TIDMIGP
RNS Number : 9267W
Intercede Group PLC
29 November 2010
29 NOVEMBER 2010
INTERCEDE GROUP plc
('Intercede', 'the Company' or 'the Group')
Interim Results for the 6 Months Ended 30 September 2010
Intercede (AIM: IGP.L) is a leading producer of Identity and
Credential Management software, called MyID, which manages the
secure registration, issuance and life cycle of digital identities
for a wide range of uses.
SUMMARY
- 25% increase in sales to GBP3,506,000 (2009:
GBP2,811,000).
- Operating profit before exceptional items of GBP1,204,000
(2009: GBP674,000).
- Profit for the period of GBP1,225,000 (2009: GBP85,000).
- Basic and fully diluted earnings per share of 2.5p (2009:
0.2p).
- Cash generated from operations before exceptional items of
GBP630,000 (2009: GBP762,000).
- Cash balances of GBP4,470,000 at 30 September 2010 (30
September 2009: GBP3,913,000).
- No external borrowings.
- Increased investment in international sales and technical
capabilities to support growing demand for and use of Intercede's
proprietary MyID Identity and Credential Management System.
- Continued expansion of Intercede's customer base in the
US.
- Winning new contracts to supply MyID to government ministries,
banks and business corporations around the world.
Richard Parris, Chairman & Chief Executive of Intercede,
said today:
"We have made excellent progress this year, both commercially
and financially. Intercede MyID is being used by an increasing base
of new and existing customers and the pipeline of future orders is
stronger than it has ever been. The Company is increasingly
profitable, cash generative and financially strong.
"This year represents a tipping point in the evolution of
Intercede's business and is indicative of the strong commercial
progress we continue to make. We look forward to a favourable
outcome for the current financial year and to achieving further
growth thereafter."
Further Information on Intercede MyID
Intercede MyID is the only IDCMS software product that enables
organisations to easily and securely manage the identities of
people and their associated identity credentials within a single,
integrated, workflow driven platform. This includes enabling and
managing: secure registration, biometric capture, application
vetting and approval through to smart card personalisation,
issuance and management.
MyID was the first electronic personalisation product to achieve
compliance with the FIPS-201 standard and is widely deployed by
Federal Agencies, government contractors and other commercial
entities. In particular, it supports the latest standards
applicable for all PIV, PIV-Interoperable and PIV-Compatible
deployments.
It can issue and manage a wide variety of ID's and credentials,
providing customers with a platform that can meet their needs now
and in the future. It is a fully supported commercial off-the-shelf
product that can be quickly deployed for thousands or millions of
users.
About Intercede
Intercede is the producer of the MyID Identity and Credential
Management System (IDCMS).
Intercede MyID technology is being used around the world by
large corporations, governments and banks to manage millions of
identities for employees, citizens and customers. Notable
deployments in the US include 14 Federal Agencies, 1.7m smart cards
in support of the US Transportation Worker Identity Credential
program, two major US financial institutions and 310,000 smart
corporate identity badges for Lockheed Martin and another defense
contractor. In Europe and the Middle East, Intercede MyID is being
deployed in support of government identity health and corporate
employee ID security projects.
For more information visit http://www.intercede.com
ENQUIRIES
Intercede Group plc Tel. +44 (0)1455 558 111 Richard Parris,
Chairman & Chief Executive Andrew Walker, Finance Director
FinnCap Tel. +44 (0)20 7600 1658 Clive Carver Sarah Wharry
Pelham Bell Pottinger Tel. +44 (0)20 7861 3112 Archie Berens
Clare Gilbey
Chairman's Statement
Introduction
I am pleased to report that Intercede has made excellent
progress in the six months ended 30 September 2010. Revenues have
increased by 25% to GBP3,506,000 (2009: GBP2,811,000) and operating
profits have increased from GBP95,000 to GBP1,204,000.
