DXS INTERNATIONAL Plc
announcement of final results
The Directors of DXS International plc are pleased to announce the Company's Final Results for the year ending 30th April 2013 and the following information has been extracted from the Company's audited accounts for the year to 30th April 2013.
Highlights
- Profits tripled to over £225,000;
- Earnings per share increased to 0.86p;
- Continued substantial investment in software development;
- 12 Clinical Commissioning Groups signed to date;
- Integration agreement signed with the final major Clinical System provider ;
- Access now available for 100% of UK GPs;
BUSINESS REVIEW
The Directors of DXS International plc are pleased to announce the results of the Company for the 12 month period ending 30th April 2013. While revenue for this period has remained unchanged, the profit has increased. However the more exciting developments, resulting from the development of services for the newly formed Clinical Commissioning Groups (CCG's), which replaced Primary Care Trusts (PCT's) in April 2013, are only just beginning to materialize. Thus, we are particularly pleased to announce that the current revenue run rate is in excess of £1,700,000 per annum, representing growth of 17% over the 2013 turnover. This is as a result of our ability to respond quickly to the various needs of CCG's in providing them with solutions which enable them to effectively distribute their local Care Pathways, Referral Forms, Guidance and Service Providers, Prescribing Advice and Patient Education. One of the key benefits to CCG's is that by using DXS they have a single platform across the range of clinical systems through which to communicate with their clinicians. CCG's see the effective use of their recommended best evidence medicine as one of the key ways to achieve their QIPP ("Quality, Innovation, Productivity and Prevention") agenda, which is reducing costs without adversely affecting healthcare outcomes.
The foregoing is possible because DXS has been integrated with various clinical systems INPS, ISOFT, Seetec and Microtest for a number of years now and has more recently completed an integration with the three EMIS systems. In addition, DXS is delighted to announce that it has finally signed an integration with TPP, the remaining Clinical System provider. This means that DXS now has potential access to 100% of GP practices throughout the UK.
DXS continues to innovate and has also recently completed a triaging solution at the request and specification of North West Surrey CCG. This is working well and provides us with an additional solution to offer the CCG market.
DXS has thus far signed twelve CCGs to the basic care pathway service with a further ten having indicated that they clearly want the DXS solution. With 250 CCG's and Health Boards across the UK, the potential growth for DXS over the next few years is indeed exciting. Our immediate focus now is on aggressive sales and marketing with increased resources in content management and training to support the new emerging market. To achieve this we have recently expanded the sales team by recruiting two experienced salespeople, based in the North of England.
We thank the management staff for their continued commitment and hard work.
Bob Sutcliffe
Chairman
REPORT OF THE DIRECTORS
The directors present their annual report and the unaudited financial statements for the year ended 30th April 2013. The CEO's statement which is included in this report includes a review of the achievements of the company, the trading performance, financial position and trading prospects.
PRINCIPAL ACTIVITIES
The group's principal activities during the period were the development and distribution of clinical decision support to General Practitioners, Nurses and Retail Pharmacies in the United Kingdom and South Africa. The commercial side included the licensing of DXS to various CCG's, the sale of e-detailing opportunities to the pharmaceutical industry, the UK Primary Care sector and the licensing of DXS technology to healthcare publishers.
Principal Risks
Failure to achieve predicted quantities of DXS contracts and slower development of additional revenue streams may result in revenues growing more slowly than anticipated.
Financial Instruments
At this stage the Group is not faced with risk relating to interest rates on loans, credit and liquidity.
Payment of Creditors
While the Group does not follow any standard payment practice, the Group has agreed terms of payment with the majority of its creditors of 30 days. The company has actually achieved payment with the majority of its creditors of 25 days.
Dividend
The Directors do not recommend a dividend.
