1st Quarter Results
Intec Telecom Systems PLC
27 February 2002
Intec Telecom Systems PLC
Unaudited results for the three months ended
31st December 2001 - Q1
Intec delivers turnover exceeding forecasts, EBITDA profit
Intec Telecom Systems PLC ("Intec" or "the Company"), a leading provider of
telecoms Operations Support Systems ("OSS"), is pleased to announce its
unaudited results for the three months ended 31 December 2001, ("Q1"). Both
turnover and EBITDA profit have exceeded company expectations as a result of
strong trading across the business and a firm focus on cost control. Trading
continues to meet management's expectations for the first few weeks of the
second quarter and Intec remains on track for growth and increased EBITDA
profitability in 2002.
HIGHLIGHTS
• Turnover for Q1 over the equivalent period (3 months ended 31
December 2000) increased by 149% to £10.9 million. (Q1 2001:
£4.4 million)
• Profit before interest, tax, depreciation, and amortisation
("EBITDA") of £33,000 (Q1 2001: loss of £1.4 million). Loss
before tax was £1.8 million (Q1 2001: loss of £1.6 million),
after depreciation, amortisation of goodwill and intangible
assets of £1.7 million.
• 19 new name customers, including major companies in Europe, the
Middle East, Asia-Pacific and the USA.
• Good performance from acquired US operations, in both mediation
and CABS billing, with a number of ASP contracts adding to
future recurring revenue streams.
• 33 contracted installations, comprising 9 new InterconnecT
family licences, 5 new Inter-mediatE licences, 5 InterconnecT
CABS licences and 14 ASP installations.
• Recurring revenues represented 42% of turnover, and new licences
34% of turnover.
• Intec remains fully-funded with cash of £15.1 million
• Post-quarter end acquisition of ICL's OSS business brings around
30 additional customers and new worldwide telecoms partnership
with Fujitsu.
"Intec has made a strong start to 2002. With these results, Intec continues to
demonstrate that it has products that the market needs, and that it can deliver
on its stated strategy of profitable growth," says Intec's Executive Chairman,
Mike Frayne. "Conditions in the telecoms industry remain competitive, but Intec
is extending its market share over less able and secure competitors and is
increasingly well-positioned for a return to more positive market conditions
expected later in the year."
"In a market that continues to be competitive and cost-aware, Intec has remained
focused on its long-term sales message that we have products that help our
customers generate better revenues from their network investment," adds Chief
Executive Kevin Adams. "We are also working hard to extend our cross-selling
activities, and to ensure we continue to satisfy the needs of a fast-growing
customer base. Together with an ongoing cost management initiative, this has
allowed us to deliver results that exceeded expectations, and an EBITDA profit
in what is historically our slowest quarter."
For further information:
Kevin Adams, CEO
Intec Telecom Systems PLC
+44 (0) 1483 745800
kevin.adams@intec-telecom-systems.com
Andrew Rodaway
Intec Telecom Systems PLC
+44 (0) 7768 808082
andrew.rodaway@intec-telecom-systems.com
Cubitt Consulting
Fergus Wylie/Serra Balls
+44 (0) 20 7367 5100
serra.balls@cubitt.com
Chairman's and CEO's Statement
Intec Telecom Systems PLC - 1st Quarter Results 2002
Overview
In the first quarter of its 2002 year, Intec Telecom Systems has shown that
focusing on meeting major telecom customer needs can generate sales growth, even
in a difficult market. Many telecoms carriers are experiencing operating
difficulties, and they are naturally concerned with expenditure management. As a
result, products and services with a proven capability to generate additional
revenues remain attractive, and Intec has continued to capitalise on that need
during the period under review. Turnover above our internal forecasts, and a
small EBITDA profit in what is historically not a strong quarter, are evidence
that Intec has a robust business model, and we remain cautiously confident of
good growth and increased EBITDA profitability in 2002.
