Final Results
August 12 2003 - 7:38AM
UK Regulatory
RNS Number:5736O
Systems Integrated Research PLC
12 August 2003
Systems Integrated Research plc
Preliminary Results year ended 31 May 2003
Highlights
* During the year the Group sold its 29% interest in the
ordinary shares of Times Learning Systems Pte Limited to their holding company
Times Publishing Limited.
* The Group launched a new innovative product named "National
Curriculum Tests" at the BETT 2003 education exhibition in January.
* During the year the Department for Education and Skills
announced a new four year multimillion pound initiative called the Test Bed
Project. In May this year Durham County Council accepted the Company's tender
submission to supply an Open Integrated Learning System for their Secondary/
Primary/Special School Test Bed Cluster Group.
* The Group is continuing to investigate other ICT sector
opportunities, which may result in significantly enhancing the Group's earnings
capability.
* The Group incurred a loss for the financial year and cash
balances consequently decreased. The Group has reduced its cost base by 12% and
improve the cash flows in the immediate future.
FULL STATEMENT ATTACHED
Enquiries:
Mark Lewis 01773 820011, Systems Integrated Research plc, Managing Director
John Simpson 020 7512 0191, ARM Corporate Finance Limited, Nominated Adviser
Systems Integrated Research plc
Preliminary Results
Chairman's statement for the year ended 31 May 2003
Financial review
Turnover for the year has reduced by 30% to #853,000, this compares with a
turnover of #1,221,000 last year. The reduced turnover for the year has resulted
in a loss before taxation of #288,000, compared to a loss before taxation for
the previous year of #79,000.
Gross margin percentage to turnover remains high at 97%. Overheads were reduced
by 12% to #1,104,000 compared to #1,253,000 last year.
As a result of lower turnover being achieved, staffing levels were reduced
during February this year, the full impact on overhead reduction will be
realised in the financial year 2003/04.
Associated undertaking
During the year the Group sold its 29% interest in the ordinary shares of Times
Learning Systems Pte Limited to their holding company Times Publishing Limited.
As part of the agreement we have retained the joint rights on all the products
developed to date in the associated undertaking for a cost of #39,000.
Product development
The Group launched a new innovative product named "National Curriculum Tests" at
the BETT 2003 education exhibition in January. The product allows teachers to
set computerised mock SAT's tests for years one to nine in Mathematics, English
and Science using the Qualifications and Curriculum Authority (QCA) test papers.
The students' results are automatically marked and assessed for the teacher,
saving a considerable amount of teacher's time.
ICT Test Bed Project
During the year the Department for Education and Skills (DfES) announced a new
four year multimillion pound initiative called the Test Bed Project. This
initiative sets out to examine how effective use of information and
communications technology (ICT) can support the wider Government agenda of
school reform. The project is investing in high levels of IT hardware and
software in three areas of the country.
The Group was pleased to announce in May this year that Durham County Council
had accepted its tender submission to supply an Open Integrated Learning System
for their Secondary/Primary/Special School Test Bed Cluster Group. The software
has been delivered in the first quarter of the new financial year.
Markets
As reported in the Interim Statement, the announcement made that the BBC will be
providing online learning content to schools, has led to a significant amount of
uncertainty in the marketplace.
Although the Government continues to focus on education as a key priority,
schools are continuing to take long periods of time before making purchasing
decisions, impacting on our turnover and profitability.
The Group is continuing to investigate other ICT sector opportunities.
Funding
The Group incurred a loss for the financial year and cash balances consequently
decreased. However the Group has taken action to significantly reduce its cost
base and improve the cash flows in the immediate future. The loan repayments to
Berg & Berg Enterprises, Inc. have also been deferred by a further 18 months in
order to ensure that the Group has sufficient resources to fund trading for more
than a year. The Board therefore considers that it is appropriate for the
accounts to be prepared on a going concern basis.
Systems Integrated Research plc
Preliminary Results
Consolidated profit & loss account for the year ended 31 May 2003
--------------------------------- -------- --------
2003 2002
#'000 #'000
--------------------------------- -------- --------
Turnover 853 1,221
Cost of sales (23) (41)
--------------------------------- -------- --------
Gross profit 830 1,180
Net operating expenses (1,104) (1,253)
--------------------------------- -------- --------
Operating loss (274) (73)
Investment income - interest receivable 5 20
Interest payable and similar charges (19) (26)
--------------------------------- -------- --------
Loss on ordinary activities before taxation (288) (79)
Tax on loss on ordinary activities - -
--------------------------------- -------- --------
Loss on ordinary activities after taxation (288) (79)
Preference shares dividend (45) (45)
--------------------------------- -------- --------
Loss for the financial year (333) (124)
--------------------------------- -------- --------
Loss and diluted loss per ordinary share (2.49p) (0.93p)
IIMR loss per share (2.48p) (0.92p)
All the above amounts relate to continuing operations.
