TIDMCYH
RNS Number : 0576V
CybIT Holdings PLC
03 July 2009
Date: 3rd July 2009
On behalf of: Cybit Holdings Plc ('Cybit' or 'the Company' or 'the Group')
Embargoed until: 0700hrs
Cybit Holdings Plc
Preliminary Results
Cybit Holdings Plc (AIM: CYH), the international provider of telematics based
products and services for the management and control of land and sea based
assets, today announces its preliminary results for the year ended 31st March
2009.
Overview:
+----------------------------------------+-------------+--------------+
| | Year ended | Year ended |
| | 31st March | 31st March |
| | 2009 | 2008 |
| | GBP'000 | GBP'000 |
+----------------------------------------+-------------+--------------+
| | | |
+----------------------------------------+-------------+--------------+
| Revenue | 25,481 | 19,671 |
+----------------------------------------+-------------+--------------+
| EBITDA | 5,471 | 4,264 |
+----------------------------------------+-------------+--------------+
| Operating profit | 3,940 | 3,263 |
+----------------------------------------+-------------+--------------+
| Profit before taxation | 2,144 | 1,694 |
+----------------------------------------+-------------+--------------+
| Cash (net of overdrafts) | 2,016 | 2,425 |
+----------------------------------------+-------------+--------------+
| Earnings per share | 7.06p | 4.65p |
+----------------------------------------+-------------+--------------+
Financial Highlights:
* Revenue increased by 30% to GBP25.5m
* Profit before tax increased by 27% to GBP2.1m
* 14% year on year organic growth excluding Truck24
* Net Asset Value up 16% from GBP12.1m to GBP14.1m
* GBP2m reduction in year on year operating costs
* Operational cost cover from free cash flow increased from 71% to 82%
* Earnings per share increased by 52% from 4.65p to 7.06p
* Internal lease book represents GBP8.2m of future profit which will be recognised
over the next three to five years
* New three year GBP4m committed revolving credit facility agreed with HSBC
* Application being made for cancellation of Share Premium account to facilitate
future payment of dividends
Operational Highlights:
* Three year exclusive agreement with Ford to provide aftermarket telematics
solutions in the UK
* Significant telematics contracts with Homeserve Plc, Stannah Lifts Ltd, Northern
Ireland Electricity and The Highways Agency
Neil Johnson, Non Executive Chairman commented:
"I am particularly pleased with the growth achieved in what has been a very
turbulent period for many businesses. To be able to report exceptional levels of
both revenue and profit growth in the current climate is testament to the
strength and resilience of the business, and our strong management team.
"We remain confident about the prospects for our business and the telematics
market as a whole. We believe that Cybit is well placed to continue its success
despite the uncertain economic outlook."
-ends-
For further information please contact:
+---------------------------+----------------------------+------------------------+
| Cybit Holdings Plc | Redleaf Communications | Cenkos Securities Plc |
+---------------------------+----------------------------+------------------------+
| Richard Horsman, Chief | Emma Kane/ Rebecca | Stephen Keys / |
| Executive | Sanders-Hewett/Anna Dunkin | Elizabeth Bowman |
+---------------------------+----------------------------+------------------------+
| Kevin Lawrence, Finance | | |
| Director | | |
+---------------------------+----------------------------+------------------------+
| Tel: +44 (0)1480 443912 | Tel: +44 (0)20 7566 6700 | Tel: +44 (0)20 7397 |
| | | 8900 |
+---------------------------+----------------------------+------------------------+
| | cybit@redleafpr.com | |
+---------------------------+----------------------------+------------------------+
Notes to Editors:
* Cybit operates within three core sectors: Vehicle Telematics Solutions;
Maritime Solutions; and Private Mobile Radio (PMR) based tracking and precise
positioning solutions. Its products and services enable companies to monitor and
position mobile assets, manage service level agreements, enhance employee duty
of care and compliance with relevant legislation.
* In the Vehicle Telematics sector, Cybit is one of Europe's leading Telematics
Service Providers (TSPs). Approximately 2,000 business-to-business clients use
its fleet and asset management solutions to manage more than 50,000 mobile
assets. Solutions include in-vehicle technologies, workflow management and
internet-based monitoring and reporting software. The Company also provides
consultancy services providing advice on legal issues such as duty of care and
working hours.
* Cybit's Maritime Solutions business, BlueFinger, is recognised as one of the
world's leading suppliers of Fisheries Vessel Monitoring Systems. BlueFinger
provides fisheries authorities with the necessary tools for managing their
licensed fishing fleets and coordinating the activity of the fisheries patrol
vessels that enforce national fisheries policies throughout the Economic
Exclusion Zone (EEZ). BlueFinger's Saffire-Online system is a solution that
allows race organisers to track the position, direction and speed of vessels in
ocean going or inshore races.
* Our PMR business, Cybit Positioning Solutions, provides asset-tracking and
security solutions for both maritime and land-based applications, including
exploration and mining. Our precise positioning solutions assist in the tracking
of vessels and other equipment engaged in the exploitation of oil, gas and
mineral reserves around the globe.
CHAIRMAN'S STATEMENT
Overview
I am pleased to announce another period of excellent growth for Cybit, a
particularly significant achievement in a year during which global economic and
financial markets have gone though a period of virtual meltdown. Despite this,
Cybit has delivered exceptional levels of both revenue and profit growth.
Operationally, we completed the integration of Truck24, the leading German
telematics service provider. This has further strengthened our coverage of the
German market and expanded our coverage in Austria, Switzerland and Italy. We
also acquired the assets of OxLoc, an Oxford based supplier of battery-powered
tracking units for HGV trailers, plant and mobile assets.
The management team has implemented a number of cost saving initiatives to
ensure that Cybit is well placed to weather the current economic climate. These
have reduced annualised operational costs by approximately GBP2m when compared
with the cost base at 30th September 2008. These measures give the Board
confidence that the business will emerge from the current downturn as an even
stronger and more successful business.
