RNS Number:3583I
Biotrace International PLC
6 March 2003
FOR IMMEDIATE RELEASE: 07.00am - 6th March 2003
BIOTRACE INTERNATIONAL PLC
ANNOUNCES PRELIMINARY RESULTS
for the year ended 31 December 2002
Biotrace International Plc ('Biotrace', the "Company" or the "Group"), a leading
manufacturer and provider of specialised products and services for microbiology
and life sciences, today announces its preliminary results for the year ended 31
December 2002.
Highlights
* Sales up 30% to #12.5 million (2001: #9.6 million)
* Profit before exceptional items and tax up 25% to #2.2 million (2001:
#1.8 million)
* Earnings per share before exceptional items of 5.00p (2001 restated:
4.22p per share)
* Operational cash flow up 11% to #2.8 million (2001: #2.5 million)
yielding #3.6 million cash in hand after acquisitions and capital investments
totalling #3.8 million.
* Dividend: the Board recommends a dividend payment of 0.96p per share
(2001: 0.8p).
Commenting on the results, Terry Clements, Non-Executive Chairman of Biotrace,
said:
"Substantial progress has been made in 2002 with strong organic growth being
complemented by acquisitions of technology, products and additional distribution
channels in the US & UK.
Top line growth in 2003 will be generated, in part from a full year of
contribution from the Fred Baker Scientific acquisition but, largely through
organic growth. The enhanced product range coupled with our expanded direct
sales organisation will fuel this growth. To supplement organic growth in the
business, we will continue to seek out synergistic acquisitions that will add
value to our customers and to our earnings. Our Defence business is currently
robust with improved visibility for this year and beyond.
"2003 has started well with the Company now well positioned to take advantage of
the opportunities for profitable growth across all focus markets. Management
continues its drive to improve manufacturing efficiencies and establish direct
sales in major markets, which should continue to impact positively on financial
performance."
For further information:
Biotrace International Tel: +44 (0) 1656 641 400
Ian Johnson, Chief Executive Officer
Peter Morgan, Finance Director
Buchanan Communications
Nicola How / Louise Bolton Tel: +44 (0) 207 466 5000
BIOTRACE INTERNATIONAL PLC
ANNOUNCES PRELIMINARY RESULTS
for the year ended 31 December 2002
OVERVIEW:
Group sales #12.5 million up 30%
Consumable (repeat) sales 86% of sales
Direct sales 67% of sales
Own brand sales 92% of sales
The performance of the Company during 2002 is further evidence that the broader
product range, together with improved international distribution, is delivering
sustainable growth in sales and profits. Although growth has been enhanced by
the full year effect of acquisitions made in 2001, underlying organic growth of
19% was still achieved.
Key business measures and indicators have moved positively year on year; sales
increased 30% to #12.5 million (2001: #9.6 million); profit before tax was #2.0
million (2001: #1.9 million), however, 2001 profits benefited from an
exceptional gain of #0.25 million resulting from the sale and leaseback of the
Company's headquarters. Pre tax profit before exceptional items increased by
25% from #1.8 million in 2001 to #2.2 million in 2002.
Headline earnings per share were 4.57p (2001 restated: 4.80p), however, earnings
before exceptional items increased from 4.22p (restated) in 2001 to 5.00p;
operational cash flow increased by 11% from #2.5 million in 2001 to #2.78
million in 2002; cash in hand at year end was #3.63 million (2001: #5.27
million) after acquisitions and capital investments amounting to #3.83 million;
shareholders' funds increased by 15% from #9.37 million (restated) to #10.8
million.
Selling and administrative expenses increased by 28% before exceptional costs,
yielding total operating costs, including R&D expenses, of #6.12 million (2001:
#5.0 million). Exceptional costs of #0.18 million were incurred as a result of
restructuring the Fred Baker Scientific ("FBS") acquisition and completing the
rationalisation of the North American offices (2001: exceptional costs of #0.07
million), however, this should lead to annualised savings of a similar level.
OPERATIONAL REVIEW:
Group Organisation
During the last three years the Company has progressed from a single product,
single market entity with limited direct sales to a truly international
organisation with an enlarged product range serving three major markets.