The Group has no recognised gains or losses other than the loss above and
therefore no separate statement of total recognised gains and losses has been
presented.
There is no difference between the loss on ordinary activities before taxation
and the retained loss for the financial year stated above, and their historical
cost equivalents.
Reconciliation of movements in shareholders' funds
---------------------------------- -------- --------
2003 2002
#'000 #'000
---------------------------------- -------- --------
Loss on ordinary activities after taxation (288) (79)
Dividends and appropriations (45) (45)
---------------------------------- -------- --------
Net movement to shareholders' funds (333) (124)
Opening shareholders' funds (1,484) (1,360)
---------------------------------- -------- --------
Closing shareholders' funds (1,817) (1,484)
---------------------------------- -------- --------
Systems Integrated Research plc
Preliminary Results
Consolidated balance sheet at 31 May 2003
---------------------------------- -------- --------
2003 2002
#'000 #'000
---------------------------------- -------- --------
Fixed assets
Tangible assets 51 79
---------------------------------- -------- --------
Current assets
Stocks 16 15
Debtors: amounts falling due after more than one year 44 91
Debtors: amounts falling due within one year 201 254
Cash at bank and in hand 120 521
---------------------------------- -------- --------
381 881
Creditors: amounts falling due within one year (164) (219)
---------------------------------- -------- --------
Net current assets 217 662
---------------------------------- -------- --------
Total assets less current liabilities 268 741
---------------------------------- -------- --------
Creditors: amounts falling due after more than one year (502) (483)
Deferred income (130) (334)
---------------------------------- -------- --------
(632) (817)
---------------------------------- -------- --------
Net liabilities (364) (76)
Capital and reserves
Called up share capital 134 134
Share premium account 3,956 3,956
Profit and loss account - deficit (5,907) (5,574)
---------------------------------- -------- --------
Total equity shareholders' funds - deficit (1,817) (1,484)
Minority interest - non-equity 1,453 1,408
---------------------------------- -------- --------
(364) (76)
---------------------------------- -------- --------
Systems Integrated Research plc
Preliminary Results
Consolidated cash flow statement for the year ended 31 May 2003
2003 2002
#'000 #'000
Net cash outflow from continuing operating activities (see (400) (48)
below) -------- --------
----------------------------------
Returns on investments and servicing of finance
Net interest received 5 19
Interest paid on hire purchase contracts - (2)
---------------------------------- -------- --------
Net cash inflow from returns on investments and servicing of 5 17
finance -------- --------
----------------------------------
Taxation - -
---------------------------------- -------- --------
Capital expenditure and financial investment
Purchase of tangible fixed assets (18) (22)
Sale of tangible fixed assets 12 13
---------------------------------- -------- --------
(6) (9)
-------- --------
Net cash outflow before financing (401) (40)
Financing
Repayment of loan (inclusive of interest rolled up in the - (327)
loan)
Repayment of principal on hire purchase contracts - (13)
---------------------------------- -------- --------
Net cash outflow from financing - (340)
---------------------------------- -------- --------
Decrease in cash in the period (401) (380)
---------------------------------- -------- --------
Reconciliation of operating loss to net cash outflow from continuing operating
activities
Operating loss - continuing activities (274) (73)
Depreciation of tangible fixed assets 33 47
Loss on disposal of tangible fixed assets 1 1
(Increase)/decrease in stocks (1) 5
Decrease in debtors 100 149
Decrease in creditors (55) (56)
Decrease in deferred income (204) (121)
---------------------------------- -------- --------
Net cash outflow from continuing operating activities (400) (48)
---------------------------------- -------- --------
Systems Integrated Research plc
Preliminary Results
Notes to the Financial Statements for the year ended 31 May 2003
1. The Directors are not recommending the payment of an ordinary share
dividend.
2. The loss per share for the year ended 31 May 2003 has been
calculated on the consolidated loss on ordinary activities after taxation and
after deduction of appropriations in respect of non-equity shares, namely
#333,000, (2002: #124,000) divided by the weighted average of equity shares
ranking for dividend during the year being 13,400,051 (2002: 13,400,051 shares).
3. Results for the year ended 31 May 2003 are abridged from the 2003 Annual
Report and Accounts, which received an unqualified auditor's report and will be
filed with the Registrar of Companies following the Annual General Meeting.
4. The Annual Report will be posted to shareholders week commencing
on 18 August 2003. Further copies are available from the Company's head office:
Blackbrook House, Ashbourne Road, Blackbrook, Belper, Derbyshire, DE56 2DB.
5. The Annual General Meeting of the Company will be held at the
offices of J M Finn & Co, Salisbury House, London Wall, London, EC2M 5TA,
England, on 29 September 2003 at 11.00 a.m.
END
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