RNS Number:0606J
Civica PLC
04 December 2007
FOR IMMEDIATE RELEASE 4 December 2007
Civica plc
Preliminary Results
'Continued profits growth driven by expansion of own software related services'
Civica plc ("Civica" or "the Group"), the software and services group focused on
the public sector, today announces its preliminary results for the year ended 30
September 2007.
Key Financials
* Operating profit* up 16% to #21.6 million (2006: #18.5 million)
* Operating margins increased to 17.0% (2006: 14.8%)
* Gross profit up 23% to #82.1 million (2006: #66.5 million)
* Turnover up 1% to #126.9 million (2006: #125.0 million)
* Turnover related to owned software products up 25% to #92.3 million
(2006: #73.7 million)
- Consulting services revenue up 23% to #32.3 million
- Software licence fee revenue up 10% to #23.6 million
- Managed services and support revenue up 40% to #36.3 million
* Statutory results for the year were turnover of #126.9 million
(2006: #125.0 million) and operating profit of #8.2 million
(2006: operating profit of #1.1 million). Basic earnings per share was
3.0p (2006: loss per share of 3.8p)
* Order book up 6% at #96.5 million (2006: #91 million)
* Strong cash generation with net cash flow from operating activities
and before the cash effect of exceptional items at 92% of operating
profit*
* Basic* adjusted earnings per share growth of 5% to 22.0p (2006:
20.9p)
* Proposed final dividend of 1.6p making a total for the year of 2.4p
(2006: 2.18p), an increase of 10%
* Successful completion of the VT Software Solutions Ltd acquisition,
with operational benefits delivered ahead of expectations
Operational Highlights:
* Continued new order intake with more than 80 new contract wins
* Market structure implemented in the UK to focus resources on
specific growth opportunities
* Service transformation unit established in local government to
target service delivery projects
* Good progress in social housing through enlarged customer base
* Excellent growth and strong pipeline in education, with further
investment in Building Schools for the Future programme
* Return to growth in the enforcement sector
* International operations expanded with new wins in Singapore,
Malaysia and Brunei
* before goodwill amortisation, exceptional items and LTIP charges.
Commenting on the results, Simon Downing, Chief Executive, said:
"This has been another year of good progress for Civica both in the UK and
internationally, supported by strong profits growth and cash generation. Our
strategy of focusing on owned software and associated services has continued to
deliver improvement in operating margins during the period. Given the
sustained agenda for change in the public sector and the investments we are
making across our core markets, the outlook for the business remains positive."
For further information, please contact:
Civica plc 020 7760 2813
Simon Downing, Chief Executive
Mike Stoddard, Finance Director
Dresdner Kleinwort 020 7623 8000
Simon Russell / James Rudd
Buchanan Communications 020 7466 5000
Tim Thompson / Nicola Cronk/Susanna Gale
CHAIRMAN'S STATEMENT
I am pleased to present preliminary results for Civica for the year ended 30
September 2007 and to report the continued delivery of good profits growth and
cash generation in line with expectations.
Civica is a leading provider of software and IT services that help customers to
improve service delivery and efficiency, in particular supplying more than 1,700
public sector organisations in the UK, Australia, Singapore and the USA.
Securing more than 80 new contract wins, the Group has continued to make
progress during the period through both organic growth and acquisition, with the
development of broader capability in education and social housing markets,
expansion of international business and further improvement in operating
margins.
Following the acquisition and integration of Comino in 2006 and VT Software
Solutions Ltd in January 2007, Civica has focused around sectors in order to
accelerate progress with broader customer opportunities in core markets.
Trading Results
During the year to 30 September 2007, turnover grew 1 per cent to #126.9
million, with operating profit* of #21.6 million, which represents an increase
of 16 per cent over the previous year. Operating profit margin increased to 17.0
per cent from 14.8 per cent in 2006.
The clear focus on expanding the breadth and scale of business related to
Civica's own software applications has continued to drive growth, with
associated turnover from consulting, software and managed services revenue
streams increasing by 25 per cent over the previous year to
#92.3 million (2006: #73.7 million). Organic growth of 7 per cent in
owned-software related revenues, together with the addition of the VT Software
Solutions Ltd business, contributed to a gross profit on IPR-related business
for the period of #77.9 million, which represents a year-on-year increase of 26
per cent. Revenues for the third party licensing business declined to #34.6
million (2006: #51.3 million), although the reduction in gross margin for the
business was only #0.4 million.
