Results for the half year ended 31 march 2005
Download
1 / 38

Results for the half-year ended 31 March 2005 - PowerPoint PPT Presentation


  • 255 Views
  • Uploaded on

Results for the half-year ended 31 March 2005. 10 May 2005. Financial highlights. Financial review. Revenue. Operating profit. +6%. +5%. é. é. Organic growth. Organic. Non-core. Acquisitions. £m at constant exchange rates. Revenue sources. Total revenue. Organic growth. Total 6%.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Results for the half-year ended 31 March 2005' - richard_edik


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript



Organic growth l.jpg

Revenue

Operating profit

+6%

+5%

é

é

Organic growth

Organic

Non-core

Acquisitions

£m at constant exchange rates


Revenue sources l.jpg
Revenue sources

Total revenue

Organic growth

Total

6%

62%

62%

Software

8%

Services

6%

38%

38%

At constant exchange rates


Profitability l.jpg
Profitability

Group operating profit margin 27% (2004: 27%)

Organic

80% of operating profit

Acquisitions and non-core

20% of operating profit

High-margin sales to existing customers (82% of revenue) sustained underlying profitability

Improved sales to existing customers

Increased investment

  • Research & development

  • Infrastructure

  • Marketing

Cost efficiencies in research and development, administration

Operating margin -0.5pp to 28%

Operating margin +3.9pp to 24%


Slide7 l.jpg

Operating profit

Revenue

UK

  • Organic revenue +5%

    • growth in both small business and mid-market

    • successful upgrade programmes

  • Margin 38%

    • high-margin sales to customer base

    • infrastructure investment: £2m

£97m

£91m

38%margin

40%margin


Mainland europe l.jpg

Operating profit

Revenue

Mainland Europe

  • Organic revenue +6%

    • stimulus from payroll legislation

  • France (mid-market) the main growth driver

    • migration to more sophisticated software and support

  • Germany/Switzerland

    • growth despite challenging market

  • Acquisitions

    • Simultan (January 2005)

    • Symfonia (April 2005)

  • Organic operating margin 23% (2004: 24%)

£101m

£90m

24%margin

23%margin

At constant exchange rates


North america organic revenue l.jpg
North AmericaOrganic revenue


North america continued l.jpg
North Americacontinued

  • 7% organic revenue growth

    • premium support take-up

    • upgrade and add-on sales

    • new sales channels: sales consultants

  • Organic operating margin 23% (2004: 22%)

  • Acquisitions and non-core: £40m revenue and £11m operating profit

    • ACCPAC improved margins

    • FLS augments payroll services business

£155m

£129m

24%margin

23%margin

Operatingprofit

Revenue

At constant exchange rates


Rest of world l.jpg

Operating profit

Revenue

Rest of World

  • South Africa & Australia

    • increasing support penetration

    • upgrade programmes

    • additional products for customer base, e.g. payroll

  • South-East Asia

    • profitable mid-market business

  • Margins improved

    • sales to existing customers

    • cost efficiencies

  • Developing small business divisions

£28m

£17m

19% margin

15% margin

At constant exchange rates


Acquisitions financial trends l.jpg
AcquisitionsFinancial trends

* Comparable period includes pre-acquisition results. All at constant exchange rates.



International financial reporting standards l.jpg
International Financial Reporting Standards

  • IFRS reporting starts in 2006 H1

  • Three principal impacts

    • expense share-based payments

    • capitalise and amortise different classes of intangible assets on acquisitions

    • capitalise and amortise certain development expenditure

  • Analyst teach-in, September 2005



Business portfolio l.jpg
Business portfolio

  • Consistent revenue mix

  • Growth in all segments

  • Growth in all regions

  • Growth in all product groups

  • No competitor has this breadth


Customer needs supporting business processes l.jpg
Customer needs Supporting business processes


Decentralised structure l.jpg
Decentralised structure

Local products

Accounting and business rules vary by country

Locally-based R & D ensures rapid response

Local support

Accounting queries require local knowledge

Support feedback drives R & D

Local marketing

Local brands dominate volume market

Local accountants and customers provide leads




Slide21 l.jpg

Customer Migration

Software

  • Large base of businesses outgrowing original software

  • Migration programmes generated 45,000 sales

  • Continued investment in this activity

    Support

  • Extra support on existing solutions: 272,000 premium contracts

  • Customers moving to new solutions with new support

  • Higher support penetration in mid-market solutions

Total accounting customers

4,500,000

860,000

> 25 employees

660,000

Not using mid-market product

Total support contracts

1,300,000

Premium contracts

272,000


Slide22 l.jpg

Market environment

Software

  • Assets: local model, customer base, resellers

  • Addressing market in new sales channels

  • Global vendors have partial coverage

  • Outgrowing local vendors

Competitor

SAP

CORPORATE

MID-MARKET

Microsoft

LOCAL VENDORS

SMALL BUSINESS

Intuit

Support

  • SMEs need IT partner

  • Market-leading service

  • Service demands becoming more sophisticated

MID-MARKET

SMALL BUSINESS








Support contracts l.jpg
Support contracts

thousands

Rest of World

North America

Mainland Europe

UK


Return on capital employed l.jpg
Return on capital employed

Post-tax operating profit / Goodwill

* H1 2005 figures annualised


Slide32 l.jpg

UK

* Excluding CRM





Slide36 l.jpg

North AmericaSmall business

* Excluding CRM


Slide37 l.jpg

North AmericaMid-market

* Excluding CRM


Slide38 l.jpg

Rest of World

* Excluding CRM


ad