Operational highlights
Intec gained nineteen new customers in the quarter, with notable wins in the US,
Europe, the Middle East, Asia-Pacific and the Caribbean. Included in this figure
are nine new InterconnecT family licences and five new Inter-mediatE licences,
with over half of the InterconnecT or Inter-mediatE customers taking both
products.
Our recently signed framework agreement with Verizon in the US for our
market-leading InterconnecT products has generated its first customer, including
an additional cross-sell of Inter-mediatE, and we expect to develop this
relationship in future periods. We also announced the signing of Telecom Egypt,
the country's PTT and our first major customer in the Middle East. Valued at
over one million pounds sterling, the agreement will supply Telecom Egypt with
both InterconnecT and Inter-mediatE, and will facilitate settlements between its
60 Internet Service Provider business partners and provide mediation features
for all the company's billing systems. The deal was negotiated by Intec's new
office in Lebanon, and will serve to greatly raise our profile in this
developing region.
In the Caribbean, Cable & Wireless West Indies signed an extensive agreement
with Intec that will provide an integrated InterconnecT/ InterconnecT ITU
billing package to fourteen Cable & Wireless Group Companies across the West
Indies during the course of this year. This will enable Cable & Wireless to
maximise revenue by managing domestic and ITU-based interconnection agreements
and directly creating operator invoices in its SAP-based financial systems. The
contract also includes Intec's Maxi-routE Least Cost Routing solution, which
will allow the Cable & Wireless companies to minimise interconnection costs.
This provides a good example of Intec's mission to help customers to both
generate and protect revenues, and to minimise operating costs.
Our InterconnecT CABS division also had a very successful quarter, despite the
negative perception in many places about the strength of the US CLEC and ILEC
sectors. InterconnecT CABS has developed a growing reputation for its ability to
help such companies develop previously untapped revenue streams, and this is a
major benefit in sales situations. A good example of this is OneStar
Communications, a national integrated communications provider in the US.
OneStar will use Intec's InterconnecT CABS ASP service to bill service providers
that terminate calls on its networks, helping the company to collect as much as
£2 million in access fees this coming year - £400,000 more than it collected
using its in-house access billing system the year before. Other new CABS
customers included BellSouth, TexasTel and Florida Digital Networks, and a major
ILEC customer that also selected both Inter-mediatE and InterconnecT. A mixture
of both licences and ASP contracts adds to future recurring revenue streams.
Other notable customer wins in the period included a major European GSM
provider, Swisscom Mobile, which has adopted both InterconnecT and PREP, our
pre-processor mediation technology, in a deal worth in excess of £1 million.
This greatly strengthens our position in the Swiss market, where we also count
Swisscom itself as a long-term, valued customer. We also signed a major Canadian
fixed-line customer which has purchased InterconnecT; a US customer which has
bought Inter-mediatE, and another Inter-mediatE IP-based customer in the
Asia-Pacific region.
Products
Intec now has a strong portfolio of three complementary product families, and
our sales and marketing efforts are directed towards creating both new business
opportunities and cross-selling wins for these products. We have been training
both internal staff and particularly Business Partners in the sales and support
requirements for the widened portfolio, and this is now feeding through into
expanded opportunities.
In November Intec announced the newest version of its Carrier Access Billing
System (CABS) software, InterconnecT CABS Carrier Grade (CG). This new version
offers dramatically increased performance, handling up to 1 million records per
minute, making it possible for Intec to target the largest CLEC, ILEC and RBOC
customers in the US. In addition, the software offers an optional new Bill Usage
Verification Support module, which contains complete call detail records that
can be forwarded electronically to the billed carrier to aid in dispute
resolution.
Staff and cost initiatives
During the quarter Intec initiated cost management initiatives designed to
reflect both changes to our business environment and operating needs, and the
opportunities and requirements in future markets. On the staff front, we
implemented a company-wide review of skills and staff roles, with a view to
identifying efficiency and productivity improvements. During January a number of
development functions were transferred to lower-cost locations, particularly our
Cape Town, South Africa office, while a small number of other staff were
internally reassigned or made redundant, primarily as a result of the completion
of acquisition integration processes. Staff numbers at 31 December stood at 505.
