CODA Group, the finance systems specialist, today announced its preliminary results for the year ended 31 December 2006. CODA is quoted on AIM (stock code: CODA), and has its headquarters in Chippenham, UK.
Financial Highlights for 2006:
* Revenue at record levels: 5.7% ahead at £53.5m (2005: £50.6m)
* Adjusted operating profit improved by 5.9% to £10.8m (2005: £10.2m)
* Profit before tax: £6.8m (2005: £7.1m) after charging £1.0m (2005: £0.1m) for non-recurring costs in respect of payments from the Employee Share Trust
* Basic adjusted earnings per share up 10.7% to 12.4p (2005: 11.2p)
* Basic earnings per share 6.6p (2005: 6.8p)
* Proposed final dividend increased 40% to 1.875p (2005 equivalent: 1.339p), making 2.625p in respect of this financial year (2005 equivalent: 1.875p) - also an increase of 40%
* Net cash inflow from operating activities £12.6m (2005: £12.4m)
* Gross value of deferred income: £19.5m (2005: £17.5m), an increase of 11.4%.
Graham Steinsberg, Chairman of CODA Group said: "CODA seeks to provide stakeholders with a quality, dependable offering for the future. To our clients we offer the highest pedigree in delivering leading, relevant, business systems; to our shareholders a solid track record combined with transparency and completeness of information."
In September 2006 CODA successfully demerged from the CODASciSys Group and was admitted to the AIM market. For many companies, the flotation process can be a distracting one for management, and can lead to a focus on short-term share price movements at the expense of the smooth running of the business. However, CODA's flotation has served to increase its focus on the operational success of the business. Since admission to the AIM market the CODA business has flourished.
The Board's strategy remains to use cash reserves to improve overall shareholder returns. Its attention remains focused on the continued growth of the CODA Group and plans that this will be both organic and from carefully selected acquisitions.
During the first nine months of the year CODA strengthened its capabilities and market position across many of its territories. The fourth quarter was the best on record for the CODA Group's revenues. During 2006, CODA secured a record number of licence sales with both new and existing clients. Success was spread widely across its territories. Major contracts were signed with a number of leading companies including: Caterpillar, Louvre Hotels Standard Life Investments, NFT, Manheim and Atos Origin for the Rail Settlement Plan.
Jeremy Roche, CEO of CODA Group, said: "The results for the year reflect the dedication, commitment and professionalism of all members of staff. I would like to take this opportunity to thank them on behalf of the Board for their invaluable contribution to these results."
A key objective of 2006 was to ensure full integration into the CODA organisation of the acquisitions made during 2005 in France, Sweden, Hungary and Germany. The initial results from the integration are pleasing, and levels of service quality to clients in these territories match those in other territories. All of the acquisitions have delivered results in line with, or ahead of, CODA's expectations at the time they were made.
CODA's strategic partnership with Microsoft, first announced in 2005, has progressed well in the areas of both development and marketing. Following discussions with SAP during 2006, CODA launched a version of Control Manager called Fast Close by CODA, specifically for SAP users. It received a number of certifications from SAP and has raised considerable interest, particularly in Germany, creating opportunities for licence, maintenance and services revenue.
CODA continues to dedicate significant resources to product development, to ensure we remain at the forefront of the market and continue to provide value for money to our clients in return for the maintenance payments they make.
In conclusion, Mr Steinsberg said: "Throughout 2006, CODA has continued to enhance its market position. It has won new clients and looked to enhance relationships with its existing ones. It has created new partnerships and brought to market new and ever more meaningful offerings to address the opportunities and challenges facing today's CFOs. Looking ahead, CODA remains committed to the path it has been following, building a successful company with a sustainable future. We remain positive about our outlook in 2007."
Financial Highlights for 2006:
* Revenue at record levels: 5.7% ahead at £53.5m (2005: £50.6m)
* Adjusted operating profit improved by 5.9% to £10.8m (2005: £10.2m)
* Profit before tax: £6.8m (2005: £7.1m) after charging £1.0m (2005: £0.1m) for non-recurring costs in respect of payments from the Employee Share Trust
* Basic adjusted earnings per share up 10.7% to 12.4p (2005: 11.2p)
* Basic earnings per share 6.6p (2005: 6.8p)
* Proposed final dividend increased 40% to 1.875p (2005 equivalent: 1.339p), making 2.625p in respect of this financial year (2005 equivalent: 1.875p) - also an increase of 40%
* Net cash inflow from operating activities £12.6m (2005: £12.4m)
* Gross value of deferred income: £19.5m (2005: £17.5m), an increase of 11.4%.
Graham Steinsberg, Chairman of CODA Group said: "CODA seeks to provide stakeholders with a quality, dependable offering for the future. To our clients we offer the highest pedigree in delivering leading, relevant, business systems; to our shareholders a solid track record combined with transparency and completeness of information."
In September 2006 CODA successfully demerged from the CODASciSys Group and was admitted to the AIM market. For many companies, the flotation process can be a distracting one for management, and can lead to a focus on short-term share price movements at the expense of the smooth running of the business. However, CODA's flotation has served to increase its focus on the operational success of the business. Since admission to the AIM market the CODA business has flourished.
The Board's strategy remains to use cash reserves to improve overall shareholder returns. Its attention remains focused on the continued growth of the CODA Group and plans that this will be both organic and from carefully selected acquisitions.
During the first nine months of the year CODA strengthened its capabilities and market position across many of its territories. The fourth quarter was the best on record for the CODA Group's revenues. During 2006, CODA secured a record number of licence sales with both new and existing clients. Success was spread widely across its territories. Major contracts were signed with a number of leading companies including: Caterpillar, Louvre Hotels Standard Life Investments, NFT, Manheim and Atos Origin for the Rail Settlement Plan.
Jeremy Roche, CEO of CODA Group, said: "The results for the year reflect the dedication, commitment and professionalism of all members of staff. I would like to take this opportunity to thank them on behalf of the Board for their invaluable contribution to these results."
A key objective of 2006 was to ensure full integration into the CODA organisation of the acquisitions made during 2005 in France, Sweden, Hungary and Germany. The initial results from the integration are pleasing, and levels of service quality to clients in these territories match those in other territories. All of the acquisitions have delivered results in line with, or ahead of, CODA's expectations at the time they were made.
CODA's strategic partnership with Microsoft, first announced in 2005, has progressed well in the areas of both development and marketing. Following discussions with SAP during 2006, CODA launched a version of Control Manager called Fast Close by CODA, specifically for SAP users. It received a number of certifications from SAP and has raised considerable interest, particularly in Germany, creating opportunities for licence, maintenance and services revenue.
CODA continues to dedicate significant resources to product development, to ensure we remain at the forefront of the market and continue to provide value for money to our clients in return for the maintenance payments they make.
In conclusion, Mr Steinsberg said: "Throughout 2006, CODA has continued to enhance its market position. It has won new clients and looked to enhance relationships with its existing ones. It has created new partnerships and brought to market new and ever more meaningful offerings to address the opportunities and challenges facing today's CFOs. Looking ahead, CODA remains committed to the path it has been following, building a successful company with a sustainable future. We remain positive about our outlook in 2007."
