Final Results

Anite Group PLC 11 July 2003 ANITE GROUP PLC UNAUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 30 APRIL 2003 PART 2 Reconciliation of operating (loss) / profit to net cash inflow from operating activities for the year ended 30th April 2003 2003 2002 Total Total Â£'000 Â£'000 ---------------------------------------------------------------------------------- Operating (loss)/profit (92,115) 3,955 Depreciation 4,976 3,898 Amortisation of software licences 723 725 Impairment of software licences 2,463 - Goodwill amortisation 24,295 24,265 Goodwill impairment 74,678 - Decrease / (increase) in stock 8 (3,351) Decrease / (Increase) in debtors 2,223 (17,168) Increase in creditors 3,811 15,461 Increase / (decrease) in provisions 5,390 (1,117) Loss /(profit) on disposal of fixed assets 207 (34) Abortive acquisition costs written off 916 - ---------------------------------------------------------------------------------- Net cash inflow from operating activities 27,575 26,634 ---------------------------------------------------------------------------------- The operating cash flows include, under closed businesses, a net outflow of Â£2,191,000, which relates to the Â£2,794,000 exceptional redundancy and restructuring costs incurred during 2003. Analysis and reconciliation of net debt for the year ended 30th April 2003 1 May Non-cash Cash Exchange 30 April 2002 items flow movement 2003 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 ------------------------------------------------------------------------------------------------- Cash at bank and in hand 12,690 - (3,049) 1,420 11,061 Bank overdrafts (766) - (465) - (1,231) ----------- (3,514) ----------- Bank loans - due within one year (17,852) - 4,002 - (13,850) Bank loans - due after one year (4,858) - 3,517 - (1,341) Finance leases (1,378) (1,512) 977 - (1,913) ----------- 8,496 ----------- Short-term deposits 16,026 - (13,978) - 2,048 ------------------------------------------------------------------------------------------------- Net funds / (debt) excluding loan notes 3,862 (1,512) (8,996) 1,420 (5,226) Vendor loan notes due within one year (15,359) (9,569) 13,821 - (11,107) ------------------------------------------------------------------------------------------------- Net debt (11,497) (11,081) 4,825 1,420 (16,333) ------------------------------------------------------------------------------------------------- Segmental analysis Ongoing businesses before goodwill and exceptional items Public Sector Travel Telecoms International Total 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 --------------------------------------------------------------------------------------------------------------------- Turnover 74,744 54,907 32,014 29,807 37,058 35,453 65,466 70,042 209,282 190,209 --------------------------------------------------------------------------------------------------------------------- Operating (loss) / profit - ongoing businesses before goodwill and exceptional items and unallocated corporate costs (12) 5,207 6,832 5,812 7,495 11,616 9,562 12,254 23,877 34,889 Unallocated corporate costs - - - - - - - - (2,868) (3,809) Finance charges (net) - - - - - - - - (2,359) (1,111) ---------------------------------------------------------------------------------------------------------------------- Profit before taxation -ongoing businesses before goodwill and exceptional items (12) 5,207 6,832 5,812 7,495 11,616 9,562 12,254 18,650 29,969 ---------------------------------------------------------------------------------------------------------------------- Group analysis including goodwill and exceptional costs Public Sector Travel Telecoms International Total 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Turnover - Ongoing businesses 74,744 54,907 32,014 29,807 37,058 35,453 65,466 70,042 209,282 190,209 - Closed businesses 171 - - - 2,569 1,563 4,314 8,010 7,054 9,573 ------------------------------------------------------------------------------------------------------------------------ Turnover- continuing operations 74,915 54,907 32,014 29,807 39,627 37,016 69,780 78,052 216,336 199,782 - Discontinued operations - - - - - 268 - 2,460 - 2,728 ------------------------------------------------------------------------------------------------------------------------ 74,915 54,907 32,014 29,807 39,627 37,284 69,780 80,512 216,336 202,510 ------------------------------------------------------------------------------------------------------------------------ Segment profit - Ongoing businesses (12) 5,207 6,832 5,812 7,495 11,616 9,562 12,254 23,877 34,889 - Common corporate costs - - - - - - - - (2,868) (3,809) ------------------------------------------------------------------------------------------------------------------------ - Ongoing businesses (12) 5,207 6,832 5,812 7,495 11,616 9,562 12,254 21,009 31,080 - Closed businesses (787) - - - (877) (1,028) (2,714) (1,187) (4,378) (2,215) - Discontinued operations - - - - - (1,184) - (59) - (1,243) Goodwill amortisation (6,887) (5,404) (2,455) (2,203) (2,624) (5,008) (12,329) (11,052) (24,295) (23,667) ------------------------------------------------------------------------------------------------------------------------ Operating (loss) / profit before exceptional costs (7,686) (197) 4,377 3,609 3,994 4,396 (5,481) (44) (7,664) 3,955 Exceptional costs - Goodwill impairment (12,953) - (9,060) - (29,723) - (22,942) - (74,678) - - Other exceptional costs (5,412) - (763) - (1,100) - (728) - (8,003) - - Corporate costs - - - - - - - - (1,770) - ------------------------------------------------------------------------------------------------------------------------ Exceptional costs (18,365) - (9,823) - (30,823) - (23,670) - (84,451) - ------------------------------------------------------------------------------------------------------------------------ Operating (loss) /profit (26,051) (197) (5,446) 3,609 (26,829) 4,396 (29,151) (44) (92,115) 3,955 ------------------------------------------------------------------------------------------------------ Share of associate loss - (31) Exceptional items (17,042) 2,951 Amounts written off investments and own shares (964) - Finance charges (net) (2,359) (1,111) ------------------------- (Loss) / profit on ordinary activities before tax (112,480) 5,764 ------------------------- Segment net (liabilities) /assets (6,345) 15,173 13,883 9,631 21,790 23,599 25,318 26,175 54,646 74,578 -------------------------------------------------------------------------------- Non operating assets 4,738 106,440 ------------------------- Net assets 59,384 181,018 ------------------------- Closed businesses comprise the turnover and operating results of continuing operations which have ceased during the year and which do not meet the definition of discontinued operations under FRS 3. Ongoing businesses comprise the turnover and operating results of continuing operations less the turnover and operating results of closed businesses. Segmental analysis- continued 2003 2003 2003 2003 Â£'000 Â£'000 Â£'000 Â£'000 Acquisitions Operating profit before goodwill Goodwill Operating loss amortisation and amortisation and after goodwill Turnover impairment impairment amortisation Public Sector CME Systems Limited 659 63 (114) (51) ---------------------------------------------------------------------------------------------------------------- 659 63 (114) (51) ---------------------------------------------------------------------------------------------------------------- Additional analysis of turnover 2003 2002 Â£'000 Â£'000 --------------------------------------------------------------------------------------------- IT Consultancy 24,256 22,682 Own product software licences 37,307 25,142 Bespoke services, systems integration & implementation of software products 85,395 96,555 Managed services (includes software maintenance and support) 46,203 37,070 Originating from third party 23,175 21,061 --------------------------------------------------------------------------------------------- 216,336 202,510 --------------------------------------------------------------------------------------------- This information is given to show the main areas from which the group's turnover is derived. Geographic analysis of turnover Origin Destination 2003 2002 2003 2002 Â£'000 Â£'000 Â£'000 Â£'000 -------------------------------------------------------------------------------------------------- Europe - United Kingdom 136,017 115,011 112,952 98,409 Europe - Other 67,972 76,079 83,610 89,309 North America 8,577 8,311 8,719 9,088 Rest of the World 3,770 3,109 11,055 5,704 -------------------------------------------------------------------------------------------------- 216,336 202,510 216,336 202,510 -------------------------------------------------------------------------------------------------- Geographical analysis of (loss) / profit on ordinary activities before taxation and net assets 2003 2002 (Loss) Net assets Profit Net assets before taxation before taxation Â£'000 Â£'000 Â£'000 Â£'000 ------------------------------------------------------------------------------------------------------------------ Europe - United Kingdom (16,981) 37,087 19,458 156,013 Europe - Other 4,783 21,462 9,658 23,957 North America 439 654 866 855 Rest of the World 61 181 47 193 ------------------------------------------------------------------------------------------------------------------ (Loss)/profit on ordinary activities before goodwill (11,698) 58,784 30,029 181,018 Less: goodwill (100,782) - (24,265) - ------------------------------------------------------------------------------------------------------------------ Total (112,480) 59,384 5,764 181,018 ------------------------------------------------------------------------------------------------------------------ Goodwill is attributed to Europe - United Kingdom Â£70,778,000 (2002: Â£13,929,000) and Europe - Other Â£30,004,000 (2002: Â£10,336,000). Exceptional items Exceptional items reported before operating (loss) / profit: Charged to Charged to net 2003 2003 cost of sales operating costs Â£'000 Â£'000 Â£'000 Â£'000 Public Sector - Loss making contracts provision 2,500 2,500 - - Redundancy costs 939 616 323 - Software licence impairment 1,973 5,412 - 1,973 ----------- Travel - Redundancy costs 273 - 47 226 - Software licence impairment 490 763 - 490 ----------- Telecoms - Purchasing commitment provision 1,100 1,100 - International - Redundancy / restructuring costs 728 116 612 ----------- 8,003 Corporate costs - Severance costs of former FD 750 - 750 - Recruitment cost of replacement FD 104 - 104 - Abortive acquisition costs (Dati) 916 1,770 - 916 ---------------------------------------------------------------- 9,773 4,379 5,394 --------------------------------------------------- Exceptional