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21st Century Tech (C21)

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Wednesday 23 March, 2011

21st Century Tech

Final Results

RNS Number : 4378D
21st Century Technology PLC
23 March 2011
 



23 March 2011

 

21st Century Technology plc ("21st Century", "the company" or "the group")

 

Preliminary results for the year ended 31 December 2010

 

21st Century, the supplier and installation service provider of public transport CCTV and vehicle monitoring systems, today announces its preliminary results for the year ended 31 December 2010.  

 

Financial highlights

 

·      CCTV sales up 9% to £5.9m (2009: £5.4m)

·      EcoManager sales of £0.9m (2009: £Nil) into mainland Europe

·      Operating profit  up over 300% to £0.8m (2009: £0.3m)

·      Profit after tax from continuing operations up 24% at £0.6m (2009: £0.5m)

·      Net profit  up to  £0.6m (2009: £0.0m)

·      Earnings per share on continuing operations up 20% at 0.67p (2009: 0.56p)

·      Bank debt repaid and net cash at bank up to £1.1m from £0.5m at the start of the year

 

Operational highlights

 

·      New on bus CCTV business awarded by FirstGroup UK Bus

·      New station platform CCTV business awarded by Govia

·      EcoManager sales remain strong with first sales into mainland Europe

·      EcoManager wins prestigious safety award in the UK

 

Strong start to 2011

 

·      £7.2m contract awarded by Keolis in Sweden

·      The group's freehold property is being actively marketed for sale

 

Commenting on the results, Jan Holmstrom, Chairman of 21st Century, said:

"21st Century has established a solid position in its home market and is now preferred supplier to Arriva UK Bus and The Go-Ahead Group in the UK and an approved supplier to FirstGroup UK Bus.  Sales into mainland Europe continue to improve and, in 2010, the group made its first sales of EcoManager on the continent.  We have also made an excellent start to 2011, having won a substantial on bus CCTV contract with Keolis in Sweden.  We are looking forward to building on this success over the remainder of the year." 

 

A copy of this preliminary results announcement is available on the company's website: www.21stplc.com

 

Enquiries:

 

21 Century Technology plc

Wilson Jennings

Tel: 020 8710 4016

www.21stplc.com

Finance Director





Daniel Stewart & Company plc (Nomad & Broker)

Paul Shackleton/

Noelle Greenaway

Tel: 020 7776 6550





MHP Communications

Barnaby Fry/Vicky Watkins

Tel: 020 3128 8100

 

Notes to editors:

21st Century Technology plc is the preferred supplier of on-board CCTV systems for Arriva UK Bus and the Go-Ahead Group in the UK and an approved supplier to FirstGroup UK Bus.  21st Century is also the preferred supplier of station platform CCTV systems for the three major UK rail franchises operated by Govia (the joint venture between Go-Ahead and Keolis). 

The company has pioneered the use of WiFi with on-board CCTV systems and Transport for London commissioned the company to undertake a trial of 'LiveView' - a system which transmits live CCTV pictures from on board the bus to a public transport and police control centre.  21st Century was also the first company to successfully launch Automatic Video Downloads and a bus CCTV monitoring system (HeartbeatTM) which allow the CCTV manager to remotely download CCTV footage from the bus to his computer and check that all the CCTV systems fitted to his buses are fully operational, without leaving his desk.   The company's overhead camera passenger counting device, known as PAS - Passenger Analysis System, links to the ticket machine and enables bus operators to analyse specific bus route ticket sales and passenger numbers.

21st Century's EcoManager product has made a significant contribution to sales since its launch in July 2008. The EcoManager black-box system is aimed at reducing fuel and maintenance costs, reducing emissions and improving safety for bus operators by monitoring individual driving styles against fuel consumption. Following a successful trial, in April 2009 Arriva UK committed to install the device on all their new buses and to retrofit a large proportion of their existing fleet. In November 2009 Arriva North West and Merseytravel won the industry recognised Alexander Dennis Award for Innovation following their installation of the EcoManager system which yielded fuel savings of up to 12%, associated CO2 emission reductions and a 62% reduction in accidents. This was followed in 2010 with a driver safety award for EcoManager presented by the road safety charity, Brake. 

For further information go to www.getecomanager.com.

 

Chairman's statement

 

Trading results

 

I am pleased to report that the group results from continuing activities for the year show an increase in profit from continuing operations of 24% to £0.6m (2009: £0.5m).  We have also increased our cash position significantly at the year end to £1.1m compared to £0.5m at the start of the year.

