TIDMPEG
RNS Number : 0745T
Petards Group PLC
22 September 2010
PETARDS GROUP PLC
INTERIM RESULTS ANNOUNCEMENT
Petards Group plc ('Petards'), the AIM quoted developer of advanced security and
surveillance systems, reports its interim results for the six months to 30 June
2010.
Financial Highlights
· Revenues of GBP5.3m (2009: GBP6.6m)
· Gross margins increased to 41.1% (2009: 36.5%)
· Profit before tax of GBP115,000 (2009: GBP242,000)
· Basic and diluted earnings per share of 0.02p (2009: 0.04p)
· Net cash outflow from operating activities of GBP0.9m (2009: GBP0.6m
inflow) - due to early receipt of over GBP1m in H2 '09 for which related cash
outflows occurred in early 2010
· Net debt of GBP1.9m (2009: GBP1.8m)
Operational Highlights
· Overseas revenues up to GBP1.4m (2009: GBP0.8m) due to increased eyeTrain
sales
· Revenues for emergency services and defence products lower than in 2009
· Delivery of on-board CCTV on East Coast Trains accounts for c. 20% of
revenues
· New win customer with Spanish train builder, Vossloh
· Pipeline of opportunities for rail business is strong
Commenting on the current outlook, Tim Wightman, Chairman, said:
"We expect results for the second half to be slightly weaker than in the first
half. Although revenue should be higher, margins are expected to be lower.
However, we do anticipate a significant order intake in the balance of the year
which will provide a good base from which to build for 2011."
Contacts:
+------------------------------+---------------------------------------+
| Petards Group plc | www.petards.com |
+------------------------------+---------------------------------------+
| Andy Wonnacott, Finance | +44 (0) 191 420 3000 |
| Director | |
+------------------------------+---------------------------------------+
| | |
+------------------------------+---------------------------------------+
| WH Ireland Limited | www.wh-ireland.co.uk |
+------------------------------+---------------------------------------+
| Mike Coe / Marc Davies | +44 (0) 117 945 3470 |
+------------------------------+---------------------------------------+
| | |
+------------------------------+---------------------------------------+
| Walbrook PR Limited | www.walbrookpr.com |
+------------------------------+---------------------------------------+
| Paul McManus | Tel: +44 (0) 20 7933 8787 |
+------------------------------+---------------------------------------+
| | Mob: +44 (0) 7980 541 893 |
+------------------------------+---------------------------------------+
| | paul.mcmanus@walbrookpr.com |
+------------------------------+---------------------------------------+
Chairman's Statement
Overview of the Results
In the first half of 2010 the Group performed broadly in line with our
expectations although on lower than expected revenues.
Profit before tax for the six months ended 30 June 2010 was GBP115,000 (2009:
GBP242,000) despite revenues of GBP5.3m being almost 20% lower than the same
period last year (2009: GBP6.6m). An improvement in margins aided the first
half result and helped offset the impact of lower revenues. The profit after
tax was GBP115,000 (2009: GBP251,000) resulting in basic and diluted earnings
per share of 0.02p (2009: 0.04p).
Government spending restrictions resulted in revenues for both our defence and
emergency services (ProVida) products being lower, with defence product revenues
from electronic countermeasures and ruggedised electronics control systems for
armoured vehicles being particularly affected. However, revenues from eyeTrain
products were up significantly reflecting the commencement of delivery of some
of the large orders we secured in 2009.
Margins in the period were 41.1% as compared with 36.5% for the first half of
last year. These reflected better than expected final margins on some projects
started in 2009 and completed during the period and also the fact that some of
the reduction in revenues related to products with lower than average margins.
We expect margins for the full year will be slightly below those achieved in
2009.
