Final Results
Triad Group PLC
19 June 2002
Triad Group Plc
Preliminary Results for the year ended 31 March 2002
TRIAD REPORTS PRELIMINARY RESULTS
Triad Group Plc, the information systems and software consultancy, has today
announced its preliminary results for the year ended 31 March 2002.
John Rigg, Chairman commented,
' Triad's longer term prospects remain encouraging as we continue to generate
both demand from existing clients and a number of high quality new prospects;
however the timing of this new business continues to be extremely difficult to
predict. The uncertainty in the timing of any general recovery means that
measures have been, and continue to be, taken to manage Triad's cost base
without unduly compromising the longer term recovery prospects for the company.
' The company's cash balances remain healthy, and Triad should be well
positioned to mount a strong recovery when market conditions finally improve.'
-ends-
Date: 19 June 2002
For further information contact:
Triad Group Plc City Profile
John Rigg Simon Courtenay
Mira Makar Ed Senior
01483-860222 020-7448-3244
www.triadgroup.plc.uk e-mail: simon.courtenay@city-profile.com
Chairman's statement
Financial results
Turnover for the year ended 31 March 2002 is £41.6 million (2001: £52.8
million), and pre tax loss is £0.5 million (2001: £4.5 million profit).
Basic losses per share are 1.36p (2001 basic earnings per share: 12.22p).
Net cash increased by £3.0 million over the year to give a year end cash balance
of £11.3 million.
Dividend
The board recommend that no final dividend be paid (2001: 2p). An interim
dividend of 1p has been paid giving a total dividend for the year of 1p (2001:
2p).
Review of current activities and prospects
The results for the year reflect a serious and continuing deterioration during
the last few months in trading conditions in those markets where Triad operates.
The results are in line with market expectations.
We have seen delays and cancellations of large spending programmes, IT capital
spending budgets under pressure and caution from clients when making IT
investment decisions, particularly in the financial services, telecommunications
and travel sectors.
Triad's longer term prospects remain encouraging as we continue to generate both
demand from existing clients and a number of high quality new prospects; however
the timing of this new business continues to be extremely difficult to predict.
The uncertainty in the timing of any general recovery means that measures have
been, and continue to be, taken to manage Triad's cost base without unduly
compromising the longer term recovery prospects for the company.
In the light of current trading conditions we believe it would be prudent for
the market to lower its expectations of the outcome for the year ending 31 March
2003.
We are intensifying our efforts to grow Triad's business in the public sector
(where we have substantial experience going back over 13 years) and early signs
are encouraging.
Triad continues to invest in providing its workforce with skills and training in
leading-edge technologies and markets.
Our Generic division is continuing to maintain a creditable performance during a
very difficult period.
The company's cash balances remain healthy, and Triad should be well positioned
to mount a strong recovery when market conditions finally improve.
Employees
On behalf of the board I have pleasure in thanking our staff for their efforts
throughout the year.
John Rigg
Chairman
18 June 2002
Profit and loss account
for the year ended 31 March 2002
Unaudited Audited
2002 2001
(restated)
£'000 £'000
Turnover 41,567 52,783
Cost of sales (34,845) (41,087)
______ ______
Gross profit 6,722 11,696
Administrative expenses (7,654) (7,421)
______ ______
Operating (loss)/profit (932) 4,275
Interest receivable 463 250
Interest payable (1) (14)
______ ______
(Loss)/profit on ordinary activities (470) 4,511
before taxation
Taxation on (loss)/profit on ordinary activities 123 (1,397)
______ ______
(Loss)/profit for the financial year (347) 3,114
Dividends (255) (510)
______ ______
(Loss sustained)/profit retained for the financial year (602) 2,604
--------- ---------
Basic (losses)/earnings per ordinary share (1.36)p 12.22p
Diluted (losses)/earnings per ordinary share (1.36)p 12.14p
--------- ---------
Dividends per share 1.00p 2.00p
--------- ---------
The above figures relate entirely to continuing operations. The (loss)/profit on
ordinary activities before taxation and the retained (loss)/profit, as stated
above, are prepared on a historical cost basis, and therefore no reconciliation
to historical cost (loss)/profit is required.
