19th Aug 2014 07:00
Densitron Technologies plc
Unaudited Interim Results
Densitron Technologies plc ("Densitron" or "the Company" or "the Group") is pleased to announce its unaudited interim results for the six months ended 30th June 2014.
Summary
· Revenue decreased by 7.0% to £9.3m (2013: £10.0m).
· Orders booked increased by 8.3% to £11.8m (2013: £10.9m).
· Orderbook increased by 27.6% to £12.5m (2013: £9.8m)
Financial Summary on continuing operations
6 months to 30th June 2014 Unaudited
| 6 months to 30th June 2013 Unaudited
| |
Revenue
| £9.27m | £9.96m |
Loss from operations
| £(0.13m)* | £(0.23m) |
Loss before taxation
| £(0.17)m | £(0.26)m |
Loss per share
| (0.31)p | (0.45)p |
Orders booked
| £11.8m | £10.9m |
* Including the cost of the property in Newcastle
Enquiries:
Densitron Technologies plc
Grahame Falconer / Tim Pearson
Tel: 0207 648 4200
Westhouse Securities Limited
Martin Davison
Tel: 020 7601 6100
Chairman's Statement
Operation review
I am pleased to be able to report that the business has significantly strengthened in the first six months of the year with a number of new pieces of business having been won, several projects having entered their mass production phases and existing customers having provided repeat orders. While revenues have been disappointing in comparison to the same period in 2013 and consequently the Group remains loss making, I believe that the business has now been positioned for the future with a substantial increase in the level of orders being booked in the first half of the year and the level of the orderbook at 30 June 2014.
At the end of June 2014 the business had confirmed orders from customers but not yet delivered of £12.5 million compared with £9.8 million at 30 June 2013, an increase of 27.6%, demonstrating the progress that the business has made in the first half of the year. These orders will start to be delivered during the second half of 2014 and into 2015.
The majority of the Group's sales are denominated in currencies other than Sterling and the strength in Sterling over the first 6 months of 2014 reduced the impact of some of the improvements we achieved over the period. The table below shows the headline numbers reported for the first 6 months of 2014 compared with our reported figures in 2013 and the 2013 figures restated at the exchange rates used for the 6 months to 30 June 2014.
6 months to 30th June 2014 Reported | 6 months to 30th June 2013 Reported | 6 months to 30th June 2013 Restated | ||||
£000 | £000 | £000 | ||||
Orders booked | 11,838 | 10,900 | 10,109 | |||
Revenues | 9,267 | 9,957 | 9,352 | |||
Gross profit | 2,496 | 2,705 | 2,540 | |||
Loss before tax | (168) | (261) | (272) |
The restated figures help to emphasise the progress that the business made in the first half of 2014. Orders booked in the period increased by 17% compared with the restated result for 2013. Although revenues and gross profit remained similar to the restated result for 2013 the savings made in addressing the cost structure of the business resulted in a reduction in the loss before tax of 38.2% against the restated result for 2013.
The second half of the year is traditionally stronger than the first half and with the level of booked orders due to be shipped in the second half it is expected that this will continue to be the case in 2014. The pipeline of new business remains strong and the Board is confident that the outturn for the full year will be in line with market expectations.
Other matters
The Group owns a piece of land at Blackheath, London for which it continues to work to progress the development potential. Additionally the Board continues to work with Agents to let a property that the Company is the tenant of in Newcastle. The Board will advise Shareholders when there is further information on either of these matters.