Research and Development
The company continues to invest into research and development both local and internationally. With the rapid emergence of Clinical Commissioning Groups in the UK healthcare sector and their requirement to achieve £20 billion of savings by 2015, the demands of CCG's for DXS to design and create new solutions to achieve this is on-going. Each newly developed product represents additional revenue streams for the company.
Directors' Responsibilities
The Directors are responsible for preparing the financial statements for each financial year. The directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
- Select suitable accounting policies and apply them consistently.
- Make judgments and accounting estimates that are reasonable and prudent.
- State whether UK accounting principles have been followed subject to any material departures disclosed and explained in the financial statements and,
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in the business.
The directors are responsible for keeping proper accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditors are aware of that information.
Approved by the board and signed on its behalf by:
D A Immelman
Director
26th September 2013
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2013
| 2013 | 2012 | |||||||
| £ | £ | |||||||
| Turnover | 1,436,317 | 1,404,997 | ||||||
| Cost of sales | (257,670) | (390,529) | ||||||
| ________ | ________ | |||||||
| 1,178,647 | 1,014,468 | |||||||
| Administrative expenses | (995,670) | (987,556) | ||||||
| ________ | ________ | |||||||
| Operating profit/ (loss) | 182,977 | 26,912 | ||||||
| Other interest receivable and similar income | 1,772 | 1,618 | ||||||
| Interest payable and similar charges | (8,875) | (10,108) | ||||||
| ________ | ________ | |||||||
| Profit/ (Loss) on ordinary activities before taxation | 175,874 | 18,422 | ||||||
| Tax on Profit on ordinary activities | 49,675 | 51,169 | ||||||
| ________ | ________ | |||||||
| Profit for the year | 225,549 | 69,591 | ||||||
| Profit per share-basic & fully diluted | 0.86p | 0.25p | ||||||
All amounts relate to continuing activities
All recognised gains and losses are included in the profit and loss account
BALANCE SHEET
AS AT 30 APRIL 2012
| Group | Group | Company | Company | ||||
| 2013 | 2012 | 2013 | 2012 | ||||
| £ | £ | £ | £ | ||||
| Fixed Assets | |||||||
| Intangible assets | 2,046,095 | 1,918,418 | - | - | |||
| Tangible assets | 4,835 | 11,909 | - | - | |||
| Investments | - | - | 880,913 | 459,338 | |||
| ________ | ________ | ________ | ________ | ||||
| 2,050,930 | 1,930,327 | 880,913 | 459,338 | ||||
| __________ | __________ | __________ | __________ | ||||
| Current assets | |||||||
| Debtors | 539,971 | 548,210 | 29,917 | 23,944 | |||
| Cash at Bank and in hand | 155,269 | 54,324 | 90,312 | 33,634 | |||
| __________ | __________ | __________ | __________ | ||||
| 695,240 | 602,534 | 120,229 | 57,608 | ||||
| Creditors: amounts falling due | |||||||
| within one year | (875,587) | (884,887) | (80,942) | (29,365) | |||
| __________ | __________ | __________ | __________ | ||||
| Net current assets / (liabilities) | (180,347) | (282,353) | 39,287 | 28,243 | |||
| __________ | __________ | __________ | __________ | ||||
| Total assets less current liabilities | 1,870,583 | 1,647,974 | 920,200 | 487,581 | |||
| Creditors: amounts falling due after more than one year | (532,349) | (970,289) | - | - | |||
| __________ | __________ | __________ | __________ | ||||
| 1,338,234 | 677,685 | 920,200 | 487,581 | ||||
| Capital and reserves | |||||||
| Called up share capital | 107,695 | 92,845 | 107,695 | 92,845 | |||
| Share Premium account | 1,196,204 | 776,054 | 1,196,204 | 776,054 | |||
| Profit and loss account | 34,335 | (191,214) | (383,699) | (381,318) | |||
| _________ | _________ | _________ | _________ | ||||
| Equity shareholders' funds | 1,338,234 | 677,685 | 920,200 | 487,581 | |||
Approved by the Board for issue on 26th September 2013
| D Immelman Director | R K Sutcliffe Director |
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2013
1 Accounting policies
1.1 Accounting convention
The financial statements are prepared under the historical cost convention.
