RNS Number:8369S
Planit Holdings PLC
04 December 2003
Chairman and Chief Executive's Statement
The six month period to 31 October has been a successful one for the Planit
Group, with all its divisions, with the exception of U.S. design to manufacture,
performing in line or better than expectation. We are however pleased to be able
to report that in Europe design to manufacture moved into profit for the first
time.
The group strategy to become a dominant force in the large but fragmented CAD
CAM industry was furthered through the acquisition of Radan and Job shop which
have been reorganised, integrated into the group and are now trading profitably
The group made operating profit (before goodwill amortisation) of #1,625,000
(2002: #1,306,000), on increased turnover of #13,045,000 (2002: #10,522,000).
This profit was converted to free cashflow of #1,293,000 which was significantly
up on last year (#752,000), which in turn contributed to a broadly unchanged net
debt of #6,735,000 (2002: #6,657,000) despite acquisition and dividend payments.
The group remains in a strong financial position with interest covered 7 times
by operating profit and gearing of 42% down from 44% at the previous year end.
Manufacturing
Computer Aided Manufacturing Software (CAM)
The UK and US manufacturing industries are beginning to recover and for the
first time since 2001 the sales of CAM software are forecast to rise.
We continue to dominate the woodworking sector through out Europe and the USA
being the preferred supplier of most machine tool manufacturers. The acquisition
last year of Alpha Stair, our stair making software, has already proved very
successful with sales continuing on an upward trend. We have completed the
development required to make it suitable for the US and Europe and we will be
launching it into these markets early in the New Year.
Radan's first six months as part of the Planit Group has been very successful
with them winning a number of large orders, including one with BAE. They
continue to dominate the UK market and we are optimistic that by selling their
products through our existing distribution channels they will soon start to gain
market share in Europe and the U.S.A.
The acquisition of Jobshop complements our existing products by allowing us to
integrate our manufacturing software with Jobshop's production scheduling and
resource planning software. This will produce a cost effective solution for
automating a machine shop and one which can be effectively deployed even in a
small sub contractor's engineering business.
The acquisition of Radan and Jobshop has broadened the range of products we can
offer our engineering customers and for the first time we are able to offer them
a single solution for all their production needs. We believe that this will
enable us to start to dominate the engineering sector as we have traditionally
done in the woodworking one.
Cabinet Making Software
The US division's sales are still below expectation but they continue to trade
profitably and generate cash.
The restructuring started at the end of last year has now been completed,
reducing costs to bring them in line with sales. We appointed a new President in
August who in turn has formed a new and experienced management team. The new
team in a relatively short space of time has transformed the culture of the
organisation; from one where employees were micro managed and afraid to make
decisions to one that is open and inclusive and encourages employees to use
their own initiative. This along with an increased emphasis on providing a
greatly improved customer service has already started to improve our reputation
in the market and is slowly starting to have an effect on sales.
With a highly motivated team and the sales decline reversed, we are confident
that we can build on these improvements so as to ensure that this division
regains its full potential.
The European arm, after three years of investment, has for the first time moved
into profit. Sales are steadily climbing and the introduction next year of a
new version, developed to meet the specific requirements of continental Europe
should ensure that this division's growth in sales and profits continues.
Retail Design Software
Despite a continued recession in Continental Europe we have maintained sales
revenues through the introduction of new and improved products and by increasing
our focus on selling into our installed base. Sales have remained buoyant in the
UK with demand from both our Independent and multi outlet clients for new
licences, consultancy and custom development. Laura Ashley has now entered into
a formal agreement for Planit Online and MFI continue to expand the use of our
online planning software.
Whilst we are operating in a mature market, the introduction and sale of new and
innovative products and services allows us to maintain and increase sales and
profits. This division remains very profitable and cash generative and makes an
important contribution to the Group earnings.
Outlook
The Planit Group continues to grow organically and through acquisitions. The
recovery in the UK and US manufacturing industries allows us to be cautiously
optimistic about the immediate future.
Our long term strategy is to consolidate the large but fragmented CAD CAM market
so as to become a dominant force. We have a proven formula for acquiring
companies, integrating them into our business and quickly making them earning
enhancing and it is our intent to continue this process so as to achieve our
objectives.
