Interim Results
August 14 2003 - 3:00AM
UK Regulatory
RNS Number:6569O
Delcam PLC
14 August 2003
DELCAM PLC
Interim Results for the six months to 30 June 2003
* Record half-year sales of #9.8 million against #9.5 million in H1 2002
* Pre-tax interim profit of #0.5 million, similar to H1 2002
* Interim dividend of 0.95p maintained
* Growth in software and maintenance revenues in first half
* Continued high level of investment in product development
* Winner of Queen's Award for Enterprise in the Innovation category
* Positioned by CIMdata as world's leading international supplier of
specialist NC software and associated services
Chairman's Statement
Financial Highlights
I am very pleased to report that, during the first half of 2003, Delcam has
continued the growth in sales that was seen last year. Sales for the half year
to 30 June 2003 were at the record level of #9.8 million compared with #9.5
million during the first half of 2002, an increase of 3%, despite difficult
general trading conditions and a number of external factors that disrupted our
business.
Profit before tax of #0.5 million was similar to the first half of last year as
the company continued to increase investment in product development and in sales
and marketing. Basic earnings per share were 6.4p compared with 6.1p in the
equivalent period last year.
Dividend
With similar profitability to that in the first half of 2002, the Board proposes
to maintain an interim dividend of 0.95p per ordinary share. It will be paid on
16 September 2003 to shareholders on the Register as at 29 August 2003. The
shares are expected to be quoted ex dividend on 27 August 2003.
Review
The first half of this year has seen poor economic conditions for manufacturing
industry in a number of the territories in which we operate. In addition, a
number of external factors, in particular, the conflict in Iraq and the SARS
epidemic, have delayed orders with an impact on our sales performance. The
increase in sales, achieved in the face of these difficulties, should be
considered as a very good result.
We continue to believe that it is essential to enhance our development activity
as we seek to further increase sales by having the best products in all of the
sectors in which we operate. During this period R & D costs increased by over
#250,000 over the same period last year and now represents 25 per cent. of
turnover. This increased investment continues to limit our profitability in the
short term but we remain confident it will lead to increased long-term
profitability.
We have outlined a strategy to increase sales further with three main strands:
firstly to develop our reputation as a supplier of product development
solutions, rather than just as a CADCAM developer; secondly to grow our business
outside the mould and die area, both in other areas of toolmaking and in other
industries; and thirdly to increase our sales to larger organisations as well as
to smaller and medium-sized companies.
In 2002, we announced the establishment of a consultancy group to tailor our
software for specific applications of our customers operating in a broad range
of industries, including the medical, footwear and aerospace markets. This group
has already won a number of contracts and we expect this to be a growth area for
the business in the future.
We were honoured to win a Queen's Award for Enterprise in the Innovation
category. While this was awarded specifically in recognition of the continuing
innovation in our ArtCAM software, our leading product for the engraving,
jewellery and signmaking industries, it recognises the high level of innovation
of all our development staff.
Outlook
The general outlook for the second half of the year is in line with the Board's
expectations, although the events of the last six months have shown how external
factors can quickly impact our forecasted performance. Historically, our results
have been biased towards the second half of our financial year. Although this
was not the case during 2001 or 2002, we believe that we will return to this
trading pattern in the future.
