Preliminary Results
March 24 2009 - 2:00AM
UK Regulatory
TIDMATL
RNS Number : 3383P
Atlantic Global PLC
24 March 2009
?
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| Press Release | 24 March 2009 |
+------------------------------------+--------------------------------------+
Atlantic Global Plc
("Atlantic Global" or "the Group")
Preliminary Results
Atlantic Global Plc (AIM: ATL), the specialist provider of integrated business
and resource management software applications, today announces its Preliminary
Results for the year ended 31 December 2008.
Financial and Operational Summary
+----+---------------------------------------------------------------------------+
| - | Turnover at GBP2.176m (2007: GBP2.303m) |
+----+---------------------------------------------------------------------------+
| - | Profit before tax increased by 40% to GBP401,000 (2007: GBP286,000) |
+----+---------------------------------------------------------------------------+
| - | Delivered fifth consecutive profitable half year during the second half |
| | of 2008 |
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| - | Strong financial position, with net cash balance of GBP2,159,000 as at 31 |
| | December 2008 |
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| - | Earnings per share increased by 37.3% to 1.40p (2007: 1.02p) |
+----+---------------------------------------------------------------------------+
| - | Proposed dividend of 0.4p (2007: 0.3p), maintaining the Group's |
| | progressive dividend policy |
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| - | Ranked by Gartner as one of the world's leading 25 suppliers of Project |
| | Portfolio Management software |
+----+---------------------------------------------------------------------------+
Prospects for 2009
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| - | Continue to build on the progress made during 2008 |
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| - | Launch a partnership campaign to spread the breadth of business |
| | engagement |
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| - | Deliver the Group's diversified business model by selling Hosted and SaaS |
| | solutions: |
| | o simplifying and speeding up the sales engagement process |
| | o enabling penetration of markets outside the UK |
+----+---------------------------------------------------------------------------+
Adrian Bradshaw, Chairman of Atlantic Global commented:
"I am pleased to report a further significant increase in profitability for
2008. Trading is in line with our expectations, with sales of the new OnDemand
product starting the year strongly. The recent additions to our product range
and delivery capability enables the Group to enjoy continued success and we are
well placed to achieve another year of continued profits growth during 2009."
- Ends -
For further information please contact:
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| Atlantic Global Plc | |
+------------------------------------------+-------------------------------------+
| Eugene Blaine, Managing Director | Tel: +44 (0) 01274 863 300 |
| eugene.blaine@atlantic-global.com | |
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| Rupert Hutton, Finance Director | Tel: +44 (0) 01274 863 300 |
| rupert.hutton@atlantic-global.com | www.atlantic-global.com |
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Broker enquiries:
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| Daniel Stewart & Company Plc | |
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| Lindsay Mair / Simon Starr | Tel: +44 (0) 20 7776 6550 |
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| | www.danielstewart.co.uk |
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Media enquiries:
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| Abchurch | |
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| Sarah Hollins / Nick Probert | Tel: +44 (0) 20 7398 7715 |
+------------------------------------------+-------------------------------------+
| nick.probert@abchurch-group.com | www.abchurch-group.com |
+------------------------------------------+-------------------------------------+
Chairman's Statement
Introduction
This is my second report to shareholders following my appointment as
Non-Executive Chairman in September 2007 and I am pleased to report a further
significant increase in profitability for 2008.
Results
The Group produced profit before taxation of GBP401,000 for the twelve months
ended 31 December 2008 (2007: GBP286,000). The turnover of the Group for 2008
was GBP2,176,000, (2007: GBP2,303,000).
Earnings per share were 1.40 pence (2007: 1.02 pence).
Atlantic Global continued to invest in and develop its Products during 2008.
Despite this the Group continued to generate cash and had net cash balances, at
the end of December 2008, of GBP2,159,000 compared with GBP1,546,000 the year
before.
