Preliminary Results

RNS Number : 2868N

Focus Solutions Group PLC

09 June 2010

 



Press Release

9 June 2010

Focus Solutions Group plc

('Focus' or 'the Group')

Preliminary Results for the year ended 31 March 2010

Focus Solutions Group plc (AIM: FSG), a supplier of enterprise solutions to the financial services industry, is pleased to announce its Preliminary Results for the year ended 31 March 2010.

Financial highlights

●	Total revenues up 3% to £9.85 million (FY2009: £9.60 million)
●	Operating profit up 20% to £1.92 million (FY2009: £1.60 million)
●	Adjusted operating profit* up 33% to £2.27 million (FY2009: £1.71 million)
●	EBITDA before exceptional items up 42% to £2.85 million (FY2009: £2.01 million)
●	Profit before tax up 15% to £2.04 million (FY2009: £1.78 million)
●	Net operating margins 19% (FY2009: 17%)
●	Net cash balance £2.40 million (FY2009: £4.00 million)
●	Earnings per share:
	o Fully diluted earnings per share 4.75 pence (FY2009: 5.26 pence)
	o Adjusted fully diluted earnings per share 6.18 pence (FY2009: 5.43 pence)**
●	Licence and support revenue increased to 53% (FY2009: 18%) of total revenue

*Adjusted operating profit comprises operating profit before exceptional items

**As a result of the recognition of a deferred tax asset, the Directors consider that it is appropriate to provide information on a pre-deferred tax fully diluted earnings per share basis

Operating highlights

●	Significant new contract wins during the year included:
	o Mastek £2.75 million
	o Tenet £2.00 million
	o AWD Chase de Vere £1.40 million
●	HSBC went live with phase 2 of their wealth management Point-Of-Sale solution to over 400 users
●	US Patent granted to enable entry into the strategically important US market
●	Appointment of Ron Whatford as Non-Executive Director to the Board of Directors
●	Contract extension with Assureweb, enabling the Group to share in the transactional based revenue for all electronic applications that are submitted via the portal within focus:360°
●	Achieved 'Superior' rating from Investor in Customers ("IIC") for the service experience enjoyed by the Group's customers
●	Major progress in transition of business model towards higher licence revenues
●	Global growth plans, underpinned by Mastek contract win, enabling Mastek to resell focus:360° across North America, Europe  and Asia Pacific regions
●	Entered the new financial year with the Group's strongest ever pipeline

Commenting on the results, Richard Stevenson, Chief Executive, said:

"The Group has again achieved record sales and profits which can be attributed to the investment we have made in our products, the dedication of our staff and the detailed market knowledge we have in our core sectors.  We are excited about the opportunities we have moving forward as we look to diversify our products and geographic markets, and also to continue to meet the needs of our clients who are facing significant regulatory changes.  Building on significant recent contract wins, we have entered this year with the strongest pipeline in the Group's history and look forward to delivering on these opportunities."

Commenting on the results, Alastair Taylor, Chairman, said:

"These results demonstrate significant progress against our objectives of increasing the proportion of the Group's revenue from higher margin licences, recurring and transactional revenues; diversifying the customer base; and leveraging the Group's leading position in the UK and Ireland to secure an increasing number of international opportunities, as well as developing a number of successful indirect channels to market."

For further information:

Focus Solutions Group plc
Richard Stevenson, Chief Executive	Tel: [phone]
Martin Clements, Finance Director	www.focus-solutions.co.uk
finnCap
Simon Starr/ Marc Young/ Charlotte Stranner	Tel: [phone]
	www.finncap.com

Media enquiries:

Abchurch
Heather Salmond / Joanne Shears / Mark Dixon	Tel: [phone]
[e-mail]	www.abchurch-group.com

Notes to editors:

About Focus Solutions Group plc

Focus Solutions is an established and proven supplier of multi-channel distribution solutions to the global financial services industry. 

Focus has delivered over 100 complex front office projects with multiple integration points and partners to a blue chip client base including 8 out of the top 10 UK Life & Pension providers, a number of leading bancassurers including the likes of HSBC and Irish Life, significant wealth management players such as St James's Place and a number of mortgage providers.  The technology truly enables straight through processing whilst providing an engaging client and adviser experience to submit and service business electronically. 

focus:360° is at the core of all client implementations providing a single, agile, multi-channel technology platform.  Focus has brought together three key areas of expertise: software, consultancy and service delivery. This totally integrated approach means clients can distribute any product across any channel. At the same time they can maintain an enterprise-wide view of the customer value and risk.

