TIDMARC
RNS Number : 5477Y
Arcontech Group PLC
06 March 2017
ARCONTECH GROUP PLC
("Arcontech" or the "Group")
INTERIM RESULTS FOR THE SIX MONTHSED 31 DECEMBER 2016
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 2016.
Highlights:
-- Turnover GBP1,115,232 (six months ended 31 December 2015: GBP1,132,246).
-- Profit before tax increased by 3% to GBP216,270 (six months
ended 31 December 2015: GBP209,660).
-- Annual run-rate of recurring revenues at 31 December 2016
increased by 21% to GBP2.3 million (at 31 December 2015: GBP1.9
million).
-- Net cash of GBP2,089,855 as at 31 December 2016 (31 December 2015: GBP1,538,519).
Richard Last, Chairman of Arcontech Group, said:
"The Board is pleased to report that the Group has continued to
make progress. Revenue lost in early 2015 has been replaced such
that recurring annual licence fees amounted to GBP2.3m as at 31
December 2016, a 21% increase compared to the level at 31 December
2015. In addition, the Group has continued to invest in product
development. The launch of a new desktop software solution is
gaining positive interest with existing customers. The Board
expects results for the full year will be ahead of current market
expectations and remains positive about the Group's prospects."
Enquiries:
020 7256
Arcontech Group plc 2300
Richard Last, Chairman and
Non-Executive Director
Matthew Jeffs, Chief Executive
020 7220
finnCap Ltd (Nomad & Broker) 0500
Carl Holmes/Simon Hicks
To access more information on the Group please visit:
www.arcontech.com
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
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 month period ended 31 December 2016, reporting
an operating profit of GBP212,006 (2015: GBP205,889) and profit
before tax of GBP216,270 (2015: GBP209,660) despite a small
reduction in turnover to GBP1,115,232 for the six month period
ended 31 December 2016, compared to GBP1,132,246 for the
corresponding period in 2015. This reflects the residual impact of
the termination of a significant contract with an Asia focussed
bank (announced on 26 March 2015), effective from 1 January 2016.
In the six month period ended 31 December 2016 the Group has
continued to grow its recurring annual licence fees to an
annualised GBP2.3 million by the end of this period, compared to
GBP1.9 million as at 31 December 2015. Fully diluted earnings per
share were 2.45 pence per share compared to 2.50 pence per share
for the corresponding period last year.
During the period we have continued to invest in the enhancement
of our existing products to remain innovative and be in a position
to respond to customers' changing needs. Additionally, we have
allocated development resource and investment to building a new
desktop software solution which is currently in the process of
undergoing proof of concept trials at five Tier 1 banks. We believe
this area holds significant potential for Arcontech.
Sales cycles remain long and unpredictable due mainly to the
size of the organisations that the Group has as customers and the
nature of our prospects. We continue to invest in sales and
marketing and have recently employed a salesman in Asia to support
our work with existing clients in the region and address the
growing Asian financial markets.
Financing
Arcontech had net cash balances at 31 December 2016 of
GBP2,089,855 (31 December 2015: GBP1,538,519). This reflects a cash
conversion of 200% of operating profit (2015: 220%) which is in
part due to timing of the collection of year-end debtors as well as
good profit performance for the period. We expect the Group to
maintain a good cash conversion ratio in the future.
The Group's positive financial position provides a sound basis
for continued investment in product development and increased
investment in sales and marketing resources and activity.
Dividend and Share Consolidation
At last year's Annual General Meeting shareholders supported the
resolution to consolidate our shares which has subsequently been
successfully completed. This paves the way to paying dividends as
the business continues to progress. Although no interim dividend is
proposed, subject to continued growth and meeting expectations for
the business, the Board will review the payment of a dividend in
respect of the full year ending 30 June 2017.
Employees
Arcontech is made up of a small, highly dedicated and productive
team of people without whom the Group would not have been able to
achieve the results, both financial and product-related. We thank
them and look forward to continuing to work together in the
future.
Outlook
The Board is pleased to report that the Group has continued to
make good progress. Revenue lost in early 2015 has been replaced
such that recurring annual licence fees amounted to GBP2.3m as at
31 December 2016, a 21% increase compared to the level at 31
December 2015. In addition, the Group has continued to invest in
product development. The launch of a new desktop software solution
is gaining positive interest with existing customers. The Board
expects results for the full year will be ahead of current market
expectations and remains 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
2016 2015 2016
(unaudited) (unaudited) (audited)
GBP GBP GBP
Revenue 1,115,232 1,132,246 2,141,630
Administrative costs (903,226) (926,657) (1,849,257)
Operating profit 212,006 205,589 292,373
Finance income 4,264 4,071 9,956
Profit before taxation 216,270 209,660 302,329
Taxation 96,988 105,813 105,813
Profit for the period
after tax 313,258 315,473 408,142
Total comprehensive
income 313,258 315,473 408,142
Profit per share
(basic) 2.53p 2.63p 3.38p
Profit per share
(diluted) 2.45p 2.50p 3.25p
All of the results relate to continuing operations.
