RNS Number:4792P
Claims People Group PLC
08 September 2003
CHAIRMAN'S STATEMENT
Highlights:
* Turnover up 72%
* Profitability achieved
* New client wins
* Acquisition programme initiated
The Board of The Claims People Group plc announces the interim results for the
six months ended 30 June 2003.
Turnover for the six months improved by 72% from #533,469 to #916,990 compared
to the same period last year (full year 2003 #1,035,024) resulting in a profit
of #5,346 compared to a loss of #100,451 for the corresponding period last year.
This profit achievement represents an important milestone in the development of
the business and continues the pattern of improvement from the full year ended
31 December 2002 whereby the year's losses were reduced to #304,032 compared
with a losses of #934,186 for the previous financial year.
The commencement of the new Liverpool Victoria contract assisted the first six
months results as did increased support from Norwich Union and HSBC. I reported
in May of this year that the new 'Verify' product had been rolled out and was
being taken up by Axa, Chaucer and Hastings Direct and we have recently
introduced this new product to British Telecom as an addition to the liability
claims handling services we already provide to this important corporate client.
Acquisition of CCS Global UK
Further to our recent fundraising exercise The Claims People Group plc (TCP) has
acquired the claims handling and UK loss adjusting division of CCS Global from
Axis (Global) UK Limited for a maximum consideration of #355,000.
The UK loss adjusting and claims management business acquired generated
approximately #500,000 (unaudited) of turnover in calendar year 2002. The
consideration is structured with an upfront payment of #105,000 followed by
scheduled payments based upon the continuing business achieving agreed turnover
benchmarks. The deal provides for the transfer of key personnel and TCP will
take over the CCS regional offices in Newcastle and Stockport. The CCS London
office operation will be absorbed into the existing TCP offices in Southwark.
The CCS business represents an important first acquisition for the Group. The
business acquired is complimentary to the existing Claims People offering with
no overlap of client base. The brand name of CCS will be retained and we are
confident that, with the transfer of work in progress and essential CCS staff,
the new division will immediately contribute towards our profitable growth.
The directors view the future prospects, both in terms of organic growth and
earnings enhancing acquisitions, with confidence. We have a strong and committed
team and I look forward to reporting to you further as we pursue future
opportunities.
John French
Chairman
8th September 2003
THE CLAIMS PEOPLE GROUP PLC
UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 30 JUNE 2003
Notes 6 months ended 6 months ended Year ended
30 June 2003 30 June 2002 31 December 2002
Unaudited Unaudited Audited
# # #
Turnover 916,990 533,469 1,035,024
Administrative expenses (912,834) (634,645) (1,337,462)
Operating profit/(loss) 4,156 (101,176) (302,438)
Interest receivable 1,617 1,185 2,704
Interest payable (427) (460) (4,298)
Profit/(loss) before taxation 5,346 (100,451) (304,032)
Taxation 2 - - -
Profit/(loss) after taxation and for the 5,346 (100,451) (304,032)
period
Profit/(loss) per share 3 0.01p (0.2)p (0.52)p
Fully diluted profit/(loss) per share 3 0.01p (0.2p) (0.52)p
The attached consolidated profit & loss account, balance sheet, cash flow
statement and related notes were approved by the Board of Directors on
8th September 2003.
P M Morgan Director
THE CLAIMS PEOPLE GROUP PLC
UNAUDITED CONSOLIDATED BALANCE SHEET
30 JUNE 2003
30 June 2003 30 June 2002 31 December 2002
Unaudited Unaudited Audited
# # #
Fixed assets
Tangible assets 175,729 260,847 219,007
Current assets
Work in progress 131,990 74,741 128,068
Debtors 416,382 253,371 232,695
Cash 13,847 5,759 100,979
562,219 333,871 461,742
Creditors: Amounts falling due
within one year (434,024) (467,840) (375,954)
Net current assets/(liabilities) 128,195 (133,969) 85,783
Total assets less current 303,924 126,878 304,795
liabilities
Creditors: Amounts falling due
after
one year (4,549) (32,492) (10,766)
299,375 94,386 294,029
Share capital and reserve
Called up share capital 1,123,780 771,280 1,123,780
Share premium account 832,123 781,399 832,123
Profit and loss account (1,656,528) (1,458,293) (1,661,874)
Equity shareholders' funds 299,375 94,386 294,029
THE CLAIMS PEOPLE GROUP PLC
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2003
Notes 6 months ended 6 months ended Year ended
30 June 2003 30 June 2002 31 December 2002
Unaudited Unaudited Audited
# # #
Net cash outflow from
operating activities 4 (29,828) (165,527) (478,783)
Return on investments
and servicing of
financing
Interest received 1,617 1,185 2,704
Interest element of
finance
lease payments (427) (460) (4,298)
Capital expenditure
Purchase of tangible (12,632) (9,902) (22,855)
fixed assets
Cash outflow before use
of liquid resources and (41,270) (174,704) (503,232)
financing
Financing
Issue of equity share - - 411,250
capital
Costs of issue of equity - - (8,026)
share capital
Capital element of
finance lease
rental payments (12,433) (10,567) (23,475)
Decrease in cash (53,703) (185,271) (123,483)
THE CLAIMS PEOPLE GROUP PLC
NOTES TO THE INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2003
1. Financial Information
The financial information above does note constitute statutory accounts within
the meaning of Section 240 of the Companies Act 1985.
The interim financial information has not been audited but has been reviewed by
the Company's auditors.
2. Taxation
No liability to taxation arises due to the loss incurred.
3. Profit/(loss) per share
The profit/(loss) per share is based on the profit/(loss) for the period and the
weighted average number of ordinary shares in issue and ranking for dividend.
6 months ended 6 months ended Year ended
30 June 2003 30 June 2002 31 December 2002
Unaudited Unaudited Audited
# # #
Profit/(loss) for the 5,346 (100,451) (304,032)
period
Weighted average number 74,918,667 51,418,667 58,350,174
of shares
In calculating diluted earnings per share, share options have been considered to
be non-dilutive.
4. Reconciliation of operating profit/(loss) to net cash outflow from
operating activities
6 months ended 6 months ended Year ended
30 June 2003 30 June 2002 31 December 2002
Unaudited Unaudited Audited
# # #
Operating profit/(loss) 4,156 (101,176) (302,438)
Depreciation 55,909 53,436 108,228
(Increase) in work in progress (3,922) (9,787) (63,114)
Increase in debtors (183,687) (117,697) (97,021)
Increase/(decrease) in creditors 97,717 9,697 (124,438)
Net cash outflow from operating activities (29,827) (165,527) (478,783)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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