Fidelity Systems plc
Chairman's Statement
for the year ended 28th February, 2010
It gives me great pleasure in presenting Fidelity's final results for the
financial year ended 28th February 2010.
As reported in our interim figures we suffered, as many companies did, in the
first half of our financial year due to the credit crunch affecting corporate
expenditure. Things picked up however in the second half of the financial year
to give a final result, which although not as good as the previous year was
never the less entirely acceptable given the state of the UK economy.
Results
The group achieved a turnover of £1,389,446 for the year to 28th February 2010
(compared to £1,425,332 for the last financial year to 28th February 2009).
Gross profit margins were 78% compared to 2009 (75%). Profit on ordinary
activities before taxation was £170,126 compared to the previous year (£
240,695)
We still have a strong balance sheet with a cash balance at the end of the year
of £992,632 after the payment of the dividend and a surplus of current assets
over current liabilities of £1,174,872.
The group's profit after taxation has been added to reserves.
Operating Review
Last year we won orders from thirteen new Higher Education clients for
Fidelity's EPoS hardware and software and now supply a total of seventy
universities and colleges in the UK. In September we announced the signing of a
Partnership agreement with Magna Carta Chipcard Solutions BV., one of the
leading suppliers of cashless payment systems in Europe. Magna Carta's
technology enables a single smart card to be used as a method of payment for
printing, photocopying, catering and vending together with other uses such as
campus access control, car parking, time & attendance and lockers. The
partnership with Magna Carta has given Fidelity access to their smart card
technology and will enable both companies to jointly approach this new market
in the UK. I am pleased to be able to report that our first contract has been
gained for this new and exciting system - see Post Year End.
Research & Product Development
R&D has continued during the last year with numerous new products and updates
being introduced to either complement or update the current range.
Interim Dividend
I was pleased to be able to announce that an interim dividend of 0.35p net per
10p ordinary share was to be paid on Friday 8th May 2009 to shareholders on the
register at the close of trading on Friday 17th April 2009
Post Year End
Together with our partner Magna Carta Chipcard Solutions BV, I am pleased to
announce that despite having serious competition, we successfully won the
tender for a complete campus chip card solution for the University of Keele.
This is to be installed over the summer and will give Keele facilities for
cashless payments throughout the campus. I will report on this more fully in a
later trading statement.
Prospects & Outlook
During the last financial year we invested heavily in marketing to try and
increase our market penetration during the harsh trading conditions. This
included the introduction of three new web sites to promote all areas of
Fidelity's software and services. Hopefully this will pay off in the long run
as the economy recovers. We have restructured our Northampton office to improve
group profitability by incorporating the accounting and admin functions within
our head office in Hull. The branch still remains as an active sales and
service centre but the consolidation should result in quite substantial
savings. We are building up a very full order book for installations due to
take place over the summer and despite the economic uncertainties at the moment
demand for our products is still healthy.
I look forward to be able to announce further progress in the first half of our
new financial year.
Paul Lowsley
Chairman
Fidelity Systems Plc - Audited Group Profit and Loss Account
for the year ended 28th February, 2010
2010 2009
£ £
Turnover
Continuing 1,389,466 1,425,332
Total turnover 1,389,466 1,425,332
Profit on ordinary activities before 170,126 240,695
taxation
Tax on profit on ordinary activities 27,668 21,500
Profit on ordinary activities after 142,458 219,195
taxation
Dividends
Retained profit for the financial period 142,458 219,195
Profit per share - basic 0.46p 0.71p
Fidelity Systems Plc - Audited Group Balance Sheet
at 28th February, 2010
2010 2009
£ £
Fixed assets 283,472 297,976
Current assets 1,299,812 1,229,005
Current liabilities 124,940 106,155
Net current assets 1,174,872 1,122,850
Total assets less current liabilities 1,458,344 1,420,826
Creditors: amounts due after more then
one year
Provisions for liabilities and charges (6,104) (3,037)
Net assets 1,452,240 1,417,789
Capital and reserves
Called up share capital 3,094,027 3,086,381
Share premium account 651,301 651,301
Other reserves (2,494,050) (2,494,050)
Profit and loss account 200,962 174,157
Equity shareholders' funds 1,452,240 1,417,789