Final Results - Replacement

IS Solutions PLC 4 April 2001 Addendum Dividend The Issuer has made the following amendment to the Final Results announcement released this morning at 07:00 under RNS Number 5907B. Further to the Preliminary Results announcement made this morning by IS Solutions Plc the final dividend of 0.7p per share will be paid on 30 May 2001 to shareholders on the Register at close of business on '4 May 2001', and not '4 May 2000' as originally stated. All other details remain unchanged. The full corrected announcement appears below. IS Solutions Plc Preliminary Results For the year ended 31 December 2000 STATEMENT BY THE CHAIRMAN, BARRIE CLARK The second half of 2000 was disappointing due to the delay of a contract in the U.S. and 2 license deals in the U.K. which led to the announcement on 2 January 2001. Profits before tax and goodwill amortisation for the second half of the year were £386k (6 months to 30 June: £482k) totalling £868k for the year (1999: £1,205k) in line with revised market expectations. Turnover was £12.218m (1999: £11.818m). Adjusted earnings per share (excluding goodwill amortisation) were 2.45p (1999: 3.51p) with net assets at 31 December 2000 standing at £4.758m (1999: £2.938m) and net cash of £1.571m (1999: £2.273m). AXL has performed in line with expectations since its acquisition and has strong prospects but the Board has taken a prudent view on the amortisation of goodwill over a period of five years and therefore a charge of £321k has been taken for the year as a whole, leading to profits before tax of £547k (1999: £1,205k) and basic earnings per share of 1.16p (1999: 3.51p). The Directors are recommending a final dividend of 0.7p per share which, together with the interim dividend of 0.35p per share represents a total dividend of 1.05p per share (1999: 0.96p). Subject to shareholders' approval at the AGM, to be held on 25 May 2001, this dividend will be paid on 30 May 2001 to shareholders on the Register at close of business on 4 May 2001. U.K. The year 2000 was one of change for the UK operation as our Web-based business grew considerably and our more traditional stand-alone Facilities Management activities reduced their overall contribution to the Group. Support and maintenance are still an important part of the overall revenue but are now primarily generated from the web business. The growth in the Web-based side of the business resulted in a higher than average proportion of contractors being employed to effect delivery. This impacted on our gross margin, however, as mentioned below, this was addressed in the last quarter and we are now in a much better position moving forward. The integration of AXL, acquired in April 2000, into the U.K. operating company is now complete. AXL will continue to focus on providing real time financial services and the supply of maintained IT services, whilst the main U.K. operating company will focus its activities around projects and applications support. U.S.A. As we announced at the interim stage, the repositioning of the U.S. operation into a services based company has proceeded well and is now complete. The focus of the U.S. operation throughout 2001 will be to broaden the number of projects it works on and to establish a recurring revenue stream in the form of applications support. Personnel 2000 was a difficult year for recruitment, which led to a high percentage of contractors being employed by the Group. In the last quarter, a stronger emphasis was placed on the recruitment of full time personnel, which resulted in a halving of the number of contractors being utilised, thereby bringing a much better balance with full time staff. In conjunction with this, we have also introduced a new methodology called AIMS which is a unique technique for the control and implementation of line of business Web-based projects, which is also allowing us to establish a strong and committed team spirit within the organisation. The Board would like to express its thanks for our loyal employees continued support and dedication throughout the year. Outlook Contract wins announced on 14 February 2001 indicate ongoing demand for project and recurring revenue work, and the Board believes that this will provide a more balanced revenue stream for the current year. U.K. The Company is trading in line with expectations for the current year with a number of new contracts being won, including those announced on 14 February for Eurostar Group, Woolwich Independent Financial Advisory Services, Proquote and Toshiba Europe GmbH and we are continuing to focus on improving our gross margin through the reduction of the ratio of contractors to employees. AXL continues to improve its recurring revenue stream through financial services whilst also increasing its offerings of financial information from other Stock Exchanges outside the U.K. U.S.A. The current concerns over the U.S. economy leads the Board to be cautious about the prospects for the U.S. operation. We have already secured contracts for the first half and we are currently in negotiations for additional contracts. Overall, with the current teams operating in the U.K. & U.S.A. together with the prospects, for growing AXL's financial services offerings, the Board views the future with prudent optimism. 