RNS Number:4441S
CybIT Holdings PLC
25 November 2003
25th November 2003
Cybit Holdings Plc
Interim Results for the Six Months Ended 30 September 2003.
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 2003.
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2003 2002 2003
#'000 #'000 #'000
Turnover 3,999 2,235 5,066
Operating profit before
depreciation and goodwill
amortisation and interest
(EBITDA) 747 100 461
Profit/(loss) before tax 38 (473) (662)
Key points
*79% increase in turnover over corresponding period last year
*Company generates "maiden" profit before tax of #38,000 for the period
*Threefold increase in average customer fleet size now being supported by
Cybit's solution portfolio
*Upgrades to Fleetstar-Online portfolio with integration of SmartNav and
RAC Trackstar and enhancements to cybitfleet.com platform
*Significant progress made on indirect channels to market through
strategic partnerships with Lex Vehicle Leasing and brs Truck Rentals
*Major initiative launched to recruit telematics and fleet management
solutions resellers
*Institutional placing post period end raising #4.85 million net of
expenses
Neil Johnson, Chairman of Cybit commented:
"These results mark an important landmark for Cybit as the company moves into
profit for the first time. The business has continued to deliver results and has
had an excellent first six months of the year across our full range of services
and products.
The company is now well positioned to build on this success. From our strong
financial base we intend to build the business through both organic and
potential acquisition led growth and look forward to the future with
confidence."
For further information please contact:
Richard Horsman 01480 389100
Chief Executive, Cybit Holdings Plc
Jonathon Brill 0207 861 3232
Bell Pottinger Financial
Chairman's Statement
The first six months trading has delivered substantial revenue growth and it is
pleasing to be able to report a transition to profitability for Cybit Holdings
Plc. The Company continues to build its position as one of the fastest growing
and most innovative Telematics Service Providers, with a track record of
delivering return on investment for its customers and partners. The Company has
achieved profits before tax of #38,000 (2002: loss #474,000) on first half
revenues of #4.0 million. This represents substantial growth over both first and
second half performance in 2002 (#2.2 million and #2.8 million respectively).
Business update
Cybit now has around 450 customers in the United Kingdom with more than 8,000
fixed and mobile assets supported by our services. The volume of business has
doubled since the same period last year. The internet-based Fleetstar-Online
service continues to generate substantial revenues for the Company. The cost
reductions available to our customers through this product has led to an
increasing number of large fleets adopting the solution. This has resulted in
the average number of vehicles implemented per customer increasing from eight in
2002 to 24 at the end of September this year.
Revenue generated from non-hardware related sources has continued to increase
with #188,000 generated in the first half. Cybit has also completed a number of
consulting engagements and contracts with enterprises such as AWG Plc, Fountains
Plc and Ryder Plc. We will look to further develop these services in the future.
Technology
Cybit has continued to maintain competitive advantage through the evolution of
its technology platforms during the first half of 2003.
Your Board believes that the Fleetstar-Online platform is now one of the most
scalable solutions of its type available in the market today. In addition to
fleet management integrated with SmartNav off-board satellite navigation, the
Fleetstar-Online hardware platform has been further enhanced to support RAC
Trackstar stolen vehicle tracking. The internet-based software application has
also been subject to on-going development including a number of performance and
reporting enhancements.
The cybitfleet.com platform has been upgraded with a new reporting suite based
on similar capabilities offered with Fleetstar-Online. Cybit has also enhanced
the General Packet Radio Service (GPRS) solution within cybitfleet to include
two-way messaging. Interest in the GPRS offering is increasing as it allows for
the development of cost-effective, real-time tracking applications and the
transmission of volume data between vehicle and base over the GSM network.
Indirect channels
Cybit has increased its focus on the development of channels to market that will
allow the company to accelerate growth and increase market share. The existing
partnerships with Lex Vehicle Leasing and Norwich Union continue to evolve and
deliver revenues to the company. In particular, I am delighted to report that
our initial success with Lex has resulted in a new three year agreement which
includes the proposed integration of Cybit's Fleetstar-Online technology into
Lex's "Interactive Fleet Manager Offering".
Cybit has signed an agreement with one of its key customers - brs Truck Rental -
for whom Cybit is developing a "white label" version of the Fleetstar-Online
solution as an integral element of a brs branded telematics solution. This
integrated solution will be offered as a premium service to both new and
existing brs customers.
The Company has also launched a major drive to recruit telematics and fleet
management solutions resellers. Significant reseller contracts have been signed
with Vanguard Plc and Signature Industries together with agreements with a
number of smaller specialist companies.
Cybit expects revenues from indirect sources to continue to grow during the
second half.
Drive-IT Systems AB
Further progress has been made with the Drive-IT car sharing technology.