Following the acquisition of the FBS healthcare business in October 2002,
Management rationalised the Group to serve three distinct markets: Industrial,
Healthcare and Defence. In 2002, sales to these markets contributed
approximately 72%, 13% and 15% of turnover respectively. Within each market
there are defined customer groups, which our sales and marketing teams focus on
to form strategic relationships.
Sales of the Group's own brands in 2002 accounted for 92% of turnover, with
sales of third party products appearing for the first time as a result of the
acquisition of FBS and the commencement of trading of Biotrace SA in France.
The level of third party products will increase during the coming year as a
result of the full year effect of the acquisition of FBS, however, the level of
third party product sales is not anticipated to reach more than 20% of Group
sales.
Direct sales, derived from the Group's sales subsidiaries, accounted for 67% of
turnover with the balance from international distributors. It is envisaged that
approximately 80% of the Company's turnover will, in the near term, be derived
from direct sales.
58% of sales were generated from export markets during 2002. European sales
increased by 25% to #8.0 million, whilst sales in the Americas grew by an
encouraging 33% to #3.6 million. Sales in Asia-Pacific grew by 90% to #0.9
million.
A key driver of the business, consumables (repeat reagents), accounted for 86%
of turnover with capital equipment sales and service income making up the
balance. It is anticipated that a high level, circa. 80% of sales will be
derived from consumable and/or repeat business going forward.
Industrial
Total sales #9.0 million up 29%
Biotrace - hygiene tests #7.5 million up 19%
Cogent - sterility tests #1.1 million up 57%
3rd Party products #0.4 million new during 2002
Combining the former Food Safety and Industrial & Environmental divisions has
led to greater operational efficiencies with sales management focussing on
growing sales in the industrial market. The Company's product offering to
customers in this market has expanded during 2002 and now consists of: Biotrace
rapid hygiene testing range of instruments and reagents; Cogent rapid sterility
testing instruments and reagents for UHT dairy products; Biotrace dipslides for
process water testing and a number of complementary products from other leading
manufacturers.
Overall, sales grew 29% to #9.0m in 2002 (2001: #7.0m), which accounted for 72%
of Group turnover. During the year, the Company continued to grow sales of
Biotrace products with revenues increasing year on year by 19% to #7.5 million.
The growth in sterility testing sales following the roll out of Cogent products
into Europe was particularly good with revenues increasing year on year by 57%
to #1.1 million. The Company is maintaining its leadership in the food hygiene
business as well as growing a strong position in the paper and water treatment
industries.
Healthcare
Sales #1.6 million up 853%
The acquisition of Ruskinn Technology Ltd ("RTL") in late 2001 spearheaded our
introduction into the healthcare market and has provided a platform from which
to grow our presence. Benefiting from a full year of operation within the
Group, RTL contributed sales of #0.95 million in 2002 (2001: #0.17 million).
FBS, acquired in October 2002, contributed a further #0.66 million, bringing
total turnover for the Healthcare market to #1.6 million (2001: #0.17 million),
which accounted for 13% of Group turnover.
The acquisition of FBS led to a restructuring of Biotrace's UK sales
organisation and the formation of a new UK sales subsidiary, Biotrace Fred Baker
Ltd ("BFB"). As a leading UK supplier of specialised products and services for
microbiology and life sciences, BFB has annualised sales to the Healthcare and
Industrial markets approaching #7 million from an extended range of products and
additional customer groups including pharmaceutical companies.
The microbiological media manufacturing unit within FBS was re-branded Biotrace
PPM and is now part of an increasing range of products and brands manufactured
by the Group. These pre-prepared media products are supplied to pharmaceutical
companies both in the UK and increasingly within Europe.
Defence
Total sales #1.9 million down 21%
Reagent sales #1.7 million down 15%
Detection system sales #0.2 million down 50%
Biotrace is a leading supplier of instruments and reagents for the rapid
detection of biological weapons. The Company supplies detection systems and
reagents, utilising unique, Ministry of Defence ("MoD"), patented technology, to
governments including the MoD and the UK Defence science and technology
laboratories ("Dstl"). Currently the Group is working on enquiries from a
number of overseas customers and continues to work closely with Dstl and Smiths
Detection, part of Smiths Aerospace Plc, to supply upgraded systems and reagents
to MoD.
