DENSITRON TECHNOLOGIES PLC
Densitron Technologies plc ("Densitron" or "the Company" or "the Group") is pleased to announce its unaudited interim results for the six months ended 30th June 2014.
Summary
• Revenue decreased by 7.0% to £9.3m (2013: £10.0m).
• Orders booked increased by 8.3% to £11.8m (2013: £10.9m).
• Orderbook increased by 27.6% to £12.5m (2013: £9.8m) Financial Summary on continuing operations
6 months to 30th June 2014 Unaudited | 6 months to 30th June 2013 Unaudited | |
Revenue | £9.27m | £9.96m |
Loss from operations | £(0.13m)* | £(0.23m) |
Loss before taxation | £(0.17)m | £(0.26)m |
Loss per share | (0.31)p | (0.45)p |
Orders booked | £11.8m | £10.9m |
* Including the cost of the property in Newcastle
Enquiries:
Densitron Technologies plc Grahame Falconer / Tim Pearson Tel: 0207 648 4200
Westhouse Securities Limited
Martin Davison
Tel: 020 7601 6100
Chairman's Statement Operation reviewI am pleased to be able to report that the business has significantly strengthened in the first six months of the year with a number of new pieces of business having been won, several projects having entered their mass production phases and existing customers having provided repeat orders. While revenues have been disappointing in comparison to the same period in 2013 and consequently the Group remains loss making, I believe that the business has now been positioned for the future with a substantial increase in the level of orders being booked in the first half of the year and the level of the orderbook at 30 June
2014.
At the end of June 2014 the business had confirmed orders from customers but not yet delivered of
£12.5 million compared with £9.8 million at 30 June 2013, an increase of 27.6%, demonstrating the
progress that the business has made in the first half of the year. These orders will start to be delivered during the second half of 2014 and into 2015.
The majority of the Group's sales are denominated in currencies other than Sterling and the strength in Sterling over the first 6 months of 2014 reduced the impact of some of the improvements we achieved over the period. The table below shows the headline numbers reported for the first 6 months of 2014 compared with our reported figures in 2013 and the 2013 figures restated at the exchange rates used for the 6 months to 30 June 2014.
6 months to 30th
June 2014
Reported
6 months to
30th June 2013
Reported
6 months to
30th June 2013
Restated
£000 £000 £000
Orders booked 11,838 10,900 10,109
Revenues 9,267 9,957 9,352
Gross profit 2,496 2,705 2,540
Loss before tax (168) (261) (272)
The restated figures help to emphasise the progress that the business made in the first half of 2014. Orders booked in the period increased by 17% compared with the restated result for 2013. Although revenues and gross profit remained similar to the restated result for 2013 the savings made in addressing the cost structure of the business resulted in a reduction in the loss before tax of 38.2% against the restated result for 2013.
The second half of the year is traditionally stronger than the first half and with the level of booked orders due to be shipped in the second half it is expected that this will continue to be the case in 2014. The pipeline of new business remains strong and the Board is confident that the outturn for the full year will be in line with market expectations.
Other mattersThe Group owns a piece of land at Blackheath, London for which it continues to work to progress the development potential. Additionally the Board continues to work with Agents to let a property that the Company is the tenant of in Newcastle. The Board will advise Shareholders when there is further information on either of these matters.
Jan G Holmstrom
Chairman
19 August 2014
Unaudited Condensed Consolidated Income Statement For the six months ended 30th June 2014 6 months to 30th June 2014 £000
6 months to
30th June
2013
£000
Year to 31st
December
2013
Audited
£000
Revenue 9,267 9,957 20,047
Cost of sales (6,771) (7,252) (14,584)
Other operating income 87 15 3
Distribution costs (24) (30) (53) Administrative expenses (2,689) (2,921) (5,271) Exceptional costs in respect of lease settlement - - (593) (2,689) (2,921) (5,864)
Equity holders of the parent (216) (311) (705) Non-controlling interest (5) (4) (14) (221) (315) (719)
6 months to
30th June
2013
£000
Year to 31st
December
2013
Audited
£000
Loss for the period (221) (315) (719)
Foreign currency translation differences for foreign
operations (168) (11) (358) Total other comprehensive loss (168) (11) (358) Total comprehensive loss for the period (389) (326) (1,077)
Attributable to:
Equity holders of the parent (384) (324) (1,062) Non-controlling interest (5) (2) (15) (389) (326) (1,077)
30th June
2013
£000
31st
December
2013
Audited
£000
Property, plant and equipment 708 840 765
Goodwill 143 143 143
Other intangible assets 583 392 582
Deferred tax assets 7 23 7
Inventories 1,412 1,297 1,424
Trade and other receivables 3,801 3,833 3,895
Income tax recoverable 99 116 125
Cash and cash equivalents 801 1,663 848
Borrowings 1,862 2,270 1,764
Trade and other payables 3,269 2,294 3,121
Current tax payable 56 52 34
Provisions 9 18 9
5,196 4,634 4,928
Non-current liabilities
Borrowings 56 119 83
Trade and other payables 30 - 81
Provisions 111 116 111
Deferred tax liabilities 1 - 37
Share Capital 697 697 697
Retained earnings 1,705 2,443 1,917
Special reserve 83 93 87
Revaluation reserve 450 450 450
Translation reserve (785) (273) (617)
Minority interests 10 28 15
Share capital
£000
Translation reserve
£000
Special reserve
£000
Revaluation reserve
£000
Retained earnings
£000
Total Attributable to equity holders of the parent
£000
Non- controlling interest
£000
Total equity
£000
Balance at 1 January
2013 697 (260) 97 450 2,750 3,734 30 3,764
Loss for the period - - - - (311) (311) (4) (315) Other total
comprehensive income for the period Transfer from special
- (13) - - - (13) 2 (11)
reserve - - (4) - 4 - - - Balance at 30 June
2013 697 (273) 93 450 2,443 3,410 28 3,438
Profit for the period - - - - (394) (394) (10) (404) Other total
comprehensive income for the period
- (344) - - - (344) (3) (347)
Payment of dividend - - - - (138) (138) - (138) Transfer from special
reserve - - (6) - 6 - - - Balance at 31
December 2013 697 (617) 87 450 1,917 2,534 15 2,549
Loss for the period - - - - (216) (216) (5) (221) Other total
comprehensive income for the period Transfer from special
- (168) - - - (168) - (168)
reserve - - (4) - 4 - - -
6 months to
30th June
2013
£000
Year to 31st
December
2013
Audited
£000
Loss before taxation (168) (261) (520)
Adjustments for:
Depreciation 52 74 117
Amortisation 58 21 79
Net finance expense 38 30 69
Change in trade and other payables 31 (1,035) (20) Change in provisions - 9 -
Income tax paid (46) (107) (218)
Interest received 1 1 - Payment for intangible assets (2) (7) (276) Acquisition of plant, property and equipment (71) (62) (50)
Inception of new loans 176 - - Repayment of borrowings (79) (113) (169) Interest paid (39) (31) (69) Change in trade finance creditor (124) 189 261
Change in letters of credit 22 (69) (626) Dividends paid to owners of the Company - - (138) Net cash used in financing activities (44) (24) (741)
Net decrease in cash and cash equivalents (101) (39) (760)
Effect of exchange rate fluctuation on cash held (17) 28 (90)
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 4th 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.
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 2014 and are unchanged from those disclosed in the group's Annual Report for the year ended 31 December 2013.
The financial information for the six months ended 30 June 2014 and 30 June 2013 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 2013 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 (£'000) except when otherwise indicated.
UK France Finland Germany US Japan Taiwan Total
£000 £000 £000 £000 £000 £000 £000 £000
Total 2,607 1,045 145 676 3,936 1,083 2,581 12,073
Intercompany (327) (45) (38) - (63) (12) (2,321) (2,806) Revenue from
external customers 2,280 1,000 107 676 3,873 1,071 260 9,267
(Loss)/profit before
tax (80) 39 (23) (5) 254 (10) (74) 101
Total 2,867 1,005 213 909 4,065 1,514 2,430 13,003
Intercompany (795) (32) (23) - (30) - (2,166) (3,046) Revenue from
external customers 2,072 973 190 909 4,035 1,514 264 9,957
Profit/(loss) before
tax (158) 4 (17) - 251 78 (192) (34)
Total 5,963 2,042 352 1,733 8,351 2,796 4,785 26,022
Intercompany (1,473) (57) (54) - (64) - (4,327) (5,975)
Revenue from
external customers 4,490 1,985 298 1,733 8,287 2,796 458 20,047
Profit/(loss) before
tax (61) 26 (70) 55 660 136 (282) 464
Reconciliation of reportable segments, profit and loss, assets and liabilities to the Group's corresponding amounts:
6 months to
30th June
2013
Unaudited
£000
Year to 31st
December
2013
Audited
£000
Total profit for reporting segments 101 (34) 464
Costs associated with Head Office (269) (227) (391) Exceptional items - - (593) Income tax expenses (53) (54) (199) Loss after income tax expenses (221) (315) (719)
Taxation for the 6 months ended 30th June 2014 has been calculated by applying the estimated tax rate for the current financial year ending 31st December 2014.
5. Dividend
The Board does not propose an interim dividend in respect of the six months to 30 June 2014 (2013:
0.1 pence).
Loss on continuing operations attributable to ordinary
6 months to 30th June 2014 Unaudited £000
6 months to
30th June
2013
Unaudited
£000
Year to 31st
December
2013
Audited
£000
shareholders (216) (311) (705)
Issued at 1 January 2014 69,669,106 69,669,106 69,669,106
Effect of purchase of Treasury shares on 23rd October
2008 (500,000) (500,000) (500,000) Weighted average number of ordinary shares at
30th June 2014 69,169,106 69,169,106 69,169,106
6 months to
30th June
2013
Unaudited
£000
Year to 31st
December
2013
Audited
£000
Cash at bank and in hand 801 1,663 848
Bank overdrafts (808) (713) (737)
The Interim report is available to view and download from the Company's website at www.densitron.com. If shareholders would like a hardcopy of the interim report they should contact the Company Secretary, Tim Pearson.
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