RNS Number:2275N
CybIT Holdings PLC
05 December 2006
Cybit Holdings Plc
Interim Results for the Six Months Ended 30 September 2006
Highlights
Cybit Holdings Plc, one of the UK's fastest growing and most innovative
telematics service providers, today announces its interim results for the six
months ended 30 September 2006.
Unaudited Unaudited Audited
6 months ended 30 6 months ended 30 Year ended
September 2006 September 2005 31 March 2006
#'000 #'000 #'000
Turnover 5,793 4,919 10,190
Operating profit 512 463 1,338
Operating profit before depreciation and 770 682 1,770
goodwill amortisation and interest (EBITDA)
Profit/(loss) before tax 12 (190) 200
Key points
* Revenues up 18%, return to first-half profitability
* BlueFinger delivering good results, opening new markets
* Funding costs reduced
* Own-book increased to 19% on vehicle telematics
* More than 1,000 clients, 25,000 assets tracked
Neil Johnson, Chairman of Cybit commented:
"This has been another solid performance for Cybit, which increased its revenues
by 18% and returned to profitability in the first half. The integration of
BlueFinger has already delivered benefits, strengthening our core vehicle
telematics business and bringing high-level contacts in new markets."
5 December 2006
For further information please contact:
Cybit Holdings Plc 01480 389100
Richard Horsman Chief Executive,
College Hill 0207 457 2020
Carl Franklin / Mark Garraway
Chairman's statement
I am pleased to report another good performance for Cybit, which increased
revenues by nearly 18% and returned to profitability in the first half. Funding
costs are down and our cash balances remain healthy at #2m. Around 19% of
vehicle telematics revenue is now on our own book as a percentage of total deals
financed and this investment has increased from 14% to 19% on a like-for-like
basis.
The integration of BlueFinger, acquired in June for #1.6m, has strengthened our
core business and taken Cybit into the expanding market of marine telematics,
which brings high-value contacts and good potential to cross-sell our vehicle
telematics solutions.
Operational review
Cybit's continuing strong growth is reflected in the fact that it now supports
more than 25,000 mobile assets for around 1,000 independent customers. Major
business wins included EIC, Epsilon Test Services, Denman Group and Ideal
Boilers, with BlueFinger adding new clients including Sheffield Insulations
Group and the Ghanaian government.
Repeat business remains strong, reflecting the quality of our product and
service offerings. Sainsbury's Online Grocery extended its existing contract to
add more than 150 delivery vehicles, while Sunderland Housing renewed a contract
for 200 vehicles in September.
Our consulting and support business continues to expand, with revenues
increasing 40% compared with the same period last year. In response to customer
needs we have developed innovative new services, including premium
round-the-clock support, and have extended our existing logistics capability
into South West England and Scotland.
Our indirect channels have continued to expand, with a strong performance from
Fleetstar-AVL, which added 35 new customers in the first half. Sales supported
by Norwich Union's fleet insurance products have increased significantly in the
first half, following the appointment of a UK wide specialist insurance broker
network.
The #1.6 million acquisition of BlueFinger, announced on 14 June, has already
had a positive impact on the Group's core vehicle telematics business, adding
3,700 vehicles and 200 customers. BlueFinger's expertise in maritime telematics
is taking the Group into new and expanding markets such as vessel monitoring and
fisheries protection. Shortly after the acquisition, BlueFinger announced a
contract extension worth #0.5 million to equip a further 50 fishing vessels with
vessel monitoring technology for the Ghanaian government.
Current trading and outlook
Businesses are becoming increasingly aware of the potential for telematics
solutions to improve both competitive advantage and regulatory compliance. As a
result, our financial performance has continued to improve and following a good
start to the second half we remain confident of meeting expectations for the
year.
Cybit has a leadership position in an expanding but fragmented market. In
August, we were the only European Telematics provider to be ranked in ABI
Research's Top-10 Global Vehicle Telematics Vendors. As ever, we continue to
review opportunities to increase our growth through value-enhancing acquisitions
and continuing innovation.
