15th Aug 2008 07:00
Lo-Q plc ("Lo-Q" or the "Company")
Interim Results for the six months ending 30 June 2008
Chairman's Statement
Our trading year normally starts in March, in the south of the United States as the weather warms there earliest. This year we had a new park in this area, in Texas, added to our growing list, so we were focussed on how this park would perform. I am pleased to report that sales were very positive from the start.
The newly installed system in Legoland, Windsor, is also being well received and has been favourably reviewed by the press in newspaper and magazine articles.
Trade in the later spring was a little slow but as the parks overseas and the park at home started renting Q-bots in volume, the pace has quickened.
As in previous years the volume of sales varies from site to site. Some locations appear to be doing really well, when compared with last year, whilst others have been selling at a slower pace. However, collectively, trading has been strong with overall revenue growth of circa 50 per cent when compared with the same six-month period last year. The volume of Q-bots rentals this year has also grown and, coupled with a number of price rises, the overall effect has been that daily sales values have moved ahead during the summer.
As you will see from the interim financial information, the Company is making good progress with a profit of £182,281 compared to a profit of £14,327 for the same period last year. The profit and loss statement, as per the published accounts for 2007, includes the total Q-bot rental income.
The Company's trading results are currently being helped by the strengthening dollar and were this to continue the results for this year would be positively impacted.
At nine of the ten parks where the Lo-Q system is installed, we now have the new VQ 2020 system in operation. Customers' feed back after using the new system is very encouraging, citing the saving of walking as a major step forward. This is achieved through being able to book rides remotely from anywhere within the park. Also, instant information updates of queuing times for each ride is visible on the Q-bot.
We have made good progress with the Text-Q system and the trial in the Drayton Manor theme park, in Tamworth, yielded positive feedback. The guests were delighted with the system through its positive contribution to their park visit. We are looking forward to employing this system in a number of locations next year.
At the beginning of the year we combined my role of Chairman with CEO, and, with Colin Robertson fully taking over sales responsibilities, it allowed Leonard Sim to concentrate on leading the Research and Development team, accelerating product development. Whilst this team is making further enhancements to the VQ 2020 software, the members are also carrying out work on automatic line measurement, producing our first system for operation in water parks and creating software that, through predicting queuing demands, flattens out peak arrivals at the park ride. This is the subject of our latest patent application. A number of other specialist applications are being studied in detail, which, we believe, will result in more patents being filed.
We are continuing to exploit marketing opportunities for our products and will be involved in five Theme Park shows this year, with Leonard scheduled to present a paper on 'queue line management' to the international theme park industry, at the European Autumn show.
We are mindful that the economic climate here and abroad could cause the Company's progress to slow, as could persistent bouts of poor weather, however the Board is very happy with the Company's strong performance so far this year. Once high summer is over, we will report again to the market in late September on how sales have grown during this very busy season.
Jeff McManus,
Chairman and CEO
Contacts:
Jeff McManus, Chairman: 01491 577 201
John Prior, Arbuthnot Securities Limited: 0207 012 2000
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LO-Q PLC |
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Consolidated Interim Income Statement |
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Six months to 30 Jun 2008 |
Six months to 30 Jun 2007 |
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£ |
£ |
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Continuing Operations |
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Revenue |
4,070,048 |
2,713,593 |
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Cost of Sales |
3,125,953 |
2,235,800 |
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__________ |
__________ |
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Gross profit |
944,095 |
477,793 |
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Administrative expenses |
762,256 |
445,361 |
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__________ |
__________ |
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Operating Profit |
181,839 |
32,432 |
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Finance costs |
(1,247) |
(19,100) |
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Finance income |
1,689 |
995 |
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__________ |
__________ |
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Profit before tax |
182,281 |
14,327 |
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Taxation on profit on ordinary activities |
- |
- |
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__________ |
__________ |
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Profit for period |
182,281 |
14,327 |
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__________ |
__________ |
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Earnings per share (pence) |
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Basic |
1.20 |
0.10 |
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Diluted |
1.15 |
0.09 |
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All amounts relate to continuing activities |
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There are no recognised gains or losses other than those within the profit and loss account |
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LO-Q PLC |
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Consolidated Balance Sheet |
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Six months to 30 Jun 2008 |
Six months to 30 Jun 2007 |
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ASSETS |
£ |
£ |
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Non-Current Assets |
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Intangible assets |
557,433 |
158,759 |
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Property, Plant and Equipment |
25,270 |
18,081 |
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__________ |
__________ |
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582,703 |
176,840 |
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Current Assets |
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Inventories |
372,442 |
200,798 |
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Trade and other receivables |
191,870 |
220,418 |
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Tax receivable |
884 |
53,557 |
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Cash and cash equivalents |
575,973 |
237,314 |
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__________ |
__________ |
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1,141,169 |
712,087 |
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__________ |
__________ |
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Current Liabilities |
