RNS Number:4080L
ITIS Holdings PLC
22 May 2003
22nd May 2003
ITIS Holdings plc (the "Company" or "ITIS")
Final results for the year ended 31st March 2003
ITIS Holdings plc: a leading traffic information and vehicle tracking group, is
pleased to announce its final results for the year ended 31st March 2003
Highlights
* AA Roadwatch information services integrated as planned: five months
of contract recorded in these Results;
* Exclusive UK licence from Radio Authority to operate RDS-TMC nationally
extended to 2012;
* NavTrak now an approved option in the UK on BMW, Bentley and Land Rover
and standard equipment on all Ferrari;
* Calls to AA Roadwatch traffic services have grown through the period;
* Turnover up 158% to #3.82m (2002: #1.48m);
* Loss after taxation before exceptional costs reduced by 30% to #6.38m
(2002: loss after taxation before exceptional credit #9.13m);
* Loss after taxation after exceptional costs reduced by 12.5% to #7.43m
(2002: loss after taxation after exceptional credit #8.49m);
* At 31st March 2003, the company's cash balance remained strong at #11.2m
(2002: #17.1m). With the company's current predictions of growing revenues
and further cost reductions, the Directors are confident that ITIS has
sufficient cash to develop the business through to profitability and
positive cash flows.
Stuart Marks, Chief Executive of ITIS Holdings plc commented:
"This year has demonstrated that there is a fast growing market for our traffic
information and vehicle security products, which is endorsed by the variety and
quality of businesses and organisations with which we are now working. Crucial
to our success has been the development of services based on European standards
and the endorsement of technologies such as Floating Vehicle Data (FVD), RDS-TMC
and NavTrak ADR by leading brands such as the AA. With our business model in
place, we are focussed on continuing to offer our customers cost effective,
simple integrated solutions, and we view the coming year as having resultant
benefits for increased revenues to ITIS."
Enquiries:
Stuart Marks, Chief Executive
ITIS Holdings plc
Telephone: 0161 929 5788
Ginny Pulbrook, Director
Citigate Dewe Rogerson
Telephone: 020 7282 2940
Financial Overview
For the year ended 31st March 2003 turnover increased by 158% to #3.82m (2002:
#1.48m). As a result of the increase in revenues and reduction in costs, the
loss after taxation before exceptional costs for the year was reduced to #6.38m
(2002: loss before exceptional credit of #9.13m). The loss after taxation after
exceptional costs for the year was reduced to #7.43m (2002: loss after
exceptional credit of #8.49m). The exceptional costs of #1.05m related to
licence costs written off and costs associated with the renegotiation of a
commission agreement (2002: credit of #0.64m related to the sale of a joint
venture net of the impairment of certain fixed assets).
At 31st March 2003, the company's cash balance remained strong at #11.2m (2002:
#17.1m). With the company's current predictions of growing revenues and further
cost reductions, the Directors are confident that ITIS has sufficient cash to
develop the business through to profitability and positive cash flows.
Business Review
The market
The market continues to develop as Government, businesses and motorists all come
to realise the potential of real time, accurate traffic information and vehicle
security services. As the UK transport network is increasingly under the
spotlight, so both road users and policy makers are demanding better information
on which to base travel and investment related decisions. ITIS is at the centre
of this growth market, and is recognised as a market leader in the provision of
real time and predictive traffic information.
ITIS now has both the raw data and technical capability to fulfil a broad range
of requests, from up-to-date information to service a simple request from a
motorist who needs to make a decision on which motorway to use, right up to the
complex data required by a Government department to measure the effectiveness of
congestion charging.
The AA
On the 11th October 2002 ITIS announced a new five year contract with Automobile
Association Developments Limited, part of the Automobile Association Limited
(AA), to exclusively operate AA Roadwatch branded telephone and telematics
services, and to exploit new opportunities for selling and marketing traffic
information. This contract and integration of the AA traffic information with
our own sources has gone to plan.
The data published by ITIS combines information gathered by the AA on all
incidents across the UK with our own live traffic speed data collected from
thousands of probe vehicles reporting to our Floating Vehicle Data (FVD) system.
The resulting information provides the end customer with an unparalleled level
of detail on all incidents affecting the road network. The IVR (Interactive
Voice Response) platform that supports the traffic information service is
eminently scaleable; for example during the M11 motorway closure in January,
ITIS handled over 87,000 calls during a 24 hour period.
ITIS's traffic information service is now available under the AA Roadwatch brand
on 401100 (all mobile phone networks), 2222 (Vodafone) and 2020 (T-Mobile). Our
traffic information also enhances route information given over the AA's web
site.
The contract with the AA provides ITIS with a secure long-term revenue stream
and the results reflect a five month contribution from this contract.
