TIDMMTT
RNS Number : 2657R
Metal-Tech Ltd
28 April 2009
28 April 2009
Metal-Tech Ltd.
("Metal-Tech" or "the Company")
Results for the year ended 31 December 2008
Metal-Tech, the producer and recycler of specialty metals such as Tungsten and
Molybdenum, announces results for the year ended 31 December 2008.
Financial Summary:
* Revenues increased 1.2% to $138.3m (2007: $136.7m)
* Net loss of $9.1m (2007: US$0.7m loss) due to the significant drop in Molybdenum
prices, the prudent write-down of Molybdenum inventory, increased Business
Development, marketing and selling expenses, a weak US Dollar and management
changes
* Gross profit margins were 2.4%(2007: 14.4%) impacted by significantly reduced
sales prices against high-cost inventories, energy costs, and production
difficulties in Mongolia
* Cash and cash deposits balance at 31 December 2008 were $12.0m (31 December
2007:$5.9m) excluding $3.2m encumbered cash deposit (31 December 2007: $6.5m)
* Cash and cash deposits are sufficient to meet the Company's current financing
costs and expected operating expenses
* Net equity as a percentage of total assets at 31 December 2008 was 39% (31
December 2007: 39%)
Operational Summary:
* Demand for Tungsten remained favourable during 2008
* Molybdenum demand temporarily reduced to almost zero due to the worldwide
economic crisis and the industrial slowdown in Q4 2008
* Relationships with customers remain resilient despite the market difficulties
* Significant progress in development of a proprietary leaching process
* Sale of equity investment in BIT Metals BV at a $0.6m profit
* New management and business development team and organisational restructure
Current Year and Outlook
* Focus on maximizing existing manufacturing and marketing potential for Tungsten
* Increasing Tungsten and Molybdenum recycling capacity of low grade raw materials
* Streamlining activities not in core business while making best use of resources
in metal recycling initiatives and lucrative production opportunities
* Further advancement in new hydrometallurgy technologies
* Continuation of inventory level reduction
Commenting on the results, Aik Rosenberg, Executive Chairman and acting CEO of
the Company, said that: "Metal-Tech continues to be impacted by the global
downturn affecting its end-markets. We are taking action to resolve those issues
under the Company's direct control and are seeking to mitigate, where possible,
external challenges such as changes in currencies and general cost-inflation in
the industry. During 2009 the Company expects to implement some of its new
technologies in the expansion of its recycling and efficient production at its
Israeli plant which will enable it to increase its competitive edge and
financial strength.
With focused management and tight financial control we intend to ride the
current economic tidal wave and emerge stronger and prepared for future
expansion and success."
Enquiries:
Metal-Tech Ltd.
Ariel (Aik) Rosenberg, Chairman & Acting CEO+972 544 215454
Panmure Gordon
Edward Farmer, Stuart Gledhill +44 20 7459 3600
Corfin Communications
Harry Chathli, Victoria Ward +44 20 7977 0020
Operational Review
Metal-Tech experienced strong demand for Molybdenum and Tungsten in the first
half of the year, however, there was a sharp decline in the second half of the
year resulting in full year 2008 revenues to be roughly flat at $138.3m (2007:
$136.7m). The net loss of the year was $9.1m (2007: US$ 0.7m) due to cost
escalation of labour and consumables and challenges with the Company's Mongolian
plant. Additionally, investment in Business Development, marketing and selling
expenses, a weak US Dollar and management changes all contributed to the
significant full year loss.
The issues at the Mongolian plant deteriorated throughout the year. The plant
experienced significant cost inflation driven by labour, raw materials and
energy cost. Additionally, the operational challenges impacted on the quantity
and quality of Molybdenum Oxide produced. The Company took steps to rectify the
situation but this proved insufficient and as announced on 31 March 2009, the
Company took the step to temporarily suspend production in the Mongolian plant
and rearrange credit lines with the local supplier.
