Interim Results
2003年9月2日 - 4:00PM
ＲＮＳを含む英国規制内ニュース （英語）
RNS Number:2555P
DCS Group PLC
02 September 2003
2 September 2003
DCS Group plc
Interim results for the six months ended 30 June 2003
DCS Group, a leading international IT solutions and services provider announces
its interim results for the six months ended 30 June 2003.
HIGHLIGHTS
6 months to 30 June 2003 6 months to 30 June 2002
Continuing Operations
Turnover #23.5m #26.8m
Gross margin 38% 35%
Operating profit*/(loss) before goodwill #0.6m #(0.8m)
amortisation and exceptional items
Exceptional items #(0.4m) #(5.2m)
Total
Turnover #30.2m #37.8m
Gross margin 33% 31%
Operating profit*/(loss) before goodwill #0.1m #(0.6m)
amortisation and exceptional items
Exceptional items #(0.4m) #(5.4m)
Operating loss #(1.7m) #(7.2m)
Net debt #20.4m #13.9m
* operating profit before exceptional items and amortisation of goodwill
Highlights
* Group returned to operating profitability* in the six month period
for the first time in 3 years;
* Restructuring programme completed and Group now focused on key
vertical sectors;
* DCS Automotive, Europe's market leader, returned to profitability
and continued pan-European product strategy, signing development
contracts with Wayside Group and MAN;
* DCS Transport & Logistics, international market leader, achieved new
business wins with APL Logistics and Locher Evers International.
Colin Amies, Chairman, said:
"We are delighted that the Group has continued to build on the improved
performance delivered in the fourth quarter of last year, and returned to
operating profitability* in the six month period for the first time in three
years. The Group's restructuring programme is complete and our focus is now on
the key vertical sectors of Automotive and Transport & Logistics, where we have
market leading positions. We remain confident that, although market conditions
remain challenging, we can maintain this improvement."
Contacts: Stephen Yapp, Chief Executive
Colin Campbell, Group Finance Director
DCS Group plc
Tel: 020 7920 6285
Ginny Pulbrook
Rupert Steveney
Citigate Dewe Rogerson
Tel: 0207 282 2945
Group Review
We have achieved three important milestones during the period:
* On 30 May 2003, the Group transferred onto the Alternative
Investment Market (AIM) at a share price of 7.0p. Your Board believes that this
move is in the best interests of shareholders. The Board also believes that our
presence on AIM has increased the number of investors showing interest in the
Group.
* On the 30 June 2003 the Group completed the disposal of 80.1% of DCS
eIntegration Limited. This sale, with its mix of cash and redeemable preference
shares, contributes to the need to repay debt in the short term, whilst ensuring
that shareholders share in any of the longer term upside. For the period, DCS
eIntegration recorded an operating loss of #0.5m on sales of #6.7m, 39% lower
than last year (2002: operating profit #0.2m, sales #11.0m)
* During the period we returned to operating profitability* for the
first time in 3 years. In total, the Group recorded operating profits* of #0.1m
on sales of #30.2m, 20% lower than last year (2002: operating loss #0.6m, sales
#37.8m). On continuing operations, a #0.6m operating profit* was recorded on
sales of #23.5m (2002: operating loss #0.8m, sales #26.8m).
Transport & Logistics
The first half of 2003 has seen sales of #6.9m (2002: #6.9m), and an operating
profit* of #0.7m (2002: #0.8m) after the continued investment of #0.2m in the
JAVA product development programme. Underlying profits were impacted by a #0.2m
provision made against a contractual dispute that arose during the period.
During the period we signed a number of contracts, notably with APL Logistics
(APLL) and Locher Evers International (LEI). The contract with APLL is for a
major pan European project which, when fully implemented in 2003, will utilise
the DCSi.Logistics suite of software as the core to a common operating solution
for APLL across its European offices. Canadian freight forwarder LEI has signed
a licence for our Canadian Brokerage software, as well as a number of our other
modules.
In the USA, we have been certified by US customs to be a Sea AMS provider, which
allows us to offer our Advanced Manifest Application software as complying with
the new 24 hour notification regulations.
In the period we have continued to make steady progress in consolidating our
products and services under the DCSi.Logistics brand.
Automotive
With sales 15% lower than last year, it is pleasing to report the return to
profitability of the Automotive division, which recorded an operating profit* of
#0.4m on sales of #14.8m (2002: operating loss of #1.1m on sales of #17.4m).
The improvement in the period reflects the benefits of last year's restructuring
programme.
