We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Nxt | LSE:NTX | London | Ordinary Share | GB0004397567 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 4.35 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMNTX RNS Number : 1578T NXT PLC 23 September 2010 23 September 2010 NXT plc Final results NXT plc ('NXT' or the 'Company'), the provider of unique sound solutions, best known for its flat-panel loudspeaker technology, announces its preliminary results for the 12 months to 30 June 2010 Key points · Company proposes to raise up to approximately GBP8.0 million (GBP7.2 million net of expenses) by way of a Firm Placing and a Placing and Open Offer - see separate announcement · GBP5 million of this firm-placed · Restructuring announced in August 2010 - to be completed by end of October 2010 · Sales for year to 30 June 2010 GBP1.9 million (2009: GBP3.2 million) following disappointing performance, announced in July 2010, in haptics licensing and standalone audio · James Lewis appointed Chief Executive Officer · Peter Thoms announces his retirement after 18 years of dedicated service to the Company. Ian Buckley, Chairman, said: "The new business model we have developed revitalises the company's prospects. It will enable NXT to take greater control over its routes to market and generate gross profit from more predictable revenue streams. Through the fundraising we will re-focus the workforce and expand component and module offerings to meet current and future market needs. Interest in the new products has been highly encouraging and the Board is confident that the change in management and business model marks the start of a new era for NXT. We are encouraged by the support for this shift in focus from our existing and new institutional shareholders and are determined to demonstrate that this support is justified." After 18 years as a Director, Peter Thoms announces his retirement today, effective with immediate effect. Peter has made a significant contribution to the Company over this time and the Board thanks him for his commitment and valuable contribution to the Company. For additional information, please contact: NXT plc: +--------------------------------+--------------------------------+ | Ian Buckley, Chairman | +44 (0) 1223 597 840 | +--------------------------------+--------------------------------+ | James Lewis, Chief Executive | +44 (0) 1223 597 840 | +--------------------------------+--------------------------------+ Media enquiries: +--------------------------------+--------------------------------+ | Allerton Communications | +44 (0) 20 3137 2500 | +--------------------------------+--------------------------------+ | | | +--------------------------------+--------------------------------+ Chairman's Statement For the year ended 30 June 2010 NXT plc ('NXT' or the 'Company' and together with its subsidiaries 'the Group') revenues were GBP1.9 million, a decrease of 40 per cent. over the same period last year (GBP3.2 million). Operating costs continued to be contained at similar levels to previous years at GBP3.7 million, resulting in a loss after tax of GBP1.7 million. The decrease in revenue was mainly due to the lack of licensing activity in the period. Whilst interest in NXT's intellectual property remains high, our potential customers are unwilling to commit to a large up-front licence fee to access the technology and to then be faced with the complexities of partnering licensed factories to implement the technology. The Board concluded that a rapid and fundamental change in business strategy was essential and took steps to transition to a business model that generates significant gross profit margin on sales of components utilising its intellectual property, rather than the very low levels of royalty previously received. To envision and implement this change in direction, NXT appointed James Lewis as Chief Executive Officer from 1 August 2010. James's background as a successful entrepreneur in a hi-tech electronic component sales model provides the ideal mix of skills and experience to drive the Company to growth. His initial objective has been to review the current structure of the Group and effect a restructure that will enable the Group to operate within its projected revenue stream in the shortest possible period. Along side that he has strengthened the executive team and is working with them to implement a growth plan for the Company through investment of resource in a range of new products that capture NXT's technology and intellectual property in a component and module form that can be sold to customers world-wide. NXT has therefore decided to properly capitalise the company by raising new funds to effect the restructure, cover a small working capital deficit and enable the investment to be made in growth. The fundraising that will be announced today (23 September 2010) takes the form of a firm placing of GBP5 million, a placing of up to GBP0.5 million and an open offer of GBP2.5 million and is subject to shareholder approval at the AGM on 18 October 2010. The net proceeds from the Firm Placing of approximately GBP4.2 million will be used to cover the expected working capital shortfall in November 2010, to complete a powerful executive team, restructure the Company and ensure that NXT commences its path to growth, as well as to develop some of the Group's existing products. Based on the Directors' expectations of the Company's current trading prospects, the Directors believe that without the net proceeds of the Firm Placing, there will be a shortfall in the Company's working capital in November 2010. Accordingly, a portion of the net proceeds of the Firm Placing will be used to cover the estimated working capital shortfall. Peter Thoms moved to Vice-Chairman on 1 August 2010, and has announced his retirement today. Following 18 years of loyal service to the Company, I would like to thank Peter for his commitment and dedication and wish him all the best for the future. Principal Risks and uncertainties The principal risks and uncertainties facing the Company are referenced in the Directors' Report on pages 14 and 15 of the Annual Report and Accounts, published today. Outlook The year has been a challenging one for NXT, with a very disappointing performance due to the unsuccessful business model pursued over many years. The Board has recognised this and taken the major decisions that led to the decisive actions early in the current year. The developing opportunities for NXT's intellectual property in both current and future markets combined with the support in the fundraising process of new