14th Jun 2006 07:01
Celsis International PLC14 June 2006 CELSIS INTERNATIONAL PLC CELSIS ANNOUNCES 15.4% INCREASE IN PROFITS AND TRANSFORMING ACQUISITION 14 June 2006: Celsis International plc, the rapid detection and analyticalservices company, today announces its preliminary results for the year ended 31March 2006 and the proposed acquisition of In Vitro Technologies Inc. Announced today: Acquisition of In Vitro Technologies Inc. (see separate pressrelease) • Acquisition of In Vitro Technologies Inc., a leader in the market for in vitro diagnostic products and services for drug discovery and development • Initial consideration of $30 million in cash, plus earn-out potential payment of $0-5 million • Acquisition expands Celsis' product and services range and provides strong cross-selling opportunities into the pharmaceutical and biopharmaceutical industries • Transaction expected to be earnings enhancing in the first full year of ownership* • Financed from existing cash resources and new Group borrowings Financial Highlights • Turnover up 8.9% to $33.1 million (2005: $30.4 million) • Profit before tax up 15.4% to $7.2 million (2005: $6.2 million) • Operating margins increased to 19.9% (2005: 19.8%) • Pre-tax earnings per share up 16.7% to 32.53c (2005: 27.87c) • Cash position improved to $21.2 million (2005: $17.4 million) Divisional Highlights • Product Group revenues up 7.0% to $16.9 million (2005: $15.8 million) - Strong performance driven by 17% growth in North America - R&D investment continues to develop next generation rapid detection systems • Laboratory Group revenues up 11.6% to $16.3 million after flat H1 (2005: $14.6 million) - New Jersey chemical sciences division revenue up 40% Jay LeCoque, Chief Executive Officer of Celsis, commented: "Celsis has delivered another year of double digit organic profit growth. OurProduct Group continues to develop its business across our major market segmentsand we look forward to new nucleic acid based detection systems that arecurrently being developed by our R&D team. Our Laboratory Group had anextremely successful second half of strong orders from our growingpharmaceutical and biopharmaceutical customer base. "With the acquisition announced today of In Vitro Technologies Inc., Celsis willhave significantly transformed its business through improved product andservices portfolio and creating clear cross-selling opportunities which weexpect to deliver material growth in the coming years. Celsis is wellpositioned to continue its track record of strong growth both organically and byacquisition." Enquiries:Celsis International plc Tel: 01638 600 151Jay LeCoque, Chief Executive Officer Tel: 020 7831 3113Christian Madrolle, Finance Director on 14 June 2006Financial Dynamics Tel: 020 7831 3113 David Yates / Ben Atwell A presentation for analysts will be held at Financial Dynamics at 9.30am today.Please call Gemma Cross Brown at Financial Dynamics on 0207 269 7125 for furtherdetails. * This statement should not be interpreted to mean that the Group's futureearnings per share will necessarily be greater than its historical earnings pershare. Celsis International plc Celsis International plc is a rapid detection and analytical services company. Using proprietary technology, the Product Group is the world leader in theprovision of diagnostic systems for the rapid detection of microbialcontamination. It works in close collaboration with many of the world's leadingpharmaceutical, personal care and beverage companies, ensuring the safety andquality of products bound for consumers. The Laboratory Group providesoutsourced analytical testing services to pharmaceutical and biopharmaceuticalcompanies to ensure the stability and chemical composition of their products. In addition to ensuring product quality and safety for consumers, both divisionshave the capacity to deliver substantial cost savings to Celsis' customers. Byreducing the time it takes to test and release raw materials and finished goodsto the market place, Celsis' products facilitate increased manufacturingproductivity and improved supply chain management. Further information can be found on its website at www.celsis.com. Chief Executive's Review Introduction The technology and services supplied by Celsis provide the answer to two of themost important issues confronting pharmaceutical, personal care and beveragemanufacturers - the need to ensure product safety (to protect consumers andavoid embarrassing and expensive product recalls) and the need to maximise theefficiency of the manufacturing supply chain. By