For further information on Focus, please visit www.focus-solutions.co.uk

Chairman's statement

Introduction

I am pleased to report another successful year for the Group, with both operating profits before exceptional items and sales revenues being in line with market expectations. This has been particularly impressive considering the economic conditions over the last 18 months and is testament to the robust strategy of the Group. We have entered the new financial year with the strongest pipeline in our history and this builds on significant contract wins for focus:360° in the last six months of FY2010 with Tenet, AWD Chase de Vere and Mastek. The Group also continues to win business with its existing client base such as HSBC, demonstrating the strategic importance these blue chip clients place on Focus' software and services.

Moving forward, the contract win with Mastek will help underpin the ambitious global growth plans we have for the Group over the next financial year. Mastek will resell focus:360° across North America, Europe and Asia Pacific regions, and has also become a systems integrator for direct engagements with clients outside of the UK, providing Focus with scaleable resource capabilities on a global basis.

The development of focus:360° over the past two years was undertaken to transition the Group from a largely professional services business building bespoke solutions for, and depending on, a few UK financial services companies to a much more focused, market leading specialist software business providing multi-channel distribution solutions on a global basis. With this objective, the Group has increased high margin, licence revenues  improved visibility of ongoing revenues and diversified its customer base. During FY2010, the Group made real progress in respect of all these targets.  Looking forward, the Group will continue to pursue this strategy and make further progress on these targets. 

The investment in product development, which has been substantial over the past two years, will continue as we continue to invest in developing market leading products. However, the level of this investment has peaked and we expect that this will reduce significantly in FY2011 and beyond.

Operations

In the Chief Executive's report there is a more detailed review of our activities in the year. However, I would like to draw your attention to some of the significant events for the organisation over the past year.  focus:360° wealth management has become the system of choice for large IFAs and IFA networks looking to implement technology that will support their business models post the Retail Distribution Review ("RDR"). This is reflected in the significant contract wins we have achieved with AWD Chase de Vere and Tenet. The contract with Tenet also extends the use of Focus' market leading solution to small IFA firms and adviser firms, helping the Group to penetrate this market further.

We continue to deliver large scale distribution projects with both Bank of Ireland and the wealth management arm of a major UK retail bank, which went live with focus:360° for their advisers in FY2010. In addition, during the past financial year, we completed the second phase of HSBC's multi-channel wealth management solution, which was rolled out to 400 users within their Premier IFA and financial planning direct channels. This built on the initial deployment of the solution to 1,200 financial planning managers, 500 mortgage advisers and 600 premier relationships managers and has delivered a truly unique multi-channel distribution project in the industry.

At the end of this financial year we re-branded The Coaching Platform to become part of the overall Focus brand and make our Group name synonymous with powerful training and competency capabilities. These capabilities have gone from strength to strength since we acquired The Coaching Platform in December 2008, with the achievement of 'Accredited Training Provider' from the Chartered Institute for Securities and Investment ("CISI") and our question banks being selected by The Chartered Insurance Institute ("CII") for use by their members.

In November 2009 we were granted a patent by the U.S. Patent and Trademark Office for electronic forms and data verification, covering the Group's innovative suite of highly flexible development tools, focus:technology. Through achieving this US patent, we have provided further evidence of the technological leadership of the Group as well as giving us greater credibility as we look to extend our existing successful products and services into the US market.

Finally, in March 2010, Focus achieved a 'Superior' rating from the Investors in Customers ("IIC") for the service experience enjoyed by the Group's customers. Our proven delivery track record has always been a key asset of the organisation and it was heartening to see that the Group's ability to implement large scale solutions to the required timescales, whilst providing a great customer experience, is recognised and valued by our customers.

Management and staff

As a technology-based company with strong domain knowledge of the markets we serve, our success is built upon retaining a highly skilled and motivated workforce. I would like to express my thanks to all our employees for their efforts over the past year. The enthusiasm, commitment and loyalty of our staff remain vital in enabling the Group to deliver on its strategy. During the year we welcomed Ron Whatford as a Non-Executive Director. Ron previously held several senior executive roles across the Lloyds Banking Group and has brought to the Group a wealth of experience in the retail banking industry.

Outlook

In addition to continuing our focus on the UK enterprise market, we will also look to expand our customer base by distributing our solutions through partners and delivering a Software as a Service ("SaaS") proposition to smaller adviser firms. We are also seeing significant opportunities for our solutions beyond the United Kingdom and Ireland, particularly across Europe and in Asia Pacific and it will be a key objective of the Group in the year ahead to enhance our presence in these regions.

