TIDMMNS
RNS Number : 9746L
Manpower Software PLC
21 January 2009
Manpower Software plc
("Manpower Software" or "the Company")
Interim Results for the six months to 30 November 2008
Manpower Software (AIM: MNS), the leading provider of workforce optimisation
solutions, today announces its interim results for the six months to 30 November
2008.
� Financial Highlights
� Revenue increased by 22% to GBP6.5m (2007: GBP5.3m)
o Licence revenue increased by 23% to GBP3.1m (2007: GBP2.5m)
o Services revenue increased by 21% to GBP3.4m (2007: GBP2.8m)
o Healthcare revenue increased by 52% to GBP4.5m (2007: GBP2.9m)
� Trading profit* increased by 27% to GBP0.78m (2007: GBP0.62m)
� Trading profit* margin of 12.1% (2007:11.5%)
� Diluted adjusted EPS (excluding share-based payments and amortisation of
intangibles) increased by 29% to 1.8p (2007: 1.4p)
� Cash balances as at 30 November 2008 of GBP2.8m
� Business Highlights
� MAPS Healthroster gained 21 new NHS Trusts customers (total at period end
stands at 59) with strong pipeline for H2
� Continued growth in the Defence sector with NATO Special Forces Coordination
Centre
� Geographic expansion continues with first sales into Malaysia
� Post Period Events
� First US Healthcare customer, Boston University Radiology Associates signs up
for MAPS Healthroster
� Acquired Baum Hart & Partners, provider of integrated software systems,
training and support services principally to the NHS - as a result of this
acquisition, the company's combined Healthcare customer base has now reached
over 230 NHS Trusts in the UK and three Private Healthcare providers (of which
two are overseas)
* Trading profit defined as profit before amortisation, share-based payments,
interest and tax
Ian Bowles, Chief Executive Officer commented: "Manpower Software continues to
make significant progress despite the economic downturn. We remain focussed on
strong organic growth and are pleased to report that all sectors of the business
have a strong pipeline of opportunities entering the second half of the year.
As a result, the Directors are confident that the company's performance for the
full year will be in line with their expectations."
Enquiries:
+------------------------------------------------+------------------------+
| Manpower Software | Tel: +44 (0) 20 7389 |
| Ian Bowles - Chief Executive Officer | 9500 |
| Simon Thorne - Chief Financial Officer | |
| | |
+------------------------------------------------+------------------------+
| Numis Securities | Tel: +44 (0) 20 7260 |
| Nominated adviser: Michael Meade / Brent Nabbs | 1000 |
| Corporate Broking: James Black | |
| | |
+------------------------------------------------+------------------------+
| Hansard Group | Tel: +44 (0) 20 7245 |
| Justine James | 1100 |
| John Bick | +44 (0) 7525 324 |
| | 431 |
| | +44 (0) 7872 061 |
| | 007 |
+------------------------------------------------+------------------------+
CHAIRMAN'S STATEMENT
Introduction
I am pleased to report continuing success for the group in the first six months
of the current financial year. Despite the economic downturn, Manpower Software
has achieved strong growth as well as broadening its addressable markets within
the UK and internationally.
Shortly before last year-end, the company made its first acquisition when it
purchased Key Information Technology Systems Ltd ("KITS"). The acquisition of
KITS established our position in the NHS temporary staffing solutions market,
bringing with it 90 new sites and enabling us to offer a fully integrated
e-rostering and bank staffing solution to both our own customers and those of
KITS.
Shortly after the interim period-end, the company made its second acquisition
when it purchased the business, goodwill and certain assets of Baum Hart &
Partners ("BHP"). The acquisition of BHP has consolidated our position in the
NHS temporary staffing solutions market, given that we have acquired the
technology platform StaffBank. The company also gained a significant, recurring
revenue stream in the form of support and maintenance, hosting and
transaction-based services, and the opportunity to expand the MAPS Health Suite
through the development of certain products of BHP. Further information relating
to this acquisition is given below.
Overall, the company continues to deliver on its strategy to be the leading
supplier of workforce optimisation solutions in its chosen markets.