We have also undertaken a general cost management initiative focused on
eliminating or reducing cost items that we believe underperform in the current
market conditions. This has included cutting certain marketing costs, such as
smaller trade shows which have reduced attendance levels, reducing travel and
accommodation costs generally, and negotiating with key suppliers for better
terms. We believe these savings, many of which were initiated by Intec staff,
have started to make a good contribution with the delivery of an EBITDA profit
in the quarter. We intend to remain focused on cost management in future
periods.
Post-balance sheet event - ICL OSS acquisition
Subsequent to the end of the quarter, on 29 January, we announced an agreement
to acquire certain assets from ICL (now Fujitsu) relating to its business in the
telecoms sector. These included the IPR to two OSS products, and around 30
customer support contracts. Intec will henceforth provide support to these
customers, located in Europe, Asia-Pacific and Africa, with a view to migrating
them to Intec's own products in due course. Intec will perform no further
development on the acquired products, and has only taken on the minimum ICL
staff required for proper support in the interim. We expect the revenues from
both support contracts and licence opportunities to add positively to both
turnover and earnings in future. ICL will no longer compete with Intec with its
own products, but will now resell and integrate both InterconnecT and
Inter-mediatE as a worldwide partner.
Financial analysis
Due to the continuing growth of our primarily Tier one/two customer base,
recurring revenues continue to be a major contributor to our business model, at
42% of turnover. New licence sales and services contributed 34% and 24% of
turnover respectively.
Gross margin has remained steady at 67% (Q1 2001:68%), reflecting the stability
of our business model, and sensible management of costs. Distribution costs up
75% at £2.6 million (Q1 2001: £1.5 million) are satisfactory compared with
revenue growth of 149%, demonstrating growing efficiency in our sales model as
benefits from cross-selling of acquired and newly-developed products, and wider
geographical opportunities, become apparent. General administrative costs, up
68% at £2.9 million (Q1 2001: £1.7 million) reflect the enlarged Group, and our
ongoing efforts to manage costs consistent with business growth objectives.
Intec continues to invest in its product portfolio, to help us take advantages
of both next-generation technologies and demanding projects in major carriers.
Development expenditure was up 134% at £2.1 million (Q1 2001: £915,000)
reflecting a substantially broader product portfolio. Intec incurs a large
proportion of its development expenditure for InterconnecT in South Africa, and
we have therefore benefited from the decline of the SA Rand against the Pound.
Depreciation and goodwill amortisation charges have increased from £0.6 million
in Q1 2001 to £1.7 million in the current quarter, reflecting the enlarged Group
and acquisitions made in 2001. No provision for goodwill impairment has been
considered necessary.
Intec's annualised debtor-days continues to improve, with the figure at 31
December 2001 standing at 83 days, compared with 96 days at 30 September. Only
40% of the remaining debtor balance is outside current terms (as at 31 January
2002.) There were no bad debts in the period.
Acquisition progress
Intec completed four acquisitions in the 2001 financial year, and these are now
effectively integrated. In January, after the quarter end, we announced the
acquisition of certain OSS assets from ICL, at a cost between £2.8 million and
£3.6 million, depending on sales over the following 24 months. However,
integration work for this project is minimal, with only a small number of staff
joining Intec.
Outlook
Market views on the outlook for the telecoms industry continue to be cautious.
Although there are some signs of a return to better trading conditions
generally, many telecoms companies still have significant amounts of
restructuring and other issues to resolve. Intec markets a range of products
which are geared to helping carriers increase and protect revenues, and we
believe our good business performance in the quarter reflects continued support
for revenue assurance and protection products. Major investment in telecoms
infrastructure is unlikely at present, but acquisition of technologies that
underpin more efficient and more transparent business operations should continue
to be solid. We see good levels of interest in our products from all sections of
the industry, and the diversity of our customer base and product portfolio gives
us a good measure of protection from difficulties in any particular sector.
