Arrowpoint Technologies Plc
LSE : ARWP

September 30, 2010 09:12 ET

Audited Results for the year ended 31 March 2010

                                                                                                    30 September 2010
                                                                                                        IM00B3VBZX00

                                             Arrowpoint Technologies Plc
                                           ("Arrowpoint" or "the Company")
                                                          
                                  Audited Results for the year ended 31 March 2010
                                                          
Chairman's Statement

I  am  pleased to report that in the year ended 31 March 2010, Arrowpoint made a profit of $137,898 compared with  a
loss of $108,908 in the previous year.  During the year, we continued with our consolidation efforts and implemented
appropriate  cost  reduction measures to shield the Company from the worst effects of the global economic  downturn.
Despite market conditions, the Group successfully secured repeat business as well as signing new customers, and  the
Directors are pleased with the Group's overall performance in difficult circumstances.

Lynchval Systems Worldwide Inc

Lynchval  was awarded a re-compete contract for the Integrated Present Value of Future Benefits (IPVFB) System  with
the  Pension  Benefit  Guaranty Corporation (PBGC), the Federal US pensions body, for a  total  of  $327,337.   This
contract  may  be  extended  on an annual basis for up to 4 years.  Lynchval was also awarded  an  extension  to  28
February  2010  to  its contract with the PBGC to provide actuarial and IT services in connection with  the  Pension
Insurance  Modelling  Systems project (PIMS). This extension required additional resource input  from  Lynchval  and
generated  incremental  income for the Group. This contract, which is worth between $2.2m and  $2.4m  annually,  has
subsequently been renewed for one year initially, with an option to extend the deal by another four years.

Lynchval  also won an 18-month extension to an existing contract from Principal Financial Group®, a global financial
services  provider,  for pension administration software and plan conversion services. This contract  will  generate
revenues of up to $2 million over the contract term.

Lynchval  also  completed  the conversion process for the AMTRAK/National Railroad Passenger  Corporation's  defined
benefit  plans in September 2009. AMTRAK will be online with their system in October 2010.  The total value of  this
conversion contract is $345,750. AMTRAK will continue to lease the Group's LVadmin software for 3 years.

The  Group  also  undertook  a major exercise developing a new product for asset liability  management.   The  asset
liability management (ALM) product has been designed and written from the ground up by our Chief Actuary,  Mr.  Jeff
Lane, and his colleagues.

Arrowpoint Technologies Inc

ATI's  consultancy  operations were severely affected by the economic recession, but have recently  shown  signs  of
recovery  and,  as  well as retaining existing clients, ATI also managed to acquire a key client  in  the  Insurance
industry.   As  the  economic recession recedes, the outlook for this business will improve  and  it  will  see  the
benefits of the cost reduction programme we implemented, as well as the synergies created by the integration of  its
back office operations with those of Lynchval.


Arrowpoint Technologies Private Limited

At  ATPL, our Offshore Development Centre in Chennai, India, we have augmented the infrastructure by installing high
availability  virtual servers for software development and testing. We have also implemented a  number  of  software
tools for sophisticated Software Development Life Cycle Management.

Future Developments

In continuation with our consolidation and growth strategy, we hired two senior management professionals in the USA.
Mr.  Roy  Augsberger  joined us in February 2010 as President and CEO of Lynchval and at the same  time,  Ms.  Linda
Abruzzo  joined Lynchval as Vice President, Delivery. Both Roy and Linda come with immense experience and, prior  to
joining  us, both held senior positions at a large global IT company. Since joining the Group, they have put immense
effort  into streamlining Lynchval's operations, product and service delivery. Specifically at PBGC, a key  customer
of Lynchval, they have streamlined our service delivery and generated increased revenues from the customer.  Roy and
Linda  are also focussing on further rationalising our costs and expenses to increase the operational efficiency  of
Lynchval further.

Over  the  next  18 months we will consider expanding the Group into new and complementary service  areas,  such  as
enterprise  program  management, training and pension plan conversion services. To this  end,  we  have  hired  five
actuaries in India and are training them in the USA.

We  are  now  actively  engaged  with our existing client base across the Group and are  aggressively  pursuing  new
business  opportunities  with  them.  We are pleased to report that key clients are  responding  positively  to  our
proposals and we are confident that, over the next 18 months, we will derive additional business from these  clients
and from new ones.

Economic conditions continue to be challenging, but your Directors believe that the initiatives implemented over the
last year have strengthened the Group and they remain confident of the Group's prospects for the future.

