Neometals Regulatory News (NMT)

27 Sep 2006 18:28

NMT Group PLC27 September 2006 27 September 2006 NMT GROUP PLC INTERIM RESULTS FOR THE SIX MONTHS TO 30 JUNE 2006 NMT Group PLC ("NMT" or "the Company"), the investing company, announces itsunaudited interim results for the six months ended 30 June 2006. Highlights: Investing strategy approved by shareholders at AGM Recommended all-share offer for the Company by Volvere plc announced on 14September 2006 Pre-tax loss £0.09m (30 June 2005: £0.5m; 31 December 2005: £1.4m) Consolidated net assets of £5.8m (30 June 2005: £6.8m; 31 December 2005: £5.9m) Cash on hand £5.9m (30 June 2005: £6.5m; 31 December 2005: £6.1m) Basic and diluted loss per share 1.1p (30 June 2005: 5.7p; 31 December 2005:15.7p) No dividend proposed Chairman, Lord Kalms, said: "I am pleased with the progress made in reducingthe losses of previous years coupled with the opportunity to implement thecompany's new investing strategy." For further information, please contact:NMT Group PLC +44 (0) 20 7979 7590Jonathan Lander, Director Weber Shandwick Square Mile +44 (0) 20 7067 0700Terry Garrett About NMT NMT was floated on the London Stock Exchange in 1997. It was a manufacturing company until 2004, fromwhen it became a licensing and development company for safety needle-based medical devices. In 2006the NMT board announced the company would become an investing company. The Company's investingstrategy is to invest, inter alia, in under-performing or failed companies that offer the possibilityof a turnaround. NMT's largest shareholder is Volvere plc ("Volvere"), which owns 29.9% and whichannounced a recommended all-share offer to acquire NMT on 14 September 2006. EXECUTIVE DIRECTORS' STATEMENT The Board is pleased to present the interim statement for the six months ending30 June 2006. In our preliminary results for the year ended 31 December 2005 your Boardoutlined the investing strategy that it believed the company should follow infuture. We are pleased to report that, on 11 September 2006, shareholders dulyapproved that strategy. We have eliminated all non-essential costs and enabled the company's principalasset - cash - to be available to execute the company's new strategy. As aresult, we have been able to deliver significantly reduced losses when comparedto previous periods. The Company's balance sheet remains strong with net assets per share of 66.6p atthe balance sheet date. On 14 September 2006, a recommended all-share offer for NMT by Volvere plc ("Volvere") was announced (the "Volvere Offer"). Since Volvere and NMT sharesimilar investing strategies and executives, your Board believes that theacquisition by Volvere will be beneficial in terms of cost savings and in termsof the resultant increase in the size and range of target investments that acombined entity would enjoy. The Independent Directors of NMT, George Wardale and Lex Gold, have recommendedshareholders to accept the Volvere Offer. Results Turnover The company had no turnover during the period (30 June 2005: nil; 31 December2005: nil). Loss after tax The Company's loss after tax for the six months was £0.09m (30 June 2005: £0.5m;31 December 2005: £1.36m). Balance sheet At the end of the period the Company's consolidated net assets were £5.8m (30June 2005: £6.76m; 31 December 2005: £5.9m) of which cash represented £5.9m (30June 2005: £6.5m; 31 December 2005: £6.1m). Outlook The Independent Non-Executive Directors consider that the Volvere Offer, ifaccepted, represents the most attractive way forward for the Company. Jonathan Lander Nick Lander Executive Director Executive Director 27 September 2006 CONSOLIDATED PROFIT AND LOSS ACCOUNT 1 January to Year ended 31 1 January to 30 30 June December June 2006 2005 2005 Continuing Discontinued Discontinued Unaudited Unaudited Audited Note £000 £000 £000 Turnover - - - Cost of sales - - - Gross profit - - -Selling and distribution costs - (153) (237)Administration expenses (220) (526) (1,123) Group operating loss (220) (679) (1,360)Exceptional items - - (336) Loss before interest (220) (679) (1,696) Interest receivable 127 153 293 Loss on ordinary activities beforetaxation (93) (526) (1,403) Taxation on loss on ordinary activities - 28 39 Loss for the financial period (93) (498) (1,364) Loss per ordinary shareBasic and diluted 9 (1.1)p (5.7)p (15.7)p Loss per ordinary share beforeexceptional items (1.1)p (5.7)p (11.8)p There are no recognised gains or losses other than the result for the currentand preceding financial periods. Accordingly, no statement of total recognisedgains and losses is given. CONSOLIDATED BALANCE SHEET 30 June 30 June 31 December 2006 2005 2005 Note Unaudited Unaudited Audited £000 £000 £000 Fixed assetsTangible assets 2 - - 261 Current assets Debtors 4 56 179 77Cash at bank and in hand 5,895 6,514 6,090 5,951 6,693 6,167 Creditors: amounts falling duewithin one year (149) (193) (183) Net current assets 5,802 6,500 5,984 Total assets less currentliabilities 5,802 6,761 5,984 Provisions for liabilities andcharges - - (89) Net assets 5,802 6,761 5,895 Capital and reservesCalled up share capital 37,187 37,187 37,187Share premium account 38,639 38,639 38,639Profit and loss account (70,024) (69,065) (69,931) Total shareholders' equity funds 5 5,802 6,761 5,895 CONSOLIDATED CASH FLOW STATEMENT 1 January 1 January Year ended 31 to 30 June 2006 