Final Results
July 29 2004 - 5:00AM
UK Regulatory
RNS Number:3491B
Network Technology PLC
29 July 2004
29 July 2004
Network Technology PLC
Preliminary Results
for the year ended 31 March 2004
Highlights
* Turnover down from #2.8m to #2.26m
* Average annual staff numbers in period down from 52 to 32
* Operating loss after restructuring costs decreased from #772k to #143k
* No dividend while Group remains in recovery phase
* Forward orders of #1.5 million, the highest forward order book in 4
years.
Commenting on the Company's position Klaus Bollmann, Chairman and Chief
Executive, says:
"The Board believes that first indications are visible that investment in
corporate America is slowly returning. A slower growth will be to our advantage
as it will allow the Company to adjust its manufacturing capacity in a
controlled manner. We currently have forward orders of #1.5 million, the highest
forward order book in 4 years. The Group will continue to bring new technologies
to market which, in the Board's view, will secure the Company's future and bring
the biggest rewards for our shareholders."
Chairman's Statement
Although it is expected that the auditors will issue a qualified audit opinion
on the same basis as described in last years financial statements, there are now
clear signs that we are at the end of a period of trading difficulties. Our
legacy products have, as planned, further declined whilst our new products have
continued to gain market share. This encouraging trend is mainly due to
increased investment by the corporate sector, although there was an overall
decline in sales revenue to #2.26m from #2.8m in the same period last year.
However, the bottom line shows accelerated improvement with a post-tax loss of
#143k compared to #772k in the same period last year. This year's results are
stated after charging depreciation of #162k and finance charges of #25k making
the company slightly profitable at operating level. Similar to the last period,
the second half of the financial year has shown an improvement over the
previous six months.
Dividends
Whilst the Company is still in a recovery phase the Directors are unable to
recommend the payment of a final dividend.
Guidance to the Market
The Group currently has firm orders of #1.5 million for delivery within the next
24 months.
The Group is now in a position to focus on the business at hand and the growth
of its market share in those markets for its products and services. The new
products are fully developed and further developments or improvements can be
covered by cash generated in the Group.
The Group continues to have low borrowings totaling #231k (US$ 420k), this is
mainly used to finance 1.5 months of sales.
With increased output in its US facility, the current staff numbers have
increased in the US and are likely to increase further.
The markets into which the Group is selling are multi billion dollar markets and
we believe that we can compete effectively by exploiting our technology and
having the flexibility to take advantage of the opportunities that are
available. The Group continues to have a unique technological position as well
as the ability to increase manufacturing when required.
NETWORK TECHNOLOGY PLC
-------------------------
YEAR ENDED 31 MARCH 2004
--------------------------
PROFIT AND LOSS ACCOUNT
-------------------------
31.03.04 31.3.03
#'000 #'000
Turnover 2,259 2,800
Cost of Sales (822) (1,265)
------- -------
Gross Profit 1,437 1,535
Other operating expenses (1,640) (1,668)
Other operating income 0 2
------- -------
Group operating loss (203) (132)
Exceptional item 0 (688)
Interest Receivable and similar income 0 0
Interest Payable and similar charges (25) (21)
------- -------
Loss before taxation (228) (841)
Tax on loss on ordinary activities 85 69
------- -------
Loss after taxation (143) (772)
======= =======
Loss per ordinary share (pence) (0.38) (2.10)
NETWORK TECHNOLOGY PLC
------------------------
YEAR ENDED 31 MARCH 2004
--------------------------
BALANCE SHEET
---------------
2004 2003
#'000 #'000 #'000 #'000
Fixed Assets
Tangible Assets 259 473
Current Assets
Stocks 1,168 1,297
Debtors 624 566
Cash at Bank and in Hand 56 72
------- -------
1,848 1,935
Creditors
Amounts falling due within one year (1,909) (1,981)
------- -------
Net Current Assets (61) (46)
------- -------
Total Assets less Current Liabilities 198 427
Creditors
Amounts falling due after more than
one year (176) (177)
------- -------
Net Assets 22 250
======= =======
Capital and Reserves
Called up share capital 3,764 3,694
Share premium account 8,028 8,028
Capital redemption reserve 12 12
Profit and loss account (11,782) (11,484)
------- -------
22 250
======= =======
YEAR ENDED 31 MARCH 2004
--------------------------
CASH FLOW STATEMENT
---------------------
2004 2003
#'000 #'000 #'000 #'000
Operating Loss (203) (132)
Depreciation and Working Capital
Movements 135 49
------- -------
Net Cash outflow from operating
activities (68) (83)
Returns on investments and servicing
of finance
Interest paid (25) (19)
Interest element of hire purchase
payment 0 (2)
------- -------
Net cash outflow from returns on
investments and servicing of finance (25) (21)
Taxation 70 178
Capital expenditure and financial investment
Payments to acquire tangible fixed
assets (7) (361)
Receipts from sales of fixed assets 24 5
------- -------
Net cash inflow/(outflow) from capital
expenditure
and financial investment 17 (356)
Liquidation of subsidiaries 0 234
------- -------
Cash outflow before financing (6) (48)
Financing
Proceeds from share issues 71 48
New debt 0 240
Repayment of debt (96) (49)
Capital element of hire purchase 0 (13)
------- -------
Net cash (outflow)/inflow from
financing (25) 226
------- -------
(Decrease)/Increase in cash (31) 178
======= =======
This information is provided by RNS
The company news service from the London Stock Exchange
END
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