and existing institutional shareholders positions NXT to fully exploit its technological and business capabilities... Ian Buckley Chairman Operating and Financial Review Operating Review The year to 30 June 2010 has been a poor one for NXT. Income from new licenses and overall royalty payments were below expectations, offset partly by increased sales of exciter components into niche applications and income generated from consulting to licensees. Furthermore the resulting sales for the 12 month period are in the order of GBP1.9 million, compared with GBP3.2 million last year. In the previous year the Company signed a licence with Nissha Printing in Japan for GBP1.2 million. The underlying business of the Group has not grown compared with the prior year. There was royalty growth in the automotive and television sectors along with ongoing revenue from consulting services. However, royalties from the low-end audio product sector did not perform as well as predicted and license income (excluding the impact of the licence with Nissha Printing Company Limited in 2008/09) was less than the previous year. Royalties from television models featuring BMR slim drive units have increased in the year to 30 June 2010. The drive units are designed to fit the latest slim-form televisions and have been shipped for 10 new models during the period. Models have been announced by Insignia and Vizio in the United States. The drive units will also be used by Oneida, one of India's leading television brands, later in 2010. Automotive royalties have recovered to pre-recession levels with further interest being shown by a range of car and accessory companies. While design cycles in this sector are lengthy and resource-intensive, the potential volumes as new technology is introduced into additional product ranges are attractive. NXT has continued to review its licensing and royalty model over the past three years, and explored opportunities for a gross profit margin-generating approach to be adopted. The resulting component sales business, though still small, has demonstrated encouraging progress over the past 12 months in niche applications, and the Directors believe that it should make a significant contribution to the Company's success in the future as mainstream sectors are addressed. In March 2010, NXT purchased intellectual property relating to an ultra-efficient, low power amplifier chip, from the founders of the silicon chip start-up Audium Semiconductor Ltd. The technology is synergistic with NXT's BMR technology as every speaker needs an amplifier and both technologies are designed to offer the best in listening experience and value. In initiating the acquisition, the Board recognised the excellent strategic fit as well as the ability to leverage its BMR products into NXT's target customer base at several different value points, covering sale of components, fabricated modules and sub-solutions. This flexible end customer-oriented approach will enable the Company to gain more control over its revenue stream, its forecasting and its cash flow. Strategic Review The new CEO, James Lewis, was appointed on 1 August 2010 to bring new strategy and focus to the business. Having been involved with the business for 10 months as a Non-executive Director, Lewis has prior knowledge of the Group and an understanding of its strengths and weaknesses. Lewis has identified certain issues that were affecting operational efficiency of the business including the fragmentation of technical resources between the UK and Hong Kong offices. A fast-paced re-structuring of the business will create a decisive executive team supporting two business units - audio and display products - backed up by tightly managed sales and technical teams. The emphasis will be on building up the core development team in the UK to plan and execute on technology roadmaps for the business units. Regional offices in the USA and Far East will provide sales, technical support and administrative support for customers in those geographies, and proximity to outsourced fabrication facilities means that supply chain management and quality control functions will reside in the Hong Kong office. Addressing executive management, the Company appointed Chris Travis as Chief Technical Officer on 9 August 2010 with credentials in audio, consumer electronics and hand-held devices. Business unit managers have also been appointed for audio and haptics groups. The restructuring of the Group has resulted in a headcount reduction of 8, comprised mainly of technicians and industrial designers. The proceeds of the Issue will enable a stronger and more cohesive intellectual team to be built in the UK in line with business plans for creation of audio and haptic product families. The Directors recognise that changing relationships and influence between retail channels, product brands and original equipment manufacturers ("OEMs") over the last few years has reduced the effectiveness of the licensing/royalty model practiced by the Group to date. As a result, a transition has been commenced to a component and sub-systems model. This was initiated by the creation of a small range of BMR and Distributed Mode Loudspeaker ("DML") drivers that can be sold as components into audio systems manufacturers. During the year ended 30 June 2010, the Company has generated revenue and gross profit on sales of these components, which are manufactured by third party manufacturers to the Company's requirements. The second step of the business model transition was the opportunistic purchase of Audium semiconductor's audio amplifier technology. This novel amplifier chip is extremely power efficient relative to all other digital amplifier chips on the market today, leading to new opportunities in consumer audio products where electrical power is at a premium, such as battery-powered, USB-powered and wireless speakers. NXT was able to acquire the intellectual property, finished amplifier devices and work-in-progress for a nominal sum, and also took on three of Audium Semiconductor's employees to complete the optimisation of the device in BMR speaker applications. Focusing initially on high audio fidelity speakers that can be connected to a PC's USB port, and deliver a powerful peak audio level from the small amount of power available over USB, NXT intends to demonstrate a top-quality 'benchmark' product in early 2011. The Directors anticipate that this will lead to initial gross profit margin-generating component and sub-system sales in the second half of the financial year to 30 June 2011. It is anticipated that the same business model