APC Technology Regulatory News (APC)

24 May 2005 07:00

Advanced Power Components PLC24 May 2005 ADVANCED POWER COMPONENTS PLC Interim Results for the 6 months ended 28th February 2005 CHAIRMAN'S STATEMENT I have pleasure in presenting the interim report of Advanced Power Componentsplc for the half year ended 28 February 2005. The period started very well in each of our areas of activity and we met ourinternal expectations for the first three months of the period under review.However, trading conditions in all of our markets, as in the UK electronicsdistribution market in general, deteriorated in the following three months.Whilst this had a negative impact on our overall results for the half year,which show a loss before taxation of £251,000, the result still comparesfavourably with the pre-tax loss of £468,000 reported for the correspondingperiod last year and with the pre-tax loss of £258,000 reported for the secondhalf of 2004. As can be deduced from these comparisons, our positive progresstoward profitability is continuing, but in the period under review this progresswas slower than we anticipated. The European Union Directive on the Restriction of use of certain HazardousSubstances (RoHS) comes into force on 1 July 2006. As our customers switch overto RoHS compliant product, it is likely that some non-compliant components willremain in our inventory after that date. In common with many other companies inthe electronics and electrical sector, we shall be reviewing the position overthe coming months. At this stage we consider that it may be prudent to include aprovision in the year-end financial statements in respect of such components. Current trading conditions remain difficult and are affected by a lack ofvisibility in our markets. As a result of these factors, together with the needfor the inventory provision described above, we believe that the result for thefull year will be below market expectations. Looking ahead, we can report that we continue to take positive steps to bothimprove efficiencies and increase revenues. We continue to develop relationshipswith our new suppliers and we are encouraged by the interest from potentialcustomers in our wider product portfolio. Our goal is to return the Company toprofitability as quickly as market conditions will permit and we remainconfident that our ongoing progress will continue to have a positive impact onfuture results. R. F. Thorne, O.B.E. Chairman 24 May 2005 CONSOLIDATED PROFIT AND LOSS ACCOUNT Half year to Half year to Year to 28 February 2005 29 February 2004 31 August 2004 (unaudited) (unaudited) (audited) Note £000 £000 £000 Turnover 2 2,105 2,503 5,079Operating loss (262) (493) (766)Net interest receivable 11 25 40Loss on ordinary activities before taxation (251) (468) (726)Tax credit on loss on ordinary activities - - 5Loss for the period (251) (468) (721) All of the above results derive from the continuing operations of the Group. The Group has no recognised gains or losses other than those included in the profit and loss account. There is no difference between the historical cost loss and the figures as stated above. Loss per share (1.0p) (1.8p) (2.8p) Loss per share is based on the weighted averagenumber of shares in issue in the respective periods,as follows : 26,114,513 26,114,513 26,114,513 No additional shares were issued during the six months to 28 February 2005 andthe number of shares in issue remained at 26,114,513. There are currently nodilutive share options in issue. CONSOLIDATED BALANCE SHEET 28 February 2005 29 February 2004 31 August 2004 (unaudited) (unaudited) (audited) Note £000 £000 £000 Fixed assets Intangible assets 350 433 367Tangible assets 218 149 211 568 582 578 Current assets Stock 518 397 552Debtors 877 1,088 1,435Cash at bank and in hand 3 1,063 1,431 708 2,458 2,916 2,695 Creditors : amounts falling due within one year (898) (785) (894) Net current assets 1,560 2,131 1,801 Total assets less current liabilities 2,128 2,713 2,379 Creditors : amounts falling due in more than one - (48) -year Net assets 2,128 2,665 2,379 Capital and reserves Called up share capital 522 522 522Share premium account 2,370 2,370 2,370Special reserve 4 - 900 -Other reserve - 33 -Profit and loss account (764) (1,160) (513) Total equity shareholders' funds 2,128 2,665 2,379 CONSOLIDATED CASH FLOW STATEMENT Half year to Half year to Year to 28 February 2005 29 February 2004 31 August 2004 (unaudited) (unaudited) (audited) £000 £000 £000 Net cash inflow/(outflow) from operating 339 (836) (1,398)activities Returns on investments and servicing of finance :Interest received 11 25 40 Taxation refunds 40 154 144 Capital expenditure and financial investment :Payments to acquire tangible fixed assets (35) (49) (146)Sale of tangible fixed assets - 7 6 (35) (42) (140) AcquisitionsPurchase of subsidiary undertakings - - (19) Increase/(decrease) in net cash 355 (699) (1,373) Reconciliation of operating lossto net cash inflow/(outflow) fromoperating activities Operating loss (262) (493) (766)Adjustment for exchange loss - - 49Depreciation 28 61 93Loss on disposal of fixed assets - 2 6Amortisation of goodwill 17 23 60Increase in other reserves - 33 -Decrease/(increase) in stocks 34 105 (50)Decrease/(increase) in debtors 518 (72) (381)Increase/(decrease) in creditors 4 (495) (409)Net cash inflow/(outflow) from operating activities 339 (836) (1,398) NOTES TO THE INTERIM REPORT 1. Accounting policies The profit and loss account, balance sheet and cash flow statement have been prepared on a basisconsistent with the statutory accounts for the year ended 31 August 2004. 2. Analysis of turnover by geographical Half year to Half year to Year todestination 28 February 2005 29 February 2004 31 August 2004 (unaudited) (unaudited) (audited) £000 £000 £000 UK 1,731 2,417 4,812Europe and other 309 86 210North America 65 - 57 2,105 2,503 5,079 3. Analysis of net funds At Cash At 28 February 2005 flow 31 August 2004 £000 £000 £000Cash, comprising current accountsand overnight deposits 1,063 355 708 4. Special reserve At its Annual General Meeting on 16 January 2004 the Company obtained authorityfrom its shareholders to reduce the amount standing to the credit of theCompany's share premium account by £900,000, subject to confirmation of the HighCourt. The petition to reduce the share premium account was approved by the HighCourt on 18 February 2004 and registered by the Registrar of Companies on 19February 2004. The amount of the reduction was credited to a special reserve in the Company.The sum of £690,000 of that special reserve was then applied in eliminating thedeficit on the profit and loss account of the Company as at 31 August 2003. Theamount by which the special reserve exceeded the deficit on the profit and lossaccount at that date, being £210,000, was available to be set against lossesincurred since that date and recorded in the audited accounts of the Company. Itwas therefore applied in reducing the deficit on the profit and loss accountarising in the financial year ended 31 August 2004. 5. Basis of preparation of interim report This interim report for the six months ended 28 February 2005 was approved bythe directors on 24 May 2005. This interim report is neither audited norreviewed and does not constitute statutory accounts within the meaning ofSection 240 of the Companies Act 1985. The 2004 full year figures are extractedfrom statutory accounts for the year ended 31 August 2004, which include anunqualified audit report and have been filed with the Registrar of Companies.The comparative figures for the first six months of 2004 are taken from theinterim report for that period. 6. Distribution of interim report A copy of this interim report will be distributed to all shareholders.Additional copies are available on application to the Company's registeredoffice: Advanced Power Components plc, 47 Riverside, Medway City Estate, Rochester,Kent, ME2 4DP. Enquiries : Mark Robinson - Chief Executive Officer. Tel: 01634-290588 This information is provided by RNS The company news service from the London Stock Exchange