CAP-XX Regulatory News (CPX)

18 Sep 2006 07:00

CAP-XX Limited18 September 2006 CAP-XX Limited PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2006 London, 18 September, 2006; CAP-XX Limited (AIM:CPX) announces its PreliminaryResults for the year ended 30 June 2006. •Revenue of AUD$2.6 million, up 16.2% over 2005 •Consolidated EBITDA loss of AUD$6.0 million, an improvement of AUD$1.0 million over 2005. •AUD$16.7 million of debt repaid following AIM listing. AUD$20.1 million net cash at 30th June, 2006. Chief Executive, Anthony Kongats, commented: "The solid financial position forthe Company is a good foundation for growth in the coming year. Since the IPO wehave refocused upon building sales and expanding production and Q4 sales haveexceeded the previous quarter by more than 40%. I am delighted with our salespipeline and, consequently, we look forward to the future with confidence". For further information contact: CAP-XXAnthony Kongats, Chief Executive +61 (0)2 9428 0139 Gavin Anderson & Company (Financial PR)Robert Speed / Deborah Walter / Keith Brookbank +44 (0)20 7554 1400 Collins Stewart Limited (Nominated Adviser and Broker)Stephen Keys /Ellen Francis/Tim Mickley +44 (0)20 7523 8350 More information is available at www.cap-xx.com Notes to editors: CAP-XX CAP-XX is a world leader in the design and manufacture of thin formsupercapacitors and energy management systems, predominantly for portableelectronic devices. The unique feature of CAP-XX's supercapacitors is their ability to store highvolumes of energy and output high power levels within a thin form design. Theseattributes will be critical for the next generation of high volume, power-hungryportable electronic devices, including mobile phones. Portable devices are one of the fastest growing segments of the electronicsmarket and provide the greatest opportunities for CAP-XX's products. CAP-XX'sproducts are already an established enabling technology for the currentgeneration of wireless devices, such as PDAs and PCMCIA cards. CHAIRMAN'S STATEMENT I am pleased to report, in the first set of full year results since its admission to trading on AIM on 20 April 2006, that the Company has performed ahead of the prior year and in line with our expectations. Revenue for the 12 months to 30 June 2006 increased 16.2% to AUD$2.6 million(2005: AUD$2.2 million), with sales growth for the quarter ended 30 June 2006ahead by more than 40% over the previous quarter. Our overall result for the twelve months to 30 June 2006 was a loss of AUD$10.3million (2005 loss of AUD$11.7 million). The operating loss from tradingoperations was AUD$9.7 million (2005 loss AUD$10.9 million) with negativeEBITDA of AUD$6.0 million (2005 negative AUD$7.0 million). CAP-XX has a strong balance sheet with AUD$20.1 million cash and no debt. InApril, 2006 the Company raised AUD$37.5 million (net of listing costs) throughthe successful floatation of the Company on the Alternate Investment Market("AIM"), a part of the London Stock Exchange. AUD$16.7 million of the floatproceeds was used to retire debt, resulting in AUD$20.1 million cash in bankand no other financial debt on the Balance Sheet at 30th June, 2006. Company executives have continued discussions aimed at securing business with a number of global original equipment manufacturers active in mobile phone and portable consumer electronics. Naturally, as the opportunities are considerably larger than the Company's previous experience the lead time from first discussions through to initial design wins can be many months but we are optimistic with the current outlook. We have met financial expectations whilst making significant investments in people, and addressing infrastructure and processes to ensure the creation of long term shareholder value. In particular, we have bolstered the Company's sales and marketing capability and enhanced the Company's research and product development function. As is usually the case with early stage companies, sales and marketing spend will remain high relative to revenues for this financial year as CAP-XX establishes its customer base. As CAP-XX is highly dependent on its unique intellectual property to establish itself in the market and generate high returns, the Company will be expending more on research and development to maintain and