Final Results
Vislink PLC
24 March 2004
Vislink plc
Preliminary results for the year ended December 31, 2003
'The Group ended the year with net cash and a strong forward order book as a
result of winning the Venezuelan national broadcaster's TV upgrade project in
the fourth quarter. The Group's US broadcast business, MRC, has benefited from
high levels of government spending and the continuing digital broadcast TV
upgrades. However the UK and international markets have remained slow throughout
the year for both the UK broadcast business and Hernis.'
Highlights
• The Group's order intake for the continuing operations increased to
£97.89 million (2002 - £70.29 million)
• The UK broadcast business won a $58.85 million (£32.88 million) turnkey
project to modernise the infrastructure and distribution network of the
Venezuelan national broadcaster
• The Group's closing order book was £45.93 million (2002 - £16.31 million),
which will benefit trading in both 2004 and 2005
• Sales for the year from continuing operations were lower at £67.97 million
(2002 - £72.96 million) and operating profits from continuing operations
before goodwill amortisation and exceptional rationalisation costs declined
to £2.07 million (2002 - £4.18 million)
• Reduced second half demand in the UK broadcast business led to the
announcement in November 2003 that the UK activities were to be consolidated
into one operational site to reduce its cost base. A provision for the
associated rationalisation costs of £3.76 million has been made
• The Group generated cash of £8.94 million (2002 - £4.84 million) including
the net deposit from the Venezuelan contract of £7.45 million, which
has eliminated gearing
• Earnings per share, excluding goodwill amortisation and exceptional
items, were lower at 0.96 pence (2002 - 1.85 pence)
• The Board is recommending that the dividend is maintained at 0.2 pence
per share
Commenting on the results, Bob Morton, Chairman of Vislink plc, said:
'The Group has seen growth in the US broadcast business, continued profitability
at Hernis despite weaker sales and orders, and addressed the weakness of the UK
broadcast business. The Venezuelan contract and the increased order intake in
the US broadcast business have given the Group a strong opening order book for
2004. Given the significant market opportunities for MRC and Hernis, the new
product development programme and good progress on the VTV contract, the Board
expects an improved trading performance for 2004.'
- Ends -
For further information on March 24, 2004, please contact:
Ian Scott-Gall 01488 685500
Chief Executive, Vislink plc
James Trumper 01488 685500
Group Finance Director, Vislink plc
Chairman's Statement
Introduction
The Group ended the year with net cash and a strong forward order book as a
result of winning the Venezuelan national broadcaster's TV upgrade project in
the fourth quarter.
The Group's US broadcast business, MRC, has continued to grow both its orders
and sales, with 2003 proving to be another record year benefiting from high
levels of government spending and the continuing digital broadcast TV upgrades.
However the UK and international markets remained slow throughout the year for
both the UK broadcast business and Hernis.
As a result of the slow down in the UK broadcast business the Group is
consolidating the UK activities into one operational site and reducing its cost
base. This rationalisation of the business was announced in November 2003 and a
provision for the associated costs of £3.76 million has been made. The
reorganisation and rationalisation is in progress and the reduction in the cost
base is expected to result in annualised savings of circa £3 million.
Results for the Year
The Group's order intake for the continuing operations was £97.89 million (2002
- £70.29 million). The increased order intake was due to the UK broadcast
business winning a $58.85 million (£32.88 million) turnkey project to modernise
and upgrade the infrastructure and distribution network of the Venezuelan
national broadcaster, VTV (the 'VTV Contract').
The Group's closing order book was £45.93 million (2002 - £16.31 million), which
will benefit trading in both 2004 and 2005.
Sales for the year from continuing operations were lower at £67.97 million (2002
- £72.96 million). Sales during the second half of the year were reduced for the
UK broadcast business, which suffered from a weak order flow from international
markets in the second and third quarters. In addition Hernis' sales fell behind
the previous years record level due to weaknesses in its Asian and Middle
Eastern markets.
Operating profits from continuing operations before goodwill amortisation and
exceptional rationalisation costs were lower at £2.07 million (2002 - £4.18
million). Goodwill amortisation for the year was unchanged at £1.17 million.