detecting microbial contamination (the presence of bacteria or other organiccontaminants in manufactured products) much quicker than traditionaltechnologies, Celsis ensures product safety whilst saving its customerssubstantial time in the manufacturing cycle. Celsis' rapid detection systemscan, for example, save over five days of product manufacturing time comparedwith conventional microbial detection techniques, such as the agar plate. Thistime saving leads to less working capital being tied up in inventory andmaterially increases the efficiency and productivity of facilities, therebydelivering a measurable financial benefit to Celsis' customers. Additionally, as manufacturing processes become more global and complex,products are becoming more prone to contamination. Contaminated products thatreach the consumer not only create negative headlines for companies, but createlasting reputational damage with significant financial implications.Contaminated products can lead to large scale stock write-offs and productionshortages if not managed properly. Whilst most manufacturing processes have undergone modernisation, automation andstreamlining, rapid microbial testing techniques have not yet been widelyadopted. Despite the customer safety and financial benefits that can bedelivered by Celsis' detection systems, the overwhelming majority of thepotential market still uses slower, traditional agar-based detection techniques.This low adoption rate creates a highly significant opportunity for Celsis tocontinue its organic growth through the conversion of customers to Celsis' rapiddetection systems. Celsis' laboratory services business is also focused on product quality safetyfor consumers and saving its customer's time and money. It provides outsourcedanalytical testing services to pharmaceutical and biopharmaceutical companies toensure the stability and chemical composition of their products. Analyticalresults are delivered to customers in just 10 days compared to an industrystandard of 15 days. Like the Product Group, therefore, the Laboratory Group'sservices save customers significant time and money through increasedefficiencies in manufacturing and improved supply chain management. For the year ended 31 March 2006, we are pleased to announce strong revenue andprofit growth across the Group. Revenue increased 8.9% to $33.1 million (2005:$30.4 million) and profit before tax increased 15.4% to $7.2 million (2005: $6.2million). We have continued to invest in our growing businesses as well asannouncing today the acquisition of an exciting business which provides newlydeveloped in vitro diagnostic products and services for the drug discovery anddevelopment processes within the pharmaceutical and biopharmaceutical markets.We see healthy, sustainable business growth from the newly combined entity andwe remain confident in the long-term prospects for the Company. Acquisition of In Vitro Technologies Inc. (IVT) Celsis' two existing divisions have strong relationships with the world'sleading pharmaceutical and biopharmaceutical companies and the management teamhas been seeking acquisitions which are able to leverage these relationships andbroaden the services supplied by Celsis to its customers. At the core of allaspects of both IVT and Celsis is the ability to save customers both time andmoney. The acquisition announced today (see separate press release) is wholly in linewith this strategy. IVT is a market leader for providing products and contractservices in the growing in vitro ADME-tox market which is an acronym forAbsorption, Distribution, Metabolism, and Excretion, and describes theeffectiveness of a pharmaceutical compound within an organism. Approximately50% of drug candidates fail in clinical trials due to unanticipatedpharmacokinetic and toxicology problems. IVT's products and services enablepharmaceutical and biotechnology customers to make better decisions regardingselection of candidate compounds at every stage of preclinical drug development.The increasing acceptance of IVT's in vitro systems in the marketplace hasresulted in the selection of better candidate molecules for clinical trials andsignificant saving of time and money by its customers. IVT has a 15 year track record of providing in vitro diagnostic products andlaboratory services to the pharmaceutical and biotechnology industries.Currently 80% of IVT's business is product based with the remaining 20% inlaboratory services. IVT's product and laboratory services business model thusprovides an excellent fit with the strategy employed today by the Product