We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Uls Technology Plc | LSE:ULS | London | Ordinary Share | GB00BNG8T458 | ORD 0.4P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 73.00 | 72.40 | 73.80 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMULS
RNS Number : 1092J
ULS Technology PLC
03 December 2018
ULS Technology plc
(The "Group" or the "Company")
Half Yearly Report
"Gains in market share drive increases in revenue, profits and dividends"
ULS Technology plc (AIM: ULS), the provider of online B2B platforms for the UK conveyancing and financial intermediary markets, announces its half yearly results for the six months to 30 September 2018.
The Group continued to increase its market share and grow revenue and profits during the period despite housing market transactions being lower year-on-year.
Financial Highlights
-- Revenue increased by 3% to GBP15.79m (H1 2017: GBP15.28m) -- Underlying Profit before Tax(1) increased by 6% to GBP2.89m (H1 2017: GBP2.74m) -- Adjusted basic EPS(1) increased by 7% to 3.73p (H1 2017: 3.49p) -- Net debt and equivalents of GBP3.4m as at 30 September 2018 (FY 2017: GBP2.3m)
o Payment of contingent consideration of GBP2.9m in the period
-- Interim dividend of 1.20p per share, an increase of 4% on the same period last year
(1) . Before acquisition intangibles, amortisation and exceptional costs. Exceptional costs of GBP0.32m relate to the NPV movement in the estimated earn-out payable for the acquisition of CAL.
Operating Highlights
-- Further growth in market share particularly, within the re-mortgage transaction segment -- Continued expansion of the sales team, focusing on intermediary market -- Key elements of "DigitalMove" project fully developed and ready for launch in January 2019
Post Period Events
-- New conveyancing Services agreed with Hunters Estate Agents and Which? Mortgage Advisers
o Further strengthening customer base and routes to market
-- Strengthening of the Board with Martin Rowland joining as a NED
o Adds significant expertise and knowledge base
Steve Goodall, Chief Executive of ULS Technology plc, commented:
"We are pleased with our performance in the first half of the year especially given the wider economic environment. We once again outperformed the market in both transactional and re-mortgage volumes.
"We also increased our sales resource during the period and have concentrated both on increasing the number of advisers who use our systems and how often they use them. We will continue to focus in this area over the coming months and expect these efforts to continue to deliver new contract wins.
"We have a number of new products in development and have many active conversations with various parties throughout the industry, where there is widespread interest in how to improve the customer journey. We are particularly excited about DigitalMove, which will be launched in January 2019 and will be a major step forward in the way that many consumers interact with their conveyancer."
Enquiries:
ULS Technology plc Tel: 01844 262392 Geoff Wicks, Chairman Steve Goodall, CEO John Williams, Finance Director Numis Securities Limited (Nomad & Tel: 0207 260 1000 Broker) Stuart Skinner / Paul Gillam, Corporate Advisory Michael Burke, Corporate Broking Walbrook PR Limited ulsgroup@walbrookpr.com or Tel: 020 7933 8780 Paul Cornelius Helen Cresswell Sam Allen Nick Rome
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.
Chief Executive's Report
This has been my first reporting period as CEO of the Group and it has been a successful one in the face of market uncertainty on many fronts. Over the last decade or so, we have forged close working relationships with a growing number of the most successful mortgage intermediaries and lenders. These relationships, together with our continued investment in technology and customer service, have underpinned our strong performance during the period.
It has therefore been an exciting time to take on the CEO role. There is a real desire in the markets in which we operate to make the home-moving experience better for everyone. We are helping to drive this process and are having discussions with a variety of parties across the industry as to how we can make this happen. These developments have the potential to underpin organic growth and the overall health of the Group for many years to come.
A prime driver behind this will be our launch of DigitalMove in January 2019. DigitalMove is a customer focussed online platform that enables the customer to communicate with their conveyancer in a user-friendly, digital environment which is safe and secure with the potential to take weeks off the house-moving process. Following the planned launch, we are working to a roadmap of product enhancements that will be rapidly delivered and rolled out across all of our distribution base and beyond as DigitalMove has the potential to open up new markets and new customers for the Group as well as enhancing the home-moving experience for our existing customers.
Strategy
The Group's strategy remains to grow market share and value though focusing on continual improvement, innovation and quality, while being alive to potential acquisitions.
The tactics to achieve this strategy are:
-- Focus on our distribution. We have an enviable list of distributors who promote our platforms and we have increased resource to ensure there is complete focus on our distribution. This guarantees that we are in regular contact with them and that they receive the service and products that they need and expect.