The cash balance as at 30 September 2010 was GBP4,470,000
compared to GBP3,913,000 at 30 September 2009 and GBP4,664,000 at
31 March 2010. As previously reported, the Group effectively
entered the current financial year with a cash balance of
GBP3,917,000 net of post year end exceptional payments relating to
the previous financial year. As a result of strong orders received
during the period, the cash balance has subsequently increased to
in excess of GBP5,000,000 at 29 November 2010.
This year represents a tipping point in the evolution of
Intercede's business and is indicative of the strong commercial
progress we continue to make.
Commercial Progress
Major commercial progress made during the year to date
includes:
-- Large new US Federal Agency selects MyID for a PIV-Compatible
solution.
-- US manufacturing and defense systems company licenses MyID
for the issuance of 160,000 PIV-Compatible cards.
-- Sale of an additional 400,000 MyID licenses to BT for the NHS
Data Spine project bringing the total licenses sold to date to
1,200,000.
-- Securing additional orders totalling in excess of $1.0m for
MyID software licenses, custom development and professional
services in support of the internal identity badge programs at
Lockheed Martin and the US Federal Aviation Authority.
-- Supporting Lockheed Martin on the US Transportation Worker
Identity Credential (TWIC) program which has to date issued 1.7
million cards to US dock workers using MyID.
-- Supplying additional Intercede MyID licenses to Booz Allen
Hamilton, a large US based global management consultancy group, in
support of a PIV-Interoperable employee badging solution.
-- The addition of a major Intergovernmental Organisation (IGO)
to Intercede's customer list.
-- Securing additional orders totalling more than EUR 250,000
from the Road Transportation and Vehicle Licensing Agencies in
Ireland and the Netherlands.
-- The sale of Intercede MyID licenses to an Australian
government customer.
-- The provision of additional services to the State of Kuwait
in support of the National ID card project.
Financial Results
The financial results reflect the continued momentum from the
Group's involvement in an increasing number of projects around the
world. Sales increased by 25% to GBP3,506,000 (2009: GBP2,811,000)
which resulted in an increase in operating profit from GBP95,000 to
GBP1,204,000. There was also a substantial increase in operating
profit before exceptional items from GBP674,000 to
GBP1,204,000.
Staff costs continue to represent the main area of expense
totalling approximately 81% of the total operating costs during the
period. The average number of employees and contractors increased
from 54 to 56 year on year.
A profit for the period of GBP1,225,000 (2009: GBP85,000)
resulted in a basic and fully diluted earnings per share of 2.5p
(2009: 0.2p). The adjusted fully diluted earnings per share, based
upon profit prior to tax and exceptional item of GBP1,225,000
(2009: GBP664,000) is 2.5p (2009: 1.4p).
The cash balance as at 30 September 2010 was GBP4,470,000
compared to GBP3,913,000 at 30 September 2009 and GBP4,664,000 at
31 March 2010. As previously reported, the Group effectively
entered the current financial year with a cash balance of
GBP3,917,000 net of post year end exceptional payments relating to
the previous financial year. Therefore, the Group has generated
GBP630,000 of cash from operations before exceptional items during
the six month period (2009: GBP762,000).
Outlook
The first half of the year has been profitable and cash
generative. As in previous years, the full year outcome will be
dependent upon the timing of receipt of orders and our subsequent
ability to deliver and recognise revenues in accordance with the
Group's accounting policy. Nevertheless, the level and pace of
customer and partner activity is greater than in previous periods
and the sales pipeline is stronger than ever. We therefore remain
confident that our operating performance will continue to meet
expectations.
