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RNS - Preliminary Results for the year ended 31 March 2010

release date: 09/06/2010

Focus Solutions Group plc

(‘Focus’ or ‘the Group’)

Preliminary Results for the year ended 31 March 2010

Focus Solutions Group plc (AIM: FSG), a supplier of enterprise solutions to the financial services industry, is pleased to announce its Preliminary Results for the year ended 31 March 2010.

Financial highlights

  • Total revenues up 3% to £9.85 million (FY2009: £9.60 million)
  • Operating profit up 20% to £1.92 million (FY2009: £1.60 million)
  • Adjusted operating profit* up 33% to £2.27 million (FY2009: £1.71 million)
  • EBITDA before exceptional items up 42% to £2.85 million (FY2009: £2.01 million)
  • Profit before tax up 15% to £2.04 million (FY2009: £1.78 million)
  • Net operating margins 19% (FY2009: 17%)
  • Net cash balance £2.40 million (FY2009: £4.00 million)
  • Earnings per share:
    • Fully diluted earnings per share 4.75 pence (FY2009: 5.26 pence)
    • Adjusted fully diluted earnings per share 6.18 pence (FY2009: 5.43 pence)**
  • Licence and support revenue increased to 53% (FY2009: 18%) of total revenue

*Adjusted operating profit comprises operating profit before exceptional items
**As a result of the recognition of a deferred tax asset, the Directors consider that it is appropriate to provide information on a pre-deferred tax fully diluted earnings per share basis

Operating highlights

  • Significant new contract wins during the year included:
    • Mastek £2.75 million
    • Tenet £2.00 million
    • AWD Chase de Vere £1.40 million
  • HSBC went live with phase 2 of their wealth management Point-Of-Sale solution to over 400 users
  • US Patent granted to enable entry into the strategically important US market
  • Appointment of Ron Whatford as Non-Executive Director to the Board of Directors
  • Contract extension with Assureweb, enabling the Group to share in the transactional based revenue for all electronic applications that are submitted via the portal within focus:360°
  • Achieved ‘Superior’ rating from Investor in Customers (“IIC”) for the service experience enjoyed by the Group’s customers
  • Major progress in transition of business model towards higher licence revenues
  • Global growth plans, underpinned by Mastek contract win, enabling Mastek to resell focus:360° across North America, Europe  and Asia Pacific regions
  • Entered the new financial year with the Group’s strongest ever pipeline

Commenting on the results, Richard Stevenson, Chief Executive, said: “The Group has again achieved record sales and profits which can be attributed to the investment we have made in our products, the dedication of our staff and the detailed market knowledge we have in our core sectors.  We are excited about the opportunities we have moving forward as we look to diversify our products and geographic markets, and also to continue to meet the needs of our clients who are facing significant regulatory changes.  Building on significant recent contract wins, we have entered this year with the strongest pipeline in the Group’s history and look forward to delivering on these opportunities.”

Commenting on the results, Alastair Taylor, Chairman, said: “These results demonstrate significant progress against our objectives of increasing the proportion of the Group’s revenue from higher margin licences, recurring and transactional revenues; diversifying the customer base; and leveraging the Group’s leading position in the UK and Ireland to secure an increasing number of international opportunities, as well as developing a number of successful indirect channels to market.”

To read the full announcement, please click here.