T R M KINSEY
Chairman
14 August 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT
6 MONTHS TO 30 JUNE 2003
Audited
Unaudited Unaudited Year to
30 June 2003 30 June 2002 31 Dec 2002
#'000's #'000's #'000's
TURNOVER 9,816 9,518 18,913
Cost of sales (3,193) (3,134) (5,863)
----------- ----------- -----------
GROSS PROFIT 6,623 6,384 13,050
Distribution costs (2,449) (2,424) (4,279)
Administration expenses (3,720) (3,589) (7,899)
Other operating income 27 155 244
----------- ----------- -----------
OPERATING PROFIT 481 526 1,116
Income from interest in associates 83 42 63
Interest receivable 7 3 11
Interest payable (67) (52) (119)
----------- ----------- -----------
PROFIT ON ORDINARY
ACTIVITIES BEFORE TAXATION 504 519 1,071
Tax on profit on ordinary activities (125) (152) (231)
----------- ----------- -----------
PROFIT ON ORDINARY
ACTIVITIES AFTER TAXATION 379 367 840
Equity minority interests 9 0 5
----------- ----------- -----------
PROFIT FOR THE PERIOD 388 367 845
Dividends proposed (57) (57) (212)
----------- ----------- -----------
RETAINED PROFIT FOR THE
PERIOD 331 310 633
----------- ----------- -----------
EARNINGS PER SHARE 6.4p 6.1p 14.0p
----------- ----------- -----------
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2003
Unaudited Unaudited Audited
30 June 2003 30 June 2002 31 Dec 2002
#'000's #'000's #'000's
FIXED ASSETS
Intangible assets 56 73 68
Tangible assets 6,281 6,483 6,371
Investments 782 787 745
----------- ----------- -----------
7,119 7,343 7,184
----------- ----------- -----------
CURRENT ASSETS
Stocks 228 233 113
Debtors 5,537 5,495 5,383
Cash at bank and in hand 534 414 593
----------- ----------- -----------
6,299 6,142 6,089
CREDITORS: amounts falling due
within one year (3,605) (4,318) (3,901)
----------- ----------- -----------
NET CURRENT ASSETS 2,694 1,824 2,188
----------- ----------- -----------
TOTAL ASSETS LESS CURRENT
LIABILITIES 9,813 9,167 9,372
CREDITORS: amounts falling due
after more than one year (353) (618) (474)
DEFERRED INCOME (1,442) (1,173) (1,197)
EQUITY MINORITY
INTERESTS 20 (42) 12
----------- ----------- -----------
8,038 7,334 7,713
----------- ----------- -----------
CAPITAL AND RESERVES
Called up share capital 612 612 612
Share premium account 1,920 1,920 1,920
Revaluation reserve 2,278 2,328 2,303
Other reserves 2 1 1
Profit and loss account 3,226 2,473 2,877
----------- ----------- -----------
EQUITY SHAREHOLDERS' FUNDS 8,038 7,334 7,713
----------- ----------- -----------
CONSOLIDATED CASH FLOW STATEMENT
6 MONTHS TO 30 JUNE 2003
Unaudited Unaudited
30 June 2003 30 June 2002
#'000's #'000's
OPERATING PROFIT 481 526
Adjustments for
Depreciation 311 299
Release of Government grants (32) (32)
Profit on disposal of tangible assets (10) 0
Increase in stocks (115) (47)
Increase in debtors (154) (513)
Increase in creditors 185 672
----------- -----------
NET CASHFLOW FROM
OPERATING ACTIVITIES 666 905
RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE (60) (7)
TAXATION PAID (73) (79)
EQUITY DIVIDENDS PAID (154) (145)
CAPTIAL EXPENDITURE AND
FINANCIAL INVESTMENT (131) (411)
----------- -----------
CASH INFLOW BEFORE USE OF
LIQUID RESOURCES AND
FINANCING 248 263
LOAN AND LEASE REPAYMENTS (158) (232)
----------- -----------
INCREASE IN CASH IN THE
PERIOD 90 31
----------- -----------
ANALYSIS OF CASH MOVEMENT
Cash in hand and at bank (59) (113)
Bank overdraft 149 144
----------- -----------
90 31
----------- -----------
Notes
1. Basic earnings per share have been calculated on the issued share capital of
6,044,478 (2002 - 6,044,478) Ordinary Shares of 10p each and on the profit
after tax and minority interests.
2. Copies of this interim statement are being sent to all shareholders and will
be available from the Registered Office of the Company, Small Heath Business
Park, Birmingham, B10 0HJ, for a period of 14 days from the date of this
statement.
3. The taxation charge is based on the estimated effective rate of tax for the
full year.
4. The financial information set out above does not comprise full accounts
within the meaning of Section 240 of the Companies Act 1985.
5. The interim figures set out in this statement are unaudited but have been
prepared on a basis consistent with the statutory financial statements for
the year to 31 December 2002. The figures for the year to 31 December 2002
have been extracted from the statutory financial statements for that year
which have been filed with the Registrar of Companies and carry an
unqualified audit report.
This information is provided by RNS
The company news service from the London Stock Exchange
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