Jan G Holmstrom
Chairman
19 August 2014
Unaudited Condensed Consolidated Income Statement
For the six months ended 30th June 2014
6 months to 30th June 2014
£000 | 6 months to 30th June 2013
£000 | Year to 31st December 2013 Audited £000 | |||
Revenue | 9,267 | 9,957 | 20,047 | ||
Cost of sales | (6,771) | (7,252) | (14,584) | ||
Gross profit | 2,496 | 2,705 | 5,463 | ||
Other operating income | 87 | 15 | 3 | ||
Distribution costs | (24) | (30) | (53) | ||
Administrative expenses | (2,689) | (2,921) | (5,271) | ||
Exceptional costs in respect of lease settlement | - | - | (593) | ||
(2,689) | (2,921) | (5,864) | |||
Loss from operations | (130) | (231) | (451) | ||
Financial income | 1 | 1 | - | ||
Financial expenses | (39) | (31) | (69) | ||
Loss before tax | (168) | (261) | (520) | ||
Income tax expense | (53) | (54) | (199) | ||
Loss for the period | (221) | (315) | (719) | ||
Attributable to: | |||||
Equity holders of the parent | (216) | (311) | (705) | ||
Non-controlling interest | (5) | (4) | (14) | ||
(221) | (315) | (719) | |||
Basic and diluted loss per share | (0.31)p | (0.45)p | (1.02)p | ||
Unaudited Condensed Statement of Comprehensive Income
For the six months to 30th June 2014
6 months to 30th June 2014
£000 | 6 months to 30th June 2013
£000 | Year to 31st December 2013 Audited £000 | |||
Loss for the period | (221) | (315) | (719) | ||
Other comprehensive income: | |||||
Foreign currency translation differences for foreign operations |
(168) |
(11) |
(358) | ||
Total other comprehensive loss | (168) | (11) | (358) | ||
Total comprehensive loss for the period | (389) | (326) | (1,077) | ||
Attributable to: | |||||
Equity holders of the parent | (384) | (324) | (1,062) | ||
Non-controlling interest | (5) | (2) | (15) | ||
(389) | (326) | (1,077) |
Unaudited Condensed Consolidated Balance Sheet
As at 30th June 2014
30th June 2014
£000 | 30th June 2013
£000 | 31st December 2013 Audited £000 | |||
Non-current assets | |||||
Property, plant and equipment | 708 | 840 | 765 | ||
Goodwill | 143 | 143 | 143 | ||
Other intangible assets | 583 | 392 | 582 | ||
Deferred tax assets | 7 | 23 | 7 | ||
1,441 | 1,398 | 1,497 | |||
Current assets | |||||
Inventories | 1,412 | 1,297 | 1,424 | ||
Trade and other receivables | 3,801 | 3,833 | 3,895 | ||
Income tax recoverable | 99 | 116 | 125 | ||
Cash and cash equivalents | 801 | 1,663 | 848 | ||
6,113 | 6,909 | 6,292 | |||
Total assets | 7,554 | 8,307 | 7,789 | ||
Current liabilities | |||||
Borrowings | 1,862 | 2,270 | 1,764 | ||
Trade and other payables | 3,269 | 2,294 | 3,121 | ||
Current tax payable | 56 | 52 | 34 | ||
Provisions | 9 | 18 | 9 | ||
5,196 | 4,634 | 4,928 | |||
Non-current liabilities | |||||
Borrowings | 56 | 119 | 83 | ||
Trade and other payables | 30 | - | 81 | ||
Provisions | 111 | 116 | 111 | ||
Deferred tax liabilities | 1 | - | 37 | ||
198 | 235 | 312 | |||
Total liabilities | 5,394 | 4,869 | 5,240 | ||
2,160 | 3,438 | 2,549 | |||
Equity | |||||
Share Capital | 697 | 697 | 697 | ||
Retained earnings | 1,705 | 2,443 | 1,917 | ||
Special reserve | 83 | 93 | 87 | ||
Revaluation reserve | 450 | 450 | 450 | ||
Translation reserve | (785) | (273) | (617) | ||
Equity attributable to shareholders of Densitron | 2,150 | 3,410 | 2,534 | ||
Minority interests | 10 | 28 | 15 | ||
Total equity | 2,160 | 3,438 | 2,549 |
Unaudited Condensed Statement of Changes in Shareholders' Equity
For the 6 months to 30th June 2014
Share capital
£000 | Translation reserve
£000 | Special reserve
£000 | Revaluation reserve
£000 | Retained earnings
£000 | Total Attributable to equity holders of the parent £000 | Non-controlling interest
£000 | Total equity
£000 | ||
Balance at 1 January 2013 |
697 |
(260) |
97 |
450 |
2,750 |
3,734 |
30 |
3,764 | |
Loss for the period | - | - | - | - | (311) | (311) | (4) | (315) | |
Other total comprehensive income for the period |
- |
(13) |
-
|
- |
- |
(13)
|
2
|
(11)
| |
Transfer from special reserve |
- |
- |
(4) |
- |
4 |
- |
- |
- | |
Balance at 30 June 2013 |
697 |
(273) |
93 |
450 |
2,443 |
3,410 |
28 |
3,438 | |
