AUDITED FINAL RESULTS
The Directors of
Financial and Operational Highlights
The year under review has seen a number of significant achievements:
- Turnover increased by 50% from £1.81m to £2.72m;
- Cash at bank £480,000 as at
30 April 2015;
- 16 new CCGs since 30 April bringing the total to 36 CCGs representing 1,400 practices;
- Full Rollout Approval received from the NHS of GPSoC agreement on
14 September 2015;
- Strong future pipeline of prospective CCGs.
Commenting on the results, Chairman
"During the past year, the Company has invested heavily to significantly mature its systems and their robustness, thanks largely to the stringent but necessary NHS requirements. This enhanced capability offers any customer, whether in the
The Company continues to innovate and is now poised for continued growth and many exciting new revenue streams are expected during the next twelve months."
For further information please contact:
DXS International plc
| ||0207 101 7676|
| ||07860 489571|
The following information has been extracted from the Company's audited accounts for the year to
The Directors of
The year ending
- Revenue grew by 50% compared with 2014.
- DXS has received FRA (Full Rollout Approval) on the 14th
September 2015. This enables all existing and new DXS Clinical Commissioning Groups "CCG" clients to purchase DXS point of Care via the National Framework Agreement.
- During 2014 DXS implemented an ongoing program of a number of R&D projects, mainly brought about by customer needs within the
- The result of this rapid growth has required considerable staff recruitment bringing the staff complement to 90% of full strength for the current number of customers. The total head count now numbers 80.
Revenue grew from £1,815,795 at
A lot of effort from DXS' Directors and Staff over the last 4 months culminated in the Company's award of FRA (Full Rollout Approval) under the new GP Systems of Choice ("GPSoC"), part of the NHS' overall procurement structure, which was announced on
The healthcare market demands innovation and DXS continues with a program of R&D and has added new modules to our existing Point of Care Solution, all aimed at achieving reduced cost and improved quality of care. Our policy is also to partner with innovative solutions/services that we can leverage off our existing footprint. One area of focus is chronic disease. For example, Diabetes alone consumes 10% of the
All GPSoC2 winners are required to meet a minimum set of requirements and are expected to evolve during the life of the contract. Thus, DXS has spent the past period putting in place the resources and systems to bring the Company to the required levels of conformance. This has seen the staff complement rise to approximately 80 (of which 13 are freelance) supported by various new management solutions which include customer support, content management, clinical safety and disaster backup and management.
Our cash position remains positive and at the year end, cash at bank stood at £480,928.
The audited profit for the year ending
This margin is better than expected due to the gearing up of staff and required systems. The headcount increased from 38 at
The Company is now poised for continued growth and many exciting new revenue streams are expected to emerge during the next twelve months.
I particularly want to thank all DXS staff for their ongoing effort and contribution to ensuring that DXS has achieved FRA and in parallel grown the revenue by a significant margin.
REPORT OF THE DIRECTORS
The directors present their annual report and the audited financial statements for the year ended
The directors for the year were:
D Immelman - CEO
S Bauer - MD
B Sutcliffe - Chair
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
Failure to achieve predicted quantities of DXS contracts and slower development of additional revenue streams may result in revenues growing more slowly than anticipated.
At this stage the Group is not faced with risk relating to interest rates on loans, credit and liquidity.
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 CCGs in the
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
UKaccounting 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
Review of the Company's Business
After being awarded the GPSoC tender in
Meeting all the NHS compliance issues has placed a considerable strain on our limited key management resources, however the Company managed to grow revenues from £1,815,795 at
Considering that we have had to put in place considerable staff and system resources the Company still managed a profit of £242,575 even after the write off of an exceptional item of £108,580 for a "share option valuation". The results for the year include a charge of £108,580 which represents the Directors best estimate of the cost of the Share Options awarded by the group during the year. This charge has been provided in terms of current Accounting Standards. The directors do not believe that this charge is a fair reflection of the cost to the Company and has been overstated due to the volatility in the share price during the period, which arose due to limited share sales into a limited market. Considerable time and expense has been spent in agreeing the £108,580 with the auditors.
