RNS Number:7195K
Centurion Electronics PLC
06 May 2003
Strictly embargoed until: 07:00, Tuesday 6 May 2003
Centurion Electronics plc
Maiden Interim Results Show Impressive Growth
Centurion Electronics plc ("Centurion" or the "Company"), a UK market leader in
the field of in-car audio-visual entertainment, is pleased to announce its
interim results for the six months ended 31 March 2003.
Highlights for the six months ended 31 March 2003
* 211% increase in profit on ordinary activities before taxation to
#398,000 (31 March 2002: #128,000)
* 95% increase in turnover to #2,761,500 (31 March 2002: #1,414,500)
* Successful launch of second generation Plug & PlayTM portable DVD
system
* Significant new sales channels for Plug & PlayTM range through the
Argos catalogue and CD Bramall car dealer group
* Post period end agreement with Nissan to supply 2003 model Nissan
Micra with in-car DVD system
* Development of infrastructure, office opening in Taiwan and post
period end, move to new UK premises
Steven Cunningham, Chairman of Centurion, commented "The in-car audio-visual
market in the UK continues to show strong and sustainable growth and we have
developed an infrastructure which enables us to capitalise on increasing demand
from retailers, motor dealerships and motor manufacturers.
"During the first six months of the current year we achieved substantial growth
in terms of sales and profitability, which has been maintained in the first
weeks of the second half year. I am confident that this trend will continue as
we add further contracts to our portfolio and therefore believe that the results
for the year as a whole will be highly satisfactory."
For further information please contact:
Steven Cunningham, Lindsay Mair Rosie Brown
Chairman John Prior Melissa Hubbard
Centurion Electronics Corporate Synergy Tavistock Communications
Tel: 01707 330550, Tel: 020 7626 2244 Tel: 020 7600 2288
steven@ceplc.net lmair@corporatesynergy.co.uk rbrown@tavistock.co.uk
Chairman's Statement
Results and Dividend
The past six months have been an important time for Centurion Electronics plc.
We raised #2.3 million on our admission to the Alternative Investment Market
(AIM) in December 2002, to help progress the next stage of our expansion and I
am delighted to announce the Company's continued substantial growth in sales and
profitability.
Profit on ordinary activities before taxation grew by 211% from #128,000 to
#398,000, whilst turnover increased by 95% from #1,414,500 to #2,761,500. Basic
earnings per share grew from 0.90p to 1.66p and diluted earnings per share from
0.69p to 1.60p.
As was stated in our AIM admission document dated 21 November 2002, the Company
intends, subject to satisfactory trading, to recommend a final dividend for the
current year ended 30 September 2003. No interim dividend will be payable.
Insurance Claim
As announced on 2 April 2003, we have settled our insurance claim relating to
the theft of stock last year, for a total of #160,000. In our accounts for the
year ended 30 September 2002, included in our AIM admission document, the cost
was treated as an exceptional item, and the potential recovery was not
recognised, in accordance with FRS 12. I am pleased to report that the recovery
while not included in these interim results, will now be included in our
accounts for the year ended 30 September 2003.
Products
During the period, Centurion has made considerable progress both in gaining
access to new sales channels and in the area of product development, helping our
range remain ahead of potential competition. In particular, we continue to
stress the importance of product safety and are pioneering testing at vehicle
inspectorate centres throughout the UK to develop standards for our product
category. In the last six months, we have also added further resources to our
Research and Development team to ensure ongoing product innovation.
Plug & PlayTM
Plug & PlayTM, our portable entertainment system which can be plugged into a
car's lighter socket, continues to be well received, with orders increasing over
the period. Available from major retailers including Argos, Halfords,
Motorworld, Currys and Dixons, it is becoming a recognisable brand on the high
street. Plug & PlayTM was featured in the Argos catalogue for the first time in
Autumn/Winter 2002, is currently in the Spring/Summer edition and has been
reselected for Argos' next Autumn/Winter catalogue.
In December 2002, we signed our second agreement with a major car dealer group.
CD Bramall plc, is the second largest car dealer group in the UK and Plug & Play
TM is now available from 75 of its dealerships. This is in addition to an
existing agreement with Pendragon Group plc, the largest car dealer group in the
UK with 125 dealerships.
