Last checked at 15 Sep 2010 07:00
Wednesday 15 September 2010
21st Century Technology plc
("21st Century", "the Company" or "the Group")
Interim Results for the six months ended 30 June 2010
Continuing the Momentum of Profitability and International Expansion
21st Century, a leading supplier of public transport CCTV and other monitoring systems, including their award winning EcoManager, today announces its unaudited interim figures for the six months to 30 June 2010.
Highlights
·; Profit after tax up 48% to £301,000 (2009: £204,000)
·; Group revenue from continuing operations increased by 6% to £5.6m (2009: £5.3m)
·; EcoManager sales of £2.9m (2009: £2.4m) in the first six months
·; First EcoManager sales in mainland Europe of £0.5m
·; First CCTV sales to First Group UK Bus of £0.5m
·; Earnings per share 0.37p (2009: 0.30p)
·; Net cash of £0.2m (2009: net debt of £0.8m)
Commenting on the results, Jan Holmstrom, Chairman of 21st Century, said:
"We have delivered a strong performance in the period with continued growth in EcoManager sales and we have also won new customers in our CCTV business. We are now well positioned to drive profitability and continue to expand our operations internationally."
A copy of this interim results announcement is available on the Company's website: www.21stplc.com
For Further Information:
| 21st Century Technology plc | Wilson Jennings | 020 8710 4016 |
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| Finance Director |
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| Hogarth Ltd | Barnaby Fry | 020 7357 9477 |
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| Vicky Watkins |
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| Daniel Stewart & Co plc | Paul Shackleton | 020 7776 6550 |
| (Nomad and Broker) | Emma Earl |
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Notes to editors:
21st Century Technology plc (AIM: C21), a leading supplier of public transport CCTV and other monitoring systems, was admitted to trading on AIM, a market operated by the London Stock Exchange, in 2005.
21st Century is the preferred supplier of on-board CCTV systems for Arriva UK Bus and the Go-Ahead Group and an approved supplier to First Group UK Bus.
In July 2008, 21st Century launched its fuel saving and safety enhancing product for bus operators called EcoManager. Accounting for a significant proportion of sales, EcoManager received the 2009 Alexander Dennis Award for Innovation for reducing fuel consumption and emissions and a 2010 driver safety award sponsored by Brake for reducing accidents. For further information go to www.getecomanager.com.
21st Century Technology plc
Chairman's statement
Results overview
I am pleased to present my first report as Chairman of 21st Century Technology plc.
The financial information contained within this interim report is based upon the Group's unaudited results for the six months to 30 June 2010.
Profit after tax for the 6 months ended 30 June 2010 at £0.3m was up 48% on the same period last year (2009: £0.2m).
Following the disposal of the last remaining legacy distribution business at the end of last year and the cessation of our loss making Vehicle Installation Services for insurance customers at the beginning of this year, the principal activities of the Company are now focused on the supply of monitoring systems to the public transport market. These embrace the supply and installation of fixed (on premises) and mobile (on vehicle) CCTV, EcoManager driver monitoring and our passenger counting system, "PAS" (Passenger Analysis System).
Despite the recessionary headwind in the first half of this year, sales are up by 6% on the same period last year. This growth in sales has come from the success of EcoManager which contributed £2.9m to total sales in the first six months - an increase of 20% compared to last year I am also delighted to report that this included £0.5m in respect of our first sales of EcoManager to mainland Europe and total sales included £0.5m of mobile CCTV sales to a new customer, First Group UK Bus.
Cash flow
The final installment of the bank term loan was repaid in February 2010 and the Group maintained a positive cash position of £0.2m at 30 June 2010 (30 June 2009: the Group had net debt of £0.8m including deferred consideration payable). Net cash has reduced since the start of the year when it stood at £0.5m as a number of our larger customers stretched their payments to us in the first half of this year. More recently our cash collections have improved and, while we anticipate that we may need further working capital investment in the second half of the year to support further expansion in mainland Europe, we are aiming to maintain a positive cash position at the year end.
Dividends
The Board is considering the payment of a dividend at some point in the future when the Company has sufficient distributable reserves and cash and the Board considers that the distribution is in the best interests of shareholders.
Current trading and outlook
The period under review saw profit ahead of management expectations and an expansion of our customer base.
The business is delivering strong margins and gaining market share which make us well placed to benefit as the markets recover.
