ADVFN Logo ADVFN

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for alerts Register for real-time alerts, custom portfolio, and market movers

VTS Vantis

10.25
0.00 (0.00%)
24 Dec 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Vantis LSE:VTS London Ordinary Share GB0031464620 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% 10.25 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Interim Results

17/12/2003 7:00am

UK Regulatory


RNS Number:3493T
Vantis PLC
17 December 2003


For Immediate Release                                         17  December 2003



                           ("Vantis" or the "Group")

            Interim Results for the Six Months Ended 31 October 2003


Vantis, the AIM listed accountancy and professional services group, announces
interim results for the six months ended 31 October 2003.


Key points

  * Turnover increased 30% to #10.2m (2002: #7.8m);

  * Profit before interest, tax and goodwill amortisation increased 29% to
    #1.8m (2002: #1.4m);

  * Operating margin maintained at 17.5%;

  * Adjusted basic eps 3.26p (2002: 3.30p). Prior to the issue of new shares
    for cash, adjusted basic eps was up 6% to 3.47p;

  * Interim dividend proposed of 1p per share (2002: 0.935p), an increase of
    7%;

  * Integration of Wheawill & Sudworth, acquired in October 2003, has
    proceeded well;

  * Gearing reduced to 53% at 31 October 2003 (61% at 30 April 2003);

  * On outlook, Paul Gourmand, Chairman said:

"Prospects are encouraging despite a challenging environment and we have made
further appointments of high calibre staff  in a number of key areas to enhance
service excellence. We are well positioned for further growth and will continue
our strategy of selecting suitable businesses from a strong pipeline of
acquisition opportunities, which in the opinion of the board will be earnings
enhancing."


    For further information:

    Paul Gourmand, Chairman
    Paul Jackson, Chief Executive
    Vantis plc                                              020 7417 0417

    Richard Darby, Suzanne Dunne
    Buchanan Communications                                 020 7466 5000


Notes to Editors

1.  Vantis plc is the AIM listed accounting and business advisory group that
    specialises in helping business people improve the performance of their
    businesses.

2.  The Vantis group offers a range of specialist skills, including taxation
    services, accountancy, management consultancy, business recovery, corporate
    finance, outsourcing, asset finance and independent financial advice.

3.  The Vantis group has over 380 staff operating from 13 offices throughout
    England and is a member of INPACT, the international network of professional
    accountants, which has worldwide representation of 155 firms in 61 
    countries.


CHAIRMAN'S STATEMENT

I am pleased to report further solid progress across all areas of the business
during the six months ended 31 October 2003. Our results are in line with
expectations despite trading conditions for SMEs, our core target market,
remaining sluggish.  This reflects the strength of our management team.

Results

During the period under review, the Group increased turnover by 30% to #10.2
million (2002: #7.8 million) and achieved profit before interest, tax and
goodwill amortisation of #1.789 million (2002: #1.389 million), an increase of
29%.  This result is after charging branding and integration costs of #381,000
in the period, such costs having been treated as exceptional in the results for
the year to 30th April 2003 in the sum of #550,000.  Similarly, these results
are also after charging the share option discount of #68,000 (2003 full year
#152,000) which is included in group payroll costs. Amortisation of goodwill
arising from acquisitions has been deducted in arriving at the profit before tax
for the period, and this has increased from #138,000 (6 months to 31st October
2002) to #335,000 (6 months to 31st October 2003) in line with expectation.

The operating margin before goodwill amortisation but after higher branding and
integration costs (as above) has been maintained at 17.5% for the period (17.7%
for the 6 months to 31st October 2002), this period being seasonally weaker than
the second half of the year.

The adjusted basic earnings per share excluding exceptional items and goodwill
amortisation amounted to 3.26 pence (2002: 3.30 pence). The equivalent basic
earnings per share being reported was 3.30 pence (there were no funds raised
from share placings in this comparative period), although the equivalent prior
to the issue of new shares for cash in this period was 3.47 pence, an increase
of 6%.

The Directors are pleased to announce that an interim dividend of 1p. per share
is (2002: 0.935p per share) to be paid on 9th February 2004 to shareholders on
the register on 16 January 2004, an increase of 7%.

Integration

In common with our strategy of integrating teams of people and businesses
together, we have continued to recruit additional high calibre key personnel.

In October 2003, we announced the successful acquisition of the non-audit
business of Wheawill & Sudworth, a seven-partner firm based in London. This
acquisition has brought complementary strengths in forensic accounting
(particularly expert witness and litigation), IT and the restaurant/catering
sectors together with expertise in accountancy outsourcing, business and
taxation services.

