Audited Results for the Year Ended 30 September 2009

 

November 24 2009

Intec Telecom Systems PLC (ITL.L/ITL LN, ‘Intec’, the ‘Company’ or the ’Group’), a global provider of business support systems (BSS) solutions, announces audited results for the year ended 30 September 2009.

    

 

2009

Reported

    

 

2008

Reported

    

 

Growth

Reported

    

 

2008

Constant

Currency

    

 

Growth

Constant

Currency

 

   

 

   

 

   

 

   

 

   

 

Revenue (£m)

   

167.9

   

135.8

   

23.6%

   

158.7

   

5.8%

Adjusted EBITDA (£m)

   

31.2

   

19.3

   

61.7%

   

26.9

   

16.0%

Adjusted profit before tax (£m)

   

27.1

   

14.2

   

90.8%

   

21.5

   

26.0%

Profit before tax (£m)

   

24.7

   

13.7

   

80.0%

   

20.9

   

18.2%

Basic EPS (p)

   

12.5

   

3.4

   

267.6%

   

5.7

   

119.3%

Adjusted diluted EPS (p)

   

7.5

   

3.5

   

114.2%

   

5.7

   

31.6%

Cash (£m)

   

74.8

   

28.9

   

158.8%

   

32.5

   

130.2%

 

For definition of constant currency, adjusted EBITDA, adjusted profit before tax and adjusted diluted EPS, please see notes to the highlights.

 

Highlights (at constant currency)

  • Organic revenue growth of 5.8%
  • Improved profitability with adjusted EBITDA margins of 18.6%
  • Inaugural full year dividend of 1p per share proposed
  • Cash increased to £74.8m
  • Contracted revenue backlog at 30 September 2009 over 20 % higher than in 2008
  • Continued focus on sustainable growth

 

Commenting on today’s results, Andrew Taylor, CEO, said:

 

“Intec has built upon the very strong performance in 2008 and delivered an excellent performance in 2009 across all key metrics. We have made substantial progress in executing against each of our strategic priorities and have focused on excellence by continuing to build and develop a world class team.

Notwithstanding the challenging economic and market conditions, we believe that with Intec’s established and growing customer base, robust financial position and market relevance, we are well placed to continue to deliver against our strategic objectives during 2010 and beyond.”

John Hughes, Non-executive Chairman, said:

“The last year has seen Intec transform itself as a business. In addition to our strong revenue and profit performance it was particularly pleasing to deliver excellent cash generation.  This puts the Company on a solid footing for the future, as well as enabling us to invest in our internal infrastructure and systems to support further growth.  The strength of the business has led the Board to propose the introduction of a dividend for the first time, with an inaugural proposed full year dividend of 1p per share.”

A presentation to analysts will be held at 9:30 on 24 November 2009 at the offices of Financial Dynamics, please contact intec@fd.com for further details. The presentation will be available on the website: www.intecbilling.com


Enquiries:

Intec Telecom Systems PLC

www.intecbilling.com

Andrew Taylor, Chief Executive Officer

+44 (0)1483 745 800

Robin Taylor, Group Finance Director

 

 

 

Financial Dynamics

+44 (0)20 7831 3113

Giles Sanderson/Juliet Clarke/Haya Herbert-Burns

 

 

About Intec Telecom Systems PLC

Intec supplies solutions to over 70 of the world’s top 100 telecoms carriers and is one of the world’s fastest growing major BSS/OSS (business and operations support systems) vendors. Intec’s 400 customers include AT&T, Cable & Wireless, The Carphone Warehouse (UK), China Unicom, Deutsche Telekom, Eircom (Ireland), France Telecom, Hutchison 3G, O2, Orange, T-Mobile, Telefonica, Vodafone, Virgin Mobile, Vivo and Verizon. Intec works closely with customers, many of whom have been with Intec since its inception, to provide the highest standards of performance, flexibility and robustness to help carriers service their customers effectively and profitably.

 

Founded in 1997, Intec is listed on the London Stock Exchange (ITL.L) and has over 1,700 staff and 31 offices in 24 countries. For more information visit www.intecbilling.com

 

NOTES TO THE HIGHLIGHTS

Profit before tax is reconciled to adjusted profit before tax, adjusted EBITDA and adjusted profit after tax in the table below:

 

 

 

 

2009

Reported

£m

 

 

2008

Reported

£m

 

 

2008

Constant

Currency

£m

 

 

 

 

 

 

 

 

Profit before tax

 

24.7

 

13.7

 

 

20.9

Exceptional items

 

1.6

 

(0.3)

 

 

(0.2)

Amortisation of acquired intangible assets

 

0.8

 

0.8

 

 

0.8

 

 

 

 

 

 

 

 

Adjusted profit before tax

1

27.1

 

14.2

 

 

21.5

Net finance income

 

(0.6)

 

(0.4)

 

 

(0.5)

Depreciation

 

3.0

 

3.1

 

 

3.4

Amortisation of other intangible assets

 

1.7

 

2.4

 

 

2.5

 

 

 

 

 

 

 

 

Adjusted EBITDA

2

31.2

 

19.3

 

 

26.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit after tax

 

38.4

 

10.5

 

 

17.5

Amortisation of acquired intangible assets

 

0.8

 

0.8

 

 

0.8

After tax impact of exceptional items

3

(15.1)

 

(0.3)

 

 

(0.2)

 

 

 

 

 

 

 

 

Adjusted profit after tax

4

24.1

 

11.0

 

 

17.3

 

 

 

 

 

 

 

 

 

Throughout this report:

 

1 Adjusted profit before tax is stated before exceptional items and amortisation of acquired intangible assets.

2 Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation (including acquired intangibles but excluding amortisation of intangibles included in cost of sales) and exceptional items.

3 Exceptional items are detailed in note 3 to the financial information.

4 Adjusted profit after tax, which excludes the amortisation of acquired intangibles and the after tax effect of exceptional items from reported profit after tax, is used as the basis for calculating adjusted diluted earnings per share.

5 The constant currency comparatives have been calculated by translating the 2008 results at 2009 exchange rates. This disclosure has been provided as a guide to the underlying growth in the business before the effect of the change in exchange rates.

 

This press release and preliminary financial information (press release) have only been prepared for the shareholders of the Company, as a whole, and their sole purpose and use is to assist shareholders to exercise their governance rights and are not audited annual financial statements. The Company and its directors and employees are not responsible for any other purpose or use, or to any other person, in relation to this press release.

 

This press release contains indications of likely future developments and other forward looking statements that are subject to risk factors associated with, among other things, the economic and business circumstances occurring from time to time in the countries, sectors and business segments in which the Group operates. These and other factors could adversely affect the Group's results, strategy and prospects. Forward looking statements involve risks, uncertainties and assumptions. They relate to events and/or depend on circumstances in the future which could cause actual results and outcomes to differ. No obligation is assumed to update any forward looking statements, whether as a result of new information, future events or otherwise.

View the full press release here.

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