As at 30 September 2007 the order book stood at #96.5 million (2006: #91
million), of which some 85 per cent is deliverable in the current financial
year, and our pre-contracted recurring licence and support revenues of #46
million continue to account for 50 per cent of owned software-related
activities.
GROUP OVERVIEW Year ended 30 Year ended 30
Sept 07 Sept 06
#'000 #'000
Turnover 126,909 125,040
Cost of sales (44,854) (58,564)
--------------- ---------------
Gross profit 82,055 66,476
Administrative expenses* (60,495) (47,959)
--------------- ---------------
Adjusted operating profit* 21,560 18,517
Interest payable (3,248) (2,368)
--------------- ---------------
Adjusted profit on ordinary
activities before taxation** 18,312 16,149
Taxation (4,577) (3,872)
--------------- ---------------
Adjusted profit on ordinary
activities after taxation*** 13,735 12,277
--------------- ---------------
Adjusted earnings per share -
basic* 22.0p 20.9p
Adjusted earnings per share -
diluted* 20.4p 19.5p
* Before goodwill amortisation, exceptional items and LTIP charges.
** Profit on ordinary activities before taxation reconciles to the statutory
profit on ordinary activities before taxation by adjusting for LTIP charges of
#2,203,000, goodwill amortisation of #8,501,000 and exceptional items of
#2,629,000.
*** Profit on ordinary activities after taxation reconciles to the statutory
operating profit on ordinary activities after taxation by adjusting for LTIP
charges after taxation of #1,542,000, goodwill amortisation of #8,501,000 and
exceptional items after taxation of #1,840,000.
Exceptional costs of #2.6 million were incurred in the period. These costs
comprise redundancy costs and other expenses arising from rationalisation of the
Group following recent acquisitions, including VT Software Solutions Limited,
together with costs associated with the aborted bid during the period.
Cash generated from operating activities and before the cash effect of
exceptional items continues to be strong at 92 per cent of adjusted operating
profit* and the Group finished the year with cash in the bank of #15.9 million
and net debt of #31.9 million. The balance sheet as at 30 September 2007 shows
net assets of #107.5 million. Goodwill of #146.1 million is being written off
over twenty years. Statutory operating profit for the period was #8.2 million
and basic earnings per share was 3.0p.
BUSINESS REVIEW
During the year Civica established a sector organisation structure in the UK in
order to focus critical mass around core market expertise to pursue specific
growth opportunities. During the year to 30 September 2007 the Group achieved
solid progress in local government and housing across an expanded customer base,
with excellent growth and good opportunities in education and a return to
revenue growth in enforcement. International operations continued to expand,
particularly in Asia Pacific, and now account for 24 per cent of operating
profits*.
Local Government
The table below shows results extracted from the management accounts for the
period.
Year ended Year ended
30 September 30 September
2007 2006
#'000 #'000
Turnover 57,632 50,781
Gross profit 49,794 44,381
The local government sector accounts for 46 per cent of Civica's overall
business, and in the year to 30 September 2007 revenue attributable to the local
government business grew by 13.5 per cent to #57.6 million. Softer demand for
back office system replacements resulted in modest organic growth of 1 per cent
in the UK, balanced by organic growth overseas of 7 per cent, including
continued progress with the managed services model.
Efficiency, and corresponding budget pressure, remains a market characteristic
in the UK, but with public service transformation also embedded within the
Comprehensive Spending Review there is a major opportunity to demonstrate how
re-engineered processes coupled to effective IT systems can help to achieve
improved services with fewer resources. Civica has concentrated on building on
its successful track record in this area for customers such as Liverpool Direct,
the City of Edinburgh and Norwich City Council, with new wins at, among others,
the London Borough of Wandsworth, Southampton City Council and Swindon Borough
Council.
Following progress with new service improvement engagements, such as working
with the County and District councils in Gloucestershire under their shared
working agenda, the Group has also invested #0.4 million in a dedicated
enterprise service transformation unit, combining professional, technology and
management services in order to respond to broader improvement programmes.
Although the trading environment for back office system replacements in the UK
softened, the Group continued to secure new business, with financial systems
including e-procurement for, among others, Stoke City and Lancaster City
councils, together with a hosted payments solution for five authorities.
