Workplace Systems Share Discussion Threads

[martincc] 24/6/2004 08:56

Moving again, no trades showing yet but presumably a late buy on the way?

[martincc] 23/6/2004 08:10

Delayed reaction to the results?
Moving up now.

[greengiant] 17/6/2004 08:52

Not bad - This is ine to hold for time being

gg

[lee] 17/6/2004 07:08

here you go peeps, Enjoy!

RNS Number:8506Z
Workplace Systems International PLC
17 June 2004

Workplace Systems International plc
Preliminary Results


Introduction

The trading performance of the Group for the year to 31st March 2004 has shown a
significant improvement with a return to operating profit before exceptional
items and amortisation of goodwill after two years of operating losses before
exceptional items and amortisation of goodwill as reported in the profit and
loss account. The year-end cash balance position is excellent arising from
trading cash generation and receipts from the sale of the loss-making TeleWare
division in July 2003.



During the year the Group reviewed the value of acquired goodwill in accordance
with accounting standards and changing market conditions. This resulted in the
goodwill being fully written down with an exceptional charge of #8.4 million.



The improvement in performance has been achieved whilst maintaining the high
level of investment in new product development and current product improvement.
Almost half of the total number of employees in the Group are involved directly
in product development.



The strategic decision to focus on the greater opportunity with the Workplace
division in the worldwide Workforce Management Software market is being shown to
be correct.



As the start point of international expansion, three sales staff have been
appointed in Australia and early indications suggest considerable opportunity
for the Workplace product set.



Financial Results

Continuing Operations
Workplace showed a turnover level of #8.7 million for the year to 31st March
2004 (2003: #7.6 million). The recurring revenues received from Annual Use
Licenses increased to #3.9 million (2003: #3.6 million) and account for 45% of
the turnover (2003: 47%). An operating profit before exceptional items and
amortisation of goodwill of #0.6 million (2003: loss of #1.3 million) was
achieved as reported in the profit and loss account.



Discontinued Operations
For the period to 14th July 2003 TeleWare achieved a turnover of #2.0 million
and an operating loss of #0.3 million.



Combined Operations
The combined operations of the business showed a turnover of #10.7 million
(2003: #14.2 million) and an operating profit before exceptional items and
amortisation of goodwill of #0.3 million (2003: loss of #2.6 million) as
reported in the profit and loss account. The operating loss was #8.6 million
(2003: loss of #3.7 million). A profit of #1.0 million was made on the sale
of TeleWare. Retained losses were #7.7 million (2003: loss of #2.7 million).



Cash Flow

The Group's cash position, including money market deposits increased
significantly to #8.5 million (2003: #4.9 million). The improvement in cash
and money market deposits of #3.6 million in the year to 31st March 2004
primarily resulted from the positive trading cash flow performance of Workplace
and the proceeds received from the sale of the TeleWare Division. The Group
continues to manage working capital closely to maintain its strong cash
position.



Dividend

The Board is proposing that a dividend be paid for the year to 31st March 2004
of 0.2p per share (2003: nil pence per share).




Business Performance of Workplace

As expected, performance continued at steady levels in the second half of the
financial year with marginal improvement in trading conditions. Regular small
to medium sized orders have been received from our well established user base
and from new customers. Larger orders have been more difficult to close but
significant opportunities still exist particularly with major retail and
transport organizations and early signs of an increase in customer interest are
apparent.



Orders have been received during the year from a number of significant
businesses including Rank Leisure, Lipton Tea, Gallagher, Seven Trent, Menzies
Aviation Group and significant expansion orders from Metro Group and from Argos.



Workplace have traditionally obtained orders from overseas customers in Europe,
USA and Asia-Pacific from the UK base. With the advantageous competitive
product portfolio of Workplace, active international expansion targeted at
Asia-Pacific, the USA and Europe has commenced using strategic partners and the
direct sales approach. An Australian base in Brisbane working with strategic
partner, Talent 2 was established in June 2004 and has already resulted in the
first order from Brisbane City Council.