New Clients
During the year, we have gained new Project Portfolio Management (PPM) software
customers, including Netstore, GlaxoSmithKline Biologicals (Belgium), GETECH
Group plc, Andrew Winch Designs, Alliance Boots Healthcare Admiral Insurance and
4D. We have also upgraded a significant part of the Norwich Union (Aviva)
implementation to an "all module" licence, ensuring further penetration into the
Aviva Group.
The Group has experienced successful relationships with existing customers, as
evidenced by new sales being made to Xchanging, Stepstone, The British Library,
Pfizer, Bank of Tokyo and Harvey Nash.
Recurring Income
A strong feature of Atlantic Global is the level of recurring support and
maintenance income which in 2008 was around GBP766,000 (2007: GBP730,000). This
provides a solid base for the Group and means any new licence sales contribute
significantly to profitability so the business has high operational gearing.
Operating Review
Our stated goal for 2008 was to increase the profitability of the Group and also
to launch the new OnDemand service. OnDemand is a cost effective, easy-to-use
business management software solution designed to manage a business' employees,
projects and customer relationship processes through a single fully web enabled
solution.
I am pleased to confirm that we have achieved these objectives with the
continued increase in profitability and the on schedule launch of the first two
of our OnDemand modules in October 2008.
The third module was launched at the end of January 2009 and the Enterprise
module is scheduled for release in April 2009. This new OnDemand service
represents a significant investment for the Group which has been ongoing since
March 2006. It provides Atlantic Global and its customers with many benefits: -
Wider Geographic Coverage
The OnDemand product has complete Multi-Currency and Multi-Lingual capability
with English (UK), English (US) and French provided as standard. Additional
languages are available on request.
Deployment
The OnDemand product provides a flexible range of deployment options ranging
from:
a) On-Premise - which is similar to a traditional client installation
b) Hosted - where we install the product on Atlantic Global's infrastructure
but in a dedicated customer
environment or
c) OnDemand - which is where all customers share the same Atlantic Global
infrastructure.
Product Improvements
The OnDemand Service reflects Atlantic Global's 16 years of experience working
with large organisations in this field. In addition, the new product is
specifically designed for the OnDemand market which required us to place a
greater emphasis on Security and Scalability which is why the Group has engaged
with organisations that specialise in these areas to ensure that we are adopting
the latest methods and techniques.
Reduced Product Purchase Governance
Providing the Software as a Service by-passes much of the governance introduced
by larger organisations in relation to the standardisation of software product
purchases. Finally, a Service means that the adoption of the solution does not
require CAPEX budget approval.
Streamlined License Model
The Group has streamlined the licence modules to target well defined markets
that include:-
a) Time & Expense Planning,
b) Project & Resource Planning,
c) Client Relationship Management
d) Enterprise Business Planning
Customers can now purchase a central pool of licence units that can be deployed
across any of the four modules. Each user will use a licence unit for each
module that they wish to access.
Hosting Partners
We have signed a partnership contract with OpSource (www.opsource.net) to
provide our OnDemand infrastructure. OpSource will also provide a 24 / 7
helpdesk service and integration capability (www.Boomi.com).
Sales and Marketing
The Group has launched a new website (www.atlantic-global.com). The new website
places a greater emphasis on selling the OnDemand modules supported by online
videos and a free 30-day trial.
We continually analyse the traffic on the Web and monitor the keywords that
prospective customers use to search for our software. We believe the current
adverse economic conditions will see organisations placing a greater emphasis on
management information, especially in the field of resource productivity and
portfolio delivery.
Partnerships
The new OnDemand product will make it easier for other organisations to partner
with Atlantic Global. It removes the need for them to learn how to install the
product and it makes it easier for Atlantic Global to remotely support the
implementation irrespective of where they are located in the world.
Atlantic Global believes that the current economic climate lends itself to a
partnership engagement model. We are targeting potential partners who have an
established customer base, existing relationships within those organisations and
where they see an opportunity to promote Atlantic Global's products as a means
of delivering added value to their customers. This would in turn drive
additional revenue to the partner. We are pleased to report that we are
currently actively exploring several partner opportunities.
Strategy for the Future and Acquisitions
The Board is continuing to seek acquisitions and to investigate complementary
channels which will significantly increase the size of the Atlantic Global
footprint within the software market.
