Final Results

Mondas PLC
12 July 2005

Mondas plc
('Mondas')

Preliminary Results for the year ended 30 April 2005

Mondas PLC, the specialist provider of software solutions to the banking &
securities and education markets, announces its preliminary results for the year
ended 30 April 2005.

Key points

Results

•         Mondas delivers first ever full year profit before taxation,
          amortisation and exceptional items of £79,000 (2004: loss of £806,000)
•         Second half profit of £619,000 driven by:
            -  45% growth in  revenue from Banking & Securities unit
            -  96% increase in licensed revenues following sales to new and 
               existing clients
•         Resource business unit now clearly focused on the education sector
            -  Agreement with Pearson Education added 10 school customers with 
               the total now standing at 140 education sector clients
•         Cash of £1.03 million seen as sufficient for the foreseeable future
•         Tight control of costs with a reduction of 6% during the year

Outlook

•         Two new products: New Issues & Placings (NIPS) and Web Election Portal
          strengthens the Group's position as a supplier in the asset servicing 
          market
•         Mondas strongly placed to take advantage of the endorsement and
          acceleration in adoption of the Group's products in banking and 
          securities


Jarlath McGee, Chief Executive, said:

'The last year has seen much progress both operationally and financially.  We
have a strategy that should ensure that we capitalise on developments in the
marketplace in both of the sectors in which we operate.  Following our recent
success in banking and securities, we feel confident of further progress in the
current year.'

                                                                    12 July 2005



Enquiries:


Mondas PLC                                                    Tel: [phone]
Jarlath McGee, Chief Executive

College Hill                                                  Tel: [phone]
Matthew Smallwood/Clare Warren



Chairman's Statement

I am pleased to announce that Mondas has achieved a significant improvement in
its financial performance.

Results

For the year ended 30 April 2005, Mondas made its first-ever profit before
taxation, amortisation and exceptional items, of £79,000 (2004: loss of
£806,000). This full-year result is after we suffered a first-half loss of
£540,000, calculated on the same basis. In our second-half, our profit before
taxation, amortisation and exceptional items, was therefore £619,000. Our annual
earnings before restructuring, amortisation, depreciation and interest were
£406,000 (2004: Loss £501,000).

After amortisation of goodwill of £945,000 (2004: £945,396) and after
non-recurring exceptional items of £489,000 (2004: £nil) the loss before
taxation was £1,384,000 (2004: £1,880,000). The exceptional items relate to the
significant restructuring of the company which was carried out during the year.

Turnover

Turnover for the year was £4,592,000 (2004: £3,975,000), representing growth of
15.5 per cent. The Banking and Securities Business Unit (BSBU) contributed 58%
(2004: 46%) of group revenues. In this division, total revenues grew by 45%,
with licence revenues increasing by 96% following sales to new and existing
clients and professional services revenues grew by 43%.

In the Resource Business Unit (RBU), revenues were 9% lower than 2004, mainly
due to lower services revenues, as contract deliveries were weighted towards the
second half of the year.  Already a market leader in colleges of further
education, this division has recorded its first material revenues from sales of
its Resource 32000 software to schools, through its relationship with Pearson
plc. Significant revenues also arose from sales of new products and modules into
the existing user base.

Deferred income has increased to £1,096,000 (2004: £947,000). This is shown as a
liability on the balance sheet, as the embedded revenue will be shown in future
accounting periods.

Costs

Operating costs before amortisation of goodwill and restructuring charge were
reduced by 6% to £4,289,000 (2004: £4,574,000), primarily as a result of
reductions in central overheads. Our major restructuring has resulted in a
non-recurring exceptional charge of £490,000 (2004: £nil). Most of this arose in
the first half of the year, with a further £62,000 arising in the second half.
The total includes £341,000 in relation to the management restructuring, with a
further £34,000 of exceptional AGM costs. A further £115,000 arose from business
restructuring.  These amounts include salary costs, severance payments, legal
and professional fees and cancellation of certain marketing programs.

Research & Development expenditure, which is charged to the profit and loss
account, was £184,000, (2004: £57,000). Further development activity was carried
out during the year, which focussed on enhancement, support and deployment of
our products.  In addition a significant amount of new product development was
funded by customers.