Cash Flow and Balance Sheet
As I reported in April, we achieved an exceptional operating cash inflow during
the second half of 2009 which was aided by early receipt of over GBP1m for which
the related cash outflows took place in the early part of 2010. Net cash flows
for the first half of 2010 were therefore reduced by this same amount resulting
in a net cash outflow from operating activities for the six months ended 30 June
2010 of GBP0.9m (2009: GBP0.6m inflow).
The Group's net debt at 30 June 2010 was GBP1.9m (30 June 2009: GBP1.8m). Net
debt has increased during the six months principally due to two main factors:
the first being due to the exceptional cash performance in 2009 referred to
above. Secondly, contract work-in-progress relating to eyeTrain products had
also temporarily increased as a consequence of significant orders received
during 2009 and stocking levels of emergency services products that had been
held in anticipation of projects that have been delayed were also higher. This
stock is standard product and is being utilised on other projects and is
expected to be utilised during the second half year.
The Group's total equity position continued to improve and at 30 June 2010 it
showed a deficit of GBP0.25m compared with a deficit of GBP1.14m as at 30 June
2009 and GBP0.29m at 31 December 2009.
Operating Review
The Company's operational performance has improved markedly over recent years.
However, the present economic climate and the uncertainty pending the outcome of
the UK government's public spending review this Autumn has meant that the rate
at which those improvements are now being made has slowed markedly over the
course of the past few months. The impact of these factors is by no means
universal, although all the industry sectors in which we operate are being
affected to some degree or other. Programmes involving new platforms in
particular are being affected although we believe this is likely to present
opportunities for refurbishment/life extension projects for existing equipment.
Examples of this are the well publicised deferral of UK new train programmes
such as Intercity Express and Thameslink, the loss of which we would hope to
offset from our strong position in supplying to the train refurbishment market.
A pleasing feature of the first half year was the increased contribution of
overseas revenues. These accounted for GBP1.4m of total revenues, up from
GBP0.8m in the same period in 2009. Revenues from eyeTrain accounted for this
increase and more than offset the lower level of ProVida product sales achieved
compared with 2009. However, while for the full year overseas revenues from
eyeTrain products will exceed the levels achieved in 2009, we expect our overall
overseas revenues will be lower due to weaker demand for ProVida products and
delays in the placement of expected orders from overseas customers.
As mentioned above, overall revenues for our emergency services and defence
products in the six months were lower than in 2009. While revenues from
products for the defence industry were expected to be lower, the lower demand
for emergency services products both at home and overseas was both unexpected
and disappointing. Orders for these products tend to have a sales cycle
measured in weeks rather than months and there is no sign of any significant
upturn in the short term and so we remain cautious on revenues for the balance
of the year.
Deliveries of on-board CCTV systems under our contract with East Coast Trains
continued and accounted for nearly 20% of revenues during the period.
Deliveries will continue throughout 2010 and the contract is expected to be
substantially complete by the year end. During the period we secured orders to
supply equipment to another refurbishment programme being undertaken by Northern
Rail in conjunction with the train owners, Angel Trains and Porterbrook Leasing.
We were also pleased to add Vossloh, a Spanish train builder to our list of
European customers when they selected our on-board CCTV and Automatic Passenger
Counting Systems for use on their new train-tram series. The first eyeTrain
systems were supplied during the first half year for use on Mallorca's tram and
train network between Manacor and Artácan.
Our pipeline of opportunities for future rail business in the UK and overseas is
strong although as previously reported, the majority of current overseas
opportunities are for new build trains through train builders and the sales
cycle for these runs into many months or in some cases years and so the benefits
of the business development activities we have been undertaking will not be
immediately apparent.
Research and Development
During the period the Group invested GBP0.3m (2009: GBP0.2m) in product
development of which GBP0.2m (2009: GBP0.2m) was capitalised. Net of
amortisation, capitalised development expenditure increased by GBP0.1m (2009:
GBP0.2m).
Products whose development phase was completed during the period included our
ProVida 4000 in-car speed detection and video evidence system, ProVida 4000
radar system and the new ProVida DVR. We anticipate taking our first orders for
these new products by the end of the year and are optimistic that these, along
with other products currently under development, will help generate additional
sales.
