Interim Results
September 09 2003 - 3:01AM
UK Regulatory
RNS Number:5282P
Bond International Software PLC
09 September 2003
FOR IMMEDIATE RELEASE 9 September 2003
BOND INTERNATIONAL SOFTWARE PLC
INTERIM RESULTS
Bond International Software Plc, the specialist provider of software for the
international recruitment and human resources industries, with operations in the
UK, USA and Australia, today announces its interim results for the six months to
30 June 2003.
KEY POINTS
* Sales increased 6.1% to #3.4m (2002: #3.2m)
* Group operating profit of #200k (2002: operating loss of #2.1m)
* Earnings per share 0.64p (2002: Loss per share 13.71p)
* Growth in UK business including one major contract with Rullion
* Considerable improvement in business prospects in the US with two major
orders in the Healthcare Staffing sector from StarMed Staffing Group and
Career Staff
* Australian subsidiary trading successfully. Largest order to date
received in August 2003
Commenting on the results Chief Executive Steve Russell, said:
"We are pleased with these results and are hopeful that we have started to see
signs of optimism in the market with some larger deals starting to come through.
We are well positioned to benefit from any upturn in the market."
For further information, please contact:
Bond International Software Plc: Tel: 01903 707070
Steve Russell: Group Chief Executive e-mail: bmorrison@bond.co.uk
Bruce Morrison: Finance Director
Buchanan Communications: Tel: 020 7466 5000
Tim Thompson e-mail : nicolac@buchanan.uk.com
Nicola Cronk
Bond International Software Plc and Subsidiary Companies
Chairman's Statement
Overview
When I last reported to you, the Group had already begun to feel the positive
effects of the overhead restructuring carried out in the first half of 2002. I
am pleased to say that these benefits have continued through the first half of
this year and, together with a 6.1% overall increase in sales, have resulted in
a Group operating profit of #200,000 compared with an operating loss of
#2,073,000 in the same period last year.
UK & Europe
During the first half of this year, the level of order taking has begun to
improve and some larger deals have reappeared. In April 2003 the Board announced
that a #400,000 agreement to supply Adapt to The Rullion Group had been
concluded. Negotiations are continuing with a number of other potential
customers and your Board expects to be able to announce further contracts in the
near future.
There has also been an increase in the recurring revenue streams and in
particular, with Adapt VMS, our Managed Services product, which now provides
significant monthly income.
North America
I am pleased to say that we have seen a considerable improvement in business
prospects in the United States. In my last report I emphasised our need to
evolve there and to maximise our offerings in niche markets. This strategy has
been successful and has so far this year resulted in two major orders in the
Healthcare Staffing sector, one with StarMed Staffing Group which we announced
on 18 July 2003 and the second with Career Staff.
Australia and Asia Pacific
Our Australian subsidiary has continued its success, recently concluding their
largest order to date worth around #150,000.
Product Development
Having resisted the temptation to cut back on product development, the Group has
actually increased efforts in this area in order to ensure that we continue to
offer the most advanced software solutions. In the first six months of the year
the Group spent #551,000 with further development projects planned for the
second half. The result will be a range of software solutions second to none in
the recruitment industry and which the Board believes will enhance the Company's
position in the UK market and overseas.
Outlook
Business conditions continue to improve. The rate of order take is increasing
and some of the larger deals have begun to re-emerge. These factors, together
with the exciting products that we have in development, will ensure that we are
well positioned to benefit from this continuing upturn.