Neil Johnson
5 December 2006
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the 6 months ended 30 September 2006
Unaudited Unaudited Audited
6 months ended 6 months ended 30 Year ended
30 September 2006 September 2005 31 March 2006
# # #
Turnover
Continuing operations 5,198,090 4,918,882 10,190,382
Acquisitions 595,270 - -
5,793,360 4,918,882 10,190,382
Cost of sales (2,256,128) (1,617,163) (3,338,521)
Gross profit 3,537,232 3,301,719 6,851,861
Administrative expenses
Other operating expenses (2,767,276) (2,619,905) (5,081,553)
Depreciation and goodwill amortisation (257,513) (218,938) (431,949)
Total administrative expenses (3,024,789) (2,838,843) (5,513,502)
Continuing operations 484,751 462,876 1,338,359
Acquisitions (after #18,143 goodwill 27,692 - -
amortisation)
Operating profit 512,443 462,876 1,338,359
Net interest and financing costs (500,432) (652,845) (1,138,349)
Profit /(loss) on ordinary activities before 12,011 (189,969) 200,010
taxation
Tax on profit/(loss) on ordinary activities (2,282) 36,100 (77,049)
Retained profit/(loss) transferred to/(from) 9,729 (153,869) 122,961
reserves
Earnings/(loss) per share
Basic 0.05p (0.77p) 0.62p
Diluted 0.05p (0.77p) 0.62p
CONSOLIDATED BALANCE SHEET
As at 30 September 2006
Unaudited Unaudited Audited
30 September 2006 30 September 2005 31 March
2006
# # #
Fixed assets
Intangible assets 3,026,891 504,681 539,186
Tangible assets 616,097 632,178 600,527
3,642,988 1,136,859 1,139,713
Current assets
Stocks 551,736 246,093 454,322
Debtors: amounts falling due after more than 959,826 1,286,214 1,026,476
one year
Debtors: amounts falling due within one year 4,497,646 2,718,204 3,810,152
Cash at bank and in hand 2,029,868 3,522,606 2,693,308
8,039,076 7,773,117 7,984,258
Creditors: amounts falling due within one (3,187,666) (2,273,471) (2,392,554)
year
Net current assets 4,851,410 5,499,646 5,591,704
Total assets less current liabilities 8,494,398 6,636,505 6,731,417
Creditors: amounts falling due after more (434,164) (454,722) (270,005)
than one year
8,060,234 6,181,783 6,461,412
Capital and reserves
Called up share capital 7,150,882 7,046,127 7,046,127
Share premium account 8,020,059 7,098,214 7,098,214
Other reserve (4,090,553) (4,090,553) (4,090,553)
Equity reserve 593,850 - -
Profit and loss account (3,614,004) (3,872,005) (3,592,376)
Shareholders' funds 8,060,234 6,181,783 6,461,412
The interim financial information was approved by the Board of Directors on 5
December 2006 and was signed on its behalf by
Richard Horsman Kevin Lawrence
Chief Executive Finance Director
CONSOLIDATED CASH FLOW STATEMENT
For the 6 months ended 30 September 2006
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30 September 2006 30 September 2005 31 March
2006
# # #
Net cash inflow from operating activities 266,080 415,955 381,949
Returns on investments and servicing of
finance
Interest received 56,174 63,174 106,994
Finance costs of assigning debts to finance (537,493) (686,284) (1,217,057)
companies
Finance lease interest paid (8,265) (11,675) (21,851)
Interest received on finance leases 7,282 3,595 9,360
Interest paid (18,130) (12,289) (15,795)
Net cash outflow from returns on investments (500,432) (643,479) (1,138,349)
and servicing of finance
Taxation - - (2)
Capital expenditure
Purchase of tangible fixed assets (26,398) (73,272) (138,103)
Disposal proceeds of tangible fixed assets - - 1,048
Purchase of intangible fixed assets (185,869) (8,606) (159,424)
Net cash outflow from capital expenditure (212,267) (81,878) (296,479)
Acquisitions
Purchase of subsidiary undertaking (31,093) - -
Net overdrafts acquired with subsidiary (103,486) - -
Net cash outflow from acquisitions (134,579) - -
Financing
Receipts from borrowing - 224,297 224,297
Repayment of loans (59,468) (38,674) (67,675)
Repayment of borrowings (64,698) (56,913) (113,984)
Net cash (outflow)/inflow from financing (124,166) 128,710 42,638
Decrease in cash (705,364) (180,692) (1,010,243)
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
For the 6 months ended 30 September 2006
NET CASH INFLOW FROM OPERATING ACTIVITIES
Unaudited Unaudited Audited
6 months ended 30 6 months ended 30 year ended
September 2006 September 31 March
