Last checked at 18 Nov 2009 07:00
SOFTWARE RADIO TECHNOLOGY PLC ("SRT" or the "Group") INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009
Software Radio Technology plc, the AIM-quoted developer of maritime identification and tracking technologies, announces its unaudited interim results for the six months ended 30 September 2009.
During the first six months, SRT started to see the fruits of its long term strategy. Revenues increased by 122% to 2.1 million whilst the loss for the period reduced from 402,000 to 31,000 compared to the first six months of last year. Net cash balances increased by 32% from 535,000 at 31 March 2009 to 705,000 at 30 September 2009.
SRT is focused on the development of high performance, complex, low cost maritime identification and tracking solutions with a particular focus on AIS (Automatic Identification System). AIS has become the maritime vessel identification and tracking system of choice for authorities and mariners around the world thus creating a global market for AIS products. SRT's evolving range of AIS solutions enables companies seeking to address this diverse global market in leisure, commercial and homeland security, to do so quickly and with minimal risk and investment. The increase in AIS projects and mandates around the world and therefore demand for SRT's solutions, has been the primary driver for the acceleration in the growth. A good example is the three year US$18 million order announced in September. However, so far, relatively few of the announced and expected AIS mandates have come into effect and therefore SRT continues to invest for the future.
SRT has invested heavily in the development of new AIS technologies and products with the objective of significantly improving and broadening its product range. This year has seen the introduction of a miniature low cost AIS receiver module and in Q2 2010 SRT will start production of a new Class A unit. The addition of these products enables SRT to address all segments of the global AIS market and is expected to provide additional revenue streams from 2010 with good margins.
The outlook for the AIS market is encouraging. Countries around the world, from South Korea and China to India, USA, EU and Turkey, are either actively implementing or planning national mandates for the use of AIS devices on hundreds of thousands of vessels. Since 2005, SRT has worked to develop low cost, flexible technologies and embed them within a wide variety of customer products. The Group's international customer base, which each have established brands and sales channels, continues to grow.
Although future revenues remain difficult to predict, with the risk of significant upward or downward fluctuations, the Board believes that SRT is well positioned to benefit from the expected increasing demand for AIS products as mandates, both planned and announced, take effect.
Finally I would like to take this opportunity to thank all our staff for their tireless, passionate and innovative work, without which SRT would not have been able to develop market leading technologies and establish itself as the leading provider of AIS solutions in the world today.
Nick JolliffeChairmanEnquiriesSoftware Radio Technology plc 01761 409500Simon Tucker simon.tucker@softwarerad.com Hanson Westhouse Limited 020 76016100Tim Feather tim.feather@hansonwesthouse.comMatthew Johnson matthew.johnson@hansonwesthouse.com
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009
Six months Six months Year ended ended ended 30 Sep 2009 30 Sep 2008 31 Mar 2009 Unaudited Unaudited Audited Re-presented* Notes GBP GBP GBP Continuing operations Revenue 2,093,574 944,611 2,516,489 Cost of sales (1,423,684) (724,673) (1,565,649) Gross profit 669,890 219,938 950,840 Administrative expenses (975,950) (698,127) (2,224,313) Other net operating income 167,273 - - Operating loss before share (138,787) (478,189) (1,273,473)based payments Share based payments charge 2 (58,403) (99,750) (42,130) Operating loss after share based (197,190) (577,939) (1,315,603)payments Investment revenues 491 28,345 33,441 Loss before income tax (196,699) (549,594) (1,282,162) Income tax credit 165,662 147,710 147,710 Loss for the period from (31,037) (401,884) (1,134,452)continuing operations Discontinued operations - (1,217,518) (11,043,473) Loss for the period from discontinued operation Loss for the period (including (31,037) (1,619,402) (12,177,925)discontinued operation) Loss per share (basic and 3 diluted): Continuing operations (0.03)p (0.41)p (1.2)p Discontinued operations - (1.25)p (11.3)p Continuing and discontinued (0.03)p (1.66)p (12.5)poperations * Re-presented - see note 1CONSOLIDATED BALANCE SHEETAS AT 30 SEPTEMBER 2009 As at As at As at 30 Sep 30 Sep 31 Mar 2009 2008 2009 Unaudited Unaudited Audited Notes GBP GBP GBP Assets Non-current assets Intangible assets 1,137,593 7,563,373 908,365 Investments - 351,586 - Property, plant and equipment 86,260 430,925 82,090 Total non-current assets 1,223,853 8,345,884 990,455 Current assets Inventories 709,372 848,314 897,981 Trade and other receivables 354,982 3,867,366 651,854 Cash and cash equivalents 704,926 1,581,533 535,692 Total current assets 1,769,280 6,297,213 2,085,527 Liabilities Current liabilities Trade and other payables (289,085) (1,350,272) (399,300) Total current liabilities (289,085) (1,350,272) (399,300) Total liabilities (289,085) (1,350,272) (399,300) Net assets 2,704,048 13,292,825 2,676,682 Shareholders' funds Ordinary shares 97,818 97,818 97,818 Share premium 15,387,084 15,387,084 15,387,084 Other reserves 4 5,490,596 5,490,596 5,490,596 Retained earnings (18,271,450) (7,682,673) (18,298,816) Total funds 2,704,048 13,292,825 2,676,682
