TIDMSCO
RNS Number : 2128G
Scotty Group SE
27 June 2012
27 June 2012
SCOTTY Group SE
("SCOTTY", the "Company" or the "Group")
FINAL RESULTS
SCOTTY, the video telecommunications equipment and technology
company with a focus on the government, defence and aviation
markets, announces audited results for the year ended 31 December
2011.
SCOTTY's functional and presentational currency has changed from
GBP to Euros.
Highlights:
-- Revenue of Euros 5.988 million up 4.4% (2010: Euros 5.734 million)
-- Operating profit of Euros 349,000 up 79.9% (2010: Euros 194,000)
-- Post-tax profit of Euros 104,000 (2010: Loss of Euros 2.681 million)
-- Earnings per share of Euros 0.11 (2010: Loss per share Euros 2.77)
Dr Ernst Wustinger, Chairman of SCOTTY, commented:
"I am pleased to report these improved results. Our
well-established relationships with the German military, Eurocopter
and Diamond Aircraft Industries have been joined by additional
revenue streams, derived from the widening range of applications
and platforms for our systems.
"The year saw improvements in our profitability at gross margin
level and the Group's net profitability is set to benefit from the
cost reduction programme that took effect during 2011 and the early
part of 2012. together with the lower cost base to be achieved
through the change of domicile from the UK to Austria."
SCOTTY Group SE
Kurt Kerschat, CEO 020 7653 9850
Nominated Adviser
Cairn Financial Advisers LLP
Tony Rawlinson / Avi Robinson 020 7148 7900
Broker
Northland Capital Partners
Limited
Katie Shelton 020 7796 8800
CHAIRMAN'S STATEMENT
I am pleased to report improved results of SCOTTY Group SE for
the year ended 31 December 2011. During the year we converted the
Company from a public limited company (plc) to a Societas Europaea
(SE) and restructured our share capital into shares denominated in
Euros. We also obtained our shareholders' approval to change the
domicile of the Company from the UK to Austria, a change that was
completed in April 2012.
In view of the above changes, we have taken the decision to
change our functional currency from pounds sterling to Euros, the
currency in which virtually all of our revenue and the majority of
our costs are denominated. Accordingly, these results are reported
in Euros and the comparative figures for 2010 have been converted
into Euros at appropriate exchange rates.
Results
Revenue for the year ended 31 December 2011 was Euros 5,988,000,
compared with Euros 5,734,000 (GBP4,921,000) for the year ended 31
December 2010.
Operating profit for the year before exceptional costs was Euros
349,000, compared with Euros 194,000 (GBP166,000) in the previous
year. As required by International Financial Reporting Standards,
development costs were again capitalised this year. Had this not
been the case, the Group would have made an operating loss of Euros
16,000 this year, compared with an operating loss of Euros 331,000
(GBP244,000) in 2010.
The Group has recognised one-off exceptional charges this year,
totalling Euros 558,000, in respect of reorganisation changes
agreed during the year. This amount consists of three elements:
-- costs connected with the change of company status and the change of domicile;
-- costs connected with the closure of the Group's US operations
centre in Atlanta and its relocation to Florida;
-- the payment of a reverse premium in respect of the surrender
of the Group's lease of the Motion Media Technology Centre in
Bristol.
These changes are described in more detail later in this
statement and in the Operating Review.
After charging these exceptional costs, the Group is reporting a
pre-tax loss for the year of Euros 240,000, compared with a pre-tax
loss of Euros 2,812,000 (GBP2,414,000) in 2010.
After a net income tax credit of Euros 344,000 (2010: Euros
131,000 (GBP113,000)), the result after tax for 2011 was a profit
of Euros 104,000, compared with a loss of Euros 2,681,000
(GBP2,301,000) in 2010.
Cash and cash equivalent balances amounted to Euros 686,000 at
31 December 2011, compared with Euros 266,000 (GBP228,000) at 31
December 2010. Borrowings were reduced from Euros 392,000
(GBP336,000) in 2010 to Euros 280,000 this year.
