Interim Results
December 06 2002 - 1:00AM
UK Regulatory
RNS Number:7465E
Innovision Research&Technology PLC
06 December 2002
Innovision Research & Technology plc
Interim results for the six months to 30 September 2002
Innovision Research and Technology, the electronics technology solutions
provider, announces its Interim results for the six months to 30 September 2002.
2002 2001
Loss on ordinary activities before taxation (#'000) 1,827 1,143
Loss per share (p) 4.47 2.86
Net cash (#m) 6.0 8.8
* Significant progress made in developing long-term radio frequency
identification business (RFID).
Full licenses signed in both the logistics supply and transport
ticketing industries
Development contracts signed with significant new customers.
* As previously announced, short-term toy revenues significantly reduced.
* Restructuring complete with annual cost savings of #1.8 million.
* Continued focus on tight cash management - net cash at 30 September 2002
was #6 million (2001: #8.8 million).
* Encouraging contract wins in RFID since the half-year end.
Barton Clarke, Chairman, commented:
"Whilst the opportunity for the exploitation of the RFID market remains
undiminished the loss of significant new toy revenues has had a detrimental
effect on our results. Swift management action to control cost and to preserve
cash will enable the Group to continue to focus on delivering new opportunities
in the large and rapidly growing RFID market."
6 December 2002
Enquiries:
Innovision Research & Technology plc Tel: 0118 936 6311
Mike Wroe, Finance Director
College Hill Tel: 020 7457 2020
Matthew Smallwood
Chairman's Statement
In the six months ended 30th September 2002, the Company has made good progress
towards building a long-term business outside of its historical base in the toy
industry. As announced in October, positive commercial developments in our
DatalabelTM, Radio Frequency Identification (RFID) business have been set
against a background of sharply falling toy revenues, and the challenges of
delivering short-term revenue in a difficult economic climate. As a result,
turnover in the period was very disappointing at #214k (2001: #548k) and we have
significantly reduced our expectation of turnover for the full year.
Cost and cash control within the business remains a priority with both the
operating loss for the period of #(2.0m) (2001: #(1.4m)) and cash holdings at
30th September 2002 of #6.0m (2001: #8.8m) being in line with expectations.
Research and Development expenditure for the period was #483k (2001: #329k).
The planned restructuring of the business is now complete. This has resulted in
a 40% reduction in head count to 40 staff and a refocusing of our sales efforts
onto those key RFID markets which are capable of delivering both viable short
term revenues and good long-term royalty potential. This restructuring will
result in a one-off exceptional charge in the second half of the year of #420k
and annual cost savings of #1.8m.
Our commercial team continues to progress a number of exciting opportunities.
During the period under review, we have signed full licenses with a major
logistics supplies manufacturer and with one of the UK's largest transport
ticket manufacturers. Royalties from ticketing, although not expected before
mid 2004, should be significant and we continue in discussions with a number of
additional potential licensees both in the USA and Europe.
In addition we have been successful in securing development contracts with,
amongst others, a major European telecoms manufacturer and a UK leisure company.
Since the period end we have also been contracted to work on RFID projects for a
substantial UK retailer and a large medical supply company as well as to do
further development work for existing customers.
In summary, despite the disappointment of reduced short-term revenues for the
business, I believe we have taken decisive corrective action, which has enabled
us to retain an excellent team. We have strong cash reserves and a good
commercial position in the exciting and potentially large RFID market place.
Barton Clarke CBE
5 December 2002
INDEPENDENT REVIEW REPORT TO INNOVISION RESEARCH & TECHNOLOGY PLC
Introduction
We have been instructed by the company to review the financial information set
out on pages 4 to 8 and we have read the other information contained in the
interim report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. It is best
practice that the accounting policies and presentation applied to the interim
figures should be consistent with those applied in preparing the preceding
annual accounts except where any changes, and the reasons for them, are
disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board as if that Bulletin applied. A review
consists principally of making enquiries of management and applying analytical
procedures to the financial information and underlying financial data and based
thereon, assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities and
transactions. It is substantially less in scope than an audit performed in
accordance with Auditing Standards and therefore provides a lower level of
assurance than an audit. Accordingly we do not express an audit opinion on the
financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2002.
