28th Mar 2006 07:00
Lo-Q PLC28 March 2006 LO-Q PLC Preliminary Results for the year ended 31 December 2005 Lo-Q plc ('Lo-Q' or the 'Company'), the virtual queuing design and operationCompany, announces its preliminary audited results for the year ended 31December 2005. Enquiries: Jeff McManus (Chairman), Lo-Q plc 01491 577210 John Prior 0207 448 4400 CHAIRMAN'S STATEMENT The Company has made positive progress during the fifteen months to 31 December2005. I would like to draw to your attention that the comparative periods in thisstatement are for fifteen months against twelve months. This fifteen monthperiod contains three quarters of relatively little income, when the parks arepredominantly closed, and two quarters when income is earned. Bearing this in mind, the Company has performed impressively well in making anoperating profit of £100,000 for the twelve months to September 2005, whilstreporting a small loss of £60,000, for the fifteen-month period to December2005, which is smaller than originally anticipated. The comparison of incomebetween the full accounting periods shows that the Company has almost doubledits earnings. The contributory factors to this increased performance, as highlighted in myinterim statement for the 12 months to September 2005, are: • increased Q-bot rental prices and demand; • tighter management control; and • having Steve Drake, our Operations Director, in the U.S.A. for large periods of the operating season. With the appointment of new management in senior positions in our customer'sorganisation, Six Flags Corporation, we hope to be working more closely atcorporate level, with our aspiration being that this will bring furtherincreases in rental volumes, prices and demand in the season which is juststarting, and more parks coming on stream in the following years. We recently attended a major industry trade show and although we saw signs ofrenewed confidence in the theme park industry, there is currently a lot of talkand activity relating to mergers and acquisitions within the sector, which tendsto make senior theme park management cautious about future plans. However wefeel that once this settles, our prospects of growing our park base in the USAwill be enhanced. Alongside this we have appointed, on a trial basis, a companywith established sales resources for marketing in Europe, which is focussing onidentifying potential installations for operation in the 2007 season. Our Research and Development Team are current working on designing an upgradedsystem, which utilises the significant advances in microelectronics andassociated software that have been made in the last couple of years, allowing usto make substantial system cost reductions whilst also halving the installationtime. This enhanced architecture will also enable us to offer a system capableof handling all the guests in a park in the not-too-distant future. Again I would like to thank the Company's staff for their continued hard workand helping the Company achieve these better results. GROUP PROFIT AND LOSS ACCOUNTFIFTEEN MONTHS TO 31 DECEMBER 2005 15 months to 12 months to 31 December 30 September 2005 2004 £ £GROUP TURNOVER 1,596,482 845,535Cost of sales 273,269 149,437GROSS PROFIT 1,323,213 696,098Administrative expenses 1,460,747 1,229,705Other operating income (75,671) (25,483)OPERATING LOSS (61,863) (508,124)Profit/(loss) on disposal of fixed assets - 159,849 (61,863) (348,275)Interest receivable 2,139 351Interest payable (440) (458)LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (60,164) (348,382)Tax on loss on ordinary activities (29,565) (37,328)LOSS FOR THE FINANCIAL PERIOD (30,599) (311,054)Earnings per share (pence) (0.21) (2.17) GROUP BALANCE SHEETAT 31 DECEMBER 2005 31 December 30 September 2005 2004 £ £ £ £FIXED ASSETSTangible assets 18,304 51,157CURRENT ASSETSStocks 208,124 198,448Debtors 76,315 433,449Cash at bank and in hand 637,429 259,297 921,868 891,194 CREDITORS: Amounts falling due withinone year 131,568 110,421 NET CURRENT ASSETS 790,300 780,773TOTAL ASSETS LESS CURRENT LIABILITIES 808,604 831,930 CAPITAL AND RESERVESCalled-up equity share capital 143,478 143,478Share premium account 4,971,617 4,971,617Other reserves 12,473 12,473Profit and loss account (4,318,964) (4,295,638)SHAREHOLDERS'FUNDS 808,604 831,930 GROUP CASH FLOW STATEMENTFIFTEEN MONTHS TO 31 DECEMBER 2005 15 months to 12 months to 31 December 30 September 2005 2004 £ £ £ £NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES 331,868 (357,138)RETURNS ON INVESTMENTS AND SERVICING OF FINANCEInterest received 2,139 351Interest paid (440) (458)NET CASH INFLOW/(OUTFLOW) FROM RETURNS ON 1,699 (107)INVESTMENTS AND SERVICING OF FINANCETAXATION 41,213 124,730CAPITAL EXPENDITUREPayments to acquire tangible fixed assets (5,692) (35,204)Receipts from sale of fixed assets 1,771 223,648NET CASH (OUTFLOW)/INFLOW FROM CAPITAL EXPENDITURE (3,921) 188,444INCREASE/( DECREASE) IN CASH 370,859 (44,071) RECONCILIATION OF OPERATING LOSS TO NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES 15 months to 12 months to 31 Dec 2005 30 Sep 2004 £ £Operating loss (61,863) (508,124)Depreciation 38,545 94,014Profit on disposal of fixed assets (1,771) -(Increase)/decrease in stocks (9,676) 21,342Decrease in debtors 345,486 56,329Increase/(decrease) in creditors 21,147 (20,699)Net cash inflow/(outflow) from operating activities 331,868 (357,138) ANALYSIS OF CHANGES IN NET FUNDS At At 1 October Exchange 31 December movement 2004 Cash flows 2005 £ £ £ £Net cash:Cash in hand and at bank 259,297 370,859 7,273 637,429Net funds 259,297 370,859 7,273 637,429 EARNINGS PER SHARE 15 months to 12 months to 31 Dec 2005 30 Sep 2004 £ £ Earnings per ordinary share (0.21) (2.17) Basic loss per ordinary share is calculated by dividing the loss attributable to ordinary shareholders of £30,599(2004 - £311,054) by the weighted average number of shares in issue during the relevant financial period of14,347,837 (2004 - 14,347,837). The loss attributable to ordinary shareholders and the weighted average number of ordinary shares for the purposeof calculating the diluted earnings per ordinary share are identical to those used for basic earnings perordinary share. This is because the exercise of share options would have the effect of reducing the loss perordinary share and is therefore not dilutive under the terms of FRS14. DIVIDENDS The Directors do not propose the payment of a dividend for the period. The Preliminary Announcement was approved by the board of directors on 27 March2006. The full set of accounts will be sent to shareholders in due course andwill be available from the offices of Corporate Synergy Plc, 30 Old BroadStreet, London EC2N 1HT. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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