30th Aug 2005 07:00
3DM Worldwide PLC30 August 2005 Press Release 30 August 2005 3DM Worldwide plc Interim Results for the six months ended 30 June 2005 3DM Worldwide plc ("3DM" or "the Company"), which has developed and is nowexploiting a patented plastic polymer moulding process, announces its interimresults for the six months ended 30 June 2005. Highlights • Turnover £567,000 (1H 2004: £332,000) • Operating loss £1.31 million (1H 2004 £1.61 million) • Pre-tax loss £1.05 million (1H 2004 £1.87 million) • Loss per share 1.58p (1H 2004 loss per share 2.82p) • Further development licences granted in the US for military and aircraft applications • Licence signed for development of construction and material handling products in Scandinavia and the Baltic States Commenting on the Results, Ken Brooks, Executive Chairman of 3DM Worldwide plc,said: "Our strategy of transferring the company's development work to a new site, theaward of the first patents for the master process, and the granting of furtherlicences in the US, Scandinavia and the Baltic States, underpins the Board'sconfidence in the future." For further information: 3DM Worldwide PLC Ken Brooks, Chairman Tel: +44 (0) 1993 779 468 [email protected] David Shepley-Cuthbert, Finance Director www.3dmworldwide.com [email protected] Media enquiries: Abchurch Henry Harrison-Topham / Ariane Comstive Tel: +44 (0) 20 7398 7700 [email protected] www.abchurch-group.com Chairman's Statement I am pleased to report our interim results for the first half of 2005. We have made a loss but this reflects the final expenditure incurred by us incompleting the development of the alpha line, which has now been commissioned inBedwas House, Caerphilly. I know that many shareholders have now had an opportunity to visit Caerphillyand see the alpha machine itself. It is a truly impressive piece of engineeringand we believe represents a ground-breaking technology. Your Company is in good shape. We have developed machinery in the UK here andin America. We have significant business before us and look forward to thisbeing developed. Until recently, we have been hampered by the lack of a fullyworking line, in the UK in particular. My thanks are due to the team at Bedwas House without whose dedication and hardwork we would not be where we are. My especial thanks to Peter Aylmore who hastaken on the role of Head of Special Projects stepping aside from day to dayoperations which will now be the responsibility of Peter Oldham and our newChief Operating Officer Niall Mackay who will initially join the board of 3DMGroup Ltd. Ken Brooks Chairman Operational Review This first half of 2005 has been successful operationally, though thecommercialisation of the process has been slower than anticipated. UK The beta line continues to work successfully at the site in Bedwas House,Caerphilly. Equally, the alpha (large scale robotic) line is operating toschedule. The development line is still in use in Trowbridge, though this R&Dcentre will close in October of this year because of the planned redevelopmentof the site. The development work will be moved to Bedwas House, which willfacilitate effective working. Additionally it will provide the opportunity toshow potential licensees the scope of our operations and provide tighter costcontrol. The conversion of heads of terms and letters of intent in the UK into fulllicence arrangements has been at a slower pace than originally anticipated. Most potential licensees have been keen to see the alpha line fully operationaland have also sought assurance on raw material costs. These criteria have onlybeen addressed in the last few weeks, due to the nature of the developmentprogramme. USA Further development licences have been granted in the fields of military andaircraft applications. The development opportunities previously identified withthe automotive industry and building products supply, among others, isprogressing. The ongoing work with Silkwood continues to generate an incomestream. REST OF THE WORLD A licence has been signed for the development of construction and materialhandling products in Scandinavia and the Baltic States. The interest fromseveral countries in Europe and Africa remains live, though here there has beena dependency on the alpha and beta lines in Wales being fully operational. Thepreviously identified interest from China, India and Brazil continues. PEOPLE Our recruitment program has continued and the development and operational teamsare now up to strength, though the size of both teams will grow as more work isacquired for the lines in Wales. Paul Markgraf, as announced, joined the business in July as Business DevelopmentManager. Paul's key focus is to take over part of Peter Aylmore's former roleand to build relationships with existing interested parties, particularly in theUK and mainland Europe, as well as managing a marketing-focused approach topotential licensees. There has been major progress on costing models and controlsystems in the first half of this year and this will greatly facilitate thiswork. Peter Oldham Managing Director Financial Review Results The consolidated net operating loss was £1.31 million, a reduction from £1.61million