TIDMOPE
RNS Number : 8544T
Optare PLC
19 December 2012
Optare plc
("Optare", the "Company" or the "Group")
Interim Results for the six months ended 30 September 2012
CORPORATE STATEMENT
Optare plc (AIM: OPE), is pleased to announce its results for
the six months ended 30 September 2012. A leading name in the UK
bus industry, Optare specialises in the design, manufacture and
supply of city buses, is a leader in low carbon bus technology and
offers a comprehensive after-sales service.
OPERATIONAL HIGHLIGHTS*
-- Year on year UK market registrations up 46% for the 6 months ending September 2012;
-- Export sales revenues reached a record GBP10.5m for the 6 months in FY 2013; and
-- In the quarter from July to September, Optare achieved the
significant milestone of turning an EBITDA profit of GBP146,000
-- Continued investments made in low carbon product
developments, recognised recently by winning the Society of Motor
Manufacturers and Traders prestigious annual Innovation Award for
our fast charging Versa Electric Bus, launched in June this
year.
FINANCIAL HIGHLIGHTS*
-- Sales revenues increased 106% from GBP22.7m (H1: 2011) to GBP46.7m in H1 FY 2013 ;
-- Direct labour reduced from 15.2% (H1: 2011) to 7.9% (H1
FY2013) and administration costs (for the same period) reduced from
23.7% to 10.2% of sales revenues due to benefits of restructuring,
factory consolidation and higher revenues;
-- EBITDA losses reduced by 54% from GBP2.54m (H1: 2011) to
GBP1.18m (H1 FY2013). However these losses were incurred during the
first quarter (April to June 2012) before completing closure and
clearance of the Blackburn site, sale of the balance of the
Rotherham site and full ramp-up in sales output as part of the
turnaround plan; and
-- Loss per share reduced from 0.6p to 0.1p
* During the year the Company's accounting reference date was
changed from 31 December to 31 March. Accordingly, references
throughout to H1 2011 are for the period from 1 January 2011 to 30
June 2011 and references to H1 FY2013 are for the period from 1
April 2012 - 30 September 2012.
Commenting on the interim results and the 3 year turnaround,
Chief Executive Officer, Jim Sumner said;
"I am delighted with the significant progress we have made
against the turnaround plan and would like to take this opportunity
to thank the Board for their support and the efforts and commitment
of the entire organisation over what has been a very challenging
period for the business. I have every confidence that Optare will
go from strength to strength as part of Ashok Leyland's global
business."
For further information:
Optare plc Tel: +44 (0) 8434 873 200
Jim Sumner - Chief Executive
Cenkos Securities plc Tel: +44 (0) 20 7397 8900
Stephen Keys/Camilla Hume
CHAIRMAN'S STATEMENT
As the board anticipated, Q2 of FY 2013 (Jul to Sept 2012) saw
the company achieve a positive EBITDA for the first time following
execution of the key turnaround actions. In addition we continued
to invest in new factory and product developments and the Group is
now positioned to increase UK and export sales in both retail and
fleet segments. Finally could I take this opportunity to again
thank Jim for the outstanding job he has done and wish him all the
very best in the future.
John Fickling,
Non Executive Chairman 17(th) December 2012
BUSINESS AND FINANCIAL REVIEW
-- Turnover for the 6 months ended 30 September 2012 was
GBP46.7m (H1 2011: GBP22.7m) due to increased sales of Hybrid and
Electric buses in the UK and export sales to South Africa;
-- Direct labour costs reduced to 7.9% (H1 2011:15.2%) and
administration costs reduced to10.2% (H1 2011:23.7%) of sales
revenues in the 6 months to September 2012 due to benefits of
restructuring, factory consolidation and higher revenues;
-- Sale of the balance of the Rotherham site was completed in
June 2012 for a gross consideration of GBP1.0m;
-- Exceptional costs in the 6 months to 30 September 2012
totalled GBP1.1m (H1 2011: GBP0.9m), principally comprising of the
Blackburn and Rotherham property closures and clearance costs
(GBP0.6m), stock write downs (GBP0.2m) and other restructuring
costs (GBP0.2m). With all the factory closures completed,
exceptional costs moving forward are expected to be significantly
reduced;
-- The Board has continued to invest in the long-term future of
the business with capital expenditure in the 6 months to 30
September 2012 of GBP1.0m (H1 2011: GBP1.2m). The expenditure was
principally on product development and facility investments at the
new Sherburn site.
