RNS Number:6269Q
Dicom Group PLC
31 August 2005
Regulatory Announcement
DICOM Group plc
Preliminary Results - Year to 30 June 2005
Record adjusted Pre-tax Profits, Optimistic Outlook
Basingstoke, 31 August 2005 - DICOM Group plc ("DICOM Group"), the global leader
in the Information Capture ("IC") market, announces strong results for the year
to 30 June 2005.
Financial Highlights of the Preliminary Results
Group results
* Turnover up 15% to #179.8m (Year to 30 June 2004: #156.2m)
* Gross profit margins up from 40.3% to 43.1%
* Operating profits before goodwill amortisation up 14% to #14.7m
(#12.9m)
* Operating profits in local currency terms and adjusted for
acquisitions up 7%
* Profits before tax, goodwill amortisation and exceptional item, up 15%
to #15.2m (#13.3m)
* Adjusted earnings per share up 13% to 50.8p (45.0p)
* Operating activities generated positive cash flow of #18.7m (#18.6m)
* Proposed final dividend of 4.26p, making total dividend for the year
of 6.39p - an increase of 15% (2004 total dividend: 5.55p)
* Net funds of #16.2m (#20.9m at 30 June 2004), after spending #20.5m on
acquisitions
Results of IC Division, representing 91% of Group operating profits
* Turnover up 18% to #140.7m (#119.5m), organic growth of 10% in local
currency terms
* IC own products and services account for 61% (57%) of IC sales, up 11%
and 21% respectively in local currency terms and adjusted for
acquisitions
* Gross profit margins increased to 51.5% (48.3%)
* Operating profits up 13% to #13.4m (#11.8m); margins recorded at 9.5%
compared to 9.9%
* Operating profits in local currency terms and adjusted for
acquisitions up 6%
Operating Highlights
* Two substantial Financial Services contract wins signed in the final
quarter
* Global market leading position in turnover, licenses and installations
(81,000+ Ascent software licenses shipped, 70,000+ installations for
VRS)
* Signed multinational Invoice Capture Deal with The Carrefour Group
(largest-ever geographic deployment in more than 20 countries)
* DICOM named Overall Global Market Share Leader for Document Capture
Software by Harvey Spencer Associates
* 4 for 1 share split proposed to improve liquidity, subject to
shareholder approval
* Delisting from Frankfurt Stock Exchange
Commenting, Arnold von Buren, Chief Executive Officer of DICOM Group said:
"We are pleased to say we have again continued to grow and our core own product
lines and services did well. One of the highlights of last year was the
completion of two strategic acquisitions, which broaden our product portfolio.
As a result of these acquisitions a new market opportunity has emerged focused
specifically on Business Process Automation.
Existing product lines have been updated and significant features and
functionality have been added. A successful launch of INDICIUS 5.0 integrates
technologies from Neurascript and Mohomine, and within a few months INDICIUS 5.0
was responsible for significant project wins for DICOM Group."
Regarding Prospects, Otto Schmid, Chairman of DICOM Group said:
"DICOM Group is well positioned as the global industry leader in the Information
Capture market. The balance sheet is strong and the Group continues to be highly
cash generative.
Our continuing investment in technology, our well-known and industry leading
products, our customer base and our channel relationships are key to the further
enhancement of our market leading position in Information Capture. Good growth
prospects enable us to view the Group's outlook with optimism."
For further information, please contact:
DICOM Group plc Financial Dynamics
Stefan Gaiser Finance Director James Melville-Ross
Dr. Bettina Moschner IR Manager Juliet Clarke
Tel: +44 (0) 800 6520 616 Tel: +44 (0) 20 7831 3113
e-mail: stefan_gaiser@dicomgroup.com
bettina_moschner@dicomgroup.com
About DICOM Group plc
DICOM Group plc ("DICOM Group", London Stock Exchange: DCM) is the global leader
in Information Capture. Its leading edge capture and communication technologies
and solutions enable Business Process Automation by managing the transformation
and exchange of business-critical information (residing in various formats such
as paper, fax, electronic documents, e-mail, SMS) among people, applications and
devices. The company's centres for product development and marketing include
Kofax, the world's leading provider of Information Capture solutions, and
Topcall, a worldwide provider of Unified Communication technology. Through a
global network of more than 1,200 authorised partners and its own sales and
service organisations in Europe, the USA, Asia and Australia, DICOM Group help
blue-chip enterprises in more than 60 countries to reduce cost, increase
efficiency and minimise risk in their critical business processes. For more
information, visit http://www.dicomgroup.com
The Group's Samsung General Agency (SGA) Division focuses on multimedia
visualisation products for the IT, POI and Entertainment market in Switzerland.