will be applied to the Company's haptics technology, which has thus far been licensed to early adopters. The Company has identified that there is a market for modules that enable companies to rapidly integrate, evaluate and commence production of devices utilising haptics feedback. The Directors believe that the first products in a family of platforms, that combine hardware modules with specially designed DMA or DML transducers and enabling software, are likely to be produced within the next financial year and sales are likely to commence shortly after July 2011. The CEO has initiated a programme that the Board hopes will achieve working prototypes of saleable modules by January 2011 (if not sooner) and product sales are likely to be a direct result of the focused sales effort initiated by the Company. These haptics solutions will be targeted at manufacturers of hand-held computing devices and industrial terminals. Nissha Printing has continued to invest in product development and the supply chain for NXT Bending Wave Haptics. There has been keen interest in the Company's technology for larger screens, with three companies showing haptic-enabled touch screens at Computex in Taiwan this year. Many other significant touch-screen manufacturers and users of touch screens are currently engaged with the Company. However, the technology remains relatively new in large-screen applications and demand creation is not yet at a stage of advancement that enables manufacturers to pay significant up-front licence fees. NXT has, therefore, signed several evaluation licences and development agreements to bring products to market. NXT intends to build its reputation as a brand associated with quality and value. By June 2011, the Group intends to have four revenue streams: - Component and sub-system sales - Principally focusing on quality-demanding audio market opportunities, the Directors believe that NXT's strategy for the deployment of the optimised platform of BMR speakers and the Audium amplifier device will give rise to opportunities to intersect the market at different levels. Customers seeking a short design cycle will be offered module solutions where a fully working printed circuit board and BMR speakers will be sold to customers who will design enclosures for them and assemble and sell their end-products. Alternatively, individual amplifier and BMR components will be sold to customers with in-house design capability, and who desire to functionally differentiate their products. It is likely that this category of product development will incur longer design cycles, and more support requirements. For companies able to take first-mover advantage, NXT can 'private label' its own benchmark products (i.e. have its design manufactured with customers' brand identification marked on them), and sell a complete product. The Directors anticipate that sales in the financial year to 30 June 2011 will comprise early sales of private-labelled products and initial quantities of modules to the company's first design wins. Customer feedback from the earliest technology demonstrations underlines this. A similar approach will be reviewed for haptics to explore customer entry-points with modules comprising hardware and software developed by NXT. - Licensing - The Company's previous strategy was to license its intellectual property to customers at relatively low fees to encourage such customers to sign licences with the Company and to launch products containing the Company's technology. The support demands of licensees' in training, developing and manufacturing products was substantial and there was limited return on NXT's resource investment. In recent years, NXT has sought to evaluate its licensing model to increase its revenues through higher fees and royalties. This evaluation has enabled the Group to selectively identify appropriate partners and protect their commitment to the Group by, for example, offering varying levels of operational exclusivity or advantageous financial conditions. However, in the current economic climate, where companies are less willing to pay large fees upfront and are reducing their in-house design teams, the licensing model has proved difficult to sustain. Licensing by the Company to key partners is expected to continue with a focus on partners whose sales volume prospects make the deployment of the Company's resource worthwhile. Meanwhile, the Group will make efforts to turn licensees into customers for new products that NXT is developing. - Royalties - Licensees are required to make royalty payments to the Company for each shipped product containing NXT technology. Royalty rates vary depending on the market into which the product will be sold, but traditionally high volume products yield lower royalties, while niche applications demand a premium rate. Key royalty streams for the future will be strongly supported with IP development and technical support for customers, and focus markets are expected to include Flat Panel TVs and automotive sound systems. Ongoing support for important haptics licensee Nissha Printing will be maintained as its market launch plans unfold. The Directors anticipate that royalties will be forthcoming within three years, as a result of dialogue that has taken place between Nissha Printing and the Company. - Consulting - Small amounts of consulting income for the Company will be generated by licensees requiring customisation of hardware or software to differentiate their products from competitors. In order to most effectively address these opportunities, the business will be streamlined into two business units - display applications and audio applications. These two units will be tasked and resourced to address the market opportunities presented by the Company's product-driven strategy. The latter will also continue to generate revenue from the previously operated licensing/royalty model for low-end audio products. Opportunities for projects that fall within the sub-category of low-end audio will be put under close scrutiny so that only those that can be expected to generate net profit within the unit will be embarked upon. The Company's main focus will transition to larger companies, and to those dynamic enough to create rapid impact on their target markets with NXT-enabled products. In addition to the recent appointment of a new Chief Technical Officer, the Company intends to strengthen its executive management team, which shall be led by the Chief Executive Officer, to include a Chief Commercial Officer. The intention behind such a move is to ensure that a rigorous and balanced analysis of