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Interim Results

RNS Number : 1312I
Eleco PLC
05 March 2010

 

 

 

5 March 2010

 

(“Eleco” or the “Group”)

The Building Systems and Software Group

 

Interim Results for the Six Months Ended 31 December 2009

 

Financial performance 

·     Turnover amounted to £32.5m (H1 2008: £37.2m)

·     Adjusted group operating loss of £0.7m (H1 2008: profit £0.7m)

·     Loss before tax of £2.2m (H1 2008: profit £270,000)

·     Loss per share of 3.5p (H1 2008: EPS 0.3p)

·     Net bank debt at 31 December 2009 of £2.1m (H1 2008: net cash of £1.0m)

 

Operational performance

·    Deterioration in operating performance was principally caused by a substantial decline in our German connector plate business and by lower sales and margins in Building Systems

·     Losses partly offset by cost reduction programmes implemented throughout the Group

·     Board changes;

Management strengthened with the appointment of Craig Slater as Chief Operating Officer in  December 2009

David Dannhauser gave notice of his resignation as Finance Director in February and will remain while the Board recruits a replacement

 

Building Systems

·     Turnover amounted to £26.2m (H1 2008: £31.0m)

·     Adjusted operating loss of £1.0m (H1 2008: profit £0.6m)

·    Trading adversely affected by the depressed economic climate as well as the severe weather conditions experienced at the end of 2009

 

Software

·     Turnover amounted to £6.4m (H1 2008: £6.3m)

·     Adjusted operating profit of £0.3 (H1 2008: £0.1m)

·     A reduction in losses in visualisation software

·    Strong performances from Asta Development in the UK and Germany and from the Consultec Group in Sweden

 

Commenting on outlook John Ketteley, Executive Chairman of Eleco, said:

 

“As set out in this statement a number of initiatives are being taken to restore the Group to a profitable and cash generative position from which to grow in its chosen markets.

 

The Board is confident that the measures it is taking to maintain the Group’s sound financial position together with its continuing investment in people and products to create and maintain a clear competitive edge in the markets in which it operates will, over time, enable Eleco to recover to its full potential.”

 

 

 

For further information please contact:

 

Eleco plc

Tel: 01920 443830

John Ketteley, Executive Chairman

eleco.com

Craig Slater, Chief Operating Officer

 

 

 

Collins Stewart Europe Limited

020 7523 8350

Bruce Garrow

 

 

 

Buchanan Communications 

020 7466 5000

Tim Anderson / James Strong / Christian Goodbody

 

 

 

 

Chairman’s Statement

Group Performance

Group sales for the half year ended 31 December 2009 were £32.5m (2008: £37.2m), 12.5% less than in the same period last year. The trading statement released in January stated that Group sales had been particularly weak in the first half. This was due to lower sales in Building Systems which had been adversely affected by the depressed economic climate and also by the severe weather conditions experienced in November and December. In contrast Software sales held up well and were marginally ahead of the same period last year despite difficult trading conditions.

 

Adjusted operating loss before amortisation, restructuring charges and costs of an IPR dispute in Germany amounted to £(0.7)m, and compared with an adjusted operating profit of £0.7m for the same period last year.

 

This deterioration in our Group operating performance was principally caused by a substantial decline in our German connector plate business and by lower sales and margins achieved by the Building Systems businesses. Nevertheless, the deterioration was partly offset by cost reduction programmes. By contrast, actions taken by our Software management to reduce costs and maintain margins in our Software businesses,  resulted in reduced losses in some of our Software businesses and a significant improvement in  profitability overall.

 

The pre tax loss of £(2.2)m is arrived at after amortisation of £0.3m (2008: £0.3m) , restructuring charges of £0.4m (2008: 0.2m) and legal and related costs in connection with the legal dispute and referral to the Public Prosecutor in Germany of £0.6m (2008: Nil)

 

Net bank debt at 31 December 2009 was £(2.1)m (2008: £1.0m net cash). The first half of the financial year was characterised by continued tight control of costs, working capital and debt across the Group and these efforts are continuing.

 

The Board has decided not to pay an interim dividend.

