TIDMTTS
RNS Number : 2061D
Total Systems PLC
27 November 2009
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27 November 2009
TOTAL SYSTEMS plc
Unaudited Interim Results for the half year ended 30 September 2009
Total Systems plc ("Total" or "the Company"), suppliers of cost effective,
flexible, software systems for the financial services industry, primarily in the
insurance and warranty sectors, announces its interim results for the half year
ended 30 September 2009.
Commenting on the Company's results Terence Bourne, Chairman, said:
"During the first six months of the financial year the Company has faced very
difficult trading conditions which have resulted in a loss for the half year.
Nevertheless the sales and marketing team has identified new prospects in the
market and is pursuing a number of sales opportunities. The development of new
products and the skills of our staff remain key investment areas in preparation
for the economic recovery."
Financial Highlights
+---------------------+--+-----------+--+--------------------------------------------------+
| * Turnover | | GBP1.782m | | (2008 GBP 2.141m) |
+---------------------+--+-----------+--+--------------------------------------------------+
| * (Loss)/profit | | GBP | | (2008: GBP202k) |
| before tax | | (444k) | | |
+---------------------+--+-----------+--+--------------------------------------------------+
| * Basic | | (3.08p) | | (2008: 1.39) |
| (loss)/earnings per | | | | |
| share | | | | |
+---------------------+--+-----------+--+--------------------------------------------------+
| * Interim | | | | (2008: Nil) |
| dividend | | Nil | | |
+---------------------+--+-----------+--+--------------------------------------------------+
| * Gearing | | | | (2008: Nil) |
| | | Nil | | |
+---------------------+--+-----------+--+--------------------------------------------------+
| * Net assets per | | | | (2008: 40.23p) |
| share | | 40.62p | | |
+---------------------+--+-----------+--+--------------------------------------------------+
| * Cash per share | | | | (2008: 28.96p) |
| | | 32.06p | | |
+---------------------+--+-----------+--+--------------------------------------------------+
Product Summary
Ultima, the complete insurance and warranty solution, continues to bring
significant business benefits to clients including:
* Low cost of ownership.
* Integrated solution.
* Flexible and designed for change with Business Configurator.
* Easy integration with external systems.
insureTracc, in our opinion, the most innovative solution for motor insurance on
the market today. In association with one of the world's leading mobile
communication providers and using the latest telematics technology, insureTrac
provides insurers with a comprehensive view of their customers' driving habits
and driving styles as well as instant notification of incidents. Fully
integrated to the back office system, insureTrac facilitates automatic
underwriting and claims handling. Typically, insurers should expect a minimum
10% reduction in claims costs.
bluescape:rating - new product just launched. The bluescape:rating engine is the
first component of Total Systems brand new .NET solution. The functionality in
the new rating engine rivals all other rating engines currently available in the
insurance market particularly in terms of its agility, integration ability and
performance. Designed and built as a fully SOA compliant n-tier .NET application
bluescape:rating uses established next generation technologies to provide
flexibility, consistent results, performance, scalability and skill
set rationalisation.
Services - Specialist insurance consultancy, business intelligence, management
information systems, compliance advice and document retention assistance can be
supplied. The Company offers a full range of business support, consultancy and
system integration services and acts as a value added reseller for related
applications to provide the best possible support for our customers. A hosted
service is available for those companies who wish to use Ultima's business
functionality without investing in IT infrastructure.
Regarding the Company's current trading and outlook, Terence Bourne commented:
"The trading outlook for the second half of the financial year is very
unpredictable but the effects of our cost reduction programme will crystallise
during this period. In this challenging market place we remain focussed on cash
conservation, ensuring that costs are kept under tight control, seeking new
clients and positioning the business to compete effectively.
The Company's finances remain robust with no debt and strong cash balances. The
Board will continue to initiate all measures necessary to ensure the long-term
prospects of the Company."
E-mail: ir@totalsystems.co.uk web site: www.totalsystems.co.uk
Enquiries:
Terence Bourne, Chairman Total Systems plc 020 7294 4888
Granville Harris, Finance Director Total Systems plc 020 7294 4888
Notes for Editors:
Based in the City of London Total provides cost effective flexible software
systems for the financial services sector, primarily in the insurance and
warranty sectors, as well as complementary IT consultancy, development,
integration and support services.
The Company has a full listing on the London Stock Exchange.
Significant investment has been made by the Company in developing Ultima, the
general insurance system for personal and commercial lines. Examples of Total's
clients for Ultima include Capita, Denplan (part of the Global AXA Group), DSG
International, HSBC Insurance and Zurich Insurance Company (Navigators &
General).
Total Systems provide customer-centric systems for the General Insurance market.
