Interim Results
November 30 2007 - 12:03PM
UK Regulatory
RNS Number:9493I
Network Technology PLC
30 November 2007
Interim Results for the Six months ended 30 September 2007
30 November 2007
Chairman's Statement
I can report that turnover for the six months ended 30 September 2007 remained
almost the same, at #1.1 million (2006: #1.27 million). This reflects growth in
sales of Access Control and FollowMe(R) product lines and a decline in Token
Ring products, as anticipated, with stable N-Lynx sales.
Operating profit increased to #48,000 (2006: #25,000), resulting from a decrease
in operating costs associated mainly with lower direct costs and reduced
overheads.
The Group achieved a pre-tax profit of #21,000 for the six months ended 30
September 2007 compared to a profit of #12,000 in the same period last year,
fully in-line with our expectations and previous announcements. Earnings per
share for the half year increased from 0.57p to 1.01p.
As outlined in the Annual Report and Accounts, we have continued 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 expect a continuing increase in overall profits for the second half of this
financial year, in line with the seasonality of our business sector consistently
experienced each year over the last 10 years.
The Company's mix of sales is currently: 12% Networked Access Control System
products; 59% FollowMe(R) Printing Systems; and 31% Token-Ring and N-Lynx
products.
Guidance
We believe that 2008 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 is likely
to conclude with an overall profit.
Our networked fax receivers that convert incoming fax to email and related fax
convergence products have started to see some sales, however we have adjusted
our expectations of significant sales from this product line to contribute to
more significant 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
2007 2006 2007
#'000 #'000 #'000
Revenue 1,134 1,278 2,472
Operating Costs (1,086) (1,253) (2,346)
------------ ------------ ------------
Operating Profit 48 25 126
Interest (20) (13) (30)
------------ ------------ ------------
Profit before Taxation 28 12 96
Tax on Profit on Ordinary Activities (7) 0 (46)
------------ ------------ ------------
Profit after Taxation 21 12 50
============ ============ ============
Profit per Ordinary Share (pence) 1.01 0.57 2.4
============ ============ ============
BALANCE SHEETS
30 September 30 September 31 March
2007 2006 2007
#'000 #'000 #'000
Non Current Assets
Property, Plant & Equipment 262 321 302
Investments 28 113 28
Development Costs 658 463 625
Deferred Tax Credit 97 143 98
------------ ------------ ----------
1,045 1,040 1,053
Current Assets
Inventories 916 913 943
Trade and Other Receivables 652 634 532
Cash and Cash Equivalents 41 16 18
------------ ------------ ----------
1,609 1,563 1,493
2,654 2,603 2,546
============ ============ ===========
Current Liabilities
Trade and Other Payables 1,206 1,534 1,133
Bank Overdrafts and Loans 197 209 213
------------ ------------ -----------
1,403 1,743 1,346
Non Current Liabilities
Loans 609 131 544
------------ ------------ -----------
Total Liabilities 2,012 1,874 1,890
------------ ------------ -----------
Equity
Called Up Share Capital 4,112 4,112 4,112
Share Premium Account 8,028 8,028 8,028
Currency Translation Reserve (89) (28) (54)
Capital Redemption Reserve 12 12 12
Revaluation Reserve 0 85 0
Profit and Loss Account (11,421) (11,480) (11,442)
------------ ------------ -----------
642 729 656
------------ ------------ -----------
Total Liabilities and Equity 2,654 2,603 2,546
============ ============ ===========
CASH FLOW STATEMENTS
6 Months to 6 Months to 12 Months to
30 September 30 September 31 March
2007 2006 2007
#'000 #'000 #'000
Net Cash Inflow from Operating activities 53 81 383
Investing Activities
Payments to Acquire Tangible Fixed Assets (9) (6) (45)
Payments to Acquire Intangible Fixed Assets (69) (115) (316)
------------ ------------ ------------
Net Cash (Outflow) from Investing (78) (121) (361)
Financing Activities
Repayment of Borrowings (108) (37) (69)
Increase/(Decrease) in Bank Overdrafts (2) 75 47
Proceeds from Borrowings 158 0 0
------------ ------------ ------------
Net Cash Inflow/(Outflow) from Financing 48 38 (22)
Cash and Cash Equivalents at Beginning
of Period 18 18 18
------------ ------------ ------------
Cash and Cash Equivalents at End
of Period 41 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 2007. 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 2007 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 2007.
3. Profit per Share
Profit per share has been calculated on a profit after taxation of #21,000
(2006: loss #12,000) and 2,055,971 #2 ordinary shares (2006: 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.
5. Creditors' amounts due within one year
Included within creditors is the sum of #203,000 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.
6. Retained Loss
6 months to 6 months to 12 months to
30 September 30 September 31 March
2007 2006 2007
Unaudited Unaudited Audited
#000 #000 #000
Opening Balance (11,442) (11,492) (11,492)
Retained Profit for the period 21 12 50
period
-------------- -------------- ---------------
Closing Balance (11,421) (11,480) (11,442)
============== ============== ==============
This information is provided by RNS
The company news service from the London Stock Exchange
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