Interim Results

23 Mar 2005 07:00

Knowledge Technology Solutions PLC23 March 2005 RNS Release 23 March 2005 Interim results for the six months ended 31 December 2004 Knowledge Technology Solutions PLC (KTS), provider of professional financialinformation services, reports its unaudited results for the six months to 31December 2004. Financial and business highlights: • Turnover up 92% to £572,283 (2003: £298,323) • Following continued investment in research & development and additional exchange coverage, losses before tax of £419,898 (2003: £432,656) • Strong cash position of £2.3 million (2003: £1.1 million) • Total number of client organisations now stands at 130 • Accessibility and ease of use continue to stimulate client demand for KTS QuoteTerminal and KTS MarketTerminal Dr. Marc Pinter-Krainer, Chief Executive of KTS, said: "We have delivered strong revenue growth in the first six months reflecting theincreasing penetration of KTS QuoteTerminal and KTS MarketTerminal. Ourcommitment to customers and improving our services means we are confident ofcontinued growth in client numbers in the second half." Enquiries, please contact: Dr. Marc Pinter-Krainer Knowledge Technology Solutions PLC 020 7256 2300Oliver Scott KBC Peel Hunt Ltd 020 7418 8900Neil Boom/Jenny Leahy Gresham PR Ltd 020 7404 9000 Chief Executive's Statement KTS has made further good progress in the first half of the year, including adoubling of client organisations subscribing to the professional financialmarket data services KTS QuoteTerminal and KTS MarketTerminal. As a consequence of this growth, turnover in the period reviewed rose by 92% to£572,283 (2003: £298,323). The increase in turnover reflects the growing subscriber base, which now stands at more than 130 organisations. Losses before tax on ordinary activities were £419,898 (2003: £432,656)reflecting continued investment in our technology, extended exchange coverageand service enhancements. Our cash position remains strong at £2.3 million(2003: £1.1 million). Both our services have seen a considerable number of refinements and newfunctions. New content has been added as part of the standard subscription fee,including news from AFX International Focus on KTS MarketTerminal, and AFX UKFocus news on KTS QuoteTerminal. Also new to KTS QuoteTerminal is data on the performance of funds from leadingprovider Financial Express. Subscribers can now access information on more than8,000 funds including Unit Trusts and Open Ended Investment Companies. Development by our expanded technical team, headed by Stuart Calder, hasincluded new bespoke versions of KTS MarketTerminal that will operate onhandheld platforms including wireless Personal Digital Assistants (PDAs) such asthe Blackberry. As in previous years, we have maintained accounting best practice by writing offdevelopment costs as incurred. In addition to improving our technology base and services, we have established acustomer service team. The main attraction of KTS MarketTerminal and KTS QuoteTerminal is that they arevery user-friendly and require no installation of infrastructure, hardware orsoftware. They are based on our "zero-client" application service technology andconsequently are simplicity itself to deploy. The cost of ownership and ongoingsupport is attractive when compared to competing market data suppliers, and theapplication service is easily accessible from any location. These factorscontinue to stimulate increased client interest in our services. Following his involvement with KTS as non-executive chairman since 2003, GavinCasey has indicated that he is looking to reduce his current commitments and aspart of this he has advised the board that he intends to step down in duecourse. At the same time we are seeking an independent director to join theboard. Gavin's skills and experience have been greatly appreciated and we extendour warm thanks and wish Gavin well for the future. Outlook We have delivered strong revenue growth in the first six months reflecting theincreasing subscription levels of KTS QuoteTerminal and KTS MarketTerminal. Ourcommitment to customers and improving our services means we are confident ofcontinued growth both in client numbers and revenues in the second half. Dr. Marc Pinter-KrainerChief Executive23 March 2005 KNOWLEDGE TECHNOLOGY SOLUTIONS PLC CONSOLIDATED PROFIT & LOSS ACCOUNT FOR THE SIX MONTHS ENDED 31 DECEMBER 2004 Period ended Period ended Year ended 31 December 31 December 30 June 2004 2003 2004 (unaudited) (unaudited) (audited) Notes £ £ £ Turnover 3 572,283 298,323 770,185Distribution costs (529,795) (289,443) (686,722)Administrative costs (519,787) (455,606) (1,062,895) ---------- ------------ ------------Operating loss (477,299) (446,726) (979,432)Interest receivable 57,401 14,070 39,271 ---------- ------------ ------------ Loss on ordinary activitiesbefore taxation (419,898) (432,656) (940,161) Taxation on loss onordinary activities 4 - - 92,071 ---------- ------------ ------------ Loss on ordinary activitiesafter taxation (419,898) (432,656) (848,090) Dividends 5 - - - ---------- ------------ ------------Retained loss (419,898) (432,656) (848,090) ========== ============ ============ Basic earnings perordinary share 6 (0.28)p (0.38)p (0.71)p ========== ============ ============Diluted earnings perordinary share 6 (0.28)p (0.38)p (0.71)p ========== ============ ============ All of the results relate to continuing operations. There are no recognised gains and losses