Share Name Share Symbol Market Type Share ISIN Share Description
Corac Grp LSE:CRA London Ordinary Share GB0030591514 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 5.75p 0.00p 0.00p - - - 0.00 05:00:10
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Industrial Engineering 21.7 -3.9 -0.9 - 24.29

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Date Time Title Posts
30/7/201510:14Why you should sell this DOG12.00
25/6/201508:07Corac: Orthodox UK Engineer with Promise?373.00
02/4/201519:22Corac- DGC Ј100bn market, unique to CRA28,652.00
02/2/201510:41CORAC LE Orthodox UK Engineer with Promise?33.00
23/1/201512:49Corac Group - Diversification and Growth15.00

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DateSubject
28/5/2015
08:44
pavey ark: The institutional investors were obviously behind the conditions added to the recent option revision. These options can't be cashed unless the share price is over 15p for twenty days so a bit to go for management yet. If the recent buying is from the institutional investors and recent buying patters certainly looked like it was, then this is a big vote of confidence in CRA, sorry TPG. These guys would have recent ISA money so they would have cash to spend here but they did pay 10p a share eighteen months ago. NB at 10p you get ACI plus cash and the rest for free.
20/5/2015
08:01
pavey ark: A while back I read in IC about a company that had more in cash (quite a lot more)than its entire market cap. Not only this but the company had addition and potentially very valuable assets over and above the cash. Since reading the article the share price of this company has fallen showing that you can't even give money away on aim. ( I still haven't bought share in this company so I suppose I shouldn't criticise others) Back to CRA. The recent order for ACI brings the orders here to £17m in the past 6 months but headline orders are not the whole story as there are ongoing repair and maintenance contracts that will generate cash for years to come. ACI has a 25% margin,a very large and growing order book and repair and maintenance contract which must secure substantial profits for years to come. ACI is worth £30m of anyone's money yet if you strip out the cash the entire company is valued at c.£12m. I know I'm banging on about this but in fairness to myself I've been banging on about the non compressor side of the business since last year. Obviously Corac are being given no value for having a lump of cash but I suspect it helps with new business. I expect some of this cash to be spent but I don't suppose if the new business added a million or two to the profits the share price will rise much.
14/3/2015
09:02
pavey ark: Dashcroft70, I think you'll find that a number of people here have simply moved on. CRA ,much to the disappointment,anger and frustration of some original shareholders,is simply not the company of old. Current investors have recognised that it is now a specialist engineering company with a rock solid contract base and with the help of the actions you have described it is moving into profit. This frustration and selling by CET enthusiasts has created what I think to be an amazing situation regarding the share price and even with what I consider to be a constant steam of very positive news the share price anomaly still exists.
21/2/2015
13:42
bullster: The recent share dealing action and it's apparent unsynchronized relation to the companies share price, has prompted me to investigate the reason. I have concluded that, since the last quarter of '14, institutional investors are transferring Corac shares between themselves, with only the adjustment and new entrant balances, coming on the market, ie the regular 100-150,000 blocks. Since approx. 30/09/'14 to 02/02/'15, the following ii's have increased by- Barclays Bank Plc (Private Banking) ..................7.15m M&G Investment Management Ltd. .....................22.67m Legal & General Investment Management Ltd. ...........15.30m Hargreave Hale Ltd. ..................................12.85m Walker Crips Stockbrokers Ltd. .......................11.00m Standard Life Investments Ltd.,,,Brewin Dolphin Ltd.,,,Amati Global Investors Ltd.,,,Ignis Investment Services Ltd. and Henderson Global Investors Ltd. Between them, hold virtually ZERO Stock now.( aprox. 52m disposal, same period ) By my calculations, the institutional investor transfers are 7 million shares to the credit side. As the share price has changed from 3.7p to 4.25p including this period, it all makes sense to me now.
20/1/2015
10:25
the prophet: here is Cartmell's record up till last October, since when the share price has taken another lurch down! Any volunteers for that new thread btw? 28/09/09 Phil Cartmell appointed chief exec at CRA. Share price on the day 46.5p 05/07/10, Cartmell wasted no time in ousting Proff Musgrave, and make no mistake, he was ousted. OK, Musgrave had his faults, but I firmly believe he had the best interests of shareholders at heart. Not so sure re PC. Share price on the day, 18p 12/11/10, Massive placing, had been leaked to the press hence a pr a few days prior to say CRA considering a placing. Shares 17.25p, placing 15p 29/09/14 Five years in the job, shares close to their all time low of 5.75p. The 15p placing of four years ago looks a distant dream, and shareholders were up in arms at that point! Still, least PC is doing ok out of CRA, he took home £277K last year and £518K the year before, not too shabby and puts the odd £10K share purchase into perspective! Could be the bargain of the century at 5.25p mid, down another 4% or so today, but Cartmell's record at CRA to date is one of absolute failure, least for non-salaried shareholders!