We expect further growth to be driven by the successful launch of our second
generation Plug & PlayTM portable DVD system, the PP60. Developed over the past
18 months, this has a six inch screen but the overall system is more compact
than its predecessor. It is the first product of its type to offer integrated
wireless headphone capability and stereo sound.
CenturionTM
CenturionTM is our professional product category, individually designed for
motor manufacturers and we continue to progress our development programmes for
Nissan, Fiat and Toyota. In addition, there are a number of new projects in the
pipeline which we look forward to announcing in due course.
In April, after the period end, we announced that we had signed a new agreement
with Nissan to supply its 2003 model Nissan Micra with an in-car DVD system, now
available throughout all of Nissan's 229 dealerships in the UK. Early
indications are that the system has been extremely well received, with sales
exceeding initial forecasts.
Infrastructure
As we mentioned in our AIM admission document, a proportion of the funds raised
were to contribute to the further development of our infrastructure. In
November 2002, we opened an office in Taiwan, which is responsible for liaison
with suppliers, quality control and research and development throughout the Far
East.
We have recently moved into new premises of 25,000 square feet in Welwyn Garden
City, giving us substantially more space for growth and development and allowing
us to house the UK side of the business under one roof, bringing associated cost
savings and better controls. In particular, we have been able to quadruple the
size of our sales office and to incorporate a research and development
laboratory.
I would also like to take this opportunity to welcome John Bell as head of
operations, who will oversee all aspects of product logistics, warehousing and
purchasing. He brings with him a wealth of experience and further adds to the
Company's dynamic management team.
European Market
As well as continuing to develop our position in the UK, we also plan to use our
existing relationships with motor manufacturers to expand into Europe. We have
recruited specialist sales staff to develop our European business and initial
sample orders for Centurion's full product range have been received from France,
Spain, Germany, the Czech Republic and Holland.
Outlook
The in-car audio-visual market in the UK continues to show strong and
sustainable growth and we have developed an infrastructure which enables us to
capitalise on increasing demand from retailers, motor dealerships and motor
manufacturers.
During the first six months of the current year we achieved substantial growth
in terms of sales and profitability, which has been maintained in the first
weeks of the second half year. I am confident that this trend will continue as
we add further contracts to our portfolio and therefore believe that the results
for the year as a whole will be highly satisfactory.
Finally I would like to thank the entire team at Centurion for their
contribution to the Company's achievements and our shareholders, customers and
business partners for their continued support.
Steven Cunningham
Chairman
Profit and loss account for the six months ended 31 March 2003
Note Unaudited Unaudited Audited
6 months to 6 months to Year to
31 March 31 March 30 September
2003 2002 2002
# # #
Turnover 2,761,496 1,414,477 4,138,221
Cost of sales 1,526,409 853,451 2,316,764
Gross Profit 1,235,087 561,026 1,821,457
Administrative expenses 795,495 393,194 1,277,539
Operating Profit 439,592 167,832 543,918
Interest payable (41,700) (39,852) (108,827)
Profit on ordinary activities
before taxation 397,892 127,980 435,091
Taxation on profit from ordinary
activities 3 103,896 35,180 115,759
Profit on ordinary activities after
taxation 293,996 92,800 319,332
Dividends - 1,942 56,817
Retained profit for the financial
period 293,996 90,858 262,515
Earnings per share 2
Basic 1.66p 0.90p 2.80p
Diluted 1.60p 0.69p 2.11p
Statement of total recognised gains and losses for the six months ended 31 March 2003
Note Unaudited Unaudited Audited
6 months to 6 months to Year to
31 March 31 March 30 September
2003 2002 2002
Profit for the period 293,996 90,858 262,515
Total recognised gains and losses
for the period 293,996 90,858 262,515
Prior year adjustment 7 - - (30,641)
