TIDMBCT
RNS Number : 9781N
Business Control Solutions Grp PLC
27 February 2009
Friday 27 February 2009
BUSINESS CONTROL SOLUTIONS GROUP PLC
(the "Group")
Results for the year ended 31 December 2008
Return to profitability in challenging market conditions
Business Control Solutions Group plc ('the Group' or 'the Company') (BCT.L), the
AIM listed provider of consultancy and software control solutions to the
financial services sector announces its unaudited results for the year ended
31 December 2008.
+----------------------+--------------+--------------+----------+
| | 2008 | 2007 | Change |
| | GBP'000 | GBP'000 | |
+----------------------+--------------+--------------+----------+
| Turnover | 9,031 | 9,666 | -7% |
+----------------------+--------------+--------------+----------+
| Gross profit margin | 36% | 38% | -2% |
+----------------------+--------------+--------------+----------+
| Profit/loss before | 36 | (399) | ++% |
| tax | | | |
+----------------------+--------------+--------------+----------+
| Cash flow | 16 | (906) | ++% |
+----------------------+--------------+--------------+----------+
| Basic earnings and | 0.012p | -0.15p | ++% |
| loss per share | | | |
+----------------------+--------------+--------------+----------+
| Cash at bank | 2,782 | 2,766 | - |
+----------------------+--------------+--------------+----------+
Financial Highlights:
· Group turnover down 7%:
o Consulting revenues up 2% despite difficult market conditions
o Software revenues down 38% due to focus on three core strategic products
· Recurring revenues up to 64% of Software revenue (2007: 25%)
· Movement into profit
· Strong cash position of GBP2.8m at year end
· Cash positive for the year
Operating Highlights:
· Consulting division:
o Continued strong demand for consultancy services
o Significant new business wins
o Consultancy utilisation rate consistently above 85% throughout the year
o Re-defined and narrowed the division's service offer
· Software division:
o Significant progress made in focusing the division on its strategic products
o Integrity installed and rolled out successfully at our reference site,
Deutsche Bank
o Sale of next version Arc secured at HSBC
o Distribution agreement signed with a re-seller for OCA
o Further progress in transition of the revenue model to an annuity basis
Commenting on the results, Nigel Walder, CEO of Business Control Solutions Group
plc said:
"2008 has been a challenging year. The deepening of the financial crisis has had
a significant impact on our customers. We have responded to this by continuing
to redefine and narrow the focus of our service offering and have continued the
process, begun in 2007, of rationalising our cost base.
Despite these increased external pressures we are pleased to be able to report
increased revenue for the year from our Consulting business and continued
progress in growing recurring revenues in our Software business.
The financial crisis has brought the need for increased operational risk
management into focus. The need for effective risk management solutions
underpinned by monitoring and control processes is now widely accepted in the
financial services sector and we are seeing increased levels of interest in our
products and services. We believe this increased interest together with our
healthy cash balance and our ability to respond quickly to new sales
opportunities will enable us to end the year, when market conditions will
continue to be challenging, in a strong position."
Ends
For further information, please contact:
+--------------------------------------+----------+------------------------+
| Business Control Solutions Group plc | | 0207 648 2050 |
+--------------------------------------+----------+------------------------+
| Nigel Walder, CEO | | |
+--------------------------------------+----------+------------------------+
| Roger Shepherd, Finance Director | | |
+--------------------------------------+----------+------------------------+
| | | |
+--------------------------------------+----------+------------------------+
| Financial Dynamics Limited | | 0207 831 3113 |
+--------------------------------------+----------+------------------------+
| James Melville-Ross | | |
+--------------------------------------+----------+------------------------+
| Haya Chelhot | | |
+--------------------------------------+----------+------------------------+
| | | |
+--------------------------------------+----------+------------------------+
| Arbuthnot Securities Limited | | 020 7012 2000 |
+--------------------------------------+----------+------------------------+
| Tom Griffiths | | |
+--------------------------------------+----------+------------------------+
Chairman's Statement
We believe the business has performed creditably in what has been and remains a
challenging market environment. We have continued the process, begun in 2007, of
narrowing the focus of the business and have, by taking steps to slim down our
cost base, moved into profit for the year. This, allied to strong working
capital management, has left our cash position unchanged on 2007 and has ensured
we enter 2009 with a healthy cash balance.