As has been previously outlined, the Group has a clear strategy for growth and the Board is looking to accelerate the development of its business by a combination of partnerships, joint ventures and strategic acquisitions.

During FY2010, the Group successfully applied to the court for the cancellation of its share premium account, thereby creating distributable reserves. This will allow the company to pay a dividend to shareholders in the future.  The Board will continue to keep this under constant review.

The new financial year has started well and trading remains in line with management expectations. We are continuing to build a solid pipeline across all our propositions and we continue to see demand being driven by regulation, particularly the RDR.

Alastair M Taylor

Chairman

8 June 2010

Chief Executive's report

Strategic objectives

·      Become the vendor of choice for multi-channel distribution projects for national and global financial service organisations

·      Expand the usage of focus:360° to the mid market through partnerships

·      Increase the proportion of revenue derived from customers outside the UK and Ireland

·      Increase percentage of turnover from licences, transactions and other forms of recurring revenue

Overview

The Group continues to execute on its stated strategy and during the past year we have grown the volume of revenue generated through licence sales as well as diversifying our customer base by securing contracts with the likes of AWD Chase de Vere, Tenet and Mastek. We have also started to enjoy some success in expanding the organisation globally, beyond our traditional UK and Irish markets. In particular, our contract win with Mastek extends the Group's reach into North America, Europe and Asia Pacific.

Investment in focus:360° remains a priority of the Group. We have continued to invest in developing additional functionality to support our target markets with transitioning their business models in line with regulatory requirements such as the RDR. This regulation will continue to drive demand for focus:360°, TestMeOnline and our supporting services over the next few years and we expect to attract significant opportunities as the deadline for implementation draws nearer.

We see the scrutiny on the global retail banking sector continuing throughout this financial year, with increasing pressure on banks to demonstrate compliance and risk management. We are well placed to assist them with achieving these goals, through both focus:360° and our focus:enterprise propositions.

As a Group we pride ourselves on our unique offering to the financial services sector. Not only do we have a market leading solution in focus:360°, we also provide our clients with deep domain knowledge of both the market and their internal processes and have a proven delivery track record as well as powerful training and competency services. We believe this set of capabilities is unrivalled in our sector.

Business performance

The Group again achieved record revenues and profits before tax in FY2010.  Turnover increased by 3% from £9.60 million in FY2009 to £9.85 million in FY2010. This growth was driven principally through increased licence sales of focus:360° software, supported by professional service revenues provided to HSBC Bank plc and other established customers.  At the trading level, operating profit before exceptional costs increased by 33% from £1.71 million to £2.27 million.

Basic and diluted earnings per share for the year ended 31 March 2010 were 5.29 pence per share and 4.75 pence per share, compared with 5.85 pence for basic and 5.26 pence for fully diluted earnings per share for the year ended 31 March 2009. Our preferred measure of earnings per share, which excludes the impact of the recognition of tax losses which arose in the initial stages of the company's development, is pre-deferred tax adjusted EPS.  Using this measure, "adjusted" basic EPS have increased to 6.88 pence from 6.03 pence last year and "adjusted" fully diluted EPS have increased to 6.18 pence from 5.43 pence.

As at 31 March 2010, cash deposits totalled £2.40 million (FY2009: £4.00 million). The Group also has unused bank facilities totalling £0.75 million should we require them. The balance sheet remains debt free.

Markets

Through our focus:360° product suite, TestMeOnline and our range of supporting training and consultancy services we have compelling propositions for each of our core markets: global retail banks, wealth managers, building societies, life and pension providers and the largest IFAs and IFA networks. We also have a clear understanding of the drivers and issues facing these organisations and have tailored our solutions to fulfill those requirements.

The key trends and issues being experienced across the financial services sector are favourable for the Group's strategy and we are well positioned to capitalise on the opportunities that they present.

Partners

It would be impractical for Focus to seek to develop every element of a multi-channel distribution solution itself; instead it is important for the Group to seek out 'best of breed' partners to provide key components. To this end, we have established strategic partnerships with Barrie & Hibbert, Assureweb and others.

Partners also play an important part in the Group's expansion strategy, particularly in providing scalability outside of our traditional markets. Our recent partnership with Mastek is an excellent example of how Focus is working with large industry players to secure market share globally.

