RNS Number : 0782Y
CybIT Holdings PLC
02 July 2008
Date: 2 July 2008
On behalf of: Cybit Holdings Plc ("Cybit" or "the Company" or "the Group")
Embargoed until: 0700hrs
Cybit Holdings Plc
Final Results 2008
Cybit Holdings Plc (AIM: CHY), the international provider of telematics based products and services for the management and control of
land and sea based assets, today announces its final results for the year ended 31 March 2008. The highlights of its record results are:
Financial highlights:
* Turnover up 48% to �19.67m (2007: �13.29m)
* EBITDA up 81% to �4.24m (2007: �2.35m)
* Operating profit up 87% to �3.26m (2007: �1.74m)
* Profit before tax more than doubled to �1.69m (2007: �0.64m)
* EPS increased by 63% to 4.65p per share (2007: 2.86p)
* Cash up 34% to �2.85m (2007: �2.12m) with 29% increase in monthly free cash flow
Operational highlights:
* Two strategic acquisitions in the year
* 31% increase in the number of vehicle based assets under management increased from 35,000 to more than 46,000
* Telematics related forward revenue stream across the business doubled to more than �10m of future profit which will be recognised over
the next three to five years
Neil Johnson, Non Executive Chairman commented:
"We are delighted to announce another record breaking set of results. Trading during the period has been exceptionally strong and we
have successfully integrated two further important acquisitions. This has substantially increased the international footprint of our
business and consolidated our position in both the transport and public sector markets.
We will look to take advantage of the current climate in order to continue building the scale of the business through further
acquisitions. The telematics market is fragmented with many small players lacking the financial resources to ride out an extended economic
downturn.
We remain confident about future prospects and intend to extend the reach of both our technology and business operations in order to
maximise growth and insulate against changes in global economy."
-ends-
For further information please contact:
Cybit Holdings Plc Redleaf Communications Cenkos Securities Plc
Richard Horsman, Chief Emma Kane/Samantha Robbins/ Stephen Keys
Executive
Kevin Lawrence, Finance Rebecca Sanders-Hewett Tel: +44 (0)20 7397 1930
Director
Tel: +44 (0)1480 455489 Tel: +44 (0)20 7822 0200
Email: Cybit@redleafpr.com
CHAIRMAN'S STATEMENT
Overview
I am delighted to report another record breaking set of results. The Group has benefited from its increased scale achieved through
recent acquisitions and has put in place a solid platform upon which growth can be built over the medium term.
We completed and integrated two further acquisitions during the year. Both came with substantial contracted revenues which have
contributed towards increased visibility of future revenue streams. The acquisition of a leading German telematics service provider was
strategically important as it increased our coverage in this strategic market and expanded our customer base in Austria and German speaking
regions of Switzerland and Italy. Cybit is now recognised as a successful consolidator at a European level which will undoubtedly lead to
further opportunities for future growth.
Cybit is also firmly established as one of Europe's leading providers of Online Fleet Management solutions. Our substantial customer
base, forward revenue streams and strong balance sheet gives us a high degree of confidence about our future prospects.
Results
Turnover for the year increased nearly 50% to �19.7 million with pre-tax profit increasing 166% from �0.64 million to �1.69 million.
Despite paying an initial instalment of �0.5 million for Truck24, our gross cash position increased from �2.1 million to �2.8 million at 31
March 2008.
Our business remains focused on the development of long-term recurring revenue streams and we are pleased that the amount of telematics
business placed on our own internal leasing book increased from 20% to 23% during the year. The telematics related forward revenue stream
across the business doubled to �10 million of future profit which will be recognised over the next three to five years. The forward order
book relating to our Precise Positioning and Maritime business increased substantially and now stands at approximately �8 million. Including
Truck24, free cash flow has increased 29% from �512,000 to �661,000 per month.
Operations
This was a significant year for our operations team as we not only completed the integration of the vehicle telematics operations of
Cybit Positioning Solutions (formerly Thales Telematics Plc) and Amatics into our core business but also managed the migration of customers
from two legacy systems retired during the period.
