Interim Results to 30 June 20

RNS Number : 5977Y

Clinical Computing PLC

07 September 2009

 



7 September 2009

CLINICAL COMPUTING PLC

2009 INTERIM RESULTS FOR THE SIX MONTHS TO 30 JUNE 2009 

Clinical Computing Plc ('the Group'), the international developer of clinical information systems for the healthcare market and developer of programme management software, announces its Interim Results for the six months ended 30 June 2009. The Group trades through four operating subsidiaries: Clinical Computing UK Ltd. in the United Kingdom and Europe, Clinical Computing Inc. in the United States, Clinical Computing Pty Limited in Australia and Hydra Management Limited ('Hydra') in the United Kingdom. 

Financial Highlights 

• Total revenue increased 9% to £1,528,439 (H1 2008: £1,406,370)  

• Recurring maintenance revenues increased by 27% to £884,969 (H1 2008: £697,274)

• Operating costs decreased to £1,762,795 (H1 2008: £1,817,161)  

• Loss from operations reduced to £234,356 (H1 2008: £410,791)  

• R&D tax credit received for 2006, 2007 and 2008 of £394,183

• Profit after tax of £154,550 (H1 2008: loss of £419,683)

• Earnings per share of 0.1p (H1 2008: loss 0.4p)

Operational Highlights

• Clinicalvision V hosting service available for the US and Canadian markets

• Clinicalvision V hand-held device to be released in the fourth quarter 2009

• Six clinicalvision V implementations underway

• New reporting solution for Hydra product nearing completion

Outlook 

Chairman Howard Kitchner, commenting on the Group outlook, said:

'Our results for the first half are a further indication that the Clinical business has a solid platform for growth. This has been built on the back of the completion of clinicalvision V, and the new sales generated with our Canadian Partner. Our sales and marketing activities are aimed at exploiting the opportunities now available to us as a result of the release of this product offering. 

Against this, we are confident that the upward trend in revenue growth will continue and there are a number of near opportunities that we expect to move to firm contracts thus consolidating this revenue growth into 2010. '

Contacts:
Joe Marlovits, Chief Executive Clinical Computing www.ccl.com	020 3006 7537
James Caithie / Antony Legge Dowgate Capital Advisers Limited - Nominated Adviser	020 7492 4777
These results are also available on the Group's web site: www.ccl.com

CHAIRMAN'S STATEMENT

Introduction

We report our interim results for the six month period to 30 June 2009.   This period has been one of continued positive progress for the Group. With the release of clinicalvision V now behind us we have seen an increase in revenues for our clinical business and our geographic coverage has extended into the Canadian market. The Hydra business continues to be cash generative and although this business has been more impacted than the Clinical business by the overall economic climate we see improving revenues from this business in the second half of the year.  

We are pleased to highlight Group revenue growth of 9% for the period and profit after tax of £154,550.  

Clinical business

During the period under review we managed six customer clinicalvision V implementations and each of these projects will continue into the second half of the year as the customers fully migrate to this new product. The clinicalvision V product is a web-based application developed to support the effective management of chronic disease. This release provides the clinical team with an application and analytical tools to deliver and monitor care over large patient populations. 

Additionally, we have now established two hosting facilities in the North American market and are now in a position to provide this service to large and small customers in the United States and Canada.  This is another step forward in changing our business model to take full advantage of the clinicalvision V technology. Likewise, we are expecting to release an iPhone application as an additional module in the fourth quarter of 2009.  

Our business concentration for the rest of 2009 and into 2010 will be to migrate our current customers to clinicalvision V and to further develop our offering for the Canadian market. To date we have won three clinicalvision V contracts in the Canadian market.  

Hydra business

The programme and resource management business is now fully integrated into the Group. We are in the process of exploring partnerships in the United States where we believe the Hydra technology can exploit a market requirement at a competitive price point. The business is also experiencing an increase in demand for its software from the UK market, as organisations continue to seek ways of improving the return on their resources. 

Following the roll-out of an updated version of the core Hydra technology in the first half, we anticipate releasing a new reporting solution in the second half of 2009. 

Financial overview 

Revenue increased 9% to £1,528,439 (H1 2008: £1,406,370).  

Revenue from the clinical business was £1,237,569 or 81% of the Group revenues. Revenue from the Clinical business when compared to the prior year has increased 28% (H1 2008: £965,771). Revenue from the Hydra business for the period was £290,870 (H1 2008: £440,599).

Recurring maintenance revenues accounted for 58% (H1 2008: 50%) of our total revenues and increased 27% to £884,969 (H1 2008: £697,274).  

