Interim Results

Access Intelligence PLC 01 August 2006 FOR RELEASE 7.00AM 1 August 2006 ACCESS INTELLIGENCE PLC (Software and computer services group providing critical and legislative driven services to both public and private sectors on a recurring revenue basis) UNAUDITED INTERIM RESULTS FOR SIX MONTHS ENDED 31 MAY 2006 GROUP NOW TRADING PROFITABLY Unaudited Unaudited Audited 6 months ended 6 months ended Year Ended 31 May 31 May 30 Nov 2006 2005 2005 £000s £000s £000s Turnover 1,764 391 1,943 Operating profit (loss) before goodwill amortisation 190 (53) 100 Profit (loss) before tax 54 (53) (10) Profit /(loss) before tax and goodwill amortisation 200 8 175 Adjusted Earnings per share 0.20p 0.01p 0.21p Dividend Nil Nil Nil * Turnover up 352% on six months ended 31 May 2005, helped by contribution from acquisitions * Acquisitions performing well and continuing to contribute to profit growth * Two significant contracts won early in second half * High proportion of incremental sales converting into profit * Actively seeking further acquisitions * Net cash of £534,000 * Looking forward to the second half of the year with optimism For further information: Access Intelligence plc Jeremy Hamer (Chairman) 01904 520840 Brendan Austin (Chief Executive) 01904 520840 Colin Davies (Finance Director) 01904 520840 Corporate Synergy Plc Luke Ahern / Rhod Cruwys / David Seal 020 7448 4400 Cubitt Consulting Brian Coleman-Smith / Allison Reid / Leanne Denman 020 7367 5100 ACCESS INTELLIGENCE PLC ('Access Intelligence' or 'the Company') (Software and computer services group providing critical and legislative driven services to both public and private sectors on a recurring revenue basis) UNAUDITED INTERIM RESULTS FOR SIX MONTHS ENDED 31 MAY 2006 Chairman's Statement We are pleased to announce our results for the six months to 31st May 2006. This has been an exciting period as we progressed the integration of our two summer 2005 acquisitions and benefited from the integration of Backup and Running within Willow Starcom. Our two marketing businesses are also making progress. There has been considerable investment also in product development particularly in our compliance software business Due North. Results Turnover in the first half of the current year was £1.76m (2005: £391,000), an increase of 352% on the comparable period in 2005 and we are pleased to report a profit before tax and goodwill amortisation of £200,000 (2005: £8,000), substantially ahead of the previous year. The unadjusted profit before tax is £54,000 (2005: £53,000 loss) and loss per share of 0.02p (2005: 0.10p loss). The Group has cash and bank balances of £534,000 (2005: £2,420,000). The Directors are not recommending the payment of an ordinary dividend. Operations Our two acquisitions Willow Starcom and Due North have performed well. Annualised recurring revenues at Willow Starcom, our data storage and recovery company, have increased to £1,180,000 from £1,000,000, a rise of 18%. On a year to date proforma basis, the like for like profit has risen to £101,000 from £81,000, an increase of 25%. Investment in the sales resource has been effective, as demonstrated by their largest third party order to date amounting to £128,000 of recurring annual revenue won at the beginning of the second half. Due North, our compliance based business software company, has increased its annualised recurring revenue to £276,000 from £192,000, an increase of 44%. Local authorities who previously had ordered our electronic tendering systems individually are now grouping together to form larger buying portals. Once a portal has been built, the authorities buy the appropriate software to tender through the portal. The North East Portal, NEPO, already use our software as well as 23 North East local authorities. In July we won a contract to build the South East Centre of Excellence portal SECE. This is the largest portal in the local authority sector and gives us the opportunity to sell our e-source software suite to 70 local authorities in the South East of England. We have invested heavily in further developments of this software including a European version. Currently a global organisation with Headquarters in Europe is piloting this version in a live situation. Should this be successful we plan to recruit partners in Europe to sell and support the product. We believe our product is strong enough to compete in Europe and we are encouraged by the interest we have received from potential partners wishing to represent us. We have doubled our Police