Repurchase of Company Shares
For a number of years Atlantic Global has maintained relatively high cash levels
reflecting the cash generative nature of the business. The return on this
surplus cash is increasingly modest and the Directors believe that this cash
could be better used by continuing to repurchase some of the Group's shares for
cancellation. The Directors believe this will enhance shareholder value and
accordingly we will seek re-approval at the forthcoming Annual General Meeting
from shareholders to repurchase up to 10% of the company's outstanding share
capital from time to time. During 2008, the company repurchased 115,000 shares
at a cost of just over GBP20,000. Since Atlantic Global's year end the Group
has managed to purchase a further 35,000 shares at a cost of GBP6,200.
Current Trading
From our management accounts for the first two months of the calendar year, I
can confirm that trading is in line with our expectations, continuing the strong
finish to 2008, with sales of the new OnDemand product starting the year
strongly. We believe that recent additions to our product range and delivery
capability will enable the Group to enjoy continued success in 2009.
I am pleased to report that seven new customers have signed up to use the
OnDemand service during this period ranging in size from a small eleven user
implementation to a much larger 490 user implementation. This demonstrates the
broad appeal of the product and its relevance to varying sizes of organisation.
We have already secured 60% of the Group's budgeted 2009 maintenance contracts
and the current order book for services represents 30% of the budgeted service
revenue for 2009.
I believe that the Group is well placed to achieve another year of continued
profits growth during 2009.
Annual General Meeting
We shall be holding our AGM on 5 May 2009 at our Head Office at Woodland Park,
Bradford Road, Chain Bar, Cleckheaton, West Yorkshire, BD19 6BW.
Following the formalities of the meeting we will, as in previous years, have
time in which shareholders can meet the Directors and discuss the progress of
the Group. I would extend the Board's invitation to all shareholders in the hope
that as many as possible attend.
Dividend
The Directors are proposing a full year dividend for the year ended 31 December
2008 of 0.4 pence per share, (2007: 0.3 pence per share). This is in addition to
the interim dividend paid of 0.25 pence per share. The total for 2008 is
therefore 0.65 pence per share for 2008 compared to 0.3 pence per share in 2007.
The Directors will maintain a progressive dividend policy.
People
Atlantic Global continues to recognise and pay tribute to the employees for
their hard work and professionalism that has enabled the Group to continue to
increase profits and to deal with the effects of the current recession. We
intend to augment our sales and marketing departments to facilitate the planned
growth of the business during 2009.
Adrian Bradshaw
Chairman
24 March 2009
Consolidated Income Statement
for the year ended 31 December 2008
+----------------------------------------------------+----------+----------+
| | 2008 | 2007 |
+----------------------------------------------------+----------+----------+
| | GBP000 | GBP000 |
+----------------------------------------------------+----------+----------+
| | | |
+----------------------------------------------------+----------+----------+
| Continuing Operations | | |
+----------------------------------------------------+----------+----------+
| Revenue | 2,176 | 2,303 |
+----------------------------------------------------+----------+----------+
| Cost of sales | (1,186) | (1,439) |
+----------------------------------------------------+----------+----------+
| | | |
+----------------------------------------------------+----------+----------+
| Gross profit | 990 | 864 |
+----------------------------------------------------+----------+----------+
| Administrative expenses | (686) | (659) |
+----------------------------------------------------+----------+----------+
| | | |
+----------------------------------------------------+----------+----------+
| Operating profit | 304 | 205 |
+----------------------------------------------------+----------+----------+
| Financial income | 97 | 81 |
+----------------------------------------------------+----------+----------+
| | | |
+----------------------------------------------------+----------+----------+
| Profit before tax | 401 | 286 |
+----------------------------------------------------+----------+----------+
| Income tax | (81) | (53) |
+----------------------------------------------------+----------+----------+
| | | |
+----------------------------------------------------+----------+----------+
| Profit for the period | 320 | 233 |
+----------------------------------------------------+----------+----------+
| | | |
+----------------------------------------------------+----------+----------+
| Attributable to: | | |
+----------------------------------------------------+----------+----------+
| Equity shareholders of the parent | 320 | 233 |
+----------------------------------------------------+----------+----------+
| | | |
+----------------------------------------------------+----------+----------+
+----------------------------------------------------+----------+----------+
| Earnings per share - continuing and total | | |
+----------------------------------------------------+----------+----------+