Net interest payable fell to £0.42 million (2002 - £0.73 million) as a result of
the Group's positive cash flow.
After the exceptional rationalisation costs of £3.76 million (2002 - £0.32
million), losses from discontinued businesses of £0.02 million (2002 - £0.63
million) and the loss on disposal of the business of £0.08million (2002 - £0.20
million), the Group made the pre-tax loss of £3.37 million (2002 - £1.14 million
profit).
The Group generated cash of £8.94 million (2002 - £4.84 million) including the
net deposit from the VTV contract of £7.45 million, which has eliminated
gearing. At year end the Group had net cash of £3.70 million (2002 - net debt of
£4.99 million).
Earnings per Share
Earnings per share from continuing operations before goodwill and the
exceptional rationalisation costs were 0.96p (2002 - 1.85p). The basic loss per
share was 3.88p (2002 - earnings per share of 0.41p).
Dividends
The Board is recommending a maintained dividend of 0.2p per share. The dividend,
subject to shareholder approval, will be paid on July 23, 2004 to shareholders
on the register at July 2, 2004.
Strategy and Prospects
The Group's key strategies are to achieve sales growth through the development
of the government, military and security markets and to create an operating
profit return on sales, before goodwill and central costs, in excess of 10%.
These objectives were met by MRC, which had another year of growth, with
particular success in winning US government and military business for both
microwave radios and satellite products. Further investment in new products and
new sales channels for these markets is being made by MRC in 2004.
The demand for MRC's products is expected to increase with the planned
regulatory changes to the frequency band used by outside broadcasters. The US
government regulator, the Federal Communications Commission, is making changes
to the current broadcasters' radio channels in order to make them available for
other wireless services. These changes are expected to generate incremental
revenues for MRC, starting at the end of 2004 for a period of at least three
years.
The UK based broadcast business, which sells microwave, terrestrial TV
transmitters and satellite products into international markets outside of the
USA and in the UK, has suffered from weak markets throughout the year and as a
result the business made an operating loss. The rationalisation of the business
should see it return to profitability in the second half at the current level of
trading.
The broadcast businesses have a strong product development programme that will
see new satellite and microwave products being launched at the National
Association of Broadcasters show in April 2004. The focus of the development
programme has been to produce new products that are smaller and lighter and
match or exceed existing performance levels.
Hernis' international markets have been slow in 2003 but demand from the local
Norwegian oil and gas market for their new explosion proof camera housing has
been good. The International Ship and Port Safety regulations coming into
effect on July 1, 2004 will generate additional sales opportunities for Hernis
and widen their CCTV marine security market. Hernis has developed new products
specifically to address this new sector of the market.
In summary, the Group has seen growth in the US broadcast business, continued
profitability at Hernis despite weaker sales and orders, and addressed the
weakness of the UK broadcast business. The VTV contract and the increased order
intake in the US broadcast business have given the Group a strong opening order
book for 2004. The UK rationalisation will be completed during the first half of
2004 and thereafter it is expected that the UK business will trade profitably.
Given the significant market opportunities for MRC and Hernis, the new product
development programme and good progress on the VTV contract, the Board expects
an improved trading performance for 2004.
ALR Morton
Chairman
March 24, 2004
Chief Executive's review
Introduction
The Group has continued to maintain its global market leadership in microwave
products for the broadcast market through Microwave Radio Communications (MRC),
our US based business and for mobile satellite products through our UK based
businesses of Advent, Multipoint and Continental Microwave.
Sales of broadcast quality microwave links and satellite communications products
into the growing markets of public safety, homeland security and military
communications, increased in the year by 20.2% to £12.17 million (2002 - £10.14
million).
Hernis, our Norwegian based business with a growing worldwide reputation in the
marine and petroleum industry markets for their specialised CCTV security
systems experienced a satisfactory offshore domestic market but slower
international markets compared with the previous year.