technical and commercial strategy takes place. To enable the Company to make these changes, to grow the Company with a structured and experienced management team, and invest in new products, NXT is proposing to raise funds of a maximum of GBP8.0 million by way of a firm placing and open offer. This also addresses the Company's short-term cash position, which, whilst being carefully managed, does not allow the Company to fully exploit the technology. Financial Review Key Performance Indicators NXT plc has the following Key Performance Indicators to allow management to monitor the performance of the Group - Royalties (per cent. of total income), speaker volumes, operating costs, operating cash flows. · Royalties (per cent. of total income) The Group target was previously, that royalties account for more than 50 per cent. of Group income. In the year ended 30 June 2010 royalties accounted for 46 per cent. of total income (2009: 36 per cent.). · Speaker volumes and average royalty rates Another key performance measure for the Group is the average royalty received per speaker. NXT has different royalty rates and volume discount tables based on the field of use for the technology. In 2009 speaker volumes were at 9.1 million due to the introduction of Hallmark cards. However, Hallmark cards have not shipped as many products during the financial year to June 2010 as were shipped in the year to June 2009 and the consumer electronics market has been poor. Mitigating this decrease was the of BMR drivers in televisions. The net movement in the year was a 3 per cent. decrease in speakers sold (8.8 million). +--------------------------------------------+------------------+--------------+ | Average royalty rates | 2009 | 2010 | +--------------------------------------------+------------------+--------------+ | Speaker volumes (millions) | 9.1 million | 8.8 million | +--------------------------------------------+------------------+--------------+ | Average royalty rate | 20 cents | 15 cents | +--------------------------------------------+------------------+--------------+ · Operating costs The Group has been striving to reduce operating costs over the past three years. Operating costs excluding non-cash items were: 2008 GBP3,410,000 2009 GBP3,475,000 2010 GBP3,372,000 This excludes any non-cash items such as depreciation and amortisation and IFRS 2 Stock Option costs. In addition, restructuring costs and bad debt provisions are also removed. · Operating cashflows The lack of licensing income has significantly affected the cash outflow in the year ended 30 June 2010, resulting in GBP1.7 million of outflow offset by the proceeds from the issue of share capital of GBP1.1 million. Revenue Group revenues in the year ended 30 June 2010 of GBP1.9 million represented a GBP1.3 million decrease on the previous year, mainly attributable to the lack of licensing revenue and a downturn in the consumer electronics sector (2009: GBP3.2 million). Revenue is generated in US Dollars, Euros and Sterling. However the majority of the income is US Dollar denominated and the Group monitors its income in US Dollars. The Sterling/US Dollar exchange rate can have a significant impact on the results as illustrated by the analysis below. +-------------+--+---------+--+---------+--+--------+ | Revenue | | 2009 | | 2010 | | Change | | analysis | | | | | | % | +-------------+--+---------+--+---------+--+--------+ | | | $'000 | | $'000 | | 09-10 | +-------------+--+---------+--+---------+--+--------+ | | | | | | | | +-------------+--+---------+--+---------+--+--------+ | Royalties | | 1,795 | | 1,352 | | (24)% | +-------------+--+---------+--+---------+--+--------+ | Licences | | 3,136 | | 1,557 | | (50)% | | and | | | | | | | | consulting | | | | | | | +-------------+--+---------+--+---------+--+--------+ | Total | | 4,931 | | 2,909 | | (41)% | +-------------+--+---------+--+---------+--+--------+ | | | | | | | | +-------------+--+---------+--+---------+--+--------+ | Average | | 1.53 | | 1.57 | | | | exchange | | | | | | | | rate | | | | | | | +-------------+--+---------+--+---------+--+--------+ | | | | | | | | +-------------+--+---------+--+---------+--+--------+ | | | GBP'000 | | GBP'000 | | | +-------------+--+---------+--+---------+--+--------+ | | | | | | | | +-------------+--+---------+--+---------+--+--------+ | Royalties | | 1,152 | | 861 | | (25)% | +-------------+--+---------+--+---------+--+--------+ | Licences | | 2,071 | | 992 | | (52)% | | and | | | | | | | | consulting | | | | | | | +-------------+--+---------+--+---------+--+--------+ | Total | | 3,223 | | 1,853 | | (43)% | +-------------+--+---------+--+---------+--+--------+ Operating loss Group loss before financing costs in the year ended 30 June 2010 was GBP2.0 million, an increase of GBP1.1 million on 2009 (GBP0.9 million). This was attributable to the lack of significant licensing income of the magnitude seen in the 2009 accounts, which included an exclusive GBP1.2 million licence fee. Research and development costs Research and development costs relate to expenditure made in exploiting new technologies and enhancing old ones. Research and development costs represent a substantial part of NXT's operating cost base and are a fundamental feature of keeping the technology refreshed and relevant to the anticipated needs of the market. Research and development expenditure is expensed as incurred, unless the expenditure on research and development activities relates to a self contained project where the future cash flows have been identified, in which case it is capitalised. 2008 2009 2010 Expenditure GBP730,000 GBP512,000 GBP909,000 Loss on ordinary activities before taxation Loss on ordinary activities before taxation for the year ended 30 June 2010 was GBP2.0 million (2009: GBP0.8 million). Financial Position The continuing difficult trading environment, along with the poor performance of the traditional licensing and royalty business model has resulted in a further retained loss in the year to June 2010. The Directors have performed a review of the assets in the Group and Company balance sheets and are satisfied that there is no impairment to their value. However, the direct impact on the cash position of the Group means that cash resources are low and the Directors are operating the Group with prudent cash management. The current restructuring of the Group is aimed at ensuring that the Group could continue to operate without any further injection of funds, however this would not give the Company any opportunity to grow in its current form. The Auditors have included an Emphasis of Matter in their