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Ultima Networks PLC(“the Group) –Statements of Interim Results
Chairman’s Statement
The Group made an operating profit of £94,000 compared with an operating loss last year of £8,000. The gross margin for the current half-year increased from 68% (H1 2002) to 74%. Net operating expenses reduced by 36% to £531,000 (H1 2002: £828,000) whilst R&D expenditure increased to £136,000 (H1 2002: £80,000). The Group will continue to invest into its product and services for the future.
The Group continued to focus on areas of the business where profitable growth can be achieved. Our software division continued to make progress, where operating profit has increased by more than 17% to £74,000 (H1 2002: £61,000). Cognito Software, our legal accounting and workflow management software company, performed well with an increase of 5% in recurring revenues compared to 30th June 2002.
In contrast, the networking division’s results continued to be disappointing and steps are continuing to be taken to reduce costs and eliminate non-profitable elements of this business.
The Group has been exploring business opportunities in renewable energy through a division set up for this purpose. The company received its first significant contract from Hertfordshire County Council worth over £450,000 for the installation of solar panels at 15 schools in its district. £112,000 was invoiced in this period. As this is the first major installation it will only produce a modest contribution to profits. The company is continuing to promote solar energy and develop other opportunities in renewable energy applications.
The Cognito Software operations relocated to new premises during the period. New premises were purchased on 2nd May for £120,000 and the sale of the previous building, Flair House, completed on 11 August 2003. The sale of Flair House generated net proceeds of £251,000.
§ Operating profit of £94,000 achieved versus a loss of £8,000 (H1 2002).
§ Group Turnover down 28% to £810,000 (H1 2002: £1,119,000)
§ Group gross profit margin increased from 68% to 74% (H1 2002).
§ Group net operating expenses reduced by 36% from £828,000 to £531,000 (H1 2002).
§ Loss before tax reduced by 87% to £15,000 (H1 2002: £112,000)
§ Loss per share 0.01p (H1 2002: 0.06p)
§ Cash inflow from operating activities is £295,000 compared with a cash outflow from operating activities of £814,000 (H1 2002)
§ The Net Debt reduced from £3,567,000 at 1st January 2003 to £3,410,000 at 30th June 2003
Humayun A Mughal, Chairman 19th September 2003
Consolidated profit and loss account
for the six months ended 30 June 2003 |
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
|
|
First half 2003 |
First half 2002 |
Full year 2002 |
|
|
Note |
|
£000 |
£000 |
£000 |
Turnover – continuing operations |
1 |
|
810 |
1,119 |
2,026 |
Cost of sales |
|
|
(212) |
(362) |
(672) |
|
|
|
|
|
|
|
Gross profit |
|
|
598 |
757 |
1,354 |
Net operating expenses |
|
|
(531) |
(828) |
(1,381) |
Exceptional credit on approval of voluntary arrangement |
|
|
27 |
139 |
158 |
Exceptional operating (costs)/profit |
|
|
- |
(76) |
- |
|
|
|
|
|
|
|
Operating (loss)/profit – continuing operations |
|
|
94 |
(8) |
131 |
Exceptional non-operating item – loss on closure of business |
|
|
- |
- |
253 |
|
|
|
|
|
|
|
(Loss)/profit on ordinary activities before taxation and interest |
|
|
|
|
|
Net interest payable |
|
|
(109) |
(104) |
(219) |
|
|
|
|
|
|
|
(Loss)/profit on ordinary activities before taxation |
|
|
(15) |
(112) |
165 |
Tax on (loss)/profit on ordinary activities |
|
|
- |
- |
36 |
|
|
|
|
|
|
|
Unrecovered (loss)/profit for the financial period |
|
|
(15) |
(112) |
201 |
|
|
|
|
|
|
|
(Loss)/profit per share and diluted (loss)/profit per share |
|
|
(0.01)p |
(0.06)p |
0.10p |
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
|
|
|
30 June 2003 |
30 June 2002 |
31 Dec 2002 |
|
|
|
|
£000 |
£000 |
£000 |
Fixed assets |
|
|
|
|
|
Tangible fixed assets |
|
|
3,233 |
3,173 |
3,148 |
Current assets |
|
|
|
|
|
Stock |
|
|
301 |
233 |
156 |
Debtors |
|
|
490 |
691 |
514 |
Cash at bank and in hand |
|
|
49 |
67 |
99 |
|
|
|
|
|
|
|
|
|
|
|
840 |
991 |
769 |
Creditors - amounts due within one year |
|
|
(1,612) |
(1,927) |
(1,402) |
|
|
|
|
|
|
|
Net current liabilities |
|
|
(772) |
(936) |
(633) |
|
|
|
|
|
|
|
Total assets less current liabilities |
|
|
2,461 |
2,237 |
2,515 |
|
|
|
|
|
|
|
Creditors - amounts due after one year |
|
|
(3,351) |
(3,553) |
(3,450) |
|
|
|
|
|
|
|
Net liabilities |
|
|
(890) |
(1,316) |
(935) |
|
|
|
|
|
|
|
Capital and reserves |
|
|
|
|
|
Called up equity share capital |
|
|
7,434 |
7,434 |
7,434 |
Share premium account |
|
|
5,520 |
5,520 |
5,520 |
Revaluation reserve |
|
|
1,102 |
1,124 |
1,102 |
Acquisition reserve |
|
|
1,334 |
1,334 |
1,334 |
Profit and loss account |
|
2 |
(16,280) |
(16,728) |
(16,325) |
|
|
|
|
|
|
|
Deficit on shareholders’ funds – equity |
|
|
(890) |
(1,316) |
(935) |
|
|
|
|
|
|
|
Consolidated cash flow statement
|
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
|
|
|
First half 2003 |
First half 2002 |
Full year 2002 |
|
|
|
|
£000 |
£000 |