FFastFill is the leading SaaS Provider for trading and risk management serving the electronic trading community.

Results for the six months ended 30 September, 2002

FFastFill plc, a leading provider of trading and risk management solutions and services on electronic exchanges, announces its results for the six months ended 30 September 2002.

Highlights

  • Turnover up 25 per cent to £0.396 million (2001: £0.317 million);
  • Operating loss down 36 per cent to £2.718 million (2001: loss £4.245 million) reflecting benefits of cost saving measures;
  • Cash at 30 September 2002 £2.445 million, which equates to 5.3p per share;

Since October, the new management team has:

  • Implemented a range of cost-saving measures
  • Initiated the first phase of the exchange connectivity service at DrKW covering Euronext.Liffe, Eurex and IDEM;
  • Established an ongoing resilience programme to enhance the quality of FFastFill software to new levels of reliability;
  • Brought forward the development of new software to provide exceptionally secure, high performance application services for intermediaries and traders;
  • Initiated a joint marketing programme with Thales;
  • Strengthened our expanding IB business in the US through joint marketing projects with CBOT and FutureSource.
In addition the company is announcing changes to the Board so as to improve the balance between executive and non executive directors.

Commenting on the results, Keith Todd, Executive Chairman of FFastFill, said:
“The results cover the six months before the recent management changes. Since then progress has been made in moving towards a more stable financial environment, improving customer service, identifying new business opportunities and establishing a new set of professional management initiatives. With the new Board and management, I believe the company now has the opportunity to exploit our competitive advantage in both our network services and our software assets.”


For further information, please contact:
FFastFill plc - Tel: (020) 7665 8900
Keith Todd, Executive Chairman/Nigel Hartnell

Rostron Parry - Tel: (020) 7490 8062
John Parry/Lynda Hall

Chairman’s statement

Introduction
The results cover the six month period prior to the recent changes in management. In the 6 weeks since the AGM, we have made progress in a number of important areas in the creation of the ‘New FFastFill’ business.

Financial Results
The results we are announcing today are for the 6 month period to 30th September 2002. During this period turnover increased to £0.396 million (2001 £0.317million) and the operating loss fell to £2.718 million (2001 loss £4.246 million). Cash at 30th September 2002 was £2.445 million, which equates to 5.3p per share. No interim dividend is proposed.

The ‘New FFastFill’ Strategy
We are now implementing our new strategy. This is based on providing our customers with applications delivered as a service. This change of emphasis is pervading all activities of the company from software development through to our management disciplines. Our early discussions with current and potential customers give us confidence that we have a high value proposition which addresses real customer needs for resilience, security and cost.

Application Software
We are making significant enhancements to our testing, development and customer support processes in order to reflect the company’s focus on service quality. This will support our commitment to software as one of the important streams of our service business.

We believe that the intellectual and financial capital we have invested and are now investing in our software offers major competitive advantage for the company. We are therefore bringing forward the development of a new software services architecture to September 2003, which will allow us to offer a quality of service to intermediaries and traders not previously seen in this market.

Partnerships
Our relationship with Thales is developing to encompass both marketing and sales. We believe such complementary partnerships bring substantial benefits to the company, both in terms of geographic reach and scale of technical capability. We are also in discussion with other major financially focused service providers to explore joint marketing and service collaborations. I would expect at least one of these to bear fruit during the first half of 2003.

USA
We have carried out a review of the potential of our business in the USA, and as a result have sharpened the focus on the provision of Introducing Broker services to the retail market and applications services (ASP) to institutional clients. We have established a joint marketing project with the CBOT which is already generating considerable opportunities in the professional market, as is our joint initiative with FutureSource in the retail market.

DrKW
We have now started to implement the first phase of the exchange connectivity service at DrKW covering Euronext.Liffe, Eurex and IDEM. This will provide a platform for expanding both the scale and scope of these services in the future and will be a significant reference customer.

Prague
The decision earlier in the year to relocate much of the development resource to Prague is continuing to deliver good value for the company and we are now exploring ways in which we can gain further cost advantages from this facility.

Board
It is my intention to change the board to have a majority of non-executive directors.