Results
Revenue in the first half of the financial year was GBP6.5m (2007: GBP5.3m), an
increase over the same period last year of 22%. Trading profit for the period,
before adjustments for share-based payments and the amortisation of intangible
assets, was GBP0.78m (2007: GBP0.62m), an increase over last year of 27%. The
resulting trading profit margin was 12.1% (2007: 11.5%). Diluted adjusted EPS
(excluding share-based payments and amortisation of intangibles) increased by
29% to 1.8p (2007: 1.4p).
Licence revenue grew by 23% to GBP3.1m in comparison to the first half of 2007
(GBP2.5m), while Services revenue grew by 21% to GBP3.4m (2007: GBP2.8m). By
sector, Healthcare revenue in the period increased by 52% to GBP4.5m (2007:
GBP2.9m), reflecting the company's continuing expansion within the NHS and its
position as the supplier of choice for nurse rostering products. Defence
revenues in the period increased by 6% to GBP1.4m (2007: GBP1.3m) as the company
continued to deliver services to its existing customer base in this market
sector. Maritime revenues were 41% less than the prior year's period at GBP0.6m
(2007: GBP1.1m), reflecting a lack of new licence fees during the first half in
this market sector.
Cost of sales in the period increased from GBP3.7m to GBP4.6m as the company
developed its services business and we continued to add to our existing sales
capability. Administrative costs in the period were held broadly in line with
the same period last year at GBP1.0m, despite the acquisition of KITS.
Cash balances at the period-end were GBP2.8m (2007: GBP2.7m). This reflects an
increase in debtors of GBP2m subsequent to increased sales activity prior to the
period-end, an increase in trade and other payables (substantially new support
contracts) of GBP1m, and having spent GBP0.4m to acquire KITS in the second half
of the last financial year.
Organic growth
Excluding the acquisition of KITS made in April 2008:
* Revenue in the first half of the financial year was GBP6.1m (2007: GBP5.3m), an
increase over last year of 14%;
* Licence revenue grew 18% in comparison to the first half of 2007;
* Services revenue grew by 12%; and
* Healthcare revenue increased 39%.
KITS is now an integral part of the company's business. As a result, the costs
of KITS are not identified separately and it is not possible to state how much
of the period's trading profit and margin are separately attributable to KITS.
Significant activity in the period
The following significant activity occurred during the six month period to 30
November 2008:
* Healthcare. We added 21 new NHS Trusts to our customer base, making a total at
the period-end of 59. This is more than double the number of customers we had
twelve months ago (30 November 2007: 27) and continues the sequential growth
reported in prior periods. We have again broadened the addressable market and
now supply MAPS Healthroster to both acute and primary care NHS Trusts for
nurses, junior doctors and ancillary staff. Key to choosing MAPS Healthroster is
its ability to provide a better understanding of demand versus supply of
clinical staff, how this is balanced against efficient use of available budgets
and how it helps reduce the administrative burden for HR, clinical and payroll
staff, thereby improving patient care. MAPS Healthroster reduces costs
significantly and maintains Clinical Governance. In addition to the new
customers for MAPS Healthroster, we also added three new customers for our
market leading Bank Staff Management Solution ("BSMS"), the temporary staffing
solution. The award of these contracts brings the total number of NHS Trusts
which have selected BSMS to 106. International sales. In October we announced
the sale of MAPS Healthroster to our first customer in Malaysia, Sunway Medical
Centre ("SMC"). This is a significant milestone in our efforts to extend our
market reach for workforce optimisation and electronic rostering solutions into
other markets. Since the period-end, we have further extended our reach overseas
with a sale to Boston University Radiology Associates in the USA (refer
below). The company has a strong pipeline of opportunities for the second half.
* Defence. During the period we continued to enjoy success providing services to
our British and overseas customers. HQ Land Forces ("HQLF") expanded their
use of MAPS Defence Suite V6, introducing significant new functional and user
interface enhancements to their extensive and growing user community managing
the Collective Training Programme. Manpower Software has already trained over
3,000 MAPS users across the British Regular and Territorial Army, who between
them now manage over 200,000 Collective Training Events. HQLF also selected MAPS
Defence Suite to manage the capture of Recruitment Pipeline Management
Information for Distributed Individual Training in the Army Reserves. These
projects, coupled with the existing and highly significant MAPS Operational
Commitments Planning application ("OCP"), offer significant potential for the
company to expand MAPS' deployment into other, larger, pan-MoD contract
opportunities going forward. Our footprint in NATO continues to expand with the
recent introduction of a MAPS solution to support the newly established but
critical NATO Special Forces Command Centre ("NSCC") at its strategic
headquarters in Belgium. The Royal Fleet Auxiliary continued to work closely
with us to exploit the utility of their existing products. The Royal Australian
Navy is now in the process of rolling out its MAPS solution across the whole of
its frigate fleet.