 

Group - continuing operations

 

2010

£m

2009

£m

Revenue 

10.8

10.5

Gross profit

6.3

6.3

Gross profit percentage

58%

60%

Net operating expenses

(5.4)

(5.6)

Operating profit from continuing operations

0.9

0.7

Finance costs

-

-

Profit before taxation

0.9

0.7

Taxation

(0.3)

(0.2)

Profit on continuing operations after tax

0.6

0.5

Loss for the period from discontinued operations

-

(0.5)

Profit from continuing and discontinued operations

0.6

-

Earnings per share

Pence

Pence

- Continuing operations

0.67p

0.56p

- Continuing and discontinued operations

0.61p

0.02p

 

Following the disposal of the last remaining legacy distribution business at the end of 2009 and the cessation of our loss making Vehicle Installation Services for insurance customers at the beginning of 2010, the principal activities of the company are now focused on the supply of monitoring systems to the public transport market.  These embrace the supply and installation of mobile (on vehicle) and fixed (on premises) CCTV, EcoManager driver monitoring and our passenger counting system, "PAS" (Passenger Analysis System).

 

CCTV

Despite a tough economic backdrop, the division reported a good performance, with CCTV sales for the year reaching £5.9m up 9% on the prior year.  We added FirstGroup UK Bus to our customers during the year and this contributed £0.9m to total sales.  In addition we expanded the services we provide to Go-Ahead through the supply of station platform CCTV equipment and the management of the installation program at the three UK train companies operated by Govia - the Go-Ahead and Keolis joint venture.  This new income source contributed £1.4m in additional sales in the year.

 

EcoManager

EcoManager is our driver monitoring device which utilises a red, amber, green in-cab display to assist bus drivers to reduce fuel consumption and improve safety by moderating their driving style.  The deployment of EcoManager has resulted in fuel savings of 12% and over 60% reduction in accidents. In 2009 EcoManager won the industry recognised Alexander Dennis Award for Innovation and this was followed in 2010 with a UK driver safety award presented by the road safety charity, 'Brake'.  Arriva have now almost completed the roll out of the system across their UK fleet.  EcoManger sales for the year reached £4.9m, in line with the previous year. The significant aspect of this is that these sales included £0.9m of sales in to mainland Europe - specifically Holland, Italy, Spain and France and we believe that the European export market may represent a major opportunity for growth.

 

Contract wins and major customers

We have made significant progress since the period under review.  In January 2011 we were awarded Swedish contracts worth £7.2m by Keolis Sverige AB to supply CCTV systems, related maintenance and depot infrastructure for a total of 1,475 buses which Keolis operates under the 'Busslink' trading name in Stockholm.  Around £6.3m of this business is expected to be delivered in 2011. 

 

The group continues to build momentum by developing leading positions with major customers across the UK and Europe.  We are now an approved supplier for on board CCTV to First Group UK Bus, preferred supplier to Arriva and Go-Ahead in the UK and preferred supplier to Keolis in Stockholm.

 

Cash flow

 

The final instalment of the bank term loan was repaid in February 2010 and the group has maintained a positive cash position of £1.1m at the end of the year, up from £0.5m at the start of the year.

 

Land and buildings  

The group owns its head office premises in Mitcham Surrey, which comprises 51,000 sq ft of office and warehouse space on a 3.2 acre site.  Since the disposal of the group's legacy distribution businesses, which was completed at the end of 2009, the head office site has been underutilised and so we are now actively marketing the property for sale. Consequently, in the Consolidated Statement of Financial Position as at 31 December 2010, the carrying value of the land and buildings has been reclassified from non-current assets in to current assets classified as held for sale. 

Dividends

To date the company has not been in a position to pay dividends because of the level of bank debt in the business and the losses of the company accumulated in its formative years.  The bank debt has now been repaid but the company still has a deficit on its reserves. To address this, a resolution will be put forward for consideration by shareholders at our next AGM to enable the company to offset its share premium against its prior year accumulated losses so that future profit is available for distribution by way of dividend.

Current trading and outlook

We have made a good start to 2011, with the award of the Keolis contracts and we are trading in line with expectations.  We are hopeful of adding to this early success during the remainder of the current year. 