Whilst our vehicle telematics customer base increased slightly to approximately 1,700 corporate customers, the number of vehicle based
assets under management increased nearly 30% from 35,000 to more than 46,000. Our focus on world class customer service has resulted in
increased levels of contract renewals across the product portfolio together with continuing success in winning new contracts. New products
and services have ensured repeat business from our customer base remains strong.
Outside of core vehicle telematics business, our BlueFinger maritime business won a substantial contract to provide the Government in
Cyprus with a web based fisheries Vessel Management Solution (VMS). The team also renewed our contract with DEFRA for a further three year
period. Cybit Positioning Solutions also achieved notable success, signing a land mark seven year line fit contract for our precise
positioning technology.
Acquisitions
We successfully completed the acquisition of another two telematics businesses during the year. Amatics was bought for �4 million in
August 2007 and Truck24 AG was acquired on the last day of our financial year for EUR4 million. Amatics was integrated into our existing
structure within a two month period and made a contribution to Group profitability during the second half of the year. The acquisition of
Amatics and subsequent creation of a focused sales and support team has significantly strengthened our position in the local authority and
utility sector.
The acquisition of Truck24 has substantially increased our position within a core strategic market and will become the focal point for
sales of both Fleetstar and the existing Truck24 solutions into Germany and German speaking territories. The integration process commenced
in April and it is pleasing to report that Truck24 was profitable within the first two months following acquisition.
Outlook
Although we are facing a tough economic climate, the market for our solutions remains strong. Under challenging market conditions, well
run businesses will look to implement cost management and business improvement programs in order to ride out a potential downturn.
The Group has a strong balance sheet and the management team is continually focused on improving operational efficiencies to drive
bottom line performance.
We will look to take advantage of the current climate in order to continue building the scale of the business through further
acquisitions. The telematics market is fragmented with many small players lacking the financial resources to ride out an extended economic
downturn.
We remain confident about future prospects and intend to extend the reach of both our technology and business operations in order to
maximise growth and insulate against changes in global economy.
Neil Johnson
Chairman
2nd July 2008
CHIEF EXECUTIVE'S REVIEW
Operating Review
This has been another excellent year for Cybit. A combination of increased market take-up and the benefits of scale achieved through
recent acquisitions have allowed the Group to make major progress over the past twelve months.
As announced at the interim results, we now operate within three business areas: Vehicle Telematics, Private Mobile Radio (PMR) and
Maritime Solutions.
Vehicle Telematics
With the cost of fuel increasing almost daily, customers of all sizes are starting to appreciate the significant tangible and intangible
benefits that can be derived through use of our telematics based solutions. The delivery of focused business information allows our
customers to reduce operating costs and improve efficiencies. Our solutions include a range of tools that help our customers comply with the
increasing legislative, taxation and compliance burden that is associated with operating a remote workforce. Our extended capabilities
include detailed vehicle performance analysis through real-time delivery and processing of detailed or summary CANbus data.
Although increasingly competitive, the market for our solutions is continuing to grow at both the simple and complex levels.
In the more complex sector, we have focused on gaining a better understanding of both the functional and business requirements of
organisations within our core markets and we are starting to achieve notable successes. Based on market estimates, we believe that Cybit has
an approximate 15-20% market share of the installed telematics marketplace in the UK. Our research indicates that this percentage of market
share continues through to our presence in the leading businesses within each of our key major and sub verticals. This bodes well for us as
the market continues to grow and we increase the level of penetration into our target markets.
Our strategy remains one of delivering market specific products and services focused on delivering substantial strategic and operational
benefits. We are confident that this approach will enable us to maintain our position as UK market leader in our key verticals with the
ability to take a similar position in other strategic markets.
Customer Growth and Development
As a result of the acquisition of Amatics in August, we have re-aligned our UK based new business sales team such that they are focused
on three key vertical markets: Service; Transport and Logistics; Government and Utilities. We have also replicated this focus within our
field based and customer facing back office customer support team. This allows us to get far closer to our customers and better understand
both market and customer specific requirement. We are already seeing substantial benefit from this approach through successes achieved by
our new business and installed base sales teams.
