Interim Results-Replacement
Mission Testing PLC
6 March 2002
The issuer advises that the following replaces the Interim
Results announcement released today, at 7:00, under RNS
number 4740s.
The Record Date for the Dividend should have read 15 March
2002 and not 13 March 2002 as previously stated.
All other details remain unchanged. The full amended text
appears below.
Mission Testing plc
('Mission Testing' or 'the Group')
Interim results for the six months to 31 December 2001
Financial Highlights
Mission Testing, the leading provider of specialist software
testing solutions and services, is pleased to announce its
interim results for the six months ended 31 December 2001.
Unaudited Unaudited Audited
Six months Six months Year
Ended Ended Ended
31 December 31 December 30 June
2001 2000 2001
£'000 £'000 £'000
TURNOVER 9,028 4,988 10,515
OPERATING PROFIT BEFORE
EXCEPTIONAL COSTS AND
GOODWILL 730 546 1,104
PROFIT BEFORE TAX, EXCEPTIONAL
COSTS AND GOODWILL 897 505 1,277
EARNINGS PER SHARE
(ADJUSTED FOR EXCEPTIONALS AND GOODWILL)
- Adjusted Basic (pence) 3.74 3.17 4.56
- Adjusted Diluted (pence) 3.70 3.14 4.43
DIVIDENDS (PENCE) 1.00 - 1.50
- Revenues up 81% to £9.03m (Dec 2000: £4.99m)
- Operating profit before tax and exceptional costs up 34%
to £730,000 (Dec 2000: £546,000)
- Profit before tax, exceptional costs and goodwill up 78%
to £897,000 (Dec 2000: £505,000)
- Adjusted diluted earnings per share before exceptional
costs including tax effect and amortisation of goodwill up
18% to 3.70p (Dec 2000: 3.14p)
- Cash balance of £8.02m (Dec 2000: £8.56m) at period end,
after £0.8m cash investment in acquisition
Commenting on the results and future prospects, Tony Wells,
Chief Executive Officer said; 'After an encouraging set of
results for the six months to December 2001, we remain
optimistic about our future prospects. With the undoubted
challenges in the IT services market we cannot afford to be
complacent about our success to date. However, with our
growing team of experienced focused professionals, expanding
customer base and enhanced service propositions, we are
firmly on track to becoming the UK's leading software
testing solutions provider.'
For further information, please contact:
Mission Testing plc (06/03/02) 020 7950 2800
Tony Wells, Chief Executive (Thereafter) 01293 457 123
Weber Shandwick Square Mile 020 7950 2800
Terry Garrett
Anna Watson
Mission Testing plc
('Mission Testing' or 'the Group')
Interim Results for the six months ended 31 December 2001
Chairman's Statement
I am pleased to report the results for Mission Testing plc
for the six months ended 31 December 2001. Yet again, the
Group is demonstrating considerable growth in a business
climate, which continues to be challenging.
Financial Review
Trading in the first half of this year has been strong.
Revenue in the period has increased by an impressive 81% to
£9.03m from £4.99m over the corresponding six months of the
prior year. Operating profit, before goodwill, exceptional
costs & interest, grew by 34% to £730,000 (Dec 2000 :
£546,000) illustrating the impact of the increased
investment in the business. Profit before tax, exceptional
costs and goodwill increased by 78% to £897,000 (Dec 2000:
£505,000). Diluted earnings per share before exceptional
costs advanced by 18% to 3.70p (Dec 2000: 3.14p).
The growth rate enjoyed by Mission Testing requires
considerable investment in infrastructure to support it.
During the period we increased expenditure in support,
administration and technology in order to build a strong
platform for sustained organic growth and selective
acquisitions where appropriate. We also incurred exceptional
restructuring and integration costs of £124,000, which
resulted from our continued efforts to finesse the
positioning of our business and its people.
At the end of the period the Group had net cash balances of
£8.02m.
Acquisition update
On 24 August 2001, the Group acquired the entire issued
share capital of Specialist Testing Solutions Limited
('STS') for a maximum consideration of £3.7m excluding costs
of £110,000, satisfied by £700,000 of cash and up to
1,600,000 new Ordinary Shares in Mission Testing plc. Of
these, 1,350,000 shares were issued on completion and up to
a further 250,000 shares are due to be issued on finalisation
of the STS completion accounts.