4 April 2001 IS Solutions Plc Preliminary Results For the year ended 31 December 2000 STATEMENT BY THE MANAGING DIRECTOR, JOHN LYTHALL In spite of difficult market conditions year 2000 saw IS Solutions win our 100th Internet client, with BroadVision development work for the Sony Broadcast and Professional Europe (Sony BPE) extranet solution. The Group acquired AXL Performance Solutions in April, adding a Products Division as a third pillar to the existing two cornerstones, Total Internet Solutions and Technical Services, of IS Solutions' business. Activities During 2000 IS Solutions have been building on our internal development and support infrastructure. Our Operations department was re-organised into two divisions - Projects Division and Technical Services Division to underline the differences between discreet fee-earning project work and contract work with recurring revenue streams. These two divisions have been strengthened and complemented by the acquisition of AXL providing a Products Division as the third business area, enabling IS Solutions to offer an improved service to clients and to provide a firm foundation of recurring revenue streams for growth in the future. Process Based on our experience and the need to always become more efficient, IS Solutions developed and implemented AIMS - a methodology framework which can be applied to any project work that is undertaken for delivering projects to more highly measurable standards. The methodology enables IS Solutions to assess the project and deliver analysis and consultancy work to clearly scope the project before any development work begins, ensuring that both IS Solutions and the client clearly understand the attributes of the project that will be delivered. In July, IS Solutions acquired a 26% stake in Open Methods Limited, a company which specialises in project methodology and consultancy in the Internet arena. This enhances the depth of business consultancy and technical analysis that IS Solutions can offer clients using the AIMS methodology framework. IS Solutions Teams With the prevailing market conditions inflating staff costs during 2000, IS Solutions created eight in-house fee-earning and recurring revenue teams which are supported by project management, sales, marketing and administration, to ensure efficiency is maximised and costs are minimised for future project delivery. Fee-earning Teams Analysts As part of Projects Division, the IS Solutions analyst team provides in-depth technical and business analysis for our clients to determine exactly what the best solution is to meet their business objectives. New clients during 2000 included Shell Geostar, Woolwich Independent Financial Advisory Services and Willis Commercial. BroadVision The BroadVision project development team based in the UK and US is responsible for the development and delivery of the internet solutions built around BroadVision's e-business application software. Their achievements this year have included new and on-going development work for Toshiba PC Division, Toyota (GB), Sony BPE, Office Furniture, TD Waterhouse and BroadVision itself. Java The Java team is part of Projects division and provides custom solutions for clients using Java and Java Server Pages technology. The solutions they have completed are not just Internet based but also include interactive Digital TV sites as well. The team is expert in their field and in 2000 built solutions for clients such as Thomas Cook and Zest 4. Implementation The Implementation team is responsible for consultancy, design, build, configuration and installation of server hardware, networking and connectivity equipment. During 2000 they have been working with clients such as TD Waterhouse, Toshiba, Channel 4 and Informix. Microsoft Active Server Pages (ASP) The ASP team within Projects division provides solutions based around Microsoft Site Server, Internet Information Server and other Microsoft technology. They have enhanced the Red Letter Days site to accept payment on-line, have re-developed the BP intranet and have been instrumental in the successful launch of the Ede and Ravenscroft site (see case study). Studio IS Solutions' Studio team has had a successful year with their design capabilities for web site front ends including template design, being recognised through receiving numerous UK and worldwide awards for sites launched during 2000. These include awards for Nestle Lion Bar, Thorn Lighting, Toshiba, The Children's Trust and Toyota MR2 microsite. Recurring Revenue Teams AXL AXL Performance Solutions specialise in the provision of financial data relating to stocks and shares traded on the London Stock Exchange. As a market leader in the provision of Financial Data, AXL have established long term relationships with major corporate clients who include: LIFFE, Merrill Lynch, the London Stock Exchange, British Telecom, Standard & Poors Comstock, Capita IRG, SunGard, Knight Securities and Proquote (see case study). Support Services Also part of the Technical Services division, the Support team is responsible for looking after any client who has a Service Level Agreement (SLA) or contract for maintenance or support services with IS Solutions. During 2000 clients included TD Waterhouse, Oracle, Ranger Oil, Channel 4, and three divisions of Toshiba, with new support contracts for clients such as Thorn Lighting, Zest 4, and Toyota GB. AXL Products AXL's InterFeed Service provides streamed/broadcast (real-time or 15 minute delayed) using TCP/IP communication over a leased circuit or Internet connection. Together with data provided through the Interfeed service, AXL can also offer a pre-written program from which the client would then simply query and