Final Results
July 24 2001 - 5:10AM
UK Regulatory
RNS Number:3781H
Feedback PLC
24 July 2001
Feedback PLC
- Final Results for the year ended 31st March 2001 -
Chairman's Statement
The Group has had a difficult trading year and on turnover similar to the
previous year the Group reached a breakeven position. Whilst there was a
second half recovery from losses of #352,000 incurred at the half year, the
outcome for the year was disappointing. The second half saw a marked
improvement in the results of Feedback Instruments and Feedback Incorporated
which, together with the Data company, were all profitable in the year.
However, the losses attributable for the year at TekniCAL, our joint venture
company, offset the profits made by the other Group subsidiaries. I will refer
to TekniCAL later in my statement.
The Group had strong export business which represented 64% of turnover with
equipment sales in over 70 countries. There was a significant increase in
business in US Dollar trading areas, Americas, Middle and the Far East,
contrasting with a reduction in business from Continental Europe. We believe
this is due in part to the relative values of Sterling, the US Dollar and the
Euro.
Feedback Instruments
Both turnover and profits at this Company were broadly in line with the
previous year. I indicated at the interim stage that overall margins at the
Instruments company had been under pressure in the first half year due to an
adverse product mix. I can now report that in the second half there was a more
favourable balance between factored and own manufactured product which
resulted in a marked improvement in margins achieved.
Considerable progress has been made in product development, particularly in
software areas, in the year. This, together with the increased sales and
marketing resource already in place, should enable this company to exploit
more fully opportunities in the educational market.
I would now like to address the performance and future of TekniCAL.
TekniCAL represents both a major opportunity for the future of the Group and a
significant short term challenge. We firmly believe that products already
developed (Virtual Campus and Virtual Training Manager) meet a requirement in
both the education and corporate training markets for the delivery of courses
by way of Internet/Intranet technologies in the future. Interest in the area
has been very strong but did not materialise as firm orders during the year,
due in part to a review by Governmental Advisory bodies that, once again,
delayed the release of funding. I mentioned in my Interim Statement that the
future funding of TekniCAL was under consideration. After investigating
several alternatives, it has become clear that the future for TekniCAL and
Feedback would be best served by Feedback acquiring the University of
Lincolnshire and Humberside's (our joint venture partner) shareholding in
TekniCAL.
Negotiations to achieve this are currently in progress and we will keep
shareholders informed of developments.
We believe it is worth repeating that the combination of the Feedback
Instruments hardware/software offerings together with TekniCAL's Internet
based virtual learning environments and delivery systems place us in a strong
position in the educational/training markets for the future.
Feedback Incorporated
It is pleasing to report that the American subsidiary had a very good year. A
significant increase in turnover led to marked improvement in profitability.
The restructuring of the American representatives network and strengthening of
the Company's sales force resulted in a higher level of customer contact.
This, together with the enhanced products available from the Instruments
company, undoubtedly led to the successful year. Whilst major markets for the
Company's products continues to be in 4-year University programmes significant
potential also exists in Vocational Schools, Community and Technical Colleges,
plus Industrial and Military training establishments, for the newer software
based products available from within the Group.
Feedback Data
The results for this Company were below expectations with a decline in both
turnover and profit from the previous year. I reported at the Interim stage
that, in common with other IT equipment manufacturers, the Company had seen a
weakening in demand. Initially, this was due to post Y2K IT spending
restrictions, although as the second half year progressed, there were clear
signs that business was being affected by what was perceived to be a slowing
down in the economy.
The Company continued to develop new, and enhance existing, hardware and
software products for the broad data capture market. It is pleasing to report
that exploitation of the terminal designed to meet the European Working Time
Directive reporting requirements has opened up markets in the leisure, service
and small retail sectors not previously seen as part of the Company's market
area. Newer developments in Data Capture applications in the food industry and
network/data security products are already well advanced and will, in line
with our long term strategy, offer further marketing opportunities outside the
Company's traditional core business areas.
The reorganisation of the German subsidiary is now complete and the results
for the year were in line with expectations. Having gone through this
transitional management period, the German operation should be more stable in
the future.
Current Trading and Future Prospects
In the Economy generally, there appears to be some reluctance on the part of
industry to place orders for capital equipment and we are noticing signs of
this trend ourselves. In the first quarter of the new year trading is below
our expectations, however, it is comparable to the same period in 2000.
On the Data equipment side of our business our Value Added Resellers, to whom
most of our core business sales are made, are detecting some reduction in the
general IT spend by industry. On the education and training side, we are
negotiating a significant number of large contracts where we are reasonably
confident of obtaining substantial business but where formal orders have to be
finalised.
As we continue to update our products we are confident that our offerings are
well suited for current and future market needs.
Dividend
Your Board is not recommending that a dividend be paid on the ordinary shares.
General
I would like to thank all the Executive Directors and Staff for their efforts
on behalf of the Group over the last twelve months, which has not been an easy
period.
