RNS Number:4465D
Deltron Electronics PLC
11 May 2001
FOR IMMEDIATE RELEASE 11 MAY 2001
Deltron Electronics plc
Interim Results for the six months ended 31 March 2001
Deltron Electronics plc ("Deltron"), one of the leading electromechanical
component solution providers in Europe, is delighted to announce record
pre-tax profits for the half year to 31 March 2001.
Financial Highlights 2001 2000
Turnover #32.7 million #25.2 million
Profit before tax and goodwill amortisation #2.3 million #1.7 million
Adjusted earnings per share 6.3 pence 5.3 pence
Interim dividend 1.17p 1.0 pence
Key Points
- Three European acquisitions in France, Austria, Denmark
- Two new Pan-European distribution agreements with ITT Cannon
Industries (US), and Toko Inc. (Japan)
- #7.5 million successfully raised in December 2000
- Substantially stronger capital base
Paul Gourmand, Chairman of Deltron said
"I am delighted with the excellent progress that Deltron has made, and the
resulting strong performance in all areas of its operations. Given the current
economic climate we have benefited directly from our broad exposure to a
variety of industrial customers, across all sectors in the European Market.
The Group's improved financial condition and strong organic performance,
coupled with our acquisitive strategy, should allow us to maintain our aim of
doubling Deltron's size over the next two years."
For further information, please contact:
Deltron Electronics plc 01638 561156
Christopher Sawyer, Chief Executive
Edward Tozer, Finance Director
Buchanan Communications 020 7466 5000
Tim Anderson/Bobbie Swanson
Chairman's Statement
Introduction
Excellent progress has been made in the first half of this year and I am
delighted to report that Deltron has performed strongly in all areas of
operation. Today we report record interim profits before tax and goodwill
amortisation of #2.3m (2000: #1.7m). Our three European acquisitions; Discomp
Group, a French-based distributor of connectors, C&K Austria, a distributor of
electromechanical components and Sensortech, a distributor of sensor
components based in Denmark have been successfully integrated into the Group.
In addition, we completed Pan-European distribution agreements with ITT
Industries Cannon based in the USA and Toko Inc. of Japan. Lastly, the
successful fundraising in December 2000 has contributed greatly to our
improved balance sheet where shareholders funds now stand at #15.8m, greatly
increased from their level, #7.0m, at the end of our last financial year. This
substantially stronger capital base gives the Board confidence that the
Company will achieve its primary aim of doubling in size within 2 years.
Results
The Group's current momentum is best illustrated by its financial performance
and order book. Sales of #32.7m were up 29.9% on the previous year (2000: #
25.2m), of which #31.6m was from existing businesses. Turnover from recently
acquired businesses was #1.1m though this will change in the second half of
the year as the contribution from the three acquisitions mentioned above will
impact for the whole six months. The Group's profit before tax and goodwill
amortisation rose to 7% (2000: 6.8%). Our order book also remains at the
normal 2.5 months, but is larger than this time last year in line with the
increased size of the Group.
Pre-tax profits (pre-amortisation of goodwill) now stand at #2.3m (2000: #
1.7m), a very healthy increase of 34.2%. Our gross profit has changed from
34.4% in the first six months of 2000 to 32.5% in this current half-year; this
is primarily a reflection of the expansion of distribution, which has lower
margins than our manufacturing operations. Equally, our overheads have
reduced from 26.4% to 24.5%. Despite spending #4.1m on acquisitions over the
period, the net debt position is currently at #6.7m (2000: #8.6m), usefully
less than last year-end and a result of our successful fundraising in December
2000. Interest cover increased to 8 times.
Dividend
Our confidence in the Group's prospects is reflected in the recommendation of
an interim dividend of 1.17p. This is an increase of 17% on last year's level
of 1.0p. It will be paid on 17th August to shareholders on the register at
13th July.
Trading Outlook
Given the current economic slowdown, the Group has benefited from being
directly exposed to a broad spread of industrial customers from all sectors
and on a European basis. By any measure Deltron is a substantial force in the
European electromechanical sector, nevertheless it would be naive to suggest
that the Group is immune to a global recession, however we benefit from the
increased use of electromechanical products by a wide range of customers from
leading international suppliers and, as a result, we are not dependent on any
one country for our economic success. We are watching the US economic
contraction closely and can only hope that its benign effect on Deltron
continues.