extract the data as required. http://www.londonstockexchange.co.uk The AXL QuoteFile Service provides data as a text file located on an AXL server, which the client collects typically every 15 minutes. Data sets typically include Share Prices, Currency and Indices. http://www.insider.co.uk AXL's Managed Service delivers the required data via an AXL hosted service with the data being transparently embedded on to the client site with the same look and feel, that is using colours and fonts that reflect the client site. Data and functionality typically include Share Prices, Currency, Indices, News, Charts and a Portfolio Manager. http://www.everettnet.co.uk AXL Charting Service is an interactive AXL hosted charting service available over the Internet. This service offers charting of UK equities with a 4+ year's history. It combines ease of use and the ability to show graph types over differing periods with comparisons to chosen indices, stocks or analytics. http://www.axl.co.uk/axlservices/charts/ AXL Investor Relations Service provides a comprehensive, cost-effective and convenient means of displaying investor relations information via the Internet for listed companies. It allows the small investor the opportunity to gain the same corporate information, at the same time, as that available to financial institutions, thus attracting the new and rapidly growing market of the private investor. Data and functionality typically includes Share Price, Trades, News and Interactive Charts. http://www.kmc.co.uk 4 April 2001 CASE STUDIES Ede and Ravenscroft www.edeandravenscroft.co.uk Robe makers and tailors since 1689, with five retail stores, Ede and Ravenscroft is London's oldest tailor. They operate in several market sectors including ladies and gentlemen's tailoring; legal, clerical and ceremonial robes and the hire and purchase of academic robes for graduation ceremonies. Ede and Ravenscroft approached IS Solutions to help them to develop their e-commerce strategy. After consultancy and analysis work by IS Solutions, a pilot site was developed to support the mass hire aspect of their academic robes for graduation ceremonies. IS Solutions are partners with leading vendors, including BroadVision, Microsoft and Lotus as well as building custom applications using ASP and Java technologies. Microsoft's Site Server Commerce Edition and SQLServer database were selected as being best suited to this complex solution. IS Solutions also specified, configured and installed the Dell 6300 web and database servers and the Dell 4350 credit card system server with Netscreen firewall. Following the successful pilot, IS Solutions was asked to develop an advanced functionality web site to deliver a streamlined process for students to hire or buy their graduation outfit on-line, including credit and debit card booking systems, a confirmation of order receipt and order number online plus merchandising possibilities. IS Solutions built an import/export file handling utility to automate the transfer of web sales data into the existing CHARM retail system and also to automate site content management using Retail Logic's Solve SE software. The final solution also incorporated front-end design by IS Solutions' Studio team and our technical implementation team specified the connectivity and communications services, including leased and ISDN lines. On-going solution support is provided by Technical Services. Proquote http://www.proquote.net Proquote is the first mass-market product licensed to deliver comprehensive London Stock Exchange market information via a public network, enabling it to offer an unparalleled on-line service to both the private and professional investor. A subscription service designed, built, managed and operated by AXL in conjunction with Proquote, Proquote delivers real-time broadcast stock price and market information to a standard web browser anywhere in the world. The flexibility of the web-based service overcomes the restrictions imposed by the traditional terminal based systems used by stock brokers, market makers, financial institutions and professional users. The Proquote service is fully configurable, enabling users to define separate personal and multiple client stock lists, portfolios and tickers. Proquote delivers everything expected from a professional market data system, over the Internet. Real-time Level 1 and Level 2 price information is provided via AXL, together with market maker quotes and sizes for SEAQ, AIM and SEATS stocks, and individual order details (price/quantity etc) for all SETS traded stocks. AFX news and Regulatory News Service is also delivered through Proquote along with global market indices including FTSE International, Dow Jones, Techmark, Hang Seng and Standard & Poors. AXL charting facilities enable the user to show graph types over differing periods with comparisons to chosen indices, stocks or analytics. An Alerts service informs the user immediately an 'Event' occurs such as a new trade, news article, announcement or previously defined limit is exceeded, enabling timely action to be taken if required. Proquote won Best Investor Innovation award at the Shares UK Equity Awards 2001 in January beating off world-class competition. The award was made to acknowledge Proquote as a pioneer of affordable access to level 2 information through its Internet based service offering. Mark Breslin from Proquote client, Direct Sharedeal Ltd. in Glasgow comments ' This is an invaluable service using an intuitive