14/11/2014
09:45
septblues: Good post Kiwi when oil price is high it encourages investment in upstream facilities, when oil price is low it encourages investment in downstream facilities i have no data for saying this but I suspect CRA share price movement is of the order of 70% beta and 30% alpha - + or -. ironically the saudis are driving oil prices down yet could benefit from gas compressors in their infrastructure.
05/11/2014
12:32
the_doctor: 'where are these suggestions of a rights issue coming from......or is it simply created rumours / disinformation by manipulators to drive down share price?' no sinister intentions at all, so please don't suggest otherwise Personally, I've been open to the possibility of a placing. Why? A) the last set of results talked of the possibility of an acquisition to get synergies out of HTT. That side is a waste of time if they can't make it profitable - one alternative option would be to sell HTT of course! IMO if PC can find a suitably priced business that would fit with HTT and aid margin improvement, then he'll go for it B) When the Wellman businesses were bought, PC raised cash too. IMO rather than draining cash to worringly low levels through an acquisition, we'd see a placing happen at the same time. If the acquisition was bigger, then of course they'd have no option but to issue equity to holders or the sellers. I have put forward a placing, simply on the basis of a possible HTT acquisition. If there's to be no acquisition then I'd not expect any placing or fundraiser because they don't need more cash unless other plans have changed. Things that fit IMO are the directors buying small amounts. Various reasons for this of course, but I reckon directors are encouraged to buy some so that when doing a placing for say 4p/share, they can say 'look, we just bought at 6p' - even if the amounts were token and nobody would really take much notice. It gives them an answer to the question of 'why haven't you bought at these levels' They may though just have bought to try to show support Then there's the recent share price decline, which fits but could again be for other reasons. Before other placings here, the share price has always fallen first
29/10/2014
09:56
the_doctor: Now, just to add context, let's see what Pavey Ark used to post before he changed his username. Pavey Ark was 'clogue' Corac- DGC Ј100bn market, unique to CRA - CRA clogue - 12 Apr 2013 - 15:08:05 - 25189 of 28121 The risk in now very low indeed. share price was 12p! Corac- DGC Ј100bn market, unique to CRA - CRA clogue - 12 Apr 2013 - 12:09:33 - 25161 of 28121 Obviously there is great potential in the dgc but I get the feeling that this is as far as Cartmell will take it. This guy is good and is out to make money and anyone investing at this price should make money with him. It may ONLY be 20-30% a year but I can cope with that yet after the disappointing trial, I say I think PC will wind down the DGC and I'm so irrational??? Look at his advice to buy at those levels. Share now down 65%! Corac- DGC Ј100bn market, unique to CRA - CRA clogue - 12 Apr 2013 - 10:35:56 - 25150 of 28121 By my calculations current cash burn is less than £1m /year and falling Operating cash burn in 2013 was £3.7m! It's not just with Corac Look at Belgravium clogue 7 Mar'12 - 16:32 - 836 of 1339 0 0 The results show a free cash generation of £1.7m last year and I am certain the figure will be higher this year.... Still forecast £2m+ profit and £3m cash this year. This company simply has to be worth £20m now or very soon. The share price then dropped 75%! Profit was at drop to £330k
26/3/2014
23:54
nick2412: Reduced a bit here because of other tempting slightly nearer term opportunities but still have an interest and will look to replenish at the right time. With the cash and multiple partnered CET related programs CRA's share price could have a very substantive re-rating in 2015 / 2016 and perhaps the market will look forward and factor that potential in sometime this year. I think the CRA funding came at the wrong time as it coincided with a period when many similar pre-profit small / medium m/cap blue sky companies had a very good share price run. Whether CRA would have participated in the fun without the large funding dampener I don't know. If it had then PC probably would have put out one of those annoying 'we know of no reason for the share price rise' RNS's! With positive DGC news there could still be a 'late to the party' re-rating. The main thing that Phil Cartmell has brought in (aside from dilution) is organisation and money and he's been fortunate that the fund managers have had faith in him. I suppose once they head hunted him they had to back him financially. He talks about the "value built in the two acquired businesses" but he needs to explain that as, on the face if it, the value (profit) has been reduced not enhanced. Mark Crawford spoke with 'BRR' (a sort of less well known version of Proactive Investors I think) in the link below about acquiring businesses with £3m EBITDA profit. I think the combined profits from these two subsidiaries in the last set of results came in at £2.6m annual EBITDA profit. That's not a disaster by any means as most investors will be invested for CET and CRA / CET is very well funded now, but PC needs to explain how a profit reduction amounts to building value. Some of the funding will have helped to reinvigorate Hunt Graham and enable the subsidiary to go after higher margin work. So PC may well be able to depict a positive forward looking growth story for HG. ACI is pretty solid with reasonably high % recurring revenues. Hopefully there will be an update on progress towards tackling smoke reduction for civil markets as that looks the best route for any significant growth in the 'support acts' for CET. MC also spoke about £1.5m flowing in from CET hitting milestones . There were nominal CET revenues last year so there is the potential for a positive surprise if that £1.5m falls into the 2013 figures. If not then MC and PC need to explain what has happened to the £1.5m payments referenced. http://www.brrmedia.co.uk/event/96229/mark-crawford-group-managing-director-and-cfo I think Phil Cartmell has set up a highly professional operation with staff who will pretty much do most of the work for him. Mark Crawford is obviously his day to day 'eyes and ears'. I don't know what PC's salary plus bonus is but if it is for one day a week chauffeur driven attendance (according to banshee) then it's obviously a decent hourly rate! In one of the rare times I was able to speak to someone at CRA I was told he spends most of his time 'in the City'. It was relayed in the context of being 'for the benefit of CRA', however, I just get the impression (perhaps wrongly) that he's a part-time CEO on a full-time salary. Slightly grudgingly I can acknowledge that PC has done a half-decent job in transforming CRA but I reckon now is the time for a new CEO to take the helm and connect with investors a bit better. The right CEO combined with a positive update on the DGC and Hillcorp and ENI trials could help ignite the share price.