* Service and Support. Revenues grew 21%, driven both by deliveries to new
customers and by growth in the installed base.
Significant activity since the period-end
The following significant activity has occurred since the period-end:
� In December 2008, we completed our second acquisition, being the business,
goodwill and certain assets of Baum Hart and Partners ("BHP"). This acquisition
closed on 17 December 2008. BHP is a provider of integrated software systems,
training and support services principally to the National Health Service
("NHS"). The acquisition of BHP has consolidated our position in the NHS
temporary staffing solutions market and extends our reach into other vertical
markets.
As a result of this acquisition, the company's combined
Healthcare customer base has now reached over 230 NHS Trusts in the UK and three
Private Healthcare providers (of which two are overseas).
� Also in December, we announced the sale of MAPS Healthroster to our first US
customer, Boston University Radiology Associates ("BURA"). As well as being a
first sale into a substantial overseas market, the USA, it is also a sale to a
new workgroup, radiologists.
� In January 2009, we signed an enterprise software licence agreement with our
existing customer Leighton Contractors Pty Limited ("LCPL") in Australia. This
agreement will enable LCPL to extend its use of the MAPS software throughout its
entire organisation.
� In January, we entered into an alliance partnership with NHS Shared Business
Services ("SBS"), a leading provider of payroll, finance and accounting services
to the NHS. The purpose of the agreement is to help NHS organisations realise
financial benefits through reduced administration, accurate payroll
data/enhanced hours and automatic entry of data to the Electronic Staff Record
system. SBS works with over 100 NHS organisations to provide outsourced payroll
services, which reduce management overheads and allow Trusts to focus on the
delivery of quality patient care. We believe the ability to combine payroll
services with the scheduling and employment of staff using MAPS Healthroster
will create an additional revenue opportunity for the company.
� Also in January, we signed a worldwide partnership agreement with a renowned,
blue chip software integrator. Initially, the agreement will focus on
opportunities for the company's health and defence products in the USA and
Australia.
Strategy
The management team continues to focus on the four core structural elements of a
successful software business.
* Linearity of licence revenues through consecutive periods. Revenue growth is
driven principally by the sale of new licences. Linear growth is therefore at
the heart of management's objectives and the company's determination to drive
shareholder value. First half licence revenues increased in comparison with the
previous year's first half, while a strong forward pipeline exists for the
second half of the financial year.
* Appropriate margins in service and support. Management continues to focus on
customer delivery, satisfaction and support, while achieving profitability at
the best industry standards.
* Investment. The company continues to target financial returns commensurate with
the best software companies worldwide. We continue to invest in our people, the
product, services and support, as well as new markets. This focus on improving
productivity at all levels continues to underpin the long term development of
the company. We use appropriate incentive structures, rigorous quarterly targets
and demanding criteria for all investment, thereby driving revenue growth and
optimising operating margins and free cash flow.
* Strict financial management. We continue to measure and monitor carefully all
financial ratios, maintaining a strict emphasis on achieving agreed operating
plans.
Outlook
The Directors note that, in the first half of this financial year, there has
been a particularly strong performance in the Healthcare sector. While we remain
focused on strong organic growth, further acquisition opportunities are being
considered against well defined criteria that support our strategic objectives.
All sectors of the business, including Maritime, have a strong pipeline of
opportunities entering the second half and, as a result, the Directors are
confident that the company's performance for the full year will be in line
with their expectations.
We are passionate about our customers and their success. By improving our
customers' business processes and making a positive impact we aim to create a
long-term mutually beneficial relationship that delivers sustainable value.
Finally, I would like to thank and recognise all Manpower Software's people for
their total commitment to the Company's continuing success.
