TIDMPGC
RNS Number : 1968U
Prologic plc
19 December 2011
Prologic plc
("Prologic" or the "Company")
Interim Results for the six months ended 30 September 2011
Prologic plc, a specialist provider of software, services and
consultancy to the fashion & lifestyle sector, announces its
interim results for the six months ended 30 September 2011.
Financial Highlights
-- Revenue GBP4.37m (2010: GBP4.94m)
-- Recurring revenues up 4% to GBP2.71m (2010: GBP2.61m),
representing 62% of total revenue
-- Gross profit GBP1.76m (2010: GBP2.12m)
-- Adjusted administrative expenses* reduced by 14% to GBP1.76m
(2010: GBP2.04m)
-- Adjusted operating profit* GBP12,000 (2010: GBP84,000)
-- Operating loss GBP510,000 (2010: profit GBP84,000)
*Before costs of business restructure
Operational Highlights
-- First customer upgrades to CIMS Enterprise Version 8 and CIMS
PoS Series 8 successfully completed
-- New customer contract award from Heidi Klein
-- Business restructure implemented reducing the cost base by
GBP1.12m annualised
-- First customer implementation completed (post period end)
using Prologic's new Up&Running rapid deployment
methodology
Tom Fischer, Chief Executive Officer, commented:
"I am pleased to report that, although market conditions have
remained challenging throughout the period, Prologic has performed
profitably (before restructuring costs) in the first half. In
addition, we have seen positive customer uptake of our major new
software releases, with several customers adopting these ahead of
Christmas trading. Meanwhile our SaaS model saw further success
with the award of a new contract from Heidi Klein, who also adopted
Prologic's new Up&Running rapid implementation methodology.
Having implemented a restructuring of the business in June, our
cost base will reduce by GBP1.12m on an annualised basis - although
the benefits of this action are not yet fully reflected in our
results. Management is now focusing on securing additional
resources to further strengthen the Company's prospects and to this
end we have today announced a strategic review of the
business."
Further information:
Prologic plc 01442 876 277
Tom Fischer, Chief Executive David Parry, Finance Director
Arbuthnot Securities Limited 020 7012 2000
Ed Groome
Biddicks 020 3178 6378
Zoe Biddick
Prologic plc
Interim Results 2011
Chairman's Statement
Overview
I am pleased to announce that despite difficult trading
conditions in the retail sector, the Company continued to perform
profitably (before restructuring costs) during the first half.
Although revenue for the period at GBP4.37m was GBP567,000 lower
than the corresponding period last year, we achieved an adjusted
operating profit (calculated before restructuring costs) of
GBP12,000, which was GBP72,000 less than recorded last year. This
was largely due to the cost savings that resulted from a
restructure of the business, which was completed in June. The
business now has a simpler, leaner management structure with
clearer lines of responsibility, and the cost base has been reduced
by GBP1.12m on an annualised basis, without decreasing headcount in
the key customer-facing departments of Support and Professional
Services.
During the period we have seen solid activity within our
customer base, fuelled by the recent launch of two major new
software releases. Both CIMS Enterprise Version 8 and CIMS PoS
Series 8 have been well received by customers who have upgraded
ahead of the Christmas trading period.
The period also saw us securing luxury holiday clothing
specialist Heidi Klein as our latest SaaS customer, who also used
our new Up&Running rapid implementation approach. Prologic has
designed the Up&Running methodology to leverage industry best
practice through a suite of pre-configured business templates. This
has enabled Heidi Klein to complete its implementation for both
head office and stores in a matter of weeks. This success is
evidence that Prologic has broadened its market to include
earlier-stage fashion businesses, a sector where we are seeing
growing interest in our technology.
Financial results
Revenue for the half year decreased to GBP4.37m from GBP4.94m in
the first 6 months of the previous year. However, recurring
revenues from annual licence fees, support and managed services
increased to GBP2.71m from GBP2.61m, and represented 62% of total
revenue (2010: 53%). Gross profit for the period was GBP1.76m
(2010: GBP2.12m) and the gross margin was 40% (2010: 43%).
Administrative expenses, before the costs of the business
restructure, reduced by GBP294,000 to GBP1.75m, primarily due to
decreased sales overheads and amortised development costs. There
was a tax credit of GBP74,000 (2010: GBP80,000), which principally
arose from the availability of R&D tax credits. The adjusted
operating profit, which was calculated before the costs of the
business restructure, was GBP12,000 (2010: GBP84,000) and there was
an unadjusted operating loss of GBP510,000 (2010: profit
GBP84,000).
The period end cash balance and net cash position was GBP790,000
(2010: GBP1.56m). From a cash flow perspective, the business has
not yet benefited from the reduction in the cost base and has had
to absorb additional costs associated with the restructure. The
Company continues to carefully monitor and manage its cash
position, and during the period has secured short-term funding
arrangements.