Our Consulting business revenues held up well in a difficult market. This bears
testimony to the strength of our client relationships and our clients'
perception of the quality of the service we deliver. The business won several
important new accounts and with increased revenue across more engagements the
business starts 2009 from a position of strength.
In our Software business we have continued investing in our strategic products.
Our balance sheet substantiation product, Integrity, went live at Deutsche Bank,
our first client, and we also saw the first sale of our new version of Arc to
HSBC.We have made progress in improving the quality of our revenues and the move
to an annuity based model has reduced our reliance on non-recurring revenue.2009
is set to be another important year for our Software business: with a market
where the need for increased governance, risk management and control is becoming
widely accepted set against a general tightening of clients' budgets.
The well publicised difficulties experienced in the financial services sector
and the wider economy as a whole, which are expected to continue throughout
2009, will make for another challenging year. Our cash position together with
our strong management team provides me with confidence that we are well placed
to meet these challenges.
I'd like to finish by thanking all of our staff for their enthusiasm, commitment
and hard work during 2008.
Steve Russell
Chairman
27th February 2009 Chief Executive's Review
2008 has been a year of continued progress in tightening the focus in both of
our businesses. In the Consulting business we have sought to improve the quality
of our service delivery by narrowing our service offering to areas where we
believe our knowledge provides us with a genuine competitive advantage. In the
Software business we have continued the process of concentrating on our
strategic products. We have sought to reduce our reliance on one-off bespoke
projects and have continued investing significantly in getting our strategic
products ready for market.
Financial Performance
Revenue
Group revenues for the year at GBP9.0m were down 7% on 2007. The Consulting
business, in a difficult marketplace, achieved a 2% increase for the year on
2007. The Software business saw its revenues fall back by 38% on 2007 to
GBP1.26 million as a result of the Group's decision not to actively pursue
one-off bespoke solutions business. It is worth noting that the Software
division's 2007 revenues were significantly boosted by a large one-off bespoke
project. Removing the impact of this project, we are encouraged to see that the
underlying software business would have grown by 19% in 2008.
Contracted annuity revenues recognised during the year represented 64% of
Software revenue up from 25% in 2007, an increase of GBP290,000. Deferred income
as at 31 December 2008 was GBP158,000 down from GBP298,000 as at 31 December
2007.
Margin
Gross margin for the Group fell back 2% to 36% for the year principally due to
the stronger sales performance from the traditionally lower margin Consulting
division. The underlying margin in the Consulting business improved by 2
percentage points on 2007, as a result of the business focusing its service
offer on higher margin engagements and high staff utilisation with rates
approaching 90% for the year. The margin for the Software business reduced to
63% from 66%.
Operating expenses
Group operating expenses for the year, continue to be largely personnel-related,
and have fallen by 20% on 2007. During the year GBP514,000 of development costs
were capitalised (2007: GBP552,000). The sale and implementation of our
Integrity product saw us begin amortising our investment in Integrity and saw a
charge in the year of GBP147,000 (2007: GBPnil). Removing the impact of
development cost capitalisation and amortisation then, operating expenses have
fallen by GBP1,016,000. Reduced directors' emoluments and a lower charge for
share based payments account for GBP357,000 of this fall. The remainder of the
reduction stems from our strategy of concentrating the Software business on
building and selling our core strategic products allowing us to cut back on our
solution delivery capability with average heads employed in the Software
business in 2008 falling from 35 to 26.