In terms of contract extensions, we achieved unit renewals of approximately 90% which resulted in the number of customer units either
being renewed or migrated onto the Fleetstar platform increasing from 2,500 to 6,000 during the period; a significant achievement in a
period during which two legacy platforms were retired! Renewal rates amongst customers remained relatively static at approximately 80%. It
is pleasing to report that our focus on Return on Investment and customer service has helped us to sign significant expansion and renewal
contracts with many of our customers. Notable amongst these are: SIG PLC, Fowler Welch Coolchain, May Gurney PLC, Colas, Sainsbury's Online,
North Midland Construction, and Argyle and Bute Council.
Cybit has also added a large number of new customers during the year including Gilbarco Veeder Root, Milbank Trucks, A1Plus, Macfarlane
Packaging, Cheshire Peak and Plain Housing and Blaenau Gwent County Borough Council. At the end of the period, the net number of assets
registered on our telematics platforms increased from 35,000 to more than 46,000 with the number registered on Fleetstar-Online alone
topping 30,000 at the year end.
Operational Achievements
Our focus on the integration of all UK based Telematics customer and operational activities has continued with the integration of
Amatics into the Group within two months of acquisition. As part of this program, we have completed the implementation of our field based
customer service initiative. This initiative has moved our customer services team closer to the customer delivering improved response times.
A direct result of this initiative has been a significant acceleration of the order to installation process with an associated shortening of
the order to cash cycle.
A further project to create a single procurement team responsible for all Group purchasing activities is close to conclusion. This will
allow us to reduce the number of suppliers to the Group substantially whilst at the same time improving our overall buying power.
The continued development of our internal engineering resource has been a key achievement during the year. In addition to delivering
greater consistency and quality of an ever more complex installation, we are currently saving in the region of �50,000 per month against the
cost of utilising external resource.
Continuing our strategy of outsourcing non-core activities, we have completed the transition of all stock-holding, product configuration
and distribution to a partner. This has allowed us to increase inventory turn rates whilst reducing the lead time from order through
configuration to end customer delivery. As a result of this, we have not only reduced our stock holding and configuration costs but also
achieved an overall reduction in distribution costs.
As reported last year, the Group has invested in an integrated Enterprise Resource Planning (ERP) system to support business growth. We
have an ongoing project focused on the rationalisation of the various legacy back office systems gained through acquisition. The initial
objective was to consolidate all Group companies onto a single finance system followed by similar consolidation of customer operations and
billing systems. This project is expected to deliver further operational savings over the second half of the current financial year.
Indirect Channels
Revenues achieved through our indirect channel increased substantially in the period. In response to customer and market demand at the
lower end of the SME market space, Cybit re-structured our reseller proposition and launched a low end solution based on the Asset Locator
product gained through the acquisition of Cybit Positioning Solutions in 2007. This has given our reseller community a comprehensive suite
of cost effective fleet and asset management solutions with which to service their customers. As a result, our channel partners delivered
approximately 180 new customers to the business during the period.
In addition to our reseller channel, Cybit is building a network of partners who can help us to broaden our vertical market
capabilities. We will also be looking to build upon our recently announced CANbus capabilities both directly and in conjunction with
specialist partners who can increase our time to market in certain key areas.
European Subsidiaries and other International Opportunities
Revenues from Cybit AB, our Swedish operation continued to grow over the period, primarily as a result of the success of UK based City
Car Club, our major car share customer.
New business revenues from Fleetstar were disappointing although a change in management focus and launch of the Truck24 technology
during the first quarter of the new financial year is delivering substantial growth in the current financial year.
Similarly in Germany, despite early success, the performance of Cybit GmbH over the full period did not meet management expectations.
With a total vehicle park in excess of 50 million, we still see this market as a substantial growth opportunity and believe that the
integration of Cybit GmbH with our recent Truck24 acquisition will pay dividends in the coming year.
During the fourth quarter, we appointed a business manager to lead a new Middle Eastern business venture based out of Dubai. We have a
number of existing clients and prospects in this region and recognised the need to have representation "on the ground" if we are to be
successful in the local market. We have already identified a number of significant opportunities for our vehicle telematics and PMR
solutions and believe this will represent a strong market for Cybit and our products in the future.
