PipeHawk Regulatory News (PIP)

10 Feb 2005 13:56

PipeHawk PLC10 February 2005 PipeHawk Plc ("the Group" or "the Company") Interim Results for the six months ending 31 December 2004 Chairman's StatementThe half-year results for the six months ended 31 December 2004 conclude anextremely difficult calendar year for the Company. However, the Board isconfident that the actions taken during the first half of 2004 have begun toproduce results in the latter half of 2004 and put us in a strong positionentering 2005. The turnover for the six months has increased by 49 per cent. to £555,000compared with the first half of the calendar year 2004: £372,000 (2003 -£571,000). The retained loss for the six months has almost halved to £270,000from a loss of £526,000 in the first half of the 2004 calendar year (2003: loss£291,000). The steps taken by the board, in particular, the maintenance of tight costcontrols, following the delay in OfWat's decision regarding consumer priceincreases have minimised the impact of the difficult trading environment on theGroup's cash flows. I referred in my statement, which accompanied last year's Annual Report, that Ibelieved 2004 would be a difficult trading year largely as a result of the lackof investment by the water companies awaiting OfWat's deliberations. OfWatannounced its recommendations on 2 December, which subsequently permitted thewater companies to raise their prices by, on average, 18 per cent. more than therate of inflation spread over the next five years. The large water companies arenow beginning to put in place their investment plans for meeting theimprovements required of them by OfWat and utility detection is a strongrequirement of them. Notwithstanding this, we have seen a noticeable increase inbusiness in both SUMO (our franchise mark out business) and especially Adien(our high level mapping and planning service) since the autumn of 2004. Weexpect this increase to continue once the AMP4 investment programmes of theutility companies are finalised for the period 2005-10. As a consequence of the delay in OfWat's deliberations, your Board took actionto source other non-water related business during 2004. A result of which hasseen Adien successfully complete a prestigious mapping contract in Kuwait, workwith Transport for London on the improvement of the capitals traffic congestionand with mobile telecommunications companies in the roll-out of the nextgeneration of mobile telephone masts. As I write this Adien are enjoying arecord level of high quality orders for the first half of 2005. During the six months under review the Company also entered into the next phaseof the handheld pipe locator project with NEGAS, under which they provide acontribution amounting to $156,000 (50 per cent.) and the directors are pleasedto report that the development work remains in line with expectations. With regard to the further development of our anti-landmine vehicle, your boardcontinues to vigorously pursue potential sources of funding. In summary, your Board continue to remain very confident about the company'sfuture. Gordon Watt Chairman 10 February 2005 Summarised Consolidated Profit and Loss AccountFor the six months ended 31 December 2004 Note 6 months to 6 months to 12 months to 31 December 31 December 30 June 2004 2003 2004 Unaudited Unaudited Audited £'000 £000 £000Turnover - continuingoperations 555 571 943 Operating costs (799) (822) (1,715) ----------- ---------- ---------- Operating loss (244) (251) (772) Share of operating loss injoint venture (15) (23) (69) ----------- ---------- ---------- Loss on ordinary activitiesbefore interest and taxation (259) (274) (841) Group interest receivableand similar income - - 1Group interest payable andsimilar charges (28) (17) (52) ----------- ---------- ---------- Loss on ordinary activitiesbefore taxation (287) (291) (892) Tax on profit on ordinaryactivities 2 17 - 175 ----------- ---------- ---------- Retained loss for the period (270) (291) (717) =========== ========== ========== No interim dividend will be paid p p pLoss per shareBasic and diluted 3 (1.2) (1.4) (3.3) =========== ========== ========== Summarised Consolidated Balance SheetAs at 31 December 2004 Note 31 December 31 December 30 June 2004 2003 2004 Unaudited Unaudited Audited £'000 £000 £000 Fixed assetsIntangible assets 248 262 255Tangible assets 302 345 365Investment in joint venture: 6 35 21 ----------- ------------- --------- 556 642 641 ----------- ------------- ---------Current assetsStocks 312 282 281Debtors 368 421 285 ----------- ------------- --------- 