Profit before tax
As a result of these tight cost controls, the Group recorded a profit before tax
for the year of GBP36,000 compared to a loss before tax of GBP399,000 for 2007.
Intangible assets
The Group concentrated its development efforts in the first half of the year on
completing and delivering its balance sheet substantiation product Integrity.
The development focus in the second half of the year was on our remaining two
strategic products: Agent Reconciliation and Control (Arc); and Operational
Control Architecture (OCA). At the balance sheet date the carrying value of our
investment in our strategic software products stood at GBP954,000 (2007:
GBP587,000).
Trade debtors
Trade debtor days outstanding have improved significantly falling to 38 from 61
in 2007.
Cash
The Group increased its cash by GBP16,000 leaving it unchanged at GBP2.8m. 2007
saw an outflow of GBP906,000. There are two principal factors behind this
improvement: operating cash before movements in working capital swung from an
outflow of GBP206,000 to an inflow of GBP225,000 and the improvement in debtor
days produced an inflow of GBP741,000. We invested GBP514,000 (2007: GBP552,000)
in building our strategic software products during the year.
Dividend
The Directors do not recommend the payment of a final dividend for the year
ended 31 December 2008 (2007: nil).
Consulting Division
The division had a successful year; achieving a growth of 2% in a difficult
market. The year saw us manage a significant amount of client churn as a number
of longstanding engagements came to an end. As a result more than half of our
revenue in 2008 came from new engagements up from 35% for 2007.
We have continued to focus our offering on the financial services sector. Our
aim is to become the leading specialist provider of management consultancy
services to the Capital Markets, Investment Management and Asset Servicing
sectors. During the year we have defined and targeted our service offerings on
the areas of Operational Risk & Control; Business Transformation; Client
Servicing; and Strategic Cost Management. We have invested in recruiting and
developing staff to ensure we have specific industry expertise and skills to
deliver a quality service to our clients. The division's business development
capability was significantly enhanced during the year through investing in
training existing personnel, recruiting those skills and developing our sales
collateral to fit with our newly defined service offerings.
Average headcount employed in the Consulting business remained unchanged on 2007
as we responded to market conditions by reining in our recruitment
plans.However, the current market environment is creating churn at some of our
competitors and we will continue selectively to recruit new consultants on an
opportunistic basis where we feel we can add important new skills to our
offering. We have worked hard at being more efficient in 2008 through defining
our service offering and managing our resource pool. Utilisation rates have
improved to close to 90% and the attrition rate has fallen. Both of these
factors have contributed to an improvement of 2% in gross margin.
Software Division
We are now firmly focused on our three strategic products:
1. Integrity - provides senior management of our client organisations
with transparency and enables greater control over the balance sheet
substantiation process. It provides management with confidence that the assets
and liabilities held on the company's balance sheet are accurately stated.
2. Operational Control Architecture (OCA) - gives senior management visibility
over their business processes identifying and prioritising any risk areas. The
product is currently operational in five leading banking groups.
3. Agent Reconciliation & Control (Arc) - the next generation of our existing
product, (Network Management), validates agent banks' invoices against system
generated expected fees and highlights any discrepancies for investigation.
This increased focus has enabled us to reduce the headcount engaged in our
Software business from an average of 35 to 26 and has contributed to the removal
of GBP700,000 of cost from the division. Our Software revenues have fallen back
as a direct consequence of our decision not to actively pursue our bespoke
solutions business and were down 38% on 2007. We have however, made progress in
transitioning the business into an annuity revenue model with more than half of
2009's target contracted as at 31st December 2008. Recurring revenues at 64% of
Software revenue for the year, up from 25% in 2007, grew 57% on 2007. Our
strategy remains to build the quality of our future revenue stream through
selling our new products on an annuity basis.
We have continued to invest in our strategic products with GBP514,000 of
internal labour development costs being capitalised during the year. Integrity
was completed and installed in the year at our reference client, Deutsche Bank,
and has now been deployed globally. Our development resource is now working on
our next version of Arc and on updating OCA.