andLaboratory Groups and offers immediate cross-selling opportunities to a similarcustomer base. The acquisition cost is $30 million subject to certain adjustmentspost-completion which is being financed from the Company's existing cashresources and from new borrowings. In addition, an earn-out payment potentialof $0-5 million will be payable subject to the performance of IVT for the yearended 31 December 2006. Mergers and acquisitions will continue to play an important role in Celsis'strategy as we seek to leverage our customer relationships and distributioninfrastructure and provide customers with a broader range of products andservices. Summary of results During the second half of the year, both the Product and Laboratory Groupsperformed strongly. The Product Group benefited particularly from a substantialincrease in North American revenues and the Laboratory Group delivered an 11%increase in revenues after a flat first half, driven by a strong performancefrom our New Jersey facility. Product Group Celsis Product Group is the global leader in the provision of rapid detectionsystems allowing fast quality control of products bound for consumers. Giventhe relatively low adoption of rapid microbial detection systems and the clearbenefits to be had from deploying faster systems, this business is seeing anaccelerating rate of adoption of its testing systems and we remain confidentthat we can continue to convert more corporate customers to our advancedtechnology. Revenues increased 7% to $16.9 million (2005: $15.8 million), driven by a 17%increase in sales in North America, where there is greater focus on maximisingthe efficiency of the supply chain. Sales of reagents and consumables havecontinued to grow as a percentage of sales, indicating that our recurringrevenue business model is robust. In the last financial year, these salesamounted to 81.2%, up from 80.8% in the corresponding period in 2005. We have seen a significant expansion in the biopharmaceutical customer base forour RapiScreenTM Biologics offering and we added Organon as a customer duringthe second half of the year. The US Food and Drug Administration (FDA) has alsoapproved the use of the Celsis RapiScreenTM Health testing system to confirm theabsence of microbial contamination in Hoffmann-La Roche Inc's Xeloda tablets.This builds on previous approvals granted by regulatory agencies around theworld for use of the Celsis rapid testing system for microbiologicalpharmaceutical product release. At the same time, we continue to invest in R&D to ensure that Celsis remains atthe forefront of this industry. During the year, we moved into new areas ofrapid detection utilising innovative approaches such as microarray and nucleicacid technologies via our licensing agreement with BioVentures Inc. Thislicensing deal covers BioVentures' high density microarray technology whichoffers revolutionary improvements to the consistency, reproducibility and costeffectiveness of microarrays. Additionally, the BioVenture microarray offersimproved design flexibility allowing for increased sensitivity and ease ofinterpretation. The joint development plan will also encompass nucleic acidtesting and other rapid detection technologies. Laboratory Group Revenues from the Laboratory Group, which represents 49.1% of total Grouprevenues, grew by 11.6% to $16.3 million (2005: $14.6 million) after a flatfirst half. This was exceptional performance driven by strong growth within theNew Jersey division where revenues from our chemical sciences business grew by40%. New Jersey has emerged in recent years as the clear choice of location inthe US for the pharmaceutical and biotechnology industry and we have benefitedsignificantly from our presence in this market and our ability to provide localservices to these customers. In response to this increase in demand, we haveinvested $1.1 million of capital to upgrade and expand our laboratory facilitiesin New Jersey. Our biological sciences business also saw an increase in revenues and thesecuring of several major product screening agreements with Englehard, Inc. andSharp Corporation. Our highly focused Business Development team continues tosecure major customer contracts. Over the past year, we have secured a numberof valuable new long-term product release contracts with URL MutualPharmaceuticals, Watson Laboratories, Inc. and the Procter & Gamble Company. Inaddition, we have been able to re-secure a number of existing businessagreements with our largest chemical and biological customers. Financial Review The financial results presented below