Results
Revenue for the year grew from GBP19.7m to GBP25.5m, an increase of 30%. Pre-tax
profit increased by 27% from GBP1.69m to GBP2.14m. Despite challenging
conditions, it is particularly encouraging to note that the Group achieved like
for like organic growth of 14%. Earnings per share has also grown by 52% from
4.65p to 7.06p per share which is attributable to the increase in pre-tax profit
and also the low effective tax rate in the year as tax losses brought forward on
historical acquisitions have been utilised during the period.
A combination of the hardening leasing market and more stringent underwriting
criteria has resulted in the level of telematics business placed on our own
internal leasing book increasing from 23% to nearer 33% during the year.
Although requiring a short term cash investment, this is aligned with our
strategy of providing increased visibility over long term revenue and profit
streams.
It was pleasing to note that despite the investment in acquisitions and internal
lease book, net cash reduced by only GBP0.41m to GBP2.02m at 31st March 2009.
Over the year, telematics related forward revenue streams have slightly reduced
to approximately GBP8.2m of future profit which will be recognised over the next
three to five years. The forward order book for both our Precise Positioning
and Maritime businesses remains strong.
In terms of free cash flow, recent cost management activities have facilitated
an increase of 4% from GBP632k to GBP660k per month.
Operations
This was another noteworthy year for our operations team as we completed a
number of significant cost reduction projects including the relocation of
Fleetstar-Online to an offsite hosting centre, consolidation of a number of
internal back-office software platforms into our core Enterprise Resource
Planning (ERP) application and migration and subsequent retirement of the
Amatics tracking platform. By the end of March 2009, the net effect of these
initiatives was a reduction of approximately GBP2m in our like for like annual
running costs when compared with the cost base at 30th September 2008.
During the period we also completed the move to our new Head Office facility in
Huntingdon which brings all of our telematics based customer service and support
functions into one location.
Although the Small to Medium Enterprise (SME) sector has suffered in the current
climate, our UK business has still performed well, winning new customers as well
as extending and renewing contracts with existing clients. Contract renewal
levels have remained strong at approximately 80% of available units which proves
that our solutions are viewed as a business management and optimisation tool.
Cybit AB, our vehicle telematics business in Sweden, has delivered significant
growth during the year and I am delighted to report that it has delivered a
maiden profit in the period. The business also returned cash to the Group during
the fourth quarter. The German market remains tough due to the economic downturn
although the business showed growth during the second half and was broadly break
even for the year as a whole.
Outside of our core vehicle telematics business, our BlueFinger maritime
business has won a three year contract to provide Race Management for P1
Powerboat. Also of significance, our agent in the Middle East has won a pilot
coastal security project using UHF and VHF TDMA technology which could lead to a
significant future deployment in the region.
Despite the downturn in the oil and gas market, Cybit Positioning Solutions has
delivered significant volumes against our seven year OEM line fit contract for
our precise positioning technology. Committed volumes for the current year have
increased significantly and on this basis, the contract is likely to deliver
significantly higher revenues over the life of the agreement than the GBP3.5m
originally announced.
Acquisitions
In August 2008, we acquired the trade and assets of OxLoc Limited, an Oxford
based supplier of battery powered tracking units for HGV trailers, plant and
other mobile assets. This transaction was concluded for a nominal sum.
OxLoc provided unpowered asset monitoring, tracking and alerting solutions which
are being integrated into the Cybit portfolio to support customers and partners
such as Fowler Welch and Balfour Beatty who are already using the solution.
Dividends
The Board intends to pay dividends to shareholders as soon as is practicable.
However start-up and subsequent trading losses have created a deficiency in
Group distributable reserves. The Group has been profitable for some time and is
therefore reducing this deficiency. In order to accelerate this reduction, the
Group plans to make use of well established Court procedures for remedying such
deficiencies. Accordingly the Group will be instructing legal advisors to make
the appropriate applications.
Outlook
The outlook for the Group remains positive, and although highly competitive, the
market for our telematics solutions remains strong. In the commercial sector,
our financial strength and successful track record is helping us to win new
business and ensure a competitive edge over smaller competitors in our market.
The Board continues to review opportunities for acquisitive growth on an ongoing
basis and we anticipate that there will be further opportunities to accelerate
growth in the future.
In summary, although we continue to face uncertain economic times, the Board
remains confident about the prospects for Cybit and the telematics market as a
whole. The Group benefits from predictable revenue streams, a strong balance
sheet and committed banking facilities. The management team continues to focus
on driving organic growth whilst improving operational efficiencies, giving the
Board confidence that profitability can be maintained even if the global economy
does not improve over the medium term.
Neil Johnson
Chairman
3rd July 2009 CHIEF EXECUTIVE'S REVIEW
Operating Review
I am delighted with what has been yet another excellent performance from Cybit.
The Group has delivered revenue growth of 30% coupled with profit growth of 27%,
a significant achievement in the current global market conditions. Our
objectives of achieving both organic and acquisitive growth year on year have
benefitted from the current market conditions where our financial strength and
critical mass are key factors both in the achievement of short term success and
longer term sustainability.
Vehicle Telematics
There is little doubt that the current economic climate is having an impact
across all our target market sectors. We stated at the interim stage that well
run businesses will be looking for ways to both manage productivity and reduce
costs in a tough market and this is still very much the case. Further, we
believe that customers making investment decisions will be undertaking more due
diligence on the financial strength and track record of their potential partners
and, with this in mind, Cybit continues to be the partner of choice.
Although many small to medium enterprises are currently looking inwardly to
manage market challenges, many larger enterprises are looking to solutions
delivered by Cybit to support operational cost controls and productivity
management.
Our solutions continue to evolve, enabling us to help our customers comply with
the increasing legislative, taxation and compliance burden that is associated
with operating a remote workforce. We have continued to enhance our
applications such that they are now capable of supporting
environmental initiatives including management of carbon emissions.
