RNS Number:4646F
Nipson Digital Printing Systems PLC
22 November 2004
NIPSON DIGITAL PRINTING SYSTEMS PLC
22 November 2004
INTERIM RESULTS FOR THE THIRD QUARTER
AND THE NINE MONTHS TO 30 SEPTEMBER 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 interim results for the third quarter and the nine month period ended
30 September 2004.
Chairman's Statement
I am pleased to be writing my second interim statement for Nipson Digital
Printing Systems PLC, following the admission of our shares to trading on AIM on
30 July 2004.
As mentioned in my previous report, it is the current intention of the Board to
report to the market on a quarterly basis, in line with statements released upon
the Tel Aviv Stock Exchange by Polar Communications Limited, the ultimate owner
of the Company's majority shareholder, Koonras B.V. BVBA.
Overview
Results for the third quarter and the nine month period ended 30 September 2004
were in line with our operating plan. Turnover for the three months was #6.6
million (nine months: #19.9 million) and the Company reported an operating
profit of #0.02m for the three month period (Operating loss for the nine month
period: #0.4m). The operating loss for the nine months was largely due to a
one-off expense of #0.3m million incurred during the six months ended 30 June
2004. This related to DRUPA, the largest trade show in the printing industry,
which is held in Germany every four years.
Gross margin for the three months was #2.1 million (nine months: #6.5 million).
Operating expenses for the three months were #2.1 million (nine months,
including the one-time DRUPA related costs: #7.0 million). The reduced quarterly
operating expenses for the three months to 30 September 2004 reflect the
successful implementation of a cost reduction programme initiated at the end of
2003. The operating benefits of this programme were only delivered in the second
half of 2004, due to the time lag under French law in implementing an employee
redundancy programme. In addition, further operating improvements, relating to
manufacturing and procurement efficiencies, are expected to be achieved in the
course of 2005.
The net loss for the three months was #0.4 million (nine months: #1.4m) and
includes an exceptional item of #0.4 million (nine months: #0.7 million),
relating to a restructuring charge resulting from the cost reduction programme.
Equipment revenues for the three months were #2.0 million (nine months: #6.0
million) while recurring revenues for the period were #4.6 million (nine months:
#13.9 million). New equipment sales for the first six months of 2004 were
characterised by a "holding" pattern for equipment business due to the DRUPA
show held in Germany during May of this year. Purchasing decisions are often
delayed until after the DRUPA show which is the focal point for new equipment
launches while the periods following DRUPA are often characterised by increased
sales. The third quarter is traditionally a weaker quarter as a result of summer
holidays in Europe. Turnover also continues to be adversely affected by the
weakened United States dollar.
Total current assets at the end of September 2004 increased to #17.9 million,
primarily as a result of the proceeds from our initial public offering. Total
current liabilities decreased to #7.6 million. The Board is confident that
sufficient capital was raised upon listing in July to fulfill our strategic and
operational plans.
Following admission to AIM, 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
these significant printing markets where we have had limited presence in recent
years.
Prospects
The Company's equipment order intake during the third quarter of 2004 showed
strong growth compared to the previous quarters. During Graphexpo and XPLOR, the
two North American trade shows that the Company attended in October, we received
a highly positive response to both new products, the Varypress 200 and the
Varypress 400.
This strong order intake continues in the fourth quarter, with orders taken
since the beginning of September 2004 for the VaryPress 400, the Company's
flagship product, already exceeding the total number of sales of its predecessor
in each of 2002 and 2003 in their entirety.
During the fourth quarter the first deliveries of the VaryPress 200 and the
VaryPress 400 will commence, which is in line with the Company's plans. By the
second quarter of 2005, it is planned that the VaryPress 200 will also have
overtaken its predecessor product.
While the plant in Belfort is working at full capacity in order to execute all
orders, the Company cannot be certain, at this time, that it will be able to
execute all received equipment orders for delivery and revenue recognition
within the last quarter of 2004. This is due to the ongoing manufacturing
build-up and product transition. The Company believes, however, that the fourth
quarter of 2004 will show strong growth both of equipment and recurrent
revenues, compared to previous quarters and the comparative quarter of 2003.
On the basis of current order intake for the recently launched top end products
and the existing product ranges, the Company expects strong revenue growth in
2005 in line with market expectations.
The current strong order intake is anticipated to continue, albeit with the
usual seasonal patterns. The Directors are also anticipating that this trend
will be supported by the ongoing expansion of the Company's direct and indirect
sales organisation. The Company for instance recently appointed a new
distributor in China, with a strong proven track record in other areas of the
digital printing space, and a new distributor in Spain, one of the growth
markets within Europe.