16/9/2013
16:19
aimho: News article Half Yearly Report RNS Number : 0002O Corac Group Plc 16 September 2013 16th September 2013 CORAC GROUP PLC ("Corac" or the "Group") Half Year Results for the six months to 30 June 2013 Group business highlights · Strong and growing order book, on track for second half performance · Added new global industrial majors to the client base · Grown a robust sales pipeline through group-wide presence and cross selling · Strategy of extending geographic presence and supporting key clients across the combined range of Corac Group business capabilities and technologies is now delivering benefits · Roles of Chief Financial Officer (CFO) and Chief Operating Officer (COO) separated to reflect the increasing breadth of Group business activities both in the UK and overseas, · Jon Carter appointed CFO on 22 July with Mark Crawford retaining COO role Financial Highlights · Group revenue of £8.3m (2012: £4.3m) · Total R&D4 spend of £1.4m (2012: £1.7m) before partner contributions · Adjusted Group EBITDA3 loss (before share based payments and exceptional items) of £1.5m (2012: loss £2.5m) · Group loss before tax of £2.4m (2012: loss before tax of £3.8m) · £2.8m cash as at 30 June 2013 (31 December 2012: £6.7m) driven by H1 working capital movements, year end cash anticipated to be in line with expectations · Group order book stood at £13.2m as at 30 June 2013 (2012: £16.3m) providing good visibility for second half cash generation and improving margins Current Trading and Outlook · H2 outlook is encouraging - orders due for delivery - a strong pipeline - order book has strengthened in Q3 · Anticipate performance in line with expectations, with a reduction in H2 losses and cash outflow. Phil Cartmell, Chief Executive of Corac Group commented: "The Board is pleased with the progress shown by the operating companies in the first six months of the year. The management changes have delivered immediate benefits and have strengthened the Group for the second half year and beyond. "The result is a more balanced business with strong continuity of performance from ACI, a revitalised Hunt Graham and an increasingly commercial CET. "With the growing maturity of the CET technologies, as demonstrated by the successful testing of the DGC, together with the value built in the two acquired businesses, the Board believes the real value of the Group is not reflected in the current share price, and is committed to closing this gap." Ends For further information please contact: Corac Group plc www.corac.co.uk Phil Cartmell, Chief Executive Officer 01753 285 800 Jon Carter, Chief Financial Officer Cenkos Ivonne Cantú / Elizabeth Bowman - Nomad 020 7397 8980 Jeremy Warner-Allen - Sales MHP Communications 020 3128 8100 Reg Hoare / Vicky Watkins / Naomi Lane NOTES TO EDITORS Corac is a group of innovative UK based engineering companies, active in energy and environmental technologies. Group companies produce valuable solutions in compression systems, atmosphere management and heat exchangers for government, energy and industrial users. It has traded shares on the London Alternative Investment Market (AIM) since July 2001. Highlights The Group has made substantial progress during the first half to build a balanced business with increasingly mature and commercial technologies, a growing list of global customers and the capability to deliver long term success. The performance of the business is in line with management expectations for the year. Group business highlights · Strong and growing order book, on track for second half performance · Added new global industrial majors to the client base · Grown a robust sales pipeline through group-wide presence and cross selling · Strategy of extending geographic presence and supporting key clients across the combined range of Corac Group business capabilities and technologies is now delivering benefits · Roles of Chief Financial Officer (CFO) and Chief Operating Officer (COO) separated to reflect the increasing breadth of Group business activities both in the UK and overseas, · Jon Carter appointed CFO on 22 July with Mark Crawford retaining COO role Corac Energy Technologies (CET) · Breakthrough tests of downhole gas compressor deployed in a live well in Texas · Major contract signed with BP for offshore compression, extending the reach of developed technologies - successful feasibility study led to initial design order valued at £0.4m as part of total project for first system estimated at £2.5m · First expander system, to generate renewable energy, delivered to customer for testing in August · Identified revenue streams worth $1billion as follow on to current projects with first commercial orders expected during 2014 · Regional office opened in Aberdeen to support the regional oil and gas market · Continued to register new patent applications to protect growing IP portfolio Atmosphere Control International (ACI) · Greater international presence with active negotiations on two Asian submarine programmes · Strengthened relationships with UK Government agencies to access additional export markets · New export order in excess of £0.7m for single vessel air purification equipment · Identified further opportunities for long term supply, support and maintenance contracts · Opened channels with industrial and defence contractors in the USA for technical and commercial collaboration Hunt Graham (HG) · Restructured following post acquisition review · New management team recruited with extensive relevant industry experience · Company refocused on specialist engineering projects and wider geographic reach · Two contracts with a combined value £2.4m