 

 

Jan G Holmstrom

Chairman

 

22 March 2011

Consolidated statement of comprehensive income for the year ended 31 December 2010

Notes

 

2010

£'000

 

2009

£'000

Continuing operations




Revenue

2

10,840

10,470





Cost of sales


(4,550)

(4,143)





Gross profit


6,290

6,327





Other operating income


88

93

Administrative expenses


(5,508)

(5,675)





Operating profit


870

745





Finance costs


(10)

(54)





Profit before taxation


860

691





Taxation


(240)

(192)





Profit for the year from continuing operations


620

499





Discontinued operations




Loss for the year from discontinued operations

3

(57)

(481)





Profit for the year being total comprehensive income


563

18





Earnings per share

4



From continuing operations




Basic and diluted


0.67p

0.56p

From continuing and discontinued operations




Basic and diluted


0.61p

0.02p

 

Consolidated statement of financial position

as at 31 December 2010

Notes

2010

£'000

2009

£'000





Assets




Non-current assets




Goodwill


4,318

4,318

Other intangible assets


183

247

Property, plant and equipment

5

115

2,820

Deferred tax asset


160

200



4,776

7,585

Current assets




Inventories


1,058

1,658

Trade and other receivables


1,840

1,874

Cash and cash equivalents


1,146

773



4,044

4,305

Assets classified as held for sale

6

2,592

-



6,636

4,305





Total assets


11,412

11,890





Liabilities




Current liabilities




Trade and other payables


(1,937)

(2,785)

Current tax liabilities


(282)

(180)

Bank loans and overdrafts


-

(251)

Provisions


(173)

(72)



(2,392)

(3,288)





Net current assets


4,244

1,017





Non-current liabilities




Provisions


(60)

(205)

Deferred tax liabilities


(362)

(362)



(422)

(567)





Total liabilities


(2,814)

(3,855)





Net assets


8,598

8,035

 

            


2010

£'000

2009

£'000

Shareholders' equity




Share capital


9,223

9,223

Share premium account


3,387

3,387

Special reserve and other reserve


1,249

1,249

Retained earnings


(5,261)

(5,824)

Total equity


8,598

8,035

 

Consolidated statement of cash flows

for the year ended 31 December 2010

 

Notes

 

2010

 

2009



£'000

£'000

Net cash generated from operating activities

7

690

1,535

 

Cash flow from investing activities




Disposal of discontinued operations


100

425

Purchases of property, plant and equipment


(11)

(81)

Purchases of intangible fixed assets


(155)

(212)

Purchase of shares in subsidiary


-

(1,054)

Net cash used in investing activities


(66)

(922)

 

Cash flow from financing activities




Repayment of borrowings


(250)

(250)

Decrease in bank overdrafts


(1)

(1,469)

Dividend paid to non-controlling interest


-

(293)

Net cash used in financing activities


(251)

(2,012)

 

Net increase/(decrease) in cash and cash equivalents


373

(1,399)

 

Cash and cash equivalents at beginning of year


773

2,172

 

Cash and cash equivalents at end of year


1,146

773

 

Other than the disposal proceeds disclosed above there was no cash flow from investing activities relating to the discontinued operations.  Cash flows from operating and financing activities attributable to the discontinued operations cannot be meaningfully distinguished from those relating to continuing operations.

The cash in flow from disposal of discontinued activities in 2010 was in respect of deferred consideration on disposals made in 2009.


 

Notes to the preliminary results announcement for the year ended 31 December 2010

 

1.  Basis of preparation

 

While the financial information included in this preliminary results announcement has been computed in accordance with EU endorsed International Financial Reporting Standards (IFRSs) on a basis consistent with that adopted in the previous year, this announcement does not in itself contain sufficient information to comply with IFRSs. 

The financial information contained in this preliminary announcement does not constitute statutory accounts for the year ended 31 December 2010 or 31 December 2009.  The financial information for the years ended 31 December 2010 and 31 December 2009 is derived from the statutory accounts for those periods which include audit reports which are unqualified and do not contain a statement under either Section 498(2) or Section 498(3) of the Companies Act 2006 and did not include references to any matters to which the auditor drew attention by way of emphasis.  The statutory accounts for the year ended 31 December 2009 have been delivered to the Registrar of Companies.  The statutory accounts for the year ended 31 December 2010 will be delivered to the Registrar of Companies following the company's Annual General Meeting

 

2.  Segmental reporting

 

Geographical Segments


Revenue by location of customer:

 

 

Continuing operations

 

2010

£'000

 

2009

£'000

UK

9,804

9,887

Holland

486

-

Italy

272

-

Spain

176

-

Scandinavia

90

581

France

12

-

Other EC

-

2


10,840

10,470

Discontinued operations



UK

66

2,824

Netherlands

-

38

France

-

15

USA

-

6

Other EC

-

14


66

2,897

Total revenue

10,906

13,367

3. Discontinued operations

On 15 December 2009, the group entered into a sale agreement to dispose of its Datatool motorcycle security and accessories division.  The disposal was completed on this date and from this date control of this division passed to the acquirers.  On the same day the company announced that it would cease its insurance Vehicle Installation Services ("VIS") early in the New Year. A relatively small amount of sales and cost activity carried over into January 2010 and is disclosed under discontinued operations for 2010.

