24 JULY 2008
GB0009606764
ANS GROUP PLC
("ANS" or "the Group")
FINAL RESULTS
AND
FURTHER INTERIM DIVIDEND PAYMENT
The Board of ANS, the Plus-quoted leading IT and Telecoms Solutions provider, is pleased to
announce its Final Results for the year ended 31 March 2008, a period that has seen continual
improvements throughout all aspects of the Group.
HIGHLIGHTS
* Group revenues up by 64% to �10.29m (2007: �6.28m) exceeding �10m for the first time;
* Pre-tax profits up 120% to �1.4m (2007: �0.6m);
* Second interim dividend payment of 2.75p (2007: 1.65p);
* EPS growth of 155% to 10.5p (2007: 4.12p);
* Cash reserves �2.2m (2007: �1.69m);
* Annualised recurring revenues now at �3.2m (2007 �2.0m);
* Acquisition of RSS Web Limited;
* Profit of �252,949 on partial disposal of Smart Identity PLC and RSS Web Ltd;
* Successful flotation of Smart Identity PLC on Plus Markets raising �750,000;
* Successful Completion of both Cisco Silver Accreditation (March 2008) and Cisco Gold
Accreditation (July 2008);
* Unique situation of being the only reseller in the UK who has attained the top level
awards with Cisco, Microsoft, Novell and VMware.
---ENDS---
The directors take responsibility for the contents of this announcement.
ENQUIRIES
ANS GROUP PLC TEL: 0161 227 1000
Scott Fletcher, Chairman
scott.fletcher@ansgroup.co.uk
ST HELEN'S CAPITAL PLC TEL: 020 7628 5582
Barry Hocken
BISHOPSGATE COMMUNICATIONS LTD TEL: 020 7562 3350
Jenni Herbert
ansgroup@bishopsgatecommunications.com
Chairman's Statement
I am delighted to report another excellent year of growth for your business for the year ended
31st March 2008. This is the 7th consecutive year that we have been able to report continued,
solid and improved financial performance. During the year we have seen an increase in turnover of
�4m (64%) to break through �10m revenues for the first time. This has been matched by operating
profit growth of 98% to �1.07m.
These impressive results are testament to the hard work and dedication of everyone employed in the
business as well as the results of certain key strategic decisions taken by your board over the
last 18 months.
We have developed an excellent range of customers, which includes:
* Debenhams
* BUPA
* United Biscuits
* Interserve
* Clarins
* Countryside Properties
* ACAS
* CBRE
* First Response Finance
Both revenues and profitability have increased substantially in all three of our key solution
portfolios, this alongside significant growth in recurring revenues from our Syscare support
division.
Financials
Turnover has grown in all areas of the business, particularly the Unified Communications and
Wireless division. The majority of this growth has been organic, coming as a consequence of
investments in our Vendor relations and from cross selling opportunities from our acquisitions of
BIOS and RSS Web (previously Rivington Street Software).
The overall Gross Margin has increased by 47% to �3.2m whilst the Gross Margin percentage has
eased from 35% to 32% as a deliberate result of our strategy moving toward a more balanced mix of
services and product.
Operating profits have risen from �540,000 to �1,069,000 and have shown a growth in margin from 9%
to 10%. This is testament to the tight cost control of the Group and the scalability of the
business model.
The profit on partial disposal of �253,000 is a result of the effective dilution of ANS' holding
in Smart Identity to 31% following the fundraising on flotation.
The gain arises in the Group's consolidated accounts only and is non-taxable thereby reducing the
Group's effective taxation rate. This has been further reduced by the exercise of 806,225 share
options in the year which results in a corporation tax credit for the company. The reduction in
tax payable has further enhanced EPS which has grown from 4.12p to 10.50p. The normalised EPS for
2008 stands at 7.31p before taking into account the partial disposals and share option exercises.
During the year the company repurchased for cancellation a total of 664,350 shares for a cash
consideration of �0.5m. With this completed, the balance sheet remains well capitalised with no
debt and over GBP2.2m of cash.
Unified Communications and Wireless
Turnover growth of over 200% to �3.8m.