Mindful of the ongoing challenging trading conditions, we have
successfully implemented measures to reduce our cost base, which
will fully benefit the Company towards the end of the current
financial year. Management is now seeking to secure additional
resources with a view to further strengthening the business. To
this end, in a separate statement issued today, we have announced
the appointment of Cobalt Corporate Finance to undertake a
strategic review of the business.
Dividend
The directors are not proposing an interim dividend.
Outlook
Despite difficult market conditions, it is encouraging to see
that many of our customers are continuing to trade well. Our latest
software releases deliver advanced functionality that drives
operational efficiency and enhances the customer experience. These
capabilities in tandem with a more cost effective operating
platform are proving attractive and we anticipate that more of our
customers will upgrade over the coming months. By augmenting our
SaaS offering with a rapid deployment methodology, we have
significantly reduced the time, effort and cost of implementing the
CIMS suite and believe we are now well placed to secure further new
customers during the remainder of the financial year.
Colin Wells
Chairman
16 December 2011
Prologic plc
Interim Results 2011
Statement of comprehensive income
Unaudited Unaudited Audited
six months six months
to to Year to
30 September 30 September 31 March
2011 2010 2011
GBP'000 GBP'000 GBP'000
-------------------------------------- --------------- ---------------- -------------------
Revenue 4,374 4,941 9,859
Cost of sales (2,616) (2,817) (5,376)
Gross profit 1,758 2,124 4,483
Administrative expenses (2,268) (2,040) (12,266)
Operating profit before exceptional
items 12 84 21
Impairment and de-recognition
of intangible assets - - (7,804)
Restructuring costs (522) - -
-------------------------------------- --------------- ---------------- -------------------
Operating (loss)/profit (510) 84 (7,783)
Financial income 2 1 3
Financial expenses (2) (5) (8)
Profit before tax (510) 80 (7,788)
Taxation 74 80 787
(Loss)/profit and total comprehensive
(expense)/income for the period (436) 160 (7,001)
-------------------------------------- --------------- ---------------- -------------------
Pence Pence Pence
Loss/earnings per share - basic
and diluted (4.36) 1.60 (70.01)
There were no discontinuing operations for any of the above
periods.
Prologic plc
Interim Results 2011
Statement of financial position
Unaudited Unaudited Audited
30 September 30 September 31 March
2011 2010 2011
GBP'000 GBP'000 GBP'000
--------------------------------- --------------- ---------------- -------------------
Non-current assets
Goodwill 2,483 7,572 2,483
Development costs 3,478 5,160 3,084
Other intangible assets 84 138 114
Property, plant and equipment 340 390 412
6,385 13,260 6,093
--------------------------------- --------------- ---------------- -------------------
Current assets
Inventories 139 151 120
Trade and other receivables 2,629 4,295 2,638
Current tax 293 299 320
Cash and cash equivalents 790 1,561 1,232
--------------------------------- --------------- ---------------- -------------------
3,851 6,306 4,310
--------------------------------- --------------- ---------------- -------------------
Total assets 10,236 19,566 10,403
--------------------------------- --------------- ---------------- -------------------
Current liabilities
Trade and other payables (2,559) (2,520) (2,288)
Deferred revenue (2,506) (3,194) (2,345)
(5,065) (5,714) (4,633)
--------------------------------- --------------- ---------------- -------------------
Net current assets/(liabilities) (1,214) 592 (323)
--------------------------------- --------------- ---------------- -------------------
Non-current liabilities
Deferred revenue (545) (1,137) (758)
Deferred tax liabilities (631) (1,105) (569)
--------------------------------- --------------- ---------------- -------------------
(1,176) (2,242) (1,327)
--------------------------------- --------------- ---------------- -------------------
Total liabilities (6,241) (7,956) (5,960)
--------------------------------- --------------- ---------------- -------------------
Net assets 3,995 11,610 4,443
--------------------------------- --------------- ---------------- -------------------
Equity
Share capital 50 50 50
Share premium account 2,734 2,734 2,734
Merger reserve - 3,924 -
Other reserve 54 72 66
Retained earnings 1,157 4,830 1,593
--------------------------------- --------------- ---------------- -------------------
Total equity 3,995 11,610 4,443
--------------------------------- --------------- ---------------- -------------------
Prologic plc
Interim Results 2011
Cash flow statement
Unaudited Unaudited Audited
six months six months
to to year to
30 September 30 September 31 March
2011 2010 2011
GBP'000 GBP'000 GBP'000
-------------------------------------- --------------- ---------------- -------------------
Cash flows from operating activities
Operating (loss)/profit (510) 84 (7,783)
Adjustments for:
Amortisation of intangible assets 408 676 1,401
Impairment and de-recognition
of intangible assets - - 7,804
Depreciation of property, plant
and equipment 93 95 194
Share option (credit)/charge (12) 4 (2)
(Increase) in inventories (19) (35) (4)
Decrease/(increase) in receivables 9 (572) 1,084
Increase/(decrease) in payables 271 (167) (399)