to 30 June December 2005 Note Continuing 2005 Discontinued Discontinued Unaudited Unaudited Audited £000 £000 £000Net cash outflow from operatingactivities 6 (351) (671) (1,292) Returns on investments &servicing of finance 7 127 181 307 Taxation 7 - - 71 Capital expenditure and financialinvestment 7 29 (1) (1) Cash outflow before management ofliquid resources and financing (195) (491) (915) Management of liquid resources 7 990 439 884 Cash inflow/(outflow) beforefinancing 795 (52) (31) Financing 7 - - - Increase/(decrease) in cash inthe period 8 795 (52) (31) NOTES TO THE INTERIM STATEMENT 1. The financial information contained in this interim report does notconstitute statutory accounts within the meaning of s240 of the Companies Act1985, and has not been audited or reviewed. The interim statement has beenprepared on the basis of accounting policies expected to be applied consistentlyfor the foreseeable future, of which the principal ones are explained below.The interim accounts were approved by the directors on 27 September 2006. 2. Tangible fixed assets Tangible fixed assets are recorded at purchase cost, together with anyincidental acquisition costs. Depreciation is charged so as to write off thecost of the tangible fixed assets less their estimated residual values, on astraight-line basis over the expected useful economic lives of the assetsconcerned. Provision is made for any permanent diminution in value. 3. Research and development costs Research and development costs are written off as incurred. Employee and otherexpenditure relating to trademarks is written off as incurred. 4. Debtors 30 June 30 June 31 December Group and company 2006 2005 2005 Unaudited Unaudited Audited £000 £000 £000Other debtors 8 6 9Prepayments and accrued income 9 74 29Corporation tax recoverable 39 99 39 56 179 77 5. Reconciliation of movement in shareholders' funds 30 June 2006 30 June 31 December 2005 2005 Unaudited Unaudited Audited £000 £000 £000 Opening shareholders' funds 5,895 7,259 7,259Loss for the period (93) (498) (1,364) Closing shareholders' funds 5,802 6,761 5,895 6. Reconciliation of operating loss to operating cash flows 1 January 1 January Year ended 31 to 30 June 2006 to 30 June December 2005Group Continuing 2005 Discontinued Discontinued Unaudited Unaudited Audited £000 £000 £000 Operating loss (220) (679) (1,360)Depreciation and goodwillamortisation - 41 81Gain on disposal of fixed assets (29) - -Decrease in debtors 21 54 109Decrease in creditors (34) (87) (96)Exceptional items - - (336)Impairment of tangible fixedassets - - 221Increase/(decrease) inreorganisation provision (89) - 89 Net cash outflow from operatingactivities (351) (671) (1,292) 7. Analysis of cash flows 1 January 1 January Year ended 31 to 30 June 2006 to 30 June December 2005Group Continuing 2005 Discontinued Discontinued Unaudited Unaudited Audited £000 £000 £000Returns on investment andservicing of financeInterest received 127 181 307 Net cash inflow from returns oninvestments and servicing offinance 127 181 307 Capital expenditure and financialinvestmentPurchase of tangible fixed assets - (1) (1)Sale of tangible fixed assets 29 - - Net cash inflow/(outflow) fromcapital expenditure and financialinvestment 29 (1) (1) TaxationResearch and development taxcredit - - 71 Net cash inflow from taxation - - 71 Management of liquid resourcesCash returned from short termdeposit 990 439 884 Net cash inflow from managementof liquid resources 990 439 884 8. Analysis and reconciliation of net funds Analysis of net funds 1 January Cash flow 30 JuneGroup 2006 2006 Unaudited Unaudited UnauditedCash in hand at bank 6,090 (195) 5,895 Net funds at end of period 6,090 (195) 5,895 Reconciliation of net funds 30 June 30 June 31 December 2006 2005 2005 Continuing Discontinued Discontinued Unaudited Unaudited AuditedIncrease/(decrease) in cash in the period 795 (52) (31) Cash outflow from decrease in liquid resources (990) (439) (884) Change in net funds resulting from cash flows (195) (491) (915) Net funds at start of period 6,090 7,005 7,005 Net funds at end of period 5,895 6,514 6,090 9. Earnings per share The basic and diluted losses per share are based on the loss on ordinaryactivities after taxation of the company attributable to ordinary shareholdersof £93,000 and on 8,711,317 shares, being the weighted average numbers ofordinary shares in the period (30 June 2005 and 31 December 2005: 8,711,317).At the end of the period 8,711,317 (30 June 2005 and 31 December 2005:8,711,317) ordinary shares were in issue. FRS14 requires presentation ofdiluted EPS when a company could be called upon to issue shares that woulddecrease net profit or increase net loss per share. For a loss making companywith outstanding share options net loss per share would only be increased by theexercise of out-of-the-money share options. Accordingly, no adjustment has beenmade to diluted EPS for out-of-the-money share options. 10. Dividend The Board is not recommending payment of an interim dividend for the periodended 30 June 2006. 11. Distribution of document Copies of the Interim Results will be sent to the Aim Team and will beincorporated within the Equivalent Document which will be sent to shareholdersin connection with the Recommended Offer from Volvere plc. This information is provided by RNS The company news service from the London Stock Exchange