Business review of 2003
The Group achieved some notable successes this year, particularly in winning the
large Venezuelan contract and in the US where MRC had another year of profitable
growth due to high levels of government expenditure and the continuation of the
digital TV conversion programme in the domestic US market. MRC's order intake
exceeded $54 million in 2003, up from $44.31 million in 2002. MRC has shown
consistent growth from the annualised order intake level of circa $32 million at
the time of its acquisition in 2000.
The UK business, through Continental Microwave Limited ('CML'), won a $58.85
million (£32.88 million) contract with the national Venezuelan TV broadcaster
(VTV) to upgrade their existing studios, distribution and transmission networks.
The project is now underway and finance has been secured through a cash
deposit and a confirmed letter of credit for the contract balance. CML will
manage this project as well as supplying the microwave links and satellite
equipment and sourcing third party product for installation in Venezuela. The
contract has an eighteen month term and is expected to generate a return in line
with the Group's stated objectives.
The overall Group performance was affected in 2003 by a disappointing second
half performance from the UK based broadcast business. In response to the
weaker market demand, the last stage in the rationalisation of the UK Broadcast
business was announced in November 2003 and is now being implemented. The
rationalisation involves combining the separate UK facilities on to one site in
Chesham. The cost to close the Luton factory, provide for redundancies and
transfer the relevant operations to Chesham, amounts to £3.76 million. The
rationalisation is expected to reduce the cost base by £2.5 million this year
(circa £3 million annually) and return the UK business to profitability in the
second half of 2004. The UK based business will remain the centre of excellence
for the design and development of satellite products whilst the US based
business will continue to be the centre of excellence for microwave radio
products.
Trading by market
Sales from the continuing businesses were £67.97 million, 6.8% behind the £72.96
million sales in 2002. However, the total order intake for the Group increased
to £97.89 million (2002 - £70.29 million). The Group's closing order book has
increased to £45.93 million (2002 - £16.31 million) due to the VTV contract,
which will benefit both 2004 and 2005.
In the Broadcast businesses sales were £59.60 million (2002 - £63.18 million)
and operating profits before goodwill and exceptional costs were lower at £2.45
million (2002 - £4.13 million). Sales into North America increased to £25.90
million (2002 - £24.07 million), notwithstanding the adverse currency
translation in 2003. Sales into the Middle East grew by 18% due to the supply of
both microwave links into Kuwait and satellite uplinks in the United Arab
Emirates. In West Africa CML supplied both mobile and fixed microwave and
satellite systems for the All Africa Games, hosted by Nigeria in October 2003.
This contributed to the 32% sales growth in the region.
In the first half of the year, demand from the UK and rest of Europe was in line
with expectations as broadcasters and governments purchased equipment to provide
TV coverage and tactical and strategic military communications for the Iraq
conflict. However expenditure levels reduced in the second half of the year as
purchasing decisions were deferred. There are signs that these are now being
made and the market is improving. Sales into South America were down to £2.76
million (2002 - £7.03 million), however they will recover with the delivery of
the VTV contract.
Hernis sales were £8.37 million (2002 - £9.77 million). Sales into Europe were
£4.58 million, marginally below the £5.21 million in 2002 as the rate of new
build of ships has been slower than seen in early 2002. Sales in the Far East,
normally a strong market for Hernis were depressed by the economic impact of the
SARs outbreak, falling to £1.66 million (2002 - £2.46 million). The lower sales
were mitigated to some extent by the introduction of new higher margin explosion
proof CCTV camera stations. Hernis' operating profits for the year were £0.61
million (2002 - £1.10 million).
Product development
Expenditure on research and development for the continuing operations has been
maintained at £3.65 million (2002 - £3.94 million).
The Group has set a key strategic objective for new products to be lighter in
weight and give higher performance. The increasing use of digital systems for
outside broadcasts and the need for rapid deployment lightweight satellite
antennas together with smaller electronic systems is a key requirement for our
global customers.
During 2003 the Group launched several new broadcast products that have enhanced
its digital microwave links and satellite product range. Hernis has successfully
introduced its new explosion proof range of products.