-- Optare's banking arrangements are supported by HSBC and
Barclays with a total working capital facility available for
utilization of GBP15m. All banking facilities are backed by an
Ashok Leyland corporate guarantee.
-- Pre-exceptional loss per share for the period was reduced to
0.15p (H1 2011:0.71p). Loss per share before exceptional costs was
0.10p (H1 2011:0.57p)
Current trading and prospects
-- Order book at the end of September 2012 was GBP19.4m. This
current lower level of order is in part a reflection of the shorter
lead-times being achieved at the new factory in Sherburn. Optare is
also currently awaiting news on the UK Group tenders for 2013 which
are planned to be announced in coming months.
-- The first 30 buses built in South Africa have now entered
service and a total of 98 buses have been built against the initial
contract of 190 buses. A further order for an additional 31 buses
is under discussion for delivery before June 2013;
-- Optare launched 3 new products at the Euro Bus 2012 show at
the NEC Birmingham in November 2012. These are targeting fleet
opportunities with major UK groups and also the London market. In
addition, successful shows in Sweden and Germany and a product
launch in South Africa have generated a number of positive
enquiries and prospects;
-- Plans have been made to build a number of Optare
demonstration units for the Middle Eastern market in Ashok's RAK
facility close to Dubai. This is seen as an important target market
to support growth outside the UK;
-- Optare also expects to put its first mechanical hybrid bus
into service with a major operator in Q2 2013.
-- The Board believes that its investments in developing
Electric buses are well timed and we now have a substantial lead on
the competition. With increasing fuel costs along with more costly
and complicated technology needed to reduce tail-pipe emissions,
Electric buses make increasing commercial sense and offers a key
growth opportunity.
-- Changes to working patterns at the Sherburn factory are
planned to be implemented by management on the 2nd January 2013
after extensive consultations with the workforce, union members and
ACAS. These will further improve efficiencies and provide greater
flexibility to meet customer requirements.
-- Material cost reductions of GBP900 per bus have been made
during the first half of FY 2013. The benefit of Ashok Leyland's
purchasing leverage is gaining momentum and a further GBP3000 per
bus is targeted in the second half of the financial year.
Concurrent to the continuing efforts on fixed cost and direct
labour cost reductions, the thrust is now firmly on material cost
reductions and revenue growth to achieve sustainable profit
improvements.
Board and management changes
-- As previously announced, Jim Sumner will be stepping down as
CEO and Director on the 31 December 2012. He will be succeeded by
Per Gustav Nilsson (known as "PG"), a current non-executive
director and head of Ashok Leyland's International Operations. PG
has considerable experience in the industry having held positions
as Managing Director of Scania CIS, followed by four years as
Managing Director of MAN Russia. PG brings a wealth of business
development and sales experience in export markets to support
Optare's growth strategy.
Outlook
-- Notwithstanding the current poor economic sentiments, the
Board still anticipates an increase in UK demand, particularly for
single deck buses in 2013 and 2014, driven by DDA legislation and
an expected pre-buy of buses ahead of Euro VI emission legislation.
However an increasing proportion of sales moving forward are
planned to come from Export markets to de-risk current dependency
on a cyclical UK market.
-- While economic conditions remain challenging, the Board
believes it has taken the right long-term decisions during the
turnaround and restructuring to enable the business to grow and
looks forward to 2013 and beyond with confidence.