Profit for the period | - | - | - | - | (394) | (394) | (10) | (404) | |
Other total comprehensive income for the period |
- |
(344) |
- |
- |
- |
(344)
|
(3) |
(347) | |
Payment of dividend | - | - | - | - | (138) | (138) | - | (138) | |
Transfer from special reserve |
- |
- |
(6) |
- |
6 |
- |
- |
- | |
Balance at 31 December 2013 |
697 |
(617) |
87 |
450 |
1,917 |
2,534 |
15 |
2,549 | |
Loss for the period | - | - | - | - | (216) | (216) | (5) | (221) | |
Other total comprehensive income for the period |
- |
(168) |
-
|
- |
- |
(168)
|
-
|
(168)
| |
Transfer from special reserve |
- |
- |
(4) |
- |
4 |
- |
- |
- | |
Balance at 30 June 2014 |
697 |
(785) |
83 |
450 |
1,705 |
2,150 |
10 |
2,160 | |
|
Unaudited Condensed Consolidated Cash Flow Statement
For the 6 months ended 30th June 2014
6 months to 30th June 2014
£000 | 6 months to 30th June 2013
£000 | Year to 31st December 2013 Audited £000 | |||
Cash flows from operating activities | |||||
Loss before taxation | (168) | (261) | (520) | ||
Adjustments for: | |||||
Depreciation | 52 | 74 | 117 | ||
Amortisation | 58 | 21 | 79 | ||
Net finance expense | 38 | 30 | 69 | ||
(20) | (136) | (255) | |||
Change in inventories | (23) | 16 | (187) | ||
Change in trade and other receivables | 73 | 1,306 | 987 | ||
Change in trade and other payables | 31 | (1,035) | (20) | ||
Change in provisions | - | 9 | - | ||
61 | 160 | 525 | |||
Income tax paid | (46) | (107) | (218) | ||
Net cash from operating activities | 15 | 53 | 307 | ||
Cash flows from investing activities | |||||
Interest received | 1 | 1 | - | ||
Payment for intangible assets | (2) | (7) | (276) | ||
Acquisition of plant, property and equipment | (71) | (62) | (50) | ||
(72) | (68) | (326) | |||
Cash flows from financing activities | |||||
Inception of new loans | 176 | - | - | ||
Repayment of borrowings | (79) | (113) | (169) | ||
Interest paid | (39) | (31) | (69) | ||
Change in trade finance creditor | (124) | 189 | 261 | ||
Change in letters of credit | 22 | (69) | (626) | ||
Dividends paid to owners of the Company | - | - | (138) | ||
Net cash used in financing activities | (44) | (24) | (741) | ||
Net decrease in cash and cash equivalents | (101) | (39) | (760) | ||
Cash and cash equivalents at 1st January | 111 | 961 | 961 | ||
Effect of exchange rate fluctuation on cash held | (17) | 28 | (90) | ||
Cash and cash equivalents at the end of the period |
(7) |
950 |
111 | ||
Notes to the Unaudited Condensed Financial Statements
For the six months ended 30th June 2014
1. General information
Densitron Technologies plc is a public limited company incorporated in the United Kingdom under the Companies Act 2006 (registration number 1962726).
The Company is domiciled in the United Kingdom and its registered address is 4th Floor, 72 Cannon Street, London, EC4N 6AE. The Company's Ordinary Shares are traded on the AIM Market of the London Stock Exchange. The Group's principal activities are the design, development and delivery of electronic display and display related technologies.
2. Basis of preparation
This unaudited consolidated interim financial information has been prepared using the recognition and measurement principles of International Accounting Standards, International Financial Reporting Standards and Interpretations adopted for use in the European Union (collectively EU IFRSs). The principal accounting policies used in preparing the interim results are those it expects to apply in its financial statements for the year ended 31 December 2014 and are unchanged from those disclosed in the group's Annual Report for the year ended 31 December 2013.
The financial information for the six months ended 30 June 2014 and 30 June 2013 is unreviewed and unaudited and does not constitute the group's statutory financial statements for those periods. The comparative financial information for the full year ended 31 December 2013 has, however, been derived from the audited statutory financial statement for that period. A copy of those statutory financial statements has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498(2) - 498(3) of the Companies Act 2006.
