Interim Results
2003年9月22日 - 6:31PM
ＲＮＳを含む英国規制内ニュース （英語）
RNS Number:0038Q
K3 Business Technology Group PLC
22 September 2003
K3 BUSINESS TECHNOLOGY GROUP PLC
INTERIM RESULTS
FOR THE SIX MONTHS TO 30 JUNE 2003
Results for the six months show an improved operating profit before goodwill
amortisation. The results also include the impact of the write down of the
loans to the RAP Group Limited, following the sale of that business in July
2003.
* Enterprise Resource Planning businesses demonstrate resilience in
difficult markets
Business Systems Division:
- upgrades of software products well received
- solid performance in difficult market conditions
Enterprise Systems Division:
- major new release of product planned for the second half of 2003
- benefits of cost initiatives now showing through
* Cash position will be strengthened by the disposal of interest in RAP
Group Limited - #0.45m cash expected by December 2003
* Turnover of #3.48m (2002 - #3.94m) in difficult market conditions.
* Operating profit before amortisation of goodwill and write down
relating to disposal of interest in RAP Group Limited up at #0.4m (2002 - #0.2m)
despite lower turnover. Underlying margins up 2% to 11%. Operating loss #0.4m
(2002 - #0.02m) reflects write down relating to disposal of interest in RAP.
Enquiries:
K3 Business Technology Group plc Andy Makeham, Chief Executive T: 01270 211211
David Bolton, Finance Director T: 01270 211211
Biddicks Katie Tzouliadis or Kathryn Burn T: 020 7448 1000
Rowan Dartington & Co. Limited Barrie Newton, Managing Director T: 0117 933 0010
K3 BUSINESS TECHNOLOGY GROUP PLC
CHAIRMAN'S STATEMENT
OVERVIEW
Against a background of continuing difficult market conditions, the Group has
traded in line with expectations. The Group's performance was aided by the
benefit of the cost-saving initiatives we put in place last year and we remain
focused on maintaining business efficiencies. At the operating level, our
figures show a significant underlying improvement on 2002. This improvement
however, is masked by the write-offs we have made relating to the sale of RAP
Group Limited ("RAP").
In July 2003, we announced that RAP, in which we held an interest, had sold its
hardware companies. K3 disposed of these hardware companies to RAP in March 2001
but the consideration had been deferred until their onward sale by RAP.
Deferred consideration of #0.2m is included in debtors and is expected to be
recovered in full. In addition, since March 2001, K3 had provided additional
funding to RAP and the debt outstanding at July 2003 amounted to approximately
#1.1m.
The proceeds due to us from the sale of the hardware companies are approximately
#0.75m , of which #0.45m is expected by 31 December and the balance in early
2004. This will result in a loss of #0.55m. We intend to retain the cash for
future acquisitions as and when suitable opportunities arise.
Financial Results
During the six months under review, turnover on continuing operations was #3.48m
against #3.79m in the same period last year. This reflected the challenging
trading conditions in our maintenance renewal marketplaces, however, it is
pleasing to note that with our focus on client service, the trend over the last
18 months of declining maintenance revenues has been arrested. Operating profit
on continuing operations, before amortisation of goodwill and exceptional
write-offs, was #0.41m (2002: #0.36m). The operating loss, which reflects the
impact of write-offs of #0.55m, was #0.39m (2002: #0.02m). In July 2003, our
interest in RAP was realised when RAP sold its hardware companies. The disposal
has resulted in a write-off of #0.55m of K3's loan to RAP.. However, our cash
position will be strengthened by the disposal proceeds of #0.75m . Loss on
ordinary activities before taxation was #0.43m (2002: loss of #0.05m). This
resulted in loss per share before amortisation of goodwill of 0.4p (2002:
earnings of 0.4p) and loss per share of 0.8p (2002: loss per share of 0.1p).