Strategy

Our strategic goals are clear:

·      To become the vendor of choice for multi-channel distribution projects for global retail banks. Through our investment in focus:360° we have developed a solution that transforms the experience that banks are able to provide to their customers by supporting any channel, any sales process, any product and any advice model from a single platform. Our solution also enables banks to achieve a single view of their customers, allowing them to have a consolidated view of any risks associated with each client as well as potential "up-sell" opportunities. The capability of this solution is unrivalled in the retail banking market.

·      To expand the usage of our solutions in the mid market by delivering a SaaS model through strategic partnerships to service organisations with fewer than 50 users.

·      To establish a presence within the AsiaPac region. The increasing number of affluent individuals in the AsiaPac region means that this is a key growth region for the Group. Our market leading product, focus:360° includes the recent innovations we have included around our direct to consumer capabilities making it an even more attractive proposition for this market.

·      To continue to look to increase the proportion of our turnover arising from annually recurring licence and support revenues. We have made good progress in this respect during the past financial year with focus:360° which is designed to be sold on a per user per annum basis and is central to continuing to delivering this strategic goal.

We recognise that in today's market, Focus Solutions must develop greater scale and our contract win with Mastek will provide us with flexible resource capabilities on a global basis, enabling us to achieve this. 

The acquisition of The Coaching Platform in late 2008 has had a positive impact on the Group and over the past year the services provided by our training company have become fully integrated within the overall Focus offering. We have now re-branded The Coaching Platform under the Focus Solutions name and this will see the Group become even more synonymous with providing excellent training capabilities. It will also add to our combined value proposition of market leading multi-channel distribution software, in-depth domain knowledge and a tried and trusted delivery approach.

Moving forward one of our strategies will be to extend our strong position of delivering multi-channel distribution solutions from the financial services sector into other verticals, thereby extending our product portfolio, expanding our client base and bringing added value to our customer base.

Focus is well positioned in the financial services industry; we have competitively rewarded, talented individuals who have extensive industry knowledge and practical experience of implementing multi-channel distribution solutions into the largest players in the market. We have added training and competency capabilities to this expertise so our customers can be assured that they have highly skilled staff delivering on their business propositions. These qualities combined with our market leading technology and a clearly defined strategy mean that Focus is at the forefront of software providers in our industry.

Outlook

Despite difficult economic conditions in the last 18 months, we are now seeing strong improvements in our key markets and the new financial year has started positively and in line with our expectations. We look forward to capitalising on the significant opportunities that are developing for the Group across both new geographical regions and new client markets, as well as those being driven by regulation enabling us to continue to develop a successful, consistently growing and cash generative business.

Richard Stevenson

Chief Executive

8th June 2010

Finance Director's Report

Financial review

FY2010 has been a record year for the Group in terms of sales revenues and operating profits. Group revenues increased by 3% to £9.85 million (FY2009: £9.60 million). Operating profit for FY2010 before exceptional costs increased to £2.27 million (FY2009: £1.71 million). With strong growth in software licence sales, operating profit margins before exceptional costs rose from 17.8% to 22.9%. 

Exceptional items comprised restructuring costs, principally redundancy costs, costs associated with the termination of onerous contracts and costs related to share based payments under IFRS2 (FY2009: Exceptional items comprised costs related to share based payments under IFRS2). After exceptional items, the Group made an operating profit of £1.92 million, compared to £1.60 million in FY2009.

Key Performance Indicators		2010		2009
Revenue	£m	9.85		9.60
Licence and support revenue as % of total revenue	%	53		18
Operating profit before exceptional costs	£m	2.27		1.71
Operating profit before exceptional costs as % of total revenue	%	23		18
EBITDA before exceptional costs	£m	2.85		2.01
Net cash inflow from operating activities	£m	0.13		4.37
Total R&D spend	£m	2.05		1.55
Total R&D spend as % of total revenue	%	21		16
Number of customers spending more than £100k in year	no.	8		11
Number of customers spending more than £1,000k in year	no.	3		1

Taxation

The Group has tax losses of £1.13 million as at 31 March 2010 (FY2009: £3.68 million). A deferred tax asset of £0.59 million (FY2009:£0.97 million) in respect of losses and other timing differences has been recognised in full. The result of this action is a non-cash charge to the profit and loss account of £0.47 million (FY2009:£0.05 million), as the Group utilises the remaining tax losses.

Profit for the year

Profit for the year of £1.57 million compared to £1.72 million in FY2009. This decrease is primarily due to movements in deferred taxation.