 

Divisional Performance Summary

 

Building Systems

 

Sales in the first half of £26.2m compared to £31.0m achieved in the same period last year.

 

Adjusted Group operating loss before intangible asset amortisation, restructuring changes and costs of a legal dispute in the first half of the year was £(1.0)m compared to a profit of £0.6m in the same period last year.

 

The weaker performance reflected the following factors:

 

–     The delayed start to a number of projects caused by the scarcity of available project funding

–     Site production delays arising from the severe weather conditions through parts of November and December

–     Overall adverse trading conditions in the markets in which we operate

–     The loss of most of the German connector plate business during the period.

 

Software

 

Sales in the first half at £6.4m were marginally ahead of the same period last year. Adjusted operating profit before intangible asset amortisation and restructuring charges for the first half of 2009 was £0.3m compared to £0.1m in the prior year. The profit improvement was derived from:-

 

–     A reduction in losses in visualisation software

–     Strong performances from Asta Development in the UK and Germany and the Consultec Group in Sweden

 

Financial and operational initiatives

 

Cost reduction initiatives have been implemented over the past eighteen months, which regrettably have included significant redundancies across the Group. We will however need to continue to bear down on our cost base to mitigate the impact of volume reductions arising from the severe trading conditions.

 

Accordingly, further changes are in progress and planned with the objective of restoring positive cashflow and profitability and maintaining a strong position in selected markets. In summary, operational initiatives include:-

 

–     A program to substantially reduce the current central Group costs by the end of the financial year

–     Continued tight financial control across the Group, with an emphasis on the reduction of discretionary costs and conservation of cash

–     Direct Group operational involvement in poor performing subsidiaries

 

Following the completion of a current Group operational review a well defined trading strategy will be adopted based on:-

 

–     The provision of sustainable, value engineered  products and service

–     Reduced scope of activities focussing on a smaller core set of operations

–     Increased and improved marketing and sales efforts in those core operations

 

Board changes

 

Management has been strengthened with the appointment on 8 December 2009 of Craig Slater, as Chief Operating Officer. He is experienced in the management and growth of multi-site operations in the construction industry.

 

In February 2010, David Dannhauser gave the requisite twelve months notice of his resignation as Finance Director. The Board has commenced the process of recruiting a replacement as soon as practicable. An announcement will be made in due course when a new Finance Director is appointed. Paul Taylor left the Board in October 2009.

 

Operating Review

 

Building Systems

 

Half Year 09/10

£000s

Half Year 08/09

£000s

Full Year 08/09

£000s

External revenue

26,152

30,969

57,369

Adjusted operating (loss)/profit

(982)

565

862

Operating (loss)/profit

(1,996)

278

(689)

 

Building Systems comprises Precast Concrete and Other Building Systems. Overall sales declined by 15% in the period. A major factor in this decline was the loss of most of our German connector plate business.

 

Precast Concrete

 

Bell & Webster Concrete targets new build hotel, student accommodation and custodial projects. Some clients in these sectors continue to experience difficulty and delays in funding their projects. Bell and Webster Concrete successfully entered the custodial market with two major projects secured for manufacture in 2010. While revenues were marginally higher compared to the same period last year, the effect of competitive pricing decreased gross margins. Milbury Systems targets the agricultural, waste recycling and construction markets and its strategy of removing low margin products from its range to concentrate on core markets is being implemented. While Milbury Systems revenues were lower than in the same period last year gross margin was higher, resulting in an increased net profit.

 

Other Building Systems

 

The two main drivers of Other Building Systems are SpeedDeck Building Systems and the timber engineering businesses. The legal dispute and related disruption to the connector plate business in Germany has resulted in a major decline in overall sales and profit. Despite encouraging signs in the UK housing markets there remains a significant decline in performance compared to the same point last year. SpeedDeck Building Systems revenues have declined by 41% due to a mixture of the 36% decline in the industrial market, 26% decline in commercial markets and fierce competition eroding prices in the available sales opportunities.

 

While general funding issues have continued to affect the ability of some clients to start projects the biggest factor driving overall performance of Building Systems has been a move to price rather than value based procurement. However we are seeing signs in the market that unsustainable pricing is coming to an end with a mixture of leaner business practices and recognition that difficult market conditions will remain for some time to come. We would welcome a return to value based pricing and recognition of greater site efficiency. These principles of speed of construction, material efficiency and sustainable construction are the hallmarks of Eleco Building Systems offerings.