It operates as sole agency of Samsung's high performance flat screen display.
Chairman's Statement
Results
I am very pleased to announce another year of record results.
Group turnover for the year to 30 June 2005 was up 15% to #179.8m (#156.2m).
Turnover in local currency terms and adjusted for acquisitions grew by 9%.
Operating profit amounted to #9.9m (#9.7m), an increase of 3%. Operating profit
before goodwill amortisation increased by 14% to #14.7m (#12.9m) and by 7% in
local currency terms, adjusted for acquisitions. Profit before tax was #10.5m
(#7.8m), up 35%. Profit before tax, adjusted for goodwill amortisation and an
exceptional item in the prior year, is reported at #15.2m, up 15%.
After tax and minority interests basic earnings per share (EPS) is calculated at
28.2p (18.7p). Adjusted EPS, earnings adjusted for goodwill amortisation and an
exceptional item in the prior year, rose 13% to 50.8p (45.0p).
As reported during the year the weakness in the US dollar (on average 7% lower
than in the previous financial year) has adversely affected the reported
sterling results of our US operations where over half of the Group's operating
profits are generated.
Financial Position
Due to its cash generative business model, the Group's operating cash flow
amounted to #18.7m (#18.6m), representing a 128% conversion of operating profit
into operating cash flow. The Group ended the period with net funds #16.2m, down
from #20.9m at 30 June 2004 after spending #20.5m on acquisitions in the year.
Operating Review
Today, DICOM Group is the global leader in the Information Capture market and
with its growing technology portfolio and global reach, DICOM Group is on the
way to becoming the pre-eminent provider of Information Capture and
Communications solutions that enable organisations to automate business
processes and streamline transactions.
The Information Capture ("IC") Division, our largest division representing 91%
(92%) of profits and 78% (77%) of turnover, continued to benefit from its
position as the leading global partner for IC products and services with a
significant level of new contract wins. The IC Division develops and markets
application software and hardware, provides a comprehensive range of services
and sells key related products to over 1,200 system integrators, software
developers and resellers in more than 60 countries world-wide. Information
Capture and Communications solutions enable organisations to automate business
processes and streamline transactions, hence to reduce costs, increase
operational efficiencies, and minimise business risk.
The IC Division continued its growth record and expanded its market position.
During the financial year the acquisitions of Neurascript and Topcall expanded
the product portfolio significantly, allowing the Group to address new market
opportunities. Neurascript adds expertise in enterprise solution development and
unstructured data. Topcall expands the ability to support Business Process
Automation ("BPA") solutions and opens up a new market. We also released further
upgrades of major products as a result of our continuing investment in
technology. Furthermore various awards mark the successful development of the
Group. Our product development centre Kofax has been named Global Alliance
Technology Partner of the Year by Open Text. For the second consecutive year
Kofax has been ranked by KMWorld in its annual "100 Companies that Matter in
Knowledge Management" list. Our INDICIUS Advanced Capture Suite won the
prestigious AIIM Expo Best of Show Award for this year and we have been named
the Overall Global Share Leader for Document Capture Software by Harvey Spencer
Associates. I am pleased to report that this financial year also saw the Group
sign our geographically largest-ever deployment of Ascent - across multiple
sites in Europe, Asia and South America with Carrefour.
The IC Division recorded turnover growth of 18% during the financial year ending
30 June 2005. Organic turnover growth amounted to 10% in local currency terms.
The provision of services and sales of products developed by the Group accounted
for 61% of IC turnover (57% in the comparable period). Own product sales grew by
11% in local currency terms adjusted for acquisitions, and accounted for 32% of
IC sales. Service income was up by 21% in local currency terms adjusted for
acquisitions, and contributed 29% to IC sales. The sale of complementary third
party products, primarily high-speed document scanners, accounted for 39% of
sales, up 2% in local currency terms. Operating profit before goodwill
amortisation increased to #13.4m, up 13% (up 6% in local currency terms).
