19th Dec 2006 07:01
Solid State PLC19 December 2006 Solid State plc Unaudited Interim Results for the six months ended 30 September 2006 Chairman's Statement Results The unaudited pre-tax profit for the Group for the six months ended 30 September2006 was £188,000 (2005: £127,000) on a turnover of £6,337,000 (2005:£5,010,000). The basic earnings per share amounted to 2.4p (2005: 1.6p). Thepre-tax profit is stated after goodwill amortisation of £45,000 (2005: £22,000). Trading Review Solid State Supplies Our component distribution business has continued to take advantage of theimprovement in market conditions that began in March. Our sales order intakehas increased by 4% over the same period last year and this is despite the lossof franchises reported previously. Our book to bill ratio remains strong at1.15:1.00 and this will feed through to sales during the second half of thisyear. As outlined in my previous statement I am pleased to confirm that new franchiseshave been signed in this period. We are in advanced discussions with furtherlines which together will broaden our product offering and bring significantbenefits next fiscal year. Steatite and Wordsworth Technology Sales for both companies have continued to improve, whilst the full advantagesof the re-organisation continue to have a positive effect on costs and margins. The focus on demand creation for value added product has led to own branddesigns and new product developments. This has increased the long termopportunities for both companies in some of the large blue chip OEMs within theUK. We will continue to develop new products and franchises offering the bestin Batteries and Industrial Computing platforms to our expanding customer base. Summary The results represent a significant improvement with turnover and profit inexcess of expectation at both sites. Turnover for the first half of this yearhas increased by 15% on a like for like basis over the second half of last year. Having consolidated Wordsworth Technology into the Redditch site we are nowlooking for suitable further acquisitions within the electronics industry. Theboard is confident that the Group will continue to develop from its strongposition and that this will be reflected in the results of the current andfuture periods. Dividends No final dividend was paid in respect of the year ended 31 March 2006 meaningthat the total dividend in respect of the year was 0.5p per share. Thedirectors are pleased to announce that in the light of the sound result for thefirst half year, an interim dividend of 1p per share will be paid. The paymentdate will be 30 January 2007 to shareholders on the register at the close ofbusiness on 26 January 2007. Conclusion I would like to thank my fellow directors and all the staff of the Group fortheir support over the past six months. Peter HainingChairman 19 December 2006 INTERIM CONSOLIDATED PROFIT AND LOSS ACCOUNTfor the six months ended 30 September 2006 Unaudited Unaudited Audited Six months to Six months to Year to 30 Sept 2006 30 Sept 2005 31 Mar 2006 £'000 £'000 £'000 (as restated) (as restated) Turnover 6,337 5,010 10,452 Cost of sales (4,669) (3,525) (7,543) -------------- -------------- --------------Gross profit 1,668 1,485 2,909 -------------- -------------- -------------- Selling expenses and distribution costs (794) (619) (1,216) Administrative expenses (636) (712) (1,684) -------------- -------------- -------------- (1,430) (1,331) (2,900) -------------- -------------- -------------- Operating profit 238 154 9 Other income 1 1 4 Interest payable (51) (28) (81) -------------- -------------- --------------Profit/(loss) on ordinary activities beforetaxation 188 127 (68) Tax on profit on ordinary activities (41) (33) 35 -------------- -------------- -------------- PROFIT/(LOSS) FOR THE FINANCIAL PERIOD 147 94 (33) -------------- -------------- -------------- RECONCILIATION OF MOVEMENT IN SHARHOLDERS' FUNDSOpening shareholders funds 2,019 2,198 2,198 Profit/(loss) for the financial period aspreviously reported - 98 (25) Adjustment re share based payments - (4) (8) -------------- -------------- --------------Profit/(loss) for the financial period asrestated 147 94 (33) -------------- -------------- -------------- Dividends paid - (122) (154)Share based payment expense 4 4 8 -------------- -------------- --------------Closing shareholders' funds 2,170 2,174 2,019 -------------- -------------- --------------Earnings per shareBasic 2.4p 1.6p (0.4p)Diluted 2.4p 1.6p (0.4p) All amounts relate to continuing operations. CONSOLIDATED BALANCE SHEETas at 30 September 2006 Unaudited Unaudited Audited As at As at As at 30 Sept 2006 30 Sept 2005 31 Mar 2006 £'000 £'000 £'000 (as restated) (as restated) FIXED ASSETSIntangible assets 1,616 1,623 1,661Tangible assets 368 471 374 -------------- -------------- -------------- 1,984 2,094 2,035 -------------- -------------- -------------- CURRENT ASSETSStock 1,188 1,483 1,081Debtors 2,341 1,982 1,864Cash at bank and in hand 117 117 154 -------------- -------------- -------------- 3,646 3,582 3,099 -------------- -------------- -------------- CREDITORSAmounts falling due within one year (3,048) (2,780) (2,561) -------------- -------------- -------------- NET