-- Product development. The Group has always been innovative. However, during this year we have significantly increased resource in our product development team as we look to accelerate delivery of new products. This will accelerate the launch and development of DigitalMove, as well as other new products for lenders and New Build, without compromising enhancements to our existing comparison platforms.
-- Acquisitions. Although not completing any acquisitions in the reporting period it remains a key part of our growth strategy and we will continue to seek and pursue opportunities.
Non-IFRS Profit Measures
In the Financial Highlights above we show the movement in Underlying Profit before Tax. This is a non-IFRS profit measure and the table below shows how that measure is arrived at from IFRS profit.
Underlying Profit before Tax
6 months 6 months to 30 Sep to 30 Sep Year to 2018 2017 31 Mar 2018 GBP'000 GBP'000 GBP'000 Reported PBT 2,296 626 2,735 Amortisation of intangible assets arising on acquisition 270 240 540 Exceptional costs Acquisition activity costs - 77 85 Adjustment of contingent consideration 323 1,795 2,153 2,889 2,738 5,513 ------------ ----------- -------------
Underlying Profit after Tax
6 months 6 months to 30 Sep to 30 Sep Year to 2018 2017 31 Mar 2018 GBP'000 GBP'000 GBP'000 Underlying Profit before tax 2,889 2,738 5,513 Tax on profit on ordinary activities (434) (438) (769) Tax relating to amortisation of intangibles arising on acquisition (48) (42) (96) 2,407 2,258 4,648 ------------ ----------- -------------
We believe that providing details of how these non-IFRS profit measures are calculated by reference to the IFRS profit number helps aid the understanding of the movement in the IFRS number as well as giving an indication to the long-term profitability and cash generating ability of the Group.
Interim Dividend
The Company is pleased to announce that it will pay an interim dividend of 1.20 pence per share; this is a four per cent increase on the dividend paid for the six months to 30 September 2018. The dividend record date is 14 December 2018, and the dividend is expected to be paid on 4 January 2019.
Board Changes
We have recently announced the appointment of Martin Rowland as Non-Executive Director. Martin will Chair the Audit Committee as well as being a member of the Remuneration and Nominations Committees.
Outlook
The macro-economic environment for the last few months has been uncertain. This has fed through to a reduction in housing activity. The feeling in the market is that some potential house buyers are sitting on their hands until there is greater clarity over economic prospects and house prices before entering the market. It seems certain that Brexit is the main driver behind this uncertainty. As things become clearer during 2019, we expect market activity to return to normal levels.
The medium-term prospects for technology providers to the housing market remain positive and therefore we will continue to invest in both sales and product to deliver long-term profitable growth.
Steve Goodall
Chief Executive Officer
UNAUDITED INCOME STATEMENT
Six months to 30 September 2018
Note 6 months 6 months Year ended to 30 Sep to 30 Sep 31 Mar 2018 2018 2017 Unaudited Unaudited Audited GBP'000s GBP'000s GBP'000s Revenue 15,795 15,282 30,672 Cost of sales (9,189) (8,908) (18,192) ------------ ----------- ------------- Gross profit 6,606 6,374 12,480 Administrative expenses (3,928) (3,805) (7,378) Operating profit before exceptional expenses 2,678 2,569 5,102 Exceptional administrative expenses 4 (323) (1,795) (2,147) ------------ ----------- ------------- Operating profit 2,355 774 2,955 Finance income 5 2 6 Finance costs (64) (73) (135) Exceptional finance costs 4 - (77) (91) Profit on ordinary activities before taxation 2,296 626 2,735 Tax on profit on ordinary activities (434) (438) (769) ------------ --------------- ------------- Profit for the financial period 1,862 188 1,966 Basic earnings per share (GBP) 5 0.0289 0.0029 0.0305 Diluted earnings per share (GBP) 5 0.0274 0.0027 0.0284
UNAUDITED STATEMENT OF COMPREHENSIVE INCOME
Six months to 30 September 2018
6 months 6 months Year ended to 30 Sep to 30 Sep 31 Mar 2018 2018 2017 Unaudited Unaudited Audited GBP'000s GBP'000s GBP'000s Profit for the period 1,862 188 1,966 Total comprehensive income for the period 1,862 188 1,966 =========== =========== =============
UNAUDITED BALANCE SHEET
