Final Results
June 18 2002 - 2:00AM
UK Regulatory
RNS Number:3664X
Innovision Research&Technology PLC
18 June 2002
Innovision Research & Technology plc
Preliminary Results for the year ended 31 March 2002
Innovision Research and Technology, the electronics technology solutions
provider, announces its results for the year ended 31 March 2002.
Highlights
• Operating loss and cash flow in line with expectations
• Significant commercial progress on Datalabel (RFID)
- four major new contracts
- teaming agreements moving rapidly to full licenses
• Six new toy projects moving to production in 2002
• Record volumes of new enquiries
• Investment in Research and Development up 91% to £772,000, two new
technology agreements signed.
• Successful flotation on AIM achieved at start of year raising £9.3m net of
expenses.
Commenting on the results, Barton Clarke, CBE, Chairman said,
"This year has seen Innovision Research & Technology make significant progress
and has served to reinforce our belief in the scale of the opportunities
available to the Company. Overall, I remain confident of our future revenue
growth potential."
18 June 2002
Enquiries:
Innovision Research & Technology plc Tel: 0118 936 6311
Mike Wroe, Finance Director
College Hill Tel: 020 7457 2020
Matthew Smallwood
Innovision Research & Technology plc
Preliminary results for the year ended 31 March 2002
CHAIRMAN'S STATEMENT
Our first year as a public company has been focused on delivering our strategic
plan of diversifying our customer base and maximising the long-term commercial
potential of Datalabel, our Radio Frequency Identification (RFID) business. This
year has seen the Company make significant progress against an uncertain global
economic background, particularly in the second half, and has served to
reinforce our belief in the scale of the opportunities available to the Company.
Turnover during the year under review continued to be predominantly toy-market
driven and has been disappointing at £1.1m (2001: £2.3m). A number of factors
influenced this result, including, as announced at our interims, the late
cancellation of a $1m+ toy contract, poor Christmas sales and overall caution by
toy manufacturers in developing new products in the light of uncertain U.S.
consumer spending. Despite this, strong cost and cash control has enabled our
pre-tax loss of £2,259,000 (2001: £355,000 profit) and operating cash outflow of
£2.5m (2001:£0.8m) to remain in line with expectations and at the year end the
Company had cash on deposit of £7.3m (2001:£864,000).
Despite the difficult year for our toy business, we have succeeded in greatly
diversifying our customer base and new licenses have been signed with Mattel,
Jakks Pacific Inc. and a number of major European toy companies including
Ravensburger Spieleverlag GmbH. Many of these projects are due for production
in 2002 with the full royalty revenue impact in 2003. Enquiries for future toy
products are at a high level and we have identified a number of potential
customers within related markets such as promotional items, which are expected
to offer more predictable revenue opportunities. The Company will continue to
use the toy industry to provide both profitable royalty revenue and as a
development and testing ground for robust, novel and very low cost technologies.
In other areas, the volume of enquiries has continued to grow and development
agreements are now in place with four companies including one of Europe's
largest FMCG groups and a Fortune 100 consumer products corporation. We
anticipate converting these and other opportunities to full licenses over the
coming months with royalties commencing during 2003. In addition, the Datalabel
teaming agreement with a major US logistics supply company is rapidly
progressing to a full licence and both companies are working hard to ensure the
inclusion of RFID capabilities within their product range as soon as possible.
A number of earlier stage opportunities are also moving to contract and we
anticipate that our existing teaming agreement with a market-leading supplier to
the transport sector will soon result in the signing of a development contract
and full licence.
The focus on acquiring new customers in the year has been complemented by a 91%
increase in our internal research and development spend to £772,000 (2001:
£404,000). Key in-house achievements include the development of an RFID tag
costing less than 5 cents, significant progress towards producing "chipless"
anti-counterfeiting technologies and the design of low cost tags to exploit
specific market opportunities. The close relationship with QinetiQ (formerly
the major part of DERA) has continued and has resulted in a number of long-term
technology opportunities being identified, and I am pleased to announce that we
have now signed a joint commercialisation agreement for one such innovative new
technology.