During the period we have invested over �500,000 in the development of a Cisco team, comprising of
sales and technical specialists, plus the appropriate key technical demonstration facilities. We
were rewarded with the Cisco Silver accreditation in March 2008, and since the year end we have
successfully become a member of the elite group of only 28 Cisco Gold Partners in the UK. This
accolade is one of the industry's highest awards for technical excellence and entitles the Group
to the best pricing of Cisco's products It also provides access to high level support, and
partnering with key Cisco technical staff on major projects. It puts us in the unique situation
of being the only reseller who have attained top level accreditations with Cisco, Microsoft,
Novell and VMware.
The division has made a significant contribution to the year's very healthy operating profit of
�1.07m and has been a justification of your board's decision to make important financial
investments in the Unified Communications arena with Cisco. Your directors continue to see this
area as a major part of our future growth plans.
Storage and Virtualisation
This division now accounts for nearly 50% of our business and has grown by 54% during the period.
Within our Storage and Virtualisation portfolio there have been some key strategic business wins.
Our product development team, in association with some of our key partners as well as with our
group partner company Smart Identity, have been working on a number of significant leading edge
solutions for the NHS market. Your board see this area as another important growth opportunity
with business benefits, such as ROI calculations and the environment benefits of server
consolidation, coming to the forefront of clients' decision making process
Security and Identity Management
Our smaller division, Security and Identity Management, has shown an increase of 42% over the
previous period. With protection of access and security of data highlighted regularly in the
press; our solutions have been developed to provide ease of access to disparate systems without
compromising security issues. Working closely with our key partners in this area has driven this
growth, and your board see the interest continuing throughout the coming year.
Syscare Support and Managed Services
This year has seen a reorganisation of our Syscare division. This has enabled the team to manage
all the recurring revenues in the business. The contracted support responsibilities of the group
have been extended throughout the year to the point that annualised recurring revenues now stand
at �3.2m (2007 �2.0m). I am delighted to recognise the excellent performance of our highly skilled
team. A 98% immediate successful customer response rate without the need to escalate problems to
vendors, and a 97% retention rate in our contract base both give testament to the extremely high
level of customer service provided.
Dividends
I am pleased to announce a further interim dividend of 2.75p (2007 1.65p). Having previously paid
1.25p (2007 .75p) this brings the year's total to 4.0p (2007 2.4p) an increase of 45% on the year.
Acquisitions
The Group acquired 100% of the issued share capital of RSS Web Limted (previously Rivington Street
Software Limited) in exchange for 10% of its holding in Smart Identity PLC. RSS Web has run
alongside the core ANS business with a number of excellent partnership opportunities arising. A
much more stable cost base, combined with a more focussed approach to the type of business that is
undertaken has seen the Group benefit from eight month performance figures of turnover of �257,000
and profit before tax a satisfactory �69,000.
In March 2008, RSS Web Limited raised GBP50,000 (before expenses) from external sources by the
issue of new shares, thereby reducing the group's effective shareholding in RSS Web Limited from
100% to 80%.
Smart Identity PLC
Following the successful flotation, raising GBP750,000 (before expenses) ANS now holds 31% of the
business and is able to partner with Smart Identity in developing key solutions - mainly for the
NHS and Local Government sectors. The strategy of separating the business and employing a
specialist development team has allowed both companies to focus on their strengths. The Group is
pleased with the financial results for the Smart Identity PLC for the year ending 31/3/08 which
can be viewed at
http://www.plusmarketsgroup.com/details.shtml?ISIN=GB00B23F8C32/GBP/PLUS-exn
Accreditations
Cisco Gold Certification (achieved post year end)
Novell Platinum
Microsoft Gold
VMware Enterprise
Awards
MicroScope ACES Awards 2008:
Networking/Comms Reseller of the Year.