Post Balance Sheet Events

In  keeping with the Company's overall growth strategy, a working capital loan of $2.5million with ICICI Bank, India
was  applied for by Turnkey Software People (India) Pvt. Ltd, the ultimate parent company of Arrowpoint Technologies
Plc,  and  sanctioned  on  22  September 2010, in the form of a standby letter of credit  through  which  Arrowpoint
Technologies Plc can draw down upon the limit from designated banks in the USA.

Dividends

The  profit  for the year, amounting to $137,898, has been dealt with as shown in the profit and loss account.   The
directors do not propose the payment of a dividend.

By order of the board

Director
Santanu Nandy
ARROWPOINT TECHNOLOGIES PLC

CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2010


                                                                                      2010              2009
                                                                                     $'000              $'000
                                                                                                   
INCOME                                                                              15,209             15,163
                                                                                                   
Other income                                                                            29                 37
Administrative expenses excluding depreciation and amortisation                    (13,624)           (13,219)
                                                                                  --------------     --------------
Earnings before interest, tax, depreciation and amortisation                         1,614              1,981
                                                                                  --------------     --------------
                                                                                                   
                                                                                                   
Depreciation                                                                          (80)               (491)
Amortisation                                                                         (807)              (964)
                                                                                --------------     --------------
OPERATING PROFIT                                                                      727                526
                                                                                                   
Interest payable and similar charges                                                 (545)              (703)
                                                                                --------------     --------------
PROFIT/(LOSS) BEFORE TAX                                                              182                (177)
                                                                                                   
Tax on profit/(loss) on ordinary activities                                           (44)                68
                                                                                  --------------     --------------
PROFIT/(LOSS) ON ORDINARY ACTIVITIES AFTER TAX                                        138                (109)
                                                                                    =======            =======
                                                                                                   
Earnings/(loss) per ordinary share ($)                                                             
Basic                                                                           $0.00              ($0.31)
Diluted                                                                         $0.00              ($0.31)
                                                                                                   

All amounts relate to continuing operations.


ARROWPOINT TECHNOLOGIES PLC

COMPANY PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2010



                                                                                        2010             2009
                                                                                        $'000            $'000
                                                                                                     
Administrative expenses                                                                  (48)              (33)
                                                                                                     
OPERATING LOSS                                                                           (48)              (33)
                                                                                                     
Interest payable and similar charges                                                    (167)             (89)
                                                                                     -----------       ------------
LOSS BEFORE TAX                                                                         (215)             (122)
                                                                                                     
Tax on loss on ordinary activities                                                        -                 -
                                                                                   -----------       ------------
LOSS ON ORDINARYACTIVITIES AFTER TAX                                                    (215)             (122)
                                                                                        =====             ======
                                                                                                     

All amounts relate to continuing operations.





















ARROWPOINT TECHNOLOGIES PLC

CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

FOR THE YEAR ENDED 31 MARCH 2010


                                                                                         2010            2009
                                                                                        $'000            $'000
                                                                                                           
Profit/(loss) for the financial year                                                     138            (109)
Foreign exchange difference on brought forward reserves                                  192            8
                                                                                     -----------    -----------
Total recognised gains and losses relating to the year                                   330            (101)
                                                                                        =====          =====
                                                                                                    



COMPANY STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

FOR THE YEAR ENDED 31 MARCH 2010


                                                                                         2010            2009
                                                                                        $'000            $'000
                                                                                                           
Loss for the financial year                                                             (215)          (122)
                                                                                     -----------    -----------
Total recognised gains and losses relating to the year                                  (215)          (122)
                                                                                        =====          =====





























ARROWPOINT TECHNOLOGIES PLC

CONSOLIDATED BALANCE SHEET

AS AT 31 MARCH 2010



                                                                                           2010           2009
                                                                                          $'000           $'000
Fixed assets                                                                                                      
Intangible assets                                                                        17,849           18,019
Tangible assets                                                                             358              319
                                                                                      -------------    -----------
                                                                                                       
                                                                                         18,207           18,338
                                                                                      -------------    -----------
                                                                                                       ----
Current assets                                                                                         
Debtors                                                                                  2,375            2,046
Cash at bank and in hand                                                                   956              337
                                                                                      -------------    -----------
                                                                                                       ----
                                                                                         3,331            2,383
                                                                                                       
Creditors: amounts falling due within one year                                          (3,666)          (11,039)
                                                                                      -------------    -----------
                                                                                                       ----
Net current liabilities                                                                   (335)            (8,656)
                                                                                      -------------    -----------
                                                                                                       ----
                                                                                                       
Creditors: amounts falling due after more than one year                                  (9,635)          (7,857)
                                                                                      -------------    -----------
                                                                                                       ----
                                                                                                       
NET ASSETS                                                                                8,237            1,825
                                                                                         ======           ======
                                                                                                       