Total's flagship product Ultima is a complete insurance back-office solution
accommodating all lines of business and products. Ultima is a truly
multi-product, multi-company, multi-currency solution, proven over many years of
successful implementations with Insurers and Warranty providers. Our product
range has now been expanded with insureTrac, bluescape and the offering of
specialist insurance consultancy services.
One of the key factors differentiating Ultima from its competitors is the
Business Configurator tool. This provides an unrivalled capability to deliver
new products to market without the need for IT development. Not only does
Business Configurator dramatically reduce the time it takes to introduce new
products, or change existing ones, but it also significantly reduces cost of
ownership. The level of cost savings that can be made from the introduction of
Ultima can be considerable. It is one of the few products available in the
market place that allows users to comfortably live with a constantly changing
business environment in a cost effective manner while still providing a robust
and scaleable platform for future growth.
Our primary focus is to deliver exactly what the market needs when the market
wants it, and we are constantly adapting and developing our products to meet
demand. In addition to listening to our customers and expanding our product
roadmap, we continue to seek business partners that add additional value through
new technology and innovation.
Chairman's Statement
Summary
During the first six months of the financial year the Company has faced very
difficult trading conditions which have resulted in a loss for the half year.
Nevertheless the sales and marketing team has identified new prospects in the
market and is pursuing a number of sales opportunities. The development of new
products and the skills of our staff remain key investment areas in preparation
for the economic recovery.
Results
Revenue for the half year was GBP1,782,217 (2008: GBP2,141,054) resulting in a
loss before tax of GBP443,805 (2008 profit: GBP201,636) equivalent to a loss per
share of 3.08p (2008: profit per share 1.39p).
Financial
Zero gearing and net assets of 40.62p per share (2008: 40.23p) of which 32.06p
per share (2008: 28.96p) is represented by cash continues to demonstrate our
financial strength during this difficult trading period.
Dividend
The Board looks very carefully at the issue of whether or not to propose a
dividend but we feel that it is in the interests of our shareholders that we
conserve resources while we continue to invest in the business. Consequently the
Board does not propose payment of an interim dividend.
Strategy
Total Systems is committed to the financial services market. Our strategy is to
provide a growing range of software products together with support and
consulting services to enable financial services companies to rapidly launch new
products, take advantage of new channels to market, reduce costs and improve
efficiency. All our efforts are aimed at producing software solutions that
deliver impeccable service to our clients.
We continued our program of product development throughout the period,
delivering a number of product enhancements. It is intended to continue our
investment program, albeit at more conservative levels in the short term, in
order to exploit the opportunities that the sales and marketing team has
identified.
Our virtualisation skills enable us to build, deploy and manage clients'
platforms with a much higher level of complexity, increasing the range of
managed services that we provide. While the Company is able to provide SaaS
(Software as a Service) solutions through BPO (Business Process Outsourcing)
partners, progress to date is disappointing.
Products
Total Systems provides customer-centric systems for the General Insurance
market. Ultima is a customer oriented policy management system for insurance and
warranty administration encompassing quotations, underwriting, claims,
accounting, broker management, management information and reporting. Details of
our products and services are given in the overview.
Targeted at insurers and warranty providers Ultima seeks to facilitate maximum
efficiency while ensuring regulatory compliance and enabling clients to quickly
adapt to changing business conditions. Ultima can run in excess of 30 lines of
business concurrently and is noted for its flexibility and reliability. The
Business Configurator facility enables clients to make their own enhancements
and launch new and original products without the need for programming. All these
features combine to make Ultima easily configurable to meet client's specific
requirements, for both large and small scale applications, while delivering fast
implementation compared to our competitors.
Our bluescape rating product has just been launched and is the first in a line
of new components using state of the art technology specifically designed with
the needs of today's modern insurers in mind. Initial feedback has been very
positive with both new and existing customers expressing a keen interest in
adopting this new technology which should enable insurers to exploit new markets
and strategies more effectively. We anticipate that a new Quote Engine will be
released to market in the first half of 2010 followed by a full claims solution.
Market place
The economic downturn has presented significant challenges across all industries
with companies looking to improve efficiencies and reduce costs in an attempt to
ride out the global financial storm. As a result IT expenditure and budgets have
received significant focus but solely with the view of reducing or deferring
investment costs even though improving operational efficiencies would achieve
greater savings in the future.
In the present economic climate gaining new clients is proving particularly
tough and we are concentrating on maintaining our financial stability so that we
are well placed when the inevitable upturn arrives. It is comforting for
customers to know that we have a more stable financial platform than the vast
majority of our competitors. Existing clients as well as sales prospects can
have confidence that we are financially strong and will be there to support them
in the future.
