RNS Number:7318U
CybIT Holdings PLC
28 November 2005
Cybit Holdings Plc
Interim Results for the Six Months Ended 30 September 2005.
Highlights
Cybit Holdings Plc, one of the UK's fastest growing and most innovative
telematics service providers, today announces its interim results for the six
months ended 30 September 2005.
Unaudited Unaudited Audited
6 months ended 30 6 months ended 30 Year ended
September 2005 September 2004 31 March
2005
#'000 #'000 #'000
Turnover 4,919 2,605 6,727
Operating profit/(loss) 463 (833) (627)
Operating profit/(loss) before depreciation
and goodwill amortisation and interest
(EBITDA) 682 (628) (214)
Loss before tax (190) (1,125) (1,543)
Key points
* Record revenues over the period.
* Return to profitability at the operating level.
* Launch of new Duty of Care and Driver-ID modules with potential for future
growth.
Neil Johnson, Chairman of Cybit commented:
"This has been another six months of further development for Cybit. The
environment for Telematics Service Providers (TSPs) is becoming more positive as
market awareness improves. We have also been involved in exploring the
potential which recent government statements on road pricing will have, and
their potentially positive impact on our business."
For further information please contact:
Richard Horsman Chief Executive, Cybit Holdings Plc
01480 389100
Stephen Davie College Hill
020 7457 2004
Chairman's Statement
I am pleased to be able to report further progress at Cybit. There is a growing
recognition that telematics-based transport management products can play a
significant role in enhancing corporate efficiency as well as providing
cost-effective solutions to increasing legislative demands and obligations.
Financial Performance
Our revenue grew by 89 per cent, to a record #4.9 million. The Company achieved
EBITDA of #682,000 against a loss of #628,000 in the same period last year,
enhanced by the impact of the revenue recognition policy introduced in April
2004.
Cash management remains a priority with cash balances increased to #3.52 million
(2004: #3.35 million). This achievement should be considered against a
background of investment in both technology and headcount, which will support
future growth without inflating our cost base.
Operational Review
United Kingdom
There is a growing awareness and greater understanding of the advantages that
telematics can bring to transport-based businesses. Fuel price pressures, the
need for business efficiency and the need for good management continue to drive
orders. Along with additional orders from existing customers including
Sainsbury's to You and Alfred McAlpine Business Services, we have added in
excess of 100 new customers including Interserve, Mitie Engineering and National
Car Parks.
The customer base for our flagship Fleetstar-Online product continues to grow
with circa 13,500 vehicles managed for approximately 600 customers in the United
Kingdom. It is pleasing to report that we now have our first customer with more
than 1,000 units.
Through this period our consulting team and service offerings were also
expanded, as we were able to take advantage of greater product functionality and
increased customer demand.
City Car Clubs (formerly Smartmoves), our major Drive-IT customer in the UK,
continues to develop its customer base with our products now installed in 150
vehicles. New software is to be launched in the second half, together with
re-designed in-vehicle hardware, that will be based on existing Fleetstar
hardware, offering greater interoperability and reduced supply costs.
I am delighted to report that we have contracted six specialist telematics
brokers who will work alongside our partner Norwich Union, at a regional level,
to promote telematics enabled insurance products to their existing and new
clients. Further information relating to the partnerships will be announced in
due course.
International
In our international markets it is pleasing to be able to report improved
revenue performance in Scandinavia, together with a significant order book into
the second half.
Our investment in Germany continues with the appointment of direct marketing
staff to support sales activities.
Corporate Developments
During the period, our previously reported ISO implementation was expanded to
include product development and IT infrastructure. ISO plays a key role in the
effective management of a fast growing customer base. In the past 12 months,
Cybit has achieved net savings of around #325k that can be directly attributed
to embracing this demanding standard within the business.
The Company continues to make significant investments in R&D across the product
portfolio, delivering further hardware and software enhancements.
The most important of these was a new module aimed at supporting a company's
Duty of Care responsibilities to its employees. This module is relevant to
businesses that operate a mobile workforce and it therefore has the potential to
open new market opportunities for Cybit. In addition to the Duty of Care
solution, a Driver ID module, which will give operators the ability to remotely
identify who is driving a given vehicle at any time, has also been added to the
platform.