Although increasingly competitive, the market for our solutions is continuing to
grow and we have maintained our strategy of developing market specific products
and services that will deliver substantial strategic and operational benefit to
our customers. In particular, the acquisition of Truck24 has significantly
strengthened our position in the Transport and Logistics market.
This strategy has so far allowed us to achieve a market leadership position in
the UK and we are continuing to build a similar position in Scandinavia and
Germany as our subsidiaries in these regions gain momentum.
Customer Growth and Development
In the UK, our sales teams are aligned to support three key verticals: Service,
Transport and Logistics, and Government and Utilities. We achieved significant
new and repeat contract wins across all three.
New customers signed during the year included Greene King Brewing and Retailing,
Stannah Lifts Ltd, Abel & Cole, Powys County Council, Kwik Fit Mobile, Buy as
You View Ltd, Symonds Hydroclean Ltd, Homeserve Plc and The Highways Agency.
The levels of renewal and migration increased from 6,000 units to 7,400 units,
representing a renewal rate of approximately 80% of available units. This is a
strong result in the current economic climate in which many fleet operators have
been reducing fleet sizes and, in some cases, their
businesses have unfortunately failed.
We continue to sign significant expansion and renewal contracts with many of our
customers including Enterprise Plc, NCP Services, Iron Mountain (UK) Ltd, Colas,
Thyssenkrupp Palmers Ltd, Aberdeenshire Council, Argyl and Bute Council, May
Gurney Ltd, Interserve Plc, Sainsbury's Online, Babcock Networks, Servisair
Cargo, EIC, and CLS.
During the year, we launched Fleetstar-Logistics, a derivative of the Truck24
application into the UK. Early indications are positive and we expect this
solution to contribute to UK revenues in the coming year.
Operational Achievements
The completion of our phased move to larger facilities in Huntingdon early in
the year has allowed us to bring together the finance, billing, procurement and
customer service of our Telematics business under one roof.
By the end of the financial year, we had achieved annualised savings of around
GBP2m when compared to our cost base at the start of the previous financial
year. Key areas of cost saving included the surrender of the lease relating to
the Godmanchester facility and taking a new lease for only half of the Wells
building. We shut down a number of our legacy back office applications by
replacing them with our core SAP ERP system.
One of the most significant savings was achieved through the retirement of the
Amatics platform and subsequent migration of the customer base to the
Fleetstar-Online platform. This process was close to completion as at 31st March
2009 with final shut down completed by mid April. Closing this platform will
save the Group in the region of GBP400k per annum.
Indirect Channels
Order intake achieved from our indirect channel partners declined 38% over the
period as smaller companies were impacted by the current economic downturn. In
response, we reduced our overheads in this area and we have also implemented a
number of new initiatives including a more flexible pricing model which has
given our resellers the ability to compete effectively in the market. We
have started to see some signs of improvement in this sector as customers look
to position themselves for growth as economic conditions improve.
In June 2008, the Group announced an exclusive partnership agreement with Ford
Motor Company in the UK, to provide a fully managed aftermarket service branded
'Ford Fleet Telematics' targeted at Ford Fleet customers. This service was
launched last December with a number of customers already signed up to use the
service.
Under the terms of the agreement, Cybit has exclusive telematics access to
Ford's confidential CANBus coding information, which allows details relating to
vehicle usage and performance to be reported through the Cybit Fleetstar-Online
application. The partnership initially includes access to CANBus systems on the
current Ford Transit and Transit Connect models. This collaborative access to
CANBus enables Ford Fleet customers to have confidence in the accuracy of data
contained within reports.
Cybit AB
This has been a year of noteworthy growth for our Swedish subsidiary, following
what was a steady start. We have seen a significant upturn in sales of
Fleetstar-Online into this market with key wins from well known multi-national
brands such as Fujitsu and Gilbarco together with leading local businesses such
as Flygfrakt, the largest freight forwarder in Sweden, Alpha Quality Moving,
June Express and SSL.We have also started to renew some of the early customer
contracts.
During the period, we increased the local team to eight staff members with a
view to driving additional local and regional growth. We have already signed
contracts that require vehicle installations in Denmark, Finland and Norway and
are actively seeking both distribution and installation partners to support
further growth across the region.
Revenues increased significantly by 185% to GBP0.7m with the business making
both a profit and returning cash to the Group during Q4. Cybit AB is becoming
recognised as a market leader in the Scandinavian region with a number of
significant opportunities to drive additional growth.
We launched the Truck24 logistics and distribution solution into Sweden during
September 2008. In the intervening period we have implemented a number of pilot
customers and expect to increase the installed base in the coming year.
As a result of the increased interest in fleet and asset management solutions
and a slowing in our car sharing business, we will retire the Drive-IT car share
solution during the current financial year.
Truck24 AG
Our German subsidiary, Truck24, based near Munich, was purchased on the final
day of the last financial year.
Over the past 12 months, operational costs have been significantly reduced
through headcount reductions and use of group purchasing power in areas such as
mapping and airtime. We have also streamlined accounting and support functions
and outsourced the logistics function to the same partner that we use in the UK.
Similarly, the development and technical teams have been integrated into the
broader group development function. We are now embarking on a strategic review
in relation to onward development of the application such that we can use common
components across the entire portfolio.
As reported in the interim results, we have launched the Truck24 service in both
the UK and Sweden where we are branding the solution Fleetstar-Logistics. Early
experiences in both markets have been positive with customers now using the
product.
New and extension contracts were signed with the following customers; Beine
Gruppe, HKS Spedition, Stegmeier and Rubetrans.
Although remaining behind internal forecasts at the full year, the business
signed a significant number of new business accounts during the second half
and continues to enjoy strong recurring revenues. Despite the current economic
downturn, we believe that Germany will offer Cybit significant future growth
opportunities.