Floating Vehicle Data ("FVD")
ITIS operates the world's largest commercial FVD system, providing full coverage
of the UK's Strategic Road Network. During the last year we secured agreements
with a number of fleet operators, including the AA, on a fixed annual cost
basis. The result of this has been a dramatic improvement in coverage at a
lower cost per mile than alternative technologies.
Whilst FVD provides real-time information to support our driver information
services, ITIS maintains a data warehouse of all speed and location records for
analysis of historical congestion and journey times. The warehouse continues to
grow by over 3 million observations a day and currently stands at over 500
million records. This information is being sold by ITIS to various Government
agencies and local authorities. It is used for example, by the Scottish
Executive, to provide real time routing and to evaluate expected journey times
dependant upon time of day and the day of the week the customer wishes to make a
specific journey.
RDS-TMC
RDS-TMC remains the only international standard for providing traffic data to a
satellite navigation system. Virtually all screen based satellite navigation
systems are TMC compliant, and vehicle manufacturers see this as a low cost
entry to providing driver information services. Provision of a TMC service
requires close cooperation between the information provider, the digital mapping
companies, the navigation equipment suppliers and car manufacturers as well as a
nationwide broadcast capability. ITIS provides the RDS-TMC service using the AS
/1 licence, which enables our traffic data to be transmitted nationally using
the Classic FM network. In December 2002, ITIS successfully bid for an
extension to this licence from the Radio Authority and the licence is now valid
until the end of 2012.
In addition evaluations by several leading vehicle manufacturers are nearing
completion and during the course of this year we expect to increase greatly
penetration of RDS-TMC from a current base of close to 30,000 cars.
NavTrak
This has been an extremely successful period for our NavTrak business which has
set the standard for vehicle manufacturers and insurers alike. The NavTrak
system is now an approved option in the UK on BMW, Bentley and Land Rover and
standard equipment on all Ferrari.
NavTrak ADR detects theft with the owner's keys, delivers low current drain and
uniquely offers full service coverage across Europe, including police liaison in
over 20 countries, through our agreement with EUROWATCH. This has enabled us to
extend a previously signed contract with a major vehicle rental company in
Italy.
During the year we connected 2,305 NavTrak units. This figure does not yet
reflect the recent endorsements by prestige vehicle brands, which we would
expect to have a material impact on connections during the current year.
Current Trading and Prospects
During the year the ITIS management team have delivered on the strategy set out
in the Results Statement for the year ended 31st March 2002, which were to
control costs, minimise cash usage and grow revenues with the automotive
industry. The Group's focus on the delivery of its unique propositions, such
as the provision of real time traffic flow information via FVD, and the
attractive NavTrak product offerings, have resulted in a more than doubling of
revenues and we expect further substantial revenue growth this year.
Our cash balances remain strong and with the company's current predictions of
growing revenues and further cost reductions, the Directors are confident that
ITIS has sufficient cash to develop the business through to profitability and
positive cash flows.
22nd May 2003
ITIS Holdings plc
Preliminary results for the year ended 31 March 2003
Consolidated profit and loss account
2003 2002
# #
Group turnover 3,821,977 1,480,520
Exceptional direct costs (1,050,000) -
Other cost of sales (5,346,229) (3,895,119)
Cost of sales (6,396,229) (3,895,119)
--------------------- ---------------------
Gross loss (2,574,252) (2,414,599)
Distribution costs (201,573) (493,209)
Impairment of fixed assets - (896,000)
Other administration expenses (5,435,271) (6,659,842)
Administrative expenses (5,435,271) (7,555,842)
---------------------- ---------------------
Group operating loss (8,211,096) (10,463,650)
Profit on sale of joint venture - 1,533,971
Share of operating losses of joint venture - (659,678)
Goodwill amortisation - joint venture - (236,111)
Interest receivable 544,615 1,089,214
Interest payable and similar charges (2,893) (7,121)
__________ __________
Loss on ordinary activities before taxation (7,669,374) (8,743,375)
Tax on loss on ordinary activities 241,431 255,843
__________ __________
Loss on ordinary activities after taxation (7,427,943) (8,487,532)
__________ __________
Loss for the financial year (7,427,943) (8,487,532)
--------------------- -------------------
p p
Basic and diluted loss per ordinary share (7.5) (8.6)
--------------------- -------------------
All activity has arisen from continuing operations.
The group has no recognised gains or losses in either year other than the loss
for that year.
