Last checked at 31 Dec 2008 11:12
SOFTWARE RADIO TECHNOLOGY PLC
("SRT" or the "Group")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2008
Software Radio Technology plc ("SRT" or the "Group"), the AIM-quoted developer of digital wireless communications technology, announces its unaudited interim results for the six months ended 30 September 2008.
The first half of this financial year has been challenging for SRT plc and is reflected in a 35% reduction in year on year revenue.
SRT PMR Technology Limited
Despite the completion and successful launch of its TETRA handset during 2008 SRT PMR Technology Limited ("SRT PMR"), as announced on 19 December 2008, faces a funding gap primarily due to the late payment of license monies owed to SRT by Asian based customers. In the absence of additional external funding or payments of outstanding customer license fees, the Board of SRT PMR placed the business into administration on Wednesday 31 December 2008.
SRT plc and SRT Marine Technology Limited are ring-fenced from SRT PMR Technology Limited and will therefore remain unaffected from any potential liabilities which may arise from SRT PMR Technology Limited. However as a result of the late payment of license monies owed to the Group and the subsequent administration of SRT PMR, Group revenues for the year ending 31 March 2009 will be significantly below expectations and there will be significant impairments in the year end accounts reflecting the Group's investment in SRT PMR.
SRT Marine Technology Limited
SRT Marine Technology Limited ("SRT Marine") is now the world's leading provider of AIS technology and product solutions. It has established an international network of customers each of which are providing SRT Marine based AIS products into multiple market segments: leisure, commercial and national security. The global AIS market continues to grow strongly as the technology is recognised as an important element within marine navigation and increasingly maritime homeland security programs.
SRT Marine Technology and SRT plc have combined cash reserves of approximately £1million, no debt, and good stock levels to support its customers and the rapid growth of this market in the years to come. In the first six months of this financial year, SRT Marine generated revenues of £945,000. SRT Marine will continue to aggressively pursue its dual strategy of technology and product development coupled with the building of long term customer partnerships. The Board believes that SRT Marine Technology Limited is well positioned to consolidate and build upon its position within this growing global market.
Richard Moon
Chairman
| Enquiries: | ||
| Software Radio Technology plc Simon Tucker Group Managing Director | +44 (0) 1761 409500 | |
| Numis Securities Limited | +44 (0) 20 72601000 | |
| David Poutney - Corporate Broking Lee Aston - Nominated Adviser | ||
Richard Moon
Chairman
SOFTWARE RADIO TECHNOLOGY PLC
CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2008
| Six months ended | Six months ended | Year ended | ||||
| 30 Sep 2008 | 30 Sep 2007 | 31 Mar 2008 | ||||
| Unaudited | Unaudited | Audited | ||||
| £ | £ | £ | ||||
| Revenue | 1,244,658 | 1,910,852 | 4,739,113 | |||
| Cost of sales | (840,729) | (1,082,571) | (2,502,121) | |||
| Gross profit | 403,929 | 828,281 | 2,236,992 | |||
| Administrative expenses | (2,607,594) | (1,883,453) | (3,132,448) | |||
| Operating loss | (2,203,665) | (1,055,172) | (895,456) | |||
| Finance income | 36,270 | 62,988 | 125,662 | |||
| Loss before income tax | (2,167,395) | (992,184) | (769,794) | |||
| Taxation | 547,993 | - | 570,451 | |||
| Loss for the period | (1,619,402) | (992,184) | (199,343) | |||
| Loss per share (basic and diluted) | (1.66)p | (1.15)p | (0.22)p |
CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER 2008
| As at | As at | As at | ||||
| 30 Sep | 30 Sep | 31 Mar | ||||
| 2008 | 2007 | 2008 | ||||
| Unaudited | Unaudited | Audited | ||||
| £ | £ | £ | ||||
| Assets | ||||||
| Non-current assets | ||||||
| Intangible assets | 7,563,373 | 5,608,422 | 6,961,529 | |||
| Investments | 351,586 | - | 351,586 | |||
| Property, plant and equipment | 430,925 | 431,320 | 435,898 | |||
| Total non-current assets | 8,345,884 | 6,039,742 | 7,749,013 | |||
| Current assets | ||||||
| Inventories | 848,314 | 114,008 | 413,019 | |||
| Trade and other receivables | 3,867,366 | 3,330,388 | 5,683,915 | |||
| Cash and cash equivalents | 1,581,533 | 2,024,884 | 3,505,484 | |||
| Total current assets | 6,297,213 | 5,469,280 | 9,602,418 | |||
| Total assets | 14,643,097 | 11,509,022 | 17,351,431 | |||
| Liabilities | ||||||
| Current liabilities | ||||||
| Trade and other payables | (1,350,272) | (1,255,754) | (2,538,954) | |||
| Total current liabilities | (1,350,272) |
| (1,255,754) | (2,538,954) | ||
| Total liabilities | (1,350,272) | (1,255,754) | (2,538,954) | |||
| Net assets | 13,292,825 | 10,253,268 | 14,812,477 | |||
| Shareholders' funds | ||||||
| Ordinary shares | 97,818 | 89,102 | 97,818 | |||
| Share premium | 15,387,084 | 11,645,291 | 15,387,084 | |||
| Other reserves | 5,490,596 | 5,719,384 | 5,490,596 | |||
