Interim Results
December 21 2005 - 12:37PM
UK Regulatory
RNS Number:0685W
Network Technology PLC
21 December 2005
21 December 2005
NETWORK TECHNOLOGY PLC - INTERIM RESULTS
Announcement of Interim Results, 6 months to 30th September 2005
Chairman's Statement
--------------------
The unaudited interim accounts show a loss of #251,000 compared to a profit of
#163,000 in the same period last year.
This result is mainly due to a significantly lower turnover of #621,000 (#1.42
million in the previous interim period) caused by reduced TokenRing Bridge sales
and delayed contracts for FollowMeTM in the US which are now likely to
materialize in the fourth quarter.
A loss was in any case expected because of the increase in our sales force,
which took place during the period and the staffing up of our support operations
in the US and the UK. This required time for training and familiarization with
our products and markets and therefore did not immediately translate into sales.
The Company's mix of sales is currently: 40% Networked Access Control System
products; 50% FollowMeTM Printing Systems; and 10% Token-Ring Bridges and legacy
print-server products.
In 2005, the Company took equity in payment for development work conducted for
US company Facekey Corporation between 2001 and 2005. Facekey has now listed
(under the symbol FEKY) and the investment has converted to listed common stock
with a value of #113,000 which is shown on our balance sheet together with a
surplus on revaluation of #85,000.
Guidance
--------
We believe that 2006 will become a much more positive year for your company and
should allow us to return to significant profitability.
Currently, the Directors are considering a restructuring of the Company's shares
to allow payment of a dividend at the earliest possible time from earnings.
We are satisfied with the progress made and believe we can conclude with an
overall profit for the current year.
Klaus Bollmann
Chairman
PROFIT AND LOSS ACCOUNTS
------------------------
6 Months 6 Months 12 Months
to to to
30.9.05 30.9.04 31.3.05
#'000 #'000 #'000
Turnover 621 1,421 2,230
Exceptional cost of sales 0 0 (920)
Operating Costs (871) (1,240) (1,519)
Operating Profit/(Loss) (250) 181 (209)
Exceptional Item 0 0 273
Interest (1) (10) (24)
Profit/(Loss) Before Taxation (251) 171 40
Tax on Profit/(Loss) on Ordinary
Activities 0 (8) 72
Profit/(Loss) After Taxation (251) 163 112
Dividends - Equity 0 0 0
---------------------------
Retained Profit/(Loss) (251) 163 112
===========================
Profit/(Loss) per Ordinary Share (pence) -12.2 8.6 5.9
BALANCE SHEETS
--------------
30.9.05 30.9.04 31.3.05
#'000 #'000 #'000
Fixed Assets
Tangible Assets 375 251 391
Investments 113 0 0
Current Assets
Stocks 910 1,204 806
Debtors 298 742 510
Cash at Bank and in Hand 16 130 30
Creditors
Amounts falling due within one year (1,288) (1,992) (1,134)
Net Current Assets/(Liabilities) (64) 84 212
Creditors
Amounts falling due after more than one year (140) (154) (146)
---------------------------
Net Assets 284 181 457
===========================
Capital and Reserves
Called Up Share Capital 4,112 3,764 4,112
Share Premium Account 8,028 8,028 8,028
Capital Redemption Reserve 12 12 12
Revaluation Reserve 85 0 0
Profit and Loss Account (11,953) (11,623) (11,695)
---------------------------
284 181 457
===========================
CASH FLOW STATEMENTS
--------------------
6 Months 6 Months 12 Months
to to to
30.9.05 30.9.04 31.3.05
#'000 #'000 #'000
Operating Profit/(Loss) (250) 181 (209)
Depreciation and Amortisation 32 33 52
Working Capital Movements 251 (103) 66
---------------------------
Net Cash (Outflow)/Inflow from Operating
Activities 33 111 (91)
Returns on Investments and Servicing of Finance
Interest Paid (1) (10) (24)
Taxation 0 (8) (12)
Capital Expenditure and Financial Investment (49) (25) (185)
---------------------------
Cash Inflow/(Outflow) before Financing (17) 68 (312)
Financing (24) (22) 303
---------------------------
(Decrease)/Increase in Cash (41) 46 (9)
===========================
ANALYSIS OF NET FUNDS AND RECONCILIATION OF NET CASH OUTFLOW TO MOVEMENT
------------------------------------------------------------------------
IN NET FUNDS
------------
30.9.05 Movement 31.3.05
#'000 #'000 #'000
Cash at Bank and in Hand 16 (14) 30
Overdrafts (58) (27) (31)
Bank Loan (170) 24 (194)
---------------------------
(212) (17) (195)
===========================
NOTES TO THE INTERIM STATEMENT
1. Basis of Preparation
The interim financial statements to 30 September 2005 have been prepared in
accordance with the accounting policies as set out in the Group financial
statements for the 12 months ended 31st March 2005. The statements do not
comprise full financial statement within the meaning of section 240 of the
Companies Act 1985. The statements are unaudited and have not been independently
reviewed.
The figures for the 12 months ended 31st March 2005 have been extracted from
those financial statements.
2. Interim Dividend
The Directors continue to be unable to recommend the payment of a dividend for
the 6 months ended 30th September 2005.
3. Loss per Share
Loss per share has been calculated on a loss after taxation of #251,000 (2004:
profit #163,000) and 2,055,971 #2 ordinary shares (2004: 1,882,101 #2 ordinary
shares).
4. Stock
The Directors have reviewed the Group's stocks and remain confident that they
will all be sold for at least their book value. However, in view of the current
state of the market there must be a level of uncertainty surrounding the ability
to realise certain items of stock at greater than or equal to book value.
5. Debtors
Included within debtors are the amounts of:
- #42,000 for which recovery proceedings are planned, but not yet instigated.
Collectability is therefore uncertain.
6. Profit and loss account
6 months 6 months 12 months
to to to
30.9.05 30.9.04 31.3.05
Unaudited Unaudited Audited
#'000 #'000 #'000
Opening balance (11,695) (11,786) (11,786)
Retained profit/(loss) for
the period (251) 163 112
Exchange Differences (7) - (21)
----------------------------------------
(11,953) (11,623) (11,695)
----------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
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