While we are experiencing a drop in revenues, the number of prospects we are
working with give us cause for optimism.
Environmental and social
The Company operates from a single site in premises it owns in central London.
Every care is taken to ensure that we operate in an environmentally friendly way
within the limitations imposed by our location and the nature of our operations.
In regard to its employees and the local community the Company allows employees
time to take part in their own social responsibilities as necessary.
Operations
The continuing global recession has resulted in a drop off in demand for
software and services. Consequently our operational costs have been reviewed and
a cost reduction programme has recently been implemented. The savings achieved
will be reflected in the second half of the financial year.
Excellent support has been given to all our clients. Our technical team has
supplied specific enhancements and upgrades to all our customers in a timely and
professional manner. This team now contains high level Microsoft expertise and
is preparing to bring new products to the market.
Personnel
I am continually impressed by the outstanding dedication of our people and the
high levels of service that the Company provides to its clients. Our impressive
portfolio of blue chip clients is a reflection of the quality of our commitment
and talent. On behalf of the Board I would like to thank all staff for their
efforts and hard work over the last very difficult and demanding six months.
Current trading and outlook
The trading outlook for the second half of the financial year is very
unpredictable but the effects of our cost reduction programme will crystallise
during this period. In this challenging market place we remain focussed on cash
conservation, ensuring that costs are kept under tight control, seeking new
clients and positioning the business to compete effectively.
The Company's finances remain robust with no debt and strong cash balances. The
Board will continue to initiate all measures necessary to ensure the long-term
prospects of the Company.
Terence Bourne
Chairman
27 November 2009
TOTAL SYSTEMS plc
Consolidated Income Statement
for the half year ended 30 September 2009
+------------------------------------+------+-------------------+-----------------+----------------+
| | | Unaudited | Unaudited | Audited |
+------------------------------------+------+-------------------+-----------------+----------------+
| | | 6 Months | 6 Months | 12 Months |
+------------------------------------+------+-------------------+-----------------+----------------+
| | | ended | ended | ended |
+------------------------------------+------+-------------------+-----------------+----------------+
| | | 30 September | 30 September | 31 March |
+------------------------------------+------+-------------------+-----------------+----------------+
| |Note | 2009 | 2008 | 2009 |
+------------------------------------+------+-------------------+-----------------+----------------+
| | | GBP | GBP | GBP |
+------------------------------------+------+-------------------+-----------------+----------------+
| Continuing operations | | | | |
+------------------------------------+------+-------------------+-----------------+----------------+
| | | | | |
+------------------------------------+------+-------------------+-----------------+----------------+
| Revenue | 2 | 1,782,217 | 2,141,054 | 4,878,427 |
+------------------------------------+------+-------------------+-----------------+----------------+
| | | | | |
+------------------------------------+------+-------------------+-----------------+----------------+
| External charges | | (187,009) | (83,594) | (155,709) |
+------------------------------------+------+-------------------+-----------------+----------------+
| | | | | |
+------------------------------------+------+-------------------+-----------------+----------------+
| Staff costs | | (1,697,652) | (1,562,894) | (3,357,922) |
+------------------------------------+------+-------------------+-----------------+----------------+
| | | | | |
+------------------------------------+------+-------------------+-----------------+----------------+
| Depreciation | | (70,264) | (67,336) | (136,703) |
+------------------------------------+------+-------------------+-----------------+----------------+
| | | | | |
+------------------------------------+------+-------------------+-----------------+----------------+
| Share based payments | | (13,992) | (16,489) | (32,978) |
+------------------------------------+------+-------------------+-----------------+----------------+
| | | | | |
+------------------------------------+------+-------------------+-----------------+----------------+
| Exceptional operating costs | | - | - | (145,027) |
+------------------------------------+------+-------------------+-----------------+----------------+
| | | | | |
+------------------------------------+------+-------------------+-----------------+----------------+
| Other operating charges | | (263,224) | (279,881) | (556,785) |
+------------------------------------+------+-------------------+-----------------+----------------+
| | | ----------------- | -------------- | -------------- |
+------------------------------------+------+-------------------+-----------------+----------------+
| Operating (loss)/profit | | (449,924) | 130,860 | 493,303 |
+------------------------------------+------+-------------------+-----------------+----------------+
| | | | | |
+------------------------------------+------+-------------------+-----------------+----------------+
| Interest receivable and similar | | 6,119 | 70,776 | 116,742 |
| income | | | | |
+------------------------------------+------+-------------------+-----------------+----------------+