| Retained earnings | (7,682,673) | (7,200,509) | (6,163,021) | |||
| Total funds | 13,292,825 | 10,253,268 | 14,812,477 |
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2008
| Six months ended | Six months ended | Year ended | ||||
| 30 Sep 2008 | 30 Sep 2007 | 31 Mar 2008 | ||||
| Unaudited | Unaudited | Audited | ||||
| £ | £ | £ | ||||
| Cash used in operating activities | (1,078,022) | (1,364,253) | (2,369,092) | |||
| Operating activities | ||||||
| Interest received | 36,270 | 62,988 | 125,662 | |||
| Corporation tax received | 547,993 | - | 570,451 | |||
| Net cash used in operating activities | (493,759) | (1,301,265) | (1,672,979) | |||
| Investing activities | ||||||
| Purchase of intangible fixed assets | (1,305,787) | (818,036) | (2,303,927) | |||
| Purchase of property, plant and equipment | (124,405) | (41,139) | (191,988) | |||
| Net cash used in investing activities | (1,430,192) | (859,175) | (2,495,915) | |||
| Cash outflow before financing | (1,923,951) | (2,160,440) | (4,168,894) | |||
| Financing activities | ||||||
| Net proceeds from the issue of ordinary share capital | - | 3,868,319 | 7,357,373 | |||
| Net cash from financing activities | - | 3,868,319 | 7,357,373 | |||
| Net (decrease)/increase in cash and cash equivalents | (1,923,951) | 1,707,879 | 3,188,479 | |||
| Cash and cash equivalents at beginning of period | 3,505,484 | 317,005 |
317,005 | |||
| Cash and cash equivalents at end of period | 1,581,533 | 2,024,884 | 3,505,484 | |||
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. Basis of preparation
These unaudited interim financial statements have been prepared under the historical cost convention and on a basis consistent with the UK Companies Act 1985 and International Financial Reporting Standards and IFRIC interpretations as endorsed by the European Union and interpretations expected to be in issue at 31 March 2009. The interim financial statements were approved by the Board of Directors and the Audit Committee on 23 December 2008 The interim financial statements do not constitute statutory financial statements within the meaning of the Companies Act 1985 and have not been audited.
The figures for the year ended 31 March 2008 are derived from the statutory financial statements for that period. Those financial statements have been delivered to the Registrar of Companies and contained an audit opinion qualified due to limitation of scope relating to the recoverability of certain amounts recoverable on contracts and trade debtors.
The interim financial statements will be available from today to download on the Company's website www.softwarerad.com
2. Share-based payment
In line with the requirements of IFRS 2, the Group has recognised the following profit and loss charges in respect of issued share options:
| Six months ended | Six months ended | Year ended | ||||
| 30 Sep 2008 | 30 Sep 2007 | 31 Mar 2008 | ||||
| Unaudited | Unaudited | Audited | ||||
| £ | £ | £ | ||||
| Share options - profit and loss charge | 99,750 | 99,595 | 344,242 | |||
3. Earnings per share
The basis earnings per share has been calculated using the loss for the period of £1,619,402 (2007 - loss of £992,184) divided by the weighted average number of ordinary shares in issue of 97,817,107 (2007 - 86,653,590).
4. Statement of Movement in Shareholders' Funds
| Six months ended | Six months ended | Year ended | ||||
| 30 Sep 2008 | 30 Sep 2007 | 31 Mar 2008 | ||||
| Unaudited | Unaudited | Audited | ||||
| £ | £ | £ | ||||
| Loss for the period | (1,619,402) | (992,184) | (199,343) | |||
| Proceeds from issue of shares | - | 4,001,140 | 4,000,000 | |||
| Costs of share issue | - | (192,821) | (192,827) | |||
| Proceeds from exercise of warrants | - | 60,000 | 3,549,153 | |||
| Proceeds from exercise of share options | - | - | 33,714 | |||
| Share options to be exercised | 99,750 | 99,595 | 344,242 | |||
| Movement in shareholders' funds | (1,519,652) | 2,975,730 | 7,534,939 | |||
| Opening shareholders' funds | 14,812,477 | 7,277,538 | 7,277,538 | |||
| Closing shareholders' funds | 13,292,825 | 10,253,268 | 14,812,477 |
5. Cash Used in Operations
| Six months ended | Six months ended | Year ended | ||||
| 30 Sep 2008 | 30 Sep 2007 | 31 Mar 2008 | ||||
| Unaudited | Unaudited | Audited | ||||
| £ | £ | £ | ||||
| Operating loss | (2,203,665) | (1,055,172) | (895,456) | |||
| Depreciation of property, plant and equipment | 131,669 | 132,304 | 276,244 | |||
| Amortisation of intangible fixed assets | 701,660 | 160,678 | 295,793 | |||
| Revenue satisfied by issue of shares | - | - | (351,586) | |||
| Share-based payment charge | 99,750 | 99,595 | 344,242 | |||
| (Increase)/decrease in inventories | (435,295) | 47,930 | (251,081) | |||
| (Increase) in trade and other receivables | 1,816,549 | (358,781) | (2,679,729) | |||
| (Decrease)/increase in trade and other liabilities | (1,188,690) | (390,807) | 892,481 | |||
| Net cash used in operations | (1,078,022) | (1,364,253) | (2,369,092) |
6. Significant Accounting Policies
The accounting policies adopted are consistent with those of the financial statements for the year ended 31 March 2008, as described in those financial statements.