The Group's cost base decreased to £1,762,795 (H1 2008: £1,817,161), principally due to the overhead  reductions undertaken in October 2008.  

Operations generated a loss of £234,356 (H1 2008: £410,791). The majority of the loss from operations was generated by the Clinical business.  

During the period under review we undertook a project to review previous years R&D tax credit claims. This has resulted in amending our 2006 and 2007 R&D claims. During the period we are reporting a total tax credit of £394,183. £201,213 of this amount was from R&D undertaken in 2008 and £192,970 related to the amended claims for 2006 and 2007. 

The Group is reporting an overall profit after tax of £154,550 for the period (H1 2008: loss of £419,683). Earnings per share for the period were 0.1p (H1 2008: loss of 0.4p per share).  

The Group maintains two debt facilities which in total provide funding for working capital of £950,000, of which the £682,467 was drawn at 30 June 2009. In the twelve month period to 30 June 2009 the amount borrowed under the above facilities increased £317,271 of which only £9,712 of this amount was drawn in the six month period to 30 June 2009.  

Outlook

Our results for the first half are a further indication that the Clinical business has a solid platform for growth. This has been built on the back of the completion of clinicalvision V, and the new sales generated with our Canadian Partner. Our sales and marketing activities are aimed at exploiting the opportunities now available to us as a result of the release of this product offering. 

Against this, we are confident that the upward trend in revenue growth will continue and there are a number of near opportunities that we expect to move to firm contracts thus consolidating this revenue growth into 2010. 

Howard Kitchner

Chairman

7 September 2009

Unaudited condensed consolidated income statement

Six months ended 30 June 2009

			Audited
	Six months	Six months	year
	ended	ended	ended
	30 June 2009	30 June 2008	31 December 2008
	£	£	£
Continuing operations
Revenue (Note 3)	1,528,439	1,406,370	2,825,032
Cost of sales	(366,532)	(440,304)	(834,691)
	--------------	--------------	-----------------
Gross profit	1,161,907	966,066	1,990,341
Distribution costs	(141,004)	(185,614)	(328,705)
Administrative expenses
Research & development	(758,012)	(668,410)	(1,444,404)
Other	(497,247)	(522,833)	(1,029,576)
Total administrative expenses	(1,255,259)	(1,191,243)	(2,473,980)
	--------------	-------------	-----------------
Loss from operations	(234,356)	(410,791)	(812,344)
Finance income	1,327	4,214	66,489
Finance expense	(6,604)	(13,106)	(27,531)
	--------------	------------	-----------------
Loss before tax	(239,633)	(419,683)	(773,386)
Income tax credit (Note 4)	394,183	-	41,909
	--------------	------------	-----------------
Profit/ (loss) for the period attributable to equity holders of the company	154,550	(419,683)	(731,477)
	--------------	------------	----------------
Basic earnings/(loss) per share  (Note 5)	0.1p --------------	(0.4p) ------------	(0.7p) ----------------
Diluted earnings/(loss) per share (Note 5)	0.1p --------------	(0.4p) ------------	(0.7p) ----------------

The notes form part of this condensed financial information.

Unaudited condensed consolidated statement of comprehensive income

Six months ended 30 June 2009

			Audited
	Six months	Six months	Year
	ended	ended	Ended
	30 June 2009	30 June 2008	31 December 2008
	£	£	£
Profit/(loss) for the period	154,550	(419,683)	(731,477)
Exchange differences on translation of foreign operations	19,621	(79)	(130,699)
	-------------	-------------	----------------
Total comprehensive income for the period	174,171	(419,762)	(862,176)
	-------------	-------------	----------------

The notes form part of this condensed financial information.