Sales in 2002 reached #1.9 million after recording #0.7 million at the half-year
stage. Although lower than the previous year (#2.4 million) this level of sales
was still higher than historical levels and accounted for 15% of Group turnover.
Reagent sales fell by 15% to #1.7 million, whilst sales of detection systems
were # 0.2 million (2001: #0.5 million).
The current geo-political climate, coupled with recent world events, has raised
the profile of the Company's products and given greater sales visibility both
for the coming year and beyond. It is likely therefore that historic levels of
sales will at least be sustained in the short term, with the possibility of
additional turnover depending on events.
In July 2001, the Company, together with the MoD, formed a joint venture
company, Lucigen Ltd, located at the Science Park at Porton Down, to develop and
manufacture reagents of strategic importance in the detection of biological
weapons. The facility is now well established with the production of key
reagents and achieved sales of #0.11 million and a loss of #0.15 million during
its first year of operations.
Product Development
Expenditure on R&D during the year was broadly similar to the previous year at
#0.97 million (2001: #1.02 million). All of the Group's brands introduced new
or improved products during the year for customers in Industrial, Healthcare and
Defence markets. 2003 will see the launch of further new and improved
products.
Corporate Development
Many of the initiatives taken during 2001 brought the anticipated benefits in
2002. The acquisitions have been successfully integrated into the Group and
Management continues to seek ways in which to add value through new product
development, acquisition of further new products and technologies and by
enhancing worldwide product distribution.
The Company is making steady progress towards its stated objective in building a
product manufacturing group coupled with a strong international sales and
service organisation. The continuing financial strength of the Company will
enable Management to maintain the momentum in implementing its plans and to make
further acquisitions as suitable opportunities arise.
FINANCIAL REVIEW:
Sales:
Sales for the year were #12.5 million (2001: #9.6 million).
Sales improved during the year with the effect of the acquisitions of Toucan in
May and FBS in October. In addition, contributing to growth in the 2nd half,
there was an improvement in MoD sales relative to the 1st half. Sales for the
2nd half were up 34% on the corresponding period in 2001 and up 31% on the 1st
half of 2002.
During the year the US dollar declined by almost 11% relative to sterling and
the average rate used to translate the results of our US operations declined by
4.3%. This cost the Group #0.16 million in turnover and #0.1 million of profit
on a like for like basis.
Gross Margins:
Gross margins increased slightly in the underlying business through improved
operational efficiencies. However, as anticipated, gross margins reduced to 64%
in 2002 (2001: 69%), as a result of changes in the product mix, through the
inclusion of sales of RTL and FBS, together with the distribution business of
Biotrace SA from January 2002.
Expenses:
Selling and administrative costs were #4.98 million (2001: #3.91 million) before
exceptional items, increasing as anticipated over 2001 with the inclusion of a
full year of costs of the acquisitions made in 2001, together with the sales and
marketing costs of Biotrace SA included from January 2002. In addition the
overheads associated with the acquisitions made in 2002 increased costs further.
Excluding these increased costs, underlying overheads were unchanged. As the
Group continues to expand its operations and increase its distribution channels,
costs are expected to increase, offset by efficiency improvements and cost
savings where appropriate. Goodwill amortisation during the period amounted to
#0.13 million (2001: #0.04 million).
Result for the Year:
The profit before tax and exceptional items increased by 25% to #2.20 million
(2001: #1.76 million). This included a loss of #0.15 million (2001: #0.06
million) relating to Lucigen Limited and a modest loss of #0.01 million for
Biotrace SA. Lucigen's performance improved in the final quarter, operating
profitably for the first time. This performance is expected to continue in 2003.
Exceptional costs of #0.18 million (2001: #0.07 million) were incurred in
relation to integration of the businesses acquired during the year and the final
elements of the consolidation of our North American operations in Cincinnati and
closure of our New Jersey facility. The profit before taxation was #2.01 million
compared with #1.94 million in 2001, however, 2001 benefited from the profit of
#0.25 million arising from the sale and leaseback of the head office building.