Workplace software modules address all areas of labour management including
staff forecasting, scheduling/rostering, budgeting and productivity and
performance reporting. These products are relevant to all market sectors but
are receiving increased focus from the retail, hospitality, emergency services,
health, retail finance, transport and supply chain sectors. Significant labour
cost savings and improved service levels are benefits often reported from
implementation of Workplace products. Workplace's sales approach is focused on
these customer benefits and accordingly it has achieved sales to a number of
significant businesses.



Outlook

Workplace is financially sound with a strong cash position, a significant
proportion of recurring revenues, and has probably the leading product worldwide
in terms of features and technology in the high growth area of Workforce
Management Software.



The Board still remains cautious since the recovery of the market is fragile but
our leading position with functionally rich products and proven international
reference sites provides the opportunity for business growth in the UK and
internationally.





WORKPLACE SYSTEMS INTERNATIONAL plc
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Year ended 31 March 2004
2004 2004 2004 2003
#000 #000 #000 #000
Pre exceptional items Exceptional items & Post exceptional Total
& amortisation of amortisation of items & amortisation
goodwill goodwill of goodwill

Note

Turnover
Continuing operations 8,664 - 8,664 7,581
Discontinued operations 2,000 - 2,000 6,660

Total 2 10,664 - 10,664 14,241

Operating profit/(loss) before exceptional
items and amortisation of goodwill
Continuing operations 563 - 563 (1,326)
Discontinued operations (253) - (253) (1,323)

Total 310 - 310 (2,649)

Exceptional items - continuing operations
Goodwill write-off - (8,396) (8,396) -
Other - 64 64 (514)

Total - (8,332) (8,332) (514)

Amortisation of goodwill
Continuing operations - (529) (529) (529)
Discontinued operations - (13) (13) (46)

Total - (542) (542) (575)

Operating Profit/(loss)
Continuing operations 563 (8,861) (8,298) (2,369)
Discontinued operations (253) (13) (266) (1,369)

Total 310 (8,874) (8,564) (3,738)

Profit on sale of subsidiary - discontinued 959 -
operations

Interest receivable 207 183

Loss on ordinary activities before taxation (7,398) (3,555)
Tax on loss on ordinary activities - 813

Loss on ordinary activities after taxation (7,398) (2,742)

Dividends 6 (286) -

Retained loss for the year (7,684) (2,742)

Basic loss per share 5 (4.805p) (1.519p)

Adjusted earnings/(loss) per share 5 0.500p (0.183p)


There are no recognised gains and losses other than the profit for the financial
years. Accordingly, no statement of total recognised gains and losses is given.


WORKPLACE SYSTEMS INTERNATIONAL plc

CONSOLIDATED BALANCE SHEET
31 March 2004

2004 2003
Note #000 #000 #000 #000 #000 #000
FIXED ASSETS
Intangible assets - 9,723
Tangible assets 1,106 2,723
1,106 12,446
CURRENT ASSETS
Stocks - 740
Debtors 2,301 5,279
Investments: Money market deposits 7,000 4,500
Cash at bank and in hand 1,494 432

Cash at bank and in hand and money market deposits 8,494 4,932
10,795 10,951

CREDITORS: amounts falling due within one year 1 (774) (592)
NET CURRENT ASSETS 10,021 10,359

TOTAL ASSETS LESS CURRENT LIABILITIES 11,127 22,805

PROVISIONS FOR LIABILITIES AND CHARGES - -

ACCRUALS AND DEFERRED INCOME
Accruals 1 (1,037) (1,045)
Deferred Income (2,360) (4,854)
(3,397) (5,899)
NET ASSETS 7,730 16,906

CAPITAL AND RESERVES
Called up share capital 7,158 9,023
Share premium account 8,607 8,607
Capital redemption reserve 1,871 -
Profit and loss account (9,906) (724)