National Business Awards:
Entrepreneur of the year Regional Winner and National Finalist - Scott Fletcher
Finalist in business innovation
PLUS Investor Awards:
Best Finance Director of a PLUS company awarded to Chris Malthouse
Hitachi Data Systems:
Deal of the Year 2008
North West Learner Awards:
Apprentice of the Year awarded to one of our Syscare staff, Michelle Officer
Crain's Business
40 under 40 award - Scott Fletcher
Corporate and Social responsibility
ANS Group is fully committed to being a good corporate neighbour and has moved to increase its
activity in this area. Group Chairman Scott Fletcher personally donated �10,000 in ANS' name to
fund the first prize in the 'New East Manchester Enterprize Competition, providing seed funding to
small businesses, a cause close to Scott's heart as he was born and brought up in East Manchester.
ANS have chosen two company charities in the Princes' Trust and Cauldwell Children. The Princes'
Trust help 100 young people per day to gain qualifications and life skills that will lead to a
better future. They particularly focus their efforts on young people, young people underachieving
in education, young people leaving care and young offenders.
Cauldwell Children is a charity that provides financial assistance to sick children, including
helping with medical requirements and providing 'dying wish' holidays. They also plan to provide a
building in Stoke-on-Trent to cater for the needs of disabled and sick children. Every penny
donated to the charity goes directly to the children. John Cauldwell - the charity's founder -
personally pays all management, administration and other running expenses.
ANS have already donated significant amounts to both charities and are now working to involve
staff in further fundraising efforts.
Working actively in its local community, ANS sponsor FC United of Manchester, a community football
club that is run on a democratic basis as an Industrial Provident Society. They are very active in
providing coaching in the Manchester community, and focus on offering affordable live football for
all sections of the community. FC United have been promoted in each of the three seasons that the
club has existed. Group Chairman Scott Fletcher serves on the club's board.
Furthering the community involvement, ANS also have an active involvement with Manchester Academy
which is located near to the group's offices in Moss Side. What was once a failing school in a
deprived area of the city, Manchester Academy is now a high performing centre of learning where
students develop a responsible attitude and approach to their own education. As the academy
specialises in teaching business and enterprise, ANS Group provides opportunity for small groups
of pupils to experience what industry first hand. Group Chairman Scott Fletcher sits on the
Academy's Board of Governors.
Green Policy
At ANS Group we recognise the impact we have on our environment and are committed to reducing both
our own and our clients' carbon footprints, and complying with all environmental legislation,
codes of practice and regulatory controls.
* At ANS Group we use technology for the benefit of all. Modern communications and IT equipment
enables us to reduce our energy consumption and paper usage.
* By using the latest in Unified Communications and Video conferencing technology we are able to
train our remote employees via broadband connections, thereby reducing CO2 emissions from
travelling.
* We have purchased a Smart Car enabling staff to cycle to work and still be able to visit
clients. Its fuel efficiency also reduces the carbon footprint and cost when used by staff, in
place of their own vehicles, to attend meetings.
* Some software installations have been implemented remotely, saving unnecessary travel. This also
applies to client-support as most queries and issues can be resolved remotely.
* We have virtualised our IT Server environment, leading to the group saving power, cooling
requirements and using a lower number of hardware devices.
* Recycling at work is at the heart of our culture and we operate a number of initiatives to
support this.
* As part of the Government's green transport plan we operate a Cycle to work scheme aimed at
giving employees tax benefits for cycling to work.
Outlook
Whilst your board is confident of a positive outlook in the current year, we are aware of the
negative sentiment that is prevalent in the media at present. Our first quarter performance has
been ahead of last year's in what is traditionally a slower quarter for spending than the rest of
the year. Even though we acknowledge that there is a slowdown in the economy generally, and that
business has become more difficult to close, the Group is operating in growth areas and has a
large public sector client base.
It is noticeable that more customers than ever before are focussing on the efficiencies, cost
benefits and Return on Investment (ROI) of their capital. We believe that the niche solutions that
are the main driver for our growth are in the key areas that address these requirements. Our
Unified Communications portfolio focuses very strongly on the efficiency and cost saving benefits
of cutting edge technology, whilst our storage and server virtualisation solutions provide
efficiency cost savings as well as green energy savings, which can be significant.
I would like to thank our key partners Cisco, Microsoft, Novell and VMware for their help and
cooperation in developing business solutions that are focussed on solving current business issues
in a value for money yet scaleable future-proofed manner.