The Group has in place a development programme to launch both a compact suitcase
sized satellite antenna together with a modular system of lightweight
electronics at this year's international broadcast show in April. This product
has already attracted the attention of international broadcasters and is
expected to generate growth in sales this year. In addition we have continued
to develop the product range for the Strata microwave radio products for the
multiple international frequencies required on a global basis. Significant
resources have been committed to meeting the new R&TTE certification
requirements in Europe.
Hernis has developed an exciting new product, the Sea Touch system that uses
touch screen display technology and integrates CCTV camera stations on board a
vessel with alarms and sensors which monitor the ship's safety and security.
This has been designed to meet the new International Maritime Organisation (IMO)
regulations for the International Ship and Port Safety (ISPS) certification
required by all vessels over 5,000 tonnes trading internationally. The
opportunities for Sea Touch systems are significant for Hernis.
Market opportunities
The pace of change towards a digital broadcast environment is beginning to
accelerate. The adoption of digital systems for video and data transmission
systems increases the capacity of the radio spectrum over older analogue
systems. This suits the regulators as it allows for new services to be
introduced into the already crowded spectrum. In addition digital systems are
ideal for radio transmission to and from moving vehicles and helicopters, as
they provide uninterrupted signals, unlike analogue systems, which can suffer
from interference when used in mobile applications.
As the software and associated electronics offer improved performance and have
become smaller with lower costs, microwave radio and satellite systems are
finding new applications for tactical and strategic military communications and
in the public safety and law enforcement markets. Whilst these markets are
relatively new they will become strategic markets of the future.
Whilst the main market opportunity continues to be the increasing adoption of
broadcast quality digital video transmission on a global basis, the Group stands
to benefit in a number of ways from the increasing demand for this technology.
In the US market, MRC has benefited from the digital upgrade of fixed studio to
transmitter links. Now that the upgrade programme is virtually complete for
commercial Broadcasters, they are releasing funds to convert their outside
broadcast systems to digital. The next major US opportunity involves an
impending regulatory driven change. The main US regulator, the Federal
Communications Commission (the FCC), has issued a 'rule and order' paper which
brings into effect from December 2004 the transfer of the most commonly used
broadcast part of the 2GHZ Broadcast spectrum away from the broadcasters to the
new providers of wireless services and mobile satellite services. The new
entrants will have to compensate the broadcasters for the cost of new digital
equipment to be used in the reallocated broadcast spectrum. MRC expects to
maintain its market share in supplying the new digital radios for the regulatory
change and for the growth in outside digital broadcast systems. In addition the
US law enforcement and public safety markets are seen as another growth market
for the Group, as new channels to these markets are developed during 2004.
In European markets the general economic climate is improving and it is expected
that national digital TV transmissions systems will start to be installed, with
Norway being an early leader. The Group also expects the introduction of the new
range of lighter and smaller satellite products to generate growth for the UK
based broadcast business.
Hernis is also expecting to benefit from an increase in demand out of the
regulatory driven changes that ship owners will have to make to on board
security systems following the introduction of the new ISPS code that will come
into effect on July 1, 2004. This will provide a market for the retrofit of
existing ships without CCTV systems and increase the overall size of the marine
shipping market for Hernis products.
Summary
The Group is well positioned to take advantage of the regulatory driven
opportunities for growth, supported by new products. The increased use of
digital broadcast systems and the demand from the government and security
markets for the Group's products are expected to provide the platform for
improved trading in both the short and longer term.