enhance its position. We have major programs in place with objectives that include improving the manufacturing process for higher volume manufacturing, the development of smaller devices and cost reduction. The Company advanced its contract manufacturing strategy with the objective of being in a position to meet planned manufacturing growth. Our existing contract manufacturer continues to ramp up their production volumes and expand overall capacity at their facility in Penang, Malaysia. We are very pleased with their commitment and co-operation. The IPO required a substantial restructuring of the Company to maximise futureshareholder value and was accomplished with enormous enthusiasm and energy bystaff. The financial team handled the corporate restructure and floatationexpeditiously against tight timelines and the sales, production, and developmentteams did an outstanding job of maintaining their operations as well as helpingthe financial team where required. We are all grateful for their commitment andgood humour under pressure. The Company has commenced the new financial year with a firm order book from existing customers and we continue to see a good flow of new prospects and opportunities across all our target markets covering wireless, consumer and commercial applications. Whilst this flow remains strong across North America and Asia, we are particularly excited about a number of new prospects and opportunities emerging from Europe. CAP-XX is well placed to benefit substantially from the increasing energymanagement demands of portable electronic devices and we look forward to a yearof good progress. Michael QuinnChairman CAP-XX LimitedIncome statementsFor the year ended 30 June 2006 Consolidated 2006 2005Currency: Australian Dollars Notes $ ' 000 $ ' 000 Revenue from sale of goods 1 2,581 2,222Cost of sale of goods 3 (6,751) (7,839) --------------------Gross margin (loss) on sale of goods (4,170) (5,617) Other revenue 1 764 479Other income 2 176 1,214 General and administrative expenses (2,415) (2,263)Selling and marketing expenses (1,217) (1,002)Research and development expenses (1,904) (2,023)Finance costs 3 (911) (333)Other expenses 3 (645) (2,138) --------------------(Loss) before income tax (10,322) (11,683) --------------------Income tax benefit - - --------------------Net (loss) (10,322) (11,683) ==================== CAP-XX LimitedBalance sheetsAs at 30 June 2006 Consolidated 2006 2005Currency: Australian Dollars $ ' 000 $ ' 000 ASSETSCurrent assetsCash and cash equivalents 20,107 1,191Receivables 850 4,722Inventories 351 361Other 126 80 --------------------Total current assets 21,434 6,354 -------------------- Non-current assetsProperty, plant and equipment 1,678 5,428Other 153 153 --------------------Total non-current assets 1,831 5,581 --------------------Total assets 23,265 11,935 -------------------- LIABILITIESCurrent liabilitiesPayables 1,070 1,681Borrowings - 12,669Provisions 449 482 --------------------Total current liabilities 1,519 14,832 -------------------- Non-current liabilitiesProvisions 113 23 --------------------Total non-current liabilities 113 23 -------------------- Total liabilities 1,632 14,855 --------------------Net assets 21,633 (2,920) ==================== EQUITYContributed equity 75,588 41,128Reserves 414 (1)Accumulated losses (54,369) (44,047) --------------------TOTAL EQUITY 21,633 (2,920) ==================== CAP-XX LimitedStatements of changes in equityFor the year ended 30 June 2006 Consolidated 2006 2005Currency: Australian Dollars $ ' 000 $ ' 000 Total equity at the beginning of the financial year (2,920) 8,763 -------------------- Exchange differences on translation of foreignoperations (1) - --------------------Net (loss) recognised directly in equity (1) -(Loss) for the year (10,322) (11,683) --------------------Total recognised income and expenses for the year (10,323) (11,683) -------------------- Transactions with equity holders in their capacity asequity holders:Employee share options 416 -Exercise of options 35 -Share buy-back (2,630) -Contributions of equity, net of issuance costs 37,055 - -------------------- 34,876 - --------------------Total equity at the end of the financial year 21,633 (2,920) ==================== CAP-XX LimitedCash flow statementsFor the year ended 30 June 2006 Consolidated 