The Samsung General Agency ("SGA") Division, the representative of Samsung
electronics in Switzerland, continued to trade in line with expectations. It
contributed 9% to Group operating profits and 22% to Group turnover. As reported
in previous quarters, the SGA Division continues to face tough trading
conditions.
Board and Management Changes
On 16 December 2004 we announced the appointment of two Non-Executive Directors,
Chris Conway, aged 60, and Mark Wells, aged 49, with immediate effect.
Chris Conway, an Irish citizen, is Non-Executive Chairman of Detica Group plc, a
UK IT Consultancy and Services company focusing on building Information
Intelligence systems for UK Government, Security and large Commercial clients, a
position he has held since April 2001. He was a board member of IBM UK and
Chairman and Chief Executive of Digital Equipment Co Ltd.
Mark Wells, a British citizen, was Chairman and CEO of Image Metrics Plc, an
image analysis software company. Previously he was Chief Operating Officer for
Brainpower NV, a supplier of advanced financial analytical software and Managing
Director UK and Vice president of Continental Europe for Dun and Bradstreet
Software. We welcome Chris and Mark to the board.
At the same time we announced the retirement from the Board of one Non-Executive
director, Paul Gerny, aged 63. Paul has been a Non-Executive Director for the
past nine years. He joined the Company's Board on 15 December 1995. I would like
to thank Paul for his substantial contribution during the past years.
On 12 April 2005 we announced the appointment of Stefan Gaiser as Group Finance
Director with immediate effect. Stefan Gaiser (aged 31), a German citizen,
joined DICOM Group in October 2000 as Associate Chief Financial Officer,
strengthening the DICOM Group Finance team. Before joining DICOM Group he worked
as a tax consultant for a German accountancy firm. He was appointed to the main
board on 8 April 2005. We welcome Stefan to the Board.
Acquisitions
On 25 October the Group announced the acquisition of Neurascript Limited, a
leading worldwide provider of high-end Information Capture tools. Neurascript
was purchased for a total cash consideration of #4.1m, compromised of #2.4m paid
on completion, #0.6m payable on the first anniversary and a further contingent
variable deferred consideration, now estimated to be up to #1.1m, depending on
the achievement of certain targets.
The Offer for TOPCALL International AG ("Topcall"), a worldwide provider of
mission-critical Unified Communication solutions, has been successful and the
required 75% acceptance condition for the voluntary public bid has been
exceeded. Following the successful buy-out of the remaining minorities DICOM
Group owns 100% of Topcall today. Topcall has been fully consolidated in the
DICOM Group results from 1 December 2004. The total gross cash consideration
amounts to #32.1m, excluding #11.4m cash acquired in Topcall's balance sheet on
completion.
The results of Neurascript and Topcall form part of the IC Division.
Reorganisation
On 20 July we introduced a new global corporate structure, following the recent
acquisitions of Neurascript and Topcall. The reorganisation has been undertaken
to increase operational efficiencies between business groups, such as product
management, engineering, sales and marketing. The introduction of the new
corporate structure also provided the Group with the opportunity to
strategically review each of its operating activities. Following the review the
Group has decided to reorganise its underperforming Capture Services activities.
Delisting
On 31 August we announced our intention to file an application for revocation of
the admission of our shares held in the form of depository receipts on the
General Standard of the Frankfurt Stock Exchange. This is anticipated to take
place with effect from the end of the calendar year dependent upon approval by
the Frankfurt Stock Exchange.
We have made this decision on the basis that for some time there has not been a
significant institutional shareholder base in Germany, and a delisting will
allow the management to focus more of its IR activities on the UK market. In
addition, the delisting will provide some cost savings, though these are not
anticipated to be material.
After the effective date of the delisting it will no longer be possible to trade
DICOM Group depository receipts on the Frankfurt Stock Exchange. However,
ordinary shares will continue to be listed on the Official List of the London
Stock Exchange (ticker symbol: DCM).
Share Split
The Board has also been considering how best to improve the market liquidity of
the Group's shares. Following the rise in the share price in the last year, the
Board considers a share split to be in the best interests of shareholders and we
are therefore planning to implement a 4 for 1 sub-division of the Group's issued
and authorised share capital, subject to gaining shareholder approval at the
Annual General Meeting.
