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RNS Number : 1182Z
Optare PLC
08 December 2014
 



Optare plc

(the "Company", "Group" or "Optare")

Interim Results for the six months ended 30 September 2014

 

Optare is pleased to announce its unaudited results for the six months ended 30 September 2014.

Key highlights:

 

·      Introduction of the MetroCity Euro 6, a low weight integral structure vehicle, available in 2 lengths of 10.1m to 10.8m. The first Metrocity order was delivered in May 2014;

 

·      Successful launch of Optare's new Euro 6 double deck, the MetroDecker, at the London Transport Museum in May 2014. The order book for the MetroDecker is now open;

 

·      Introduction of the MetroCity EV. The Metrocity EV was launched by the Mayor of London in July of this year;

 

·      Orders for electric vehicles (EVs) received for all major London operators, who are currently trialling Optare's EVs. As of September 30th 2014, Optare has 45 EVs operating in the UK market and is the leader in full electric vehicles in the UK (where Optare has 100% market share) and Europe;

 

·      Introduction of the new Solo and Versa Euro 6 engine power. The first order for 37 units has now been delivered to Northern Ireland;

 

·      Introduction of the new hybrid power generation. The first order for 10 units has been delivered in September 2014;

 

·      Optare has been awarded for its excellence in environment and green technology by the Indo European Business Forum at a recent awards ceremony at the House of Lords, Westminster, London; and

 

·      Increased market share of single deck UK market; up by 2.0% as of September 2014 v September 2013. The overall single deck UK market was down by 9% YTD in 2014.

Financial headlines:

·      EBITDA loss of £(1.4)m compared to H1 2013 loss of £(0.8)m;

 

·      Loss from operations of £(2.1)m compared to H1 2013 loss of £(1.4)m;

 

·      Gross margin decreased to 9.5% (H1: 2013 10.3%), this was primarily driven by the execution of new product orders and the introduction of new Euro 6 specification vehicles;

Sales volumes are lower than PY by 13%.

 

·      Underlying administration costs increased to £4.6m (H1: 2013 £4.4m). Administration costs include a one off charge of £0.3m relating to obligations resulting from an onerous contract in May 2014; and

 

·      Loss per share increased from 0.08p at September 2013 to 0.12p at September 2014.

 

Commenting on the interim results, Enrico Vassallo, Optare's CEO: "We have seen a difficult trading period in the first half of the 2014/15 financial year, due to the contraction of the UK bus market and the launch of several new products and Euro 6 specification vehicles. We have continued to invest in new products and, for the first time, the Company can offer an extended product range to meet operators' urban and suburban requirements. The Management are committed to top line growth in both UK and export markets and to reduce fixed costs to ensure a long term sustainable future for Optare plc".

For further information:

Optare plc                                           Tel:  +44 (0) 8434 873 200

Enrico Vasallo - Chief Executive Officer

Cenkos Securities plc                      Tel: +44 (0) 20 7397 8900

Stephen Keys

 

 

 

CHAIRMAN AND CHIEF EXECUTIVE REVIEW

·      Turnover for the 6 months ended 30 September 2014 was £29.4m (H1 2013: £32.4m). 2013 H1 results included the completion of a kit export order (£3.0m). Volumes for the same period were 177 compared to 204 buses and 31 kits in H1 2013.

 

·      The Company has continued to invest in the long-term future of the business with capital expenditure in the 6 months to 30 September 2014 of £0.8m (H1 2013: £0.9m). The expenditure was principally on product development - the lightweight Euro 6 integral double deck ("MetroDecker") and the low weight midi-bus ("MetroCity") -  and Euro 6 integration into current ranges;

 

·      Optare's banking arrangements were renewed by Barclays with a total bank facility of £23m still available and Ashok Leyland continues to support Optare plc with resources as required;

 

·      Loss per share increased from 0.08p at September 2013 to 0.12p at September 2014.

 

Current trading and prospects

·      The order book as at 30 September 2014 was £21.7m (30 September 2013: £22.5m). The Company is now tendering for MetroDecker orders to strengthen the order book and plan to further supplement this through volume orders from the large UK bus operators, supported by the full product offering that Optare now has available;

 

·      Optare has delivered its targeted first Euro 6 engines in Q2 of the 2014/15 financial year. Further Euro 6 production volume is planned into H2;

 

·      The export strategy is taking longer to realize than was originally envisaged, but the first tender for Bahrain has been successfully won. Optare continues to promote its products in export markets, to reduce its reliance on UK customers;

 

·      Optare continues to be the leader in low emission technology and have a substantial lead on the competition. With increasing focus on life cycle costs, Optare continues to invest in improving fuel efficiency of its product range; and

 

·      Continued integration with Ashok Leyland through the planned launch of Optare's Solo EV with AL branding at the Bus Expo in New Delhi early next year.

