Upgrade Now

Company Announcements

Unaudited Interim Results

Related Companies

RNS Number : 5421W
Densitron Technologies PLC
20 August 2015
 

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 30th June 2015.

 

Summary

 

·  Revenue increased by 22.6% to £11.4m (2014: £9.3m).

 

·  Operating profit before exceptional items £0.3m (2014: £0.1m loss)

 

·  Orderbook increased by 7.2% to £13.4m (2014: £12.5m).

 

Financial Summary

 


6 months to

30th June 2015

Unaudited

 

6 months to

30th June 2014

Unaudited

 

Revenue

 

£11.40m

£9.27m

Loss from operations

 

£(0.15m)*

£(0.13m)

Loss before taxation

 

£(0.23)m*

£(0.17)m

Loss per share

 

(0.51)p

(0.31)p

* After the cost of the lease surrender of the property in Newcastle totalling £0.4m

 

Enquiries:

Densitron Technologies plc

Grahame Falconer / Tim Pearson

Tel: 0207 648 4200

 

Westhouse Securities Limited

Martin Davison / David Coaten

Tel: 020 7601 6100



 

Chairman's Statement

 

Operation review

I am pleased to report that the business has continued to strengthen in the first six months of the year and has achieved a significant increase in revenues following the increase in the level of orders booked during 2014. In addition orders booked during the first half of the year have enabled the business to maintain a strong orderbook and helped to improve the visibility of the business into the future.

 

The operating results for the first six months of the year demonstrate the progress that the Group has made over the last 18 months. Revenues have increased by 22.6% to £11.4 million compared with £9.3 million in 2014. Gross profit has increased by 21.8% to £3.0 million compared with £2.5 million in 2014. With administrative expenses having only marginally increased by 3.2% to £2.8 million from £2.7 million in 2014, profit from operations before exceptional items achieved in the period was £0.3 million compared with a loss of £0.1 million in 2014.

 

At 30th June 2015 the business had confirmed orders from customers of £13.4 million compared with £12.5 million at 30 June 2014, an increase of 7.2%, demonstrating the continued progress that the business has made during the first half of 2015. These orders will be delivered during the second half of the current year and into 2016.

 

The second half of the year is traditionally stronger than the first half year and looking at the revenues already scheduled over the remainder of the year I would anticipate this trend continuing during the second half of 2015. For this reason the Board is confident that the business will achieve its market expectations for the full year.

 

The growth that has been reported in the first six months of the year has been largely from the core business with the US, France and Taiwan performing particularly strongly. The UK has continued to underperform but has revenues scheduled in the second half of the year substantially higher than those achieved in the first half of the year. I have previously reported that the business has undertaken three investments in new product lines and I am pleased to report that in the first six months of the year the Bonding line that was set up in Taiwan is now delivering good revenues. Work has continued with the other investments in Ripdraw and Densipaper to build the pipeline of opportunities and there remain significant opportunities for both of these investments to deliver a return for the Group.

 

Other matters

The Group retains a piece of land located at Blackheath in South East London. The Board continues to work with its advisors on realising the potential of the land and will advise Shareholders when there is further information to report.

 

Jan G Holmstrom

Chairman

19 August 2015

 



 

Unaudited Condensed Consolidated Income Statement

For the six months ended 30th June 2015

 


6 months to 30th June

2015

£000


6 months to 30th June

2014

£000


Year to 31st December 2014

£000







Revenue

11,396


9,267


20,678

Cost of sales

(8,356)


(6,771)


(15,122)

Gross profit

3,040


2,496


5,556

Other operating income

34


87


-

Distribution costs

(25)


(24)


(47)

Administrative expenses

(2,775)


(2,689)


(5,090)

Exceptional costs in respect of lease surrender

(424)


-


-


(3,199)


(2,689)


(5,090)

(Loss)/profit from operations

(150)


(130)


419

Financial income

-


1


-

Financial expenses

(75)


(39)


(79)

(Loss)/profit before tax

(225)


(168)


340

Income tax expense

(131)


(53)


(185)

(Loss)/profit for the period

(356)


(221)


155







Attributable to:






Equity holders of the parent

(355)


(216)


159

Non-controlling interest

(1)


(5)


(4)


(356)


(221)


155













Basic and diluted (loss)/earnings per share

(0.51)p


(0.31)p


0.23p













 

 



 

Unaudited Condensed Statement of Comprehensive Income

For the six months to 30th June 2015

 


6 months to

30th June

2015

 

£000


6 months to

30th June

2014

 

£000


Year to 31st December 2014

Audited

£000







(Loss)/profit for the period

(356)


(221)


155

Other comprehensive income:






Foreign currency translation differences for foreign operations

 

(80)


 

(168)


 

(37)

Total other comprehensive loss

(80)


(168)


(37)

Total comprehensive loss for the period

(436)


(389)


118







Attributable to:






Equity holders of the parent

(434)


(384)


123

Non-controlling interest

(2)


(5)


(5)


(436)


(389)


118

 

 



 

Unaudited Condensed Consolidated Balance Sheet

As at 30th June 2015

 


30th June

2015

 

 

£000


30th June

2014

 

 

£000


31st December

2014

Audited

£000

Non-current assets






Property, plant and equipment

107


208


173

Investment property

500


500


500

Goodwill

143


143


143

Other intangible assets

714


583


770

Deferred tax assets

86


7


86


1,550


1,441


1,672







Current assets






Inventories

2,255


1,412


1,931

Trade and other receivables

4,172


3,801


5,129

Income tax recoverable

17


99


57

Cash and cash equivalents

1,190


801


948


7,634


6,113


8,065







Total assets

9,184


7,554


9,737







Current liabilities






Borrowings

2,535


1,862


2,380

Trade and other payables

3,741


3,269


4,348

Current tax payable

21


56


59

Provisions

9


9


9


6,306


5,196


6,796







Non-current liabilities






Borrowings

416


56


41

Trade and other payables

-


30


-

Provisions

107


111


108

Deferred tax liabilities

124


1


125


647


198


274







Total liabilities

6,953


5,394


7,070








2,231


2,160


2,667







Equity






Share Capital

697


697


697

Retained earnings

1,736


1,705


2,086

Special reserve

72


83


77

Revaluation reserve

450


450


450

Translation reserve

(732)


(785)


(653)

Equity attributable to shareholders of Densitron

2,223


2,150


2,657

Minority interests

8


10


10







Total equity

2,231


2,160


2,667

 

Unaudited Condensed Statement of Changes in Shareholders' Equity

For the 6 months to 30th June 2015

 



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 2014


 

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


 

 

-

 

 

(168)

 

 

-

 

 

-

 

 

-

 

 

(168)

 

 

-

 

 

(168)

Transfer from special reserve


 

-

 

-

 

(4)

 

-

 

4

 

-

 

-

 

-

Balance at 30 June 2014


 

697

 

(785)

 

83

 

450

 

1,705

 

2,150

 

10

 

2,160

Profit for the period


-

-

-

-

375

375

1

376

Other total comprehensive income for the period


 

 

-

 

 

132

 

 

-

 

 

-

 

 

-

 

 

132

 

 

(1)

 

 

131

Transfer from special reserve


 

-

 

-

 

(6)

 

-

 

6

 

-

 

-

 

-

Balance at 31 December 2014


 

697

 

(653)

 

77

 

450

 

2,086

 

2,657

 

10

 

2,667

Loss for the period


-

-

-

-

(355)

(355)

(1)

(356)

Other total comprehensive income for the period


 

 

-

 

 

(79)

 

 

-

 

 

-

 

 

-

 

 

(79)

 

 

(1)

 

 

(80)

Transfer from special reserve


 

-

 

-

 

(5)

 

-

 

5

 

-

 

-

 

-

Balance at 30 June 2015


 

697

 

(732)

 

72

 

450

 

1,736

 

2,223

 

8

 

2,231








 

 



 

 



 

Unaudited Condensed Consolidated Cash Flow Statement

For the 6 months ended 30th June 2015

 


6 months to

30th June

2015

 

£000


6 months to

30th June

2014

 

£000


Year to 31st December

2014

Audited

£000







Cash flows from operating activities






(Loss)/profit before taxation

(225)


(168)


340

Adjustments for:






Depreciation

69


52


142

Amortisation

73


58


85

Net finance expense

75


38


79


(8)


(20)


646

Change in inventories

(364)


(23)


(497)

Change in trade and other receivables

898


73


(1,220)

Change in trade and other payables

(565)


31


1,111

Change in provisions

-


-


(3)


(39)


61


37

Income tax paid

(135)


(46)


(93)

Net cash (used in)/from operating activities

(174)


15


(56)







Cash flows from investing activities






Interest received

-


1


-

Payment for intangible assets

(21)


(2)


(260)

Acquisition of plant, property and equipment

(7)


(71)


(49)

Net cash used in investing activities

(28)


(72)


(309)







Cash flows from financing activities






Inception of new loans

1,509


176


322

Repayment of borrowings

(269)


(79)


(216)

Interest paid

(65)


(39)


(80)

Change in trade finance creditor

(87)


(124)


503

Change in letters of credit

(161)


22


231

Net cash from/(used in) financing activities

927


(44)


760







Net increase/(decrease) in cash and cash equivalents

725


(101)


395







Cash and cash equivalents at 1st January

484


111


111

Effect of exchange rate fluctuation on cash held

(19)


(17)


(22)







Cash and cash equivalents at the end of the period

1,190


(7)


484







 

 



 

Notes to the Unaudited Condensed Financial Statements

For the six months ended 30th June 2015

 

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 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.

 

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 2015 and are unchanged from those disclosed in the group's Annual Report for the year ended 31 December 2014.

 

The financial information for the six months ended 30 June 2015 and 30 June 2014 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 2014 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.

 

3. Segmental analysis

 


UK

France

Finland

Germany

US

Japan

Taiwan

Total


£000

£000

£000

£000

£000

£000

£000

£000

6 months to 30 June 2015








Revenue









Total

2,071

1,917

163

731

5,006

1,466

3,036

14,390

Intercompany

(21)

(54)

(13)

-

(98)

-

(2,808)

(2,994)

Revenue from external customers

 

2,050

 

1,863

 

150

 

731

 

4,908

 

1,466

 

228

 

11,396










Profit/(loss) before tax

 

(246)

 

188

 

(5)

 

(15)

 

413

 

16

 

143

 

494












 

6 months to 30 June 2014








Revenue









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










Profit/(loss) before tax

 

(80)

 

39

 

(23)

 

(5)

 

254

 

(10)

 

(74)

 

101










Year to 31 December 2014








Revenue









Total

5,770

2,658

375

1,709

8,167

2,159

6,059

26,897

Intercompany

(350)

(85)

(64)

-

(95)

(7)

(5,618)

(6,219)

Revenue from external customers

 

5,420

 

2,573

 

311

 

1,709

 

8,072

 

2,152

 

441

 

20,678










Profit/(loss) before tax

 

39

 

209

 

(21)

 

69

 

664

 

90

 

(31)

 

1,019










 

Reconciliation of reportable segments profit and loss to the Group's corresponding amounts:


6 months to 30th June

2015

Unaudited

£000

6 months to 30th June

2014

Unaudited

£000

Year to 31st December

2014

Audited

£000

(Loss)/profit after income tax expenses




Profit before tax for reporting segments

494

101

1,019

Costs associated with Head Office

(295)

(269)

(679)

Exceptional items

(424)

-

-

Income tax expenses

(131)

(53)

(185)

(Loss)/profit after income tax expenses

(356)

(221)

155





 

4. Taxation

 

Taxation for the 6 months ended 30th June 2015 has been calculated by applying the estimated tax rate for the current financial year ending 31st December 2015.

 

5. Dividend

 

The Board does not propose an interim dividend in respect of the six months to 30 June 2015 (2014: Nil).

 



 

6. Earnings per share

 



6 months to

30th June

2015

Unaudited

£000

6 months to 30th June

2014

Unaudited

£000

Year to 31st December

2014

Audited

£000

Loss attributable to ordinary shareholders





Loss on continuing operations attributable to ordinary shareholders


 

(355)

 

(216)

 

159






Weighted average number of ordinary shares





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

 

7. Notes supporting the cash flow statement

 



6 months to

30th June

2015

Unaudited

£000

6 months to 30th June

2014

Unaudited

£000

Year to 31st December

2014

Audited

£000

Cash and cash equivalents for the purposes of the cash flow statement comprises:










Cash at bank and in hand


1,190

801

948

Bank overdrafts


-

(808)

(464)



1,190

(7)

484

 

8. 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 hardcopy 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
 
 
IR SFWFIUFISEDA

Top of Page