Acquisition of Amatics
On 23rd August 2007, Cybit completed the acquisition of Amatics Limited, a privately owned UK based telematics company for �4 million.
The consideration was satisfied by a cash payment of �3.5 million, �3.25 million of which was payable on completion and the balance of
�250,000 payable over 5 months from October 2007. The balance of the transaction was satisfied by the issue of 962,000 new shares at 52p
each. At the time of the acquisition, Amatics had a cash balance of �3.25 million therefore, on completion the acquisition was cash neutral
as Cybit effectively paid cash for Amatics' existing cash balance. Amatics' revenue during 2006 was �3.3 million.
In addition to the initial consideration, an earn out of up to �2 million is to be paid against achievement of certain performance
targets during the periods from completion to 31st March 2008 and 1st April 2008 to 31st March 2009. We believe that the earn-out in the
period to 31st March 2008 will be less than �100,000.
Amatics is one of the UK's leading telematics service providers to the utility services sector and among local authorities. It currently
has circa 25 long-term customers, who between them have approximately 4,000 installed units. Key customers include Scottish Water, South
East Water, Monmouthshire Council, South Cambridgeshire Council and Argyll and Bute Council. Many of its customers integrate telematics data
into their internal infrastructure including customized GIS applications for applications including gritting and gully emptying.
Acquisition of Truck24 AG
The acquisition of Truck24 was completed on the last day of the financial year for a total consideration of EUR4 million. The
consideration and debt was satisfied by an initial cash payment of EUR700,000 on completion, up to a further EUR1.1 million of cash on
deferred terms, the issue of 3,580,000 new shares in Cybit and the issue of 797,032 Warrants over Cybit shares at a strike price of 49
pence. A term loan of EUR1.3 million has been secured from HSBC to support the acquisition although the initial payment of EUR700,000 was
paid out of Group cash reserves.
Truck24 is based near Munich and is one of the leading Telematics Service Providers to the German and German speaking HGV and logistics
sectors. The company has approximately 200 customers representing 3,300 vehicles installed across fleets based in Germany, Austria,
Switzerland and Italy. The Truck24 solution will strengthen Cybit's position in the logistics and distribution market in that it addresses
core tracking, order management, navigation and operational performance needs of this sector.
From a product and market perspective, Truck24 has specific expertise in the logistics sector which will both add value to the expanded
Group and accelerate Cybit's ability to deliver key functionality such as digital tachograph and CANbus integration.
Although no revenue is included from Truck24 in the current year, the balance sheet is consolidated into the overall Group balance sheet
as it was acquired on the last day of our financial year.
In the period to 31st December 2007, Truck24 achieved profitable revenues in excess of EUR5 million and is therefore expected to
contribute towards both revenue and profit growth in the coming year. There are already plans to launch Truck24 technology in both Sweden
and the UK with other markets under review.
Product Development
During the period, Cybit delivered a number of enhancements to products within the portfolio. One of the most important enhancements to
the Fleetstar application was the introduction of a new scaled platform which is capable of supporting growth in excess of 100,000 units. In
addition there were a number of enhancements to the core platform including support for CANbus data and additional functionality around our
local authority winter maintenance module. All of these developments are paving the way for further platform consolidation with the
associated benefits in due course.
Our Sapphire Maritime solution underwent a number of customer funded developments. Included amongst them is the extension of the product
to provide a Race Management Solution (RMS) to support the Volvo Ocean Race which sets out from Spain in September 2008. The team also won a
contract to supply Cyprus with a web based version of the Sapphire solution which is due for release during the first quarter of the new
financial year.
There are a number of other hardware based projects underway including the development of a new version of our TDMA based precise
positioning hardware, an updated version of the BlueFinger secure maritime tracking device and the planned launch of an updated car share
Mobile Data Terminal (MDT) for our Drive-IT solution.
Our internal development team currently comprises a core group of approximately 16 hardware and software engineers. This team has been
supplemented by core team of five developers provided by an Indian outsource partner.
