Final Results
June 20 2001 - 3:00AM
UK Regulatory
RNS Number:5425F
Innovision Research&Technology PLC
20 June 2001
Innovision Research & Technology plc
Preliminary Results for the year ended 31 March 2001
Innovision Research and Technology, the electronics technology solutions
provider, recently listed on AIM, announces its results for the year ended 31
March 2001.
Highlights
* Turnover for the year up 21% to #2.3m
* Significant investment made during the year in staff and management
(staff numbers up 46% to 38 heads)
* Investment in Research and Development up 49% to #404,000 with 17 new
patents applied for.
* Successful flotation on AIM achieved shortly after year end raising #
9.3m net of expenses.
* Operating profit for the year was #272,000 (2000: #578,000)
Commenting on the results, Barton Clarke, CBE, Chairman said,
"The foundations of our next stage of growth were firmly laid during the year.
I look forward to the coming year with great confidence in the people and
potential of Innovision Research & Technology."
Ends
Chairman's statement and financials are attached.
For further information please contact
Innovision Research & Technology plc
Mike Wroe, Finance Director 0118 936 6311
College Hill 020 7457 2020
Matthew Smallwood
Innovision Research & Technology plc
CHAIRMAN'S STATEMENT
for the year ended 31 March 2001
I am delighted to be presenting my first statement as Chairman of Innovision
Research & Technology plc at such an exciting stage in the development of the
Company. During the year under review, the Company continued to grow its
revenues, with turnover up 21 per cent., whilst at the same time accelerating
investment in people and technologies to facilitate future growth.
The flotation of the Company on the Alternative Investment Market of the
London Stock Exchange took place after the year-end (6th April 2001). However,
the foundations of our next stage of growth were firmly laid during the year.
The Board was strengthened during the year with the addition of three
directors. Kenneth Taylor, who has considerable City experience, joined the
Board in May 2000 as a Non-Executive with both myself and Michael Wroe, the
Finance Director, joining in September 2000. In addition, the company was
fortunate during the year to recruit a number of high quality new managers and
staff with our overall personnel numbers rising by 46 per cent. (from 26 at 31
March 2000 to 38 at 31 March 2001.)
During the year all staff were awarded share options to enable them to
participate in the future success of the business. Innovision Research &
Technology's success is dependent on the quality and hard work of all its
staff. We have an excellent team and I would like to take this opportunity to
thank everyone in the Company for all their commitment and effort over the
past year.
This investment in additional staff has enabled us to increase research and
development investment by 49 per cent. with 17 new patents applied for in the
year. Our focus on diversifying the Company's customer base and market spread
over the next two years also got off to an excellent start with several new
evaluation licenses and similar contracts signed.
Most notable amongst the many R&D successes during the year were the
development of a silicon chip which can be powered by touch ("Scout"), the
signing of a unique and very exciting agreement with the Defence Evaluation
and Research Agency (DERA) and the completion of a read/write version of the
company's Datalabel RFID tag. This latter development maintains Innovision
Research & Technology at the forefront of RFID tag technology with one of the
world's smallest and lowest cost tags.
The DERA teaming agreement is the first major technology agreement entered
into by the Company. This model of utilising Innovision Research &Technology's
commercialisation skills to exploit the potential of another party's IPR is
one we will seek to replicate with more partners in the future.
On the back of the R&D success, the commercial team has been able to continue
to diversify our customer base. In toys, contracts have been signed with
several European and US companies, which should generate royalties in future
years. These new customers add to and complement our long-standing
relationship with Hasbro in the toy sector.
Equally important, the Company signed a number of evaluation licenses outside
the toy industry, particularly in relation to Datalabel. Amongst the ten such
licenses were Standard Register, the Laird Group plc and Unilever plc. Since
the year end two further evaluation licenses have been signed for Datalabel
and the Board remains confident that a number of evaluation licenses will be
converted to full licenses during the coming year.
Within the RFID market an important announcement was made in May 2001 by the
Uniform Code Council outlining the proposed global standard ('G-Tag') for RFID
tags. The Company is currently working through the standard in detail and is
evaluating the best route to exploit this potential opportunity.
The increase in staff numbers, growth in resources and development of new
technologies noted above meant that administrative expenses, (up 63 per cent.
to #1.9 million,) increased more than turnover during the year reflecting the
investment made for future growth, but resulted in a fall in operating profits
from #578,000 to #272,000 with an equivalent fall in earnings per share (basic
EPS: 1.06p (2000: 1.83p) diluted EPS: 1.06p (2000: 1.83p)).
