TIDMIDA
RNS Number : 4584T
IdaTech PLC
29 September 2010
+------------------------------+-------------------------------------+
| For immediate release | 29 September 2010 |
+------------------------------+-------------------------------------+
IdaTech plc
("IdaTech" or "the Company")
Interim Results for the six months ended 30 June 2010
IdaTech plc (AIM: IDA), a global leader in the development and manufacture of
clean and reliable extended run backup power fuel cell products, operationally
headquartered in Bend, Oregon, USA, today announces its Interim Results for the
six months ended 30 June 2010.
Key points:
· Revenue from product sales increased 89% to $1.7m (2009 $0.9m)
· Unit sales more than doubled to144 versus 64 in 2009
· Adoption rate accelerated in key geographies, with increased sales in
South East Asia, Central and Latin America and the Caribbean
· Operational cash consumption reduced by $2.7m (after allowing for $1.1m
tax credit refund received in 2009) to $9.1m
· Gross margin losses narrowed with new products being sold at positive
gross contribution margin
· New ElectraGen(TM)MEproduct on course for commercial launch late this
year
· Investec remains committed and key supporter
· Order for 154 ElectraGenTM H2 units for delivery in the second half of
2010 received after the end of the period under review
Commenting on the Interim Results, Hal Koyama, Chief Executive Officer of
IdaTech, said:
"We are very pleased that in first half of 2010 IdaTech has progressed along its
path to profitable growth. The new ElectraGen(TM)ME product promises to
fundamentally change the commercial dynamics for fuel cell products in the
telecommunications industry, delivering superior performance and customer value.
Meanwhile, the Company's sales pipeline has continued to grow and demonstrate
wider adoption of its products within key customer networks in multiple
regions."
For further information please contact:
+----------------------------------+---------------------------------+
| IdaTech plc | |
+----------------------------------+---------------------------------+
| Harol Koyama, Chief Executive | +1 541 322 1000 |
| Officer | |
+----------------------------------+---------------------------------+
| James Cooke, Chief Financial | |
| Officer | |
+----------------------------------+---------------------------------+
| | |
+----------------------------------+---------------------------------+
| Numis Securities Limited | +44 (0) 20 7260 1000 |
+----------------------------------+---------------------------------+
| Michael Meade / Hugh Jonathon | |
+----------------------------------+---------------------------------+
| | |
+----------------------------------+---------------------------------+
| Buchanan Communications | +44 (0) 20 7466 5000 |
+----------------------------------+---------------------------------+
| Charles Ryland / George Prassas | |
+----------------------------------+---------------------------------+
CHAIRMAN AND CHIEF EXECUTIVE OFFICER'S STATEMENT
The financial information included in this statement covers the six months ended
30 June 2010.
Business Update
During the six months to 30 June 2010, IdaTech remained focused on executing its
Path to Profitability Strategy as announced in the 2009 Annual Report. The
principal objective of this is to achieve cash breakeven and sustainable
profitable growth as soon as is feasible, initially through the introduction of
the Company's latest generation product, the ElectraGen(TM)ME, later this year.
This product incorporates substantial cost and performance improvements. These
improvements offer customers a compelling value proposition against diesel
generators and attractive margins for IdaTech.
In order to achieve sustainable profitability, IdaTech is concentrating on:-
- converting worldwide telecommunications network certifications into high
volume, repeat orders in selected geographies.
- developing and launching the next generation liquid fueled system, the
ElectraGenTMME; and
- expanding low cost production capability to meet the increased demand for
its products.
During the period under review, IdaTech made good progress on all of these
objectives whilst also reducing its cash consumption.
Adoption and sales pipeline
Over the past several years, IdaTech has leveraged its proprietary fuel cell and
liquid fuel reforming technology, deploying fuel cell products around the world.