I am pleased to report that the integration of Wheawill & Sudworth, which was
announced on 13 October 2003, has proceeded well with the firm being relocated
to Vantis' City of London office. Wheawill & Sudworth historically had a
presence in the Thames Valley and we are working to strengthen existing client
relationships and increase our presence in this important geographical area. The
client base is already accessing the wider range of specialist services already
available within Vantis.

Finance

The acquisition of Wheawill & Sudworth was for a maximum consideration of #4.25
million, of which up to #2.814 million is deferred over a two year period to 30
September 2005, subject to performance criteria. Under the terms of the
acquisition, we have acquired net assets of #0.564 million and the non-audit
business of this firm with an estimated turnover of #2.5 million per annum.

We have raised a total of #3.09 million from the placing of new ordinary shares
with institutional investors in August and September.  The proceeds from both
placings have been used to augment our existing working capital facilities and
the continuing development of the business.

In August, #400,000 of Unsecured Convertible Loan Notes were converted into
Ordinary shares at 106.5p per share as opposed to the cash alternative available
to the holders. The Unsecured Loan Notes were issued as part consideration for
the purchase of The Custom House (Duty Recovery and Advisory Services), the
acquisition of which was announced on 1 August 2002.

At 31st October 2003, Group borrowings amounted to #7.5 million; gearing was
53%, down from 61% at the 30th April 2003. The diluted weighted number of
Ordinary shares in issue at the half year was 34.831 million, an increase of
4.430 million shares over the period under review, equivalent to 12.7% of the
issued ordinary share capital.

Outlook

I am pleased to report that the Group has continued to perform in line with our
expectations since the end of the half year. Prospects are encouraging despite a
challenging environment and we have made further appointments of high calibre
staff  in a number of key areas to enhance service excellence. We are well
positioned for further growth and will continue our strategy of selecting
suitable businesses from a strong pipeline of acquisition opportunities, which
in the opinion of the board will be earnings enhancing.


Paul Gourmand
Chairman
17 December 2003



CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 31 OCTOBER 2003




                                             Unaudited six months to 31 October 2003

                                      Notes         Before      
                                                  goodwill      Goodwill                   Audited  Unaudited six       
                                              amortisation  amortisation       Total       year to      months to       
                                                                                          30 April     31 October 
                                                                                              2003           2002
                                                    #'000          #'000       #'000         #'000          #'000

Turnover                                           10,220             -       10,220        18,646         7,838

Movement in work in progress                        1,470             -        1,470         1,022         1,229
Other operating income                                 26             -           26            39            20
External charges: direct expenses                   (953)             -        (953)       (1,663)         (764)
Staff costs and similar charges                   (6,774)             -      (6,774)      (10,832)       (5,338)

Depreciation                                        (171)             -        (171)         (277)         (121)
Amortisation                                            -         (335)        (335)         (342)         (138)

Depreciation and amortisation                       (171)         (335)        (506)         (619)         (259)
Other operating charges                           (2,029)             -      (2,029)       (3,378)       (1,475)

Operating profit                          1         1,789         (335)        1,454         3,215         1,251
Interest receivable and similar                         -             -            -            17            15
income
Interest payable and similar                        (174)             -        (174)         (162)          (45)
charges

Profit on ordinary activities                       1,615         (335)        1,280         3,070         1,221
before taxation
Taxation on profit on ordinary            2         (505)            56        (449)       (1,018)         (388)
activities
                                          
Profit on ordinary activities                       1,110         (279)          831         2,052           833
after taxation
Dividends                                 3         (365)             -        (365)         (930)         (276)

Retained profit for the period                        745         (279)          466         1,122           557

Earnings per share (pence per             4
share)
Basic                                                                           2.44          6.88          2.83
Diluted                                                                         2.39          6.75          2.79
Adjusted basic before goodwill                       3.26                                     7.95          3.30
amortisation
Adjusted diluted before goodwill                     3.19                                     7.80          3.26
amortisation


All amounts relate to continuing activities


CONSOLIDATED BALANCE SHEET
AS AT 31 OCTOBER 2003


                                                                         Unaudited         Audited       Unaudited
                                                                   31 October 2003        30 April 31 October 2002
                                                                             #'000            2003           #'000
                                                                                             #'000


Fixed assets

Intangible assets                                                           16,516          12,123           6,700
Tangible assets                                                              1,141           1,175             954
Investments                                                                      5               5               5
                                                                            17,662          13,303           7,659

Current assets

Work in progress                                                             4,719           3,116           2,476
Debtors                                                                     10,805           8,872           5,227
Cash at bank and in hand                                                       177              25             270

                                                                            15,701          12,013           7,973

Creditors: amounts falling due within one year                            (12,803)        (10,394)         (7,077)

Net current assets                                                           2,898           1,619             896