| | | | | |
+------------------------------------+------+-------------------+-----------------+----------------+
| | | -------------- | ------------- | ------------- |
+------------------------------------+------+-------------------+-----------------+----------------+
| (Loss)/profit before taxation | | (443,805) | 201,636 | 610,045 |
+------------------------------------+------+-------------------+-----------------+----------------+
| | | | | |
+------------------------------------+------+-------------------+-----------------+----------------+
| Tax credit/(charge) | | 119,562 | (55,541) | (163,767) |
+------------------------------------+------+-------------------+-----------------+----------------+
| | | --------------- | -------------- | ------------- |
+------------------------------------+------+-------------------+-----------------+----------------+
| (Loss)/profit after taxation | | (324,243) | 146,095 | 446,278 |
+------------------------------------+------+-------------------+-----------------+----------------+
| | | --------------- | --------------- | ------------- |
+------------------------------------+------+-------------------+-----------------+----------------+
| | | | | |
+------------------------------------+------+-------------------+-----------------+----------------+
| Basic (loss)/profit per ordinary | 5 | (3.08p) | 1.39p | 4.24p |
| share | | | | |
+------------------------------------+------+-------------------+-----------------+----------------+
| | | | | |
+------------------------------------+------+-------------------+-----------------+----------------+
| Diluted (loss)/profit per ordinary | | (3.08p) | 1.39p | 4.24p |
| share | | | | |
+------------------------------------+------+-------------------+-----------------+----------------+
There are no recognised income or expenses for the current period or prior year
other than as stated above.
As a consequence a statement of recognised income and expenses is not presented.
Consolidated Balance Sheet
at 30 September 2009
+-----------------------------+------------+-------------------+------------------+-------------------+
| | | Unaudited | Unaudited | Audited |
+-----------------------------+------------+-------------------+------------------+-------------------+
| | | as at | as at | as at |
+-----------------------------+------------+-------------------+------------------+-------------------+
| | | 30 September | 30 September | 31 March |
+-----------------------------+------------+-------------------+------------------+-------------------+
| | | 2009 | 2008 | 2009 |
+-----------------------------+------------+-------------------+------------------+-------------------+
| | Note | GBP | GBP | GBP |
+-----------------------------+------------+-------------------+------------------+-------------------+
| ASSETS | | | | |
+-----------------------------+------------+-------------------+------------------+-------------------+
| | | | | |
+-----------------------------+------------+-------------------+------------------+-------------------+
| Non-current assets | | | | |
+-----------------------------+------------+-------------------+------------------+-------------------+
| Property, plant & equipment | | 853,022 | 871,261 | 913,829 |
+-----------------------------+------------+-------------------+------------------+-------------------+
| Deferred tax assets | | 124,492 | - | 4,930 |
+-----------------------------+------------+-------------------+------------------+-------------------+
| | | ---------------- | -------------- | --------------- |
+-----------------------------+------------+-------------------+------------------+-------------------+
| Total non-current assets | | 977,514 | 871,261 | 918,759 |
+-----------------------------+------------+-------------------+------------------+-------------------+
| | | ---------------- | ---------------- | ---------------- |
+-----------------------------+------------+-------------------+------------------+-------------------+
| Current assets | | | | |
+-----------------------------+------------+-------------------+------------------+-------------------+
| Trade and other receivables | | 1,151,074 | 1,388,699 | 1,447,326 |
+-----------------------------+------------+-------------------+------------------+-------------------+
| Cash and cash equivalents | | 3,345,063 | 3,046,492 | 3,354,694 |
+-----------------------------+------------+-------------------+------------------+-------------------+
| | | ------------- | -------------- | ---------------- |
+-----------------------------+------------+-------------------+------------------+-------------------+
| Total current assets | | 4,496,137 | 4,435,191 | 4,802,020 |
+-----------------------------+------------+-------------------+------------------+-------------------+
| | | -------------- | --------------- | ----------------- |
+-----------------------------+------------+-------------------+------------------+-------------------+
| TOTAL ASSETS | | 5,473,651 | 5,306,452 | 5,720,779 |
+-----------------------------+------------+-------------------+------------------+-------------------+
| | | ----------------- | --------------- | ---------------- |
+-----------------------------+------------+-------------------+------------------+-------------------+
| LIABILITIES | | | | |
+-----------------------------+------------+-------------------+------------------+-------------------+
| | | | | |
+-----------------------------+------------+-------------------+------------------+-------------------+
| Current liabilities | | | | |
+-----------------------------+------------+-------------------+------------------+-------------------+
| Trade and other payables | | (1,079,520) | (956,376) | (994,997) |