At 30 September 2018
Note 30 Sep 2018 30 Sep 31 Mar 2018 2017 Unaudited Unaudited Audited GBP'000s GBP'000s GBP'000s NON-CURRENT ASSETS Intangible assets 6,510 6,890 6,720 Goodwill 11,008 11,008 11,008 AFS financial assets 100 100 100 Investment in Associates 566 543 547 Property, plant and equipment 380 387 272 Long-term receivables 200 200 200 Prepayments 182 127 153 ----------- --------- ----------- 18,946 19,255 19,000 CURRENT ASSETS Inventory 46 43 55 Trade and other receivables 2,160 2,758 1,511 Cash and cash equivalents 1,828 2,899 2,889 ----------- --------- ----------- 4,034 5,700 4,455 TOTAL ASSETS 22,980 24,955 23,455 EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY Share capital 6 259 259 259 EBT reserve (484) (474) (527) Share premium account 4,585 4,585 4,585 Capital redemption reserve 113 113 113 Share based payment reserve 223 207 267 Retained earnings 5,603 3,573 4,643 ----------- --------- ----------- TOTAL EQUITY 10,299 8,263 9,340 NON-CURRENT LIABILITIES Borrowings 7 2,250 3,250 2,750 Contingent consideration 8 - 1,991 2,100 Deferred taxation 695 1,059 747 ----------- --------- ----------- 2,945 6,300 5,597 CURRENT LIABILITIES Trade and other payables 6,422 7,888 6,184 Borrowings 7 3,000 2,000 2,000 Current tax payable 314 504 334 ----------- --------- ----------- 9,736 10,392 8,518 TOTAL LIABILITIES 12,681 18,692 14,115 TOTAL EQUITY AND LIABILITIES 22,980 24,955 23,455
UNAUDITED STATEMENT OF CHANGES IN EQUITY
Six months to 30 September 2018
Share- Capital based Share EBT reserve Share redemption payment Retained Total capital premium reserve reserve earnings equity GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s For the period ended 30 September 2018 At 1 April 2018 259 (527) 4,585 113 267 4,643 9,340 Profit for the period - - - - - 1,862 1,862 ---------- -------------- ---------- ------------- --------- ----------- --------- Total comprehensive income - - - - - 1,862 1,862 Purchase of shares by EBT - (207) - - - - (207) Exercise of options - 250 - - (16) (161) 73 Share-based payments - - - - (28) - (28) Dividends paid - - - - - (741) (741) ---------- -------------- ---------- ------------- --------- ----------- --------- Total transactions with owners - 43 - - (44) (902) (903) ---------- -------------- ---------- ------------- --------- ----------- --------- At 30 September 2018 259 (484) 4,585 113 223 5,603 10,299 For the period ended 30 September 2017 At 1 April 2017 259 - 4,585 113 151 4,145 9,253 Profit for the period - - - - - 188 188 ---------- -------------- ---------- ------------- --------- ----------- --------- Total comprehensive income - - - - - 188 188 Purchase of shares by EBT - (618) - - - - (618) Exercise of options - 144 - - (17) (49) 78 Share-based payments - - - - 73 - 73 Dividends paid - - - - - (711) (711) ---------- -------------- ---------- ------------- --------- ----------- --------- Total transactions with owners - (474) - - 56 (760) (1,178) ---------- -------------- ---------- ------------- --------- ----------- --------- At 30 September 2017 259 (474) 4,585 113 207 8,263 =========== 3,573 ========== ============== ========== ============= ========= =========== ========= For the year ended 31 March 2018 At 1 April 2017 259 - 4,585 113 151 4,145 9,253 Profit for the year - - - - - 1,966 1,966
---- -------- ------ ---- ----- -------- -------- Total comprehensive income - - - - - 1,966 1,966 Purchase of shares by EBT - (1,050) - - - - (1,050) Exercise of options - 523 - - (25) (293) 205 Share-based payments - - - - 141 - 141 Deferred tax share options - - - - - 277 277 Payment of dividends - - - - - (1,452) (1,452) ---- -------- ------ ---- ----- -------- -------- Total transactions with owners - - - - 116 (1,468) (1,879) ---- -------- ------ ---- ----- -------- -------- At 31 March 2018 259 (527) 4,585 113 267 4,643 9,340
UNAUDITED STATEMENT OF CASH FLOWS
Six months to 30 September 2018