report, highlighting the cash position of the Group, and underlining the need for the Company to raise further funds. Subject to shareholder approval, the raising of up to GBP8.0 million will cover the shortfall in working capital, strengthen the balance sheet, and enable the Company to invest in products and employees that will give NXT the best opportunity to grow. James Lewis Kate Barnes Chief Executive Officer Chief Financial Officer Consolidated Statement of Comprehensive Income for the year ended 30 June 2010 +---------------------------------------------------+----------+-------------+ | | 2010 | 2009 | | | GBP'000 | GBP'000 | | | | (restated1) | +---------------------------------------------------+----------+-------------+ | Continuing operations | | | +---------------------------------------------------+----------+-------------+ | Revenue | 1,853 | 3,223 | +---------------------------------------------------+----------+-------------+ | Cost of goods sold | (110) | (89) | +---------------------------------------------------+----------+-------------+ | Gross profit | 1,743 | 3,134 | +---------------------------------------------------+----------+-------------+ | Operating expenses | (3,717) | (3,994) | +---------------------------------------------------+----------+-------------+ | Loss before financing income | (1,974) | (860) | +---------------------------------------------------+----------+-------------+ | Net financing (costs)/income | (2) | 23 | +---------------------------------------------------+----------+-------------+ | Loss before taxation | (1,976) | (837) | +---------------------------------------------------+----------+-------------+ | Taxation | 231 | 201 | +---------------------------------------------------+----------+-------------+ | Loss for the financial year | (1,745) | (636) | +---------------------------------------------------+----------+-------------+ | Curency translation differences | (8) | 31 | +---------------------------------------------------+----------+-------------+ | Total comprehensive income attributable to the | (1,753) | (605) | | equity holders of the Company | | | +---------------------------------------------------+----------+-------------+ | | | | +---------------------------------------------------+----------+-------------+ | Basic and fully diluted loss per share | (1.1)p | (0.4)p | +---------------------------------------------------+----------+-------------+ 1.Restated due to a change in accounting policy - see Note 1 Consolidated Balance Sheet as at 30 June 2010 +----------------------------------------+-----------+-------------+-----------+ | | 2010 | 2009 | 2008 | | | GBP'000 | GBP'000 | GBP'000 | | | | (Restated1) | | +----------------------------------------+-----------+-------------+-----------+ | Assets | | | | +----------------------------------------+-----------+-------------+-----------+ | Non-current assets | | | | +----------------------------------------+-----------+-------------+-----------+ | Property, plant and equipment | 186 | 139 | 43 | +----------------------------------------+-----------+-------------+-----------+ | Intangible assets | 470 | 278 | 301 | +----------------------------------------+-----------+-------------+-----------+ | Long-term debtors | 41 | 41 | 50 | +----------------------------------------+-----------+-------------+-----------+ | | 697 | 458 | 394 | +----------------------------------------+-----------+-------------+-----------+ | Current assets | | | | +----------------------------------------+-----------+-------------+-----------+ | Trade and other receivables | 729 | 1,032 | 1,079 | +----------------------------------------+-----------+-------------+-----------+ | Current tax recoverable | 188 | 188 | 175 | +----------------------------------------+-----------+-------------+-----------+ | Cash and cash equivalents | 167 | 599 | 945 | +----------------------------------------+-----------+-------------+-----------+ | | 1,084 | 1,819 | 2,199 | +----------------------------------------+-----------+-------------+-----------+ | Total assets | 1,781 | 2,277 | 2,593 | +----------------------------------------+-----------+-------------+-----------+ | Equity and liabilities | | | | +----------------------------------------+-----------+-------------+-----------+ | Share capital | 1,587 | 1,496 | 1,436 | +----------------------------------------+-----------+-------------+-----------+ | Deferred share capital | 22,682 | 22,682 | 22,682 | +----------------------------------------+-----------+-------------+-----------+ | Share premium account | 88,058 | 87,019 | 86,595 | +----------------------------------------+-----------+-------------+-----------+ | Other reserve | 282 | 282 | 282 | +----------------------------------------+-----------+-------------+-----------+ | Stock option reserve | 815 | 746 | 571 | +----------------------------------------+-----------+-------------+-----------+ | Accumulated deficit | (112,183) | (110,430) | (109,825) | +----------------------------------------+-----------+-------------+-----------+ | | 1,241 | 1,795 | 1,741 | +----------------------------------------+-----------+-------------+-----------+ | Current liabilities | | | | +----------------------------------------+-----------+-------------+-----------+ | Trade and other payables | 430 | 309 | 431 | +----------------------------------------+-----------+-------------+-----------+ | Borrowings | 110 | - | - | +----------------------------------------+-----------+-------------+-----------+ | Short-term provisions | - | 173 | 421 | +----------------------------------------+-----------+-------------+-----------+ | | 540 | 482 | 852 | +----------------------------------------+-----------+-------------+-----------+ | Total liabilities | 540 | 482 | 852 | +----------------------------------------+-----------+-------------+-----------+ | Total equity and liabilities | 1,781 | 2,277 | 2,593 | +----------------------------------------+-----------+-------------+-----------+ 1.Restated due to a change in accounting policy - see Note 1 Consolidated Statement of Changes in Equity as at 30 June 2010 +-----------------+----------+----------+---------+---------+---------+-------------+---------+ | | Share | Deferred | Share | Other | Stock | Accumulated | Total | | | capital | share | premium | reserve | option | deficit | | | | | capital | | | reserve | | GBP'000 | | | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | | +-----------------+----------+----------+---------+---------+---------+-------------+---------+ | At 30 June 2007 | 23,627 | - | 83,881 | 437 | 