2009-11-27 12:35:02 -
London, November , 27, 2009
DRS Data & Research Services plc
DRS Data & Research Services plc ("the Group") announces its Interim
Management Statement for the period from 1 January 2009 to date.
Revenues for the ten months to 31 October
10 month period ended 10 months ended Change
31 October 2009 31 October 2008
£'000 £'000 %
Education revenue 11,445 11,026 3.8
Non-education revenue 1,436 3,669 (60.9)
Total revenue 12,881 14695 (12.3)
It was announced in the interim results released on 26 August 2009
that the Group's performance in its education markets was strong and
profitable but that the Group was underperforming in its other
markets. This pattern has continued into the second half of the year
and while contracts have been won in the non-education markets, most
of the revenues resulting from these contracts will not be received
until the next financial year. As a consequence of the continued
underperformance in 2009 in the Group's other markets the results for
the year ending 31 December 2009 will be below market expectations.
Stringent control of costs and cash continues to be a focus
throughout the Group. Despite the trading losses incurred in the year
to date, the Group's current cash holdings are similar to the start
of the year.
Education markets
The volume of examination scripts processed during the summer for the
Group's major UK customer, AQA, was 11% higher than in 2008 and was
accompanied by significant year-on-year productivity improvements.
Volumes for the AQA November examination series are also expected to
be higher than in 2008.
In Africa, sales into the education market in the first 10 months are
ahead of full-year 2008. A project to introduce e-Marker® to one
African awarding body has begun and the potential for its wider use
in Africa is substantial.
Meanwhile, e-Marker® pilots have commenced in the Caribbean and Asia.
We remain confident about the prospects for e-Marker® and are
continuing to invest in it accordingly.
Non-education markets
Notwithstanding the difficult nature of the commercial and census
markets, we have been successful in winning the contract for the
Pakistan census. Expectations at the half-year were that much of the
work for this contract, were it to be won, would be completed this
year but the current customer requirements mean that most of the
revenue will not now be recognised until 2010.
The US market for DocXP(TM) continues to be very difficult, however
Peladon Software Inc has made strategic progress by signing two
significant distributor agreements which will give it access to the
US healthcare market.
Outlook
The Directors still expect that the business will be profitable in
the second half of 2009, not least because the majority of the full
year revenue from e-Marker® was recognised in the third quarter.
However, due to the underperformance and customer delays in the
Group's non-education markets, the results for the year ending 31
December 2009 will be below market expectations.
Enquiries to:
Sally Hopwood
Company Secretary
Tel: 01908 666088
enquiries@drs.co.uk
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