(Decrease)/increase in deferred
income (52) 1,126 (102)
-------------------------------------- --------------- ---------------- -------------------
Cash generated by operations 188 1,211 2,193
Interest received 2 1 3
Interest paid (2) (1) (2)
Tax repaid 163 - 149
-------------------------------------- --------------- ---------------- -------------------
Net cash from operating activities 351 1,211 2,343
-------------------------------------- --------------- ---------------- -------------------
Cash flows from investing activities
Development expenditure (763) (1,005) (2,318)
Purchase of other intangible assets (9) (17) (44)
Purchase of property, plant and
equipment (21) (38) (159)
-------------------------------------- --------------- ---------------- -------------------
Net cash used in investing activities (793) (1,060) (2,521)
-------------------------------------- --------------- ---------------- -------------------
Net cash (outflow)/inflow before
financing (442) 151 (178)
-------------------------------------- --------------- ---------------- -------------------
Cash flows from financing activities
Repayment of bank loan - (41) (41)
-------------------------------------- --------------- ---------------- -------------------
Net (decrease)/increase in cash
and cash equivalents (442) 110 (219)
Cash and cash equivalents at start
of the period 1,232 1,451 1,451
-------------------------------------- --------------- ---------------- -------------------
Cash and cash equivalents 790 1,561 1,232
-------------------------------------- --------------- ---------------- -------------------
Prologic plc
Interim Results 2011
Statement of changes in equity
Share
Share premium Merger Other Retained Total
capital account reserve reserve profit equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------------------------- ------- ------- ------- ------- -------- -------
At 31 March 2010 50 2,734 3,924 68 4,670 11,446
Profit and total comprehensive income for the period - - - - 160 160
Transactions with owners:
Share option charge - - - 4 - 4
----------------------------------------------------- ------- ------- ------- ------- -------- -------
At 30 September 2010 50 2,734 3,924 72 4,830 11,610
Loss and total comprehensive expense for the period - - - - (7,161) (7,161)
Transactions with owners:
Share option credit - - - (6) - (6)
Release of merger reserve (3,924) 3,924 -
----------------------------------------------------- ------- ------- ------- ------- -------- -------
At 31 March 2011 50 2,734 - 66 1,593 4,443
Loss and total comprehensive expense for the period - - - - (436) (436)
Transactions with owners:
Share option credit - - - (12) - (12)
----------------------------------------------------- ------- ------- ------- ------- -------- -------
At 30 September 2011 50 2,734 - 54 1,157 3,995
----------------------------------------------------- ------- ------- ------- ------- -------- -------
Notes to the Financial Statements
1. Basis of preparation
These interim condensed financial statements (the statements)
are comprised of the unaudited results for the six months to 30
September 2011 together with comparative unaudited results for the
six months to 30 September 2010 and audited results for the year
ended 31 March 2011. They do not include all of the information
required for full annual financial statements.
The financial information included in the statements for the
year ended 31 March 2011 does not constitute the statutory accounts
for that year. The Company's statutory financial statements for the
year ended 31 March 2011 have been filed with the Registrar of
Companies and include an auditor's report which was unqualified and
did not contain a statement under section 498(2) or section 498(3)
of the Companies Act 2006.
The statements have been prepared in accordance with the
accounting policies adopted in the last annual financial statements
for the year to 31 March 2011. The accounts are prepared under the
historical cost convention and are prepared in accordance with the
recognition and measurement principles of IFRS.
Details of the assumptions surrounding the going concern basis
are set out in the financial results section of the Chairman's
Statement above. Based on these and the satisfactory outcome of a
strategic review announced today, the Board believes it continues
to be appropriate to adopt the going concern basis in the
preparation of this interim statement.
2. Segmental Analysis
The business and IT solutions that Prologic provides to its
customers are all based around a single software product, Prologic
CIMS, and resources across the Company are focused on developing,
implementing and supporting these solutions. The Company is
therefore reported as a single operating segment, in accordance
with IFRS 8.
3. Earnings per share
Earnings per share is calculated by dividing the earnings
attributable to shareholders by the number of shares in issue
during the period.
The weighted average number of shares in issue during the period
was 10,000,000 (basic and diluted).
4. Approval
The interim results were approved by the Board on 16 December
2011 and are available on the Company's website
(www.prologic.com).
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR MMMMZRVDGMZM
Prologic (LSE:PGC)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Prologic (LSE:PGC)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024
