DXS INTERNATIONAL PLC
HALF YEAR REPORT
DXS International plc ("DXS" or "the Company"), the NEX Growth Market quoted healthcare information and clinical decision support systems provider today announces its half year report for the 6 month period ending 31 October 2017.
As DXS has previously indicated Government budget cuts and reorganisations within the NHS have severely affected our plans for organic growth during the past year. With the cuts in CCG budgets adversely affecting both sales and retention of existing clients, turnover fell by 7% in the second half of the last financial year and a further 2.5% in the first half of the current financial year. The decline has now been arrested and we have been able to source additional loans to be able to continue our investment in our new products (outlined below). While the outcome for the six months to October 2017 is disappointing, the Board believes that the Company is now on the turn back to growth. The NHS have informed us that the new GPSoC 3 tender will happen this year and that they intend addressing the shortcomings of GPSoC 2 during the past two years which have made business difficult for many NHS suppliers.
Management are confident that the Company is poised to achieve significant growth over the next three years. The basis for the positive outlook is founded on the following premises:
- The NHS and Healthcare providers globally continue to face continual rising costs and simply have no choice other than to find ways of curbing costs;
- It is a fact that globally 70% of healthcare costs are incurred by 27% of the population - these are people with one or more long term conditions;
- It is an accepted fact that if the chronic conditions of this sector of the population were better managed the result will be reduced admissions to hospital - the main cost factor.
- Newly developed DXS products focus particularly on improving the effective management of patient care particularly those with these expensive long term conditions.
DXS has spent the past three years innovating and developing cutting edge solutions that will contribute to helping manage patients with long term conditions. These products are generating impressive feedback from the clinicians who have seen them.
- The four key modules are: An intelligent referral management system. This has been trialled for the past eight months and is achieving significant results for the client, particularly by reducing unwarranted referrals;
- The DXS Call and Recall app, which automatically analyses a patient's record and then communicates with the patient via the app regarding required health checks, medicine compliance, signposting to preferred services etc;
- The DXS PCP tool that reads a patient's record and then makes medicine treatment recommendations to a prescriber ensuring that a patient is compliant with the best evidence treatment;
- Care in the home monitoring devices that have built in sim cards and seamlessly send various readings, such as Blood Pressure, to both the GP practice and the patient's App.
A pilot of all of the foregoing has commenced at Warrington, focusing on one of the most significant and complex major long term conditions - hypertension. There are three additional pilots addressing Diabetes, Pregnancy and Arthritis and the initial response is very positive. The roll out of these pilots is a major focus for the Company.
While DXS continues to invest in R&D, management has planned an aggressive sales and marketing campaign to achieve significant revenue growth over the next three years.
The Board is focused on continuing to improve communication with shareholders and has introduced a programme of newsletters. If you wish to be added to the circulation list of recipients please contact our office on +441252719800 or send an email to info@dxs-systems.co.uk.
David Immelman
CEO
INTERIM RESULTS TO 31 OCTOBER 2017
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the six month period ended 31 October 2017
| Unaudited Group 6 Months ended 31st Oct 2017 | Restated Unaudited 6 Months ended 31st Oct 2016 | Audited Year to 30th April 2017 | ||||||
| £ | £ | £ | ||||||
| Turnover | 1,608,023 | 1,778,482 | 3,428,632 | |||||
| Cost of Sales | (225,083) | (248,490) | (468.092) | |||||
| _________ | _________ | _________ | ||||||
| 1,382,940 | 1,529.992 | 2,960,540 | ||||||
| Administrative and Selling Expenses | (1,471,154) | (1,458,747) | (2,945,032) | |||||
| _________ | _________ | _________ | ||||||
| Operating Profit/(Loss) | (88,214) | 71,245 | 15,508 | |||||
| Other interest receivable and similar income | 1,431 | 1,303 | 2,642 | |||||
| Interest payable and similar charges | (5,497) | (8,916) | 20,682 | |||||
| _________ | _________ | _________ | ||||||
| Profit / (Loss) on ordinary activities before taxation | (92,280) | 63,632 | 38,832 | |||||
| Taxation on ordinary activities | 119,980 | 64,968 | 185,290 | |||||
| _________ | _________ | _________ | ||||||
| Profit for the period | 27,700 | 128,600 | 224,122 | |||||
| ========= | ========= | ========= | ||||||
| Profit per share | ||||||||
| 0.0p | 0.4p | 0.7p | |||||
| 0.0p | 0.3p | 0.6p | |||||
| ========= | ========= | ========= | ||||||
| Notes: | |
| All amounts relate to continuing activities. | |
| All recognised gains and losses are included in the profit and loss account. |
.
CONSOLIDATED BALANCE SHEET
as at 31 October 2017
| Unaudited Group 31 Oct 2017 | Restated Unaudited Group 31 Oct 2016 | Restated Audited Group 30 April 2017 | ||||
| £ | £ | £ | ||||
| Fixed Assets | ||||||
| Intangible Assets | 2,646,290 | 2,281,234 | 2,460,085 | |||
| Tangible Assets | 848 | 6,755 | 3,253 | |||
| _________ | _________ | _________ | ||||
| 2,647,138 | 2,287,989 | 2,463,338 | ||||
| _________ | _________ | _________ | ||||
| Current assets | ||||||
| Debtors | ||||||
| 1,551,359 | 371,486 | 1,376,513 | |||
| 92,127 | 96,557 | 96,550 | |||
| Cash at bank and in hand | 135,602 | 361,314 | 165,736 | |||
| _________ | _________ | _________ | ||||
| 1,779,088 | 829,357 | 1,638,799 | ||||
| Creditors: amounts falling due within one year | (1,364,634) | (671,886) | (1,123,277) | |||
| _________ | _________ | _________ | ||||
| Net current liabilities | 414,454 | 157,471 | 515,522 | |||
| _________ | _________ | _________ | ||||
| Total assets less current liabilities | 3,061,592 | 2,445,460 | 2,978,860 | |||
| Creditors: amounts falling due after more than one year | (194,253) | (91,849) | (97,849) | |||
| Accruals and Deferred Income | (948,677) | (558,171) | (990,049) | |||
| _________ | _________ | _________ | ||||
| 1,918,662 | 1,795,440 | 1,890,962 | ||||
| ========= | ========= | ========= | ||||
| Capital and reserves | ||||||
| Called up share capital | 110,174 | 110,174 | 110,174 | |||
| Share Premium account | 1,639,523 | 1,639,523 | 1,639,523 | |||
| Provision for costs of share option awards | 162,580 | 162,580 | 162,580 | |||
| Profit and loss account | 6,385 | (116,837) | (21,315) | |||
| _________ | _________ | _________ | ||||
| Equity Shareholders Funds | 1,918,662 | 1,795,440 | 1,890,962 | |||
| ========= | ========= | ========= | ||||
The above figures have not been reviewed by the company's auditors LDP Luckmans.
The Directors of DXS International plc accept responsibility for this announcement
Contacts:
| David Immelman, CE0 | 01252 719800 |
| DXS International Plc | |
| www.dxs-systems.com | |
| Corporate Adviser | |
| City & Merchant Ltd | 0207 101 7676 |
| David Papworth | |
| 020 7101 7676 | |
Notes to Editors
About DXS:
DXS International presents up to date treatment guidelines and recommendations, from Clinical Commissioning Groups and other trusted NHS sources, to doctors, nurses and pharmacists in their workflow and during the patient consultation. This effective clinical decision support ultimately translates to improved healthcare outcomes delivered more cost effectively which should significantly contribute towards the NHS achieving its projected efficiency savings.