DICOM Group plc (“DICOM Group”), a global leader of Intelligent Capture & Exchange solutions today announces financial results for the year to 30 June 2007.
Financial Highlights
All financial highlights are from continuing activities
- Revenue flat at £160.2m (2006: £160.4m), up 4% in local currency terms
- Gross profit margins increased to 56.4% (2006: 54.2%)
- Adjusted* operating profits up 8% to £15.5 (2006: £14.4m), increase of 13% in local currency terms
- Adjusted* operating profit margins of 9.7% (2006:9.0%)
- Pre-tax profits up 5% to £10.1m (2006: £9.6m)
- Adjusted* pre-tax profits up 11% to £16.7m (2006: £15.0m)
- Adjusted* earnings per share reported at 15.1p, up 22% (2006: 12.4p)
- Strong operating cash flow of £16.2m, net funds of £38.2m (2006: £30.4m)
- Final dividend of 1.41p making a total for the year of 2.12p (2006: 1.84p), up 15%
* Adjustments represent adding back amortisation of acquired intangibles, reduction in goodwill arising on the utilisation of previously unrecognised tax losses carried forward, restructuring costs and the share-based payment expense. A reconciliation of adjusted pre-tax profits, adjusted profits and adjusted earnings per share to reported IFRS measures is set out in note 3 to the financial results.
Operating Highlights
-- Strategic focus on higher growth transactional capture solutions
-- Simplified and rebranded the product portfolio
-- Strengthened Kofax Intelligent Capture & Exchange product
suite with the introduction of Kofax Document Exchange
Server
-- Continued investment in technology with the introduction of:
-- Ascent Xtrata Pro
-- Kofax Ascent(R) Fax
-- Reorganised to position DICOM Group better for future growth
-- New customer wins in the final quarter include Severn Trent Water,
SpareBank 1, Atradius, San Bernardino ITSD, US Air force, Blue
Cross Blue Shield and Spectrum HealthShare Buy Back
- Launch of share buy back programme for up to 5% of the Company’s issued share capital
Commenting, Greg Lock, Chairman of DICOM Group said:
“Our performance in the year was mixed. Revenue grew only modestly in local currency, and this is disappointing. On the other hand the strength of our business model resulted in a solid profit performance. We accelerated our structural and product changes in the last quarter in order to sharpen our strategic focus on Intelligent Capture & Exchange.
“Looking ahead we shall continue to accelerate our efforts in developing and delivering best-in-class products and, more importantly, effective solutions. Our own comprehensive market analysis has shown us what our customers value and we must continually strive to meet their needs. We have a strong product pipeline, and the support of a powerful partner network. Our key goal in the year ahead is to accelerate revenue growth in our own software sales. We will move resources, talent and investment in pursuit of this goal as fast as prudently possible.
”Regarding Prospects, Rob Klatell, Chief Executive Officer of DICOM Group said:
“We have taken a number of positive steps to position the Group for the future. We have introduced the Kofax Intelligent Capture & Exchange suite, we are simplifying our product brand architecture, and we have reorganised the business to create efficiencies in order to provide the needed investment in our faster growing segments. Looking forward we will continue to increase our focus on software solutions and we are targeting double digit revenue growth from our software business.
”A recording of the presentation given to analysts will be available on the Company's website (www.dicomgroup.com) from 2.00pm today.
Contacts:
Gabriele Rosenbusch, Head of Investor Relations
+44
(0) 800 6520 616
gabriele_rosenbusch@dicomgroup.com
or
DICOM
Group Web site:
http://www.dicomgroup.com