IH Scott-Gall
Chief Executive
March 24, 2004
Group Profit and Loss Account
for the year ended December 31, 2003
Before Before
goodwill & goodwill &
exceptional Goodwill & exceptional Goodwill &
items exceptional items exceptional
items Total items Total
2003 2003 2003 2002 2002 2002
Notes £'000 £'000 £'000 £'000 £'000 £'000
Turnover
Continuing operations 67,966 - 67,966 72,955 - 72,955
Discontinued operations 1,425 - 1,425 6,589 - 6,589
1 69,391 - 69,391 79,544 - 79,544
Operating profit
Continuing operations before exceptional
rationalisation costs and goodwill
amortisation 2,074 - 2,074 4,177 - 4,177
Exceptional rationalisation costs - (3,760) (3,760) - (318) (318)
Continuing operations before goodwill
amortisation 1 2,074 (3,760) (1,686) 4,177 (318) 3,859
Goodwill amortisation 1 - (1,167) (1,167) - (1,170) (1,170)
Continuing operations 1 2,074 (4,927) (2,853) 4,177 (1,488) 2,689
Discontinued operations 1 (23) - (23) (626) - (626)
Total operating (loss)/profit 2,051 (4,927) (2,876) 3,551 (1,488) 2,063
(Loss) on disposal of businesses 2 - (27) (27) - (195) (195)
Impairment of long leasehold property 2 - (50) (50) - - -
(Loss)/profit on ordinary activities
before interest 2,051 (5,004) (2,953) 3,551 (1,683) 1,868
Interest receivable 38 - 38 106 - 106
Interest payable (456) - (456) (831) - (831)
(Loss)/profit on ordinary activities
before taxation 1,633 (5,004) (3,371) 2,826 (1,683) 1,143
Tax on (loss)/profit on ordinary
activities 3 (666) 111 (555) (941) 211 (730)
(Loss)/profit for the financial year 967 (4,893) (3,926) 1,885 (1,472) 413
Dividends 4 (202) - (202) (205) - (205)
Transfer (from)/to reserves 765 (4,893) (4,128) 1,680 (1,472) 208
Basic (loss)/earnings per share 5 0.96p (4.84)p (3.88)p 1.85p (1.44)p 0.41p
Diluted (loss)/earnings per share 5 0.95p (4.80)p (3.85)p 1.85p (1.44)p 0.41p
Dividend per share 4 0.20p 0.20p
Statement of retained profits
Profit and loss account at January 1 2,048 3,048
Arising in the financial year (4,128) 208
Translation difference on foreign
currency net investments (1,592) (1,208)
Profit and loss account carried forward (3,672) 2,048
Statement of Total Recognised Gains and Losses
for the year ended December 31, 2003
2003 2002
£000 £000
(Loss)/profit for the financial year (3,926) 413
Translation difference on foreign currency net investments (1,592) (1,208)
(5,518) (795)
Prior year adjustment in respect of FRS19 - 814
Total recognised gains and losses since last Annual Report (5,518) 19
There is no material difference between the reported results and the historical
cost profits and losses.
Reconciliation of Movements in Shareholders' Funds
for the year ended December 31, 2003
2003 2002
£'000 £'000
Opening equity shareholders' funds as previously reported 32,700 32,879
Prior year adjustment in respect of FRS19 - 814
Opening equity shareholders' funds restated 32,700 33,693
(Loss)/profit for the financial year (3,926) 413
Dividends (202) (205)
Value of share issues in the year - 223
Change in the value of shares to be issued - (216)
Translation difference on foreign currency net investments (1,592) (1,208)
Movement in the year (5,720) (993)
Closing equity shareholders' funds 26,980 32,700
Group and Company Balance Sheets
as at December 31, 2003
Group Company
2003 2002 2003 2002
£'000 £'000 £'000 £'000
Fixed assets
Intangible assets 18,091 19,851 - -
Tangible assets 4,464 5,643 5 8
Investments 160 86 25,396 25,390
22,715 25,580 25,401 25,398
Current assets
Stocks 9,099 12,086 - -
Debtors 12,857 17,114 521 2,432
Cash at bank and in hand 9,540 4,189 83 446
31,496 33,389 604 2,878
Creditors - amounts falling due within one year 19,121 18,630 1,559 2,791
Net current assets/(liabilities) 12,375 14,759 (955) 87
Total assets less current liabilities 35,090 40,339 24,446 25,485
Creditors - amounts falling due after more than one year 5,567 6,947 17,578 18,045
Provisions for liabilities and charges 2,543 692 - -
26,980 32,700 6,868 7,440
Capital and reserves
Called up share capital 2,552 2,552 2,552 2,552
Share premium account 205 205 205 205