I am pleased to announce the appointment of Mr Nigel McCorkell as Deputy Chairman. Mr McCorkell will chair the Audit and Remuneration Committees. Mr Nicholas Durlacher CBE has resigned from the board after 3 years service and Mr Laurent Morfoisse and Dr John Elmore also step off the board to enable the balance between executive and non executive directors to be improved. Laurent and John will remain on the executive management team. Further changes in the board make up are planned to be completed by March.

Outlook
The company has had a difficult past but we are now embarking on the systematic implementation of the new strategy and leveraging the past investment in software IPR, with a strengthened management team and new services offerings. We move forward with cautious optimism and are anticipating continuing the process of reducing the losses in the second half of the year.

Keith Todd
Chairman

 

CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the period ended 30 SEPTEMBER 2002

  Notes   Six months ended 30 September 2002   Six months ended 30 September 2001   Year ended 31 March 2002
      £’000   £’000   £’000
      (unaudited)   (unaudited)   (audited)
               
Turnover 1   396   317   896
               
Administrative expenses - other     (3,114)   (4,118)   (7,932)
               
- exceptional 2   -   (444)   (1,371)
               
               
Operating loss     (2,718)   (4,245)   (8,407)
               
Interest receivable and similar income     75   241   390
               
Interest payable and similar charges     (5)   (1)   (1)
               
               
Loss on ordinary activities before taxation     (2,648)   (4,005)   (8,018)
               
Tax on loss on ordinary activities 3   -   -   412
               
               
Loss on ordinary activities after taxation     (2,648)   (4,005)   (7,606)
               
Minority interest     4   -   3
               
               
Retained loss for the period attributable to shareholders     (2,644)   (4,005)   (7,603)
               
               
Basic loss per share 4   (5.76)p   (8.81)p   (16.73)p
Diluted loss per share 4   (5.55)p   (7.88)p   (14.70)p


CONSOLIDATED BALANCE SHEET as at 30 SEPTEMBER 2002

  Notes   As at 30 September 2002   As at 30 September 2001   As at 31 March 2002
      £’000   £’000   £’000
      (unaudited)   (unaudited)   (audited)
Fixed assets              
Negative goodwill     (23)   -   (31)
Tangible assets     367   572   474
Investments     -   135   -
               
               
      344   707   443
               
               
Current assets              
Debtors     2,019   1,088   488
Cash at bank and in hand     2,445   7,255   5,093
               
               
      4,464   8,343   5,581
               
Creditors: amounts falling due within one year     (2,610)   (689)   (1,179)
               
               
Net current assets     1,854   7,654   4,402
               
               
Total assets less current liabilities     2,198   8,361   4,845
               
Creditors: amounts falling due after more than one year     (2)   (4)   (3)
               
               
Net assets     2,196   8,357   4,842
               
               
Capital and reserves              
Called up share capital 5   461   454   456
Share premium account 5   16,834   16,834   16,834
Shares to be issued 5   237   258   293
Merger reserve 5   890   890   890
Profit and loss account 5   (16,248)   (10,079)   (13,660)
               
               
Equity shareholders’ funds     2,174   8,357   4,813
               
Minority interest     22   -   29
               
               
      2,196   8,357   4,842
               


CONSOLIDATED CASH FLOW STATEMENT
for the period ended 30 SEPTEMBER 2002

  Notes   Six months ended 30 September 2002   Six months ended 30 September2001   Year ended 31 March 2002
      £’000   £’000   £’000
      (unaudited)   (unaudited)   (audited)
               
Net cash outflow from operating activities A   (2,657)   (4,126)   (6,858)
               
Returns on investments and servicing of finance              
Interest received     75   240   348
Interest paid     (4)   -   -
Interest element of finance lease payments     (1)   (1)   (1)
               
               
Net cash inflow from returns on investments and servicing of finance     70   239   347
               
               
Taxation              
Research and development tax credit received     -   -   412
               
               
Capital expenditure and financial investment              
Purchase of tangible fixed assets     (65)   (186)   (183)
Purchase of investments     -   (453)   (453)
               
               
      (65)   (639)   (636)
               
               
Acquisitions              
Cash acquired with subsidiary     -   -   47
               
               
Cash outflow before financing     (2,652)   (4,526)   (6,688)
               
               
Financing              
Issue of ordinary shares     5   -   1
Capital element of finance lease payments     (1)   (1)   (2)
               
               
Net cash (outflow) from financing     4   (1)   (1)
               
               
(Decrease)/increase in cash B   (2,648)   (4,527)   (6,689)
               