Interest payable of £252,000 (2004: £236,000) included amortisation of
Convertible Unsecured Loan Stock ('CULS') issue costs of £27,800 (2004 £27,800).

Cash

Cash balances at 30 April 2005 amounted to £1,031,000 (2004: £1,493,000), which
the Directors believe, when combined with other working capital resources, is
sufficient for operations for the foreseeable future.

Trade debtors at 30 April 2005 were £1,301,000 (2004: £757,000), which
represented the last 27 days of sales based on billings in April 2005 (2004:
28). Cash collections have been strong since the year-end.

The Company has in issue £3,000,000 8% convertible unsecured loan stock, with a
redemption date of 31 October 2007 and which is convertible on the basis of 2
ordinary shares for every £1 of loan stock. This was originally due for
redemption on 31 October 2005, but the redemption date was extended in February
2005.  The coupon rate will increase to 8.75% from 1 November 2005. Costs of
approximately £40,000 were incurred during the renegotiations and these will be
amortised under FRS4 over the 2-year extension period.

Amortisation of Goodwill

Goodwill amortisation remained constant at £945,000 and arose solely from the
acquisition of DSR Holdings Limited in October 2000.  The remaining balance of
£473,000 (2004: £1,418,000) will be fully amortised by 31 October 2005, after
which this profitable and cash generative division will be carried at zero value
in the consolidated balance sheet, with the consequence that no further goodwill
amortisation will be charged to our profit and loss account.

Acquisitions and Alliances

We have previously set out that our strategy is to expand our banking and
securities division by making suitable acquisitions in the asset servicing
market. As well as increasing the range of products, we believe the right
acquisition should provide greater geographic reach for our flagship corporate
actions product, CAPS. We have been in active negotiations with a number of
businesses which meet our criteria, but we are not yet in a position to put any
specific proposals to shareholders.

The market available to our banking and securities division is experiencing an
increase in mergers and acquisitions.  Small companies are both joining forces
to meet the challenges of supplying global financial institutions and are being
acquired by larger organizations.  We recognize the need for Mondas to build
critical mass in order to capitalise on the global potential of our CAPS product
and will consider all appropriate means to achieve this.

Opportunities for growth by acquisition also exist in the education sector. We
aim to leverage our leading position in this market and will examine each
opportunity as it arises.

Personnel

Following my appointment as chairman of Mondas plc, in August last year, I have
witnessed the genuine support and dedication of all our staff. The significant
turnaround in our financial results could not have taken place without their
outstanding performance. I would like to thank everyone in the company for their
contribution to our success.

Colin Peters
Chairman

12 July 2005



Chief Executive's Review

I am very pleased to report a much improved set of results for the year ended 30
April 2005. The actions arising from the review which I carried out last year
have now been completed and I can report progress in both of our operating
divisions, which have led to a record turnover and a maiden operating profit for
the full year, as reported by the Chairman.

Banking and Securities

Although new client business remains a challenge for every company in this
sector, we secured Williams de Broe plc in the final quarter, thus adding to our
list of prestigious customers for Radica CAPS. Williams de Broe also ordered two
of our new products, New Issues and Placings (Radica NIPS) and our recently
developed Election Management Portal (Radica EMP). We are also delighted to say
that Brewin Dolphin Securities Limited has also ordered these new products in
addition to upgrading its CAPS system and we expect the successful
implementations at both organisations to drive new licence sales in the new
year. In particular, the Radica NIPS product should provide an additional
pipeline of business to our traditional CAPS market.

Radica EMP is a web based straight through processing solution that automates
the processes around corporate action election management.

Radica NIPS automates the process of new issues and placings, from the initial
plc cash target, for the Corporate Broker & Nominated Advisor, through to Fund
Managers or Brokers for underlying client allocations.

The strongest licence sales came from our existing customers, underlining their
commitment to Mondas and our range of products. Both Credit Suisse First Boston
Limited and Credit Suisse Asset Management Limited extended both their existing
term and the international dimension of their contracts.