are prepared in accordance with theGroup's accounting policies under International Financial Reporting Standards(IFRS). The comparative numbers in the financial statements for the period ended 31March 2005 have been restated in accordance with IFRS. As in the previous year, our Group's foreign exchange policy has continued tomitigate currency fluctuations resulting from the relative strength of the USdollar versus the Euro during most of the financial year under review. Onaverage the US dollar strengthened 3.8% against the Euro from 2004-2005 to2005-2006. Although the currency movement has been more moderate than during2004-2005, the adverse currency impact on our Euro-denominated revenue has beenfully absorbed by the positive currency impact on manufacturing and distributionEuro-denominated costs when retranslated into US dollars. The US dollar continues to be the functional currency of reference to providethe best visibility on the Group's overall performance, given the largeproportion of Celsis' revenues traded in US dollar. Results Turnover and profit reached record levels this year. Total revenues for theyear ended 31 March 2006 were up 8.9% at $33.1 million against $30.4 million theprevious year, with both the Product and Laboratory Groups contributing to theturnover growth. Group profit before taxation was up 15.4% to $7.2 million andoperating margins reached 19.9%, compared with a profit before taxation of $6.2million and operating margins of 19.8% in the previous year. Earnings and Taxation The Group's profit after tax was $4.6 million this year versus a profit aftertax of $8.0 million the previous year. This difference is partly due to thechange in the Group's tax position, which benefited from a tax credit last yearof $1.76 million versus a tax charge this year of $2.6 million as all deferredtax assets had been recognised at 31 March 2005, as explained below. The Product Group and the Laboratory Group both contributed to the totalearnings growth. Celsis has accumulated significant tax losses carried forward both in the UK andUS. We started the year 2005-2006 with a total of $6.0 million of recognised,but still unutilised, deferred tax assets related to tax losses carried forward.This corresponds to all amounts deductible from future tax liabilities. Wehave allocated $2.2 million from our $2.6 million tax charge this year. Thisleaves at 31 March 2006 a balance of deferred tax assets to be utilised of $3.8million. During the year 2005-2006, a dividend of $1.15 million has been paid (5.13 centsper share) against a dividend of $0.97 million (4.30 cents per share) theprevious year. As a consequence of the IVT acquisition and the Group's enhanced growth strategygoing forward, the directors have concluded that the primary focus of cashresources should be on maximising growth opportunities and optimising theGroup's leverage ratios and, therefore, have decided to suspend payment of adividend this year. Our dividend policy will be reviewed periodically accordingto the development of the Group's activities. As the earnings per share comparison is impacted by the taxation charge thisyear compared to a deferred tax asset credited last year, we consider thatcomparing pre-tax earnings per share is a better indicator of the Group'syear-on-year performance. Pre-tax earnings per share are up to 32.53c compared to 27.87c the previousyear, an increase of 16.7% and pre-tax diluted earnings per share are up to32.20c compared to 27.65c the previous year an increase of 16.4%. Next year we shall compare after-tax earnings per share as our key performanceindicator, thereby allowing the tax situation to be comparative on a year onyear basis. After-tax earnings per share are down to 20.78c compared to 35.71c the previousyear, a decrease of 41.8%, and after-tax diluted earnings per share are down to20.57c compared to 35.42c the previous year, a decrease of 41.9%. It should be noted that all earnings per share calculations are now based on thenew number of shares resulting from the share consolidation plan on the basis ofone new 5p ordinary share in the Company for each five ordinary shares of 1peach held in the Company at close of business on 26 August 2005. Gross Margin Gross margins for the year under review have remained stable at 65.9% against66.0% last year. Operating Expenses Our sales, marketing and administrative expenses increased 7.6% from $13.82million last year to $14.86 million this year. Sales and marketing expensesrepresented 33.1% of revenues, against 33.7% the previous year in line with theturnover