The directors are not recommending payment of a dividend at this
stage in the Group's development.
Review
Turnover in our second half-year showed an improvement of
approximately 50 per cent on the first half, with the result that
turnover for the financial year ended 31 December 2011 was Euros
5.9 million. During the year our Eurocopter CH-53PV system
deliveries for 2011 were completed successfully as planned,
generating revenue of Euros 2.9 million, and the last deliveries
from the Diamond contract for the Asian government generated Euros
1.2 million. The remaining Euros 1.8 million turnover was derived
from a variety of revenue streams, but negotiations on some other
larger projects have been taking longer than anticipated, with the
result that the year's turnover was less than we had initially
expected.
During the year our research and development team continued the
strategy of developing our systems for use in different aircraft
types and the miniaturisation of our mobile equipment, in order to
increase its versatility and make it more suitable for the Unmanned
Aerial Vehicle (UAV) market. We also achieved the prestigious EN
9100 quality accreditation for aero-certified systems.
These activities are all described more fully in the Operating
Review .
Board, management and staff
As I reported last year, Lord Trefgarne retired as your Chairman
in April 2011 and I was appointed to succeed him. There were no
other changes in the composition of the Board during 2011.
In February 2012 Dr Hans Peter Sauerzopf was reappointed to the
Board as a non-executive director. Dr Sauerzopf was a director of
the Company from 4 August 2004 to 31 December 2010. Against the
background of the transfer of the Company's domicile from the UK to
Austria, the appointment of Dr Sauerzopf has strengthened the
Board's Austrian legal expertise.
Our staff numbers remained stable and our people well-motivated.
The continuity of staff further cemented the experience of our
research and development team.
Corporate affairs
In addition to the changes to the Board outlined above, there
have been some important corporate developments during 2011 and the
early months of 2012.
Shareholders will remember that at the Extraordinary General
Meeting (EGM) on 5 April 2011 shareholders voted to defeat a
resolution to approve, in principle, the sale of the SCOTTY
business to Invest Equity GmbH. The Board then adopted the
alternative strategy of converting SCOTTY Group plc to an SE and
moving the corporate seat to Austria, together with the possibility
of seeking a listing on the Third Market of the Vienna Stock
Exchange in due course.
Formation of the SE was approved by shareholders at an EGM in
September 2011, at which time a restructuring of the share capital
took place, culminating in the shares being re-denominated into
shares of one Euro each. The change of domicile was approved at a
further EGM on 30 December 2011. Since the year-end, the change of
domicile has become effective on 17 April 2012, when SCOTTY Group
SE's registered office was transferred to Eisenstadt, Austria.
The change of domicile to Austria meant that SCOTTY's shares
were no longer UK securities and could therefore no longer be
traded on the Alternative Investment Market (AIM) in their existing
form. Accordingly, trading in the Company's shares was temporarily
suspended on 17 April 2012. The shares were then converted into
CREST Depository Interests (CDI's), which are dematerialised
depository interests representing entitlement to ordinary shares
(and are also UK securities), and the CDI's were re-admitted to
trading on AIM on 11 May 2012.
Outlook
In my statement last year I said that our priorities for 2011
were to consolidate our market position and improve our
profitability and working capital position. I believe we have made
sound progress on each of these objectives during the year under
review, but there remains work to do.
Our well-established relationships with the German military,
Eurocopter and Diamond Aircraft Industries have been joined by
additional revenue streams, derived from the widening range of
applications and platforms for our systems.
The year saw improvements in our profitability at gross margin
level. The Group's net profitability is set to benefit from the
cost reduction programme that took effect during 2011 and the early
part of 2012, namely the closure of our UK office and relocation of
our US office, together with the lower cost base to be achieved
through the change of domicile.
Now that SCOTTY Group SE is domiciled in Austria, opportunities
are also opening up for Austrian national and regional government
funding, both for developing and marketing new video platforms and
products for existing markets and for investigating new markets and
applications. We are currently working on applications for funding
from both levels of government.