items reported after operating (loss) / profit: The (loss)/ profit on sale/closure of businesses includes: 2003 2002 Â£'000 Â£,000 ----------------------------------------------------------------------------------------------- Closed businesses: Loss on disposal of Anite Consulting GmbH (including Â£12,690,000 goodwill written back from reserves) (15,934) - Net loss on disposal/ closure of businesses (including goodwill written off Â£1,809) (3,082) - Discontinued businesses: Write back of pension provision no longer required 1,460 - Consideration received in respect of previously disposed businesses 514 915 Write back of expired warranty provisions on previous disposals - 2,040 ------------------------------------- (Loss) / profit on sale/closure of businesses There is no tax effect on the above items. (17,042) 2,955 ------------------------------------- The loss on the disposal of fixed assets - (4) ------------------------------------- Tax on (loss) / profit on ordinary activities The tax charge is made up as follows: 2003 2002 Â£'000 Â£'000 ------------------------------------------------------------------------------------------------- Current tax UK corporation tax 1,282 5,472 Foreign tax 1,010 2,609 ------------------------------------------------------------------------------------------------- 2,292 8,081 ------------------------------------------------------------------------------------------------- Adjustments in respect of prior years - UK corporation tax (1,832) (861) - Foreign tax (510) 67 ------------------------------------------------------------------------------------------------- (2,342) (794) ------------------------------------------------------------------------------------------------- Total current tax (50) 7,287 ------------------------------------------------------------------------------------------------- Deferred tax UK 1,448 368 Foreign (600) (319) Effect of changes in tax rate on opening liability - 8 ------------------------------------------------------------------------------------------------- Total deferred tax 848 57 ------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------- Total tax on (loss) / profit on ordinary activities 798 7,344 ------------------------------------------------------------------------------------------------- In addition Â£1,065,000 has been credited to statement of recognised gains and losses in respect of a net tax credit on foreign currency related borrowings. Loss per ordinary share The calculations of (loss) / earnings per share are based on the following (loss) / profit and number of shares: 2003 2002 Â£'000 Â£'000 ------------------------------------------------------------------------------------------------- Earnings - Loss for the financial year (113,294) (1,662) ------------------------------------------------------------------------------------------------- Reconciliation to adjust earnings: - Goodwill amortisation 24,295 24,265 Exceptional items - Goodwill impairment 74,678 - - Other 9,773 - - Loss on sale of tangible fixed assets - 4 - Amounts written off investments and own shares 964 - - Loss/(profit) on sale/ closure of businesses 17,042 (2,955) - Release of prior year tax provisions and tax credit on exceptional operating items (3,657) - Loss for closed businesses 4,378 1,617 Loss for discontinued operations - 1,243 ------------------------------------------------------------------------------------------------- Adjusted earnings - Profit for the financial year on ongoing businesses before goodwill amortisation and impairment, closed businesses and exceptional items 14,179 22,512 ------------------------------------------------------------------------------------------------- Number of shares ('000) Weighted average number of shares in issue - used to calculate basic earnings per share 331,614 289,589 ------------------------------------------------------------------------------------------------- Effect of dilutive ordinary shares - SAYE and share option schemes 2,890 2,139 - Contingent consideration 8,480 15,760 ------------------------------------------------------------------------------------------------- Number of shares used to calculate diluted earnings per share 342,984 307,488 ------------------------------------------------------------------------------------------------- (Loss)/earnings per share on ongoing businesses excluding goodwill amortisation and impairment, closed businesses and exceptional items have also been included as the directors consider that this figure is helpful for a better understanding of the underlying business. In calculating adjusted earnings per share after goodwill amortisation and impairment, closed businesses and exceptional items, the dilutive potential ordinary shares of 11,370,000 (2002: 17,899,000) were deducted from the calculation of total diluted number of shares in the year ended 30 April 2003, as their inclusion would have been anti-dilutive. Reconciliation of net debt 2003 2002 Â£'000 Â£'000 ------------------------------------------------------------------------------------------------- Decrease in cash in year (3,514) (4,225) Cash inflow / (outflow) from increase in bank loan and lease financing 8,496 (8,877) Cash outflow from increase in liquid resources (13,978) 6,553 Sale of investment - (562) ------------------------------------------------------------------------------------------------- Change