signed in July for large heat exchange projects with global partners · Opened enlarged service and maintenance facility supporting refinery business in Scotland Financial Highlights · Group revenue of £8.3m (2012: £4.3m) · Total R&D4 spend of £1.4m (2012: £1.7m) before partner contributions · Adjusted Group EBITDA3 loss (before share based payments and exceptional items) of £1.5m (2012: loss £2.5m) · Group loss before tax of £2.4m (2012: loss before tax of £3.8m) · £2.8m cash as at 30 June 2013 (31 December 2012: £6.7m) driven by H1 working capital movements, year end cash anticipated to be in line with expectations · Group order book stood at £13.2m as at 30 June 2013 (2012: £16.3m) providing good visibility for second half cash generation and improving margins Notes 1 EBITDA is defined as operating profit adjusted to add back depreciation of property, plant and equipment and amortisation of acquired intangible assets. 2 The directors have provided the pro forma financial information to give an indication of performance as though the acquisitions of ACI and HG had occurred on 1 January 2012. The pro forma financial information is based on unaudited management accounts of both ACI and HG for the period from 1 January 2012 to 4 April 2012, aggregated with the trading results of the Group for the six month period ended 30 June 2012, which include the trading results of ACI and HG for the period from 5 April 2012 to 30 June 2012. The aggregated financial information is then further adjusted to eliminate certain exceptional items that do not relate to underlying trading contained in the unaudited management accounts of both ACI and HG for the period from 1 January 2012 to 4 April 2012. 3 Adjusted EBITDA is defined as operating profit adjusted to add back depreciation of property, plant and equipment, amortisation of acquired intangible assets and any other acquisition related charges, share based payment charges and exceptional items. Exceptional items are those items believed to be exceptional in nature by virtue of their size and or incidence, and in the current period comprise costs associated with the restructuring of activities at HG. In the six months to 30 June 2012 and twelve months to 31 December 2012 they comprise costs associated with the acquisitions of ACI and HG on 5 April 2012 and the associated equity fundraising on 2 April 2012. 4 Total R&D spend includes cost of sales within CET. Chief Executive Officer's Report Introduction The first half of 2013 has seen further progress for all three Corac businesses. There have been further advances in technology development projects, improved operational effectiveness in all activity areas and synergies achieved across the operating businesses. Overall financial performance and cash position were in line with expectations. Important technology and commercial milestones have been achieved, including the first field testing of a downhole gas compressor, delivery of the first renewable energy expander and agreement to develop new compressor applications for offshore platforms. The Group is now better equipped than it has ever been to deliver proven technology systems to global partners. The Board therefore has confidence in the long-term commercial success of the business. Financial Review Overall, the business continues to commit cash to fund its technology development projects. However, the rate of burn has been reduced by the partner funding of projects and the profit stream from ACI and HG. The Board continues to review the value, performance, strategic direction and options for financing commercialisation and growth, and are confident in the future prospects of the Group. The financial results for the half year ended 30 June 2013 show a loss before tax of £2.4m (2012: £3.8m) and adjusted EBITDA3 (before share based payments and exceptional items) of £1.5m loss (2012: £2.5m loss). Within CET, total R&D spend was £1.4m (2012: £1.7m), resulting in a reduced adjusted EBITDA3 loss of £1.9m (2012: £2.4m loss). R&D expenditure has reduced by £0.5m as a result of external partner funding. This funding was greater than last half year (2012: £0.1m) and reflects increasing market confidence in the progress of the technology programme. ACI has recorded an improved performance with revenues of £4.5m (2012: £4.1m on a pro forma2 basis). It reported adjusted EBITDA3 of £1.0m profit (2012: £0.7m on a pro forma2 basis). The restructuring of the HG leadership team impacted on its first half year results, but is expected to lead to improved performance in the second half and in 2014. Revenues for HG were £3.4m (2012: £4.0m on a pro forma2 basis), It reported an adjusted EBITDA3 of £nil (2012: £0.3m on a pro forma2 basis). The Group order book stood at £13.2m (2012: £16.3m) and has strengthened in Q3. Central costs were £0.7m (2012: £0.6m before exceptional items of £1.0m). Net cash at 30 June 2013 was £2.8m compared to £6.7m at 31 December 2012. First half year timing of payments and natural working capital flows of the longer term contracts has resulted in cash outflow of £3.8m, which is greater than the £1.7m EBITDA1. The working capital outflow is expected to reverse in the second half of the year. Group Development The Group has invested in business improvement programmes following the acquisition of HG and ACI. Changes in senior teams and business methods have focused attention on the core assets - advanced technologies, world class skills and strong customer relationships. Recruitment and restructuring in the first half of the year has attracted senior skills and experience from established companies to drive the Group forward. Following