Our sales and marketing efforts in 2008 were hampered by the delayed launch of
Integrity and the deepening financial crisis in the final quarter.However, we
have significantly expanded our sales reach during the year with two
distribution agreements being signed. In April we entered into a partnership
agreement with US based Enterprise Solution Providers Inc (ESP) to market and
sell Integrity to financial services firms in the U.S. Progress has been slow
here and the turmoil in the financial markets has prevented us from making any
real headway. In December we entered into a distribution agreement with Nimbus
Partners Limited for OCA. Nimbus markets a complementary product which, when
combined with OCA, should create a compelling proposition. Nimbus through its
sales force gives us significantly more sales reach which also extends to other
industry sectors. We are greatly encouraged by the progress made to date.
The financial crisis has brought the need for increased operational risk
management into even greater focus. The need for effective risk management
solutions underpinned by monitoring and control processes is now widely accepted
with operational control now no longer simply limited to ensuring banks' capital
ratios are in line with Basel II. There is now recognition of the need for
increased visibility and timely reporting to facilitate enhanced performance
monitoring. Both OCA and Integrity address these needs and we are seeing
increasing levels of interest in our products.
Employees
Group average headcount employed during the year fell by 12 to 98 of which 81
were permanent employees down from 93 in 2007. The decrease in headcount can be
attributed to the rationalisation of the Software business and increased
efficiencies within central corporate costs.
Strategy
Despite the current turbulence in our end markets, we remain committed to the
course that we have set the business on and believe that this is the right
strategy to deliver long term shareholder value.We continue to concentrate on
delivering a focused, high quality proposition to our customer base and on
tightly managing our cost base in order that we can present a strong and
predictable business proposition to our shareholders and customers.
The Consulting division is increasingly robust with revenues in 2008 now more
evenly distributed across a number of engagements. The Software division's goal
remains building and establishing Integrity, OCA and Arc as industry leading
products. 2009 has already seen an increased level of activity on the sales and
marketing front as we seek to capitalise on the renewed interest in the areas of
operational risk and control.
Current Trading and Outlook
The performance of the Consulting division in the year to date is in line with
its performance for the same period in 2008. However, due to the nature of our
assignments, visibility in this division is limited and historically to no more
than three months. We are therefore concentrating our efforts on building our
sales pipeline in what continues to be an extremely challenging market.
In the Software division we start the year with more than half of our budgeted
revenue for the year already contracted. Whilst, the increased interest in the
area of operational control and risk is encouraging we remain targeted on a
shrinking financial services sector where many of our potential customers are
operating under strict budgetary constraints.
We expect market conditions to remain challenging throughout 2009. However, our
healthy cash position, our agility, the strength of our client relationships and
our lean cost base give us confidence that we are well positioned to emerge from
2009 in a healthy state.
