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
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