TIDMENF 
 
RNS Number : 4089I 
Enfis Group PLC 
11 March 2010 
 

 
Enfis Group plc ("Enfis" or the "Group") 
 
Preliminary results for the year ended 31 December 2009 
 
Enfis, a leader in the design, development and manufacture of intelligent high 
power light emitting diode (LED) arrays and smart light engines, today announces 
its preliminary results for the year ended 31 December 2009. 
 
Financial Highlights 
 
·      Revenue of GBP0.7m (2008: GBP1.6m) 
 
·      Loss after tax of GBP1.8m (2008: Loss of GBP1.3m) 
 
·      Year end cash of GBP1.0m and total borrowings of GBP58k 
 
·      Incurred reorganisation costs of GBP0.3m in 2009 
 
·      Corporation tax losses at 31 December 2009 - GBP3.3m 
 
Operational Highlights 
 
·      Appointment of Ceri Jones as Chief Executive in August 2009 
 
·      Appointment of Drew Nelson as Interim Non Executive Chairman in November 
2009 
 
·      Appointment of Head of Engineering & Manufacturing in December 2009 
 
·      Strategic review results announced February 2010 
 
·      Cash burn was reduced in H2 2009 through a reduction in headcount and 
overheads, the closure of North American offices and the rationalization of UK 
and Shanghai premises 
 
·      Business continues to focus on growth markets for its core product range 
 
·      Highly successful global showcase of Enfis' multicolour light engine 
technology in illuminating the roof of the Yas Island Marina complex for the Abu 
Dhabi Formula One Grand Prix, the largest LED display in the World 
 
·      Multiple large scale project interest resulting from global TV exposure 
 
·      Order intake growing and ahead of same period in 2009 
 
 
 
 
Enquiries: 
 
+------------------------------------------+--------------------+ 
| Enfis Group plc (www.enfis.com)          | Tel: 01792 485660  | 
+------------------------------------------+--------------------+ 
| Ceri Jones, Chief Executive              |                    | 
+------------------------------------------+--------------------+ 
|                                          |                    | 
+------------------------------------------+--------------------+ 
| Execution Noble & Company Limited        | Tel: 020 7456 9191 | 
+------------------------------------------+--------------------+ 
| John Llewellyn-Lloyd / Sam Reynolds      |                    | 
+------------------------------------------+--------------------+ 
 