growth. Administrative expenses remained flat at 11.8% of revenuesversus 11.8% the previous year. Our research & development efforts have focused on the development of the newmicroarray and nucleic acid technology. Our overall R&D expenditure, afteradding back the development costs capitalised under IAS38 ($0.9 millioncapitalised against $0.5 million in 2004-2005), has increased from $0.73 millionthe previous year to $1.2 million this year. Cash Flow Cash generation has continued to be strong across the Group with $9.0 million ofoperating cash flow for this year, up from $7.6 million the previous year. Capital expenditure on tangible assets for the year to 31 March 2006 was $1.6million, compared with the previous year's figure of $1.8 million, reflectingthe investment programme including new instrumentation, continued laboratoryspace extension in New Jersey and the new R&D laboratory in Chicago. Capital expenditure on intangible assets for the year to 31 March 2006 was $1.0million against $0.8 million the previous year. This increase includes thelicensing fees and the joint development agreement costs of the IBI microarraytechnology. We have invested significantly in the future of the Group this year to ensurethat future growth opportunities will be adequately captured with an efficientinfrastructure and new technology. The total cash inflow before financing of$6.3 million against $4.7 million last year. The total cash position including cash and cash equivalents has continued toimprove significantly from $17.4 million last year to $21.2 million, generatinga total net cash inflow of $3.8 million after the financing of a $2.6 millioncapital expenditure, and the movement of $0.8 million of Treasury Shares to meetfuture stock option exercise requirements. Group cash balances are invested in short-term money-market instrumentsexclusively in the UK. With a substantial proportion of the Group's revenue andprofits earned in US dollars, the short term money market instruments are mostlyin this currency. Interest receivable increased in line with the increase of short term investmentinterest rates and the growing Group cash balances. Balance Sheet The inventory value has decreased slightly by 1% from $2.84 million last year to$2.81 million on a growing turnover. Trade receivables increased to $6.2 million against $5.1 million the previousyear reflecting the increased level of sales, and a particularly strong lastquarter this year in terms of revenue from the Laboratory Group. The New JerseyChemistry Lab achieved record levels of activity in February and March 2006. Other receivables decreased from $1.4 million last year to $1.2 million thisyear. Total receivables increased from $6.6 million last year to $7.4 million thisyear. Our total recognised but unutilised deferred and current tax assetsdecreased from $6.0 million to $3.8 million. Short term payables increased to $5.5 million against $4.2 million last year andlong term liabilities have increased from $0.2 million last year to $0.5 millionthis year. Total payables have increased from $4.4 million last year to $6.0million this year. This increase in payables is partly due to the increase intaxation accruals in countries where the Group has no deferred tax asset. After taking into account the movement of $0.8 million Treasury Shares the netshareholders' funds have increased 7.2% from $34.8 million to $37.3 million, theprevious year. The Group's balance sheet continued to strengthen during the year under reviewand had at year end no long term debt and displayed another year of solidfree-cash generation. The Group expects that it will be able to finance itsoperating costs, together with normal levels of capital expenditure and othercommitments including tax, from its existing resources. As a result of theacquisition of In Vitro Technologies Inc. announced today, the Group will haveadditional demands for finance and has secured other sources of liquidity fromBarclays Bank. The Directors believe that the Group's balance sheet and cashgeneration abilities leave it well placed to meet its new borrowing obligationsand fund future investments. Treasury The Group maintains treasury control systems and procedures to monitor foreignexchange, interest rates, liquidity, credit and other financial risks. Liquidassets surplus to the immediate operating requirements of the Group are investedand managed centrally. Exchange rates Euro and Sterling-denominated transaction exposure arising from normal tradeflows are not hedged against US dollar equivalents. The Group's policy is tominimise