REG-Misys PLC <MSY.L> Interim Results - Part 3
Released: 24/01/2008
RNS Number:4270M
Misys PLC
Part 3 : For preceding part double-click [nRN1X4270M]
13 Other intangible assets
---------------- ------- ------- ------ ------- ------- ------ -------
all figures in £ Complete Customer Trade names and Total acquired Developed Third Total
millions technology relationships brands intangibles software party intangibles
software
--------------- ------- ------- --------- -------- ------- ------ -------
Cost
At 1 June 2007 18.2 3.8 0.4 22.4 37.8 12.6 72.8
Differences on
exchange 0.1 - (0.1) - (0.4) (0.2) (0.6)
On disposal of
subsidiary
undertakings - - - - (3.9) (2.9) (6.8)
Additions - - - - 6.2 4.1 10.3
------------- ------- ------- --------- -------- ------- -------- -------
At 30 November
2007 18.3 3.8 0.3 22.4 39.7 13.6 75.7
------------- ------- ------- --------- -------- ------- -------- -------
At 30 November
2006 18.5 3.9 0.3 22.7 39.0 12.2 73.9
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Amortisation and
impairment
At 1 June 2007 (9.8) (0.8) (0.1) (10.7) (22.0) (9.7) (42.4)
Differences on
exchange - - - - 0.2 0.2 0.4
Charge for the
period (1.1) (0.2) - (1.3) (1.5) (0.7) (3.5)
On disposal of
subsidiary
undertakings - - - - 3.9 2.7 6.6
------------- ------- ------- --------- -------- ------- -------- -------
At 30 November
2007 (10.9) (1.0) (0.1) (12.0) (19.4) (7.5) (38.9)
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At 30 November
2006 (4.2) (0.4) - (4.6) (10.4) (9.0) (24.0)
------------- ------- ------- --------- -------- ------- -------- -------
Net book value
At 30 November
2007 7.4 2.8 0.2 10.4 20.3 6.1 36.8
At 31 May 2007 8.4 3.0 0.3 11.7 15.8 2.9 30.4
At 30 November
2006 14.3 3.5 0.3 18.1 28.6 3.2 49.9
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14 Loans and overdrafts
------------------------------ --------- --------- ---------
all figures in £ millions 30 November 30 November 31 May
2007 2006 2007
------------------------------ --------- --------- ---------
Bank overdrafts 2.1 1.9 2.1
Finance leases 0.6 1.1 1.0
------------------------------ --------- --------- ---------
Current loans and overdrafts 2.7 3.0 3.1
Bank loans - 216.7 176.0
Finance leases 0.6 0.9 0.9
------------------------------ --------- --------- ---------
Non current loans and
overdrafts 0.6 217.6 176.9
------------------------------ --------- --------- ---------
Total loans and overdrafts 3.3 220.6 180.0
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The Group has a revolving credit facility with a syndicate of banks. The
facility comprised one tranche of $585m which will mature not later than March
2010 and a second tranche of $74m which was originally scheduled to mature not
later than December 2008. However following the disposals made in the past six
months our credit needs have reduced and this second tranche was cancelled in
November 2007.
Bank loans
At 30 November 2007 there were no loans drawn down under the revolving credit
facility.
Arrangement fees in respect of this facility were included in the original
carrying value of the loan. These costs are amortised in the income statement
over the expected term of the facility. The amount of unamortised facility
arrangement fees at 30 November 2007 is £0.3m. The facility is guaranteed by
certain companies within the Group.
The Group is subject to certain financial covenants under the revolving credit
facility: these include a minimum ratio of operating profit, before depreciation
and amortisation to net interest and a maximum ratio of net debt to operating
profit, before depreciation and amortisation.
15 Provisions for liabilities and charges
------------------------- ------------- ----------- ---------
all figures in £ millions 30 November 30 November 31 May
2007 2006 2007
------------------------- ------------- ----------- ---------
Property 14.1 17.6 15.6
Contingent consideration 0.6 - 0.6
Lapses and Regulatory reviews and
complaints - 68.0 -
Other 0.4 0.6 1.2
------------------------- ------------- ----------- ---------
15.1 86.2 17.4
------------------------- ------------- ----------- ---------
Included in current liabilities 5.7 54.4 6.9
Included in non current liabilities 9.4 31.8 10.5
------------------------- ------------- ----------- ---------
15.1 86.2 17.4
------------------------- ------------- ----------- ---------
The property provisions comprise the net present value of the estimated future
costs of vacant and sublet properties and the excess over market value for
occupied properties of subsidiaries acquired in previous years. The provision
relating to vacant and sublet properties is expected to be utilised on average
over the next eight years, and the excess over market value provision over the
next six years.
Contingent consideration is interest bearing and is payable in cash.
Included in other provisions are amounts primarily in respect of litigation and
non property related onerous contracts.
