Smart Identity PLC

December 10, 2009 02:00 ET

Unaudited Interim Results

10th December
                                                CONDUCO PLC
                                         UNAUDITED INTERIM RESULTS
                             FOR THE 6 MONTH PERIOD ENDING 30th SEPTEMBER 2009

The Board of Conduco PLC ("Conduco" or "the Company"), the software development company that specialises in
Location  Solutions and Password Management, is pleased to announce its interim unaudited results  for  the
six-month period to 30th September 2009.


*Revenue Steady at £169,820 despite tough economic conditions

*Cash Reserves remain strong - £0.978m (Compared to £1.0m last year)

*Recurring revenues of £259,000 per annum

*Investment in the management and sales teams

*New products in development for public and commercial sectors

*Continued focus on sales to the public and commercial sectors

*Planned move to new, larger offices to accommodate the next phase of growth

Commenting on the results, Scott Fletcher, Chairman of Conduco, said:

 "We have made further investments in the business to strengthen the platform for our next phase of growth.
We  now have a stronger management team and we have rationalised our products to focus on 3 core areas, one
of  which is an exciting new development for the company in the area of Real Time Locating Systems  (RTLS).
We  have also invested in the sales team giving us a much stronger go to market capability; consequently we
are  now  generating a high quality pipeline of business within both the public and commercial sectors.  We
will shortly be moving into larger premises.

I  am  pleased  to  report steady revenues whilst we have made all of these changes  in  what  has  been  a
challenging business environment".

                                                    - ENDS -

The Directors of the Issuer accept responsibility for this announcement

Conduco PLC                                           Tel: 0161 227 1000
Scott Fletcher, Chairman

Rivington Street Corporate Finance                    Tel: 020 7562 3393
Leo Godsall


During the first half of 2009, Conduco has demonstrated a period of significant progress. We maintained a
steady revenue stream while also building the platform necessary for the next phase of growth for the
company.  We have rationalised our products into 3 main areas to allow us to focus our resources and ensure
that we deliver on our plan.

The Company has continued to build on its successful relationships within the NHS.  Our sales and marketing
execution is much better with the addition of further sales resources. At the same time, we have also
diligently researched new markets.  Based on this research, we are now developing new applications in the
area of Real Time Locating Systems (RTLS)

Real-time locating systems (RTLS) use Radio Frequency Identification RFID technology to transmit the
physical location of tagged objects. The tags are either attached to, or embedded within the object. RF
transmitters/receivers located throughout the facility are used to determine the location of the tagged
object and send information to back office applications.

Tags are available containing sensors with the ability to monitor temperature, motion and humidity. Tamper
proof tags are also available so that notifications can be sent if a tag is disturbed for any unauthorised
reason. Tag batteries are replaceable and can last in excess of four years. Tags can contain buttons that
when pressed can trigger events or workflow processes.

RTLS solutions can be deployed across various sectors including; healthcare, manufacturing, logistics,
aerospace, defence and retail and aim to address some of the business challenges outlined below.

We have engaged with numerous NHS Trusts and have identified a clear business case around the overstock of
expensive and portable medical equipment. We believe with RTLS deployed, equipment inventories can be
reduced by around 20 per cent which is a very significant cost saving. In addition it can be very difficult
for a Trust to easily locate key equipment at crucial times improving patient care and allowing routine
maintenance to take place. There is clearly a gap in the market for a reliable and affordable solution to
this problem and we feel our systems fit the bill perfectly.

The  Smart  Identity  brand  has become closely associated with our highly successful  password  management
products.  We  will continue to develop, sell and support these products, however we felt that  our  growth
into  Real  Time  Locating Systems (RTLS) and the development of applications based on Cisco infrastructure
deserves a new name. So the Company has changed its name to Conduco plc, Latin for "Lead Forth".


Turnover has remained steady in the first half of the financial year to September 2009. Recurring revenues
stand at £259,000 per annum.

Overheads have risen from £170,452 to £258,876 as a consequence of Conduco making a number of investments
in the business. These include the appointment of a Managing Director, the recruitment of a additional
sales people, a structured marketing program, the rebranding of the business and the development of a new
website. A significant amount of resources have also been consumed in market research and the consequent
development of a new product in the RTLS space. It is envisaged that any further costs will be covered by
increased sales. The balance sheet remains well capitalized with almost £1m of cash.


The second half of the financial year has traditionally been a stronger period for spending by the NHS,
compared to the first half, a trend that has been augmented this year by the late distribution of budgets.
With the investment made in the sales team, we believe we are in a good position to turn the pipeline of
business created in the first half into revenue in the second half.

The development of the new products based on our market research is scheduled to be complete shortly,
allowing us to launch these new products in 2010.  Again, our investment in sales and marketing will allow
us to bring these new products to market in a focused way.

In summary, the first half of 2009 has seen steady progress for Conduco and we expect this to continue for
the year as a whole. We have now created a stronger platform for growth for the Company and I look forward
to updating shareholders on progress at the end of the financial year.

Scott Fletcher


Interim results for the six-month period to 30 September 2009          
Unaudited Profit & Loss Account                      6 months to            6 months to
                                                     30/9/09 GBP            30/9/08 GBP
Turnover                                                 169,820                172,135
Cost of Sales                                            (4,176)               (10,607)
Gross Profit                                             165,644                161,528
Administrative Expenses                                (258,876)              (170,452)
Operating Profit / (Loss)                               (93,232)                (8,924)
Interest Receivable                                        6,987                 25,806
Profit On Ordinary Activities Before Taxation           (86,245)                 16,882
Taxation                                                       0                (3,376)
Profit On Ordinary Activities After Taxation            (86,245)                 13,506
Earnings/(loss) per ordinary share                       (0.69)p                  0.11p
Diluted earnings/(loss) per ordinary share               (0.63)p                  0.10p
Unaudited Balance Sheet                             As at 30/9/09         As at 30/9/08
                                                          GBP                   GBP
Fixed Assets                                              10,998                  1,210
Current Assets                                         1,096,866              1,180,599
Current Liabilities                                    (254,164)              (279,591)
                                                         853,700                902,218
Share Capital                                            125,000                125,000
Reserves                                                 728,700                777,218
Shareholders Funds                                       853,700                902,218


The figures have not been audited or reviewed. The financial statement does not
constitute statutory accounts within the meaning of Section 434 of the
Companies Act 2006 (the "Act").


Contact Information

  • Smart Identity PLC