In addition, we have continued to develop the capabilities of our eyeTrain
system and have also been undertaking the engineering work to create the
interfaces to enable it to be integrated onto an increasing number of train
variants.
Strategy
The Board's overall objective remains to achieve attractive and sustainable
rates of growth and returns in the more sophisticated or high-end of the
security, surveillance and ruggedized electronics market. Our strategy to
achieve this objective is:
· to focus upon our core products which are used in the rail transport,
emergency services and defence industries;
· to continue to invest in developing our technologies through our product
roadmap;
· to increase sales both organically and, when appropriate, by acquisition;
· to increase sales outside of the UK; and
· to improve operating margins through cost management.
Our progress during the period has not been helped by the current market
conditions. However, as reported above we have moved forward with our product
development and overall sales outside of the UK and margins were up on the same
period last year.
Outlook
The concern that I expressed in my report to you in April is proving to be well
founded and the uncertainty over available programme budgets faced by our
customers in the emergency services and defence industries in particular is
resulting in delays in the placement of orders and in some cases programme
cancellations. Some significant orders which we were expecting to secure in the
second and third quarters have been delayed and are now unlikely to contribute
significantly to the 2010 results.
However, we expect that despite the likely significant nature of government
expenditure cuts to be implemented in October, once those decisions have been
taken this should enable customers to plan ahead with some certainty and release
orders for those programmes that will be proceeding.
We expect results for the second half to be slightly weaker than in the first
half. Although revenue should be higher, margins are expected to be lower.
However, we do anticipate a significant order intake in the balance of the year
which will provide a good base from which to build for 2011.
Tim Wightman
21 September 2010
Condensed Consolidated Income Statement
for the six months ended 30 June 2010
+--------------------+---+---+---+------+-----+-----------+-----------+----------+
| | | | |Note | | Unaudited | Unaudited | Audited |
| | | | | | | 6 months | 6 months | Year |
| | | | | | | ended | ended | ended |
| | | | | | | 30 June | 30 June | 31 |
| | | | | | | 2010 | 2009 | December |
| | | | | | | | | 2009 |
+--------------------+---+---+---+------+-----+-----------+-----------+----------+
| | | | | | | GBP000 | GBP000 | GBP000 |
+--------------------+---+---+---+------+-----+-----------+-----------+----------+
| | | | | | | | | |
+--------------------+---+---+---+------+-----+-----------+-----------+----------+
| Revenue | | | | | | 5,311 | 6,589 | 15,946 |
+--------------------+---+---+---+------+-----+-----------+-----------+----------+
| Cost of sales | | | | | | (3,130) | (4,182) | (9,908) |
+--------------------+---+---+---+------+-----+-----------+-----------+----------+
| | | | | | | | | |
+--------------------+---+---+---+------+-----+-----------+-----------+----------+
| Gross profit | | | | | | 2,181 | 2,407 | 6,038 |
+--------------------+---+---+---+------+-----+-----------+-----------+----------+
| | | | | | | | | |
+--------------------+---+---+---+------+-----+-----------+-----------+----------+
| Administrative | | | | | | (2,077) | (2,099) | (4,770) |
| expenses | | | | | | | | |
+--------------------+---+---+---+------+-----+-----------+-----------+----------+
| | | | | | | | | |
+--------------------+---+---+---+------+-----+-----------+-----------+----------+
| Operating profit | | | | | | 104 | 308 | 1,268 |
+--------------------+---+---+---+------+-----+-----------+-----------+----------+
| Financial income | | | | | | 42 | 10 | 14 |
+--------------------+---+---+---+------+-----+-----------+-----------+----------+
| Financial expenses | | | | | | (31) | (76) | (262) |
+--------------------+---+---+---+------+-----+-----------+-----------+----------+
| | | | | | | | | |
+--------------------+---+---+---+------+-----+-----------+-----------+----------+
| Profit before | | | | | | 115 | 242 | 1,020 |
| income tax | | | | | | | | |