At 30 June 2003, the Group had a positive cash balance of #0.12m compared with
an overdraft of #0.18m at 30 June 2002 and a cash balance of #0.12m at 31
December 2002. The cash balance at 31 August 2003 is #0.16m.
The Directors do not propose to pay a dividend (2002: nil).
OPERATIONAL REVIEW
Business Systems Division
The Business Systems Division, based in Walton-on-Thames, continued its
excellent trading performance in the first half. Towards the end of the period,
the Division introduced its new SmartVision product, which replaces the MFW mid
range manufacturing control system. Uptake has been good so far and the new
product is expected to help stimulate sales in the second half and beyond.
Enterprise Systems Division
The Enterprise Systems Division, based in Crewe, saw modest new sales in the
first half. In June 2003, we released Version 3 of our IBS ERP solution. The
product is targeted at both new and existing customers and we are pleased with
the interest it is generating although we remain realistic about the time
required in the current environment to convert prospects into firm orders. The
business rationalisation undertaken in mid-2002 resulted in cost savings of
#0.25m against the comparable period last year and we will continue to manage
the business in line with market conditions.
Outlook
Market conditions for both our ERP divisions remain difficult and more
especially for the Enterprise Systems Division. The second half of the year is,
traditionally, our stronger period, and whilst the outcome is dependent on
closing substantial new business sales, with the Group's large client base, and
new products, we remain cautiously optimistic.
We continue to evaluate a number of potential acquisition opportunities in our
sector and with our improving cash position we will seek to exploit these
appropriately.
George Matthews
Chairman
22 September 2003
K3 BUSINESS TECHNOLOGY GROUP PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the six months ended 30 June 2003
Unaudited Unaudited Audited
Six months Six months Year to 31
to 30 June to 30 June December 2002
Notes 2003 2002
#'000 #'000 #'000
Turnover
Continuing 3,483 3,790 7,916
Discontinued - 154 172
Total 3,483 3,944 8,088
Operating profit before goodwill amortisation
and exceptional write down
407 220 975
Goodwill amortisation (243) (242) (463)
Exceptional write down (550) - -
Continuing (386) 115 658
Discontinued - (137) (146)
Operating (loss) profit 3 (386) (22) 512
Loss on disposal of operations - - (173)
Net interest payable and similar charges (46) (27) (73)
(Loss) profit on ordinary activities before (432) (49) 266
taxation
Tax on (loss) profit on ordinary activities - - 108
(Loss) profit for the financial period (432) (49) 374
Earnings (loss) per share
Basic 4 (0.8p) (0.1p) 0.7p
Diluted 4 (0.8p) (0.1p) 0.7p
Basic before amortisation of goodwill 4 (0.4p) 0.4p 1.6p
Basic before amortisation of goodwill and 4 0.7p 0.4p 2.0p
exceptional items
The group has no recognised gains or losses in any of the above periods other
than the (loss) profit for that period.
K3 BUSINESS TECHNOLOGY GROUP PLC
CONSOLIDATED BALANCE SHEET
As at 30 June 2003
Unaudited Unaudited Audited
As at As at As at 31
30 June 30 June December
2003 2002 2002
Notes #'000 #'000 #'000
Fixed assets
Goodwill 3,574 4,038 3,817
Tangible assets 425 567 426
3,999 4,605 4,243
Current assets
Properties for resale - 70 30
Debtors - due within one year 3,338 2,982 3,668
- due after one year - 250 200
Cash at bank and in hand 122 - 123
3,460 3,302 4,021
Creditors: amounts falling due within
one year 5 (4,565) (4,933) (4,920)
Net current liabilities (1,105) (1,631) (899)
Total assets less current liabilities 2,894 2,974 3,334
Creditors: amounts falling due after more than
one year
(33) (70) (51)
Provisions for liabilities and charges - (12) -
Net assets 2,861 2,892 3,293
Capital and reserves
Called-up share capital 2,548 2,540 2,548
Shares to be issued - 58 -
Share premium account 6 6,441 6,452 6,441
Other reserve 6 2,359 2,320 2,359
Profit and loss account 6 (8,487) (8,478) (8,055)
Equity shareholders' funds 2,861 2,892 3,293
K3 BUSINESS TECHNOLOGY GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT
For the period ended 30 June 2003
Unaudited Unaudited Audited
Six months Six months Year to 31
to 30 June 2003 to 30 June December
2002 2002
Notes #'000 #'000 #'000
Net cash inflow (outflow) from operating 7 113 (7) 471
activities
Returns on investments and servicing of finance (11) (10) (35)
Taxation - - -
Capital expenditure and financial investment (87) (62) (66)
Acquisitions and disposals - - (105)
Cash inflow (outflow) before financing 15 (79) 265
Financing (16) (40) (79)
(Decrease) increase in cash in the period (1) (119) 186
NOTES TO THE FINANCIAL STATEMENTS
1. The interim financial information has been prepared in
accordance with the accounting policies adopted in the accounts for the year
ended 31 December 2002.