We have also forged some very strong partnerships over the past few years with our major clients,
without whose loyalty and commitment we would have been unable to develop our solutions portfolio
to the current position. Over 50% of our customers have been trading with us for over 3 years and
I am delighted to say that our customers, partners and our loyal, professional staff are all key
contributors to the ANS success story.
The business has a clear growth strategy, to be realised through acquisitions and organic
expansion. Given the level of the Group's cash reserves, and with valuations of businesses being
depressed, we see the next 12 months as an ideal opportunity to investigate further acquisitions.
ANS GROUP PLC
Profit and Loss Account
Year ended 31 March 2008
2008 2007
Continuing Total Total
operations Acquisitions
� � � �
Turnover 10,028,598 257,443 10,286,041 6,280,370
Cost of sales (7,037,224) - (7,037,224) (4,075,945)
-------------- ----------------- ----------------- -----------------
Gross profit 2,991,374 257,443 3,248,817 2,204,425
Net operating expenses (2,003,321) (188,270) (2,191,591) (1,664,578)
-------------- ----------------- ----------------- -----------------
988,053 69,173 1,057,226 539,847
Share of associate operating 12,081 - 12,081 -
profit
-------------- ----------------- ----------------- -----------------
Operating profit 1,000,134 69,173 1,069,307 539,847
Profit on disposal of 252,949 - 252,949 37,710
investments
-------------- ----------------- ----------------- -----------------
Profit on ordinary activities before 1,253,083 69,173 1,322,256 577,557
interest
============= =================
Interest receivable 74,552 60,127
Interest payable and similar charges (1,940) (3,481)
-------------- -----------------
Profit on ordinary activities before taxation 1,394,868 634,203
Tax on profit on ordinary activities (78,929) (145,804)
-------------- -----------------
Profit on ordinary activities after taxation 1,315,939 488,399
Minority interests (27,927) (1,238)
-------------- -----------------
Profit attributable to members of the parent company 1,288,012 487,161
-------------- -----------------
Profit for the financial year 1,288,012 487,161
============= ================
Earnings per share (pence)
Basic 10.50 4.12
============= ===============
Diluted 9.90 3.65
============= ===============
ANS GROUP PLC
Group Balance Sheet
31 March 2008
2008 2007
� �
Intangible assets 801,071 724,690
Tangible assets 155,756 89,132
Investments 259,414 320,316
------------- --------------
1,216,241 1,134,138
------------- --------------
Current assets
Stocks - 749
Debtors 4,080,955 1,880,051
Investments 7,993 7,993
Cash at bank 2,217,266 1,687,487
------------- --------------
6,306,214 3,576,280
Creditors: Amounts falling due within one year (5,309,820) (2,906,994)
------------- --------------
Net current assets 996,394 669,286
------------- --------------
Total assets less current liabilities 2,212,635 1,803,424
Creditors: Amounts falling due after more than one year - (106,173)
------------- --------------
2,212,635 1,697,251
Provisions for liabilities
Deferred taxation (16,460) -
------------- --------------
2,196,175 1,697,251
Minority interests (16,777) (41,528)
------------- --------------
2,179,398 1,655,723
============= ==============
Capital and reserves
Called-up equity share capital 119,768 118,349
Share premium account 1,216,492 1,097,690
Other reserves 26,480 35,551
Profit and loss account 816,658 404,133
------------ -------------
Shareholders' funds 2,179,398 1,655,723
NOTES
All the activities of the Group are classed as continuing.
The Group has no recognised gains or losses other than the results for the year as set out
above.
These financial results have been audited by the Company's auditors CLB Coopers.
The above figures are an abridged version of the Group's audited accounts which carried an
unqualified audit report. The financial information included in this announcement does not
comprise statutory accounts within the meaning of Section 240 of the Companies Act 1985.
ANS Group Plc
Ansell (LSE:ANS)
Gráfica de Acción Histórica
De Nov 2024 a Dic 2024
Ansell (LSE:ANS)
Gráfica de Acción Histórica
De Dic 2023 a Dic 2024