Credit Suisse Asset Management also licensed our Web Election product.

At HSBC, due to a strategic review of its equities business, project
implementation has been delayed. We are confident of gaining formal acceptance,
but significant further revenues may not arise during the current year.

Business Development

While we continue to pursue a direct sales model, we are adding channel sales to
increase the distribution capability of our products. We were delighted to form
a strategic partnership with Rhyme Systems Limited, which will be our partner
for the well-established FISCAL and QUASAR market in the UK. Rhyme Systems has
also licensed our FES product, which was deployed at Brewin Dolphin Securities.
Under this development licence, Mondas will receive royalty payments for any
licence sales of this product.

We are currently pursuing other similar channels and expect them to contribute
substantially to our licence revenues from 2006, although this will involve some
initial set-up costs and ongoing third party commission payments.

Resource

Whilst we saw strong licence sales of add-on products to our existing client
base, this division is now clearly focussed on the education sector, which
offers the best growth prospects.

Our exclusive agreement with Pearson plc to provide accounting systems based on
our current Resource offering to schools has generated its first material
revenues. We now have approximately 140 education sector users and we expect to
add to this in addition to further sales into our existing user base

Whilst we see the agreement with Pearson Education continuing with stand-alone
systems for some time, the vision of providing Resource as an integral part of
the e1 solutions remains a goal for both organisations.

Outlook

I am very pleased with the company's performance over the past year. In
particular I am encouraged by our partnership strategy in both business units,
which I believe will add considerably to our pipeline of business. This
capability, coupled with our success in bringing two new products to market in
the Banking and Securities business will, I believe, strengthen our position as
a supplier of asset servicing solutions.

In my last review I said that we are seeing the return of interest from smaller
institutions. This market demands a simpler set of capabilities than exists
within the current CAPS system. To address this we are developing a Short
Product Solution (SPS). SPS is a true 'off the shelf' solution, which will be
installed from a CD and will require no further integration. We are looking to
this product to increase our reach and therefore our potential user base.

I am also very encouraged by the prospects for the banking & securities
division. The strong business drivers, including the Basel II Capital Adequacy
accord, whereby international banks will be required to set aside capital
against operational risk, remain in place and Mondas is strongly placed to take
advantage of these, although this is not scheduled to become regulatory until
2007.

As mentioned by the Chairman, the climate of mergers within the vendor community
brings the challenge of size and reach. It is therefore important that Mondas
gains that critical mass in order to maintain its growth momentum.

In our Resource division I expect that the main area of growth will continue to
be derived from our focus on the education sector.

I intend to accelerate the delivery of new products in both businesses and to
increase the use of offshore development in order to reduce the cost of these
developments.

Now that we have turned the corner in the fortunes of the company, there should
be no looking back. The challenge facing both divisions is a difficult one.
However, with the commitment from our customers and the continued hard work of
our staff, I expect this trend to continue.

Jarlath McGee
Chief Executive


12 July 2005



Consolidated Profit and Loss Account for the year ended 30 April 2005

                                                                     Note              2005           2004
                                                                                          £              £
Turnover                                                                          4,592,675      3,974,732

Cost of sales                                                                     (155,655)      (156,384)
Gross Profit                                                                      4,437,020      3,818,348

Administrative expenses excluding restructuring charge                          (5,079,060)    (5,362,889)
Restructuring Charge                                                   3          (489,618)
                                                                                                         -
Administrative Expenses                                                         (5,568,678)    (5,362,889)

Analysis of Group operating losses


Operating profit / (loss) before goodwill amortisation,                             406,178      (501,206)
restructuring and depreciation
Amortisation of goodwill                                                          (945,396)      (945,396)
Depreciation of tangible fixed assets                                             (102,822)       (97,939)
Restructuring Charge                                                              (489,618)              -

Operating loss                                                         1        (1,131,658)    (1,544,541)


Net interest                                                           2          (252,423)      (235,013)

Amortisation of Convertible Loan Stock Issue Costs charged to Net
interest
                                                                                   (27,800)       (27,800)
Profit/(Loss) before Amortisation of goodwill and loan stock issue
costs, Restructuring charge and Taxation
                                                                                     78,733      (806,358)


Loss on ordinary activities before Taxation                                     (1,384,081)    (1,779,554)

Tax on loss on ordinary activities                                     4                265        147,748
Loss for the financial year                                                     (1,383,816)    (1,631,806)
Basic and Diluted loss per share                                       5             (5.3p)         (6.6p)


Profit and loss account


At 1 May 2004                                                                   (9,512,772)    (7,880,966)
Loss for the financial year                                                     (1,383,816)    (1,631,806)
At 30 April 2005                                                               (10,896,588)    (9,512,772)





All of the above operations are continuing.



