Final Results
Synchronica PLC
25 April 2006
Embargoed, for release at 0700h, 25 April 2006
Synchronica plc
("Synchronica" or "the Company")
Preliminary Results for the Year to 31 December 2005
London, 25 April 2006 - Synchronica, an international developer and provider of
mobile device management and synchronisation solutions, announces its
preliminary results for the year to 31 December 2005.
Summary
o Fundamental restructuring of the business and its products largely
completed, new management team in place under CEO Carsten Brinkschulte.
o Acquisition and integration of Berlin based Synchronica GmbH -
technology portfolio substantially expanded.
o Successful fundraising to secure £5 million.
o Revenues in line with stock market expectations at £3.1million (2004:
£2.4 million).
o Year end cash balances of £6.6 million, £5.6 million at 31 March 2006.
John Gunn, Chairman, said, "We are making progress towards our priority goal of
restoring value to shareholders. Everyone at Synchronica is playing their part
in this process and I thank all of them, on behalf of the Board and
shareholders, for the effort and dedication they bring to achieving our new
business goals."
Commenting, Carsten Brinkschulte, Chief Executive Officer, said, "We are making
progress; I am pleased to report that the restructuring is on course and already
having a positive effect on the business. We now have a focused suite of
products, all with significant competitive advantages, and we are gaining market
traction. I am confident the Company's financial performance will improve in
2006."
For more information please visit www.synchronica.com or contact:
Carsten Brinkschulte, Chief Executive Officer Simon Hudson/Clemmie Carr
Nicole Meissner, Chief Marketing Officer Tavistock Communications
Synchronica plc Tel: +44 20 7920 3150
Tel: +44 1580 830 033 / +44 7966 477 256
Synchronica plc - Preliminary Results for the Year Ended 31 December 2005
Chairman's Statement
2005 was a year of considerable positive change for Synchronica (formerly DAT
Group) as we moved from being a consultancy-led business to a products led
business; during the year we:
• acquired Synchronica GmbH and the rights to all its technologies on
31st March 2005 for €1.35 million.
• identified and addressed weaknesses in the Board and management teams,
appointing a new CEO, Carsten Brinkschulte, a new COO, Terry Page, a new Non
Executive Deputy Chairman David Wickham and in April 2006 a new CFO, Angus Dent,
to replace the retiring CFO Allan Jonnes.
• addressed a lack of focus in our customer offering by focusing in four
core areas, where we believe we have significant competitive advantage and where
the market is growing;
• SyncML Gateway,
• SyncML DM (Device Management) Server
• Mobile Manager(previously known as Enterprise Assistant), and
• ROM Builder together with any consultancy services associated with
them.
• invested, and this process is continuing, in the development,
marketing and sales of each of these products.
• successfully raised £5.0 million (net) of new funds through a placing
of 17.7 million new shares.
• developed and maintained relationships with a number of the largest
players in the mobile communications industry worldwide.
• delivered results for 2005 in line with revised Stock Market
expectations.
As a result of these actions, we have entered 2006 with considerable cash
balances of £6.6 million (2005: £5.5 million) and, we believe, justified
optimism that the business can progress and that we can achieve our priority
goal of rebuilding shareholder value. Everyone at Synchronica is playing their
part in this process and I thank all of them, on behalf of the Board and
shareholders, for the effort and dedication they bring to achieving our new
business goals.
As previously announced, the Board intends to elect David Wickham to the
position of chairman following the AGM, when I will step down from the position
but remain on the Board as a non-executive director.