Total assets less current liabilities                                       20,560          14,922           8,555

Creditors: amounts falling due after more than one year                    (6,426)         (5,398)         (1,431)

Net assets                                                                  14,134           9,524           7,124



Capital and reserves

Called up share capital                                                      3,696           3,240           2,949

Share premium account                                                        7,887           4,267           2,662

Merger reserve                                                                 732             732             795

Shares to be issued                                                             11              11              86

Other reserves                                                                 220             152              75

Profit and loss account                                                      1,588           1,122             557

Equity shareholders' funds                                                  14,134           9,524           7,124




CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 OCTOBER 2003



                                                             Notes       Unaudited         Audited       Unaudited
                                                                     six months to         year to   six months to
                                                                   31 October 2003        30 April 31 October 2002
                                                                             #'000            2003           #'000
                                                                                             #'000

Cash flow from operating activities                              5          (1,363)         (2,561)         (2,243)
                                                                 
Returns on investments and servicing of finance

Interest received                                                                -              17              15

Interest paid                                                                (161)           (127)            (23)

Interest paid on finance leases                                               (13)            (35)            (22)

Net cash outflow from returns on investments and                             (174)           (145)            (30)
servicing of finance

Taxation                                                                     (180)            (77)            (58)

Capital expenditure and financial investment

Purchase of tangible fixed assets                                            (139)           (485)           (115)

Sale of tangible fixed assets                                                   77              11               -

Net cash outflow from capital expenditure and financial                       (62)           (474)           (115)
investments

Acquisitions

Purchase of subsidiary undertakings                                        (2,826)         (4,692)         (2,370)

Net cash acquired with subsidiary undertakings                                   -              77             155

Net cash outflow from acquisitions                                         (2,826)         (4,615)         (2,215)

Equity dividends paid                                                        (659)           (271)               -

Cash outflow before management of liquid resources and                     (5,264)         (8,143)         (4,661)
financing

Financing

Issue of ordinary shares for cash                                            3,789           3,229           3,193

Expenses of share issues                                                     (112)           (701)           (672)

Repayment of loans                                                            (12)            (38)            (18)

New loans                                                                    1,690           3,267               -

Capital element of finance lease repayments                                  (97-)           (166)            (83)

Net cash inflow from financing                                               5,258           5,591           2,420

Decrease in cash in the period                                   6             (6)         (2,552)         (2,241)
                                                                 



NOTES TO THE INTERIM RESULTS
FOR THE SIX MONTHS ENDED 31 OCTOBER 2003



1.        Operating profit

          Operating profit includes costs for branding and integration of 
          #381,000 (30 April 2003 #550,000, 31 October 2002 #200,000) and a 
          share option discount charge of #68,000 (30 April 2003 #152,000, 
          31 October 2002 #75,000), central overheads of #728,000 (30 April 2003 
          #1,225,000, 31 October 2002 #556,000) and plc costs of #579,000 
          (30 April 2003 #1,129,000, 31 October 2002 #547,000).  Whilst the 
          majority of these are, to some extent, variable to the Group's
          activities, they are not expected to increase at the same rate as 
          other direct costs.  The systems that the Group operate are scalable 
          and capable of dealing with greater volumes.


2.        Taxation on profit on ordinary activities


          Provision for taxation is based upon taxable profits for the period at 
          the anticipated effective tax rate for the year of 30%.


3.        Dividends

                                                                         Unaudited         Audited       Unaudited
                                                                     six months to         year to   six months to
                                                                   31 October 2003        30 April 31 October 2002
                                                                             #'000            2003           #'000
                                                                                             #'000

Interim                                                                        365             271             276

Final                                                                            -             659               -

                                                                               365             930             276



4.        Earnings per share

                                                                       Unaudited         Audited       Unaudited
                                                                   six months to         Year to   six months to
                                                                 31 October 2003        30 April 31 October 2002
                                                                           #'000            2003           #'000
                                                                                           #'000


Earnings before goodwill amortisation                                      1,110           2,372             971

Goodwill amortisation                                                      (279)           (320)           (138)

Earnings after goodwill amortisation                                         831           2,052             833

                                                                            '000            '000            '000

Weighted average number of shares in issue                                34,056          29,833          29,449

Dilution effect of share options                                             334             168             154

Dilution effect of convertible loan stock                                    338             362             214

Dilution effect of contingent consideration                                  103              38               -

Diluted weighted average number of shares                                 34,831          30,401          29,817

                                                                           Pence           Pence           Pence

Basic earnings per share                                                    2.44            6.88            2.83

Diluted earnings per share                                                  2.39            6.75            2.79

Adjusted basic earnings per share before goodwill amortisation              3.26            7.95            3.30

Adjusted diluted earnings per share before goodwill amortisation            3.19            7.80            3.26

    The weighted average number of shares used for the basic earnings per share 
    calculation excludes shares held by the Vantis Employee Benefit Trust which 
    have not unconditionally vested in identified beneficiaries.