Merger reserve 27,895 27,895 - -
Profit and loss account (3,672) 2,048 4,111 4,683
Equity shareholders' funds 26,980 32,700 6,868 7,440
Group Cash Flow Statement
for the year ended December 31, 2003
Notes 2003 2002
£'000 £'000
Net cash inflow from operating activities 6 11,824 5,923
Returns on investments and servicing of finance
Interest received 38 106
Interest paid (476) (871)
(438) (765)
Taxation paid (1,223) (155)
Capital expenditure
Purchase of tangible fixed assets (1,137) (877)
Purchase of investments (76) (84)
Proceeds from sale of tangible fixed assets 35 118
(1,178) (843)
Acquisitions and disposals
Proceeds from sale of businesses 160 783
Equity dividends paid (205) (101)
Net cash inflow before financing 8,940 4,842
Financing
Repayment of bank loans (3,331) (3,818)
Finance lease repayments - (8)
(3,331) (3,826)
Increase in cash 5,609 1,016
Reconciliation of Net Cash Flow to Movement in Net Cash/(Debt)
for the year ended December 31, 2003
Notes 2003 2002
£'000 £'000
Increase in cash 5,609 1,016
Repayment of bank loans 3,331 3,818
Finance lease repayments - 8
Change in net debt resulting from cash flows 6 8,940 4,842
Effect of foreign exchange changes 6 (258) (323)
Movement in net cash/(debt) 8,682 4,519
Opening net (debt) (4,985) (9,504)
Closing net cash/(debt) 6 3,697 (4,985)
1. Segmental Analysis
Turnover Operating Profit Net Assets
Total Total Total Total Total Total
2003 2002 2003 2002 2003 2002
£'000 £'000 £'000 £'000 £'000 £'000
By business:
Broadcast 59,599 63,183 2,451 4,130 11,100 14,429
Hernis 8,367 9,772 606 1,096 4,117 3,561
Central - - (983) (1,049) 11,763 14,783
67,966 72,955 2,074 4,177 26,980 32,773
Exceptional rationalisation costs (note 2) - - (3,760) (318) - -
Goodwill amortisation - - (1,167) (1,170) - -
Continuing operations 67,966 72,955 (2,853) 2,689 26,980 32,773
Discontinued operations 1,425 6,589 (23) (626) - (73)
Total 69,391 79,544 (2,876) 2,063 26,980 32,700
Net assets within Central include group debt, capitalised goodwill and
dividends.
The exceptional rationalisation costs are allocated to the Broadcast businesses
in both 2003 and 2002.
Goodwill amortisation in the continuing operations is in respect of the
businesses of Advent Communications, Multipoint Communications and Microwave
Radio Communications all of which are within the Broadcast business.
The discontinued operations relate to the image analysis business of Data Cell
Limited.
Turnover Analysis
Discontinued
Broadcast Hernis operations Total
2003 2002 2003 2002 2003 2002 2003 2002
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
By market:
UK & Ireland 7,157 9,386 315 442 1,401 2,273 8,873 12,101
Rest of Europe 4,068 3,623 4,264 4,767 18 98 8,350 8,488
North America 25,899 24,072 1,271 1,846 5 4,007 27,175 29,925
South America 2,758 7,034 48 2 - - 2,806 7,036
Middle East 5,747 4,870 407 111 - - 6,154 4,981
Asia 8,724 9,447 1,662 2,457 - 59 10,386 11,963
Africa 5,012 3,802 19 14 - - 5,031 3,816
Other 234 949 381 133 1 152 616 1,234
59,599 63,183 8,367 9,772 1,425 6,589 69,391 79,544
By origin:
UK & Ireland 28,903 35,827 - - 1,425 2,630 30,328 38,457
Norway - - 8,367 9,772 - - 8,367 9,772
North America 30,696 27,356 - - - 3,959 30,696 31,315
59,599 63,183 8,367 9,772 1,425 6,589 69,391 79,544
Net Assets Analysis
Total
2003 2002
£'000 £'000
By market:
UK & Ireland 12,644 18,890
Norway 4,117 3,937
North America 10,219 9,873
26,980 32,700
2. Exceptional items
a) Operating exceptional items
2003 2002
£'000 £'000
Redundancy costs associated with the integration of the US broadcast business - 318
Provision for the rationalisation of the UK broadcast business
- redundancy and relocation costs 945 -
- fixed asset impairment and inventory write down 1,913 -
- onerous property lease commitments 902 -
3,760 318
On November 27, 2003 the Group announced the operational rationalisation of the
UK broadcast business. This involves the closure of the Luton manufacturing
facility with the consolidation of manufacturing into the Chesham site and the
scaling back of terrestrial broadcast transmitter production.