 

NOTES TO THE CASH FLOW STATEMENT

A. Reconciliation of operating loss to operating cash flow

    Six months ended 30 September 2002   Six months ended 30 September2001   Year ended 31 March 2002
    £’000   £’000   £’000
    (unaudited)   (unaudited)   (audited)
             
Operating loss   (2,718)   (4,246)   (8,407)
Depreciation   165   147   268
Amortisation   (8)   -   (6)
Foreign exchange movements   (5)   -   (3)
Decrease/(increase) in debtors   (1,531)   (209)   468
(Decrease)/increase in creditors   1,431   (265)   191
Loss on disposal of fixed assets   9   2   -
Charge on issue of unapproved share options   -   -   52
Provision against investments   -   444   579
             
Net cash outflow from operating activities   (2,657)   (4,127)   (6,858)
             

 

B. Reconciliation of net cash flow to movement in net funds

    Six months ended 30 September 2002   Six months ended 30 September 2001   Year ended 31 March 2002
    £’000   £’000   £’000
    (unaudited)   (unaudited)   (audited)
             
Decrease in cash in the period   (2,648)   (4,527)   (6,689)
Repayment of finance leases   1   1   2
Net funds at beginning of period   5,088   11,775   11,775
             
             
Net funds at end of period   2,441   7,249   5,088
             

 

C. Analysis of changes in net funds

    At 1 April 2002   Cash flows   At 30 September 2002
    £’000   £’000   £’000
    (unaudited)   (unaudited)   (audited)
             
Cash at bank and in hand   5,093   (2,648)   2,445
Finance leases   (5)   1   (4)
             
             
    5,088   (2,647)   2,441
             


NOTES TO THE INTERIM RESULTS

1. Accounting Policies
The accounts have been prepared has been prepared on the basis of the accounting policies set out in the audited accounts for the year ended 31 March 2002.

Going concern

The directors have prepared the accounts on a going concern basis.

The going concern basis depends upon the expected benefits of the strategies being implemented by the new management team. Furthermore, additional continuing cost cutting measures are being pursued in order to further reduce the rate at which the group's cash balances are expended.

2. Exceptional Items
Exceptional items were disclosed in the accounts for the year ended 31 March 2002 and the six months ended 30 September 2001 and related to the write down of investments and provisions against two loans.

3. Tax on Loss on Ordinary Activities
The Company has no liability to UK Corporation tax as the Company made a loss for the purposes of UK Corporation Tax. During the year ended 31 March 2002 the Company received a research and development tax credit.

4. Loss per Share and Diluted Loss per ShareLoss per share is calculated by dividing the loss attributable to ordinary shareholders for each period by the weighted average number of ordinary shares in issue during each period, as follows:

    Six months ended 30 September 2002   Six months ended 30 September2001   Year ended 31 March 2002
    (unaudited)   (unaudited)   (audited)
             
Loss attributable to shareholders   £2,644,000   £4,005,000   £7,603,000
             
Weighted average number of shares   45,898,853   45,451,030   45,451,450


Diluted loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during each period, adjusted for the weighted number of share options outstanding at the end of each period, retrospectively adjusted for the exercise of dilutive share options.

    Six months ended 30 September 2002   Six months ended 30 September2001   Year ended 31 March 2002
    (unaudited)   (unaudited)   (audited)
             
Loss attributable to shareholders   £2,644,000   £4,005,000   £7,603,000
             
Weighted average number of shares   47,632,193   50,838,683   51,706,658

5. Statement of Movement on Shareholders’ Funds

  Share capital   Share premium account   Shares to be issued   Merger reserve   Profit and loss account   Share- holders’funds
  £’000   £’000   £’000   £’000   £’000   £’000
                       
At 31 March 2002 (audited) 456   16,834   293   890   (13,660)   4,813
Loss for the period -   -   -   -   (2,644)   (2,644)
Exercise of share options 5   -   (56)   -   56   5
                       
                       
At 30 September 2002 (unaudited) 461   16,834   237   890   (16,248)   2,174
                       


6. Financial Information

The financial information set out in this interim report does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The financial information for the six month periods ended 30 September 2001 and 2002 is unaudited. Information relating to the year ended 31 March 2002 is derived from the statutory accounts for that period which have been delivered to the Registrar of Companies. The auditors’ report on those accounts was unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985.