Our working capital position in 2011 was improved through the
capital injection of GBP600,000 (Euros 700,000) through a share
placing in June. As foreseen in my statement last year, I
subscribed GBP500,000 through my investment company Dr Wustinger
GmbH, and other members of senior management subscribed GBP100,000.
At our Annual General Meeting in June 2011 we obtained the approval
of our shareholders for sufficient headroom to allow a further
capital increase of up to 50 per cent of our currently issued share
capital. The Board is currently considering potential plans for a
capital increase through a share placing within this authority, in
order to strengthen our working capital following the significant
expenditure on the change of domicile and re-admission to AIM, also
the surrender of the lease in Bristol (described below), and to
fund growth.
One important priority that we addressed during 2011 related to
our head-lease of the Motion Media Technology Centre in Bristol,
which had a remaining term of some ten years to run, until March
2022. I am pleased to report that after lengthy negotiations we
concluded an agreement with the lessor to surrender the lease for a
payment of GBP150,000 (Euros 180,000). This transaction completed
in February 2012, with the result that we have no further
liabilities in respect of the property.
Our next objective is to determine our strategy for a broader
diversification for our revenue streams, to equip us to take
advantage of more market opportunities, whilst spreading our risks
across a broader base of applications in an uncertain market. In
this context we are currently investigating several options and
will announce our conclusions in due course.
The date and location of the Annual General Meeting will be
announced shortly. In the meantime I would once again like to thank
our shareholders for their continued support, and our employees for
their dedication and professionalism, during a challenging
year.
Dr Ernst Wustinger
Chairman
27June 2012
OPERATING REVIEW
Cautionary statement
This Operating Review has been prepared solely to provide
additional information to shareholders to assess the Company's
strategies and the potential for those strategies to succeed.
The Operating Review contains certain forward-looking
statements. These statements are made by the directors in good
faith based on the information available to them up to the time of
their approval of this report and such statements should be treated
with caution due to the inherent uncertainties, including both
economic and business risk factors, underlying any such
forward-looking information.
Results
Revenue for the year ended 31 December 2011 increased to Euros
5,988,000, compared with Euros 5,734,000 (GBP4,921,000) for the
year ended 31 December 2010. The year was once again affected by
projects taking longer than anticipated to be turned into firm
orders, but the improved revenue covered a wider range of products
and applications, described more fully in the review of the market,
below.
Gross profit for the year improved in both volume and percentage
terms, at Euros 3,508,000 and 58.6 per cent for 2011, compared to
Euros 3,148,000 (GBP2,702,000) and 54.9 per cent for the previous
year.
Gross administration expenses amounted to Euros 3,901,000 for
the year, compared with Euros 3,602,000 (GBP3,092,000) in 2010. The
increase was influenced by a smaller charge for capitalised
research and development compared with the previous year, as
described more fully below. Against this figure of gross
administration expenses must be offset the Group's other income,
which included rent and service charges received from the Group's
sub-tenants of its leasehold property in Bristol. Other income
totalled Euros 742,000 in 2011, compared with Euros 648,000
(GBP556,000) in the prior year.
Net administration expenses in the year were reduced by Euros
365,000 (2010: Euros 525,000 (GBP410,000)), being the net figure of
development costs capitalised in the year, less the amortisation
charged to the income statement in the year. The gross costs
capitalised in the year were Euros 740,000 (2010: Euros 810,000
(GBP655,000)), against which amortisation of Euros 375,000 (2010:
Euros 285,000 (GBP245,000)) has been charged to the income
statement in the period. This work is described more fully under
research and development, below.
On the back of higher turnover and improved margins, operating
profit for the year, before exceptional charges, improved from
Euros 194,000 (GBP166,000) in 2010 to Euros 349,000 this year. The
operating loss before capitalisation of development costs and the
associated amortisation was reduced, from Euros 331,000
(GBP244,000) in 2010 to Euros 16,000 this year.