2. The financial information in this statement relating to the
six months ended 30 June 2003 and the six months ended 30 June 2002 is unaudited
and does not constitute full statutory accounts within the meaning of Section
240 of the Companies Act 1985. The figures for the year ended 31 December 2002
have been extracted from the statutory accounts which have been filed with the
Registrar of Companies. The audit report was unqualified and did not contain
any statement under section 237 (2) and (3) of the Companies Act 1985.
3. Operating (loss) profit
The operating (loss) profit is stated after charging a write down #0.55m (2002:
#nil) relating to the disposal of the Group's interest in RAP Group Limited.
4. Earnings (loss) per share
The calculations of earnings (loss) per share are based on the following
earnings (losses) and numbers of shares:
Basic and diluted
Unaudited six Unaudited six Audited year
months to 30 June months to 30 June to 31 December
2003 2002 2002
#'000 p #'000 p #'000 p
Basic (loss) earnings per share (432) (0.8) (49) (0.1) 374 0.7
Effect of goodwill amortisation 243 0.4 242 0.5 463 0.9
Basic (loss) earnings per share before
amortisation of goodwill (189) (0.4) 193 0.4 837 1.6
Exceptional items (net of tax) 550* 1.1 - - 173 0.4
Basic earnings per share before
amortisation of goodwill and exceptional
items 361 0.7 193 0.4 1,010 2.0
Number of shares Number of shares Number of shares
Weighted average number of shares 50,962,144 50,794,279 50,844,943
* Relates to write-off of debt due from RAP Group.
5. Creditors: amounts falling due within one year
Included in creditors due within one year is deferred income of #2,285,000
(2002: #2,135,000) relating to income from support which is generally invoiced
in advance and recognised as revenue in equal monthly instalments over the
relevant periods.
6. Reserves
Share Other Profit and Total
premium reserve loss account
account
#'000 #'000 #'000 #'000
At 1 January 2003 6,441 2,359 (8,055) 745
Retained loss for the period - - (432) (432)
At 30 June 2003 6,441 2,359 ( 8,487) 313
7. Cash flow statement
Reconciliation of operating (loss) profit to operating cash flows
Unaudited Unaudited Audited Year
Six months Six months to 31 Dec 2002
to 30 June to 30 June
2003 2002
#000 #000 #000
Operating (loss) profit (386) (22) 512
Depreciation and fixed asset impairment 88 113 206
Loss on sale of tangible fixed assets - - 29
Write down of properties held for resale - - 40
Amortisation of goodwill 243 242 463
Decrease (increase) in debtors 560 222 (312)
Decrease in creditors (392) (443) (336)
Decrease in provisions - (119) (131)
113 (7) 471
8. The above information is being sent to the shareholders and
is available from the Company's registered office: Unit 19, Linden Business
Centre, Linden Road, Colne, Lancashire, BB8 9BA.
This information is provided by RNS
The company news service from the London Stock Exchange
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