STS added revenue of £867,000 and £81,000 of operating
profit in the period and is completely integrated with
Mission Testing. Although the enhancement to earnings has
been slower than expected, restructuring means that we are
benefiting from additional, consultancy skills and several
new clients, which offer promising long term potential. We
have also benefited from the addition of an office in
Manchester, which is a platform to support local clients and
will increase our presence in the North of England.
The Mission Testing Team
Change is inevitable in a business undergoing extraordinary
growth. I accepted the resignations of both Peter
Basterfield, Director and co-founder, and David Abery, our
Finance Director who joined to facilitate the admission
process. On behalf of the Board, I would like to thank them
for their respective contributions and wish them both well
for the future.
On 11 December 2001, we welcomed Carl Thompson as our new
Finance Director. Carl has invaluable experience of the
professional services sector, primarily gained from nine
years at ICL where he was a divisional Finance Director.
Recruiting and retaining high quality people remains a vital
component of Mission Testing's growth strategy and, as I
stated at our AGM on 7 November 2001, we will continue to
review and develop a senior management team that is
appropriate to the Group's development.
I would like to thank all of the staff of Mission Testing
for their excellent and continuing efforts, particularly
with the pressures evident in today's IT services market.
Outlook
The market for software testing solutions and services
continues to offer substantial long term growth
opportunities. Mission Testing is enjoying an increasingly
prominent position in the UK and we have successfully
secured new business with organisations embarking on
projects where risk management is particularly important,
most notably in the retail banking sector.
However, the events witnessed in the United States last year
have inevitably delayed both planned and discretionary spend
on many IT projects worldwide. Whilst software testing has
grown significantly in importance and taken an increasing
share of IT budgets, it is not immune in a sector, which has
faced considerable challenges in the last five months.
Whilst sounding a note of caution for the full year, we are
continuing to invest in building superior business
development and consultancy teams in the firm belief that
Mission Testing is in a strong position to take advantage of
future growth opportunities.
We are in excellent shape for a business still only in its
fourth year. Reporting solid trading results for the first
half of 2001/02 and from a position of substantial financial
strength we continue to look forward to the future with
confidence.
Dividend
The Directors are pleased to recommend an interim dividend
of 1.00p per share (Dec 2000: Nil). The dividend will be
paid on 12 April 2002 to those shareholders on the Register
at the close of business on 15 March 2002.
Graham Pooley
Chairman
For further information, please contact:
Mission Testing plc (06/03/02) 020 7950 2800
Tony Wells, Chief Executive (Thereafter) 01293 457 123
Weber Shandwick Square Mile 020 7950 2800
Terry Garrett
Anna Watson
MISSION TESTING plc
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Unaudited Unaudited Audited
Six months Six months Year
Ended Ended Ended
31 December 31 December 30 June
2001 2000 2001
Notes £'000 £'000 £'000
TURNOVER 9,028 4,988 10,515
Net operating costs (8,298) (4,442) (9,411)
Exceptional costs 4 (124) (310) (310)
________ ________ ________
OPERATING PROFIT 606 236 794
(Before goodwill amortisation)
Goodwill amortisation (136) - -
Net interest 167 (41) 173
________ ________ ________
PROFIT ON ORDINARY ACTIVITIES 637 195 967
BEFORE TAXATION
Tax on profit on ordinary
activities 3 (232) (74) (337)
________ ________ ________
PROFIT ON ORDINARY ACTIVITIES 405 121 630
AFTER TAXATION
Dividends* 5 (172) (48) (305)
________ ________ ________
RETAINED PROFIT FOR THE PERIOD 233 73 325
________ ________ ________
EARNINGS PER SHARE (PENCE)
Basic EPS 6 2.42 1.02 4.56
Adjusted Basic EPS
(excluding exceptional
costs and goodwill) 6 3.74 3.17 6.41
Diluted EPS
(including exceptional
costs and goodwill) 6 2.39 1.01 4.43
The Group had no recognised gains or losses, in either the
current or prior periods, other than those dealt with in the
profit and loss account.