Rimon Ben-Shaoul
Chairman
Nipson Digital Printing Systems PLC
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
NIPSON DIGITAL PRINTING SYSTEMS PLC
Interim results for the third quarter and the nine months to 30 September 2004
UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
3 months ended 9 months ended Year ended 31
30 September 30 September December 2003
2004 2004 (unaudited
(unaudited) (unaudited) proforma)
#'000 #'000 #'000
---------- ---------- -----------
Turnover 6,561 19,854 29,757
Cost of Sales (4,508) (13,309) (19,772)
---------- ---------- -----------
Gross profit 2,053 6,545 9,985
Administrative expenses (2,087) (7,003) (10,214)
Other operating
(expenses)/income 56 42 166
---------- ---------- -----------
Operating (loss)/profit 22 (416) (63)
Exceptional item (373) (694) (2,467)
---------- ---------- -----------
(Loss)/profit on
ordinary activities
before interest (351) (1,110) (2,530)
Interest payable and
similar charges (89) (253) (748)
---------- ---------- -----------
Loss on ordinary
activities before
taxation (440) (1,363) (3,278)
Taxation 0 0 0
---------- ---------- -----------
Loss on ordinary
activities after
taxation (440) (1,363) (3,278)
Dividends payable 0 0 0
---------- ---------- -----------
Retained deficit for
period (440) (1,363) (3,278)
---------- ---------- -----------
Turnover and operating profit/ (loss) all derive from continuing operations.
NIPSON DIGITAL PRINTING SYSTEMS PLC
Interim results for the third quarter and the nine months to 30 September 2004
UNAUDITED CONSOLIDATED BALANCE SHEET
As at 30 As at 31
September 2004 December 2003
(unaudited) (unaudited
proforma)
#'000 #'000
----------- ------------
Fixed assets:
Intangible assets 712 518
Tangible assets 4,439 4,780
----------- ------------
5,151 5,298
----------- ------------
Current assets:
Stock 7,515 7,515
Debtors 5,236 5,925
Cash at bank 5,104 982
----------- ------------
17,855 14,422
Creditors amounts falling due
within one year (7,596) (15,552)
----------- ------------
Net assets/(liabilities) 10,259 (1,130)
Total assets less current liabilities 15,410 4,168
----------- ------------
Creditors amounts falling due
after more then one year (6,415) (2,617)
Provisions for liabilities and charges (707) (698)
----------- ------------
Net assets 8,288 853
----------- ------------
Capital and reserves:
Called up share capital 3,620 3,357
Other Reserves 4,668 (2,504)
----------- ------------
Shareholders' equity funds 8,288 853
----------- ------------
NIPSON DIGITAL PRINTING SYSTEMS PLC
Interim results for the third quarter and the nine months to 30 September 2004
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
9 months to Year ended 31
30 Sept 2004 December 2003
(unaudited (unaudited
proforma) proforma)
#'000 #'000
Net cash (outflow) from operating activities (3,511) (2,771)
Returns on investments and servicing of finance
Interest paid (253) (748)
----------- ------------
Net cash flow for returns on investments and
servicing of finance (3,764) (3,519)
----------- ------------
Taxation - -
Capital expenditure and financial investment
Purchase of tangible fixed assets (81) (240)
Proceeds from disposal of fixed assets - 146
--------- ----------
Net cash flow for capital expenditure (81) (94)
Cash acquired on acquisition 8 -
--------- ----------
Cash (outflow) before use of liquid resources
and financing (3,837) (3,613)
Financing
New loans (including bank notes payable) 523 2,108
(Decrease)/increase in loan from parent
undertaking - 618
Loan repayments (607) (951)
Capital repayments on finance leases (209) (133)
Net proceeds from issue of shares 8,515 2,111
Advances to group companies (21) -
Translation adjustments (242) 294
--------- ----------
Net cash inflow for financing 7,959 4,047
--------- ----------
Decrease/(increase) in cash in period 4,122 434
========= ==========
Reconciliation of net cash flow to movement in net debt
Increase in cash in period 4,122 434
(Increase) in debt and lease financing 942 (2,337)
--------- ----------
Movement in (debt) in period 5,064 (1,903)
Opening net debt (9,049) (7,146)
--------- ----------
Closing net debt (3,985) (9,049)
========= ==========
NIPSON DIGITAL PRINTING SYSTEMS PLC
Interim results for the third quarter and the nine months to 30 September 2004
RECONCILIATION OF MOVEMENT IN EQUITY SHAREHOLDERS' FUNDS
9 months ended Year ended 31
30 Sept 2004 December2003
(unaudited) (unaudited
proforma)
#'000 #'000
Retained profit/(deficit) for the period (1,363) (3,278)
Translation adjustments on foreign
currency net investments (53) 95
Proceeds of share capital issued 406 2,111
Share Premium Reserve 8,445 -
---------- ----------
Net increase/(decrease) in
shareholder funds 7,435 (1,072)
Equity shareholder funds at start
of period 853 1,925
---------- ----------
Equity shareholder funds at end
of period 8,288 853
========== ==========
NIPSON DIGITAL PRINTING SYSTEMS PLC
Interim results for the third quarter and the nine months to 30 September 2004
NOTES
1. 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.
2. 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).
3. Bridge Funding
During 2004, the group received bridge funding of approximately US$5.15m that
was repaid in August 2004.
4. Share Capital
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.
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 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
QRTEAXFNFAXLFFE
Nipson Digital Printing Systems (LSE:NDP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Nipson Digital Printing Systems (LSE:NDP)
Historical Stock Chart
From Jul 2023 to Jul 2024