2006 2005Currency: Australian Dollars $ ' 000 $ ' 000 Cash flows from operating activitiesReceipts from customers (inclusive of goods and services tax) 1,996 2,175 Payments to suppliers and employees (inclusive of goodsand services tax) (8,814) (8,209) -------------------- (6,818) (6,034)Grants received 150 786Interest received 289 46 --------------------Net cash (outflow) inflow from operating activities (6,379) (5,202) ==================== Cash flows from investing activitiesPayments for property, plant and equipment (839) (1,199)Advanced proceeds from sale of plant and equipment - 723Proceeds from sale of property, plant and equipment 53 583 --------------------Net cash (outflow) inflow from investing activities (786) 107 ==================== Cash flows from financing activitiesProceeds from issue of shares 41,056 -Payments for issuance costs of shares (3,606) -Proceeds from issue of convertible notes 3,783 3,378Payments for issuance costs of convertible notes (21) (40)Repayment of convertible notes including capitalised interest (16,671) -Loans from related parties 1,540 2,736 --------------------Net cash inflow from financing activities 26,081 6,074 ==================== Net increase (decrease) in cash and cash equivalents 18,916 979Cash and cash equivalents at the beginning of thefinancial year 1,191 212 --------------------Cash and cash equivalents at the end of the financial year 20,107 1,191 ==================== NOTE TO THE FINANCIAL STATEMENTS Basis of Preparation The financial information included in this announcement does not constitute statutory accounts within the meaning of the Australian Corporations Act 2001. Whilst the financial information has been computed in accordance with Australian equivalents to International Financial Reporting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001, this announcement does not itself contain sufficient information to comply with those requirements. A copy of the Company's annual report incorporating compliant financialstatements for the year ended 30 June 2006 will be posted to shareholders inOctober 2006. Consolidated 2006 2005 $ ' 000 $ ' 000Note 1 Revenue Sales revenueSale of goods 2,581 2,222 ---------------------Other revenueManagement fee charges 339 379Interest 425 100 --------------------- 764 479 ---------------------Total revenue 3,345 2,701 --------------------- Consolidated 2006 2005 $ ' 000 $ ' 000Note 2 Other income Net gain on disposal of property, plant and equipment 26 237Foreign exchange gains (net) - 191Government grants 150 786 --------------------- 176 1,214 --------------------- Consolidated 2006 2005 $ ' 000 $ ' 000Note 3 Expenses Cost of sale of goodsDirect materials and labour 1,958 2,387Indirect manufacturing expenses 4,793 5,452 ---------------------Total cost of sale of goods 6,751 7,839 -------------------- DepreciationPlant and equipment 3,685 4,341Furniture and fittings 4 4Leasehold improvements 151 123 ---------------------Total depreciation 3,840 4,468 --------------------- Finance costs - netConvertible note issuance costs 21 40Amortisation of convertible note issuance costs 39 38Interest and finance charges payable 872 295 --------------------- 932 373Amount capitalised (21) (40) ---------------------Finance costs expensed 911 333 --------------------- Other expensesDemerger costs 602 -Foreign exchange gains and losses (refer Other Income for net gains) 58 -Provision for non recovery related parties loans / (write-back) (401) 401Impairment loss on plant and equipment - 1,737Impairment loss on goodwill 386 - --------------------- 645 2,138 --------------------- Consolidated 2006 2005 $ ' 000 $ ' 000Note 4 EBITDA adjusted for significant one-offs EBITDA (6,035) (7,020)Provision for non recovery related parties loans /write-back (401) 401Impairment loss on goodwill 386 -Net gain on disposal of plant and equipment (26) 237)Impairment loss on plant and equipment - 1,737Government research grant funding ceased during year (686)Demerger costs 602 - ---------------------Adjusted EBITDA (5,474) (5,805) --------------------- 2006 $ ' 000Note 5 Loss per share Operating Loss (10,322) Loss per share - undiluted $(0.311)Weighted Average Shares on Issue during year 33,204,782 This information is provided by RNS The company news service from the London Stock Exchange