The financial information in the Interim Report is presented in Sterling and all values are rounded to the nearest thousand pounds (£'000) except when otherwise indicated.
3. Segmental analysis
UK | France | Finland | Germany | US | Japan | Taiwan | Total | |
£000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | |
6 months to 30 June 2014 | ||||||||
Revenue | ||||||||
Total | 2,607 | 1,045 | 145 | 676 | 3,936 | 1,083 | 2,581 | 12,073 |
Intercompany | (327) | (45) | (38) | - | (63) | (12) | (2,321) | (2,806) |
Revenue from external customers |
2,280 |
1,000 |
107 |
676 |
3,873 |
1,071 |
260 |
9,267 |
(Loss)/profit before tax |
(80) |
39 |
(23) |
(5) |
254 |
(10) |
(74) |
101 |
6 months to 30 June 2013 | ||||||||
Revenue | ||||||||
Total | 2,867 | 1,005 | 213 | 909 | 4,065 | 1,514 | 2,430 | 13,003 |
Intercompany | (795) | (32) | (23) | - | (30) | - | (2,166) | (3,046) |
Revenue from external customers |
2,072 |
973 |
190 |
909 |
4,035 |
1,514 |
264 |
9,957 |
Profit/(loss) before tax |
(158) |
4 |
(17) |
- |
251 |
78 |
(192) |
(34) |
Year to 31 December 2013 | ||||||||
Revenue | ||||||||
Total | 5,963 | 2,042 | 352 | 1,733 | 8,351 | 2,796 | 4,785 | 26,022 |
Intercompany | (1,473) | (57) | (54) | - | (64) | - | (4,327) | (5,975) |
Revenue from external customers |
4,490 |
1,985 |
298 |
1,733 |
8,287 |
2,796 |
458 |
20,047 |
Profit/(loss) before tax |
(61) |
26 |
(70) |
55 |
660 |
136 |
(282) |
464 |
Reconciliation of reportable segments, profit and loss, assets and liabilities to the Group's corresponding amounts: | |||
6 months to 30th June 2014 Unaudited £000 | 6 months to 30th June 2013 Unaudited £000 | Year to 31st December 2013 Audited £000 | |
Profit after income tax expenses | |||
Total profit for reporting segments | 101 | (34) | 464 |
Costs associated with Head Office | (269) | (227) | (391) |
Exceptional items | - | - | (593) |
Income tax expenses | (53) | (54) | (199) |
Loss after income tax expenses | (221) | (315) | (719) |
4. Taxation
Taxation for the 6 months ended 30th June 2014 has been calculated by applying the estimated tax rate for the current financial year ending 31st December 2014.
5. Dividend
The Board does not propose an interim dividend in respect of the six months to 30 June 2014 (2013: 0.1 pence).
6. Earnings per share
6 months to 30th June 2014 Unaudited £000 | 6 months to 30th June 2013 Unaudited £000 | Year to 31st December 2013 Audited £000 | ||
Loss attributable to ordinary shareholders | ||||
Loss on continuing operations attributable to ordinary shareholders |
(216) |
(311) |
(705) | |
Weighted average number of ordinary shares | ||||
Issued at 1 January 2014 | 69,669,106 | 69,669,106 | 69,669,106 | |
Effect of purchase of Treasury shares on 23rd October 2008 |
(500,000) |
(500,000) |
(500,000) | |
Weighted average number of ordinary shares at 30th June 2014 |
69,169,106 |
69,169,106 |
69,169,106 |
7. Notes supporting the cash flow statement
6 months to 30th June 2014 Unaudited £000 | 6 months to 30th June 2013 Unaudited £000 | Year to 31st December 2013 Audited £000 | ||
Cash and cash equivalents for the purposes of the cash flow statement comprises: | ||||
Cash at bank and in hand | 801 | 1,663 | 848 | |
Bank overdrafts | (808) | (713) | (737) | |
(7) | 950 | 111 |
8. Copies of Interim report
The Interim report is available to view and download from the Company's website at www.densitron.com. If shareholders would like a hardcopy of the interim report they should contact the Company Secretary, Tim Pearson.
Related Shares:
DSN.L