From a planning perspective, Cybit has recently introduced an agile development methodology supported by a Development Management
Council (DMC) from across the Group which meets on a monthly basis to review progress and re-assess development priorities in line with
on-going business and market requirements.
The benefit of this approach is a reduction in internal development costs by a net �200,000 per annum whilst at the same time giving us
greater flexibility to scale our development capacity either up or down based on business performance and customer demand.
Our development group is expecting to deliver a substantial number of new product releases together with hardware and software updates
to our existing portfolio. We are also planning a number of activities designed to create a common interface layer within the existing
product portfolio and better integration with our existing back-office infrastructure. This will help us to leverage the technology
investment we have made through acquisitions and also deliver further significant operational savings.
Private Mobile Radio (PMR)
We have been delighted with the performance of our PMR business over the past year. Our focus on operational efficiencies has
substantially reduced the cost base associated with this business and ensured increased margins across all products within the portfolio.
The business achieved notable contract wins with a number of key customers including an impressive seven year line-fit contract with a
major manufacturer of seismic vehicles. The current focus on oil and gas exploration has led to this contract outperforming first year
commitments within the first six months and the outlook for continued over performance remains good.
Strong performance from our off-shore exploration partner led to a number of sizeable orders during the year. This product is in a
run-out phase but existing commitments require deliveries for the majority of the current financial year. We are hopeful that our PMR
business will play a key part in the delivery of the client's next generation solution.
We go into the new financial year with a strong order book and strong pipeline of future business opportunities.
Maritime
Although the number of new Fisheries Vessel Management Solution (VMS) projects awarded during the year were relatively low, our maritime
team won new contracts with both new and existing customers.
On the VMS front, in addition to a number of smaller contract extensions, we won a large project to supply the Cyprus Government with a
web based fisheries management solution. This solution will also give us the ability to provide web based long range tracking services to
commercial ship operators. We are currently exploring the potential for a commercial launch of this service in the current financial year.
We were also successful in securing a three year maintenance contract extension with DEFRA, the end of which will take our relationship
with this client to over 13 years.
The team was also successful in winning a development project to provide a Race Management System (RMS) to support the upcoming Volvo
Ocean Race. This development also opens new opportunities for us in both inshore and offshore racing.
Although business in this sector is fairly lumpy, we have a relatively strong order book and a good pipeline of future business
opportunities. We are currently exploring potential market opportunities that will deliver a strong base line of predictable revenues
similar to our vehicle telematics business.
Financial Review
This was another year of substantial growth for Cybit. Revenues were up nearly 50% from �13.3 million to �19.7 million with pre-tax
profits increasing nearly threefold from �0.6 million to �1.7 million. This has primarily been achieved through organic growth together with
a small contribution from our Amatics acquisition. Gross margins remained static at 63% reflecting a continued focus on managing both fixed
and variable costs across the business.
Despite further significant revenue growth and acquisition activity, administrative expenses were tightly controlled, increasing by only
33%. Against a background of increasing interest rates, financing costs increased slightly from �1.18 million to �1.61 million but reduced
as a percentage of overall turnover from 8.3% to 8.1%.
We continue to maintain a focus on increasing the levels of contracted forward profit and cash through the development of our internal
leasing book and other recurring revenues. Continuing that strategy, 23% of telematics revenues were placed on the internal lease book
during the year. This is up from 20% in the prior period. Overall the internal lease book across Group companies has increased substantially
and including Truck24, the forward value of this asset has doubled from �5 million in 2007 to approximately �10 million, the majority of
which will be recognised over the next three years.
The forward order book relating to our maritime and precise positioning businesses has also increased substantially, growing from �2
million in 2007 to nearly �8 million at the end of the year. The combination of this forward order book and internal lease book will not
only underpin future growth but will also serve to insulate the business in the event that market conditions harden.
