RNS Number:7497Z
Access Plus PLC
1 March 2001
Please note that this announcement replaces announcement 7092Z made earlier
today in which Note 4 to the accounts stated the record date for dividends as
14 April which should have been 17 April as stated in paragraph 4 of the
Chairman's Statement.
ACCESS PLUS PLC
Preliminary results for the year ended 31 December 2000
Access Plus, the Bristol based provider of print related marketing services,
announces its preliminary results for the year ended 31 December 2000 - its
fifth set of full year results since being admitted to the Alternative
Investment Market, in November 1996.
* Earnings per share* increased by 22%
* PROFIT BEFORE TAX* increased by 25%
* Gross PROFIT increased by 25%
* DIVIDENDS increased by 18%
* ACQUISITION DEBT (5 July 2000) reduced by 56%
* before goodwill amortisation
- Earnings per share (before goodwill amortisation) have increased by 22%.
Since flotation, Access Plus has continued to increase basic earnings per
share strongly and consistently, from 7.68p to 18.65p per share.
- Commenting on 2000's trading performance, Tim Brettell, the Chairman
said, "These results reflect our successful focus on winning large clients
through print management. This market now accounts for 51% of our
revenue."
- "The acquisition of Software Stationery Holdings Limited has provided
another extensive platform of repeat business from a substantial customer
base, as well as cross selling opportunities and extra skills for the
Access Plus group."
- "The AIM Company of the Year award, in October 2000, is also a fitting
recognition of the consistent achievements of all the team at Access Plus.
This award, together with our Royal Warrant, are symbols of the high
quality of our work, and your Company."
"We again have an exciting time ahead, as we seek to repeat the
acquisition adding value process. Much of the work so far has not yet
reached the bottom line but with reduced operating costs and sales ahead of
last year, all the signs are very encouraging."
"The Directors look forward with confidence to a period of continued
growth over the next few years."
For further information:
Tim Brettell Barrie Newton Ken Rees
Access Plus PLC Rowan Dartington Winningtons
Tel: 0117 317 9477 (1 March 2001) Tel: 0117 925 3377 Tel: 0117 317 9477
Tel: 0117 933 1000 (thereafter)
CHAIRMAN'S STATEMENT
FINANCIAL RESULTS
These year end results show, for the fifth consecutive time since flotation,
the sales, profit and cashflow performance of your Company fully meeting
expectations. In the year to 31 December 2000, net profit before goodwill
amortisation and tax grew by 25% to #4.707m (1999 - #3.769m). This result
includes a six-month contribution from Software Stationery Holdings Limited ("
SSS") acquired on 5 July 2000. As a result of accounting requirements
relating to the disclosure of goodwill amortisation, this headline profit
before tax is recorded as #4.110m (1999 - #3.441m).
Basic earnings per share have also increased by 22% to 18.65p (1999 - 15.27p).
Following the same goodwill related accounting requirements, the headline
basic earnings per share rose to 15.34p (1999 - 13.35p). This growth in EPS
continues the trend set in previous years. Since flotation, Access Plus has
increased basic earnings per share (before goodwill amortisation) strongly and
consistently, from 7.68p to 18.65p per share.
The Group's cash generation has continued to be strong throughout the year and
the bank loan of #3.000m taken on as part of the acquisition of SSS has been
reduced, with a net debt position of #1.334 million at the year-end. Gearing
is 13% of net assets.
The Directors recommend a final dividend of 5.50p to be paid on 8 May 2001, to
shareholders on the register on 17 April 2001. Total dividends for 2000, paid
and proposed, amount to 8.13p per ordinary share (1999 - 6.90p) showing an
increase of 18% over last year, whilst maintaining a prudent 2.2 times cover
(before goodwill amortisation).
MARKETS
The Direct Mail market continues to grow. According to new (recent) research,
British consumers spend over #20bn annually as a result of direct mail. The
findings, unveiled by the Direct Mail Information Service, show that the
average Briton spent #440 in the last year as a result of being mailed by UK
companies. The most popular purchases were clothing (#6.2bn), followed by
travel (#2.6bn), home products (#1.27bn) and records/CDs (#1.2bn).
The Print Management sector has also shown strong consistent growth as more
large organisations strive to reduce operating costs by outsourcing non-core
skill areas.
OVERVIEW OF SERVICES
Into these two markets, Access Plus provides project management services in
the following three areas: direct mail ("DM") 27% of sales; special and
security products ("SP") 22%; and print management ("PM") 51% as recorded (in
the year to) 31 December 2000. The solid growth has again been achieved
organically from within the existing customer base, by cross selling new
services. This has been enhanced, during the second half, by the acquisition
of SSS. There is still substantial scope to offer a wider range of services
to our leading customers, promising us many more years of such 'internal
growth'. Our successful focus on winning large clients through print
management will continue to augment our growth rate as new projects become
fully implemented. Some initial revenues have been achieved from these new
accounts wins.