the exposure of Euro and Sterling-operating subsidiaries to transactionrisk by matching local currency income with local currency costs. For thispurpose inter-company trading transactions are matched centrally andinter-company payment terms are managed to reduce risk. Financial position Celsis' financial strategy is to maintain a robust financial position throughthe rigorous control of costs and strong financial management of all aspects ofits business. This approach enables Celsis to generate sufficient cash to makethe appropriate investments in its business as well as to review externalopportunities if they arise. Outlook The past year has seen strong performances from both divisions and we believethat the Company is well placed to deliver continuing strong growth,particularly in light of the acquisition announced today. We anticipate continuing good organic growth from existing and next generationdetection systems in the Product Group and we expect the Laboratory Group tobenefit from increased pharmaceutical outsource spending and from the expansionof our facilities in New Jersey. We have detailed plans in place for the integration of In Vitro Technologies,Inc and expect its business to contribute substantially to our future growth andfor it to enable us to deliver a broader range of value added services to ourcustomers. We remain interested in pursuing additional acquisitions that mayhave beneficial synergies to our growing business. Overall, we believe that weare well placed to deliver continuing strong growth for shareholders in thecoming years. Jay LeCoque, Chief Executive Officer Jack Rowell, Non-Executive Chairman 14 June 2006 Consolidated Income Statementfor the year ended 31 March 2006 Total Total _____ _____ Year Year to 31 March to 31 March 2006 2005 (unaudited) (unaudited) $'000 $'000 _____ _____Continuing operationsRevenue 33,104 30,397Cost of Sales (11,305) (10,328) _____ _____Gross profit 21,799 20,069 OverheadsSales & marketing expenses (10,972) (10,230)Administrative expenses (3,892) (3,586)Research & development expenditure (335) (229) _____ _____Total operating expenses (15,199) (14,045) Operating profit 6,600 6,024 Interest receivable & similar income 628 244Interest payable & similar charges (24) (24) _____ _____Profit before taxation 7,204 6,244 Taxation (2,601) 1,755 _____ _____Profit for the year 4,603 7,999 _____ _____ Dividends Final 2005 paid at 5.13 cents per share 1,150Final 2004 paid at 4.30 cents per share 966 Earnings per Ordinary Share (restated) (restated) Basic earnings per Ordinary Share 20.78c 35.71cDiluted earnings per Ordinary Share 20.57c 35.42c Pre-tax earnings per Ordinary ShareBasic earnings per Ordinary Share 32.53c 27.68cDiluted earnings per Ordinary Share 32.20c 27.46c Statement of Recognised Income and Expense (unaudited) (unaudited) $'000 $'000 _____ _____Profit for the financial year 4,603 7,999Net exchange adjustment offset in the reserve net of tax (377) 180 _____ _____Total recognised income for the year 4,226 8,179 _____ _____ Consolidated Balance Sheetat 31 March 2006 At 31 March At 31 March 2006 2005 (unaudited) (unaudited) $'000 $'000 _____ _____AssetsNon-current assetsGoodwill 1,143 1,143Intangible assets 2,214 1,500Property, plant and equipment 4,652 3,838Other receivables 23 81Deferred tax asset 2,050 3,949 _____ _____ 10,082 10,511Current assetsInventory 2,813 2,844Trade and other receivables 7,411 6,556Current tax asset 1,792 1,907Cash and cash equivalents 21,174 17,363 _____ _____ 33,190 28,670LiabilitiesCurrent liabilitiesTrade and other payables (5,481) (4,229) _____ _____Net current assets 27,709 24,441 Non-current liabilitiesOther non-current liabilities (501) (163)Provisions - (10) _____ _____Net assets 37,290 34,779 _____ _____Shareholders' equityCalled up share capital 1,611 1,611Share premium account 13,120 13,120Treasury shares (1,224) (420)Currency translation reserve (197) 180Retained earnings 22,498 18,806Reserve arising on consolidation 1,482 1,482 _____ _____Total equity 37,290 34,779 Cashflow Statementfor the year ended 31 March 2006 Year Year to 31 March to 31 March 2006 2005 (unaudited) (unaudited) $'000 $'000 _____ _____Cash flows from operating activities 8,969 7,592Tax paid (647) (592)Interest paid (24) (24)Interest received 560 244 _____ _____Net cash from operating activities 8,858 7,220 Cash flows from investing activitiesPurchase of property, plant and equipment (1,595) (1,805)Expenditure on intangible fixed assets (1,000) (763) _____ _____Net cash used in investing activities (2,595) (2,568) Cash flows from financing