TIDMDSN
RNS Number : 1522L
Densitron Technologies PLC
31 August 2012
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 30(th) June 2012.
Highlights
-- Revenue decreased by 6.2% to GBP10.6m (2011: GBP11.3m).
-- Orders booked increased by 4.5% to GBP11.7m (2011:
GBP11.2m).
-- Interim dividend declared of 0.2p per share (2011: 0.2p)
Financial Highlights on continuing operations
6 months to 6 months to
30(th) June 2012 30(th) June 2011
Unaudited Unaudited
------------------------ ------------------ ------------------
Revenue GBP10.55m GBP11.28m
------------------------ ------------------ ------------------
Profit from operations GBP0.06m GBP0.54m
------------------------ ------------------ ------------------
Profit before taxation GBP0.04m GBP0.50m
------------------------ ------------------ ------------------
(Loss)/earnings per
share (0.11)p 0.52p
------------------------ ------------------ ------------------
Orders booked GBP11.7m GBP11.2m
------------------------ ------------------ ------------------
Enquiries:
Densitron Technologies plc
Grahame Falconer / Tim Pearson
Tel: 0207 648 4200
Westhouse Securities Limited
Tom Price
Tel: 020 7601 6100
Chairman's Statement
The first six months of 2012 have demonstrated the importance
for the business to continue to evolve and grow. We have seen
certain parts of the business continue to increase their market
share while other parts have seen existing business mature and new
business take longer to secure. The orders booked in the period
have remained robust but the revenue generated is down on where we
expected to be at the end of the first half of the year. However,
new markets and new product introductions give optimism for the
medium and long term future of the business while the order book
and pipeline give confidence to the nearer term.
The orders booked in the first half of 2012 were GBP11.7m
compared with GBP11.2m booked in the first half of 2011, a growth
of 4.5%.
Revenue in the first half of the year was GBP10.6m compared to
GBP11.3m in the first half of 2011, a fall of 6.2%. This was due to
lower orders booked in the third quarter of 2011 and several
significant orders anticipated to be booked and shipped in the
first half of 2012 being delayed until later in the year. Gross
profit achieved fell from GBP3.3m to GBP3.1m, a decrease of
6.1%.
As a result of the reduction in revenue during the first half of
the year and the increase in overheads, which is partly due to the
new office opened in India at the beginning of the year, the
Group's profit from operations has fallen from GBP0.54m achieved in
2011 to GBP0.06m achieved in 2012. However, together with the
strength of the pipeline and the continued growth in orders booked
in July and August we are confident that the results for the full
year will materially exceed those achieved in 2011 and we remain
hopeful of achieving the market expectation for 2012.
Operational review
The Group's operations are primarily the design, development,
marketing and selling of electronic displays.
European business - In terms of orders, revenue and gross
profit, the European operations have had a disappointing first half
of the year. Orders grew from GBP5.7m in 2011 to GBP5.8m in 2012,
revenues fell from GBP5.9m in 2011 to GBP5.2m in 2012 and gross
profit fell from GBP1.5m in 2011 to GBP1.4m in 2012. However, the
European operations will show a significant return in the second
half of the year from business that has already been booked and
together with business that is forecast to be booked and shipped in
the second half is expected to be ahead of the result achieved in
2011.
US Business - The US business has remained relatively flat
compared with 2011. Orders booked in 2012 were GBP4.0m compared
with GBP4.1m in 2011, revenues were GBP3.8m compared with GBP4.0m
in 2011 and gross profit was GBP1.0m in 2012 compared with GBP1.1m
in 2011.
Asian business - The Asian business is made up of Densitron
Corporation of Japan and Densitron Display Taiwan and has continued
to grow compared with 2011. Orders booked in 2012 were GBP1.9m
compared with GBP1.4m in 2011, revenues were GBP1.6m compared with
GBP1.4m in 2011 and gross profit was GBP0.7m compared with GBP0.7m
in 2011.
Blackheath
This is the 1.25 acre strip of land in Blackheath, London, for
which the Group is seeking planning permission.
We are continuing to explore the existing use rights on the site
and are working on the reclassification of the site through the
Local Development Framework. We will keep shareholders informed
when there is further information.
Claim against the Company
We outlined in the 2011 Annual Report that the Company had been
served with a writ in respect of unpaid rent relating to a property
occupied by a former group company. We continue to defend the
Company against this claim and have opened a dialogue on a without
prejudice basis with the Plaintiff in an attempt to bring the
matter to a conclusion. We will advise shareholders when there are
further developments.