1.2 Compliance with accounting standards
The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) which have been applied consistently (except as otherwise stated).
1.3 Going concern
At 30 April 2013, the Group had net current liabilities and deferred income totalling £(180,347) (2012 - £(282,353). These figures include deferred income which is not repayable of £393,072 (2012 £272,793). The directors have reviewed the current 2013/14 management accounts as well as preparing a financial forecast for 2014 on the basis of various trading and working capital assumptions to determine the Group's funding requirements.
On the basis of the forecasting exercise and the continued availability of debtor finance the directors have concluded that the Group will be able to operate for a period of at least twelve months from the date of approval of these financial statements.
There can be no certainty that the outcome of all the matters discussed above will be as forecast by the directors, however there are no matters or events known by the directors which would preclude the adoption of the going concern basis in the preparation of these financial statements. The financial statements do not include any adjustments to the value of balance sheet assets or liabilities which would result should the going concern not be valid.
1.4 Basis of consolidation
The group financial statements consolidate those of the company and of its subsidiaries using the acquisition method of accounting. All companies within the group make up their accounts to the same date.
Results of subsidiary undertakings acquired during the financial period are included from the effective date on which control is acquired. The separate net assets of newly acquired subsidiary undertakings are incorporated into the financial statements on the basis of the fair value to the group as at the effective date.
Goodwill on consolidation is being amortised in equal instalments over its estimated useful economic life of 20 years.
1.5 Turnover
Turnover represents amounts receivable under advertising contracts and is recognised on a straight line over the life of the contract in accordance with the substantial risks and rewards of the contract. Turnover invoiced in advance is deferred and included with current liabilities. A fair proportion of the revenue in respect of the initial contract for each customer is taken to revenue when the contract is signed.
1.6 Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Plant & equipment 3-4 years straight line
1.7 Intangible fixed Assets
Deferred Development expenditure is amortised over 5 years on a straight line basis from the date that the specific product is completed and is available for distribution.
The Computer software is the basis for the software development of the company. The software is continually updated and improved. . The cost of the Computer software is being amortised in equal instalments over its estimated useful economic life of 20 years.
1.8 Foreign Currency Translation
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rates ruling at the date of the transaction. All differences are taken to profit and loss account.
1.9 Taxation
The taxation charge in the profit and loss account is based on the taxable profits for the period at current rates of taxation and takes into account any provision for deferred taxation.
1.10 Deferred taxation
Deferred taxation is provided in full on timing differences arising from the different treatment of items for accounting and taxation purposes which are expected to reverse in the future, calculated at current tax rates, where deemed material. Deferred tax assets and liabilities are not discounted.
1.11 Research and Development
Research expenditure is written off to the profit and loss account in the year in which it is incurred. Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit.
1.12 Operating leases
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
1.13 Company Profit and Loss Account
The company has taken advantage of the exemption permitted under Section 406 of the Companies Act 2006 and has not presented its own profit and loss account in these financial statements. The company's loss after tax for the year was £(2,381) (2012 - profit of £60,405).
1.14 Fixed Asset Investments
Fixed asset investments are stated at cost less provision for permanent diminution in value
The Directors confirm that the Company has complied with Guidance Note 69.1 of the ISDX Rules for Issuers throughout the period.
The Directors of DXS International plc accept responsibility for this announcement.
Contact Information:
David Immelman
DXS International plc
Wrecclesham House
Wrecclesham
Farnham
GU10 4PS
Tel: 01252 719800
Website: www.dxs-systems.com
Corporate Adviser:
David Papworth
City & Merchant Limited,
Salisbury House,
29 Finsbury Circus,
London EC2M 5QQ
Tel: 020 7101 7676