in 2004. The consolidated losses before tax were £1.05 million comparedto losses of £1.87 million in 2004. These losses include non-cash items of £218,000 covering depreciation oftangible fixed assets and £378,000 for the amortisation of IntellectualProperty, which is being written off over its expected useful life of twentyyears. No dividend payment is proposed. Financing During the period the Company received an initial licence fee following thesigning of an agreement covering Scandinavia and the Baltic States. Inaccordance with accounting standards, this revenue is taken as deferred incomeand released to the profit and loss account over the life of the agreement. The Company had contracted to sell the alpha line in late 2004 on a phased basislinked to commissioning. In total £2.9 million has been received from the saleand leaseback arrangement with a small balance to follow as costs are finalised. In addition, a separate finance arrangement has been concluded for the betaline and funds totalling £344,000 has been received in this period. The Company sold its remaining investment in the Kyrgyz Republic in 2004 for aconsideration of US $1.5 million. A further US$340,000 has been received inMarch 2005. No grants have been received to date though there are still a number ofapplications in process that are expected to produce some grant income over thenext twelve months. Cash balances currently stand at £542,000 (30 June 2005 - £605,000). Thecommitment of £5 million for an equity line of credit with Cornell CapitalPartners remains in place but has not been activated. Separately, as previouslyannounced, negotiations are in hand to finance the remaining machinery andequipment for up £2 million to provide further working capital. David Shepley-Cuthbert Finance Director INDEPENDENT REVIEW REPORT TO 3DM WORLDWIDE PLC Introduction We have been instructed by the company to review the financial information forthe six months ended 30 June 2005 on pages 7 to 12. We have read the otherinformation contained in the interim report and considered whether it containsany apparent misstatements or material inconsistencies with the financialinformation. Our report has been prepared in accordance with the terms of our engagement toassist the company in meeting the requirements of rules of the London StockExchange plc for companies trading securities on the AIM market and for no otherpurpose. No person is entitled to rely on this report unless such a person is aperson entitled to rely upon this report by virtue of and for the purpose of ourterms of engagement or has been expressly authorised to do so by our priorwritten consent. Save as above, we do not accept responsibility for this reportto any other person or for any other purpose and we hereby expressly disclaimany and all such liability. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. The directors areresponsible for preparing the interim report in accordance with the rules of theLondon Stock Exchange plc for companies trading securities on the AIM marketwhich require that the half yearly report be presented and prepared in a formconsistent with that which will be adopted in the Company's annual accountshaving regard to the accounting standards applicable to such annual reports. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board for use in the United Kingdom by auditorsof fully listed companies. A review consists principally of making enquiries ofgroup management and applying analytical procedures to the financial informationand underlying financial data and based thereon, assessing whether theaccounting policies and presentation have been consistently applied unlessotherwise disclosed. A review excludes audit procedures such as tests ofcontrols and verification of assets, liabilities and transactions. It issubstantially less in scope than an audit performed in accordance with UnitedKingdom Auditing Standards and therefore provides a lower level of assurancethan an audit. Accordingly we do not express an audit opinion on the financialinformation. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 30 June 2005. BDO STOY HAYWARD LLPChartered Accountants 125 Colmore RowBirminghamB3 3SD 30 August 2005 UNAUDITED INTERIM ACCOUNTS FOR THE SIX MONTHS ENDED 30 JUNE 2005 The financial information contained within these accounts has been prepared bythe Directors who accept responsibility for the financial information presentedbelow and confirm that it has been properly presented in accordance withapplicable law. The interim accounts have been prepared on the basis of theaccounting policies set out in the group's 2004 annual accounts. The financial information covers the six months ended 30 June 2005. GROUP PROFIT AND LOSS ACCOUNT Unaudited Unaudited Audited Six Months Six Months ended Year ended ended 30 June 31 December 30 June 2004 2004 2005 £'000 £'000 £'000 TurnoverContinuing operations 567 332 783 567 332 783 Cost of sales (63) - (48) Gross profit 504 332 735 Administrative expenses (1,991) (2,022) (3,692)Other operating income 172 77 152 Operating Loss (1,315) (1,613) (2,805)Loss on disposal of subsidiaries - - (761) (1,315) (1,613) (3,566) Foreign currency gains/(losses) oninvestments 