ND Walder
Chief Executive
27th February 2009
Consolidated Income Statement (Unaudited)
for the year ended 31 December 2008
+--------------------------------+--------+---------------+---------------+
| | Notes | 2008 | 2007 |
+--------------------------------+--------+---------------+---------------+
| | | GBP'000 | GBP'000 |
+--------------------------------+--------+---------------+---------------+
| Revenue | | 9,031 | 9,666 |
+--------------------------------+--------+---------------+---------------+
| Cost of Sales | | (5,758) | (6,002) |
+--------------------------------+--------+---------------+---------------+
| Gross Profit | | 3,273 | 3,664 |
+--------------------------------+--------+---------------+---------------+
| Operating expenses | | (3,333) | (4,188) |
+--------------------------------+--------+---------------+---------------+
| Exceptional item | | - | - |
+--------------------------------+--------+---------------+---------------+
| Loss before interest and | | (60) | (524) |
| taxation | | | |
+--------------------------------+--------+---------------+---------------+
| Interest receivable | 4 | 99 | 127 |
+--------------------------------+--------+---------------+---------------+
| Interest payable | | (3) | (2) |
+--------------------------------+--------+---------------+---------------+
| Profit/loss before taxation | | 36 | (399) |
+--------------------------------+--------+---------------+---------------+
| Taxation | | - | - |
+--------------------------------+--------+---------------+---------------+
| Profit/loss for the period | | 36 | (399) |
| attributed to equity | | | |
| shareholders | | | |
+--------------------------------+--------+---------------+---------------+
| | | | |
+--------------------------------+--------+---------------+---------------+
| Basic and diluted profit/ loss | | 0.01p | -0.15p |
| per share | 5 | | |
+--------------------------------+--------+---------------+---------------+
Consolidated Balance Sheet (Unaudited)
as at 31 December 2008
+--------------------------------+--------+---------------+---------------+
| | Notes | 2008 | 2007 |
+--------------------------------+--------+---------------+---------------+
| | | GBP'000 | GBP'000 |
+--------------------------------+--------+---------------+---------------+
| Assets | | | |
+--------------------------------+--------+---------------+---------------+
| Non current assets | | | |
+--------------------------------+--------+---------------+---------------+
| Intangible assets | 7 | 974 | 612 |
+--------------------------------+--------+---------------+---------------+
| Property, plant and equipment | | 155 | 197 |
+--------------------------------+--------+---------------+---------------+
| | | 1,129 | 809 |
+--------------------------------+--------+---------------+---------------+
| Current assets | | | |
+--------------------------------+--------+---------------+---------------+
| Trade and other receivables | 8 | 1,389 | 2,130 |
+--------------------------------+--------+---------------+---------------+
| Cash and cash equivalents | | 2,782 | 2,766 |
+--------------------------------+--------+---------------+---------------+
| | | 4,171 | 4,896 |
+--------------------------------+--------+---------------+---------------+
| Total assets | | 5,300 | 5,705 |
+--------------------------------+--------+---------------+---------------+
| Liabilities | | | |
+--------------------------------+--------+---------------+---------------+
| Current liabilities | | | |
+--------------------------------+--------+---------------+---------------+
| Trade and other payables | 9 | (1,401) | (1,855) |
+--------------------------------+--------+---------------+---------------+
| Non-current liabilities | | | |
+--------------------------------+--------+---------------+---------------+
| Loans and borrowings | | - | (11) |
+--------------------------------+--------+---------------+---------------+
| Deferred tax | | (1) | (1) |
+--------------------------------+--------+---------------+---------------+
| | | (1) | (12) |
+--------------------------------+--------+---------------+---------------+
| | | | |
+--------------------------------+--------+---------------+---------------+
| Net assets | | 3,898 | 3,838 |
+--------------------------------+--------+---------------+---------------+
| | | | |
+--------------------------------+--------+---------------+---------------+
| Equity | | | |
+--------------------------------+--------+---------------+---------------+
| Issued capital | | 2,714 | 2,714 |
+--------------------------------+--------+---------------+---------------+
| Share premium | | 3,303 | 3,303 |
+--------------------------------+--------+---------------+---------------+
| Shares to be issued | | 552 | 529 |
+--------------------------------+--------+---------------+---------------+
| Other reserves | | (308) | (308) |
+--------------------------------+--------+---------------+---------------+
| Retained earnings | | (2,363) | (2,400) |
+--------------------------------+--------+---------------+---------------+
| Total equity | | 3,898 | 3,838 |
+--------------------------------+--------+---------------+---------------+
Statement of Changes in Equity (Unaudited)
for the year ended 31 December 2008
+-------------------+---------+---------+---------+-----------+----------+---------+
| | Share | Share | Shares | Other | Retained | Total |
| | capital | premium | to be | reserves* | earnings | |
| | | account | issued | | | |