In addition the Company is working with three other potential R&D partners. One
of these, Roke Manor Research, a division of Siemens, recently formalised its
arrangement to enable both parties to consider the potential and planned
exploitation of selected technologies. We look forward to developing the
commercial potential of these relationships.
During the year we have continued to invest in the people necessary to ensure
our long-term success. Dr. Bruce Smith CBE, a prominent member of the UK
scientific community, joined the Board in July 2001 as Senior Non-Executive
Director and Peter Symons was promoted to the position of Technical Director in
January 2002. Both appointments bring superb technical knowledge, business
ability and new ideas to the team. We have also recruited 23 new people during
the year with our focus being on enhancing our sales capability, including a
U.S. presence, and ensuring that the technical resources are available to
support our expansion. With staff numbers now at 61 (2001:38) we have the
expertise in place to deliver the Company's planned growth and we do not
envisage any significant new recruitment in the coming year.
Overall, despite disappointing sales last year, I remain confident of our future
revenue growth potential. This confidence is supported by the recent
significant commercial progress with Datalabel, the success in diversifying our
toy business and the record levels of enquiries across all areas. The
development of new low-cost tags by our research team and the progress with our
R&D partners also provides great commercial opportunities for the future. I look
forward to building on the achievements of the past 12 months and thank everyone
in the Company for their hard work and support.
Barton Clarke
CBE
17 June 2002
Innovision Research & Technology plc
PROFIT AND LOSS ACCOUNT
for the year ended 31 March 2002
2002 2001
£'000 £'000
Turnover 1,114 2,338
Cost of sales (151) (156)
Gross profit 963 2,182
Administrative expenses (3,633) (1,910)
Operating (loss) / profit (2,670) 272
Interest receivable 411 83
(Loss) / profit on ordinary activities before taxation (2,259) 355
Taxation 155 (40)
Retained (loss) / profit for the year (2,104) 315
(Loss) / earnings per share Pence per Pence per
share share
Basic (5.35) 1.06
Diluted (5.35) 1.06
The operating loss for the year arises from the company's continuing operations.
No separate Statement of Total Recognised Gains and Losses has been presented as
all such gains and losses have been dealt with in the Profit and Loss Account.
Innovision Research & Technology plc
BALANCE SHEET
31 March 2002
2002 2001
£'000 £'000
Fixed assets
Tangible assets 511 173
Investments 14 -
525 173
Current assets
Debtors 1,175 891
Cash at bank and in hand 7,296 864
8,471 1,755
Creditors: Amounts falling due within one year (370) (440)
Net current assets 8,101 1,315
Total assets less current liabilities 8,626 1,488
Provisions for liabilities & charges - (2)
Net assets 8,626 1,486
Capital and reserves
Called up share capital 395 296
Share premium 9,834 689
Profit and loss account (1,603) 501
Shareholders' funds 8,626 1,486
Innovision Research & Technology plc
CASH FLOW STATEMENT
for the year ended 31 March 2002
2002 2001
£'000 £'000
Net cash outflow from operating activities (2,505) (803)
Returns on investments and servicing of finance
Interest received 238 56
Taxation (44) (180)
Capital expenditure and financial investment
Purchase of tangible fixed assets (487) (126)
Sale of tangible fixed assets - 5
Purchase of investments (14) -
Net cash flow for capital expenditure and servicing of finance (501) (121)
Cash outflow before use of liquid resources and financing (2,812) (1,048)
Management of liquid resources
(Increase) / decrease in treasury deposit account (6,273) 950
Financing
Proceeds from share issue 9,244 -
Increase / (decrease) in cash in year 159 (98)
Reconciliation of net cash flow to movement in net funds
Increase / (decrease) in cash in year 159 (98)
Cash inflow / (outflow) from increase / (decrease) in liquid resources 6,273 (950)
Change in net funds resulting from cashflow 6,432 (1,048)
Opening net funds 864 1,912
Closing net funds 7,296 864
Innovision Research & Technology plc
NOTES
for the year ended 31 March 2002
1. The financial information contained in this document does not constitute
statutory accounts within the meaning of section 240 of the Companies Act
1985. The figures for the year ended 31 March 2001 and 2002 have been
extracted from the annual accounts on which the auditors have issued
unqualified reports which did not contain statements under section 237 (2)
or (3) Companies Act 1985. Statutory accounts for the year to 31 March 2001
have been filed with the Registrar of Companies. The audited statutory
accounts for the year ended 31 March 2002 will be delivered to the Registrar
of Companies and shareholders in due course.