EQUITY SHAREHOLDERS' FUNDS 4 7,730 16,906



WORKPLACE SYSTEMS INTERNATIONAL plc

CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 March 2004
Note 2004 2003
#000 #000

Net cash flow from operating activities 3 2,296 (882)

Returns on investments and servicing of finance 207 183

Taxation 253 602

Capital expenditure (92) (379)

Disposal of subsidiary 892 -

Equity dividend paid - -

Cash outflow before use of liquid resources and financing 3,556 (476)

Management of liquid resources (2,500) (500)

Financing 6 (33)

Increase/(decrease) in cash in the year 1,062 (1,009)




Reconciliation of net cash flow to movement in net funds 2004 2003
#000 #000

Increase/(decrease) in cash in the period 1,062 (1,009)

Cash inflow from change in debt and lease financing - 33

Cash used to increase liquid resources 2,500 500

Change in net funds 3,562 (476)

Net funds at 1 April 4,932 5,408

Net funds at 31 March 8,494 4,932






1. NOTES TO THE PRELIMINARY FINANCIAL STATEMENTS - 31 MARCH 2004

Basis of Preparation

The accounts have been prepared on the basis of the accounting policies set out
in the Group's 31 March 2003 accounts.



The prior year balance sheet has been restated to reflect the transfer of
accruals of #1,045,000 from creditors: amounts falling due in less than one year
to accruals and deferred income, shown separately on the face of the balance
sheet, to comply with the requirements of the Companies Act.



The financial information set out in the announcement does not constitute the
company's statutory accounts for the years ended 31st March 2004 or 2003, 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 the
company's annual general meeting. The auditors have reported on these accounts,
their reports were unqualified and did not contain statements under s237(2) or
(3) companies Act 1985.



2. SEGMENTAL INFORMATION

The turnover, loss before taxation and net assets are attributable to the
principal activity which is the supply of software systems and expertise in
certain specialist vertical market places. The Group operates in the UK and its
geographical analysis of turnover by destination is as follows:


Turnover by destination:


Middle East North
UK Europe America Other Total
#000 #000 #000 #000 #000 #000
2004 Sales
Continuing operations 7,734 158 668 96 8 8,664
Discontinued operations 2,000 - - - - 2,000

Sales to third parties 9,734 158 668 96 8 10,664

2003 Sales
Continuing operations 7,020 134 325 102 - 7,581
Discontinued operations 6,595 - - - 65 6,660

Sales to third parties 13,615 134 325 102 65 14,241





3. RECONCILIATION OF OPERATING LOSS TO NET CASH FLOW FROM OPERATING ACTIVITIES
2004 2003
#'000 #000

Operating loss (8,564) (3,738)
Goodwill write-off 8,396 -
Amortisation of goodwill 542 575
Depreciation 416 892
Loss/(profit) on disposal of assets 10 (76)
Decrease/(increase) in stocks 11 (109)
Decrease/(increase) in related party debtors 40 (34)
Decrease in debtors 1,375 1,695
Increase/(decrease) in creditors 70 (87)

Net cash inflow from operating activities 2,296 (882)


4. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
2004 2003
#000 #000

(Loss)/profit for the financial year (7,684) (2,742)
Shares purchased in year (1,498) -
Shares issued in year 6 -
Opening shareholders' funds 16,906 19,648

Closing shareholders' funds 7,730 16,906




5 EARNINGS/(LOSS) PER SHARE
2004 2003
#'000 #'000
Loss attributable to shareholders ('000s) (7,398) (2,742)

Profit on sale of discontinued operation (959) -
Amortisation of goodwill 542 575
Goodwill write-off 8,396 -
Other exceptional items (64) 514
Operating profit from discontinued 253 1,323
operations

Adjusted profit 770 (330)


Weighted average number of shares ('000's) 153,958 180,460

Basic loss per share (pence) (4.805) (1.519)
Diluted loss per share (pence) (4.805) (1.519)
Adjusted loss per share (pence) 0.500 (0.183)



FRS 14 requires presentation of diluted EPS when a company could be called upon
to issue shares that would decrease net profit or increase net loss per share.
For a loss making company with outstanding share options, net loss per share
would only be increased by the exercise of out-of-the-money options. Since it
seems inappropriate to assume that option holders would act irrationally and
there are no other diluting future share issues, diluted EPS equals basic EPS.