Terry Osborne
CHAIRMAN
20 January 2009
INDEPENDENT REVIEW REPORT TO MANPOWER SOFTWARE PLC
INTRODUCTION
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
November 2008, which comprises the condensed, consolidated balance sheet, income
statement, statement of changes in equity and cash flow statement, and related
notes. We have read the other information contained in the half yearly financial
report, which comprises only the chairman's statement, and considered whether it
contains any apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
This report is made solely to the company in accordance with guidance contained
in ISRE (UK and Ireland) 2410, 'Review of Interim Financial Information
performed by the Independent Auditor of the Entity'. Our review work has been
undertaken so that we might state to the company those matters we are required
to state to them in a review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone
other than the company, for our review work, for this report, or for the
conclusion we have formed.
DIRECTORS' RESPONSIBILITIES
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. As disclosed in Note 2, the annual financial statements of
the group are prepared in accordance with IFRS's as adopted by the European
Union.
OUR RESPONSIBILITY
Our responsibility is to express to the company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
SCOPE OF REVIEW
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
CONCLUSION
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 30 November 2008 is not prepared, in all
material respects, in accordance with in accordance with the basis of accounting
described in Note 2.
GRANT THORNTON UK LLP
AUDITOR
LONDON
20 January 2009
CONDENSED CONSOLIDATED INCOME STATEMENT
+--------------------------------------+------+-------------+-------------+-----------+
| | | 6 months | 6 months | Year to |
| | | to | to | |
+--------------------------------------+------+-------------+-------------+-----------+
| | | 30 | 30 | 31 May |
| | | November | November | |
+--------------------------------------+------+-------------+-------------+-----------+
| | | (Unaudited) | (Unaudited) | (Audited) |
| | | 2008 | 2007 | 2008 |
+--------------------------------------+------+-------------+-------------+-----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------------+------+-------------+-------------+-----------+
| | Note | | | |
+--------------------------------------+------+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+------+-------------+-------------+-----------+
| Revenue | | 6,481 | 5,325 | 11,578 |
+--------------------------------------+------+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+------+-------------+-------------+-----------+
| Selling and operational expenses | | (4,648) | (3,743) | (7,700) |
+--------------------------------------+------+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+------+-------------+-------------+-----------+
| Gross profit | | 1,833 | 1,582 | 3,878 |
+--------------------------------------+------+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+------+-------------+-------------+-----------+
| Administrative expenses | | (1,049) | (967) | (2,028) |
+--------------------------------------+------+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+------+-------------+-------------+-----------+
| Profit before amortisation, | | 784 | 615 | 1,850 |
| share-based payments, interest and | | | | |
| tax | | | | |
+--------------------------------------+------+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+------+-------------+-------------+-----------+
| Amortisation of intangible assets | | (145) | - | (50) |
+--------------------------------------+------+-------------+-------------+-----------+
| Share-based payments | | (52) | (56) | (104) |
+--------------------------------------+------+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+------+-------------+-------------+-----------+
| Total administrative expenses | | (1,246) | (1,023) | (2,182) |
| including share-based payments | | | | |
+--------------------------------------+------+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+------+-------------+-------------+-----------+
| Operating profit | | 587 | 559 | 1,696 |
+--------------------------------------+------+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+------+-------------+-------------+-----------+
| Finance income | | 71 | 53 | 132 |
+--------------------------------------+------+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+------+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+------+-------------+-------------+-----------+
| Profit for the period before | | 658 | 612 | 1,828 |
| taxation | | | | |
+--------------------------------------+------+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+------+-------------+-------------+-----------+
| Tax on profit for the period | | (23) | 3 | (44) |
+--------------------------------------+------+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+------+-------------+-------------+-----------+
| Profit for the period | | 635 | 615 | 1,784 |
+--------------------------------------+------+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+------+-------------+-------------+-----------+
| Earnings per share | 4 | | | |
+--------------------------------------+------+-------------+-------------+-----------+
| Basic (pence per share) | | 1.4p | 1.4p | 4.0p |
+--------------------------------------+------+-------------+-------------+-----------+
| Diluted (pence per share) | | 1.3p | 1.3p | 3.8p |
+--------------------------------------+------+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+------+-------------+-------------+-----------+
CONDENSED CONSOLIDATED BALANCE SHEET
+--------------------------------------+-----+-------------+-------------+-----------+
