KEYEDIN SOLUTIONS HLDG LTD 
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Press Release 23 March 2010
Atlantic Global Plc
("Atlantic Global" or "the Group")
Preliminary Results
Atlantic Global Plc (AIM: ATL), the specialist provider of integrated business
and resource management software applications, today announces its Preliminary
Results for the year ended 31 December 2009.
Financial and Operational Summary
* Turnover of £1,350,000 (2008: £2,176,000)
* Losses before taxation of £130,000 (2008 profit: £401,000)
* The Group returned to profitability in the second half of the year
* Net cash balance of £2,032,000 (2008: £2,159,000 )
* Loss per share was 0.57 pence (2008: 1.40 pence)
* New blue-chip OnDemand customers include RCUK Shared Service Centre and
further departments within GlaxoSmithKline Plc and new Project Portfolio
Management (PPM) software customers include ADP Dealer Services, Admiral
Insurance, Sindicatum and Carbon Capital
* Launch of new website and "Live Demo" area
Prospects for 2010
* Continue to build on the progress made in 2009 by selling the next
generation of products into the market
* Increase customer base through innovative website and new partnership
opportunities with selling organisations to develop routes to market
Adrian Bradshaw, Chairman of Atlantic Global commented:
"I am pleased to report these results with trading in line with the Board's
expectations. Overall, market conditions remain challenging but feedback
received from existing and new customers, partners and potential partners
regarding the latest product launches gives the Board confidence that the
current year will show an improvement on 2009.
"The Board is satisfied with the pipeline of new business prospects as well as
the possibilities of new partnership opportunities. The Group is pleased to
report that it has already secured approximately 63% of its budgeted 2010
support revenue and is well placed for future growth."
- Ends -
For further information please contact:
Atlantic Global Plc
Eugene Blaine, Managing Director Tel: +44 (0) 1274 863 300
Rupert Hutton, Finance Director
eugene.blaine@atlantic-global.com
< http://www.atlantic-global.co.uk/>
rupert.hutton@atlantic-global.com
Daniel Stewart & Company plc
Paul Shackleton / Christopher Theis Tel: +44 (0) 207 776 6550
Media enquiries:
Abchurch Communications
Sarah Hollins / Nick Probert Tel: +44 (0) 20 7398 7715
nick.probert@abchurch-group.com www.abchurch-group.com
<http://www.abchurch-group.com/>
Chairman's Statement
Introduction
I am pleased to report Atlantic Global's results for the year ended 31 December
2009. In the second half of the year, the Group returned to profitability,
maintained its investment in Research and Development and launched the new
Organisation Planning Module and the Client Contract and Billing Management
functionality.
Results
In the second half of the year, Atlantic Global returned to profit, with profits
before taxation of £18,000 compared with a loss of £148,000 in the first half of
2009. This improvement is in line with the Board's expectations as expressed in
the September 2009 interim results statement and December 2009 trading update.
The Group produced losses before taxation for the twelve month period to 31
December 2009 of £130,000 (2008 profit: £401,000) while turnover was £1,350,000
(2008: £2,176,000). This result was achieved despite the Group increasing its
investment in Research and Development as well as operating in the difficult
economic climate. The loss per share was 0.57 pence (2008 profit per share:
1.40 pence).
Atlantic Global continued to invest in and develop its products throughout
2009, carrying out the highest level of product development in the Group's
history, both in terms of productivity and cost, £403,000 (2008: £386,000).
Despite this investment, the Group broadly maintained its net cash balance for
the period of £2,032,000 (2008: £2,159,000).
New Clients
The Group is pleased to announce that it secured an increasing number of
blue-chip OnDemand customers throughout the year. These new customers include
RCUK Shared Service Centre and further departments within GlaxoSmithKline Plc.
The Group also gained new Project Portfolio Management (PPM) software customers,
including ADP Dealer Services, Admiral Insurance, Sindicatum and Carbon
Capital. We made new sales to existing customers XChanging, GlaxoSmithKline,
Pfizer and EuroDirect Database Marketing.
Recurring Income
The Group's level of recurring support and maintenance income for 2009 was
£668,000 (2008: £766,000), a drop year-on-year as some clients reduced their
numbers of supported licences; however no major client terminated support.
Support revenue was also lower as Atlantic Global upgraded existing clients to
the SaaS model, securing extra revenue for the Group in the process. The
OnDemand contracts closed during the period were £86,000, with £44,000 of these
contracts being accounted for and delivered during 2010. This remains a solid
base for the Group, especially given the positive indication of monthly revenue
intake from the SaaS contacts.
Operating Review
Our stated aim for 2009 was to finalise the next generation of the Group's
products, so that in 2010 we could sell these products into the market. 2009
saw the launch of the new OnDemand / SaaS service which is a cost effective,
easy-to-use business management software solution designed to address the
Project Portfolio Management (PPM), Professional Services Automation (PSA) and
the Financial & Resource Forecasting markets.