IdaTech has achieved acceptance of its fuel cell products in 19
telecommunications networks and with 5 of the top 10 telecommunications
providers globally. As the Company has progressed toward launch of its first
high volume production product, the ElectraGen(TM)ME, it has begun converting
customer accounts into repeat, higher volume orders, expanding into customer
networks and facilitating accelerated adoption. The results of these efforts
continue to be strongly positive. Revenue from product sales increased by 89%
to $1.7m (2009 $0.9m) and unit system volume was up 125% to 144 (2009 64 units).
Sales into IdaTech's key geographies - South East Asia, Central and Latin
America and the Caribbean - showed the largest increases, demonstrating the
accelerating adoption rate of IdaTech's fuel cell systems. This was driven by a
switching from traditional diesel generators to IdaTech's fuel cells as
customers recognise the commercial value proposition associated with IdaTech's
systems and their ability to reliably and cost effectively support their
networks. Importantly, average unit order size continued to grow, increasing
more than tenfold to 24 compared to around 2 in the same period last year.
Profitable sales
The gross margin loss narrowed in the period by 13% or $0.3m to $2.1m (2009
$2.4m). This was despite the move away from non-core project business.
Allowing for the loss of this higher margin earning project revenue, the gross
margin loss attributable to product sales decreased by $0.6m or 25% compared
with 2009.
The product gross contribution margin, (margin associated with product sales,
excluding fixed costs), provides an indication of product profitability and is
an important measure for IdaTech's Path to Profitability. In the first half of
2010, IdaTech's average product contribution margin improved by 35% compared to
the same period in 2009. This positive shift in product profitability has been
driven by IdaTech's ElectraGen(TM)H2 product, launched at the end of 2009. This
new product reflects some of the design and cost savings features that the
ElectraGen(TM)ME will incorporate.
Development of the third generation liquid fueled system, the ElectraGenTM ME
During the six months to 30 June 2010, the development of the next generation
liquid fuelled system, the ElectraGenTMME, was the prime focus of the management
team. The approach follows that of the one established for the development of
the ElectraGenTM H2 and is directed at reducing cost, increasing reliability and
satisfying customers' needs, through the following:
- proprietary technological advances;
- product design simplification; and
- establishment of a global supply chain.
The outcome of the above approach has allowed the Company to significantly
reduce the cost of the system. The ElectraGen(TM)ME is currently in its final
design and testing stages and is scheduled for commercial launch in December
2010.
Building production capacity
In July 2010, in order to satisfy current and anticipated demand, IdaTech moved
its production facility in Tijuana into a larger building, retaining a flexible,
low cost volume manufacturing operation without the need for large capital
investment, but increasing production capacity to 5,000 units per annum. This
facility is ready for the transition of the ElectraGen(TM) ME to commercial
production later this year and was completed on time and under budget.
IdaTech's proven production system continues to demonstrate its flexibility,
quality and cost effectiveness. The facility was granted ISO 9001:2008
certification during the period.
Reduced operational cash consumption
During the six months to 30 June 2010, operational cash flow utilized was $1.6m
lower at $9.1m than the prior year of $10.7m. This was driven by lower
operational cash consumption of the business of $0.8m and tighter management of
working capital of $0.8m and is despite the previously announced unexpected loss
of the Business Energy Tax Credit ("BETC"). This contributed $1.1m to the cash
flow of the prior period in 2009. Excluding the impact of BETC, the cash
consumed by the business was $2.7m less than 2009.
The reduced operational cash consumption is a result of the positive gross
contribution margin from ElectraGenTM H2 sales, a reduced number of loss making
older generation product sales as well as a planned reduction in overheads.
Financial Results
The increase in product revenue of $0.8m was offset by a decrease in revenue
from projects of $0.5m. This decrease occurred as a result of IdaTech's
decision in 2009 to focus on commercial fuel cell product development rather
than non-core, government development related contracts and is a key element of
IdaTech's sustainable Path to Profitability Strategy
Research and development costs decreased by $0.6m to $4.4m (2009 $5.0m). The
decrease was primarily due to the completion of the development of the
ElectraGenTM H2 in late 2009 and the deferral in late 2009 of the natural gas
product development.