+-------------------+---------+---------+---------+-----------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------------+---------+---------+---------+-----------+----------+---------+
| 1st January 2007 | 2,714 | 3,303 | 367 | (297) | (2,039) | 4,048 |
| -(Restated) | | | | | | |
+-------------------+---------+---------+---------+-----------+----------+---------+
| Disposal of | | | | 12 | | 12 |
| shares by EBT | | | | | | |
+-------------------+---------+---------+---------+-----------+----------+---------+
| EBT adjustment | | | | | 38 | 38 |
+-------------------+---------+---------+---------+-----------+----------+---------+
| Shares purchased | | | | (23) | | (23) |
| by EBT | | | | | | |
+-------------------+---------+---------+---------+-----------+----------+---------+
| Options charge | | | 162 | | | 162 |
+-------------------+---------+---------+---------+-----------+----------+---------+
| Loss for the year | | | | | (399) | (399) |
+-------------------+---------+---------+---------+-----------+----------+---------+
| 31st December | 2,714 | 3,303 | 529 | (308) | (2,400) | 3,838 |
| 2007 | | | | | | |
+-------------------+---------+---------+---------+-----------+----------+---------+
| EBT adjustment | | | | | 1 | 1 |
+-------------------+---------+---------+---------+-----------+----------+---------+
| Options charge | | | 23 | | | 23 |
+-------------------+---------+---------+---------+-----------+----------+---------+
| Profit for the | | | | | 36 | 36 |
| year | | | | | | |
+-------------------+---------+---------+---------+-----------+----------+---------+
| At 31st December | 2,714 | 3,303 | 552 | (308) | (2,363) | 3,898 |
| 2008 | | | | | | |
+-------------------+---------+---------+---------+-----------+----------+---------+
*Other reserves includes Warrant, Own shares, Merger and Capital reserves.
Consolidated Cash Flow Statement (Unaudited)
for the year ended 31 December 2008
+---------------------------------------+------------+------------+
| | 2008 | 2007 |
+---------------------------------------+------------+------------+
| | GBP'000 | GBP'000 |
+---------------------------------------+------------+------------+
| Cash flows from operating activities | | |
+---------------------------------------+------------+------------+
| Loss before interest & taxation | (60) | (524) |
+---------------------------------------+------------+------------+
| Adjustments for: | | |
+---------------------------------------+------------+------------+
| Depreciation of property, plant and | 93 | 114 |
| equipment | | |
+---------------------------------------+------------+------------+
| Amortisation of intangible assets | 169 | 42 |
+---------------------------------------+------------+------------+
| Share options expense | 23 | 162 |
+---------------------------------------+------------+------------+
| Cash generated from operations before | 225 | (206) |
| changes in working capital | | |
+---------------------------------------+------------+------------+
| Movement in trade and other | 741 | (48) |
| receivables | | |
+---------------------------------------+------------+------------+
| Movement in trade and other payables | (445) | (104) |
+---------------------------------------+------------+------------+
| Net cash generated from operations | 521 | (358) |
+---------------------------------------+------------+------------+
| Income tax paid | | |
+---------------------------------------+------------+------------+
| Interest paid | (3) | (2) |
+---------------------------------------+------------+------------+
| Net cash generated from operating | 518 | (360) |
| activities | | |
+---------------------------------------+------------+------------+
| Cash flows from investing activities | | |
+---------------------------------------+------------+------------+
| Purchase of plant and equipment | (50) | (134) |
+---------------------------------------+------------+------------+
| Purchase of software | (17) | (9) |
+---------------------------------------+------------+------------+
| Interest received | 99 | 130 |
+---------------------------------------+------------+------------+
| Product development | (514) | (552) |
+---------------------------------------+------------+------------+
| Net cash used in investing activities | (482) | (565) |
+---------------------------------------+------------+------------+
| Cash flows from financing activities | | |
+---------------------------------------+------------+------------+
| Net proceeds from sale of shares by | - | 25 |
| EBT | | |
+---------------------------------------+------------+------------+
| Repayment of loan | (20) | (6) |
+---------------------------------------+------------+------------+
| Net cash generated in financing | (20) | 19 |
| operations | | |
+---------------------------------------+------------+------------+
| Net increase/ (decrease) in cash and | 16 | (906) |
| cash equivalents | | |
+---------------------------------------+------------+------------+
| Cash as at 1st January | 2,766 | 3,672 |
+---------------------------------------+------------+------------+
| Cash and cash equivalents at 31st | 2,782 | 2,766 |
| December | | |
+---------------------------------------+------------+------------+
Notes to the consolidated financial statements
1. Basis of preparation
The Group's financial statements have been prepared in accordance with IFRS and
IFRICS, as adopted by the EU, and the Companies Act 1985 applicable to companies
reporting under IFRS.
