TIDMARC
RNS Number : 9335P
Arcontech Group PLC
24 February 2016
ARCONTECH GROUP PLC
("Arcontech" or the "Group")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2015
Arcontech (AIM: ARC), the provider of products and services for
real-time financial market data processing and trading, is pleased
to report its unaudited results for the six months ended 31
December 2015.
Financial and business highlights:
-- Turnover increased by 9% to GBP1,132,246 (six months ended 31 December 2014: GBP1,041,599).
-- Operating profit increased by 78% to GBP205,889 (six months
ended 31 December 2014: GBP115,900).
-- Annual run-rate of recurring revenues at 31 December 2015
amount to GBP1.9 million (2014: GBP2.1 million) and cover 105% of
the cost base (2014: 112%).
-- Net cash of GBP1,538,519 as at 31 December 2015 (31 December 2014: GBP1,073,948).
Richard Last, Chairman of Arcontech Group, said:
"The Board is pleased to report continued progress by the Group
in delivering increasing levels of turnover and profitability.
Results for the current year ending 30 June 2016 remain on target
taking into account the reduced revenue from one of our clients in
Asia. Costs continue to be managed closely. With net cash balances
as at 22 February 2016 of GBP1.8m and a good sales pipeline, we are
increasingly positive about the Group's prospects."
Enquiries:
Arcontech Group plc
Richard Last, Chairman and
Non-Executive Director 07713 214484
020 7256
Matthew Jeffs, Chief Executive 2300
finnCap Ltd
020 7220
Carl Holmes/Simon Hicks 0569
To access more information on the Group please visit:
www.arcontech.com
The interim report will only be available to view online
enabling the Group to communicate in a more environmentally
friendly and cost effective manner.
Chairman's Statement
I am pleased to report that Arcontech has continued to grow
profits in the six months ended 31 December 2015. The operating
profit for the period was GBP205,889 compared to GBP115,900 in the
corresponding six month period ended 31 December 2014, an increase
of 78%. This was achieved by increasing turnover for the six month
period by 9% to GBP1.13 million (six month period ended 31 December
2014: GBP1.04 million) and by continued strict cost control. Of the
total revenue, GBP1.13 million relates to recurring annual licence
fees (six month period ended 31 December 2014: GBP1.04 million).
Fully diluted earnings per share increased by 42% to 0.02 pence per
share compared to 0.014 pence per share for the corresponding
period last year.
We continue to work towards making up for the termination of a
significant contract with an Asia focused bank (as announced on
26(th) March 2015) requesting the termination of its contract 18
months early, and which was agreed to take effect from 1 January
2016. Despite this loss, the annual run-rate of recurring revenues
at 31 December 2015 (excluding that contract) amounts to GBP1.9
million (2014: GBP2.1 million including that contract) and covers
105% of the cost base (2014: 112%).
The sales cycle continues to be longer than we would like. With
our strengthened pipeline of qualified prospects, along with the
additional offerings under development we believe the frequency of
new sales wins will improve. Our product development continues to
focus both on enhancing solutions for existing customers, as well
as developing new products and is showing good progress. We have
been working with several clients to broaden the appeal of
Excelerator as well as enhance our server-side systems to better
integrate with clients' infrastructure.
Financing
Arcontech has net cash balances at 31 December 2015 of
GBP1,538,519 (31 December 2014: GBP1,073,948). This has allowed
Arcontech to continue to maintain its level of product development
and further increase its sales capability. Cash balances at 22(nd)
February amount to GBP1,803,370.
Employees
I should like to thank our employees and my fellow directors for
their continuing hard work and dedication over the last six months,
without which we would not have been able to achieve the reported
results and to increase profitability.
Outlook
The Board is pleased to report continued progress by the Group
in delivering increasing levels of turnover and profitability.
Results for the current year ending 30 June 2016 remain on target
taking into account the reduced revenue from one of our clients in
Asia. Costs continue to be managed closely. With net cash balances
as at 22 February 2016 of GBP1.8m and a good sales pipeline, we are
increasingly positive about the Group's prospects.
Richard Last
Chairman and Non-Executive Director
GROUP INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME
Six months Six months Year ended
ended ended 30 June
31 31
December December
2015 2014 2015
(unaudited) (unaudited) (audited)
GBP GBP GBP
Revenue 1,132,246 1,041,599 2,129,958
Administrative costs (926,657) (925,699) (1,890,242)
Operating profit 205,589 115,900 239,716
Finance income 4,071 1,032 3,944
Profit before taxation 209,660 116,932 243,660
Taxation 105,813 109,378 109,378
Profit for the period
after tax 315,473 226,310 353,038
Total comprehensive
income 315,473 226,310 353,038
Profit per share
(basic) 0.021p 0.015p 0.023p
Profit per share
(diluted) 0.020p 0.014p 0.023p
All of the results relate to continuing operations.
BALANCE SHEETS
31 December 31 December 30 June
2015 2014 2015
(unaudited) (unaudited) (audited)
GBP GBP GBP
Non-current assets
Goodwill 1,715,153 1,715,153 1,715,153
Property, plant
and equipment 49,840 15,531 41,605
Trade and other
receivables 141,750 - 141,750
Total non-current
assets 1,906,743 1,730,684 1,898,508
Current assets
Trade and other
receivables 589,294 757,616 478,402
Cash and cash equivalents 1,538,519 1,073,948 1,069,755
Total current assets 2,127,813 1,831,564 1,548,157
Current liabilities
Trade and other
payables (609,223) (609,224) (779,542)
Deferred income (1,306,273) (1,303,096) (877,001)
Total current liabilities (1,915,496) (1,912,320) (1,656,543)
Net current assets/(liabilities) 212,317 (80,756) (108,386)
Net assets 2,119,060 1,649,928 1,790,122
Equity
Share capital 1,536,672 1,536,672 1,536,672
Share premium account 9,430,312 9,430,312 9,430,312
Share option reserve 106,226 79,295 92,761
Retained earnings (8,954,150) (9,396,351) (9,269,623)
2,119,060 1,649,928 1,790,122
GROUP CASH FLOW STATEMENT
Six months Six months Year ended
ended ended 30 June
31 31
December December
2015 2014 2015
(unaudited) (unaudited) (audited)
GBP GBP GBP
Net cash generated from
operating activities 481,898 340,259 369,982
Investing activities
Interest received 4,071 1,032 3,944
Sales of plant and equipment - 166 167
Purchases of plant and
equipment (17,205) (1,185) (38,014)
Net cash (used in)/generated
from investing activities (13,134) 13 (33,903)
Net increase in cash
and cash equivalents 468,764 340,272 336,079
Cash and cash equivalents
at beginning of period 1,069,755 733,676 733,676
Cash and cash equivalents
at end of period 1,538,519 1,073,948 1,069,755
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