The Group is very pleased with the quality and functional range of the software
and the range of deployment options developed throughout 2009. The new OnDemand
service represents a significant investment which has been ongoing since March
2006. It provides Atlantic Global and its customers with the following
benefits:
* Deployment - the OnDemand product provides a flexible range of deployment
options ranging from:
* On-Premise: Traditional Client Installation
* Hosted: Dedicated Customer Installation on Atlantic Global's dedicated
outsourced infrastructure or
* OnDemand: All customers share the same Atlantic Global Software as a
Service (SaaS) outsourced infrastructure.
* Wider Geographic Coverage - the OnDemand product has complete Multi-Currency
and Multi-Lingual capability with English (UK), English (US) and French
provided as standard. Additional languages are available on request, as
demanded by customers.
Routes to Market
Atlantic Global continues to develop its routes to market through a mixture of
direct and indirect selling organisations. We believe that the new
functionality and the ease of deployment has made it easier for the Group to
partner with other organisations as this has removed the need for partners to
have the expert technical skills to install the product. The Group has
negotiated an active sales partnership agreement and are actively exploring
several further partner opportunities. Atlantic Global is also now able to
penetrate the small user market almost remotely, aiming at sub 100 users which
in current market conditions could be an attractive market to us, as the use of
SaaS applications increases apace.
Sales and Marketing
The Group has made significant progress in this area with the launch of its new
website, www.atlantic-global.com <http://www.atlantic-global.com/>.
The new website includes a new resource centre
(http://www.atlantic-ec.com/resources.html
) where customers can register to access online video tutorials and
download the latest product literature, product updates and case studies.
In addition, the new "Live Demo" area has been launched
(http://www.atlantic-ec.com/register_for_demo). This enables prospective
customers to easily register and use the product through the use of a
demonstration database. When a user logs into the website, they can choose to
simulate a range of configurations which have been created to address the three
key markets as described above. We continually analyse the traffic on the
website and in the "Live Demo" database which provides a valuable source of
sales leads.
This new approach allows for potential customers to trial with the system prior
to receiving a demonstration from the Group. These prospective customers can
continue to use the system afterwards to help resolve any queries that they may
have.
This has the advantage of giving customers greater access to our solution and
lowers the administration and sales effort dealing with early stage enquiries.
This provides a valuable means of qualifying sales leads as it often means that
prospective customers who are in contact with the Group after having had a high
level of exposure to our solutions should be further down their sales cycle.
The "Live Demo" is a key selling tool which means that Atlantic Global can now
effectively sell its solution worldwide 24 hours per day, 7 days per week. The
"Live Demo" area also provides a useful platform for existing customers to
explore new features.
Repurchase of Company Shares
For a number of years, Atlantic Global has maintained relatively high cash
levels reflecting the cash generative nature of the business. The return on
this surplus cash is increasingly modest and the Directors believe that this
cash could be better used by continuing to repurchase some of the Company's
shares for cancellation. The Directors believe this will enhance shareholder
value and accordingly, we will seek re-approval at the forthcoming Annual
General Meeting from shareholders to repurchase up to 10% of the Company's
outstanding share capital from time to time. During 2009, the Company
repurchased 313,000 shares at a cost of just over £51,000.
Current Trading
In the year to date, trading is in line with the Board's expectations. Overall,
market conditions remain challenging but feedback received from existing and new
customers, partners and potential partners regarding the latest product launches
gives the Board confidence that the current year will show an improvement on
2009.
The Board is satisfied with the pipeline of new business prospects as well as
the possibilities of new partnership opportunities. The Group is pleased to
report that it has already secured approximately 63% of its budgeted 2010
support revenue.
Annual General Meeting
We shall be holding our AGM on 6 May 2010 at the Group's Head Office at Woodland
Park, Bradford Road, Chain Bar, Cleckheaton, West Yorkshire, BD19 6BW.
The Board extends the invitation to all shareholders in the hope that as many as
possible attend.
Dividend
The Directors are not proposing a full year dividend for the year ended 31
December 2009, (2008: 0.4 pence per share). The Directors will return to their
progressive dividend policy once there is a return to profitability.
People
We recognise the contribution, commitment and enthusiasm made by all Group
employees during 2009 which was a difficult year and which involved a
significant effort to further develop Atlantic Global's products and identify
routes to market.