Good-value acquisitions such as ICL's OSS business and customer base add to this
diversity.
We therefore remain cautiously confident that our performance in 2002 will be in
line with previously stated forecasts for growth and profitability.
Mike Frayne, Executive Chairman & Kevin Adams, CEO.
FINANCIAL HIGHLIGHTS for the three months ended 31 December 2001
Unaudited Unaudited Audited
3 months ended 3 months ended Year ended
31 December 31 December 30 September
2001 2000 2001
£000 £000 £000
TURNOVER 10,919 4,388 39,798
EBITDA before exceptional items (i) 33 (1,438) 3,414
Operating loss (ii) (1,673) (2,017) (140,046)
(Loss)/earnings per share
- basic (1.05) p (1.10) p (80.21) p
- diluted (1.05) p (1.10) p (80.21) p
Adjusted (loss)/earnings
per share (iii) (0.34) p (0.84) p 1.14 p
Notes to the Financial Highlights
(i) Group operating loss (1,602) (1,997) (140,124)
Share of operating (loss)/profit of associate (71) (20) 78
Depreciation 406 186 1,380
Amortisation of goodwill and other intangibles 1,300 393 8,680
Impairment of goodwill - - 133,400
EBITDA before exceptional items 33 (1,438) 3,414
(ii) Group operating loss (1,602) (1,997) (140,124)
Share of operating (loss)/profit of associate (71) (20) 78
Operating loss (1,673) (2,017) (140,046)
(iii) Adjusted (loss)/earnings per share calculation
based
on the following adjusted loss after tax:
Loss after tax (1,920) (1,664) (140,371)
Amortisation of goodwill and other intangible 1,300 393 8,680
assets
Impairment of goodwill - - 133,400
Amount written off investment - - 283
Adjusted loss after tax (620) (1,271) 1,992
KEY CUSTOMER DATA
Unaudited Audited Unaudited
Period Ended: 31 December 30 September 31 December
2001 2001 2000
Number Number Number
Cumulative:
Total contracted customer base 222 203 61
Total contracted installations 290 257 82
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Restated
Unaudited Unaudited Audited
3 months ended 3 months ended Year ended
31 December 31 December 30 September
Note 2001 2000 2001
£000 £000 £000
TURNOVER 2 10,919 4,388 39,798
Cost of sales (3,588) (1,874) (12,675)
GROSS PROFIT 7,331 2,514 27,123
Distribution costs (2,602) (1,489) (9,158)
Administrative expenses:
Development expenditure (2,145) (915) (5,869)
Amortisation of goodwill and other (1,300) (393) (8,680)
intangible assets
Impairment of goodwill - - (133,400)
Other administrative expenses (2,886) (1,714) (10,140)
Total administrative expenses (6,331) (3,022) (158,089)
GROUP OPERATING LOSS (1,602) (1,997) (140,124)
Share of operating (loss)/profit in associate (71) (20) 78
Amount written off investment - - (283)
Interest receivable and similar income 177 420 1,171
Interest payable and similar charges (307) (14) (73)
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (1,803) (1,611) (139,231)
Tax charge on loss on ordinary activities (117) (53) (1,140)
RETAINED LOSS ON ORDINARY ACTIVITIES AFTER
TAXATION FOR THE PERIOD (1,920) (1,664) (140,371)
(Loss) / earnings per share - basic 3 (1.05) p (1.10) p (80.21) p
(Loss) / earnings per share - adjusted 3 (0.34) p (0.84) p 1.14 p
(Loss) /earnings per share - diluted 3 (1.05) p (1.10) p (80.21) p
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Unaudited Unaudited Audited
3 months ended 3 months ended Year ended
31 December 31 December 30 September
2001 2000 2001
£000 £000 £000
Loss for the period (1,920) (1,664) (140,371)
Exchange translation differences arising on
Foreign currency net investments (302) 77 (168)
Total recognised gains and losses during the period (2,222) (1,587) (140,539)
CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited
31 December 31 December 30 September
Note 2001 2000 2001
