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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Pressfit | LSE:PFIT | London | Ordinary Share | GB00B09JC675 | ORD 0.25P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 2.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMPFIT
RNS Number : 9293S
Pressfit Holdings PLC
30 September 2014
30 September 2014
Pressfit Holdings plc
("Pressfit Holdings" or "the Company")
Interim Results for the Six Months Ended 30 June 2014
Pressfit Holdings plc (AIM: PFIT), a manufacturer and distributor of stainless and carbon steel pipe connectors, is pleased to announce its interim results for the six months ended 30 June 2014.
HIGHLIGHTS:
- Revenue for the first half of 2014 grew to GBP400,000, when compared with GBP88,000 for the same period in 2013.
- Gross profit for the period was GBP134,000, representing a gross profit margin of 34%.
- Loss before income tax for the period was GBP259,000, of which GBP187,000 was AIM admission related costs.
- On 1 August 2014, the Company's ordinary shares were admitted to trading on the AIM market of the London Stock Exchange, fulfilling a long stated objective of the Company.
- GBP527,850 raised at and in the months before admission to AIM.
- Following on from its admission to AIM and with undertakings to place purchase orders from the AMCO Group, the Company plans to continue growing its revenue, add additional products and expand its sales channels.
Commenting on today's interim results, Derek Marsh, Independent Non-Executive Chairman of Pressfit Holdings, said: "I am pleased to see the improved operational performance of Pressfit Holdings for the first six months of 2014 and the subsequent successful admission to trading on AIM. The Company has strengthened its balance sheet via equity financing and has a higher public profile. The Board plans to continue its efforts to increase revenues, attain profitability and add shareholder value in the years to come."
Copies of the interim results will be available to view and download from the Company's website: www.pressfitholdings.com
Enquiries:
Pressfit Holdings plc Chiu Yung Kit (Henry Chiu) +852 2207 0235 Daniel Stewart & Company Plc (Nominated Adviser) Paul Shackleton / Alex Brearley +44 (0) 207 776 6550 Daniel Stewart & Company Plc (Broker) Martin Lampshire +44 (0) 207 776 6550 First City Public Relations Allan Piper +852 2854 2666
About Pressfit Holdings Plc.
Pressfit Holdings is engaged in the manufacture and distribution of stainless and carbon steel pressfittings for use within industrial and residential piping systems. Pressfitting is a method of mechanically joining metal pipes to a connector, to create a reliable sealed joint. Pressfit Holdings, through its wholly-owned subsidiaries (collectively the "Group"), uses bespoke tooling to manufacture high-precision, thin-walled pipe connectors for supply to the European, Asian and Chinese markets. The Group's management and sales functions operate from Hong Kong. The Group's manufacturing unit is a production line facility in nearby Zhuhai, within Guangdong province in China.
Chairman's Statement
Following the arrival of Pressfit Holdings on AIM just seven weeks ago, I am pleased to present the Company's unaudited, maiden interim results for the six-month period ending 30 June 2014, on behalf of the Board.
As our existing shareholders are aware, Pressfit Holdings develops, manufactures and distributes bespoke stainless and carbon steel pipe connectors which mechanically join metal pipes to create reliable, sealed press-fitted joints for industrial and residential piping systems, without the need for welding.
Over the four years ahead of its arrival on AIM on 1 August 2014, the Company worked towards developing products aimed at markets in Europe, China and Asia, and succeeded in obtaining the regulatory certifications which allow it to distribute its products in the United Kingdom, North America, China and Hong Kong.
The on-going product development costs and limited early market share developed by the Company at the time of its AIM admission were reflected in the financial statements published in the Company's Admission Document. These showed, among other things, that revenues for the year ended 31 December 2013 were just GBP142,000, relative to a global pipe and pipe/hose fittings market which was, in 2012, predicted to reach US$152 billion (approx. GBP93 billion) by 2017.
So it is pleasing to announce today that during the six months to 30 June 2014, a period ending just one month ahead of Pressfit Holdings' arrival on AIM, our sales increased solidly, reflecting the extent to which our work to capture new customers is fuelling solid early growth.
Revenue for the six months to 30 June 2014 climbed strongly 355% to GBP400,000 (six months to 30 June 2013: GBP88,000), an encouraging increase, driven by stronger demand from the UK and Singapore as well as from the initiation of sales connected with the undertakings to place purchase orders from the AMCO Group. We believe that this provides an early indication of the market opportunities ahead as the Company continues to develop its product and sales strategy.
Although the Company is also reporting an increase in post-tax losses to GBP259,000 (six months to 30 June 2013: GBP126,000), 75% of the loss was attributable to AIM admission related advisory, regulatory and other associated fees during the run up to the Company's AIM Admission.
