Interim Results
August 18 2004 - 3:00AM
UK Regulatory
RNS Number:0763C
Nipson Digital Printing Systems PLC
18 August 2004
18 August 2004
NIPSON DIGITAL PRINTING SYSTEMS PLC
INTERIM RESULTS FOR THE 6 MONTHS TO 30 JUNE 2004
Nipson Digital Printing Systems PLC ("Nipson" or "the Company"), the
manufacturer and distributor of black & white digital printing systems and
related consumables, today announces its maiden interim results for the period
ended 30 June 2004.
Highlights
Turnover: # 13.3M
Gross margin: 34 %
Operating loss: # 0.4M
Admission to AIM: 30 July 2004
Commenting on prospects, Rimon Ben-Shaoul, Chairman of Nipson said:
"We are optimistic that the Company is in a position to capitalise on its
listing and positive cash balance to generate future growth. Following admission
we have taken initial steps to strengthen and enhance our sales and marketing
resources, particularly in North America and Asia Pacific, with the intention of
penetrating and expanding our presence in a number of significant printing
markets in which we have had limited presence in recent years".
For further information, please contact:
Nipson Digital Printing Systems PLC
Alfons Buts, Managing Director
Tel: + 32 3 740 02 00
Bankside Consultants Ltd
Ian Seaton / Simon Bloomfield
Tel: 020 7444 4140 / 4157
Chairman's Statement
I am delighted to be writing my first interim statement for Nipson Digital
Printing Systems PLC, following the successful admission of our shares to
trading on AIM on 30 July 2004.
It is the intention of the Board to report to the market on a quarterly basis,
in line with statements to the Tel Aviv Stock Exchange by Polar Communications
Limited, the ultimate owner of the Company's majority shareholder, Koonras B.V.
BVBA. We intend therefore to provide a full trading update covering operating
statistics and full year guidance in mid November.
Overview
Results for the six-month period to 30 June 2004 are in line with our operating
plans. Turnover for the period was #13.3 million, with an operating loss of #0.4
million. This operating loss was primarily due to one-off expenses of #0.3
million relating to DRUPA, the largest trade show in the printing industry,
which is held in Germany every four years.
Gross profit for the period was #4.5 million. Operating expenses for the period,
before the one-off DRUPA related costs, were #4.6 million. Further savings in
operating expenses are expected in the second half of 2004, which are primarily
attributable to the implementation of a cost reduction programme in the last
quarter of 2003. The full operating benefits of this programme will only be
reached during the second half of 2004 due to the time lag under French law in
implementing an employee redundancy programme. The net loss for the period also
includes an exceptional item of #0.3 million, relating to a restructuring charge
pursuant to the cost reduction programme.
Equipment revenues for the period were #3.9 million and recurring revenues for
the period were #9.3 million. New equipment sales in the period to 30 June were
adversely affected by the DRUPA show. Customers' purchasing decisions are often
delayed ahead of the DRUPA show, but the period following DRUPA often sees
increased sales. Turnover was also affected by the weak US$.
We enjoyed an excellent response at DRUPA to our new products from existing and
potential customers, including a large number of new leads primarily from Europe
and Asia Pacific, as well as the trade press. The reliable performance, speed
and resolution of our two new products, particularly the high-end Varypress 400,
were well received. We are currently seeing over double the number of active
prospects in these areas compared to the previous period last year. In the case
of the Varypress 400, our top line product, this is an even more significant
metric.
Total current assets at the end of June 2004 were #13.4 million. Total current
liabilities, including bridge financing of #1.6 million, increased to #11.1
million.
At the end of July 2004 we completed our initial public offering on AIM and
raised gross proceeds of #10 million (#8.9 million net). The Board is confident
that sufficient capital was raised to fulfil our strategic and operational
plans.
Prospects
We are optimistic that the Company is in a position to capitalise on its listing
and positive cash balance to generate future growth. Following admission we have
taken initial steps to strengthen and enhance our sales and marketing resources,
particularly in North America and Asia Pacific, with the intention of
penetrating and expanding our presence in a number of significant printing
markets in which we have had limited presence in recent years.