BALANCE SHEETS
31 December 31 December 30 June
2016 2015 2016
(unaudited) (unaudited) (audited)
GBP GBP GBP
Non-current assets
Goodwill 1,715,153 1,715,153 1,715,153
Property, plant
and equipment 43,557 49,840 44,785
Trade and other
receivables 141,750 141,750 141,750
Total non-current
assets 1,900,460 1,906,743 1,901,688
Current assets
Trade and other
receivables 592,378 589,294 265,360
Cash and cash equivalents 2,089,855 1,538,519 1,633,159
Total current assets 2,682,233 2,127,813 1,898,519
Current liabilities
Trade and other
payables (858,332) (609,223) (798,769)
Deferred income (1,155,942) (1,306,273) (769,159)
Total current liabilities (2,014,274) (1,915,496) (1,567,928)
Net current assets 667,959 212,317 330,591
Net assets 2,568,419 2,119,060 2,232,279
Equity
Share capital 1,548,886 1,536,672 1,541,732
Share premium account 4,286 9,430,312 2,024
Share option reserve 133,158 106,226 119,692
Retained earnings 882,089 (8,954,150) 568,831
2,568,419 2,119,060 2,232,279
GROUP CASH FLOW STATEMENT
Six months Six months Year ended
ended ended 30 June
31 31
December December
2016 2015 2016
(unaudited) (unaudited) (audited)
GBP GBP GBP
Net cash generated from
operating activities 450,431 481,898 567,420
Investing activities
Interest received 4,264 4,071 9,956
Proceeds of sales of - - -
plant and equipment
Purchases of plant and
equipment (7,415) (17,205) (21,056)
Net cash (invested in)/generated
from investing activities (3,151) (13,134) (11,100)
------------ ------------ ------------
Financing activities
Issue of shares 9,416 - 7,084
Net cash generated from
financing activities 9,416 - 7,084
------------ ------------ ------------
Net increase in cash
and cash equivalents 456,696 468,764 563,404
Cash and cash equivalents
at beginning of period 1,633,159 1,069,755 1,069,755
Cash and cash equivalents
at end of period 2,089,855 1,538,519 1,633,159
============ ============ ============
STATEMENT OF CHANGES IN EQUITY
Share Share Share-based Retained Total
capital premium payments earnings
reserve
GBP GBP GBP GBP GBP
At 1 July
2015 1,536,672 9,430,312 92,761 (9,269,623) 1,790,122
Total comprehensive
income for
the period - - - 315,473 315,473
Share-based
payments - - 13,465 - 13,465
At 31 December
2015 1,536,672 9,430,312 106,226 (8,954,150) 2,119,060
--------------------- ---------- ------------ ------------ ------------ ----------
Total comprehensive
income for
the period - - - 92,669 92,669
Cancellation
of share premium
account - (9,430,312) - 9,430,312 -
Issue of shares 5,060 2,024 - - 7,084
Share-based
payments - - 13,466 - 13,466
At 30 June
2016 1,541,732 2,024 119,692 568,831 2,232,279
--------------------- ---------- ------------ ------------ ------------ ----------
Total comprehensive
income for
the period - - - 313,258 313,258
Issue of shares 7,154 2,262 - - 9,416
Share-based
payments - - 13,466 - 13,466
At 31 December
2016 1,548,886 4,286 133,158 882,089 2,568,419
--------------------- ---------- ------------ ------------ ------------ ----------
NOTES TO THE FINANCIAL INFORMATION
1. The figures for the six months ended 31 December 2016 and 31
December 2015 are unaudited and do not constitute statutory
accounts. The interim results have been prepared using accounting
policies which are consistent with International Financial
Reporting Standards as adopted by the European Union and are
expected to be adopted in the next annual accounts.
2. The financial information for the year ended 30 June 2016 set
out in this interim report does not comprise the Group's statutory
accounts as defined in section 434 of the Companies Act 2006. The
statutory accounts for the year ended 30 June 2016, which were
prepared under International Financial Reporting Standards (IFRS)
as adopted for use in the EU, applied in accordance with the
provisions of the Companies Act 2006, have been delivered to the
Registrar of Companies. The auditors reported on those accounts;
their report was unqualified and did not contain a statement under
either Section 498(2) or Section 498(3) of the Companies Act 2006
and did not include references to any matters to which the auditor
drew attention by way of emphasis.
3. Copies of this statement are available from the Company
Secretary at the Company's registered office at 1(st) Floor 11-21
Paul Street, London, EC2A 4JU or from the Company's website at
www.arcontech.com.
4. Earnings per share have been calculated based on the profit
after tax and the weighted average number of shares in issue during
the half year ended 31 December 2016 of 12,360,981 (31 December
2015: 12,293,376; 30 June 2016: 12,297,590). The number of shares
for the period ended 31 December 2016 take into account the share
consolidation of 125:1 carried out in September 2016. The number of
shares for comparative periods has been restated accordingly.
The number of dilutive shares under option at 31 December 2016
was 427,317 (31 December 2015: 177,504; 30 June 2016: 213,457). The
calculation of diluted earnings per share assumes conversion of all
potentially dilutive ordinary shares, all of which arise from share
options. A calculation is done to determine the number of shares
that could have been acquired at the average market price during
the period, based upon the issue price of the outstanding share
options including future charges to be recognised under the share
based payment arrangements.
5. Taxation is based on the unaudited results and provision has
been estimated at the rate applicable to the Company at the time of
this statement and expected to be applied to the total annual
earnings. No corporation tax has been charged in the period as any
liability has been offset against tax losses brought forward from
prior years. The tax credit represents the cash recovery of
Research & Development tax credits during the period.
6. There were no dividends paid or proposed during the period (2015: Nil).
7. The Directors have elected not to apply IAS34 Interim financial reporting.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR KELFBDXFZBBQ
(END) Dow Jones Newswires
March 06, 2017 02:00 ET (07:00 GMT)
Arcontech (LSE:ARC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Arcontech (LSE:ARC)
Historical Stock Chart
From Apr 2023 to Apr 2024