Since admission to AIM, trading volumes in Pressfit Holdings' ordinary shares have been modest, with the Company's share price remaining close to the Introduction price of 9.5p. To a great extent this reflects the Board's deliberate decision to complete a low-key admission without a major fundraising attached.
The reasoning behind this approach was to assist the Company with establishing a firm international identity and a strong brand to underpin its reputation as it expands into its key target markets in Europe, North America, Australia, Singapore and China. We decided at the same time to only raise GBP50,000 from new shareholders upon admission to AIM, which was offset against part of the costs of the flotation.
As at 30 June 2014, the Company showed cash reserves of GBP330,000 (30 June 2013: GBP4,000), with relatively strong inventory and trade receivables of GBP392,000 (30 June 2013: GBP350,000). Although the level of current and long-term liabilities results in net liabilities of GBP855,000, that represents an improvement in the net liabilities of the Company from twelve months earlier (30 June 2013: GBP986,000). After the conversion of a convertible loan note and the subscription of new ordinary shares by new investors before and at AIM admission, the capital deficit was reduced by GBP527,850.
With this overall foundation for further development in place, the Board has remained sharply focussed on implementing the three-pronged sales strategy detailed in the Company's Admission Document. Firstly, we are building sales and sales leads from direct end users in a wide range of industrial sectors, including construction and boat-building, as well as water and gas.
Secondly, the Company is developing its own-brand sales using the brand name 'J-Press' in China, and 'Pressfit' elsewhere. Thirdly, the Company is positioning itself as an Original Equipment Manufacturer (OEM) for large clients that resell our products under their own brand names. Chief among these is the AMCO Group, an international group of companies which are connected or associated with Mr Eric Ng, an indirect major shareholder in and Director of the Company.
Against that encouraging background, I should like to close with a personal observation that whilst AIM has seen its share of disappointments involving Chinese companies, Pressfit Holding's Board is thoroughly committed to the high standards of corporate governance and regulatory compliance, befitting its status as an innovative manufacturing business targeting a global market. This is underscored in no small part by the fact that our Chief Executive Officer, Henry Chiu, previously worked at a senior level with the London Stock Exchange in Hong Kong. Additionally, I have acted in a Non-Executive capacity on the boards of several AIM-quoted Chinese companies.
I referred above to our deliberately quiet arrival on AIM, but as our sales develop further we intend to provide regular update announcements to the market, tracking the Company's development. Such announcements may be forthcoming in the months ahead.
Finally, I must also thank the principal advisers who assisted us and provided crucial support in the months leading up to our arrival on AIM, including Daniel Stewart & Company plc, Jeffreys Henry LLP, and King & Wood Mallesons LLP. All worked diligently over a long period to achieve this key step forward and the Company is grateful for their efforts.
In summary, it is pleasing to announce maiden interim figures which show strong sales growth, with a bottom line, which we believe, when stripped of our AIM Admission costs, indicates the potential for Pressfit Holdings to achieve profitability. The Company continues to work to increase revenues, sales leads and new client interest, particularly with its partner companies and distributors. Our work to penetrate new markets as far flung as the United States, Europe and Australia also continues. I am confident that shareholders can expect Pressfit Holdings to continue its sales growth in the months ahead, on the road to becoming a more established international supplier.
Consolidated Statement of Comprehensive Income for the six months ended 30 June 2014
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Note 6 months ended 6 months ended Year ended
30 June 2014 30 June 2013 31 December
(Unaudited) (Unaudited) 2013 (Audited)
GBP'000 GBP'000 GBP'000
Revenue 400 88 142
Cost of sales (266) (39) (344)
Gross profit (loss) 134 49 (202)
Other revenue 1 - 3
Administrative expenses (340) (162) (367)
---------------------------------------------- --------------- --------------- ----------------
* costs for AIM admission (187) - (60)
* other administrative expenses (153) (162) (307)
---------------------------------------------- --------------- --------------- ----------------
Operating loss (205) (113) (566)
Finance costs (54) (33) (77)
Loss before income
tax (259) (146) (643)
Income tax expense - - 1
Loss for the period
/ year (259) (146) (642)
Other comprehensive
income
Exchange difference
of foreign operations 9 20 21
Total comprehensive
expense for the period
/ year (250) (126) (621)
Total comprehensive
expense attributable
to:
Owners of the Company (259) (126) (621)
Loss per share
Basic and diluted
(p) 4 (0.6) (0.4) (1.8)
Consolidated Statement of Financial Position as at 30 June 2014