+--------------------+---+---+---+------+-----+-----------+-----------+----------+
| Income tax | | | | 3 | | - | 9 | 88 |
+--------------------+---+---+---+------+-----+-----------+-----------+----------+
| | | | | | | | | |
+--------------------+---+---+---+------+-----+-----------+-----------+----------+
| Profit for the period | | | | | | |
| attributable to equity | | | | 115 | 251 | 1,108 |
| holders of the company | | | | | | |
+----------------------------+---+------+-----+-----------+-----------+----------+
| | | | | | | | | |
+--------------------+---+---+---+------+-----+-----------+-----------+----------+
| Earnings per share | | | | | | | | |
+--------------------+---+---+---+------+-----+-----------+-----------+----------+
| Basic and diluted | | | | 4 | | 0.02p | 0.04p | 0.17p |
+--------------------+---+---+---+------+-----+-----------+-----------+----------+
| | | | | | | | | |
+--------------------+---+---+---+------+-----+-----------+-----------+----------+
The above results are derived from continuing operations.
Condensed Consolidated Statement of Comprehensive Income
for the six month period ended 30 June 2010
+--------------------------------+-----------+-----------+-----------+
| | Unaudited | Unaudited | Audited |
| | 6 months | 6 months | Year |
| | ended | ended | ended |
| | 30 June | 30 June | 31 |
| | 2010 | 2009 | December |
| | | | 2009 |
+--------------------------------+-----------+-----------+-----------+
| | GBP000 | GBP000 | GBP000 |
+--------------------------------+-----------+-----------+-----------+
| | | | |
+--------------------------------+-----------+-----------+-----------+
| Profit for period | 115 | 251 | 1,108 |
+--------------------------------+-----------+-----------+-----------+
| | | | |
+--------------------------------+-----------+-----------+-----------+
| Other comprehensive income | | | |
+--------------------------------+-----------+-----------+-----------+
| Currency translation on | (83) | 149 | 127 |
| foreign currency net | | | |
| investments | | | |
+--------------------------------+-----------+-----------+-----------+
| | | | |
+--------------------------------+-----------+-----------+-----------+
| Total comprehensive income for | 32 | 400 | 1,235 |
| the period | | | |
+--------------------------------+-----------+-----------+-----------+
| | | | |
+--------------------------------+-----------+-----------+-----------+
Condensed Consolidated Statement of Changes in Equity
for the six month period ended 30 June 2010
+--------------------------+---------+---------+----------+-------------+---------+
| | | | | Currency | |
| | Share | Share | Retained | translation | Total |
| | capital | premium | earnings | differences | equity |
+--------------------------+---------+---------+----------+-------------+---------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+--------------------------+---------+---------+----------+-------------+---------+
| | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| Balance at 1 January | 6,367 | 23,255 | (30,866) | (317) | (1,561) |
| 2009 (audited) | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| Profit for the period | - | - | 251 | - | 251 |
+--------------------------+---------+---------+----------+-------------+---------+
| Other comprehensive | - | - | - | 149 | 149 |
| income | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| Total comprehensive | - | - | 251 | 149 | 400 |
| income for the period | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| Equity-settled share | - | - | 18 | - | 18 |
| based payments | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| Balance at 30 June 2009 | 6,367 | 23,255 | (30,597) | (168) | (1,143) |
| (unaudited) | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| Balance at 1 January | 6,367 | 23,255 | (30,866) | (317) | (1,561) |
| 2009 (audited) | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| Profit for the year | - | - | 1,108 | - | 1,108 |
+--------------------------+---------+---------+----------+-------------+---------+
| Other comprehensive | - | - | - | 127 | 127 |
| income | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| Total comprehensive | - | - | 1,108 | 127 | 1,235 |
| income for the year | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| Equity-settled share | - | - | 34 | - | 34 |
| based payments | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| Balance at 31 December | 6,367 | 23,255 | (29,724) | (190) | (292) |