Unaudited condensed consolidated balance sheet

30 June 2009

	30 June	30 June	Audited 31 December
	2009	2008	2008
	£	£	£
Non-current assets
Intangible assets	365,960	291,209	413,466
Goodwill	157,658	864,391	157,658
Property, plant and equipment	94,861	151,546	125,988
	---------------	---------------	------------
	618,479	1,307,146	697,112
Current assets
Trade and other receivables	722,002	643,723	437,149
Cash and cash equivalents	260,794	242,723	299,188
	---------------	---------------	------------
	982,796	886,446	736,177
	---------------	---------------	------------
Total assets	1,601,275	2,193,592	1,433,449
	---------------	---------------	------------
Current liabilities
Trade and other payables	(1,239,456)	(1,371,520)	(1,268,619)
Bank loans	(682,467)	(365,196)	(672,755)
	---------------	---------------	-------------
	(1,921,923)	(1,736,716)	(1,941,374)
	---------------	---------------	---------------
Long term liabilities - provisions	-	(624,531)	-
	---------------	---------------	---------------
Net liabilities	(320,648)	(167,655)	(507,925)
	---------------	---------------	-------------
Equity
Share capital	2,433,251	2,433,251	2,433,251
Share premium account	7,750,957	7,661,920	7,750,957
Share option reserve	110,694	84,481	97,588
Translation reserve	47,765	158,764	28,144
Retained earnings	(10,663,315)	(10,506,071)	(10,817,865)
	---------------	---------------	---------------
Shareholders' funds - deficit  (Note 6)	(320,648)	(167,655)	(507,925)
	--------------	--------------	------------

The notes form part of this condensed financial information

Unaudited condensed consolidated statement of cash flows

Six months ended 30 June 2009

			Audited
	Six months	Six months	year
	ended	ended	ended
	30 June  2009	30 June  2008	31 December  2008
	£	£	£
Net cash used in operating activities (Note 7)	(36,669)	(393,052)	(742,523)
Investing activities
Interest received	1,327	4,214	66,489
Acquisition of Hydra	-	(56,750)	(56,750)
Expenditure on product development	-	(100,908)	(171,541)
Proceeds from sale of fixed assets	-	566	606
Purchases of property, plant and equipment	(4,042)	(28,389)	(38,353)
	---------------	---------------	--------------
Net cash used in investing activities	(2,715)	(181,267)	(199,549)
	---------------	---------------	--------------
Financing activities
VAT recovery from equity issues	-	-	89,037
Proceeds from equity issue	-	545,000	545,000
Costs of equity issue	-	(34,813)	(34,813)
Increase in bank loan	9,712	143,516	451,075
	---------------	---------------	---------------
Net cash from financing activities	9,712	653,703	1,050,299
	---------------	---------------	---------------
Net (decrease)/increase in cash and cash equivalents	(29,672)	79,384	108,227
Cash and cash equivalents at beginning of period	299,188	164,365	164,365
Effect of foreign exchange rate changes	(8,722)	(1,026)	26,596
	---------------	---------------	----------------
Cash and cash equivalents at end of period	260,794	242,723	299,188
	---------------	---------------	---------------

The notes form part of this condensed financial information.

NOTES:

1. Basis of preparation

The accounting policies applied in the un-audited condensed interim financial statements have been prepared in conformity with recognition and measurement principles required by International Financial Reporting Standards ('IFRS') in issue and as adopted by the European Union and are effective or are expected to be adopted and effective at 31 December 2009. The un-audited financial statements have been, prepared using accounting policies consistent in all material respects with those applied in the Group's Annual Report for the year ended 31 December 2008 and consistent with those that will be applied during the year ended 31 December 2009. The financial information provided herein should be read in connection with the Group's audited Consolidated Financial Statements and the notes thereto for the year ended 31 December 2008. 

The Group continues to be loss making and cash negative at the operational level. The directors continue to monitor management's forecasts for revenues, costs and working capital needs on a regular basis. Although these projections show improving trading conditions, inherently there can be no certainty that these forecasts will be achieved. Following a review of the above noted forecasts and taking into account available borrowing facilities, the directors have formed a judgement, at the time of approving this interim announcement, that there is reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future.

This interim report does not constitute statutory accounts of the group within the meaning of section 435 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2008, have been filed with the Registrar of Companies. The auditors' report on those accounts was unqualified and did not contain a statement under section 498 of the Companies Act 2006.

2.    Business and geographic segments

		Unaudited six months	Unaudited six months	Audited  year
		ended	ended	ended
		30 June	30 June	31 December
		2009	2008	2008
		£	£	£
	Revenue by segment
	Clinical business UK	342,668	333,254	568,508
	Clinical business USA	861,713	616,839	1,351,826
	Clinical business Australia	33,188	15,678	31,409
	Hydra business	290,870	440,599	873,289
		---------------	---------------	----------------
		1,528,439	1,406,370	2,825,032
		---------------	----------------	----------------

3.    Revenue  

		Unaudited six months	Unaudited six months	Audited  year
		ended	ended	ended
		30 June	30 June	31 December
		2009	2008	2008
		£	£	£
	Revenue by type
	Software licences	466,872	445,313	825,155
	Maintenance	884,969	697,274	1,515,615
	Services and other revenue	176,598	263,783	484,262
		-------------	-------------	--------------
	Revenue	1,528,439	1,406,370	2,825,032
		-------------	-------------	--------------

4.    Tax

The tax credits of £394,183 for the half year ended 30 June 2009 includes credits for R&D undertaken in 2006 and 2007 of £192,970 and tax credits for R&D undertaken in 2008 of £201,213. The Group accounts for research and development tax credits when there is sufficient certainty over receipt of the amounts involved, which is generally, when the claim has been filed with the applicable tax authority. The Group has one further claim for 2008 that it has yet to file and is anticipating that this claim will be settled and accounted for in the second half of 2009.