b) Non-operating exceptional items
2003 2002
£'000 £'000
Loss on disposal of businesses 27 195
Impairment of long leasehold property associated with business disposed of 50 -
77 195
The loss on disposal of businesses relates to the sale of the image analysis
business of Data Cell. The long leasehold property was sold on January 9, 2004
at its net book value of £475,000.
3. Taxation
a) Analysis of tax charge in period
2003 2002
The tax charge for the year comprises: £'000 £'000
Current tax
UK Corporation tax - at 30% (2002 - 30%) - -
UK Corporation tax - adjustment in respect of prior years - (15)
- (15)
Overseas taxation - current 748 472
Overseas taxation - adjustments in respect of prior years (59) 192
Total current tax 689 649
Deferred tax
Origination and reversal of timing differences
UK tax (472) (127)
Foreign tax 338 208
Total deferred tax (134) 81
Tax on ordinary activities 555 730
4. Dividends
2003 2002
£'000 £'000
Final dividend proposed of 0.20p per share (2002 - 0.20p per share) 202 205
5. Earnings per Ordinary Share
Earnings per share is calculated by reference to a weighted average of
101,238,000 (2002 - 101,757,000) ordinary shares in issue throughout the year
(excluding the shares held by the Employees' Share Ownership Plan) and on the
loss for the financial year of £3,926,000 (2002 - profit of £413,000). Diluted
earnings per share is after taking account of a further 620,000 (2002 - nil)
shares being the dilutive effect of share options.
Earnings per share before goodwill, exceptional items and discontinued
activities excludes after tax amounts relating to goodwill and exceptional items
of £4,893,000 (2002 - £1,472,000).
At the date of issue of the report the total number of shares in issue were
102,073,000.
Basic Diluted Basic Diluted
2003 2003 2002 2002
Basic and diluted (loss)/earnings per share (3.88)p (3.85)p 0.41p 0.41p
Adjustment for goodwill and exceptional items 4.84p 4.80p 1.44p 1.44p
Basic and diluted earnings per share before goodwill and exceptional items 0.96p 0.95p 1.85p 1.85p
6. Notes to the Statement of Cash Flows
(a) Reconciliation of operating profit to net cash inflow from
operating activities
Total Total
2003 2002
£'000 £'000
Operating (loss)/profit (2,876) 2,063
Depreciation 1,519 929
Amortisation of goodwill 1,167 1,170
Provision against investments - 13
Loss on sale of fixed assets 35 12
Decrease in stocks 2,399 348
Decrease in debtors 4,388 1,186
Increase in creditors 3,462 969
Increase/(decrease) in provisions 1,730 (767)
Net cash inflow from operating activities 11,824 5,923
(b) Analysis of net debt
At Exchange At
January 1, Cash flow movements December 31,
2003 2003
£'000 £'000 £'000 £'000
Cash at bank and in hand 4,189 5,609 (258) 9,540
Loans (9,174) 3,331 - (5,843)
(4,985) 8,940 (258) 3,697
7. Directors Responsibilities
The financial information for the year ended December 31, 2003 has been
extracted from the full accounts of the Group, which contain an unqualified
audit report and will be filed, in due course, with Companies House. The
auditors have reported on those accounts; their report was unqualified and did
not contain statements under section 237 (2) or (3) of the Companies Act 1985.
8. Report and Accounts
Copies of the Report and Accounts will be sent to shareholders in due course and
will then be available from the registered office at Marlborough House, Charnham
Lane, Hungerford, Berkshire, RG17 0EY.
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 31st May 2024
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