| 2009 (audited) | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| Balance at 1 January | 6,367 | 23,255 | (29,724) | (190) | (292) |
| 2010 (audited) | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| Profit for the period | - | - | 115 | - | 115 |
+--------------------------+---------+---------+----------+-------------+---------+
| Other comprehensive | - | - | - | (83) | (83) |
| income | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| Total comprehensive | - | - | 115 | (83) | 32 |
| income for the period | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| Equity-settled share | - | - | 9 | - | 9 |
| based payments | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| Balance at 30 June 2010 | 6,367 | 23,255 | (29,600) | (273) | (251) |
| (unaudited) | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
| | | | | | |
+--------------------------+---------+---------+----------+-------------+---------+
Condensed Consolidated Balance Sheet
at 30 June 2010
+---------------------------+---------+-----------+-----------+----------+
| | | Unaudited | Unaudited | Audited |
| | | 30 June | 30 June | 31 |
| | | 2010 | 2009 | December |
| | | | | 2009 |
+---------------------------+---------+-----------+-----------+----------+
| ASSETS | | GBP000 | GBP000 | GBP000 |
+---------------------------+---------+-----------+-----------+----------+
| Non-current assets | | | | |
+---------------------------+---------+-----------+-----------+----------+
| Property, plant and | | 237 | 316 | 267 |
| equipment | | | | |
+---------------------------+---------+-----------+-----------+----------+
| Goodwill | | 401 | 401 | 401 |
+---------------------------+---------+-----------+-----------+----------+
| Development costs | | 720 | 536 | 621 |
+---------------------------+---------+-----------+-----------+----------+
| Deferred tax assets | | 356 | 310 | 356 |
+---------------------------+---------+-----------+-----------+----------+
| | | | | |
+---------------------------+---------+-----------+-----------+----------+
| | | 1,714 | 1,563 | 1,645 |
+---------------------------+---------+-----------+-----------+----------+
| | | | | |
+---------------------------+---------+-----------+-----------+----------+
| Current assets | | | | |
+---------------------------+---------+-----------+-----------+----------+
| Inventories | | 1,706 | 856 | 941 |
+---------------------------+---------+-----------+-----------+----------+
| Trade and other | | 1,859 | 1,828 | 3,450 |
| receivables | | | | |
+---------------------------+---------+-----------+-----------+----------+
| Cash and cash equivalents | | 21 | 267 | 701 |
| | | | | |
+---------------------------+---------+-----------+-----------+----------+
| | | | | |
+---------------------------+---------+-----------+-----------+----------+
| | | 3,586 | 2,951 | 5,092 |
+---------------------------+---------+-----------+-----------+----------+
| | | | | |
+---------------------------+---------+-----------+-----------+----------+
| Total assets | | 5,300 | 4,514 | 6,737 |
+---------------------------+---------+-----------+-----------+----------+
| | | | | |
+---------------------------+---------+-----------+-----------+----------+
| EQUITY AND LIABILITIES | | | | |
+---------------------------+---------+-----------+-----------+----------+
| Equity attributable to | | | | |
| equity holders of the | | | | |
| parent | | | | |
+---------------------------+---------+-----------+-----------+----------+
| Share capital | | 6,367 | 6,367 | 6,367 |
+---------------------------+---------+-----------+-----------+----------+
| Share premium | | 23,255 | 23,255 | 23,255 |
+---------------------------+---------+-----------+-----------+----------+
| Currency translation | | (273) | (168) | (190) |
| reserve | | | | |
+---------------------------+---------+-----------+-----------+----------+
| Retained earnings deficit | | (29,600) | (30,597) | (29,724) |
+---------------------------+---------+-----------+-----------+----------+
| | | | | |
+---------------------------+---------+-----------+-----------+----------+
| Total equity | | (251) | (1,143) | (292) |
+---------------------------+---------+-----------+-----------+----------+
| | | | | |
+---------------------------+---------+-----------+-----------+----------+
| Non-current liabilities | | | | |