With markets and customers broadly spread geographically, the current crisis in
the metals, construction and manufacturing sectors worldwide has impacted the
Company negatively. Molybdenum Oxide, one of Metal-Tech's principal products, is
used extensively in the production of steel, and this global industry has seen a
major downturn in activity with its market price reaching an all time low since
2004.
The Company's Tungsten operations, which are located in Israel, are continuing
as before, with Tungsten prices reduced slightly but remaining relatively
stable. The Company is actively engaged in cost reduction and measures to
improve efficiency at the plant in Israel, while seeking to capture new business
opportunities that arise as a result of the continued turmoil in the sector.
Good progress is being maintained in R&D on a unique and strategically
significant technology development, aimed at increasing recovery rates in the
production of certain key metals, whilst reducing waste and environmental impact
of large-scale operations. An industrial pilot plant has been commissioned and
is testing various raw materials from different interested companies.
Relationships with customers remained resilient despite market difficulties and
the Company saw significant progress in development of a proprietary leaching
process.
Also in the year the Company sold its equity investment in BIT Metals BV at a
$0.6m profit and the Company appointed the highly experienced and operationally
focused Executive Chairman Aik Rosenberg as Acting CEO of the Company.
Financial Review
Revenues for the year ended 31 December 2008 were $138.3m, up 1.2% from $136.7m
at the same time in 2007. The Company made a net loss of $9.1m, down from a loss
of $735,000 in 200 and gross profit margins were 2.4% down from 14.4% in 2007,
and were impacted by plummeting sales prices against high-cost inventories,
energy costs, and production difficulties in Mongolia.
The cash and cash deposits balance at 31 December 2008 were $12.0m up from $5.9m
in 2007 and $3.2m excluding encumbered cash deposits, down from $6.5m in 2007.
Net equity as a percentage of total assets at 31 December 2008 was 39%,
equivalent to the same time in 2007.
Outlook
The Company has taken immediate actions to mitigate the impact of the current
market situation on its results. It has ceased all operations not directly
related to its core business, whilst maintaining its investment in important
market-focussed research activities. It has reduced overheads, frozen
non-critical capital expenditure, ceased staff recruitment and introduced
voluntary salary cuts for all senior management. Additionally, there is an
increased focus on maximising existing manufacturing and marketing potential for
Tungsten, whilst continuing with an active programme of reducing inventory
level. The Company is also restructuring bank debt with shift from short term to
long-term credit.
Overall, the Board is confident that by responding appropriately to the
challenges it is facing and the steps taken by management to improve production
efficiency, capacity and quality, the Company is well positioned to deliver
increased revenues when market conditions allow.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
+------------------------------------------------+-+--+------------+--+------------+
| | | | December 31, |
+------------------------------------------------+-+--+----------------------------+
| | | | 2008 | | 2007 |
+------------------------------------------------+-+--+------------+--+------------+
| ASSETS | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| CURRENT ASSETS: | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| Cash and cash equivalents | | | 12,012 | | 5,939 |
+------------------------------------------------+-+--+------------+--+------------+
| Restricted cash | | | 3,150 | | 6,561 |
+------------------------------------------------+-+--+------------+--+------------+
| Available for sale investments | | | 28 | | 95 |
+------------------------------------------------+-+--+------------+--+------------+
| Trade receivables | | | 11,153 | | 10,543 |
+------------------------------------------------+-+--+------------+--+------------+
| Other accounts receivable | | | 5,343 | | 9,973 |
+------------------------------------------------+-+--+------------+--+------------+
| Inventories | | | 47,902 | | 69,527 |
+------------------------------------------------+-+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| | | | 79,588 | | 102,638 |
+------------------------------------------------+-+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| NON-CURRENT ASSETS: | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| Investment in joint | | | - | | 4,183 |
| ventures | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| Deferred finance costs | | | 377 | | 528 |
+------------------------------------------------+-+--+------------+--+------------+
| Property, plant and equipment | | | 29,616 | | 26,022 |
+------------------------------------------------+-+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| | | | 29,993 | | 30,733 |
+------------------------------------------------+-+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| Total assets | | | 109,581 | | 133,371 |