other than the loss for the period. KNOWLEDGE TECHNOLOGY SOLUTIONS PLC CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2004 As at As at As at 31 December 31 December 30 June 2004 2003 2004 (unaudited) (unaudited) (audited) Notes £ £ £ Fixed assetsTangible fixed assets 194,952 181,923 175,677 ----------- ----------- --------- Current assetsDebtors 162,419 142,727 113,586Cash at bank and in hand 2,270,839 1,107,486 2,702,533 ----------- ----------- --------- 2,433,258 1,250,213 2,816,119 Creditors: amounts fallingdue within one year (278,665) (178,417) (234,053) ----------- ----------- --------- Net current assets 2,154,593 1,071,796 2,528,066 ----------- ----------- --------- Total assets less currentliabilities 2,349,545 1,253,719 2,757,743 =========== =========== ========= Capital and reservesCalled up share capital 148,275 119,443 148,015Share premium account 4,777,574 2,875,248 4,766,134Profit and loss account (2,576,304) (1,740,972) (2,156,406) ----------- ----------- --------- Equity shareholders' funds 9 2,349,545 1,253,719 2,757,743 =========== =========== ========= KNOWLEDGE TECHNOLOGY SOLUTIONS PLC CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2004 Period ended Period ended Year ended 31 December 31 December 30 June 2004 2003 2004 (unaudited) (unaudited) (audited) Notes £ £ £ Net cash outflow fromoperating activities 7 (449,842) (392,503) (809,156) --------- ----------- ----------- Returns on investment andservicing of finance Interest received 57,401 14,070 39,271 --------- ----------- ----------- Net cash inflow from returns oninvestments and servicing offinance 57,401 14,070 39,271 --------- ----------- ----------- TaxationCorporation tax refund - - 92,071 --------- ----------- -----------Net cash inflow from taxation - - 92,071 --------- ----------- -----------Capital expenditurePurchase of tangible fixedassets (50,953) (28,568) (53,598) --------- ----------- -----------Net cash outflow fromcapital expenditure and financialinvestment (50,953) (28,568) (53,598) --------- ----------- -----------Net cash outflow beforefinancing (443,394) (407,001) (731,412) --------- ----------- -----------Financing Issue of share capital 11,700 1,123,018 3,123,019Expenses paid in connectionwithshare issues - (47,776) (128,319) --------- ----------- -----------Net cash inflow fromfinancing 11,700 1,075,242 2,994,700 --------- ----------- ----------- (Decrease)/Increase in cash 8 (431,694) 668,241 2,263,288 --------- ----------- ----------- All cash flows relate to continuing operations. KNOWLEDGE TECHNOLOGY SOLUTIONS PLC NOTES TO THE INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2004 1 Basis of preparation The interim financial information in respect of the six months ended 31 December2004 is unaudited and has been prepared on the basis of the accounting policiesset out in the company's audited accounts for the year ended 30 June 2004.The financial information contained in this statement does not constitutestatutory accounts. Statutory accounts for the year ended 30 June 2004 receivedan unqualified audit report and have been filed with the Registrar of Companies. 2 Continuing activities All of the activities are continuing. 3 Turnover All of the turnover arises in the United Kingdom. 4 Taxation As a result of losses available no liability to corporation tax is expected toarise. 5 Dividends The Directors do not recommend the payment of an interim dividend. 6 Earnings per ordinary share The basic earnings per ordinary share has been calculated by dividing the losson ordinary activities after tax attributable to shareholders by the weightedaverage number of ordinary shares in issue during the period which carry theright to receive a dividend. The diluted earnings per ordinary share has been calculated as above on thebasis of full exercise of options and warrants. 7 Reconciliation of operating loss to net cash outflow from operating activities Period ended Period ended Year ended 31 December 31 December 30 June 2004 2003 2004 £ £ £ Operating loss (477,299) (446,726) (979,432)Depreciation of fixed assets 29,066 31,594 62,869Loss on disposal of fixed assets 2,612 - -(Increase)/Decrease in debtors (48,833) (53,723) (24,582)Increase in creditors 44,612 76,352 131,989 --------- ----------- -----------Net cash outflow from operatingactivities (449,842) (392,503) (809,156) --------- ----------- ----------- 8 Reconciliation of net cash flow to movement of liquid funds Period ended Period ended Year ended 31 December 31 December 30 June 2004 2003 2004 £ £ £ Net funds at start of period 2,702,533 439,245 439,245(Decrease)/Increase in cash for theperiod (431,694) 668,241 2,263,288 --------- ----------- -----------Net funds at end of period 2,270,839 1,107,486 2,702,533 --------- ----------- -----------Net funds at the end of the period relate to cash at bank and in hand. 9 Reconciliation of movement in shareholders' funds Period ended Period ended Year ended 31 December 31 December 30 June 2004 2003 2004 £ £ £ Loss for the period (419,898) (432,656) (848,090)New share capital issued less costs 11,700 1,075,242 2,994,700 --------- ----------- -----------Net (reduction)/additions duringthe period (408,198) 642,586 2,146,610Opening shareholders' funds 2,757,743 611,133 611,133 --------- ----------- -----------Closing shareholders' funds 2,349,545 1,253,719 2,757,743 --------- ----------- ----------- This information is provided by RNS The company news service from the London Stock Exchange