| Basic and diluted earnings per share (pence) | 1.40 | 1.02 |
+----------------------------------------------------+----------+----------+
| | | |
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Consolidated Statement of Recognised Income and Expense
for the year ended 31 December 2008
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| | 2008 | 2007 |
+--------------------------------------------------+----------+----------+
| | GBP000 | GBP000 |
+--------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------+----------+----------+
| Profit for the period | 320 | 233 |
+--------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------+----------+----------+
| Total recognised income and expense for the | 320 | 233 |
| period | | |
+--------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------+----------+----------+
| Total recognised income and expense for the | | |
| period is attributable to: | | |
+--------------------------------------------------+----------+----------+
| Equity shareholders of the parent | 320 | 233 |
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| | | |
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Consolidated Balance Sheet
at 31 December 2008
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| | | |
+--------------------------------------------------+----------+----------+
| | 2008 | 2007 |
+--------------------------------------------------+----------+----------+
| | GBP000 | GBP000 |
+--------------------------------------------------+----------+----------+
| Assets | | |
+--------------------------------------------------+----------+----------+
| Non-current assets | | |
+--------------------------------------------------+----------+----------+
| Intangible assets | 2,792 | 2,792 |
+--------------------------------------------------+----------+----------+
| Property, plant and equipment | 15 | 19 |
+--------------------------------------------------+----------+----------+
| Deferred tax asset | 9 | 62 |
+--------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------+----------+----------+
| Total non-current assets | 2,816 | 2,873 |
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| | | |
+--------------------------------------------------+----------+----------+
| Current assets | | |
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| Trade and other receivables | 936 | 1,367 |
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| Income tax receivable | - | 9 |
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| Cash and cash equivalents | 2,159 | 1,546 |
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| | | |
+--------------------------------------------------+----------+----------+
| Total current assets | 3,095 | 2,922 |
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| | | |
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| Total assets | 5,911 | 5,795 |
+--------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------+----------+----------+
| Liabilities | | |
+--------------------------------------------------+----------+----------+
| Current liabilities | | |
+--------------------------------------------------+----------+----------+
| Trade and other payables | 681 | 768 |
+--------------------------------------------------+----------+----------+
| Income tax payable | 28 | - |
+--------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------+----------+----------+
| Total current liabilities | 709 | 768 |
+--------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------+----------+----------+
| Total liabilities | 709 | 768 |
+--------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------+----------+----------+
| Net assets | 5,202 | 5,027 |
+--------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------+----------+----------+
| Equity attributable to equity shareholders of | | |
| the parent | | |
+--------------------------------------------------+----------+----------+
| Share capital | 1,139 | 1,145 |
+--------------------------------------------------+----------+----------+
| Share premium | 1,578 | 1,578 |
+--------------------------------------------------+----------+----------+
| Merger reserve | 2,538 | 2,538 |
+--------------------------------------------------+----------+----------+
| Retained earnings | (59) | (234) |
+--------------------------------------------------+----------+----------+
| Capital Redemption reserve | 6 | - |
+--------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------+----------+----------+
| Total equity attributable to equity shareholders | 5,202 | 5,027 |
| of the company | | |
+--------------------------------------------------+----------+----------+
| | | |
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Consolidated Cash Flow Statement
for the year ended 31 December 2008
+--------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------+----------+----------+
| | 2008 | 2007 |
+--------------------------------------------------+----------+----------+
| | GBP000 | GBP000 |
+--------------------------------------------------+----------+----------+
| Cash flows from operating activities | | |
+--------------------------------------------------+----------+----------+
| Profit for the year | 320 | 233 |
+--------------------------------------------------+----------+----------+
| Adjustments for: | | |
+--------------------------------------------------+----------+----------+