and easy-to-use web interface - it provides all the real-time and historical information that I need to manage my client portfolio's. And all this at a fraction of the cost of the traditional terminal based services - I am a confirmed fan of Proquote!' IS Solutions Plc Preliminary Results For the year ended 31 December 2000 Consolidated Profit and Loss Account for the year ended 31 December 2000 Note 2000 2000 1999 Excluding Goodwill Total Total Goodwill £'000 £'000 £'000 £'000 Turnover Continuing 11,237 - 11,237 11,818 operations Acquisitions 981 - 981 - Group turnover 1 12,218 - 12,218 11,818 Cost of sales (7,997) - (7,997) (7,950) Gross profit 4,221 - 4,221 3,868 Distribution costs (1,894) - (1,894) (1,740) Administration expenses (1,504) (321) (1,825) (979) Operating profit Continuing 639 (321) 318 1,149 operations Acquisitions 184 - 184 - Group operating profit 823 (321) 502 1,149 Investment income 47 - 47 62 Interest payable and (2) - (2) (6) similar charges Profit on ordinary 868 (321) 547 1,205 activities before taxation Tax on profit on ordinary (243) - (243) (367) activities Profit on ordinary 625 (321) 304 838 activities after taxation Dividends (260) - (260) (229) Profit for the financial 365 (321) 44 609 year Earnings per ordinary 2 share Basic 2.55p 1.24p 3.51p Diluted 2.41p 1.17p 3.42p Proposed dividend 1.05p 0.96p There are no material differences between reported profits and losses and historical profits and losses on ordinary activities before tax. IS Solutions Plc Preliminary Results For the year ended 31 December 2000 Consolidated Balance Sheet as at 31 December 2000 2000 1999 £'000 £'000 Fixed assets Intangible assets 1,822 - Tangible assets 887 634 Investments 68 - 2,777 634 Current assets Stocks 74 85 Debtors 2,348 3,044 Cash at bank and in hand 1,571 2,273 3,993 5,402 Creditors Amounts falling due within one year (2,012) (3,098) Net current assets 1,981 2,304 Total assets less current liabilities 4,758 2,938 Net assets 4,758 2,938 Capital and reserves Called up share capital 496 95 Share premium account 2,133 791 Profit and loss account 2,129 2,052 Equity shareholders' funds 4,758 2,938 IS Solutions Plc Preliminary Results For the year ended 31 December 2000 Consolidated cash flow statement for the year ended 31 December 2000 Note 2000 1999 £'000 £'000 Net cash flow from operating activities 3 952 1,151 Returns on investments and servicing of finance Interest received 47 62 Interest paid - (2) Interest element of finance lease rentals (2) (4) Net cash flow from returns on investments and servicing of finance 45 56 Taxation (390) (308) Capital expenditure Purchase of tangible fixed assets (537) (473) Sale of tangible fixed assets 14 19 Purchase of investments (39) - Net capital expenditure (562) (454) Acquisitions Purchase of subsidiaries (2,381) - Cash acquired with subsidiaries 102 - Net cost of acquisitions (2,279) - Equity dividends paid (239) (203) Cash flow before use of liquid resources and financing (2,473) 242 Financing Issue of ordinary share capital 1,743 - Capital element of finance lease rental (5) (22) payments Net cash flow from financing 1,738 (22) Change in cash in period (735) 220 IS Solutions Plc Preliminary Results For the year ended 31 December 2000 Reconciliation of net cash flow to movement in net funds 2000 1999 £'000 £'000 Change in cash in the period (735) 220 Cash flow arising from lease financing 5 22 New finance leases Translation differences 33 (15) Movement in net funds in the year (697) 227 Net funds at 1 January 2000 2,268 2,041 Net funds at 31 December 2000 1,571 2,268 Statement of total recognised gains and losses 2000 1999 £'000 £'000 Profit for the period 44 609 Currency translation differences 33 (15) Total recognised gains and losses 77 594 IS Solutions Plc Preliminary Results For the year ended 31 December 2000 NOTES 1 Segmental Information 2000 1999 £'000 £'000 Turnover UK 10,217 9,113 USA 2,001 2,705 12,218 11,818 Profit before Taxation (post-goodwill) UK 424 1,188 USA 123 17 547 1,205 Net Assets/(Liabilities) UK 5,065 3,057 USA (3) (119) 5,062 2,938 2 Earnings per Share Profit for the financial year (£000's) 304 838 Total issued shares (000's) 24,793 23,856 Weighted average number of ordinary shares (000's) 24,550 23,856 Dilutive share options (000's) 1,128 619 Basic earnings per share (post-goodwill) 1.24p 3.51p Fully diluted earnings per share (post-goodwill) 1.17p 3.42p 3 Reconciliation of operating profit to net cash 2000 1999 inflow from operating activities £'000 £'000 Operating profit 502 1,149 Net depreciation charge 385 197 Amortisation of goodwill 321 Decrease in Stock 17 28 Decrease in Debtors 1,010 (617) Increase in Creditors (1,283) 394 Net cash flow from operating activities 952 1,151 4. The results for the years ended 31 December 2000 and 31 December 1999 are extracted from the audited accounts of I S Solutions Plc on which the Auditors have issued an unqualified opinion which did not contain a statement under Section 237(2) or (3) of the Companies Act 1985. The audited accounts for the year ended 31 December 1999 have been delivered to the Registrar of Companies. 5. It is anticipated that the Report and Accounts will be posted to shareholders on 2 May 2001. Further copies of the Report and Accounts will be available after that date from the Company's Registered Office: Windmill House, 91-93 Windmill Road, Sunbury-on-Thames, Middlesex, TW16 7EF.

Companies

Celebrus Technologies (CLBS)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today