Sales, general and administrative expenses increased by $0.3m to $5.8m for the
period ended 30 June 2010 (2009 $5.5m). This was due to an anticipated increase
in direct selling costs offset by more focused spending on marketing. In
addition, administration costs fell.
Interest payable increased during the period to $1.5m (2009: $0.5m) due to the
increased credit line drawdown.
As a result of these factors the Group's loss before tax for the six months to
30 June 2010 increased by $0.3m to $13.8m compared with $13.5m for the six
months ended 30 June 2009.
Funding and going concern
The Investec Group, IdaTech's main shareholder, has indicated its willingness to
continue to fund the business. Current funding is via debt. The loan note
funding provided by Investec together with further funding required during the
current year, will be repayable on 31 March 2012. The Directors are actively
considering the options available to refinance these amounts ahead of the
repayment date.
After due consideration, the Directors have concluded it is appropriate to
continue to prepare the financial statements on a going concern basis.
Although the timing is yet to be finalised, the Board believes it would be
desirable to raise additional equity in 2011 and is continuing to explore such
opportunities.
Trading Outlook
IdaTech remains on course on its Path to Profitability. The appetite for its
products is growing in multiple regions around the world, as demonstrated by the
orders received so far in 2010 for over 250 ElectraGenTM H2 systems. The
commercial launch later this year of the liquid fuelled ElectraGenTM ME is on
track. IdaTech's customers have already expressed a high level of interest for
this product, particularly in North America, Central & Latin America, the
Caribbean and South East Asia.
The sale of these systems, at increasing volumes, together with the
discontinuation of the older, loss making products and continued management of
overheads and working capital will drive the business towards cash breakeven and
in due course sustainable growth.
Sir John Jennings
Hal Koyama
Chairman
Chief Executive Officer
Consolidated income statement for the period 1 January 2010 to 30 June 2010
+----------------------------------------+---+-----+------+------------+
| | | Unaudited |
+--------------------------------------------+-----+-------------------+
| | Six months ended 30 |
| | June |
+--------------------------------------------+-------------------------+
| | | 2010 | 2009 |
+----------------------------------------+---+------------+------------+
| | | US$'000 | US$'000 |
+----------------------------------------+---+------------+------------+
| | | | |
+----------------------------------------+---+------------+------------+
| Revenue | | 1,907.7 | 1,526.6 |
+----------------------------------------+---+------------+------------+
| Cost of sales | | (3,959.1) | (3,915.9) |
+----------------------------------------+---+------------+------------+
| | | | |
+----------------------------------------+---+------------+------------+
| Gross (loss) / profit | | (2,051.4) | (2,389.3) |
+----------------------------------------+---+------------+------------+
| | | | |
+----------------------------------------+---+------------+------------+
| | | | |
| Research and development costs | | (4,392.4) | (5,047.9) |
+----------------------------------------+---+------------+------------+
| | | | |
| Sales, general and administrative | | (5,775.1) | (5,529.1) |
| expenses | | | |
+----------------------------------------+---+------------+------------+
| | | | |
+----------------------------------------+---+------------+------------+
| Operating loss | | (12,218.9) | (12,966.3) |
+----------------------------------------+---+------------+------------+
| | | | |
+----------------------------------------+---+------------+------------+
| | | | |
| Finance income | | 0.7 | 2.3 |
+----------------------------------------+---+------------+------------+
| | | | |
| Finance costs | | (1,534.3) | (547.4) |
+----------------------------------------+---+------------+------------+
| | | | |
+----------------------------------------+---+------------+------------+
| Loss for the period before tax | | (13,752.4) | (13,511.4) |
+----------------------------------------+---+------------+------------+
| | | | |
+----------------------------------------+---+------------+------------+
