APC Technology Regulatory News (APC)

25 May 2006 07:01

Advanced Power Components PLC25 May 2006 Advanced Power Components plc Interim results for the six months ended 28 February 2006. Chairman's Statement I have pleasure in presenting the interim report of Advanced Power Componentsplc for the half-year ended 28 February 2006. The revenue for the half-year of £2,606,000, with a pre-tax profit of £33,000,compares favourably with the same period last year, which reported a pre-taxloss of £251,000 on turnover of £2,105,000. Although modest, the long-awaited return to profitability has been achievedduring the first half through improved trading conditions, an increase in marketpenetration and by continued improvements in operating efficiencies. The Company's strategy of profitable expansion by acquisition, in addition toorganic growth, has taken a further positive step since the period end with theacquisition of Hero Electronics Limited on 9 May 2006. Hero has a complementary product range and a broad customer base that will beintegrated into the enlarged Group to increase our overall market opportunities. Generally trading conditions are expected to remain favourable for the secondhalf of our current financial year. The contributions from Hero, the continuingefforts to enhance efficiencies and further opportunities to increase marketpenetration, should all enable the Company to continue its improvement inprofitability for the remainder of the current financial year and beyond. Against this background, your Directors are currently undertaking a review ofthe Company's capital structure in order to enable resumption of payment ofdividends to shareholders as early as practical. R. F. Thorne, O.B.E.Chairman25 May 2006 CONSOLIDATED PROFIT AND LOSS ACCOUNT Half year to Half year to Year to 28 February 28 February 31 August 2005 2006 2005 (unaudited) (unaudited) (audited) Note £000 £000 £000 Turnover 2 2,606 2,105 4,445 -------- -------- ------- Operatingprofit/(loss) 21 (262) (508) Net interestreceivable 12 11 20 --------- --------- --------Profit/(loss) onordinary activitiesbefore taxation 33 (251) (488) Tax credit on losson ordinaryactivities - - 1 -------- --------- ---------Profit/(loss) forthe period 33 (251) (487) ======== ========= ========= 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 results and the figures as stated above. Earnings/(loss) pershare 0.1p (1.0p) (1.9p) Earnings 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 2006 and the number of shares in issue remained at 26,114,513. There were no dilutive share options in issue at the period-end. CONSOLIDATED BALANCE SHEET 28 February 28 February 31 August 2005 2006 2005 (unaudited) (unaudited) (audited) Note £000 £000 £000Fixed assetsIntangible assets 305 350 326Tangible assets 181 218 198 ------ ------- ------ 486 568 524 ------ ------- ------Current assetsStock 533 518 448Debtors 1,026 877 922Cash at bank and in hand 3 829 1,063 877 ------- ------- ------ 2,388 2,458 2,247Creditors : Amounts falling due withinone year (949) (898) (879) ------- ------- ------Net current assets 1,439 1,560 1,368 ------- ------- ------ Total assets less current liabilities 1,925 2,128 1,892 Creditors : Amounts falling due in more than one year - - - ------- ------- -------Net assets 1,925 2,128 1,892 ======= ======= =======Capital and reservesCalled up share capital 522 522 522Share premium account 2,370 2,370 2,370Profit and loss account (967) (764) (1,000) ------- ------- ------Total equity shareholders' funds 1,925 2,128 1,892 ======= ======= ====== CONSOLIDATED CASH FLOW STATEMENT Half year to Half year to Year to 28 February 28 February 31 August 2005 2006 2005 (unaudited) (unaudited) (audited) £000 £000 £000 Net cash (outflow)/inflowfrom operating activities (53) 339 151 Returns on investments and servicing of finance :Interest received 12 11 20 Taxation refunds - 40 40 Capital expenditure and financial investment :Payments to acquiretangible fixed assets (7) (35) (42) ------ ------- -------(Decrease)/increase in net cash (48) 355 169 ====== ======= ======= Reconciliation of operating profit/(loss) to net cash (outflow)/inflow from operating activities Operating profit/(loss) 21 (262) (508)Depreciation 24 28 55Amortisation of goodwill 21 17 41(Increase)/decrease in stocks (85) 34 104(Increase)/decrease in debtors (104) 518 474Increase/(decrease) in creditors 70 4 (15) ------ ------ -------Net cash (outflow)/inflow from operatingactivities (53) 339 151 ====== ====== ======== NOTES TO THE INTERIM REPORT 1. Accounting policies The profit and loss account, balance sheet and cash flow statement have been prepared on a basis consistent with the statutory accounts for the year ended 31 August 2005. 2. Analysis of turnover by geographical destination Half year to Half year to Year to 28 February 28 February 31 August 2005 2006 2005 (unaudited) (unaudited) (audited) £000 £000 £000 UK 2,147 1,731 3,712Europe and other 383 309 622North America 76 65 111 -------- -------- -------- 2,606 2,105 4,445 ======== ======== ======== 3. Analysis of net funds At Cash At 28 February flow 31 August 2005 2006 (unaudited) (audited) £000 £000 £000Cash, comprising current accountsand overnight deposits 829 (48) 877 ===== ====== ====== 4. Post balance sheet event On 9 May 2006, the Group acquired the entire issued share capital of Hero Electronics Limited for a total consideration of approximately £2,000,000 in cash. The consideration comprises £440,000 for goodwill and approximately £1,560,000 for the net assets, subject to adjustment for the actual value of the net assets on completion. Of this total consideration, £500,000 will be deferred and paid in six quarterly instalments over the next 18 months. In addition, an amount equal to 37.5 per cent of the agreed inventory value included in the net assets on completion will be held on retention and paid over a period of 24 months to the extent that the relevant stock is sold during that period. In the audited accounts for the twelve months ended 31 October 2005, Hero reported revenues of £2,372,000 and a profit before tax of £33,000. As at 31 October 2005, Hero's net assets were £1,556,000, including cash balances of £889,000 and inventory of £356,000. 5. Basis of preparation of interim report This interim report for the six months ended 28 February 2006 was approved by the directors on 25 May 2006. This interim report is neither audited nor reviewed and does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The 2005 full year figures are extracted from statutory accounts for the year ended 31 August 2005, which include anunqualified audit report and have been filed with the Registrar of Companies. The comparative figures for the first six months of 2005 are taken from the interim 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 registered office : Advanced Power Components plc, 47 Riverside, Medway City Estate, Rochester, Kent, ME2 4DP. Enquiries: Mark Robinson, Chief Executive 01634 290588Advanced Power Components plc 25 May 2006 This information is provided by RNS The company news service from the London Stock Exchange