6 months to 30 Sep 2018 6 months to 30 Sep 2017 Year ended 31 Mar 2018 Unaudited Unaudited Audited GBP'000s GBP'000s GBP'000s Cash flows from operating activities Profit before taxation 2,296 626 2,735 Finance income (3) (2) (6) Finance costs 64 150 226 Loss on disposal of plant and - - - equipment Share of (profit) / loss of associate (19) 6 2 Amortisation 531 484 1,014 Depreciation 110 140 274 Share-based payments (28) 73 141 Tax paid (506) (598) (1,134) ----------------------- ----------------------- ---------------------- 2,445 879 3,252 Changes in working capital Decrease / (increase) in inventories 9 (3) (15) (Increase) / decrease in trade and other receivables (678) (1,037) 185 Increase in trade and other payables 1,073 2,960 2,431 ----------------------- ----------------------- ---------------------- Net cash generated from operating activities 2,849 2,799 5,853 ----------------------- ----------------------- ---------------------- Cash flows from investing activities Purchase of intangible software assets (319) (309) (670) Purchase of property, plant and equipment (219) (11) (30) Payment of deferred and contingent consideration (2,935) - (1,080) Interest received 3 2 6 Net cash used in investing activities (3,470) (318) (1,774) ----------------------- ----------------------- ---------------------- Cash flows from financing activities Dividends paid (741) (711) (1,452) Interest paid (64) (73) (135) Repayment of term loan (500) (500) (1,000) Movement on rolling cash flow facility 1,000 - - Share transactions by EBT (135) (540) (845) Net cash used in financing activities (440) (1,824) (3,432) Net (decrease) / increase in cash and cash equivalents (1,061) 657 647 Cash and cash equivalents at beginning of period 2,889 2,242 2,242 ----------------------- ----------------------- ---------------------- Cash and cash equivalents at end of period 1,828 2,899 2,889 ======================= ======================= ======================
Notes to the financial information
Six months to 30 September 2018
1. GENERAL
The interim financial information for the six months to 30 September 2018 is unaudited and was approved by the Directors of the Company on 28 November 2018. The condensed financial information set out above does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.
The Company's operations are not subject to significant seasonality or cyclicality.
A dividend of GBP741,273 has been paid in the six months ended 30 September 2018 (six months to 30 September 2017: GBP711,195).
2. ACCOUNTING POLICIES
The interim financial information in this report has been prepared on the basis of the accounting policies set out in the Group's most recent annual financial statements for the year ended 31 March 2018.
IFRS 15 'Revenue from Contracts with Customers' is effective for annual periods beginning on or after 1 January 2018 and is therefore applicable to these accounts. However, the change in accounting standard from IAS 18 has had no impact on these accounts.
IFRS is subject to amendment and interpretation by the International Accounting Standards Board ("IASB") and the IFRS Interpretations Committee and there is an on-going process of review and endorsement by the European Commission.
The financial information has been prepared using accounting policies that the Directors expect to be applicable as at 31 March 2019, with the exception of IAS 34.
The Directors have adopted the going concern basis in preparing the financial information. In assessing whether the going concern assumption is appropriate, the Directors have taken into account all relevant available information about the foreseeable future.
The condensed financial information for the period ended 31 March 2018 set out in this interim report does not comprise the Group's statutory accounts as defined in section 434 of the Companies Act 2006.
3. SEGMENT REPORTING
Management identifies its operating segments based on the Group's service lines, which represent the main product and services provided by the Group. The Group of similar services which makes up the Group's Comparison Services segment represents more than 95% of the total business. Additionally, the Board reviews Group consolidated numbers when making strategic decisions and, as such, the Group considers that it has one reportable operating segment. All sales are made in the UK.
4. EXCEPTIONAL EXPENSES
Exceptional Administrative Expenses
6 months 6 months to 30 Sep to 30 Sep Year to 2018 2017 31 Mar 2018 GBP'000 GBP'000 GBP'000 Acquisition related expenses - 77 85 Adjustment to expected contingent consideration 323 1,718 2,062 323 1,795 2,147 ------------ ----------- -------------
Exceptional Finance Costs
6 months 6 months to 30 Sep to 30 Sep Year to 2018 2017 31 Mar 2018 GBP'000 GBP'000 GBP'000 Change in NPV of deferred consideration - 77 91 - 77 91 -------------- ----------- ------------- 5. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.