activitiesEquity dividends paid (1,150) (967)Purchase of treasury shares (804) (420)Repayment of principle under finance leases (115) (135) _____ _____Net cash used in financial activities (2,069) (1,522) Effects of exchange rate changes (383) 26 _____ _____Net increase in cash and cash equivalents in the year 3,811 3,156 Cash and cash equivalents in the year 17,363 14,207Cash and cash equivalents in the year 21,174 17,363 Reconciliation of operation profit to cash generated from operations (unaudited) (unaudited) _____ _____Profit before taxation 7,204 6,244Depreciation of tangible fixed assets 1,209 1,106Amortisation of intangible assets 349 363Loss on disposal of tangible fixed assets 10 -Share option compensation 239 128Net finance income (604) (220) _____ _____Operating cash flow before changes in working capital and provisions 8,407 7,621(Increase) in receivables (729) (548)(Increase)/decrease in inventory 31 (78)Increase in payables 1,270 638(Decrease) in provisions (10) (41) _____ _____Cash flows from continuing operating activities 8,969 7,592 Notes to the Financial Statementsfor the year ended 31 March 2006 1. Basis of preparation The financial information for the year ended 31 March 2006 is unaudited and hasbeen prepared in accordance with the Group's accounting policies, based on IFRS,as adopted by the European Union. The financial information for the year ended31 March 2005 is also unaudited and has been restated under IFRS. Restatedfinancial information for the year ended 31 March 2005 was published in November2005. This summary of results does not constitute the full financial statements withinthe meaning of s240 of the Companies Act 1985. The 2005 financial statementsprepared under UK Generally Accepted Accounting Practice (GAAP), have beenreported on by the Company's auditors and have been delivered to the Register ofCompanies. The audit report was unqualified and did not contain a statementunder s237(2) or s237(3) of the Companies Act 1985. 2. Basic & Diluted Profit per Ordinary Share Year Year to 31 March to 31 March 2006 2005 (unaudited) (unaudited) $'000 $'000 _____ _____ Profit on ordinary activities after taxation 4,603 7,999Basic weighted average number of ordinary shares in issue 22,148,577 22,400,792Diluted weighted average number of ordinary shares in issue 22,374,644 22,580,817 _____ _____Pre tax earnings per ordinary shareBasic earnings per ordinary share 32.53c 27.87cDiluted earnings per ordinary share 32.20c 27.65c 3. Dividends Year Year to 31 March to 31 March 2006 2005 (unaudited) (unaudited) $'000 $'000 _____ _____Final 2005 dividends paid: 5.13c (2004: 4.30c) per ordinary share 1,150 966 4. Taxation Year Year to 31 March to 31 March 2006 2005 (unaudited) (unaudited) $'000 $'000 _____ _____United Kingdom taxation at 30% 834 826Foreign taxation (US-Europe) charge/(credit) 1,767 (2,581) _____ _____ 2,601 (1,755) _____ _____ 5. Consolidated Statement of Changes in Shareholders' Equityat 31 March 2006 Share capital Share Treasury Currency (unaudited) premium shares translation $'000 account (unaudited) reserve (unaudited) $'000 (unaudited) $'000 $'000 _____ _____ _____ _____ Balance at 1 April 2004 1,611 23,120 - - Movement in own shares (420)Capital reorganisation (10,000)Profit for the year ended 31 March 2005DividendsCurrency translation differences group 180Share option compensation charge Balance at 31 March 2005 1,611 13,120 (420) 180and at 1 April 2005 Movement in own shares (804)Profit for the year ended 31 March 2006DividendsCurrency translation differences group (377)Share option compensation charge _____ _____ _____ _____Balance at 31 March 2006 1,611 13,120 (1,224) (197) Consolidated Statement of Changes in Shareholders' Equityat 31 March 2006 (continued from table above) Retained earnings Reserve arising on Total (unaudited) consolidation (unaudited) $'000 (unaudited) $'000 $'000 _____ _____ _____ Balance at 1 April 2004 1,665 1,482 27,878 Movement in own shares (420)Capital reorganisation 10,000 -Profit for the year ended 31 March 2005 7,999 7,999Dividends (966) (966)Currency translation differences group 180Share option compensation charge 108 108 Balance at 31 March 2005 and at 1 April 2005 18,806 1,482 34,779 Movement in own shares (804)Profit for the year ended 31 March 2006 4,603 4,603Dividends (1,150) (1,150)Currency translation differences group (377)Share option compensation charge 239 239 _____ _____ _____Balance at 31 March 2006 22,498 1,482 37,290 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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