The post tax result of #1.66 million represents a return on average
shareholders' funds of 16%.
Cash flow from operating activities remained strong, increasing by 11% over 2001
at #2.78 million (2001: #2.50 million) derived from the increased profitability
and a good performance in reducing working capital of the underlying operations
by #0.16 million against the back drop of an expanding business.
The increase in the operational performance of the Group coupled with the strong
cash flow, gives the Board the confidence to declare an increased dividend of
0.96p for the full year amounting to #0.35 million. This represents an increase
of 20% over 2001 and is more than 5 times covered by earnings per share before
exceptional items of 5.00p.
Taxation:
The tax charge for the year of #0.43 million (2001 restated: #0.3 million),
represents an equivalent consolidated tax charge of 21%. As in prior periods,
this principally arises on taxable profits in the UK as the Group utilises tax
losses available in North America. The Group has adopted FRS 19 'Deferred tax'
and has restated prior years. This has resulted in the addition of a deferred
tax asset amounting to #0.51 million (2001: #0.4 million) on the Group's balance
sheet.
Balance Sheet:
The Group's balance sheet has strengthened in 2002. Equity shareholders' funds
have increased by 15% to #10.8 million arising from the retained profits for the
period of #1.31 million, less a foreign currency exchange adjustment of #0.07
million and the issue of #0.19 million worth of new shares.
256,724 ordinary shares were issued in the year. Of these, 112,860 were issued
in December 2002 as contingent consideration due on the acquisition of RTL in
2001, whilst the balance of 143,864 was issued to satisfy the exercise of
options in the period.
Capital investment totalled #0.83 million for the year (2001: #0.48 million).
Intangible assets increased to #4.26 million through goodwill arising on the
acquisition of FBS and Toucan Technologies, the final payment of #0.1 million
relating to the acquisition of RTL and recognising #0.22 million of goodwill in
setting up Biotrace SA.
Stock increased in the period by #0.09 million to #1.57 million, but the
underlying position when excluding acquisitions, reflected a fall of #0.24
million following an initiative to reduce stocks introduced in 2001. As in
2001, debtors include #0.1 million of deferred consideration arising from the
disposal of the head office building in 2001.
Net cash balances decreased by #1.64 million as operating activities generated
#2.78 million offset by investment in new businesses and markets of #2.84
million, combined with capital expenditure of #0.99 million, corporation tax
payments of #0.47 million and the 2001 dividend payment of #0.29 million. Cash
balances on deposit at the year-end amounted to #3.63 million leaving the Group
well placed to invest in future growth of the business.
OUTLOOK:
Much has been achieved in 2002 to implement plans to sustain the level of growth
seen in all areas of the business. Top line growth in 2003 will be generated in
part from a full year of contribution from the FBS acquisition but largely
through organic growth. The enhanced product range coupled with our direct sales
organisation, establishing itself in key geographies, will fuel this growth. To
supplement organic growth in the business, we will continue to seek out
synergistic acquisitions that will add value to our customers and to our
earnings.
With a strong balance sheet and operational cash flow, the Company is now well
positioned to take advantage of the opportunities for profitable growth across
all our focus markets. This year Management is continuing its drive to improve
manufacturing efficiencies and establish direct sales in major markets, which
should positively impact on financial performance.