Called up share capital                                                                   2,947            -
Share premium                                                                             5,242            -
Shares to be issued                                                                        -              2,107
Merger reserve                                                                            (275)            (275)
Profit and loss reserve                                                                    323              (7)
                                                                                      -------------    -----------
                                                                                                       ----
EQUITY AND RESERVES                                                                      8,237            1,825
                                                                                         ======           ======
                                                                                                       





ARROWPOINT TECHNOLOGIES PLC

COMPANY BALANCE SHEET

AS AT 31 MARCH 2010


                                                                                          2010           2009
                                                                                          $'000          $'000
Fixed assets                                                                                                      
Investments                                                                              13,278         5,074
                                                                                      -----------    -----------
                                                                                         ---            -
Current assets                                                                                       
Cash at bank and in hand                                                                     9              8
                                                                                                     
Creditors: amounts falling due within one year                                                       
Creditors                                                                                  (32)           (94)
                                                                                      -----------    -----------
                                                                                      ---            -
Net current liabilities                                                                    (23)           (86)
                                                                                      -----------    -----------
                                                                                      ---            -
                                                                                                     
Creditors: amounts falling due after more than one year                                  (5,412)        (3,012)
                                                                                      -----------    -----------
                                                                                      ---            -
                                                                                                     
NET ASSETS                                                                                7,843          1,976
                                                                                         =======        ======
                                                                                                     
Called up share capital                                                                   2,947           -
Share premium                                                                             5,242           -
Shares to be issued                                                                         -            2,107
Profit and loss reserve                                                                   (346)          (131)
                                                                                      -----------    -----------
                                                                                      ---            ---
EQUITY AND RESERVES                                                                       7,843          1,976
                                                                                      ======         ======
                                                                                                     






ARROWPOINT TECHNOLOGIES PLC

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2010



                                                                                         2010            2009
                                                                                        $'000            $'000
                                                                                                                      
Operating profit                                                                         727              526
Amortisation of intangible fixed assets                                                  807              964
Adjustment of intangible fixed assets                                                  1,200               -
Depreciation charges                                                                      80              491
Profit on disposal of fixed assets                                                        -                 3
Investments written-off                                                                   -                75
Foreign exchange movements                                                               192                7
Decrease in stock                                                                         -                79
(Increase)/decrease in debtors                                                          (329)             430
Decrease in creditors                                                                 (8,098)             (92)
                                                                                    ------------     ------------
Net cash (utilised)/generated from operating activities                               (5,421)           2,483
                                                                                                     
Returns on investments and servicing of finance                                                      
Interest paid                                                                           (545)            (478)
                                                                                    -----------      -----------
Net return on investments and servicing of finance                                      (545)            (478)
                                                                                                     
Taxation                                                                                 (40)             (31)
                                                                                                     
Capital expenditure and financial investment                                                         
Capitalised expenditure on software development                                       (1,829)          (1,803)
Purchase of intangible software applications                                              (8)            (190)
Purchase of tangible fixed assets                                                       (119)            (602)
Sale of tangible fixed assets                                                             -                -
                                                                                    -------------    -------------
Net capital expenditure and financial investments                                     (1,956)          (2,595)
                                                                                                     
Acquisitions and disposals                                                                           
Purchase of trade and assets                                                            -                (509)
Purchase of subsidiaries                                                                -                (85)
Net cash acquired with subsidiaries                                                     -                 -
                                                                                    -------------    -------------
Net acquisitions and disposals                                                          -                (594)
                                                                                                     
Management of liquid resources                                                          -                  -
                                                                                                      
Financing                                                                                            
Loans from ultimate parent company                                                      1,393            851
Bank loans obtained in the year                                                         1,000            -
Issue of share capital (net of costs)                                                   6,082            -
                                                                                    -------------    -------------
                                                                                        8,475            851
                                                                                                     
Net increase/(decrease) in cash and cash equivalents                                    513              (364)
At the beginning of the year                                                            152               516
                                                                                    -------------    -------------
At the end of the year                                                                  665              152
                                                                                       ======           ======
                                                                                                     
                                                                                                     
                                                                                                     



The  financial statements were approved and authorised for issue by the Board of Directors on 29 September
2010.
         
The  above  is  an  extract  from the Company's Report and Accounts. The full  Report  and  Accounts  are
available on the PLUS website.

The Directors of Arrowpoint are responsible for the contents of this announcement.

Contact Details:

Arrowpoint Technologies Plc                               
Santanu Nandy, Group Managing Director                                                              +91 22 2598 5900

                                                          
St Helens Capital Partners LLP                            
Mark Anwyl or Duncan Vasey                                                                       +44 (0)20 7368 6959
                                                          

    

Contact Information

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