+------------------------------------------------+-+--+------------+--+------------+
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
+------------------------------------------------+-+--+------------+--+------------+
| | | | December 31, |
+------------------------------------------------+-+--+----------------------------+
| | | | 2008 | | 2007 |
+------------------------------------------------+-+--+------------+--+------------+
| LIABILITIES AND EQUITY | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| CURRENT LIABILITIES: | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| Short-term bank credit | | | 10,562 | | 11,381 |
+------------------------------------------------+-+--+------------+--+------------+
| Short-term loans and | | | 16,923 | | 17,130 |
| current maturities | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| Trade payables | | | 17,435 | | 26,044 |
+------------------------------------------------+-+--+------------+--+------------+
| Income taxes payable | | | 6,317 | | 8,823 |
+------------------------------------------------+-+--+------------+--+------------+
| Other accounts payable | | | 5,834 | | 8,123 |
+------------------------------------------------+-+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| | | | 57,071 | | 71,501 |
+------------------------------------------------+-+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| NON-CURRENT LIABILITIES: | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| Long-term loans | | | 6,220 | | 6,436 |
+------------------------------------------------+-+--+------------+--+------------+
| Employee benefit | | | 241 | | 477 |
| obligations | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| Deferred tax liabilities | | | 79 | | 38 |
+------------------------------------------------+-+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| | | | 6,540 | | 6,951 |
+------------------------------------------------+-+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| Total liabilities | | | 63,611 | | 78,452 |
+------------------------------------------------+-+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| EQUITY: | | | | | |
| Equity attributable to the | | | | | |
| equity holders of the Company- | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| Issued capital | | | 2,399 | | 2,399 |
+------------------------------------------------+-+--+------------+--+------------+
| Share premium | | | 23,892 | | 23,892 |
+------------------------------------------------+-+--+------------+--+------------+
| Other reserves | | | 624 | | 425 |
+------------------------------------------------+-+--+------------+--+------------+
| Retained earnings | | | 16,051 | | 25,176 |
+------------------------------------------------+-+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| | | | 42,966 | | 51,892 |
+------------------------------------------------+-+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| Minority interests | | | 3,004 | | 3,027 |
+------------------------------------------------+-+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| Total equity | | | 45,970 | | 54,919 |
+------------------------------------------------+-+--+------------+--+------------+
| | | | | | |
+------------------------------------------------+-+--+------------+--+------------+
| Total liabilities and equity | | | 109,581 | | 133,371 |
+------------------------------------------------+-+--+------------+--+------------+
+--------------------------+--+-----------------------------+--+------------------------+
| April 27, 2009 | | | | |
+--------------------------+--+-----------------------------+--+------------------------+
| Date of approval of the | | | | Ariel Rosenberg |
+--------------------------+--+-----------------------------+--+------------------------+
| financial statements | | | | Acting CEO and |
| | | | | Chairman of the Board |
| | | | | Of Directors |
+--------------------------+--+-----------------------------+--+------------------------+
CONSOLIDATED INCOME STATEMENTS
U.S. dollars in thousands (except share and per share data)
+------------------------------------------------+-+--+---------------+--+---------------+
| | | | Year ended |
| | | | December 31, |
+------------------------------------------------+-+--+----------------------------------+
| | | | 2008 | | 2007 |
+------------------------------------------------+-+--+---------------+--+---------------+
| | | | | | |
+------------------------------------------------+-+--+---------------+--+---------------+
| Revenues | | | 138,333 | | 136,713 |
+------------------------------------------------+-+--+---------------+--+---------------+
| Cost of sales before write-down of | | | 127,518 | | 114,471 |
| inventories | | | | | |
+------------------------------------------------+-+--+---------------+--+---------------+
| | | | | | |
+------------------------------------------------+-+--+---------------+--+---------------+
| Gross profit before write-down of | | | 10,815 | | 22,242 |
| inventories | | | | | |
+------------------------------------------------+-+--+---------------+--+---------------+
