Net Asset Value(s)
SPECTRUM TECHNOLOGIES PLC
HALF YEAR STATEMENT TO 30 June 2008
6 months to 6 months to
30 June 2008 30 June 2007
GBP £000's GBP £000's
Turnover 2836 3822
Gross profit 888 1464
Interest received/(paid) (8) 1
Profit before tax (193) 262
Profit per share (pence) (1.36) 1.86
Net cash (112) 319
Orders received 3225 4065
Note: The above figures are unaudited
The last 12 months have been characterised by increasing volatility in the
world economy with increased levels of uncertainty and regular references to
possible recession in the US and UK. Although fluctuations in the day to day
economy do not generally directly impact our customer base the economic
uncertainty has had a knock on to our business with customers delaying
placement of orders during the first 4 months of the year. This has made the
first half of the year distinctly more difficult than last year with order
intake reduced from plan and resulting in a first half loss. Nevertheless the
Company has made important progress with the completion of the launch of the
new NovaTM range of UV laser wire markers, which have been well accepted in the
market place. The Nova range encompasses 5 models from the Nova 800 through to
the Nova 880, extending the product range and superseding the previous CAPRIS
50-300 and 60-200 mid and high end models. The Nova systems use a common high
performance platform and are now in full production, bringing significant
advantages in terms of ease of build, reduced manufacturing costs and build
times.
The introduction of the full Nova range has coincided with an easing of the
market conditions with customers beginning to place delayed orders. Orders
received have picked up in the last couple of months so that by the end of July
our order intake for the first seven months stood at just under GBP 4M,
equivalent to approximately 92% of our order intake for the same period last
year. With the Nova range in full production we are confident that all the
orders received in the last few weeks will be delivered before the year end and
that further orders expected in the coming months can also be delivered to make
a positive contribution to the full year results.
The Company has continued to maintain firm control over cash. However, the
hiatus in orders in the first part of the year, while we were also bringing in
the new models, has resulted in a reversal in cash. This situation is expected
to improve significantly with strong cash inflows due in Q3 based on recent
deliveries and the current order book putting the company firmly back in a cash
positive position.
The short term outlook is clearly more challenging than of late but as noted
above our customer base is not particularly susceptible to the short term
cycles of consumer markets. In the aerospace market there are record backlogs
of aircraft on order which will need to be manufactured in the coming years. In
the electronics sector the market conditions also remain stable. At this stage
it is too early to forecast precisely the level of business in the 2nd half of
the year. However, present expectations are for further order intake for all
main products in the coming months. Based on the current conditions in our key
markets plus action in hand to expand in to new markets, we anticipate a
continued generally good trading situation into the medium to long term.
Noting the current short term challenges and the actions in hand to respond to
those plus the opportunities for the medium to long term business development
the Board are as satisfied as they can be with the present business position.
Peter Dickinson
CEO
The directors of the issuer accept responsibility for this announcement.
For further information please contact:
Peter Dickinson Tel: 01656 655 437
Spectrum Technologies PLC Fax: 01656 655 920
Western Avenue Email: pdickinson@spectrumtech.com
Bridgend
CF31 3RT
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