| | | | |
| Taxation | | 246.8 | 384.4 |
+----------------------------------------+---+------------+------------+
| | | | |
+----------------------------------------+---+------------+------------+
| | | | |
+----------------------------------------+---+------------+------------+
| Loss for the period | | (13,505.6) | (13,127.0) |
+----------------------------------------+---+------------+------------+
| | | | |
+----------------------------------------+---+------------+------------+
| Other Comprehensive Income | | | |
+----------------------------------------+---+------------+------------+
| Gains / losses recognized directly in | | | |
| equity | | | |
+----------------------------------------+---+------------+------------+
| Other | | - | - |
+----------------------------------------+---+------------+------------+
| Currency translation differences | | | |
+----------------------------------------+---+------------+------------+
| Other comprehensive loss for the year | | - | - |
+----------------------------------------+---+------------+------------+
| Total comprehensive loss for the year | | (13,505.6) | (13,127.0) |
+----------------------------------------+---+------------+------------+
| | | | |
+----------------------------------------+---+------------+------------+
| | | | |
+----------------------------------------+---+------------+------------+
| | | | |
+----------------------------------------+---+------------+------------+
| Basic and diluted loss per share (US$) | 4 | (0.27) | (0.26) |
| | | | |
+----------------------------------------+---+------------+------------+
| | | | |
+----------------------------------------+---+------------+------------+
| | | | | |
+----------------------------------------+---+-----+------+------------+
All amounts relate to continuing activities.
Unaudited consolidated statement of changes in shareholders' equity for the
period 1 January to 30 June 2010
+--------------+---------+---------+----------+----------+-------------+----------+
| | Share | Share | Employee | Retained | Reverse | Total |
| | | | Benefit | | | Share- |
| | | | Trust | | | |
+--------------+---------+---------+----------+----------+-------------+----------+
| | Capital | Premium | Reserve | Earnings | Acquisition | holders' |
| | | | | | | |
+--------------+---------+---------+----------+----------+-------------+----------+
| | | | | | Reserve | Equity |
+--------------+---------+---------+----------+----------+-------------+----------+
| | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
+--------------+---------+---------+----------+----------+-------------+----------+
+---------------+---------+----------+-----------+------------+---------+------------+
| As of 1 | 991.2 | 57,754.8 | (2,371.8) | (34,071.0) | 9,477,7 | 31,780.9 |
| January 2009 | | | | | | |
+---------------+---------+----------+-----------+------------+---------+------------+
| | - | - | - | (32,513.9) | - | (32,513.9) |
| Loss for the | | | | | | |
| period | | | | | | |
+---------------+---------+----------+-----------+------------+---------+------------+
| Other | - | 346.7 | - | - | | 346.7 |
+---------------+---------+----------+-----------+------------+---------+------------+
| Currency | - | - | - | (3.4) | - | (3.4) |
| Translation | | | | | | |
| differences | | | | | | |
+---------------+---------+----------+-----------+------------+---------+------------+
| Share based | - | - | - | 2,906.6 | - | 2,906.6 |
| payments | | | | | | |
+---------------+---------+----------+-----------+------------+---------+------------+
| Treasury | - | - | (1,037.3) | - | - | (1,037.3) |
| shares | | | | | | |
+---------------+---------+----------+-----------+------------+---------+------------+
| Shares sold | - | - | 1,319.7 | - | - | 1,319.7 |
| by employee | | | | | | |
| benefit trust | | | | | | |
+---------------+---------+----------+-----------+------------+---------+------------+
| Share based | - | - | - | (1,729.5) | - | (1,729.5) |
| payments | | | | | | |
| utilized | | | | | | |
+---------------+---------+----------+-----------+------------+---------+------------+
| Shares issued | 28.4 | - | - | - | - | 28.4 |
| to employee | | | | | | |
| benefit trust | | | | | | |
+---------------+---------+----------+-----------+------------+---------+------------+