Jan G Holmstrom
Chairman
Consolidated statement of comprehensive income
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| Unaudited six months ended 30 June 2010
£'000 | Unaudited six months ended 30 June 2009
£'000 | Year ended 31 December 2009
£'000 |
| Continuing operations |
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| Revenue (note 3) | 5,632 | 5,333 | 10,470 |
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| Cost of sales | (2,255) | (2,134) | (4,143) |
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| Gross profit | 3,377 | 3,199 | 6,327 |
| Other operating income | 40 | 37 | 93 |
| Administrative expenses | (2,927) | (2,862) | (5,675) |
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| Operating profit | 490 | 374 | 745 |
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Finance costs | (5) | (34) | (54) |
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| Profit before taxation | 485 | 340 | 691 |
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| Taxation | (140) | (80) | (192) |
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| Profit for the period from continuing operations | 345 | 260 | 499 |
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| Discontinued operations |
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| Loss for the period from discontinued operations | (44) | (56) | (481) |
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| Profit and total comprehensive income for the period |
301 |
204 |
18 |
| Attributable to: |
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| Equity holders of the parent | 301 | 204 | 18 |
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| Earnings per share |
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| From continuing operations |
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| Basic and diluted | 0.37p | 0.30p | 0.56p |
| From discontinued operations |
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| Basic and diluted | (0.04)p | (0.06)p | (0.54)p |
| From continuing and discontinued operations |
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| Basic and diluted | 0.33p | 0.24p | 0.02p |
| Number of shares | 92,229,000 | 86,173,000 | 89,226,000 |
Consolidated statement of changes in equity shareholders' funds
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| Share capital | Share premium | Special and other reserve | Retained earnings | Total equity shareholders' funds |
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| £'000 | £'000 | £'000 | £'000 | £'000 |
| Balance at 1 January 2009 |
8,169 |
3,387 |
1,249 |
(3,778) |
9,027 |
| Total comprehensive Income for the period |
- |
- |
- |
204 |
204 |
| Share based payments | - | - | - | 10 | 10 |
| Issue of equity share capital |
1,054 |
- |
- |
- |
1,054 |
| Purchase of non-controlling interest |
- |
- |
- |
(2,083) |
(2,083) |
| Balance at 30 June 2009 |
9,223 |
3,387 |
1,249 |
(5,647) |
8,212 |
| Balance at 1 January 2009 |
8,169 |
3,387 |
1,249 |
(3,778) |
9,027 |
| Total comprehensive Income for the period |
- |
- |
- |
18 |
18 |
| Share based payments | - | - | - | 19 | 19 |
| Issue of equity share capital |
1,054 |
- |
- |
- |
1,054 |
| Purchase of non-controlling interest |
- |
- |
- |
(2,083) |
(2,083) |
| Balance at 31 December 2009 |
9,223 |
3,387 |
1,249 |
(5,824) |
8,035 |
| Total comprehensive Income for the period |
- |
- |
- |
301 |
301 |
| Balance at 30 June 2010 |
9,223 |
3,387 |
1,249 |
(5,523) |
8,336 |
Consolidated statement of financial position
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| Unaudited 30 June 2010 | Unaudited 30 June 2009 | 31 December 2009
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| £'000 | £'000 | £'000 |
| Non-current assets Goodwill |
4,318 |
4,850 |
4,318 |
| Other intangible assets | 225 | 352 | 247 |
| Property, plant and equipment | 2,777 | 2,900 | 2,820 |
| Deferred tax asset | 190 | 212 | 200 |
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| 7,510 | 8,314 | 7,585 |
| Current assets Inventories |
1,297 |
2,153 |
1,658 |
| Trade and other receivables | 2,663 | 2,009 | 1,874 |
| Cash and cash equivalents | 605 | 1,929 | 773 |
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| 4,565 | 6,091 | 4,305 |
| Total assets | 12,075 | 14,405 | 11,890 |
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| Liabilities Current liabilities |
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| Trade and other payables | (2,471) | (3,209) | (2,785) |
| Tax liabilities | (212) | (80) | (180) |
| Bank overdrafts and loans | (450) | (2,243) | (251) |
| Provisions | (72) | (72) | (72) |
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| (3,205) | (5,604) | (3,288) |
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| Net current assets | 1,360 | 487 | 1,017 |
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Non-current liabilities |
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| Provisions | (172) | (227) | (205) |
| Deferred tax liabilities | (362) | (362) | (362) |
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| (534) | (589) | (567) |
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Total liabilities |
(3,739) |
(6,193) |
(3,855) |
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Net assets |
8,336 |
8,212 |
8,035 |
| Shareholders' equity Share capital |
9,223 |
9,223 |
9,223 |
| Share premium account | 3,387 | 3,387 | 3,387 |
| Special and other reserve | 1,249 | 1,249 | 1,249 |
| Retained earnings | (5,523) | (5,647) | (5,824) |
| Total equity shareholders' funds |
8,336 |
8,212 |
8035 |
Consolidated statement of cash flows
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| Unaudited six months ended 30 June 2010 | Unaudited six months ended 30 June 2009 | Year ended 31 December 2009
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| £'000 | £'000 | £'000 |
| Net cash (used in)/generated from operating activities (note 4) |