| Write-down of inventories | | | 7,501 | | 2,500 |
+------------------------------------------------+-+--+---------------+--+---------------+
| | | | | | |
+------------------------------------------------+-+--+---------------+--+---------------+
| Gross profit | | | 3,314 | | 19,742 |
+------------------------------------------------+-+--+---------------+--+---------------+
| | | | | | |
+------------------------------------------------+-+--+---------------+--+---------------+
| Research and development expenses ,net | | | 1,497 | | 1,991 |
+------------------------------------------------+-+--+---------------+--+---------------+
| Selling and marketing expenses | | | 1,454 | | 775 |
+------------------------------------------------+-+--+---------------+--+---------------+
| General and administrative expenses | | | 7,914 | | 4,661 |
+------------------------------------------------+-+--+---------------+--+---------------+
| | | | | | |
+------------------------------------------------+-+--+---------------+--+---------------+
| Total operating expenses | | | 10,865 | | 7,427 |
+------------------------------------------------+-+--+---------------+--+---------------+
| | | | | | |
+------------------------------------------------+-+--+---------------+--+---------------+
| Operating profit (loss) | | | (7,551) | | 12,315 |
+------------------------------------------------+-+--+---------------+--+---------------+
| | | | | | |
+------------------------------------------------+-+--+---------------+--+---------------+
| Finance costs | | | (3,559) | | (3,651) |
+------------------------------------------------+-+--+---------------+--+---------------+
| Finance income | | | 449 | | 1,357 |
+------------------------------------------------+-+--+---------------+--+---------------+
| Other income | | | 545 | | 219 |
+------------------------------------------------+-+--+---------------+--+---------------+
| Share of profit (loss) of joint ventures | | | 1,593 | | (6,891) |
| including impairment loss | | | | | |
+------------------------------------------------+-+--+---------------+--+---------------+
| | | | | | |
+------------------------------------------------+-+--+---------------+--+---------------+
| Profit (loss) before tax | | | (8,523) | | 3,349 |
+------------------------------------------------+-+--+---------------+--+---------------+
| Income tax expense | | | 41 | | 4,084 |
+------------------------------------------------+-+--+---------------+--+---------------+
| | | | | | |
+------------------------------------------------+-+--+---------------+--+---------------+
| Loss for the year | | | (8,564) | | (735) |
+------------------------------------------------+-+--+---------------+--+---------------+
| | | | | | |
+------------------------------------------------+-+--+---------------+--+---------------+
| Attributable to: | | | | | |
+------------------------------------------------+-+--+---------------+--+---------------+
| Equity holders of the Company | | | (9,125) | | (2,008) |
+------------------------------------------------+-+--+---------------+--+---------------+
| Minority interests | | | 561 | | 1,273 |
+------------------------------------------------+-+--+---------------+--+---------------+
| | | | | | |
+------------------------------------------------+-+--+---------------+--+---------------+
| | | | (8,564) | | (735) |
+------------------------------------------------+-+--+---------------+--+---------------+
| | | | | | |
+------------------------------------------------+-+--+---------------+--+---------------+
| Basic and diluted loss per share | | | (0.24) | | (0.05) |
| attributable to Ordinary equity | | | | | |
| holders of the Company | | | | | |
+------------------------------------------------+-+--+---------------+--+---------------+
| | | | | | |
+------------------------------------------------+-+--+---------------+--+---------------+
| Weighted average number of shares | | | 38,376,923 | | 38,376,923 |
| used in computing basic and | | | | | |
| diluted net loss per share | | | | | |
| attributable to Ordinary equity | | | | | |
| holders of the Company | | | | | |
+------------------------------------------------+-+--+---------------+--+---------------+
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
U.S. dollars in thousands
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| | | Attributable to equity holders of the Company | | | | |
+-----------------------------------------------------+-+-------------------------------------------------------------------+-+-----------+-+------------+
| | | Share | | Share | | Other | | Retained | | | | Minority | | Total |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| | | capital | | premium | | reserves | | earnings | | Total | | interests | | equity |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| | | | | | | | | | | | | | | |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| Balance as of January 1, 2007 | | 2,399 | | 23,892 | | (136) | | 28,373 | | 54,528 | | 1,754 | | 56,282 |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| | | | | | | | | | | | | | | |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| Net loss on cash flow hedges | | - | | - | | (85) | | - | | (85) | | - | | (85) |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| Foreign currency translation | | - | | - | | 140 | | - | | 140 | | - | | 140 |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| | | | | | | | | | | | | | | |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| Net income for the year | | - | | - | | 55 | | - | | 55 | | - | | 55 |