Acquisition of OxLoc
In August, for a nominal cash consideration, Cybit acquired the trade and assets
of OxLoc Limited, an Oxford based supplier of battery-powered tracking units for
HGV trailers, plant and mobile assets.
OxLoc provided asset monitoring,
tracking and alerting solutions to the sector of the mobile asset management
market where there is either non-existent or limited access to a power source,
through the supply of autonomous battery-powered data collection products. The
company was originally founded by Isis Innovation Ltd, the technology transfer
company of the University of Oxford.
The purchase covered all hardware, software and intellectual property and
provides Cybit with non-powered tracking devices that will become highly
integrated with Cybit's leading Fleetstar-Online telematics and fleet-tracking
solution. This will include built-in RFID technology for temperature, pallet
and goods-in-transit monitoring.
Cybit is integrating the OxLoc products into the current product range and
will continue to run and expand the service that is already installed with
customers including Fowler Welch. This process will be relatively easy as Cybit
has already incorporated the OxLoc product into its AssetLocator platform and
has a number of customers using the solution for non-powered assets.
Technology
One of the major activities during the early part of the year was the
re-location of the Fleetstar-Online hardware environment away from our offices
in Huntingdon to a fully redundant off-site hosting centre. This was a
significant task due to the sheer volume of data and vehicles.
Our development teams in the UK, Germany and India delivered significant
enhancements to the Fleetstar-Online and Truck24 applications.
A key development during the first half was the enhancement of Fleetstar-Online
to support standard CANbus reporting capabilities for Ford Transit and Connect.
This initial development was subsequently expanded to include generic CANbus
capabilities for Heavy Goods and Light Commercial vehicles. The latest
developments include environmental reports for CO2 reporting and a new
capability for the automatic import of fuel cards to provide more accurate fuel
analysis.
The migration of Amatics, towards the end of the year, required significant
developments to Fleetstar-Online. We needed to merge key functionality, such as
winter maintenance and gulley emptying, into Fleetstar for the Government and
Utility sector and these developments were implemented successfully.
There are a number of significant developments scheduled for release during
early 2009 including a major update to our mapping environment. This will allow
for the integration of satellite maps and speed limit data for enhanced duty of
care management and reporting. We believe that the continual development of our
solutions is of paramount importance, and will ensure that our customers receive
the best available service.
Cybit Positioning Solutions
This was another strong year for our VHF and UHF based PMR business in terms of
both order intake and revenue. In 2007 we announced a line-fit contract with a
major manufacturer of seismic vehicles. This contract has performed
significantly ahead of projected volumes and despite the downturn in the oil and
gas exploration sector, our client has doubled minimum committed volumes for the
coming year. We have also developed a number of new variants of this solution
with the client which will increase future revenue opportunities.
Despite the product being in run-off mode, our offshore exploration partner
placed a number of new orders, and therefore we will continue to deliver the
product until at least December 2009.
This business has become primarily focused on our TDMA solutions and a
project has been undertaken to value engineer the hardware. This will enable us
to enter new markets with a cost-effective, higher margin solution.
Maritime
This was the second successive year in which there were fewer fisheries Vessel
Management Solution (VMS) contracts. This area of the business remains
profitable but did not meet internal revenue and order intake budgets.
Recent terrorist activity involving small coastal craft has raised awareness
around these solutions and the role they can play as an integral part of a
broader coastal security programme. This gives us confidence that future
prospects for this business remain strong.
During the first half, Cybit announced that its increased presence in the Middle
East had resulted in our winning a pilot coastal security project involving TDMA
hardware and Saffire Software. If successful, this pilot is likely to broaden
out to include the implementation of a fisheries VMS solution. I am pleased to
report that the project is progressing well and we anticipate further roll out
during the current financial year.
In terms of dedicated fisheries VMS contracts, we won a contract from UK DEFRA
to provide a catch management and reporting solution which is in addition to a
number of smaller extensions with customers such as Cyprus and St Helena. This
is likely to be the precursor to a number of similar contracts expected to be
tendered around Europe in the next few years. This puts the Company in a strong
strategic position as we will be bidding standard commercially available
software.
Following the success last year with the Volvo Ocean Race, our Race Management
System has been adopted by P1 Powerboat for both race tracking and timing. This
solution combines our TDMA hardware solution and Sapphire Maritime software and
is a good example of the synergies we have achieved from recent acquisitions.
During the first half, the team successfully delivered the web based version of
Saffire Online to Cyprus. This solution has since been purchased by DEFRA for
implementation across the UK.
Although business in this sector is cyclical, we have a strong maintenance base
and are currently involved with a number of potentially significant projects
around the globe.
Financial Review
This was another year of solid growth for Cybit. Revenues were up 30% from
GBP19.7m to GBP25.5m with pre-tax profits increasing 27% from GBP1.7m to
GBP2.1m. The business achieved underlying organic growth of 14% from continuing
operations with the balance achieved from the Truck24 business.
Gross margins declined from 63% to 59%. This is a direct result of the higher
hardware content of Truck24 deals which generate a lower overall gross margin.
Despite increased pressure, we expect to improve operating margins as the impact
of cost reductions made in the current financial year flow through to the bottom
line.
Despite significant revenue growth and the acquisition of Truck24,
administrative expenses remain tightly controlled, increasing by only 17%.
Financing costs also continue to reduce as a percentage of overall revenues. The
total financing cost increased slightly from GBP1.61m to GBP1.83m which
represents 7.2% of overall turnover, down from 8.2% in 2008.
As previously reported, we are focused on increasing the levels of predictable
forward profit and cash through the development of our internal leasing book and
other recurring revenues. The optimal rate for developing the lease book,
whilst still delivering revenue and profit growth, has historically been around
25% of telematics revenues. In 2009, the level of telematics revenues placed on
the internal lease book increased to 33% from 23% in the prior year. This
increase is a direct result of the current banking climate and the reduced
access that the business has to third party leasing.
