Active Energy Regulatory News (AEG)

25 Sep 2006 14:30

For immediate release: 25 September 2006 BUCKLAND GROUP PLC ("Buckland" or the "Group") Interim Report for the Six Months Ended 30 June 2006 Chairman's StatementI present the interim results for Buckland for the six months ended 30 June2006. These show an operating profit before tax from continuing operations of ‚£36,302 on sales of ‚£ 1,576,338 ; after losses from the discontinued operationsof DK Gas Components Ltd, the consolidated pre-tax loss was ‚£ 148,397 comparedwith a loss of ‚£ 294,706 for the first half of 2005. The loss per share was0.02p (2005: 0.15p loss per share). No interim dividend is proposed.Review of OperationsDuring the first half of 2006 we successfully completed the transfer of DK Gas'remaining manufacturing operations from Redditch to Bangkok and on 12th July DKGas in the UK was closed. All the group's spark ignition generators andelectrodes are now produced in Thailand and sold internationally under theDerlite name. The logistics of this currently requires us to ship some productby air to Europe whilst we build up the inventories in transit by sea; thisairfreight requirement is expected to be eliminated by the end of this year.Demand for our range of products remained steady over the first half of 2006,at volumes similar to the second half of last year, with the majority of ouroutput continuing to be for the gas cooker markets in the UK and North America.In recent weeks we have taken on a number of major new customers in the UK gasboiler market and we therefore anticipate that, over the next six months, thegroup will be able to start generating some significant sales growth.Balance sheetThese interim results include the trading losses incurred by DK Gas untilclosure and the consolidated balance sheet at 30th June provides fully for theimpact of that closure. The group's short term liquidity was improved by theplacing of ‚£ 25,000 of new shares in July and by the issuance earlier thismonth of ‚£ 125,000 of unlisted convertible loan notes.OutlookThe military coup in Thailand last week has not caused any disruption to thegroup's operations in that country and we think it unlikely that it will in thefuture. The second half of this year will see the initial benefit of the muchreduced cost base following the transfer of all manufacturing to Bangkok, withthe full benefit coming through once we eliminate the need for airfreight.The Board is confident that, after some very difficult times, the Group canlook forward to an increasing level of profitability.Patrick RogersChairman29 September 2006Interim ReportConsolidated profit and loss account for the six month period ended 30 June2006 Unaudited Six Unaudited Six Twelve month month period month period period ended ended 30 June ended 30 June 31 December 2006 2005 2005 ‚£ ‚£ ‚£ Turnover Continuing 1,576,338 Operations Acquisitions - Discontinued - Operations 1,576,338 1,992,480 3,443,290 Cost of sales (1,209,819) (1,400,104) (2,954,418) Gross profit 366,519 592,376 488,872 Administrative (846,123) (861,477) (2,611,737)expenses Other operating 6,661 88,458 63,838income Operating profit/ (loss) Continuing 36,302 Operations Acquisitions - Discontinued (534,245) operations (497,942) (180,643) (2,059,027) Reorganisation - (90,000) costs Disposal of 370,106 - -subsidiary Operating (loss) (127,836) (270,643) (2,059,027) Profit on disposal - 100,660of fixed assets Interest 54 2 218receivable Interest payable (20,615) (24,065) (71,267)and similar charges (Loss) on ordinary (148,397) (294,706) (2,029,416)activities before taxation Tax on ordinary - - -activities Retained (loss) (148,397) (294,706) (2,029,416)transferred (from) reserves (Loss) per (0.02)p (0.15)p (0.15)pordinary share: Basic and Diluted Consolidated balance sheet at 30 June 2006 At 30 June 2006 At 31 December 2005 ‚£ ‚£ ‚£ ‚£ Fixed assets Intangible assets 225,513 243,387 Tangible assets 111,355 256,791 336,868 500,178 Current assets Stocks 214,093 425,052 Debtors 204,198 937,668 Cash at bank and in hand 12,476 29,717 430,767 1,392,437 Creditors: amounts falling (1,423,662) (2,324,585) due within one year Net current (liabilities)/ (992,895) (932,148)assets Total assets less current (656,027) (431,970)liabilities Creditors: amounts falling (33,121) (9,371)due after more than one year Provision for liabilities - (99,410)and charges (689,148) (540,751) Capital and reserves Called up share capital 3,526,492 3,526,492 Share premium account 1,041,532 1,041,532 Profit and loss account (5,257,172) (5,108,775) Equity shareholders' funds (689,148) (540,751) Consolidated cash flow statement for the six month period ended 30 June 2006 Unaudited Year ended Six month 31 December period 2005 ended 30 June 2006 ‚£ ‚£ Net cash (outflow)/inflow from operating (173,960) (657,039)activities (see below) Returns on investments and servicing of (20,561) (71,049)finance Taxation - - Acquisitions - (1,254,243) Capital expenditure 9,302 54,689 Cash outflow before management of liquid (185,219) (1,927,642)resources and financing Share issue - 1,414,497 Bank borrowings 64,707 483,942 Finance leases (4,923) (24,221) (Decrease) in cash (125,435) (53,424) Reconciliation of net cash flow to movement in net funds (Decrease) in cash in the period (125,435) (53,424) Cash inflow from increase in debt (59,784) (459,721) Non cash movements - (30,000) Change in net debt resulting from cash flows (185,219) (543,145) Exchange movement - 1,719 Movement in net debt in the period (185,219) (541,426) Opening net debt (830,527) (289,102) Closing net debt (1,015,746) (830,528) Reconciliation of operating (loss)/profit to net cash outflow from operating activities Operating (loss) (127,836) (2,059,027) Depreciation and impairment 75,023 176,532 Amortisation of goodwill 17,875 171,450 Impairment of goodwill - 1,004,465 Reorganisation costs - 99,410 Cessation of subsidiary (370,106) - (Profit) on sale of fixed assets 10,438 - (Increase)/Decrease in stocks 167,853 317,464 (Increase)/Decrease in debtors 12,252 (606,425) Increase in creditors 40,543 228,590 Other non cash operating adjustment (2) 10,502 Net cash (outflow) from operating activities (173,960) (657,039) Notes to the Interim Results:1The consolidated profit and loss account incorporates the unaudited results ofBuckland Group Plc and all its subsidiary undertakings up to 30 June 2006, andhas been prepared on a basis consistent with the accounting policies set out inthe audited financial statements for the year ended 31 December 2005. Earnings/(loss) per share for the six months to 30June 2006 have been calculated basedon the weighted average number of shares in issue for the period of792,178,629.2This Interim Report was approved by the board of directors on 25 September2006.This interim financial information does not comprise statutory accounts asdefined in Section 240 of the Companies Act 1985.The financial information for the period ended 31 December 2005 is an extractfrom the latest company accounts. Those accounts received an unqualifiedauditors report and have been filed with the Registrar of Companies.The financial information for the period ended 30 June 2006 has not beensubject to review by the auditors.For further information please contact,Patrick Rogers, ChairmanBuckland Group PlcTel. 07711 420 702Ben SimonsHansard GroupTel. 020 7245 1100ENDBUCKLAND GROUP PLC