Despite the initial payment of EUR700,000 for Truck24, cash in hand increased from �2.12 million to �2.85 million. Net cash at the
period end was �1.6 million. The business remains cash generative at the operating level with net cash inflow from operating activities
increasing from �1.3 million to �4.1 million in the period. At the end of the year, the Company had total outstanding loans and overdrafts
of �1.27m. The business also has an unused overdraft facility of �1 million and a further Euro denominated facility of EUR1.3 million to
support the Truck24 acquisition. At the end of the period, none of these standby facilities were being utilised. Recurring cash flow has
also grown from �512,000 to �661,000 per month after the acquisition and integration of Truck24. This now represents around 74% of Group
monthly cash requirements for the business.
Outlook
The Group has yet again delivered against the commitments made to shareholders. A year of significant growth, together with the
acquisition of Amatics and Truck24, has give us an exceptional opportunity to build upon our experiences gained in the UK market and
transfer this success onto the broader European stage.
Despite current economic conditions, we still firmly believe that the market for telematics will continue to grow as customers from all
sectors are forced to implement strategies to improve operational efficiencies whilst ensuring legislative compliance. It is now widely
accepted that our solutions deliver a high level of return on investment and our financial strength makes Cybit the low risk partner to
deliver these returns.
Having achieved critical mass in the UK, we are turning our attention to international growth. Strong economic growth in Sweden has led
to increased interest in our products and we plan to launch a localised version of Truck24 into the Swedish market. We will also be
considering how best to address the rest of the Scandinavian market from Sweden.
The acquisition of Truck24 gives us a strong presence in Germany with additional customers in Austria, Switzerland and Italy. We intend
to invest further in sales personnel to exploit this opportunity fully.
Whilst the initial focus will be organic growth from within the business, we will continue to consider suitable acquisition
opportunities as resources and market conditions allow.
I would like to thank everyone employed within the Cybit Group for their hard work and dedication during what has proved to be yet
another exceptional year and we all look forward to the future with confidence.
Richard Horsman
Chief Executive
2nd July 2008
Consolidated Income Statement
For the year ended 31 March 2008
2008 2007
� �
Revenue 19,671,179 13,288,619
Cost of sales (7,301,291) (4,855,508)
Gross profit 12,369,888 8,433,111
Administrative expenses
Other operating expenses (8,125,373) (6,088,132)
Depreciation and amortisation (981,212) (603,405)
Total administrative expenses (9,106,585) (6,691,537)
Operating profit 3,263,303 1,741,574
Finance costs (1,606,827) (1,185,258)
Finance income 38,360 80,639
Finance loss (1,568,467) (1,104,619)
Pre-tax profit for the year 1,694,836 636,955
Tax expense (627,561) (22,355)
Net profit for the year 1,067,275 614,600
Attributable to the equity holders of Cybit Holdings plc 1,067,275 614,600
Earnings per share - basic 4.65p 2.86p
Earnings per share - diluted 4.61p 2.82p
All activities relate to continuing operations.
.
Consolidated Statement of Recognised Income and Expense
For the year ended 31 March 2008
2008 2007
� �
Foreign currency translation differences (10,566) (301)
Net income/(expense) recognised directly in equity (10,566) (301)
Profit for the year 1,067,275 614,600
Total recognised income and expense for the year 1,056,709 614,299
Consolidated Balance Sheet at 31 March 2008
2008 2007
� �
ASSETS
Non-current assets
Goodwill 5,138,890 1,374,973
Other intangible assets 4,377,714 2,304,674
Property, plant and equipment 473,328 559,715
Deferred tax assets 609,799 733,215
Other non-current assets 131,410 655,427
10,731,141 5,628,004
Current assets
Inventories 1,420,696 1,638,204
Trade and other receivables 8,004,116 6,505,745
Cash and cash equivalents 2,853,984 2,119,985
12,278,796 10,263,934
TOTAL ASSETS 23,009,937 15,891,938
LIABILITIES
Current liabilities
Trade and other payables 7,669,406 5,667,693
Borrowings 614,566 625,746
Current tax payable 527,131 27,793
8,811,103 6,321,232
Non-current liabilities
Trade and other payables 994,335 464,259
Borrowings 656,914 416,096