Statement of total recognised gains and losses
for the year ended 31 March 2002
Unaudited Audited
2002 2001
£'000 £'000
(Loss)/profit for the financial year (347) 3,114
Other recognised gains and losses - -
______ ______
Total recognised (losses)/gains for the financial year (347) 3,114
---------
Prior year adjustment 207
______
Total losses recognised since last annual report (140)
---------
Balance sheet
at 31 March 2002
Unaudited Audited
2002 2001
(restated)
£'000 £'000
Fixed assets
Tangible assets 1,115 1,549
______ ______
Current assets
Debtors 7,452 13,106
Cash at bank and in hand 11,300 8,283
______ ______
18,752 21,389
Creditors: amounts falling due (3,890) (7,428)
Within one year
______ ______
Net current assets 14,862 13,961
______ ______
Total assets less current liabilities 15,977 15,510
Provisions for liabilities and charges (1,050) -
______ ______
Net assets 14,927 15,510
--------- ---------
Capital and reserves
Called up share capital 255 255
Share premium account 562 543
Profit and loss account 14,110 14,712
______ ______
Equity shareholders' funds 14,927 15,510
--------- ---------
Cash flow statement
for the year ended 31 March 2002
Unaudited Audited
2002 2001
£'000 £'000
Net cash inflow from operating activities 4,990 4,650
______ ______
Returns on investments and servicing of finance
Interest received 463 250
Interest paid (1) (14)
______ ______
462 236
______ ______
Taxation (1,254) (894)
UK corporation tax paid
______ ______
Capital expenditure and financial investment
Purchase of tangible fixed assets (598) (571)
Sale of tangible fixed assets 183 200
______ ______
(415) (371)
______ ______
Equity dividends paid (765) (-)
______ ______
Cash inflow before financing 3,018 3,621
______ ______
Financing
Proceeds from issue of ordinary share capital 19 10
______ ______
Increase in net cash 3,037 3,631
--------- ---------
Reconciliation of operating (loss)/profit to net cash inflow from operating
activities
Unaudited Audited
2002 2001
£'000 £'000
Operating (loss)/profit (932) 4,275
Depreciation of tangible fixed assets 853 1,022
Profit on sale of fixed assets (4) (17)
Decrease /(increase) in debtors 6,078 (1,396)
(Decrease)/increase in creditors (2,055) 766
Increase in provisions 1,050 -
______ ______
Net cash inflows from operating activities 4,990 4,650
--------- ---------
Notes
1. The financial information set out above has been prepared on the basis of the
accounting policies set out in the statutory accounts for the year ended 31
March 2002 and are consistent with those applied in the previous year, with the
exception of the implementation of FRS19 'Deferred Tax'. As described in note 3
the comparative figures have been restated as a result of implementing this
standard.
The financial information set out above does not constitute the company's
audited statutory accounts for the years ended 31 March 2001 or 2002. The
financial information for 2001 is derived from the statutory accounts for 2001
which have been delivered to the registrar of companies. The auditors have
reported on the 2001 accounts; their report was unqualified and did not contain
a statement under section 237(2) or (3) of the Companies Act 1985. The unaudited
financial information for 2002 is derived from the statutory accounts for 2002,
which were approved by the Board of Directors today and will be delivered to the
registrar of companies following the company's annual general meeting.
2. The financial information set out above has been prepared in accordance with
Financial Reporting Standard Number 3. All items above relate to continuing
operations.
3. Taxation
During the year the company implemented FRS 19 'Deferred Tax', which requires
full provision for deferred tax. Under the options allowed the company chose not
to discount the resulting provision. Within the tax credit for the twelve months
ended 31 March 2002 is a net credit of £21,000 which arises as a result of
implementing this standard. In addition the comparatives have been restated,
resulting in a decrease to the tax charge of £103,000 for the year ended 31
March 2001. The additional deferred tax asset is included on the balance sheet
and amounts to £228,000 at 31 March 2002 (31 March 2001: £207,000).
4. (Losses)/earnings per ordinary share
(Losses)/earnings per share have been calculated on the (loss)/profit on
ordinary activities after tax divided by the weighted average number of shares
in issue during the period based on the following:
2002 2001
(restated)
(Loss)/profit on ordinary activities after taxation £(347,000) £3,114,000
-------------- --------------
Average number of shares in issue 25,483,184 25,472,474
Effect of dilutive options * - 185,420
_________ _________
Average number of shares in issue plus dilutive options 25,483,184 25,657,894
-------------- --------------
Basic earnings per share (1.36)p 12.22p
Diluted earnings per share (1.36)p 12.14p
--------- ---------
* The share options have no dilutive effect in the current year.
5. Profit and loss account
2002 2001
(restated)
£'000 £'000
At 1 April as restated/ as previously reported 14,609 12,004
Prior year adjustment (see note 3) 103 104
______ ______
At 1 April as restated 14,712 12,108
(Loss)/profit for the financial year (602) 2,604
______ ______
At 31 March 14,110 14,712
--------- ---------
6. The annual report and accounts will be sent to shareholders in due course.
Further copies will be available from the company's registered office at Weyside
Park, Catteshall Lane, Godalming, Surrey, GU7 1XE.
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