2009 Performance and Board Changes 
The Group's performance for 2009 was short of both board and shareholder 
expectations. 
Sales for the year were GBP0.7m, down from GBP1.6m in 2008, and gross margin 
declined from 37% to 30% year on year. The loss after tax was GBP1.8m compared 
to a loss in 2008 of GBP1.3m. 
Shaun Oxenham stepped down as Executive Chairman at the end of November 2009, 
having relinquished his position as CEO in August 2009. I joined the board as 
CEO in August 2009, and at the end of November, Dr Drew Nelson became Interim 
Non Executive Chairman. 
Strategic Review 
In light of disappointing trading, the board instigated at the end of November 
an immediate strategic review of its business and corporate strategy. The 
results of this review were published on 17 February 2010 and the key 
conclusions were as follows: 
·      The market opportunity for LED based Solid State Lighting (SSL) continues 
to grow strongly as a result of powerful energy saving initiatives across the 
globe and driven by political and economic imperatives; 
·      The Group's products and technology directly address the markets for 
intelligent, high power colour changing applications, such as architectural, 
entertainment, medical and high end retail lighting; 
·      Lower cost product engineering would enable larger sectors of these 
markets to become immediately accessible to the Group; 
·      Sales and marketing resource should be targeted at value added resellers 
and key direct customer engagement, rather than through non value added 
distribution channels; 
·      The Group's cash balances are sufficient for the Group's working capital 
requirements as envisaged in the forward business plan; 
·      The Group will seek strong customer and supply partnerships to further 
build its product portfolio, and thereby gain access to increasingly larger 
sectors of the SSL marketplace; and 
·      The Group will also seek to build sales rapidly by means of other 
strategic partnerships and corporate developments. 
Markets 
The Group's resources are now focused on the high power lighting sector 
incorporating highly intelligent monitoring and sensing solutions, for which the 
Group's IP and know-how is particularly relevant. 
The key markets now being targeted fall within the following sectors: 
·      Entertainment lighting (e.g. film and TV production, concert and 
theatre); 
·      Medical lighting; 
·      Exterior and interior architectural lighting; 
·      High end retail lighting; and 
·      Medical and industrial applications (e.g. the use of ultraviolet light 
for industrial and medical curing processes). 
Products 
The Group's Uno, Uno Plus and Quattro Mini LED array products are attractive to 
the above markets where they place a premium on one or more of: 
·      Very compact high power light source; 
·      Exceptional colour quality; 
·      Exceptional colour control; and 
·      Built in intelligence for sensing, control and communication. 
The Group is concentrated on the light engine part of the value chain. This will 
allow Enfis to supply a large range of end user applications into the lighting 
fixture, medical and industrial markets and the development of strategic 
partnerships with leading original equipment manufacturers ("OEMs"). 
Product development effort is now focused on materially reducing the cost and 
enhancing both the functionality and flexibility of current and next-generation 
products. It is expected that part of these development costs will be funded 
through access to government and EU grants and other innovation funding. 
Prospective Customers and Channels to Market 
Targeting high quality OEMs selling branded products in the above identified 
markets requires working directly with value added re-sellers. 
Such customers can require significant up-front product development and 
integration support. The Group is taking steps to expand its distribution 
network of value-added re-sellers in North America, Europe and Asia. It is also 
investing time and resource into improving the Enfis product knowledge of its 
existing value-added re-sellers. These re-sellers have technically qualified 
staff capable of providing high quality support to their customers in the use 
and integration of the Group's products. 
At the same time the Group has expanded its internal technical sales support 
resource to provide enhanced support to value added re-sellers and certain high 
volume key direct accounts. 
IP 
The Group will continue to pursue its strategy of developing a portfolio of 
strong IP through patents and know how, thus enhancing its competitive position 
in the marketplace. 
Partnerships 
In addition to developing powerful partnerships directly with customers and 
value added re-sellers, the Group will pursue a policy of developing technology 
partnerships with other companies in the lighting food chain in order to further 
enhance and diversify the Group's product range and technology base. In 
addition, the Group will seek to increase sales rapidly by other strategic 
partnerships and corporate developments. 
Financial 
The Group's cash balance at the year end was GBP1m, and total borrowings were 
GBP58k. 
The Group has reduced its cash burn through closure of its North American office 
and rationalisation of its UK and Shanghai premises. A Head of Engineering and 
Manufacturing and additional technical sales support staff has been recruited. 
The ongoing costs of new staff recruitment in key areas have been more than 
matched by payroll cost reductions elsewhere in the business. 
The board has reviewed the Group's funding position for the period through to 31 
March 2011 and has concluded that it is appropriate to prepare the Group's 
accounts on the going concern basis. Further details of the key assumptions 
underlying the Group's projections for the period through to 31 March 2011 are 
set out later in this announcement. 
2010 Outlook 
The Group has recently reviewed product development plans with several of its 
key customers and prospective customers. Overall there are signs that 
development activity amongst these businesses is rising with potential benefit 
for Enfis in 2010. 
The Group has substantially completed re-aligning its resources to fully focus 
on the significant opportunities in its selected markets. New recruits have 
settled in well and everyone is focused on achieving a material improvement in 
the Group's performance in 2010. 
The highly successful Abu Dhabi Formula One Grand Prix in November, which 
showcased Enfis' light engine technology to the world by lighting up the roof of 
the Yas Island Marina Complex, has led to much greater awareness and interest in 
the power of Enfis' multicolour light engine technology, and multiple projects 
are now under consideration using Enfis products and technology. Whilst it is 
early in the year, and significant further improvement is expected, it is 
encouraging to note that the Group's order intake is growing month on month and 
for the first 2 months of 2010 is ahead of the same period in 2009. 
 