Authorities customer base from 15 to 29 in England. We have also gained 8 Regional Fire and Rescue authorities. We are beginning to see success in the NHS and University sectors with a portal for South Yorkshire within NHS and orders from Brunel and Newcastle Universities. Our existing companies within marketing services and government information continue to perform to expectation. Wired Gov is now reaching capacity for advertising revenue on the existing news alert service and has recently launched a bi-weekly on-line news supplement summarising government pronouncements with a view to creating further advertising revenues. The Marketing Guild continues to refine its product offering to match market needs. Strategy The Group is continuing its Buy and Build strategy. We intend to focus our acquisition efforts in two distinct sectors going forward. First, Compliance, where increasing legislation is fuelling considerable growth in demand and secondly, Data Backup & Recovery, where storage and retrieval of information has become an increasing challenge for most corporates. Board Change Due to increased commitments with his main interests, Alwin Thompson, Non-executive Director, has decided to step down from the board with immediate effect. The board would like to thank Alwin for his contribution over the past years. Employees As ever, the continued expansion of our client base would not be achieved without the effort of all our employees. I would like to thank them all for their hard work in the period. Outlook We have budgeted for our existing businesses to deliver further improvements in their operating performances in the second half of the year while we continue to look for further earnings enhancing acquisitions in both our Compliance and our Data Backup and Recovery divisions. We are looking forward to the second half of the year with optimism, having already won the two significant contracts mentioned above. Jeremy Hamer Chairman 1 August 2006 ACCESS INTELLIGENCE PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT SIX MONTHS ENDED 31 MAY 2006 Unaudited Unaudited Audited 6 months 6 months Year ended ended Ended 31 May 31 May 30 Nov 2006 2005 2005 £000s £000s £000s Turnover Continuing operations 1,764 391 1,943 ---------- --------- --------- Operating profit (loss) before goodwill amortisation 190 (53) 100 Goodwill amortisation (146) (61) (185) ---------- --------- --------- Operating Profit (loss) 44 (114) (85) Interest receivable 10 61 75 --------- --------- --------- Profit (Loss) before taxation 54 (53) (10) Taxation (65) - (50) ---------- --------- --------- Loss for the period (11) (53) (60) ====== ====== ====== Profit/(Loss) per share (0.02p) (0.10p) (0.10p) Fully diluted Profit/(Loss) per share (0.02p) (0.09p) (0.10p) Profit (Loss) per share excluding goodwill amortisation 0.20p 0.01p 0.21p ACCESS INTELLIGENCE PLC CONSOLIDATED BALANCE SHEET AT 31 MAY 2006 Unaudited Unaudited Audited As at As at As at 31 May 31 May 30 Nov 2006 2005 2005 £000s £000s £000s Fixed assets Intangible assets 5,697 2,604 5,731 Tangible assets 191 102 122 ---------- ---------- --------- 5,888 2,706 5,853 Current assets Stocks 269 14 278 Debtors 1,125 217 1,122 Cash at bank and in hand 534 2,420 603 ---------- ---------- --------- 1,928 2,651 2,003 Creditors: amounts due within one year (1,356) (210) (2,245) ---------- ---------- --------- Net current assets (liabilities) 572 2,441 (242) ---------- ---------- --------- Total assets less current liabilities 6,460 5,147 5,611 Creditors: amounts falling due after more than one year (150) (31) (150) ---------- ---------- --------- Net assets 6,310 5,116 5,461 ====== ====== ====== Share Capital and Reserves Called up share capital 576 482 508 Share premium account 6,170 5,027 5,369 Profit and loss account (436) (393) (416) ---------- ---------- --------- Equity and non-equity shareholders' funds 6,310 5,116 5,461 ========== ========== ========= ACCESS INTELLIGENCE PLC CONSOLIDATED CASH FLOW STATEMENT SIX MONTHS ENDED 31 MAY 2006 Unaudited Unaudited Audited 6 months 6 months Year ended ended Ended 31 May 31 May 30 Nov 2006 2005 2005 £000s £000s £000s Net cash inflow/(outflow) from operating activities 104 (177) (172) Returns on investments and servicing of finance Interest paid - - (4) Interest received 10 61 79 Dividends (8) - (16) Net cash inflow / (outflow) from servicing of finance 2 61 59 Capital expenditure Payments to acquire intangible assets (89) (22) (92) Payments to acquire tangible assets (86) (27) (57) Net cash outflow from