CURRENT ASSETS 598 802 538 -------------- -------------- -------------- TOTAL ASSETS LESS CURRENT LIABILITIES 2,582 2,896 2,573 -------------- -------------- -------------- CREDITORSAmounts falling due after more than one year (412) (722) (554) -------------- -------------- -------------- 2,170 2,174 2,198 -------------- -------------- --------------CAPITAL AND RESERVESShare capital 308 308 308Capital redemption reserve 5 5 5Share premium account 757 757 757Profit and loss account 1,100 1,104 949 -------------- -------------- --------------SHAREHOLDERS' FUNDS 2,170 2,174 2,019 -------------- -------------- -------------- CONSOLIDATED CASH FLOW STATEMENTfor the six months ended 30 September 2006 Unaudited Unaudited Audited Six months to Six months to Year to 30 Sept 2006 30 Sept 2005 31 Mar 2006 £'000 £'000 £'000 Net cash inflow/(outflow) from operatingactivities (112) 907 1,216 Return on investments and servicing of finance:Interest received 1 1 4Interest paid (51) (28) (81) -------------- -------------- --------------Net cash (outflow) (50) (27) (77) -------------- -------------- --------------Taxation:Corporation tax paid - - (185) -------------- -------------- --------------Net cash (outflow) - - (185) -------------- -------------- -------------- Capital expenditure and financial investment:Payments to acquire tangible fixed assets (114) (54) (145)Receipts from sales of tangible fixed assets 43 7 44 -------------- -------------- --------------Net cash (outflow) (71) (47) (101) -------------- -------------- -------------- Acquisitions and disposalsPurchase of business operation - (1,833) (1,833)Net cash acquired with subsidiary - 235 235 -------------- -------------- --------------Net cash (outflow) - (1,598) (1,598) -------------- -------------- --------------Equity dividend paid - (123) (154) -------------- -------------- --------------Net cash (outflow) before financing (233) (888) (899) -------------- -------------- -------------- Financing:Medium term loan received - 500 500Repayments of medium term loan (82) (56) (138)Invoice discounting finance received (netmovement) 36 308 501 -------------- -------------- --------------Net cash inflow/(outflow) (46) 752 863 -------------- -------------- --------------(Decrease) in cash (279) (136) (36) -------------- -------------- -------------- NOTES TO THE INTERIM REPORT 1. Basis of preparation of interim financial information The interim financial statements have been prepared on the basis of accountingpolicies expected to be adopted in the Financial Statements for the year ending31 March 2007. The Group has changed its accounting policy for share optionsgranted after 7th November 2002 in accordance with Financial Reporting Standard20 "Share based payments". The results for the comparable periods have beenrestated accordingly (6 months to 30th September 2005: £4,000; year ended 31stMarch 2006: £8,000).The effects of this change are set out in the Reconciliationof Movement in Shareholders' Funds on page 3. The unaudited financial statementsdo not constitute statutory accounts within the meaning of Section 240 of theCompanies Act 1985. Statutory accounts for year ended 31 March 2006 have beenfiled with the Registrar of Companies. The Auditors' Report on these accountswas unqualified. 2. Earnings per share The earnings per share figures are based on the profit on ordinary activitiesafter taxation as stated in the unaudited profit and loss account and theweighted average number of shares in issue during each period. The weightedaverage number of shares in issue during the period was 6,156,511 for the sixmonths ended 30 September 2006, 6,156,511 for the year ended 31 March 2006 and6,156,511 for the six months ended 30 September 2005. The calculation ofdiluted earnings per share was based on 6,156,511 for the six months ended 30September 2006, 6,156,511 for the year ended 31 March 2006 and 6,156,511 for thesix months ended 30 September 2005. 3. Reconciliation of operating profits to net cash inflow from operatingactivities Unaudited Unaudited Audited Six months to Six months to Year to 30 Sept 2006 30 Sept 2005 31 Mar 2006 £'000 £'000 £'000 Operating profit 238 154 9Share based payment expense 4 4 8Amortisation of intangible fixed assets 45 22 71Depreciation charges 72 68 151Loss on disposal of fixed assets 6 5 17Decrease/(Increase) in stocks (107) (142) 223Decrease/(increase) in debtors (477) 648 801Increase/(decrease) in creditors 107 148 (64) ---------------- ---------------- ----------------Net cash inflow/(outflow) from operatingactivities (112) 907 1,216 ---------------- ---------------- ---------------- 4. Analysis and reconciliation of net cash Audited Unaudited 31 Mar 2006 Cash flow 30 Sept 2006 £'000 £'000 £'000 Cash at bank and in hand 154 (37) 117Bank overdrafts (88) (242) (330) ---------------- ---------------- ---------------- 66 (279) (213) ---------------- ---------------- ---------------- 5. Further copies of this document are available both at the registeredoffice of the Company and from the offices of Charles Stanley Securities, 25Luke Street, London, EC2A 4AR. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Solid State