Preliminary Results
Jetcam International Holdings Ld
31 May 2002
31 May 2002
JETCAM International Holdings Limited
('JETCAM' or 'the Company')
Preliminary results for the year ended 31 December 2001
Chairman's Statement
On behalf of your Board of Directors I am pleased to report the results for the
year ended 31 December 2001. This has been a difficult year in most market
sectors and I will refer to that later. Turnover has reduced by some 15 per
cent. from last year to £3,516,363 (2000: £4,210,765). The reported loss before
tax was £231,816 (2000: profit of £171,525). This loss is struck after goodwill
write-offs of £457,000 compared, in 2000, to goodwill write-offs of £270,463 and
the inclusion of an exceptional gain of £52,723. Ignoring the distortions
introduced by goodwill write-offs and exceptional items, the actual income from
operations was £225,184 compared to £389,265 in 2000. The after tax loss for the
year was £312,140 (2000: profit of £106,044) and the loss per share was 1.32p
(2000: earnings per share of 0.5p).
The significant and non-recurring increase in the goodwill write-off results
from the decision to cease trading in Libra Technologies, which was acquired to
develop the international dealer network, a function now being carried out by
Company staff internally, and ceasing the operations of Century Challenge
Limited in the UK, following the agreement with Radan described below.
In my half-year statement I reported the uncertain trading conditions present in
most world markets. These of course were then exacerbated by the tragic events
of September 11 and the second six months of the year produced a significant
drop in turnover resulting in a loss for that period of £160,000 before the
exceptional goodwill write-offs mentioned above. This result was partially
ameliorated by the internal cost review and organisational changes carried out
earlier in the year. In spite of this result the Company's cash position remains
strong and your Directors continue to keep a tight control of costs and to
manage cash resources in the longer-term interest of shareholders.
Trading in the current year is still difficult to predict. The first four months
of 2002 have shown mixed results and general sentiment in the machine tool
industry suggests little improvement can be expected until later in the year.
However, we take encouragement from the fact that we have appointed Delcam, a
well known international CADCAM software provider as a major new reseller of
Camtek products. JETCAM also now has a dealer in France, a large and important
market where the Company was not previously represented and further geographic
expansion continues to be a major focus. At the same time the five axis laser,
PentaCut, and tube cutting, TubeCut, products released earlier in the year, are
beginning to attract increasing attention from OEMs and end-users. Significant
enhancements to JETCAM Expert's laser support functionality are about to be
released and, in general, steady improvements will continue to be made to all
the group's existing products.
On 22 March 2002 we announced an agreement for collaboration in the UK and
elsewhere with Radan Computational Limited ('Radan'). Radan, a UK company, has
for many years been a leading software developer and provider of CADCAM
solutions for the sheet metal industry. As a result of this collaboration Radan
has from 1 April 2002 taken over full responsibility for selling and supporting
JETCAM products in the UK alongside its existing product range. Your Board
believes this arrangement will enhance the prospects for a profitable future in
the UK market, although, due to transitional costs, the full benefits will only
be achieved in the next financial year. It will also result in a reduction in
overall sales, because only the transfer price to Radan and not the full end
user sales amount will be recorded.
Your Board is acutely aware of the need to advance your Company's opportunities
for growth and diversification thereby improving shareholder worth. We continue
to focus our attention on achieving these ends, on exploring new avenues and
partnerships for realising them and on ensuring that our organisation is
structured to respond efficiently and profitably to all opportunities.
In the light of the current continuing uncertainties, your Board is not
recommending the payment of a dividend. This will be reviewed for the current
year in the light of trading over future months.
I would like to take this opportunity to thank all our staff throughout the
Group for their unstinting support and hard work during a very difficult year. I
would also like to thank my co-directors and our advisers for their continuing
help and advice.
