RNS Number : 3160V
Nipson Digital Printing Systems PLC
27 May 2008
For Immediate Release
27 May 2008
NIPSON DIGITAL PRINTING SYSTEMS PLC
RESULTS FOR THE 3 MONTHS ENDED 31 MARCH 2008
Nipson Digital Printing Systems PLC ("Nipson" or "the Group"), the manufacturer and distributor of digital printing systems and
consumables, today announces its results for the three months to 31 March 2008.
3 months to Change 3 months to Full Year to
31 March +/-% 31 March 31 December
2008 2007 2007
£'000 £'000 £'000
Revenue 7,572 +29.7% 5,837 27,335
Gross profit 1,423 +67.8% 848 3,463
Operating (loss) (682) (1,020) (4,657)
(Loss) on ordinary activities (1,349) (1,287) (6,209)
before tax
* Recurrent revenues in the first 3 months continued to grow, increasing by 7.2% compared to the same period of 2007;
* Equipment revenues in the first 3 months increased by nearly 150% compared to the same period of 2007; and
* Cost reduction programmes continue to make their contribution despite the effect on gross margins of a weak US Dollar.
New equipment sales for the first quarter of 2008 show that the new technology is now creating a positive impact both on sales and the
Group's results. The Group will be presenting the complete range of their digital printing machines at "Drupa", the international print
trade fair held at Dusseldorf every four years, from 29 May to 11 June 2008.
Rimon Ben-Shaoul, Chairman, commenting on the results, said the following:
"There are positive signs of recovery and this despite the current economic climate, including the continued weakness of the US
Dollar."
For further information, please contact:
Nipson Digital Printing Systems PLC
Alfons Buts, Managing Director - Tel: + 32 (0)3 740 02 05
Robert Cahill, Group Finance Director - Tel: +33 (0)384 54 52 50
Beaumont Cornish Ltd (Nomad)
Roland Cornish / Rosalind Hill Abrahams - Tel: +44 (0)20 7628 3396
Keith, Bayley, Rogers & Co Ltd (Broker)
Derek Crowhurst / Brinsley Holman - Tel: +44 (0)20 3100 8300
Bankside Consultants Ltd
Ian Seaton - Tel: +44 (0)20 7367 8891 or Oliver Winters - Tel: +44 (0)20 7367 8874
CHAIRMAN'S STATEMENT
Overview
Revenue for the 3 months to 31 March 2008 was £7.6m, an increase of 29.7% over the same period last year. The increase occurred both in
new equipment sales and recurring revenues. Sales increased across all markets compared to the same period last year.
Equipment sales, at £2.4m for the 3 months, showed an increase of nearly 150% over the comparative period. The order book and pipeline
for the second quarter of 2008 remain strong.
Recurrent revenues for the 3 months to 31 March 2008 were £5.2m, an increase of 7.2% as compared to the same period last year. The
Group's recurrent revenue is expected to continue to grow steadily.
Gross profit for the 3 months to 31 March 2008 was £1.4m, 67.8% higher than the comparative period last year mainly due to the higher
volume of equipment sales. Recurrent margins improved slightly as a result of a significant reduction in costs associated with the
introduction of the new technology. Improvements continued to flow through from the cost reduction programmes. Nevertheless, overall, gross
margins were below expected levels, which for a major part was due to a further weakening of the US Dollar.
Operating Results
The operating result for the 3 months to 31 March 2008 showed a loss of £0.7m against a loss of £1.0m for the corresponding period in
2007. The net loss was £1.3m (2007: net loss of £1.3m). Operating costs at £2.1m (2007: £1.9m) were higher due to higher amortisation on
previously capitalised R&D projects. In the first quarter of 2007 the Group also received R&D tax credits, which were not received in the
first quarter of 2008. The relative weakness of the GB Pound to the Euro is also a major reason for this difference.
As at 31 March 2008 cash balances were £1.8m (£1.3m as at 31 December 2007). With higher equipment sales and recurrent sales, the
inventory levels increased to £10.8m at the end of the period (£9.7m as at 31 December 2007). The level of trade and other receivables
decreased to £9.2m (£9.5m as at 31 December 2007) despite the higher activity in equipment sales.
Following the announcement on 6 February 2008 and the passing of the necessary resolutions at the General Meeting of 28 February 2008,
the Company issued approximately £1.5m of 5% unsecured convertible loan notes for cash to new investors and approximately £2.1m of 5%
unsecured convertible loan notes to Nipson's major shareholder, Polar Communications by way of conversion of existing debt. The remaining
amount of the Polar loans and accruing interest following this issue and as of 31 March 2008 was approx £9m (31 December 2007: £10m).