| As at 31 | 1,019.6 | 58,101.5 | (2.089.4) | (65,411.2) | 9,477.7 | 1,098.2 |
| December 2009 | | | | | | |
+---------------+---------+----------+-----------+------------+---------+------------+
| | | | | | | |
+---------------+---------+----------+-----------+------------+---------+------------+
| | - | - | - | (13,505.6) | - | (13,505.6) |
| Loss for the | | | | | | |
| period | | | | | | |
+---------------+---------+----------+-----------+------------+---------+------------+
| Other | - | - | - | - | | - |
+---------------+---------+----------+-----------+------------+---------+------------+
| Currency | - | - | - | 14.6 | - | 14.6 |
| Translation | | | | | | |
| differences | | | | | | |
+---------------+---------+----------+-----------+------------+---------+------------+
| Share based | - | - | - | 800.0 | - | 800.0 |
| payments | | | | | | |
+---------------+---------+----------+-----------+------------+---------+------------+
| Shares sold | - | - | 1,043.7 | - | - | 1,043.7 |
| by employee | | | | | | |
| benefit trust | | | | | | |
+---------------+---------+----------+-----------+------------+---------+------------+
| As at 30 June | 1,019.6 | 58,101.5 | (1,045.7) | (78,102.2) | 9,477.7 | (10,549.1) |
| 2010 | | | | | | |
+---------------+---------+----------+-----------+------------+---------+------------+
Reverse acquisition reserve: The reverse acquisition reserve arose as a result
of the share for share exchange undertaken when IdaTech plc acquired IdaTech UK
Limited. This reserve comprises the excess of the market value of the IdaTech
plc shares issued to the IdaTech UK Limited shareholders over and above the
nominal value of these shares.
Consolidated balance sheet as at 30 June 2010
+------------------------------+--------------------+------------+------------+------------+
| | | | | |
+------------------------------+--------------------+------------+------------+------------+
| | | | | |
+------------------------------+--------------------+------------+------------+------------+
| | | | | |
+------------------------------+--------------------+------------+------------+------------+
| | | Unaudited | | Unaudited |
| | | 30 June | 31 | 30 June |
| | | | December | |
+------------------------------+--------------------+------------+------------+------------+
| | | 2010 | 2009 | 2009 |
+------------------------------+--------------------+------------+------------+------------+
| | | US$'000 | US$'000 | US$'000 |
+------------------------------+--------------------+------------+------------+------------+
| ASSETS | | | | |
+------------------------------+--------------------+------------+------------+------------+
| Non-current assets | | | | |
+------------------------------+--------------------+------------+------------+------------+
| Property, plant and | | 1,263.2 | 1,102.5 | 1,165.3 |
| equipment | | | | |
+------------------------------+--------------------+------------+------------+------------+
| Goodwill | | 18,001.2 | 18,001.2 | 18,001.2 |
+------------------------------+--------------------+------------+------------+------------+
| Intangible assets | | 17,955.0 | 18,098.2 | 23,112.0 |
+------------------------------+--------------------+------------+------------+------------+
| Long term deposits | | 100.0 | 100.0 | 100.0 |
+------------------------------+--------------------+------------+------------+------------+
| | | | | |
+------------------------------+--------------------+------------+------------+------------+
| | | 37,319.4 | 37,301.9 | 42,378.5 |
+------------------------------+--------------------+------------+------------+------------+
| Current assets | | | | |
+------------------------------+--------------------+------------+------------+------------+
| Inventories | | 3,520.8 | 2,506.4 | 3,805.3 |
+------------------------------+--------------------+------------+------------+------------+
| Trade and other receivables | | 1,754.4 | 3,910.4 | 3,024.0 |
+------------------------------+--------------------+------------+------------+------------+
| Cash and cash equivalents | | 2,054.1 | 756.9 | 860.6 |
+------------------------------+--------------------+------------+------------+------------+
| | | 7.329.3 | 7,173.7 | 7,689.9 |
+------------------------------+--------------------+------------+------------+------------+
| | | | | |
| Total assets | | 44,648.7 | 44,475.6 | 50,068.4 |