| recognized directly in equity | | | | | | | | | | | | | | |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| Profit (loss) for the year | | - | | - | | - | | (2,008) | | (2,008) | | 1,273 | | (735) |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| | | | | | | | | | | | | | | |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| Total recognized income (expense) for the year | | - | | - | | 55 | | (2,008) | | (1,953) | | 1,273 | | (680) |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| | | | | | | | | | | | | | | |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| Cost of share based payment | | - | | - | | 506 | | - | | 506 | | - | | 506 |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| Dividend paid | | - | | - | | - | | (1,189) | | (1,189) | | - | | (1,189) |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| | | | | | | | | | | | | | | |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| Balance as of December 31, 2007 | | 2,399 | | 23,892 | | 425 | | 25,176 | | 51,892 | | 3,027 | | 54,919 |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| | | | | | | | | | | | | | | |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| Net gain on cash flow hedges | | - | | - | | 85 | | - | | 85 | | - | | 85 |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| | | | | | | | | | | | | | | |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| Net income for the year | | - | | - | | 85 | | - | | 85 | | - | | 85 |
| recognized directly in equity | | | | | | | | | | | | | | |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| Profit (loss) for the year | | - | | - | | - | | (9,125) | | (9,125) | | 561 | | (8,564) |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| | | | | | | | | | | | | | | |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| Total recognized income (expense) for the year | | - | | - | | 85 | | (9,125) | | (9,040) | | 561 | | (8,479) |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| | | | | | | | | | | | | | | |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| Cost of share based payment | | - | | - | | 114 | | - | | 114 | | - | | 114 |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| Dividend paid to minority interest | | - | | - | | - | | - | | - | | (584) | | (584) |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| | | | | | | | | | | | | | | |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
| Balance as of December 31, 2008 | | 2,399 | | 23,892 | | 624 | | 16,051 | | 42,966 | | 3,004 | | 45,970 |
+-----------------------------------------------------+-+----------+-+-----------+-+----------+-+------------+-+------------+-+-----------+-+------------+
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
+----------------------------------------------------------+-+-------------+--+------------+
| | | Year ended |
| | | December 31, |
+----------------------------------------------------------+-+-----------------------------+
| | | 2008 | | 2007 |
+----------------------------------------------------------+-+-------------+--+------------+
| Cash flows from operating activities: | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| Loss for the year | | (8,564) | | (735) |
+----------------------------------------------------------+-+-------------+--+------------+
| Adjustments required to reconcile | | 14,176 | | (9,211) |
| net loss to net cash provided by | | | | |
| (used in) operating activities (a) | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| Net cash provided by (used in) operating | | 5,612 | | (9,946) |
| activities | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| Cash flows from investing activities: | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| Purchase of property, plant and | | (6,116) | | (7,193) |
| equipment | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| Proceeds from sale of | | 411 | | 54 |
| property, plant and | | | | |
| equipment | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| Proceeds from disposal of | | 5,737 | | - |
| investment in joint venture | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| Investment in joint ventures | | - | | (1,420) |
+----------------------------------------------------------+-+-------------+--+------------+
| Decrease (increase) in restricted | | 3,411 | | (4,663) |
| cash | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| Investment in available for sale | | - | | (9,996) |
| securities | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| Proceeds from sales of available for sale | | - | | 10,743 |
| securities | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| Net cash provided by (used in) investing | | 3,443 | | (12,475) |
| activities | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| Cash flows from financing activities: | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| Dividend paid | | (731) | | (249) |