in net debt resulting from cash flows (8,996) (7,111) Loans and finance leases acquired with subsidiary - (1,909) Increase in finance lease (1,512) (994) Receipt of shares - 265 Exchange movement 1,420 - Net funds at 1st May excluding loan notes 3,862 13,611 ------------------------------------------------------------------------------------------------- Net (debt) / funds at 30th April excluding loan notes (5,226) 3,862 Vendor loan notes (11,107) (15,359) ------------------------------------------------------------------------------------------------- Net debt at 30th April (16,333) (11,497) ------------------------------------------------------------------------------------------------- Major non-cash transactions Part of the consideration for the acquisition during the year comprised shares and loan notes. Reserves Shares Share Profit and to be premium Merger Other loss issued account reserve reserves account Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 -------------------------------------------------------------------------------------------------------- At 1st May 2002 (as previously reported) 59,350 74,595 - 270 15,870 Transfer to merger reserve - (52,127) 42,009 - 10,118 -------------------------------------------------------------------------------------------------------- At 1st May 2002 (as restated) 59,350 22,468 42,009 270 25,988 Retained loss for the year - - - - (113,294) Premium on shares issued - 30 19,600 - - Expenses of equity shares issued - (25) - - - Transfer goodwill amortisation and impairment to merger reserve - - (42,677) - 42,677 Shares issued against earnouts in the year (22,830) - - - - Shares to be issued under new earnout arrangements 420 - - - - Provision no longer required written back to goodwill (14,100) - - - - Decrease in shares due to renegotiation of earnouts (10,575) - - - - Transfer to deferred consideration (3,083) - - - - Other reserve movement - - - (270) - Transfer from provisions in respect of prior acquisitions - - - - 3,000 Goodwill previously written off included in retained loss for the year - - - - 12,690 Gain on foreign currency translation - - - - 3,638 -------------------------------------------------------------------------------------------------------- At 30th April 2003 9,182 22,473 18,932 - (25,301) -------------------------------------------------------------------------------------------------------- Goodwill written-off in respect of the acquisition of Autofile Limited and PE International plc is Â£25,237,000 (2001: Â£40,927,000). It is impracticable to calculate the goodwill in respect of prior acquisitions. Shares to be issued represent the company's best estimate of the amount payable in shares for deferred consideration and earnout payments. The prior year adjustment relates to the correction required to follow the merger relief provisions of the Companies Act to account for acquisitions involving the issue of shares at a premium. A total of Â£52,127,000 has been transferred from the share premium account to merger reserve to reflect the premium on shares issued for acquisitions made in prior years and Â£10,118,000 in respect of goodwill amortisation charged. Basis of Preparation The financial information set out in this preliminary announcement does not constitute the Company's statutory accounts for the years ended 30th April 2003 or 2002, but is derived from those accounts. The statutory accounts for the year ended 30th April 2003 will be prepared following accounting policies consistent with those for the year ended 30th April 2002 except that the reserves for the year ended 30th April 2002 have been restated in order to follow the merger relief provisions of the Companies Act where shares are issued at a premium for acquisitions. As at 30th April 2002 total of Â£52,127,000 has been transferred from share premium account to merger reserve to record the premium on shares issued for acquisitions made in prior years and Â£10,118,000 of accumulated amortisation has been transferred from the profit and loss reserve to the merger reserve to reflect the goodwill amortised in prior years relating to these acquisitions. The financial information for the year ended 30th April 2002 is derived from the statutory accounts for that year which have been delivered to the Registrar of Companies. The auditors reported on those accounts ; their report was unqualified and did not contain a statement under s237 (2) or (3) Companies Act 1985. The statutory accounts for the year ended 30 April 2003 will be finalised on the basis of the financial information presented by the directors in this preliminary announcement and will be delivered to the Registrar of Companies following the company's annual general meeting. This information is provided by RNS The company news service from the London Stock Exchange

Companies

Ashoka India Equity Investment Trust (AIE)

Monday, 6th January 2025

COMPANIES COVERED:

FXPO AXL S247

Smarttech 247 jumps on full year results update and Ukrainian based Ferrexpo tops the FTSE-250, whilst Arrow Exploration puts in a shaky start despite upbeat drilling results from Colombia.

Full Archive

UK 100

Latest directors dealings

7 hours ago Tirupati Graphite
9 hours ago CMC Markets
9 hours ago Invesco Perpetual UK Smaller Companies Inv Trust
9 hours ago Pearson
9 hours ago Gran Tierra Energy Inc. (CDI)

All directors dealings today