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DJ DXS International plc Dxs International Plc : Final Results

 
TIDMDXSP 
 
   DXS INTERNATIONAL PLC 
 
   (EPIC: DXSP) 
 
   AUDITED FINAL RESULTS 
 
   The Directors of DXS International plc ("DXS" or the "Company"), the 
ISDX quoted developer and supplier of clinical decision support systems 
to Clinical Commissioning Groups ("CCGs"), GPs, Doctors and healthcare 
professionals are pleased to announce the Company's Final Results for 
the 12 months ending 30th April 2015. 
 
   Financial and Operational Highlights 
 
   The year under review has seen a number of significant achievements: 
 
 
   -- Turnover increased by 50% from GBP1.81m to GBP2.72m; 
 
   -- Cash at bank GBP480,000 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 Bob Sutcliffe said: 
 
   "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 UK or overseas, the confidence that DXS will 
deliver a high quality of service and solution and thus provide complete 
peace of mind. 
 
   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." 
 
   Contacts: 
 
   For further information please contact: 
 
 
 
 
David Immelman, CE0 
 DXS International plc 
 www.dxs-systems.co.uk                     01252 719800 
City & Merchant Ltd (Corporate Adviser) 
David Papworth                            0207 101 7676 
MB Communications (Financial PR) 
Maxine Barnes                              07860 489571 
 
 
   About DXS: 
 
   DXS International presents up to date treatment guidelines and 
recommendations, from Clinical Commissioning Groups and other trusted 
NHS sources, to doctors, nurses and pharmacists in their workflow and 
during the patient consultation. This effective clinical decision 
support ultimately translates to improved healthcare outcomes delivered 
more cost effectively which should significantly contribute towards the 
NHS achieving its projected efficiency savings. 
 
   The following information has been extracted from the Company's audited 
accounts for the year to 30th April 2015. 
 
   The Directors of DXS International plc accept responsibility for this 
announcement. 
 
   CHAIRMAN'S REPORT 
 
   The year ending April 2015 has seen a number of significant 
achievements. 
 
 
   -- 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 UK healthcare 
      sector. 
 
   -- 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 GBP1,815,795 at 30 April 2014 to GBP2,723,762 at 30 
April 2015, a significant year on year increase of 50%. Currently, we 
have 36 CCG clients representing 1,400 practices and are at varying 
stages of securing a further 10 new CCG customers. These sales are being 
driven by the need for CCG's, currently controlling an annual healthcare 
budget of GBP70 billion, to find savings of up to GBP20 billion. 
 
   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 28 March  2014. Introduced 
back in 2007, GPSoC is a scheme through which the NHS funds the 
provision of Clinical Systems to General Practitioner (GP) practices in 
England. The new GPSoC2 scheme, effective from 1st April 2014, was 
extended to include "Subsidiary Suppliers" of various IT systems. This 
FRA approval ensures that DXS has been able to transfer its existing CCG 
clients and procure new CCG clients through the Lot 1 Framework 
Agreement. 
 
   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 UK 
healthcare budget and here we are working with a consortium of UK 
clinicians to deliver a Personalised Care Pathway Solution which we hope 
to launch in early 2016. 
 
   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 GBP480,928. 
 
   The audited profit for the year ending 30 April 2015 is GBP242,575 
including an unexpected once only write off of GBP108,580 due to a 
management share option issue (see Directors Report for more information 
on this item). 
 
   This margin is better than expected due to the gearing up of staff and 
required systems. The headcount increased from 38 at April 2014 to 60 
(including 11 freelancers) at April 2015. This has now levelled off at 
approximately 80 (including 13 freelancers) and ensures that the Company 
is fully staffed with the exception of those areas where staff are 
directly linked to increase in the number of clients or new projects 
with anticipated new revenue streams. 
 
   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. 
 
   Yours sincerely, 
 
   Bob Sutcliffe 
 
   Chairman 
 
   REPORT OF THE DIRECTORS 
 
   The directors present their annual report and the audited financial 
statements for the year ended 30 April 2015. The Chairman'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. 
 
   Directors 
 
   The directors for the year were: 
 
   D Immelman - CEO 
 
   S Bauer - MD 
 
   B Sutcliffe - Chair 
 
   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. 
 