John Gunn
24 April 2006
Synchronica plc - Preliminary Results for the Year Ended 31 December 2005
Summarised Consolidated Profit and Loss Account
Continuing Operations Total Total
Year to 31 December Note Existing Acquisitions 2005 2004
£'000 £'000 £'000 £'000
Group turnover 1 2,541 537 3,078 2,424
Total operating loss (2,898) (2) (2,900) (2,271)
Net interest receivable /
(payable) 166 (105)
--- ---
Loss on ordinary activities
before taxation (2,734) (2,376)
Tax on loss on ordinary
activities 2 4 406
--- ---
Loss for financial year (2,730) (1,970)
=== ===
Basic and diluted loss per
ordinary share 3 (12.5)p (14.7)p
=== ===
Summarised Reconciliation of Movements in Consolidated Shareholder's Funds
2005 2004
£ '000 £ '000
Loss for the period (2,730) (1,970)
Net proceeds of share issues 5,046 8,095
Capital to be issued 173 -
------------------ ------------
2,489 6,125
Opening shareholders' funds/(deficit) 5,093 (1,032)
------------------ ------------
Closing shareholders' funds 7,582 5,093
================== ============
Synchronica plc - Preliminary Results for the Year Ended 31 December 2005
Summarised Consolidated Balance Sheet
At 31 December 2005 2004
£ '000 £ '000
Fixed assets
Intangible assets and goodwill 862 -
Tangible assets 100 108
------------------ ------------------
962 108
Current assets
Stocks and work in progress 19 29
Debtors 888 663
Cash at bank and in hand 6,615 5,512
------------------ ------------------
7,522 6,204
Creditors: Amounts falling due within one (902) (1,203)
year
------------------ ------------------
Net current assets 6,620 5,001
------------------ ------------------
Total assets less current liabilities 7,582 5,109
Creditors: Amounts falling due after more - (16)
than one year
------------------ ------------------
Net assets 7,582 5,093
================== ==================
------------------ ------------------
Capital and reserves 7,582 5,093
================== ==================
Synchronica plc - Preliminary Results for the Year Ended 31 December 2005
Summarised Consolidated Cash Flow Statement
Year ended 31 December 2005 2004
Note £ '000 £ '000
Net cash outflow from operating 4 (3,518) (1,726)
activities
Returns on investment and servicing 149 (119)
of finance
Taxation (6) 410
Capital expenditure and financial (178) (41)
investment
Acquisitions (349) -
------------------ ------------------
Net cash flow before financing (3,902) (1,476)
Financing 5,005 6,970
------------------ ------------------
Increase in cash 1,103 5,494
================== ==================
Synchronica plc - Preliminary Results for the Year Ended 31 December 2005
Notes
1. Turnover by Geographical Market
2005 2004
£ '000 £ '000
United Kingdom 341 874
European and other foreign markets 628 437
North America 2,109 1,113
------------------ ------------------
3,078 2,424
================== ==================
2. Taxation
2005 2004
£ '000 £ '000
Current taxation
Overseas corporation tax credit / (charge) 2 (4)
Research and development tax credit - 410
2 406
Adjustment in respect of prior years:
Overseas corporation tax credit 2 -
Current taxation 4 406
3. Loss per Share
The loss per ordinary share has been calculated based on the weighted average
number of ordinary shares in issue during the year.
2005 2004
Loss for the financial period £(2,730,000) £(1,970,000)
Weighted average number of ordinary shares 21,777,390 13,375,672
Basic and diluted loss per ordinary share (12.5)p (14.7)p
4. Reconciliation of Operating Loss to Net Cash Outflow From Operating
Activities
2005 2004
£ '000 £ '000
Operating loss (2,900) (2,271)
Amortisation of intangible assets 114 -
Depreciation of tangible assets 98 83
Loss/(Profit) on sale of tangible fixed 5 (1)
assets
Change in stocks 10 27
Change in debtors (194) 264
Change in creditors (651) 172
------------------ ------------------
Net cash outflow from operating activities (3,518) (1,726)
================== ==================
5. Preliminary Statement
This preliminary statement was approved by the Board on 24 April 2006. It is not
the Company's statutory accounts. The statutory accounts for the period ended 31
December 2004 have been delivered to the Registrar of Companies and received an
audit report which was unqualified and did not contain statements under s237(2)
or (3) of the Companies Act 1985.
A copy of this preliminary statement is available from the Company Secretary at
the Company's registered office: Synchronica plc, Bodiam Business Park, Junction
Road, Bodiam, East Sussex, TN32 5UP.
A copy of the 2005 Report and Accounts, containing notice of the forthcoming
annual general meeting, will be posted to shareholders in May and will also be
available from the Company's registered office.
This information is provided by RNS
The company news service from the London Stock Exchange