+----------------------------------------------------------+-+-------------+--+------------+
| Dividend paid to minority interest | | (584) | | - |
+----------------------------------------------------------+-+-------------+--+------------+
| Proceeds from short and long-term | | 10,267 | | 19,457 |
| loans | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| Repayment of short and | | (11,116) | | (7,662) |
| long-term loans | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| Increase (decrease) in short-term | | (818) | | 1,059 |
| bank credit, net | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| Net cash provided by (used in) financing | | (2,982) | | 12,605 |
| activities | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| Increase (decrease) in cash and cash | | 6,073 | | (9,816) |
| equivalents | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| Cash and cash equivalents at the beginning of | | 5,939 | | 15,755 |
| the year | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
| Cash and cash equivalents at the end of the | | 12,012 | | 5,939 |
| year | | | | |
+----------------------------------------------------------+-+-------------+--+------------+
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
+--------+----------------------------------------------------+-+------------+--+-------------+
| | | | Year ended |
| | | | December 31, |
+--------+----------------------------------------------------+-+-----------------------------+
| | | | 2008 | | 2007 |
+--------+----------------------------------------------------+-+------------+--+-------------+
| (a) | Adjustments required to reconcile net | | | | |
| | loss to net cash provided by (used in) | | | | |
| | operating activities: | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | Income and expenses not involving cash | | | | |
| | flows: | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | Depreciation | | 2,306 | | 1,756 |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | Amortization of deferred | | 151 | | 151 |
| | finance costs | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | Share of losses (earnings) of | | (1,593) | | 6,891 |
| | joint ventures including | | | | |
| | impairment | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | Gain on sale of equity | | (604) | | - |
| | interest | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | Loss on marketable securities | | 67 | | - |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | Gain on sale of property, | | (195) | | - |
| | plant and equipment | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | Employee benefit obligations | | (236) | | 55 |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | Accrued interest and foreign | | 426 | | (118) |
| | exchange differences on short | | | | |
| | and long-term liabilities, net | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | Cost of share based | | 114 | | 506 |
| | payments | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | Deferred taxes | | 41 | | 2,068 |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | Other | | (94) | | (31) |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | | | 383 | | 11,278 |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | Changes in operating assets and | | | | |
| | liabilities: | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | Decrease (increase) in | | (610) | | 2,777 |
| | trade receivables, net | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | Decrease (increase) in | | 4,646 | | (8,858) |
| | other accounts | | | | |
| | receivable | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | Decrease (increase) in | | 21,625 | | (28,525) |
| | inventory | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | Increase (decrease) in trade | | (8,609) | | 11,422 |
| | payables | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | Increase (decrease) in related | | 7 | | (801) |
| | parties, net | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | Increase (decrease) in | | (3,266) | | 3,496 |
| | other accounts payable | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | | | 13,793 | | (20,489) |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | | | 14,176 | | (9,211) |
+--------+----------------------------------------------------+-+------------+--+-------------+
| (b) | Supplemental disclosure of cash flows | | | | |
| | activities: | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | Interest received | | 242 | | 714 |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | Interest paid | | 1,756 | | 1,485 |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | Income taxes paid | | 4,012 | | 2,654 |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| (c) | Non-cash activities: | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | Dividend payable | | - | | 940 |
+--------+----------------------------------------------------+-+------------+--+-------------+
| | | | | | |
+--------+----------------------------------------------------+-+------------+--+-------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR DGGZDVRZGLZG
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