the half year end, the roles of Chief Financial Officer and Chief Operating Officer, previously both held by Mark Crawford, were separated to reflect the increasing breadth of Group business activities both in the UK and overseas. Going forward, Mark will focus on the role of COO to drive business growth and delivery across the three operating companies. Accordingly, Jon Carter was appointed as Chief Financial Officer with effect from 22 July; Jon joined from IPL Group and has many years of experience as CFO in private equity backed and leveraged companies in the manufacturing and technology sectors. Additionally, Neville Vickery joined Hunt Graham as Managing Director during the period. Neville was formerly Managing Director at David Brown Gear Industries Ltd, a specialist in engineering and gearing innovation, and brings international sales and marketing experience to the business. As part of the Group's focus on key client relationships, a new regional office has been opened in Aberdeen to provide more immediate access to the oil and gas community there. A new service facility has also been opened near Grangemouth to support the long-term maintenance relationship with Ineos and other refineries in the region. The Group has committed further investment into the technology development plan to improve collaboration across the Group to exploit synergies and bring specialist products to market quickly and effectively. Joint work by HG and CET is progressing as a result of their shared interest in thermal engineering and pressure vessels. A commercial and technical team has started to work with potential partners to test an enhanced smoke removal system, originally developed by ACI, for commercial use. This development reflects the strategy to expand Group technologies into new markets. The Group has also strengthened its commercial approach to protect its IPR. This includes better protection within commercial contracts and filing new patent applications such as one by CET relating to gas transmission pipelines. Corac Energy Technologies (CET) CET has achieved significant milestones in proving its technology maturity in the first half of the year as well as making significant progress towards commerciality. Accelerated life testing of system components has been followed by field testing of complete systems in live wells. As a result, additional energy industry companies have committed to work with CET on these exciting emerging technologies. In total there are six projects live or committed to build systems with partners in the energy and industrial sectors. In the United States, initial testing has proved the overall functionality of the DGC system. This was backed up in the UK by testing of the ENI system, witnessed by customer engineers. In both cases, engineering enhancements have been agreed with the partners to improve long term, reliable performance. The ENI system is scheduled to return to Spadeadam in Cumbria for acceptance testing in October. It is expected that the American DGC will be returned to site before the end of the year and both systems are anticipated to be testing in wells in early 2014. Compression for offshore platforms has progressed with an order for system concept and arrangement placed by BP Trinidad and Tobago LLC under the Master Service Agreement, as announced on 8 July. Following a successful feasibility study, this order is valued at almost £0.4m and will be completed in the third quarter of this year. Further orders for detail design and system build will follow. Total project value for the first system is estimated at just over £2.5m with installation on the platform in early 2015, with the expectation of further systems to follow. A second application with Tullow Oil has completed the feasibility phase and technical and commercial discussions for design and system build are currently in progress. The surface compression programme has completed a technical review with Saudi Aramco leading to negotiation of a contract amendment for a revised scope of work. The system will be designed to satisfy a range of well conditions with several hundred candidate wells to provide potentially substantial returns to CET. Detail design and system build of the revised system will begin in the second half of 2013 with field testing anticipated in early 2015. Beyond the oil and gas sector, work on expanders, which generate electricity from waste energy, has progressed as planned. Building on an initial contract announced on 15 November 2012, the first integrated system was delivered for partner testing on schedule in August. The parallel compressor design has been approved by the partner for build phase with delivery planned in November. A further project announced on 30 October 2012 for generation of low carbon electricity from waste energy in the gas transmission network has completed the front end engineering (FEED) stage and we are reviewing the output with the partners to agree next steps. Atmosphere Control International (ACI) ACI has focused on continuing to provide effective support to long term submarine programmes, whilst adding capability to work on international fleets and other commercial programmes. In the UK Astute class programme, work continues on two further deliveries due in 2013 and 2014 to complement four boat sets already installed, two of which went into active service this year. Work also continues on the second of the six-boat programme of the French Barracuda class. In export markets, ACI has built upon its established programmes to establish a greater international presence. This has led to a further order for air purification