Michael Jackson Trevor Semadeni
Chairman Chief Executive Officer
4 December 2003
PLANIT HOLDINGS PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 31 OCTOBER 2003
Unaudited Unaudited Audited
Half year ended Half year ended Year ended
31 October 03 31 October 02 30 April 03
#000 #000 #000
Turnover
Acquisition - Huckerby Royall Systems 433 - -
Continuing operations 12,612 10,522 20,417
13,045 10,522 20,417
Cost of sales (2,213) (2,059) (4,060)
Gross profit 10,832 8,463 16,357
Administrative expenses (9,871) (7,671) (16,789)
Less: Goodwill amortisation 664 514 1,041
Administrative expenses before goodwill (9,207) (7,157) (15,748)
amortisation*
Operating profit before goodwill amortisation 1,625 1,306 609
Goodwill amortisation (664) (514) (1,041)
Operating profit/(loss) 961 792 (432)
Acquisition - Huckerby Royall Systems 38 - -
Continuing Operations 923 792 (432)
Operating profit/(loss) 961 792 (432)
Profit on sale of subsidiary - - 176
undertaking
Interest receivable 74 142 200
Interest payable (293) (292) (515)
Profit /(loss) on ordinary activities before 742 642 (571)
taxation
Taxation (charge)/credit (254) (218) 227
Profit/(loss) on ordinary activities after 488 424 (344)
taxation
Equity minority interest (131) (107) (162)
Profit/(loss) for the financial 357 317 (506)
period
Final dividend payment year ended 30 April 2003 (12) - (354)
Retained profit/(loss) for the 345 317 (860)
period
Basic and diluted earnings/(loss) per 10p ordinary share 0.4p 0.4p (0.6p)
Adjusted earnings per 10p ordinary share - 1.1p 1.2p 1.7p
basic
Adjusted earnings per 10p ordinary share - 1.1p 1.1p 1.6p
diluted
There is no material difference between the result as disclosed in the profit
and loss account and the result on an unmodified historical cost basis.
The recognised gains and losses for the periods concerned are represented by
the results shown above, together with a net loss of #327,000 (2002 #651,000)
in respect of foreign currency retranslation of the net assets of overseas
subsidiaries.
*The 2002 and 2003 comparative figures for administrative expenses have been
restated to include expenditure relating to restructuring costs, previously
separately analysed, following completion of the restructuring programme and
onerous lease provisions (2003 only). There is no net effect on operating
profit.
PLANIT HOLDINGS PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 31 OCTOBER 2003
1. Nature of financial information
The interim information has been prepared on the basis of accounting policies set out in the Group's
2003 published accounts.
The preceding unaudited financial information for each half year does not constitute full accounts
within the meaning of Section 225 of the Companies Act and has not been delivered to the Registrar of
Companies. The figures for the year ended 30 April 2003 are derived from the audited consolidated accounts
published for that year, which have been delivered to the Registrar of Companies. The auditors' report on
those accounts was unqualified.
2. Segmental information
Unaudited Unaudited Audited
By origin Half year ended Half year ended Year ended
31 October 03 31 October 02* 30 April 03*
#000 #000 #000
Turnover
Acquisition - Huckerby Royall 433 -
Systems
USA operations - continuing 4,437 5,108 9,699
UK & European operations - continuing 8,175 5,000 10,084
13,045 10,108 19,783
Impact of foreign exchange* - 414 634
13,045 10,522 20,417
Operating profit
Acquisition - Huckerby Royall 38 - -
Systems
USA operations - continuing (22) 248 (658)
UK and European operations - continuing 945 474 191
961 722 (466)
Impact of foreign exchange* - 70 34
961 792 (432)
Operating profit before Goodwill
Amortisation
Acquisition - Huckerby Royall 73 - -
Systems
USA operations - continuing 240 533 (92)
UK and European operations - continuing 1,312 703 666
1,625 1,236 574
Impact of foreign exchange* - 70 34
1,625 1,306 608
* Foreign currency results for the period 31 October 2002 and 30 April 2003 have been retranslated at
exchange rates used for the period ending 31 October 2003 to facilitate the comparison of results
3. Taxation
The charge for the half year to 31 October 2003 is based on an estimated current year tax rate of 34% of
accounting profits.
PLANIT HOLDINGS PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 31 OCTOBER 2003
4. Earnings per share
Basic earnings per 10p ordinary share have been calculated on the profit after taxation and minority
interests of #357,000 (2002 #317,000) and the weighted average number of ordinary shares in issue
during the period of 90,384,498 (2002 83,306,622).
Basic adjusted earnings per 10p ordinary share is calculated on the adjusted profit after taxation and
minority interests of #1,021,000 (2002 #970,000) after having excluded goodwill amortisation of #664,000 (2002
#514,000), (2002 also restructuring costs #199,000) and the weighted average number of ordinary shares in issue
during the period.
The diluted earnings per share calculations are calculated based on the respective earnings and adjusted
earnings stated above. The weighted average number of ordinary shares in issue during the period,
together with dilutive potential ordinary shares amounted to 91,226,736 (2002 84,387,902).