The results include one-off charges of an exceptional nature
this year, totalling Euros 558,000.This compares with exceptional
charges of Euros 2,985,000 (GBP2,561,000) last year (the major part
of which was an impairment charge of GBP2,500,000 in respect of the
Group's goodwill). This year's exceptional charges relate to three
major topics, as follows:
-- Legal and professional costs of Euros 307,000 incurred in the
UK and Austria, associated with the change of company status to a
Societas Europaea, the change of domicile from the UK to Austria
and the re-admission of the Company's shares to AIM in CDI
form,
-- Personnel costs and inventory write-offs totalling Euros
78,000, associated with the closure of the Group's US operations
centre in Atlanta and its relocation to AirScan's facility in
Florida.
-- The payment of a reverse premium of Euros 180,000
(GBP150,000) in respect of the surrender of the Group's lease of
the Motion Media Technology Centre in Bristol.
As a result of these charges, we are reporting a pre-tax loss of
Euros 240,000 compared with a loss of Euros 2,812,000
(GBP2,414,000) in 2010.
This year's taxation credit to the income statement again
largely reflects the recognition of a deferred tax credit in
respect of losses available for offset against profits arising in
future years in Austria, as described more fully under Taxation
below. The result after tax for the year was a profit of Euros
104,000, compared with a loss of Euros 2,681,000 (GBP2,301,000)in
2010.
Review of the market
During 2011 the Group has broadened its offerings in the
government, defence and aviation markets. We are reporting revenue,
improved on last year, in an increasingly diversified range of
products and systems, all linked to the Group's expertise in
encrypted satellite communications. However, operating conditions
were once again challenging, as projects have mainly taken longer
than anticipated to become firm orders.
Eurocopter
2011 saw the continuation of deliveries under the serial
roll-out of the PV programme for Eurocopter, a product improvement
programme for upgrading German Army CH53 helicopters. The order is
worth approximately Euros 8.4 million in total, for deliveries
between 2009 and 2013, and revenue from this source in 2011 was
Euros 2.9 million.
The other ongoing contract with Eurocopter, awarded in 2009, is
for key positioning and communication equipment for Eurocopter's
Personnel Location System (PLS) for German Army helicopters. 2011
saw delivery of a further six systems worth Euros 0.2 million.
Diamond Aircraft
The renewed interest in our aero-certified systems for the
Diamond DA42 fixed-wing aircraft produced revenue of some Euros 1.2
million in 2011, largely from the remaining deliveries of Beyond
Line of sight ("BLOS") and Line of sight communications equipment
under our contract with Diamond for the Asian government reported
in 2010.
The suitability of the DA42 aircraft for surveillance operations
with applications such as protection of countries' borders,
pipelines and fisheries means that, as in 2010, we have other
projects awaiting conversion to firm orders.
Other aero-certified business
SCOTTY was awarded a contract for the delivery of several satcom
aero antenna sets through NATO procurement, for installation on
CH-53 helicopters used in NATO missions, as an add-on to the
existing CH-53 installations that have been operating in mission
environments since 2006. This contributed revenue of Euros 0.3
million in 2011.
Following successful trials of our aero-certified systems on the
Tecnam MMA aircraft in 2010, we already have one airborne
surveillance project for this aircraft in the advanced stages of
negotiation.
In September 2011 SCOTTY Group Austria and HeliMedia Ltd
announced the signing of a cooperation agreement to jointly market
beyond line-of-sight solutions for the UK Intelligence,
Surveillance and Reconnaissance (ISR) market. HeliMedia are
specialists in delivering ISR equipment and consultancy to help
customers define operational requirements and deliver operational
solutions.
During the year we started to develop a closer regime of
co-operation with AirScan, a US company. Founded in 1989, AirScan
provides a full range of ISR services for government and private
sector customers. Since the year-end we have transferred our US
centre of operations to AirScan's facility in Florida, as described
more fully under Operations below, and a first demonstration
AirScan aircraft has successfully completed flight trials with
SCOTTY aero-certified equipment on board.