| | | 30 | 30 | 31 May |
| | | November | November | |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | 2008 | 2007 | 2008 |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | (Unaudited) | (Unaudited) | (Audited) |
| | | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Non-current assets | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Intangible assets | | 650 | - | 795 |
+--------------------------------------+-----+-------------+-------------+-----------+
| Property, plant and equipment | | 566 | 176 | 521 |
+--------------------------------------+-----+-------------+-------------+-----------+
| Trade and other receivables | | 102 | - | 102 |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Total non-current assets | | 1,318 | 176 | 1,418 |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Current assets | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Trade and other receivables | | 4,288 | 2,290 | 2,566 |
+--------------------------------------+-----+-------------+-------------+-----------+
| Cash and cash equivalents | | 2,842 | 2,661 | 4,317 |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Total current assets | | 7,130 | 4,951 | 6,883 |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Total assets | | 8,448 | 5,127 | 8,301 |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Equity and liabilities | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Equity | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Share capital | | 2,235 | 2,234 | 2,235 |
+--------------------------------------+-----+-------------+-------------+-----------+
| Share premium account | | 6,493 | 6,492 | 6,493 |
+--------------------------------------+-----+-------------+-------------+-----------+
| Shares to be issued | | 159 | - | 159 |
+--------------------------------------+-----+-------------+-------------+-----------+
| Share-based payments reserve | | 365 | 266 | 314 |
+--------------------------------------+-----+-------------+-------------+-----------+
| Foreign exchange reserve | | 77 | - | 63 |
+--------------------------------------+-----+-------------+-------------+-----------+
| Retained earnings | | (4,464) | (6,188) | (5,099) |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Total equity | | 4,865 | 2,804 | 4,165 |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Non-current liabilities | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Borrowings | | 185 | - | 196 |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Total non-current liabilities | | 185 | - | 196 |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Current liabilities | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Trade and other payables | | 3,351 | 2,323 | 3,893 |
+--------------------------------------+-----+-------------+-------------+-----------+
| Corporation tax | | 47 | - | 47 |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Total current liabilities | | 3,398 | 2,323 | 3,940 |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Total liabilities | | 3,583 | 2,323 | 4,136 |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Total equity and liabilities | | 8,448 | 5,127 | 8,301 |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
The interim financial statements were approved by the Board of Directors on 20
January 2009.
I J Bowles - Director
S C Thorne - Director
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | Share | Share | Shares | Share | Foreign | Retained | Total |
| | capital | premium | to be | based | exchange | earnings | equity |
| | | | issued | payment | reserve | | |
| | | | | reserve | | | |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| At 31 May 2007 | 2,227 | 6,465 | - | 210 | 75 | (6,883) | 2,094 |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Exchange differences on opening | | | | | | | |
| reserves | - | - | - | - | 5 | - | 5 |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Net income recognised directly in | - | - | - | - | 5 | - | 5 |
| equity | | | | | | | |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Result for the period | - | - | - | - | - | 615 | 615 |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Total recognised income and | - | - | - | - | 5 | 615 | 620 |
| expense | | | | | | | |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Issue of shares | 7 | 27 | - | - | - | - | 34 |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Equity settled share options | - | - | - | 56 | - | - | 56 |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| At 30 November 2007 | 2,234 | 6,492 | - | 266 | 80 | (6,268) | 2,804 |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Exchange differences on opening | | | | | | | |
| reserves | - | - | - | - | (17) | - | (17) |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Net income recognised directly in | | | | | | | |
| equity | - | - | - | - | (17) | - | (17) |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Result for the period | - | - | - | - | - | 1,169 | 1,169 |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Total recognised income and | - | - | - | - | (17) | 1,169 | 1,152 |
| expense | | | | | | | |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Issue of shares | 1 | 1 | 159 | - | - | - | 161 |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Equity settled share options | - | - | - | 48 | - | - | 48 |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| At 31 May 2008 | 2,235 | 6,493 | 159 | 314 | 63 | (5,099) | 4,165 |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Exchange differences on opening | | | | | | | |
| reserves | - | - | - | - | 14 | - | 14 |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Net income recognised directly in | | | | | | | |
| equity | - | - | - | - | 14 | - | 14 |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Result for the period | - | - | - | - | - | 635 | 635 |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Total recognised income and | - | - | - | - | 14 | 635 | 649 |