Richard Parris
Chairman & Chief Executive
29 November 2010
Consolidated Statement of Comprehensive Income
For the period ended 30 September 2010
6 Months ended 6 Months ended Year ended
30 September 30 September 31 March
2010 2009 2010
GBP'000 GBP'000 GBP'000
Continuing operations
Revenue 3,506 2,811 6,194
Cost of sales (8) (73) (66)
_________ _________ _________
Gross profit 3,498 2,738 6,128
Administrative expenses (2,294) (2,643) (5,619)
_________ _________ _________
Operating profit 1,204 95 509
Operating profit before
exceptional item 1,204 674 2,026
Exceptional item - (579) (1,517)
_________ _________ _________
Operating profit 1,204 95 509
------------------------------- --------------- --------------- -----------
Finance income 21 16 27
Finance costs - (26) (26)
_________ _________ _________
Profit before tax 1,225 85 510
Taxation - - (14)
_________ _________ _________
Profit for the period 1,255 85 496
_____ _____ _____
Total comprehensive income
attributable to owners
of the company 1,225 85 496
_____ _____ _____
Earnings per share 2.5p 0.2p 1.1p
(pence) - basic
- diluted 2.5p 0.2p 1.0p
_____ _____ _____
Consolidated Balance Sheet
As at 30 September 2010
As at As at As at
30 September 30 September 31 March
2010 2009 2010
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 152 70 84
Deferred tax 280 280 280
_________ _________ _________
432 350 364
_________ _________ _________
Current assets
Trade and other receivables 1,867 687 954
Cash and cash equivalents 4,470 3,913 4,664
_________ _________ _________
6,337 4,600 5,618
_________ _________ _________
Total assets 6,769 4,950 5,982
_____ _____ _____
Equity
Called up share capital 4,413 4,413 4,413
Share premium account 4,718 4,718 4,718
Other reserves 1,508 1,508 1,508
Retained earnings (6,272) (7,908) (7,497)
_________ _________ _________
Total equity 4,367 2,731 3,142
_________ _________ _________
Current Liabilities
Trade and other payables 773 1,025 1,385
Deferred revenue 1,629 1,194 1,455
_________ _________ _________
2,402 2,219 2,840
_________ _________ _________
Total equity and liabilities 6,769 4,950 5,982
_____ _____ _____
Consolidated Statement of Changes in Equity
As at 30 September 2010
Share Share Other Equity Retained
capital premium reserves reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 31 March
2010 4,413 4,718 1,508 - (7,497) 3,142
Total
comprehensive
income - - - - 1,225 1,225
______ ______ ______ ______ ______ ______
At 30
September
2010 4,413 4,718 1,508 - (6,272) 4,367
___ ___ ___ ___ ___ ___
At 31 March
2009 4,305 2,875 1,508 109 (8,102) 695
Issue of
shares, net
of costs 108 1,843 - (109) 109 1,951
Total
comprehensive
income - - - - 85 85
______ ______ ______ ______ ______ ______
4,413 4,718 1,508 - (7,908) 2,731
___ ___ ___ ___ ___ ___
At 31 March
2009 4,305 2,875 1,508 109 (8,102) 695
Issue of
shares, net
of costs 108 1,843 - (109) 109 1,951
Total
comprehensive
income - - - - 496 496
______ ______ ______ ______ ______ ______
At 31 March
2010 4,413 4,718 1,508 - (7,497) 3,142
___ ___ ___ ___ ___ ___
Consolidated Cash Flow Statement
For the period ended 30 September 2010
As at As at 31
30 September As at 30 March
2010 September 2010
GBP'000 2009 GBP'000 GBP'000
Cash flows from operating
activities
Operating profit 1,204 95 509
Exceptional item - 579 1,517
_________ _________ _________
Operating profit before
exceptional item 1,204 674 2,026
Depreciation 21 15 31
(Increase) / decrease in
trade and other receivables (904) 214 (60)
Increase / (decrease) in
trade and other payables 309 (141) 88
_________ _________ _________
Cash generated from
operations before
exceptional item 630 762 2,085
Exceptional item (747) (549) (1,085)
Taxation - - (14)
_________ _________ _________
Net cash (used by) /
generated from operating
activities (117) 213 986
_________ _________ _________
Investing activities
Interest received 12 18 25
Purchases of property,
plant and equipment (89) (19) (48)
_________ _________ _________
Net cash used by investing
activites (77) (1) (23)
_________ _________ _________
Financing activities
Costs on issue of shares - (10) (10)
_________ _________ _________
Net (decrease) / increase
in cash and cash equivalents (194) 202 953
Cash and cash equivalents
at the beginning of the
period 4,664 3,711 3,711
_________ _________ _________
Cash and cash equivalents
at the end of the period 4,470 3,913 4,664
_____ _____ _____
Notes to the Accounts
For the period ended 30 September 2010
1 Preparation of the interim financial statements
These interim financial statements have been prepared under IFRS
as adopted by the European Union and on the basis of the accounting
policies set out in the Group's Annual Report for the year ended 31
March 2010.