457 | (107,937) | 465 | +-----------------+----------+----------+---------+---------+---------+-------------+---------+ | Retained loss | - | - | - | - | - | (2,056) | (2,056) | | for the | | | | | | | | | financial year | | | | | | | | +-----------------+----------+----------+---------+---------+---------+-------------+---------+ | Other | - | - | - | - | - | 14 | 14 | | comprehensive | | | | | | | | | income | | | | | | | | +-----------------+----------+----------+---------+---------+---------+-------------+---------+ | Total | - | - | - | - | - | (2,042) | (2,042) | | comprehensive | | | | | | | | | income | | | | | | | | +-----------------+----------+----------+---------+---------+---------+-------------+---------+ | Capital | (22,682) | 22,682 | - | - | - | - | - | | restructure | | | | | | | | +-----------------+----------+----------+---------+---------+---------+-------------+---------+ | Issue of shares | 470 | - | 2,563 | - | - | - | 3,033 | | | | | | | | | | | (net of | | | | | | | | | expenses) | | | | | | | | +-----------------+----------+----------+---------+---------+---------+-------------+---------+ | Share based | 21 | - | 151 | (155) | - | 154 | 171 | | payment | | | | | | | | +-----------------+----------+----------+---------+---------+---------+-------------+---------+ | Fair value of | - | - | - | - | 114 | - | 114 | | stock options | | | | | | | | +-----------------+----------+----------+---------+---------+---------+-------------+---------+ | At 30 June 2008 | 1,436 | 22,682 | 86,595 | 282 | 571 | (109,825) | 1,741 | +-----------------+----------+----------+---------+---------+---------+-------------+---------+ | Retained loss | - | - | - | - | - | (636) | (636) | | for the | | | | | | | | | financial year | | | | | | | | +-----------------+----------+----------+---------+---------+---------+-------------+---------+ | Other | - | - | - | - | - | 31 | 31 | | comprehensive | | | | | | | | | income | | | | | | | | +-----------------+----------+----------+---------+---------+---------+-------------+---------+ | Total | | | | | | (605) | (605) | | comprehensive | | | | | | | | | income | | | | | | | | +-----------------+----------+----------+---------+---------+---------+-------------+---------+ | Issue of shares | 60 | - | 424 | - | - | - | 484 | | | | | | | | | | | (net of | | | | | | | | | expenses) | | | | | | | | +-----------------+----------+----------+---------+---------+---------+-------------+---------+ | Fair value of | - | - | - | - | 175 | - | 175 | | stock options | | | | | | | | +-----------------+----------+----------+---------+---------+---------+-------------+---------+ | At 30 June 2009 | 1,496 | 22,682 | 87,019 | 282 | 746 | (110,430) | 1,795 | | (restated1) | | | | | | | | +-----------------+----------+----------+---------+---------+---------+-------------+---------+ | Retained loss | - | - | - | - | - | (1,745) | (1,745) | | for the | | | | | | | | | financial year | | | | | | | | +-----------------+----------+----------+---------+---------+---------+-------------+---------+ | Other | - | - | - | - | - | (8) | (8) | | comprehensive | | | | | | | | | income | | | | | | | | +-----------------+----------+----------+---------+---------+---------+-------------+---------+ | Total | | | | | | (1,753) | (1,753) | | comprehensive | | | | | | | | | income | | | | | | | | +-----------------+----------+----------+---------+---------+---------+-------------+---------+ | Issue of shares | 91 | - | 1,039 | - | - | - | 1,130 | | | | | | | | | | | (net of | | | | | | | | | expenses) | | | | | | | | +-----------------+----------+----------+---------+---------+---------+-------------+---------+ | Fair value of | - | - | - | - | 69 | - | 69 | | stock options | | | | | | | | +-----------------+----------+----------+---------+---------+---------+-------------+---------+ | At 30 June 2010 | 1,587 | 22,682 | 88,058 | 282 | 815 | (112,183) | 1,241 | +-----------------+----------+----------+---------+---------+---------+-------------+---------+ 1.Restated due to a change in accounting policy - see Note 1 Consolidated Cashflow Statement for the year ended 30 June 2010 +---------------------------------------------------+----------+-------------+ | | 2010 | 2009 | | | GBP'000 | GBP'000 | | | | (Restated1) | +---------------------------------------------------+----------+-------------+ | Cash flows from operating activities | | | +---------------------------------------------------+----------+-------------+ | Loss before finance income | (1,974) | (860) | +---------------------------------------------------+----------+-------------+ | Adjustments for: | | | +---------------------------------------------------+----------+-------------+ | Depreciation and amortisation | 152 | 65 | +---------------------------------------------------+----------+-------------+ | Fair value of share-based payments | 69 | 175 | +---------------------------------------------------+----------+-------------+ | Foreign exchange translation | (8) | 31 | +---------------------------------------------------+----------+-------------+ | | (1,761) | (589) | +---------------------------------------------------+----------+-------------+ | Decrease in trade and other receivables | 303 | 56 | +---------------------------------------------------+----------+-------------+ | Increase / (decrease) in trade and other payables | 131 | (122) | +---------------------------------------------------+----------+-------------+ | Utilisation of provisions | (173) | (248) | +---------------------------------------------------+----------+-------------+ | Shares issued for non-cash consideration | - | 47 | +---------------------------------------------------+----------+-------------+ | Cash outflow from operations | (1,500) | (856) | +---------------------------------------------------+----------+-------------+ | Taxation received | 232 | 188 | +---------------------------------------------------+----------+-------------+ | Net cash outflow from operating activities | (1,268) | (668) | +---------------------------------------------------+----------+-------------+ | Cash flows from investing activities | | | +---------------------------------------------------+----------+-------------+ | Purchase of intangible assets | (232) | - | +---------------------------------------------------+----------+-------------+ | Purchase of property, plant and equipment | (170) | (138) | +---------------------------------------------------+----------+-------------+ | Interest received | - | 37 | +---------------------------------------------------+----------+-------------+ | Interest