RNS Number : 1832K
Millbrook Scientific InstrumentsPLC
16 December 2008
Press Release 16 December 2008
Millbrook Scientific Instruments plc
("Millbrook" or the "Company")
Interim Results
Millbrook Scientific Instruments plc (AIM:MBK), the designer and manufacturer of innovative scientific instruments that measure
nanoscale properties of thin films and coatings, announces its Interim Results for the six months ended 30 September 2008.
Overview (continuing operations)
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2008 2007 2008
(unaudited) (unaudited) (audited)
� � �
Revenue 1,313,998 1,013,219 2,484,055
EBITDA 74,564 (73,853) (25,881)
Operating profit / (loss) - total 28,162 (113,021) (68,613)
Basic profit / (loss) per share (in 0.089p (0.235p) (0.290p)
pence) - total
* Revenue of �1,313,998 (2007: continuing operations �1,013,219). A significant increase over last year.
* EBITDA �74,564 (2007: continuing operations loss of �(73,853)) - a marked improvement due to increased sales and full effect of
reduction in overheads.
* Sale of Aquila completed with effect from 18 June 2008.
* Move to new premises at Wrexham complete.
* Rollout of software upgrade for MiniSIMS ToF complete.
* First release of the software upgrade for MiniSIMS alpha completed - first two instruments with the new software now shipped.
* Total Group sales for FY2009 plus outstanding orders �2.4m at 11 December 2008
(�2.4m from continuing operations at 13 December 2007).
* Other priorities for the remainder of the Financial Year:
* Complete improvements to production processes at Blackburn to ensure production and quality targets are reliably met;
* Environmental enclosure for NanoTest;
* Data analysis software for MiniSIMS.
* Economic conditions:
* Demand for products unaffected to date;
* Weakness of pound is generally beneficial although some supplies are sourced in other currencies.
Chairman's Statement
Revenue for the six-month period ending 30 September 2008 was �1,313,998 (2007: continuing operations �1,013,219). The increase in
revenue compared to 2007 was mainly due to increased sales and production at our new Wrexham facility. The operating profit from continuing
operations for the period was �28,162 (2007: loss of �(113,021)). This improvement was due to the increase in sales referred to above and
the effect of the reduction in overheads previously announced.
During the period under review, sales and orders of the NanoTest instrument have progressed satisfactorily. Continued steady growth is
anticipated now that the constraints of space at the previous facility in Wrexham have been removed. Our thanks are due to our employees at
Wrexham who worked tirelessly to achieve the move with minimum disruption to production.
The new software for both MiniSIMS ToF and alpha instruments is now complete. The roll out of the ToF upgrade is complete and the first
two shipments of the alpha with new software have taken place. Improved data analysis software is also being developed this year. An
environmental enclosure for the NanoTest instrument is under development at our Wrexham facility.
New orders have been achieved such that total group sales for FY 2009 to date plus outstanding orders at 11 December 2008 are �2.4m. The
Board is clearly aware of the worsening economic climate and continues to monitor its effects on the business. Opportunities can be created
in such a climate and the weakening pound is generally helpful to the sales effort. Currency fluctuations are hedged to the extent the
Company's limited financial resources permit.
Shareholders will have noticed the weight of paper enclosed with the Annual Report for FY2008. Following the implementation of further
sections of the Companies Act 2006 on 1 October 2008, the second new set of Articles of Association (part 5, item "B" of the Notice of AGM
papers) are now in force. This will enable us to keep printing and postage costs to a minimum in the future.
Committees
The Audit and Remuneration Committees met once each in the period under review under the Chairmanship of Malcolm Fortnam. My grateful
thanks are due once again to Malcolm for carrying out this role.
Our thanks are due to Edwards Veeder (Oldham) LLP, our auditors, for their assistance.
