Interim Results
May 30 2003 - 3:00AM
UK Regulatory
RNS Number:7028L
Advanced Power Components PLC
30 May 2003
ADVANCED POWER COMPONENTS PLC
Interim results for the six months ended 28 February 2003
CHAIRMAN'S STATEMENT
I have pleasure in presenting the interim report of Advanced Power Components
plc for the six months ended 28 February 2003.
The loss before tax for the period was #176,000. This total includes losses
amounting to approximately #293,000 from the operation of our Communications
Product business for the first four months of the period, to 31 December 2002.
That business, along with all assets relating to it, was sold to Bel Fuse Inc on
2 January 2003 for a cash consideration of approximately #3,450,000. The net
profit from that sale, amounting to approximately #268,000, is also included in
the reported result for the period.
The sale of the Communications Products business was considered to be in
shareholders' best interests for a number of reasons. Primarily, sales of our
traditional ISDN and ADSL interface products continued to be held back by the
continued depressed state of the Telecommunications market in North America.
Steps were taken to develop alternative markets and significant progress was
made in developing sales into Asia where our VDSL products were established as
the industry standard. However, significant price erosion in that region during
the summer of 2002 drastically reduced margins and this factor, combined with
severely limited forward visibility, prompted us to take action.
The sale of that business now leaves us in a strong cash position, with cash
balances of #2,447,000 at the period-end. This provides a foundation for us to
generate profitable growth in our remaining activities centred around Electronic
Component Distribution (ECD) and including our Electronic Manufacturing Services
(EMS).
The market for Distribution during the period remained difficult although
trading in the second half year has shown some sustained improvement. To help
generate future growth in our ECD business we have been actively seeking to
expand our customer base and our product offering. Three new UK sales franchises
have been secured since the 2002 financial year-end and we are continuing
discussions with additional manufacturers, with the aim of increasing our
specialist product offering still further. Sales from our EMS activities
commenced to our initial customer during the period and discussions are
continuing with a number of other UK companies who see advantages in having us
manufacture for them on a subcontract basis.
In summary, the Company has taken action during the period to deal with the
predominant cause of the losses sustained over the last two years. The resultant
improvement in our cash position means that we are now able to position
ourselves to take advantage of profitable growth opportunities. The Board
therefore views the future with renewed optimism.
R. F. Thorne, O. B. E.
Chairman
30 May 2003
PROFIT AND LOSS ACCOUNT
Half year to Half year to Year to
28 February 28 February 31 August 2002
2003 2002
(unaudited) (unaudited) (audited)
Note #000 #000 #000
Turnover 2 2,540 3,181 6,312
----------- ----------- ----------
Operating loss (427) (466) (1,426)
Profit on disposal of 3 268 - -
discontinued activity
Other income - 6 6
Net interest payable (17) (30) (64)
----------- ----------- ----------
Loss on ordinary (176) (490) (1,484)
activities before
taxation
Tax credit on loss on 14 - 295
ordinary activities
----------- ----------- ----------
Loss on ordinary (162) (490) (1,189)
activities after
taxation
Dividends - - -
----------- ----------- ----------
Retained loss for the (162) (490) (1,189)
period ----------- ----------- ----------
The Company has no recognised gains or losses other than those included in the
profit and loss account.
There is no difference between the historical cost profit and loss and the
figures as stated above.
Loss per share (0.7p) (2.1p) (5.0p)
Loss per share is based 24,864,512 23,680,512 23,988,676
on the weighted average
number of shares in
issue in the respective
periods as follows :
No additional shares were issued during the six months to 28 February 2003 and
the number of shares in issue remained at 24,864,512. There are currently no
dilutive share options in issue.