GROUP PROFIT AND LOSS ACCOUNT
for the year ended 31 December 2002
Note 2002 2002 2001 2001
Restated - Note 4
#'000 #'000 #'000 #'000
TURNOVER 1 12502 9601
COST OF SALES (4522) (3007)
________ ________
GROSS PROFIT 7980 6594
Selling and administrative expenses (4983) (3908)
- before exceptional items ________ ________
- exceptional 2 (162) (65)
________ ________
(5145) (3973)
Development costs (971) (1022)
________ ________
(6116) (4995)
________ ________
OPERATING PROFIT (continuing operations) 1864 1599
Share of operating profit in joint venture 54 32
________ ________
Total operating profit & share of joint venture 1918 1631
Loss/profit on the sale of tangible fixed assets (20) 247
Interest receivable and similar income - Group 177 91
- Joint Venture 1 -
Interest payable and similar charges - Group (9) (5)
- Joint Venture (53) (27)
________ ________
Profit on ordinary activities before exceptional
Items & taxation 2196 1755
Exceptional revenue - 247
Exceptional costs (182) (65)
________ ________
PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION 2014 1937
Tax on profit on ordinary activities 4 (431) (304)
________ ________
Profit after tax and before minority interest 1583 1633
Minority interests 81 32
________ ________
PROFIT FOR THE FINANCIAL YEAR 1664 1665
Dividend 5 (351) (290)
________ ________
RETAINED PROFIT 1313 1375
________ ________
EARNINGS PER SHARE
- basic 6 4.57p 4.80p
- diluted 4.49p 4.78p
- before exceptional items 5.00p 4.22p
GROUP STATEMENT OF TOTAL
RECOGNISED GAINS AND LOSSES
for the year ended 31 December 2002
2002 2001
Restated
- Note 4
#'000 #'000
Profit for the financial year 1664 1665
Difference in net investment in foreign enterprises arising
from changes in foreign currency exchange rates (66) (8)
Profit on disposal reinvested in joint venture - 29
________ ________
TOTAL RECOGNISED GAINS AND LOSSES 1598 1686
________ ________
Prior year adjustment relating to accounting policy for
deferred tax (note 4) 400
________
Total recognised gains and losses since last annual report 1998
________
GROUP BALANCE SHEET
At 31 December 2002
Note 2002 2001
Restated
- Note 4
#'000 #'000
FIXED ASSETS
Intangible assets 3 4258 2374
Tangible assets 1806 830
Investments in joint venture
- share of gross assets 749 741
- share of gross liabilities (602) (595)
________ ________
6211 3350
CURRENT ASSETS
Deferred tax asset 4 513 400
Other debtors due in more than one year 100 100
Debtors due in less than one year 2715 2358
________ ________
Debtors 3328 2858
Stocks 1571 1482
Cash at bank and in hand 3629 5269
________ ________
8528 9609
CREDITORS - Amounts falling
due within one year (2929) (3323)
________ ________
NET CURRENT ASSETS 5599 6286
________ ________
TOTAL ASSETS LESS CURRENT LIABILITIES 11810 9636
________ ________
CREDITORS - Amounts falling ________ ________
due after more than one year (586) -
________ ________
TOTAL NET ASSETS 11224 9636
________ ________
CAPITAL AND RESERVES
Called up share capital 3653 3627
Share premium account 7680 7607
Merger reserve 390 301
Revaluation reserve 29 29
Profit and loss account 7 (949) (2196)
________ ________
EQUITY SHAREHOLDERS' FUNDS 8 10803 9368
Minority interest share in net assets 421 268
________ ________
11224 9636
________ ________
GROUP CASH FLOW STATEMENT
for the year ended 31 December 2002
Note 2002 2001
#'000 #'000
NET CASH FLOW FROM OPERATING
ACTIVITIES 9 2779 2496
________ ________
RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE
Interest received 183 83
Interest paid (57) (28)
Interest paid in respect of hire purchase agreements (5) (2)
________ ________
121 53
TAXATION
Amounts paid in respect of UK Corporation Tax (472) (131)
________ ________
CAPITAL EXPENDITURE AND
FINANCIAL INVESTMENT
Payments to acquire tangible fixed assets (830) (475)
Payments to acquire intangible fixed assets (175) -
Receipts from sale of tangible fixed assets 20 1197
________ ________
(985) 722
________ ________
ACQUISITIONS AND DISPOSALS
Purchase of subsidiary undertakings (2370) (119)
Net overdraft acquired with subsidiary (120) (44)
Cash acquired with business 76 1
Purchase of businesses (429) (489)
Purchase of interest in joint venture - (143)
________ ________
(2843) (794)
________ ________
EQUITY DIVIDENDS PAID (289) -
________ ________
NET CASH (OUTFLOW) / INFLOW
BEFORE FINANCING (1689) 2346
FINANCING
Issue of ordinary share capital 89 2212
Repayment of capital element of hire
purchase and finance lease agreements (22) (29)
________ ________
67 2183
________ ________
NET CASH (OUTFLOW)/ INFLOW 10 (1622) 4529
________ ________
Notes
1. TURNOVER
An analysis of turnover by geographical area is as follows:
___________________________________________________________________________________________________________________
2002 2001
#'000 #'000
___________________________________________________________________________________________________________________
Europe 7995 6413
Americas 3622 2722
Rest of The World 885 466
________ ________
12502 9601
________ ________
An analysis of turnover by business unit is as follows:
___________________________________________________________________________________________________________________
2002 2001
#'000 #'000
___________________________________________________________________________________________________________________
Food Safety 7845 6003
Industrial & Environmental 1144 995
Civil Defence & Military 1903 2434
Healthcare 1610 169
________ ________
12502 9601
________ ________
2. EXCEPTIONAL ITEMS
Included in selling and administrative expenses are exceptional items of #0.18
million (2001: #0.07 million) of costs associated with the restructuring of part
of the Group's activities, principally arising from the acquisition in 2002 of
FBS and the consolidation of the North American operation in Cincinnati.