+---------------------------+---------+-----------+-----------+----------+
| Interest-bearing loans | | 799 | 700 | 1,050 |
| and borrowings | | | | |
+---------------------------+---------+-----------+-----------+----------+
| Deferred tax liabilities | | 66 | - | 66 |
+---------------------------+---------+-----------+-----------+----------+
| | | | | |
+---------------------------+---------+-----------+-----------+----------+
| | | 865 | 700 | 1,116 |
+---------------------------+---------+-----------+-----------+----------+
| | | | | |
+---------------------------+---------+-----------+-----------+----------+
| Current liabilities | | | | |
+---------------------------+---------+-----------+-----------+----------+
| Bank overdraft | | 669 | - | - |
+---------------------------+---------+-----------+-----------+----------+
| Other | | 450 | 1,375 | 400 |
| interest-bearing loans | | | | |
| and borrowings | | | | |
+---------------------------+---------+-----------+-----------+----------+
| Trade and other | | 3,567 | 3,582 | 5,513 |
| payables | | | | |
+---------------------------+---------+-----------+-----------+----------+
| | | | | |
+---------------------------+---------+-----------+-----------+----------+
| | | 4,686 | 4,957 | 5,913 |
+---------------------------+---------+-----------+-----------+----------+
| | | | | |
+---------------------------+---------+-----------+-----------+----------+
| Total liabilities | | 5,551 | 5,657 | 7,029 |
+---------------------------+---------+-----------+-----------+----------+
| | | | | |
+---------------------------+---------+-----------+-----------+----------+
| Total equity and | | 5,300 | 4,514 | 6,737 |
| liabilities | | | | |
+---------------------------+---------+-----------+-----------+----------+
| | | | | |
+---------------------------+---------+-----------+-----------+----------+
Condensed Consolidated Statement of Cash Flows
for the six month period ended 30 June 2010
+--------------------------------------------+----+-----------+-----------+----------+
| | | Unaudited | Unaudited | Audited |
| | | 6 months | 6 months | Year |
| | | ended | ended | ended |
| | | 30 June | 30 June | 31 |
| | | 2010 | 2009 | December |
| | | | | 2009 |
+--------------------------------------------+----+-----------+-----------+----------+
| | | GBP000 | GBP000 | GBP000 |
+--------------------------------------------+----+-----------+-----------+----------+
| Cash flows from operating activities | | | | |
+--------------------------------------------+----+-----------+-----------+----------+
| Profit for the period | | 115 | 251 | 1,108 |
+--------------------------------------------+----+-----------+-----------+----------+
| Adjustments for: | | | | |
+--------------------------------------------+----+-----------+-----------+----------+
| Depreciation | | 61 | 74 | 180 |
+--------------------------------------------+----+-----------+-----------+----------+
| Amortisation of intangible assets | | 120 | 23 | 206 |
+--------------------------------------------+----+-----------+-----------+----------+
| Financial income | | (42) | (10) | (14) |
+--------------------------------------------+----+-----------+-----------+----------+
| Financial expense | | 31 | 76 | 262 |
+--------------------------------------------+----+-----------+-----------+----------+
| Equity settled share-based payment | | 9 | 18 | 34 |
| expenses | | | | |
+--------------------------------------------+----+-----------+-----------+----------+
| Income tax credit | | - | (9) | (88) |
+--------------------------------------------+----+-----------+-----------+----------+
| | | | | |
+--------------------------------------------+----+-----------+-----------+----------+
| | | 294 | 423 | 1,688 |
+--------------------------------------------+----+-----------+-----------+----------+
| Change in trade and other receivables | | 1,591 | 823 | (822) |
+--------------------------------------------+----+-----------+-----------+----------+
| Change in inventories | | (765) | 517 | 432 |
+--------------------------------------------+----+-----------+-----------+----------+
| Change in trade and other payables | | (2,044) | (1,134) | 800 |
+--------------------------------------------+----+-----------+-----------+----------+
| | | | | |
+--------------------------------------------+----+-----------+-----------+----------+
| Cash (outflow)/inflow from operations | | (924) | 629 | 2,098 |