All of the results derive from continuing operations.
* Dividends of £48,000 paid during the period to 31 December
2000 are those paid to the shareholders of Mission Testing
Europe Limited (now the wholly owned subsidiary of Mission
Testing plc) for the periods prior to the Group's admission
to AIM.
MISSION TESTING plc
CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited
Six months Six months Year
Ended Ended Ended
31 December 31 December 30 June
2001 2000 2001
£'000 £'000 £'000
Notes
INTANGIBLE FIXED ASSETS
Goodwill 3,933 - -
TANGIBLE FIXED ASSETS 200 79 121
CURRENT ASSETS
Debtors 3,265 2,501 2,092
Cash at bank and in hand 8,016 8,564 8,985
CREDITORS
Amounts falling due within
one year (2,996) (1,743) (1,545)
NET CURRENT ASSETS 8,285 9,322 9,532
________ ________ ________
TOTAL ASSETS LESS CURRENT
LIABILITIES 12,418 9,401 9,654
________ ________ ________
CAPITAL AND RESERVES
Called up share capital 1,716 1,581 1,581
Share premium account 10,890 8,493 8,493
Merger reserve 8 (1,123) (1,123) (1,123)
Other reserve 100 100 100
Profit and loss account 835 350 602
________ ________ ________
EQUITY SHAREHOLDERS' FUNDS 12,418 9,401 9,653
________ ________ ________
MISSION TESTING plc
CONSOLIDATED CASHFLOW
Unaudited Unaudited Audited
Six months Six months Year
Ended Ended Ended
31 December 31 December 30 June
2001 2000 2001
Notes £'000 £'000 £'000
NET CASH (OUTFLOW)/INFLOW
FROM OPERATING ACTIVITIES 7 (14) (323) 96
Returns on investments and
servicing of finance 167 (41) 173
TAXATION
Corporation tax paid (29) - (129)
CAPITAL EXPENDITURE
Payments to acquire fixed assets (59) (47) (112)
Cash acquired with subsidiary 33 - -
Acquisition of subsidiary (810) - -
EQUITY DIVIDENDS PAID (257) (48) (66)
________ ________ ________
Cash outflow before management
of liquid resources and
financing (969) (459) (38)
FINANCING
Issue of ordinary shares - 9,051 9,051
(Decrease) in debenture loans - (75) (75)
________ ________ ________
(DECREASE)/INCREASE IN CASH (969) 8,517 8,938
________ ________ ________
MISSION TESTING plc
NOTES TO THE UNAUDITED INTERIM REPORT
1 BASIS OF PREPARATION OF INTERIM FINANCIAL INFORMATION
The consolidated interim financial information for
Mission Testing plc ('Mission Testing or the Group')
has been prepared on the basis of the accounting
policies set out in the statutory accounts of the group
for the year ended 30 June 2001.
The financial information contained in this interim
statement does not constitute statutory accounts as
defined in section 240 of the Companies Act 1985. The
financial information for the full preceding year is
based on the statutory accounts of Mission Testing plc
for the financial year ended 30 June 2001. Those
accounts, upon which the auditors issued an unqualified
opinion and did not contain a statement under section
237 (2) or (3) of the Companies Act 1985, have been
delivered to the Registrar of Companies.
2 ACQUISITION OF SUBSIDIARY
On 24 August 2001, the Group acquired the entire issued
share capital of STS, a UK based company engaged in the
supply of software testing consultancy services. The
results for STS for the period post acquisition are
consolidated and included within the interim financial
information for Mission Testing. During the interim
period STS contributed £867,000 of turnover and £81,000
of operating profit towards group results.
3 TAXATION
The tax charge for the half year has been based on the
estimated effective tax rate for the full year.
4 EXCEPTIONAL COSTS
The profit and loss account for the period to 31
December 2001 includes exceptional expenses of
£124,000, associated with the reorganisation of the
group following the acquisition of STS in August 2001
(Dec 2000: £310,000). Exceptional costs in the period
to 31 December 2000, related to costs incurred in the
admission on AIM.
