Srt Marine Sys. Regulatory News (SRT)

5 Dec 2005 07:00

SOFTWARE RADIO TECHNOLOGY PLC (the "Company" or "SRT") INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2005 CHAIRMAN'S STATEMENTI am pleased to announce SRT's first set of results as a quoted company.SRT successfully floated on AIM on 2 November 2005 in conjunction with aplacing which raised proceeds of ‚£4.04 million (before expenses). The financialresults for the six months ended 30 September 2005, which are set out below,relate entirely to the pre-flotation period, when the group consisted ofSoftware Radio Technology (UK) Limited and its subsidiaries, Software RadioTechnology Limited and Software Radio Technology (Marine Technology) Limited.Operational UpdateTETRASince 31 March 2005, SRT has focused on advancing its TETRA handset referencedesign contracts with Hisense and TCB and on securing further TETRA contractswith manufacturers. Additional contracts with HYT and Unimo were signed duringthe period. These contracts are all currently in the product development phase,during which SRT receives income, which is payable against specific developmentmilestones.All of the TETRA development contracts are progressing satisfactorily.Additional contracts are under negotiation.SRT also generates income from the sale of hardware, incorporating elements ofits TETRA technology, to other TETRA manufacturers. An important recentdevelopment was an agreement with Selex Communications OTE, an Italianmanufacturer of TETRA equipment. This agreement sets out a framework for thesupply of the technology in the period to December 2006 and is expected togenerate sales of up to US$900,000 to SRT over that period.AISSRT receives ongoing royalty income from its two AIS Class A transponderlicence contracts.The Company's prototype AIS Class B transponder design has been launched andthe response has been extremely encouraging. It is clear that there issignificant market demand for a lower cost AIS device targeted at the leisurevessel market.The Directors intend to adopt a dual strategy in addressing the market for theClass B product. SRT will offer the reference design approach, which is alsoused for the TETRA handset design and the AIS Class A design. Under thisapproach, the design is licensed to manufacturers in return for licence andproduct development fees and ongoing royalties. However, the Directors alsointend to market the Class B design as a complete product. A contract has beenagreed with a major electronics company in China for the outsourced manufactureof the Class B product.ConclusionWe are encouraged by the progress SRT is making. We have had a successful debuton AIM which has given us the funds to accelerate the development of thebusiness.The TETRA development contracts are progressing in line with expectations andthe response from the initial launch of our AIS Class B transponder has beenextremely encouraging.Richard MoonChairmanFor further information please contact:Software Radio Technology plc Tel: 01761 409500 Simon Tucker simon.tucker@softwarerad.com Shamus Kelly shamus.kelly@softwarerad.com Matthew Rogers matthew.rogers@softwarerad.com Westhouse Securities LLP Tel: 0161 838 9140 Tim Feather tim.feather@westhousesecurities.com The Communication Group plc Tel: 020 7630 1411 Richard Evans/Elizabeth Skerritt revans@thecommunicationgroup.co.ukCONSOLIDATED PROFIT AND LOSS ACCOUNTFOR THE 6 MONTHS ENDED 30 SEPTEMBER 2005 Six months to Six months to 30 Sept 2005 30 Sept 2004 Unaudited Unaudited ‚£ ‚£ Turnover 1,220,267 687,113 Cost of sales (741,515) (596,319) Gross profit 478,752 90,794 Administrative expenses (1,029,185) (865,249) Loss on ordinary activities before (550,433) (774,455)interest Other interest receivable and similar 4,640 141income Interest payable and similar charges (11,484) (14,470) Loss on ordinary activities before (557,277) (788,784)taxation Tax on loss on ordinary activities 160,524 366,328 Loss on ordinary activities after (396,753) (422,456)taxation The profit and loss account has been prepared on the basis that all operationsare continuing operations.There are no other recognised gains or losses other than those passing throughthe profit and loss account.CONSOLIDATED BALANCE SHEETAS AT 30 SEPTEMBER 2005 30 Sept 2005 30 Sept 2004 Unaudited Unaudited ‚£ ‚£ Fixed Assets Intangible assets 2,157,310 826,282 Tangible assets 335,477 177,317 2,492,787 1,003,599 Current Assets Stocks 23,496 148,289 Debtors 1,267,614 431,675 Cash at bank and in hand 40,776 228,617 1,331,886 808,581 Creditors: amounts falling due within (1,400,696) (1,768,642) one year, including convertible debt Net current liabilities (68,810) (960,061) Total assets less current liabilities 2,423,977 43,538 Creditors: amounts falling due after (447,558) - more than one year, including convertible debt 1,976,419 43,538 Capital and reserves Called up share capital 12,520 10,857 Share premium account 5,455,486 2,909,502 Other reserves 2,857 - Profit and loss account (3,494,444) (2,876,821) 1,976,419 43,538 Equity interests 1,976,419 40,681 Non equity interests - 2,857 1,976,419 43,538CONSOLIDATED CASHFLOW STATEMENTFOR THE PERIOD ENDED 30 SEPTEMBER 2005 Note 30 Sept 2005 30 Sept 2004 Unaudited Unaudited ‚£ ‚£ Operating activities Cash flow from operating activites 1 (824,997) (1,053,363) Returns on investment and servicing of finance Interest paid (3,828) - Interest received 4,640 141 (824,185) (1,053,222) Taxation 160,524 366,328 Capital expenditure Payments to acquire intangible fixed (678,707) (16,935)assets Payments to acquire tangible fixed (237,302) (93,177)assets (1,579,670) (797,006) Financing Loans introduced - 900,040 Issue of ordinary shares 50,000 - (Decrease)/increase in cash (1,529,670) 103,034equivalents Cash equivalents at start of period 1,067,650 125,583 Cash equivalents at end of period (462,020) 228,617 Cash equivalents comprise Cash and cash equivalents 40,776 228,617 Bank overdrafts (502,796) - (462,020) 228,617Notes:1. Cashflow from operating activities 30 Sept 2005 30 Sept 2004 Unaudited Unaudited Operating loss (542,618) (774,455) Depreciation 64,328 45,818 Amortisation 73,141 92,279 Decrease/(Increase) in stocks 111,241 (143,599) (Increase)/Decrease in debtors (577,749) 251,049 Increase/(Decrease) in creditors 46,660 (524,455) Net cash inflow from operating (824,997) (1,053,363) activities 2. The unaudited interim financial statements have been prepared on a basis consistent with the statutory financial statements of Software Radio Technology (UK) Limited for the year ended 31 March 2005. The interim financial statements, which have been approved by the directors, are unaudited and have not been subject to independent review as defined in the Auditing Practices Board Bulletin 1999/4 and do not constitute full statutory financial statements as defined in section 240 of the Companies Act 1985. 3. Copies of these interim results will be sent to shareholders. ENDSOFTWARE RADIO TECHNOLOGY PLC