2. The Directors do not recommend the payment of a dividend.
3. Accounting Policies
All accounting policies adopted are consistent with those applied in prior
years, except that Financial Reporting Standard No.19, the new accounting
standard on deferred tax, has been applied for the first time; the adoption of
this new accounting standard has had no impact on the deferred tax liabilities
reported in prior years.
Turnover
Turnover represents income earned for the accounting period in accordance with
the principles set out below, exclusive of Value Added Tax.
Development fees earned from customers are recognised as income in the period
during which the development work is carried out. License fees are recognised
as income over the period during which the Company is obliged to provide
services to the customer pursuant to the terms of the license.
Royalties are computed by reference to product sales achieved by customers and
are recognised as income of the Company in the period in which the product sales
take place. Advanced royalties are included in creditors and released to income
as customers achieve product sales, except that where advanced royalties are not
refundable to the customer the balance of the royalties is released to income if
production of a product never commences or if sales of a product become
insignificant. Guaranteed royalty amounts not directly related to sales volume
are treated as income of the guarantee period specified in the contracts.
4. Taxation
2002 2001
£'000 £'000
Based on the profit for the year:
UK corporation tax (44) 42
Research & development tax credit (111) -
Over provided in previous years 2 (4)
(153) 38
Deferred taxation (2) 2
(155) 40
5. (Loss)/ Earnings per shares
Basic loss per share has been calculated by dividing the loss for the year of
£2,104,000 (2001: £315,000 profit) by the weighted average number of shares in
issue during the year. The weighted average number of shares in issue during the
year was 39,384,722 (2001: 29,629,600).
There is no dilution in the loss per share as a result of outstanding options.
Diluted earnings per share in respect of 2001 was calculated by dividing the
profit for the year of £315,000 by the weighted average number of shares
referred to above, plus the weighted average number of shares available under
share options outstanding during the period. On this basis, during that year
the weighted average number of shares in issue was 29,629,600.
6. Share Capital - Movements
On 6 April 2001 the Company issued 9,900,990 1p ordinary shares at 101p each as
part of a placing of shares and admission to the Alternative Investment Market
of the London Stock Exchange.
On 18 July 2001, 23,800 1p ordinary shares were issued at 45p each as part of
the exercise of a share option agreement.
7. Notes to the Cashflow Statement
2002 2001
£'000 £'000
Reconciliation of operating profit to net cash outflow
from operating activities
Operating (loss) / profit (2,670) 272
Depreciation 149 58
Loss on sale of fixed assets - 1
Decrease / (increase) in debtors 44 (548)
Decrease in creditors (28) (586)
Net cash (outflow)/inflow from operating activities (2,505) (803)
At 1 April 2001 At 31 March 2002
£'000 Cash flows £'000
£'000
Analysis of changes in net funds
Cash at bank and in hand 14 159 173
Short term bank deposits 850 6,273 7,123
864 6,432 7,296
8. This statement was approved by the Board of Directors on 17th June 2002.
This information is provided by RNS
The company news service from the London Stock Exchange
Innovision Research&technology (LSE:INN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Innovision Research&technology (LSE:INN)
Historical Stock Chart
From Jul 2023 to Jul 2024