Dividend
The Board of Directors is pleased with the overall progress that
the business is making and considers that, based on the expectation
of the results in the second half the year, it is appropriate to
make an interim dividend payment. Consequently, I am pleased to
declare an interim dividend of 0.2p per share, which is the same as
the interim dividend paid based on the results of the first half of
2011. The dividend will be paid to shareholders on the register on
14 September 2012. The Company's shares will trade 'Ex-dividend' on
12 September 2012 and the proposed payment date is 5 October
2012.
Outlook and strategy
I outlined in the 2011 Annual Report our strategy for the
business
-- Increase in market share - we continue to work on increasing
market share from our existing product offerings. While we have
seen a dip in the revenues generated in the first half of 2012 the
orders booked have grown and the opportunities being worked on and
forecast to be booked in the second half continue to grow.
-- Geographical expansion of the business - we opened an office
in India at the beginning of 2012 and I am pleased to report that,
while we do not expect to generate significant levels of business
this year due to the time it takes to develop a market and its
opportunities, it is clearly a market in which we can operate
successfully. We have already started to take development orders
and this is the first stage in the business cycle. We would expect
to see production orders during 2013.
-- Introduction of new products - We continue to work with our
suppliers to ensure that we are able to offer our customers the
widest range of products as possible to meet their
requirements.
-- Creation of value by development of products and intellectual
property - We are continuing to work on a number of projects to
create intellectual property within the group. This is important
for the development of the business as it will differentiate
Densitron from its competitors and also secure margins in the
highly competitive markets in which we operate. We have created our
own range of displays and touch screens that are branded as
Densitron. In addition the Group has created a suite of software to
enable our customers to develop their own high quality graphics
quickly and effectively and this will be launched at a major
exhibition in Germany in November.
With the work that has been carried out and continues to be
undertaken I am confident that the business is moving in the right
direction. Developing new markets and introducing new products
always take time so we knew that we would not see results from
these initiatives immediately, but the indications are that they
will stand the business in good stead to grow into 2013 and
beyond.
Jan G Holmstrom
Chairman
31 August 2012
Unaudited Condensed Consolidated Income Statement
For the six months ended 30th June 2012
6 months 6 months Year to
to 30(th) to 30(th) 31st December
June June 2011
2012 2011 Audited
GBP000
GBP000 GBP000
Continuing operations
Revenue 10,554 11,276 23,130
Cost of sales (7,472) (7,953) (16,274)
----------- ----------- ---------------
Gross profit 3,082 3,323 6,856
Other operating income 1 93 78
Distribution costs (32) (37) (72)
Administrative expenses (2,987) (2,835) (5,769)
Profit from operations 64 544 1,093
Financial income - 1 1
Financial expenses (23) (41) (33)
----------- ----------- ---------------
Profit before tax 41 504 1,061
Income tax expense (118) (143) (245)
----------- ----------- ---------------
(Loss)/profit for the period (77) 361 816
----------- ----------- ---------------
Attributable to:
Equity holders of the parent (73) 361 818
Non-controlling interest (4) - (2)
----------- ----------- ---------------
(77) 361 816
----------- ----------- ---------------
Basic and diluted (loss)/earnings
per share (0.11)p 0.52p 1.18p
----------- ----------- ---------------
Unaudited Condensed Statement of Comprehensive Income
For the six months to 30th June 2012
6 months 6 months Year to
to to 31st December
30th June 30th June 2011
2012 2011 Audited
GBP000
GBP000 GBP000
(Loss)/profit for the period (77) 361 816
----------- ----------- ---------------
Other comprehensive income:
Foreign currency translation differences
for foreign operations (186) (151) 50
Total other comprehensive (loss)/income (186) (151) 50
----------- ----------- ---------------
Total comprehensive (loss)/income
for the period (263) 210 866
----------- ----------- ---------------
Attributable to:
Equity holders of the parent (259) 208 870
Non-controlling interest (4) 2 (4)
(263) 210 866
----------- ----------- ---------------
Unaudited Condensed Consolidated Balance Sheet
As at 30th June 2012
30th June 30th June 31st December
2012 2011 2011
Audited
GBP000
GBP000 GBP000
Non-current assets
Property, plant and equipment 821 744 806
Goodwill 143 143 143
Other intangible assets 203 97 174
Deferred tax assets 9 4 48
---------- ---------- --------------
1,176 988 1,171
---------- ---------- --------------
Current assets
Inventories 1,252 1,530 1,311
