Interim Results
December 21 2006 - 9:12AM
UK Regulatory
RNS Number:4693O
Network Technology PLC
21 December 2006
Announcement of Interim Results for the 6 months to 30 September 2006
Chairman's Statement
I am pleased to report that turnover for the six months ended 30 September 2006
almost doubled to #1.27 million (2005: #621,000). This increase reflects growth
in sales of all our main product lines of FollowMe(R), Token Ring, N-Lynx and
Access Control.
The Group achieved a pre-tax profit of #12,000 for the six months ended 30
September 2006 compared to a loss of #162,000 in the same period last year.
As outlined in the Annual Report and Accounts, we have been investing in our
sales and support operations in the US and UK and we expected that the increased
cost base would result in only a small profit for the period. However we are
pleased with the resulting and continuing increase in overall sales.
The Company's mix of sales is currently: 2% Networked Access Control System
products; 58% FollowMe(R) Printing Systems; and 40% Token-Ring and N-Lynx
products.
Guidance
We continue to believe that 2007 will be a much more positive year for your
company and should allow us to retain profitability for the full year.
The Directors continue to consider a restructuring of the Company's shares to
allow payment of a dividend at the earliest possible time.
We are satisfied with the progress made and believe that the full year can
conclude with an overall profit.
Our newly-developed product line of networked fax receivers that convert
incoming fax to email and related fax convergence products have been well
received and we expect them to start contributing to sales in the next financial
year.
Klaus Bollmann
Chairman
INCOME STATEMENTS
6 months to 6 months to 12 months to
30 September 30 September 31 March
2006 2005 2006
#'000 #'000 #'000
(restated)
Revenue 1,278 621 1,413
Operating Costs (1,253) (782) (1,563)
------------ ------------ ------------
Operating Profit/(Loss) 25 (161) (150)
Interest (13) (1) (21)
------------ ------------ ------------
Profit/(Loss) Before Taxation 12 (162) (171)
Tax on Profit/(Loss) on Ordinary
Activities 0 0 194
------------ ------------ ------------
Profit/(Loss) After Taxation 12 (162) 23
======= ======= =======
Profit/(Loss) per Ordinary Share (pence) 0.57 (7.8) 1.1
======= ======= =======
BALANCE SHEETS
30 September 30 September 31 March
2006 2005 2006
#'000 #'000 #'000
(restated)
Non Current Assets
Property, Plant & Equipment 321 375 371
Investments 113 113 113
Development Costs 463 248 374
Deferred Tax Credit 143 1 147
------------ ------------ ------------
1,040 737 1,005
Current Assets
Inventories 913 910 946
Trade and Other Receivables 634 298 670
Cash and Cash Equivalents 16 16 18
------------ ------------ ------------
1,563 1,224 1,634
2,603 1,961 2,639
======= ======= =======
Current Liabilities
Trade and Other Payables 1,534 1,126 1,597
Bank Overdrafts and Loans 209 162 135
------------ ------------ ------------
1,743 1,288 1,732
Non Current Liabilities
Loans 131 140 168
------------ ------------ ------------
Total Liabilities 1,874 1,428 1,900
------------ ------------ ------------
Equity
Called Up Share Capital 4,112 4,112 4,112
Share Premium Account 8,028 8,028 8,028
Currency Translation Reserve (28) 0 (6)
Capital Redemption Reserve 12 12 12
Revaluation Reserve 85 85 85
Profit and Loss Account (11,480) (11,704) (11,492)
------------ ------------ ------------
729 533 739
------------ ------------ ------------
Total Liabilities and Equity 2,603 1,961 2,639
======= ======= =======
CASH FLOW STATEMENTS
6 Months to 6 Months to 12 Months to
30 September 30 September 31 March
2006 2005 2006
#'000 #'000 #'000
(restated)
Net Cash (Outflow)/Inflow from
Operating Activities 81 121 (61)
Investing Activities
Payments to Acquire Tangible Fixed Assets (6) (49) (72)
Payments to Acquire Intangible Fixed Assets (115) (89) (215)
Payments to Acquire Investments 0 0 (28)
------------ ------------ ------------
Net Cash Inflow/(Outflow) from Investing (121) (138) (315)
Financing Activities
Repayment of Borrowings (37) (24) (50)
Increase/(Decrease) in Bank Overdrafts 75 27 64
Proceeds from Borrowings 0 0 350
------------ ------------ ------------
Net Cash Inflow/(Outflow) from
Financing 38 3 364
Cash and Cash Equivalents at Beginning
of Period 18 30 30
------------ ------------ ------------
Cash and Cash Equivalents at End of
Period 16 16 18
======= ======= =======
NOTES TO THE INTERIM STATEMENT
1. Basis of Preparation
The interim financial statements have been prepared in accordance with the
accounting policies as set out in the Group financial statements for the 12
months ended 31 March 2006. 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 31 March 2006 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 30 September 2006.
3. Profit per Share
Profit per share has been calculated on a profit after taxation of #12,000
(2005: loss #162,000) and 2,055,971 #2 ordinary shares (2005: 2,055,971 #2
ordinary shares).
4. Stock
The Directors have reviewed the Group's inventory and remain confident that it
will all be sold for at least its 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 inventory at greater than or equal to book value.
Since 1 April 2006 the Group has sold #24,000 of that brokerage inventory at or
above cost, reducing the value of its brokerage inventory to #162,000.
5. Debtors
Included within debtors are the amounts of:
- #42,000 for which recovery proceedings have been instigated. Whether the
Company will be able to collect is however uncertain.
6. Creditors' amounts due within one year
Included within creditors is the sum of #226,000 due to the executive directors,
who have given loans to the company to finance the increase in sales and
marketing activities in the previous period.
7. Retained Loss
6 months to 6 months to 12 months to
30 September 30 September 31 March
2006 2005 2006
Unaudited Unaudited Audited
#000 #000 #000
Opening balance (11,492) (11,515) (11,515)
Retained profit/(loss) for
the period 12 (162) 23
Exchange Differences - (27) -
-------------- -------------- ---------------
(11,480) (11,704) (11,492)
======== ======== ========
This information is provided by RNS
The company news service from the London Stock Exchange
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