NOTES TO THE INTERIM RESULTS
FOR THE SIX MONTHS ENDED 31 OCTOBER 2003


5.        Net cash outflow from operating activities
                                                                         Unaudited         Audited       Unaudited
                                                                     six months to         year to   six months to
                                                                   31 October 2003        30 April 31 October 2002
                                                                             #'000            2003           #'000
                                                                                             #'000

Operating profit                                                             1,454           3,215           1,251

Amortisation of goodwill                                                       335             342             138

Depreciation of tangible fixed assets                                          171             277             121

Profit on assets disposal                                                      (7)               -               -

Share based employee remuneration                                               68             152              75

Increase in work in progress                                               (1,484)         (1,423)         (1,006)

Increase in debtors                                                        (1,918)         (7,494)         (4,204)

Increase in creditors                                                           18           2,370           1,382

Net cash outflow from operating activities                                 (1,363)         (2,561)         (2,243)



6.     Analysis of movement in net debt

                                                        Audited       Unaudited        Unaudited        Unaudited
                                                       30 April       cash flow   non-cash items       31 October
                                                           2003                            #'000             2003
                                                          #'000           #'000                             #'000
Cash balances

Cash at bank and in hand                                     25             152                -              177
Less:

Bank overdrafts                                         (2,564)           (158)                -          (2,722)

Net cash balances                                       (2,539)             (6)                -          (2,545)
Debt

Loan stock due within one year                             (89)               -            (264)            (353)

Loan stock due after one year                           (1,722)               -              664          (1,058)

Bank loans due within one year                             (24)              12            (812)            (824)

Bank and other loans due after one year                 (3,279)         (1,690)              812          (4,157)

Finance leases due within one year                        (133)              23             (13)            (123)

Finance leases due after one year                         (115)              74             (30)             (71)

                                                        (5,362)         (1,581)              357          (6,586)

Net Debt                                                (7,901)         (1,587)              357          (9,131)



NOTES TO THE INTERIM RESULTS
FOR THE SIX MONTHS ENDED 31 OCTOBER 2003



7.        Basis of preparation

          The accounting policies and presentation of figures in this 
          preliminary announcement have been prepared on the same basis as set 
          out in the group's financial statements for the year ended 30 April
          2003.

          The financial information set out in the announcement does not 
          constitute the Company's statutory accounts within the meaning of 
          section 240 of the Companies Act 1985.

          The financial information for the year ended 30 April 2003 is derived 
          from the statutory accounts which have been delivered to the Registrar 
          of Companies and on which the auditors gave an unqualified opinion.

          These interim results were approved by the board on 12 December 2003.


INDEPENDENT REVIEW REPORT TO VANTIS PLC


Introduction

We have been instructed by the company to review the financial information for
the six months ended 31 October 2003 which  comprises the consolidated profit
and loss account, the consolidated balance sheet, the consolidated cash flow
statement and the related notes 1 to 7. We have read the other information
contained in the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.

This report is made solely to the company in accordance with the terms of our
engagement to assist the company in meeting the requirements of the rules of the
London Stock Exchange for companies trading securities on the Alternative
Investment Market. Our review has been undertaken so that we might state to the
company those matters we are required to state to it in this report

and for no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the company for our review
work, for this report, or for the conclusions we have reached.


Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. Where a company
is fully listed, the directors are responsible for preparing the interim report
in accordance with the Listing Rules of the Financial Services Authority which
require that the accounting policies and presentation applied to the interim
figures should be consistent with those applied in preparing the preceding
annual accounts except where any changes, and the reasons for them, are
disclosed. The directors of  Vantis Plc have voluntarily complied with this
requirement in preparing the interim report.


Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom by auditors
of fully listed companies. A review consists principally of making enquiries of
group management and applying analytical procedures to the financial information
and underlying financial data and based thereon, assessing whether the
accounting policies and presentation have been consistently applied unless
otherwise disclosed. A review excludes audit procedures such as tests of
controls and verification of assets, liabilities and transactions. It is
substantially less in scope than an audit performed in accordance with United
Kingdom Auditing Standards and therefore provides a lower level of assurance
than an audit. Accordingly we do not express an audit opinion on the financial
information.


Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 October 2003.


BDO Stoy Hayward
Chartered Accountants
Epsom

17 December 2003


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

IR KQLFFXLBLFBZ

1 Year Vantis Chart

1 Year Vantis Chart

1 Month Vantis Chart

1 Month Vantis Chart

Your Recent History

Delayed Upgrade Clock