capital expenditure (175) (49) (149) Acquisition and disposals Purchase of subsidiary undertaking - - (1,971) Net Cash Acquired 276 Net cash outflow from acquisitions and disposals - - (1,695) ---------- --------- --------- Net cash outflow before use of liquid resources and financing (69) (165) (1,957) Financing Issue of equity share capital - 3,000 3,000 Cost of share issue - (192) (192) Repayment of term loans - (213) (213) ---------- --------- --------- Net cash inflow /(outflow) from - 2,595 2,595 financing ---------- --------- --------- Increase / (decrease) in cash (69) 2,430 638 ========== ========= ========= ACCESS INTELLIGENCE PLC INTERIM ACCOUNTS FOR THE PERIOD 1 DECEMBER 2005 TO 31 MAY 2006 1. The unaudited results for the six months have been prepared on a basis consistent with the accounting policies disclosed in the Group's 2005 accounts and do not constitute statutory accounts within the meaning of Section 240 of the Companies Act. 2. The figures for the period ended 30 November 2005 have been extracted from the statutory accounts, which have been delivered to the Registrar of Companies and received an unqualified audit report. 3. The calculation of earnings per share is based on the profit (loss) after taxation divided by the weighted average number of ordinary shares in issue, being 68,122,355 (6 months to 31 May 2005 - 55,780,851 and period ended 30 November 2005 - 59,152,498). 4. The weighted average number of ordinary shares used in the calculation of diluted earnings per share is 71,472,355 (31 May 2005 - 55,996,318 and period ended 30 November 2005 - 62,502,498). This has been adjusted for the effect of potentially dilutive share options granted under the Company's Share Option and Management Incentive Schemes. 5. An adjusted earnings per share calculation, which excludes goodwill amortisation, is calculated on the basic eps basis to allow shareholders a clearer understanding of the trading performance of the Company. 6. The tax charge is based on the estimated tax rate for the year to 30 November 2006. 7. Reconciliation of Opening Shareholders' Funds Unaudited Unaudited Audited 6 months 6 months Year ended ended Ended 31 May 31 May 30 Nov 2006 2005 2005 £000s £000s £000s Opening shareholders' funds 5,461 2,179 2,179 Loss for the period (11) (53) (60) Dividends paid (8) - (16) Shares issued 868 2,990 3,358 ------- ------- ------- Closing shareholders funds 6,310 5,116 5,461 ======= ======= ======= 8. This statement is being sent to the shareholders of the Company and will be available at the Company's Registered Office at Regency House, Westminster Place, York Business Park, York, YO24 6RW. Background Note: Access Intelligence has three operating divisions: * Data backup and recovery * Willow Starcom (Ridgeway Technologies), based in Chorley, provides specialist IT services across a broad range of market sectors that include data storage, backup and recovery, network design support and consultancy and hardware and software maintenance support services. It has growing # recurring revenues from these activities of over £1.25 million per annum. * Backup and Running, now based within Willow Starcom, provides an online data storage and disaster recovery service, which the client can customise to their own requirements. The service offers significant advantages over other alternative systems in that it backs up automatically and can provide a complete backup history for at least three years. * Compliance software * Due North, based in Newcastle-Upon-Tyne, is a developer and provider of e- commerce solutions, primarily to the public sector and emergency services. The range of products includes an e-tendering module combined with an e-auction module. It's software is used widely in the local authority sector. It is the principle supplier to Police Authorities through the Blue Light Portal and also the Regional Fire and Rescue Authorities * Marketing services and information * The Marketing Guild, based in York, which provides marketing advice and support to small and medium sized businesses. This is in the form of newsletters, consultancy, lead generation and member's services. * Wired Gov, based in Stockport, provides an online information service delivering press releases from over 100 government and public sector bodies. Subscribers can customise the service specifying the agency or topic they require. This information is provided by RNS The company news service from the London Stock Exchange ILFIADRILVIR

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