TIDMOPE
RNS Number : 8670V
Optare PLC
19 December 2013
Optare plc
(the "Company". "Group" or "Optare")
Interim Results for the six months ended 30 September 2013
Optare is pleased to announce its results for the six months
ended 30 September 2013.
Key highlights:
-- New export distributor appointed in Australia via Ashok
Leyland's international network to take advantage of increased
market demand;
-- Offer received from regional growth fund of GBP1.5m linked to
developing new products for the export market;
-- Completion of design stage of the new Double Decker product
to be launched into the market in 2014, which will increase the
Company's product offering in the UK Market; and
-- Continued leadership in low carbon products through
investments, recognised recently by winning the National Transport
Award 2013 for the Versa Electric Bus that incorporated fast
charging technology.
Financial highlights:
-- EBITDA losses reduced by 33% to (GBP0.8m) compared to (H1: 2012 loss of GBP1.2m);
-- Gross margins increased to 10.3% (H1: 2012 5.4%), this was
primarily driven by a stronger product mix and continued focus on
material cost savings;
-- Successful restructuring of Company's debt to provide total
bank facilities of GBP23 m, providing additional funding to support
the business through to its goal of delivering profitability;
-- Administration costs reduced by 10% as overall headcount
reduced from 443 to 396 at the end of September 2013. Further cost
reduction programmes are in place to deliver over GBP1.0m of fixed
costs savings in the full year of 2013/14; and
-- Loss per share reduced from 0.15p to 0.08p.
Commenting on the interim results, John Fickling, Optare's
Chairman: "I am pleased with the progress we have made to improve
efficiency and reduce fixed costs. We continue to invest in people,
innovation and new product opportunities for the UK and export
markets we look to the future of the Company with increased
confidence.
For further information:
Optare plc Tel: +44 (0) 8434 873 200
Enrico Vasallo - Chief Executive
Cenkos Securities plc Tel: +44 (0) 20 7397 8900
Stephen Keys/Camilla Hume
BUSINESS AND FINANCIAL REVIEW
-- Turnover for the 6 months ended 30 September 2013 was
GBP32.4m (H1 2012: GBP46.7m) primarily due to completion of kit
exports in 2012. Lower demand in April and May of 2013 impacted the
first half results;
-- There are no exceptional costs for the first half of 2013 (H1 2012: GBP1.1m);
-- The Board has continued to invest in the long-term future of
the business with capital expenditure in the 6 months to 30
September 2013 of GBP0.9m (H1 2012: GBP1.0m). The expenditure was
principally on product development;
-- Optare's banking arrangements were renegotiated by Barclays
with a total bank facility of GBP23m now available. This includes
additional facilities of GBP7m which has been put in place to meet
the Company's liabilities as they fall due and investment in new
products; and
-- Loss per share reduced from 0.15p to 0.08p.
Current trading and prospects
-- The order book as at 30September 2013 was GBP22.5m (30
September 2012: 19.4m). The market continues to move from Optare's
strong provincial customer base to larger operating groups. We are
continuing to focus on both types of customer segments to increase
volumes in our traditional single deck UK market.
-- Optare is now building its Euro6 vehicles for delivery in Q4 FY 14 (January to March 2014).
-- The Company remains on plan to introduce its Double Decker
product in Q1 of calendar 2014, the launch of which the Directors
believe will enable Optare to participate in all UK product
segments from Q1 2014 onwards.
-- Optare has been successful in winning initial orders in
Australia for the whole single deck product range. Further sizeable
orders are expected in 2014 through our dealers in Australia. We
are excited about the growth prospects and market demand in this
part of the world for Optare's products.
-- Optare continues to be the leader in low emission technology
and have substantial lead on the competition. With increasing focus
on life cycle costs, Optare continues to invest in improving fuel
efficiency of its product range.
Board and management changes
-- As previously announced, Enrico Vasalla has been appointed as
the CEO of Optare replacing Per Gustav Nilsson who was the interim
CEO since Jan 2013. Enrico has gained substantial experience in the
bus industry over the last fifteen years in senior positions across
Africa, Australasia and latterly South America and we are pleased
to have him on board. He brings with him a wealth of international
sales experience in the bus industry gained in several of the key
markets that the Company is targeting as part of the strategic aim
of developing a stronger export market.
Outlook
-- The Board still anticipates an increase in UK demand in 2014,
particularly for single deck buses as the larger operating Groups
invest in new vehicles. Additionally, an increasing proportion of
future sales are expected to come from export markets which will
help to de-risk the Group's current dependency on a cyclical UK
market.