paid | (2) | (14) | +---------------------------------------------------+----------+-------------+ | Net cash outflow from investing activities | (404) | (115) | +---------------------------------------------------+----------+-------------+ | Cash flows from financing activities | | | +---------------------------------------------------+----------+-------------+ | Proceeds from the issue of share capital (net of | 1,130 | 437 | | issue costs) | | | +---------------------------------------------------+----------+-------------+ | Net cash inflow from financing activities | 1,130 | 437 | +---------------------------------------------------+----------+-------------+ | Net decrease in cash and cash equivalents | (542) | (346) | +---------------------------------------------------+----------+-------------+ | Cash and cash equivalents at the beginning of | 599 | 945 | | year (note A) | | | +---------------------------------------------------+----------+-------------+ | Cash and cash equivalents at the end of year | 57 | 599 | | (note A) | | | +---------------------------------------------------+----------+-------------+ Notes to the cash flow statement A Cash and cash equivalents All cash balances consist of cash on hand with banks or in a guaranteed fixed interest deposit account for a maximum of three months. The bank overdraft is included in this balance. 1.Restated due to a change in accounting policy - see Note 1 Notes to the accounts 1. Basis of preparation and statement of compliance While the financial information included in this preliminary announcement has been prepared in accordance with the measurement and recognition criteria of International Financial Reporting Standards (IFRSs), this announcement does not itself contain sufficient information to comply with IFRSs. The Company published full financial statements that comply with IFRSs on 23 September 2010. .The financial information set out above does not constitute the company's statutory accounts for the years ended 30 June 2010 or 2009, but is derived from those accounts. Statutory accounts for 2009 have been delivered to the Registrar of Companies and those for 2010 will be delivered following the company's annual general meeting. The auditors have reported on those accounts; the auditors report for June 2010 did include a reference to a matter to which the auditors drew attention by way of emphasis without qualifying their reports and did not contain statements under s498(2) or (3) Companies Act 2006. During 2010, NXT changed its accounting policy for revenue recognition. The effect in 2009 was a decrease in revenue and gross profit, and an increase in retained loss of GBP140,000. Further detail is provided in note 1 to the financial statements for the year ended 30 June 2010. 2. Going concern The Group's business activities, together with factors likely to affect its future development, performance and financial position and commentary on the Group's financial results, its cash flows, liquidity requirements and borrowing facilities are set out in the Directors' Report on pages 14 to 15 of the Annual Report and Accounts, published today. In addition notes 1 and 20 to the financial statements include the Group's objectives, policies and processes for managing its capital, its financial risk management objectives, details of its financial instruments and its exposures to liquidity risk and credit risk. The financial statements at 30 June 2010 show that the Group generated a loss from continuing operations of GBP1.75 million with a decrease in net cash and cash equivalents of GBP0.5 million. The Group balance sheet shows net assets of GBP1.3 million. Cash generated through the issue of equity in the year totalled GBP1.1 million. The main factor contributing to the decrease in revenues was the lack of new licensing activity during the period. The Board has concluded that the lack of new licenses has resulted in significant pressure on the Group's funding and operating strategy. Changes are being made to the operating and financial model, including a change in business strategy and routes to market. The Board have considered various operating and funding strategies. Operating strategies already put into practice as at September 2010 include a business reorganisation, resulting in a reduction in headcount of 26%. In addition the Group has closed a funding round consisting of a firm placing, placing and open offer announced today, which is subject to shareholder approval at the AGM, and will result in sufficient funding to enable the Group to continue as a going concern. The directors have assumed, following discussions with shareholders, that shareholder approval will be achieved. Prior to the completion of this fundraising the Group is dependent on the continuing existence of its bank overdraft facility and also certain arrangements with creditors. In the event that this facility and these arrangements are withdrawn or the fundraising fails to complete the Group would be required to substantially curtail its operations. There is a material uncertainty related to the above events which casts significant doubt on the Group's ability to continue as a going concern and, therefore, it may be unable to realise its assets and discharge its liabilities in the normal course of business. Based on the information set out above the directors believe that it is appropriate to prepare these financial statements on the going concern basis. 3. Segmental analysis The Group has adopted IFRS 8 Operating Segments with effect from 1 July 2009. IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the Chief Operating Decision Maker to allocate resources to the segments and to assess their performance. In contrast, the predecessor Standard (IAS 14 Segment Reporting) required the Group to identify two sets of segments (business and geographical), using a risks and returns approach, with the Group's system of internal financial reporting to key management personnel serving only as the starting point for the identification of such segments. There has been no change in the identification of the Group's reportable segments following the adoption of IFRS 8. NXT plc is organized internally to report to the Group's chief operating decision maker, the Chief Executive Officer on the financial and operational performance of the group as a whole. The Group's chief operating decision maker is ultimately responsible for entity-wide resource allocation decisions and evaluates the performance of the Group on a group wide basis and any elements within it on a combination of information from the