George Kynoch
Chairman
May 2002
Consolidated Profit and Loss Account
for the year ended 31 December 2001
2001 2000
Note
Group Continuing Acqui- Group
operations sitions
£ £ £ £
Turnover 3,516,363 4,210,745 - 4,210,745
Cost of sales (210,044) (220,894) - (220,894)
-------- -------- -------- --------
Gross profit 3,306,319 3,989,851 - 3,989,851
Other administrative expenses (3,081,135) (3,497,340) (103,246) (3,600,586)
-------- -------- -------- --------
Operating profit before 225,184 492,511 (103,246) 389,265
goodwill amortisation
and exceptionals
Amortisation of goodwill (282,985) (270,463) - (270,463)
Impairment of goodwill (174,015) - -
Exceptional profit - 52,723 - 52,723
-------- -------- -------- --------
(Loss)/Profit on ordinary (231,816) 274,771 (103,246) 171,525
activities before
taxation
Tax on profit on ordinary (80,594) (65,481)
activities
-------- --------
(Loss)/Profit for the (312,410) 106,044
financial year
Dividends paid and proposed 1 - -
-------- --------
Retained (deficit)/profit for (312,410) 106,044
the financial year
======== ========
(Loss)/earnings per ordinary
share 2 (1.32)p 0.5p
Fully diluted (loss)/earnings
per ordinary share 2 (1.32)p 0.5p
Statement of Total Recognised Gains and Losses
Year ended 31 December 2001
2001 2000
£ £
(Loss)/Profit for the financial year (312,410) 106,044
Foreign exchange translation 56,976 52,181
differences
-------- --------
Total Recognised Gains and Losses in (255,434) 158,225
the Year
======== ========
Consolidated Balance Sheet
For the period ended 31 December 2001
2001 2000
Fixed assets £ £
Intangible assets 3,048,756 3,455,756
Tangible assets 441,059 495,523
Investments 827 827
-------- --------
3,490,642 3,952,106
Current assets
Stocks 14,991 21,542
Debtors 1,009,032 1,193,633
Cash at bank and in hand 507,287 249,342
-------- --------
1,531,310 1,464,517
Creditors: amounts falling due (323,945) (517,994)
within one year
-------- --------
Net current assets 1,207,365 946,523
Total assets less current liabilities 4,698,007 4,898,629
Creditors: amounts falling due
after more than one year
Provisions for liabilities and charges (24,073) (44,261)
-------- --------
Net assets 4,673,934 4,854,368
======== ========
Capital and reserves
Called up share capital 149,091 148,208
Share premium account 4,277,045 4,202,928
Profit and loss account 247,798 503,232
-------- --------
Equity shareholders' funds 4,673,934 4,854,368
======== ========
1. Dividends
The Directors are not recommending the payment of a final dividend for the year
ended 31 December 2001 (2000: Nil).
2. Earnings per share
The calculation of earnings per share is based on profit/(loss) after tax
divided by the weighted average number of shares in issue during the financial
period. The diluted earnings per share calculation is based on the profit/
(loss) after tax divided by the weighted average number of shares in issue as
adjusted for the dilution effect of the full exercise of all ordinary share
options granted by the Company. Dilution is calculated by comparing the
difference between the weighted average exercise price of exercisable options
with the average share price over the period, which are as follows:
2001 2000
£ £
Weighted average exercise price of exercisable share options 0.61 0.66
Average share price in period 0.16 0.69
Dilution ratio applied to exercisable share options (%) n/a 5%
Weighted average of exercisable share options 2,331,191 1,546,191
Dilution effect of exercisable share options n/a 77,192
Weighted average number of shares in issue 23,591,230 22,978,852
Total shares for calculating diluted earnings per share 23,591,230 23,056,043
-------- --------
3. Report and Accounts
The financial information for the year ended 31 December 2000 is extracted from
the group's financial statements to that date which received an unqualified
auditor's report and have been filed with the Registrar of Companies in Bermuda.
The financial information for the year ended 31 December 2001 is extracted from
the group's financial statements to that date which will receive an unqualified
auditor's report and be filed with the Registrar of Companies in Bermuda in due
course.
4. Copies of the Report and Accounts will be posted to shareholders shortly and
will be available from John East & Partners Limited, Crystal Gate, 28-30 Worship
Street, London EC2A 2AH.
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