| expense | | | | | | | |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Equity settled share options | - | - | - | 51 | - | - | 51 |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| At 30 November 2008 | 2,235 | 6,493 | 159 | 365 | 77 | (4,464) | 4,865 |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+-----------------------------------+----------+----------+----------+----------+----------+----------+----------+
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
+--------------------------------------+-----+-------------+-------------+-----------+
| | | 6 months | 6 months | Year to |
| | | to | to | |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | 30 | 30 | 31 May |
| | | November | November | |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | 2008 | 2007 | 2008 |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | (Unaudited) | (Unaudited) | (Audited) |
| | | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Cash flow from operating activities | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Profit for the period | | 635 | 615 | 1,784 |
+--------------------------------------+-----+-------------+-------------+-----------+
| Adjustments for: | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Finance income | | (71) | (53) | (132) |
+--------------------------------------+-----+-------------+-------------+-----------+
| Income tax charge / (credit) | | 23 | (3) | 44 |
+--------------------------------------+-----+-------------+-------------+-----------+
| Depreciation | | 71 | 47 | 99 |
+--------------------------------------+-----+-------------+-------------+-----------+
| Amortisation | | 145 | - | 50 |
+--------------------------------------+-----+-------------+-------------+-----------+
| Share-based payments | | 52 | 56 | 104 |
+--------------------------------------+-----+-------------+-------------+-----------+
| Increase in trade and other | | (1,723) | (549) | (614) |
| receivables | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| (Decrease) / increase in trade and | | (541) | 130 | 957 |
| other payables | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Net cash (used in) / generated from | | (1,409) | 243 | 2,292 |
| operations | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Income tax (paid) / refunded | | (23) | - | 3 |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Net cash (used in) / generated by | | (1,432) | 243 | 2,295 |
| operating activities | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Cash flows from investing activities | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Interest received | | 71 | 53 | 132 |
+--------------------------------------+-----+-------------+-------------+-----------+
| Investment to acquire subsidiary | | - | - | (386) |
| (net) | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Payments for property, plant and | | (114) | (69) | (154) |
| equipment | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Net cash used in investing | | (43) | (16) | (408) |
| activities | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Cash flows from financing activities | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Repayment of borrowings | | (11) | - | (4) |
+--------------------------------------+-----+-------------+-------------+-----------+
| Proceeds from the issue of equity | | - | 34 | 36 |
| shares | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Net cash (used in) / generated by | | (11) | 34 | 32 |
| financing activities | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Net (decrease)/increase in cash and | | (1,475) | 261 | 1,919 |
| cash equivalents | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Foreign exchange differences | | 11 | (9) | (11) |
+--------------------------------------+-----+-------------+-------------+-----------+
| Cash and cash equivalents at the | | 4,317 | 2,409 | 2,409 |
| start of the period | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| Cash and cash equivalents at the end | | 2,842 | 2,661 | 4,317 |
| of the period | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
| | | | | |
+--------------------------------------+-----+-------------+-------------+-----------+
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
1. Legal status and activities
The principal activities of the group are the sale and support of workforce
management solutions, and the provision of related IT services to major
government, industrial and commercial customers.
The principal trading subsidiaries of the group are: Manpower Software Worldwide
Limited, Key Information Technology Systems Limited and Key Systems Sdn Bhd,
companies which are involved in the sale, implementation and support of
workforce management solutions; and Manpower Software Inc, a company which is
involved in the sale and support of workforce management solutions.
The company is a public limited liability company incorporated and domiciled in
England and Wales. The address of its registered office is The Communications
Building, 48 Leicester Square, London WC2H 7LU.
The company has its listing on AIM, a market operated by the London Stock
Exchange.
2. Basis of preparation
These unaudited interim condensed consolidated financial statements are for the
six month period ended 30 November 2008. They do not include all the information
required for full annual financial statements and should be read in conjunction
with the consolidated financial statements of the group for the year ended 31
May 2008, which were prepared under IFRS as adopted by the European Union (EU).
The accounting policies adopted in this report are consistent with those of the
annual financial statements for the year to 31 May 2008 as described in those
financial statements.