+-----------------------------+------------+-------------------+------------------+-------------------+
| Current tax liabilities | | (177,346) | (114,966) | (177,346) |
+-----------------------------+------------+-------------------+------------------+-------------------+
| | | -------------- | ------------ | ------------- |
+-----------------------------+------------+-------------------+------------------+-------------------+
| Total current liabilities | | (1,256,866) | (1,071,342) | (1,172,343) |
+-----------------------------+------------+-------------------+------------------+-------------------+
| | | -------------- | ---------------- | --------------- |
+-----------------------------+------------+-------------------+------------------+-------------------+
| Non-current liabilities | | | | |
+-----------------------------+------------+-------------------+------------------+-------------------+
| Deferred tax liabilities | | - | (3,346) | - |
+-----------------------------+------------+-------------------+------------------+-------------------+
| | | ------------- | ---------------- | ------------- |
+-----------------------------+------------+-------------------+------------------+-------------------+
| TOTAL LIABILITIES | | (1,256,866) | (1,074,688) | (1,172,343) |
+-----------------------------+------------+-------------------+------------------+-------------------+
| | | -------------- | -------------- | -------------- |
+-----------------------------+------------+-------------------+------------------+-------------------+
| NET ASSETS | | 4,216,785 | 4,231,764 | 4,548,436 |
+-----------------------------+------------+-------------------+------------------+-------------------+
| | | ------------- | --------------- | -------------- |
+-----------------------------+------------+-------------------+------------------+-------------------+
| SHAREHOLDERS' EQUITY | | | | |
+-----------------------------+------------+-------------------+------------------+-------------------+
| Issued share capital | 8 | 525,978 | 525,978 | 525,978 |
+-----------------------------+------------+-------------------+------------------+-------------------+
| Share premium | 8 | 83,047 | 83,047 | 83,047 |
+-----------------------------+------------+-------------------+------------------+-------------------+
| Own shares in treasury | 8 | (21,400) | - | - |
+-----------------------------+------------+-------------------+------------------+-------------------+
| Retained earnings | 8 | 3,541,122 | 3,564,357 | 3,864,609 |
+-----------------------------+------------+-------------------+------------------+-------------------+
| Stock option reserve | 8 | 88,038 | 58,382 | 74,802 |
+-----------------------------+------------+-------------------+------------------+-------------------+
| | | ---------------- | --------------- | --------------- |
+-----------------------------+------------+-------------------+------------------+-------------------+
| TOTAL EQUITY | 8 | 4,216,785 | 4,231,764 | 4,548,436 |
+-----------------------------+------------+-------------------+------------------+-------------------+
| | | --------------- | ---------------- | ----------------- |
+-----------------------------+------------+-------------------+------------------+-------------------+
Consolidated Cash Flow Statement
for the half year ended 30 September 2009
+--------------------------------+--------+------------------+------------------+-------------------+
| | | Unaudited | Unaudited | Audited |
+--------------------------------+--------+------------------+------------------+-------------------+
| | | 6 Months | 6 Months | 12 Months |
+--------------------------------+--------+------------------+------------------+-------------------+
| | | Ended | ended | ended |
+--------------------------------+--------+------------------+------------------+-------------------+
| | | 30 September | 30 September | 31 March |
+--------------------------------+--------+------------------+------------------+-------------------+
| | Note | 2009 | 2008 | 2009 |
+--------------------------------+--------+------------------+------------------+-------------------+
| | | GBP | GBP | GBP |
+--------------------------------+--------+------------------+------------------+-------------------+
| Operating activities | | | | |
+--------------------------------+--------+------------------+------------------+-------------------+
| Cash received from customers | | 2,404,805 | 2,801,921 | 6,007,065 |
+--------------------------------+--------+------------------+------------------+-------------------+
| Cash payments to suppliers | | (473,551) | (454,227) | (1,094,688) |
+--------------------------------+--------+------------------+------------------+-------------------+
| Cash payments to employees | | (1,040,941) | (924,097) | (1,976,131) |
+--------------------------------+--------+------------------+------------------+-------------------+
| Cash paid for PAYE and | | (632,598) | (586,438) | (1,223,597) |
| National Insurance | | | | |
+--------------------------------+--------+------------------+------------------+-------------------+
| Cash paid for VAT | | (228,817) | (238,759) | (646,964) |
+--------------------------------+--------+------------------+------------------+-------------------+
| Other business payments | | (13,791) | (14,741) | (50,400) |
+--------------------------------+--------+------------------+------------------+-------------------+
| | | --------------- | --------------- | ----------------- |
+--------------------------------+--------+------------------+------------------+-------------------+
| Cash inflow from operating | 7 | 15,107 | 583,659 | 1,015,285 |
| activities | | | | |
+--------------------------------+--------+------------------+------------------+-------------------+