 

 

Board and management changes

·      Mr Steven John Norris joined the company on 10th October 2014 in the position of Independent Non-Executive Director.  Mr Norris has simultaneously taken on the role of Deputy Chairman of the Board and will assist Optare in working with the UK bus industry to achieve greener bus travel and improved air quality in the UK. Mr Norris, former MP for Oxford East and Epping Forest, has notable experience in the transport industry, being former Parliamentary Under-Secretary of State for Transport and Minister for Transport in London. Steven is either currently or has previously held roles as Chairman of the National Cycling Strategy Board, Director General of the Road Haulage Association and President of the Motor Cycle Industry Association, a Commissioner with the Independent Transport Commission, and a patron of the charities, Sustrans (a British charity to promote sustainable transport) and of the Campaign for Better Transport (UK) Trust.

 

 

Outlook

 

·      The Company anticipates that trading will remain difficult in the short term, but with a full product range to offer to the UK market, higher base volumes from the major groups and conversion of more export tenders, the future looks bright for the Company.

 

 

 

 

Enrico Vassallo                                                                                   John Fickling

Chief Executive Officer                                                                      Chairman

                 Date                                                                                                       Date

                    

 

 













Unaudited

Unaudited

Audited





6 month period ended 30 September 2014

6 month period ended 30 September 2013

12 month period ended 31 March 2014





£000's

£000's

£000's








Revenue




29,396

32,413

56,947








Cost of Sales




(26,610)

(29,083)

(50,826)















Gross profit




2,786

3,330

6,121








Administrative expenses




(4,103)

  (3,955)

(8,039)

Distribution costs




(497)

(455)

(499)

Amortisation of intangibles




(263)

  (278)

(624)








Loss from operations




(2,077)

  (1,358)

(3,041)








Finance costs




(586)

  (458)

(1,020)








Loss for the period from continuing operations




(2,663)

  (1,816)

(4,061)








Loss on ordinary activities before taxation




(2,663)

  (1,816)

(4,061)

Taxation




-

-








Loss attributable to the equity holders of the parent company




(2,663)

  (1,816)

(4,061)

Earnings/(loss) per ordinary share














From continuing operations after exceptional items (basic and diluted)




(0.12)p

(0.08)p

(0.18)p

From continuing operations before exceptional items (basic and diluted)




(0.12)p

(0.08)p

(0.18)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 2014 (unaudited)




 






 



Unaudited

Unaudited

Audited

 



6 month

period ended

 30 September

2014

6 month period ended 30 September 2013

12 month period ended 31 March 2014

 



£000's

£000's

£000's

 

Non-current assets





 

Goodwill


8,574

8,574

8,574

 

Other intangible assets


8,600

8,426

8,324

 

Property, plant  equipment


3,192

3,484

3,300

 



20,366

20,484

20,198

 

Current assets





 

Inventories


8,812

6,046

12,423

 

Trade and other receivables


6,994

9,383

7,998

 



15,806

15,429

20,421

 






 






 

Total assets


36,172

35,913

40,619

 






 

Current liabilities





 

Trade and other payables


16,554

13,610

18,632

 

Bank loans and overdrafts


10,381

9,344

10,092

 

Provisions


1,843

2,567

1,589

 

Obligations under finance leases


69

69

64

 



28,847

25,590

30,377

 

Non current liabilities





 

Bank loans


15,000

15,000

15,000

 

Provisions


3,667

1,727

3,940

 

Obligations under finance leases


120

150

101

 



18,787

16,877

19,041

 






 

Total liabilities


47,634

42,467

49,418

 






 

Net Liabilities


(11,462)

  (6,554)

(8,799)

 






 

Equity





 

Called up share capital


9,005

9,005

9,005

 

Share premium


32,396

32,396

32,396

 

Share based payment reserve


42

42

42

 

Merger reserve


5,542

5,542

5,542

 

Retained loss


(58,447)

  (53,539)

(55,784)

 






 

Total equity attributable to equity holders of the parent


(11,462)

  (6,554)

(8,799)

 






 

 

 





 

Consolidated Cash flow Statement for the six month period ended 30th September 2014 (unaudited)

 





                                                                                                                                            Unaudited 

Unaudited

Audited


Audited

 



6 month period ended 30 September 2014

6 month period ended 30 September 2013

12 month period ended 31 March 2014

 



£000's

£000's

£000's


 

Operating activities





 

Loss before tax


(2,663)

               (1,816)

(4,061)

 

Tax


-

-

-

 

Depreciation and amortisation


675

568

1,148

 

Share based payments


-

-

-

 

Net finance expense


586

458

1,020

 

Loss on disposal of fixed assets


-

-

4

 






 

Operating cash flows before movements in working capital


(1,402)

  (790)

(1,889)

 






 

Movement in inventories


3,611

4,292

(2,083)

 

Movement in trade and other receivables


1,004

(1,663)

(278)

 

Movement in trade and other payables


(2,078)

  (6,856)

(1,834)

 

Movement in provisions


(19)

685

1,918

 






 

Cash absorbed by operations


1,116

(4,332)

(4,166)

 






 

Interest paid


(586)

  (458)

(1,020)

 






 

Net cash flow from operating activities


530

(4,790 )

(5,186)

 






 

Investing activities





 

Purchase of property, plant and equipment


(304)

  (418)

(543)

 

Internal capitalised costs


(539)

  (433)

(678)

 






 

Net cash flow from investing activities


(843)

  (851)

(1,221)

 






 

Financing activities





 

Loan repayments


-

7,000

  -

 

Short term loans


221

  202

7,476

 

Hire purchase agreement repayments


24

(15)

(69)

 






 

Net cash flow from financing activities


245

  7,187

7,408

 






 

Net increase/(decrease) in cash and cash equivalents


(68)

1,546

1,001

 






 

Cash and cash equivalents at the beginning of the period


(4,444)

  (5,445)

(5,445)

 






 

Cash and cash equivalents at the end of the period


(4,512)

  (3,899)

(4,444)

 






 

 

 

Consolidated statement of changes in equity for the six month period ended 30 September 2014 (unaudited)













Share Capital

Share Premium

Merger Reserve

Retained earnings

Share based payment reserve

Total



£000's

£000's

£000's

£000's

£000's

£000's









Balance at 31st March 2014


9,005

32,396

5,542

(55,784)

42

(8,799)









                   Loss for the period


-

-

(2,663)

-

(2,663)









                   Total comprehensive

                   income for the year


9,005

32,396

5,542

(58,447)

42

(11,462)

















      Balance at 30 September 2014


9,005

32,396

5,542

(58,447)

42

(11,462)

 

 

 

Notes to the half yearly financial information for the six month period ended 30 September 2014

1.             Basis of preparation

 

Optare plc (the "Company") is a company incorporated and domiciled in the UK.

 

The condensed consolidated interim financial statements of the Company as at and for the six months ended 31 September 2014 comprise the Company and its subsidiaries (together referred to as the "Group") and equity account the Group's interest in jointly controlled entities.

 

The unaudited consolidated half-yearly financial information for the half year ended 30 September 2014 has been prepared in accordance with IAS 34, 'Interim financial reporting' as adopted by the European Union.

 

The condensed consolidated 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 September have been prepared using the accounting policies adopted in the annual financial statements for the period ended 31 March 2014.

 

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 2014 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.

 

These condensed consolidated interim financial statements were approved by the company's Board of Director's on the 8th December 2014.

 

2              Principal risks and uncertainties for the six months ending 30 September 2014

As for most businesses, there are a range of risks and uncertainties facing the Group. The principal risks and uncertainties are described in the Company's 2014 Annual Report and Accounts which can be downloaded from the Company'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 ended 30 September 2014

Six month period ended 30 September 2013

12 month period ended 31 March 2014



£000's

£000's

£000's






Loss for purposes of basis loss per share


(2,663)

  (1,816)

(4,061)

(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

2,235,291,827

2,235,291,827






Basic and fully diluted loss per share


(0.12)p

(0.08)p

(0.18)p






Excluding Exceptional items










Loss for purposes of basis loss per share


(2,663)

  (1,816)

(4,061)

(net loss for the period attributable to equity holders of the parent)










Adjustment to exclude exceptional costs


-

-

-






Loss from continuing operations for the purposes of basic earnings per share


(2,663)

(1,816)

(4,061)






Basic and fully diluted loss per share


(0.12)p

(0.08)p

(0.18)p











 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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