Interim Results
December 22 2004 - 12:34PM
UK Regulatory
RNS Number:7649G
Network Technology PLC
22 December 2004
NETWORK TECHNOLOGY PLC - INTERIM RESULTS
Announcement of Interim Results, 6 months to 30th September 2004
Chairman's Statement
I have pleasure in announcing this year's interim figures indicating further
overall growth within the Group.
In the first half of the year, the Group showed an improvement in sales to
#1.421 million compared to #1.047 million during the same period last year.
The Group also demonstrated profits of #163,000 compared to a loss of #65,000
during the same period last year. Much of the credit for this achievement is due
to our continuing efforts to reduce operating costs.
The outlook for the 3rd Quarter is expected to be slightly lower as capital
spending decisions were delayed until after the United States Presidential
elections. We expect 4th Quarter (Jan - March 2005) performance to exceed that
of Q3 as consumer spending and confidence improves resulting in a willingness by
our customers to resume capital investment.
I am confident that the full year's results to March 2005 will show improvement
over the previous year.
Klaus Bollmann
Chairman
PROFIT AND LOSS ACCOUNTS
6 Months to 6 Months to 12 Months to
30.9.04 30.9.03 31.3.04
#'000 '000 #'000
Turnover 1,421 1,047 2,259
Operating Costs (1,240) (1,099) (2,462)
Operating profit/(loss) 181 (52) (203)
Interest (10) (13) (25)
Profit/(loss) before taxation 171 (65) (228)
Tax on profit/(loss) on ordinary
activities (8) 0 81
Profit/(loss) after taxation 163 (65) (147)
Dividends - equity 0 0 0
Profit/(loss) on ordinary
activities after taxation 163 (65) (147)
The earning per share has been calculated using the number of shares post share
consolidation. The previous year's figures have been restated accordingly.
Profit/(loss) per ordinary share (pence) 8.6 -3.6 -7.7
BALANCE SHEETS
30.9.04 30.9.03 31.3.04
#'000 #'000 #'000
Fixed Assets
Tangible Assets 251 385 259
Current Assets
Stocks 1,204 1,319 1,168
Debtors 742 552 624
Cash at Bank and in Hand 130 50 56
-----------------------------------
2,076 1,921 1,848
Creditors
Amounts falling due within one year (1,992) (1,971) (1,913)
Net Current Assets 84 (50) 65)
Creditors
Amounts falling after more than one year (154) (150) (176)
-----------------------------------
Net Assets 181 185 18
===================================
Capital Reserves
Called up share capital 3,764 3,694 3,764
Share premium account 8,028 8,028 8,028
Capital redemption reserve 12 12 12
Profit and loss account (11,623) (11,549) (11,786)
-----------------------------------
181 185 18
===================================
CASH FLOW STATEMENTS
6 Months to 6 Months to 6 Months to
30.9.04 30.9.03 31.3.04
#'000 #'000 #'000
Operating Profit/(Loss) 181 (52) (203)
Depreciation and amortisation 33 65 162
Working capital movements (103) (8) (27)
-------------------------------------
Net Cash (outflow)/inflow
from operating activities 111 5 (68)
Returns on investments and servicing
of finance
Interest paid (10) (13) (25)
Taxation (8) 0 70
Capital expenditure and financial
investment (25) 0 17
Disposal of Subsidiaries 0 0 0
Equity dividends paid 0 0
-------------------------------------
Cash inflow before financing 68 (8) (6)
Financing (22) (61) (25)
-------------------------------------
(Decrease)/Increase in cash 46 (69) (31)
=====================================
ANALYSIS OF NET FUNDS AND RECONCILIATION OF NET CASH OUTFLOW TO MOVEMENT IN NET
FUNDS
30.9.04 Movement 31.3.04
Cash at Bank and in Hand 130 74 56
Overdrafts (76) (28) (48)
UK Bank Loan (217) 22 (239)
------------------------------------------------
Total (163) 68 (231)
================================================
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 31st March 2004. The statements do not comprise full financial
statement within the meaning of section 240 of the Companies Act 1985. The
statements are unaudited but have been reviewed by Parker Partnership Chartered
Accountants and their report is set out on page 7.
The figures for the 12 months ended 31st March 2004 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 2004.
3. Earnings per Share
Earnings per share have been calculated on a profit after taxation of #163,000
(2003: loss #65,000) and 1,882,101 #2 ordinary shares (2003: 36,934,243 10p
ordinary shares equivalent to 1,846,712 #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.
- #182,000 due from the liquidator of the two former subsidiaries, receipt of
which is dependent on the settlement of the amounts due to liquidator
6. Creditors' amounts due within one year
Included within creditors is the sum of #426,000 due to the liquidators of the
two former subsidiary companies. The amount payable is yet to be agreed with the
liquidators.
7. Profit and loss account
6 months 6 months 12 months
to 30.9.04 to 30.9.03 to 31.3.04
Unaudited Unaudited Audited
#000 #000 #000
Opening balance (11,786) (11,484) (11,484)
Retained profit/(loss) for the period 163 (65) (147)
Exchange Differences - - (155)
---------------------------------------
(11,623) (11,549) (11,786)
---------------------------------------
INDEPENDENT REVIEW REPORT TO NETWORK TECHNOLOGY PLC
Introduction
We have been instructed by the Company to review the financial information set
out on pages 2 to 6 and we have read the other information contained in the
interim report and considered whether it contains any apparent inconsistencies
with the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The Listing Rules
of the London Stock Exchange require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes and
the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board. A review consists principally of making
enquiries of group management and applying analytical procedures to the
financial information and underlying financial data and based thereon, assessing
whether the accounting policies and presentation have been consistently applied
unless otherwise disclosed.
A review excludes audit procedures such as tests of controls and verification of
assets, liabilities and transactions. It is substantially less in scope than an
audit performed in accordance with Auditing Standards and therefore provides a
lower level of assurance than an audit. Accordingly we do not express an audit
opinion on the financial information.
Fundamental uncertainty
In arriving at our review conclusion, we have considered the adequacy of
disclosures made in the financial information concerning the uncertainty as to:
- the ability of the group to sell its stocks for at least their
carrying value,
- the collectability of the #42,000 debt,
- the determination of the amounts due to the liquidator, and
- the subsequent recovery of the amounts due from the liquidator.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30th September 2004.
The Parker Partnership
Chartered Accountants and Registered Auditors
Hove
21 December 2004
This information is provided by RNS
The company news service from the London Stock Exchange
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