I would like to take this opportunity to welcome our new shareholders and
express our belief that future performance will justify their commitment.
Rimon Ben-Shaoul
Chairman
Nipson Digital Printing Systems PLC
NIPSON DIGITAL PRINTING SYSTEMS PLC
Interim results for the six months ended 30 June 2004
UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
6 months ended Year ended
30 June 31 December
2004 2003
(unaudited) (unaudited proforma)
#'000 #'000
Turnover 13,293 29,757
Cost of sales (8,801) (19,772)
_______ _______
Gross profit 4,492 9,985
Administrative expenses (4,916) (10,214)
Other operating (expenses)/income (14) 166
_______ _______
Operating (loss)/profit (438) (63)
Exceptional item (321) (2,467)
_______ ______
(Loss)/profit on ordinary activities before interest (759) (2,530)
Interest payable and similar charges (164) (748)
_______ _______
Loss on ordinary activities before taxation (923) (3,278)
Taxation - -
_______ _______
Loss on ordinary activities after taxation (923) (3,278)
Dividends payable - -
_______ _______
Retained deficit for the period (923) (3,278)
_______ _______
Turnover and operating profit/(loss) all derive from continuing operations.
NIPSON DIGITAL PRINTING SYSTEMS PLC
Interim results for the six months ended 30 June 2004
UNAUDITED CONSOLIDATED BALANCE SHEET
As at 30 June As at 31 December 2003
2004
(unaudited) (unaudited proforma)
#'000 #'000
Fixed assets
Intangible assets 555 518
Tangible assets 4,411 4,780
_______ _______
4,966 5,298
_______ _______
Stock 7,191 7,515
Debtors 5,791 5,925
Cash at bank 448 982
_______ _______
13,430 14,422
Creditors: amounts falling due within one year (11,113) (15,552)
_______ _______
Net current assets/(liabilities) 2,317 (1,130)
_______ _______
Total assets less current liabilities 7,283 4,168
Creditors: amounts falling due after more than (6,703) (2,617)
one year
Provisions for liabilities and charges (691) (698)
_______ _______
Net (liabilities)/assets (111) 853
_______ _______
Capital and reserves
Called up share capital 3,357 3,357
Reserves (3,468) (2,504)
_______ _______
Shareholders' equity funds (111) 853
_______ _______
NIPSON DIGITAL PRINTING SYSTEMS PLC
Interim results for the six months ended 30 June 2004
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
6 months ended Year
30 June ended 31 December
2004 2003
(unaudited) (unaudited proforma)
#'000 #'000
Net cash (outflow) from operating activities (2,214) (2,771)
Returns on investments and servicing of finance
Interest paid (164) (748)
_______ _______
Net cash flow for returns on investments and servicing of (2,378) (3,519)
finance
_______ _______
Taxation - -
Capital expenditure and financial investment
Purchase of tangible fixed assets (54) (240)
Proceeds from disposal of fixed assets - 146
_______ _______
Net cash flow for capital expenditure (54) (94)
_______ _______
Cash (outflow) before use of liquid resources and financing (2,432) (3,613)
Financing
New loans (including bank notes payable) 4,314 2,108
(Decrease)/increase in loan from parent (1,529) 618
undertaking
Loan repayments (274) (951)
Capital repayments on finance leases (207) (133)
Proceeds of share issue - 2,111
Translation adjustments (406) 294
_______ _______
Net cash inflow for financing 1,898 4,047
_______ _______
_______ _______
Decrease/(increase) in cash in period (534) 434
_______ _______
Reconciliation of net cash flow to movement in net debt
Increase in cash in period (534) 434
(Increase) in debt and lease financing (1,829) (2,337)
_______ _______
Movement in (debt) in period (2,363) (1,903)
Opening net debt (9,049) (7,146)
_______ _______
Closing net debt (11,412) (9,049)
_______ _______
NIPSON DIGITAL PRINTING SYSTEMS PLC
Interim results for the six months ended 30 June 2004
RECONCILIATION OF MOVEMENT IN EQUITY SHAREHOLDERS' FUNDS
6 months ended Year ended
30 June 31 December
2004 2003
(unaudited) (unaudited proforma)
#'000 #'000
Retained profit/(deficit) for the period (923) (3,278)
Translation adjustments on foreign currency net investments (41) 95
Proceeds of share capital issued - 2,111
______ ______
Net increase/(decrease) in shareholders' funds (964) (1,072)
Equity shareholders' funds at start of period 853 1,925
______ ______
Equity shareholders' funds at end of period (111) 853
______ ______
NIPSON DIGITAL PRINTING SYSTEMS PLC
Interim results for the six months ended 30 June 2004
NOTES
Nature of financial information
The financial information contained within this interim report has been prepared
in accordance with UK GAAP and is unaudited. It does not constitute statutory
accounts within the meaning of section 240 of the Companies Act 1985. No
audited consolidated financial statements for Nipson Digital Printing Systems
PLC have previously been prepared, the comparative being prepared for the
purposes of this statement.
