Final Results
Focus Solutions Group PLC
6 June 2000
Significant year of progress for Focus Solutions Group
Insurance industry introduces business to business e-commerce
solutions for new business
Preliminary results for the year to March 31, 2000
- These are the maiden results of Focus Solutions following
its flotation on AIM in March.
- The Group's software product for electronic new life,
pensions and investment applications called goal:proposal
has now been adopted by the three leading internet
service providers for the financial services industry.
- The largest 11 insurance companies - including CGU and
Norwich Union, Legal &General, Scottish Equitable, Royal
& Sun Alliance and Friends Provident - are using
goal:proposal software.
- Systems for electronically created and processed new
business applications are starting to go live. Focus
Solutions' licence revenue is starting to increase as a
result.
- Other group products - goal:pos and goal:plan - developed
further.
- New channels to market, such as digital TV, and new
products, such as mortgages, are being pursued.
- Focus Solutions is accelerating its product development
and product introduction plans and investing in
additional personnel to support its programmes.
For further information contact:
John Streets, Chief Executive
Mark Loosmore, Sales and Partnerships Director
Focus Solutions Group
Tel: 01926 623090
Tel: 020 7638 9571 (today only)
John Rudofsky/Sara Thomas
Citigate Dewe Rogerson
Tel: 020 7638 9571
Focus Solutions Group plc
Preliminary results for the year ended March 31, 2000
These are the first results of the Focus Solutions Group as a
public company following the successful placing of shares in
March and admission to the Alternative Investment Market
(AIM). The placing raised £10 million net of expenses for the
Group. The funds will enable the Group to extend its market
reach and accelerate product development in the business to
business e-commerce environment.
Turnover for the year exceeded budget to 31 March 2000 at
£721,000 (1999: £360,000) and the loss before taxation was
£1,039,000 (1999: £368,000). The increase in turnover
includes revenues in the latter part of the year arising from
the start of goal:proposal licence revenue. The anticipated
loss is the result of the accelerated investment in product
development and in building up an experienced team of people
to support the progress Focus Solutions has made in its
markets.
Commercial review
Focus Solutions has maintained and developed a strong
relationship with CGU which is now consolidating its
operations with Norwich Union. The merger has afforded new
opportunities with the enlarged group and the Board believes
further consolidation in the industry will be a key driver to
bring down costs. This will increase demand for more cost
effective, electronically-based administrative solutions and
new business processing.
The Group has now delivered goal:proposal to the market and
in its latest version it supports the standards of Origo, the
organisation representing the leading UK assurance companies,
as it drives forward the introduction of electronic commerce
for the industry. Since flotation a further three companies,
including Royal & Sun Alliance and Friends Provident, have
bought goal:proposal so that 11 top insurers in this country
now use Focus Solutions' software for developing electronic
proposals.
Focus Solutions also has partnership programmes with three
leading internet service providers - Moneyextra (formally The
exchange), Synaptic and Assuresoft. The eXchange service is
now live and Norwich Union was the first financial services
Group to launch electronic products on this service. These
service providers will be deploying the Group's software
products to all their end users. between them they have
approximately 20,000 subscribers. New product development has
continued at a pace. goal:pos is now well established as a
point of sale tool and is progressively being moved into new
distribution channels. We are actively pursuing partnership
approach with the industry along similar lines to that of our
other products.
The Group has also started research to take goal:proposal into
the mortgage market. Good progress is being made and the
Group hopes to secure partnerships later this year.
The Group's leading position in the life and pensions industry
means that it is holding more strategic discussions with major
insurance company customers and receiving a growing number of
commercial approaches from financial service portals. Focus
Solutions is also expanding the development skills of the
Group. It has brought in additional management and
restructured the development team to ensure the Group meets
its accelerated product development plans whilst maintaining
quality of product and service delivery to customers.
On the 1st June 2000, Piers Brooke joined the board as our
third non executive director. Piers, who has held a number of
senior positions in the major clearing banks, most recently
with NatWest Group, brings a wealth of experience to the
Group.
The considerable opportunities highlighted at the time of the
flotation for the Group's products in the financial services
market, including new emerging distribution channels, remain
as strong as ever which should lead to significant revenue
growth in the current year.
To take advantage of these opportunities Focus Solutions has
accelerated its sales and marketing recruitment programme with
additional business development managers to cover new markets
and new partnerships. This team will be responsible for the
enhancement of relationships with the service providers in the
financial service market and negotiations with new internet
portals. This team will also secure partnerships required to
deploy new versions of goal:proposal for the mortgage market
place.
The Group is on track to launch a digital TV pilot using its
point of sale software and with its business development team
it is looking to secure partners for worksite marketing.
The successful placing and the significant achievements in the
business over the past year enables the Board to be confident
that the business will continue to build its position as the
leading developer of business to business e-commerce software
solutions for the financial services industry.
6 June, 2000
Focus Solutions Group plc
Consolidated Profit and Loss Account
for the year ended 31 March 2000
2000 1999
£'000 £'000
Turnover 721 360
Staff
costs (1,140) (397)
Depreciation (85) (33)
Other
external
charges (555) (317)
----- -----
Operating
loss (1,059) (387)
Investment
income 32 25
----- -----
(1,027) (362)
Interest
payable (12) (6)
----- -----
Loss on
ordinary
activities
before
taxation (1,039) (368)
Taxation 1 -
----- -----
Loss on
ordinary
activities
after
taxation
& sustained
loss for
the year (1,038) (368)
===== =====
Loss per
ordinary
share (5.6p) (2.6p)
===== =====
Turnover and operating loss areis derived from the Group's
continuing operations.
No separate statement of total recognised gains and losses has
been presented as all such gains and losses have been dealt
with in the profit and loss account.
Focus Solutions Group plc
Balance Sheets
31 March 2000
31 March
2000 1999
£'000 £'000
Fixed
assets
Tangible
assets 165 110
Current
assets
Debtors 312 68
Cash at
bank and
in hand 9,917 444
----- -----
10,229 512
----- -----
Creditors:
Amounts
falling
due within
one year 412 150
----- -----
Net
current
assets 9,817 362
----- -----
Total
assets
less current
liabilities 9,982 472
Creditors:
Amounts
falling
due in
more than
one year 28 41
----- -----
Net
assets 9,954 431
===== =====
Capital &
reserves
Called up
share capital 2,508 1,660
Share
premium 9,426 -
Profit
& loss
account (1,980) (1,229)
----- -----
Shareholders'
funds 9,954 431
===== =====
Focus Solutions Group plc
Consolidated Cash Flow Statement
for the year ended 31 March 2000
2000 1999
£'000 £'000
Net cash
outflow from
operating
activities (1,022) (2998)
Returns on
investments &
servicing of
finance 20 1920
Taxation 1 (1)
Capital
expenditure
& fnancial
investment (92) (85)
----- -----
Cash
outflow
before
financing (1,093) (365)
Financing 10,566 795
----- -----
Increase in
cash in
the year 9,473 430
===== =====
Reconciliation of net cashflow to movement in net funds
2000 1999
£'000 £'000
Increase in
cash in
the year 9,473 430
Change in
net funds
resulting
from cash
flows 61 (14)
New
finance
leases (48) (24)
----- -----
Movement in
net funds
in the year 9,486 392
Net funds
at start
of year 379 (13)
----- -----
Net funds
at end
of year 9,865 379
===== =====