Ceri Jones 
Chief Executive 
Enfis Group plc 
Consolidated Income Statement 
for the year ended 31 December 2009 
 
+-----------------------------------------------+-----------+----------+----------+ 
|                                               |    2009   |          |    2008  | 
+-----------------------------------------------+-----------+----------+----------+ 
|                                               |  GBP'000  |          | GBP'000  | 
+-----------------------------------------------+-----------+----------+----------+ 
|                                               |           |          |          | 
+-----------------------------------------------+-----------+----------+----------+ 
| Revenue                                       |      713  |          |   1,628  | 
+-----------------------------------------------+-----------+----------+----------+ 
| Cost of sales                                 |     (497) |          |  (1,023) | 
+-----------------------------------------------+-----------+----------+----------+ 
| Gross profit                                  |      216  |          |     605  | 
+-----------------------------------------------+-----------+----------+----------+ 
|                                               |           |          |          | 
+-----------------------------------------------+-----------+----------+----------+ 
| Administrative expenses                       |   (2,387) |          |  (2,608) | 
+-----------------------------------------------+-----------+----------+----------+ 
| Other income                                  |       80  |          |      72  | 
+-----------------------------------------------+-----------+----------+----------+ 
| Operating loss                                |  (2,091)  |          |  (1,931) | 
+-----------------------------------------------+-----------+----------+----------+ 
|                                               |           |          |          | 
+-----------------------------------------------+-----------+----------+----------+ 
| Finance income                                |       16  |          |      54  | 
+-----------------------------------------------+-----------+----------+----------+ 
| Finance costs                                 |     (15)  |          |     (21) | 
+-----------------------------------------------+-----------+----------+----------+ 
|                                               |        1  |          |      33  | 
+-----------------------------------------------+-----------+----------+----------+ 
|                                               |           |          |          | 
+-----------------------------------------------+-----------+----------+----------+ 
| Loss before income tax                        |   (2,090) |          | (1,898)  | 
+-----------------------------------------------+-----------+----------+----------+ 
|                                               |           |          |          | 
+-----------------------------------------------+-----------+----------+----------+ 
| Income tax credit                             |      326  |          |     556  | 
+-----------------------------------------------+-----------+----------+----------+ 
|                                               |           |          |          | 
+-----------------------------------------------+-----------+----------+----------+ 
| Loss for the year                             |   (1,764) |          |  (1,342) | 
+-----------------------------------------------+-----------+----------+----------+ 
|                                               |           |          |          | 
+-----------------------------------------------+-----------+----------+----------+ 
| Total comprehensive loss for the year         |   (1,764) |          |  (1,342) | 
+-----------------------------------------------+-----------+----------+----------+ 
|                                               |           |          |          | 
+-----------------------------------------------+-----------+----------+----------+ 
| Attributable to:                              |           |          |          | 
+-----------------------------------------------+-----------+----------+----------+ 
| Equity holders of the company                 |   (1,764) |          |  (1,342) | 
+-----------------------------------------------+-----------+----------+----------+ 
|                                               |           |          |          | 
+-----------------------------------------------+-----------+----------+----------+ 
| Loss per share for loss attributable to       |           |          |          | 
+-----------------------------------------------+-----------+----------+----------+ 
| the equity holders of the company during the  |   (12.6)p |          |  (14.4)p | 
| year                                          |           |          |          | 
+-----------------------------------------------+-----------+----------+----------+ 
Enfis Group plc 
 
