IS Solutions Plc

Strong Finish to the Year Achieving an Uplift in Revenue and Profitability - Dividend up 257%

LONDON, June 27, 2016 /PRNewswire/ --

Proposed rebranding to reflect the business' focus on data analytics

IS Solutions Plc (Symbol: ISL) publishes the Group's Annual Report & Accounts for the year ended 31 March 2016.

Peter Kear, CEO commented: 

"This is a very exciting time for the business - over the last five years the IS Solutions historic model has developed its core strategy to progressively build a data analytics business.  Our new market focus brings together existing fields of expertise and new skills to create a comprehensive and cohesive range of data solutions.  In order to reflect this step-change the Board has already announced its intention, subject to shareholder approval in July 2016, to rename the Company and rebrand it D4t4 Solutions Plc.   

"Our emphasis on data is an evolution of many years of experience in providing solutions for clients' data needs.  In recent years, this has taken shape around our growing capabilities in enabling our customers to profit from their data in terms of organising it, monetising it and gaining benefit from it.  The new areas of the business take us to the next level of data solutions and create further pull-through opportunities for the more established parts of the business." 

"All of this bodes well for the future and the Board is confident that the Company can deliver another year of solid progress and will achieve current market expectations for the year ending 31 March 2017." 

The Chairman's letter and financial statements for the year ended 31 March 2016 can be read in full on the Company's website http://www.issolutions.co.uk; a summary is provided below:

   
                                           Year      six-months   15-months
                                           ended        ended       ended          %
                                         31 March  30 September    31 March period-on-period
                                           2016         2015        2015         growth
                                          audited    unaudited*    audited
    Revenue                             GBP15.30m     GBP7.04m    GBP12.29m

    -Continuing business (IS Solutions ) GBP3.30m     GBP1.43m     GBP0.55m
    -Celebrus Technologies (Celebrus)                            (six weeks)
                                        GBP18.60m     GBP8.47m    GBP12.84m           45%
    Gross profit                         GBP9.21m     GBP3.96m     GBP4.67m           97%
    GP margin                              49.52%       46.75%       36.37%     +1315 bps
    Underlying pre-tax profit**          GBP3.50m     GBP1.54m     GBP1.22m          187%
    Adjusted fully diluted EPS              8.24p        3.36p        3.86p          113%

    Total dividend for the year
    (includes proposed final dividend
    of 1.5p)                                2.00p        0.50p        0.56p          257%

    Strong cash generation - gross
    cash position                        GBP5.00m     GBP2.09m     GBP0.09m         5456%


    *  The unaudited interim figures are as reported at the Half-year
       ended September 2015 released on 24 November 2015

    ** Before amortisation of intangibles and share-based payment
       charges and 2015-acquisition costs of (GBP0.54m)

    Ø Our successful business model has driven both top and bottom line increases for
      the Company with growth coming from its core data analytics business which has shown
      a substantial improvement period-on-period of 126%
    Ø Our focus on the application of data to the fundamentals of our clients'
      business needs has led to substantial growth in our project work and will fuel growth
      in our recurring revenue going forward
    Ø The combination of the established and well respected brands of IS Solutions
      and Celebrus has opened up a number of cross-selling opportunities and, at the same
      time, it has created a much more balanced business with stronger higher margin
      license sales and progressively greater project and recurring revenue


                                             Year   six-months    15-months
                                            ended        ended        ended             %
                                         31 March 30 September     31 March        period
                                             2016         2015         2015     on period
                                          audited   unaudited*      audited        growth
                                          GBP'000      GBP'000      GBP'000
    Licence sales                           2,974        1,448        1,927           54%
    Projects                               10,666        4,768        6,146           74%
    Recurring income                        4,969        2,254        4,766            4%
                                        GBP18,609     GBP8,470    GBP12,839           45%