We have continued to roll out our pan-European product strategy, agreeing with
Wayside Group a Euro1m project to pilot DCS Quantum in the UK, in addition to the
project that is already underway with MAN, and seeing continued acceptance in
France of our DCSnet product. It is also pleasing to report that customer
satisfaction across the division has continued to improve.
Our recently established joint venture in Asia, DCS AsiaPac, has recorded its
first successful sale and implementation in China.
Financial Review
After a tough trading year during 2002, the Group has returned to operating
profitability*.
The Group's operating profit* (including discontinued activities) for the period
amounted to #0.1m (2002: loss #0.6m). On continuing operations, excluding
eIntegration Limited, the major part of Industry Solutions division that was
sold on 30 June 2003, the operating profit* for the period amounted to #0.6m
(2002: loss #0.8m). The Group total adjusted loss per share was 4.49p (2002:
loss 5.21p).
Group turnover (including discontinued activities) was #30.2m (2002: #37.8m) a
reduction of #7.6m (20%) primarily in the Industry Solutions and Automotive
divisions. On continuing activities, Group turnover was #23.5m (2002: #26.8m), a
drop of #3.3m (12.3%), mainly in the Automotive division and the remainder of
the Industry Solutions division (AC Partners). Turnover for the Transport &
Logistics division remained stable at #6.9m (2002: #6.9m).
On continuing operations:
* Operating profit* was #0.6m (2002: loss #0.8m), an improvement of #1.4m.
* Turnover decreased to #23.5m (2002: #26.8m), a reduction of 12.3% due to
market conditions and exiting unprofitable legacy contracts.
* Gross margin for the Group increased to 38% (2002: 35%).
* New product development spend included in the operating loss reduced to
#0.8m (2002: #1.6m).
* Operating expenses before new product development reduced to #7.5m (2002:
#8.6m), a reduction of 12.8%.
Exceptional costs of #0.4m were incurred during the period. These were
attributable to our new Banking Facility.
The restructuring programme is complete and was disclosed in the 2002 Annual
Report as exceptional. Employee numbers after the disposal of eIntegration
Limited stand at approximately 650 employees, a reduction of 180, of which 100
relate to eIntegration Limited.
Given the uncertain market conditions, the directors consider it prudent not to
recommend an interim dividend for the period.
Taxation
The tax charge for the period is #0.3m (2002: #0.2m).
Borrowings
Net borrowings at the end of the period were #20.4m (2002: #13.9m). This
increase of #2.2m from the 2002 year end figure of #18.2m was mainly due to the
payment of restructuring costs brought forward from 2002, costs associated with
the aborted fundraising, and agreeing new facilities with Barclays Bank Plc.
Outlook
We are delighted that the Group has continued to build on the improved
performance delivered in the fourth quarter of last year, and returned to
operating profitability* in the six month period for the first time in three
years. The Group's restructuring programme is complete and our focus is now on
the key vertical sectors of Automotive and Transport & Logistics, where we have
market leading positions. We remain confident that, although market conditions
remain challenging, we can maintain this improvement.
2 September 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT for the six months ended 30 June 2003
Continuing operations Discontinued Total
operations
Pre-exceptional Exceptional
Six months ended Six months Six months Six months
ended ended Ended
30 June 2003 30 June 2003 30 June 2003 30 June 2003
(unaudited) (unaudited) (unaudited) (unaudited)
Note #m #m #m #m
Turnover 2 23.5 - 6.7 30.2
Cost of sales - normal (14.6) - (5.6) (20.2)
Cost of sales - exceptional 3 - - - -
Gross profit 8.9 - 1.1 10.0
Operating expenses - other (8.3) - (1.6) (9.9)
Operating profit/(loss) before exceptional
items and amortisation of goodwill 0.6 - (0.5) 0.1
Exceptional items 3 - (0.4) - (0.4)
Amortisation and impairment of goodwill 2 (1.4) - - (1.4)
Operating loss 2 (0.8) (0.4) (0.5) (1.7)
Loss on disposal of discontinued 3 (1.4)