 

Software

 

Half Year 09/10

£000s

Half Year 08/09

£000s

Full Year 08/09

£000s

External revenue

6,347

6,191

13,186

Adjusted operating (loss)/profit

263

130

343

Operating profit/(loss)

95

(53)

(461)

 

Our construction software businesses Consultec and Asta Development delivered profits consistent with the same period in the prior year, both benefitting from stable recurring maintenance revenues. In particular, Consultec Byggprogram delivered an improved performance from the sale of its estimation software and services while Asta Development maintained a steady level of new sales of its project management software in the UK and Germany.

 

Losses suffered in our visualisation businesses have been significantly reduced, mainly through the reduction of overheads at Eleco Software in the UK, along with modest improvements in sales and gross margin in this business and Eleco Software GmbH and ESIGN, our two visualisation businesses in Germany. Software development activities have been restructured to reduce costs and improve performance and there is closer on-going monitoring of development activity

 

Software was reorganised last year under a single management team and is well placed to grow through the acquisition or development of complementary products and services.

 

Outlook

 

As set out in this statement a number of initiatives are being taken to restore the Group to a profitable and cash generative position from which to grow in its chosen markets.

 

The Board is confident that the measures it is taking to maintain the Group’s sound financial position together with its continuing investment in people and products to create and maintain a clear competitive edge in the markets in which it operates will, over time, enable Eleco to recover to its full potential.

 

 

John Ketteley

Executive Chairman

 

 

 

Condensed Consolidated Income Statement

 

 

6 months to 31 December

 

Year to
30 June

 

2009

 

2008

 

2009

 

 

(unaudited)

 

(unaudited)

 

 

 

Notes

£’000

 

£’000

 

£’000

Revenue

2

32,499

 

37,160

 

70,555

Cost of sales

 

(20,316)

 

(23,279)

 

(40,601)

Gross profit

 

12,183

 

13,881

 

29,954

Distribution costs

 

(2,416)

 

(1,963)

 

(3,503)

Administrative expenses

 

(11,668)

 

(11,693)

 

(26,332)

Trading (loss)/profit

2,3

(1,901)

 

225

 

119

 

 

 

 

 

 

 

Impairment charges

3

 

 

(1,269)

(Loss)/profit from operations

 

(1,901)

 

225

 

(1,150)

 

 

 

 

 

 

 

Finance income

4

29

 

143

 

216

Finance cost

4

(350)

 

(98)

 

(496)

(Loss)/profit before tax

 

(2,222)

 

270

 

(1,430)

Tax

 

118

 

(73)

 

(39)

(Loss)/profit for the period

 

(2,104)

 

197

 

(1,469)

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

Equity holders of the parent

 

(2,104)

 

197

 

(1,469)

 

 

 

 

 

 

 

Total and continuing earnings per share (EPS)

 

 

 

 

 

 

– basic

5

(3.5)p

 

0.3p

 

(2.5)p

– diluted

5

(3.5)p

 

0.3p

 

(2.5)p

 

 

Condensed Consolidated Statement of Comprehensive Income

 

 

6 months to 31 December

 

Year to
30 June

 

2009

 

2008

 

2009

 

(unaudited)

 

(unaudited)

 

 

 

£’000

 

£’000

 

£’000

(Loss)/profit for the period

(2,104)

 

197

 

(1,469)

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

Actuarial gain/(loss) on retirement benefit obligation

1,936

 

 

(1,705)

Deferred tax on retirement benefit obligation

(542)

 

 

458

Translation differences on foreign currency net investments

(40)

 

485

 

362

Other comprehensive income net of tax

1,354

 

485

 

(885)

 

 

 

 

 

 

Total comprehensive income for the period

(750)

 

682

 

(2,354)

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

Equity holders of the parent

(750)

 

682

 

(2,354)

 

 

Condensed Consolidated Balance Sheet

 

 

31 December

 

30 June

 

2009

 

2008

 