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Trade and other payable |
288,030 |
355,796 |
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__________ |
__________ |
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Net Current Assets |
853,139 |
356,291 |
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Net Assets |
1,435,842 |
533,131 |
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EQUITY |
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Issued capital and reserves |
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Called up share capital |
153,211 |
147,658 |
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Share premium account |
5,001,063 |
4,982,067 |
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Shares to be issued reserve |
66,250 |
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Other reserves |
65,243 |
20,578 |
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Profit and loss account |
(3,849,925) |
(4,617,172) |
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__________ |
__________ |
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Total Equity |
1,435,842 |
533,131 |
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__________ |
__________ |
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__________ |
__________ |
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Total Equity |
1,435,842 |
533,131 |
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__________ |
__________ |
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LO-Q PLC |
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Consolidated cash flow statement |
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Six months to 30 Jun 2008 |
Six months to 30 Jun 2007 |
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£ |
£ |
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Cash Flows From Operating Activities |
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Total Operating Profit / (loss) |
181,839 |
32,432 |
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Non-Cash Adjustments |
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Depreciation |
64,189 |
15,458 |
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Unrealised gains on foreign currency exchange |
15,364 |
5,402 |
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Share based payments |
25,389 |
- |
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Non-Cash Adjustments |
104,942 |
20,860 |
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Cash Flows Before Changes in working Capital |
286,781 |
53,292 |
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Increase in Working Capital |
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Increase in inventories |
(200,784) |
(5,572) |
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Increase in trade and other receivables |
(71,478) |
(108,461) |
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Decrease/(Increase) in trade and other payables |
66,896 |
(150,531) |
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(Decrease)/Increase in tax payable |
(5,294) |
11 |
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Increase in Working Capital |
(210,660) |
(264,553) |
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Cash Flows From Operating Activities |
76,121 |
(211,261) |
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Cash Flows From Investing Activities |
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Payments to acquire property, plant and equipment |
(145,159) |
(177,288) |
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Cash Flows From Financing Activities |
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Gross proceeds from issue of equity share capital |
13,715 |
- |
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Interest Received |
1,689 |
995 |
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Interest Paid |
(1,247) |
(19,100) |
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Net Cash Flows From Financing Activities |
(131,002) |
(195,393) |
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Net decrease in Cash and Cash Equivalents |
(54,881) |
(406,654) |
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Cash and Cash equivalents as at 1 January 2008 |
630,854 |
643,968 |
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Cash and Cash Equivalents As At 30 June 2008 |
575,973 |
237,314 |
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LO-Q PLC |
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Consolidated Statement Of Changes In Equity |
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Issued capital |
Share premium |
Other reserves |
Retained earnings |
Total equity |
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£ |
£ |
£ |
£ |
£ |
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Balance at 1 January 2008 |
149,292 |
4,991,266 |
106,104 |
(4,047,570) |
1,199,092 |
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Total income for the year recognised |
- |
- |
- |
15,364 |
15,364 |
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directly in equity - foreign exchange |
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Profit for the year |
- |
- |
- |
182,281 |
182,281 |
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Total recognised expense for the year |
149,292 |
4,991,266 |
106,104 |
(3,849,925) |
1,396,737 |
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Issue of share capital |
3,919 |
9,797 |
- |
- |
13,716 |
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Recognition of share-based payments |
- |
- |
25,389 |
- |
25,389 |
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Balance at 30 June 2008 |
153,211 |
5,001,063 |
131,493 |
(3,849,925) |
1,435,842 |
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Balance at 1 January 2007 |
147,658 |
4,982,067 |
20,578 |
(4,636,901) |
513,402 |
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Total expense for the year recognised |
- |
- |
- |
5,401 |
5,401 |
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directly in equity - foreign exchange |
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Profit for the year |
- |
- |
- |
14,328 |
14,328 |
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Balance at 30 June 2007 |
147,658 |
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4,982,067 |
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20,578 |
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(4,617,172) |
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533,131 |
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Notes to the Interim Statements
1. These accounts have been prepared in accordance with the International Financial Reporting Standards (IFRS) and show the effects of changes from Generally Accepted Accounting Practice (GAAP) previously adopted in the Accounts.
The interim statement for the six months are unaudited and do not constitute statutory accounts for the purpose of the Companies Acts. The accounts for the year ended 31st December 2007 have been filed with the Registrar of Companies and the auditors' report on those accounts was not qualified.
2. Due to corporation tax losses available no tax charge has been provided.
3. Earnings per share have been calculated on the profits for the period after taxation and 15,252,131 shares in issue. The diluted earnings per share calculation is based on 15,848,904.
5. The directors have not declared an interim dividend. No dividend is shown in the income statement.
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