Arrowpoint Technologies Plc
LSE : ARWP

August 14, 2012 02:00 ET

AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2012

                                                                                                      14 August 2012
                                                                                                        IM00B3VBZX00
                                                                                                                    
                                             ARROWPOINT TECHNOLOGIES PLC
                                                          
                                  AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2012


The  directors  submit their report and the financial statements of Arrowpoint Technologies plc ("Arrowpoint",  "the
Company" or "the Group") for the year ended 31 March 2012.

RESULTS AND DIVIDENDS

EBITDA  of  USD 1,345,000 and net profit for the year amounting to USD 22,000 have been dealt with as shown  in  the
profit and loss account.  The Directors do not propose the payment of a dividend for this period.

PRINCIPAL ACTIVITY

The  Company was incorporated as a Private Limited Company, under the name Arrowpoint Technologies Limited,  in  the
Isle  of  Man,  under  the Companies Act 2006 on 13 July 2007.  On 23 April 2009 the Company  changed  its  name  to
Arrowpoint Technologies plc and was admitted onto the PLUS-quoted Market in October 2009. The principal activity  of
the  Company is that of a holding company. The Company's subsidiaries, Arrowpoint Technologies Inc, Lynchval Systems
Worldwide Inc and Arrowpoint Technologies Pvt Ltd, are engaged in the provision of retirement industry products  and
solutions, offshore services and consultancy.

Directors' Report

In  the year ended 31 March 2012, the Company's overall performance improved significantly.  Revenue improved by USD
764,000  and  EBITDA by USD 1,282,000 over the previous year.  Amid the continuing challenges of some  of  the  most
difficult global macroeconomic environment in decades, and especially in the primary country we operate in (USA), we
delivered strong results.  The results were in part driven by our commitment to re-focus the businesses on excelling
on our Core products and services with an emphasis on our legacy clients.

In  the year just ended we adopted a keen focus on execution.  More importantly, we execute with an unwavering sense
of determination and purpose.  That purpose is simply to achieve strong performance.

The performance of our company is the foundation for all we do. The performance agenda has three components:

    1.      Business Retention,

    2.      New Business Growth,

    3.      Operational Restructure

Everything  starts  with and is made possible by a consistently strong financial performance  across  our  strategic
business units, our emerging service units, and in the global markets in which we operate.

Although we are performing better on a year over year basis, we still have much work to do with KeyTech.  We need to
radically  convert  this  business from its current state of a commoditized body shopping business  to  a  strategic
specialty skills project and service deliverer business.  We are actively working on that transformation strategy.

Business Retention
We  are  performing  today to deliver strong financial performance, while investing to ensure that  our  performance
levels  can  be  sustained  and  progressively strengthened in the months and years to  come.   For  example,  while
delivering  strong financial results, we also created a strategic framework that takes into account our  short,  mid
and long term goals for Lynchval.  Today, we are executing on that strategic framework and winning.

New Business Growth
In  the  fiscal  year  2011-2012, we emphasized focusing on generating new business from both our  existing  clients
(selling  more and new services that we did not sell to them in the past) as well as to new prospects.  In 2011,  we
completed a USD 350,000 sale of our "core" admin and payment management systems to the Public Service Pension  Board
of  the  Government of the Cayman Islands.  Additionally, we have sold a new service contract worth USD  36,000  per
year for 5 years to PSPB Cayman Islands totaling USD 180,000.  More significantly, we believe that this new sale  to
the  Cayman  Islands  will give Lynchval a strategic advantage in carving out similar new sales in  other  Caribbean
Island  nations.  Additionally, we signed up several new Statements of Work (SOW), yielding significant new revenues
for  our emerging Entry Point Programming (EPP) services.  We also launched a dedicated plan services unit under the
Lynchval Global Services' banner and have successfully increased revenue through selling additional Defined  Benefit
Plan services.

In  summary,  in  the  fiscal  year 2011-2012, we have achieved 20 new sales through direct  sales  or  through  new
Statements  of Work (SOW).  Moreover, we have a current prospect inventory of over 18 new potential sales  where  we
are at various stages of completing the sales process.

Operational Restructure
At  Arrowpoint,  we permeate a culture of high performance and high growth.  A significant portion of  our  revenues
come  from  consulting  services which are primarily delivered through our talented staff.  Therefore,  a  stringent
focus  on  talent  management,  resource planning and talent advocacy is critical to the  success  of  our  business
financial results.  Striking the balance between an ideal staff to revenue ratio is critical.  We have been strongly
working  on right-sizing our staff over the past twelve months.  The results are clear.  We had a 4.6% reduction  in
staff on a year over year comparison.

In  conclusion, the last fiscal year has been exceptionally busy but gratifying.  We have successfully turned around
the  company, re-structured personnel, revamped our products and created new products and services that are exciting
to  our  clients and prospects.  Most importantly, we have delivered a financial turnaround for our company  and  we
look to the future with confidence.


CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2012

                                                                                            2012             2011
                                                                                        USD '000         USD '000
                                                                                                                 
INCOME                                                                                    14,250           13,486
                                                                                                                 
Other income                                                                                  34              154
Administrative expenses excluding depreciation and amortisation                          (12,939)         (13,577)
                                                                                      ------------   --------------
                                                                                              --
Earnings before interest, tax, depreciation and amortisation                                1,345              63
                                                                                      ------------   --------------
                                                                                              --
                                                                                                                 
                                                                                                                 
Depreciation                                                                                (65)             (82)
Amortisation                                                                               (784)            (845)
                                                                                    ------------   --------------
                                                                                              --
OPERATING PROFIT/(LOSS)                                                                      496            (864)
                                                                                                                 
Interest payable and similar charges                                                       (454)            (482)
                                                                                      ------------   --------------
                                                                                              --
PROFIT/(LOSS) BEFORE TAX                                                                      42          (1,346)
                                                                                                                 
Tax on profit/(loss) on ordinary activities                                                 (20)             (23)
                                                                                      ------------   --------------
                                                                                              --
PROFIT/(LOSS) ON ORDINARY ACTIVITIES AFTER TAX                                                22          (1,369)
                                                                                           =======          =======
                                                                                                                 
Earnings/(loss) per ordinary share (USD )                                                                        
Basic                                                                                  USD 0.001       USD (0.01)
Diluted                                                                                USD 0.001       USD (0.01)
                                                                                                                 

All amounts relate to continuing operations.




COMPANY PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2012


                                                                                            2012             2011
                                                                                        USD '000         USD '000
                                                                                                                 
Administrative expenses                                                                    (146)            (269)
                                                                                     -----------      -----------
OPERATING LOSS                                                                             (146)            (269)
                                                                                                                 
Interest payable and similar charges                                                       (157)            (163)
                                                                                     -----------      -----------
LOSS BEFORE TAX                                                                            (303)            (432)
                                                                                                                 
Tax on loss on ordinary activities                                                             -                -
                                                                                     -----------      -----------
LOSS ON ORDINARYACTIVITIES AFTER TAX                                                       (303)            (432)
                                                                                           =====           ======
                                                                                                                 

All amounts relate to continuing operations.



CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 31 MARCH 2012


                                                                                            2012             2011
                                                                                        USD '000         USD '000
                                                                                                                 
Profit/(loss) for the financial year                                                          22          (1,369)
Foreign exchange difference on brought forward reserves                                    (310)             (52)
                                                                                     -----------    -------------
Total recognised gains and losses relating to the year                                     (288)          (1,421)
                                                                                          ======           ======
                                                                                                                 



COMPANY STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 31 MARCH 2012


                                                                                            2012             2011
                                                                                        USD '000         USD '000
                                                                                                                 
Loss for the financial year                                                                (303)            (432)
                                                                                     -----------    -------------
Total recognised gains and losses relating to the year                                     (303)            (432)
                                                                                           =====            =====


CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2012


                                                                                             2012            2011
                                                                                         USD '000        USD '000
Fixed assets                                                                                                     
Intangible assets                                                                          16,661           17,445
Tangible assets                                                                               254              310
                                                                                    -------------    -------------
                                                                                               --
                                                                                           16,915           17,755
                                                                                    -------------    -------------
                                                                                               --
Current assets                                                                                                    
Debtors                                                                                     1,961            1,953
Cash at bank and in hand                                                                      470              418
                                                                                    -------------    -------------
                                                                                            2,431            2,371
                                                                                                                  
Creditors: amounts falling due within one year                                             (5,355)          (1,734)
                                                                                    -------------    -------------
Net current (liabilities)/assets                                                          (2,924)              637
                                                                                    -------------    -------------
                                                                                                                 
Creditors: amounts falling due after more than one year                                   (7,463)         (11,576)
                                                                                    -------------    -------------
                                                                                                                  
NET ASSETS                                                                                 6,528            6,816
                                                                                           ======          ======
                                                                                                                 
Called up share capital                                                                    2,947            2,947
Share premium                                                                              5,242            5,242
Merger reserve                                                                             (275)            (275)
Profit and loss reserve                                                                  (1,386)          (1,098)
                                                                                    -------------    -------------
EQUITY AND RESERVES                                                                        6,528            6,816
                                                                                          =======          ======
                                                                                                                 



COMPANY BALANCE SHEET
AS AT 31 MARCH 2012


                                                                                           2012              2011
                                                                                       USD '000          USD '000
Fixed assets                                                                                                     
Investments                                                                              12,250            12,560
                                                                                    -----------    --------------
                                                                                            ---
Current assets                                                                                                   
Debtors                                                                                      16                21
Cash at bank and in hand                                                                      1                 1
                                                                                    -----------    -------------
                                                                                            ---                -
                                                                                             17                22
                                                                                                                 
Creditors: amounts falling due within one year                                            (804)             (216)
                                                                                    -----------    --------------
                                                                                            ---
Net current liabilities                                                                   (787)            (194)
                                                                                    -----------    --------------
                                                                                            ---
                                                                                                                 
Creditors: amounts falling due after more than one year                                 (4,355)           (4,955)
                                                                                    -----------    --------------
                                                                                            ---
                                                                                                                 
NET ASSETS                                                                                7,108             7,411
                                                                                        =======            ======
                                                                                                                 
Called up share capital                                                                   2,947             2,947
Share premium                                                                             5,242             5,242
Profit and loss reserve                                                                 (1,081)             (778)
                                                                                    -----------    --------------
                                                                                            ---
EQUITY AND RESERVES                                                                       7,108            7,411
                                                                                        =======           =======
                                                                                                                 



Approved and authorised on behalf of the Board of Directors on 13 August 2012.

Santanu Nandy
Director

The statement and figures above are extracted from the Company's full audited accounts. The complete accounts can be
found on the PLUS Stock Exchange plc website under the Report and Accounts section of Arrowpoint Technologies Plc.

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

  • Arrowpoint Technologies Plc