During the second half, the Company is planning to release further functional
enhancements that should help client retention and derive further recurring
revenues. This will help enhance our long-term profitability.
Outlook
This has been another six months of positive development for Cybit.
With a number of legislative initiatives in the pipeline or under discussion,
the environment for Telematics Service Providers (TSPs) is very encouraging. In
particular, we are conducting a review of the potential introduction of road
pricing and positive impact such a move would have on our business.
The successes achieved in the first half of the year gives the Board confidence
that the result for the full year will be in line with expectations.
Neil Johnson
28 November 2005
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the 6 months ended 30 September 2005
Unaudited Unaudited Audited
6 months ended 30 6 months ended 30 Year ended
September 2005 September 2004 31 March
2005
# # #
Turnover 4,918,882 2,604,928 6,727,392
Cost of sales (1,617,163) (1,190,348) (2,752,063)
Gross profit 3,301,719 1,414,580 3,975,329
Administrative expenses
Other operating expenses (2,619,905) (2,042,957) (4,189,110)
Depreciation and goodwill amortisation (218,938) (205,026) (412,881)
Total administrative expenses (2,838,843) (2,247,983) (4,601,991)
Operating profit/(loss) 462,876 (833,403) (626,662)
Net interest and financing costs (652,845) (291,835) (916,102)
Loss on ordinary activities before taxation (189,969) (1,125,238) (1,542,764)
Tax on loss on ordinary activities 36,100 - 234,835
Retained loss transferred from reserves (153,869) (1,125,238) (1,307,929)
Loss per share
Basic (0.77p) (6.22p) (6.60p)
CONSOLIDATED BALANCE SHEET
As at 30 September 2005
Unaudited Unaudited Audited
30 September 2005 30 September 2004 31 March
2005
# # #
Fixed assets
Intangible assets 504,681 629,087 614,526
Tangible assets 632,178 621,211 661,063
1,136,859 1,250,298 1,275,589
Current assets
Stocks 246,093 118,654 120,821
Debtors: amounts falling due after more than
one year 1,286,214 1,163,963 1,431,293
Debtors: amounts falling due within one year 2,709,944 2,380,999 2,405,906
Called up share capital not paid 8,260 8,260 8,260
Cash at bank and in hand 3,522,606 3,351,679 3,704,225
7,773,117 7,023,555 7,670,505
Creditors: amounts falling due within one
year (2,273,471) (1,521,968) (2,266,422)
Net current assets 5,499,646 5,501,587 5,404,083
Total assets less current liabilities 6,636,505 6,751,885 6,679,672
Creditors: amounts falling due after more
than one year (454,722) (282,085) (352,133)
6,181,783 6,469,800 6,327,539
Capital and reserves
Called up share capital 7,046,127 7,043,627 7,046,127
Share premium account 7,060,714 7,060,714 7,060,714
Merger reserve 37,500 - 37,500
Other reserve (4,090,553) (4,090,553) (4,090,553)
Profit and loss account (3,872,005) (3,543,988) (3,726,249)
Shareholders' funds 6,181,783 6,469,800 6,327,539
The interim financial information was approved by the Board of Directors on 28
November 2005 and was signed on its behalf by
Richard Horsman Kevin Lawrence
Chief Executive Finance Director
CONSOLIDATED CASH FLOW STATEMENT
For the 6 months ended 30 September 2005
Unaudited Unaudited Audited
6 months ended 30 6 months ended 30 Year ended
September 2005 September 2004 31 March
2005
# # #
Net cash inflow/(outflow) from operating
activities 415,955 (804,387) 315,861
Returns on investments and servicing of
finance
Interest received 63,174 67,011 122,562
Finance costs of assigning debts to finance
companies (686,284) (373,950) (994,833)
Finance lease interest paid (11,675) (4,816) (11,580)
Interest received on finance leases 3,595 1,053 3,535
Interest paid (12,289) 18,867 (26,420)
Net cash outflow from returns on investments
and servicing of finance (643,479) (291,835) (906,736)
Taxation - - (11,808)
Capital expenditure