Other Advisers
We appointed Zeus Capital of Manchester as our Nomad and Broker effective 19th November 2008. I would like to express my thanks and
those of the Board to Seymour Pierce, our Nomad since listing on AIM, for their advice and support over the years. Our legal advisers,
Halliwells LLP, provided excellent help and advice throughout the period including assisting us to update our Articles of Association to
ensure compliance with CA 2006.
Board
The Executive members of the Board carry a heavy burden of responsibility and my thanks are due to them for the cheerful and diligent
manner in which they carry out their duties, especially Paul Grasske the Group CEO.
Stephen M Blank
Chairman
CONDENSED GROUP INCOME STATEMENT
for the six months to 30 September 2008
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 September 30 September 31 March
2008 2007 2008
(as restated)
Note
� � �
REVENUE 1,313,998 1,013,219 2,484,055
Other income 11,932 14,565 14,491
Changes in inventories and 45,068 18,141
work in progress (64,893)
Work performed by the entity 87,568 111,845 233,601
and capitalised
Raw material and consumables (405,373)
used (575,212) (880,252)
Employee benefits expense (461,537) (468,925) (940,426)
Depreciation and amortisation (133,970) (114,346) (239,666)
expense
Other expenses 4 (259,685) (282,147) (675,523)
Operating Profit/(Loss) 28,162 (113,021) (68,613)
Finance costs (1,218) (13,319) (14,518)
Income/(Loss) before tax 26,944 (126,340) (83,131)
Taxation 3 16,540 79,560 79,560
Income for the period from 43,484 (46,780) (3,571)
continuing operations
Income/(Loss) for the period 5 22,281 (84,357) (183,856)
from discontinued operations
Income/(Loss) for the period 65,765 (131,137) (187,427)
Earnings per share
Basic 0.089p (0.235p) (0.290p)
Diluted 0.077p (0.211p) (0.260p)
CONDENSED GROUP INCOME STATEMENT continued
for the six months to 30 September 2008
Earnings Before Interest, Tax and Depreciation and Amortisation ("EBITDA")
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 September 30 September 31 March
2008 2007 2008
(as restated)
� � �
EBITDA (continuing operations) 74,564 (73,853) (25,881)
Exceptional items - (36,667) (36,667)
Depreciation/loss on disposal (25,026) (19,452) (32,544)
Work performed by entity and 87,568 111,845 233,601
capitalised
Amortisation (108,944) (94,894) (207,122)
Finance costs (1,218) (13,319) (14,518)
Taxation 16,540 79,560 79,560
Income/(Loss) for the period from 43,484 (46,780) (3,571)
continuing operations
Discontinued operations 22,281 (84,357) (183,856)
Income/(Loss) for the period 65,765 (131,137) (187,427)
CONDENSED STATEMENT OF CHANGES IN EQUITY
Share Share Retained Total
Capital Premium Earnings
� � � �
At 30 September 2007 2,882,871 963,449 (2,052,171) 1,794,149
Retained loss for the period - - (26,275) (26,275)
At 31 March 2008 2,882,871 963,449 (2,078,446) 1,767,874
Retained income for the period - - 65,765 65,765
At 30 September 2008 2,882,871 963,449 (2,012,681) 1,833,639
CONDENSED GROUP BALANCE SHEET
for the six months to 30 September 2008
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 September 30 September 31 March
2008 2007 2008
� � �
Non Current Assets
Property, plant and equipment 149,628 115,932 155,474
Goodwill 836,308 836,308 836,308
Other intangible assets 605,631 595,280 609,086
1,591,567 1,547,520 1,600,868
Current Assets
Inventories 270,065 325,515 231,784
Trade and other receivables 747,688 784,553 819,695
Cash at bank and in hand 395,236 620,727 214,495
1,412,989 1,730,795 1,265,974
Total Assets 3,004,556 3,278,315 2,866,842
Current Liabilities
Bank loans and overdrafts (246,947) (505,970) (134,019)
Trade and other payables (660,685) (593,763) (660,844)
Other creditors and deferred (158,238) (337,156) (215,236)
income
(1,065,870) (1,436,889) (1,010,099)
Non Current Liabilities
Bank loans (1,000) (13,000) (7,000)