4 269 - (464)Interest receivable - 19 36Interest payable (6) (274) (8) Loss on ordinary activities before (1,052) (1,868) (4,002)taxation Tax on loss on ordinary activities - - - Loss on ordinary activities after (1,052) (1,868) (4,002)taxation Basic and diluted loss per ordinary share 5 (1.58) p (2.82) p (6.02) p GROUP BALANCE SHEET AT 30 JUNE 2005 Unaudited Unaudited Audited 30 June 30 June 31 December 2005 2004 2004 £'000 £'000 £'000 Fixed AssetsIntangible assets 12,373 13,125 12,590Tangible assets 4,293 576 2,642Investments 564 3,675 565 17,230 17,376 15,797 Current AssetsWork in progress - 208 -Debtors 2,776 2,167 2,069Cash at bank 654 295 86 3,430 2,670 2,155Creditors: amounts falling due within oneyearBank overdraft (49) (35) (10)Other loans - (275) -Trade creditors (840) (258) (757)Accruals and deferred income (434) (454) (770)Lease purchase (247) - -Other creditors (957) (765) (184) (2,527) (1,787) (1,721) Net current assets 903 883 434 Creditors: amounts falling due after oneyearLease purchase (2,997) - - Net assets 15,136 18,259 16,231 Capital and reservesCalled-up equity share capital 1,670 1,665 1,668Share premium 29,992 29,924 29,958Share option reserve 34 - 34Profit and loss account (16,560) (13,330) (15,429) Shareholders' funds 15,136 18,259 16,231 CASHFLOW STATEMENT Unaudited Unaudited Audited 30 30 31 June June December 2005 2004 2004 £'000 £'000 £'000 Net cash (outflow)/inflow from operating (984) 164 (2,264)activities Returns on investments and servicing of financeInterest paid (6) (3) (8)Interest received - 19 36 Net cash (outflow)/inflow from returns on (6) 16 28investments and servicing of finance Capital expenditure and financial investmentPurchase of tangible fixed assets (1,761) (176) (2,371)Acquisition of investments - (522) (1,323)Receipts from investments - - 2,296 Net cash outflow from capital expenditure and (1,761) (698) (1,398)financial investment Net cash outflow before financing (2,751) (518) (3,634) FinancingIssue of equity share capital 36 369 3,301Sale and leaseback 3,244 - - Net cash flow from financing 3,280 369 3,301 Increase/(decrease) in cash in the period 529 (149) 333 STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES Unaudited Unaudited Audited 30 30 31 June June December 2005 2004 2004 £'000 £'000 £'000 Loss for the period (1,052) (1,868) (4,002)Exchange translation differences onconsolidation (79) - 36 Total recognised gains and losses (1,131) (1,868) (3,966)for the period Prior period adjustment - (1,710) (1,710) Total gains and losses recognised (1,131) (3,578) (5,676)since last financial statements NOTES 1. Reconciliation of operating loss to net cash (outflow)/inflow from operating activities Unaudited Unaudited Audited 30 30 31 December June 2005 June 2004 2004 £'000 £'000 £'000 Operating loss (1,315) (1,613) (2,805)Depreciation and amortisation 596 450 934Increase in work in progress - (208) -Profit on disposal of fixed assets (64) - -Foreign exchange movements (3) - -(Increase)/decrease in debtors (707) 1,594 (327)Increase/(decrease) in creditors 509 (59) (100)Share option charge - - 34 (984) 164 (2,264) 2. Reconciliation of net cash flow to movement in debt Unaudited Unaudited Audited 30 30 31 June 2005 June 2004 December £'000 £'000 2004 £'000 Increase /(decrease) in cash in period 529 (149) (333) Movement in net funds/(debt) resulting fromcashflows 529 (149) (333)Sale and leaseback (3,244) - - Movement in net debt (2,715) (149) (333) Net funds at beginning of period 76 134 409 Net (debt)/funds at end of period (2,639) (15) 76 3. Analysis of changes in net funds At 1 January At 30 June 2005 Cashflow 2005 £'000 £'000 £'000 Cash at bank 86 568 654Bank overdraft (10) (39) (49) 76 529 605 Debt due within one year - (247) (247)Debt due over one year - (2,997) (2,997) - (3,244) (3,244) Total 76 (2,715) (2,639) 4. Foreign currency gains/(losses) on investments The exchange movement on loans to group undertakings arises from a loan made bythe company to a US subsidiary in US dollars. The loan payable in thesubsidiary accounts is translated at the closing rate as part of the group's netinvestment in the US subsidiary. As such any gains or losses arising on theloan payable are taken directly to reserves as required by SSAP 20. 5. Loss per share The basic loss per share is calculated on the loss attributable to theshareholders of £1,051,902 (2004 - loss of £1,867,793) divided by the weightedaverage number of ordinary shares in issue during the period of 66,524,950 (2004- 66,326,979). 6. Financial information The comparatives for the full year ended 31 December 2004 are not the Company'sfull statutory accounts for that year. A copy of the statutory accounts forthat year has been delivered to the Registrar of Companies. The auditors, BDOStoy Hayward LLP, report on those accounts was unqualified and did not contain astatement under section 237(2)-(3) of the Companies Act 1985. Copies of this announcement will be available for inspection at the Company'sregistered office, Unit 4, Manor Business Park, Witney Road, Finstock, Oxon. OX73DG. - Ends - This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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