2009

 

(unaudited)

 

(unaudited)

 

 

 

Notes

£’000

 

£’000

 

£’000

Non-current assets

 

 

 

 

 

 

Goodwill

 

13,470

 

14,183

 

13,473

Other intangible assets

 

3,319

 

3,560

 

3,485

Property, plant and equipment

 

12,123

 

12,889

 

12,552

Deferred tax assets

 

2,135

 

2,142

 

2,687

Total non-current assets

 

31,047

 

32,774

 

32,197

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Inventories

 

3,692

 

4,724

 

3,687

Trade and other receivables

 

15,086

 

13,748

 

12,985

Current tax assets

 

234

 

 

242

Cash and cash equivalents

 

2,398

 

5,867

 

6,091

Total current assets

 

21,410

 

24,339

 

23,005

Total assets

 

52,457

 

57,113

 

55,202

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Obligations under finance leases

 

(356)

 

(364)

 

(365)

Trade and other payables

 

(11,445)

 

(10,362)

 

(11,424)

Current tax liabilities

 

(313)

 

(605)

 

(347)

Accruals and deferred income

 

(6,644)

 

(6,808)

 

(6,158)

Total current liabilities

 

(18,758)

 

(18,139)

 

(18,294)

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

Borrowings

 

(4,500)

 

(4,900)

 

(4,500)

Obligations under finance leases

 

(231)

 

(485)

 

(318)

Deferred tax liabilities

 

(585)

 

(1,113)

 

(804)

Other non-current liabilities

 

(101)

 

 

(121)

Retirement benefit obligation

 

(7,624)

 

(7,646)

 

(9,599)

Total non-current liabilities

 

(13,041)

 

(14,144)

 

(15,342)

Total liabilities

 

(31,799)

 

(32,283)

 

(33,636)

Net assets

 

20,658

 

24,830

 

21,566

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

Share capital

 

6,066

 

5,995

 

6,066

Share premium account

 

6,396

 

6,224

 

6,396

Merger reserve

 

7,371

 

7,371

 

7,371

Translation reserve

 

111

 

274

 

151

Other reserve

 

(383)

 

(321)

 

(383)

Retained earnings

 

1,097

 

5,287

 

1,965

Equity attributable to shareholders of the parent

6

20,658

 

24,830

 

21,566

 

 

Condensed Consolidated Statement of Cash Flows

 

 

 

6 months to 31 December

 

Year to
30 June

 

 

2009

 

2008

 

2009

 

 

(unaudited)

 

(unaudited)

 

 

 

Notes

£’000

 

£’000

 

£’000

Cash flows from operating activities

 

 

 

 

 

 

(Loss)/profit before interest and tax

 

(1,901)

 

225

 

(1,150)

Depreciation charge

 

947

 

979

 

1,869

Amortisation and impairment charges

 

269

 

287

 

1,981

Profit on sale of property, plant and equipment

 

(18)

 

(6)

 

(6)

Share-based payment charge

 

81

 

112

 

185

Retirement benefit obligation

 

(331)

 

(204)

 

(403)

Cash generated from operations before working capital movements

(953)

 

1,393

 

2,476

(Increase)/decrease in trade and other receivables

 

(1,760)

 

3,098

 

4,023

Decrease/(increase) in inventories and work in progress

50

 

(81)

 

993

Decrease in trade and other payables

 

(16)

 

(6,641)

 

(5,963)

Cash (used in)/generated from operations

 

(2,679)

 

(2,231)

 

1,529

Interest paid

 

(59)

 

(105)

 

(177)

Interest received

 

39

 

145

 

186

Income tax paid

 

(146)

 

(1,147)

 

(1,949)

Net cash outflow from operating activities

 

(2,845)

 

(3,338)

 

(411)

 

 

 

 

 

 

 

Net cash used in investing activities

 

 

 

 

 

 

Purchase of intangible assets

 

(51)

 

(31)

 

(626)

Purchase of property, plant and equipment

 

(508)

 

(1,559)

 

(2,315)

Acquisition of subsidiary undertakings net of cash acquired

 

(46)

 

 

(205)

Proceeds from sale of property, plant, equipment  and intangible assets

 