5 DIVIDENDS
The directors recommend that an interim dividend of
1.00 pence per share be paid in respect of the period
to 31 December 2001 amounting to £171,572 (Dec 2000:
£Nil) on 12 April 2002 for those shareholders on the
register at 15 March 2002.
6 EARNINGS PER ORDINARY SHARE
The calculation of basic earnings per share is based on
attributable profit of £405,000 (Dec 2000: £121,000,
June 2001: £631,000), divided by the weighted average
number of ordinary shares in issue of 16,760,975 shares
(Dec 2000: 11,874,735, June 2001: 13,824,792). The
adjusted basic earnings per share is based on the
attributable profit of £628,000 (Dec 2000: £376,000,
June 2001: £886,000) which is after adjusting for
exceptional costs of £124,000 (Dec 2000: £310,000, June
2001: £310,000) and the tax effect thereon of £37,000
(Dec 2000: £55,000, June 2001: £ 55,000) and goodwill
amortisation of £136,000 (Dec 2000: £Nil, June 2001:
£Nil). The diluted earnings per share calculation are
based on 16,951,812 (Dec 2000: 11,974,378, June 2001:
14,232,216) Ordinary Shares and reflect the exercise of
all options granted.
7 RECONCILIATION OF OPERATING PROFIT TO NET CASH FLOW
FROM OPERATING ACTIVITIES
Unaudited Unaudited Audited
Six months Six months Year
Ended Ended Ended
31 December 31 December 30 June
2001 2000 2001
£ £ £
Operating profit before
goodwill amortisation 606 236 794
Depreciation 46 13 35
(Increase) in debtors (612) (943) (534)
Increase/(decrease) in
creditors (54) 371 (199)
________ ________ ________
Net cash flow from
operating activities (14) (323) 96
________ ________ ________
8 MERGER RESERVE
Mission Testing plc previously acquired the entire
issued share capital of Mission Testing Europe Limited
in exchange for the issue of shares in Mission Testing
plc. The merger reserve represents the difference
between the total nominal value of ordinary shares
issued to former Mission Testing Europe Limited
shareholders and the total nominal value of the Mission
Testing Europe Limited shares acquired.
9 CIRCULATION TO SHAREHOLDERS
Copies of this interim statement will be sent to
shareholders on 15 March 2002 and copies will be
available to the public at the Mission Testing
registered office, Sterling House, High Street,
Crawley, West Sussex, RH10 1GE or from
www.missiontesting.com
Independent review report by KPMG Audit Plc to Mission
Testing plc
Introduction
We have been instructed by the company to review the
financial information set out on pages 4 to 8 and we have
read the other information contained in the interim report
and considered whether it contains any apparent
misstatements or material inconsistencies with the financial
information.
Directors' responsibilities
The interim report, including the financial information
contained therein, is the responsibility of, and has been
approved by, the directors. The directors are responsible
for preparing the interim report in accordance with the
Listing Rules of the Financial Services Authority which
require that the accounting policies and presentation
applied to the interim figures should be consistent with
those applied in preparing the preceding annual accounts
except where they are to be changed in the next annual
accounts in which case any changes, and the reasons for
them, are to be disclosed.
Review work performed
We conducted our review in accordance with guidance
contained in Bulletin 1999/4: Review of interim financial
information issued by the Auditing Practices Board for use
in the United Kingdom. A review consists principally of
making enquiries of group management and applying analytical
procedures to the financial information and underlying
financial data and, based thereon, assessing whether the
accounting policies and presentation have been consistently
applied unless otherwise disclosed. A review is
substantially less in scope than an audit performed in
accordance with Auditing Standards and therefore provides a
lower level of assurance than an audit. Accordingly we do
not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material
modifications that should be made to the financial
information as presented for the six months ended 31
December 2001.
KPMG Audit Plc
Chartered Accountants
Crawley
6 March 2002
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 4 hours ago Regional REIT Limited
- 4 hours ago Regional REIT Limited
- 4 hours ago Polar Capital Holdings
- 5 hours ago Norcros
- 5 hours ago London Stock Exchange Group