   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 CCGs in the UK 
healthcare sector and their requirement to achieve GBP20 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 

(MORE TO FOLLOW) Dow Jones Newswires

September 30, 2015 07:00 ET (11:00 GMT)

DJ DXS International plc Dxs International Plc : -2-

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 
 
   28(th) September 2015 
 
   STRATEGIC REPORT 
 
   Review of the Company's Business 
 
   After being awarded the GPSoC tender in March 2014, we were required to 
undergo a CAP (Common Assurance Process). This began in March 2015 and 
the Company was awarded FRA (Full Rollout Approval) under the new GP 
Systems of Choice ("GPSoC"), part of the NHS' overall procurement 
structure, which was announced on March 28th 2014. 
 
   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 GBP1,815,795 at April 2014 to GBP2,723,762 in April 
2015, a significant rise of 50%. This was attributed to increasing our 
CCG customers combined with our Pharmaceutical revenue. 
 
   Considering that we have had to put in place considerable staff and 
system resources the Company still managed a profit of GBP242,575 even 
after the write off of an exceptional item of GBP108,580 for a "share 
option valuation". The results for the year include a charge of 
GBP108,580 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 
GBP108,580 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 April 2015 
 
   Sales growth of 50% was greater than projected. Prospects for the year 
ending April 2016 are looking good with a number of new prospective 
clients that have indicated intent to purchase the DXS system in the 
pipeline. Adding to this are potential new revenue streams which should 
continue to contribute to considerable revenue and margin growth. 
 
   The staff headcount increased from 38 at April 2014 to 60 (includes 11 
freelancers) at April 2015. Including 13 freelancers this has now 
levelled off at almost 80. The only expected additional staff will be 
directly linked to new sales and product lines. 
 
   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 UK or globally, the 
confidence that DXS is able to deliver a high quality of service and 
solution and thus provide complete peace of mind. 
 
   Financial KPI 
 
 
   -- Group Revenue GBP2.7 m an increase of 50%. Definition: Total Group sales 
      including distribution of clinical decision support to General 
      Practitioners and the licensing of DXS to CCGs and healthcare publishers. 
 
   -- Underlying Group Profit After Tax GBP242,575 on a par with the previous 
      year.  A required write off of GBP108,580 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 30 APRIL 2015 
 
 
 
 
                                                2015         2014 
                                                 GBP          GBP 
Turnover                                       2,723,762    1,815,795 
 
Cost of sales                                  (461,608)    (403,175) 
                                                ________     ________ 
                                               2,262,154    1,412,620 
 
Administrative expenses                      (2,149,982)  (1,296,017) 
 
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 - 
                                                     .7p          .7p 
 --    Basic 
                                                     .6p          .6p 
 --    fully diluted 
 
 
 
   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 2015 
 
 
 
 
                                                             Group        Group      Company    Company 
                                                             2015         2014        2015       2014 
                                                              GBP          GBP         GBP        GBP 
Fixed Assets 
Intangible assets                                           2,812,110    2,492,104          -          - 
Tangible assets                                                22,132       19,913          -          - 
Investments                                                         -            -  1,077,528  1,001,281 
                                                             ________     ________   ________   ________ 
                                                            2,834,242    2,512,017  1,077,528  1,001,281 
                                                             ________     ________    _______    _______ 
 
Current assets 
Debtors - 
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 
                                                             ________     ________   ________   ________ 
                                                            1,634,882    1,406,527    335,547    329,972 
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)          -          - 
                                                             ________      _______   ________   ________ 
                                                            2,319,155    1,960,264  1,391,297  1,309,320 
 
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 28(th) September 2015 
 
 
 
 
D Immelman  S Bauer 
 Director    Director 
 
 

(MORE TO FOLLOW) Dow Jones Newswires

September 30, 2015 07:00 ET (11:00 GMT)

DJ DXS International plc Dxs International Plc : -3-

   NOTES TO THE FINANCIAL STATEMENTS 
 
   FOR THE YEAR ENDED 30 APRIL 2015 
 
   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. 
 
   1.4       Turnover 
 
   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 
 
   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. 
 
   1.7       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. 
 
   1.8       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. 
 
   1.9       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. 
 
   1.10     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 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 GBP(34,339) (2014 - profit of GBP454). 
 
   1.13     Fixed Asset Investments 
 
   Fixed asset investments are stated at cost less provision for permanent 
diminution in value. 
 
   This announcement is distributed by NASDAQ OMX Corporate Solutions on 
behalf of NASDAQ OMX Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: DXS International plc via Globenewswire 
 
   HUG#1955536 
 
 
  http://www.dxs-systems.com/ 
 

(END) Dow Jones Newswires

September 30, 2015 07:00 ET (11:00 GMT)