Ground-based communications products
Maintenance and upgrades to systems sold to the German Army in
prior years continue to produce a steady revenue stream, generating
revenue of Euros 0.8 million in the year, and tele-health and
tele-engineering applications for the German Navy produced a
further Euros 0.3 million.
We announced in September 2011 the conclusion of a contract with
a Western European army for the development, delivery and
integration of three vehicular video-satcom workstations in a new
reconnaissance vehicle. The prototype unit was delivered in 2011,
producing turnover of Euros 0.3 million, and the contract continues
into 2012. This is the first project where the Company will provide
its latest airborne technology to be integrated into an armed
vehicle for the purpose of its use in a "Combat Camera Team"
scenario. The system uses SCOTTY's latest integrated video and
satcom technology, together with new antenna and modem technology
from our strategic partner, Cobham SATCOM. The capable bandwidth
performance of the SCOTTY system significantly outperforms existing
available commercial off-the-shelf "Satcom on the Move"
systems.
The reconnaissance vehicle mentioned above is one example of a
project incorporating the recent upgrades to SCOTTY's land-based
communications units, with an emphasis on reducing size and weight,
including the ProMin unit which was launched in 2010 as described
in last year's report.
Research and development
2011 was another year of effective and innovative research and
development, exploiting the fund of steadily-increasing knowledge
and experience in the Graz R&D team. The experience and
continuity of the team minimises the turnaround time needed to
bring ideas and concepts to fruition; it means that we can rapidly
adapt the application of our technology to customers' specific
requirements, as well as maintaining a high level of commonality
between our systems for different platforms.
A major objective of the R&D programme has continued to be
the adaptation of our BLOS technology for use on other aircraft
platforms and the miniaturisation of SCOTTY's existing technology.
Miniaturisation increases the versatility of the Company's mobile
products and could be particularly applicable to the growing UAV
market.
During the year SCOTTY's "store and forward" imagery feature
became HD compatible. This means that high definition quality
snapshots and recorded video can be saved and transferred over
satellite. Decision makers are not only able to receive an overview
of a situation through the live video transmission, they can then
request detailed imagery of specific details under
surveillance.
Finally, the research centre in Graz successfully achieved the
prestigious EN 9100 aero certification standard in January
2011.
Operations
During the year the Group started a programme to reduce costs.
This included the closure of the Group's UK office in Bracknell,
the UK directors now working from home, and rationalisation of the
North American office in Atlanta. The Atlanta office has closed
since the year-end, in May 2012, when the Group's US operations
transferred to the AirScan C4ISR Center of Excellence on Space
Coast Regional Airport, Titusville, Florida.
Mainly as a result of these measures, the Group's average total
headcount fell slightly, from 34 in 2010 to 31 this year, but
research and development staff numbers remained constant.
Cash flow
In June 2011 a share placing (described in more detail under
Financing below) raised GBP600,000 (Euros 700,000). After capital
investment and financing, cash and cash equivalent balances
increased to Euros 686,000 at 31 December 2011, compared with Euros
266,000 (GBP228,000) at 31 December 2010, and bank borrowings fell
from Euros 392,000 (GBP336,000) in 2010 to Euros 280,000 this
year.
Capital expenditure
Total expenditure on property, plant and equipment during the
year was Euros 174,000 compared with Euros 25,000 last year. In
addition, gross investment in development costs during 2011,
included in intangible assets, amounted to Euros 740,000 (2010:
Euros 810,000) as described above. This represents internal time
costs and expenses incurred in developing the SCOTTY core
technology for sale in new markets and on new aircraft
platforms.
Treasury
The Group's financial instruments comprise cash and liquid
resources, and various items, such as trade debtors and trade
creditors that arise directly from its operations.