| | | | | |
+--------------------------------+--------+------------------+------------------+-------------------+
| Income taxes paid | | - | - | (54,122) |
+--------------------------------+--------+------------------+------------------+-------------------+
| | | -------------- | -------------- | --------------- |
+--------------------------------+--------+------------------+------------------+-------------------+
| Net cash inflow from operating | | 15,107 | 583,659 | 961,163 |
| activities | | | | |
+--------------------------------+--------+------------------+------------------+-------------------+
| | | -------------- | -------------- | -------------- |
+--------------------------------+--------+------------------+------------------+-------------------+
| Cash flows from investing | | | | |
| activities | | | | |
+--------------------------------+--------+------------------+------------------+-------------------+
| | | | | |
+--------------------------------+--------+------------------+------------------+-------------------+
| Interest received | | 6,119 | 70,776 | 116,742 |
+--------------------------------+--------+------------------+------------------+-------------------+
| Receipts on sale of assets | | - | - | 20 |
+--------------------------------+--------+------------------+------------------+-------------------+
| Purchase of plant and | | (9,457) | (17,416) | (132,704) |
| equipment | | | | |
+--------------------------------+--------+------------------+------------------+-------------------+
| | | ------------- | -------------- | --------------- |
+--------------------------------+--------+------------------+------------------+-------------------+
| Net cash (outflow)/inflow from | | (3,338) | 53,360 | (15,942) |
| investing activities | | | | |
+--------------------------------+--------+------------------+------------------+-------------------+
| | | -------------- | --------------- | -------------- |
+--------------------------------+--------+------------------+------------------+-------------------+
| Cash flows from financing | | | | |
| activities | | | | |
+--------------------------------+--------+------------------+------------------+-------------------+
| | | | | |
+--------------------------------+--------+------------------+------------------+-------------------+
| Purchase of own shares into | | (21,400) | - | - |
| treasury | | | | |
+--------------------------------+--------+------------------+------------------+-------------------+
| Consideration for grant of | | - | 37 | 37 |
| share options | | | | |
+--------------------------------+--------+------------------+------------------+-------------------+
| | | ------------ | ------------ | ------------- |
+--------------------------------+--------+------------------+------------------+-------------------+
| Net cash (outflow)/inflow from | | (21,400) | 37 | 37 |
| financing activities | | | | |
+--------------------------------+--------+------------------+------------------+-------------------+
| | | ------------ | ------------ | ------------- |
+--------------------------------+--------+------------------+------------------+-------------------+
| Net change in cash and cash | | (9,631) | 637,056 | 945,258 |
| equivalents | | | | |
+--------------------------------+--------+------------------+------------------+-------------------+
| | | | | |
+--------------------------------+--------+------------------+------------------+-------------------+
| Opening cash and cash | | 3,354,694 | 2,409,436 | 2,409,436 |
| equivalents | | | | |
+--------------------------------+--------+------------------+------------------+-------------------+
| | | -------------- | --------------- | ---------------- |
+--------------------------------+--------+------------------+------------------+-------------------+
| Closing cash and cash | | 3,345,063 | 3,046,492 | 3,354,694 |
| equivalents | | | | |
+--------------------------------+--------+------------------+------------------+-------------------+
| | --------------- | ---------------- | ---------------- |
+--------------------------------+--------+------------------+------------------+-------------------+
Notes to the Interim Report
for the half year ended 30 September 2009
1. Basis of preparation
These condensed half year financial statements do not constitute statutory
accounts as defined in section 434 of the Companies Act 2006 and have not been
audited or reviewed by auditors pursuant to the Auditing Practices Board
guidance on Review of Interim Financial Information. The abridged information
for the 12 months ended 31 March 2009 has been extracted from the Group's
statutory accounts for that period, which have been filed with the Registrar of
Companies. The auditors report on the Group's accounts for that period were
unqualified and did not contain a statement under Section 237(2) or Section
237(3) of the Companies Act 1985. Prior half year comparatives remain unaudited.
The condensed financial statements have been prepared in accordance with
International Accounting Standard 34 (IAS 34) "Interim Financial Reporting". The
accounting policies followed are in accordance with IFRS and are consistent with
those applied in prior periods. A full list of the accounting policies under
IFRS was disclosed in the Group's statutory accounts for the year ended 31 March
2009. Copies of the Annual Report are available from the Company's website
(www.totalsystems.co.uk) or from the registered office.
This Interim Report was authorised for issue by the Directors on 27 November
2009.
2. Revenue
The Group's revenue is derived from the writing and supply of its computer
software and supply of third party software both with related support services.