Direct mail sales have expanded 13% to #7.759m (1999 - #6.863m). This growth
can largely be attributed to the further development and penetration of our
top accounts. The overall number of DM clients remains largely unchanged and
our strategy is still firmly set on operating in those niche areas that
generate high repeat business levels.
Special and security products recorded sales of #6.322m (1999 - #5.559m).
This result is consistent with previous years, as #0.853m was attributed to
our new acquisition. This level of turnover is in line with expectations as
our principal focus continues to be on DM and PM, backed up by the innovations
from SP.
As anticipated, PM sales grew strongly, up 64% to #14.534m (1999 - #8.973m) as
the Group has continued to be successful at winning major clients. Total
growth in this service was enhanced by #2.494m arising from the management of
standard products at SSS. Although experience has shown that the gestation
period for winning PM clients can be protracted, this remains the Group's
principal strategy. The Company now believes it has the critical mass and
resources to pursue these larger, often global, customers particularly on a
pan-European basis.
ACQUISITION
For the last ten years, your Company has shown significant growth by cross
selling new services into its existing blue chip customer base. The
acquisition and development of West Riding Print Management, in April 1997,
was a repetition of this process in a new geographical area. The
opportunities presented by the acquisition of Software Stationery Holdings
Limited ("SSS") in Leicestershire, announced on 5 July 2000, are no different
- here is another extensive platform of repeat business and a non-overlapping
diversified customer base. Since July, we have been working closely with the
management team to begin this cross selling process. It has involved
specialist recruitment and training, combined with the implementation of new
procedures, and both staff and customers have welcomed the changes. The full
benefits of cross selling to these new customers will emerge over a two or
three year period. In the medium term, we expect the enhancements made to the
acquisition, during the second half of 2000, to make a meaningful contribution
to our targets this year. In the meantime, the fact that SSS is now part of a
quoted group is undoubtedly improving its standing in the market place and
assisting in the development of its core business activities.
In addition to adding value to the SSS operation, its management have
introduced a number of new skill areas that have greatly enhanced the rest of
the Group, e.g. e-print and e-procurement. We have been taking full advantage
of these with some exciting new business wins.
OUR OBJECTIVES FOR 2001
The management team have considered carefully their objectives for this year,
and these are as follows:
* To continue integrating and adding value to the SSS operation in
Leicestershire.
* To improve our recruitment of top class sales executives,
specifically in the Midlands, by strengthening the SSS field sales team and
to add new locations in order to extend the geographic coverage of the
Group.
* To focus the Group sales effort on winning new Midlands based PM
business, which will feed the SSS facility.
* To continue to develop our top accounts by selling a wider range
of services, a policy that has been so fruitful in the last eighteen months.
* To continue our evaluation of the overseas potential of our top UK
clients, and develop strategic solutions for pan-European PM, and project
management of DM.
* To appraise and consider mini-acquisitions that may be
supplementary to the existing geographic structure of the business.
CURRENT OUTLOOK
Again we have an exciting time ahead, as we seek to repeat the acquisition
value adding process that was such a success in Leeds from 1997. Much of the
good work so far has not had sufficient time to reach the bottom line, but
with operating costs now reduced and January sales in Leicestershire running
at 30% ahead of average weekly sales of the period July to December 2000, all
the signs are very encouraging. Meanwhile the growth in our core business
remains steady and on target. Your Directors look forward with confidence to
a period of continued growth over the next few years.
STAFF
Our dedicated and loyal staff is your Company's number one asset. Our
continued out-performance in the markets serviced is entirely to their credit.
I would like to thank them, on behalf of the Directors and the Company's
Shareholders, for their energy, enthusiasm and hard work and to extend a warm
welcome to all those new members of staff in Leicestershire, who joined us in
July.
The receipt of the AIM Company of the Year award, in October 2000, is a
fitting recognition of the consistent achievements of all the team at Access
Plus. All of us acknowledge that this award, together with our Royal Warrant,
are symbols of the high quality of our work, and your Company.
Access Plus will continue its successful policy of recruiting only the finest
talent for sales personnel, capable of maintaining a high level of individual
productivity whilst ensuring quality service to the customer. As evidence of
this, further sales staff have been added to the Leeds operations during the
autumn.