£000 £000 £000
FIXED ASSETS
Intangible assets 72,404 172,337 73,181
Tangible assets 2,853 2,254 3,009
Investments 371 645 422
75,628 175,236 76,612
CURRENT ASSETS
Stocks 28 91 29
Debtors 4 19,821 18,450 19,103
Investments 1,801 24,325 2,966
Cash at bank and in hand 13,287 9,063 14,987
34,937 51,929 37,085
CREDITORS: amounts falling due within one year 5 (7,591) (7,382) (7,759)
NET CURRENT ASSETS 27,346 44,547 29,326
TOTAL ASSETS LESS CURRENT LIABILITIES 102,974 219,783 105,938
CREDITORS: amounts falling due after more
then one year 5 - (125) -
Deferred Income (4,314) (4,833) (5,248)
TOTAL NET ASSETS 98,660 214,825 100,690
CAPITAL AND RESERVES
Called up share capital 6 1,836 1,785 1,836
Share premium account 6 235,366 213,097 235,366
Other reserve 6 2,689 - 2,497
Merger reserve 6 249 249 249
Foreign exchange reserve 6 (453) 93 (151)
Profit and loss account 6 (141,027) (399) (139,107)
EQUITY SHAREHOLDERS' FUNDS 98,660 214,825 100,690
RECONCILIATION OF MOVEMENTS IN CONSOLIDATED
SHAREHOLDERS' FUNDS
Unaudited Unaudited Audited
31 December 2001 31 December 30 September
2000 2001
£000 £000 £000
Loss for the financial period (1,920)
(1,664) (140,371)
Other recognised gains and losses relating to (302) 77 (168)
the period
Issue of share capital net of associated expenses - 174,862 197,182
Increase in contingent consideration on 192 - 2,497
acquisitions
Increase in shareholders' funds (2,030) 173,275 59,140
Opening shareholders' funds 100,690 41,550 41,550
Closing shareholders' funds 98,660 214,825 100,690
CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited Audited
3 months ended 3 months ended Year ended
Notes 31 December 31 December 30 September
2001 2000 2001
£000 £000 £000
Net cash outflow from operating activities (i) (1,998) (4,048) (3,716)
Returns on investments and servicing of finance
Interest received 177 420 1,171
Interest element of finance lease rental (2) (3) (17)
payments
Interest paid and similar items (305) - (56)
(130) 417 1,098
Taxation
Overseas taxation (paid)/received (26) - 5
UK corporation taxation paid (10) - (531)
(36) - (526)
Capital investment
Payments to acquire tangible fixed assets (352) (277) (1,861)
Payments to acquire Intellectual Property Rights - - (304)
Proceeds on disposal of fixed assets - - 74
(352) (277) (2,091)
Acquisitions
Investment in subsidiaries - (171,321) (188,680)
Net cash acquired with subsidiaries - 2,319 1,801
- (169,002) (186,879)
Cash outflow before management of liquid
resources and financing (2,516) (172,910) (192,114)
Use of liquid resources
Increase/(decrease) in term deposits 1,009 (5,355) 15,377
Payments received from escrow - - 627
Financing
Issue of ordinary share capital - 180,021 183,700
Share issue costs charged to the share premium - (5,159) (4,922)
account
Capital element of finance lease rental payments (75) (29) (234)
(Decrease) / increase in cash in the period (ii), (1,582) (3,432) 2,434
(iii)
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited Audited
3 months ended 3 months ended Year ended
31 December 31 December 30 September
2001 2000 2001
£000 £000 £000
(i) Reconciliation of operating loss to net cash outflow from
operating activities
Operating loss (1,602) (1,997) (140,124)
Depreciation 406 186 1,380
Amortisation of goodwill and other intangible assets 1,300 393 8,680
Impairment of goodwill - - 133,400
Gain/(loss) on disposal of fixed assets 27 - (10)
Decrease in stock 1 17 79
(Increase)/decrease in debtors (750) 18 (2,948)
Decrease in creditors (including deferred income) (1,381) (2,665) (4,173)
Net cash outflow from operating activities (1,998) (4,048) (3,716)
(ii) Reconciliation of net cash flow to movement in net funds