There were no derivative transactions during the period under
review. Throughout the period it has been the Group's policy that
no trading in financial instruments shall be undertaken. The
majority of the Group's sales and expenses are denominated in
Euros, through its subsidiary in Austria, and additionally there
have been some transactions in US dollars, through its subsidiary
in the USA. Gains or losses arising on foreign currency
transactions are recognised in the income statement. In the period
under review the gain was Euros 50,000 (2010: Euros 73,000
(GBP63,000)). Foreign currency losses of Euros 129,000 (2010: Euros
206,000 (GBP177,000)) arising on presentation of the financial
statements of overseas subsidiaries in Euros (2010: pounds
sterling) for the purpose of the consolidated financial statements
are recognised in comprehensive income.
During 2011 it has continued to be the Group's policy not to
enter into hedging transactions to mitigate foreign currency
fluctuations, but this policy continues to be reviewed
periodically.
Taxation
The Group's unutilised tax losses at 31 December 2011 include
losses of some Euros 3.3 million arising in Austria. When the Group
was still domiciled in the UK, Austrian losses were available to
offset up to 75 per cent of taxable profits arising in Austria in
any year. Since the change of domicile to Austria the proportion of
Austrian profits that can be offset by losses brought forward
increases from 75 to 100 per cent, 2011 being the first year's
profits that may be treated in this way.
Financing
Throughout the period under review the Group has financed its
activities mainly from trading income and continued tight control
of working capital, together with a credit facility with an
Austrian bank, augmented by a share placing.
In June 2011 (before the capital restructuring) the Company
issued 7,500,000 new ordinary shares of 5 pence each at a price of
8 pence per share, representing a premium of 78 per cent over the
then mid-market price of the shares. The placing raised GBP600,000
(Euros 700,000), as described in the Chairman's Statement.
Current trading
We have a number of potential projects currently in the course
of negotiation, mostly relating to our aero-certified BLOS systems
for fixed wing aircraft. These negotiations have been progressing
satisfactorily but are continuing to take longer than expected. As
a result, trading so far in 2012 has, for the most part, not yet
started to reflect the revenue from these contracts and has
therefore fallen short of management's expectations, However we
expect a significant improvement in the second half-year, based
partly on the current status of these contracts and partly on
newly-emerging business
Outlook
As demonstrated by the variety of the Group's revenue described
above, SCOTTY has spread its net more widely during the year under
review and has an increasingly diversified revenue base, though
still linked by the common thread of satellite-based audio, video
and data communication.
Revenue from the Eurocopter PV project will continue to be a
major contributor to 2012 and 2013, but revenue from our offerings
for fixed-wing aircraft is expected to contribute significantly.
The timing of these latter contracts remains difficult to predict,
but, as mentioned in previous years, the equipment can be supplied
with a short turnaround time and can therefore contribute to
revenue soon after the announcement of an order.
In the arena of land and maritime projects, the development of
the combat camera applications for reconnaissance vehicles is an
exciting new area for our expertise, while our business of
maintaining and upgrading land-based communications equipment for
the German military continues to represent another reliable source
of revenue, which contributes towards smoothing our monthly revenue
fluctuations.
The broadening of our range of products and solutions, combined
with high barriers of entry for potential competitors, means that
we are well-positioned to respond to governments' requirements for
encrypted satellite communications systems in defence and homeland
security and related markets, through a variety of airborne, land
and maritime applications.
However, as outlined in the Chairman's statement, we are
currently looking to further broaden the diversity of our product
offerings and we are currently investigating several options in
some detail.