Staff
Staff numbers grew from 849 to 1194 during the year, principally due to the
acquisitions of Neurascript and Topcall. Our future prosperity is in large
measure dependent on the ability, energy and loyalty of our employees, whose
specialist knowledge, training and experience is key to the successful provision
and deployment of our value-added products and services. Staff turnover has
remained at low levels and we continue to attract and retain high calibre people
around the world.
On behalf of the Board, I would like to thank our employees for their
commitment. As ever, they will remain the driving force behind the Group's
dynamic development in the future.
DICOM Group's growth over the last 14 years has resulted in it becoming the
global leader in the Information Capture market in terms of turnover,
profitability and geographic coverage. We have to further develop the managerial
capacity of DICOM Group to prepare the next stage of development and growth.
During the year we developed and started courses for management training and
education at DICOM Group.
All Senior Executives and other management members are invited to the DICOM
Academy Leadership and Management Programme, which focuses on three key aspects
of leading and managing a company successfully. Leadership, Value and Ethics;
Strategic Marketing and Sales Management; Financial, Operational and HR
Management. The first three day session started in January 2005 with very
encouraging feedback.
Dividend
The Board is pleased to recommend a final dividend of 4.26p per ordinary share,
making a total dividend of 6.39p (5.55p) per ordinary share for the year. This
represents an increase of 15% over the previous year. The dividend will be paid
on 2 December 2005 to shareholders on the register on 4 November 2005.
Prospects
DICOM Group is well positioned as the global industry leader in the Information
Capture market. The balance sheet is strong and the Group continues to be highly
cash generative.
Our continuing investment in technology, our well-known and industry leading
products, our customer base and our channel relationships are key to the further
enhancement of our market leading position in Information Capture. Good growth
prospects enable us to view the Group's outlook with optimism.
Otto Schmid, Chairman, 31 August 2005
Chief Executive's Review
Looking back
The economic and political climate of the reporting year can be called average.
There were neither big surprises to the up- nor to the downside. We have
definitively left behind the difficult situation in the IT markets following the
bursting of the tech bubble in 2001. However we certainly did not experience any
exuberant purchasing behaviour by our clients. Quite to the contrary we find
that capital expenditure in Information Technology is still more scrutinised
than in the late nineties. Yet I am pleased to say we have again continued to
grow and our core product lines and services did well.
Last year we completed two strategic acquisitions. After the purchase of
Mohomine in 2003, which gave us access to classification technology, we acquired
Neurascript in Cambridge, UK, in October 2004. A few weeks later we acquired
Topcall, headquartered in Vienna, Austria. Besides a mostly UK based customer
base and a seasoned engineering team, the Neurascript acquisition has brought to
DICOM Group extensive know how in the high-volume forms capture market and
important additional text and image classification technologies. Topcall brought
to DICOM Group a broad portfolio of Unified Communications products and
technologies.
Current Products
We maintained our yearly update cycle for existing product lines and again added
significant features and functionality. Our main Information Capture product -
now on version 7.0 - has definitively reached a level of maturity to compete in
almost any capture environment, however challenging or diverse it might be. It
is one of the strengths of DICOM Group to consistently come up with new releases
to its existing product lines, a result of our continuing investment into
product development. Our partners have grown accustomed to these regular updates
and appreciate their reliability.
Strong growth was encountered again from our solutions to capture '
semi-structured' documents (e.g. invoices). We call invoice documents '
semi-structured' although the expected information is known, its location on the
documents needs to be searched for. We expect healthy growth in the '
semi-structured' area to continue for the next few years.
New Product Launches
Within months of Neurascript joining DICOM Group we were able to launch INDICIUS
5.0 integrating technologies from Neurascript and Mohomine. Neurascript software
tools automate the recognition, extraction, and indexing of information from
business documents and forms. Mohomine technology speeds automated data capture,
routing, and categorisation for unstructured documents. By integrating these
technologies with advanced patent-pending algorithms for automatic document
separation ("ADS"), INDICIUS 5.0 became the most sophisticated set of software
tools for advanced information capture. ADS eliminates the labour required to
insert separator sheets between different documents in a batch and reduces the
substantial cost in consumables associated with printing separator sheets, such
as paper, ink and toner. In the few months between launch and year-end INDICIUS
5.0 was already responsible for some significant project wins for DICOM Group.
Market Trends
More and more, customers are looking to reduce costs by streamlining processes
and increasing efficiencies throughout their organisation. As a result, a
significant new market opportunity has emerged focused specifically on Business
Process Automation. The BPA market is a new emerging growth sector and is
reported by IDC as one of the fastest growing software and services segments of
IT.