+------------------------------+--------------------+------------+------------+------------+
| LIABILITIES | | | | |
+------------------------------+--------------------+------------+------------+------------+
| Current liabilities | | | | |
+------------------------------+--------------------+------------+------------+------------+
| Trade and other payables | | (4,739.4) | (5,972.1) | (2,114.9) |
+------------------------------+--------------------+------------+------------+------------+
| Provisions for other | | (35.3) | (35.3) | (1,271.4) |
| liabilities and charges | | | | |
+------------------------------+--------------------+------------+------------+------------+
| Deferred income tax | | (493.5) | (493.5) | (768.8) |
| liabilities | | | | |
+------------------------------+--------------------+------------+------------+------------+
| | | (5,268.2) | (6,500.9) | (4,155.1) |
+------------------------------+--------------------+------------+------------+------------+
| | | | | |
| Net current assets | | 2,061.1 | 672.8 | 3,534.8 |
+------------------------------+--------------------+------------+------------+------------+
| Non-current liabilities | | | | |
+------------------------------+--------------------+------------+------------+------------+
| Borrowings | | (45,000.0) | (32,000.0) | (19,677.5) |
+------------------------------+--------------------+------------+------------+------------+
| Provisions for other | | (988.8) | (688.9) | (1,271.4) |
| liabilities and charges | | | | |
+------------------------------+--------------------+------------+------------+------------+
| Deferred income tax | | (3,940.8) | (4,187.6) | (4,982.5) |
| liabilities | | | | |
+------------------------------+--------------------+------------+------------+------------+
| | | (49,929.6) | (36,876.5) | (25,931.4) |
+------------------------------+--------------------+------------+------------+------------+
| | | | | |
| Total liabilities | | (55,197.8) | (43,377.4) | (30,086.5) |
+------------------------------+--------------------+------------+------------+------------+
| | | | | |
| | | | | |
| Total net assets | | (10,549.1) | 1,098.2 | 19,981.9 |
+------------------------------+--------------------+------------+------------+------------+
| | | | | |
+------------------------------+--------------------+------------+------------+------------+
| EQUITY | | | | |
+------------------------------+--------------------+------------+------------+------------+
| Capital and reserves | | | | |
+------------------------------+--------------------+------------+------------+------------+
| Share capital | | 1,019.6 | 1,019.6 | 1,019.6 |
+------------------------------+--------------------+------------+------------+------------+
| Share premium | | 58,101.5 | 58,101.5 | 57,754.8 |
+------------------------------+--------------------+------------+------------+------------+
| Retained earnings - deficit | | (79,147.9) | (67,500.6) | (48,270.2) |
+------------------------------+--------------------+------------+------------+------------+
| Reverse Acquisition reserve | | 9,477.7 | 9,477.7 | 9,477.7 |
+------------------------------+--------------------+------------+------------+------------+
| | | | | |
| Total shareholders' equity | | (10,549.1) | 1,098.2 | 19,981.9 |
+------------------------------+--------------------+------------+------------+------------+
| | | | | |
+------------------------------+--------------------+------------+------------+------------+
Consolidated cash flow statement for the six months to 30 June 2010
+-----------------------------------+------+------------+------------+
| |Note | Unaudited |
| | | Six months |
| | | ended 30 |
| | | June |
+-----------------------------------+------+-------------------------+
| | | 2010 | 2009 |
+-----------------------------------+------+------------+------------+
| | | US$'000 | US$'000 |
+-----------------------------------+------+------------+------------+
| Cash flows from operating | | | |
| activities | | | |
+-----------------------------------+------+------------+------------+
| Cash outflows from operations | | (9,112.0) | (10,674.3) |
+-----------------------------------+------+------------+------------+
| Tax paid | | (243.2) | - |
+-----------------------------------+------+------------+------------+
| Interest paid | | (1,530.7) | (546.1) |