16 Contingent liabilities
As set out in note 30 of the Financial Statements for the year ended 31 May 2007
the Group had applied to the IRS to correct a number of administrative errors in
the operation of part of the US defined contribution pension schemes. The IRS
issued a compliance statement on 21 September in respect of this issue, the
implementation of which is due by 21 February 2008 and is not expected to result
in a material cost to the Group.
The Group's subsidiaries and the company can be parties to legal actions and
claims arising in the ordinary course of business. Whilst the outcome of current
outstanding actions and claims remains uncertain, it is expected that they will
be resolved without a material impact to the Group's financial position.
17 Reserves
all figures in £ millions Share capital Share premium Capital Other reserves Equity
------------------------- ------- ------- redemption ------- shareholders'
reserve funds
------- --------
At 1 June 2007 5.5 67.3 0.3 (76.5) (3.4)
Total recognised
income and expense for
the period - - - 92.3 92.3
Dividends paid - - - (22.7) (22.7)
Share options settled
from own shares - - - 2.8 2.8
Purchase of and other
movements in own shares - - - (2.4) (2.4)
Share-based payments - - - 2.4 2.4
Deferred tax on share-based
payments - - - (0.7) (0.7)
----------------------- -------- --------- ------- --------- --------
At 30 November 2007 5.5 67.3 0.3 (4.8) 68.3
----------------------- -------- --------- ------- --------- --------
During the period 1,050,000 shares were purchased during the period by the
Company at a cost of £2.1m. No ordinary shares were purchased by the Company in
the comparative periods.
During the period 151,259 (First half 2006/07: 303,895; Year 2006/07: 445,944)
ordinary shares were purchased by the Misys Employees' Share Trust at a cost of
£0.3m (First half 2006/07: £0.7m; Year 2006/07: £0.9m).
------------------------- -------- ------- ------- -------- -------
all figures in £ millions Share capital Share Capital Other reserves Equity
premium redemption shareholder
reserve funds
------------------------- -------- ------- ------- --------- -------
At 1 June 2006 5.5 67.2 0.3 (66.0) 7.0
Total recognised income and
expense for the period - - - 20.3 20.3
Dividends paid - - - (21.4) (21.4)
Share options settled from
own shares - - - 2.7 2.7
Purchase of and other
movements in own shares - - - (0.7) (0.7)
Share-based payments - - - 3.2 3.2
Deferred tax on share-based
payments - - 0.3 0.3
Other movements - - - 0.2 0.2
------------------------- -------- ------- ------- --------- -------
At 30 November 2006 5.5 67.2 0.3 (61.4) 11.6
------------------------- -------- ------- ------- --------- -------
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors confirm that this condensed set of financial statements has been
prepared in accordance with IAS 34 as adopted by the European Union, and that
the interim management report herein includes a fair review of the information
required by DTR 4.2.7 and DTR 4.2.8.
The Directors of Misys plc are listed in the Misys plc Annual Report and
Accounts for 31 May 2007, with the exception of the following changes that took
place during the six months ended 30 November 2007:
Jim Malone was appointed on 19 June 2007.
Jurgen Zech resigned on 19 September 2007.
By order of the Board
Mike Lawrie
Chief Executive Officer
24 January 2008
Jim Malone
Chief Financial Officer
24 January 2008
INDEPENDENT REVIEW REPORT TO MISYS PLC
Introduction
We been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report ("interim report") for the six
months ended 30 November 2007, which comprises the Consolidated income
statement, Consolidated balance sheet, Statement of recognised income and
expenditure, Consolidated statement of cash flows and related notes. We have
read the other information contained in the interim report and considered
whether it contains any apparent misstatements or material inconsistencies with
the information in the condensed set of financial statements.
Directors' responsibilities
The interim report is the responsibility of, and has been approved by, the
directors. The directors are responsible for preparing the interim report in
accordance with the Disclosure and Transparency Rules of the United Kingdom's
Financial Services Authority.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this interim report has been
prepared in accordance with International Accounting Standard 34, "Interim
Financial Reporting", as adopted by the European Union.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed
set of financial statements in the interim report based on our review. This
report, including the conclusion, has been prepared for and only for the company
for the purpose of the Disclosure and Transparency Rules of the Financial
Services Authority and for no other purpose. We do not, in producing this
report, accept or assume responsibility for any other purpose or to any other
person to whom this report is shown or into whose hands it may come save where
expressly agreed by our prior consent in writing.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the interim report for the six
months ended 30 November 2007 is not prepared, in all material respects, in
accordance with International Accounting Standard 34 as adopted by the European
Union and the Disclosure and Transparency Rules of the United Kingdom's
Financial Services Authority.
PricewaterhouseCoopers LLP
Chartered Accountants
London
24 January 2008
Notes:
A. The maintenance and integrity of the Misys plc website is the responsibility
of the Directors; the work carried out by the auditors does not involve
consideration of these matters and, accordingly, the auditors accept no
responsibility for any changes that may have occurred to the financial
statements since they were initially presented on the website.
B. Legislation in the United Kingdom governing the preparation and dissemination
of financial statements may differ from legislation in other jurisdictions.
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