MED.L Regulatory News (MED)

6 Sep 2006 07:03

MicroEmissive Displays Group PLC06 September 2006 MicroEmissive Displays Group plc ("MED" or the "Company") Unaudited results for the six months to 30 June 2006 MicroEmissive Displays plc (MED or "the Company"), a designer and manufacturerof low power microdisplays using light emitting polymers for portable consumerelectronics products, announces its unaudited interim results for the periodended 30 June 2006. Highlights: •Continued operational progress achieved •Appointment of Graeme Walker as Finance Director in April •Significant anticipated market opportunity for eyescreenTM as both an enabling and replacement technology •Considerable progress achieved with customers - first letter of intent received for product from the new volume tool set •Paul Van Eynde appointed to the board as Sales and Marketing Director in July to maximise the potential market opportunities •Clear strategy in place to achieve volume manufacturing in 2007 •New volume tool set to be located in Dresden, Germany •Conditional placing to raise approximately £5.0m (net of expenses) announced today Commenting on the results Christopher Smith, Chairman of MED said: "We aredelighted with the progress the Company has made operationally, with itspotential customers and in the progress towards the fulfillment of its volumemanufacturing strategy. This has culminated in today's placing announcement. Iam encouraged by these developments, which we believe could generate, in time,significant value for shareholders." For further information, please contact: MicroEmissive Displays 0131 650 7764Bill Miller, Chief ExecutiveGraeme Walker, Finance Director Tavistock Communications 020 7920 3150Christian Taylor-WilkinsonMatt Ridsdale Chairman's Statement I am delighted to report the Company's unaudited interim results for the periodended 30 June 2006 and at the same time announce a conditional placing to raiseapproximately £5.0 million (net of expenses). The placing is conditional, interalia, on the approval of shareholders at an EGM to be held on 2 October 2006.Further details of the placing are outlined in a separate announcement to beissued this morning. The Board believes that the proceeds of the placing will help secure theCompany's volume manufacturing strategy and allow for additional investment insales and marketing activities to commercialise our cutting edge microdisplaytechnology, the eyescreenTM. In addition to the appointment of Bill Miller as Chief Executive towards the endof 2005 and Graeme Walker's arrival as Finance Director in April this year, PaulVan Eynde was appointed to the Board in July to develop the Company's salesinfrastructure as well as its marketing strategy. I would like to thank them fortheir commitment and efforts over the past six months and I look forward toworking with all of them as we take the Company forward. Operational Review The last six months has seen further yield improvement in our manufacturingprocess and, with the introduction of the volume toolset and the next generationeyescreenTM product in 2007, the Board expects this trend to continue. Themanagement team has been focused on positioning the Company to ensure that itwill be ready to install the volume manufacturing line once new funds wereavailable and a suitable manufacturing facility was identified. Further to this, we are delighted to announce that we have now selected a worldclass-manufacturing base in Dresden, Germany. This locality has a highlydeveloped infrastructure and, with the Fraunhofer Institute at its heart, it isregarded as a hub for high tech development in Europe. The Board also expectsthat MED will further benefit from Dresden's polymer "centre of excellence". The Board's strategy, which was adopted nearly a year ago, has now taken shapeand the platform for growth is in place. The Directors are confident that thekey elements of the equipment will be in place by December 2006, withqualification and characterisation taking place in early 2007, and volumeshipment capable of commencing during the second quarter of 2007. Financials Turnover for the period was £0.04m (H1 2005: £0), with pre-tax loss for the sixmonths at £3.4m (H1 2005: £2.7m, as restated for the introduction of FRS20). Asa result of continued product development and the commencement of pilotproduction from the manufacturing line in Edinburgh, operating expenses were up£0.6m to £3.5m (H1 2005: £2.9m). Fully diluted loss per share was 19.6p (H12005: 15.8p). The pilot production has now been completed and the Edinburghfacility is now focused on new generation product development. Net funds at 30 June were £4.1m (30 June 2005: £9.7m) after paying initialdeposits of £0.7m on those pieces of volume tool set equipment with the longestlead times. Outlook The platform that we have been working to develop is now in place and theCompany has a clear strategy to achieve volume manufacturing in 2007. The Boardbelieves that the Company has secured a world class manufacturing facility whichwill enable it to address the increased rate of enquires that have been receivedover the past six months. The Board has recently taken the decision to evolve the strategic direction ofthe business in order to develop MED's microdisplays as an enabling, as well asa replacement, technology. Ultimately, this has allowed the Company to progressthe development of eyescreenTM at a quicker pace and is now in discussions tosecure our first volume orders; in June 2006 MED received its first letter ofintent for product from the volume tool set and further progress is anticipatedin the future. We have been working extremely closely with our potentialcustomers and we are now looking to build the order book for the coming months.We are encouraged by these developments, which we believe could generate, intime, significant value for shareholders. In addition, I am delighted to say that the milestones associated with thestrategy adopted by the new management team continue to be met. We will continueto monitor these closely as the Company moves towards volume manufacturing in2007. I would again like to thank all of our staff for their dedication andcongratulate them on their achievements over the