Following wins at Burnley and Carlisle, Civica now supplies environmental health
systems to 74 per cent of the local authorities in the North West. The Group was
again delighted to be associated with award-winning authorities, including
managed service customer Lincoln City, Vale Royal Borough Council and
Stockton-on-Tees.
Following Civica's selection in 2006 as a prime contractor for specialist
solutions in the UK Government's 'Catalist' framework agreement, the volume of
own software business secured through this channel grew steadily in 2007 to
almost #4 million in the final quarter.
International business momentum included new contracts for, among others,
Australia's fifth largest authority Fairfield City Council, Wollondilly Shire
Council and the Sydney Catchment Authority. Civica was chosen to streamline
regulatory processes for Whittlesea and also enabled Cairns City Council and
Singleton Council to go live as 'role model' councils for a national project to
provide a new electronic standard for online development applications, a major
initiative for Cairns and the Local Government Associations representing 92
local authorities across the country.
Housing & Asset Management
The table below shows results extracted from the management accounts for the
period.
Year ended Year ended
30 September 30 September
2007 2006
#'000 #'000
Turnover 16,457 8,241
Gross profit 14,813 6,876
The Group's social housing revenues doubled during the year to #16.5 million,
with organic growth of 7%. The size and breadth of operations following the
integration of VT Software Solutions has positioned the Group as one of the
largest software-based suppliers to the sector, with more than 200 customers
from Cornwall to Scotland managing from 250 to over 110,000 units.
The focus on customer service solutions involving contact management, workflow
and electronic document management continues to find favour, with 13 new
business wins including, among others, City Building (Glasgow), East Thames
Housing and South Liverpool Housing Group, and with good service revenues from
the customer base. Success has also been achieved at enlarged groups handling
post-merger integration such as Cheviot Housing and the One Group, with notable
benefits also delivered through integrated repairs management including a 60 per
cent cost saving and a 40 per cent reduction in the time taken to complete
repairs at Maidenhead and District Housing Association.
Demand for mobile working solutions continues to increase, particularly in
repairs management which exceeded 1,000 mobile users during the year, while the
company has also established a programme to help customers improve environmental
sustainability. Momentum with building services partners included further wins
for Kier Building Maintenance, which manages more than half a million repairs
annually using Civica systems, while Mitie Property Services successfully went
live with 100 mobile users within 5 weeks as part of the service it provides to
Birmingham City Council.
Education
The table below shows results extracted from the management accounts for the
period.
Year ended Year ended
30 September 30 September
2007 2006
#'000 #'000
Turnover 9,599 6,493
Gross profit 8,520 5,902
The Group achieved excellent growth in the education sector during the year,
with revenue of
#9.6 million representing organic growth of 48 per cent. The company reached
contractual agreement with Sheffield City Council as strategic ICT partner for
the city's Building Schools for the Future (BSF) programme, with new wins
included a 3-year, #3.3 million contract with Essex County Council to provide a
shared learning environment for schools as part of its approach to BSF. During
the year the company invested more than #1 million in the development of its
education activities including the BSF programme.
The final phase of the Singapore schools library service, across 352 schools,
was completed sixteen months ahead of the original award schedule. Further
business included a contract with the Ministry of Education in Brunei, which is
expected to rollout to more than 180 schools, together with a #1.4 million
service for the Singapore Armed Forces Training Institute.
Sustained momentum in the international libraries market included wins at Dundee
City and the Queensland Institute of Technical & Further Education involving 80
libraries. Managed services success continued with the London Borough of
Hammersmith & Fulham joining the South East Library Management consortium and
three further libraries joining Civica's South Australia Regional Libraries
Consortium.
Enforcement & Security
The table below shows results extracted from the management accounts for the
period.
Year ended Year ended
30 September 30 September
2007 2006
#'000 #'000
Turnover 8,615 8,087
Gross profit 4,764 4,796
The enforcement business returned to growth in 2007 with revenues of #8.6
million representing organic growth of 6 per cent, with a focus on intelligent
traffic management and enforcement for broader safety, security and
environmental roles, although gross margin remained flat. The importance and
efficiency of shared working was highlighted with new business including joint
projects between the County Council and Police force in both Kent and Surrey,
and in Wigan where Civica helped achieve resource savings.