(Decrease)/increase in cash in the period (1,582) (3,432) 2,434
Net cash outflow from decrease in finance lease 75 29 234
Net cash (inflow)/outflow from (decrease)/increase in liquid (1,009) 5,355 (16,004)
resources
Change in net (debt) / funds resulting from cash flows (2,516) 1,952 (13,336)
Finance leases acquired with subsidiary - - (178)
Translation differences (274) - 58
Movement in net (debt) / funds (2,790) 1,952 (13,456)
Net funds at 1 October 2001 17,765 31,221 31,221
Net funds at 31 December 2001 14,975 33,173 17,765
(iii) Analysis of movement in net funds
Foreign
exchange
1 October translation 31 December
2001 2001
Cash flow
£000 £000 £000 £000
Cash in hand and at bank 14,987 (1,582) (118) 13,287
Finance leases (188) 75 - (113)
Term deposits and escrow 2,966 (1,009) (156) 1,801
account
17,765 (2,516) (274) 14,975
NOTES TO THE UNAUDITED INTERIM FINANCIAL INFORMATION
1. BASIS OF PREPARATION
The interim financial information has been prepared in accordance with
accounting policies set out in, and are consistent with, the Group's 2001
financial statements except that the taxation charge for the period is based on
the estimated charge for the year ending 30 September 2002.
The interim financial information is neither reviewed nor audited and does not
comprise statutory accounts for the purposes of Section 240 of the Companies Act
1985.
Except as discussed below, the abridged information for the year ended 30
September 2001 has been extracted from the Group's statutory accounts for that
period, which have been filed with the Registrar of Companies. The Auditor's
report on the statutory accounts of the Group for that period was unqualified
and did not contain a Statement under either Section 237(2) or Section 237(3) of
the Companies Act 1985.
The interim financial information was approved by the Board of Directors on 26
February 2002.
2. TURNOVER AND SEGMENTAL REPORTING
Geographic areas - analysis by location of operations
Total turnover Inter-segment turnover External turnover
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
3 months 3 months 3 months 3 months ended 3 months ended 3 months
ended ended ended ended
31 December 31 31 December 31 December 31 December 31 December
2001 December 2001 2000 2001 2000
2000
£000 £000 £000 £000 £000 £000
United Kingdom 4,125 3,849 (450) - 3,675 3,849
Continental Europe 130 63 - - 130 63
Asia-Pacific 432 - - - 432 -
North America & Canada 6,531 476 (37) - 6,494 476
South America 188 - - - 188 -
11,406 4,388 (487) - 10,919 4,388
Audited Year ended 30 September 2001
Total Inter-Segment External turnover
turnover
turnover
30 September 2001 30 September 2001 30 September 2001
£000 £000 £000
United Kingdom 22,919 (1,737) 21,182
Continental Europe 400 - 400
Asia-Pacific 1,072 (64) 1,008
North America & Canada 17,224 (215) 17,009
South America 205 (6) 199
41,820 (2,022) 39,798
2. TURNOVER AND SEGMENTAL REPORTING (continued)
Geographic markets - analysis by location of client
Turnover by destination
Unaudited Unaudited Audited
3 months ended 3 months ended Year ended
31 December 31 December 30 September
2001 2000 2001
£000 £000 £000
United Kingdom 584 903 6,105
Continental Europe 2,409 1,462 10,528
Eastern Europe 91 564 1,562
Middle East 31 - 680
Africa 129 113 814
Asia-Pacific 1,278 569 4,977
North America & Canada 5,142 350 12,576
South America 1,255 427 2,556
10,919 4,388 39,798
Turnover by type
Turnover by activity
Unaudited Unaudited Audited
3 months ended 3 months ended Year ended
31 December 31 December 30 September
2001 2000 2001
£000 £000 £000
Licence sales 3,665 1,640 14,165
Professional services income
Implementation and migrations 1,288 749 4,752