The costs of Research & Development in the first quarter of 2008 were £0.9m of which £0.4m were capitalised. For the first 3 months of
2008, £0.2m was capitalised net of amortisation of R&D intangible assets (2007: £1.2m).
Going Forward
There are positive signs of recovery and this despite the current economic climate, including the continued weakness of the US Dollar.
Rimon Ben-Shaoul, Chairman, Nipson Digital Printing Systems PLC
NIPSON DIGITAL PRINTING SYSTEMS PLC
Unaudited results for the three months ended 31 March 2008
CONSOLIDATED INCOME STATEMENT
3 months to 3 months to Full Year to
31 March 31 March 31 December
2008 2007 2007
£'000 £'000 £'000
Continuing Operations 7,572 5,837 27,335
Revenue
Cost of Sales (6,149) (4,989) (23,872)
Gross Profit 1,423 848 3,463
Administrative Expenses (2,105) (1,868) (7,667)
Other Operating Income - - (453)
(Loss) on Continuous Operations (682) (1,020) (4,657)
before interest
Finance Income 141 10 191
Finance Costs (808) (277) (1,743)
(Loss) from Continuing Operations (1,349) (1,287) (6,209)
before taxation
Taxation - - -
(Loss) from Continuing Operations (1,349) (1,287) (6,209)
after taxation
(Loss) per Ordinary Share (2.6p) (2.5p) (11.9p)
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
3 months to 3 months to Full Year to
31 March 31 March 31 December
2008 2007 2007
£'000 £'000 £'000
Exchange Difference on Translation of 532 56 234
Foreign Operations
Net Income/(Expense) Recognised 532 56 234
Directly in Equity
(Loss) for the Year (1,349) (1,287) (6,209)
Total Recognised Income and Expense (817) (1,231) (5,975)
for the Year
NIPSON DIGITAL PRINTING SYSTEMS PLC
Unaudited results for the three months ended 31 March 2008
CONSOLIDATED BALANCE SHEET
3 months to 3 months to Full Year to
31 March 31 March 31 December
2008 2007 2007
£'000 £'000 £'000
Assets 785 725 755
Non-Current Assets
Goodwill
Other Intangible Assets 4,162 2,621 3,636
Property, Plant & Equipment 3,887 7,160 3,645
Deferred Tax Asset 672 549 597
Other Non-Current Assets 552 854 498
10,058 11,909 9,131
Current Assets
Inventories 10,760 9,548 9,679
Trade and Other Receivables 9,186 9,776 9,545
Cash and Cash Equivalents 1,805 2,690 1,348
21,751 22,014 20,572
Liabilities
Current Liabilities
Trade and Other Payables (7,694) (7,117) (7,696)
Borrowings (15,550) (11,783) (12,870)
(23,244) (18,900) (20,566)
Net Current (Liabilities)/Assets (1,493) 3,114 6
Non-Current Liabilities
Borrowings (3,863) (5,033) (3,776)
Deferred Tax Liabilities (672) (549) (597)
Retirement Benefit Liability (1,099) (949) (1,016)
(5,634) (6,531) (5,389)
Net Assets 2,931 8,492 3,748
Shareholder's Equity
Ordinary Share Capital 523 523 523
Share Premium 13,915 13,915 13,915
Reverse Acquisition Merger Reserve 3,057 3,057 3,057
Translation Reserve 698 (12) 166
Retained Earnings (15,262) (8,991) (13,913)
Total Equity Attributable to Equity 2,931 8,492 3,748
Holders
Approved by the Board of Directors on Monday 25 May 2008
Alfons Buts Robert Cahill
NIPSON DIGITAL PRINTING SYSTEMS PLC
Unaudited results for the three months ended 31 March 2008
CONSOLIDATED CASH FLOW STATEMENT
3 months to 3 months to Full Year to
31 March 31 March 31 December
2008 2007 2007
£'000 £'000 £'000
Net Cash (Decrease) from Operating (428) (786) (1,444)
Activities
Cash Flows from Investing Activities
Purchase of Intangible Assets (414) (792) (2,480)
Purchase of Property, Plant & (15) (198) (188)
Equipment
Disposal of fixed assets 10 - 2,100
Interest Received - 10 75
Net Cash Used in Investing Activities (419) (980) (493)
Cash Flows from Financing Activities
Interest Paid (53) (248) (541)
Capital Repayments on Finance Leases (73) (79) (2,388)
Borrowings Raised - from Third Party 1,368 1,093 215
from Parent Undertaking 379 1,108 5,203
Borrowings Repaid (317) (10) (1,796)
Net Cash Used in Financing Activities 1,304 1,864 693
Net Increase/(Decrease) in Cash & 457 98 (1,244)
Cash Equivalents
Cash & Cash Equivalents at 1 January 1,348 2,592 2,592
Cash & Cash Equivalents at end of 1,805 2,690 1,348
period
NIPSON DIGITAL PRINTING SYSTEMS PLC
Unaudited results for the three months ended 31 March 2008
