
(2001: 4.94p), an improvement of 92%.



FINANCIAL

Zero gearing and net assets of 34.08p per share (2001: 27.04p), of which 28.74p
per share (2001: 21.04p) is represented by cash, demonstrate our financial
strength. Dividend is covered 3.87 times (2001: 2.24 times) and return on
capital employed is 39.54% (2001: 25.38%).



DIVIDEND

Your Board proposes the payment of a final dividend of 1.55p per share, an
increase of 11% over last year's final dividend of 1.4p per share. This makes
the total dividend for the year 2.45p per share compared to 2.20p per share for
the previous year.

The dividend will be paid on 12 August 2002 to all shareholders on the register
on 12 July 2002.



STRATEGIC DEVELOPMENTS

The Company's main focus continues to be on the UK insurance and warranty
sectors of the financial services and related industries. Further significant
development of Ultima, our product for these industries, has provided growth
opportunities. We aim for Ultima to be the software system of first choice in
the provision of new generation fully integrated and fully functional systems
for the insurance industry, as well as other sectors such as utilities. It is
our intention to keep this product at the forefront of "wall to wall" insurance
/warranty systems that are so much more efficient and cost effective than
competitors' modular systems.

Our rapid product development tool, Product Developer Plus, enables users to
develop new products quickly and cost effectively irrespective of the currency
and language.

Technology for its own sake is of no value but when real business benefits are
delivered more innovative and profitable insurance companies are created. Laying
patchwork solutions or modern front ends onto old legacy systems does nothing to
improve a company's efficiency. Only the implementation of modern systems that
are significantly more flexible and cheaper to run will deliver real business
benefits. There is a growing body of evidence that this is now being recognised
by the senior management of insurance companies. Ultima is such a system
providing sophisticated straight through wall to wall processing, while
supporting all channels of distribution for insurance products.



PRODUCTS

Ultima, available on all leading versions of UNIX, is written in
the most effective Relational Database and 4GL Technology, and incorporates WEB
and EDI capability. This product has a low cost of ownership and negligible
database administration costs due to the incorporation of "near-lights-out"
management tools. External system interfaces enable Ultima to co-habit with a
wide range of other platforms and applications. Ultima provides the ideal
platform to enable companies to meet the prerequisites for survival. Robust
reliable technology and cost effectiveness are two compelling criteria for
choosing database technology. Combine this with a much lower cost of ownership
than any competitor for the underlying embedded database software, then the way
forward is clear.

Optima2000+ is our product for Investment Management, Accounting
and Administration for Pension Funds. It is multi currency and has extensive
performance measurement, compliance and reporting facilities, external links for
information about securities, security prices and exchange rates. Information on
the structure of the standard index and benchmark portfolios is also provided.
The rich functionality of this product makes it one of the most user friendly,
comprehensive and completely integrated products of its type available in the
market today.



MARKET PLACE

The Board believes that the current financial year will continue to see low
levels of spending on information technology in the financial services sector,
with some possibility of improvement in the 2003 calendar year. Any immediate
upturn in demand is difficult to forecast due to continued uncertainties.
Strong long term client relationships have enabled us to secure a larger share
of available budgets while it actively seeks to expand the client base.

Product investment has been, and will continue to be a priority,
to meet the requirements of both existing and new clients and to maintain market
advantage. Total Systems "fast track" development process enables us to rapidly
translate original ideas into deliverable solutions and the modern methodologies
we adopt allow us to implement our fully integrated systems quickly and
efficiently. These are the key differentiators that lead discerning clients to
choose Total Systems.



STAFF

The strength of our business depends on the quality of our people. Our
training programmes are being continually developed and expanded as we strive
for continuous improvement. A career development strategy has been put in place
to ensure that we maximise the talents of our highly skilled personnel. I would
like to thank all our staff for their loyalty and commitment over the past year.
Without their dedication and enthusiasm the growth achieved would not have been
possible.



CURRENT TRADING AND OUTLOOK

While the Board has good reason to be optimistic, business conditions
continue to be challenging with many uncertainties destabilising the markets.
The economic and political climate is still turbulent but your Company is in an
exceptionally strong position to take advantage of any improvement in trading.
Delays are still being experienced in gaining new contracts, but the Board is
confident of success in this area as interest in our Ultima product continues to
grow, both in relation to internet trading and generally.

Trading progress in the current year has been satisfactory although in present
market conditions it is unlikely that there will be opportunities to improve on
the performance for the year being reported on. Given the timescales usually
involved in converting prospects to sales we anticipate that the second half of
the current financial year will be stronger than the first half.