Customers continue to benefit from the Group's core technology solutions, with
Civica helping Greater Manchester Police and the Trafford Centre retail complex
to cut vehicle crime by 65 per cent, while in Leeds sixty people were arrested
following a campaign based on Automatic Number Plate Recognition (ANPR)
involving officers from West, North and South Yorkshire and Humberside.
Ahead of the Traffic Management Act, which will introduce wider powers to local
authorities in March 2008, bus lane enforcement became available in 2007 for
implementation by English authorities outside London, Civica responding with
systems for Oxford, Manchester and Sheffield.
Operations
Civica's activities include business and technical consulting services,
development and deployment of software systems, and managed services. The
ability to integrate professional, technology and managed services is
fundamental to the company's strategy. During the period, consulting and project
services revenues increased by 23 per cent (5 per cent organic), with an
increasing focus on process improvement and efficiency-led assignments
supporting a further improvement in contribution margin to 21 per cent from 18
per cent last year. Revenue from owned software license fees increased overall
by 10 per cent and organically by 3 per cent, with contribution margins
increased to 44 per cent compared with 41 per cent last year. Turnover in the
third party licensing business declined by 33 per cent in the period, resulting
in a decrease in gross profit over the previous year of #0.4 million. Managed
services revenues increased overall by 40 per cent and organically by 11 per
cent on the previous year, with contribution margins at 48 per cent compared
with 51 per cent last year.
The tables below show results extracted from the management accounts for the
period. Contribution is defined as gross profit less direct technical and sales
costs.
Consulting Year ended Year ended
30 September 30 September
2007 2006
#'000 #'000
Turnover 32,330 26,192
Gross profit 25,888 21,183
Contribution 6,876 4,714
Own Software Year ended Year ended
30 September 30 September
2007 2006
#'000 #'000
Turnover 23,625 21,456
Gross profit 21,468 18,390
Contribution 10,488 8,834
Managed Services Year ended Year ended
30 September 30 September
2007 2006
#'000 #'000
Turnover 36,348 26,042
Gross profit 30,535 22,350
Contribution 17,300 13,350
Third party licensing Year ended Year ended
30 September 30 September
2007 2006
#'000 #'000
Turnover 34,606 51,350
Gross profit 4,163 4,553
Contribution 2,748 3,365
Acquisitions
During the period Civica successfully completed the acquisition of VT Software
Solutions Ltd for #3.0 million in cash. A subsequent integration programme has
delivered savings and operational benefits ahead of expectations. The business
has performed well post-acquisition both in established areas of social housing
and vehicle asset management and in new areas including mobile service
management.
Civica remains active in reviewing potential complementary acquisition
opportunities to increase scale and capability in core markets.
People
Civica continues to attract highly skilled individuals with specific market and/
or technical expertise, supported by our increasing scale and reputation. As at
30 September 2007 the Group employed 1,340 people (2006: 1,131). During the year
Civica extended its company-wide management and employee development initiative
'Raising the Bar', with over 80 managers completing the programme. In addition a
'Customer First' service excellence programme was launched across the UK
business. The 'First Impressions' staff induction programme continued to
successfully integrate new starters into the business and in Singapore a
government-sponsored training partnership for new staff has been particularly
effective.
Dividend
The Board is once again proposing a final dividend, of 1.6 pence per ordinary
share to shareholders on the register at the close of business on 8 February
2008 which would make the total dividend paid for the year, 2.4 pence per
ordinary share (2006: 2.18 pence per ordinary share). If approved, the dividend
will be paid on 7 March 2008.
Outlook
We are pleased with the performance of the Group during the year, which
continued our record of profits growth and cash generation.
Notwithstanding the budget constraints within the UK public sector, we expect
the clear commitment to service transformation across the sector and the need to
secure significant system-based efficiencies to lead to consequent demand for
technology-based change programmes. Given Civica's market position and
investments made during the year which have increased both the scale and breadth
of capability, particularly in respect of our international operations, we
believe the outlook for the business remains positive. Current trading since the
start of the new financial year is in line with management's expectations.
I would like once again to extend the Board's thanks to all our staff for their
dedication and our customers and business partners for their continuing
commitment and support.