During the period, the value of the internal lease book across the Group has
declined slightly from GBP10m in 2008 to GBP8.2m as some of the earlier CPS and
Amatics customers have been migrated to the Fleetstar-Online platform.
The forward order book relating to our maritime and precise positioning
businesses has remained relatively constant at approximately GBP7.1m at the end
of the year. The combination of this forward order book and internal lease book
will not only underpin future growth but will also serve to insulate the
business in the event that market conditions decline further.
Cash in hand, net of overdrafts reduced from GBP2.4m to GBP2.0m as a result of
the investment in own book and acquisition activity. Net cash reduced from
GBP1.6m to GBP0.4m, a slight reduction on the GBP0.6m position at the half year.
This is a direct result of the increased investment in the internal lease book.
The business remains cash generative at the operating level with net cash inflow
from operating activities of GBP3.8m (2008: GBP4.1m).At the end of the year, the
level of outstanding loans increased from GBP0.8m to GBP1.6m as a result of the
Truck24 acquisition.
Predictive cash flow has grown from GBP632k to GBP660k per month. This increase
coupled with the significant reduction in overhead has resulted in the level of
operational cost cover increasing from 71% to 82%.
Earnings per share has also grown by 52% from 4.65p to 7.06p per share which is
attributable to the increase in pre-tax profit and also the low effective tax
rate in the year as tax losses brought forward on historical acquisitions have
been utilised during the period.
Outlook
Despite our success during the past year, the Board is very aware that Cybit is
still navigating uncharted economic territory. Accordingly, the team has
focused on reducing costs to ensure the business is well placed to succeed, even
in these difficult economic times.
Order intake in the first quarter has been solid across the business and stands
at a similar level to that achieved in the same period last year. The pipeline
of future business remains strong with some significant opportunities being
pursued in our telematics and maritime businesses. As a result, provided trading
conditions remain constant, the Board has a good degree of confidence in our
ability to deliver profit growth in the current year.
From a Corporate Governance perspective, the Board has undertaken a review of
potential risks to the business in the current banking environment. In order to
generate cash to drive future growth, Cybit uses a number of third party lease
providers to fund a percentage of UK based telematics business. As a result of
the current climate, the number of leasing companies prepared to fund telematics
business has reduced significantly. Although the default rate of business
derived from Cybit is significantly below industry averages, there is a risk
that leasing providers could withdraw from telematics in the same way that they
have withdrawn from the telecommunications sector.
In order to mitigate this risk, I am pleased to report that Cybit has reached
agreement in principle with HSBC to provide a 3 year committed revolving credit
facility of GBP4m and an overdraft facility of GBP0.5m to replace our existing
GBP1m overdraft. This is designated to support investment in the business and
the internal lease book. Although it is highly unlikely that such an extreme
move would be required, the management team has run a number of scenarios which
demonstrate this revolving facility would be sufficient for the business to fund
100% of its UK telematics business on the internal lease book. Adoption of such
a move would result in a short term drop in revenue and profit in the current
year with a significant increase in revenue, profit and cash generation by the
end of the next financial year.
We believe the market for telematics will continue to grow as customers from all
sectors are required to implement strategies to improve operational efficiencies
and cut costs, whilst ensuring legislative compliance. It is now widely accepted
that our solutions are proven to deliver a high level of return on investment
and our financial strength and extensive experience in the market makes Cybit
the low risk partner to deliver these returns.
Our success in Sweden and Scandinavia has continued into the current year which
leads us to believe that we can derive further growth from these markets.
Furthermore, the acquisition of Truck24 gives us a strong presence in
Germany with further customers in Austria, Switzerland and Italy. We intend to
invest in more sales personnel to better exploit this opportunity following the
successful integration of this acquisition.
Whilst our primary focus will continue to be organic growth from our existing
business, we will continue to consider suitable acquisition opportunities as
resources and market conditions allow.
This has been an exceptional performance under extreme circumstances for Cybit,
and I would like to thank all of the team for their hard work during the past
financial year.
Richard Horsman
Chief Executive Officer
3rd July 2009
Cybit Holdings Plc
Consolidated Income Statement
For the year ended 31st March 2009
+---------------------------------+----+----------+----------+--------------+-------------+
| | | 2009 | 2008 |
+---------------------------------+----+------------------------------------+-------------+
| | | | | GBP | GBP |
+---------------------------------+----+----------+----------+--------------+-------------+
| | | | | | |
+---------------------------------+----+----------+----------+--------------+-------------+
| Revenue | | | | 25,481,505 | 19,671,179 |
+---------------------------------+----+----------+----------+--------------+-------------+
| | | | | | |
+---------------------------------+----+----------+----------+--------------+-------------+
| Cost of sales | | | | (10,522,898) | (7,301,291) |
+---------------------------------+----+----------+----------+--------------+-------------+
| | | | | | |
+---------------------------------+----+----------+----------+--------------+-------------+
| Gross profit | | | | 14,958,607 | 12,369,888 |
+---------------------------------+----+----------+----------+--------------+-------------+
| | | | | | |
+---------------------------------+----+----------+----------+--------------+-------------+
| Administrative expenses | | | | | |
+---------------------------------+----+----------+----------+--------------+-------------+
| Other operating expenses | | | | (9,486,775) | (8,125,373) |
+---------------------------------+----+----------+----------+--------------+-------------+
| Depreciation and amortisation | | | | (1,531,607) | (981,212) |
+---------------------------------+----+----------+----------+--------------+-------------+
| Total administrative expenses | | | | (11,018,382) | (9,106,585) |
+---------------------------------+----+----------+----------+--------------+-------------+