A year ago I wrote about the fact that we are seeing our solutions being used
more and more to enable Business Process Automation. Documents entering an
organisation often trigger very specific business processes. In the past
documents were often kept in their original form, separate from the business
process. Only after the process ended the documents were brought to a central
location for archival scanning. Today, organisations want to capture the
documents immediately upon entering the organisation, extract the necessary
information at once to start the respective business process and then have the
documents accessible - in electronic form - during the entire life of the
business process.
The capturing environment therefore has changed significantly in a couple of
ways:
* Capture of documents and content has become much more distributed,
almost down to the desktop
* Media formats of documents have also changed. It used to be almost
exclusively paper documents, but today's documents come in many form
and shapes (e-mail, attachments, pdf files, faxes, SMS, voice mail,
etc.)
* Exception handling during the business process and confirmation of
successful completion are requirements which ask for very specific
communication capabilities
Realising these market changes DICOM Group has reworked its customer value
proposition:
We enable the automation of business processes and streamline the exchange of
business-critical documents and information among people, applications and
devices.
We provide the most cost-effective solutions in our industry by delivering the
highest real-world ROI, the most complete, best integrated and easiest to use
set of technologies, and by combining our technical expertise with the industry
knowledge of our worldwide partners to reduce costs, increase operational
efficiencies, and minimise risk for our customers.
Topcall Acquisition
The Topcall acquisition has to be seen entirely in the light of the above
mentioned customer value proposition. Topcall adds a profound familiarity with
different content formats (fax, pdf, SMS, voice, e-mail, etc.) to the Group.
This enables us to integrate the collection of new content formats into our
solutions. By combining the communication technologies of Topcall with our
existing Information Capture technologies we will provide integrated solutions
to enable Business Process Automation.
It will take some time to combine the product platforms of both Topcall and
DICOM Group. But planning and know how exchange is well under way to achieve
this goal as quickly as possible. In the meantime I am happy to report that
Topcall has successfully integrated our transformation technology into one of
its offerings and is already selling a specific solution to greatly automate the
information capture of fax purchase orders.
Product Development
Selling its products on a global scale and getting a significant portion of its
turnover from government institutions it is important for DICOM Group to
demonstrate that its product carry 'local content'. It has been an important
personal goal for me during the last four years to create a distributed product
development environment that allows us to claim 'local content' on each
continent.
Over the last two years DICOM Group has significantly expanded and diversified
its development resources. Our largest engineering force is still located in
California, US, but we have also built up significant engineering capacity in
Hanoi, Vietnam. By acquisitions we lately gained additional engineering teams in
Vienna, Austria, and in Cambridge, UK.
These engineering teams work within DICOM Group's global development framework,
each with a specific technology or product focus based on training, talent and
experience.
Product development roadmaps remain highly focused with research and development
expenditure at a high #9.9m (2004: #7.9m, 2003: #7.3m), up 12% in local currency
terms, consistent with the company's objective to invest up to 20% of turnover
in its own products into development. We anticipate a number of product
innovations for existing products and the launch of entirely new products and
services in the new financial year.
Looking ahead
I am truly convinced that market needs and our new and developing capabilities
are converging, leaving us facing the future with confidence and optimism. We
will continue to expand our leadership position in the traditional Information
Capture market. In addition we will develop new solutions to enable Business
Process Automation. We have already acquired or are developing all the
technology necessary to support our growth. We are maintaining a healthy rate of
product innovation and have an experienced sales and marketing organisation.
Going forward, it is my intention to lead the DICOM Group team to become an even
higher quality business than it is today by further increasing turnover, whilst
at the same time improving margins and expanding the proportion of recurrent
revenue. We have a healthy number of very seasoned and experienced managers in
DICOM Group. With their help and with the help of everybody in the team we will
continue to be successful for the benefit of all DICOM Group stakeholders.
Thanks
DICOM Group's growth, its financial success and its excellent reputation with
partners and customers alike are directly related to the daily efforts of our
hard-working staff. I would like to express my deep gratitude to everybody at
DICOM Group for their contribution to our achievements.
And lastly, I would like to thank you, as a share- or stakeholder in DICOM
Group, for your continued support.