Total gains and losses since last
annual report 293,996 90,858 231,874
Balance Sheet as at 31 March 2003
Note Unaudited Unaudited Audited
6 months to 6 months to Year to
31 March 31 March 30 September
2003 2002 2002
# # #
Fixed assets
Tangible assets 478,909 125,776 196,949
Current assets
Stock 1,465,743 817,727 727,788
Debtors:
Trade debtors subject to financing 1,688,353 764,599 1,085,604
Less: non-returnable advances (688,434) (380,577) (701,659)
999,919 384,022 383,945
Other debtors 215,790 29,890 261,883
Cash at hand and in bank 1,029,491 76,990 157,485
3,710,943 1,308,629 1,531,101
Creditors: amounts falling due
within one year (1,296,393) (521,971) (612,299)
Net current assets 2,414,550 786,658 918,802
Total assets less current liabilities 2,893,459 912,434 1,115,751
Creditors: amounts falling due
after more than one year (136,319) (141,627) (161,969)
Provisions for liabilities and charges (11,317) - (11,317)
2,745,823 770,807 942,465
Capital and reserves
Called up share capital 217,667 340,000 340,000
Share premium account 1,901,695 270,000 270,000
Capital redemption reserve 400,000 - -
Profit and loss account 226,461 160,807 332,465
Shareholders' funds 2,745,823 770,807 942,465
Cash Flow Statement for the six months ended 31 March 2003
Note Unaudited Unaudited Audited
6 months to 6 months to Year to
31 March 31 March 30 September
2003 2002 2003
# # #
Net cash inflow from operating activities 4 (243,672) (352,038) 148,285
Returns on investments and servicing
of finance
Interest paid (41,700) (39,852) (108,827)
Preference dividends paid (14,219) - (41,624)
Net cash outflow from returns on (55,919) (39,852) (150,451)
investments and servicing of finance
Taxation
UK corporation tax paid - (15,068) (54,752)
Capital expenditure and financial
investment
Purchase of tangible fixed assets (325,216) (36,473) (86,825)
Sale of tangible fixed assets 12,650 - 11,000
Net cash outflow from capital expenditure (312,566) (36,473) (75,825)
Equity dividends paid - (1,942) -
Cash outflow before financing (612,157) (445,373) (132,743)
Financing
Issue of share capital (net of expenses
of #390,738) 1,909,362 500,000 500,000
Redemption of preference shares (400,000) - -
Bank loan (paid)/advanced (14,583) (21,420) (71,561)
Capital element of finance lease payments (10,616) (1,889) (18,825)
Cash inflow from financing 1,484,163 476,691 409,614
Increase in cash for the period 5,6 872,006 31,318 276,871
Notes to the interim report
1. Accounting policies
The financial information contained in this interim statement has been prepared
on the basis of the accounting policies set out in the Company's audited
financial statements for the year ended 30 September 2002 which have been
applied consistently.
2. Earnings per share
Earnings per ordinary share have been calculated using the weighted average
number of shares in issue during the relevant financial periods. The weighted
number of shares in issue for each period have been adjusted to take into
account the share split of 1,000 ordinary shares of 0.1 pence for every #1
ordinary share which took place on 4 November 2002. The weighted number of
shares in issue for each period have also been adjusted to take account of the
reclassification of 196,667 of 200,000 issued preferred ordinary shares as
196,667 deferred shares and the reclassification of the remaining 3,333
preferred ordinary shares as 3,333,000 ordinary shares of 0.1 pence each.
The weighted average number of equity shares in issue for the basic earnings per
share calculation is 17,704,859 (6 months to 31.03.02 10,000,000) and the
earnings, being profit after tax and preference dividends, are #293,996 (6
months to 31.03.02 #90,858) The numerator for the diluted earnings per share
disclosure is the same as the basic earnings per share numerator.
The denominator for the diluted earnings per share disclosure is as follows:-
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 March 31 March 30 September
2003 2002 2002
Basic earnings per share denominator
ordinary shares of 0.1pence 17,704,859 10,000,000 10,000,000
Weighted average number of cumulative
convertible participating preferred
ordinary shares (prior to conversion) 640,962 3,186,494 3,259,948
Dilutive effect of company share
option schemes 66,595 - -
Total 18,412,416 13,186,494 13,259,948
3. Taxation
The taxation charge has been calculated on the estimated year end rate.