| | | | | | |
+---------------------------------+----+----------+----------+--------------+-------------+
| Operating profit | | | | 3,940,225 | 3,263,303 |
+---------------------------------+----+----------+----------+--------------+-------------+
| | | | | | |
+---------------------------------+----+----------+----------+--------------+-------------+
| Finance costs | | | | (1,828,047) | (1,606,827) |
+---------------------------------+----+----------+----------+--------------+-------------+
| Finance income | | | | 31,677 | 38,360 |
+---------------------------------+----+----------+----------+--------------+-------------+
| | | | | | |
+---------------------------------+----+----------+----------+--------------+-------------+
| Finance loss | | | | (1,796,370) | (1,568,467) |
+---------------------------------+----+----------+----------+--------------+-------------+
| | | | | | |
+---------------------------------+----+----------+----------+--------------+-------------+
| Pre-tax profit for the year | | | | 2,143,855 | 1,694,836 |
+---------------------------------+----+----------+----------+--------------+-------------+
| | | | | | |
+---------------------------------+----+----------+----------+--------------+-------------+
| Tax expense | | | | (204,503) | (627,561) |
+---------------------------------+----+----------+----------+--------------+-------------+
| | | | | | |
+---------------------------------+----+----------+----------+--------------+-------------+
| Net profit for the year | | | | 1,939,352 | 1,067,275 |
+---------------------------------+----+----------+----------+--------------+-------------+
| | | | | | |
+---------------------------------+----+----------+----------+--------------+-------------+
| | | | | | |
+---------------------------------+----+----------+----------+--------------+-------------+
| Attributable to the equity holders | | | 1,939,352 | 1,067,275 |
| of Cybit Holdings plc | | | | |
+--------------------------------------+----------+----------+--------------+-------------+
| | | | | | |
+---------------------------------+----+----------+----------+--------------+-------------+
| | | | | | |
+---------------------------------+----+----------+----------+--------------+-------------+
| | | | | | |
+---------------------------------+----+----------+----------+--------------+-------------+
| Earnings per share - basic | | | | 7.06p | 4.65p |
+---------------------------------+----+----------+----------+--------------+-------------+
| | | | | | |
+---------------------------------+----+----------+----------+--------------+-------------+
| Earnings per share - diluted | | | | 7.06p | 4.61p |
+---------------------------------+----+----------+----------+--------------+-------------+
All activities relate to continuing operations.
Cybit Holdings Plc
Consolidated Statement of Recognised Income and Expense
For the year ended 31st March 2009
+---------------------------------------------+-----------+-----------+-----------+
| | | 2009 | 2008 |
+---------------------------------------------+-----------+-----------+-----------+
| | | GBP | GBP |
+---------------------------------------------+-----------+-----------+-----------+
| | | | |
+---------------------------------------------+-----------+-----------+-----------+
| Foreign currency translation differences | | 41,275 | (10,565) |
+---------------------------------------------+-----------+-----------+-----------+
| | | | |
+---------------------------------------------+-----------+-----------+-----------+
| Net income/(expense) recognised directly in | | 41,275 | (10,565) |
| equity | | | |
+---------------------------------------------+-----------+-----------+-----------+
| Profit for the year | | 1,939,352 | 1,067,275 |
+---------------------------------------------+-----------+-----------+-----------+
| | | | |
+---------------------------------------------+-----------+-----------+-----------+
| Total recognised income and expense for the | | 1,980,627 | 1,056,710 |
| year | | | |
+---------------------------------------------+-----------+-----------+-----------+
Cybit Holdings Plc
Consolidated Balance Sheet
At 31st March 2009
+------------------------------+-----+----------+----------+-------------+-------------+
| | | | | 2009 | 2008 |
+------------------------------+-----+----------+----------+-------------+-------------+
| | | | | GBP | GBP |
+------------------------------+-----+----------+----------+-------------+-------------+
| | | | | | |
+------------------------------+-----+----------+----------+-------------+-------------+
| ASSETS | | | | | |
+------------------------------+-----+----------+----------+-------------+-------------+
| Non-current assets | | | | | |
+------------------------------+-----+----------+----------+-------------+-------------+
| Goodwill | | | | 5,605,403 | 5,138,890 |
+------------------------------+-----+----------+----------+-------------+-------------+
| Other intangible assets | | | | 4,814,571 | 4,377,714 |
+------------------------------+-----+----------+----------+-------------+-------------+
| Property, plant and | | | | 497,540 | 473,328 |
| equipment | | | | | |
+------------------------------+-----+----------+----------+-------------+-------------+
| Deferred tax assets | | | | 353,173 | 609,799 |
+------------------------------+-----+----------+----------+-------------+-------------+
| Other non-current assets | | | | 333,131 | 131,410 |
+------------------------------+-----+----------+----------+-------------+-------------+
| | | | | 11,603,818 | 10,731,141 |
+------------------------------+-----+----------+----------+-------------+-------------+
| | | | | | |
+------------------------------+-----+----------+----------+-------------+-------------+
| Current assets | | | | | |
+------------------------------+-----+----------+----------+-------------+-------------+
| Inventories | | | | 1,620,943 | 1,420,696 |
+------------------------------+-----+----------+----------+-------------+-------------+
| Trade and other receivables | | | | 8,393,418 | 8,004,116 |
+------------------------------+-----+----------+----------+-------------+-------------+
| Cash and cash equivalents | | | | 2,670,931 | 2,853,984 |
+------------------------------+-----+----------+----------+-------------+-------------+
| | | | | 12,685,292 | 12,278,796 |
+------------------------------+-----+----------+----------+-------------+-------------+
| | | | | | |
+------------------------------+-----+----------+----------+-------------+-------------+
| TOTAL ASSETS | | | | 24,289,110 | 23,009,937 |
+------------------------------+-----+----------+----------+-------------+-------------+
| | | | | | |
+------------------------------+-----+----------+----------+-------------+-------------+
| LIABILITIES | | | | | |
+------------------------------+-----+----------+----------+-------------+-------------+
| Current liabilities | | | | | |