The origin and destination of revenue and profit are the same; wholly in the
United Kingdom. A segmentation of major revenue streams is shown below but a
segmentation of operating profit is not meaningful and is not shown. All
activities derive from continuing operations.
+-------------------------------------------------+-----------------+---------------+----------------+
| | Unaudited | Unaudited | Audited |
+-------------------------------------------------+-----------------+---------------+----------------+
| | 6 Months | 6 Months | 12 Months |
+-------------------------------------------------+-----------------+---------------+----------------+
| | ended | ended | ended |
+-------------------------------------------------+-----------------+---------------+----------------+
| | 30 September | 30 | 31 March |
| | | September | |
+-------------------------------------------------+-----------------+---------------+----------------+
| | 2009 | 2008 | 2009 |
+-------------------------------------------------+-----------------+---------------+----------------+
| | GBP | GBP | GBP |
+-------------------------------------------------+-----------------+---------------+----------------+
| Time & materials | 1,163,793 | 1,668,354 | 4,043,313 |
+-------------------------------------------------+-----------------+---------------+----------------+
| Own software licences and maintenance | 324,866 | 302,233 | 535,844 |
+-------------------------------------------------+-----------------+---------------+----------------+
| Third party software licences and maintenance | 293,558 | 170,467 | 299,270 |
+-------------------------------------------------+-----------------+---------------+----------------+
| | --------------- | ------------- | -------------- |
+-------------------------------------------------+-----------------+---------------+----------------+
| Total revenue | 1,782,217 | 2,141,054 | 4,878,427 |
+-------------------------------------------------+-----------------+---------------+----------------+
| | -------------- | ------------- | ------------- |
+-------------------------------------------------+-----------------+---------------+----------------+
3. Interim management report/business review
The Group's principal activities during the year were the writing and supply of
its computer software and supply of third party software, both with related
support services.
Key performance indicators (KPI's) are used to monitor business performance. The
level of chargeable hours as a percentage of total available chargeable hours
for all potential chargeable staff gives an indication of the level of
efficiency being achieved. Efficiency was 26.9% for the half year (2008: 41.3%).
Further the level of product development is monitored as a percentage of total
available chargeable hours for all potential available staff giving an
indication of the effort placed on product development. This percentage was
41.0% for the half year (2008: 28.9%). Taking both KPI's together a productivity
percentage of 67.9% was achieved (2008: 70.2%).
In addition a traditional management accounts package is completed every month
and includes a profit and loss statement with forecasts for the next reporting
period.
Given the nature of the business the Board believes that these KPI's are
sufficient to ensure that appropriate action can be taken as necessary.
Further analysis of the development and performance of the business is contained
in the Chairman's Statement under the heading "Summary" and "Operations". A
review of the principal risks and uncertainties facing the group is contained in
the Chairman's Statement under the headings "Market place", "Strategy" and
"Current trading and outlook". The section of the Chairman's statement headed
"Environment and social" should also be read in regard to the interim management
report/business review.
4. Dividends
No interim dividend has been declared.
5. Loss/earnings per ordinary share
The calculation of basic and diluted loss/profit per share is based on a loss
after taxation of GBP324,243(2008: profit GBP146,095) and a weighted average of
10,518,033 shares (2008: 10,519,553) in issue during the period.
6. Interim report to shareholders
It is intended to post this Interim Report to shareholders on 28 November 2009.
Copies of the Interim Report will also be available from the Registered Office
of the Group at 394 City Road, London, EC1V 2QA and the Company website.