Kurt Kerschat Hugh Edmonds FCA
Chief Executive Officer Finance Director
27June 2012
CONSOLIDATED INCOME STATEMENT Year Year
for the year ended 31 December
2011 Note ended ended
31 December 31 December
2011 2010
Euros 000 Euros 000
Revenue 2 5,988 5,734
Cost of sales (2,480) (2,586)
Gross profit 3,508 3,148
58.6% 54.9%
Administration expenses (3,901) (3,602)
Other operating income 742 648
Operating profit 349 194
Other gains and losses (558) (2,984)
Finance income 1 1
Finance expense (32) (23)
Loss before tax (240) (2,812)
Income tax credit 344 131
Profit/(loss) for the period 104 (2,681)
============= =============
Earnings/(loss) per share (basic
and diluted) 3 EUR 0.11 -EUR 2.77
The above results all relate to continuing
operations.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December
2011 Year Year
ended ended
31 December 31 December
2011 2010
Euros 000 Euros 000
Profit/(loss) for the period 104 (2,681)
Exchange differences on translation
of foreign operations (129) (206)
Total comprehensive income for the
period (25) (2,887)
============= =============
CONSOLIDATED BALANCE SHEET At 31 December At 31 December
at 31 December 2011 2011 2010
Euros 000 Euros 000
Non-current assets
Goodwill 4,085 4,085
Other intangible assets 1,866 1,515
Property, plant and equipment 256 187
Investments 225 225
Deferred tax assets 358 -
6,790 6,012
--------------- ---------------
Current assets
Inventories 593 819
Trade and other receivables 930 2,495
Cash and cash equivalents 686 266
2,209 3,580
--------------- ---------------
Total assets 8,999 9,592
--------------- ---------------
Current liabilities
Trade and other payables (1,559) (2,404)
Current tax liabilities (140) (563)
Obligations under finance leases (37) (28)
Borrowings (280) (392)
(2,016) (3,387)
--------------- ---------------
Net current assets 193 193
--------------- ---------------
Non-current liabilities
Deferred tax liabilities - (17)
Long-term provisions (127) (108)
Obligations under finance leases (64) (10)
(191) (135)
--------------- ---------------
Total liabilities (2,207) (3,522)
--------------- ---------------
Net assets 6,792 6,070
=============== ===============
Capital and reserves
Called up share capital 970 11,230
Share premium account - 41,542
Capital redemption reserve - 203
Share option valuation reserve 111 111
Capital reduction special reserve 154 -
Retained earnings 5,557 (47,016)
Total shareholders' funds 6,792 6,070
=============== ===============
CONSOLIDATED CASH FLOW STATEMENT Year Year
for the year ended 31 December 2011 ended ended
31 December 31 December
2011 2010
Euros 000 Euros 000
Cash flow from operating activities
Net cash from operations (44) 157
Interest paid (31) (22)
Income tax paid (12) (6)
Net cash from operating activities (87) 129
------------- -------------
Purchase of property, plant and equipment (174) (9)
Proceeds on disposal of property, plant
and equipment - 100
Net cash used in investing activities (174) 91
------------- -------------
Proceeds of new share issue 700 -
Share capital restructuring 47 -
Other financing cash flows (net) 63 (54)
Net cash used in financing activities 810 (54)
------------- -------------
Net increase in cash and cash equivalents 549 166
Cash and cash equivalents at start of
period 266 306
Effect of foreign exchange rate changes (129) (206)
Cash and cash equivalents at end of
period 686 266
============= =============
Reconciliation of loss for the period Year Year
to net cash from operating activities ended ended
31 December 31 December
2011 2010
Euros 000 Euros 000
Loss before interest and tax (209) (2,790)
Additions to intangible assets (761) (773)
Goodwill impairment charge - 2,918
Amortisation of intangible assets 410 318
Depreciation of property, plant and
equipment 105 116
Loss on disposal of property, plant
and equipment - 7
Decrease in inventories 226 11
Decrease/(increase) in trade and other
receivables 1,565 (870)
(Decrease)/increase in trade and other
payables (1,268) 1,156
(Decrease)/increase in borrowings (112) 64
Net cash from operating activities (44) 157
============= =============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Called Share Capital
up Share Capital option reduction
share premium redemption valuation Retained Special
capital account reserve reserve earnings Reserve Total
Euros Euros Euros Euros Euros Euros Euros
000 000 000 000 000 000 000
Group
At 1 January
2010 11,230 41,542 203 111 (44,129) - 8,957
Exchange losses - - - - (206) - (206)