New standards and interpretations currently in issue but not effective for
accounting periods commencing on 1 December 2007 are:
� IAS 1 Presentation of Financial Statements (revised 2007) (effective 1 January
2009)
� IAS 23 Borrowing Costs (revised 2007) (effective 1 January 2009)
� Amendment to IFRS 2 Share-based Payment - Vesting Conditions and Cancellations
(effective 1 January 2009)
� Amendments to IFRS 1 First-time Adoption of International Financial Reporting
Standards and IAS 27 Consolidated and Separate Financial Statements - Costs of
Investment in a Subsidiary, Jointly Controlled Entity or Associate (effective 1
January 2009)
� IFRS 3 Business Combinations (Revised 2008) (effective 1 July 2009)
� IFRS 8 Operating Segments (effective 1 January 2009)
The interim financial statements have not been audited. They have been reviewed
under ISRE 2410 of the Auditing Practices Board. The financial information
presented does not constitute statutory accounts as defined by section 240 of
the Companies Act 1985. The group's statutory accounts for the year to 31 May
2008 have been filed with the Registrar of Companies. The auditors, Grant
Thornton UK LLP reported on these accounts and their report was unqualified and
did not contain a statement under section 237(2) or 237(3) of the Companies Act
1985.
3. Segmental reporting
The group's primary reporting analysis is by business stream. The group's
principal activities are:
a) the provision of software under a licence agreement; and
b) the provision of services such as installation, consulting, training and
product support.
+----------------------------------------------------+------------------+-----------------+-------------+
| | | Revenue | |
+----------------------------------------------------+------------------+-----------------+-------------+
| | 30 November | 30 November | 31 May |
+----------------------------------------------------+------------------+-----------------+-------------+
| | 2008 | 2007 | 2008 |
+----------------------------------------------------+------------------+-----------------+-------------+
| | (Unaudited) | (Unaudited) | (Audited) |
+----------------------------------------------------+------------------+-----------------+-------------+
| | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------------------------+------------------+-----------------+-------------+
| | | | |
+----------------------------------------------------+------------------+-----------------+-------------+
| Licences | 3,043 | 2,476 | 5,756 |
+----------------------------------------------------+------------------+-----------------+-------------+
| Services | 3,438 | 2,849 | 5,822 |
+----------------------------------------------------+------------------+-----------------+-------------+
| | | | |
+----------------------------------------------------+------------------+-----------------+-------------+
| | 6,481 | 5,325 | 11,578 |
+----------------------------------------------------+------------------+-----------------+-------------+
Under IAS 14 there is a requirement to show operating profit for the primary
segmental analysis on the basis of the business stream as above. However,
attributable expenses cannot be allocated on a reasonable basis and, as a
result, the segmental analysis is limited to the group's revenue.
In addition to the requirements of IAS 14 the directors present a schedule of
revenue analysed by vertical business sector:
+----------------------------------------------------+------------------+-----------------+-------------+
| | | Revenue | |
+----------------------------------------------------+------------------+-----------------+-------------+
| | 30 November | 30 November | 31 May |
+----------------------------------------------------+------------------+-----------------+-------------+
| | 2008 | 2007 | 2008 |
+----------------------------------------------------+------------------+-----------------+-------------+
| | (Unaudited) | (Unaudited) | (Audited) |
+----------------------------------------------------+------------------+-----------------+-------------+
| | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------------------------+------------------+-----------------+-------------+
| | | | |
+----------------------------------------------------+------------------+-----------------+-------------+
| Defence | 1,371 | 1,296 | 3,082 |
+----------------------------------------------------+------------------+-----------------+-------------+
| Healthcare | 4,467 | 2,934 | 6,551 |
+----------------------------------------------------+------------------+-----------------+-------------+
| Maritime | 643 | 1,095 | 1,945 |
+----------------------------------------------------+------------------+-----------------+-------------+
| | | | |
+----------------------------------------------------+------------------+-----------------+-------------+
| | 6,481 | 5,325 | 11,578 |
+----------------------------------------------------+------------------+-----------------+-------------+
4. Earnings per share
+-----------------------------------------------------+--------------+--------------+--------------+
| | 30 November | 30 November | 31 May |
+-----------------------------------------------------+--------------+--------------+--------------+
| | 2008 | 2007 | 2008 |
+-----------------------------------------------------+--------------+--------------+--------------+
| | (Unaudited) | (Unaudited) | (Audited) |
| | GBP'000 | GBP'000 | GBP'000 |
+-----------------------------------------------------+--------------+--------------+--------------+
| | | | |