Arnold von Buren, Chief Executive Officer, 31 August 2005
DICOM Group plc
Announcement of Preliminary Unaudited Results
Consolidated Profit and Loss Account (UK GAAP)
Year Year
to to
30 June 30 June
2005 2004
(as restated)
Note Existing Acquisitions #'000 #'000
Turnover 6 167,692 12,103 179,795 156,197
Cost of sales (99,593) (2,725) (102,318) (93,291)
Gross profit 68,099 9,378 77,477 62,906
Operating expenses (59,289) (8,240) (67,529) (53,205)
Operating profit before goodwill
amortisation 6 12,787 1,885 14,672 12,922
Goodwill amortisation (3,977) (747) (4,724) (3,221)
Operating profit 8,810 1,138 9,948 9,701
Share of results of associated
undertakings 117 91
Loss on disposal of fixed asset
investment - (2,218)
Net interest receivable 414 183
Profit on ordinary activities before
taxation 10,479 7,757
Taxation (4,304) (3,885)
Profit on ordinary activities after
taxation 6,175 3,872
Minority interests (215) 24
Profit attributable to ordinary
shareholders 5,960 3,896
Dividends - equity 3 (1,368) (1,164)
Retained profit 4,592 2,732
Earnings per ordinary share 4
- basic 28.2p 18.7p
- adjusted 50.8p 45.0p
- diluted 27.3p 18.2p
Dividend per ordinary share 6.39p 5.55p
Statement of total recognised gains
and losses
Profit for financial year 5,960 3,896
Actuarial gains and losses (245) 163
Gain/(loss) on currency translation 809 (1,916)
Total recognised gains and losses
relating to the year 6,524 2,143
Prior year adjustment - adoption of
FRS 17 (359)
Total recognised gains and losses
since the last financial statements 6,165
DICOM Group plc
Announcement of Preliminary Unaudited Results
Consolidated Balance Sheet (UK GAAP)
At At
30 June 30 June
2005 2004
(as restated)
Note #'000 #'000
Fixed assets
Intangible assets 62,719 41,432
Tangible assets 6,717 5,135
Investments 703 398
70,139 46,965
Current assets
Stocks 11,558 10,864
Debtors 41,766 33,791
Investments 147 126
Cash at bank and in hand 20,669 23,273
74,140 68,054
Creditors:
Amounts falling due within one year (55,694) (38,615)
Net current assets 18,446 29,439
Total assets less current liabilities 88,585 76,404
Creditors:
Amounts falling due after more than one year (8,425) (4,628)
Provisions for pension fund deficit (576) (359)
Provisions for deferred taxation (1,739) (631)
Net assets 77,845 70,786
Capital and reserves
Called up share capital 2,154 2,112
Share premium account 54,567 52,730
Merger reserve 1,717 1,717
ESOP shares (516) (503)
Profit and loss account 19,944 14,788
Shareholders' funds - Equity 5 77,866 70,844
Minority interests - Equity (21) (58)
77,845 70,786
DICOM Group plc
Announcement of Preliminary Unaudited Results
Consolidated Cash Flow Statement (UK GAAP)
Year Year
to to
30 June 30 June
2005 2004
Note #'000 #'000
Cash inflow from operating activities 7 18,727 18,643
Returns on investments and servicing of finance 307 156
Taxation paid (2,120) (3,705)
Capital expenditure and financial investment (1,710) 2,649
Acquisitions and disposals (20,515) 1,824
Equity dividends paid (1,226) (1,061)
Cash (outflow)/inflow before use of liquid resources and (6,537) 18,506
financing
Management of liquid resources 8,346 (13,001)
Financing
Issue of Ordinary Shares 1,879 886
Increase/(decrease) in debt 1,428 (2,566)
3,307 (1,680)
Increase in cash in the period 5,116 3,825
Reconciliation of net cash flow to movement in net funds
Increase in cash in the year 5,116 3,825
Cash (inflow)/outflow from (increase)/decrease in debt (1,428) 2,566
and lease financing
Cash (inflow)/outflow from (decrease)/increase in liquid (8,346) 13,001
resources
Change in net funds resulting from cash flows (4,658) 19,392
Loans and finance leases acquired with subsidiaries - (83)
New finance leases (191) (401)
Exchange difference 181 (149)
Movements in net funds in the period (4,668) 18,759
Net funds at start of period 20,894 2,135
Net funds at end of period 16,226 20,894
DICOM Group plc
Announcement of Preliminary Unaudited Results
Notes (UK GAAP)
1 Basis of preparation
The Announcement of Preliminary Unaudited Results has been prepared under the
historical cost convention and in accordance with United Kingdom Accounting
Standards. During the year the Group adopted Financial Reporting Standard 17, "
Retirement Benefits". This represents a change in accounting policy for various
defined benefit schemes within the Group. The impact of this change in
accounting policy is detailed in note 2.