John Fickling
Non- executive Chairman
Date
Consolidated income statement for the six months ended
30th September 2013 (unaudited)
Unaudited Unaudited Audited
6 month 6 month
period period 12 month
ended ended 30 period
30 September September ended 31
2013 2012 March 2013
GBP000's GBP000's GBP000's
Revenue 32,413 46,692 75,938
Cost of Sales
non exceptional (29,083) (43,390) (70,695)
exceptional - (774) (1,483)
total (29,083) (44,164) (72,178)
-------------- ----------- ------------
Gross profit 3,330 2,528 3,760
% 10.3% 5.4% 5.0%
Administrative expenses (4,410) (4,765) (9,351)
Amortisation of intangibles (278) (334) (643)
Loss from operations (1,358) (2,571) (6,234)
Restructuring and other
exceptional costs - (314) (328)
Finance income - - -
Finance costs (458) (416) (788)
Loss for the period from
continuing operations (1,816) (3,301) (7,350)
Loss on ordinary activities
before taxation (1,816) (3,301) (7,350)
Taxation - - -
Profit attributable to the
equity holders of the parent
company (1,816) (3,301) (7,350)
-------------- ----------- ------------
Earnings/(loss) per ordinary
share
From continuing operations
after exceptional items
(basic and diluted) (0.08)p (0.15)p (0.30)p
From continuing operations
before exceptional items
(basic and diluted) (0.08)p (0.10)p (0.20)p
There were no recognised gains or losses in the period other
than the profit for the period and therefore no statement of
recognised income and expenses is presented.
Consolidated balance sheet as at 30th September 2013
(unaudited)
Unaudited Unaudited Audited
6 month 6 month
period ended period 12 month
30 September ended 30 period ended
2013 September 31 March
2012 2013
GBP000's GBP000's GBP000's
Non-current assets
Goodwill 8,574 8,574 8,574
Other intangible assets 8,426 8,289 8,271
Property, plant equipment 3,484 3,258 3,356
20,484 20,121 20,201
------------------------------------------------------------ ----------- --------------
Current assets
Inventories 6,046 6,408 10,338
Trade and other receivables 9,383 5,701 7,720
Cash & Cash Equivalents - 1,745 -
15,429 13,854 20,005
------------------------------------------------------------ ----------- --------------
Total assets 35,913 33,975 38,259
------------------------------------------------------------ ----------- --------------
Current liabilities
Trade and other payables 13,610 16,228 20,466
Bank loans and overdrafts 9,344 15,708 18,652
Current provisions 2,567 1,400 2,217
Obligations under finance leases 69 55 79
25,590 33,391 41,414
------------------------------------------------------------ ----------- --------------
Non-current liabilities
Bank loans 15,000 - -
Provisions 1,727 1,062 1,394
Obligations under finance leases 150 211 189
16,877 1,273 1,583
------------------------------------------------------------ ----------- --------------
Total liabilities 42,467 34,664 42,997
------------------------------------------------------------ ----------- --------------
Net Assets (6,554) (689) (4,738)
------------------------------------------------------------ ----------- --------------
Equity
Called up share capital 9,005 9,005 9,005
Share premium 32,396 29,965 32,396
Share based payment reserve 42 198 42
Merger reserve 5,542 5,542 5,542
Retained loss (53,539) (45,399) (51,723)
Total equity attributable to equity
holders of the parent (6,554) (689) (4,738)
------------------------------------------------------------ ----------- --------------
Consolidated Cash flow Statement for the six month period ended
30(th) September 2013 (unaudited)
Unaudited Unaudited Audited Audited
6 month 6 month
period ended period
30 September ended 12 month
2013 30 period
September ended 31
2012 March 2013
GBP000's GBP000's GBP000's
Operating activities
Loss before tax (1,816) (3,301) (7,350)
Tax
Depreciation and amortisation 568 613 1,194
Share based payments - - -
Net finance expense 458 416 788
Loss on disposal of fixed assets - 20 19
Operating cash flows before movements
in working capital (790) (2,252) (5,349)
---------------------------------------- ---------- --------------
Movement in inventories 4,292 4,867 937
Movement in trade and other receivables (1,663) 2,442 423
Movement in trade and other payables (6,856) (3,941) 297
Movement in provisions 685 6 1,155
Cash absorbed by operations (4,332) 1,122 (2,537)
---------------------------------------- ---------- --------------
Interest received -
Interest paid (458) (416) (788)
Net cash flow from operating activities (4,790 ) 706 (3,325)
---------------------------------------- ---------- --------------
Investing activities
Purchase of property, plant and equipment (418) (478) (800)