executives in charge of the Group and Group financial information. As a consequence of the above factors the Group has one operating and reportable segment in accordance with IFRS 8 Operating Segments. For management purposes, the Group is currently organised into four geographical areas - United Kingdom, Hong Kong, Japan and the US. These geographical segments are the basis on which the Group reports its primary segment information. The Group's revenue originates in the UK. The customers are located in the following geographical areas: +------------------------------------------------------------+---------+------------+ | | 2010 | 2009 | | | GBP'000 | | | | | GBP'000 | | | | (restated) | +------------------------------------------------------------+---------+------------+ | UK | 44 | 77 | +------------------------------------------------------------+---------+------------+ | Rest of Europe | 223 | 169 | +------------------------------------------------------------+---------+------------+ | Asia Pacific | 1,229 | 2,676 | +------------------------------------------------------------+---------+------------+ | USA and Canada | 357 | 301 | +------------------------------------------------------------+---------+------------+ | Total revenue | 1,853 | 3,223 | +------------------------------------------------------------+---------+------------+ +----------------------------------+---------+--------+--------+--------+---------+ | 2010 GBP'000 | UK | HK | Japan | US | Total | +----------------------------------+---------+--------+--------+--------+---------+ | Revenue: | 861 | - | - | - | 861 | | Royalties | | | | | | +----------------------------------+---------+--------+--------+--------+---------+ | Licences and other | 992 | - | - | - | 992 | +----------------------------------+---------+--------+--------+--------+---------+ | Costs | (2,402) | (867) | (178) | (380) | (3,827) | +----------------------------------+---------+--------+--------+--------+---------+ | Loss | (549) | (867) | (178) | (380) | (1,974) | +----------------------------------+---------+--------+--------+--------+---------+ | Net financing income | | | | | (2) | +----------------------------------+---------+--------+--------+--------+---------+ | Loss before tax | | | | | (1,976) | +----------------------------------+---------+--------+--------+--------+---------+ | Tax | | | | | 231 | +----------------------------------+---------+--------+--------+--------+---------+ | Loss for the year attributable | | | | | (1,745) | | to equity shareholders | | | | | | +----------------------------------+---------+--------+--------+--------+---------+ | Depreciation and amortisation | 127 | 13 | - | 12 | 152 | +----------------------------------+---------+--------+--------+--------+---------+ | Non-current assets | 664 | 24 | - | 9 | 697 | +----------------------------------+---------+--------+--------+--------+---------+ | Current assets | 925 | 135 | 10 | 14 | 1,084 | +----------------------------------+---------+--------+--------+--------+---------+ | Liabilities | 490 | 43 | - | 7 | 540 | +----------------------------------+---------+--------+--------+--------+---------+ +----------------------------------+---------+--------+--------+--------+---------+ | 2009 GBP'000 (restated) | UK | HK | Japan | US | Total | +----------------------------------+---------+--------+--------+--------+---------+ | Revenue: | 1,152 | - | - | - | 1,152 | | Royalties | | | | | | +----------------------------------+---------+--------+--------+--------+---------+ | Licences and other | 2,071 | - | - | - | 2,071 | +----------------------------------+---------+--------+--------+--------+---------+ | Costs | (3,112) | (632) | (177) | (162) | (4,083) | +----------------------------------+---------+--------+--------+--------+---------+ | Loss | 111 | (632) | (177) | (162) | (860) | +----------------------------------+---------+--------+--------+--------+---------+ | Interest income | | | | | 23 | +----------------------------------+---------+--------+--------+--------+---------+ | Loss before tax | | | | | (837) | +----------------------------------+---------+--------+--------+--------+---------+ | Tax | | | | | 201 | +----------------------------------+---------+--------+--------+--------+---------+ | Loss for the year attributable | | | | | (636) | | to equity shareholders | | | | | | +----------------------------------+---------+--------+--------+--------+---------+ | Depreciation and amortisation | 29 | 22 | - | 14 | 65 | +----------------------------------+---------+--------+--------+--------+---------+ | Non-current assets | 424 | 34 | - | - | 458 | +----------------------------------+---------+--------+--------+--------+---------+ | Current assets | 1,738 | 44 | 14 | 23 | 1,819 | +----------------------------------+---------+--------+--------+--------+---------+ | Liabilities | 467 | 5 | - | 10 | 482 | +----------------------------------+---------+--------+--------+--------+---------+ The results above exclude management recharges. Included within the above are revenues of approximately GBP300,000 (2009: GBP1,437,000) which arose from sales to the Group's largest customer. 4. Loss per share and underlying loss reconciliation Basic and fully diluted loss per share has been calculated on the Group's loss attributable to shareholders of GBP1,745,000 (2009 restated - GBP636,000) and on the weighted average number of ordinary shares in issue during the financial year (excluding deferred shares), which was 153,111,433 (2009 - 145,566,920). Whilst unexercised share options and warrants in the Company would increase the weighted average number of potential shares in the year, due to the losses of the Group they are not considered to be dilutive. 5. Post Balance Sheet Events The Company will announce today a firm placing, placing and open offer fundraising, to raise up to GBP8.0 million before expenses. This is subject to shareholder approval at the Annual general Meeting on 18 October 2010. 6. Availability of Annual Report and Accounts NXT will only be sending hard copies of these Financial Statements to individual shareholders who have requested them. Otherwise, they will be available on the Company's website, www.nxtsound.com. However, if you would like to receive a hard copy, please put your request in writing to NXT plc, Regus House, 1010 Cambourne Business Park, Cambourne, Cambridgeshire, CB23 6DP. This information is provided by RNS The company news service from the London Stock Exchange END FR LTMMTMBATTJM
1 Year NXT Chart |
1 Month NXT Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions