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Ocean Finance Loans:
Market Cap
£5.96m
Change Today
0.000p ()
Share Price
46.50p
First Quarter Results
Turbotec Products PLC
14 August 2007
Press Release 14 August 2007
Turbotec Products Plc
("Turbotec" or "the Company")
First Quarter Results for the Three Months to 30 June 2007
Turbotec Products Plc (TRBO.L), the designer and manufacturer of high
performance, high quality heat exchangers and flexible connector products,
provides the following trading statement issued for the three month period ended
30 June 2007.
Highlights
• Turnover increased by 28% to $7.25m (2006: $5.68m)
• Gross profit up by 47% to $1.85m (2006: $1.26m)
• Profit before tax up 68% to $771k (2006: $459k)
• Net assets increased to $8.20m (2006: $7.68m)
• Continued strong performance in core markets
Overview
Net sales were ahead of expectations and set a new record for the Company. For
the quarter net sales were $7.25 million, up $1.6 million or 28% over the prior
year. Shipments to the major water source heat pump customers remained strong
for the entire quarter despite weakness in the housing market. The demand for
high efficiency heat pumps has increased over the past year, despite the housing
slump, as 'green' building is on the upswing and the higher efficiency units are
being successfully marketed as a smart investment to reduce energy costs in
existing housing. Shipments of boiler tubing were also up significantly in the
current year as the replacement market for high efficiency boilers in schools
and other public applications was extremely strong in the first quarter. The
swimming pool heat pump market is down overall but the Turbotec share is growing
with the additions of two major players; overall shipments to this market were
higher than last year and are expected to show further growth as these new
customers come fully on line in the current months.
Gross margin percentage was 25.5% for the first quarter of fiscal 2008 compared
to 22.3% for the same period last year. For the full fiscal year ended 31 March
2007 gross margin percentage was 22.6%. The improvement in gross margin was a
result of price increases and adjustments to formulas passing on the cost
increases of raw materials, coupled with production efficiencies resulting from
completed lean manufacturing projects.
Net income for the current three month period was $515,000 compared to $337,000
for the same period of the prior year. Increased expenditures in marketing,
engineering and corporate governance functions were made in the current year as
the company continues to expand its business base and product applications.
Commenting on the results, Sunil Raina, Managing Director of Turbotec Products,
said:
"We are delighted to report record sales for this quarter, continuing the trend
from the successful past year. We continue to aggressively pursue new
opportunities for our growing line of products. While the US economy is
expected to see reduced growth, we remain optimistic about our future."
Enquiries:
Turbotec Products Plc
Sunil Raina, Managing Director Tel: +1 (860) 683 2005
SRaina@turbotecproducts.com
Robert Lieberman, Treasurer and Chief Financial Officer Tel:+1 (860) 683 2005
RLieberman@turbotecproducts.com www.turbotecproducts.com
Dawnay, Day
David Rae Tel: +44 (0) 20 7509 4570
www.daynayday.com
Media enquiries:
Abchurch Communications
Sarah Hollins/Charlie Jack/ Emma Johnson Tel: +44 (0) 207 398 7784
emma.johnson@abchurch-group.com www.abchurch-group.com
TURBOTEC PRODUCTS PLC
CONSOLIDATED INCOME STATEMENT
For the THREE MONTHS ended 30 JUNE
2007 2006
$'000 $'000
UNAUDITED UNAUDITED
Revenue 7,251 5,680
Cost of sales (5,398) (4,419)
Gross profit 1,853 1,261
Distribution costs (189) (224)
Administrative expenses (886) (542)
Operating profit 778 495
Finance costs (7) (36)
Profit before tax 771 459
Income tax expense (256) (122)
Profit for the period 515 337
Earnings per share - basic $ 0.04 $ 0.03
Earnings per share - diluted $ 0.04 $ 0.03
The accompanying notes are an integral part of these consolidated financial statements.
TURBOTEC PRODUCTS PLC
CONSOLIDATED BALANCE SHEETS AT
30 JUNE 31 MARCH
2007 2007
$'000 $'000
UNAUDITED AUDITED
Assets
Non-current assets:
Property, plant and equipment 4,215 4,175
Intangible assets 436 411
4,651 4,586
Current Assets:
Inventories 3,655 3,359
Trade and other receivables 3,977 3,416
Cash and cash equivalents 88 45
7,720 6,820
Current Liabilities
Current portion of long-term borrowings 93 108
Bank overdraft - -
Trade and other payables 2,919 2,315
Current tax liabilities 349 481
3,361 2,904
Net current assets/(liabilities) 4,359 3,916
Non-current liabilities
Long-term borrowings 207 224
Deferred tax 595 595
802 819
Net assets 8,208 7,683
Shareholders' equity:
Share capital 228 228
Share premium account 3,451 3,441
Merger reserve (168) (168)
Retained earnings 4,697 4,182
Total equity 8,208 7,683
The accompanying notes are an integral part of these consolidated financial statements
TURBOTEC PRODUCTS PLC
cONSOLIDATED Statements of Cash Flows
for the THREE MONTHS ENDED 30 JUNE
2007 2006
($000's) ($000's)
UNAUDITED UNAUDITED
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations
Taxes paid 598 (168)
(388) -
Net cash provided by operating activities 210 (168)
CASH FLOWS FROM INVESTING ACTIVITIES
Development costs paid (25) (29)
Payments for property, plant and equipment (110) (130)
Net cash used in investing activities (135) (159)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank borrowings - 90
Proceeds from stock placing - 4,383
Share issue costs - (892)
Principal payments on long term debt (32) (335)
Principal payments on capital lease obligations - (7)
Dividends paid to equity shareholder - (102)
Net cash used in financing activities (32) 3,137
NET CHANGE IN CASH AND CASH EQUIVALENTS 43 2,810
CASH AND CASH EQUIVALENTS, beginning of period 45 (2,610)
CASH AND CASH EQUIVALENTS, end of period 88 200
The accompanying notes are an integral part of these consolidated financial statements
NOTES TO THE FINANCIAL STATEMENTS
1. BASIS OF PREPARATION
The financial information set out above does not constitute the
company's statutory accounts for the periods ended 30 June 2007 or 30 June 2006.
2. TAXATION
Analysis of charge in period:
Three Months Ended 30 Three Months Ended 30
June June
2007 2006
($000's) ($000's)
Current 256 122
Deferred - -
Taxation 256 122
Tax reconciliation:
The effective tax rates for the periods are different than the standard rate of
corporate tax in the UK (30% for both three month periods ended 30 June 2007 and
2006). The differences are attributable to the following:
2007 2006
($000's) ($000's)
Profit Before Tax 771 459
Profit before tax multiplied by rate of
corporate tax in the UK of 30% (2006:30%) 231 138
Effect of:
Temporary differences between book and tax income (10) (17)
Higher rate of tax on overseas earnings 55 33
Tax credits used to reduce taxes paid (20) (32)
Total taxation 256 122
3. BASIC EARNINGS PER SHARE AND DILUTED EARNINGS PER SHARE
The calculations of basic and diluted earnings per ordinary share are based on
the profit for the financial year and the weighted average number of equity
voting shares in issue and dilutive shares during the period.
2007 2006
(Numerator) (Denominator) (Numerator) (Denominator)
($000's) Weighted ($000's) Weighted
Average Shares Average Shares
Basic EPS
Profit for the period 515 - 337 -
Weighted average shares - 12,806,773 - 11,607,980
Diluted EPS-
Effect of Dilutive Securities
Stock options - 800,000 - -
Diluted EPS 515 13,606,773 337 11,607,980
The comparative figures are pro-forma based on the number of shares that would
have been in issue had the capital structure of the parent company always have
been in place.
4. INTANGIBLE FIXED ASSETS
Capitalized
Development
Goodwill Costs Total
($000's) ($000's) ($000's)
Period Ended 30 June 2007
Cost and net book value
Balance at 1 April, 2007 94 317 411
Additions - 25 25
Balance at 30 June, 2007 94 342 436
Period Ended 30 June 2006
Cost and net book value
Balance at 1 April, 2006 94 - 94
Additions - 29 29
Balance at 30 June, 2006 94 29 123
Goodwill relates to the acquisition of a technology company acquired by the US
parent company in 1985. The operations of that company were subsequently
integrated into the company's primary manufacturing facility. The technology
acquired continues to be used by the Company as an integral part of the
engineering and manufacturing of its current product line. As this asset is
deemed to have an indefinite future benefit no amortization has been recognized
in fiscal years 2007 and 2008. The deferred development costs will be amortized
over the expected lives of the related products once sales of these products
commence on a commercial level.
5. FIXED ASSET INVESTMENTS
The following companies are subsidiary undertakings of the Company at 30 June,
2007 and have consolidated into the Company's results:
Country of Principal Activity % Owned
Incorporation
Turbotec Products, Inc United States Manufacture of Heat 100
Transfer Products
6. CALLED UP SHARE CAPITAL
Called up share capital for the three month periods ended 30 June is as follows:
Authorized
2007 2006
Number of Number of
Shares $000's Shares $000's
Ordinary shares of 1p each 20,000,000 356 20,000,000 356
Issued and Fully Paid
Ordinary shares of 1p each
2007 2006
Number of Number of
Shares $000's Shares $000's
At beginning of year 12,806,773 228 10,009,590 178
Shares issued during period - - 2,797,183 50
12,806,773 228 12,806,773 228
Turbotec Products Plc (the "Company") was incorporated on 14 October 2005 in the
UK and re-registered as a public company on April 11, 2006 and is the parent
company of a wholly owned subsidiary, Turbotec Products, Inc (Turbotec)
(together 'the Company').
On May 8, 2006, Thermodynetics, Inc. ("Thermodynetics"), formerly the sole
shareholder of the Company, completed the sale of a minority interest of the
company, whereby approximately 43.68% of the Company's shares was sold or issued
to institutional investors pursuant to a placing on the AIM Market of the London
Stock Exchange. Pursuant to the placing, Thermodynetics sold and the Company
issued 2,797,183 shares each (a total of 5,594,366 ordinary shares in the
Company) at the price of 85 pence per ordinary share. Thermodynetics now owns
56.32% of Turbotec Products Plc, with the balance owned by institutional
investors.
7. RECONCILIATION OF PROFIT BEFORE TAX TO NET CASH FLOW FROM OPERATING
ACTIVITIES
2007 2006
($000's) ($000's)
Profit before tax 515 337
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 70 63
Changes in operating assets and liabilities:
(Increase) in trade and other receivables (617) (114)
(Increase) in inventory (239) (194)
(Decrease) Increase in trade and other payables 585 (350)
Increase (decrease) in accrued expenses and taxes 275 90
Charge recognized in respect of share based payment 9 -
Net cash provided by operating activities 598 (168)
8. ANALYSIS OF CASH AND CASH EQUIVALENTS
2007 2006
($000's) ($000's)
Cash available on demand 45 200
Bank overdrafts - -
45 200
9. ULTIMATE PARENT COMPANY
The ultimate parent undertaking is Thermodynetics, Inc, a company incorporated
in the United States. This is largest and smallest Company into which the
Company's results are consolidated.
This information is provided by RNS
The company news service from the London Stock Exchange