Martin Baldwin
Chairman
8 September 2003
Bond International Software Plc and Subsidiary Companies
Consolidated profit and loss account to 30 June 2003
Year ended
Six months ended 30 June 31 December
2003 2002 2002
#000 #000 #000
Turnover - continuing operations 3,370 3,175 6,400
Cost of sales (220) (395) (457)
Gross Profit 3,150 2,780 5,943
Administrative expenses (2,949) (4,853) (7,787)
Operating profit/(loss) - continuing operations 201 (2,073) (1,844)
Loss on disposal of discontinued operations - - (66)
Profit/(loss) on ordinary activities before interest 201 (2,073) (1,910)
Net interest payable (46) (13) (62)
Profit/(loss) on ordinary activities before taxation 155 (2,086) (1,972)
Tax on profit/(loss) on ordinary activities (63) 125 2
Retained profit/(loss) for the period 92 (1,961) (1,970)
Earnings/(loss) per share - basic 0.64p (13.71p) (13.79p)
Earnings/(loss) per share - fully diluted 0.64p (13.71p) (13.79p)
Bond International Software Plc and Subsidiary Companies
Consolidated balance sheet as at 30 June 2003
As at
As at 30 June 31 December
2003 2002 2002
#000 #000 #000
Fixed assets
Intangible assets 371 40 172
Tangible assets 2,540 2,757 2,624
2,911 2,797 2,796
Current assets
Stock and work in progress 47 86 44
Debtors 1,477 2,116 1,891
Cash at bank and in hand 1,518 1,149 1,243
3,042 3,351 3,178
Creditors: amounts falling due within one year (2,467) (2,453) (2,552)
Net current assets 575 898 626
Total assets less current liabilities 3,486 3,695 3,422
Creditors: amounts falling due after more than one (712) (864) (746)
year
Provision for liabilities and charges (37) (61) (49)
Net assets 2,737 2,770 2,627
Capital and reserves
Share capital 143 143 143
Share premium 2,294 2,294 2,294
Capital reserve on consolidation 28 28 28
Profit and loss account 272 305 162
Equity capital and reserves 2,737 2,770 2,627
Bond International Software Plc and Subsidiary Companies
Consolidated cash flow statement to 30 June 2003
Six months ended 30 June Year ended
31 December
2003 2002 2002
#000 #000 #000
Net cash inflow/(outflow) from operating activities 747 (640) 65
Currency translation adjustments 7 17 (116)
Returns on investments and servicing of finance
Net interest (35) (13) (62)
Taxation
Corporation tax paid (32) (177) (377)
Overseas taxation paid - - (3)
Net cash outflow for tax paid (32) (177) (380)
Capital expenditure
Payments to acquire intangible fixed assets (202) - (98)
Payments to acquire tangible fixed assets (80) (112) (232)
Receipts from sales of tangible fixed assets 10 2 17
Net cash outflow for capital expenditure (272) (110) (313)
Net cash inflow/(outflow) before financing 415 (923) (806)
Financing
New hire purchase loans - - 51
Repayment of bank loans (82) (81) (151)
Repayment of other loans (27) (11) (40)
Repayment of hire purchase loans (21) (16) (42)
Net cash outflow from financing (130) (108) (182)
Increase/(decrease) in cash for the period 285 (1,031) (988)
Bond International Software Plc and Subsidiary Companies
Notes to the financial statements
1. Basis of preparation
The interim financial statements have been prepared on the basis of the
accounting policies set out in the Company's 2002 statutory accounts.
These statements are unaudited and were approved by the Board of Directors on 8
September 2003. The financial information contained in these statements does
not constitute statutory accounts as defined in Section 240 of the Companies Act
1985. The financial information for the year to 31 December 2002 has been
extracted from the statutory accounts for that year. These accounts, which
received an unqualified audit report, have been filed with the Registrar of
Companies.
2. Turnover analysis
(a) The geographical analysis of turnover by destination is:
Year ended
Six months ended 30 June 31 December
2003 2002 2002
#000 #000 #000
United Kingdom 2,268 2,038 4,395
Rest of Europe 57 166 319
Asia & Australasia 219 266 423
Africa 9 7 26
North & South America 817 698 1,237
3,370 3,175 6,400
(b) Sales by product are:
Year ended
Six months ended 30 June 31 December
2003 2002 2002
#000 #000 #000
Adapt sales & services 1,675 1,784 3,464
Adapt support 1,244 1,092 2,303
Adapt managed services 400 228 512
Adapt revenue 3,319 3,104 6,279
Hardware & other sales 51 71 121
3,370 3,175 6,400
Bond International Software Plc and Subsidiary Companies
Notes to the financial statements (continued)
3. Earnings/(loss) per share
The calculation of basic earnings/(loss) per share is based on attributable
profit for the period of #92,000 (June 2002 - loss #1,961,000; year ended 31
December 2002 - loss #1,970,000) and on 14,297,232 ordinary shares (June 2002 &
year ended 31 December 2002 - 14,297,232) being the weighted average number of
ordinary shares in issue during the period.
The diluted earnings/(loss) per share is based on attributable profit for the
period of #92,000 and on
14,300,216 ordinary shares calculated as follows:
Number
Basic weighted average number of shares 14,297,232
Diluted potential ordinary shares:
Share options 2,984
_________
14,300,216
The diluted loss per share for the six months ended 30 June 2002 and the year
ended 31 December 2002 was the same as the basic loss per share.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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