Trading Update
April 07 2009 - 7:18AM
UK Regulatory
TIDMNDP
RNS Number : 2848Q
Nipson Digital Printing Systems PLC
07 April 2009
For Immediate Release
7 April 2009
NIPSON DIGITAL PRINTING SYSTEMS PLC ("the Company" or "the Group")
TRADING UPDATE
Today's announcement is an update on the announcement made by the Company on the
30 January 2009. At that time the Board expected to circularise shareholders
with an explanatory notice and an agenda for an Extraordinary General Meeting.
Since the nature of the transaction has yet to be determined the Board is not
yet in a position to call an EGM, if required. However, the Board remains in
discussions with the different parties in respect to the restructuring of the
Group's debt and equity and the outcome of the protective administration of its
French subsidiary, Nipson SAS (the Subsidiary).
The negotiations with the Administrator concerning the Subsidiary's exit from
the administrative process and protection are now in their final stages. The
French courts and the administrator have indicated that the Company and
Creacorp, its majority controlling shareholder, must either forgive the entire
debt owed to them by the Subsidiary or convert all or part of the debt into
capital. This may give rise to a Related Party transaction in accordance with
Rule 13 of the Aim Rules and will be dealt with accordingly.
The negotiations may or may not lead to a satisfactory outcome for the Company.
The Board has continued to look at the alternatives open to the Company. The
Board will review the financial situation of the Company once the negotiations
with the administrator and the courts have been finalised. Once the outcome of
the negotiations is known and the process finalised the Board will make a
further announcement. Until a successful outcome has been achieved the future of
the Company cannot be assured.
The total sales for the last quarter of the year to 31 December 2008 were less
than expected at GBP5.5 million (2007: GBP8.1m), the reasons for which have
already been aired. This brings the total sales for 2008 to GBP27.2 million
(2007: GBP27.0m). However, the movement of the exchange rates between the Pounds
Sterling and the Euro can be misleading as sales in Euros dropped considerably.
Equipment sales were substantially down on previous quarters of 2008 at GBP0.3
million to reach GBP6.8 million for the full year (2007: GBP8.1m) leading to
heavy factory operating losses. Recurrent revenues, which for the major part of
2008 had continued to increase steadily, declined in the fourth quarter at
GBP5.2 million and finished at GBP20.5 million for the full year (2007:
GBP18.9m). Although the recurrent revenues were higher in the earlier months of
2008, margins were under pressure from both exchange rates and higher material
costs. Operating losses, and exceptional losses resulting from restructuring
costs, have yet to be determined but will be material to the 2008 accounts.
The figures are all subject to audit. Since the Company no longer reports
quarterly results, the Group will not be issuing preliminary results. The Board
expects to circularise the shareholders in the beginning of May with the Annual
Report and Accounts for 2008 and the notice of the Annual General Meeting which
is to be held in June.
Contacts :
Nipson Digital Printing Systems PLC : Marc Maes, Chairman +32
(0) 494 500 423
or Robert Cahill, Group Finance Director +33 (0) 684 930 422
Beaumont Cornish Limited : Roland Cornish/Rosalind Hill Abrahams 0207 628 3396
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCILFLFSRIDIIA
Nipson Digital Printing Systems (LSE:NDP)
Historical Stock Chart
From May 2024 to Jun 2024
Nipson Digital Printing Systems (LSE:NDP)
Historical Stock Chart
From Jun 2023 to Jun 2024
Real-Time news about Nipson Dig. (London Stock Exchange): 0 recent articles
More Nipson Digital Print News Articles