equipment on a boat from an overseas fleet. Active negotiations are in progress for at least one of the remaining four boats in this programme and other opportunities in the rapidly expanding Asian submarine market Hunt Graham (HG) The business review carried out post-acquisition has resulted in investment to restructure the Hunt Graham management, business methods and facilities. As reported in the trading update on 16 May 2013 a new Managing Director has been appointed. Since his appointment, HG has focused on its approach to its core markets, building on its specialist skills in large and complex thermal engineering solutions and making improvements in its production facilities. The result allows the team to provide higher levels of service and capability to their key customers and reach out to wider geographic markets through cross-selling with other Group companies. The Group is now seeing the positive returns on this investment, with successful pursuit of larger scale contracts where order values have risen and significant contacts have been secured. Notably these include a contract with VME Process, a US based Engineering, Procurement and Construction (EPC) company for a major programme in Saudi Arabia as reported on 30 July 2013 and a further new contract in excess of £0.8m with a global petrochemical company, also signed in July. These orders have improved the quality of the order book and are expected to deliver returns to HG over the second half of the year. Outlook The Board is pleased with the progress shown by the operating companies in the first six months of the year. The management changes have delivered immediate benefits and have strengthened the Group for the second half year and beyond. Technology programmes are being delivered with increasing frequency and on time, and market partners are reacting positively to the proof points they are being shown. The Group's Strategy of extending geographic presence and supporting key clients across the combined range of Corac Group business capabilities is beginning to bear fruit. Information from partners has identified revenue streams valued in excess of $1billion as follow-on to existing projects. The total market from other equivalent energy and industrial organisations can be reasonably projected to be many times this amount. It is anticipated that the first commercial follow-on orders will be received in 2014. The outlook for the second half is encouraging, with orders due for delivery, a strong pipeline of funded work and new opportunities. The Group order book has strengthened in Q3. As a result, the Board anticipates performance in line with expectations, with a reduction in second half losses and cash outflow. The result is a more balanced business, with strong continuity of performance from ACI, a revitalised Hunt Graham and an increasingly commercial CET. With the growing maturity of the CET technologies, as demonstrated by the successful testing of the DGC, together with the value built in the two acquired businesses, the Board believes the real value of the Group is not reflected in the current share price, and is committed to closing this gap. Phil Cartmell Chief Executive Officer 16 September 2013 Condensed Consolidated Statement of Comprehensive Income Unaudited Six months ended 30 June Unaudited Six months ended 30 June Audited Year ended 31 December 2013 2012 2012 £'000 £'000 £'000 Revenue 8,347 4,261 15,299 Cost of sales (6,178) (3,334) (11,845) Gross profit 2,169 927 3,454 Distribution Costs (293) (219) (509) Research and development costs (907) (1,603) (2,986) Administrative expenses (3,331) (3,058) (6,233) Operating loss (2,362) (3,953) (6,274) Finance income 2 117 180 Loss before income tax (2,360) (3,836) (6,094) Income tax credit 280 427 870 Loss and total comprehensive expense for the period attributable to shareholders (2,080) (3,409) (5,224) Loss per share expressed in pence per share Pence pence pence Basic and diluted loss per share (0.74) (1.24) (1.8) Condensed Consolidated Statement of Financial Position Unaudited 30 June Unaudited 30 June Audited 31 December 2013 2012 2012 £'000 £'000 £'000 ASSETS Non-current assets Goodwill 4,953 4,953 4,953 Other intangible assets 11,223 12,033 11,631 Property, plant and equipment 1,581 2,028 1,828 17,757 19,014 18,412 Current assets Inventories 36 30 44 Trade and other receivables 3,245 5,511 3,339 Taxation recoverable 884 350 700 Cash and cash equivalents 2,774 6,806 6,651 6,939 12,697 10,734 Total assets 24,696 31,711 29,146 LIABILITIES Current liabilities Trade and other payables (5,099) (7,646) (7,347) Taxation payable (52) (428) (52) (5,151) (8,074) (7,399) Non-current liabilities Deferred taxation (2,579) (2,768) (2,675) Provisions (642) (757) (712) (3,221) (3,525) (3,387) Total liabilities (8,372) (11,599) (10,786) Net assets 16,324 20,112 18,360 EQUITY Share capital 30,793 30,788 30,788 Share premium 13,769 13,769 13,769 Capital redemption reserve 575 575 575 Own shares held by the Employee Benefit Trust (551) (551) (551) Share-based payments reserve 1,065 963 1,026 Retained earnings (29,327) (25,432) (27,247) Total equity 16,324 20,112 18,360 Condensed Consolidated Statement of Changes in Equity Capital Own shares Share-based Share Share redemption held by payments Retained capital premium reserve EBT reserve earnings Total Six months to 30 June 2013 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 1 January 2013 30,788 13,769 575 (551) 1,026 (27,247) 18,360 Issue of shares 5 - - - - - 5 IFRS 2 share option charge - - - - 39 - 39 Transactions with owners 5 - - - 39 - 44 Total comprehensive loss for the period - - - - - (2,080) (2,080) Balance