D H Harding
Chairman 24 July 2001
FEEDBACK PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Year ended Year ended
31 March 2001 31 March 2000
#'000s #'000s
Turnover: Group and share of joint venture 9,543.9 9,700.7
Less: Share of joint venture's turnover (223.2) (406.3)
Group Turnover 9,320.7 9,294.4
Cost of Sales (5,320.5) (5,459.2)
Gross profit 4,000.2 3,835.2
Other operating expenses (3,612.4) (3,249.8)
Operating profit 387.8 585.4
Share of operating (loss)/profit of joint venture (380.9) 28.3
Profit on ordinary activities before interest and 6.9 613.7
tax
Net interest charge (6.8) (2.0)
Profit on ordinary activities before tax 0.1 611.7
Tax on profit on ordinary activities 192.1 (207.6)
Profit on ordinary activities after tax 192.2 404.1
Dividends (99.7) (192.2)
Retained profit for Group and its share of joint 92.5 211.9
venture
Earnings per share (pence)
Basic 0.8p 2.1p
Fully diluted 0.8p 2.1p
All amounts relate to continuing operations.
FEEDBACK PLC
CONSOLIDATED BALANCE SHEET
31 March 31 March
2001 2000
#'000s #'000s #'000s #'000s
Fixed Assets
Tangible Assets 582.7 483.0
Investment in joint venture
- Share of gross assets - 191.3
- Share of gross liabilities - (44.2)
- 147.1
582.7 630.1
Current Assets
Stocks 1,958.6 1,444.7
Debtors 4,191.5 4,222.3
Cash at bank and in hand 628.6 787.2
6,778.7 6,454.2
Creditors
Amounts falling due within one year
- Borrowings (85.1) (84.6)
- Other creditors (2,546.6) (2,514.5)
(2,631.7) (2,599.1)
Net Current Assets 4,147.0 3,855.1
Total assets less current liabilities 4,729.7 4,485.2
Creditors
Amounts falling due after more than
one year
- Borrowings (152.5) (190.9)
Provisions for liabilities and
charges
- Share of gross assets 110.3 - -
- Share of gross liabilities (344.1) (233.8) - -
Net assets 4,343.4 4,294.3
Capital and reserves
Called up share capital 2,057.7 2,090.2
Share premium account 24.8 24.8
Revaluation reserve 268.8 214.2
Capital reserve 299.9 299.9
Other reserve 340.0 307.5
Profit and loss account 1,352.2 1,357.7
Total reserves 2,285.7 2,204.1
Shareholders' funds 4,343.4 4,294.3
Included within shareholders' funds is an amount of #770,814 (2000: #795,600)
in respect of non-equity interests.
FEEDBACK PLC
CONSOLIDATED CASHFLOW STATEMENT
Year Year
ended ended
31 March 31 March
2001 2000
#'000s #'000s #'000s #'000s
Net cash inflow from operating activities 72.3 24.2
Returns on investments and servicing of finance
* Interest received 10.1 45.0
* Interest paid (16.9) (47.0)
* Non equity dividends paid (89.5) (105.6)
Net cash (outflow) from returns on investments (96.3) (107.6)
and servicing of finance
(24.0) (83.4)
Corporation tax recovered/(paid) 39.6 (31.8)
Capital expenditure and financial investment
* Purchase of tangible fixed assets (152.7) (79.7)
* Sales of tangible fixed assets 16.4 10.9
Net cash (outflow) from capital expenditure and (136.3) (68.8)
financial investment
Net cash (outflow) before management of liquid (120.7) (184.0)
resources and financing
Management of liquid resources
* Treasury deposit 550.0 200.0
Financing
* Issue of ordinary share capital - 4.4
* Repayments of bank and other loans (30.0) (30.0)
* Capital element of finance leases (12.2) (11.8)
and rental payments
Net cash (outflow) from financing (42.2) (37.4)
Increase/(decrease) in cash in the year 387.1 (21.4)
Notes:
1. Basic earnings per share for the year ended 31 March 2001 is based on the
Group profit on ordinary activities after taxation and preference
dividends of #89,500 (2000 - #106,000) attributed to 11,691,933 Ordinary
Shares, being the weighted average number of shares in issue throughout
the year (2000 - 10,181,320). The diluted earnings per share, based on the
same earnings numerator, is calculated allowing for both the full
conversion of the Preference Shares and the full exercise of outstanding
share options. However, in accordance with Financial Reporting Standard
14, as neither of these conversions have a dilutive effect the earnings
per share figure remains unaltered.
The adjusted weighted average number of shares is 16,295,726 (2000 -
14,370,947). The Group profit on ordinary activities after taxation has
been adjusted by the preference dividend paid.
2. The financial information for the year ended 31 March 2000 is extracted
from the Group's financial statements to that date which received an
unqualified auditors' report and have been filed with the registrar of
companies. The financial information for the year ended 31 March 2001 is
extracted from the Group's financial statements to that date which
received an unqualified auditors' report and will be filed with the
registrar of companies.
3. The Report and Accounts will be posted to shareholders in due course and
the Annual General Meeting will be held at 11.00am on 30 August 2001.
Enquiries: Roger Barnett
Group Managing Director
Feedback plc
01892 653 322
Feedback (LSE:FDBK)
Historical Stock Chart
From Jun 2024 to Jul 2024
Feedback (LSE:FDBK)
Historical Stock Chart
From Jul 2023 to Jul 2024