Adrian Bradshaw
Chairman
23 March 2010
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2009
2009 2008
£ 000 £ 000
Revenue 1,350 2,176
Cost of sales (927) (1,186)
------- ---------
Gross profit 423 990
------- ---------
Administration and other operating expenses (569) (686)
------- ---------
Operating (loss) / profit (146) 304
Finance income 16 97
(Loss)/profit before tax (130) 401
Income tax credit/(expense) - (81)
------- ---------
------- ---------
(Loss)/profit and total comprehensive income for the period
attributable to owners of the parent (130) 320
------- ---------
(Loss) / Earnings per share
Basic & diluted (pence) (0.57)p 1.40p
----------- ---------
Consolidated statement of changes in equity
for the 12 months ended 31 December 2009
12 months ended 31 December Share Share Merger Profit Capital Total
2009 Capital premium reserve and loss redemption
account account reserve
£000 £000 £000 £000 £000 £000
Balance brought forward at 1,139 1,578 2,538 (59) 6 5,202
1 January 2009
Dividends paid - - - (91) - (91)
Share buy back (16) - - (52) 16 (52)
----------------------------------------------------
Transactions with owners (16) - - (143) 16 (143)
Loss and total - - - (130) - (130)
comprehensive expense for
the period
----------------------------------------------------
Balance at 31 December 2009 1,123 1,578 2,538 (332) 22 4,929
12 months ended 31 December Share Share Merger Profit Capital Total
2008 Capital premium reserve and loss redemption
account account reserve
£000 £000 £000 £000 £000 £000
Balance brought forward at 1,145 1,578 2,538 (234) - 5,027
1 January 2008
Dividends paid - - - (125) - (125)
Share buy back (6) - - (20) 6 (20)
----------------------------------------------------
Transactions with owners (6) - - (145) 6 (145)
Profit and total - - - 320 - 320
comprehensive income for
the period
----------------------------------------------------
Balance at 31 December 2008 1,139 1,578 2,538 (59) 6 5,202
Consolidated Balance Sheet
as at 31 December 2009
2009 2008
£ 000 £ 000
Assets
Non-current assets
Intangible assets 2,792 2,792
Property, plant and equipment 13 15
Deferred tax asset 52 9
---------------------
Total non-current assets 2,857 2,816
Current assets
Trade and other receivables 507 936
Income tax receivable 12 -
Cash and cash equivalents 2,032 2,159
---------------------
2,551 3,095
---------------------
Total assets 5,408 5,911
Equity and liabilities
Liabilities
Current liabilities
Trade and other payables 479 681
Income tax payable - 28
---------------------
Total liabilities 479 709
Equity attributable to owners of the parent
Share capital 1,123 1,139
Share premium account 1,578 1,578
Merger reserve 2,538 2,538
Retained earnings (332) (59)
Capital redemption reserve 22 6
---------------------
5,202
Total equity 4,929
---------------------
Total equity and liabilities 5,408 5,911
Consolidated Cash Flow Statement
for the year ended 31 December 2009
2009 2008
£000 £000
Cash flows from operating activities
(Loss)/profit for the year (130) 320
Adjustments for:
Financial income (16) (97)
Income tax - 81
Depreciation 10 14
-------------------------------
Operating (loss)/profit before changes in
working capital and provisions (136) 318
Decrease in trade and other receivables 429 431
(Decrease) in trade and other payables (202) (86)
Income tax (paid)/received (83) 8
-------------------------------
Net cash from operating activities 8 671
-------------------------------
Cash flows from investing activities
Interest received 16 97
Acquisition of property, plant and equipment (8) (10)
-------------------------------
Net cash from investing activities 8 87
-------------------------------
Cash flows from financing activities
Purchase of own shares (52) (20)
Dividends paid (91) (125)
-------------------------------
Net cash used in financing activities (143) (145)
-------------------------------
Net (decrease)/increase in cash and cash
equivalents (127) 613
Cash and cash equivalents at the beginning of
the period 2,159 1,546
-------------------------------
Cash and cash equivalents at the end of the
period 2,032 2,159
-------------------------------
Notes
Relating to the consolidated financial statements
1 Publication of non-statutory financial statements
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in Sections 434 and 435 of the
Companies Act 2006.
The consolidated statement of comprehensive income, the consolidated statement
of changes in equity, the consolidated balance sheet at 31 December 2009 and the
consolidated cash flow statement have been extracted from the Group's financial
statements upon which the auditors opinion is unqualified and does not include
any statement under section 498(2) or 498(3) of the Companies Act 2006. Those
financial statements have not yet been delivered to the Registrar.
The statutory accounts for the year ended 31 December 2008 have been delivered
to the registrar, contained an unqualified audit report and did not include a
statement under section 237(2) or 237(3) of the Companies Act 1985.
The audited accounts will be posted to all shareholders in due course and will
be available on request by contacting the Company Secretary at the Company's
Registered Office.
2 Basis of preparation
The preliminary announcement has been prepared under the historic cost
convention and in accordance with International Financial Reporting Standards
(IFRS) as adopted by the European Union.
3 Earnings per share
Basic earnings per share
The calculation of basic earnings per share at 31 December 2009 was based on the
(loss)/profit attributable to ordinary shareholders of £(130,000) (2008:
£320,000) and a weighted average number of ordinary shares outstanding of
22,664,024 (2008: 22,862,692).
Diluted earnings per share
There were no potentially dilutive options in issue in 2009 or 2008 and
consequently there is no difference between basic and diluted earnings per
share.
4 Share capital
2009 2008
£000 £000
Authorised
75,000,000 Ordinary shares of 5p each 3,750 3,750
Allotted, called up and fully paid
22,471,350 (2008: 22,784,350) Ordinary shares of 5p each 1,123 1,139
The holders of ordinary shares are entitled to receive dividends as declared
from time to time and are entitled to one vote per share at meetings of the
Company.
The movement in shares in the year relates to the purchase of 313,000 ordinary
shares of 5p by the company.
[HUG#1396354]
ATLANTIC GLBL : Preliminary Results
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