RNS Number:5762J
Chelford Group PLC
03 April 2003
Chelford Group plc
3 April 2003
Preliminary Results for the 12 months ended 31 December 2002
Highlights
* Turnover in 2002 of #7.3 million (2001: #7.8 million)
* Recurring revenues were up 11%
* EBITDA loss in 2002 of #0.263 million (2001 loss: #0.323 million)
* Chelford Group traded profitably at EBITDA level in second half 2002
and SSI traded profitably at an EBITDA level for 2002
* Order intake for 2002 up 28% over 2001
* Consolidated position in key target markets with major new business
contracts with, Allergy Therapeutics, Axminster Carpets, BAe Systems,
the Bank of England, Gala Foods, H & A Wines and Spirits, Healthcare
Logistics, Meggitt, Morrison Bowmore, Shell Global Solutions and
SMMART Foods
* Multi-year contracts in excess of #2,000,000 signed during the year
* 2003 outlook orders up by #850,000, cost base down by #600,000
* Acquisition of SAP operations of Cleves Solutions Limited:
* 50% increase in customer base
* Group annualised sales in excess of #10m
* Second largest SAP VAR in UK
Chairman's Statement
Against a background of challenging market conditions, the Group has made good
progress towards realising its strategy of building a market leading Supply
Chain solutions business through acquisition and organic growth.
Turnover for the year at #7,298,000 was marginally lower than in 2001, primarily
due to a lower level of sales of third party products and decision delay by some
of our customers. At an EBITDA level, Group performance was better than 2001
with a #263,000 loss against a loss of #323,000. When non-recurring
reorganisation charges and aborted acquisition costs of #205,000 (2001: #55,000)
are excluded, the adjusted EBITDA loss becomes #58,000 (2001: #268,000).
Order intake increased by 28% over 2001 and performance in the second half was
an improvement over the first half, with a Group EBITDA profit of #7,000 against
an EBITDA loss of #270,000. Major new contracts were signed with George Adams,
Allergy Therapeutics, Axminster Carpets, BAe Systems, the Bank of England, Gala
Foods, H & A Wines and Spirits, Healthcare Logistics, Meggitt, Morrison Bowmore,
Shell Global Solutions and SMMART Foods. Such new business wins strengthen our
credibility in our key target markets and reinforce our strong competitive
position. Furthermore, as a number of these new contracts will only be
implemented in 2003, this provides a significant level of contracted activity
going into our next financial year.
On 16 December 2002, the Group, through the purchase of Cleves Solutions
Limited, acquired the assets of the SAP Division of Notability plc (subsequently
re-named Chelford SAP Solutions Limited), SAP's second ranked value-added
reseller (VAR). This acquisition brings the annualised sales of the Group to in
excess of #10m. Chelford SAP Solutions Limited is SAP's primary UK VAR in
Wholesale and Distribution and Consumer Packaged Goods, selling SAP licences and
providing consulting, systems integration and support services into mid-market
companies. SAP is the clear market leader in the Corporate ERP sector and is
now making a major thrust into the mid-market. We expect SAP to be successful
in this sector and we plan to share in this success. It is pleasing to note
that the first new SAP contract has already been signed, adding to the
significant customer base, which the Group has acquired.
In connection with this acquisition I am delighted to welcome Howard Rosen to
the Board. Howard promoted this acquisition opportunity to Chelford and has
joined as Chief Operating Officer of Chelford Group as well as Managing Director
of Chelford SAP Solutions Limited. He has a successful track record of building
businesses including being the founding Financial Director of Compaq Computer UK
and the founding CFO of AltaVista Europe.
Going into 2003, markets continue to be challenging but with the opportunities
for significant business from our customer base, strong positioning in our key
vertical markets and the additional opportunities presented by Chelford SAP
Solutions Limited, your Board looks forward to an EBITDA profit in 2003.
Performance in Q1 is encouraging, with improvement over Q1 2002 and with a
strong pipeline of new opportunities.
The Chelford Board has a clear strategy we have a strong management team and a
committed staff and will continue to seek to develop the Group through organic
growth and by acquisition.
William Birkett
Chairman
3 April 2003
Enquiries:
Chelford Group plc
William Birkett, Chairman 01256 685 400
Trevor Lewis, CEO 01256 685 400
Martin Anderson 01256 685 400
Consolidated profit and loss account for Chelford Group plc for the year ended
31 December 2002.
Note Continuing Acquisitions 2002 2001
Operations
#000 #000 #000 #000
Turnover 1 7,158 140 7,298 7,813
Cost of sales (4,255) (78) (4,333) (4,602)
Gross profit 2,903 62 2,965 3,211
Administrative expenses (3,973) (76) (4,049) (4,342)
Operating loss (1,070) (14) (1,084) (1,131)
Interest receivable and similar income 64 103
Interest payable and similar charges (5) (20)
Loss on ordinary activities before
taxation 2 (1,025) (1,048)
Tax on loss on ordianry activities 3 - -
Retained loss for the financial period (1,025) (1,048)
Basic and fully dilted earnings per 4 (0.16p) (0.16p)
share
There are no recognised gains or losses other than as stated above.