+------------------------------+-----+----------+----------+-------------+-------------+
| Trade and other payables | | | | 6,801,560 | 7,669,406 |
+------------------------------+-----+----------+----------+-------------+-------------+
| Borrowings | | | | 1,050,372 | 614,566 |
+------------------------------+-----+----------+----------+-------------+-------------+
| Current tax payable | | | | 12,075 | 527,131 |
+------------------------------+-----+----------+----------+-------------+-------------+
| Provisions | | | | 291,829 | - |
+------------------------------+-----+----------+----------+-------------+-------------+
| | | | | 8,155,836 | 8,811,103 |
+------------------------------+-----+----------+----------+-------------+-------------+
| | | | | | |
+------------------------------+-----+----------+----------+-------------+-------------+
| Non-current liabilities | | | | | |
+------------------------------+-----+----------+----------+-------------+-------------+
| Trade and other payables | | | | 432,606 | 994,335 |
+------------------------------+-----+----------+----------+-------------+-------------+
| Borrowings | | | | 1,237,826 | 656,914 |
+------------------------------+-----+----------+----------+-------------+-------------+
| Deferred tax | | | | 361,088 | 426,458 |
+------------------------------+-----+----------+----------+-------------+-------------+
| TOTAL LIABILIITIES | | | | 10,187,356 | 10,888,810 |
+------------------------------+-----+----------+----------+-------------+-------------+
| | | | | | |
+------------------------------+-----+----------+----------+-------------+-------------+
| | | | | | |
+------------------------------+-----+----------+----------+-------------+-------------+
| NET ASSETS | | | | 14,101,754 | 12,121,127 |
+------------------------------+-----+----------+----------+-------------+-------------+
| | | | | | |
+------------------------------+-----+----------+----------+-------------+-------------+
| | | | | | |
+------------------------------+-----+----------+----------+-------------+-------------+
| EQUITY | | | | | |
+------------------------------+-----+----------+----------+-------------+-------------+
| Share capital | | | | 7,425,488 | 7,425,488 |
+------------------------------+-----+----------+----------+-------------+-------------+
| Share premium account | | | | 7,591,607 | 7,591,607 |
+------------------------------+-----+----------+----------+-------------+-------------+
| Merger reserve | | | | (1,141,368) | (1,141,368) |
+------------------------------+-----+----------+----------+-------------+-------------+
| Equity reserve | | | | 194,374 | 194,374 |
+------------------------------+-----+----------+----------+-------------+-------------+
| Foreign exchange reserve | | | | 30,409 | (10,866) |
+------------------------------+-----+----------+----------+-------------+-------------+
| Retained earnings | | | | 1,244 | (1,938,108) |
+------------------------------+-----+----------+----------+-------------+-------------+
| | | | | | |
+------------------------------+-----+----------+----------+-------------+-------------+
| | | | | 14,101,754 | 12,121,127 |
+------------------------------+-----+----------+----------+-------------+-------------+
Cybit Holdings Plc
Consolidated Cash Flow Statement
For the year ended 31st March 2009
+--------------------------------------------------+-----+-------------+-----------------+
| | | Year ended | Year |
| | | 31st March | ended |
| | | 2009 | 31st March 2008 |
+--------------------------------------------------+-----+-------------+-----------------+
| | | GBP | GBP |
+--------------------------------------------------+-----+-------------+-----------------+
| | | | |
+--------------------------------------------------+-----+-------------+-----------------+
| Operating activities | | | |
+--------------------------------------------------+-----+-------------+-----------------+
| Results for the period after tax | | 1,939,352 | 1,067,275 |
+--------------------------------------------------+-----+-------------+-----------------+
| Adjustments for: | | | |
+--------------------------------------------------+-----+-------------+-----------------+
| Depreciation and amortisation | | 1,531,607 | 981,212 |
+--------------------------------------------------+-----+-------------+-----------------+
| Loss on sale of property, plant and equipment | | - | 1,919 |
+--------------------------------------------------+-----+-------------+-----------------+
| Working capital changes | | (1,628,559) | (183,089) |
+--------------------------------------------------+-----+-------------+-----------------+
| Finance costs | | 1,796,370 | 1,568,467 |
+--------------------------------------------------+-----+-------------+-----------------+
| Taxation expense recognised in the income | | 204,503 | 627,561 |
| statement | | | |
+--------------------------------------------------+-----+-------------+-----------------+
| | | | |
+--------------------------------------------------+-----+-------------+-----------------+
| Cash generated from operations | | 3,843,273 | 4,063,345 |
+--------------------------------------------------+-----+-------------+-----------------+
| | | | |
+--------------------------------------------------+-----+-------------+-----------------+
| Corporation tax paid | | (357,926) | (28,754) |
+--------------------------------------------------+-----+-------------+-----------------+
| Finance costs of assigning debts to finance | | (1,715,311) | (1,529,642) |
| companies | | | |
+--------------------------------------------------+-----+-------------+-----------------+
| | | | |
+--------------------------------------------------+-----+-------------+-----------------+
| Net cash from operating activities | | 1,770,036 | 2,504,949 |
+--------------------------------------------------+-----+-------------+-----------------+
| | | | |
+--------------------------------------------------+-----+-------------+-----------------+
| | | | |
+--------------------------------------------------+-----+-------------+-----------------+
| Investing activities | | | |
+--------------------------------------------------+-----+-------------+-----------------+
| | | | |
+--------------------------------------------------+-----+-------------+-----------------+
| Purchase of subsidiary undertakings | | (999,031) | (4,783,421) |
+--------------------------------------------------+-----+-------------+-----------------+
| Net cash acquired with subsidiary undertakings | | - | 3,457,996 |
+--------------------------------------------------+-----+-------------+-----------------+
| Purchase of property, plant & equipment | | (263,396) | (149,457) |
+--------------------------------------------------+-----+-------------+-----------------+
| Purchase of other intangibles | | (1,650,435) | (859,393) |
+--------------------------------------------------+-----+-------------+-----------------+
| Proceeds from sale of property, plant & | | - | 1,222 |