Consolidated Balance Sheet 
as at 31 December 2009 
 
+-----------------------------------------------+-----------+----------+---------+ 
|                                               |      2009 |          |    2008 | 
+-----------------------------------------------+-----------+----------+---------+ 
|                                               |   GBP'000 |          | GBP'000 | 
+-----------------------------------------------+-----------+----------+---------+ 
| Assets                                        |           |          |         | 
+-----------------------------------------------+-----------+----------+---------+ 
| Non current assets                            |           |          |         | 
+-----------------------------------------------+-----------+----------+---------+ 
| Property, plant & equipment                   |      138  |          |    218  | 
+-----------------------------------------------+-----------+----------+---------+ 
| Intangible assets                             |      380  |          |    540  | 
+-----------------------------------------------+-----------+----------+---------+ 
|                                               |      518  |          |    758  | 
+-----------------------------------------------+-----------+----------+---------+ 
| Current assets                                |           |          |         | 
+-----------------------------------------------+-----------+----------+---------+ 
| Inventories                                   |      237  |          |    351  | 
+-----------------------------------------------+-----------+----------+---------+ 
| Trade and other receivables                   |      253  |          |    219  | 
+-----------------------------------------------+-----------+----------+---------+ 
| Corporation tax receivable                    |      331  |          |    271  | 
+-----------------------------------------------+-----------+----------+---------+ 
| Cash and cash equivalents                     |   1,029   |          |    641  | 
+-----------------------------------------------+-----------+----------+---------+ 
|                                               |   1,850   |          |  1,482  | 
+-----------------------------------------------+-----------+----------+---------+ 
| Total assets                                  |   2,368   |          |  2,240  | 
+-----------------------------------------------+-----------+----------+---------+ 
|                                               |           |          |         | 
+-----------------------------------------------+-----------+----------+---------+ 
| Equity                                        |           |          |         | 
+-----------------------------------------------+-----------+----------+---------+ 
| Capital and reserves attributable to equity   |           |          |         | 
| holders of the company                        |           |          |         | 
+-----------------------------------------------+-----------+----------+---------+ 
| Ordinary shares                               |   1,498   |          |    938  | 
+-----------------------------------------------+-----------+----------+---------+ 
| Share premium                                 |   5,294   |          |  4,067  | 
+-----------------------------------------------+-----------+----------+---------+ 
| Share option reserve                          |      226  |          |    144  | 
+-----------------------------------------------+-----------+----------+---------+ 
| Reverse acquisition reserve                   |   2,284   |          |  2,284  | 
+-----------------------------------------------+-----------+----------+---------+ 
| Retained losses                               |   (7,531) |          | (5,767) | 
+-----------------------------------------------+-----------+----------+---------+ 
| Total equity                                  |  1,771    |          |  1,666  | 
+-----------------------------------------------+-----------+----------+---------+ 
|                                               |           |          |         | 
+-----------------------------------------------+-----------+----------+---------+ 
| Liabilities                                   |           |          |         | 
+-----------------------------------------------+-----------+----------+---------+ 
| Non-current liabilities                       |           |          |         | 
+-----------------------------------------------+-----------+----------+---------+ 
| Deferred income                               |        5  |          |     35  | 
+-----------------------------------------------+-----------+----------+---------+ 
| Borrowings                                    |       28  |          |     58  | 
+-----------------------------------------------+-----------+----------+---------+ 
|                                               |        33 |          |     93  | 
+-----------------------------------------------+-----------+----------+---------+ 
|                                               |           |          |         | 
+-----------------------------------------------+-----------+----------+---------+ 
| Current liabilities                           |           |          |         | 
+-----------------------------------------------+-----------+----------+---------+ 
| Trade and other payables                      |      356  |          |    433  | 
+-----------------------------------------------+-----------+----------+---------+ 
| Borrowings                                    |       30  |          |     48  | 
+-----------------------------------------------+-----------+----------+---------+ 
| Provisions for other liabilities and charges  |      178  |          |         | 
|                                               |           |          |    -    | 
+-----------------------------------------------+-----------+----------+---------+ 
|                                               |      564  |          |    481  | 
+-----------------------------------------------+-----------+----------+---------+ 
| Total liabilities                             |      597  |          |    574  | 
+-----------------------------------------------+-----------+----------+---------+ 
|                                               |           |          |         | 
+-----------------------------------------------+-----------+----------+---------+ 
| Total equity and liabilities                  |   2,368   |          |  2,240  | 
+-----------------------------------------------+-----------+----------+---------+ 
Enfis Group plc 
 