79

 

34

 

71

Net cash outflow from investing activities

 

(526)

 

(1,556)

 

(3,075)

 

 

 

 

 

 

 

Net cash used in financing activities

 

 

 

 

 

 

Proceeds from new bank loan

 

1,000

 

6,600

 

11,100

Repayment of bank loans

 

(1,000)

 

(1,700)

 

(6,600)

Repayments of obligations under finance leases

 

(191)

 

(213)

 

(397)

Equity dividends paid

 

(239)

 

(1,184)

 

(1,423)

Own shares purchased by ESOT

 

 

 

(62)

Net cash (outflow)/inflow from financing activities

 

(430)

 

3,503

 

2,618

 

 

 

 

 

 

 

Net Decrease in cash and cash equivalents

 

(3,801)

 

(1,391)

 

(868)

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

6,091

 

6,808

 

6,808

Effects of changes in foreign exchange rates

 

108

 

450

 

151

Cash and cash equivalents at end of period

2,398

 

5,867

 

6,091

 

 

 

 

 

 

 

 

 

 

 

 

Notes to the Condensed Consolidated Interim Financial Statements

 

1.         Basis of preparation

 

The condensed consolidated interim financial statements for the six months to 31 December 2009 have been prepared in accordance with the accounting policies which will be applied in the year end financial statements to 30 June 2010. These accounting policies are drawn up in accordance with International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board and as adopted for use in the European Union that are effective at 31 December 2009.

 

The condensed consolidated interim financial statements are unaudited and have not been subject to review. They do not include all the information and disclosures required in the annual financial statements, and therefore should be read in conjunction with the Group’s annual financial statements as at 30 June 2009.

 

The financial information for the year ended 30 June 2009 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The Group’s consolidated financial statements for the year ended 30 June 2009 have been filed and the audit report was not qualified and did not contain a statement under section 498(2) or section 498(3) of the Companies Act 2006.

 

Changes in accounting policy

In the current financial year, the Group has adopted International Financial Reporting Standard 8 “Operating Segments” and International Accounting Standard 1 “Presentation of Financial Statements” (revised)

 

IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker to allocate resources to the segments and to assess their performance. This standard replaces IAS 14 “segment reporting” that required the Group to identify two sets of segments (business and geographical), using a risks and rewards approach, with the Group’s internal management reporting to key management personnel serving only as a guide to the identification of such segments. Following the adoption of IFRS 8, there is no change in the disclosure of the reportable segments as these meet the criteria set out in IFRS 8 above.

 

IAS 1 (revised) requires the presentation of a statement of changes in equity as a primary statement, separate from the income statement and statement of comprehensive income. As a result, a consolidated statement of changes in equity has been included in the notes, showing changes in each component of equity for each period presented.

 

The valuation of the Group’s pension scheme assets has been updated in line with the requirements of IAS 19 to reflect current market values of investments and actual investment returns. The actuarial assumptions used to calculate the liabilities have not been amended. The scheme is closed to new members and to further accruals from existing members.

 

Other amendments and interpretations are also effective for the first time in the current period but have had no impact on the results or financial position of the Group.

 

Estimates

Application of the Group’s accounting policies in preparing condensed consolidated interim financial statements requires management to make judgements and estimates that affect the reported amount of assets and liabilities, revenues and expenses.  Actual results may ultimately differ from these estimates.

 

In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 30 June 2009.

 

Risks and uncertainties

A summary of the Group’s principal risks and uncertainties was provided on page 11 of the 2009 annual report and accounts. The Board considers these risks and uncertainties are still relevant to the current financial year and the impact of changes in the UK economy is reviewed in the Chairman’s statement contained in this report.

