PRELIMINARY UNAUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2012 Densitron Technologies plc ("Densitron" or the "Company" or the "Group"), the designer, developer and distributor of electronic displays is pleased to announce its preliminary unaudited results for the year ended 31 December 2012. · Orders booked increased by 9% to £23.1 million (2011: £21.2 million). · Profit from continuing operations of £0.6 million (2011: £1.1 million). · Dividends for the year totaling 0.3p per share (2011: 0.6p per share). · Earnings per share of 0.36p (2011: 1.18p). · Gross margin decreased from 29.6% to 28.6% reflecting the mix of sales made during the year. · New branch office in India has progressed well in the year. · Optical Bonding Facility in Taiwan has been set up. · A suite of software and smart TFT Solution (Ripdraw™) has been introduced.
objectives remain unchanged but due to the global recession it has been difficult to increase our market share. However, at the beginning of 2012 we opened an office in India and this has progressed satisfactorily with a strong pipeline of business opportunities being developed. It is a complex marketplace and one that we will look to develop further as we see revenues being generated over the next 12 months. At the end of 2012 we appointed a commissioned agent to exclusively represent the business in The Netherlands and we are already seeing new opportunities for business in that region. We have also continued to expand on our existing product offering including our new range of E-Paper technology that generated its first sales during the year. The final objective is an intention to differentiate the business from its competitors by offering either internally developed products or by providing additional services. During the year we have opened an Optical Bonding facility in Taiwan that will enable the business to offer a service to customers to improve the quality of the images displayed by their product. In addition we have developed a suite of software (Ripdraw™) and smart TFT line that will enable customers to develop their own design to display their information without the requirement for employing "expensive" software developers. We anticipate that both of these new developments will enable our business to not only develop new customers but also retain existing ones by ensuring the business is offering more to customers than its competitors.
Claim against the Company
I reported in my statement in the 2011 Annual Report that the Company had received a writ in respect of unpaid rents on a property occupied by a former Group Company. Having reviewed all of the documentation surrounding the lease, some of which dates back more than 10 years with our Lawyers, we believe that there is considerable uncertainty surrounding the lease. We believe that the most appropriate way forward is to achieve a negotiated settlement with the Landlord to bring this matter to a close in order to avoid further substantial costs accruing on both sides and to make it possible to let the property which currently stands empty. At this stage we are unable to say at what level that settlement would be achieved.
Outlook and strategy
The Board regularly reviews the medium and long term strategy for the business and believes the main driver of the business should remain organic growth. I have already written about the strategy in my review of the business above and consider that the results from this strategy have yet to be realised to their maximum potential. During the year, through internal development, we have added two potentially significant revenue streams with the Optical Bonding line and Ripdraw™ software and smart TFT line. We begin 2013 with little or no revenue from these two new products but consider that the demand for optical bonding in particular will grow rapidly during the year. However, we expect that Ripdraw™ will take longer to generate significant levels of business due to its complexity and consider that revenues will start to be made in the second half of the year and beyond. The addition of an office in India provides a great opportunity for the business but it is a difficult market so it is taking time to develop. At the beginning of 2013 we have a good pipeline of business opportunities and we expect to see those opportunities being turned into orders and revenues during the current year. Overall the first four months of 2013 have been mixed with parts of the Group exceeding expectations while other parts have found closing business to be particularly difficult. The pipeline of new business remains strong and we expect to see this being converted into new orders over the next few months. We have addressed certain operational issues which should mean that the business is more focussed and able to support its customers more effectively going forward.
13 May '13
...company buying from mms??... I would prefer company to be careful with my cash????
13 May '13
RE: 7.20p paid
Probably more options - divi is due sometime in the not too distant, so they have to buy more shares first, and price is irrelevant if the company is paying it.
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