Our strategy has long been intent on creating an unrivalled Pan-European
business, attractive to multi-nationals globally. We now offer a single point
of entry into the European market for US, Japanese and Asian suppliers and
customers. We intend to increase our operational reach throughout Europe.
The Group's improved financial condition and strong organic performance,
coupled with further commercially appealing acquisitions, should permit the
Board to maintain its aim of doubling Deltron's size over the next two years.
P.R. Gourmand
Chairman
GROUP PROFIT AND LOSS ACCOUNT (UNAUDITED)
FOR THE SIX MONTHS ENDED 31 MARCH
Year ended
30 September
2001 2000 2000
Note #000 #000 #000
Turnover:
Continuing Operations 31,632 25,182 54,279
Acquisitions 1,076 - -
32,708 25,182 54,279
Cost of sales (22,082) (16,520) (35,776)
Gross profit:
Continuing Operations 10,301 8,662 18,503
Acquisitions 325 - -
10,626 8,662 18,503
Selling and distribution costs (2,805) (2,340) (4,802)
Administrative costs (5,209) (4,314) (8,919)
Operating profit:
Continuing Operations 2,456 1,742 4,782
Acquisitions 156 266 -
2,612 2,008 4,782
Interest Payable (361) (314) (711)
Interest Receivable 35 9 22
Profit before tax and goodwill amortisation 2,286 1,703 4,093
Goodwill amortisation (198) (86) (242)
Profit before Tax 2,088 1,617 3,851
Taxation 2 (682) (577) (1227)
Profit on ordinary activities after 1,406 1,040 2,624
tax
Dividends (341) (231) (673)
Profit retained for the financial 1,065 809 1,951
period
Earnings per share - basic 3 5.5 p 4.9 p 12.0 p
Earnings per share - diluted 3 5.4 p 4.8 p 11.9 p
Adjusted earnings per share - basic 3 6.3 p 5.3 p 13.2 p
Adjusted earnings per share - 3 6.2 p 5.2 p 13.0 p
diluted
Dividend per share 1.17 p 1.0 p 3.0 p
TOTAL RECOGNISED GAINS AND LOSSES (UNAUDITED)
FOR THE SIX MONTHS ENDED 31 MARCH
Year ended
30
September
2001 2000 2000
#000 #000 #000
Profit for the period 1,406 1,040 2,624
Exchange differences 75 141 (372)
Total gains and losses recognised
during period 1,481 1,181 2,252
MOVEMENT IN SHAREHOLDERS' FUNDS (UNAUDITED)
FOR THE SIX MONTHS ENDED 31 MARCH
Year ended
30
September
2001 2000 2000
#000 #000 #000
Opening shareholders' funds 6,977 4,081 4,081
Profit for the period 1,406 1,040 2,624
Dividends (341) (231) (673)
Share capital issued 7,658 1,317 1,317
Exchange differences 75 141 (372)
Increase/(decrease) in shareholders'
funds for the period 8,798 2,267 2,896
Closing shareholders' funds 15,775 6,348 6,977
GROUP BALANCE SHEET (UNAUDITED)
AS AT 31 MARCH
As at
30 September
2001 2000 2000
#000 #000 #000
Fixed assets
Tangible assets 5,421 5,262 5,296
Intangible assets 9,930 4,510 5,525
15,351 9,772 10,821
Current Assets
Stocks 9,145 5,690 7,688
Debtors 16,428 11,891 13,620
Cash 3,586 1,560 2,729
29,159 19,141 24,037
Creditors:
Amounts falling due within one (18,984) (15,527) (21,358)
year
Net current assets 10,175 3,614 2,679
Total assets less current 25,526 13,386 13,500
liabilities
Creditors:
Amounts falling due after more than (9,546) (6,729) (6,302)
one year
Deferred income (205) (309) (221)
15,775 6,348 6,977
Capital and reserves
Called up share capital 1,407 1,108 1,108
Reserves 14,368 5,240 5,869
Equity shareholders' funds 15,775 6,348 6,977
GROUP CASH FLOW STATEMENT (UNAUDITED)
FOR THE SIX MONTHS ENDED 31 MARCH
Year ended 30
September
2001 2000 2000
Note #000 #000 #000
Cash flow from operating 4 434 2,284 4,300
activities
Returns on investment and servicing of (317) (340) (816)
finance
Taxation (919) (708) (735)
Capital expenditure (285) (395) (688)
Acquisitions 5 (4,057) (1,802) (3,500)
Equity dividend paid (447) (217) (439)
Cash flow before financing (5,591) (1,178) (1,878)
Financing 8,380 2,028 2,503
Change in cash 2,789 850 625
Reconciliation of cash flow to
movement in net debt
Opening net debt (8,585) (7,154) (7,154)
Change in cash 2,789 850 625
Cash flow from change in debt (722) (1,242) (1,882)
Change in net debt 2,067 (392) (1,257)
Acquired with subsidiary (3) - -
Inception of finance leases (252) (118) (158)
Amortisation of issue costs (6) - (10)
Exchange differences 101 (15) (6)
Movement in net debt 1,907 (526) (1,431)
Closing net debt (6,678) (7,680) (8,585)
INDEPENDENT REVIEW REPORT BY THE
AUDITORS TO DELTRON ELECTRONICS PLC
INTRODUCTION
We have been instructed by the company to review the financial information for
the six months ended 31st March 2001 which comprises the unaudited Group
Profit and Loss Account, Balance Sheet, Cash Flow Statement, Statement of
Total Gains and Losses, Movements in Shareholders Funds and Notes 1 to 6. 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.