Exceptional item
The exceptional item relates to costs of a restructuring programme for which
implementation commenced during 2003 and is to be completed during 2004. It is
to result in the redundancy of approximately 80 employees in France.
Acquisition
On 29 June 2004 Nipson Digital Printing Systems PLC ("the Company") acquired all
the assets and liabilities of Koonras B.V. BVBA (including the entire issued
share capital of Nipson SAS) ("the Acquisition"). The consideration was
satisfied by the issue of 29,999,800 ordinary shares of 1 pence each to Koonras
B.V. BVBA. The Acquisition has been accounted for using the Reverse Acquisition
method and this is in accordance with FRS 6 (Acquisitions and Mergers) and IFRS
3 (Accounting for Business Combinations).
The comparative results for the period ended 31 December 2003 have been
presented as if the Acquisition had already taken place at that balance sheet
date. The comparative results are therefore presented as proforma results.
Post balance sheet events
On 1 July 2004 an ordinary resolution was passed to increase the authorised
share capital of the Company to #600,000 consisting of 60,000,000 ordinary
shares of 1 pence each.
On 30 July the Company completed a placing of 14,285,714 Ordinary Shares of 1
pence each at an issue price of 70 pence per share ("the Placing"). On 30 July
2004 the Company's shares were admitted to trading on the AIM ("the Admission").
Pursuant to a warrant instrument adopted by the Company on 29 July 2004 the
Company is authorised to issue up to 2,017,867 "A" warrants. The Company has
issued 2,017,867 "A" warrants to Great Court Capital, LLC as partial
consideration for bridge funding provided by them in the period leading up to
Admission. Each "A" warrant is transferable by Great Court Capital, LLC to each
bridge funder or their affiliates. Each "A" warrant will entitle the warrant
holder to subscribe for one Ordinary Share at 80 per cent. of the Placing Price.
The Ordinary Shares issued pursuant to the exercise of the "A" warrants will
rank equally in every respect with the existing Ordinary Shares. The "A"
warrants are exercisable for a period of 3 years from Admission.
Pursuant to a second warrant instrument adopted by the Company on 29 July 2004
the Company is authorised to issue up to 630,358 "B" warrants. Each "B" warrant
will entitle the warrant holder to subscribe for one Ordinary Share at the
Placing Price. The Ordinary Shares issued pursuant to the exercise of the "B"
warrants will rank equally in every respect with the existing Ordinary Shares.
The "B" warrants are exercisable for a period of 5 years from Admission.
425,571 "B" warrants have been issued to SD Partners, LLC relating to the monies
raised under the Placing and 201,787 "B" warrants to Great Court Capital, LLC
being equal to 5 per cent of the US$5.15m raised for the bridge funding.
Bridge funding
The Group received bridge funding of approximately US$5.15m (of which US$2.9m
had been received as at 30 June 2004). This was repaid on 17 August 2004.
Copies of this statement will be posted to shareholders and will also be
available from the
Company's registered office: 110 Cannon Street, London EC4N 6AR.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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