The financial information contained in the Announcement of Preliminary Results
is unaudited and does not constitute statutory accounts as defined in Section
240 of the Companies Act 1985. DICOM Group has not delivered any statutory
accounts to the Registrar of Companies for the year ended 30 June 2005. The
comparative figures for the year to 30 June 2004 before restatement for the
prior year adjustment are extracted from the audited accounts for that period
which have been filed with the Registrar of Companies.
The auditors have reported on the 2004 accounts; their report was unqualified
and did not contain a statement under Section 237(2) or (3) of the Companies Act
1985.
2 Prior year adjustment
Due to the adoption of FRS 17 the Group is required to record a pension fund
deficit amounting to #576,000 as at 30 June 2005 (#359,000 as at 30 June 2004).
There is no material impact on profitability. The local pension scheme to which
this deficit relates is fully funded as at 30 June 2005 and the deficit is only
arising due to actuarial methods used to value the scheme under FRS 17.
3 Dividend
The proposed final dividend per ordinary share of 4.26p (3.7p) is payable on 2
December 2005 to shareholders on the register at the close of business on 4
November 2005.
4 Earnings per share
Basic earnings per share of 28.2p (18.7 p) for the year to 30 June 2005 have
been calculated based on the profit attributable to shareholders of #5,960,000
(#3,896,000) using the weighted average number of ordinary shares in issue
totalling 21,111,015 (20,857,817) during the period.
Adjusted earnings per share of 50.8p (45.0p) for the year to 30 June 2005 are
based on profit of #10,726,000 (#9,396,000), being adjusted by the amortisation
of goodwill in subsidiaries of #4,724,000 (#3,221,000) and the amortisation of
goodwill in associates of #42,000 (#61,000) using the weighted average number of
ordinary shares in issue totalling 21,111,015 (20,857,817) during the period.
Diluted Earnings per share of 27.3p (18.2p) for the year to 30 June 2005 is
based on 21,844,909 ordinary shares (21,457,560), the difference to the basic
calculation representing the additional shares that would be issued on the
conversion of all the dilutive potential Ordinary Shares.
Share options with an exercise price below the average share price during the
year ended 30 June 2005 are considered as dilutive potential Ordinary Shares.
5 Reconciliation of movements in shareholders' funds
Year to Year to
30 June 2005 30 June 2004
#'000 #'000
Opening shareholders' funds 71,203 70,004
Prior year adjustment (359) (522)
Reclassification of ESOP shares - (502)
Shareholders' funds as restated 70,844 68,980
Retained profit for the period 4,592 2,732
Gain/(loss) on currency translation 809 (1,916)
Actuarial gains and losses (245) 163
New share capital issued 1,879 886
Change in ESOP shares (13) (1)
Closing shareholders' funds 77,866 70,844
6 Segmental Reporting
Year to Year to
30 June 2005 30 June 2004
#'000 #'000
Sales by divisions
IC
Own products 45,553 39,722
Services 40,026 27,819
3rd party products 55,129 51,991
Total IC 140,708 119,532
SGA 39,087 36,665
Group 179,795 156,197
Gross profit by divisions
IC 72,400 57,703
SGA 5,077 5,203
Group 77,477 62,906
Operating profit before goodwill amortisation by divisions
IC 13,371 11,844
SGA 1,301 1,078
Group 14,672 12,922
7 Reconciliation of operating profit to operating cash flows
Year to Year to
30 June 2005 30 June 2004
#'000 #'000
Operating profit 9,948 9,701
Depreciation 2,527 2,727
Amortisation 4,724 3,221
Profit/(loss) on sale of tangible fixed assets (110) 7
Decrease in stock 340 285
Increase in debtors (2,679) (1,684)
Increase in creditors 3,916 4,702
Foreign exchange differences 61 (316)
Net cash inflow from operating activities 18,727 18,643
This information is provided by RNS
The company news service from the London Stock Exchange
END
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