+-----------------------------------------------------+--------------+--------------+--------------+
| | | | 1,784 |
| Profit for the year | 635 | 615 | |
+-----------------------------------------------------+--------------+--------------+--------------+
| | | | |
+-----------------------------------------------------+--------------+--------------+--------------+
| Earnings per share | | | |
+-----------------------------------------------------+--------------+--------------+--------------+
| Basic (pence per share) | 1.4p | 1.4p | 4.0p |
+-----------------------------------------------------+--------------+--------------+--------------+
| Diluted (pence per share) | 1.3p | 1.3p | 3.8p |
+-----------------------------------------------------+--------------+--------------+--------------+
| | | | |
+-----------------------------------------------------+--------------+--------------+--------------+
| Weighted average number of shares | Number | Number | Number |
| | of shares | of shares | of shares |
+-----------------------------------------------------+--------------+--------------+--------------+
| | | | |
+-----------------------------------------------------+--------------+--------------+--------------+
| Shares in issue at opening | 44,702,625 | 44,539,813 | 44,539,813 |
+-----------------------------------------------------+--------------+--------------+--------------+
| Shares issued during the period | - | 144,812 | 162,812 |
+-----------------------------------------------------+--------------+--------------+--------------+
| | | | |
+-----------------------------------------------------+--------------+--------------+--------------+
| Shares at closing | 44,702,625 | 44,684,625 | 44,702,625 |
+-----------------------------------------------------+--------------+--------------+--------------+
| | | | |
+-----------------------------------------------------+--------------+--------------+--------------+
| Weighted average shares for basic earnings per | 44,702,625 | 44,547,831 | 44,621,541 |
| share | | | |
+-----------------------------------------------------+--------------+--------------+--------------+
| Effect of dilutive potential ordinary shares | 2,579,091 | 2,963,195 | 2,859,416 |
+-----------------------------------------------------+--------------+--------------+--------------+
| | | | |
+-----------------------------------------------------+--------------+--------------+--------------+
| Weighted average shares for diluted earnings per | 47,281,716 | 47,511,026 | 47,480,957 |
| share | | | |
+-----------------------------------------------------+--------------+--------------+--------------+
| | | | |
+-----------------------------------------------------+--------------+--------------+--------------+
Adjusted earnings per ordinary share
An adjusted earnings per share has been calculated in addition to the post tax
earnings per share which eliminates the effects of share-based payments and
amortisation of intangibles. It has been calculated to allow shareholders to
gain a clearer understanding of the trading performance of the group. The basis
of the calculation of the basic and adjusted profit per share is set out below:
+-------------------------------------------------------+----------------------------+--------------------------+--------------------------+
| | 30 | 30 | |
| | November | November | 31 May |
+-------------------------------------------------------+----------------------------+--------------------------+--------------------------+
| | 2008 | 2007 | 2008 |
+-------------------------------------------------------+----------------------------+--------------------------+--------------------------+
| | (Unaudited) | (Unaudited) | (Audited) |
| | GBP'000 | GBP'000 | GBP'000 |
+-------------------------------------------------------+----------------------------+--------------------------+--------------------------+
| | | | |
+-------------------------------------------------------+----------------------------+--------------------------+--------------------------+
| Profit for the year attributable to shareholders | 635 | 615 | 1,784 |
+-------------------------------------------------------+----------------------------+--------------------------+--------------------------+
| Share-based payments | 52 | 56 | 104 |
+-------------------------------------------------------+----------------------------+--------------------------+--------------------------+
| Amortisation of intangibles | 145 | | 50 |
| | | - | |
+-------------------------------------------------------+----------------------------+--------------------------+--------------------------+
| | | | |
| | - | - | - |
+-------------------------------------------------------+----------------------------+--------------------------+--------------------------+
| Adjusted profit for the year attributable to | 832 | 671 | 1,938 |
| shareholders | | | |
+-------------------------------------------------------+----------------------------+--------------------------+--------------------------+
| | | | |
+-------------------------------------------------------+----------------------------+--------------------------+--------------------------+
| Basic adjusted earnings per share | 1.9p | 1.5p | 4.3p |
+-------------------------------------------------------+----------------------------+--------------------------+--------------------------+
| Diluted adjusted earnings per share | 1.8p | 1.4p | 4.1p |
+-------------------------------------------------------+----------------------------+--------------------------+--------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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