Provision for deferred grant (104,047) (34,277) (81,869)
income
Total Liabilities (1,170,917) (1,484,166) (1,098,968)
Net Assets 1,833,639 1,794,149 1,767,874
Equity
Called up share capital 2,882,871 2,882,871 2,882,871
Share premium account 963,449 963,449 963,449
Retained Earnings (2,012,681) (2,052,171) (2,078,446)
Total Equity 1,833,639 1,794,149 1,767,874
CONDENSED GROUP STATEMENT OF CASH FLOWS
for the six months to 30 September 2008
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 September 30 September 31 March
Note 2008 2007 2008
� � �
Net cash inflow from operating 6 209,005 210,928 351,453
activities
Cash flows from investing
activities
Payments to acquire intangible (142,999) (133,308) (277,559)
fixed assets
Payments to acquire tangible (26,808) (4,568) (90,081)
fixed assets
Less grants received 34,615 26,016 86,974
NET CASH INFLOW BEFORE 73,813 99,068 70,787
FINANCING
Cash flows from financing
activities
Issue of ordinary share capital - 400,000 400,000
Share issue costs - (14,415) (14,415)
Finance arrangement fees - (36,667) (36,667)
Loan repayments (6,000) (13,195) (19,195)
(6,000) 335,723 329,723
INCREASE IN CASH 67,813 434,791 400,510
NOTES TO THE UNAUDITED ACCOUNTS
for the six months ended 30 September 2008
* BASIS OF PRESENTATION OF ACCOUNTS
Millbrook Scientific Instruments PLC is incorporated in England and Wales. The condensed Group half-year financial statements
consolidate those of the Company and its subsidiaries. They do not include all of the information required for full annual financial
statements.
The half-year results are unaudited. The summary of results for the year ended 31 March 2008 is an extract from the published
consolidated financial statements of the Group for that period which were prepared in accordance with IFRS as adopted by the European Union,
and which have been reported on by the Group's auditors and delivered to the Registrar of Companies. The report of the auditors was
unqualified.
The Group's subsidiary, Aquila Instruments Ltd, was sold on the 18 June 2008. Aquila has been treated as a discontinued operation in
these financial statements, however when the interim statement for the six months ended 30 September 2007 was prepared Aquila was still a
continuing operation. The comparative figures for September 2007 have been restated to reflect the fact that Aquila is now a discontinued
operation.
2. EARNINGS PER ORDINARY SHARE
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 September 30 September 31 March
2008 2007 2008
� � �
Basic weighted average number of 64,586,378
shares in the period 73,657,416 55,733,919
Diluted weighted average number of 85,040,416 72,091,782
shares in the period 62,121,837
Earnings/(loss) attributable to 65,765 (187,427)
members of the parent undertaking (131,137)
Basic earnings/(loss) per share 0.089p (0.235p) (0.290p)
Diluted earnings/(loss) per share 0.077p (0.211p) (0.260p)
The earnings/(loss) per share (basic and diluted) has been calculated on the result after tax attributable to the ordinary shareholders
and the weighted average number of shares in issue in the period.
At 30 September 2008 and 30 September 2007 there were 73,657,416 ordinary 1p shares in issue.
3. TAX REFUND
The tax refund relates to claims for Research and Development tax credits that have been submitted to HMRC.
4. EXCEPTIONAL ITEMS
The following expenses are included in the Income Statement under 'Other expenses':
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 September 30 September 31 March
2008 2007 2008
� � �
Finance arrangement fees - 36,667 36,667
5. DISCONTINUED OPERATIONS
One of the Group's subsidiary companies, Aquila Instruments Ltd, was sold on the 18 June 2008. The sale was fully anticipated when the
accounts for the year ended 31 March 2008 were drawn up and provision was made in those accounts for the loss and costs of the disposal.