operations
Loss on ordinary activities before (3.1)
interest and taxation
Net interest payable and similar charges (0.9)
Loss on ordinary activities before (4.0)
taxation
Tax on loss on ordinary activities 4 (0.3)
Loss on ordinary activities after taxation (4.3)
Dividends 5 -
Retained loss for the period (4.3)
Basic and diluted loss per share 6 (17.16)p
Adjusted basic and adjusted diluted loss 6 (4.49)p
per share
Dividend per share 5 0p
Continuing operations Discontinued Total Total
Pre-exceptional Exceptional operations
Six months Six months Six months Six months Year
ended ended ended ended ended
30 June 2002 30 June 30 June 30 June 2002 31 Dec
2002 2002 2002
(unaudited) (unaudited) (unaudited) (unaudited) (audited)
Note #m #m #m #m #m
Turnover 2 26.8 - 11.0 37.8 69.8
Cost of sales - normal (17.4) - (8.6) (26.0) (44.8)
Cost of sales - exceptional 3 - - - - (1.7)
Gross profit 9.4 - 2.4 11.8 23.3
Operating expenses - other (10.2) - (2.2) (12.4) (25.6)
Operating (loss)/profit before exceptional
items and amortisation of goodwill (0.8) - 0.2 (0.6) (2.3)
Exceptional items 3 - (5.2) (0.2) (5.4) (6.8)
Amortisation and impairment of goodwill 2 (1.2) - - (1.2) (3.7)
Operating loss 2 (2.0) (5.2) - (7.2) (12.8)
Loss on disposal of discontinued operations
- -
Loss on ordinary activities before interest (7.2) (12.8)
and taxation
Net interest payable and similar charges (0.5) (1.4)
Loss on ordinary activities before taxation (7.7) (14.2)
Tax on loss on ordinary activities 4 (0.2) (0.1)
Loss on ordinary activities after taxation (7.9) (14.3)
Dividends 5 - -
Retained loss for the period (7.9) (14.3)
Basic and diluted loss per share 6 (31.72)p (57.14)p
Adjusted basic and adjusted diluted loss 6 (5.21)p (8.32)p
per share
Dividend per share 7 0p 0p
CONSOLIDATED BALANCE SHEET as at 30 June 2003
30 June 2003 30 June 2002 31 Dec 2002
(unaudited) (unaudited) (audited)
#m #m #m
Fixed assets
Intangible assets - Goodwill 11.8 15.6 13.1
Tangible assets 1.8 3.3 2.8
Investments 0.1 - 0.1
13.7 18.9 16.0
Current assets
Stocks 1.1 1.4 0.9
Debtors 12.6 17.4 18.8
Cash at bank and in hand 1.3 2.1 0.9
15.0 20.9 20.6
Creditors
Amounts falling due within one year (37.2) (32.4) (37.9)
Net current liabilities (22.2) (11.5) (17.3)
Total assets less current liabilities (8.5) 7.4 (1.3)
Creditors
Amounts falling due after more than one year - (5.8) (4.3)
Provisions for liabilities and charges (1.7) (4.5) (3.3)
Net liabilities (10.2) (2.9) (8.9)
Capital and reserves
Called up share capital 6.3 6.3 6.3
Share premium account 13.5 13.5 13.5
Merger reserve 5.7 5.7 5.7
Profit and loss account (35.7) (28.4) (34.4)
Equity shareholders' deficit (10.2) (2.9) (8.9)
CONSOLIDATED CASH FLOW STATEMENT for the six months ended 30 June 2003
Six months ended Six months ended Year ended
30 June 2003 30 June 2002 31 Dec 2002
(unaudited) (unaudited) (audited)
Note #m #m #m
Net cash (outflow)/inflow from operating 7 (1.2) 0.3 (2.6)
activities
Returns on investments and servicing of 8 (0.9) (0.5) (1.4)
finance
Taxation (0.2) - (0.5)
Capital expenditure and financial investment (0.2) (0.4) (0.7)
Acquisitions and disposals 9 0.3 (0.2) (0.2)
Cash (outflow) before financing (2.2) (0.8) (5.4)
Financing
Decrease in debt and lease financing - (0.1) (0.5)
Decrease in cash in (2.2) (0.9) (5.9)
period
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT for the six months
ended 30 June 2003
Six months ended Six months ended Year ended
30 June 2003 30 June 2002 31 Dec 2002
(unaudited) (unaudited) (audited)
#m #m #m
Decrease in cash in period (2.2) (0.9) (5.9)
Cash outflow from increase in debt and lease financing - 0.1 0.5
Change in net debt resulting from cash flows (2.2) (0.8) (5.4)
Translation difference - (0.3) -
Movement in net debt for the period (2.2) (1.1) (5.4)
Net debt at start of period (18.2) (12.8) (12.8)
Movement in net debt for the period (2.2) (1.1) (5.4)
Net debt at end of period (20.4) (13.9) (18.2)
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES for the six months ended 30 June
2003
Six months ended Six months ended Year ended
30 June 2003 30 June 2002 31 Dec
2002
(unaudited) (unaudited) (audited)
#m #m #m
Loss for the financial period (4.3) (7.9) (14.3)
Exchange adjustments (0.3) (0.3) -
Unrealised gain on investment in - - 0.1
associate
Total recognised loss relating to the (4.6) (8.2) (14.2)
period
RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS for the six months
ended 30 June 2003
Six months ended Six months ended Year ended
30 June 2003 30 June 2002 31 Dec 2002
(unaudited) (unaudited) (audited)
#m #m #m
Retained loss for the financial period (4.3) (7.9) (14.3)
Exchange adjustments (0.3) (0.3) -
Reinstatement of goodwill written off in 3.3 - -
prior years
Unrealised gain on investment in - - 0.1
associate
Net reduction to shareholders' deficit (1.3) (8.2) (14.2)
Shareholders' (deficit)/funds at start of (8.9) 5.3 5.3
period
Shareholders' deficit at end of period (10.2) (2.9) (8.9)
NOTES TO THE ACCOUNTS for the six months ended 30 June 2003
1. Basis of preparation
The interim results for the six months ended 30 June 2003, which are unaudited,
have been prepared in accordance with the accounting policies in effect at 31
December 2002. The comparative figures for the financial year ended 31 December
2002 are not the group's statutory accounts for that financial year. Those
accounts have been reported on by the company's auditors and delivered to the
registrar of companies. The report of the auditors was unqualified and did not
contain a statement under section 237(2) or (3) of the Companies Act 1985.
Fixed annual charges are apportioned to the interim period on the basis of time
elapsed. Other expenses are accrued in accordance with the same principles used
in the preparation of the statutory accounts. The charge for taxation is based
on the estimated effective rate for the year as a whole.
2. Analysis of trading operations
Six months ended Six months ended Year ended
30 June 2003 30 June 2002 31 Dec 2002
(unaudited) (unaudited) (audited)
#m #m #m
Turnover by geographical
destination
United Kingdom 9.6 13.8 24.4
Rest of Europe 18.2 21.2 41.0
Americas 2.1 2.0 3.6
Other 0.3 0.8 0.8
30.2 37.8 69.8
Six months ended Six months ended Year ended
30 June 2003 30 June 2002 31 Dec 2002
Operating Turnover Operating Turnover Operating Turnover
profit/ profit / profit /
(loss) (loss) (loss)
(unaudited) (unaudited) (unaudited) (unaudited) (audited) (audited)
#m #m #m #m #m #m
Transport & Logistics 0.9 6.9 0.8 6.9 1.6 13.2
New Product Development (0.2) - (0.3)
0.7 0.8 1.3
Automotive Solutions 1.0 14.8 0.5 17.4 1.7 32.9
New Product Development (0.6) (1.6) (2.7)
0.4 (1.1) (1.0)
Industry Solutions 0.1 1.8 0.2 2.5 0.2 4.5
1.2 23.5 (0.1) 26.8 0.5 50.6
Central costs (0.6) (0.7) (1.7)
0.6 (0.8) (1.2)
Discontinued activities (0.5) 6.7 0.2 11.0 0.6 19.2
0.1 30.2 (0.6) 37.8 0.6 69.8
Amortisation of goodwill (1.4) (1.2) (3.7)
Operating loss before
exceptional items (1.3) (1.8) (4.3)
Exceptional items (0.4) (5.4) (8.5)
Operating loss (1.7) (7.2) (12.8)
NOTES TO THE ACCOUNTS for the six months ended 30 June 2003
Six months ended Six months ended Year ended
30 June 2003 30 June 2002 31 Dec 2002
(unaudited) (unaudited) (audited)
#m #m #m
Exceptional costs are attributable to the
segments as follows:
Automotive - (3.6) (6.6)
Industry Solutions - (0.2) (0.3)
Central (0.4) (1.6) (1.6)
(0.4) (5.4) (8.5)
Amortisation of goodwill is attributable
to the segments as follows:
Transport & Logistics (0.7) (0.7) (1.3)
Automotive (0.5) (0.4) (0.8)
Industry Solutions (0.2) (0.1) (1.6)
(1.4) (1.2) (3.7)
3. Exceptional items
Six months Six months ended Year ended
ended 30 June 2002 31 Dec 2002
30 June 2003 (unaudited) (audited)
(unaudited)
#m #m #m
Continuing operations
- Aborted corporate activity - - (1.0)
- Debt structuring costs (0.4) - -
Restructuring costs
- Staff costs following restructuring - (4.1) (5.0)
- Office closures following restructuring - (0.5) (0.7)
- Other costs - (0.6) (1.5)
Total (0.4) (5.2) (8.2)
Discontinuing operations
- Staff costs following restructuring - (0.2) (0.2)
- Office closures following restructuring - - (0.1)
Total - (0.2) (0.3)
Total (0.4) (5.4) (8.5)
NOTES TO THE ACCOUNTS for the six months ended 30 June 2003
3. Exceptional items (continued)
Disposal of discontinued activities
On 31 May 2003 the Group disposed of DCS eIntegration Limited.