As previously mentioned, the Company completed its flotation on AIM on the 6th
April 2001. This raised #9.3m for the business net of expenses and provides us
with the capital required to make the significant investment necessary to
further develop our technology portfolio, exploit technology partnerships such
as that with DERA and ensure that we are able to take advantage of our many
commercial opportunities including Datalabel.
The announcement on 21st April 2001 of a Queen's Award for Enterprise:
Innovation for Datalabel, was a great achievement and we are all extremely
proud to have been honoured in this way. I congratulate the whole team for
this success.
I look forward to the coming year with great confidence in the people and
potential of Innovision Research & Technology.
Barton Clarke CBE
Innovision Research & Technology plc
PROFIT AND LOSS ACCOUNT
for the year ended 31 March 2001
2001 2000
#'000 #'000
TURNOVER 2,338 1,940
Cost of sales (156) (188)
Gross profit 2,182 1,752
Administrative expenses (1,910) (1,174)
OPERATING PROFIT 272 578
Interest receivable 83 75
PROFIT ON ORDINARY ACTIVITIES BEFORE 355 653
TAXATION
Taxation (40) (185)
PROFIT ON ORDINARY ACTIVITIES AFTER 315 468
TAXATION
Dividends - (528)
RETAINED PROFIT FOR THE YEAR 315 (60)
EARNINGS PER SHARE Pence per share Pence per share
Basic 1.06 1.83
Diluted 1.06 1.83
The operating profit for the year arises from the company's continuing
operations.
No separate Statement of Total Recognised Gains and Losses has been presented
as all such gains and losses have been dealt with in the Profit and Loss
Account.
Innovision Research & Technology plc
BALANCE SHEET
31 March 2001
2001 2000
#'000 #'000
FIXED ASSETS
Tangible assets 173 111
CURRENT ASSETS
Debtors 891 317
Cash at bank and in hand 864 1,912
1,755 2,229
CREDITORS: Amounts falling due within one (440) (1,169)
year
NET CURRENT ASSETS 1,315 1,060
TOTAL ASSETS LESS CURRENT LIABILITIES 1,488 1,171
PROVISIONS FOR LIABILITIES & CHARGES (2) -
NET ASSETS 1,486 1,171
CAPITAL AND RESERVES
Called up share capital 296 31
Share premium 689 954
Profit and loss account 501 186
SHAREHOLDERS FUNDS (including non-equity 1,486 1,171
interests)
Innovision Research & Technology plc
CASH FLOW STATEMENT
for the year ended 31 March 2001
2001 2000
#'000 #'000
Net cash (outflow)/inflow from operating (803) 716
activities
Returns on investments and servicing of
finance
Interest received 56 75
Net cash flow for returns on investments and 56 75
servicing of finance
Taxation (180) (65)
Capital expenditure and financial investment
Purchase of tangible fixed assets (126) (89)
Sale of tangible fixed assets 5 -
Loans to directors - 500
Net cash flow for capital expenditure and (121) 411
servicing of finance
Equity dividends paid - (528)
Cash (outflow)/inflow before use of liquid (1,048) 609
resources and financing
Management of liquid resources
Decrease/(increase) in treasury deposit 950 (1,350)
account
Financing
Proceeds from share issue - 500
Decrease in cash in year (98) (241)
Reconciliation of net cash flow to movement
in net funds
Decrease in cash in year (98) (241)
Opening net funds 112 353
Closing net funds 14 112
Innovision Research & Technology plc
FINANCIAL REVIEW NOTES
for the year ended 31 March 2001
1. The financial information contained in this document does not constitute
statutory accounts within the meaning of section 240 of the Companies Act
1985. The figures for the year ended 31 March 2001 have been extracted
from the annual accounts on which the auditors have issued an unqualified
report. Statutory accounts for the year to 31 March 2000 have been filed
with the registrar of companies. The audited statutory accounts for the
year ended 31 March 2001 will be delivered to the Registrar of Companies
and shareholders in due course.
2. The Directors do not recommend the payment of a dividend.
3. Accounting Policies
All accounting policies adopted are consistent with those applied in prior
years.
Turnover
Turnover represents income earned for the accounting period in accordance
with the principles set out below, exclusive of Value Added Tax.