Consolidated Cash Flow Statement 
for the year ended 31 December 2009 
 
+-----------------------------------------------+---------+----------+----------+ 
|                                               |    2009 |          |     2008 | 
+-----------------------------------------------+---------+----------+----------+ 
|                                               | GBP'000 |          |  GBP'000 | 
+-----------------------------------------------+---------+----------+----------+ 
| Cash flows from operating activities          |         |          |          | 
+-----------------------------------------------+---------+----------+----------+ 
| Cash used in operations                       | (1,571) |          |  (1,812) | 
+-----------------------------------------------+---------+----------+----------+ 
| Interest paid                                 |    (15) |          |     (21) | 
+-----------------------------------------------+---------+----------+----------+ 
| Tax received                                  |    266  |          |     284  | 
+-----------------------------------------------+---------+----------+----------+ 
| Net cash used in operating activities         | (1,320) |          | (1,549)  | 
+-----------------------------------------------+---------+----------+----------+ 
|                                               |         |          |          | 
+-----------------------------------------------+---------+----------+----------+ 
| Cash flows from investing activities          |         |          |          | 
+-----------------------------------------------+---------+----------+----------+ 
| Purchase of property, plant and equipment     |     (3) |          |     (58) | 
+-----------------------------------------------+---------+----------+----------+ 
| Purchase of intangible assets                 |    (94) |          |    (316) | 
+-----------------------------------------------+---------+----------+----------+ 
| Receipt of government grants                  |     50  |          |      42  | 
+-----------------------------------------------+---------+----------+----------+ 
| Interest received                             |     16  |          |      54  | 
+-----------------------------------------------+---------+----------+----------+ 
| Net cash used in investing activities         |    (31) |          |    (278) | 
+-----------------------------------------------+---------+----------+----------+ 
|                                               |         |          |          | 
+-----------------------------------------------+---------+----------+----------+ 
| Cash flows from financing activities          |         |          |          | 
+-----------------------------------------------+---------+----------+----------+ 
| Proceeds from the issuance of ordinary shares |  1,787  |          |     527  | 
+-----------------------------------------------+---------+----------+----------+ 
| Repayment of borrowings                       |    (30) |          |     (30) | 
+-----------------------------------------------+---------+----------+----------+ 
| Finance lease principal repayments            |    (18) |          |     (28) | 
+-----------------------------------------------+---------+----------+----------+ 
| Net cash generated from financing activities  |  1,739  |          |     469  | 
+-----------------------------------------------+---------+----------+----------+ 
|                                               |         |          |          | 
+-----------------------------------------------+---------+----------+----------+ 
| Net increase/(decrease) in cash and cash      |     388 |          |  (1,358) | 
| equivalents                                   |         |          |          | 
+-----------------------------------------------+---------+----------+----------+ 
|                                               |         |          |          | 
+-----------------------------------------------+---------+----------+----------+ 
| Cash and cash equivalents at the beginning of |     641 |          |   1,999  | 
| the year                                      |         |          |          | 
+-----------------------------------------------+---------+----------+----------+ 
|                                               |         |          |          | 
+-----------------------------------------------+---------+----------+----------+ 
| Cash and cash equivalents at the end of the   |   1,029 |          |     641  | 
| year                                          |         |          |          | 
+-----------------------------------------------+---------+----------+----------+ 
Enfis Group plc 
 