Consolidated balance sheet for Chelford Group plc at 31 December 2002
Note 2002 2001
As restated
#000 #000 #000 #000
Fixed assets
Intangible assets 5,893 5,962
Tangible assets 565 641
6,458 6,603
Current assets
Debtors 3,219 2,346
Cash at bank and in hand 1,066 2,100
4,285 4,446
Creditors: amounts falling due within one year (3,101) (2,517)
Net current assets 1,184 1,929
Net assets 7,642 8,532
Capital and reserves
Called up share capital 6,622 6,487
Share premium 10,879 10,879
Profit and loss account (9,859) (8,834)
Shareholders' funds - equity 7,642 8,532
Company balance sheet at 31 December 2002
2002 2001
#000 #000 #000 #000
Fixed assets
Investments 5,412 5,229
Current assets
Debtors 404 120
Cash at bank and in hand 3,610 4,186
4,014 4,306
Creditors: amounts falling due within one year (212) (161)
Net current assets 3,802 4,145
Net assets 9,214 9,374
Capital and reserves
Called up share capital 6,622 6,487
Share premium 10,879 10,879
Profit and loss account (8,287) (7,992)
Shareholders' funds - equity 9,214 9,374
Consolidated cash flow statement for Chelford Group plc for the year ended 31
December 2002
Note 2002 2001
#000 #000 #000 #000
Net cash outflow from operating activities 5 (670) (440)
Returns on investments and servicing of finance
Interest received 64 103
Interest element of finance lease contracts (4) (13)
Other interest paid (1) (7)
Net cash inflow from returns on investments and 59 83
servicing of finance
Taxation 66 -
Capital expenditure
Purchase of fixed assets (48) (133)
Sale of fixed assets - 8
(48) (125)
Acquisitions
Purchase of subsidiary undertaking (348) -
Net cash outflow from acquisitions (348) -
Net cash outflow before financing (941) (482)
Financing
Share issue costs - (20)
Capital element of finance lease rental payments (93) (101)
Net cash outflow from financing (93) (121)
Decrease in cash and cash equivalents (1,034) (603)
Reconciliation of movements in shareholders' funds for Chelford Group plc for
the year ended 31 December 2002.
2002
Group Company
#000 #000
Loss for the financial year (1,025) (295)
New share capital subscribed 135 135
Share issue costs - -
______ ______
Net reduction to shareholders' funds (890) (160)
Opening shareholders' funds 8,532 9,374
______ ______
Closing shareholders' funds 7,642 9,214
Notes to the accounts for Chelford Group plc for the year ended 31 December 2002.
1) The turnover of the Group for the period has been achieved from
its principal activity. The geographical analysis of turnover is as follows:
2002 2001
#000 #000
United Kingdom 7,082 7,542
Europe 162 261
Rest of the World 54 10
_______ ______
7,298 7,813
2) Loss on ordinary activities before taxation
2002
#000
The loss on ordinary activities before taxation is stated after
charging
Auditors' remuneration:
Group:
- Audit 26
- Other services 4
Company:
- Audit 3
- Other services -
Depreciation and other amounts written off tangible fixed assets:
Owned 154
Leased -
Amortisation of goodwill 667
Hire of plant and machinery - rentals payable under operating 295
leases
Hire of other assets - operating leases 339
Research and development expenditure 774
3) Taxation
2002
#000 #000
UK corporation tax
Current tax on income for the year - -
______ ______
Tax losses amounting to approximately #1,631,000 (2001: #1,336,000) are
available to relieve against future profits of the Group.
4) Earnings per share
2002
Earnings per share is calculated on the weighted average number of shares in 649,221,462
issue during the period of:
__________
Loss on ordinary activities after taxation #1,025,000
__________
Basic and fully diluted earnings per share (0.16p)
5) Analysis of cash flows
2002
#000
Reconciliation of operating loss to net cash flow from operating activities
Operating loss (1,084)
Depreciation 154
Movement in debtors (686)
Movement in creditors 279
Amortisation of goodwill 667
______
Net cash outflow from operating activities (670)
The Annual Report and Financial Statements will be sent to all shareholders.
Further copies will be available to the public from the Company secretary at the
Company's registered office, SSI House, Hampshire International Business Park,
Crockford Lane, Basingstoke, Hampshire RG24 8WH. The abridged accounts for the
period ended 31 December 2002 do not constitute statutory accounts and are an
extract from the Company's statutory accounts on which the auditors give an
unqualified opinion. The Group's accounts for the period ended 31 December 2002
will be filed with the Registrar of Companies in due course.
END
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