The Group had no recognised gains and losses other than the loss for the above
financial years.

Consolidated Balance Sheet as at 30 April 2005


                                                                            2005           2005       2004         2004
                                                                               £              £          £            £
Fixed assets

Intangible assets                                                                       472,691               1,418,087
Tangible assets                                                                       152,225                 229,294
                                                                                        624,916               1,647,381
Current assets

Debtors                                                                1,433,221                   934,331
Cash at bank and in hand                                               1,030,865                 1,492,744
                                                                       2,464,086                 2,427,075
Creditors: Amounts falling due within one year                         (690,786)                 (585,071)


Net current assets                                                                    1,773,300               1,842,004


Total assets less current liabilities                                                 2,398,216               3,489,385


Creditors: amounts due falling after more than 1
year
Convertible 8% Unsecured Loan Stock 2005              6                             (2,951,585)             (2,964,285)

Accruals and deferred income                          7                             (1,448,348)             (1,143,001)

Net (liabilities)                                                                   (2,001,717)               (617,901)


Capital and Reserves
Called up share capital                                                               2,614,164               2,614,164
Share Premium account                                                                 6,280,707               6,280,707
Profit and loss account                                                            (10,896,588)             (9,512,772)
Equity shareholders' deficit                          8                             (2,001,717)               (617,901)





Consolidated Cash Flow Statement for the year ended 30 April 2005


                                                                                 2005          2004
                                                                                    £             £
Net cash outflow from operating activities                                  (171,268)     (727,600)

Returns on investments and servicing of finance                             (224,623)     (207,213)
Taxation                                                                          265       147,748
Capital expenditure and financial investment                                 (25,753)     (133,388)

Cash outflow before use of liquid resources and financing                   (421,379)     (920,453)

Management of liquid resources                                                766,688     (848,852)

Financing

Issue of ordinary capital including premium and renegotiation of             (40,500)     1,435,254
loan stock net of costs

Increase/(decrease in cash)                                                   304,809     (334,051)






Reconciliation of operating loss to net cash outflow from operating activities


                                                                                 2005          2004
                                                                                    £             £
Operating loss                                                            (1,131,658)   (1,544,541)
Depreciation                                                                  102,822        97,939
Amortisation of Goodwill                                                      945,396       945,396
(Increase)/Decrease in debtors                                              (498,890)     (185,059)
Increase/(Decrease) in creditors                                              411,062      (41,335)
Net cash outflow from operating activities                                  (171,268)     (727,600)







Notes to the preliminary results



These financial statements have been prepared under the historical cost
convention, and in accordance with applicable accounting standards, using the
following accounting policies.  The accounts have been prepared on a going
concern basis as the Directors believe that current sales prospects combined
with existing working capital resources will ensure that Mondas has adequate
working capital to service its existing business for the foreseeable future.



1.   Operating Loss


Operating loss is stated after charging:                                         2005          2004
                                                                                    £             £
Operating lease rentals in respect of buildings                               112,522       119,293
Operating lease rentals in respect of plant and machinery                      15,169        40,647
Directors' remuneration including benefits in kind                            337,999       328,665
Contributions to Director's pension fund                                       17,125        16,875
Compensation for loss of office for former directors                          172,986             -
Research and Development Expenditure                                          183,563        57,244
Restructuring Charge                                                          489,618             -
Amortisation of goodwill                                                      945,396       945,396
Depreciation                                                                  102,822        97,939
Auditors' fees:
    Audit                                                                      25,558        21,000
    Other fees                                                                  6,446         6,530