Note At 30 June 30 June 2013 31 December
2014 2013
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
ASSETS AND LIABILITIES
Non-current assets
Property, plant and
equipment 292 329 300
Intangible assets 1 1 1
293 330 301
Current assets
Inventories 208 286 213
Trade and other receivables 392 350 185
Cash and cash equivalents 330 4 624
930 640 1,022
Current liabilities
Trade and other payables 325 1,789 180
Bank borrowing 23 11 347
Convertible notes 5 95 95 95
443 1,895 622
Net current assets
(liabilities) 487 (1,255) 400
Non-current liabilities
Bank borrowing 36 61 50
Convertible notes 5 289 - -
Long term loans 1,310 - 1,256
1,635 61 1,306
Net liabilities (855) (986) (605)
(
----------------------------- ----- -------------- -------------- ------------
EQUITY
Capital and reserves
Share capital 113 78 113
Share premium 1,220 379 1,220
Reserves (2,188) (1,443) (1,938)
Capital deficiency (855) (986) (605)
Consolidated Statement of Cash Flows for the six months ended 30 June 2014
6 months ended 6 months ended Year ended
30 June 2014 30 June 2013 31 December
(Unaudited) (Unaudited) 2013
(Audited)
GBP'000 GBP'000 GBP'000
Cash flows from
operating activities
Loss before income
tax (259) (146) (643)
Adjustments for:
Interest expense 54 33 77
Depreciation of owned
assets 32 27 42
Currency translation
adjustment (27) (13) (31)
Operating cash flows
before changes in
working capital (200) (99) (555)
Inventories (1) (148) (73)
Trade and other receivables (208) 12 183
Trade and other payables 187 219 (181)
Cash (used in)/generated
from operations (222) (16) (626)
Income tax paid (8) - -
Interest paid (4) - (9)
Net cash(used in)/
generated from operating
activities (234) (16) (635)
Cash flows from
investing activities
Purchase of property,
plant and equipment (40) (29) (12)
Net cash used in investing
activities (40) (29) (12)
Cash flows from financial
activities
Proceeds from issue
of shares - - 876
Proceeds from convertible 289 - -
notes
Proceeds from bank
borrowing - 49 400
Repayment of bank
borrowing (327) (5) (15)
Net cash (used in)/generated
from financing activities (38) 44 1,261
Net (decrease) increase
in cash and cash equivalents (312) (1) 614
Opening cash and cash equivalents 624 5 5
Effect of foreign exchange
rate changes 18 - 5
---------------------------------------- ----------------- --------------- -------------
Cash and cash equivalents
at end of period / year 330 4 624
Consolidated Statement of Changes in equity for the six months ended 30 June 2014
Share Share Merger Exchange Accumulated
capital premium reserve reserve losses Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 January
2013 78 379 (49) 61 (1,329) (860)
Loss for the period - - - - (146) (146)
Other comprehensive
income:
Exchange differences
on translating
foreign operations - - - 20 - 20
Total comprehensive
income for the
period - - - 20 (146) (126)
Balance at 30
June 2013 78 379 (49) 81 (1,475) (986)
Transactions with shareholders
Allotment of shares 35 841 - - - 876
----------------------- --------- --------- --------- --------- ------------- ----------
Loss for the period - - - - (496) (496)
Other comprehensive
income:
Exchange differences
on translating
foreign operations - - - 1 - 1
----------------------- --------- --------- --------- --------- ------------- ----------
Total comprehensive
income for the
period - - - 1 (496) (495)
Balance at 31
December 2013 113 1,220 (49) 82 (1,971) (605)
----------------------- --------- --------- --------- --------- ------------- ----------
Loss for the period - - - - (259) (259)
Other comprehensive
income:
Exchange differences
on translating
foreign operations - - - 9 - 9
----------------------- --------- --------- --------- --------- ------------- ----------
Total comprehensive
income for the
period - - - 9 (259) (250)
----------------------- --------- --------- --------- --------- ------------- ----------
Balance at 30
June 2014 113 1,220 (49) 91 (2,230) (855)
Notes to the financial statements for the six months ended 30 June 2014:
1. GENERAL INFORMATION
Pressfit Holdings Plc (the "Company") is incorporated in the United Kingdom (the "UK"). The registered office of the Company is Finsgate, 5-7 Cranwood Street London EC1V 9EE. The address of the principal place of businessof the Company is No. 36, Fengshou Road, Pingsha Town, Jinwan Zone, Zhuhai, Guangdong, China 519055.
The principal activity of the Company is investment holding and the principal activities of the subsidiaries are manufacturing and trading of thin-walled pipe fittings. On 1 August 2014, the Company's shares were admitted to trading on AIM.
2. BASIS OF PREPARATION
These interim unaudited financial statements are for the six month period ended 30 June 2014. They do not include all the information required for full annual financial statements and should be read in conjunction with the audited consolidated financial statements of the Group for the year ended 31 December 2013 which were prepared in accordance withIFRSs, a collective term that includes all applicable individual International Financial Reporting Standards, International Accounting Standards and Interpretations issued by the International Accounting Standard Board ("IASB") and the International Financial Reporting Interpretation Committee ("IFRIC").