Trade and other receivables 4,617 4,826 4,673
Financial assets - 45 74
Income tax recoverable 121 121 130
Cash and cash equivalents 1,802 2,106 1,809
---------- ---------- --------------
7,792 8,628 7,997
---------- ---------- --------------
Total assets 8,968 9,616 9,168
---------- ---------- --------------
Current liabilities
Borrowings 1,604 1,423 1,694
Trade and other payables 2,909 3,734 2,503
Current tax payable 107 169 232
Provisions 64 59 134
---------- ---------- --------------
4,684 5,385 4,563
---------- ---------- --------------
Non-current liabilities
Borrowings 12 15 25
Provisions 118 121 117
Deferred tax liabilities - - 44
---------- ---------- --------------
130 136 186
---------- ---------- --------------
Total liabilities 4,814 5,521 4,749
4,154 4,095 4,419
---------- ---------- --------------
Equity
Share Capital 697 697 697
Retained earnings 2,839 2,771 2,907
Special reserve 102 116 107
Revaluation reserve 450 450 450
Translation reserve 37 20 223
---------- ---------- --------------
Equity attributable to shareholders
of Densitron 4,125 4,054 4,384
Minority interests 29 41 35
Total equity 4,154 4,095 4,419
---------- ---------- --------------
Unaudited Condensed Statement of Changes in Shareholders
Equity
For the 6 months to 30th June 2012
Share Translation Special Revaluation Retained Total Non-controlling Total
capital reserve reserve reserve earnings Attributable interest equity
to equity
holders
of the GBP000
GBP000 GBP000 GBP000 GBP000 GBP000 parent GBP000
GBP000
Balance at
1 January
2011 3,483 171 117 450 3,082 7,303 39 7,342
Profit for
the period - - - - 360 360 - 360
Total
comprehensive
income for
the period - (151) - - - (151) 2 (149)
Capital
reduction (2,786) - - - 2,806 20 - 20
Return of
capital
to
shareholders - - - - (2,786) (2,786) - (2,786)
Dividend - - - - (692) (692) - (692)
Transfer from
special
reserve - - (1) - 1 - - -
-------- ------------ -------- ------------ ---------- ------------- ---------------- ----------
Balance at
30 June 2011 697 20 116 450 2,771 4,054 41 4,095
Profit for
the period - - - - 458 458 (2) 456
Other total
comprehensive
income for
the period - 203 - - - 203 (4) 199
Payment of
dividend - - - - (276) (276) - (276)
Costs
associated
with the
capital
reduction - - - - (55) (55) - (55)
Transfer from
special
reserve - - (9) - 9 - - -
-------- ------------ -------- ------------ ---------- ------------- ---------------- ----------
Balance at
31 December
2011 697 223 107 450 2,907 4,384 35 4,419
Profit for
the period - - - - (73) (73) (4) (77)
Other total
comprehensive
income for
the period - (186) - - - (186) (2) (188)
Transfer from
special
reserve - - (5) - 5 - - -
-------- ------------ -------- ------------ ---------- ------------- ---------------- ----------
Balance at
30 June 2012 697 37 102 450 2,839 4,125 29 4,154
-------- ------------ -------- ------------ ---------- ------------- ---------------- ----------
Unaudited Condensed Consolidated Cash Flow Statement
For the 6 months ended 30th June 2012
6 months 6 months Year to
to to 31st December
30th June 30th June 2011
2012 2011 Audited
GBP000
GBP000 GBP000
Cash flows from operating activities
Profit before taxation 41 504 1,061
Adjustments for:
Depreciation 37 29 60
Amortisation 11 - -
Net finance expense 23 40 32
112 573 1,153
Change in financial asset - (45) (74)
Change in inventories 37 (198) 23
Change in trade and other receivables (93) 41 243
Change in trade and other payables 428 61 (928)
Change in provisions (69) 29 100
----------- ----------- ---------------
415 461 517
Income tax paid (237) (138) (299)
Net cash from operating activities 178 323 218
----------- ----------- ---------------
Cash flows from investing activities
Interest received - 1 1
Disposal of discontinued operation 74 165 165
Payment for intangible assets (41) (10) (87)
Acquisition of plant, property and
equipment (56) (23) (111)
(23) 133 (32)
----------- ----------- ---------------
Cash flows from financing activities
Inception of new loans 26 - 83
Repayment of borrowings - (9) (24)
Interest paid (23) (41) (33)
Change in trade finance creditor (269) (701) (675)
Change in letters of credit 18 (200) (128)
Repayment of capital to owners of
the Company - (2,766) (2,821)
Dividends paid to owners of the
Company - (692) (968)
Net cash (used in)/generated from
financing activities (248) (4,409) (4,566)
----------- ----------- ---------------
Net (decrease)/increase in cash
and cash equivalents (93) (3,953) (4,380)
Cash and cash equivalents at 1(st)
January 1,616 6,002 6,002
Effect of exchange rate fluctuation
on cash held (36) (22) (6)
Cash and cash equivalents at the
end of the period 1,487 2,027 1,616
----------- ----------- ---------------
Notes to the Unaudited Condensed Financial Statements
For the six months ended 30th June 2012
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 4(th) 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
2012 and are unchanged from those disclosed in the group's Annual
Report for the year ended 31 December 2011.