3. GOODWILL
During the year the Group made the following investments:
Biotrace SA
Effective from 1 January 2002, the Company entered into a start-up joint venture
with Tripette & Renaud of France. The new venture, Biotrace SA, is 53% owned by
the Company, with 47% owned by Tripette & Renaud. The Company acquired its
shareholding by way of new shares issued by Biotrace SA amounting to #230,000
and payment to Tripette & Renaud of #23,000 for existing shares.
Goodwill introduced by Tripette and Renaud into the business was valued at
#227,000 at 1 January 2002.
Trading for the year to 31 December 2002 has been consolidated into the Group's
results including turnover of #820,000 and a net loss for the year of #14,000.
Toucan Technologies
On 18 May 2002, the Company, through its North American subsidiary Biotrace
Inc., acquired certain business assets of Toucan Technologies Inc for #146,000
(including additional consideration paid in October 2002).
The fair value of assets acquired amounted to #10,000 of stock, so after costs
of #5,000, #141,000 of goodwill had been include in the group.
Following the integration of Toucan within the Group, its contribution to Group
sales and operating profit are not separately identifiable.
Fred Baker Scientific Ltd
On 15 October 2002, the Company acquired a 100% shareholding in Fred Baker
Scientific Limited, a company incorporated in Great Britain, for an initial
payment of #1,470,000. Additional consideration of up to #1,080,000 may be
payable by 2005 depending on certain performance milestones being achieved. Of
this amount #580,000 has been estimated as the fair value of contingent
consideration and included in the calculation of goodwill.
The main activities of Fred Baker Scientific Ltd are the development and
manufacture of a range of pre-prepared culture media for the pharmaceutical
industry and suppliers of specialist microbiology and life science products.
The company has been subsequently renamed Biotrace Fred Baker Ltd.
Post acquisition trading has been consolidated into the Group's results,
including turnover of #659,000 and profit after tax of #48,000.
The provisional fair value of assets acquired with the company were :
#'000
Fixed assets 575
Stocks 345
Debtors 452
Creditors (802)
________
570
Satisfied by the following consideration: ________
Cash 1470
Deferred cash consideration 580
Acquisition costs 94
Net cash acquired (76)
________
2068
________
Goodwill 1498
________
Ruskinn Technology Ltd
In December the final amount of contingent consideration payable to the original
shareholders of Ruskinn Technology was triggered following the results of the
first full year of trading within the group. This was paid in the form of
112,860 new ordinary shares being issued to a value of #100,000.
During the year additional adjustments were made to reduce the fair value of
assets acquired with Ruskinn and reflect final acquisition costs.
Total additional goodwill arising was #145,000.
4. TAXATION
The group has adopted FRS 19 'Deferred tax' in these financial statements. The
comparative figures have been restated accordingly. The effect of the
restatement is to increase net assets at 31 December 2000 by #300,000. The
effect on 2002 and 2001 is as follows:
___________________________________________________________________________________________________________________
2002 2001
#'000 #'000
___________________________________________________________________________________________________________________
Tax (charge) / credit
As previous policy (544) (404)
Deferred tax credit 113 100
________ ________
As restated (431) (304)
________ ________
Net Assets
As previous policy 10711 9236
Deferred tax provision 513 400
________ ________
As restated 11224 9636
________ ________
Earnings per share (basic)
As previous policy 4.26p 4.51p
Effect of deferred tax charge 0.31p 0.29p
As restated 4.57p 4.80p
2002 2001
pence per share pence per share
5. DIVIDEND
Dividend - proposed 0.96 0.80
The dividend proposed in respect of the year ending 31 December 2002 will be
payable on 19 May 2003 to shareholders on the register on 22 April 2003.