The financial information in the announcement is unaudited and does not
constitute the Company's statutory accounts for the years ended 31 December 2008
and 2007. The financial information for the year ended 31 December 2007 is
derived from the statutory accounts for that year, which were prepared under
IFRS, which have been delivered to the Registrar of Companies. The auditors
reported on those 2007 accounts; their report was unqualified, did not include
references to any matters to which the auditors drew attention by way of
emphasis without qualifying their reports and did not contain statements under
the Companies Act 1985, s 237 (2) or (3). The statutory accounts for the year
ended 31 December 2008 have not yet been reported on by the auditors. They will
be finalised on the basis of the financial information presented by the
directors in the preliminary announcement and will be delivered to the Registrar
of Companies following the Company's Annual General Meeting.
The financial information included in this announcement was approved by the
board of directors on 27th February 2009.
Business Control Solutions Group plc through its subsidiaries provides
management consultancy services and operational control software to financial
institutions. The Company's registered number is 02089155.
2. Segmental reporting
The Group's operations are managed and monitored in two business segments:
Consultancy Services and Software Solutions. Certain support activities are
monitored centrally and have been allocated on an estimated usage basis to the
business segments to produce the result below.
The directors consider the Group to trade in one geographical segment, the UK.
+--------------------------------+-------------+-------------+-------------+
| For the year to 31st December | Consultancy | Software | Total |
| 2008 | Services | Solutions | |
+--------------------------------+-------------+-------------+-------------+
| | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------+-------------+-------------+-------------+
| Segment revenue | 7,771 | 1,260 | 9,031 |
+--------------------------------+-------------+-------------+-------------+
| Segment result | 832 | (796) | 36 |
+--------------------------------+-------------+-------------+-------------+
| Segment assets | 1,174 | 1,344 | 2,518 |
+--------------------------------+-------------+-------------+-------------+
| Segment liabilities | 915 | 488 | 1,403 |
+--------------------------------+-------------+-------------+-------------+
During the year there was no inter-segmental revenue (2007: GBPnil).