+--------------------------------------------+----+-----------+-----------+----------+
| Interest received | | 42 | 10 | 14 |
+--------------------------------------------+----+-----------+-----------+----------+
| Interest paid | | (31) | (93) | (287) |
+--------------------------------------------+----+-----------+-----------+----------+
| Income tax received | | 9 | 90 | 205 |
+--------------------------------------------+----+-----------+-----------+----------+
| | | | | |
+--------------------------------------------+----+-----------+-----------+----------+
| Net cash (outflow)/inflow from operating | | (904) | 636 | 2,030 |
| activities | | | | |
+--------------------------------------------+----+-----------+-----------+----------+
| | | | | |
+--------------------------------------------+----+-----------+-----------+----------+
| Cash flows from investing activities | | | | |
+--------------------------------------------+----+-----------+-----------+----------+
| Capitalised development expenditure | | (219) | (214) | (482) |
+--------------------------------------------+----+-----------+-----------+----------+
| Acquisition of property, plant and | | (31) | (53) | (110) |
| equipment | | | | |
+--------------------------------------------+----+-----------+-----------+----------+
| | | | | |
+--------------------------------------------+----+-----------+-----------+----------+
| Net cash outflow from investing activities | | (250) | (267) | (592) |
+--------------------------------------------+----+-----------+-----------+----------+
| | | | | |
+--------------------------------------------+----+-----------+-----------+----------+
| Cash flows from financing activities | | | | |
+--------------------------------------------+----+-----------+-----------+----------+
| Decrease in committed overdraft facility | | - | (356) | (356) |
+--------------------------------------------+----+-----------+-----------+----------+
| Repayment of bank borrowings | | (201) | - | (625) |
+--------------------------------------------+----+-----------+-----------+----------+
| | | | | |
+--------------------------------------------+----+-----------+-----------+----------+
| Net cash outflow from financing activities | | (201) | (356) | (981) |
+--------------------------------------------+----+-----------+-----------+----------+
| | | | | |
+--------------------------------------------+----+-----------+-----------+----------+
| Net (decrease)/increase in cash and cash | | (1,355) | 13 | 457 |
| equivalents | | | | |
+--------------------------------------------+----+-----------+-----------+----------+
| Cash and cash equivalents at start of | | 701 | 268 | 268 |
| period | | | | |
+--------------------------------------------+----+-----------+-----------+----------+
| Effect of exchange rate fluctuations on | | 6 | (14) | (24) |
| cash held | | | | |
+--------------------------------------------+----+-----------+-----------+----------+
| | | | | |
+--------------------------------------------+----+-----------+-----------+----------+
| Cash and cash equivalents at end of period | | (648) | 267 | 701 |
+--------------------------------------------+----+-----------+-----------+----------+
| | | | | |
+--------------------------------------------+----+-----------+-----------+----------+
| Cash and cash equivalents comprise: | | | | |
+--------------------------------------------+----+-----------+-----------+----------+
| Cash and cash equivalents | | 21 | 267 | 701 |
+--------------------------------------------+----+-----------+-----------+----------+
| Bank overdraft | | (669) | - | - |
+--------------------------------------------+----+-----------+-----------+----------+
| | | | | |
+--------------------------------------------+----+-----------+-----------+----------+
| | | (648) | 267 | 701 |
+--------------------------------------------+----+-----------+-----------+----------+
| | | | | |
+--------------------------------------------+----+-----------+-----------+----------+
Notes
(forming part of the financial statements)
1 General
The interim financial information set out in this statement for the six months
ended 30 June 2010 and the comparative figures for the six months ended 30 June
2009 are unaudited. This financial information does not constitute statutory
accounts as defined in Section 435 of the Companies Act 2006.
