RNS Number:7040I
Magnum Power PLC
13 March 2003
MAGNUM POWER PLC
Registered in Scotland Number SC147230
Interim Report for the Half Year ended 30 November 2002
The Directors report revenues of #1.11m (2001 - #0.71m) and a loss of #0.37m
(2001 - #0.51m) for the six months ended 30 November 2002.
The results for the 6 months ended 30 November 2002 show substantial growth of
turnover over the prior year - an increase of over 50%. Gross profit fell
sharply against the prior year, but a significant proportion of that reduction
was attributable to a write down of certain stocks. Whilst losses were reduced,
the Group failed to break through to profitability.
As highlighted in the statement of 25 February 2003 covering the results for the
year ended 31 May 2002, the Group received notification in August 2002 from two
major customers of significant rescheduling of their requirements. This had a
major impact on the business plan projections indicating that the Group would
move into breach of its banking facilities for a considerable period. Following
discussions with our bankers, the Board requested suspension of trading in the
shares. This culminated in a transaction in late January 2003 in which the
Company disposed of its operating subsidiaries and premises to the Pentranic
Group.
The Board are actively reviewing opportunities for the continuation of Magnum
Power PLC, with a view to being able to revert to shareholders with an
appropriate proposal.
Brian McGhee
Chairman
07 March 2003
MAGNUM POWER
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Half year to Half year to Year to
30 November 30 November 31 May
2002 2001 2002
# # #
Turnover 1,111,643 705,984 1,609,398
Cost of sales (897,623) (474,439) (1,102,419)
Gross profit 214,020 231,545 506,979
Other operating expenses (net) (561,397) (727,827) (1,359,428)
Operating loss (347,377) (496,282) (852,449)
Interest received 545 3,817 3,988
Interest payable and similar charges (20,930) (18,532) (40,313)
Loss on ordinary activities before taxation (367,762) (510,997) (888,774)
Tax on loss on ordinary activities - - 187,312
Loss for the financial year (367,762) (510,997) (701,462)
Loss per ordinary share (0.37p) (0.51p) (0.70p)
Basic and diluted loss per share
There were no recognised gains or losses other than the loss for each financial year.
MAGNUM POWER
CONSOLIDATED BALANCE SHEET
30 November 30 November 31 May
2002 2001 2002
# # #
Fixed Assets
Intangible Assets - patents - 7,550 -
Tangible Assets 941,542 1,244,661 976,087
941,542 1,252,211 976,087
Current Assets
Stocks 104,108 408,865 236,065
Debtors 393,799 272,136 588,924
Cash at bank and in hand - - -
497,907 681,001 824,989
Creditors: Amounts falling due within one year (730,156) (386,839) (703,325)
Net current assets (liabilities) (232,249) 294,162 121,664
Total assets less current liabilities 709,293 1,546,373 1,097,751
Creditors: Amounts falling due after more than one year (374,809) (422,252) (395,505)
Net assets 334,484 1,124,121 702,246
Capital and reserves
Ordinary share capital 9,993,440 9,993,440 9,993,440
Share premium account 10,793,236 10,793,236 10,793,236
Revaluation Reserve 213,529 444,939 213,529
Merger reserve (1,702,470) (1,702,470) (1,702,470)
Profit and loss account (18,963,251) (18,405,024) (18,595,489)
Equity shareholders' funds 334,484 1,124,121 702,246
Half Year to 30 November 2002 Half year to Year to
30 November 31 May
2001 2002
Restated
# # #
Net cash inflow (outflow) from operating 34,621 (481,021) (540,989)
activities
Returns on investments and servicing of
finance
Interest received 545 3,817 3,988
Interest paid (20,930) (18,532) (40,313)
Net cash (outflow)/inflow from returns on (20,385) (14,715) (36,325)
investments and servicing of finance
Capital expenditure and financial investment
Purchase of tangible fixed assets - (1,166) (1,166)
Net cash outflow from capital expenditure and - (1,166) (1,166)
financial investment
Cash inflow (outflow) before financing 14,236 (496,902) (578,480)
Financing
Issue of ordinary share capital - - -
Repayment of loans (20,863) (20,645) (43,164)
Capital element of finance lease payments - (2,954) (2,954)
Net cash (outflow)/inflow from financing (20,863) (23,599) (46,118)
(Decrease)/increase in cash (6,627) (520,501) (624,598)
1. Basis of Preparation
The financial information for the six months ended 30 November 2002 and 30
November 2001 is not audited but has been prepared in accordance with generally
accepted accounting principles in the UK. The accounting policies adopted are
consistent with those set out in the audited financial statements for the year
ended 31 May 2002. The financial information does not constitute statutory
accounts as defined in Section 240 of the Companies Act 1985. Figures for the
year to 31 May 2002 included within this report are an abridged version of the
full accounts (as restated) which carry an adverse auditors' report and will be
filed with the Registrar of Companies.