4. Reconciliation of operating profit to net
cash inflow from operating activities
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 March 31 March 30 September
2003 2002 2002
# # #
Operating profit 439,592 167,832 543,918
Depreciation 30,258 10,789 30,194
Profit/loss on sale of fixed assets 348 - 7,334
Increase in stocks (737,955) (326,054) (236,115)
Increase in debtors (569,881) (115,152) (347,068)
Increase/(decrease) in creditors 593,966 (89,453) 150,022
Net cash inflow from operating activities (243,672) (352,038) 148,285
5. Reconciliation of net cash inflow/(outflow) Unaudited Unaudited Audited
to movement in net debt 6 months to 6 months to Year to
31 March 31 March 30 September
2003 2002 2002
# # #
Increase in cash in the year 872,006 31,318 276,871
Cash inflow from decrease in debt
and lease finance 41,539 23,309 90,386
Change in net debt resulting from cashflow 913,545 54,627 367,257
New finance leases (16,340) - (58,560)
Non cash consideration in respect of share issue - 60,000 60,000
Movement in net debt in year 897,205 114,627 368,697
Net debt at start of period (50,601) (419,298) (419,298)
Net debt at end of period 846,604 (304,671) (50,601)
6. Analysis of net debt At 1 October Cashflow Non cash At 31 March
2002 changes 2003
# # # #
Cash in hand and at bank 157,485 872,006 - 1,029,491
Debt due after I year (108,333) 14,583 - (93,750)
Debt due within 1 year (25,000) - - (25,000)
Obligations under finance leases (74,753) 26,956 (16,340) (64,137)
41,539
Total (50,601) 913,545 (16,340) 846,604
7. Prior year adjustment
The prior year adjustment in the year ended 30 September 2002 results from a
change in accounting policy for the treatment of accreditation costs. The
directors on reviewing the accounting policy for accreditation costs consider it
more appropriate to write such expenditure off in the year in which it is
incurred rather than capitalising the costs and writing them off over three
years as was previously adopted.
Accreditation
Costs
#
Cost
At 1 October 2001 as originally stated 54,717
Prior year adjustment (54,717)
At 1 October 2001 (as restated) and as at 30 September 2002 -
Amortisation
At 1 October 2001 as originally stated 24,076
Prior year adjustment (24,076)
At 1 October 2001 (as restated) and as at 30 September 2002 -
Net Book Value
At 30 September 2002 -
At 30 September 2001 as restated -
8. Non-statutory Accounts
The financial information contained in this report does not constitute full
statutory accounts as defined by section 240 of the Companies Act 1985.
The financial information in respect of the year ended 30 September 2002 has
been extracted from the statutory accounts for that year which have been filed
with the Registrar of Companies. The auditors report on those accounts was
unqualified.
Copies of this report are being sent to all shareholders and are available from
the Company's offices at Satellite House, City Park, Welwyn Garden City, Herts.
AL7 1LY, free of charge, for a period of one month from the date of this
announcement.
INDEPENDENT REVIEW REPORT TO CENTURION ELECTRONICS PLC
Introduction
We have been instructed by the Company to review the profit and loss account for
the six months ended 31 March 2003, the statement of total recognised gains and
losses for the six months ended 31 March 2003, the balance sheet as at 31 March
2003, the cash flow statement for the six months ended 31 March 2003 and notes 1
to 8 to the interim report. We have read the other information contained in the
interim report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.
This report is made solely to the Company in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the rules of the
London Stock Exchange for companies trading securities on the Alternative
Investment Market. Our review has been undertaken so that we might state to the
Company those matters we are required to state to it in this report and for no
other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company for our review work, for
this report, or for the conclusions we have reached.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. Where a company
is fully listed, the directors are responsible for preparing the interim report
in accordance with the Listing Rules of the Financial Services Authority which
require that the accounting policies and presentation applied to the interim
figures should be consistent with those applied in preparing the preceding
annual accounts except where any changes, and the reasons for them, are
disclosed. The directors of Centurion Electronics plc have voluntarily complied
with this requirement in preparing the interim report.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of the Company's management and
applying analytical procedures to the financial information and underlying
financial data and based thereon, assessing whether the accounting policies and
presentation have been consistently applied unless otherwise disclosed. A review
excludes audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom Auditing Standards and therefore
provides a lower level of assurance than an audit. Accordingly, we do not
express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 March 2003.
BDO Stoy Hayward
Chartered Accountants
London
5 May 2003
This information is provided by RNS
The company news service from the London Stock Exchange
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