+--------------------------------+-------------+-------------+-------------+
| For the year to 31st December | Consultancy | Software | Total |
| 2007 | Services | Solutions | |
+--------------------------------+-------------+-------------+-------------+
| | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------+-------------+-------------+-------------+
| Segment revenue | 7,621 | 2,045 | 9,666 |
+--------------------------------+-------------+-------------+-------------+
| Segment result | 578 | (978) | (399) |
+--------------------------------+-------------+-------------+-------------+
| Segment assets | 1,902 | 1,038 | 2,940 |
+--------------------------------+-------------+-------------+-------------+
| Segment liabilities | 1,149 | 718 | 1,867 |
+--------------------------------+-------------+-------------+-------------+
3. Employees and staff costs
+----------------------------------------------+------------+------------+
| | 2008 | 2007 |
+----------------------------------------------+------------+------------+
| | No. | No. |
+----------------------------------------------+------------+------------+
| The average number of persons employed | | |
| during the year was: | | |
+----------------------------------------------+------------+------------+
| Non-executive directors | 3 | 4 |
+----------------------------------------------+------------+------------+
| Office and management | 12 | 14 |
+----------------------------------------------+------------+------------+
| Sales and marketing | 2 | 3 |
+----------------------------------------------+------------+------------+
| Programming and solution delivery staff | 26 | 35 |
+----------------------------------------------+------------+------------+
| Consultants | 38 | 37 |
+----------------------------------------------+------------+------------+
| | 81 | 93 |
+----------------------------------------------+------------+------------+
+----------------------------------------------+------------+------------+
| | 2008 | 2007 |
+----------------------------------------------+------------+------------+
| | GBP'000 | GBP'000 |
+----------------------------------------------+------------+------------+
| Wages and salaries | 5,319 | 6,051 |
+----------------------------------------------+------------+------------+
| Social security costs | 620 | 705 |
+----------------------------------------------+------------+------------+
| Pension contributions | 134 | 42 |
+----------------------------------------------+------------+------------+
| | 6,073 | 6,798 |
+----------------------------------------------+------------+------------+
In addition to the staff costs above, there is a share options charge amounting
to GBP23,000 (2007: GBP162,000).
4. Finance income
+----------------------------------------------+------------+------------+
| | 2008 | 2007 |
+----------------------------------------------+------------+------------+
| | GBP'000 | GBP'000 |
+----------------------------------------------+------------+------------+
| Bank interest receivable | 99 | 127 |
+----------------------------------------------+------------+------------+
5. Profit/loss per share
Basic profit per share is calculated by dividing the Group's profit after
taxation of GBP36,000 (2007: loss GBP399,000) by the weighted average number of
shares in issue less the weighted average number of shares held by the EBT's
during the year of 269,689,195 (2007: 268,328,981).
6. Dividends
In the light of the retained loss for the year, the Directors do not recommend
the payment of a final dividend.
7. Intangible assets
Research expenditure is recognised as an expense as incurred. Costs incurred on
product development relating to the design, programming and testing of new or
enhanced products are capitalised as intangible assets after considering: the
probability that the development will provide economic benefits; its commercial
and technological feasibility; resource availability and whether costs can be
measured reliably. The expenditure capitalised is the direct employment costs
and is managed and controlled centrally. Other development costs are recognised
as an expense as incurred.
During the year GBP514,000 of development costs were capitalised (2007:
GBP552,000).
8. Trade and other receivables
+---------------------------------------------+------------+-------------+
| | 2008 | 2007 |
+---------------------------------------------+------------+-------------+
| | GBP'000 | GBP'000 |
+---------------------------------------------+------------+-------------+
| Trade receivables | 1,108 | 1,877 |
+---------------------------------------------+------------+-------------+
| Prepayments & accrued income | 281 | 253 |
+---------------------------------------------+------------+-------------+
| | 1,389 | 2,130 |
+---------------------------------------------+------------+-------------+
9. Trade and other payables
+---------------------------------------------+------------+-------------+
| | 2008 | 2007 |
+---------------------------------------------+------------+-------------+
| | GBP'000 | GBP'000 |
+---------------------------------------------+------------+-------------+
| Trade payables | 176 | 244 |
+---------------------------------------------+------------+-------------+
| Other payables | 323 | 357 |
+---------------------------------------------+------------+-------------+
| Accruals and deferred income | 902 | 1,245 |
+---------------------------------------------+------------+-------------+
| Hire purchase loan | - | 9 |
+---------------------------------------------+------------+-------------+
| | 1,401 | 1,855 |
+---------------------------------------------+------------+-------------+
10. Availability of this announcement
Copies of this announcement will be available from the Company's registered
office: Ground Floor, Churchgate, New Road, Peterborough, PE1 1TT and on the
Company's website www.bcsplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SELFWMSUSEIE
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