Final Results
July 26 2007 - 11:49AM
UK Regulatory
RNS Number:9490A
Network Technology PLC
26 July 2007
RNS Announcement 26 July 2007
Network Technology Plc ("Network Technology" or "the Company") announces its
preliminary results for the year ended 31 March 2007.
Key Points
* Turnover #2.47 million (2006: #1.4 million)
* Profit after tax of #50,000 (2006: #23,000)
* Operating profit of #126,000 (2006: loss of #150,000)
* Further progress made on FollowMe(R) and Network Access Control products
* Committed forward orders in excess of US$ 0.5 million
Klaus Bollmann, Chairman and Chief Executive, commented:
"An almost doubling of our sales and doubling our profit is a further
encouraging sign of recovery in our markets. The current financial year has
continued at the same level for the first quarter, with orders expected to
continue to increase against same month last year in the second quarter and
continued strong interest in our FollowMe(R) product. We currently have total
forward orders of almost US$ 0.5 million across the main product lines."
Chairman's Statement
I am pleased to announce a third profitable year, profits were #50,000 as
against #23,000 in 2006. Operating profit increased to #126,000 (2006: operating
loss #150,000) despite the continued investment in increasing our sales staff.
We continue to benefit from this investment with further growth in sales.
Turnover for the year amounted to #2.47 million, almost double on the previous
year (2006: #1.4 million). Operating costs only increased by 13% to #1.6
million.
The Company continued to focus on building a stronger sales team and developing
its channels for its FollowMe(R) and Access Control products. As a result, our
order book at the end of June 2007 showed a healthy US$ 0.5 million.
Bank borrowings remain low, totaling #198,000 (US$359,290), which is primarily
used to finance approximately two months of sales.
The Directors are unable to recommend the payment of a final dividend for the
year. However, the Directors are continuing to consider a share capital
restructuring to permit the payment of dividends.
New Product Development
The Company has continued to generate further interest in its two main product
lines:
* FollowMe(TM)Printing is a Printer Access Control and Accounting system
which addresses issues like security, availability, print-data encryption,
access to colour printers, copier fax and email facilities on Multi Function
Printers as well as ordinary printers and copiers.
Among other applications, the system is an important element in protecting
companies from breaches that might violate Sarbanes-Oxley, the new legislation
affecting many large corporate users based in, or doing business with, the US.
* Networked Access Control Systems and Time and Attendance Terminals seamlessly
integrate almost all existing identification technologies such as swipe cards,
proximity cards, barcodes but also fingerprint and face recognition. This
product incorporates our own algorithms, which not only make us independent
of any particular reader or ID technology but also ensures its efficiency when
used with a larger number of people.
* The Networked Fax Receiver is a network appliance that converts an incoming
fax directly into an email so it arrives instantly in an email inbox improving
delivery and enabling it to be forwarded as well as reducing waste from Spam
faxes.
Copies of the 2007 Report and Accounts will be sent to shareholders in due
course. Further copies will be available from the registered office of Network
Technology PLC, 26 Victoria Way, Burgess Hill, West Sussex, RH15 9NF.
Outlook
The Company currently has firm orders of US$ 0.5 million for delivery within the
next 24 months.
The Company continues to focus on the business at hand and the growth of
revenues. Its new products are now fully developed and further developments and
improvements should be covered by cash generated within the Company.
The Board continues to believe that growth and performance in the US operations
in this financial year will be higher than in its European operations.
Our focus for this year will be to continue to develop our products and exploit
our technologies to address our target markets and expand our geographical
footprint with major efforts being made in Asia Pacific and in terms of our
Fortune 500 customer base.