Purchase of tangible fixed assets (73,272) (276,018) (410,687)
Purchase of intangible fixed assets (8,606) (34,571) (7,971)
Net cash outflow from capital expenditure (81,878) (310,589) (418,658)
Acquisitions
Purchase of business - - (89,408)
Net cash outflow from acquisitions - - (89,408)
Financing
Issue of shares - 5,167 5,167
Receipts from borrowing 61,750 - 92,888
Repayment of loans (38,674) (6,370) (23,052)
Funds raised on sale and leaseback 162,547 216,078 216,078
Repayment of funds raised on sale and
leaseback of fixed assets (56,913) (49,888) (69,330)
Net cash inflow from financing 128,710 164,987 221,751
(Decrease)/increase in cash (180,692) (1,241,824) (888,998)
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
For the 6 months ended 30 September 2005
NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES
Unaudited Unaudited Audited
6 months ended 30 6 months ended 30 year ended
September 2005 September 2004 31 March
2005
# # #
Operating profit/(loss) 462,876 (833,404) (626,662)
Depreciation and amortisation 218,938 205,026 412,881
Increase in stock (125,272) (25,545) (27,884)
(Increase)/decrease in debtors (113,405) 181,729 123,875
(Decrease)/increase in creditors (68,357) (462,180) 230,565
Increase in deferred income 41,175 129,987 203,086
Net cash inflow/(outflow) from operating
activities 415,955 (804,387) 315,861
RECONCILIATION OF MOVEMENTS IN NET CASH
1 April 2005 Cash flow Receipts from Exchange 30 September 2005
borrowing movements
# # # # #
Cash in hand and at
bank 3,704,225 (180,692) - (927) 3,522,606
Bank overdrafts (15,053) - - 430 (14,623)
3,689,172 (180,692) - (497) 3,507,983
Finance leases (146,748) 56,913 (162,547) - (252,382)
Debt due after more
than one year (81,631) 26,464 (38,274) - (93,441)
Debts due within one
year (38,055) 12,210 (23,476) - (49,321)
3,422,738 (85,105) (224,297) (497) 3,112,839
RECONCILIATION OF MOVEMENTS IN GROUP SHAREHOLDERS' FUNDS
Unaudited Unaudited Audited
6 months ended 30 6 months ended 30 year ended
September 2005 September 2004 31 March
2005
# # #
Loss for the period (153,869) (1,125,238) (1,307,929)
Issue of shares in the period - 5,167 45,167
Other recognised gains and losses in the
period 8,113 (19,570) (19,140)
Net decrease in shareholders' funds (145,756) (1,139,641) (1,281,902)
Opening shareholders' funds 6,327,539 7,609,441 7,609,441
Closing shareholders' funds 6,181,783 6,469,800 6,327,539
NOTES TO THE FINANCIAL STATEMENTS
1. The interim financial information does not constitute statutory accounts for
the purpose of section 240 of the Companies Act 1985. The figures for the
year ended 31 March 2005 have been extracted from the Group accounts for
that year. Those financial statements have been delivered to the Registrar
of Companies and included an auditors' report, which was unqualified.
2. The interim financial information has been prepared using the same accounting
policies and estimation techniques as set out in the Group accounts for the
year ended 31 March 2005.
3. The basic loss per share has been calculated based on the loss on
ordinary activities after taxation and the weighted average number of
ordinary shares of 5p each in issue for the period of six months to 30
September of 19,864,554 (September 2004: 18,073,607 and March 2005:
19,830,038). In accordance with FRS 14, the adjustment for diluted loss per
share is ignored as it results in an increased loss per share. The loss per
share for the six months ended 30 September 2004 has been restated to
reflect the 50 for 1 share consolidation that took place on 20 December 2004.
4. A copy of the Interim Statement is being sent to all shareholders and copies
are available for collection from the Company's Registered Office at the
address below:
Cybit Holdings Plc
IT House
Chord Business Park
London Road
Godmanchester
Cambridgeshire
PE29 2NU
www.cybit.co.uk
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