The proceeds from the disposal are summarised below:
Nominal value Fair market value
#m #m
Cash 1.3 1.3
Preference shares 2.2 -
Ordinary shares 0.0 -
Total consideration 3.5 1.3
The Board has considered the fair market value of the Preference shares and
Ordinary shares and, given the current market conditions, has provided fully
against their nominal value.
#0.5m of the cash consideration was received on completion, and #0.8m is due to
be received between the completion date and 30 September 2004.
The loss on disposal of DCS eIntegration Limited was:
#m
Fair value of proceeds 1.3
Net liabilities disposed (see below) 1.1
Reinstate goodwill previously written off to reserves (3.3)
Transaction costs (professional fees) (0.3)
Costs of disentanglement (0.2)
Loss on disposal (1.4)
There is no tax impact on the disposal.
The DCS eIntegration Limited balance sheet disposed of at 31 May 2003 is shown
below.
At 31 May 2003
#m
Fixed assets 0.5
Current assets
- Debtors 2.2
2.2
Creditors: amounts falling due within one year:
- Trade creditors (1.3)
- Other creditors (0.4)
- Deferred income (0.6)
- Accruals (0.7)
(3.0)
Net current liabilities (0.8)
Total assets less liabilities (0.3)
Provisions for liabilities and charges (0.8)
Net liabilities (1.1)
NOTES TO THE ACCOUNTS for the six months ended 30 June 2003
4. Tax charge
The tax charge for the period is #0.3m (six months ended 30 June 2002: charge of
#0.2m, year ended 31 December 2002: charge of #0.1m).
5. Dividend
The directors do not recommend the payment of an interim dividend (six months
ended 30 June 2002: nil p per share).
6. Loss per share
Six months ended Six months ended Year ended
30 June 2003 30 June 2002 31 Dec 2002
(unaudited) (unaudited) (audited)
Number (millions) Number (millions) Number (millions)
Weighted average number of ordinary shares
in issue during period 25.0 25.0 25.0
Basic loss (4.3) (7.9) (14.3)
Exceptional items 0.4 5.4 (8.5)
Loss on disposal of discontinued activities 1.4 - -
Goodwill amortisation 1.4 1.2 (3.7)
Adjusted loss (1.1) (1.3) (2.1)
Basic and diluted loss per share (17.16)p (31.72)p (57.14)p
Adjusted and adjusted diluted loss per share (4.49)p (5.21)p (8.32)p
7. Reconciliation of operating loss to net operating cash flow
Six months ended Six months ended Year ended
30 June 2003 30 June 2002 31 Dec 2002
(unaudited) (unaudited) (audited)
#m #m #m
Operating loss (1.7) (7.2) (12.8)
Amortisation and impairment of goodwill 1.4 1.2 3.7
Depreciation 0.7 0.9 1.6
Decrease in working capital - 2.7 3.4
(Decrease)/increase in provisions (1.6) 2.7 1.5
Net cash (outflow)/inflow from operating (1.2) 0.3 (2.6)
activities
NOTES TO THE ACCOUNTS for the six months ended 30 June 2003
8. Returns on investments and servicing of finance
Six months ended Six months ended Year ended
30 June 2003 30 June 2002 31 Dec 2002
(unaudited) (unaudited) (audited)
#m #m #m
Interest paid (1.0) (0.6) (1.6)
Interest received 0.1 0.1 0.2
(0.9) (0.5) (1.4)
9. Acquisitions and disposals
Six months ended Six months ended Year ended
30 June 2003 30 June 2002 31 Dec 2002
(unaudited) (unaudited) (audited)
#m #m #m
Cash received from disposal of subsidiary 0.5 - -
undertaking
Deferred consideration (0.2) (0.2) (0.2)
0.3 (0.2) (0.2)
10. Interim Report
This interim report is being sent to all shareholders and copies are available
to the public from the Company's registered office at 1 Sun Street, London EC2A
2EP.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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