Interim Results
September 26 2003 - 9:25AM
UK Regulatory
RNS Number:2362Q
Radamec Group PLC
26 September 2003
RADAMEC GROUP PLC - INTERIM ANNOUNCEMENT
*Radamec, the AIM traded company which during 2003 has disposed of its two
principal businesses (Radamec Defence Systems and Radamec Broadcasting
Systems), following the #4.6m disposal of its Head Office site in October
2002.
*In the half year ended 30 June 2003, Radamec made a pre-tax profit of
#380,000 (2002: loss of #388,000), being net of #819,000 on the February
2003 disposal of Radamec Broadcasting Systems to Vitec Group plc for #4.65m
and a trading loss of #439,000.
*An interim dividend per share of 3.0p (2002: 1.0p) has been declared.
*Radamec Defence Systems was sold to Ultra Electronics Holdings plc in
July 2003 for #6.0m.
* Len Whittaker, Chairman, stated "The surrender of the Chertsey lease at
the year end will make a significant contribution to the reduction in expense
necessary to ensure the overhead level is commensurate with the ongoing Group
operation. The Board, with its professional advisers, is currently determining
the options open to the Group to effect the most efficient method for the
distribution of cash in excess of operational requirements to shareholders,
taking cognisance of the Group's outstanding obligations including those arising
from the sale of the businesses. It is envisaged that appropriate strategies
will emerge by the year end following the Board's consideration of the Group's
future operation and shareholders will be informed accordingly."
Enquiries:
Radamec Group PLC 01932-561181
Len Whittaker (Chairman & Chief Executive)
Lionel Moore (Finance Director)
Bankside Consultants Limited
Charles Ponsonby 020-7444 4166
Alistair Macdonald 020-7444 4168
CHAIRMAN'S INTERIM STATEMENT 2003
Group pre-tax profit for the first half of 2003 was #380,000 (#388,000 loss).
The profit was net of #819,000 profit on the sale in February 2003 of Radamec
Broadcast Systems Limited (RBS) and a trading loss of #439,000. The Group cash
balance is now #8.8m which includes the receipt of the final tranche of cash
received in August 2003 (#1.1m) from the sale of the Group Head Office site, the
proceeds of the sale (#6.0m) in July 2003 of the share capital of Radamec
Defence Systems (RDS) and after deduction of selling expenses and unrecovered
Group overheads.
Dividends
An interim dividend per share of 3p (2002 : 1p) has been declared by the Board
to be paid on 5 December 2003 to shareholders on the register at the close of
business on 7 November 2003.
Operations
Following the sale in October 2002 of the Group Head Office site to Laing Homes
for #4.6m, opportunities were identified for the profitable sale of RBS and RDS.
Negotiations for the sale of RBS were completed on 18 February 2003, the
business being sold to Vitec Group plc for #4.65m. Negotiations for the sale of
RDS to Ultra Electronics Holdings plc (Ultra) were completed on 30 July 2003 at
a selling price of #6.0m.
Radamec Control Systems Limited (RCS) made a first half year operating loss as a
result of low sales and writing off the product development expenses. These were
the Marine Controls Division's new generation digital marine control system and
in the Environmental Controls Division the cost of completing a version of the
Diesel Engine Exhaust Monitor to meet a specific customer requirement.
Property
The sale of RDS included an arrangement for the Group to sub-lease part of the
leased Chertsey factory to enable the purchaser (Ultra) to remain in situ until
the end of the year. At that time Radamec's lease on the property will be
terminated without liability and a reduced Radamec Group office will be
relocated to appropriate premises in the Guildford area. RCS is to be relocated
in November 2003 to much improved premises in Newbury following the expiration
of its current lease.
Outlook
The surrender of the Chertsey lease at the year end will make a significant
contribution to the reduction in expense necessary to ensure the overhead level
is commensurate with the ongoing Group operation.
The Board, with its professional advisers, is currently determining the options
open to the Group to effect the most efficient method for the distribution of
cash in excess of operational requirements to shareholders, taking cognisance of
the Group's outstanding obligations including those arising from the sale of the
businesses. It is envisaged that appropriate strategies will emerge by the year
end following the Board's consideration of the Group's future operation and
shareholders will be informed accordingly.