6. DIVIDENDS

Per share 2004 Per share 2003
#000 #000

Proposed final 0.2p 286 - -





7. ANNUAL REPORT AND ACCOUNTS

This statement was approved by the directors on 16th June 2004 and the annual
report and accounts will be posted to shareholders in July 2004. Copies will the
be available from the registered office of the Group at:-

Precedent Drive
Rooksley
Milton Keynes
MK13 8PP

[lee] 16/6/2004 13:21

nice 100k buy showing, reason for the rise

[cockneyrebel] 10/6/2004 21:18

Zinco - for all your shouting at me above, you know jack.

The results are June 17. The August date you gave out is probably the date that the annual reports go out.

I confirmed it with the company last week. The RNS date is the results date according to them.

That's why I kept questioning your post which made no sense whatsoever.

CR

[zinco] 10/6/2004 19:27

oooops it should have said 4th july sorry:-))

regards
mr thick doughnuthead

[zinco] 10/6/2004 16:45

thanks for that lee..:-))

regards
mr doughnuthead

[lee] 10/6/2004 16:22

Zinco - I think the results will be published by RNS at the end of June (wed 30th??) and that the divi date is august. why would they rns next thursday 17th June and then give 7 - 8 weeks wait after that.

The bird you spoke to was probably a bit of a doughnut ;>)

EDIT - I am in for a few

regards

L

[zinco] 22/5/2004 15:55

CR HOW HARD IS IT? JUNE 17TH RNS TO CONFIRM RESULTS DATE 4 AUG IS WHAT SHE SAID...:-)))

[leeblerz] 22/5/2004 15:22

Keeping an edge in the stock market means you have to keep your eyes wide open. What a difference a quarter makes! This means you need to get the fastest, best and right information before someone else does. This free newsletter does just that. You will get an email only when something is on the move or about to move. You will not receive any junk mail. They have a great history and are definitely worth a few minutes of your time. Remember, 20/20 foresight is better than 20/20 hindsight. These shares are traded in the US markets.

[cockneyrebel] 22/5/2004 12:56

You've lost me totally!

Are the chuffing results in June or August?

CR

[zinco] 22/5/2004 10:44

RESULTS DAY MY FRIEND,EXPECT TO SEE SOME NICE BUYING BEFORE RESULTS DAY IMHO...

PS...sorry for shouting i just forget to take off the cap :-)))))

[cockneyrebel] 21/5/2004 22:08

So what's the 4th of Aug got to do with it?

CR

[costapacket] 21/5/2004 20:36

Its been catatonic for me

[cockneyrebel] 21/5/2004 19:56

I'm here - got these in my sleeper portfolio as nothing seemed to be happening - except the price falling and that's happening to lots of stocks for no good reason than selling breeds selling.

Is that right about the results date? I thought a company had to publish its results within 3 months of the year end - that would be June 30. Or do i have that wrong?

CR

[zinco] 21/5/2004 15:49

Back to being on my own:-(((

[zinco] 21/5/2004 14:37

RNS 17th june,results 4th august she thinks,tryed the northern charm she was having none of it "very good start to the year bla bla bla :-))))

[martincc] 19/5/2004 13:07

Two large trades just gone thru, appear to be sells but not moved the price.

[sandbank] 17/5/2004 15:29

GREENGIANT: You can certainly say that again!

[greengiant] 17/5/2004 14:54

sandbank - I would doubt it, the company has issued a trading statement saying everything is hunky dory and in line with expectations. Plus the company has recently won what for it is a significant contract.

Horrible market today, that's all

gg