last six months. eyescreenTM isan extremely exciting product and I believe that we now have the team in placeto make the most of this opportunity. Christopher SmithChairman6 September 2006 Consolidated profit and loss accountFor the 6 months to 30 June 2006 Note 6 months to 6 months to Year to 31 30 June 30 June December 2006 2005 2005 Unaudited Unaudited Audited (Restated) (Restated) £000 £000 £000 Turnover 42 - 6 Administrative expenses (3,556) (3,061) (5,971)Other operating income 38 107 234 ---------------------------------------------Operating loss (3,476) (2,954) (5,731) Interest receivable andsimilar income 146 321 534Interest payable andsimilar charges (36) (78) (130) --------------------------------------------- Loss on ordinary activities before taxation (3,366) (2,711) (5,327) ---------------------------------------------Tax on loss on ordinary activities - - - Loss for the financial period transferred to reserves (3,366) (2,711) (5,327) ============================================= Loss per ordinary share 4 Basic and diluted loss per share 19.6p 15.8p 31.1p ============================================= Consolidated balance sheetat 30 June 2006 As at 30 June As at 30 June As at 31 December 2006 2005 2005 Unaudited Unaudited Audited Note £000 £000 £000 £000 £000 £000 Fixed assets Intangible assets 1,777 2,025 1,910Tangible assets 1,009 693 422 -------- -------- -------- 2,786 2,718 2,332 Current assetsStock - 296 150Debtors 162 227 129Cash at bank and in hand 4,138 10,313 8,066 -------- -------- -------- 4,300 10,836 8,345 Creditors: amountsfalling due within one year (569) (1,205) (875) -------- -------- --------Net current assets 3,731 9,631 7,470 -------- -------- --------Total assets less current liabilities 6,517 12,349 9,802 Creditors: amounts falling due after more than one year - (8) - Net assets 6,517 12,341 9,802 ======== ======== ======== Capital and reservesCalled up share capital 11,135 11,135 11,135Share premium account 5 8,052 8,052 8,052Merger reserve 5 6,814 6,814 6,814Profit and loss account 5 (19,484) (13,660) (16,199) -------- -------- -------- Shareholders' funds - equity 6,517 12,341 9,802 ======== ======== ======== Consolidated cash flow statementFor the 6 months to 30 June 2006 6 months to 30 June 6 months to 30 June Year to 31 December 2006 2005 2005 Unaudited Unaudited Audited Note £000 £000 £000 Cash flowstatement Cash outflow fromoperating activities 6 (2,986) (2,241) (4,416) Returns on investments and servicing of finance 110 243 404 Capital expenditure (774) (117) (172) -------------------------------------------------------------------- Cash outflow before financing (3,650) (2,115) (4,184) Financing (278) (250) (428) --------------------------------------------------------------------Decrease in cash in the period (3,928) (2,365) (4,612) ==================================================================== Reconciliation of net cash flow to movement in netfunds 7 Decrease in cashin the period (3,928) (2,365) (4,612) Change in debt resulting from cash flows 316 358 663 -------------------------------------------------------------------- Movement in net funds in the period (3,612) (2,007) (3,949) Net funds at the start of the period 7,742 11,691 11,691 --------------------------------------------------------------------Net funds at theend of the period 4,130 9,684 7,742 ==================================================================== Notes to the accounts: 1.The interim financial information has been prepared on the basis ofaccounting policies consistent with those applied in the accounts for the yearended 31 December 2005 except for the implementation of FRS20 (Share-basedpayment). The information is unaudited and does not comprise the statutoryaccounts of the group. The statutory accounts of MicroEmissive Displays Groupplc for the year ended 31 December 2005 have been filed with the registrar ofcompanies. KPMG Audit Plc have reported on the statutory accounts; their reportwas unqualified and did not contain any statement under section 237 of theCompanies Act 1985. 2.As a result of the introduction of FRS20, a prior year adjustment hasbeen made in respect of the share based charge in the loss for the financialperiod of £81,000 (June 2005, £68,000; December 2005, £145,000). There is noaffect on the net assets at the end of any of the periods. 3. This report was approved by the board of directors on 1September 2006. 4. Loss per share Loss per share is calculated as follows: Six months Six months Year to to to 30 June 30 June 31 December 2006 2005 2005 (Restated) (Restated) £000 £000 £000 Net loss for the financial period (3,366) (2,711) (5,327) ========================================= Number Number Number Weighted average number of ordinary shares 17,132,206 17,131,705 17,132,015 Basic and diluted loss per share 19.6p 15.8p 31.1p 5.Share premium and reserves Share Merger Profit & Loss Premium reserve Account Account (Restated) £000 £000 £000 At beginning of period 8,052 6,814 (16,199) Retained loss for period - - (3,366) Equity adjustment reshare based payment 81 ---------------------------------------------At end of period 8,052 6,814 (19,484) ============================================= 6. Reconciliation of operating loss to operating cash flows Six months Six months Year to to 30 June to 30 June 31 December 2006 2005 2005 (Restated) (Restated) £000 £000 £000 Operating loss (3,476) (2,954) (5,731)Depreciation and amortisation 321 460 900Government grants (38) (107) (234)Gain on disposal of fixedassets - - -(Increase)/decrease in stocks 150 (61) 85(Increase)/decrease in debtors (33) 277 375(Decrease)/increase increditors 9 76 44Charge in respect ofshare based payment 81 68 145 ---------------------------------------------Net cash outflow from operating activities (2,986) (2,241) (4,416) ============================================= 7. Analysis of net funds At 1 Cash At 30 January flow June 2006 2006 £000 £000 £000 Cash in hand and at bank 8,066 (3,928) 4,138 Finance leases (324) 316 (8) ---------------------------------------Total 7,742 (3,612) 4,130 ======================================= This information is provided by RNS The company news service from the London Stock Exchange