Len Whittaker
Chairman 26 September 2003
SUMMARISED CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the six months ended 30 June 2003
6 months 6 months ended Year ended
ended 30 June 31 December
30 June 2003 2002 2002
(unaudited) (unaudited) (audited)
Note
#'000 #'000 #'000
Turnover
Continuing 320 4,580 4,689
operations
Discontinued 4,507 227 4,632
operations
________ ________ ________
4,827 4,807 9,321
======== ======== ========
Operating
profit/(loss)
Continuing (746) (186) (1,025)
operations
Discontinued 296 (106) 13
operations
________ ________ ________
(450) (292) (1,012)
---------- -------- --------
Profit on - - 3,705
sale of fixed
assets
Loss on - - (55)
disposal of
investment
Profit/(loss) 819 - (22)
on disposal
of
discontinued
operations
------------ -------- ------
Profit/(loss) 369 (292) 2,616
on ordinary
activities
before
interest
Net 11 (96) (161)
interest
Profit/(loss) 380 (388) 2,455
before
taxation
Taxation 2 (33) 120 (254)
----------- ---------- ----------
Profit/(loss) 347 (268) 2,201
after
taxation
Dividend - (561) (187) (374)
equity
shares
Transfer (214) (455) 1,827
(from)/to
reserves
============ ========== =========
Earnings/
(loss) per
share
Basic 3 1.86p (1.4p) 11.8p
----------- ---------- ---------
Diluted 1.85p (1.4p) 11.8p
=========== ========= ========
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the six months ended 30 June 2003
6 months 6 months ended Year ended
30 June
ended 2002 31 December
30 June (unaudited) 2002
2003 (audited)
(unaudited)
#'000 #'000 #'000
Group profit/(loss) 347 (268) 2,201
for the period
Group currency 49 14 29
translation gain
------------------ ------------------ ------------------
Total recognised 396 (254) 2,230
gains/(loss)
================== ================== ==================
CONSOLIDATED BALANCE SHEET
as at 30 June 2003
At At At
30 June 30 June 31 December
2003 2002 2002
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Fixed assets
Intangible assets 1,024 1,380 1,306
Tangible assets 435 478 531
Investments - 100 -
------------------ ------------------ ------------------
1,459 1,958 1,837
================== ================== ==================
Current assets
Assets awaiting - 581 -
disposal
Stock and work in 1,517 3,229 3,410
progress
Debtors 4,005 4,374 6,916
Cash at bank and in 4,247 - 156
hand
------------------ ------------------ ------------------
9,769 8,184 10,482
Creditors: Amounts (3,056) (4,112) (3,990)
falling due within
one year
------------------ ------------------ ------------------
Net current assets 6,713 4,072 6,492
------------------ ------------------ ------------------
Total assets less 8,172 6,030 8,329
current liabilities
Creditors: Amounts (30) (20) (22)
falling due after
more than one year
------------------ ------------------ ------------------
Net assets 8,142 6,010 8,307
================== ================== ==================
Capital and
reserves
Called up share 934 934 934
capital
Share premium 1,857 1,857 1,857
account
Other reserves 623 623 623
Profit and loss 4,728 2,596 4,893
account
------------------ ------------------ ------------------
Equity shareholders' 8,142 6,010 8,307
funds
================== ================== ==================
SUMMARY CONSOLIDATED CASHFLOW STATEMENT
for the six months ended 30 June 2003
6 months 6 months
ended ended Year ended
30 June 30 June 31 December
2003 2002 2002
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Net cash inflow/ 111 (376) 1,170
(outflow) from
operating
activities
=== === ===
Returns on 11 (96) (161)
investments and
servicing of
finance
Taxation paid - - (36)
Capital expenditure (59) (411) 466
and financial
investment
Acquisitions and 4,043 120 180
disposals
Equity dividends - - (280)
paid
------------------ ------------------ ------------------
Net cash inflow/ 4,106 (763) 1,339
(outflow) before
financing
Financing (15) 14 (18)
------------------ ------------------ ------------------
Increase/(decrease) 4,091 (749) 1,321
in cash
================== ================== ==================
NOTES TO THE INTERIM STATEMENTS
for the six months ended 30 June 2003
1. ACCOUNTING POLICIES
The accounting policies adopted, remain the same as those applied in the year
ended 31 December 2002 financial statements.
2. UK TAXATION
Tax charged to the profit and loss account for the six months ended 30 June 2003
is #33,000 (31 December 2002: #254,000; 30 June 2002: #120,000 credited). The
disposal of RBS has not given rise to a tax charge, as it is exempt under the
substantial shareholdings legislation.
3. EARNINGS/(LOSS) PER SHARE
6 months 6 months
ended ended Year ended
30 June 30 June 31 December
2003 2002 2002
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
These have been 347 (268) 2,201
calculated on
earnings of:
================== ================== ==================
'000 '000 '000
The weighted average
number of shares used
was:
Basic 18,690 18,690 18,690
Share option 45 40 14
adjustment
------------------ ------------------ ------------------
Diluted 18,735 18,730 18,704
================== ================== ==================
4. NET FUNDS
The net funds at 30 June 2003 amounted to #4,195,000 (31 December
2002: #113,000; 30 June 2002: #1,951,000 net borrowings).
NOTES TO THE INTERIM STATEMENTS
for the six months ended 30 June 2003
5. NET CASHFLOW FROM OPERATING ACTIVITIES
6 months 6 months
ended ended Year ended
30 June 30 June 31 December
2003 2002 2002
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Operating loss (450) (292) (1,012)
Depreciation and 99 315 539
amortisation
Loss on disposal of - 18 -
fixed assets
Decrease in stocks 1,418 1,719 2,075
and debtors
(Decrease) in (1,005) (2,150) (461)
creditors
Exchange difference 49 14 29
on consolidation
------------------ ------------------ ------------------
111 (376) 1,170
================== ================== ==================
6. POST BALANCE SHEET EVENT
On 30 July 2003 the entire share capital of Radamec Defence Systems
Limited was sold to Ultra Electronics Limited for a total cash consideration of
#6m.
7. INTERIM REPORT
This interim report was approved by the Board on 26 September
2003. It has been prepared using accounting policies that are consistent with
those adopted in the statutory accounts for the year ended 31 December 2002.
The above information does not constitute statutory accounts as
defined by section 240 of the Companies Act 1985.
The figures for the year to 31 December 2002 were derived from the
statutory accounts for that year. The statutory accounts for the year ended 31
December 2002 have been delivered to the Registrar of Companies and received an
audit report which was unqualified and did not contain statements under s237(2)
or (3) of the Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange
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