at 30 June 2013 30,793 13,769 575 (551) 1,065 (29,327) 16,324 Six months to 30 June 2012 Balance at 1 January 2012 24,740 13,523 575 (551) 883 (22,023) 17,147 Issue of shares 6,048 246 - - - - 6,294 IFRS 2 share option charge - - - - 80 - 80 Transactions with owners 6,048 246 - - 80 - 6,374 Total comprehensive loss for the period - - - - - (3,409) (3,409) Balance at 30 June 2012 30,788 13,769 575 (551) 963 (25,432) 20,112 Year to 31 December 2012 Balance at 1 January 2012 24,740 13,523 575 (551) 883 (22,023) 17,147 Issue of shares 6,048 246 - - - - 6,294 IFRS 2 share option charge - - - - 143 - 143 Transactions with owners 6,048 246 - - 143 - 6,437 Total comprehensive loss for the year - - - - - (5,224) (5,224) Balance at 31 December 2012 30,788 13,769 575 (551) 1,026 (27,247) 18,360 Condensed Consolidated Statement of Cash Flows Unaudited Six months ended 30 June Unaudited Six months ended 30 June Audited Year ended 31 December 2013 2012 2012 £'000 £'000 £'000 Operating activities Loss before income tax (2,360) (3,836) (6,094) Adjustments for: Depreciation 254 210 478 Amortisation 408 202 605 Finance income (2) (117) (180) Share-based payment expense 39 80 143 Decrease/(increase) in inventories 8 (621) 95 Decrease/(increase) in trade and other receivables 94 (392) 2,455 (Decrease)/increase in trade and other payables (2,248) (332) (2,303) (Decrease)/increase in provisions (70) - - Cash utilised in operations (3,877) (4,806) (4,801) Income tax received - 731 731 Net cash used in operating activities (3,877) (4,075) (4,070) Investing activities Interest received 2 117 180 Purchase of property, plant and equipment (7) (112) (175) Acquisition of subsidiary undertakings - (10,750) (10,910) Net cash used in investing activities (5) (10,745) (10,905) Financing activities Proceeds from issue of shares 5 6,350 6,350 Expenses of issue of shares - (56) (56) Net cash from financing activities 5 6,294 6,294 Net decrease in cash and cash equivalents (3,877) (8,526) (8,681) Cash and cash equivalents at beginning of period 6,651 15,332 15,332 Cash and cash equivalents at end of period 2,774 6,806 6,651 Notes to the Condensed Consolidated Interim Financial Statements 1. Nature of operations and general information Following the acquisition of ACI and HG in April 2012, the principal activities of Corac Group plc and its subsidiaries (the "Group") undertaken by the ACI, CET and HG businesses comprise: § ACI: Specialised miniaturisation of chemical processes for rugged environments. ACI supplies air purification equipment, oxygen/hydrogen generation and purification for submarines and air handling and distribution systems in maritime and other environments. § CET: Innovation and development of turbomachinery systems for use in the oil and gas sector and a wide range of other applications in industrial and utilities sectors. CET has active development programmes for oil-less compression for waste heat recovery and clean gas handling, and compact compression systems to enhance natural gas production operating inside the pipe both downhole and at the wellhead. § HG: Production of specialised heat exchange equipment used in the cooling and heating of large scale industrial processes. HG supply original equipment and spares, and perform refurbishment and term support services to user communities in oil & gas, chemical processing, power generation, foods and pharmaceuticals from an integrated design and production facility. Corac Group plc (the "Parent Company") is the Group's ultimate parent company which is incorporated and domiciled in the United Kingdom. The address of the Company is Technology Centre, 683-685 Stirling Road, Slough, Berkshire, SL1 4ST. The Parent Company's shares are listed on the Alternative Investment Market of the London Stock Exchange. The condensed consolidated interim financial statements are presented in pounds sterling, which is also the functional currency of the Parent Company, and all values are rounded to the nearest thousand pounds except when otherwise indicated. The financial information set out in this interim report does not constitute statutory accounts as defined in Section 404 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2012, prepared under IFRS as adopted by the EU, have been delivered to the Registrar of Companies. The auditor's report on the 2012 financial statements was unqualified and did not contain a statement under Section 498(2) or Section 498(3) of the Companies Act 2006. The condensed consolidated interim financial statements were approved for issue by the Board of Directors on 16 September 2013. 2. Basis of preparation These condensed consolidated interim financial statements are for the six months ended 30 June 2013. They have been prepared following the principal accounting policies set out in the Group's Annual Report and Accounts for the year ended 31 December 2012. These condensed consolidated interim financial statements have been prepared under the historical cost convention using accounting policies consistent with International Financial Reporting Standards (IFRS) as adopted by the European Union. The same accounting policies, presentation and methods of computation are followed in the condensed set of financial statements as applied in the Group's latest annual audited financial statements. While the financial figures included in this half-yearly report have been computed in accordance with IFRS applicable to interim periods, this half-yearly report does not contain sufficient information to constitute an interim financial report as that term is defined in IAS 34 The presentation of the unaudited 30 June 2012 