| Equity settled share-based payment expenses | - | (43) |
+--------------------------------------------------+----------+----------+
| Financial income | (97) | (81) |
+--------------------------------------------------+----------+----------+
| Income tax | 81 | 53 |
+--------------------------------------------------+----------+----------+
| Depreciation | 14 | 21 |
+--------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------+----------+----------+
| Operating profit before changes in working | 318 | 183 |
| capital and provisions | | |
+--------------------------------------------------+----------+----------+
| Decrease/ (increase) in trade and other | 431 | (568) |
| receivables | | |
+--------------------------------------------------+----------+----------+
| (Decrease)/ increase in trade and other payables | (86) | 259 |
+--------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------+----------+----------+
| Income tax received | 8 | - |
+--------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------+----------+----------+
| Net cash from/(used in) operating activities | 671 | (126) |
+--------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------+----------+----------+
| Cash flows from investing activities | | |
+--------------------------------------------------+----------+----------+
| Interest received | 97 | 81 |
+--------------------------------------------------+----------+----------+
| Acquisition of property, plant and equipment | (10) | (9) |
+--------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------+----------+----------+
| Net cash from investing activities | 87 | 72 |
+--------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------+----------+----------+
| Cash flows from financing activities | | |
+--------------------------------------------------+----------+----------+
| Purchase of own shares | (20) | - |
+--------------------------------------------------+----------+----------+
| Dividends paid | (125) | - |
+--------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------+----------+----------+
| Net cash used in financing activities | (145) | - |
+--------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------+----------+----------+
| Net increase/(decrease) in cash and cash | 613 | (54) |
| equivalents | | |
+--------------------------------------------------+----------+----------+
| Cash and cash equivalents at the beginning of | 1,546 | 1,600 |
| the period | | |
+--------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------+----------+----------+
| Cash and cash equivalents at the end of the | 2,159 | 1,546 |
| period | | |
+--------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------+----------+----------+
Notes
relating to the consolidated financial statements
1 Publication of non-statutory financial statements
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in Section 240 of the Companies Act
1985.
The consolidated income statement, the consolidated balance sheet at 31 December
2008, the consolidated statement of recognised income and expense and the
consolidated cash flow statement and have been extracted from the Group's
financial statements upon which the auditors opinion is unqualified and does not
include any statement under section 237 of the Companies Act 1985. Those
financial statements have not yet been delivered to the Registrar.
The audited accounts will be posted to all shareholders in due course and will
be available on request by contacting the Company Secretary at the Company's
Registered Office.
2 Basis of preparation
The preliminary announcement has been prepared under the historic cost
convention and in accordance with International Financial Reporting Standards
(IFRS) as adopted by the European Union.
3 Earnings per share
Basic earnings per share
The calculation of basic earnings per share at 31 December 2008 was based on the
profit attributable to ordinary shareholders of GBP320,000 (2007: GBP233,000)
and a weighted average number of ordinary shares outstanding of 22,862,692
(2007: 22,899,350).
Diluted earnings per share
There were no potentially dilutive options in issue in 2008 or 2007 and
consequently there is no difference between basic and diluted earnings per
share.
4 Share capital
+------------------------------------------------------+------------+------------+
| | 2008 | 2007 |
+------------------------------------------------------+------------+------------+
| | GBP000 | GBP000 |
+------------------------------------------------------+------------+------------+
| Authorised | | |
+------------------------------------------------------+------------+------------+
| 75,000,000 Ordinary shares of 5p each | 3,750 | 3,750 |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Allotted, called up and fully paid | | |
+------------------------------------------------------+------------+------------+
| 22,784,350 (2007: 22,899,350) Ordinary shares of 5p | 1,139 | 1,145 |
| each | | |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
The holders of ordinary shares are entitled to receive dividends as declared
from time to time and are entitled to one vote per share at meetings of the
Company.
The movement in shares in the year relates to the purchase of 115,000 ordinary
shares of 5p by the company.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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