Consolidated balance sheet
2003 2002
#
#
Fixed assets
Intangible assets 395,138 435,501
Tangible assets 814,016 474,371
__________ __________
1,209,154 909,872
__________ __________
Current assets
Stocks 768,865 109,648
Debtors
- due within one year 2,741,985 2,825,139
- due after more than one year 953,438 500,000
Cash at bank and in hand 11,153,945 17,079,443
__________ __________
15,618,233 20,514,230
Creditors: Amounts falling due within one year (3,727,608) (2,083,237)
__________ __________
Net current assets 11,890,625 18,430,993
__________ __________
Total assets less current liabilities 13,099,779 19,340,865
Creditors: Amounts falling due after more than one year (1,565,662) (378,805)
__________ __________
Net assets 11,534,117 18,962,060
__________ __________
Capital and reserves
Called-up share capital 5,186,286 5,186,286
Share premium account 37,342,877 37,342,877
Profit and loss account (30,995,046) (23,567,103)
__________ __________
Shareholders' funds 11,534,117 18,962,060
__________ __________
Shareholders' funds may be analysed as:
As restated
Note 1
Equity interests 8,316,249 15,744,192
Non-equity interests 3,217,868 3,217,868
__________ __________
11,534,117 18,962,060
__________ __________
Consolidated cash flow statement
Notes
2003 2002
# #
Net cash outflow from operating activities 2 (6,480,904) (9,595,338)
_________ __________
Returns on investments and servicing of finance
Interest paid - (5,835)
Interest element of finance lease rental payments (2,893) (1,286)
Interest received 726,068 1,027,135
_________ __________
Net cash inflow from returns on investments and servicing of finance 723,175 1,020,014
_________ __________
Taxation
Research and development taxation credit - 255,843
__________ __________
Net cash inflow from taxation - 255,843
__________ __________
Capital expenditure and financial investment
Purchase of tangible fixed assets (147,535) (705,235)
Sale of tangible fixed assets 19,950 6,500
_________ __________
Net cash outflow from capital expenditure (127,585) (698,735)
_________ __________
Acquisitions and disposals
Investment in joint venture - (490,040)
Disposal of joint venture - 859,000
_________ __________
Net cash inflow from acquisitions and disposals - 368,960
_________ __________
Cash outflow before financing (5,885,314) (8,649,256)
_________ __________
Financing
Issue of shares to minorities - 200
Capital element of finance lease rental payments (40,184) (30,138)
_________ __________
Net cash outflow from financing (40,184) (29,938)
_________ __________
Decrease in cash in the year 3 (5,925,498) (8,679,194)
_________ __________
Reconciliation of movements in group shareholders' funds
2003 2002
# #
Loss for the financial year (7,427,943) (8,487,532)
__________ __________
Net reduction in group shareholders' funds (7,427,943) (8,487,532)
Opening shareholders' funds 18,962,060 27,449,592
__________ __________
Closing group shareholders' funds 11,534,117 18,962,060
------------------- -------------------
Notes
1. Basis of Preparation
The financial information set out in this preliminary announcement does not
constitute the Group's statutory accounts for the years ended 31 March 2002 or
2003, but is derived from those accounts. Statutory accounts for the year ended
31 March 2002 have been delivered to the Registrar of Companies.
The auditors have reported on the accounts for the years ended 31 March 2003 and
2002: their report was unqualified and did not contain a statement under section
273(2) or (3) of the Companies Act 1985.
The financial information set out in this preliminary announcement has been
prepared on the basis of the accounting policies as stated in the accounts for
the year ended 31 March 2002.
The directors, having reconsidered the terms of the company's deferred shares in
the light of the requirements of FRS4, have reclassified those shares as non-
equity shares. There is no impact on the profit for the year or net assets in
either year.
A copy of the annual report and accounts will be circulated to all shareholders
of the company shortly and copies will also be available for members of the
public upon application to the registered office at Fifth Floor, Station House,
Stamford New Road, Altrincham, WA14 1EP and on the website www.itisholdings.com.
2. Reconciliation of operating loss to net cash outflow from operating
activities
2003 2002
# #
Operating loss (8,211,096) (10,463,650)
Depreciation and amortisation of licenses 338,921 346,533
Impairment losses - 896,000
Increase in stocks (659,217) (15,769)
Increase in debtors (310,305) (674,616)
Increase in creditors 2,371,412 316,527
Profit on disposal of fixed assets (10,619) (363)
__________ __________
Net cash outflow from operating activities (6,480,904) (9,595,338)
__________ __________
3. Reconciliation of net cash flow to movement in net funds
2003 2002
# #
Decrease in cash in the year (5,925,498) (8,679,194)
Cash inflow from decrease in lease financing 40,184 30,138
__________ __________
Change in net funds resulting from cash flows (5,885,314) (8,649,056)
New finance lease (500,000) (80,368)
__________ __________
Change in net funds in the year (6,385,314) (8,729,424)
Net funds brought forward 17,029,213 25,758,637
__________ __________
Net funds carried forward 10,643,899 17,029,213
----------------- -----------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR ABMRTMMBTBLJ