Basic and diluted earnings per share
6 months 6 months to 30 Sep to 30 Sep Year to 2018 2017 31 Mar 2018 GBP GBP GBP Total basic earnings per share 0.0289 0.0029 0.0305 ------------ ----------- ------------- Total diluted earnings per share 0.0274 0.0027 0.0284 ------------ ----------- -------------
The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows:
6 months 6 months to 30 Sep to 30 Sep Year to 2018 2017 31 Mar 2018 GBP'000s GBP'000s GBP'000s Earnings used in the calculation of total basic and diluted earnings per share 1,862 188 1,966 =========== =========== ============= Number of shares 6 months 6 months to 30 Sep to 30 Sep Year to 2018 2017 31 Mar 2018 Number Number Number Weighted average number of ordinary shares for the purposes of basic earnings per share 64,459,290 64,828,057 64,549,992 =========== =========== =============
Taking the Group's dilutive potential ordinary shares into consideration in respect of the Group's weighted average number of ordinary shares for the purposes of diluted earnings per share, is as follows:
Number of shares 6 months 6 months to 30 Sep to 30 Sep Year to 2018 2017 31 Mar 2018 Potential dilutive effect of share options and warrants 3,550,829 4,770,506 4,589,034 ----------- ----------- ------------- Weighted average number of ordinary shares for the purposes of diluted earnings per share 68,010,119 69,598,563 69,139,026 =========== =========== ============= 6. SHARE CAPITAL a) Share Capital
The Company has one class of Ordinary share with 0.4p nominal value per share which carries no right to fixed income nor has any preferences or restrictions attached.
No new shares were issued in the period
Issued and fully paid:
30 Sep 2018 30 Sep 2017 31 Mar 2018 GBP'000s GBP'000s GBP'000s Ordinary shares of 0.40p each 259 259 259 ============ ============ ============ 30 Sep 2018 30 Sep 31 Mar 2018 2017 Number Number Number At beginning & end of the period 64,828,057 64,828,057 64,828,057 ============ =========== ============ b) Share based payments
During the period the Group granted 527,500 options with an exercise price of GBP1.3425 per share and 637,500 options with an exercise price of GBP1.3325 per share.
All options in issue vest in 3 equal tranches, three, four, and five years after date of grant. The options are settled in equity once exercised. If the options remain unexercised after a period of 10 years from the date of grant, the options expire. Options are forfeited if the employee leaves the Group before the options vest.
Weighted Number average exercise of options price GBP Outstanding at 1 April 2018 4,309,785 0.62 Granted 1,165,000 1.34 Forfeited prior to vesting (1,769,828) 0.51 Exercised (175,802) 0.41 Outstanding at 30 September 2018 3,529,155 0.92 ============= ================== 7. BORROWINGS 30 Sep 2018 GBP'000s GBP'000s At 1 April 2018: Current Term Loan 1,000 Rolling cash flow facility 1,000 2,000 --------- Non-current Term Loan 2,750 --------- 4,750 Movements during the period: Repayments of term loan (500) Movement on 1,000 500 At 30 September 2018: Current Term Loan 1,000 Rolling cash flow facility 2,000 3,000 --------- Non-current Term Loan 2,250 --------- 5,250 =========
In December 2016, the Group took out a 5-year term loan for GBP5 million and a GBP2 million revolving cash flow facility. Both had an initial interest rate of 1.90% above LIBOR but this has reduced to 1.55% above LIBOR during the period as certain financial criteria were met. The term loan is subject to repayments of GBP250,000 plus accrued interest quarterly.
Loans are secured by way of fixed and floating charges over all assets of the Group.
8. CONTINGENT CONSIDERATION
In December 2016, the Group acquired 100% of the issued ordinary share capital of Conveyancing Alliance Holdings Limited and its 100% subsidiary Conveyancing Alliance Limited (together referred to as "CAL"), companies incorporated in England and Wales. Part of the consideration is contingent based on a range of between 0.5 and 1.75 times annualised PBT of CAL for the period between completion to 31 March 2018 and also for the 12 months ending 31 March 2019. A first payment of GBP2,935,000 relating to this contingent consideration was paid in July 2018. The estimated remaining undiscounted value of this element of the consideration is GBP2,337,000 (GBP5,272,000 as at 31 March 2018). There is a cap on the contingent consideration payable and the current estimate is for the cap to be reached.
The amounts shown in the balance sheet are at net present value and the movement arising on this is shown below
30 Sep 2018 GBP'000s At 1 April 2018: Current (included in trade and other payables) 2,575 Non-current 2,100 ------------ 4,675 Movements during the period: Payments of contingent consideration (2,935) Change in NPV due to movement in time 323 At 30 September 2018: Current (included in trade and other payables) 2,063 ============
The end of period contingent consideration liability of GBP2,063,000 is all included within trade and other payables as a current liability.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR LLFIELDLIVIT
(END) Dow Jones Newswires
December 03, 2018 02:00 ET (07:00 GMT)
1 Year Uls Technology Chart |
1 Month Uls Technology 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