| equipment | | | |
+--------------------------------------------------+-----+-------------+-----------------+
| Interest received | | 31,677 | 38,360 |
+--------------------------------------------------+-----+-------------+-----------------+
| | | | |
+--------------------------------------------------+-----+-------------+-----------------+
| Net cash used in investing activities | | (2,881,185) | (2,294,693) |
+--------------------------------------------------+-----+-------------+-----------------+
| | | | |
+--------------------------------------------------+-----+-------------+-----------------+
| | | | |
+--------------------------------------------------+-----+-------------+-----------------+
| Financing activities | | | |
+--------------------------------------------------+-----+-------------+-----------------+
| Interest paid | | (112,736) | (77,185) |
+--------------------------------------------------+-----+-------------+-----------------+
| Proceeds from share issues | | - | 364,178 |
+--------------------------------------------------+-----+-------------+-----------------+
| Receipts from borrowings | | 1,039,503 | 500,000 |
+--------------------------------------------------+-----+-------------+-----------------+
| Receipts from short-term borrowings | | - | 3,250,000 |
+--------------------------------------------------+-----+-------------+-----------------+
| Repayments of short-term borrowings | | - | (3,250,000) |
+--------------------------------------------------+-----+-------------+-----------------+
| Finance lease repayments | | (30,367) | (86,801) |
+--------------------------------------------------+-----+-------------+-----------------+
| Repayment of loans | | (219,516) | (221,875) |
+--------------------------------------------------+-----+-------------+-----------------+
| | | | |
+--------------------------------------------------+-----+-------------+-----------------+
| Net cash generated from financing activities | | 676,884 | 478,317 |
+--------------------------------------------------+-----+-------------+-----------------+
| | | | |
+--------------------------------------------------+-----+-------------+-----------------+
| Net changes in cash and cash equivalents | | (434,265) | 688,573 |
+--------------------------------------------------+-----+-------------+-----------------+
| Exchange differences | | 24,120 | (388) |
+--------------------------------------------------+-----+-------------+-----------------+
| | | | |
+--------------------------------------------------+-----+-------------+-----------------+
| Net cash and cash equivalents - beginning of | | 2,425,689 | 1,737,504 |
| year | | | |
+--------------------------------------------------+-----+-------------+-----------------+
| | | | |
+--------------------------------------------------+-----+-------------+-----------------+
| Net cash and cash equivalents - end of year | | 2,015,544 | 2,425,689 |
+--------------------------------------------------+-----+-------------+-----------------+
NOTES TO THE FINANCIAL STATEMENTS
1. The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in section 434 of the Companies Act
2006.
2. The financial information has been extracted from the Group's 2009 financial
statements. Those financial statements have not yet been delivered to the
Registrar nor have the auditors reported on them.
3. Basis of preparation
The preliminary results have been prepared under the historical cost convention
and in accordance with International Financial Reporting Standards (IFRS) as
adopted by the European Union.
4. Earnings per share
The calculation of the basic earnings per share is based on the profits
attributable to ordinary shareholders divided by the weighted average number of
shares in issue during the year.
For diluted earnings per share, the weighted average number of ordinary shares
in issue is adjusted to assume conversion of all dilutive potential ordinary
shares. The group has two classes of dilutive potential ordinary shares: those
share options granted to employees where the exercise price is less than the
average market price of the company's ordinary shares during the year and the
remaining unexercised warrants issued in respect of the acquisitions of
BlueFinger Limited and Truck24 AG.
At 31st March 2009 there were 2,660,233 (2008: 799,060) anti dilutive options
and 797,032 (2008: nil) anti dilutive warrants.
Reconciliations of the earnings and weighted average number of shares used in
the calculations are set out below.
+----------------------+-----------+------------+-----------+-----------+------------+-----------+
| | 2009 | 2008 |
+----------------------+------------------------------------+------------------------------------+
| | Earnings | Weighted | Per-share | Earnings | Weighted | Per-share |
| | | average | amount | | average | amount |
| | | number | | | number | |
| | | of | | | of | |
| | | shares | | | shares | |
+----------------------+-----------+------------+-----------+-----------+------------+-----------+
| | GBP | No. | Pence | GBP | No. | Pence |
+----------------------+-----------+------------+-----------+-----------+------------+-----------+
| | | | | | | |
+----------------------+-----------+------------+-----------+-----------+------------+-----------+
| Basic earnings per | | | | | | |
| share | | | | | | |
+----------------------+-----------+------------+-----------+-----------+------------+-----------+
| | | | | | | |
+----------------------+-----------+------------+-----------+-----------+------------+-----------+
| Earnings | 1,939,352 | 27,451,768 | 7.06p | 1,067,275 | 22,943,055 | 4.65p |
| attributable to | | | | | | |
| ordinary | | | | | | |
| shareholders | | | | | | |
+----------------------+-----------+------------+-----------+-----------+------------+-----------+
| | | | | | | |
+----------------------+-----------+------------+-----------+-----------+------------+-----------+
| Effect of dilutive | | | | | | |
| securities | | | | | | |
+----------------------+-----------+------------+-----------+-----------+------------+-----------+
| Warrants | | 12,550 | | | 175,328 | |
+----------------------+-----------+------------+-----------+-----------+------------+-----------+
| Options | | - | | | 24,468 | |
+----------------------+-----------+------------+-----------+-----------+------------+-----------+
| | | | | | | |
+----------------------+-----------+------------+-----------+-----------+------------+-----------+
| Diluted earnings per | | | | | | |
| share | | | | | | |
+----------------------+-----------+------------+-----------+-----------+------------+-----------+
| Adjusted earnings | 1,939,352 | 27,464,318 | 7.06p | 1,067,275 | 23,142,851 | 4.61p |
+----------------------+-----------+------------+-----------+-----------+------------+-----------+
5. Dividends
No dividends have been paid in respect of the year.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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