The financial information for the six months ended 30 June 2012
and 30 June 2011 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 2011 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
(GBP'000) except when otherwise indicated.
3. Segmental analysis
UK France Finland Germany US Japan Taiwan Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
6 months to 30 June
2012
Revenue
Total 3,470 1,245 284 929 3,834 1,346 2,881 13,989
Intercompany (712) (33) (50) - (36) - (2,604) (3,435)
-------- -------- -------- -------- -------- -------- -------- ---------
Revenue from
external customers 2,758 1,212 234 929 3,798 1,346 277 10,554
-------- -------- -------- -------- -------- -------- -------- ---------
Profit/(loss)
before tax (49) (10) (22) 2 283 160 (39) 325
-------- -------- -------- -------- -------- -------- -------- ---------
6 months to 30 June
2011
Revenue
Total 3,740 1,694 266 980 4,101 1,188 3,530 15,499
Intercompany (764) (28) - - (134) - (3,297) (4,223)
-------- -------- -------- -------- -------- -------- -------- ---------
Revenue from
external customers 2,976 1,666 266 980 3,967 1,188 233 11,276
-------- -------- -------- -------- -------- -------- -------- ---------
Profit/(loss)
before tax 86 33 2 21 421 171 41 775
-------- -------- -------- -------- -------- -------- -------- ---------
Year to 31 December
2011
Revenue
Total 7,794 3,516 472 2,328 7,997 2,434 7,045 31,586
Intercompany (1,703) (50) (21) - (158) - (6,524) (8,456)
-------- -------- -------- -------- -------- -------- -------- ---------
Revenue from
external customers 6,091 3,466 451 2,328 7,839 2,434 521 23,130
-------- -------- -------- -------- -------- -------- -------- ---------
Profit/(loss)
before tax 338 81 (14) 55 779 306 71 1,616
-------- -------- -------- -------- -------- -------- -------- ---------
Reconciliation of reportable segments, profit and loss, assets and
liabilities to the Group's corresponding amounts:
6 months 6 months Year to 31st
to 30th June to 30th June December
2012 2011 2011
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Revenue
Total revenue for reported segments 13,989 15,499 31,856
Elimination of inter-segmental revenues (3,435) (4,223) (8,456)
-------------- -------------- -------------
Group's revenue per consolidated statement
of comprehensive income 10,554 11,276 23,130
-------------- -------------- -------------
Profit after income tax expenses
Total profit for reporting segments 325 775 1,616
Costs associated with Head Office (284) (271) (555)
Income tax expenses (118) (143) (245)
-------------- -------------- -------------
(Loss)/profit after income tax expenses (77) 361 816
-------------- -------------- -------------
4. Taxation
Taxation for the 6 months ended 30(th) June 2012 has been
calculated by applying the estimated tax rate for the current
financial year ending 31(st) December 2012.
5. Dividend
An interim dividend of 0.2 pence per share has been proposed by
the Board in respect of the six months to 30 June 2012 (2011: 0.2
pence).
6. Earnings per share
6 months 6 months Year to
to to 30th 31st December
30th June June 2011
2012 2011 Audited
Unaudited Unaudited GBP000
GBP000 GBP000
Profit attributable to ordinary shareholders
Profit on continuing operations attributable
to ordinary shareholders (73) 361 818
------------- ------------- ---------------
Weighted average number of ordinary
shares
Issued at 1 January 2012 69,669,106 69,669,106 69,669,106
Effect of purchase of Treasury shares
on 23(rd) October 2008 (500,000) (500,000) (500,000)
------------- ------------- ---------------
Weighted average number of ordinary
shares at
30(th) June 2012 69,169,106 69,169,106 69,169,106
------------- ------------- ---------------
7. 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 hard copy of the interim report they should contact the Company
Secretary, Tim Pearson.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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