These interim financial statements have been prepared in accordance with accounting policies consistent with the audited financial statements for the year ended 31 December 2013. The Group has also adopted all of the new and revised IFRSs that were relevant to its operations and effective for accounting periods beginning on or after 1 January 2014.
The Group has not early adopted the new/revised IFRSs that have been issued but are not yet effective. The Board of the Company anticipate that the application of these new/revised IFRSs will have no material impact on the results and financial position of the Group.
These interim financial statements have been prepared under the historical cost convention and the presentational currency is Pound Sterling.
3. GOING CONCERN
The Group reports a loss of GBP259,000 and capital deficiency of GBP855,000. After making enquiries the directors consider that the Group has adequate resources and loans, including convertible and commercial, from long term investors to continue in operational existence for the foreseeable future.
The Group is fully engaged in sales efforts and there are strong new and recurring demands for affordable European standard press fittings in the market. The Group entered into a partnership agreement with the AMCO Group (as defined in the Company's admission document dated 28 July 2014) on 15 November 2013 under which AMCO Group undertook to place purchase orders representing a minimum of GBP300,000 in 2013 and GBP1,500,000 in 2014. This agreement was supplemented by a supplementary agreement dated 15 April 2014 whereby AMCO Group undertook to provide guaranteed sales to the Group in the amount of at least GBP1.8 million for the calendar year 2014 and GBP1.5 million for the year ended 31 December 2015.
In addition to the new share capital issued after 30 June 2014 as detailed in note 6 that significantly reduced the capital deficiency situation of the Group, given the undertakings from the AMCO Group and potential additional financing options as a result of more marketing and financing initiatives in Europe, particularly when the Company's shares have been admitted to trading on the AIM market on 1 August 2014, the directors are confident of the Group's future sales and its operations as a going concern.
4. LOSS PER SHARE
Loss per share is calculated by dividing the profit attributable to owners of the Company by the weighted average number of ordinary shares as follows:
6 months ended 6 months ended Year ended
30 June 2014 30 June 2013 31 December
(Unaudited) (Unaudited) 2013
(Audited)
No. of shares No. of shares No. of shares
Issued ordinary
shares at start
of period / year 45,349,083 31,099,787 31,099,787
Shares issued during
the period / year - - 14,249,296
-------------------------- --------------- --------------- --------------
Issued ordinary
shares at end of
period / year 45,349,083 31,099,787 45,349,083
Weighted average
number of shares
issue during the
period / year 45,349,083 31,099,787 34,964,665
-------------------------- --------------- --------------- --------------
6 months ended 6 months ended Year ended
30 June 2014 30 June 2013 31 December
(Unaudited) (Unaudited) 2013
(Audited)
GBP'000 GBP'000 GBP'000
Loss for the period
/ year (259) (146) (642)
-------------------------- --------------- --------------- --------------
6 months ended 6 months ended Year ended
30 June 2014 30 June 2013 31 December
(Unaudited) (Unaudited) 2013
(Audited)
p p p
Basic and diluted
loss per share (0.6) (0.4) (1.8)
-------------------------- --------------- --------------- --------------
There is no difference in basic and diluted loss per shares as the effective of convertible notes and convertible loans of the Company is anti-dilutive.
5. CONVERTIBLE NOTES
In addition to the convertible notes issued previously, on 27 May 2014, the Company issued 3% interest convertible notes of GBP289,388 (the "New Convertible Loan Notes") to an arm's length third party investor. The investor is entitled to convert the New Convertible Loan Notes into 2,929,028 new ordinary shares at a conversion price of GBP0.0988 per share at any time from six months after the issue to the maturity date on 26 May 2016. Please see note 6(b) below for details of the conversion of the New Convertible Loan Notes.
6. SUBSEQUENT EVENTS
(a) On 18 June 2014, AMCO Engineering (HK) Company Limited, a related party to the Company, provided to the Group a credit facility up to 25 December 2015 of GBP100,000, of which GBP50,000 was drawn down on 2 July 2014. The credit facility carries an annual interest of 8 per cent which is payable every six months.
(b) On 15 July 2014, the Company's issued capital was increased by GBP477,850 and 5,030,000 new ordinary shares were issued at a price of GBP0.095 per share, arising from the exercise of the GBP289,388 New Convertible Loan Notes as set out in note 5 and the issuance of new ordinary shares to raise GBP188,462 via a subscription.
(c) On 1 August 2014, a further 526,316 new ordinary shares were issued at a price of GBP0.095 per share to investors via a subscription.
(d) On 1 August 2014, the Company's ordinary shares were admitted to the AIM Market of the London Stock Exchange.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR QKCDNFBKDDCB
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