Interim Results
May 30 2003 - 3:00AM
UK Regulatory
RNS Number:7064L
Electronic Data Processing PLC
30 May 2003
30 May 2003
Electronic Data Processing PLC (EDP)
Interim results - 6 months to 31 March 2003
EDP is the largest IT solution provider to the UK independent Builders and
Timber Merchants market place and a leading supplier to the wholesale
distribution industry.
Financial Highlights
* Turnover up 5% at #4.5 million (2002: #4.3 million).
* Group pre-tax profit for period, before exceptional items and goodwill
amortisation, of #479,000 (2002: #200,000 loss) after #857,000 expenditure on
product R&D. Result for the period reflects cost-saving measures and some
improvement in trading conditions.
* Recurring revenues represent 67% of total revenues (2002: 66%).
* Increased demand for outsourcing services.
* Operating cash flow was positive during the period.
* Cash balances of #6.0 million (2002: #5.8 million).
* Interim dividend maintained at 0.706p per share.
* The Group is interested in using its cash balances to make further
acquisitions of complementary businesses.
Michael Heller, Chairman of EDP, said:
"Although there has been some improvement in trading conditions the market
generally remains extremely challenging. There are few signs of any immediate
further improvement.
The strength of the Group's balance sheet, with net assets of #14.4 million,
enables us to continue to ride out the current market weakness and your Group
remains well placed to take advantage of any improvement in trading conditions."
-Ends-
For further information please contact:
Richard Jowitt Julian Wassell
Chief Executive Financial Director
0114 262 2001 0114 262 2001
www.edp.fastfreenet.com
Chairman's Statement
Group sales for the period increased by just under 5% to #4.5 million (2002:
#4.3 million). Profit for the period, before exceptional items and goodwill
amortisation, was #479,000 (2002: loss of #200,000). The exceptional items of
#107,000 relate to legal and reorganisation costs and the goodwill charge of
#80,000 relates to the acquisitions of Disys and BCT in 2000 where goodwill is
being amortised over 5 years. The Group pre-tax profit was #292,000 (2002: loss
of #414,000) which reflects the continuing cost-saving measures that we have
made and some improvement in trading conditions.
Group contracted recurring revenues, the majority of which relate to software,
remain strong and amount to 67% of sales (2002: 66%). Initial licence fee income
generated from new business software product sales continues to be weak but will
return when market conditions improve.
The Group's investment in Research & Development has continued with expenditure
amounting to some #857,000 during the period (2002: #950,000), all of which has
been written off to Profit and Loss. We shall shortly make a detailed
announcement with regard to the general customer availability of our Quantum VS
Highway eBIS-XML Document and Data Transmission Outsourcing Service and System
Integration Tool Set. The research for this important, leading-edge product set
began in early 2000.
As I reported last year the Group's subsidiary, BCT, issued copyright
infringement proceedings against a former customer which the former customer
eventually admitted. BCT therefore won the case and the outcome of a costs
appeal has yet to be determined. Exceptional costs amounting to some #63,000
were incurred in relation to this matter during the period under review.
The Group's balance sheet remains strong with net assets of #14.4 million (2002:
#15.5 million). Cash flow was positive during the period resulting in cash
balances at 31 March 2003 in excess of #6.0 million (2002: #5.8 million). We
continue to be interested in utilising these cash balances for the further
acquisition of compatible software solution providing businesses.
Your Directors have resolved to pay an interim dividend of 0.706p per share, the
same as last year. This dividend will be paid on 1 August 2003 to those
shareholders on the register at 4 July 2003. The shares will be "ex dividend"
on 2 July 2003.
Although there has been some improvement in trading conditions the market
generally remains extremely challenging. There are few signs of any immediate
further improvement.
The strength of the Group's balance sheet, with net assets of #14.4 million,
enables us to continue to ride out the current market weakness and your Group
remains well placed to take advantage of any improvement in trading conditions.