Customer satisfaction within the existing user base has substantially increased
and this has resulted in additional units being installed in a number of
customer fleets. Drive-IT is now looking to expand use of the system within the
commercial sector and is currently engaged in extensive trials with a number of
organisations and potential customers.
In the UK, Smartmoves has successfully migrated to the Drive-IT internet-based
booking system and are continuing to install the technology in new vehicles as
they continue to expand their management fleet.
Although revenues are still modest, the outlook for the Drive-IT solution is
encouraging.
Group financial performance
Consolidated turnover for the period was #4.0 million with a profit before tax
of #38,000. Underlying performance of Cybit Limited was a net profit of #178,000
for the period.
In July, #483,000 net of costs was raised by way of a small private placing.
This cash was used for continued development of the current product portfolio
and additional working capital necessary to support the business.
The Group continued to be net cash generative during the period. Cash in hand as
at 30 September 2003 had more than doubled to #944,000 compared with #470,000 at
31 March 2003.
Market placing
It is pleasing to note that the positive developments in the Company in the past
year have been recognised not only amongst our customers but amongst the
financial community. In early November the Company was therefore able to raise
#5 million (#4.85 million net of expenses) in a single cash-raising placement
with financial institutions and investment funds, through the Company's brokers
KBC Peel Hunt. This placing was achieved at a price of 3p per share which has,
of course, underlined the inherent potential value of the business.
Outlook
Although trading conditions within our major markets remain challenging, these
results mark an important landmark for Cybit as the company moves into profit
for the first time. The business has continued to deliver results and has had an
excellent first six months of the year across our full range of services and
products.
The company is now well positioned to build on this success. From our strong
financial base we intend to build the business through both organic and
potential acquisition led growth and look forward to the future with confidence.
Neil Johnson
25 November 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the 6 months ended 30 September 2003
Unaudited Unaudited Audited
6 months ended 6 months ended year ended
30 September 30 September 31 March
2003 2002 2003
# # #
Turnover 3,998,602 2,235,117 5,065,863
Cost of sales (1,450,144) (613,297) (1,294,095)
---------- ----------- -----------
Gross profit 2,548,458 1,621,820 3,771,768
---------- ----------- -----------
Administrative expenses
Other operating expenses (1,801,377) (1,522,122) (3,310,973)
Depreciation and goodwill
amortisation (178,119) (197,713) (389,445)
---------- ----------- -----------
Total administrative expenses (1,979,496) (1,719,835) (3,700,418)
---------- ----------- -----------
Operating profit/(loss) 568,962 (98,015) 71,350
Net interest and financing costs (530,565) (375,500) (857,945)
---------- ----------- -----------
Profit/(loss) on ordinary
activities before taxation 38,397 (473,515) (786,595)
Tax on profit/(loss)
on ordinary activities 20,000 - 125,000
---------- ----------- -----------
Retained profit/(loss)
transferred to/(from) reserves 58,397 (473,515) (661,595)
---------- ----------- -----------
---------- ----------- -----------
Earnings/(loss) per share
Basic 0.008p (0.07)p (0.10)p
Diluted 0.002p - -
---------- ----------- -----------
CONSOLIDATED BALANCE SHEET
As at 30 September 2003
Unaudited Unaudited Audited
6 months ended 6 months ended year ended
30 September 30 September 31 March
2003 2002 2003
# # #
Fixed assets
Intangible assets 728,932 932,159 839,091
Tangible assets 347,251 390,271 369,984
---------- ----------- -----------
1,076,183 1,322,430 1,209,075
Current assets
Stocks 136,289 128,023 145,688
Debtors: amounts falling due
after more than one year 914,714 635,364 865,178
Debtors: amounts falling due
within one year 1,471,460 781,334 1,092,621
Called up share capital
not paid 8,260 8,260 8,260
Cash at bank and in hand 944,393 310,410 470,016
---------- ----------- -----------
3,475,116 1,863,391 2,581,763
Creditors: amounts falling due
within one year (1,646,369) (995,366) (1,582,810)
---------- ----------- -----------
Net current assets 1,828,747 868,025 998,953
---------- ----------- -----------
Total assets less current
liabilities 2,904,930 2,190,455 2,208,028
Creditors: amounts falling due
after more than one year (765,674) (416,188) (687,929)
Provisions for liabilities
and charges (35,000) (140,000) (70,000)
---------- ----------- -----------
2,104,256 1,634,267 1,450,099
---------- ----------- -----------
Capital and reserves
Called up share capital 6,871,444 6,725,444 6,725,444
