Interim Results
September 22 2003 - 8:37AM
UK Regulatory
RNS Number:0160Q
Ultima Networks PLC
22 September 2003
Ultima Networks PLC("the Group) -Statements of Interim Results
Chairman's Statement
The Group made an operating profit of #94,000 compared with an operating loss
last year of #8,000. The gross margin for the current half-year increased from
68% (H1 2002) to 74%. Net operating expenses reduced by 36% to #531,000 (H1
2002: #828,000) whilst R&D expenditure increased to #136,000 (H1 2002: #80,000).
The Group will continue to invest into its product and services for the future.
The Group continued to focus on areas of the business where profitable growth
can be achieved. Our software division continued to make progress, where
operating profit has increased by more than 17% to #74,000 (H1 2002: #61,000).
Cognito Software, our legal accounting and workflow management software company,
performed well with an increase of 5% in recurring revenues compared to 30th
June 2002.
In contrast, the networking division's results continued to be disappointing and
steps are continuing to be taken to reduce costs and eliminate non-profitable
elements of this business.
The Group has been exploring business opportunities in renewable energy through
a division set up for this purpose. The company received its first significant
contract from Hertfordshire County Council worth over #450,000 for the
installation of solar panels at 15 schools in its district. #112,000 was
invoiced in this period. As this is the first major installation it will only
produce a modest contribution to profits. The company is continuing to promote
solar energy and develop other opportunities in renewable energy applications.
The Cognito Software operations relocated to new premises during the period.
New premises were purchased on 2nd May for #120,000 and the sale of the previous
building, Flair House, completed on 11 August 2003. The sale of Flair House
generated net proceeds of #251,000.
Financial highlights
* Operating profit of #94,000 achieved versus a loss of #8,000 (H1 2002).
* Group Turnover down 28% to #810,000 (H1 2002: #1,119,000)
* Group gross profit margin increased from 68% to 74% (H1 2002).
* Group net operating expenses reduced by 36% from #828,000 to #531,000
(H1 2002).
* Loss before tax reduced by 87% to #15,000 (H1 2002: #112,000)
* Loss per share 0.01p (H1 2002: 0.06p)
* Cash inflow from operating activities is #295,000 compared with a cash
outflow from operating activities of #814,000 (H1 2002)
* The Net Debt reduced from #3,567,000 at 1st January 2003 to #3,410,000 at
30th June 2003
Humayun A Mughal, Chairman
19th September 2003
Consolidated profit and loss account
for the six months ended 30 June 2003 (Unaudited) (Unaudited) (Audited)
First half 2003 First half 2002 Full year 2002
Note #000 #000 #000
Turnover - continuing operations 1 810 1,119 2,026
Cost of sales (212) (362) (672)
Gross profit 598 757 1,354
Net operating expenses (531) (828) (1,381)
Exceptional credit on approval of voluntary arrangement 27 139 158
Exceptional operating (costs)/profit - (76) -
Operating (loss)/profit - continuing operations 94 (8) 131
Exceptional non-operating item - loss on closure of - - 253
business
(Loss)/profit on ordinary activities before taxation and
interest 94 (8) 384
Net interest payable (109) (104) (219)
(Loss)/profit on ordinary activities before taxation (15) (112) 165
Tax on (loss)/profit on ordinary activities - - 36
Unrecovered (loss)/profit for the financial period (15) (112) 201
(Loss)/profit per share and diluted (loss)/profit per (0.01)p (0.06)p 0.10p
share
Consolidated balance sheet
(Unaudited) (Unaudited) (Audited)
30 June 2003 30 June 2002 31 Dec 2002
#000 #000 #000
Fixed assets
Tangible fixed assets 3,233 3,173 3,148
Current assets
Stock 301 233 156
Debtors 490 691 514
Cash at bank and in hand 49 67 99
840 991 769
Creditors - amounts due within one year (1,612) (1,927) (1,402)
Net current liabilities (772) (936) (633)
Total assets less current liabilities 2,461 2,237 2,515
Creditors - amounts due after one year (3,351) (3,553) (3,450)
Net liabilities (890) (1,316) (935)
Capital and reserves
Called up equity share capital 7,434 7,434 7,434
Share premium account 5,520 5,520 5,520
Revaluation reserve 1,102 1,124 1,102
Acquisition reserve 1,334 1,334 1,334
Profit and loss account 2 (16,280) (16,728) (16,325)
Deficit on shareholders' funds - equity (890) (1,316) (935)
Consolidated cash flow statement
(Unaudited) (Unaudited) (Audited)
First half 2003 First half 2002 Full year 2002
#000 #000 #000
Cash (outflow)/inflow from operating activities 295 (814) (521)
Returns on investment and servicing of finance (109) (60) (219)
Taxation - - 1
Capital expenditure and financial investment (129) (1) (1)
Cash (outflow)/inflow before financing 57 (875) (740)
Financing (107) 868 765
(Decrease)/increase in cash in the period (50) (7) 25
Notes
1. Segmental analysis
(Unaudited) (Unaudited) (Audited)
First half 2003 First half 2002 Full year 2002
#000 #000 #000
Turnover
Networking division - continuing operations 110 661 893
Software division - continuing operations 432 458 1,133
Renewable Energy division - continuing operations 148 - -
Other revenue 120 - -
Total 810 1,119 2,026
2. Reserves
At beginning Exchange rate Loss for
#000 of year movements the period
Profit and Loss Account (16,325) 60 (15) (16,280)
3. Dividends
The Board is not recommending the payment of an interim dividend at this time.
4. Other information
These interim results are prepared on the basis of accounting policies that are
consistent with those set out in the Annual Report for the year ended 31
December 2002.
This interim report was neither audited nor reviewed by the auditors.
The comparative figures for the year ended 31 December 2002 have been extracted
from the Group's statutory accounts for the financial year. Those accounts have
been reported on by the Company's auditors and delivered to the Registrar of
Companies. The report of the auditors was unqualified and did not contain a
statement under section 237(2) or (3) of the Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange
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