(311) |
423 |
1,535 |
| Investing activities |
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| Purchase of final tranche in 21st Century CPS Ltd |
- |
(554) |
- |
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Disposal of discontinued operations* |
100 |
90 |
425 |
| Purchases of property, plant and equipment |
(24) |
(66) |
(81) |
| Purchases of intangible fixed assets | (132) | (116) | (212) |
| Purchase of shares in subsidiary | - | - | (1,054) |
| Net cash used in investing activities |
(56) |
(646) |
(922) |
| Financing activities |
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| Repayment of borrowings | (250) | - | (250) |
| Increase/(decrease) in bank overdrafts |
449 |
273 |
(1,469) |
| Dividend paid to non controlling interest |
- |
(293) |
(293) |
| Net cash generated by/(used in) financing activities |
199 |
(20) |
(2,012) |
| Net decrease in cash and cash equivalents |
(168) |
(243) |
(1,399) |
| Cash and cash equivalents at beginning of period |
773 |
2,172
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2,172
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| Cash and cash equivalents at end of period |
605 |
1,929 |
773 |
* The amount received in 2010 was deferred consideration in respect of the disposal made in 2009 Notes
1. Basis of preparation and approval of interim statement
The interim financial statement for the six months to 30 June 2010 has been prepared using accounting policies consistent with International Financial Reporting Standards (IFRSs) as adopted by the European Union and specifically in accordance with IAS 34 'Interim Financial Reporting'. It does not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements for the year ended 31 December 2009.
The financial information has been prepared on the basis of IFRSs that the directors expect to be applicable as at 31 December 2010.
The accounting policies adopted in the preparation of the interim financial statements are consistent with those set out in the Group's Annual Report and Financial Statements 2009, which were prepared in accordance with IFRSs.
These interim financial results do not comprise statutory accounts within the meaning of section 435 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2009 were approved by the Board on 23 March 2010 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498(2) or section 498(3) of the Companies Act 2006.
The interim financial statement is unaudited and was approved by the Board of Directors on 14 September 2010.
2. International Financial Reporting Standards
The Group follows the Standards and Interpretations issued by the International Accounting Standards Board ("IASB") and the International Financial Reporting Interpretations Committee of the IASB and endorsed by the European Union that are relevant to its operations.
At the date of authorisation of these interim financial statements, the Group is aware of the following International Financial Reporting Standards ("IFRSs") which were in issue but have not been applied in these financial statements as they are not mandatorily effective:
- Amendments to IFRS 2 - Group cash-settled share-based payment transactions (effective 1st January 2010)
- IFRS 9 - Financial Instruments (effective 1st January 2013 - not yet endorsed by EU)
The Directors do not anticipate that the adoption of the above would have a material impact on the Group's future financial statements.
3. Segmental reporting
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Continuing operations by business sector with revenue reflecting sales to external customers | Public Transport Monitoring Systems |
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| £'000 |
| Unaudited six months ended 30 June 2010 |
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| Revenue | 5,632 |
| Operating profit | 490 |
| Unaudited six months ended 30 June 2009 |
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| Revenue | 5,333 |
| Operating profit | 374 |
| Year ended 31 December 2009 |
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| Revenue | 10,470 |
| Operating profit | 745 |
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Discontinued operations by business sector with revenue reflecting sales to external customers | Vehicle Installation Services | Distribution | Total |
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| £'000 | £'000 | £'000 |
| Unaudited six months ended 30 June 2010 |
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| Revenue | 66 | - | 66 |
| Operating loss | (44) | - | (44) |
| Unaudited six months ended 30 June 2009 |
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| Revenue | 836 | 848 | 1,684 |
| Operating loss | (2) | (43) | (45) |
| Year ended 31 December 2009 |
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| Revenue | 1,393 | 1,504 | 2,897 |
| Operating loss | (298) | (170) | (468) |
4. Cash generated from operations
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| Unaudited six months ended 30 June 2010 | Unaudited six months ended 30 June 2009 | Year ended 31 December 2009 |
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| £'000 | £'000 | £'000 |
| Profit for the period | 301 | 204 | 18 |
| Finance costs | 5 | 45 | 54 |
| Income tax expense | 140 | 80 | 192 |
| Gain on disposal of discontinued operations | - | - | (393) |
| Goodwill written off on disposal of discontinued operations | - | - | 532 |
| Depreciation/amortisation | 220 | 241 | 512 |
| Share based payments | - | 10 | 19 |
| Decrease in provisions | (33) | (48) | (70) |
| (Increase)/decrease in working capital balances | (816) | (64) | 731 |
| Cash (used in)/generated from operations | (183) | 468 | 1,595 |
| Income taxes paid | (98) | - | - |
| Interest paid | (30) | (45) | (60) |
| Net cash (used in)/generated from operating activities | (311) | 423 | 1,535 |
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