T G Brettell
Chairman and Chief Executive
1 March 2001
GROUP PROFIT AND LOSS ACCOUNT
for the year ended 31 December 2000
Notes 2000 1999
#000 #000
TURNOVER
Continuing operations 2 25,268 21,395
Acquisition
3,347 -
28,615 21,395
Cost of sales 20,435 14,875
Gross profit 8,180 6,520
Administrative expenses 3,219
4,118
OPERATING PROFIT
Continuing operations 3,577 3,301
Acquisition
485 -
4,062 3,301
Bank interest receivable 195 140
Interest payable
(147) -
PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION 4,110 3,441
Taxation on profit on ordinary activities 3 1,165
1,345
PROFIT ON ORDINARY ACTIVITIES
AFTER TAXATION 2,765 2,276
Dividends 4 1,187
1,530
RETAINED PROFIT FOR THE FINANCIAL YEAR 1,089
1,235
Basic earnings per ordinary share 5 15.34p 13.35p
Diluted earnings per ordinary share 15.00p 13.08p
Restated earnings per share before allowing #597,000 (1999
- #328,000) for amortisation of goodwill
Basic earnings per ordinary share 5 18.65p 15.27p
Diluted earnings per ordinary share 18.24p 14.96p
Dividends per share 4 8.13p 6.90p
GROUP BALANCE SHEET
at 31 December 2000
Notes 2000 1999
#000 #000
FIXED ASSETS
Intangible assets 7 9,617 357
Tangible assets 1,948 819
11,565 1,176
CURRENT ASSETS
Stocks 1,363 713
Debtors 7,551 5,128
Cash 3,613 2,599
12,527 8,440
CREDITORS: amounts falling due within one year 8 10,537 6,210
NET CURRENT ASSETS 1,990 2,230
TOTAL ASSETS LESS CURRENT LIABILITIES 13,555 3,406
CREDITORS: amounts falling due after more than one 8 3,521 263
year
PROVISION FOR LIABILITIES AND CHARGES
Deferred taxation 33 21
NET ASSETS 10,001 3,122
CAPITAL AND RESERVES
Called up share capital 1,873 1,713
Share premium account 9,614 4,130
Capital redemption reserve 1,100 1,100
Profit and loss account (2,586) (3,821)
EQUITY SHAREHOLDERS' FUNDS 6 10,001 3,122
GROUP STATEMENT OF CASH FLOWS
for the year ended 31 December 2000
Notes 2000 1999
#000 #000
NET CASH INFLOW FROM OPERATING ACTIVITIES 9 4,263 2,962
RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Interest paid (147) -
Interest received 195 144
48 144
TAXATION (1,474) (1,185)
CAPITAL EXPENDITURE
Purchase of tangible fixed assets (224) (382)
Disposal of tangible fixed assets 88 62
Deferred consideration paid (1,320) -
(1,456) (320)
ACQUISITIONS
Acquisition of Ashes including costs - (244)
Acquisition of Software Stationery including (3,926) -
costs
Cash acquired with Software Stationery 1,045 -
(2,881) (244)
EQUITY DIVIDENDS PAID (1,297) (1,046)
FINANCING
Issue of share capital net of costs 4,759 62
New long-term bank loan 3,000 -
Repayments of long-term loan (150) -
Repayment of Software Stationery loans (3,798) -
3,811 62
MOVEMENT IN CASH IN THE YEAR 1,014 373
Notes to the Preliminary Accounts
1. Accounting policies
This statement has been prepared on the basis of the accounting policies as
set out in the Group's annual report for the year ended 31 December 1999.
There have been no changes to these policies during the current year.
2. Turnover
Turnover represents amounts derived from the provision of goods and services
during the year stated net of value added tax. The turnover and pre-tax
profit is attributable to one continuing activity, the provision of print
related marketing services from within the United Kingdom. All turnover is
into the United Kingdom apart from less than 1% which is to the rest of
Europe.
3. Taxation
Taxation for year ended 31 December 2000 has been charged at an effective rate
of 28.6%.
4. Dividends
2000 1999
#000 #000
Under provision in prior year 7 5
Interim dividends - paid 493 385
Final dividends - proposed/paid 1,030 797
1,530 1,187
The Directors have proposed a final dividend of 5.50p per share (May
2000 - 4.65p per share), payable on 8 May 2001 to shareholders on the
register on 17 April 2001. If approved by shareholders, the total
dividend for the year ended 31 December 2000 will be 8.13p (1999 -
6.90p).
5. Earnings per ordinary share
Basic earnings per ordinary share have been calculated by dividing the
profit on ordinary activities after taxation for each financial year
#2,765,000 (1999 - #2,276,000) by the weighted average number of
ordinary shares in issue in each year 18,029,507 (1999 - 17,053,638).
At 31 December 2000, the issued share capital of the Company was
18,729,880 ordinary shares.
The diluted earnings per share has been based on profit for the year of
#2,765,000 (1999 - #2,276,000). The weighted average number of dilutive
shares has been calculated as follows:
2000 1999
Basic weighted average number of shares 18,029,507 17,053,638
Dilutive potential ordinary shares from
share options 403,826 352,883
18,433,333 17,406,521
The profit on ordinary activities after taxation of #2,765,000 (1999 - #
2,276,000) is shown after deducting #597,000 (1999 - #328,000) in
respect of goodwill arising on the acquisition of part of the business
of the Ashes Group Limited, and goodwill arising on the acquisition of
Software Stationery Holding Limited. Restated earnings per share have
been shown in order to provide an valid comparison with previous trading
results. The restated earnings have been calculated by dividing the
adjusted profit of #3,362,000 by the same weighted average number of
shares in issue at 31 December 2000.