2.  Net interest


                                                                                  2005         2004
                                                                                     £            £
Bank interest receivable                                                        14,381       34,314

Bank interest payable                                                            (714)      (1,527)
Amortisation of Convertible unsecured loan stock costs                        (27,800)     (27,800)
Interest payable on other loans                                              (238,290)    (240,000)
                                                                             (266,804)    (269,327)

                                                                             (252,423)    (235,013)





3.  Restructuring Charge


                                                                                                2005
                                                                                                   £

Board Restructuring (including provisions for salaries, legal and other professional         340,546
fees)

Annual General Meeting                                                                        33,802

Other restructuring including severances, professional fees, and cancellation of             115,270
certain
marketing programs

                                                                                             489,618


4.  Tax on loss on ordinary activities



The tax assessed on the loss on ordinary activities for the period differs from
the UK corporate of tax of 30%.  The amounts represent tax refunds received
during the period.



                                                                                  2005          2004
                                                                                     £             £
UK Corporation Tax
Adjustments in respect of Prior Years                                            (265)     (147,748)
Tax on loss on ordinary activities                                               (265)     (147,748)




5.      Loss per share



Basic and Diluted loss per share is based on a weighted average number of shares
outstanding of 26,141,634 (2004: 24,572,155) and loss after taxation of
£1,383,816 (2004: £1,631,806).  The CULS and share options were non-dilutive for
both years and thus the diluted loss per share is the same as the basic amount.



6.  Creditors: Amounts falling due in more than one year


                                                                                   2005         2004
                                                                                      £            £


Convertible unsecured loan stock                                              2,951,585    2,964,285




The loan stock, which has a par value of £3,000,000 and bears interest at an
annual rate of 8 per cent, payable in equal proportions on 30 June and 31
December in each year, is redeemable, if not converted, on 31 October 2007 and
is convertible into fully paid Ordinary Shares on the basis of 2 Ordinary Shares
for every £1 nominal of convertible loan stock.   The CULS holder has the option
to convert the CULS into shares or redeem.  If the mean average of the closing
bid price of an Ordinary Share as shown on the London Stock Exchange for a
period of at least 30 consecutive days is 200p or more, the Company is entitled
to require a holder of CULS to convert all or part of his holding of CULS into
fully paid Ordinary Shares on the basis set out above.  The cost of raising the
CULS was £139,000, which is amortised over the period to redemption.  The CULS
were previously redeemable on 31 October but the redemption date has been
extended to 31 October 2007.  The coupon rate increases to 8.75% from 1 November
2005.  The costs of renegotiating the CULS were £40,500 which will be amortised
over the extension period.



7. Accruals and deferred income


                                                                                   2005         2004
                                                                                      £            £

Accruals                                                                        352,262      196,229
Deferred income                                                               1,096,086      946,772
                                                                              1,448,348    1,143,001




8.  Reconciliation of movements in shareholders' funds


                                                                                  2005          2004
                                                                                     £             £
Loss for the financial year                                                (1,383,816)   (1,631,806)
Issue of ordinary shares at par                                                      -       504,188
Premium on new share issued  (net of expenses)                                               931,066
                                                                                     -
Net addition/(reduction) to shareholders' funds                            (1,383,816)     (196,552)
Opening shareholders' funds                                                  (617,901)     (421,349)
Closing shareholders' funds                                                (2,001,717)     (617,901)





9.  Sundry Information



This preliminary statement, which has been agreed with the auditors, was
approved by the Board on 12 July 2005.  It is not the Company's statutory
accounts.  Copies of the 2005 Annual Report and Accounts will be posted to
shareholders shortly and may be obtained from John East & Partners Limited,
Crystal Gate, 28-30 Worship Street, London EC2A 2AH.



The statutory accounts for the year ended 30 April 2004 received an audit report
which was unqualified and did not contain a statement under s237 (2) or (3) of
the Companies Act 1985.  The statutory accounts for the year to 30 April 2004
have been delivered to the Registrar of Companies but the 30 April 2005 accounts
have not yet been approved, audited or filed.


                      This information is provided by RNS
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