Development fees earned from customers are recognised as income in the
period during which the development work is carried out. License fees are
recognised as income over the period during which the Company is obliged
to provide services to the customer pursuant to the terms of the license.
Royalties are computed by reference to product sales achieved by customers
and are recognised as income of the Company in the period in which the
product sales take place. Advanced royalties are included in creditors and
released to income as customers achieve product sales, except that where
advanced royalties are not refundable to the customer the balance of the
royalties is released to income if production of a product never commences
or if sales of a product become insignificant. Guaranteed royalty amounts
not directly related to sales volume are treated as income of the
guarantee period specified in the contracts.
4. Taxation
The tax charge for the year was reduced by #31,000 (2000: #nil) as a
result of the impact of additional tax credits on research and development
expenditure.
5. Earnings per share has been calculated based on the provisions of Financial
Reporting Standard 14 - 'Earnings per share'. Basic earnings per share has
been calculated by dividing the profit for the year of #315,000 (2000: #
468,000) by the weighted average number of shares in issue during the year
after taking account of the various share reorganisations described in
note 13. During the year the weighted average number of shares in issue
was 29,629,600 (2000: 25,578,700).
Diluted earnings per share has been calculated by dividing the profit for
the year of #315,000 (2000: #468,000) by the weighted average number of
shares referred to above, plus the weighted average number of shares
available under share options outstanding during the period. On this
basis, during the year the weighted average number of shares in issue was
29,629,600 (2000: 25,578,700).
6. Share Capital - Movements
On 17 November 2000, all of the 125,000 'D' ordinary shares were gifted to
the Company. These were subsequently cancelled on 8 March 2001 by the
Company on becoming a public limited company.
On 16 January 2001, all of the issued and authorised but unissued 'A', '
B', 'C' and 'D' ordinary shares of 1p each in the capital of the Company
were converted into and reclassified as ordinary shares of 1p each forming
one uniform class in all respects and having the rights set out in the
articles of association.
On 22 February 2001, a resolution was passed to increase the authorised
share capital from 11,100,000 ordinary shares of 1p each to 50,000,000
ordinary shares of 1p each and to rank pari passu with the existing
ordinary shares of 1p.
On 22 February 2001, 27,791,640 ordinary shares of 1p were allotted and
issued representing a bonus issue of 9 ordinary shares for each existing
ordinary shares of 1p held. This increased the issued ordinary share
capital to 30,879,600. As a result of this transaction #277,916 was
debited to the share premium account.
On 8 March 2001 1,250,000 ordinary shares (formerly 'D' shares as referred
to above) were cancelled, reducing the issued ordinary share capital to
29,629,600 shares. As a result of this cancellation #12,500 was credited
to the share premium account.
On 28 March 2001, a resolution was passed to increase the authorised share
capital from 50,000,000 ordinary shares of 1p each to 60,000,000 ordinary
shares of 1p each and to rank pari passu with the existing ordinary shares
of 1p.
Innovision Research & Technology plc
FINANCIAL REVIEW NOTES
for the year ended 31 March 2001
7. Notes to the Cashflow Statement
2001 2000
#'000 #'000
A Reconciliation of operating profit to net
cash inflow/(outflow) from operating
activities
Operating profit 272 578
Depreciation 58 39
(Profit)/loss on sale of fixed assets 1 4
Increase in debtors (548) (65)
(Decrease)/increase in creditors (586) 160
Net cash (outflow)/inflow from operating (803) 716
activities
B Analysis of change of net funds in year
Opening cash at bank and in hand 112 353
Decrease in cash in year (98) (241)
Closing cash at bank and in hand 14 112
During the year ended 31 March 1999 the directors declared and paid an
interim dividend of #500,000. On applying the Company's accounting policy
for the recognition of turnover, it transpired that there were
insufficient distributable reserves to cover this dividend, which was
therefore treated as an interest-free advance to the directors and
disclosed in "other debtors". The loan was discharged by the dividend
declared in the year ended 31 March 2000.
8. Post Balance Sheet Events
On the 6th April 2001 the company issued 9,900,990 new 1p ordinary shares
at 101p each as part of a placing of shares and admission to the
Alternative Investment Market of the London Stock Exchange on that same
day. The placing realised #9.3m net of expenses.
9. This statement was approved by the Board of Directors on 19th June 2001.
Innovision Research&technology (LSE:INN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Innovision Research&technology (LSE:INN)
Historical Stock Chart
From Jul 2023 to Jul 2024