The results of these discontinued operations which have been included in the consolidated statement of comprehensive income for the year were as follows:

 


2010

£'000

2009

£'000

Revenue

66

2,897

Expenses

(123)

(3,771)

Loss before and after tax*

(57)

(874)

Profit on disposal of discontinued operations

-

393

Net loss attributable to discontinued operations

(57)

(481)

*There was no tax payable on discontinued operations.

 

4. Earnings per share

Basic earnings per share ("EPS") is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the year.

For diluted earnings, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares.  None of the company's share options were dilutive as the option prices were all above the year end market value of the shares.


2010

2009


Earnings

£'000

Per share amount

Pence

Earnings

£'000

Per share amount

Pence

From continuing and discontinued operations





Basic EPS





Earnings attributable to ordinary shareholders

 

563

 

0.61

 

18

 

0.02

Diluted EPS





Earnings

563

0.61

18

0.02

From continuing operations





Basic EPS





Earnings attributable to ordinary shareholders

 

563

 

0.61

 

18

 

0.02

Adjustment to exclude loss from discontinued operations

 

57

 

0.06

 

481

 

0.54

Earnings from continuing operations

620

0.67

499

0.56

Diluted EPS





Earnings from continuing operations (as above)

 

620

 

0.67

 

499

 

0.56

 

 

Details of the weighted average number of ordinary shares used as the denominator in calculating the basic and diluted earnings per ordinary share is given below:


2010

'000

2009

'000




Weighted average number of shares

92,229

89,226

 

5. Property, plant and equipment

 

2010 movements

Freehold
 land and
 buildings

£'000

Plant and equipment

 

£'000

Total

 

 

£'000

Cost:




At 1 January 2010

3,786

2,649

6,435

Additions

-

11

11

Transferred to assets classified as held for sale (note 6)

 

(3,786)

 

-

 

(3,786)

At 31 December 2010

-

2,660

2,660

Depreciation:




At 1 January 2010

1,140

2,475

3,615

Charge for the year

54

70

124

Transferred to assets classified as held for

Sale (note 6)

 

(1,194)

 

-

 

(1,194)

At 31 December 2010

-

2,545

2,545

Net book amounts:




At 31 December 2010

-

115

115

At 31 December 2009

2,646

174

2,820

 

The freehold property has been transferred to assets classified as held for sale (see note 6).

 

6. Assets classified as held for sale

 

Assets held for sale, which were previously classified under property, plant and equipment in non-current assets are as follows:

 

2010 movements

Freehold land and buildings

£'000



Balance brought forward at 1 January 2010

-

Transferred from property, plant and equipment (note 5)

 

2,592

Balance carried forward at 31 December 2010

2,592

 

The group owns its head office premises in Mitcham Surrey, which comprises 51,000 sq ft of office and warehouse space on a 3.2 acre site.  Since the disposal of the group's legacy distribution businesses, which was completed at the end of 2009, the head office site has been underutilised and so the company is now actively marketing the property for sale.  Consequently, the carrying value of the land and buildings has been reclassified from non-current assets in to current assets classified as held for sale.

7. Reconciliation of operating profit to net cash inflow from operating activities

 

 


2010

£'000

2009

£'000




Profit for the year

563

18

Adjustments for:



  Finance costs

10

54

  Income tax expense

240

192

  Gain on disposal of discontinued operations

-

(393)

  Goodwill written off on disposal of discontinued operations

-

532

  Depreciation of property, plant and equipment

124

175

  Amortisation of intangible fixed assets

219

337

  Share based payment expense

-

19

  Decrease in provisions

(44)

(70)

Operating cash flows before movement in working capital

1,112

864




Decrease/(increase) in inventories

600

(157)

(Increase)/decrease in receivables

(66)

853

(Decrease)/increase in payables

(808)

35

Cash inflow from operations

838

1,595

Income taxes paid

(98)

-

Interest paid

(50)

(60)

Net cash inflow from operating activities

690

1,535

 


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