Description of Principle Risks and Uncertainties
The principle risk is that a competitor provides the market with a superior Clinical Decision Support Solution and takes market share from DXS. To mitigate this risk DXS continually meets the dynamic needs of its customers through a program of R&D.
A second risk is that of CCG budgets drying up. However, with the recent award of the GPSoC2 contracts, it seems certain that adequate budgets have been made available for the foreseeable future.
Analysis of Business during Year Ending
Sales growth of 50% was greater than projected. Prospects for the year ending
The staff headcount increased from 38 at
During the past year the Company has significantly matured in terms of its systems and robustness, thanks largely to the stringent but necessary NHS requirements. Every aspect of the business is now compliant with NHS requirements, one of the most demanding globally.
This should offer any customer, whether in the
- Group Revenue £2.7 m an increase of 50%. Definition:
Total Groupsales including distribution of clinical decision support to General Practitioners and the licensing of DXS to CCGs and healthcare publishers.
- Underlying Group Profit After Tax £242,575 on a par with the previous year. A required write off of £108,580 for a management share option valuation has been deducted at arriving at the profit. Should this not have been taken into account, the profit after tax would have increased by 49%. Definition: Underlying profit provides information on the underlying performance of the business adjusting for either income or charges which are both one off or significant.
- Earnings Per Share 2015 0.7p, 2014 0.7p. Definition: Earnings per share is the underlying profit divided by the average number of ordinary shares in issue.
- ROCE 2015 18.7%, 2014 20%. Definition: Return on capital employed (ROCE) is the ratio of net operating profit of a company to its capital employed. It measures the profitability of a company by expressing its operating profit as a percentage of its capital employed.
Approved by the board and signed on its behalf by:
D A IMMELMAN
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED
|Cost of sales||(461,608)||(403,175)|
|Provision for costs of share option awards||(108,580)||-|
|Operating profit/ (loss)||3,592||116,603|
|Other interest receivable and similar income||2,170||1,946|
|Interest payable and similar charges||(35,477)||(41,250)|
|Profit/ (Loss) on ordinary activities before taxation||(29,715)||77.029|
|Tax on Profit on ordinary activities||272,290||156,335|
|Profit for the year||242,575||233,364|
|Profit per share -|
All amounts relate to continuing activities
All recognised gains and losses are included in the profit and loss account
|Amounts due in less than one year||1,068,112||753,330||47,650||45,820|
|Amounts due in more than one year||85,842||88,179||-||-|
|Cash at Bank and in hand||480,928||565,008||287,897||284,152|
|Creditors: amounts falling due|
|within one year||(1,907,841)||(1,565,167)||(21,778)||(21,933)|
|Net current assets / (liabilities)||(272,959)||(158,640)||313,769||308,039|
|Total assets less current liabilities||2,561,283||2,353,337||1,391,297||1,309,320|
|Creditors: amounts falling due after more than one year||(242,128)||(393,113)||-||-|
|Capital and reserves|
|Called up share capital||108,592||108,518||108,592||108,518|
|Share Premium account||1,591,709||1,584,047||1,591,709||1,584,047|
|Provision for costs of share option awards||108,580||-||108,580||-|
|Profit and loss account||510,274||267,699||(417,584)||(383,245)|
|Equity shareholders' funds||2,319,155||1,960,264||1,391,297||1,309,320|
Approved by the Board for issue on 28th
| D Immelman|
| S Bauer|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED
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 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.
Turnover represents amounts receivable under 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.
1.5 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
1.6 Intangible fixed Assets
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.
1.7 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.
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.
1.9 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.
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 five year period during which the company is expected to benefit. Where a deduction for tax purposes is claimed ahead of the amortisation of the expenditure, the tax benefit is included in Deferred Taxation.
1.11 Operating leases
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
1.12 Company Profit and Loss Account
The company has taken advantage of the exemption permitted under Section 408 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 £(34,339) (2014 - profit of £454).
1.13 Fixed Asset Investments
Fixed asset investments are stated at cost less provision for permanent diminution in value.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.