comparative information has been changed to reflect adjustments to the fair value of assets and liabilities acquired on the purchase of ACI and HG on 5 April 2012. These adjustments were recognised in the audited Corac Group plc Accounts to 31 December 2012 but had not been recognised in the unaudited 30 June 2012 Interim Statement. The adjustments have decreased the loss for the period and increased net assets by £46,000 as follows: 30 June 12 Interim Statement Adjustment Credit to comprehensive income 30 June 12 Restated £'000 £'000 £'000 £'000 Statement of Financial Position Goodwill 1,969 2,984 - 4,953 Deferred tax liability - (2,814) 46 (2,768) Other net assets 18,097 (170) - 17,927 20,066 - 46 20,112 Statement of Comprehensive Income Loss before income tax (3,836) - - (3,836) Income tax credit 381 - - 427 Loss and total comprehensive expense for the period attributable to shareholders (3,455) - 46 (3,409) 3. Segmental Reporting The following table presents revenue, profit and certain net asset information for each business segment. Unaudited Six months ended 30 June Unaudited Six months ended 30 June Audited Year ended 31 December 2013 2012 2012 £'000 £'000 £'000 Revenue Atmosphere Control International 4,490 1,919 7,496 Corac Energy Technologies 505 87 220 Hunt Graham 3,352 2,255 7,583 Group 8,347 4,261 15,299 Segment Operating Result Atmosphere Control International 610 128 1,053 Corac Energy Technologies (2,153) (2,642) (5,082) Hunt Graham (144) 167 578 Central costs5 (675) (1,606) (2,823) Group (2,362) (3,953) (6,274) Loss from operations (2,362) (3,953) (6,274) Finance Income 2 117 180 Loss before income tax (2,360) (3,836) (6,094) Income tax credit 280 427 870 Loss after tax (2,080) (3,409) (5,224) Segment net assets / (liabilities) Atmosphere Control International 10,723 9,557 10,254 Corac Energy Technologies 4,142 8,202 6,112 Hunt Graham 2,104 1,828 2,244 Central (645) 525 (250) Total net assets 16,324 20,112 18,360 Geographical analysis - revenue United Kingdom 6,681 3,850 12,541 Rest of European Union 787 193 857 Rest of World 879 218 1,901 Total revenue 8,347 4,261 15,299 5 Central costs in the first six months to 30 June 2012 and year to 31 December 2012 include exceptional items of £980,000 associated with the acquisition of Atmosphere Control International Limited and Hunt Graham Limited 4. Segmental Reporting continued Atmosphere Control International CET Hunt Graham Central costs Group £'000 £'000 £'000 £'000 £'000 Six months ended 30 June 2013 Segment operating result 610 (2,153) (144) (675) (2,362) Depreciation and amortisation 405 213 44 - 662 EBITDA1 1,015 (1,940) (100) (675) (1,700) Share based payments - - - 39 39 Exceptional items - - 140 - 140 Adjusted EBITDA3 1,015 (1,940) 40 (636) (1,521) Six months ended 30 June 2012 Segment operating result 128 (2,642) 167 (1,606) (3,953) Depreciation and amortisation 201 200 11 - 412 EBITDA1 329 (2,442) 178 (1,606) (3,541) Share based payments - - - 80 80 Exceptional items - - - 980 980 Adjusted EBITDA3 329 (2,442) 178 (546) (2,481) Year ended 31 December 2012 Segment operating result 1,053 (5,082) 578 (2,823) (6,274) Depreciation and amortisation 600 418 65 - 1,083 EBITDA1 1,653 (4,664) 643 (2,823) (5,191) Share based payments - - - 143 143 Exceptional items - - - 980 980 Adjusted EBITDA3 1,653 (4,664) 643 (1,700) (4,068) 1 EBITDA is defined as operating profit adjusted to add back depreciation of property, plant and equipment and amortisation of acquired intangible assets. 3 Adjusted EBITDA is defined as operating profit adjusted to add back depreciation of property, plant and equipment, amortisation of acquired intangible assets and any other acquisition related charges, share based payment charges and exceptional items. Exceptional items are those items believed to be exceptional in nature by virtue of their size and or incidence. In the six months to 30 June 2013 they comprise costs associated with the restructuring of activities at HG. In the six months to 30 June 2012 and twelve months to 31 December 2012 they comprise costs associated with the acquisitions of ACI and HG on 5 April 2012 and the associated equity fundraising on 2 April 2012. 5. Loss per share The calculation of the basic loss per share is based on the loss after tax for the period divided by the weighted average number of shares in issue during the period as follows: Unaudited Unaudited Audited Six months ended Six months ended Year ended 30 June 30 June 31 December 2013 2012 2012 number number number Weighted average shares in issue 306,379,318 275,471,400 291,007,168 The weighted average number of shares in issue has been reduced by deducting the weighted average number of shares held by the Employee Benefit Trust of 1,506,347 shares (six months ended 30 June 2012 and year ended 31 December 2012: 1,506,347 shares). The issue of additional shares on exercise of employee share options would decrease the basic loss per share and there is therefore no dilutive effect of employee share options. 6. Share Issues At 31 December 2012 Corac Group plc has called up share capital of 307,880,416 ordinary shares of nominal value 10p each. On 11 June 2013 the Company issued 50,000 new ordinary shares of nominal value 10p each following the exercise of an employee share option issued at 10 pence per share under the Enterprise Management Incentive (EMI) scheme. At 30 June 2013 Corac Group plc has a total called up share capital of 307,930,416 ordinary shares of nominal value of 10p each. This information is provided by RNS The company news service from the London Stock Exchange END IR SFAFLDFDSEIU
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