The Group is not required to apply IAS 34 Interim Financial
Reporting at this time.
These interim financial statements have not been audited and do
not constitute statutory accounts as defined in Section 434 of the
Companies Act 2006. Statutory accounts for the year ended 31 March
2010 have been delivered to the Registrar of Companies. The
Auditors' Report on those accounts was unqualified and did not
contain any statement under Section 498 (2) or (3) of the Companies
Act 2006.
The Interim Report will be mailed to shareholders prior to the
end of December 2010 and copies will be available on the website
(www.intercede.com) and at the registered office: Intercede Group
plc, Lutterworth Hall, St Mary's Road, Lutterworth, Leicestershire,
LE17 4PS.
2 Revenue
All of the Group's revenue, operating profits and net assets
originate from operations in the United Kingdom. The Directors
consider that the activities of the Group constitute a single
business segment.
The split of revenue by geographical destination of the end
customer can be analysed as follows:
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2010 2009 2010
GBP'000 GBP'000 GBP'000
United Kingdom 838 795 1,601
Rest of Europe 351 806 1,389
USA 2,032 1,085 2,795
Rest of World 285 125 409
__________ __________ __________
3,506 2,811 6,194
__________ __________ __________
3 Exceptional item
The exceptional item represents the costs associated with
defending a patent infringement lawsuit which was filed by
ActivIdentity in the United States District Court for the Northern
District of California on 1 October 2008. No further legal costs
are expected to arise following the settlement of this claim on 23
March 2010.
4 Taxation
There is no charge for corporation tax due to the availability
of losses brought forward from prior years.
5 Earnings per share
The calculations of earnings per ordinary share are based on the
profit and the weighted average number of ordinary shares in issue
during each period.
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2010 2009 2010
Profit for the period 1,225 85 496
Adjusted profit before tax
and exceptional item 1,225 664 2,027
__________ __________ __________
Number Number Number
Weighted average number of
shares
- basic 48,178,005 44,704,340 46,304,420
- diluted 48,735,005 48,735,005 48,735,005
__________ __________ __________
Pence Pence Pence
Earnings per share - basic 2.5p 0.2p 1.1p
- diluted 2.5p 0.2p 1.0p
- adjusted* 2.5p 1.4p 4.2p
__________ __________ __________
* Adjusted fully diluted earnings per share based on profit
before tax and exceptional item.
6 Dividend
The Directors do not recommend the payment of a dividend.
7 Capital Reduction
On 2 November 2010, the Registrar of Companies issued the
certificate of registration of a court order for the reduction of
share capital of the Company and the cancellation of its share
premium account. The reduction of capital was approved by
shareholders at the Company's AGM held on 24 September 2010.
The effect of the capital reduction is to eliminate the deficit
showing as profit and loss account reserves, thereby facilitating
the payment of a dividend as and when the Board considers this to
be appropriate.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BFBPTMBMTBLM
Intercede (LSE:IGP)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Intercede (LSE:IGP)
Historical Stock Chart
Von Jul 2023 bis Jul 2024