5. A copy of this announcement will be issued to shareholders as soon as practicable and copies are
available from the Company's Registered Office at Inca House, Eureka Science and Business Park,
Ashford, Kent, TN25 4AB
PLANIT HOLDINGS PLC
CONSOLIDATED BALANCE SHEET
AS AT 31 OCTOBER 2003
Unaudited Unaudited Audited
31 October 03 31 October 02 30 April 03
#000 #000 #000
Fixed assets
Intangible assets 21,919 17,239 20,368
Tangible assets 1,512 1,452 1,486
23,431 18,691 21,854
Current assets
Stocks 174 290 176
Debtors 6,125 5,490 6,215
Cash at bank and in hand 3,930 3,584 4,235
10,229 9,364 10,626
Creditors- amounts falling due within one year (6,963) (5,849) (6,146)
Net current assets 3,266 3,515 4,480
Total assets less current liabilities 26,697 22,206 26,334
Creditors- amounts falling due after more than one (7,688) (5,420) (8,546)
year
Provisions for liabilities and charges (94) - (364)
Deferred income (2,776) (974) (2,162)
Net assets 16,139 15,812 15,262
Capital and reserves
Called up share capital 9,166 8,331 8,862
Share premium account 14,348 13,463 13,923
Other reserve 209 - 209
Profit and Loss account (8,195) (6,408) (8,213)
Equity shareholders' funds 15,528 15,386 14,781
Equity minority interests 611 426 481
16,139 15,812 15,262
PLANIT HOLDINGS PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SI X MONTHS ENDED 31 OCTOBER 2003 Unaudited Unaudited Audited
Half year ended Half year ended Year ended
31 October 03 31 October 02 30 April 03
Notes #'000 #'000 #'000
Net cash inflow from operating activities (A) 1,255 1,441 2,915
Returns on investment and servicing of finance
Net interest paid (211) (148) (308)
Interest element of finance lease rental (7) (2) (7)
payments
(218) (150) (315)
Taxation
Corporation tax repayments/(payments) 256 (541) (958)
256 (541) (958)
Capital expenditure
Purchase of tangible fixed assets (234) (444) (666)
Sale of tangible fixed assets 47 55 102
(187) (389) (564)
Acquisitions and disposals
Huckerby Royall Systems acquisition payment and (286) - -
related costs
Radan acquisition payment and related costs (744) - (2,464)
Lignatec acquisition payment and related costs (130) - (72)
Licom acquisition payment and related costs - (26) -
Cash acquired in acquisitions 8 - 310
Disposal of subsidiary undertaking - - 176
(1,152) (26) (2,050)
Equity dividend paid (366) (333) (333)
Net cash inflow/(outflow) before use of liquid resources (412) 2 (1,305)
and financing
Management of liquid resources
Decrease/(increase) in short term deposits - 5,000 5,000
Financing
Proceeds from issue of shares for cash 10 - -
Loan notes repaid - (4,844) (4,844)
Capital element of finance lease payments (39) (10) (77)
New bank loans received - - 3,598
Bank loan repaid (647) (671) (1,314)
(676) (5,525) (2,637)
Decrease in cash (B) (1,088) (523) 1,058
PLANIT HOLDINGS PLC
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 OCTOBER 2003
(A) Reconciliation of operating profit to net
cash inflow from operating activities:
Unaudited Unaudited Audited
Half year ended Half year ended Year ended
31 October 03 31 October 02 30 April 03
Continuing operations #'000 #'000 #'000
Operating profit/(loss) 961 792 (432)
Goodwill amortisation 664 514 1,041
Depreciation 332 252 555
Decrease/(increase) in stocks 2 33 165
Decrease/(increase) in debtors 103 456 2,026
Decrease in creditors (804) (604) (500)
(Profit)/loss on fixed asset disposal (3) (2) 60
Net cash inflow from operating activities 1,255 1,441 2,915
(B) Reconciliation of net (debt)/funds
(Decrease)/increase in cash (1,088) (523) 1,058
Decrease/(increase) in debt and finance 686 5,527 (2,207)
leases
(Decrease)/increase in liquid resources - (5,000) (5,000)
Change in net funds/(debt) resulting from (402) 4 (6,149)
cash flow
Non-cash debt movements 324 268 282
Loan notes - - 4,844
Increase/(decrease) in net funds/(debt) in (78) 272 (1,023)
the period
Net (debt)/funds at start of period (6,657) (5,634) (5,634)
Net (debt) at close of period (6,735) (5,634) (6,657)
(C) Analysis of net (debt)/funds movement
Position Cash Non-cash Position
30 April 03 flow items 31 October 03
#'000 #'000 #'000 #'000
Cash at bank 1,735 (305) - 1,430
Overdraft (1,446) (783) - (2,229)
289 (1,088) - (799)
Debt due within 1 year
Bank loans (1,377) 647 (564) (1,294)
HP and lease liability (96) 39 (31) (88)
Loan notes - - - -
Debt due over 1 year
Loan notes (2,400) - - (2,400)
Bank loans (5,506) - 977 (4,529)
HP and lease liability (67) - (58) (125)
Bank deposits included in cash 2,500 - - 2,500
(6,657) (402) 324 (6,735)
This information is provided by RNS
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