2005 2006
# # #
Operating profit 512,443 462,876 1,338,359
Depreciation and amortisation 257,513 218,938 431,949
Increase in stock (67,495) (125,272) (333,501)
Increase in debtors (152,507) (113,405) (1,057,916)
(Decrease)/increase in creditors (274,797) (68,357) 57,792
(Decrease)/increase in deferred income (9,077) 41,175 (54,734)
Net cash inflow from operating activities 266,080 415,955 381,949
RECONCILIATION OF MOVEMENTS IN NET CASH
1 April 2006 Cash flow Acquisitions Exchange 30 September 2006
(excluding cash and movements
overdrafts)
# # # # #
Cash in hand and at bank 2,693,308 (663,305) - (135) 2,029,868
Bank overdrafts (14,777) (42,059) - 184 (56,652)
2,678,531 (705,364) - 49 1,973,216
Finance leases (195,310) 59,468 (7,909) - (143,751)
Debt due after more (61,055) 66,108 (285,977) - (280,924)
than one year
Debt due within one (52,363) (1,410) (118,800) - (172,573)
year
2,369,803 (581,198) (412,686) 49 1,375,968
RECONCILIATION OF MOVEMENTS IN GROUP SHAREHOLDERS' FUNDS
Unaudited Unaudited Audited
6 months ended 6 months ended year ended
30 September 2006 30 September 2005 31 March
2006
# # #
Profit/(loss) for the period 9,729 (153,869) 122,961
Issue of shares in the period 1,026,600 - -
Other recognised gains and losses in the (31,357) 8,113 10,912
period
Net increase/(decrease) in shareholders' 1,004,972 (145,756) 133,873
funds
Opening shareholders' funds 6,461,412 6,327,539 6,327,539
Closing shareholders' funds 7,466,384 6,181,783 6,461,412
NOTES TO THE FINANCIAL STATEMENTS
1. The interim financial information does not constitute statutory accounts
for the purpose of section 240 of the Companies Act 1985. The figures for the
year ended 31 March 2006 have been extracted from the Group accounts for that
year. Those financial statements have been delivered to the Registrar of
Companies and included an auditors' report, which was unqualified.
2. The interim financial information has been prepared using the same
accounting policies and estimation techniques as set out in the Group accounts
for the year ended 31 March 2006, with the exception that the Group has now
considered and adopted the provisions of Financial Reporting Standard 20 - '
Share Based Payments'. The implementation of the new Standard has had no
significant effect on the Group's existing disclosures.
3. On 14 June 2006 the company acquired the entire issued share capital of
BlueFinger Limited for a total consideration of #1,620,450, comprising the issue
of 2,095,102 consideration shares at 49p per share and the granting of #593,850
of consideration warrants. Costs of #31,093 were incurred in relation to the
transaction. The calculation of goodwill includes fair value adjustments, some
of which are provisional at this stage.
4. The basic earnings/(loss) per share has been calculated based on the
profit/(loss) on ordinary activities after taxation and the weighted average
number of ordinary shares of 5p each in issue for the period of six months to 30
September of 21,101,007 (September 2005: 19,864,554 and March 2006: 19,864,554).
For diluted earnings per share, the weighted average number of ordinary shares
in issue is adjusted to assume conversion of all dilutive potential ordinary
shares. The Group has three classes of dilutive potential ordinary shares: those
share options granted to employees where the exercise price is less than the
average market price of the Company's ordinary shares during the year, the
warrants issued to Trafficmaster as part of the acquisition of Fleetstar in
February 2002 and the warrants issued to the previous shareholders of BlueFinger
Limited as part of the acquisition in June 2006. The diluted weighted average
number of ordinary shares in issue for the six months to 30 September 2006 was
21,278,108 and at 31 March 2006 was 19,935,919.
5. A copy of the Interim Statement is being sent to all shareholders
and copies are available for collection from the Company's Registered Office at
the address below:
Cybit Holdings Plc
IT House
Chord Business Park
London Road
Godmanchester
Cambridgeshire
PE29 2NU
www.cybit.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
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