Consulting and training income 499 191 1,904
Hardware 38 80 502
Non-telecom custom network solutions 791 - 2,493
Sub-total 2,616 1,020 9,651
Recurring Income
ASP Service 597 158 1,675
Volume upgrade licenses 757 568 3,598
Support and maintenance fees 3,284 1,002 10,709
Sub-total 4,638 1,728 15,982
10,919 4,388 39,798
2. TURNOVER AND SEGMENTAL REPORTING (continued)
Loss before taxation
Unaudited 3 months ended 31 December 2001
After amortisation
of goodwill,
Before amortisation of impairment and
goodwill, impairment and investment
investment writedown Amortisation of writedown
goodwill and
intangibles
£000 £000 £000
United Kingdom (858) (143) (1,001)
Continental Europe 55 (2) 53
Asia-Pacific 143 (113) 30
North America & Canada 124 (1,042) (918)
South America 33 - 33
Loss before taxation (503) (1,300) (1,803)
Unaudited 3 months ended 31 December 2000
After amortisation
of goodwill,
Before amortisation of impairment and
goodwill, impairment and investment
investment writedown Amortisation of writedown
goodwill and
intangibles
£000 £000 £000
United Kingdom (286) - (286)
Continental Europe (507) (2) (509)
Asia-Pacific (394) - (394)
North America & Canada 222 (391) (169)
South America (253) - (253)
Loss before taxation (1,218) (393) (1,611)
Audited Year ended 30 September 2001
Before After
amortisation amortisation
of goodwill, of goodwill,
impairment impairment
and and
investment investment
writedown Amortisation writedown
of goodwill
£000 and Goodwill Investment £000
intangibles impairment writedown
£000 £000 £000
United Kingdom 1,077 (329) - (283) 465
Continental Europe 221 (9) - - 212
Asia-Pacific (84) (681) (16,000) - (16,765)
North America & Canada 2,576 (7,661) (117,400) - (122,485)
South America (658) - - - (658)
Loss before taxation 3,132 (8,680) (133,400) (283) (139,231)
2. TURNOVER AND SEGMENTAL REPORTING (continued)
Net assets by origin
Excluding Including Including Including
unamortised unamortised unamortised unamortised
goodwill Unamortised goodwill goodwill goodwill
goodwill
Unaudited Unaudited Unaudited Unaudited Audited
31 December 31 December 31 December 31 December 30
2001 2001 2001 2000 September
2001
£000 £000 £000 £000 £000
United Kingdom 21,032 1,891 22,923 44,400 26,995
Continental Europe 146 72 218 (330) 258
Asia-Pacific 1,111 6,019 7,130 (344) 7,782
North America & Canada 5,536 62,739 68,275 171,343 65,657
South America 114 - 114 (244) (2)
Net assets 27,939 70,721 98,660 214,825 100,690
3. (LOSS)/EARNINGS PER ORDINARY SHARE
Unaudited Unaudited Audited
3 months ended 3 months ended Year ended
31 December 31 December 2000 30 September
2001 2001
£000 £000 £000
Basic and diluted (loss)/earnings (1,920) (1,664) (140,371)
Amortisation of goodwill & intangible assets 1,300 393 8,680
Impairment of goodwill - - 133,400
Amount written off investment - - 283
Adjusted (loss)/earnings (620) (1,271) 1,992
Number Number Number
Basic weighted average number of shares 183,328,066 151,045,075 175,007,925
Potential ordinary shares - - -
Diluted weighted average number of shares 183,328,066 151,045,075 175,007,925
Pence Pence Pence
Diluted (loss)/earnings per ordinary share (1.05) (1.10) (80.21)
Adjustments for potential ordinary shares - - -
Basic (loss)/earnings per ordinary share (1.05) (1.10) (80.21)
Amortisation of goodwill and other intangible 0.71 0.26 4.96
assets
Impairment of goodwill - - 76.23
Amount written off investment - - 0.16
Adjusted (loss)/earnings per ordinary share (0.34) (0.84) 1.14
For the period ended 31 December 2001, none of the potential ordinary shares
(including company share options) are dilutive and therefore they are excluded
from the calculation of diluted loss per share.