Earnings per share

As a result of the deferred tax charge this year (and credit last year), the basic and fully diluted EPS calculations exhibit a high degree of volatility. A more stable measure of EPS, which excludes the impact of the recognition of tax losses which arose in the initial stages of the company's development, is pre-deferred tax adjusted EPS. Using this measure, "adjusted" basic EPS have increased to 6.88 pence from 6.03 pence last year and "adjusted" fully diluted EPS have increased from 5.43 pence to 6.18 pence.

Cash flow

As expected, operating cash flow has declined compared to last year. This reflected the anticipated timing of the receipt of payments on two major projects in particular. As a result, this generated net cash inflowsfrom operating activities of £0.13 million (FY2009: £4.37 million inflow) leading to a net cash balance of £2.40 million at the end of FY2010 (FY2009: £4.00 million).

Martin Clements
Finance Director
8 June 2010

Consolidated income statement
for the year ended 31 March 2010

		2010	2009
	Notes	£'000	£'000
Revenue		9,849	9,601
Cost of sales		(3,694)	(4,477)
Gross profit		6,155	5,124
Overheads:
Distribution costs		(1,370)	(1,075)
Administrative expenses (including exceptional costs of £348,000, FY2009: £106,000)		(2,868)	(2,449)
		(4,238)	(3,524)
Operating profit		1,917	1,600
Operating profit before exceptional costs		2,265	1,706
Share based payment expense		(22)	(106)
Re-organisation costs		(169)	-
Onerous contract costs		(157)	-
Operating profit after exceptional costs		1,917	1,600
Finance income		119	179
Finance costs		-	(2)
Net finance income		119	177
Profit before income tax		2,036	1,777
Income tax		(471)	(54)
Profit for the year		1,565	1,723
Attributable to equity holders of the company		1,565	1,723
Earnings per ordinary share
Basic	3	5.29	5.85
Diluted	3	4.75	5.26

The operating profit for both years arises from the Group's continuing operations.

Consolidated statement of comprehensive income
for the year ended 31 March 2010

		2010	2009
		£'000	£'000
Profit for the year		1,565	1,723
Total comprehensive income for the year		1,565	1,723
Attributable to:
Equity holders of the company		1,565	1,723

Consolidated statement of changes in equity
for the year ended 31 March 2010

	Share capital	Share premium	Merger reserve	Share option reserve	Special reserve	Accumulated losses	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 1 April 2008	2,946	9,899	220	149	-	(7,073)	6,141
Profit for the year	-	-	-	-	-	1,723	1,723
Other comprehensive income:
Share capital issued	1	1	-	-	-	-	2
Share based payments	-	-	-	-	106	-	106
At 31 March 2009	2,947	9,900	220	149	106	(5,350)	7,972
Profit for the year	-	-	-	-	-	1,565	1,565
Other comprehensive income:
Share capital issued	16	16	-	-	-	-	32
Share based payments	-	-	-	22	-	-	22
Share premium account reduction	-	(8,465)	-	-	8,465	-	-
Tax credit relating to share option scheme	-	-	-	-	-	93	93
At 31 March 2010	2,963	1,451	220	171	8,571	(3,692)	9,684

Consolidated balance sheet
as at 31 March 2010

		2010	2009
		£'000	£'000
Non-current assets
Intangible assets		3,087	2,083
Property, plant and equipment		145	202
Trade and other receivables		2,551	345
Deferred income tax		594	972
		6,377	3,602
Current assets
Trade and other receivables		3,955	2,669
Cash and cash equivalents		2,401	4,004
		6,356	6,673
Total assets		12,733	10,275
Current liabilities
Trade and other payables		3,049	2,147
Net current assets		9,684	8,128
Non-current liabilities
Contingent consideration		-	156
		-	156
Net assets		9,684	7,972
Capital and reserves attributable to equity holders of the company
Called up share capital		2,963	2,947
Share premium		1,451	9,900
Merger reserve		220	220
Share option reserve		277	255
Special reserve		8,465	-
Accumulated losses		(3,692)	(5,350)
Total shareholders' equity		9,684	7,972

 

Consolidated cash flow statement
for the year ended 31 March 2010

	Notes	2010	2009
		£'000	£'000
Cash generated from operations	4	126	4,189
Net finance income		3	177
Net cash from operating activities		129	4,366
Investing activities
Acquisition of subsidiary		-	(105)
Purchases of intangible assets		(1,725)	(1,194)
Purchases of property, plant and equipment		(40)	(93)
Disposal of property, plant and equipment		1	1
Net cash used in investing activities		(1,764)	(1,391)
Financing activities
Issue of ordinary shares		32	2
Net cash from financing activities		32	2
Net (decrease)/increase in cash and cash equivalents		(1,603)	2,977
Cash and cash equivalents at start of the year		4,004	1,027
Cash and cash equivalents at end of the year		2,401	4,004