Michael Heller 30 May 2003
Chairman
Consolidated Profit and Loss Account
for the 6 months ended 31 March 2003
Unaudited Unaudited Audited
6 months 6 months Accounts
to to year to
31.3.03 31.3.02 30.9.02
#'000 #'000 #'000
Turnover 4,527 4,323 8,480
Operating profit / (loss) before exceptional items and
goodwill amortisation 350 (319) (532)
Goodwill amortisation (80) (80) (159)
Exceptional items (note 4) (107) (134) (938)
Operating profit / (loss) 163 (533) (1,629)
Net interest receivable 129 119 235
Profit / (loss) on ordinary activities before taxation 292 (414) (1,394)
Tax on profit / (loss) on ordinary activities - - 145
Profit / (loss) on ordinary activities after taxation 292 (414) (1,249)
Dividends (174) (174) (567)
Profit / (loss) for the period 118 (588) (1,816)
Earnings / (loss) per share 1.18p (1.66p) (5.03p)
Earnings / (loss) per share before
exceptional items and goodwill amortisation 1.94p (0.80p) (0.61p)
Dividends per share 0.706p 0.706p 2.30p
Net assets per share 58.2p 62.9p 57.8p
Consolidated Balance Sheet
at 31 March 2003
Unaudited Unaudited Audited
at at at
31.3.03 31.3.02 30.9.02
#'000 #'000 #'000
Fixed assets
Intangible assets 586 853 720
Tangible assets 10,091 10,549 10,298
10,677 11,402 11,018
Current assets
Stocks 540 602 626
Debtors 3,054 3,249 2,581
Investments 40 62 40
Cash at bank and in hand 6,013 5,798 5,790
9,647 9,711 9,037
Creditors: amounts falling due within one
year (2,897) (2,307) (2,643)
Net current assets 6,750 7,404 6,394
Total assets less current liabilities 17,427 18,806 17,412
Provisions for liabilities and charges (302) (422) (302)
Deferred income (2,767) (2,878) (2,871)
14,358 15,506 14,239
Capital and reserves
Called up share capital 1,233 1,233 1,233
Share premium account 77 77 77
Revaluation reserve 939 950 944
Capital redemption reserve 75 75 75
Profit and loss account 12,034 13,171 11,910
14,358 15,506 14,239
Consolidated Cash Flow Statement
for the 6 months ended 31 March 2003
Unaudited Unaudited Audited
6 months 6 months Accounts
to to year to
31.3.03 31.3.02 30.9.02
#'000 #'000 #'000
Net cash inflow from operating activities (note 6) 98 166 454
Returns on investments and servicing of finance 136 133 255
Taxation - - 192
Capital expenditure and financial investment (12) (114) (129)
Equity dividends paid - - (575)
Management of liquid resources (46) 210 403
Net cash flow before financing 176 395 600
Financing (1) (520) (522)
Increase / (decrease) in cash 175 (125) 78
Reconciliation of net cash flow to movement in net funds
Unaudited Unaudited Audited
6 months 6 months Accounts
to to year to
31.3.03 31.3.02 30.9.02
#'000 #'000 #'000
Increase / (decrease) in cash 175 (125) 78
Repayment of capital element of finance leases
and hire purchase contracts 1 2 4
Cash inflow / (outflow) from short term deposits 46 (210) (403)
Change in net funds from cash flows 222 (333) (321)
Exchange differences 2 6 (12)
Movement in net funds 224 (327) (333)
Net funds at 1 October 5,789 6,122 6,122
Net funds at 31 March / 30 September 6,013 5,795 5,789
Statement of Total Recognised Gains and Losses
for the 6 months ended 31 March 2003
Unaudited Unaudited Audited
6 months 6 months Accounts
to to year to
31.3.03 31.3.02 30.9.02
#'000 #'000 #'000
Profit / (loss) for the period 292 (414) (1,249)
Currency translation differences on
foreign currency net investments 1 12 (27)
Total recognised gains and losses 293 (402) (1,276)
Notes
(1) The interim results to 31 March 2003, which are unaudited, have been
prepared in accordance with the accounting policies to be adopted in the
Group's next annual accounts, which are the same as those policies used in
the preparation of the accounts for the year ended 30 September 2002.
(2) The comparative figures for the financial year ended 30 September 2002 are
not the Company's statutory accounts for that financial year but are
derived therefrom. Those accounts have been reported on by the Company's
auditor and delivered to the Registrar of Companies. The report of the
auditor was unqualified and did not contain a statement under Section
237(2) or (3) of the Companies Act 1985.
(3) The taxation charge is calculated by applying the Directors' best estimate
of the annual tax rate to the result for the period.
(4) Exceptional items Unaudited Unaudited Audited
6 months 6 months Accounts
to to year to
31.3.03 31.3.02 30.9.02
#'000 #'000 #'000
Legal costs (63) (104) (629)
Costs relating to potential acquisitions - - (254)
Reorganisation and redundancy costs (44) (30) (55)
(107) (134) (938)
Notes (continued)
(5) Earnings per share is calculated by dividing the profit after tax of
#292,000 (2002: loss #414,000) by 24,652,362 (2002: 25,006,758) being the
average number of shares in issue during the period.
Basic and diluted earnings per share are identical.
Earnings per share before exceptional items and goodwill amortisation is
calculated by dividing the profit for the period after tax, but before
exceptional items and goodwill amortisation, of #479,000 (2002: loss
#200,000) by 24,652,362 (2002: 25,006,758) being the average number of
shares in issue during the period, and is reconciled to basic earnings per
share as follows:
Unaudited Unaudited Audited
6 months 6 months Accounts
to to year to
31.3.03 31.3.02 30.9.02
Basic earnings / (loss) per share 1.18p (1.66p) (5.03p)
Exceptional items 0.44p 0.54p 3.78p
Goodwill amortisation 0.32p 0.32p 0.64p
Adjusted earnings / (loss) per share 1.94p (0.80p) (0.61p)
(6) Reconciliation of operating profit / (loss) to net cash inflow from
operating activities
Unaudited Unaudited Audited
6 months 6 months Accounts
to to year to
31.3.03 31.3.02 30.9.02
#'000 #'000 #'000
Operating profit / (loss) 163 (533) (1,629)
Depreciation and amortisation 351 377 774
Changes in working capital and other non-cash
items (416) 322 1,309
Cash inflow from operating activities 98 166 454
This information is provided by RNS
The company news service from the London Stock Exchange
END
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