4. DEBTORS
Unaudited Unaudited Audited
31 December 31 December 30 September
2001 2000 2001
£000 £000 £000
Trade debtors 13,867 12,241 13,535
Corporation tax recoverable 214 39 216
Withholding tax recoverable 87 162 82
Other debtors 1,345 1,572 1,139
WIP and accrued income 3,037 982 2,027
Prepayments
Due within one year 1,239 3,454 1,642
Due after more than one year 32 - 462
19,821 18,450 19,103
5. CREDITORS
Unaudited Unaudited Audited
31 December 31 December 30 September
2001 2000 2001
£000 £000 £000
Creditors: falling due within one year
Obligations under finance leases 113 89 188
Trade creditors 1,131 2,202 2,007
Corporation taxation 472 1,141 454
Overseas taxation 295 176 356
Other creditors including taxation and social security 948 426 601
Accruals 2,386 3,348 2,235
Contingent consideration 2,246 - 1,918
7,591 7,382 7,759
Creditors: falling due after more than one year
Obligations under finance lease - 125 -
Maturity of obligations under finance leases
Within one year 113 89 188
More than one year but not more than two years - 125 -
113 214 188
6. STATEMENT OF MOVEMENTS ON RESERVES
Called Foreign Profit
up share exchange and loss
capital Share Other Merger reserve account
premium reserve reserve
Total
£000 £000 £000 £000 £000 £000 £000
At 1 October 2001 1,836 235,366 2,497 249 (151) (139,107) 100,690
Fair value of shares to be
issued as part of contingent
consideration - - 192 - - - 192
Retained loss for the period - - - - - (1,920) (1,920)
Foreign exchange translation - - - - (302) - (302)
At 31 December 2001 1,836 235,366 2,689 249 (453) (141,027) 98,660
6. POST BALANCE SHEET EVENTS
On the 29 January 2002, Intec purchased ICL's mediation product business and
interconnect billing product business. This agreement enables ICL (now Fujitsu)
to focus on providing consultancy, integration and professional services, such
as training and support, to the telecoms market by transferring its product
commitments. It will further strengthen Intec's leadership in interconnect and
mediation as it increases its market share by adding around 30 telecoms
companies to its customer base. Fujitsu has also entered a global distribution
partnership with Intec in a drive to continue offering its clients choice and
best-of-breed technology. Under this new alliance Fujitsu becomes a strategic
Intec partner, able to integrate and support Intec's range of software products
including its interconnect and mediation products, InterconnecT and
Inter-mediatE.
7. CONTROLLING PARTY
On 30 November 2001, Mican Limited ("Mican"), a company registered
in the British Virgin Islands, sold 6,600,000 ordinary shares of 1p each in
Intec, representing 3.6 per cent of the current issued share capital, at a price
of 68.6 pence per share, net of commission. Following the transaction, Mican
retains an interest in 87,452,524 Intec ordinary shares, representing 47.6 per
cent of the current issued share capital. The beneficial holding of Mike Frayne
(Intec's Executive Chairman) and his immediate family through a Jersey-based
Trust remains unchanged at 28,353,519 shares, representing 15.4% of the total
issued share capital of Intec.
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 10th January 2025
COMPANIES COVERED:
Latest directors dealings
- 2 days ago FRP Advisory Group
- 2 days ago Marks Electrical Group
- 2 days ago CLS Holdings
- 2 days ago QinetiQ Group
- 2 days ago Spectris