However, your Company is in a sound financial state enabling it to
take advantage of any improvement in the market place when this occurs and to
embark on a sustainable growth path over future years.



Terry Bourne
Chairman
1 July 2002






Consolidated Profit and Loss Account for the year ended 31 March 2002


Note 2002 2001
£ £


TURNOVER 2 5,384,299 3,849,292
======== ========

OPERATING PROFIT 1,302,785 622,871

Interest receivable 112,821 94,466
------------- -------------
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 1,415,606 717,337

TAX CHARGE ON
PROFIT ON ORDINARY
ACTIVITIES (422,068) (201,248)
------------- -------------
PROFIT ON ORDINARY
ACTIVITIES AFTER TAXATION 993,538 516,089

DIVIDENDS (256,895) (229,957)
------------- -------------
AMOUNT TRANSFERRED
TO RESERVES 736,643 286,132
======== ========

Basic earnings per share 5 9.50p 4.94p

Diluted earnings per share 9.44p 4.90p

Dividend per share 6 2.45p 2.20p




Consolidated Balance Sheet
At 31 March 2002

2002 2001
£ £ £ £
Fixed assets
Tangible assets 731,109 749,323

Current assets
Debtors 1,223,890 905,263
Cash at bank and in hand 3,018,627 2,198,746

4,242,517 3,104,009

Creditors: amounts falling due
within one year (1,390,050) (1,026,488)

Net current assets 2,852,467 2,077,521

Total assets less current 3,583,576 2,826,844
liabilities

Provisions for liabilities and
charges

Deferred taxation 3,682 -
-------------- --------------
Net assets 3,579,894 2,826,844
======== ========

Capital and reserves
Called up share capital 525,173 522,628
Share premium account 80,189 66,327
Profit and loss account 2,974,532 2,237,889
-------------- --------------
Equity shareholders' funds 3,579,894 2,826,844
======== ========





Consolidated Cash Flow Statement for the year ended 31 March 2002

2002 2001
Note £ £ £ £

Operating activities
Cash received from customers 6,099,131 3,997,170
Cash payments to suppliers (780,402) (881,067)
Cash payments to employees (2,019,891) (1,376,374)
Cash paid for PAYE and National
Insurance (1,122,714) (794,671)
Cash paid for VAT (865,056) (460,896)
Other business payments (118,439) (145,705)

Net cash inflow from operating (a)
activities 1,192,629 338,457

Return on investments and servicing of
finance

Interest received 112,821 94,466

Net cash inflow from returns on
investments and servicing of finance 112,821 94,466

Taxation

Corporation tax (payment)/refund (199,386) 159,035

Capital expenditure and financial
investment

Purchase of tangible fixed assets (78,811) (82,503)
Sale of tangible fixed assets 16,648 123
--------- ---------
Net cash outflow from capital
expenditure and financial investment (62,163) (82,380)

Equity dividends paid (240,427) (83,621)

Cash inflow before use of liquid
resources and financing 803,474 425,957

Financing
Proceeds from exercise of share options (d) 16,407 200
------------ -----------
Increase in cash in the period (c) 819,881 426,157
======= ======



Notes to Cash Flow Statement

(a) Reconciliation of operating profit to net cash inflow from operating activities


2002 2001
£ £

Operating profit 1,302,785 622,871
Depreciation charges 92,534 106,320
(Profit)/Loss on sale of tangible assets (12,157) 202
Increase in debtors (318,627) (651,373)
Increase in creditors 128,094 260,437
-------------- -----------
1,192,629 338,457
======== ======




(b) Reconciliation of net cash flow to movement in net funds

2002 2001
£ £

Increase in cash in the year and change in net funds 819,881 426,157

Net funds at 1 April 2,198,746 1,772,589
-------------- --------------
Balance at 31 March 3,018,627 2,198,746
======== ========



(c) Analysis of changes in net funds


2002 Change in year 2001 Change in year 2000
£ £ £ £ £

Cash at bank and in hand 3,018,627 819,881 2,198,746 426,157 1,772,589





(d) Analysis of changes in financing during the year

Share capital Share capital
(including premium) (including premium)
2002 2001
£ £

Balance at 1 April 588,955 588,755
Cash inflows from employees exercising share options 16,407 200
------------ ----------
Balance at 31 March 605,362 588,955
======= ======




General Notes:


1. The statutory accounts for the year ended 31 March 2001 have been delivered to the Registrar of Companies and
those for 2002 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 statements under Section 237(2) or
Section 237(3) of the Companies Act 1985.