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009
Share Share Retained Other Total Earnings Reserves Capital Premium GBP GBP GBP GBP GBP Balance at 1 April 2008 97,818 15,387,084 (6,163,021) 5,490,596 14,812,477 Loss for the period - - (1,619,402) - (1,619,402) Employee share options - - 99,750 - 99,750scheme - value of employee services Balance at 30 September 97,818 15,387,084 (7,682,673) 5,490,596 13,292,8252008 Loss for the period - - (10,558,523) - (10,558,523) Employee share options - - (57,620) - (57,620)scheme - value of employee services Balance at 31 March 2009 97,818 15,387,084 (18,298,816) 5,490,596 2,676,682 Loss for the period - - (31,037) - (31,037) Employee share options - - 58,403 - 58,403scheme - value of employee services Balance at 30 September 97,818 15,387,084 (18,271,450) 5,490,596 2,704,0482009
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009
Six months Six months Year ended ended ended 30 Sep 30 Sep 31 Mar 2009 2009 2008 Unaudited Unaudited Audited Re-presented* Notes GBP GBP GBP Continuing operations Net cash from operating 5 460,251 (288,723) (896,609)activities Interest received 491 28,345 33,441 Corporation tax received 165,662 147,710 147,710 Net cash from operating 626,404 (112,668) (715,458)activities Investing activities Purchase of intangible fixed (433,665) (224,404) (213,496)assets Purchase of property, plant (23,505) (37,985) (59,463)and equipment Net cash used in investing (457,170) (262,389) (272,959)activities Net increase/(decrease) in 169,234 cash and cash equivalents (375,057) (988,417)from continuing operations Discontinued operation Cash flows from operating - (381,091) (336,331)activities Cash used in investing - (1,167,803) (1,645,044)activities Net decrease in cash from - (1,548,894) (1,981,375)discontinued operation Net increase/ (decrease) in 169,234 (1,923,951) (2,969,792)cash and cash equivalents Cash and cash equivalents at 535,692 beginning of period 3,505,484 3,505,484 Cash and cash equivalents at 704,926 1,581,533 535,692end of period *Re-presented - see note 1
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. Accounting Policies
Basis of preparation
The interim financial information in this report has been prepared using accounting policies consistent with IFRS as adopted by the European Union. IFRS is subject to amendment and interpretation by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) and there is an ongoing process of review and endorsement by the European Commission. The financial information has been prepared on the basis of IFRS that the Directors expect to be adopted by the European Union and applicable as at 31 March 2010.
The accounting policies are consistent with those of the annual financial statements for the year ended 31 March 2009.
On 31 December 2008, the Board decided to discontinue the Group's professional mobile radio division and accordingly placed its 100% subsidiary, SRT PMR Technology Ltd, into Administration. This operation was not classified as discontinued as at 30 September 2008 and the comparative income statement and cash-flows have therefore been re-presented to show the discontinued operation separately from the continuing operations.
Non-statutory accounts
The financial information for the year ended 31 March 2009 set out in this interim report does not constitute the Group's statutory accounts for that period. The statutory accounts for the year ended 31 March 2009 have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified, did not contain a statement under either Section 237 (2) or Section 237 (3) of the Companies Act 1985 and did not include references to any matters to which the auditor drew attention by way of emphasis.
The financial information for the 6 months ended 30 September 2009 and 30 September 2008 is unaudited.
The interim financial statements are available 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 Six months Year ended ended ended 30 Sep 2009 30 Sep 2008 31 Mar 2009 Unaudited Unaudited Audited GBP GBP GBP Share options - profit and 58,403 99,750 42,130loss charge 3. Earnings per share
The basic and diluted earnings per share have been calculated using the loss for the period of 31,037 (six months ended September 30, 2008 - loss of 1,619,402; year ended March 31, 2009 loss of 12,177,925) divided by the weighted average number of ordinary shares in issue of 97,817,107 (six month ended September 30, 2008 and year ended March 31, 2009 - 97,817,107).
4. Other Reserves
Other reserves consist of: Capital Redemption Reserve 2,857 (2008: 2,857), Warrants Reserve 62,400 (2008: 62,400) and Merger Reserve 5,425,339 (2008: 5,425,339). There were no movements during the period.
5. Cash from Operations
Six months Six months Year ended ended ended 30 Sep 2008 30 Sep 2008 31 Mar 2009 Unaudited Unaudited Audited Re-presented* GBP GBP GBP Operating loss (197,190) (577,939) (1,315,603) Depreciation of property, 19,335 9,148 21,315plant and equipment
Amortisation of intangible 204,437 160,187 401,027 fixed assets
Share-based payment charge 58,403 99,750 42,130 (Increase)/decrease in 188,609 (379,059) (751,197)inventories
Decrease in trade and other 296,872 1,300,255 1,606,219 receivables
(Decrease) in trade and other (110,215) (901,065) (1,131,051) liabilities
Impairment of intangible fixed - - 230,551assets
Net cash generated / (used) in 460,251 (288,723) (896,609) operations
*Re-presented - see note 1
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