2.         Segmental information

6 months to 31 December 2009 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Building Systems

 

 

 

 

 

Precast

Other

Software

Elimination

Group

 

 

£’000

£’000

£’000

£’000

£’000

 

 

 

 

 

 

 

Revenue

 

17,399

8,753

6,347

 

32,499

Inter-segment revenue

 

3

101

(104)

Total segment revenue

 

17,399

8,756

6,448

(104)

32,499

 

 

 

 

 

 

 

Adjusted operating profit/(loss)

 

(185)

(797)

263

 

(719)

Amortisation of intangible assets

 

(93)

(8)

(168)

 

(269)

Restructuring costs

 

(66)

(293)

 

(359)

Intellectual property dispute

 

(554)

 

(554)

Segment result

 

(344)

(1,652)

95

 

(1,901)

Unallocated results

 

 

 

 

 

(203)

Loss after tax

 

 

 

 

 

(2,104)

 

6 months to 31 December 2008 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Building Systems

 

 

 

 

 

Precast

Other

Software

Elimination

Group

 

 

£’000

£’000

£’000

£’000

£’000

 

 

 

 

 

 

 

Revenue

 

17,210

13,759

6,191

 

37,160

Inter-segment revenue

 

92

(92)

Total segment revenue

 

17,210

13,759

6,283

(92)

37,160

 

 

 

 

 

 

 

Adjusted operating profit

 

271

294

130

 

695

Amortisation of intangible assets

 

(93)

(16)

(178)

 

(287)

Restructuring costs

 

(159)

(19)

(5)

 

(183)

Segment result

 

19

259

(53)

 

225

Unallocated results

 

 

 

 

 

(28)

Profit after tax

 

 

 

 

 

197

 

12 months to 30 June 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Building Systems

 

 

 

 

 

Precast

Other

Software

Elimination

Group

 

 

£’000

£’000

£’000

£’000

£’000

 

 

 

 

 

 

 

Revenue

 

31,769

25,600

13,186

 

70,555

Inter-segment revenue

 

209

(209)

Total segment revenue

 

31,769

25,600

13,395

(209)

70,555

 

 

 

 

 

 

 

Adjusted operating profit

 

843

19

343

 

1,205

Amortisation of intangible assets

 

(185)

(36)

(491)

 

(712)

Impairment charges

 

(1,000)

(269)

 

(1,269)

Restructuring costs

 

(257)

(73)

(44)

 

(374)

Segment result

 

(599)

(90)

(461)

 

(1,150)

Unallocated results

 

 

 

 

 

(319)

Loss after tax

 

 

 

 

 

(1,469)

 

 

3.         Exceptional items

 

Exceptional items represent costs considered necessary to be separately disclosed by virtue of their size or nature.

 

 

 

6 months to 31 December

 

Year to
30 June

 

 

2009

 

2008

 

2009

 

 

(unaudited)

 

(unaudited)

 

 

 

 

£’000

 

£’000

 

£’000

 

 

 

 

 

 

 

Impairment of intangible assets

 

 

 

1,269

Restructuring costs

 

359

 

183

 

374

Intellectual property dispute

 

554

 

 

 

 

913

 

183

 

1,643

 

In the trading statement that we released on 26 January 2010, we referred to significant legal costs incurred in relation to an ongoing dispute involving our German connector plate business. These costs relate primarily to a legal dispute concerning the ownership and rights of software used in our German business as well as to the matters referred to below.

Certain matters came to light in the period under review, regarding certain actions allegedly taken by the management of a competitor in collaboration with some of own German employees. These alleged actions, which came to our attention as a result of an extensive internal forensic investigation into our systems, have been seriously detrimental to our business in the period under review. Those employees and members of the management of our own business who are alleged to be involved have since left our company and have now joined this competitor.

Having regard to the material adverse effect on our business of the alleged actions of those allegedly concerned, we were strongly advised to refer this matter to the Public Prosecutor in Germany for preliminary investigation under German Criminal Competition Law and we duly did so. We understand that the Public Prosecutor has since instigated premises searches at the offices of our competitor as well as a house search at the home of at least one of our former employees and that the investigation continues. However, we are not in a position to make any further comment on the current status of that investigation at this stage.

In addition to referring these alleged matters to the Criminal Prosecutor in Germany, we have also instructed our German attorneys to claim damages from the competitor as well as the individuals allegedly responsible for the alleged infringements and we will continue these actions.