Consolidated income statement for the six months ended 30th
September 2012 (unaudited)
Unaudited Unaudited Audited
Six month
period Six month 15 month
ended period period ended
30 September ended 30 31 March
2012 June 2011 2012
GBP000's GBP000's GBP000's
Revenue 46,692 22,749 71,935
Cost of Sales
non exceptional (43,390) (20,268) (68,370)
exceptional (774) (3,823)
total (44,164) (20,268) (72,193)
--------------- ----------------- --------------
Gross profit/(Loss) 2,528 2,481 (258)
% 5.4% 10.9% -0.4%
Administrative expenses (4,765) (5,381) (11,305)
Amortisation of intangibles (334) (325) (422)
Restructuring and other
exceptional costs (314) (896) (776)
--------------- ----------------- --------------
Loss from operations (2,885) (4,121) (12,761)
Finance income 154 222
Finance costs (416) (433) (853)
Loss for the period from
continuing operations (3,301) (4,400) (13,392)
Loss on ordinary activities
before taxation (3,301) (4,400) (13,392)
Taxation - -
Loss attributable to the
equity holders of the parent
company (3,301) (4,400) (13,392)
--------------- ----------------- --------------
From continuing operations
after exceptional items
(basic and diluted) (0.15)p (0.71)p (1.40)p
From continuing operations
before exceptional items
(basic and diluted) (0.10)p (0.57)p (0.90)p
There were no recognised gains or losses in the period other
than the profit for the period and therefore no statement of
recognised income and expenses is presented.
Consolidated balance sheet as at 30th September 2012
(unaudited)
Unaudited Unaudited Audited
Six month Six month
period ended period 15 month
30 September ended period
2012 30 June ended 31
2011 March 2012
GBP000's GBP000's GBP000's
Non-current assets
Goodwill 8,574 8,574 8,574
Other intangible assets 8,289 7,160 8,032
Property, plant equipment 3,258 2,524 3,126
20,121 18,258 19,732
--------------- ------------------------------ --------------
Current assets
Inventories 6,408 10,549 11,275
Trade and other receivables 5,701 5,217 8,143
Cash & Cash Equivalents 1,745 - 587
13,854 15,766 20,005
--------------- ------------------------------ --------------
Asset held for resale - 1,004 1,000
Total assets 33,975 35,028 40,737
--------------- ------------------------------ --------------
Current liabilities
Trade and other payables 16,228 20,802 20,166
Loans and overdrafts 15,708 3,025 15,207
Current provisions 1,400 909 1,405
Obligations under finance leases 55 23 49
33,391 24,759 36,827
--------------- ------------------------------ --------------
Non current liabilities
Bank loans - 1,264 -
Provisions 1,062 1,423 1,053
Obligations under finance leases 211 22 245
1,273 2,709 1,298
--------------- ------------------------------ --------------
Total liabilities 34,664 27,468 38,125
--------------- ------------------------------ --------------
(Net Liabilities)Net Assets (689) 7,560 2,612
--------------- ------------------------------ --------------
Equity
Called up share capital 9,005 7,521 9,005
Share premium 29,965 29,967 32,396
Share based payment reserve 198 49 198
Merger reserve 5,542 5,542 5,542
Retained loss (45,399) (35,519) (44,529)
Total (Defficit)/Equity attributable
to equity holders of the parent (689) 7,560 2,612
--------------- ------------------------------ --------------
Consolidated Cash flow Statement for the six month period
ended 30(th) September 2012 (unaudited)
Unaudited Unaudited Audited
Six month
period
ended Six month 15 month
30 period ended period
September 30 June ended 31
2012 2011 March 2012
GBP000's GBP000's GBP000's
Operating activities
Loss before tax (3,301) (4,400) (13,392)
Tax
Depreciation and amortisation 613 689 1,370
Share based payments - - 171
Net finance expense 416 279 631
(Profit)/Loss on disposal of fixed
assets 20 (20) 54
Operating cash flows before movements
in working capital (2,252) (3,452) (11,166)
---------- -------------------------------------- ------------
Movement in inventories 4,867 (2,807) (3,159)
Movement in trade and other receivables 2,442 (443) (3,369)
Movement in trade and other payables (3,941) 3,771 3,135
Movement in provisions 6 (515) (387)
Cash generated/(absorbed by) operations 1,122 (3,446) (14,946)
---------- -------------------------------------- ------------
Interest received 154 222
Interest paid (416) (433) (853)
Net cash flow from operating activities 706 (3,725) (15,577)
---------- -------------------------------------- ------------
Investing activities
Purchase of property, plant and
equipment (478) (575) (1,920)
Internal capitalised costs (542) (614) (1,582)
Proceeds of property sale 1,000 1,016 1,000
Net cash flow from investing activities (20) (173) (2,502)