Profit for the
year - - - - (2,681) - (2,681)
Total
comprehensive
income - - - - (2,887) - (2,887)
--------- ---------------- ------------------ ------------------- ------------------ -------------------- -------------
At 31 December
2010 11,230 41,542 203 111 (47,016) 6,070
Exchange losses - - - - (129) - (129)
Profit for the
year - - - - 104 - 104
--------- ---------------- ------------------ ------------------- ------------------ -------------------- -------------
Total
comprehensive
income - - - - (25) - (25)
--------- ---------------- ------------------ ------------------- ------------------ -------------------- -------------
Proceeds of
share
issue 700 - - - - - 700
Share capital
reduction
and
reorganisation (10,960) (41,542) (203) - 52,598 154 47
At 31 December
2011 970 - - 111 5,557 154 6,792
========= ================ ================== =================== ================== ==================== =============
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2011
1. Basis of Preparation
The financial information set out above does not constitute the
Group's statutory financial statements for the periods ending 31
December 2011 or 31 December 2010, but is derived from those
financial statements. This announcement has been prepared on the
basis of the accounting policies set out in the Group's Annual
Report and Accounts for the year ended 31 December 2011, which are
prepared in accordance with International Financial Reporting
Standards as adopted for use in the European Union.
Statutory financial statements for 2010 have been delivered to
the UK Registrar of Companies and those for 2011 will be delivered
to the Austrian authorities following the Group's Annual General
Meeting. The auditors' reports on both the 2011 and 2010 accounts
were unqualified, did not draw attention to any matters by way of
emphasis and did not contain statements under s498(2) or (3) of
Companies Act 2006 or equivalent Austrian legislation.
2. Segment Information
All of the Group's revenue in the financial period derives from
sales of video, audio and data communications equipment.
Business segments
The Group considers that all of its activities comprise one
business segment, the design, development and manufacture of video,
audio and data communications equipment. Information reported to
the Chief Executive Officer for the purposes of resource allocation
and assessment of performance is focussed on this business
segment.
Geographical analysis
by origin Revenue Loss before tax Net assets
-------------------------- -------------------------- ----------------------
Year Year Year Year
ended ended ended ended
31 31 At 31 At 31
31 December December 31 December December December December
2011 2010 2011 2010 2011 2010
Euros Euros Euros Euros Euros
Euros 000 000 000 000 000 000
Europe 5,978 5,699 (7) (2,633) 6,524 5,818
North America 10 35 (233) (179) 168 252
Rest of World - - - - - -
5,988 5,734 (240) (2,812) 6,692 6,070
============= =========== ============= =========== ========== ==========
Geographical analysis of revenue
by destination Year Year
ended ended
31
31 December December
2011 2010
Euros Euros
000 000
Europe 5,932 5,551
North America 15 42
Rest of World 41 141
5,988 5,734
============= ===========
3. Earnings per share
The calculation of basic earnings/(loss) per share is based on
the profit/(loss) after taxation for the period and the weighted
average number of shares in issue during the period.
None of the share options give rise to a dilution in the
earnings per share due to the current level of the Company's share
price. As a result, the basic and diluted earnings per share are
the same.
The profit/(loss) for the period and the weighted average number
of shares used in the calculations are set out below:
Year Year
ended ended
31 December 31 December
2011 2010
Euros 000 Euros 000
Profit/(loss) attributable to ordinary
shareholders 104 (2,681)
No. No.
Weighted average number of shares 969,640 969,640
Earnings/(loss) per share EUR 0.11 -EUR 2.77
For comparison purposes, the number of shares and earnings per
share figures for 2010 have been adjusted to reflect the share
capital reorganisation in 2011.
4. Availability of Report & Accounts
Copies of the Annual Report & Accounts will be sent to all
shareholders shortly and will be available from the Group's website
at www.scottygroup.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR PGUACQUPPPUQ
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