BALANCE SHEET
28 February 28 February 31 August 2002
2003 2002
(unaudited) (unaudited) (audited)
Note #000 #000 #000
Fixed assets
Tangible assets 185 890 791
----------- ----------- ----------
Current assets
Stocks 287 3,395 2,790
Debtors and prepayments 1,135 1,976 1,604
Cash at bank 4 2,447 14 19
----------- ----------- ----------
3,869 5,385 4,413
Creditors
Amounts falling due (813) (2,562) (1,749)
within one year
----------- ----------- ----------
Net current assets 3,056 2,823 2,664
----------- ----------- ----------
Total assets less current 3,241 3,713 3,455
liabilities
Creditors : amounts - (67) (52)
falling due in more than
one year
----------- ----------- ----------
Net assets 3,241 3,646 3,403
----------- ----------- ----------
Capital and reserves
Called up share capital 497 473 497
Share premium account 3,098 2,666 3,098
Profit and loss account (354) 507 (192)
----------- ----------- ----------
Equity shareholders' 3,241 3,646 3,403
funds ----------- ----------- ----------
CASH FLOW STATEMENT
Half year to Half year to Year to
28 February 28 February 31 August 2002
2003 2002
(unaudited) (unaudited) (audited)
#000 #000 #000
Net cash outflow from operating (276) (233) (203)
activities ---------- ---------- ----------
Returns on investments and
servicing of finance:
Interest received
- on bank overdraft 15 - 2
- other - - 2
Interest paid
- on bank overdraft (26) (26) (61)
- on finance leases (6) (4) (4)
- other - - (3)
---------- ---------- ----------
Net interest paid (17) (30) (64)
Interest paid - - -
---------- ---------- ----------
(17) (30) (64)
Taxation refunds 296 6 6
Capital expenditure and
financial investment :
Net proceeds of disposal of 3,118 - -
discontinued activity
Payments to acquire tangible (14) (34) (51)
fixed assets ---------- ---------- ----------
3,104 (34) (51)
Equity dividends paid - - -
---------- ---------- ----------
Net cash inflow/(outflow) 3,107 (291) (312)
before management of liquid
resources and financing
Financing :
Issue of shares - - 456
Decrease in borrowings (81) - -
Capital element of finance - (14) (29)
lease repayments
---------- ---------- ----------
(81) (14) 427
---------- ---------- ----------
Increase/(decrease) in 3,026 (305) 115
cash ---------- ---------- ----------
Reconciliation of operating loss to net
cash outflow from operating activities
Operating loss (427) (466) (1,426)
Other income - 6 6
Depreciation 148 112 228
Decrease in stocks 112 81 686
(Increase)/decrease in debtors (88) 194 861
Decrease in creditors (21) (160) (558)
---------- ---------- ----------
Net cash outflow from operating
activities (276) (233) (203)
---------- ---------- ----------
NOTES TO THE INTERIM
REPORT
1. Accounting policies
The profit and loss account, balance sheet and cash flow statement have been
prepared on a basis consistent with the statutory accounts for the year ended 31
August 2002.
2. Geographical analysis of
turnover Half year to Half year to Year to
28 February 28 February 31 August 2002
2003 2002
(unaudited) (unaudited) (audited)
#000 #000 #000
UK 1,449 2,290 3,927
North America 84 281 731
Far East, Europe and other 1,007 610 1,654
----------- ----------- ----------
2,540 3,181 6,312
----------- ----------- ----------
3. Disposal of discontinued
activity
On 2 January 2003 the Company sold its Communications Products business to
subsidiaries of Bel Fuse Inc, a company incorporated in the United States of
America. The value of net assets attributable to the business sold amounted to
approximately #2,850,000. The consideration for the sale amounted to a cash
payment of US Dollars 5,500,000, which was received on 23 December 2002. After
legal expenses and reorganisation costs have been taken into account it is
estimated that the sale of the business will realise a profit of approximately
#268,000 which is included in the profit and loss account for the half year.
In addition the Company is entitled to receive a deferred consideration on sales
of relevant products by Bel Fuse. This consideration amounts to 5 per cent of
relevant sales in excess of US Dollars 5,000,000 in each of the two years
commencing 1 January 2003.
4. Analysis of net funds At Cash At
28 February flow 31 August 2002
2003
#000 #000 #000
Cash, comprising current
accounts
and overnight deposits 2,447 2,428 19
Bank overdraft (secured) - 598 (598)
----------- ----------- ----------
2,447 3,026 (579)
Finance leases due within - 29 (29)
one year
Finance leases due after one - 52 (52)
year ----------- ----------- ----------
2,447 3,107 (660)
----------- ----------- ----------
5. Basis of preparation of interim report
This interim report for the six months ended 28 February 2003 was approved by
the directors on 30 May 2003. This interim report is neither audited nor
reviewed and does not constitute statutory accounts within the meaning of
Section 240 of the Companies Act 1985. The 2002 full year figures are extracted
from statutory accounts for the year ended 31 August 2002 which include an
unqualified audit report and have been filed with the Registrar of Companies.
The comparative figures for the first six months of 2002 are taken from the
interim report for that period.
6. Distribution of interim
report
A copy of this interim report will be distributed to all shareholders.
Additional copies are available on application to the Company's registered
office:
Advanced Power Components plc, 47 Riverside, Medway City Estate, Rochester,
Kent, ME2 4DP.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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