There are no changes to the basis for calculating the comparative or the
diluted earnings per share.
6. Reconciliation of movements in equity shareholders' funds
#000
Equity shareholders' funds at 1 January 2000 3,122
Retained profits for the year 1,235
Ordinary shares issued during the year 5,644
Equity shareholders' funds at 31 December 2000 10,001
7. Intangible fixed assets
#000
Cost of goodwill:
At 1 January 2000 685
Acquired in the year 9,617
Arising on acquisition 250
At 31 December 2000 10,552
Amortisation:
At 1 January 2000 328
Provided in the year in relation to Ashes 357
Provided in the year in relation to Software
Stationery Holdings Limited 240
Provided for the period 10
At 31 December 2000 935
Net book value at 1 January 2000 357
Net book value at 31 December 2000 9,617
On 29 January 1999, the acquisition of part of the business and trade of Ashes
Group Limited ('Ashes') was completed. Goodwill arising on the Ashes'
acquisition is being amortised evenly over the Directors' estimate of its
economic life of two years, ending on 31 December 2000, being the length of
the all contracts relating to this transaction.
On 5 July 2000, the Group acquired the entire issued share capital of Software
Stationery Holdings Limited. The maximum goodwill arising on the acquisition
is #9.617million of which #1.441 million is contingent upon future events. In
the meantime, the goodwill arising on this acquisition is being amortised
evenly over its presumed economic life of 20 years.
In addition, #250,000 of goodwill was acquired as part of the acquisition.
Goodwill of #243,000 in Software Stationery Holdings Limited represents the
cost of acquiring the copyright inherent in the design of business forms for
specific accounting software packages, either by way of absolute assignment or
on a long term licence. Goodwill and intangible fixed assets are capitalised
and amortised on a straight line basis over the expected useful economic lives
of the assets concerned of between four and twenty years but not exceeding a
maximum of 20 years. Goodwill of #7,000 in Software Stationery Specialists
Limited represents the cost of acquiring the goodwill and is being amortised
on a straight line basis over the expected useful economic life of the asset
concerned being four years.
8. Creditors
Included within creditors falling due within one year is deferred
consideration of #238,000, arising from the acquisition of Software Stationery
Holdings Limited and redeemable on 30 April 2001. In addition, #35,000
previously included within creditors falling due after more than one year is
now included in creditors falling due within one year.
In addition, it is also considered prudent to make full provision for further
contingent deferred consideration relating to the Software Stationery
acquisition, of which up to #1.387 million is payable by 30 April 2003.
9. Reconciliation of operating profit to net cash inflow from
operating activities
2000 1999
#000 #000
Operating profit 4,062 3,301
Depreciation 243 182
Loss on disposal of tangible fixed assets 29 11
Amortisation of intangible fixed assets 10 -
Amortisation of goodwill 597 328
Release of government grants (2) -
Increase in stocks (352) (51)
Increase in debtors (1,047) (1,506)
Increase in creditors 723 697
Net cash inflow from operating activities 4,263 2,962
10. Reconciliation of to net cash flow to movement in net debt
#000 #000
Movement in cash 1,014 373
Cash inflow from increase in loans (3,000) -
Repayments of long-term loans 150 -
Change in net debt resulting from cash flows (1,836) 373
Non cash flows in net debt (2,097) -
Movement in net debt (3,933) 373
Cash at 1 January 2,599 2,226
NET DEBT AT 31 DECEMBER (1,334) 2,599
11. Analysis of net funds
31 December Non cash Cash 1 January
2000 flows flows 2000
#000 #000 #000 #000
Cash at bank 3,613 - 1,015 2,599
Bank loans (2,850) - (2,850) -
Guaranteed Loan Notes(2,097) (2,097) - -
(1,334) (2,097) (1,835) 2,599
12. Financial statements
The financial information set out above does not constitute the Company's
financial statement for the years ended 31 December 2000 or 1999. The
financial information for 1999 is derived from the financial statements for
1999 which have been delivered to the Registrar of Companies. The auditors
have reported on the 1999 statements; their report was unqualified and did not
contain a statement under section 237(2) or (3) of the Companies Act 1985.
The financial statements for 2000 have been audited and will be delivered to
the Registrar of Companies following the Company's Annual General Meeting on
19 April 2001. The auditors have reported on the 2000 statements; their
report was unqualified and did not contain a statement under section 237(2) or
(3) of the Companies Act 1985.
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