Laurence Vaughan
Non-executive Chairman
4 December 2007
Consolidated Profit & Loss Account
for the year ended 30 September 2007
Year Restated
ended Year
30 Sept 2007 ended
30 Sept 2006
-------- -------- -------- --------
#'000 #'000 #'000 #'000
Notes
Turnover
Existing Operations 121,558 104,967
Acquisitions 5,351 20,073
-------- --------
Turnover from continuing 126,909 125,040
operations
Cost of sales (44,854) (58,564)
-------- --------
Gross Profit 82,055 66,476
Administrative expenses (73,828) (65,068)
-------- --------
Operating profit before
amortisation, 21,560 18,517
exceptional items and LTIP
charges
LTIP charges 3 (2,203) (2,855)
Goodwill amortisation (8,501) (7,542)
Exceptional items 4 (2,629) (7,066)
-------- --------
(13,333) (17,463)
-------- --------
Operating profit
Existing operations 8,839 3,712
Acquisitions (612) (2,658)
-------- --------
Operating profit from
continuing operations 8,227 1,054
Interest payable (3,852) (2,878)
Interest receivable 604 510
-------- --------
Total interest payable (3,248) (2,368)
-------- --------
Profit/(loss) on ordinary
activities before taxation 4,979 (1,314)
Taxation (3,107) (855)
-------- --------
Profit/(loss) on ordinary
activities after taxation 1,872 (2,169)
Minority interests - (74)
-------- --------
-------- --------
Retained profit/(loss) for
the financial period 1,872 (2,243)
-------- --------
Earnings/(loss) per share 6
Basic 3.0p (3.8)p
Diluted 2.8p (3.8)p
-------- --------
Adjusted for the impact of
goodwill amortisation,
LTIP charges, exceptional
items and non-recurring
interest
Basic 22.0p 20.9p
Diluted 20.4p 19.5p
-------- --------
Statement of Total Recognised Gains and Losses
for the year ended 30 September 2007
Year Restated
ended Year
30 Sept 2007 ended
30 Sept 2006
--------- --------
#'000 #,000
Profit/(loss) for the period after taxation 1,872 (2,243)
Exchange gains/(losses) 449 (375)
Actuarial gains/(losses) 1,233 412
--------- --------
3,554 (2,206)
--------- --------
Consolidated Balance Sheet
as at 30 September
2007 Restated
2006
------------- -------------
#'000 #'000
Notes
Fixed assets
Intangible assets 7 146,868 149,477
Tangible assets 5,082 4,884
-------- --------
151,950 154,361
-------- --------
Current assets
Stocks 1,005 529
Debtors - due within one year 8 38,877 36,863
Cash at bank and in hand 15,915 13,455
-------- --------
55,797 50,847
Creditors: amounts falling due within 9 (58,955) (52,532)
one year
Net current liabilities (3,158) (1,685)
-------- --------
Total assets less current liabilities 148,792 152,676
Creditors: amounts falling due after
more than one year 10 (38,975) (44,718)
Provisions for liabilities and
charges 11 (1,074) (1,912)
-------- --------
Net assets before pension deficit 108,743 106,046
Pension deficit (1,256) (2,754)
-------- --------
Net assets 107,487 103,292
-------- --------
Capital and reserves
Share Capital 3,148 3,112
Share Premium 103,972 103,193
Profit and Loss Account 367 (3,435)
-------- --------
Capital and reserves attributable to
equity shareholders 107,487 102,870
Minority interests - 422
-------- --------
107,487 103,292
-------- --------
Consolidated Cash Flow Statement
for the year ended 30 September 2007
Year Year
ended ended
30 Sept 2007 30 Sept 2006
------------- -------------
#'000 #'000
Net cash inflow from operating activities 17,258 14,020
Returns on investments and servicing of
finance
Interest paid (3,056) (2,205)
Payment of arrangement fees - (188)
-------- --------
Net cash outflow from returns on
investments and servicing of finance (3,056) (2,393)
Taxation
Corporation tax paid (1,587) (2,127)
Capital expenditure
Payments to acquire tangible fixed assets (1,526) (1,532)
Payments to acquire intangible fixed (271) (216)
assets -------- --------
Net cash outflow from capital expenditure (1,797) (1,748)
Acquisitions
Purchase of subsidiary undertakings (4,119) (53,072)
Net cash acquired with subsidiary
undertakings 714 4,660
-------- --------
Net cash outflow from acquisitions (3,405) (48,412)
Equity dividends paid (1,408) (1,127)
Net cash inflow/(outflow) before financing 6,005 (41,787)