BAKER TILLY
Chartered Accountants
2 Bloomsbury Street
London WC1B 3ST
5 December 2002
Innovision Research & Technology plc
PROFIT AND LOSS ACCOUNT
for the six months ended 30 September 2002
Notes 6 months 6 months 12 months
ended 30 ended 30 ended 31
September September March
2002 2001 2002
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
TURNOVER 2 214 548 1,114
Cost of sales (82) (82) (151)
Gross profit 132 466 963
Administrative expenses (2,099) (1,840) (3,633)
OPERATING LOSS (1,967) (1,374) (2,670)
Interest receivable 140 231 411
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (1,827) (1,143) (2,259)
Taxation 3 60 20 155
LOSS ON ORDINARY ACTIVITIES AFTER TAXATION (1,767) (1,123) (2,104)
LOSS PER SHARE Pence per Pence per Pence per
share share share
Basic and diluted 4 (4.47) (2.86) (5.35)
The operating loss for the period 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
30 September 2002
Notes As at 30 As at 30 As at
September September 31 March
2002 2001 2002
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
FIXED ASSETS
Tangible assets 499 552 511
Investments 14 - 14
513 552 525
CURRENT ASSETS
Debtors 578 826 1,175
Cash at bank and in hand 5 6,040 8,800 7,296
6,618 9,626 8,471
CREDITORS: Amounts falling due within one year (272) (571) (370)
NET CURRENT ASSETS 6,346 9,055 8,101
NET ASSETS 6,859 9,607 8,626
CAPITAL AND RESERVES
Called up share capital 395 395 395
Share premium 9,834 9,834 9,834
Profit and loss account (3,370) (622) (1,603)
SHAREHOLDERS' FUNDS 6,859 9,607 8,626
Innovision Research & Technology plc
CASHFLOW STATEMENT
for the six months ended 30 September 2002
6 months 6 months 12 months
ended 30 ended 30 ended 31
September September March
2002 2001 2002
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Operating loss (1,967) (1,374) (2,670)
Depreciation 94 69 149
Profit on sale of fixed assets (3) - -
Decrease in debtors 396 170 44
Increase / (decrease) in creditors (97) 129 (28)
Net cash outflow from operating activities (1,577) (1006) (2,505)
Returns on investments and servicing of finance
Interest received 288 146 238
Taxation 112 - (44)
Capital expenditure and financial investment
Purchase of tangible fixed assets (88) (448) (487)
Sale of tangible fixed assets 9 - -
Purchase of investments - - (14)
Cash outflow before use of liquid resources and (1,256) (1,308) (2,812)
financing
Management of liquid resources
Decrease / (increase) in treasury deposit 1,272 (7,751) (6,273)
account
Financing
Proceeds from share issues - 9,244 9,244
Increase in cash in period 16 185 159
Reconciliation of net cash flow to movement in net funds
Increase in cash in period 16 185 159
Cash inflow / (outflow) from increase / (decrease) in
liquid resources (1,272) 7,751 6,273
Change in net funds resulting from cash flow (1,256) 7,936 6,432
Opening net funds 7,296 864 864
Closing net funds 6,040 8,800 7,296
Innovision Research & Technology plc
NOTES TO THE INTERIM FINANCIAL STATEMENTS
for the six months ended 30 September 2002
1 BASIS OF PREPARATION
The financial information contained in this interim report does not constitute
statutory accounts within the meaning of section 240 Companies Act 1985. The
interim results, which have been reviewed but not audited, have been prepared
using accounting policies consistent with those used in the preparation of the
Annual Report and Accounts for the year ended 31 March 2002. Those accounts have
been filed with the Registrar of Companies and received an unqualified audit
report which did not contain a statement under section 237(2) or (3) Companies
Act 1985.
2 TURNOVER
The company's turnover was all derived from its principal activity and was made
to the following geographical markets:
6 months 6 months 12 months
ended 30 ended 30 ended 31
September September March
2002 2001 2002
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
United States of America 61 492 889
United Kingdom 31 13 54
Rest of Europe 102 36 154
Rest of the World 20 7 17
_______ _______ _______
214 548 1,114
Sales by business activity were as follows:
Development engineering 133 117 236
Licence fees and technology sales 51 65 217
Royalties 30 366 661
214 548 1,114
3 TAXATION
Taxation for the six months to 30 September 2002 is based on the effective rate
of taxation which is estimated to apply to the year ending 31 March 2003.
4 LOSS PER SHARE
Basic loss per share has been calculated by dividing the loss for the
period of #1,767,293 (2001: #1,123,326) by the weighted average number
of shares in issue during the period. During the period the weighted
average number of shares in issue was 39,554,390 (2001: 39,215,982).
There is no dilution as a result of outstanding options.
5. FINANCIAL INSTRUMENTS
The company's financial instruments comprise cash balances as follows:
6 months 6 months 12 months
ended 30 ended 30 ended 31
September September March
2002 2001 2002
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Sterling money market deposit 5,851 8,601 7,123
Current accounts 189 199 173
6,040 8,800 7,296
The company holds small balances in foreign currencies to meet current trading
requirements. Cash surplus to immediate requirements is held on money market
deposits.
The company's income is received principally in US Dollars and Euros. Where
practical in respect of timings and certainty of amounts, the company considers
the use of forward exchange facilities to hedge individual foreign currency
transactions. Included in debtors due within one period is #63,844 (2001 :
#372,472) relating to balances designated in US Dollars and #18,604 designated
in Euros (2001 : nil). Similarly, creditors due within one period include
#5,351 (2001: #89,696) relating to balances designated in US Dollars.
6 The interim financial statements set out on pages 2 to 8 were
approved by the directors on 5th December 2002.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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