Consolidated Statement of Changes in Equity 
for the year ended 31 December 2009 
 
 
+----------+----------+---------+----------------------------+----------+-------------+----------+---------+ 
|          | Ordinary |   Share |                      Share |          |     Reverse | Retained |   Total | 
|          |    share |         |                     option |          | acquisition |          |         | 
| GBP'000  |  capital | premium |                    reserve |    Share |     reserve |   losses |         | 
|          |          |         |                            |          |             |          |         | 
|          |          |         |                            | warrants |             |          |         | 
+----------+----------+---------+----------------------------+----------+-------------+----------+---------+ 
|          |      GBP |     GBP |                        GBP |      GBP |         GBP |      GBP |     GBP | 
+----------+----------+---------+----------------------------+----------+-------------+----------+---------+ 
|          |          |         |                            |          |             |          |         | 
+----------+----------+---------+----------------------------+----------+-------------+----------+---------+ 
| Balance  |      894 |   3,585 |                         62 |        - |       2,284 |  (4,425) |   2,400 | 
| at 1     |          |         |                            |          |             |          |         | 
| January  |          |         |                            |          |             |          |         | 
| 2008     |          |         |                            |          |             |          |         | 
+----------+----------+---------+----------------------------+----------+-------------+----------+---------+ 
|          |          |         |                            |          |             |          |         | 
+----------+----------+---------+----------------------------+----------+-------------+----------+---------+ 
| Issue    |       44 |     482 |                          - |        - |           - |        - |    526  | 
| of new   |          |         |                            |          |             |          |         | 
| shares   |          |         |                            |          |             |          |         | 
+----------+----------+---------+----------------------------+----------+-------------+----------+---------+ 
|          |          |         |                            |          |             |          |         | 
+----------+----------+---------+----------------------------+----------+-------------+----------+---------+ 
| Share    |        - |       - |                         82 |        - |           - |        - |      82 | 
| option   |          |         |                            |          |             |          |         | 
| charge   |          |         |                            |          |             |          |         | 
+----------+----------+---------+----------------------------+----------+-------------+----------+---------+ 
|          |          |         |                            |          |             |          |         | 
+----------+----------+---------+----------------------------+----------+-------------+----------+---------+ 
| Loss     |        - |       - |                          - |        - |           - |  (1,342) | (1,342) | 
| for      |          |         |                            |          |             |          |         | 
| year     |          |         |                            |          |             |          |         | 
+----------+----------+---------+----------------------------+----------+-------------+----------+---------+ 
|          |          |         |                            |          |             |          |         | 
+----------+----------+---------+----------------------------+----------+-------------+----------+---------+ 
| Balance  |      938 |   4,067 |                        144 |        - |       2,284 |  (5,767) |   1,666 | 
| at 31    |          |         |                            |          |             |          |         | 
| December |          |         |                            |          |             |          |         | 
| 2008     |          |         |                            |          |             |          |         | 
+----------+----------+---------+----------------------------+----------+-------------+----------+---------+ 
|          |          |         |                            |          |             |          |         | 
+----------+----------+---------+----------------------------+----------+-------------+----------+---------+ 
|          |          |         |                            |          |             |          |         | 
+----------+----------+---------+----------------------------+----------+-------------+----------+---------+ 
| Issue    |      560 |   1,227 |                          - |        - |           - |        - |   1,787 | 
| of new   |          |         |                            |          |             |          |         | 
| shares   |          |         |                            |          |             |          |         | 
+----------+----------+---------+----------------------------+----------+-------------+----------+---------+ 
|          |          |         |                            |          |             |          |         | 
+----------+----------+---------+----------------------------+----------+-------------+----------+---------+ 
| Share    |        - |       - |                         82 |        - |           - |        - |      82 | 
| option   |          |         |                            |          |             |          |         | 
| charge   |          |         |                            |          |             |          |         | 
+----------+----------+---------+----------------------------+----------+-------------+----------+---------+ 
|          |          |         |                            |          |             |          |         | 
+----------+----------+---------+----------------------------+----------+-------------+----------+---------+ 
| Loss     |        - |       - |                          - |        - |           - |  (1,764) | (1,764) | 
| for      |          |         |                            |          |             |          |         | 
| year     |          |         |                            |          |             |          |         | 
+----------+----------+---------+----------------------------+----------+-------------+----------+---------+ 
|          |          |         |                            |          |             |          |         | 
+----------+----------+---------+----------------------------+----------+-------------+----------+---------+ 
| Balance  |    1,498 |   5,294 |                        226 |        - |       2,284 |  (7,531) |   1,771 | 
| at 31    |          |         |                            |          |             |          |         | 
| December |          |         |                            |          |             |          |         | 
| 2009     |          |         |                            |          |             |          |         | 
+----------+----------+---------+----------------------------+----------+-------------+----------+---------+ 
Enfis Group PLC 
Notes to the summarised consolidated financial statements for the year ended 31 
December 2009 
 
 
1.    Summarised Consolidated Financial Statements 
The summarised consolidated financial statements are for the twelve months ended 
31 December 2009. 
They have been prepared under the historical cost convention, except for the 
revaluation of certain financial instruments. They have been prepared in 
accordance with applicable accounting policies and are based on IFRS in issue as 
adopted by the European Union and in effect at 31 December 2009. 
2.    Report & Accounts for the year ended 31 December 2009 
The Report & Accounts will be posted to all shareholders of the company shortly, 
and will be available to download on the company's website (www.enfis.com ). 
The Report & Accounts will also be available for inspection by the public at the 
registered office of the company during normal business hours on any weekday. 
Further copies will be available on request from Enfis Group PLC, Technium 2, 
Kings Road, Swansea Waterfront, Swansea SA1 8PJ. 
The financial information set out above does not constitute statutory accounts 
as defined in Section 434 of the UK Companies Act 2006. The consolidated balance 
sheet at 31 December 2009, the consolidated income statement, the consolidated 
statement of recognised income and expense, the consolidated cash flow statement 
and associated notes for the year then ended have been extracted from the 
group's statutory accounts for the year to 31 December 2009. 
The statutory accounts for the year ended 31 December 2008 and the year ended 31 
December 2009 received audit reports which were unqualified. The statutory 
accounts for the period ended 31 December 2008 have been delivered to the 
Registrar of Companies and did not contain a statement under section 237(2) or 
(3) of the Companies Act 1985. The statutory accounts for the year ended 31 
December 2009 were approved by the Directors on [5] March 2010, but have not yet 
been delivered to the Registrar of Companies. 
3. Going Concern 
The directors believe that it is appropriate to adopt the going-concern basis in 
preparing the group's financial statements for the year to 31 December 2009. In 
reaching this conclusion, the directors have considered for both the company and 
the Group, current trading and the current and projected funding position for 
the period of just over 12 months from the date of approval of the financial 
statements through to 31 March 2011. 
Current Trading 
 
The company experienced a difficult trading year to 31 December 2009, with 
reported annual revenue significantly lower than originally expected at the 
start of the period. 
 