6. EARNINGS PER SHARE
Earnings per share is based on the profit after taxation of #1.66 million (2001:
#1.67 million) and the weighted average number of shares in issue during the
year of 36,378,562 (2001: 34,663,759). Diluted earnings per share is based on
the profit after taxation of #1.66 million (2001: #1.67 million) and 37,032,449
(2001: 34,835,298) ordinary shares.
The Group has calculated an earnings per share before exceptional items in order
to inform shareholders of the underlying position of the Group's results. The
earnings before exceptional items is calculated in the following way:
2002 2001
#'000 #'000
Profit after tax and minority interests 1664 1665
Add: Loss/(profit) on disposal of fixed assets 20 (247)
Add: Exceptional administrative expenses 162 65
Less: Tax on exceptional items (cost only) (27) (20)
________ ________
1819 1463
________ ________
7. Profit and loss account
2002 2001
#'000 #'000
Accumulated losses brought forward as
previously stated (2596) (3863)
Prior year adjustment 400 300
________ ________
(2196) (3563)
Profit for the period 1664 1665
Exchange difference on translation (66) (8)
Dividend proposed (351) (290)
________ ________
Accumulated losses carried forward (949) (2196)
________ ________
8. Reconciliation of movements in Shareholders' funds
2002 2001
#'000 #'000
Profit for period 1664 1665
Dividend proposed (351) (290)
Shares issued 188 2316
Shares to be issued - (104)
Exchange difference on translation (66) (8)
Revaluation reserve - 29
________ ________
Net increase to equity shareholders' funds 1435 3608
Opening equity shareholders' funds as previously
stated 8968 5460
Prior year adjustment 400 300
________ ________
Closing equity shareholders' funds 10803 9368
________ ________
9. Reconciliation of operating profit to
net cash flow from operating activities
2002 2001
#'000 #'000
Operating profit 1864 1599
Depreciation and amortisation charges 648 629
Decrease in stocks 244 342
Decrease/(increase) in debtors 53 (482)
(Decrease)/increase in creditors (136) 376
Share in joint venture results 54 32
Currency adjustment on intercompany balances 52 -
________ ________
2779 2496
________ ________
10. Reconciliation of net cashflow
to movement in net funds
2002 2001
#'000 #'000
Net cashflow (1622) 4529
Cash outflow from decrease in finance lease financing (11) 29
________ ________
Change in net funds from cash flows (1633) 4558
Effect of exchange rate changes and non cash
movements (12) 1
________ ________
Movement in net funds in period (1645) 4559
Net funds b/fwd 5249 690
________ ________
Net funds c/fwd 3604 5249
________ ________
11. Analysis of net funds
Cash
B'fwd movements Non-cash C'fwd
movements
#'000 #'000 #'000 #'000
Cash at bank and in hand 5269 (1628) (12) 3629
Overdraft (6) 6 - -
_____________________________________________
Net cash 5263 (1622) (12) 3629
Finance lease and hire purchase agreements
(14) (11) - (25)
_____________________________________________
Net funds 5249 (1633) (12) 3604
_____________________________________________
12. Basis of preparation
The financial information set out above does not constitute the company's
statutory accounts for the years ended 31 December 2001 or 2002. The financial
information for 2001 is derived from the statutory accounts for 2001 which have
been delivered to the registrar of companies. The auditors have reported on the
2001 accounts; their report was unqualified and did not contain a statement
under section 237(2) or (3) of the Companies Act 1985. The statutory accounts
for 2002 will be finalised on the basis of the financial information presented
by the directors in this preliminary announcement and will be delivered to the
registrar of companies following the company's annual general meeting.
This Preliminary Statement was approved by the Board of Directors on 5 March
2003.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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