DIRECTORS' RESPONSIBILITIES
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the Directors. The Directors
are responsible for preparing the Interim Report in accordance with the
Listing Rules of 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.
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 group 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 excluded 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 Standard 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
Goodwill amortisation has been disclosed separately on the Group Profit and
Loss Account but it has not been accounted for within Operating Profit in
accordance with Financial Reporting Standard 10. However, the Profit before
tax is not affected.
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 2001.
Morgan Brown & Spofforth
Chartered Accountants & Registered Auditors
82 St John Street
London
EC1M 4JN
11th May 2001
NOTES TO THE INTERIM ACCOUNTS
1. BASIS OF PREPARATION
The financial information for the year ended 30 September 2000 is derived from
the statutory accounts filed with the Registrar of Companies. The disclosure
of goodwill amortisation has been shown separately so that shareholders and
others can easily identify the calculation of adjusted earnings per share.
The auditors' report on the statutory accounts was unqualified and did not
contain a statement under Section 237 of the Companies Act 1985. The interim
accounts do not comprise statutory accounts within the meaning of Section 240
of the Companies Act 1985 but have been reviewed by the Auditors whose report
is on page 8.
2. TAXATION
The taxation charge is based on the estimated effective rate for the year
ending 30 September 2001.
3. EARNINGS PER SHARE
Earnings per share have been calculated using Financial Reporting Standard 14.
The calculation of earnings per share, for the half-year is based on profit
attributable to equity shareholders of #1,406,000 (2000: #1,040,000) and
25,569,417 (2000: 21,421,556) shares being the daily average of the number of
shares in issue during the period. The diluted earnings per share are based
on a weighted average of 26,015,790 (2000: 21,807,291) shares after allowing
for the exercise of options.
An adjusted earnings per share value is presented after adding back the
amortisation of goodwill.
4. NET CASH FROM OPERATIONS
Year ended
30 September
2001 2000 2000
#000 #000 #000
Operating profit 2,612 2,008 4,782
Release of government grant (17) - (89)
Amortisation of issue costs 6 - 10
Depreciation 445 377 851
Loss/(profit) on disposal of fixed 2 (8) 3
assets
Changes in:
Stocks (1027) 189 (1,634)
Debtors (2,083) (1,363) (3,518)
Creditors 496 1,081 3,895
434 2,284 4,300
5. ACQUISITIONS
The cash outflow shown of #4,057,000 represents three acquisitions together
with the payment of the deferred consideration of DKK 10 million to NK Nielsen
for Conelec A/S.
In December 2000, the Group acquired the business and certain assets of
Sensortech A/S in Denmark. The entire share capital of C & K Austria GmbH was
acquired in January 2001. In February 2001, the Group acquired the entire
share capital of the Discomp Group based in France.
6 COMPANY INFORMATION
Copies of this statement are being sent to all shareholders and are also
available from the Company Secretary, Deltron Electronics plc, Suffolk House,
Fordham Road, Newmarket, Suffolk, CB8 7AA.
Debts.Co.Uk (LSE:DET)
Historical Stock Chart
From May 2024 to Jun 2024
Debts.Co.Uk (LSE:DET)
Historical Stock Chart
From Jun 2023 to Jun 2024