2. The Group's turnover is derived from the writing and supply of computer software and supply of third party
software both with related hardware in the United Kingdom. All activities derive from continuing operations.


3. The financial information contained in this statement does not constitute the statutory accounts for the
years ended 31 March 2002 and 2001, as defined in Section 240 of the Companies Act 1985, but is derived from
those accounts.


4. The announcement has been prepared on the basis of accounting policies as per the prior year, with the
exception of FRS19, which has been fully adopted this year. This has had no impact on the figures reported in
the prior year.


5. The calculation of basic earnings per share is based on a profit after taxation of £993,538 (2001: £516,089)
and a weighted average of 10,464,209 shares (2001: 10,452,529) in issue during the period.


6. An interim dividend of 0.9p per share was paid to shareholders on 23 January 2002. A final dividend of 1.55p
per share is proposed making the total dividend per share for the year 2.45p.


7. It is intended to post the Annual Statement and Report to shareholders on 4 July 2002. Copies will then be
available from the Registered Office of the Group at 394 City Road, London EC1V 2QA.


8. The Annual General Meeting will be held at 394 City Road, London EC1V 2QA on Monday 29 July 2002 at 10.00
a.m.


ENDS




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


Total Systems(TTS)


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[the fox] 30/6/2002 23:54

If they match the estimates of 10p EPS then it is a current P/E of 9.5! For a software company. Fair value in these tihgt markets would be 110-120. If the markets were better you would expect a rating of at least 15, putting fair value of 150p. All IMHO.

DR

[chopsy] 29/6/2002 20:24

Result Monday. Here's to hoping they are as good as it look like from the recent rise in price.

[frithgains] 25/6/2002 13:33

Interesting to see someone pick up 6000 shares at a premium. Must be hopeing/expecting good results. Agree these are undervalued, expect 1.20-1.30 after results & positive press comment.

[samuel 1] 19/6/2002 14:37

the fox - I am expecting eps of 10p and believe that we will receive confirmation that Terry Bourne's December'01 hint of "a strong start to the next financial year" (ie. Q1 - April/June) has been achieved and that
further progress with existing & new clients is signalling TTS
to already be in another excellent year of growth.

Historic p.e. of 12 for 120p now, would hardly be demanding!
(And given the MMs stock shortage, could prove an easy
first target if the market wakes up to TTS before the
results)


Kind regards

SAMUEL 1

[the fox] 18/6/2002 16:11

I would say 1.40 is a wee bit optimistic but fair value would be around 1.10 - 1.20 given the news that is publicly available. I bought this morning at 83p myself - when the spread narrowed to 81-83 it marked the turn for me. Guess with these things your'e lucky sometimes:)

Good luck to all.

DR

[samuel 1] 18/6/2002 14:45

Poor general market sentiment rather than anything to do with TTS itself has created this buying opportunity. Results in a couple of weeks - should carry TTS back to deserved rating around £1.20- £1.40.

MMs have no stock to sell so the prospects look even better!

Kind regards

SAMUEL 1

[frithgains] 18/6/2002 14:06

Took the plunge this morning @83p, and things looking good already! Hope for a gradual rise up to results, and expect dividend + positive comment to sustain the price.

[frithgains] 13/6/2002 10:01

Still watching and waiting! Quite a few sales yesterday, althouge still think people are panicing due to wider market prblems rather then anythig specific with TTS. Very tempted to go long, but holding off for a little longer. With my luck will probably get tipped in weekend press!

[the fox] 12/6/2002 14:05

You have to remember that they are still online to deliver eps of over 8p this year and 10p the next. That puts TTS on a ridiculously low P/E. The chart at present looks very similar to the one pre Sept 11th. I am looking to buy in again and am hoping the price will dip into the 70's where it would represent an absolute steal, IMHO.

All the best,

DR

[richardjo] 12/6/2002 09:58

I think the interim statement gave strong hints about difficult conditions eg:

"A cautious approach is required when predicting the financial outlook for the year ending 31 March 2003 and beyond."

"....should deliver significant value to shareholders in the medium and long term." (note the absense of the word short!).

[afpk53] 11/6/2002 19:04

I bought some TTS at 95p when I thought they were cheap! It's disheartening to see so many sells one after the other. Please will one of the sellers come on the board to explain why they are deserting...

[gzr] 11/6/2002 15:10

I don't hold but although tempting at these levels, 80p looks like a support level and I'd like to see if this holds. I think PDT is wise to wait for the results.