Internal capitalised costs (433) (542) (882)
Proceeds of property sale - 1,000 1,000
Net cash flow from investing activities (851) (20) (682)
---------------------------------------- ---------- --------------
Financing activities
Loan repayments 7,000 - -
Proceeds from issuance of ordinary
shares - - -
Short term loans 202 (617) 2,023
Hire purchase agreement repayments (15) (28) (60)
Net cash flow from financing activities 7,187 (645) 1,963
---------------------------------------- ---------- --------------
Net increase/(decrease) in cash and
cash equivalents 1,546 41 (2,044)
Cash and cash equivalents at the
beginning of the period (5,445) (3,401) (3,401)
---------------------------------------- ---------- --------------
Cash and cash equivalents at the
end of the period (3,899) (3,360) (5,445)
---------------------------------------- ---------- --------------
Consolidated statement of changes in equity for the six month
period ended 30 September 2013 (unaudited)
Share
based
Share Share Merger Retained payment
Capital Premium Reserve earnings reserve Total
GBP000's GBP000's GBP000's GBP000's GBP000's GBP000's
Balance at 31st March 2013 9,005 32,396 5,542 (51,723) 42 (4,738)
Loss for the period (1,816) (1,816)
Total comprehensive income
for the year 9,005 32,396 5,542 (53,539) 42 (6,554)
Balance at 30 September 2013 9,005 32,396 5,542 (53,539) 42 (6,554)
--------- --------- --------- ---------- --------- ---------
Notes to the half yearly financial information for the six month
period ended 30 September 2013
1. Basis of preparation
The unaudited consolidated half-yearly financial information for
the half year ended 30 September 2013 has been prepared in
accordance with IAS 34, 'Interim financial reporting' as adopted by
the European Union
The interim financial statements have been prepared in
accordance with the recognition and measurement principles of
International Financial Reporting Standards (IFRS) as adopted in
the EU. The current and comparative periods to September have been
prepared using the accounting policies adopted in the annual
financial statements for the period ended 31 March.
The financial information contained in this interim report does
not constitute statutory accounts as defined in section 434 of the
Companies Act 2006. This report has not been audited by the Group's
auditors
Comparative figures for the period ended 31 March 2013 have been
extracted from the statutory financial statements for that period
which carried an unqualified audit report, did not contain a
statement under section 237(2) or (3) of the Companies Act 1985 and
have been delivered to the Registrar of Companies.
The interim report was approved by the Group's Board of
Directors on 18 December 2013.
2 Principal risks and uncertainties for the six months ending 30 September 2013
As for most businesses, there are a range of risks and
uncertainties facing the Group. The principal risks and
uncertainties are described in the Group's 2013 Annual Report and
Accounts which can be downloaded from the Group's website
(www.optare.com)
3 Loss per ordinary share
The calculation of earnings per ordinary share is based on the
profit or loss for the period divided by the weighted average
number of equity voting shares in issue. There were no potentially
dilutive ordinary shares in existence during the period and so
basic and diluted earnings per share are identical.
Unaudited Unaudited Audited
Six month Six month 12 month
period period period
ended 30 ended 30 ended 31
September September March 2013
2013 2012
GBP000's GBP000's GBP000's
Loss for purposes of basis loss
per share (1,816) (3,301) (7,350)
-------------- -------------- --------------
(net loss for the period attributable
to equity holders of the parent)
Number Number Number
Weighted average number of ordinary
shares for the purposes of basic
earnings per share 2,235,291,827 2,235,291,827 2,235,291,827
Basic and fully diluted loss
per share (0.08)p (0.15)p (0.30)p
Excluding Exceptional items
Loss for purposes of basis loss
per share (1,816) (3,301) (7,350)
-------------- -------------- --------------
(net loss for the period attributable
to equity holders of the parent)
Adjustment to exclude exceptional
costs - 1,108 1,811
Loss from continuing operations
for the purposes of basic earnings
per share (1,816) (2,193) (5,539)
-------------- -------------- --------------
Basic and fully diluted loss
per share (0.08)p (0.10)p (0.20)p
This information is provided by RNS
The company news service from the London Stock Exchange
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