BCS 2006 sales and losses dip

Source: Business Control Solutions

Business Control Solutions Group plc ('the Group' or 'the Company') (BCT.L), announces its preliminary results for the twelve months ended 31 December 2006.

Financial Highlights
  • Turnover £8.0 million (FY2005: £8.2 million), down marginally owing to transition to annuity based revenue model
  • Trading loss (operating loss plus interest but before share based payments and exceptional items) £0.5m as a result of accelerated investment (FY2005: £0.4m )
  • Overall retained loss reduced to £0.7m (FY2005: £1.9million)
  • Software sales up 21% to £1.9m
  • Contracted annuity income for 2007 up 84% to £413,000
  • Period end cash at £3.7m (FY 2005: £1.8m), following successful funding in October
  • EPS -0.32p (FY 2005: -0.92p)

Operating Highlights
  • £3m fundraising in October 2006 enabling increased investment in product development, consultancy and sales & marketing
  • Increased revenue visibility and quality of earnings following the transition to an annuity based revenue model
  • Continued diversification of revenue source across 34 clients compared to 21 in 2005
  • High utilisation of consultancy practice
  • Increased Group headcount by 21%
  • Appointment of Paul Brock as COO

Commenting on today's announcement, Nigel Walder, CEO of Business Control Solutions plc, said: "The Company has made significant progress in 2006 in further consolidating its market position whilst simultaneously and successfully completing a £3 million fundraising to finance the future growth of the Company. 2007 will continue to be a period of investment, with the emphasis being placed on sales and marketing in the second half of the year.

In addition, our recent transition to an annuity based revenue model has been a key development in improving the quality and visibility of our revenues going forward. The aforementioned initiatives undertaken this year give us continued confidence in the performance of the business going forward, with return to revenue growth expected to be achieved in 2007."

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