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Generated from Operations 3 months to 3 months to Full Year to
31 March 31 March 31 December
2008 2007 2007
£'000 £'000 £'000
Continuing Operations (1,349) (1,287) (6,209)
Loss before Taxation
Adjustments for:
Depreciation and Amortisation 705 272 1,619
Disposal of fixed assets - - 542
Finance Income (141) (10) (191)
Finance Expense 808 277 1,743
Increase in Retirement Benefit 83 30 97
Obligation
Share Based Payment Charge - - -
Other gains and losses 244 - -
Changes in Working Capital
(Increase)/Decrease in Inventories (1,081) (382) (513)
Decrease/(Increase) in Trade & Other 305 (11) 576
Receivables
(Decrease)/Increase in Payables (2) 325 892
Cash (Used in)/Generated from (428) (786) (1,444)
Continuing Operations
Corporation Tax Paid - - -
Net Cash (Decrease)/Increase from (428) (786) (1,444)
Continuing Operations
NOTES
1. Nature of Financial Information
The financial information contained within this interim report is unaudited. It does not constitute statutory accounts with in the
meaning of section 240 of the Companies Act 1985. The statutory accounts for the year ended 31 December 2007 have been signed and are
awaiting approval by members at the AGM to be held 4 June 2008. The auditor's report on those accounts was unqualified and did not contain
statements under section 237(2) or (3) of the Companies Act 1985.
2. Loss per Share
The Loss per Ordinary Share is calculated on the weighted average number of ordinary shares in issue during the period of 52,303,581
(2007: 52,303,581). Due to the loss in the period the basic and diluted EPS are the same.
3. Accounting Policies
The interim results have been prepared in accordance with IFRS accounting rules. The Accounting Policies used in the preparation of
these results were the accounting policies used in the preparation of the results for the year of 2007 and detailed in the notes to those
results (see Annual Report 2007 issued 13 May 2008).
NIPSON DIGITAL PRINTING SYSTEMS PLC
Unaudited results for the three months ended 31 March 2008
Note 4 : STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Share Share Reverse Translation Retained Total
Capit Premiu Acquisi Reserve Earnings
al m tion
Reserve
£'000 £'000 £'000
£'000 £'000 £'000
At 1 January 2007 523 13,915 3,057 (68) (7,704) 9,723
Loss for the Period - - - - (1,287) (1,287)
Exchange Differences on - - - 56 - 56
Translation of Foreign
Operations
At 31 March 2007 523 13,915 3,057 (12) (8,991) 8,492
At 1 January 2008 523 13,915 3,057 166 (13,913) 3,748
Loss for the Period - - - - (1,349) (1,349)
Exchange Differences on - - - 532 - 532
Translation of Foreign
Operations
At 31 March 2008 523 13,915 3,057 698 (15,262) 2,931
NOTE 5 (A) : GEOGRAPHICAL ANALYSIS OF SALES
Country / Region 3 months to 3 months to Full Year to
31 March 31 March 31 December
2008 2007 2007
£'000s £'000s £'000s
France 1,440 998 5,331
Rest of Europe 2,419 2,299 8,786
USA and Canada 1,692 1,291 5,685
Asia 589 458 3,255
Latin America 937 467 1,828
Other 495 324 2,450
Total 7,572 5,837 27,335
NIPSON DIGITAL PRINTING SYSTEMS PLC
Unaudited results for the three months ended 31 March 2008
NOTE 5 (B) : SEGMENTAL ANALYSIS
France Rest of
USA PLC
Total
Europe
3 months to31 3 months to31 Full Year to31 3 months to31 3 months to31
Full Year to31 3 months to31 3 months to31 Full Year to31 3 months to31 3 months to31 Full
Year to31 3 months to31 3 months to31 Full Year to31
March2008£*000s March2008£*000s Dec2007£*000s March2008£*000s March2008£*000s
Dec2007£*000s March2008£*000s March2007£*000s Dec2007£*000s March2008£*000s March2007£*000s
Dec2007£*000s March2008£*000s March2007£*000s Dec2007£*000s
Revenue 6,637 4,507 23,126 684 576
2,805 251 754 1,404 - -
- 7,572 5,837 27,335
Assets 18,296 18,892 17,399 3,204 3,098
3,468 2,806 3,388 2,568 7,503 8,545
6,268 31,809 33,923 29,703
Capital Expenditure 424 973 2,486 1 2
9 2 6 17 2 -
- 429 981 2,512
This information is provided by RNS
The company news service from the London Stock Exchange
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