Deferred tax 426,458 327,475
TOTAL LIABILIITIES 10,888,810 7,529,062
NET ASSETS 12,121,127 8,362,876
EQUITY
Share capital 7,425,488 7,150,882
Share premium account 7,591,607 7,098,214
Merger reserve (1,141,368) (3,168,708)
Equity reserve 194,374 288,172
Foreign exchange reserve (10,866) (301)
Retained earnings (1,938,108) (3,005,383)
12,121,127 8,362,876
Consolidated Cash Flow Statement
For the year ended 31 March 2008
Year ended 31 March Year ended 31 March
2008 2007
� �
Operating activities
Results for the period after tax 1,067,275 614,600
Adjustments for:
Depreciation and amortisation 981,212 603,405
Loss on sale of property, plant 1,919 -
and equipment
Working capital changes (183,089) (1,041,301)
Finance costs 1,568,467 1,104,619
Taxation expense recognised in 627,561 22,355
the income statement
Employee equity settled share - -
options
Cash generated from operations 4,063,345 1,303,678
Corporation tax paid (28,754) -
Finance costs of assigning debts (1,529,642) (1,159,452)
to finance companies
Net cash from operating 2,504,949 144,226
activities
Investing activities
Purchase of subsidiary (4,783,421) (308,093)
undertakings
Net cash/(overdrafts) acquired 3,457,996 (108,759)
with subsidiary undertakings
Purchase of property, plant & (149,457) (111,525)
equipment
Additions to other intangibles (859,393) (496,537)
Proceeds from sale of property, 1,222 1,031
plant & equipment
Interest received 38,360 80,639
Net cash used in investing (2,294,693) (943,244)
activities
Financing activities
Interest paid (77,185) (25,806)
Proceeds from share issues 364,178 -
Receipts from borrowings 500,000 500,000
Receipts from short-term 3,250,000 -
borrowings
Repayments of short-term (3,250,000) -
borrowings
Finance lease repayments (86,801) (154,254)
Repayment of loans (221,875) (462,009)
Net cash generated from / (used 478,317 (142,069)
by) financing activities
Net changes in cash and cash 688,573 (941,087)
equivalents
Exchange differences (388) 60
Net cash and cash equivalents - 1,737,504 2,678,531
beginning of year
Net cash and cash equivalents - 2,425,689 1,737,504
end of year
NOTES TO THE FINANCIAL STATEMENTS
1. The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 240
of the Companies Act 1985.
2. The financial information has been extracted from the Group's 2008 financial statements. Those financial statements have not yet
been delivered to the Registrar nor have the auditors reported on them.
3. Basis of preparation
The preliminary results have been prepared under the historical cost convention and in accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union. The date of transition to IFRS from UK GAAP was 1 April 2006 and therefore the 31 March
2008 financial statements are the first full financial statements prepared in accordance with IFRS. The full IFRS accounting policies and
notes on the impact of transition to IFRS are included within the 30 September 2007 interim financial statements.
Following a review by management, the pension scheme asset and liability of �2.9m acquired with the acquisition of Thales Telematics Plc in
2007, has been recognised as a contingent liability on transition to IFRS.
4. Earnings per share
The calculation of the basic earnings per share is based on the profits attributable to ordinary shareholders divided by the weighted
average number of shares in issue during the year.
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 two 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 and the remaining unexercised
warrants issued to the previous shareholders of BlueFinger Limited as part of the consideration for the acquisition of the company in June
2006.
Reconciliations of the earnings and weighted average number of shares used in the calculations are set out below.
2008 2007
Earnings Weighted average Per-share amount Earnings Weighted average Per-share amount
number of shares number of shares
� No. Pence � No. Pence
Basic earnings per share
Earnings attributable to 1,067,275 22,943,055 4.65p 614,600 21,529,155 2.86p
ordinary shareholders
Effect of dilutive securities
Options and warrants 199,796 299,099
Diluted earnings per share
Adjusted earnings 1,067,275 23,142,851 4.61p 614,600 21,828,254 2.82p
5. Dividends
No dividends have been paid in respect of the year.
Copies of the Company's Annual Report and Accounts will be available from the Company's registered office.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UAUNRWRRBRAR
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