Financing
Issue of ordinary share capital 799 26,008
Share issue costs - (420)
New loans 3,300 25,000
Loans repaid (7,719) (5,000)
-------- --------
Net cash (outflow)/inflow from financing (3,620) 45,588
Increase in cash and cash equivalents in
the period 2,385 3,801
-------- --------
Notes to the Cash Flow Statement
Reconciliation of net cash inflow from operating activities
-------- --------
Year Year
ended ended
30 Sept 30 Sept
2007 2006
-------- --------
#'000 #,000
Operating profit 8,227 1,054
Depreciation and amortisation 10,098 8,837
LTIP charges 2,203 2,855
Loss on disposal of fixed assets - 1,121
(Increase)/decrease in stocks (476) 83
Decrease/(increase) in debtors and prepayments 177 (815)
(Decrease)/increase in creditors and accruals (2,971) 885
-------- --------
Net cash inflow from operating activities 17,258 14,020
-------- --------
Reconciliation of movement in net debt
As at Cash flow Non cash As at
changes
30 Sept 2006 30 Sept 2007
#'000 #'000 #'000 #'000
Cash at bank 13,455 2,385 75 15,915
Debt due within one year (7,407) - (1,412) (8,819)
Debt due after more than one
year (44,718) 4,419 1,324 (38,975)
--------- -------- -------- --------
(38,670) 6,804 (13) (31,879)
--------- -------- -------- --------
Notes to the Accounts
1. Financial information
The financial information set out in the announcement does not constitute the
Company's statutory accounts for the year ended 30 September 2007 but is derived
from those financial statements. The statutory accounts will be finalised on the
basis of the financial information presented by the directors in this
preliminary announcement and will be delivered to the registrar of companies
following the Annual General Meeting. The comparative information in respect of
the year ended 30 September 2006 has been derived from the audited statutory
accounts for the year ended on that date, and upon which an unqualified audit
opinion was expressed, which did not include a reference to any matters to which
auditors drew attention by way of emphasis without qualifying their report, and
which did not contain a statement under section 237(2) or (3) of the Companies
Act 1985.
This financial information has been prepared on the basis of the accounting
policies set out in the annual report and financial statements for the year
ended 30 September 2006 except as detailed in note 2 below.
2. Changes in accounting policy
During the year, the Group adopted FRS20 - 'Share-based Payment', which became
mandatory for all companies for accounting periods beginning on or after 1
January 2006. The Group has restated its results for the period to 30 September
2006 as appropriate. The adjustments that have been made are shown in note 13 to
the accounts.
3. LTIP charges
LTIP charges represent the amount chargeable to the profit and loss account in
the period in respect of the Long Term Incentive Plans, which were put into
place in March 2004 and December 2006. All awards made in March 2004 vested on
31 December 2006 and an assumption has been made that all awards put into place
in December 2006 will vest at the end of the three year performance period.
4. Exceptional items
Exceptional items in the year to 30 September 2007 comprise redundancy costs and
other expenses arising from rationalising the Group following recent
acquisitions, including VT Software Solutions Limited together with costs
associated with the aborted bid.
Notes to the Accounts (continued)
5. Dividends
-------- --------
Year Year
ended ended
30 Sept 30 Sept
2007 2006
-------- --------
#'000 #'000
Ordinary shares
Final dividend paid (1.45p (2006: 1.32p) per share) 905 673
Interim dividend paid (0.8p (2006:0.73p) per share) 503 454
-------- --------
1,408 1,127
-------- --------
The directors propose a final dividend in respect of the year to 30 September
2007 of 1.6 pence per share, amounting to a total dividend of #1,007,000. If
approved by shareholders at the Annual General Meeting on 27 February 2008 the
dividend will be payable on 7 March 2008 to shareholders on the register at the
close of business on 8 February 2008.