7. Reconciliation of operating (loss)/profit to cash inflow from operating
activities
+-------------------------------------------------+--------------------+--------------------+------------------+
| | Unaudited | Unaudited | Audited |
+-------------------------------------------------+--------------------+--------------------+------------------+
| | 6 | 6 | 12 |
| | Months | Months | Months |
+-------------------------------------------------+--------------------+--------------------+------------------+
| | ended | ended | ended |
+-------------------------------------------------+--------------------+--------------------+------------------+
| | 30 September | 30 | 31 |
| | | September | March |
+-------------------------------------------------+--------------------+--------------------+------------------+
| | 2009 | 2008 | 2009 |
+-------------------------------------------------+--------------------+--------------------+------------------+
| | GBP | GBP | GBP |
+-------------------------------------------------+--------------------+--------------------+------------------+
| Operating (loss)/profit | (449,924) | 130,860 | 493,303 |
+-------------------------------------------------+--------------------+--------------------+------------------+
| Depreciation charges | 70,264 | 67,336 | 136,703 |
+-------------------------------------------------+--------------------+--------------------+------------------+
| Loss on sale of assets | - | - | 3,333 |
+-------------------------------------------------+--------------------+--------------------+------------------+
| Decrease in receivables | 296,252 | 238,967 | 180,340 |
+-------------------------------------------------+--------------------+--------------------+------------------+
| Increase in payables | 84,523 | 130,007 | 168,628 |
+-------------------------------------------------+--------------------+--------------------+------------------+
| Charge for share based payments | 13,992 | 16,489 | 32,978 |
+-------------------------------------------------+--------------------+--------------------+------------------+
| | ------------ | ----------- | ----------- |
+-------------------------------------------------+--------------------+--------------------+------------------+
| Cash inflow from operating activities | 15,107 | 583,659 | 1,015,285 |
+-------------------------------------------------+--------------------+--------------------+------------------+
| | ------------ | ------------ | ------------ |
+-------------------------------------------------+--------------------+--------------------+------------------+
8. Changes in company and consolidated equity shareholders' funds
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| | Issued | Share | | Own | Retained | Stock | Total |
| | share | premium | | shares | earnings | option | equity |
| | capital | | | in | | reserve | |
| | | | | treasury | | | |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| | GBP | GBP | | GBP | GBP | GBP | GBP |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| | ---------- | ---------- | | ---------- | ---------- | --------- | ----------- |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| As at 1 April 2008 | 525,978 | 83,010 | | - | 3,407,337 | 52,818 | 4,069,143 |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| | ---------- | ---------- | | ---------- | ---------- | --------- | ---------- |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| Profit after tax for the half | - | - | | - | 146,095 | - | 146,095 |
| year | | | | | | | |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| Share options lapsed | - | - | | - | 10,925 | (10,925) | - |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| Share based payments | - | - | | - | - | 16,489 | 16,489 |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| Consideration for grant of | - | 37 | | - | - | - | 37 |
| share options | | | | | | | |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| | ---------- | ---------- | | --------- | ------------ | --------- | ---------- |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| As at 30 September 2008 | 525,978 | 83,047 | | - | 3,564,357 | 58,382 | 4,231,764 |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| | ---------- | ---------- | | ---------- | ---------- | --------- | ----------- |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| Profit after tax for the half | - | - | | - | 300,183 | - | 300,183 |
| year | | | | | | | |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| Share options lapsed | - | - | | - | 69 | (69) | - |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| Share based payments | - | - | | - | - | 16,489 | 16,489 |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| | --------- | ---------- | | ---------- | ------------ | --------- | ------------ |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| As at 31 March 2009 | 525,978 | 83,047 | | - | 3,864,609 | 74,802 | 4,548,436 |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| | ---------- | ---------- | | ---------- | ---------- | --------- | ---------- |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| Loss after tax for the half | - | - | | - | (324,243) | - | (324,243) |
| year | | | | | | | |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| Share options lapsed | - | - | | - | 756 | (756) | - |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| Share based payments | - | - | | - | - | 13,992 | 13,992 |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| Purchase of own shares into | - | - | | (21,400) | - | - | (21,400) |
| treasury | | | | | | | |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| | ---------- | -------- | | ---------- | ----------- | --------- | ------------ |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| | | | | | | | |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| As at 30 September 2009 | 525,978 | 83,047 | | (21,400) | 3,541,122 | 88,038 | 4,216,785 |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
| | ---------- | ---------- | | ---------- | ------------ | --------- | ------------ |
+-------------------------------+------------+------------+--+------------+--------------+-----------+--------------+
9. Directors' responsibility statement
The Directors confirm that, to the best of their knowledge:
i. The condensed set of financial statements have been
prepared in accordance with IAS 34 as adopted by the European Union; and
ii. The interim management report/business review includes a fair review of the
information required by the FSA's Disclosure
and Transparency Rules
(4.2.7 R and 4.2.8 R).
The Directors of Total Systems plc and their functions are: T P Bourne (Chairman
and Managing Director), G W Harris (Finance Director and Company Secretary),
Clive Dutton (Operations Director), Arthur Weber (Technical Director) and P J
Delaney (Non Executive Director).
Forward-looking Statements
Certain statements in this announcement are forward-looking statements. By their
nature, forward-looking statements involve a number of risks, uncertainties or
assumptions that could cause actual results or events to differ materially from
those expressed or implied by the forward-looking statements. These risks,
uncertainties or assumptions could adversely affect the outcome and financial
effects of the plans and events described herein. Forward-looking statements
contained in this announcement regarding past trends or activities should not be
taken as a representation that such trends or activities will continue in the
future. You should not place undue reliance on forward-looking statements.
The Company is under no obligation to update or keep current the forward-looking
statements contained in this announcement or to correct any inaccuracies which
may become apparent in such forward-looking statements.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FDLFLKFBEFBX
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