Enfis markets are highly dependent on investment in product innovation and 
capital equipment expenditure by its customers and a number of projects were 
subject to deferral as a result of cost cutting driven by the prevailing 
economic climate. 
 
A number of actions have been taken to reduce cash burn and are directly 
benefiting Enfis in 2010. Specifically, headcount in the business has been 
reduced, the North American office has been closed and UK and Shanghai office 
costs have been materially reduced. 
 
Current Funding 
 
Enfis cash balances at 31 December 2009 were slightly in excess of GBP1m. 
 
Financial gearing is low and limited to a GBP58,075 loan as at 31 December 2009. 
This loan is repaid on a monthly basis and will be fully paid off in November 
2011 
 
Projected Funding 
 
The cash flow projections show that the Group can continue to operate utilizing 
existing cash resources and anticipated grant and other innovation funding for 
the period of the projections. 
 
The substantial achievement of these projections is subject to certain 
uncertainties which are described below. 
 
Funding Innovation 
 
Enfis continues to pursue its strategy of developing a portfolio of strong IP 
through patents and know how, and investing in enhancements in its product 
portfolio. Historically the company has been successful in utilising grant and 
other innovation funding programs to partially fund this capital and revenue 
expenditure, and the financial projections assume that this will continue to be 
the case. 
 
Working Capital 
 
The Group's balance sheet at 31 December 2009 includes trade debtors of 
GBP166,750 due from sales made in June 2009 on extended credit terms. The Group 
continues to engage with both the customers concerned and receipt of the 
GBP166,750 is assumed in the Group's financial projections for the period 
through to 31 March 2011. 
 
Future Trading 
 
The projections include assumptions on the amount and timing of revenue and 
gross margin that Enfis expects to achieve during the period of the projections. 
The current economic climate has created an environment where accurate 
forecasting is especially difficult, but to the extent there is a shortfall in 
revenue and gross margin it is likely to be at least partially offset by a 
reduction in working capital requirements. 
 
Enfis has to date been a loss making company and as with any business this is a 
situation that cannot persist indefinitely without additional equity funding. No 
additional equity funding has been assumed in the cash flow projections, but 
should it be required there can be no guarantee either as to its availability or 
the terms on which it would be made available. 
 
Conclusion 
 
The Board has carried out a strategic review of Enfis which was reported to 
shareholders on 17 February 2010. 
 
The market opportunity for LED based Solid State lighting (SSL) continues to 
grow and Enfis product and technology offering directly addresses the markets 
for intelligent high power colour changing applications. 
 
The current product offerings are being strengthened as are the channels to the 
targeted customer base. The potential is clear. 
 
The directors have prepared cash flow projections for the period 1 January 2010 
to 31 March 2011. These projections show the Group is able to operate within the 
its current cash resources and continue product investment partially funded by 
grants and other innovation funding. 
 
It is acknowledged that the achievement of these projections is subject to 
market and operational uncertainty as outlined above. Nevertheless, after taking 
account of the Group's current funding position, its cash flow projections and 
the risks and uncertainties associated with these, the directors have a 
reasonable expectation that the Group and company has access to adequate 
resources to continue in operational existence for the foreseeable future. For 
these reasons they continue to prepare the financial statements on a 
going-concern basis. These financial statements do not include any adjustments 
that would result from the going-concern basis of preparation being 
inappropriate. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 FR LLFVAVDIILII 
 

Enfis Group (LSE:ENF)
Historical Stock Chart
From May 2024 to Jun 2024 Click Here for more Enfis Group Charts.
Enfis Group (LSE:ENF)
Historical Stock Chart
From Jun 2023 to Jun 2024 Click Here for more Enfis Group Charts.