The comparative figures for the financial year ended 31 December 2009 are not
the company's statutory financial statements for that financial year. Those
accounts have been reported on by the company's auditors and delivered to the
Registrar of Companies. The report of the auditors was (i) unqualified, (ii) did
not include a reference to any matters to which the auditors drew attention by
way of emphasis without qualifying their report, and (iii) did not contain a
statement under section 498(2) or (3) of the Companies Act 2006.
Copies of this interim statement will be sent to shareholders and will be
available on the Company's website (www.petards.com) and from the Company's
registered office at 390 Princesway, Team Valley, Gateshead, Tyne and Wear, NE11
0TU.
2 Basis of preparation
This interim statement, which is neither audited nor reviewed, has been prepared
in accordance with the measurement and recognition criteria of Adopted IFRSs.
They do not include all the information required for the full annual financial
statements, and should be read in conjunction with the financial statements of
the Group as at and for the year ended 31 December 2009. It does not comply with
IAS 34 'Interim Financial Reporting' as is permissible under the rules of the
AIM Market ("AIM").
The accounting policies applied in preparing these interim financial statements,
other than those noted below, are the same as those applied in the preparation
of the annual financial statements for the year ended 31 December 2009, as
described in those financial statements. The Board approved these interim
financial statements on 21 September 2010.
From 1 January 2010 the following standards, amendments and interpretations
endorsed by the EU became effective and were adopted by the Group:
· Revised IFRS 3 Business Combinations;
· Amendments to IAS 27 Consolidated and Separate Financial Statements
· Embedded Derivatives (Amendments to IFRIC 9 and IAS 39);
· Eligible Hedged Items (Amendments to IAS 39 Financial Instruments:
Recognition and Measurement).
The adoption of the above has not had a significant impact on the Group's
interim financial statements.
3 Taxation
No provision for taxation has been made in the profit and loss account for the
six months to 30 June 2010 based on the estimated tax provision required for the
year ending 31 December 2010. No provision was required in the six months to 30
June 2009. An adjustment in respect of prior years of GBP9,000 arose in the six
months to 30 June 2009 in respect of research and development tax credits.
4 Earnings per share
Basic earnings per share is calculated by dividing the profit for the period
attributable to the shareholders by the weighted average number of shares in
issue. The calculation of diluted earnings per share assumes conversion of all
potentially dilutive ordinary shares, all of which arise from share options.
The calculation of earnings per share is based on the profit for the period and
on the weighted average number of ordinary shares outstanding in the period.
+-----------------------------------------+-----------+-----------+----------+
| | Unaudited | Unaudited | Audited |
| | 6 months | 6 months | Year |
| | ended | ended | ended |
| | 30 June | 30 June | 31 |
| | 2010 | 2009 | December |
| | | | 2009 |
+-----------------------------------------+-----------+-----------+----------+
| Earnings | | | |
+-----------------------------------------+-----------+-----------+----------+
| Profit for the period (GBP000) | 115 | 251 | 1,108 |
+-----------------------------------------+-----------+-----------+----------+
| | | | |
+-----------------------------------------+-----------+-----------+----------+
| Number of shares | | | |
+-----------------------------------------+-----------+-----------+----------+
| Weighted average number of ordinary | 636,707 | 636,706 | 636,706 |
| shares ('000) | | | |
+-----------------------------------------+-----------+-----------+----------+
| | | | |
+-----------------------------------------+-----------+-----------+----------+
Diluted earnings per share is identical to the basic earnings per share. None
of the share options are dilutive as the exercise prices are higher than the
average market price of the shares.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR QFLFLBKFZBBB
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