680 703 566Creditors: amounts fallingdue within one year (896) (956) (720) ----------- ------------- ---------Net currentassets/(liabilities) (216) (253) (154) ----------- ------------- ---------Total assets less currentliabilities 340 389 487 Creditors: amounts fallingdue after more than one year (476) (361) (353) ----------- ------------- --------- Net assets (136) 28 134 =========== ============= ========= Capital and reservesCalled up equity sharecapital 232 210 232Share premium account 4,081 3,571 4,081Profit and loss account (4,449) (3,753) (4,179) ----------- ------------- --------- Equity shareholders' funds 6 (136) 28 134 =========== ============= ========= Summarised Consolidated Cash Flow Statement For the six months ended 31st December 2004 Note 6 months to 6 months to 12 months to 31 December 31 December 30 June 2004 2003 2004 Unaudited Unaudited Audited £'000 £000 £000 Net cash flow fromoperating activities 4,5 (17) (42) (586) Returns on investments andservicing of finance (28) (18) (51)Corporation tax received - - 105 Capital expenditure andfinancial investmentReceipts from sales oftangible fixed assets - - (153)Payments for fixed assets (20) (56) (68)Investments in jointventure - (33) 95Investment in subsidiary - - 4 ----------- ---------- ----------Cash outflow before use ofliquid resources andfinancing (65) (149) (654) ----------- ---------- ----------Financing New loans 202 - - Repayment of loans (13) (29) (51) Capital element of financepayments (26) (23) (28) Issue of ordinary shares - 150 682 ----------- ---------- ---------- Increase/(decrease) in cash 98 (51) (51) =========== ========== ========== Notes to the Financial StatementsFor the 6 months ended 31 December 2004 1. Basis of accounting The consolidated interim financial statements have been prepared on the basis ofthe accounting policies set out in the Group's 2004 financial statements. Theinterim financial statements are unaudited and do not constitute full financialinformation as defined in section 240 of the companies Act 1985 (as amended).The comparative figures for the year ended 30 June 2004 and the six months ended31 December 2003 do not comprise full financial statements. No account has beentaken of the trading results or any other transactions entered into by the Groupsince 31 December 2004. 2. TaxationNo corporation tax was payable as a result of losses arising and the Companybenefits from the Government's "Research and Development Tax Credit Scheme". 3. Loss per share 6 months 6 months 12 months to 31 December to 31 December to 2003 2004 Unaudited 30 June Unaudited 2004 Audited These have been calculated onlosses of: 269,755 290,908 717,000The weighted average number ofshares was: 23,203,808 20,415,354 21,798,121Basic and diluted (1.2p) (1.4p) (3.3p) 4. Reconciliation of operating loss to net cash outflow from operatingactivities 6 months to 31 6 months 12 months to 30 December 2004 June Unaudited to 31 December 2004 2003 £'000 Unaudited Audited £000 £000 Operating loss (244) (251) (772)Depreciation and amortisation 90 80 163Loss on sale of investments - - 4Realisations from investments - 99 -Movements in stocks (31) 58 59Movement in debtors (66) (141) 65Movement in creditors 234 113 (105) -------- ---------- ----------Net cash outflow from operations (17) (42) (586) ======== ========== ========== 5. Reconciliation of net cash flow to movement of net debt 6 months to 31 6 months 12 months to 30 December 2004 June Unaudited to 31 December 2004 2003 £'000 Unaudited Audited £000 £000 Change in cash 98 (51) (51) Cash inflow/(outflow) from increase / (decrease) in debt and lease finance (163) 52 79 -------- ---------- ---------- Net increase in debt (65) 1 28 Opening net debt (598) (622) (626) -------- ---------- ---------- Closing net debt (663) (621) (598) ======== ========== ========== 6. Reconciliation of movement in shareholders' funds 6 months to 31 6 months 12 months December 2004 to 31 December to 30 June 2004 Unaudited 2003 Unaudited Audited £000 £000 £000 Loss for the period (270) (291) (717)Net proceeds of sharesissued - 150 682 -------- ---------- ----------Increase / (decrease) inshareholders' funds (270) (141) (35) Opening shareholders' funds 134 169 169 -------- ---------- ---------- Closing shareholders' funds (136) 28 134 ======== ========== ========== Further Enquiries: PipeHawk Plc Gordon Watt, Chairman Tel: 01420 590990 John East & Partners Limited Johnny Townsend/Simon Clements Tel: 020 7628 2200 This information is provided by RNS The company news service from the London Stock Exchange