Share premium account 2,198,231 1,746,731 1,746,731
Other reserve (4,090,553) (4,090,553) (4,090,553)
Profit and loss account (2,874,866) (2,747,355) (2,931,523)
---------- ----------- -----------
Shareholders' funds 2,104,256 1,634,267 1,450,099
---------- ----------- -----------
The interim financial information was approved by the Board of Directors on 25
November 2003 and was signed on its behalf by
Richard Horsman - Chief Executive
Kevin Lawrence - Finance Director
CONSOLIDATED CASH FLOW STATEMENT
For the 6 months ended 30 September 2003
Unaudited Unaudited Audited
6 months ended 6 months ended year ended
30 September 30 September 31 March
2003 2002 2003
# # #
---------- ----------- -----------
Net cash inflow from
operating activities 679,078 515,312 1,184,111
---------- ----------- -----------
Returns on investments and
servicing of finance
Interest received - 4,650 7,085
Finance costs of assigning
debts to finance companies (517,322) (380,150) (860,066)
Interest paid (13,243) - (4,964)
---------- ----------- -----------
Net cash outflow from returns
on investments and servicing
of finance (530,565) (375,500) (857,945)
---------- ----------- -----------
Capital expenditure
Purchase of tangible fixed
assets (29,990) (27,428) (35,570)
Purchase of intangible
fixed assets (6,388) (76,533) (73,188)
Sale of tangible fixed
assets - 60,250 60,250
---------- ----------- -----------
Net cash outflow from
capital expenditure (36,378) (43,711) (48,508)
---------- ----------- -----------
Acquisitions
Purchase of business - - (100,000)
Purchase of subsidiary undertaking - - (21,901)
Net overdrafts acquired with
subsidiary undertaking - - (28,193)
---------- ----------- -----------
Net cash outflow from
acquisitions - - (150,094)
---------- ----------- -----------
Financing
Issue of shares 500,000 - -
Funds raised on sale and
leaseback of fixed assets - - 100,000
Repayment of long term loan (15,599) - -
Expenses paid in connection
with share issues (17,500) - -
Capital element of finance lease
rental payments (100,000) - -
---------- ----------- -----------
Net cash inflow from financing 366,901 - 100,000
---------- ----------- -----------
Increase in cash 479,036 96,101 227,564
---------- ----------- -----------
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
For the 6 months ended 30 September 2003
NET CASH INFLOW FROM OPERATING ACTIVITIES
Unaudited Unaudited Audited
6 months ended 6 months ended year ended
30 September 30 September 31 March
2003 2002 2003
# # #
---------- ----------- -----------
Operating profit/(loss) 568,962 (98,015) 71,350
Depreciation and
amortisation 178,119 197,713 389,445
Decrease/(increase) in stock 5,945 (58,899) 9,291
Increase in debtors (410,183) (207,814) (596,835)
Increase in creditors 165,762 235,882 (816,996)
Increase in deferred
income 90,473 446,445 563,864
Decrease in provisions for
liabilities and charges (35,000) - (70,000)
Issue of shares in lieu
of bonuses 115,000 - -
---------- ----------- -----------
Net cash inflow from
operating activities 679,078 515,312 1,184,111
---------- ----------- -----------
RECONCILIATION OF MOVEMENTS IN NET CASH
1 April 2003 Cash flow Other non-cash Exchange 30 September
changes movements 2003
# # # # #
-------- ------- ------- -------- ---------
Cash in hand and 470,016 473,811 - 566 944,393
at bank
Bank overdrafts (29,761) 5,225 - (1,435) (25,971)
-------- ------- ------- -------- ---------
440,255 479,036 - (869) 918,422
Finance leases
due in less
than one year (100,000) - 100,000 - -
Debts due
after more
than one year (59,523) 15,599 - (2,871) (46,795)
-------- ------- ------- -------- ---------
280,732 494,635 100,000 (3,740) 871,627
-------- ------- ------- -------- ---------
RECONCILIATION OF MOVEMENTS IN GROUP SHAREHOLDERS' FUNDS
Unaudited Unaudited Audited
6 months ended 6 months ended year ended
30 September 30 September 31 March
2003 2002 2003
# # #
---------- ----------- -----------
Profit/(loss)
for the period 38,397 (473,515) (661,595)
Issue of shares in
the period 615,000 - -
Costs of share
issues (17,500) - -
Other recognised
gains and losses in
the period (1,740) - 3,912
---------- ----------- -----------
Net increase/(decrease)
in shareholders' funds 634,157 (473,515) (657,683)
Opening shareholders'
funds 1,450,099 2,107,782 2,107,782
---------- ----------- -----------
Closing shareholders'
funds 2,084,256 1,634,267 1,450,099
---------- ----------- -----------
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 2003 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 2003.
3. The basic earnings/(loss) per share has been calculated based on the profit
on ordinary activities after taxation and the weighted average number of
ordinary shares of 0.1p each in issue for the period of six months to 30
September of 774,798,284 (September 2002: 672,544,350 and March 2003:
672,544,350).
4. 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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