4.         Net finance (cost)/income

 

 

6 months to 31 December

 

Year to

30 June

 

2009

 

2008

 

2009

 

(unaudited)

 

(unaudited)

 

 

 

£’000

 

£’000

 

£’000

Finance income

 

 

 

 

 

Bank and other interest receivable

29

 

101

 

216

Net return on pension scheme assets and liabilities

 

42

 

Finance costs

 

 

 

 

 

Bank overdraft and loan interest

(37)

 

(68)

 

(117)

Finance leases and hire purchase contracts

(20)

 

(30)

 

(53)

Net return on pension scheme assets and liabilities

(293)

 

 

(326)

Total net finance (cost)/income

(321)

 

45

 

(280)

 

5.         Loss per share

 

The calculations of the loss per share are based on the total loss after tax attributable to ordinary equity shareholders of the Company and the weighted average number of shares in issue for the reporting period.

 

 

6 months to 31 December

 

Year to

30 June

 

2009

 

2008

 

2009

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

(Loss)/profit after taxation

£(2,104,000)

 

£197,000

 

£(1,469,000)

 

 

 

 

 

 

Weighted average number of shares in issue in the period

59,701,646

 

59,209,119

 

59,351,220

Dilutive effect of share options

 

705,000

 

Number of shares for diluted earnings per share

59,701,646

 

59,914,119

 

59,351,220

 

 

 

 

 

 

Basic (loss)/earnings per share

(3.5)

p

0.3

p

(2.5)

Diluted (loss)/earnings per share

(3.5)

p

0.3

p

(2.5)

 

6.         Statement of changes in equity

 

 

Share capital

Share premium

Merger reserve

Translation reserve

Other reserve

Retained earnings

Total

 

£’000

£’000

£’000

£’000

£’000

£’000

£’000

At 1 July 2009

6,066

6,396

7,371

151

(383)

1,965

21,566

 

 

 

 

 

 

 

 

Dividends

(239)

(239)

Transactions with owners

(239)

(239)

 

 

 

 

 

 

 

 

(Loss) for the period

(2,104)

(2,104)

Other comprehensive income:

 

 

 

 

 

 

 

Actuarial gain on defined benefit pension scheme net of tax

1,394

1,394

Exchange differences on translation of net investments in foreign operations

(40)

(40)

Share based payments

81

81

Total comprehensive income for the period

(40)

(629)

(669)

 

 

 

 

 

 

 

 

At 31 December 2009 (unaudited)

6,066

6,396

7,371

111

(383)

1,097

20,658

 

 

 

 

 

 

 

 

At 1 July 2008

5,995

6,224

7,371

(211)

(321)

6,162

25,220

 

 

 

 

 

 

 

 

Dividends

(1,184)

(1,184)

Transactions with owners

(1,184)

(1,184)

 

 

 

 

 

 

 

 

Profit for the period

197

197

Other comprehensive income:

 

 

 

 

 

 

 

Exchange differences on translation of net investments in foreign operations

485

485

Share based payments

112

112

Total comprehensive income for the period

485

309

794

 

 

 

 

 

 

 

 

At 31 December 2008 (unaudited)

5,995

6,224

7,371

274

(321)

5,287

24,830

 

 

 

 

 

 

 

 

At 1 July 2008

5,995

6,224

7,371

(211)

(321)

6,162

25,220

 

 

 

 

 

 

 

 

Dividends

(1,423)

(1,423)

Issue of shares

71

172

(243)

Transactions with owners

71

172

(1,666)

(1,423)

 

 

 

 

 

 

 

 

(Loss) for the period

(1,469)

(1,469)

Other comprehensive income:

 

 

 

 

 

 

 

Actuarial loss on defined benefit pension scheme net of tax

(1,247)

(1,247)

Exchange differences on translation of net investments in foreign operations

362

362

Share based payments

185

185

Other

(62)

(62)

Total comprehensive income for the period

362

(62)

(2,531)

(2,231)

 

 

 

 

 

 

 

 

At 30 June 2009

6,066

6,396

7,371

151

(383)

1,965

21,566

 

7.         Related Party Disclosures

 

There has been no material change in the nature of the related party transactions described in the 2009 annual report and accounts. Related party information is disclosed therein in note 29 and in the Directors’ Report on page 12.

This information is provided by RNS
The company news service from the London Stock Exchange

END

IR LFFILVIISIII

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