6. Earnings per share
Year Restated
ended Year
30 Sept ended
2007 30 Sept 2006
---------- ----------
Number of shares:
Basic weighted average number of shares in issue 62,637,916 58,396,867
Dilutive effect of share options 4,777,157 4,207,309
---------- ----------
Diluted weighted average shares in issue 67,415,073 62,604,176
---------- ----------
#'000 #'000
Earnings:
Profit/(loss) used in basic and ordinary earnings
per share 1,872 (2,243)
---------- ----------
Adjusted earnings:
Earnings used in basic earnings per share 1,872 (2,243)
add back LTIP charges after tax 1,542 1,958
add back goodwill amortisation 8,501 7,542
add back exceptional items after tax 1,840 4,946
---------- ----------
13,755 12,203
---------- ----------
Notes to the Accounts (continued)
7. Intangible assets
30 Sept
2007
-----------
#'000
Goodwill
As at 30 September 2006 149,076
Goodwill arising on the acquisition of VT Software Solutions 3,711
Limited
Goodwill arising on the acquisition of the minority interest of
Comino Connect Limited 383
Fair value adjustments on prior year acquisitions 1,527
Amortisation (8,501)
-----------
At 30 September 2007 146,196
Net assets acquired with VT Software Solutions Limited
Book value Fair value Provisional
adjustments Book Value
#'000 #'000 #'000
Intangible assets 901 (901) 0
Tangible fixed assets 323 (110) 213
Debtors 1,762 (672) 1,090
Cash at bank 714 714
Creditors due within one year (2,128) (284) (2,412)
-------- ----------- ----------
Net assets acquired 1,572 (1,967) (395)
Goodwill arising on acquisition 3,709
----------
Cash consideration and fees payable 3,314
----------
The cash consideration was funded by further borrowings from Royal Bank of
Scotland. Fair value adjustments comprise provisions for onerous contracts,
debtors and accrued income and adjustments resulting from alignment of
accounting policies in respect of capitalisation of fixed assets and internal
development costs. The goodwill on this acquisition and all previous
acquisitions is being written off over twenty years.
Notes to the Accounts (continued)
8. Debtors - due within one year
30 Sept 30 Sept
2007 2006
-------- ---------
#'000 #'000
Trade debtors 18,836 22,225
Accrued income 11,388 7,531
Other debtors and prepayments 4,589 3,816
Deferred tax 4,064 3,291
-------- ---------
38,877 36,863
-------- ---------
9. Creditors - due within one year
30 Sept Restated
2007 30 Sept
2006
-------- ---------
#'000 #'000
Bank loans and overdrafts net of arrangement fees 8,819 7,407
Trade creditors 8,530 8,882
Corporation and overseas tax 3,111 816
Other taxes and social security 3,777 4,239
Accruals and deferred income 34,717 31,188
-------- ---------
58,954 52,532
-------- ---------
10. Creditors - due after more than one year
30 Sept 30 Sept
2007 2006
-------- --------
#'000 #'000
Bank loans net of arrangement fees 38,975 44,718
-------- --------
11. Provisions for liabilities and charges
Property Other Total
provisions provisions
#'000 #'000 #'000
At 30 September 2006 1,562 350 1,912
Set up in the period 640 757 1,397
Utilised in the period (1,136) (1,099) (2,235)
-------- ----------- ----------
At 30 September 2007 1,066 8 1,074
-------- ----------- ----------
12. Consolidated statement of changes in capital and reserves
Share Share Profit and loss Total Minority Total
capital premium account interest equity
#'000 #'000 #'000 #'000 #'000 #'000
At 30 Sept 2006 (as originally
stated) 3,112 103,193 (3,105) 103,200 422 103,622
Prior year adjustment - FRS 20 (330) (330) (330)
At 30 Sep 2006 (restated) 3,112 103,193 (3,435) 102,870 422 103,292
Issue of ordinary shares 36 779 815 815
Long term incentive plan charge 1,674 1,674 1,674
Cost of LTIPs exercised (16) (16) (16)
Actuarial gains on pension
scheme (after tax) 1,233 1,233 1,233
Minority interests acquired (422) (422)
Profit for the year 1,872 1,872 1,872
Exchange differences 449 449 449
Dividends paid (1,408) (1,408) (1,408)
------------------------ -------- -------- -------- -------- -------- -------
At 30 Sept 2007 3,148 103,972 369 107,489 107,489
------------------------ -------- -------- -------- -------- -------- -------
13. Adjustments to the accounts following the adoption of FRS20
30 Sept 2006
--------
#'000
Effect on equity
Total equity as previously stated 103,622
Adoption of FRS 20 (330)
---------
Total equity as restated 103,292
---------
Effect on profit and loss account
Loss after tax as previously stated (1,889)
Adoption of FRS 20 (354)
---------
Loss after tax as restated (2,243)
---------
.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EAKADESDXFFE
Civica (LSE:CIV)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Civica (LSE:CIV)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024