2. Going Concern
The Group continued to trade in the year commencing 01 June 2002 and incurred
further losses. In January 2003 the Company disposed of its subsidiary
companies and premises. The disposal was such that the Company made no recovery
in respect of its investments in, and amounts due from subsidiaries.
Following the disposal, the Company is now a stand alone company, with minimal
net assets and substantial tax losses.
The directors are currently reviewing opportunities for the Company to continue
as a going concern.
3. Approval
The interim report for the six months ended 30 November 2002 was approved by the
directors on 7 March 2003.
4. Segment Information
Turnover and loss on ordinary activities before taxation were derived entirely
from the Group's principal activity of designing, developing and selling
Built-In Uninterruptible Power Supplies (BI-UPS(R)).
Turnover was achieved in the following geographical areas:
Half year to Half year to Year to
30 November 2002 30 November 31 May
2001 2002
# #
United Kingdom 85,277 342,729 666,602
Rest of Europe 158,912 71,258 231,727
Rest of World 867,454 291,997 711,069
1,111,643 705,984 1,609,398
5. Called-Up Share Capital
Half year to Half year to Year to
30 November 30 November 31 May
2002 2001 2002
# # #
Authorised
113,000,000 (2001 - 113,000,000) 11,300,000 11,300,000 11,300,000
Ordinary Shares of #0.10 each
Allotted, called-up and fully paid:
99,934,398 (2000 - 99,934,398) 9,993,440 9,993,440 9,993,440
Ordinary Shares of #0.10 each
6. Loss per Ordinary Share
Loss per Ordinary Share is based on the Group loss on ordinary activities after
tax of #367,762 (2001 - #510,999). The weighted average number of Ordinary
Shares used in the calculations has been calculated in accordance with FRS 14 "
Earnings per Share".
The number of Ordinary Shares used in the calculation and comparatives are
outlined below:
Half year to Half year to Year to
30 November 30 November 31 May
2002 2001 2002
# # #
Weighted average number of Ordinary Shares 99,934,398 99,934,398 99,934,398
- basic
Potentially dilutive share options - - -
Average number of Ordinary Shares 99,934,398 99,934,398 99,934,398
- fully-diluted
7. Notes to the Consolidated Cash Flow Statement
a) Reconciliation of operating loss to net cash outflow from operating
activities.
Half year to Half year to Year to
30 November 30 November 31 May
2002 2001 2002
# # #
Operating loss (347,377) (496,282) (852,449)
Depreciation charges 34,545 37,585 74,749
Amortisation of intangible assets - patent - 7,550 15,100
Decrease/(increase) in stock 131,957 86,315 259,115
Decrease/(increase) in debtors 195,125 57,577 (71,899)
Increase (Decrease) in creditors 20,371 (173,766) 34,395
Net Cash Outflow From Operating Activities 34,621 (481,021) (540,989)
b) Analysis of net debt
31 May Other non - 30 November 2002
2002 Cashflow cash changes
# # # #
Bank Overdraft (251,617) (6,627) - (258,244)
Debt due within one year (42,658 ) 20,863 (20,696) (42,491)
Debt due after one year (395,505 ) 20,696 (374,809)
Net debt (689,780 ) 14,236 - (675,544)
c) Reconciliation of net cash flow to movement in net debt
Half year to Half year to Year to
30 November 30 November 31 May
2002 2001 2002
# # #
Increase in bank overdraft (6627) (520,501) (624,598)
Cash outflow from decrease in debt and lease financing 20,863 23,599 46,118
Movement in net debt in the period 14,236 (496,902) (578,480)
Net debt at beginning of the period (689,780) (111,300) (111,300)
Net debts at end of period (675,544) (608,202) (689,780)
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UOUSROSROAAR