BOND INTERNATIONAL SOFTWARE PLC INTERIM RESULTS

Transcription

1 FOR IMMEDIATE RELEASE 9 September 2003 BOND INTERNATIONAL SOFTWARE PLC INTERIM RESULTS Bond International Software Plc, the specialist provider of software for the international recruitment and human resources industries, with operations in the UK, USA and Australia, today announces its interim results for the six months to 30 June KEY POINTS Sales increased 6.1% to 3.4m (2002: 3.2m) Group operating profit of 200k (2002: operating loss of 2.1m) Earnings per share 0.64p (2002: Loss per share 13.71p) Growth in UK business including one major contract with Rullion Considerable improvement in business prospects in the US with two major orders in the Healthcare Staffing sector from StarMed Staffing Group and Career Staff Australian subsidiary trading successfully. Largest order to date received in August 2003 Commenting on the results Chief Executive Steve Russell, said: We are pleased with these results and are hopeful that we have started to see signs of optimism in the market with some larger deals starting to come through. We are well positioned to benefit from any upturn in the market. For further information, please contact: Bond International Software Plc: Tel: Steve Russell: Group Chief Executive Bruce Morrison: Finance Director bmorrison@bond.co.uk

2 Buchanan Communications: Tel: Tim Thompson nicolac@buchanan.uk.com Nicola Cronk Chairman s Statement OVERVIEW When I last reported to you, the Group had already begun to feel the positive effects of the overhead restructuring carried out in the first half of I am pleased to say that these benefits have continued through the first half of this year and, together with a 6.1% overall increase in sales, have resulted in a Group operating profit of 200,000 compared with an operating loss of 2,073,000 in the same period last year. UK & Europe During the first half of this year, the level of order taking has begun to improve and some larger deals have reappeared. In April 2003 the Board announced that a 400,000 agreement to supply Adapt to The Rullion Group had been concluded. Negotiations are continuing with a number of other potential customers and your Board expects to be able to announce further contracts in the near future. There has also been an increase in the recurring revenue streams and in particular, with Adapt VMS, our Managed Services product, which now provides significant monthly income. North America I am pleased to say that we have seen a considerable improvement in business prospects in the United States. In my last report I emphasised our need to evolve there and to maximise our offerings in niche markets. This strategy has been successful and has so far this year resulted in two major orders in the Healthcare Staffing sector, one with StarMed Staffing Group which we announced on 18 July 2003 and the second with Career Staff. Australia and Asia Pacific Our Australian subsidiary has continued its success, recently concluding their largest order to date worth around 150,000. Product Development Having resisted the temptation to cut back on product development, the Group has actually increased efforts in this area in order to ensure that we continue to offer the most advanced software solutions. In the first six months of the year the Group spent 551,000 with further development projects planned for the second half. The result will be a range of software solutions second to none in the recruitment industry and which the Board believes will enhance the Company s position in the UK market and overseas. Outlook

3 Business conditions continue to improve. The rate of order take is increasing and some of the larger deals have begun to reemerge. These factors, together with the exciting products that we have in development, will ensure that we are well positioned to benefit from this continuing upturn. Martin Baldwin Chairman 8 September 2003 Consolidated profit and loss account to 30 June 2003 Turnover continuing operations Cost of sales 3,370 (220) 3,175 (395) 6,400 (457) Gross Profit 3,150 2,780 5,943 Administrative expenses (2,949) (4,853) (7,787) Operating profit/(loss) continuing operations 201 (2,073) (1,844) Loss on disposal of discontinued operations (66) Profit/(loss) on ordinary activities before interest 201 (2,073) (1,910) Net interest payable (46) (13) (62) Profit/(loss) on ordinary activities before taxation 155 (2,086) (1,972) Tax on profit/(loss) on ordinary activities (63) Retained profit/(loss) for the period 92 (1,961) (1,970) Earnings/(loss) per share basic 0.64p (13.71p) (13.79p) Earnings/(loss) per share fully diluted 0.64p (13.71p) (13.79p)

4 Consolidated balance sheet as at 30 June 2003 As at As at 30 June Fixed assets Intangible assets Tangible assets 371 2, , ,624 2,911 2,797 2,796 Current assets Stock and work in progress Debtors Cash at bank and in hand ,477 2,116 1,891 1,518 1,149 1,243 3,042 3,351 3,178 Creditors: amounts falling due within one year (2,467) (2,453) (2,552) Net current assets Total assets less current liabilities 3,486 3,695 3,422 Creditors: amounts falling due after more than one year (712) (864) (746) Provision for liabilities and charges (37) (61) (49) Net assets 2,737 2,770 2,627 Capital and reserves Share capital Share premium Capital reserve on consolidation Profit and loss account 143 2, , , Equity capital and reserves 2,737 2,770 2,627

5 Consolidated cash flow statement to 30 June 2003 Net cash inflow/(outflow) from operating activities 747 (640) 65 Currency translation adjustments 7 17 (116) Returns on investments and servicing of finance Net interest (35) (13) (62) Taxation Corporation tax paid Overseas taxation paid (32) (177) (377) (3) Net cash outflow for tax paid (32) (177) (380) Capital expenditure Payments to acquire intangible fixed assets Payments to acquire tangible fixed assets Receipts from sales of tangible fixed assets (202) (80) 10 (112) 2 (98) (232) 17 Net cash outflow for capital expenditure (272) (110) (313) Net cash inflow/(outflow) before financing 415 (923) (806) Financing New hire purchase loans Repayment of bank loans Repayment of other loans Repayment of hire purchase loans (82) (27) (21) (81) (11) (16) 51 (151) (40) (42) Net cash outflow from financing (130) (108) (182) Increase/(decrease) in cash for the period 285 (1,031) (988) Notes to the financial statements Basis of preparation The interim financial statements have been prepared on the basis of the accounting policies set out in the Company s 2002 statutory accounts.

6 These statements are unaudited and were approved by the Board of Directors on 8 September The financial information contained in these statements does not constitute statutory accounts as defined in Section 240 of the Companies Act The financial information for the year to 2002 has been extracted from the statutory accounts for that year. These accounts, which received an unqualified audit report, have been filed with the Registrar of Companies. 2. Turnover analysis (a) (a) The geographical analysis of turnover by destination is: United Kingdom 2,268 2,038 4,395 Rest of Europe Asia & Australasia Africa North & South America ,237 3,370 3,175 6,400 (b) (b) Sales by product are: Adapt sales & services 1,675 1,784 3,464 Adapt support 1,244 1,092 2,303 Adapt managed services Adapt revenue 3,319 3,104 6,279 Hardware & other sales ,370 3,175 6,400

7 Notes to the financial statements (continued) 3. Earnings/(loss) per share The calculation of basic earnings/(loss) per share is based on attributable profit for the period of 92,000 (June 2002 loss 1,961,000; year ended 2002 loss 1,970,000) and on 14,297,232 ordinary shares (June 2002 & year ended ,297,232) being the weighted average number of ordinary shares in issue during the period. The diluted earnings/(loss) per share is based on attributable profit for the period of 92,000 and on 14,300,216 ordinary shares calculated as follows: Number Basic weighted average number of shares 14,297,232 Diluted potential ordinary shares: Share options 2,984 14,300,216 END The diluted loss per share for the six months ended 30 June 2002 and the year ended 2002 was the same as the basic loss per share.