However the loss on disposal has not been as great as anticipated and �22,281 of the loss has been released to the Income Statement.
6. RECONCILIATION OF INCOME FOR PERIOD TO NET CASH INFLOW FROM OPERATING ACTIVITIES
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 September 30 September 31 March
2008 2007 2008
� � �
Income/(Loss) for the period 65,765 (131,137) (187,427)
Exceptional items (finance - 36,667 36,667
arrangement fees)
Income/(Loss) before exceptional item 65,765 (94,470) (150,760)
Share based payment - 5,023 35,038
Depreciation 25,026 22,452 38,530
Amortisation of intangibles 108,944 99,747 213,478
(Increase)/Decrease in inventories (38,281) 4,856 98,587
(Increase)/Decrease in debtors 72,007 (117,565) (152,707)
(Decrease)/Increase in creditors (57,157) 268,518 213,679
Loss on disposal of intangible assets - - 3,350
Transfer of asset for resale from - 22,367 52,258
fixed assets
Loss on disposal of non-cash assets 32,701 - -
from discontinued operations
Net cash inflow from operating 209,005 210,928 351,453
activities
7. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS/(NET DEBT)
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 September 30 September 31 March
2008 2007 2008
� � �
Increase in net cash in the period 67,813 434,791 400,510
Movement in bank loan 6,000 13,195 19,195
Movements in net debt 73,813 447,986 419,705
Net funds/(net debt) brought forward 73,476 (346,229) (346,229)
Net funds carried forward 147,289 101,757 73,476
8. ANALYSIS OF NET FUNDS
At 1 April Cash Flow Non Cash At 30 September
2008 Movements 2008
� � � �
Cash at bank and in hand 214,495 180,741 - 395,236
Overdraft (122,019) (112,928) - (234,947)
Bank loans due within one year (12,000) 6,000 (6,000) (12,000)
Bank loans due beyond one year (7,000) - 6,000 (1,000)
Net funds 73,476 73,813 - 147,289
For further information:
Millbrook Scientific Instruments plc
Stephen Blank, Chairman Tel: +44 (0) 7801 456 502
s.m.blank@millbrook-instruments.com
Paul Grasske, Group CEO Tel: +44 (0) 7779 339478
paul@micromaterials.co.uk www.millbrook-instruments.com
Zeus Capital
Alex Clarkson/Tom Rowley Tel: +44 (0) 161 831 1512
www.zeuscapital.co.uk
Independent Review Report to Millbrook Scientific Instruments PLC
We have been engaged by the Company to review the condensed consolidated financial statements in the Interim Report for the six months
ended 30 September 2008, which comprises the consolidated income statement, consolidated statement of changes in equity, consolidated
balance sheet, consolidated cash flow statement and related notes. We have read the other information contained in the Interim Report and
considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed consolidated
financial statements.
This report is made solely to the Company in accordance with guidance contained in International Standard on Review Engagements 2410 (UK
and Ireland) 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices
Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our work, for
this report, or for the conclusions we have formed.
Directors' responsibilities
The interim report, including the financial information contained therein, is the responsibility of, and has been approved by the
directors. The directors are responsible for preparing the interim report in accordance with the rules of the London Stock Exchange plc for
companies trading securities on the AIM market which require that the half yearly report be presented and prepared in a form consistent with
that which will be adopted in the Company's annual accounts having regard to the accounting standards applicable to such annual reports.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed consolidated financial statements in the Interim Report
based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 'Review of Interim
Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United
Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review we are not aware of any modifications that should be made to the financial information as presented for the six
months ended 30 September 2008 or of any instances where the financial statements fail to comply with the rules of the London Stock Exchange
for companies trading securities on the AIM market.
Edwards Veeder (Oldham) LLP Block E, Brunswick Square
Chartered Accountants Union Street
& Registered Auditors Oldham
16 December 2008 OL1 1DE
This information is provided by RNS
The company news service from the London Stock Exchange
END
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