Intec Telecom Systems PLC - Audited Preliminary results for the year ended 30 September 2004

Adjusted profit before tax ¹ up 54% to £8.3 million on turnover increase of 36% to £68.8 million; successful acquisition of leading retail billing system.

Intec Telecom Systems PLC (LSE:ITL, “Intec” or “the Company”), a global provider of enterprise-level software and services, today announces its audited results for the year ended 30 September 2004. The Company is pleased to report growth of over 35% in both profitability and revenues, positive operating cashflow despite continued strong investment in business growth, and a total of 100 new customers won or acquired in 2004. During the year Intec also made an important acquisition, the ‘Singl.eView' retail billing business of ADC, which is now generating substantial new business opportunities for the company.

FINANCIAL AND OPERATING HIGHLIGHTS

• Revenues for the year ended 30 September 2004 increased by 36% (30% organic) to £68.8 million (year ended 30 September 2003: £50.7 million).
  
• Adjusted profit before tax¹ substantially increased to £8.3 million (2003: £5.4 million).
  
• Positive operating cash inflow of £4.6 million generated during the year (2003: inflow of £8.5 million).
  
• Operating loss of £1.4 million (2003: 1.9 million) attributable to goodwill and intangible amortisation of £8.8 million.
  
• Loss before tax £1.2 million (2003: £1.8 million).
  
• Customer base increased by 27% to 465, with important new customer wins in the UK, US, Europe, Latin America, and Asia.
  
• $74.5 million acquisition of ‘Singl.eView’ retail billing business concluded during the year.
  
• Gross margin improved to 72% (2003: 70%).
  
• Cash and cash equivalents stand at £32.2 million (2003: £15.3 million).
  
• Several new products introduced to complement core billing and mediation families.
  
• Strong pipeline for 2005.

Commenting on the results, Mike Frayne, Executive Chairman said: “In 2004 Intec has become one of the top five players in the OSS/BSS market worldwide, through both our acquisition of Singl.eView and the good organic growth we have generated in the core business. Growth in revenues and earnings has substantially exceeded the industry average, and we have also enhanced our cash position, despite strong investment in all aspects of the business. Although we see continuing competitive conditions in the telecoms market, the important opportunities we are now engaged with for Singl.eView and other key products give me confidence that Intec has strong prospects for 2005 and beyond.”

Kevin Adams, Chief Executive, added, “Intec has won and acquired many new customers in 2004, including a number of multi-million Pound contracts around the world. Execution of our long-term strategy of high-quality, profitable growth has continued, with expansion in all areas of the business. Integrating Singl.eView, although clearly a large project, and restoring sales momentum to its pipeline, are both progressing very well, and we are cautiously confident that we can meet our objectives in 2005.”

There will be an analyst meeting at 09:15 hours today (30 November 2004) at Financial Dynamics, Holborn Gate, 26 Southampton Buildings , London .

¹ Adjusted profit before tax: A reconciliation between adjusted profit before tax and the loss before tax is shown on the consolidated profit and loss account. The differences relate to amortisation of goodwill and other intangible assets of £8.8 million (2003: £7.2 million) and exceptional administrative expenses of £0.7 million (2003: nil).

Enquiries

View the full press release in PDF format.