+-----------------------------------+------+------------+------------+
| | | | |
+-----------------------------------+------+------------+------------+
| Net cash outflow from operating | | (10,885.9) | (11,220.4) |
| activities | | | |
+-----------------------------------+------+------------+------------+
| | | | |
+-----------------------------------+------+------------+------------+
| Cash flows from investing | | | |
| activities | | | |
+-----------------------------------+------+------------+------------+
| Purchase of property, plant and | | (357.1) | (318.0) |
| equipment | | | |
+-----------------------------------+------+------------+------------+
| Purchase of intangible assets | | (703.7) | (168.0) |
+-----------------------------------+------+------------+------------+
| Interest received | | 0.7 | 2.3 |
+-----------------------------------+------+------------+------------+
| | | | |
+-----------------------------------+------+------------+------------+
| Net cash outflow from investing | | (1060.1) | (483.7) |
| activities | | | |
+-----------------------------------+------+------------+------------+
| | | | |
+-----------------------------------+------+------------+------------+
| Cash flows from financing | | | |
| activities | | | |
+-----------------------------------+------+------------+------------+
| Proceeds from borrowings | | 13,000.0 | 12,000.0 |
+-----------------------------------+------+------------+------------+
| Repayments of borrowings | | - | (55.3) |
+-----------------------------------+------+------------+------------+
| | | | |
+-----------------------------------+------+------------+------------+
| Net cash inflow from financing | | 13,000.0 | 11,944.7 |
| activities | | | |
+-----------------------------------+------+------------+------------+
| | | | |
+-----------------------------------+------+------------+------------+
| Net decrease in cash and cash | | 1054.0 | 240.8 |
| equivalents | | | |
+-----------------------------------+------+------------+------------+
| | | | |
+-----------------------------------+------+------------+------------+
| Cash and cash equivalents at | | 756.9 | 620.0 |
| beginning of the period | | | |
+-----------------------------------+------+------------+------------+
| | | | |
+-----------------------------------+------+------------+------------+
| | | | |
| Cash and cash equivalents at end | | 2,054.1 | 860.8 |
| of the period | | | |
+-----------------------------------+------+------------+------------+
| | | | |
| Cash flows from operating | | | |
| activities | | | |
+-----------------------------------+------+------------+------------+
| Loss before tax and interest | | (12,218.9) | (12,966.3) |
+-----------------------------------+------+------------+------------+
| Adjustments for | | | |
+-----------------------------------+------+------------+------------+
| Depreciation | | 170.6 | 137.9 |
+-----------------------------------+------+------------+------------+
| Amortisation | | 920.0 | 1,203.8 |
+-----------------------------------+------+------------+------------+
| Share based payments | | 800.0 | 1,500.0 |
+-----------------------------------+------+------------+------------+
| Inventories | | (1,112.9) | (579.6) |
+-----------------------------------+------+------------+------------+
| Trade and other receivables | | 1,045.9 | (673.5) |
+-----------------------------------+------+------------+------------+
| Trade and other payables | | 246.0 | (431.0) |
+-----------------------------------+------+------------+------------+
| Other payables | | 1,037.3 | 1,134.4 |
+-----------------------------------+------+------------+------------+
| | | | |
| Net cash generated utilised by | | (9,112.0) | (10,674.3) |
| operating activities | | | |
+-----------------------------------+------+------------+------------+
| | | | |
| | | | |
+-----------------------------------+------+------------+------------+
NOTES TO THE UNAUDITED FINANCIAL INFORMATION FOR THE SIX MONTHS ENDED 30 JUNE
2010
1. General information
The Company is a public limited company incorporated and domiciled in the UK.
The address of its registered office is 2 Gresham Street, London, EC2V 7QP. The
Company has a listing on the AIM Market of the London Stock Exchange. The
unaudited financial information for the six months ended 30 June 2010 was
approved for issue on 29 September 2010.