Notes to the Accounts

1. The consolidated financial statements of Focus Solutions Group plc have been prepared on a going concern basis, under the historical cost convention, in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU), IFRIC interpretations and the Companies Act 2006.  The financial information set out herein (which was approved by the Board on 8 June 2010) does not constitute the Company's statutory accounts for the years ended 31 March 2010 and 31 March 2009 but is derived from those statutory accounts. The statutory accounts for the year ended 31 March 2009 have been delivered to the Registrar of Companies.  

2.   Segmental analysis

Focus Solutions Group is a provider of software and consultancy services.  The Board of Focus Solutions Group plc predominately manages the operations of the Group on an overall basis as one segment.  Following the adoption of the principles set out in IFRS 8 'Operating Segments', the Group has concluded that it has one operating segment.  This conclusion is consistent with the nature of the information that is presented to the Board of Directors of the parent company, which is considered to be the Chief Operating Decision Maker ("CODM") for the purposes of IFRS 8. 

The Group's principal operations are in the United Kingdom.  Its revenue from external customers in the United Kingdom for the year was £7.20 million (FY2009: £9.26 million).  The total revenue from external customers in other countries was £2.65 million (FY2009: £0.39 million), with £0.38 million (FY2009: £0.39 million) derived from Ireland and £2.27 million (FY2009:£nil) from India.

Revenues of £3.75 million (FY2009: £6.18 million), £2.27 million (FY2009: £nil) and £1.38 million (FY2009: £0.24 million) are derived from three external customers.  These revenues are from the only customers that represent individually over 10% of the Group's revenues.

3.   Earnings per share

The basic earnings per share is based on attributable profit for the year of £1,565,000 (FY2009: £1,723,000) and on 29,591,083 ordinary shares (FY2009: 29,462,933) being the weighted average number of ordinary shares in issue during the year.  

The diluted earnings per share is based on attributable profit for the year of £1,565,000 (FY2009: £1,723,000) and on 32,929,482 shares (FY2009: 32,740,597) calculated as follows:

	2010	2009
	'000	'000
Basic weighted average number of ordinary shares	29,591	29,463
Dilutive potential ordinary shares:
Share options	3,338	3,278
	32,929	32,741

As a result of the recognition of a deferred tax asset in the prior year, the Directors consider that it is appropriate to provide information on a pre-deferred tax fully diluted earnings per share basis.

Pre-deferred tax adjusted basic earnings per share is based on the pre-deferred tax attributable profit for the year of £2,036,000 (FY2009: £1,777,000) and on 29,591,083 ordinary shares (FY2009: 29,462,933) being the weighted average number of ordinary shares in issue during the year.

The pre-deferred tax adjusted fully diluted earnings per share is based on the pre-deferred tax attributable profit for the year of £2,036,000 (FY2009: £1,777,000) and on 32,929,482 shares (FY2009: 32,740,597) calculated as follows:

	2010	2009
	'000	'000
Basic weighted average number of ordinary shares	29,591	29,463
Dilutive potential ordinary shares:
Share options	3,338	3,278
	32,929	32,741
	2010 Pence	2009 Pence
Basic earnings per share	5.29	5.85
Adjusted basic earnings per share	6.88	6.03
Diluted earnings per share	4.75	5.26
Adjusted diluted earnings per share	6.18	5.43

4.  Cash generated from operations

	2010	2009
	£'000	£'000
Profit before income tax	2,036	1,777
Adjustments for:
Share based payment expense	22	106
Depreciation and amortisation	582	301
Net finance income	(3)	(177)
Changes in working capital:
Trade and other receivables	(3,492)	1,947
Trade and other payables	981	235
Cash generated from operations	126	4,189

5.   Report and Accounts

Copies of the Report and Accounts will be circulated to shareholders shortly and may be obtained after the posting date from the Company Secretary, Focus Solutions Group Plc, Cranford House, Kenilworth Road, Leamington Spa, CV32 6RQ.

 6.   AGM      

The AGM will be held at 10.00 a.m on 5 August 2010 at the registered office of the Company (Cranford House, Kenilworth Road, Leamington Spa, CV32 6RQ).

 

END

 

 

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