5.    Earnings per share

The calculation of the basic and diluted loss per share is based on the following data:

		Unaudited six months	Unaudited six months	Audited  year
		ended	ended	ended
		30 June	30 June	31 December
		2009	2008	2008
		£	£	£
	Profit/(loss) for the purposes of basic and diluted loss	154,550	(419,683)	(731,477)
		---------------	---------------	-----------------
		Number	Number	Number
	Weighted average number of ordinary shares used in basic earnings per share calculation	110,883,694	105,996,661	108,446,872
	Dilutive share options	467,831	-	-
		---------------	---------------	----------------
	Weighted average number of shares used in diluted earnings per share calculation	111,351,525	105,996,661	108,446,872
		---------------	---------------	----------------

6.    Unaudited Statement of changes in equity 

			Share
	Share	Share	option	Translation	Retained
	capital	premium	reserve	reserve	losses	Total
	£	£	£	£	£	£
At 31 December 2007	2,258,851	7,326,133	71,375	158,843	(10,086,388)	(271,186)
Issue of equity shares	174,400	370,600	-	-	-	545,000
Share options	-	-	26,213	-	-	26,213
Translation of foreign operations	-	-	-	(130,699)	-	(130,699)
Expenses from issue of equity shares	-	(34,813)	-	-	-	(34,813)
Recovery of VAT	-	89,037	-	-	-	89,037
Loss for the year	-	-	-	-	(731,477)	(731,477)
	-------------	------------	-----------	-----------	--------------	---------------
At 31 December 2008	2,433,251	7,750,957	97,588	28,144	(10,817,865)	(507,925)
	-------------	------------	----------	-----------	--------------	---------------
Share options	-	-	13,106	-	-	13,106
Translation of foreign operations	-	-	-	19,621	-	19,621
Profit for the period	-	-	-	-	154,550	154,550
	-------------	------------	-----------	-----------	--------------	---------------
At 30 June 2009	2,433,251	7,750,957	110,694	47,765	(10,663,315)	(320,648)
	-------------	------------	----------	-----------	--------------	---------------

			Share
	Share	Share	option	Translation	Retained
	capital	premium	reserve	reserve	losses	Total
	£	£	£	£	£	£
At 31 December 2007	2,258,851	7,326,133	71,375	158,843	(10,086,388)	(271,186)
Issue of equity shares	174,400	335,787	-	-	-	510,187
Share options	-	-	13,106	-	-	13,106
Translation of foreign operations	-	-	-	(79)	-	(79)
Loss for the period	-	-	-	-	(419,683)	(419,683)
	-------------	------------	-----------	-----------	--------------	---------------
At 30 June 2008	2,433,251	7,661,920	84,481	158,764	(10,506,071)	(167,655)
	-------------	------------	----------	-----------	--------------	---------------

7.	Reconciliation of operating loss to operating cash flows

	Unaudited six months	Unaudited six months	Audited  year
	ended	Ended	ended
	30 June  2009	30 June  2008	31 December  2008
	£	£	£

Loss from operations	(234,356)	(410,791)	(812,344)
Adjustments for:
Depreciation of property, plant and equipment	28,338	37,552	58,780
Share option charge	13,106	13,106	16,180
Amortisation of capitalised R&D	47,507	7,804	26,213
	--------------	----------------	----------------
Operating cash flows before movements in working capital	(145,405)	(352,329)	(711,171)
Increase in receivables	(62,405)	(279,886)	(42,408)
(Decrease) / increase in payables	(15,225)	252,269	(3,322)
	--------------	----------------	-----------------
Cash used by operations	(223,035)	(379,946)	(756,901)
Taxes received	192,970	-	41,909
Interest paid	(6,604)	(13,106)	(27,531)
	---------------	----------------	-----------------
Net cash outflow from operating activities	(36,669) ---------------	(393,052) ----------------	(742,523) -----------------

 

END

 

 

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