These interims financial results do not comprise statutory accounts within the
meaning of section 240 of the Companies Act 2006. Statutory accounts for the
year ended 31 December 2009 were approved by the Board of Directors on 16 March
2010 and delivered to the Registrar of Companies. The report of the auditors on
those accounts was unqualified and did not contain any statement under Section
237 of the Companies Act 2006 but it did contained an emphasis of matter
regarding the future funding requirement of the business.
2. Basis of preparation
These financial statements for the six months to 30 June 2010 have been prepared
in accordance with the Disclosure and Transparency Rules of the Financial
Services Authority and with International Accounting Standard ("IAS") 34,"
Interim financial reporting" as adopted by the European Union. The six-monthly
financial information should be read in conjunction with the annual financial
statements for the year ended 31 December 2009, which have been prepared in
accordance with International Financial Reporting Standards ("IFRS") as adopted
by the European Union.
These financial statements have been prepared on a going concern basis.
IdaTech's main shareholder, the Investec Group has indicated its current
intention to ensure the business is managed and/or appropriately funded so that
it is in a position to meet its debts as and when they fall due. This has been
provided as a current intention only and does not represent a legally binding
obligation by the Investec Group. Whilst the Directors have a reasonable
expectation that the shareholder will continue to support the Group, in view of
the nature of the support, there can be no certainty in this matter.
Additionally the loan notes amounting to $45m, are repayable on 31 March 2012.
The Directors will be working with the Investec Group to refinance the existing
loan notes and additional funding drawn down in the current financial year.
In view of the above, the Directors have concluded that a material uncertainty
exists that may cast significant doubt upon the Group's ability to continue as a
going concern. Nevertheless after making enquiries, and considering the
uncertainties described above, the Directors have concluded that it is
appropriate to continue to adopt the going concern basis in preparing the
financial statements.
The income statement and balance sheet show no intention or necessity to
liquidate or curtail significantly the operations of the Group. Specifically,
the assets of the Group have been valued and reported on the basis that they
will be used for the purpose for which they were purchased in the ongoing
operation of the business and no liabilities have been included that may arise
on a significant curtailment of the Group's activities.
3. Accounting policies
The accounting policies adopted by the Group are consistent with those of the
annual financial statements for the year ended 31 December 2009, as described in
those financial statements.
NOTES TO THE UNAUDITED FINANCIAL INFORMATION FOR THE SIX MONTHS ENDED 30 JUNE
2010
4. Loss per share
(a) Basic
Basic earnings per share is calculated by dividing the profit attributable to
equity holders of the company by the weighted average number of ordinary shares
in issue during the period.
+----------+-----------+---------------------+-----------------------+
| | Unaudited | Unaudited |
| | Six months | Six months |
| | ended 30 June | ended 30 June |
| | 2010 | 2009 |
+----------------------+---------------------+-----------------------+
| | | |
+----------------------+---------------------+-----------------------+
| Loss attributable to | | |
| the equity holders | US$(13,505.6) | US$(13,127.0) |
| of the company | | |
+----------------------+---------------------+-----------------------+
| Weighted average | | |
| number of ordinary | 50.5m | 50.5m |
| shares in issue | | |
+----------------------+---------------------+-----------------------+
| | | |
+----------------------+---------------------+-----------------------+
| Basic loss per share | | |
| (US$ per share) | (0.27) | (0.26) |
+----------------------+---------------------+-----------------------+
| | |
+----------+---------------------------------------------------------+
| | | | |
+----------+-----------+---------------------+-----------------------+
(b) Diluted
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares outstanding to assume conversion of all dilutive
potential ordinary shares. For the share options, a calculation is done to
determine the number of shares that could have been acquired at fair value
(determined as the average annual market share price of the company's shares)
based on the monetary value of the subscription rights attached to outstanding
share options. The number of shares calculated as above is compared with the
number of shares that would have been issued assuming the exercise of the share
options.
The impact of the share options is anti-dilutive. Therefore the diluted loss per
share is the same as the basic loss per share.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BUGDCUDDBGGI
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