---------- -------------------------------------- ------------
Financing activities
Loan repayments - (3,236) (3,395)
Proceeds from issuance of ordinary
shares 6,949 10,821
Short term loans (617) 9,995
Hire purchase agreement repayments (28) (23)
Net cash flow from financing activities (645) 3,713 17,398
---------- -------------------------------------- ------------
Net decrease in cash and cash
equivalents 41 (185) (681)
Cash and cash equivalents at the
beginning
of the period (3,401) (2,720) (2,720)
---------- -------------------------------------- ------------
Cash and cash equivalents at the end
of the period (3,360) (2,905) (3,401)
---------- -------------------------------------- ------------
Consolidated statement of changes in equity for the six month
period ended 30 September 2012 (unaudited)
Share
based
Share Share Merger Retained payment
Capital Premium Reserve earnings reserve Total
GBP000's GBP000's GBP000's GBP000's GBP000's GBP000's
Balance at 31st March
2012 9,005 32,396 5,542 (44,529) 198 2,612
Loss for the period (3,301) (3,301)
Total comprehensive income
for the year 9,005 32,396 5,542 (47,830) 198 (689)
Transactions with owners
in their capacity as owners:
Issues of shares and warrants (2,431) 2,431 -
Share based payments -
Transactions with owners
in their capacity as owners: - (2,431) - 2,431 - -
Balance at 30 September
2012 9,005 29,965 5,542 (45,399) 198 (689)
--------- --------- --------- ---------- --------- ---------
Notes to the half yearly financial information for the six month
period ended 30 September 2012
1. Basis of preparation
The unaudited consolidated half-yearly financial information for
the half year ended 30 September 2012 has been prepared in
accordance with IAS 34, 'Interim financial reporting' as adopted by
the European Union
The interim financial statements have been prepared in
accordance with the recognition and measurement principles of
International Financial Reporting Standards (IFRS) as adopted in
the EU. The current and comparative periods to June 2011 have been
prepared using the accounting policies adopted in the annual
financial statements for the period ended 31 March.
The financial information contained in this interim report does
not constitute statutory accounts as defined in section 434 of the
Companies Act 2006. This report has not been audited by the Group's
auditors
Comparative figures for the period ended 31 March 2012 have been
extracted from the statutory financial statements for that period
which carried an unqualified audit report, did not contain a
statement under section 237(2) or (3) of the Companies Act 1985 and
have been delivered to the Registrar of Companies.
The interim report was approved by the Group's Board of
Directors on 17 December 2012.
2 Principal risks and uncertainties for the six months ending 30 September 2012
As for most businesses, there are a range of risks and
uncertainties facing the Group. The principal risks and
uncertainties are described in the Group's 2012 Annual Report and
Accounts which can be downloaded from the Group's website
(www.optare.com)
3 Loss per ordinary share
The calculation of earnings per ordinary share is based on the
profit or loss for the period divided by the weighted average
number of equity voting shares in issue. There were no potentially
dilutive ordinary shares in existence during the period and so
basic and diluted earnings per share are identical.
Unaudited Unaudited Audited
Six month
period 15 month
ended 30 period
September As at 30 ended 31
2012 June 2011 March 2012
GBP000's GBP000's GBP000's
Loss for purposes of basic loss
per share (3,301) (4,400) (13,392)
-------------- ------------ ------------
(net loss for the period attributable
to equity holders of the parent)
Number Number Number
Weighted average number of ordinary
shares for the purposes of basic
earnings per share 2,235,291,827 617,033,133 967,052,981
Basic and fully diluted loss
per share (0.15)p (0.71)p (1.40)p
Excluding Exceptional items
Loss for purposes of basic loss
per share (3,301) (4,400) (13,392)
-------------- ------------ ------------
(net loss for the period attributable
to equity holders of the parent)
Adjustment to exclude exceptional
costs 1,088 896 4,599
Loss from continuing operations
for the purposes of basic earnings
per share (2,213) (3,504) (8,793)
-------------- ------------ ------------
Basic and fully diluted loss
per share (0.10)p (0.57)p (0.90)p
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GGGQCPUPPGMR
Optare (LSE:OPE)
Historical Stock Chart
From Dec 2024 to Jan 2025
Optare (LSE:OPE)
Historical Stock Chart
From Jan 2024 to Jan 2025