Klaus Bollmann
Chairman
NETWORK TECHNOLOGY PLC
YEAR ENDED 31 MARCH 2007
CONSOLIDATED INCOME STATEMENT
Year Year
Ended Ended
31.03.07 31.3.06
#'000 #'000
Revenue 2,472 1,413
Cost of Sales (723) (306)
-------- --------
Gross Profit 1,749 1,107
Other operating expenses (1,623) (1,257)
Other operating income 0 0
-------- --------
Profit/(Loss) from operations 126 (150)
Investment income 0 0
Finance costs (30) (21)
-------- --------
Profit/(Loss) before tax 96 (171)
Tax (charge)/credit (46) 194
-------- --------
Profit for Year from Continuing Operations 50 23
======== ========
Earnings per ordinary share in pence
Basic and Diluted 2.4p 1.1p
NETWORK TECHNOLOGY PLC
YEAR ENDED 31 MARCH 2007
BALANCE SHEET
31 March 2007 31 March 2006
#'000 #'000
Assets
Non Current Assets
Property, plant and equipment 302 371
Investments 113 113
Development costs 625 374
Deferred tax asset 98 147
-------- --------
1,138 1,005
Current Assets
Inventories 943 946
Trade and other receivables 532 670
Cash and cash equivalents 18 18
-------- --------
1,493 1,634
Total Assets 2,631 2,639
-------- --------
-------- --------
Current Liabilities
Trade and other payables 1,668 1,597
Bank overdrafts and loans 198 135
-------- --------
1,866 1,732
Non Current Liabilities
Other Loans 50 168
-------- --------
Total Liabilities 1,916 1,900
Equity
Called up share capital 4,112 4,112
Share premium account 8,028 8,028
Currency translation reserve (80) (6)
Capital redemption reserve 12 12
Revaluation reserve 85 85
Profit and loss account (11,442) (11,492)
Total Equity 715 739
-------- --------
Total Liabilities and Equity 2,631 2,639
-------- --------
-------- --------
YEAR ENDED 31 MARCH 2007
CASH FLOW STATEMENT
31 March 2007 31 March 2006
#'000 #'000
Operating Activities 214 (61)
Investing Activities
Payments to acquire tangible fixed assets (42) (72)
Payments to acquire intangible fixed assets (251) (215)
Payment to acquire investments 0 (28)
-------- --------
(293) (315)
Financing Activities
Repayment of borrowing (54) (50)
Increase/(decrease) in bank overdrafts 50 64
Proceeds from borrowings 83 350
-------- --------
79 364
Cash and cash equivalents at beginning of period 18 30
Bank Balances and Cash 18 18
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Other Foreign Currency Revaluation Retained
Capital Premium Reserves Translation Reserve Losses
Reserve
#'000 #'000 #'000 #'000 #'000 #'000
At 1.4.06 4,112 8,028 12 (6) 85 (11,492)
Retained
profit for
the year 50
Exchange
loss on
on
translation (72)
------ ------ ------ ------ ------ ------
At 31.3.07 4,112 8,028 12 (80) 85 (11,442)
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
NOTES
1. Basis of Preparation
The comparative figures for the year to 31 March 2006 do not constitute full
accounts within the meaning of Section 240 of the Companies Act 1985. Full
accounts for that period, which received a qualified audit report containing a
statement under Section 237(3) of the Companies Act 1985, have been delivered to
the Registrar of Companies. The financial information set out in the preliminary
statement of results for the year ended 31 March 2007 does not constitute
statutory accounts within Section 240 of the Companies Act 1985.
The audit report to the statutory financial statements will contain a qualified
opinion arising from the omission of segmental information as required by IAS14
and a limitation in scope in respect of the realisable value of inventory at 31
March 2007. The audit report attached to the statutory financial statements for
that year contains a statement under Section 237(3) of the Companies Act 1985.
It does not contain a statement under Section 237(2) of that Act.
2. Going Concern
The statutory financial statements have been prepared on a going concern basis.
The ability of the group and company to continue as a going concern is based
upon:
* The achievement of projected sales and profit margins and the
maintenance of acceptable credit terms with suppliers and creditors
* The continued support of related parties
On the basis of the current financial projections the directors have a
reasonable expectation that the group and company have adequate resources to
continue in operational existence for the foreseeable future.
3. Earnings per Share
The calculation of basic earnings per ordinary share is based on the profit for
the year after tax of #50,000 (year to 31 March 2006: of #23,000).
Earnings per share has been calculated using the weighted average number of
ordinary shares in issue during the year. The weighted average number of equity
shares in issue is 2,055,971 (2006: 2,055,971).
The Basic and Diluted earnings per share figures are the same because the
average market price of the ordinary shares during the period did not exceed the
exercise price of the equity options in existence at the balance sheet date.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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