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 |
---|---|---|---|---|---|
Retec | LSE:RET | London | Ordinary Share | GB00B05KXB62 | ORD 0.5P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.35 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
25 February 2008 RETEC DIGITAL PLC ("Retec" or "the Company") Interim results for the six month period to 31 December 2007 Retec Digital Plc ("Retec" or the "Company"), the Guided Selling specialist, is pleased to announce its interim results for the 6 months to 31 December 2007. Retec has made significant progress in developing its business during the period, with strong revenue growth based on demonstrated success with both new and existing customers and products. Highlights: * Turnover up 166% to £3.5m (2007: £1.3m) * Trading losses after tax more than halved to £322,000 (2007: £699,000). * Loss per share reduced by 61% to 0.26p (2007: 0.67p). * The number of Entertainment Xtra stores has increased to 187 Sainsbury's stores and 49 Tesco stores around the UK, and a new trial is under way with ASDA. * Delivered over 2,500 Retec units to stores during the period, including for Alliance Boots Advantage Card and Argos. * New trials are under way for Retec's Electrical product selector in Tesco. Chairman, Sir Brian Ivory stated: "The Board continues to look to develop the business substantially both through organic growth and via acquisition. Our focus remains on developing our offering in the retail sector, both with the retailers themselves and with manufacturers. Retec intends to continue expanding upon the contracts already in place, and to work closely with its business partners, in developing new prospects. As a result of the progress made in the first six months of the financial year, and the clear opportunities which now exist for Retec, the Board looks to the future with confidence." For further information please contact: Retec Digital PLC 01455 222260 John Cole, Chief Executive Charles McKay, Finance Director Hogarth Partnership Ltd 020 7357 9477 Fiona Noblet / Ian Payne Charles Stanley Securities (Nominated Adviser) Mark Taylor / Henry Fitzgerald O'Connor 020 7149 6000 CHAIRMAN'S STATEMENT I am pleased to be able to report on a record half year result for Retec. Retec has made further significant progress in developing its business during the period and is approaching profitability before the effects of amortisation are taken into account. Financial review The results for the period are shown in summary below. Restated £'000 Six months ended Six months ended 31 December 2007 31 December 2006 (Unaudited) (Unaudited) Change Turnover 3,544 1,332 +166% Gross profit 814 139 +485% Operating loss (292) (461) -37% Loss after tax (322) (699) -54% Earnings per share - Basic and fully (0.26)p (0.67)p -61% diluted Turnover was £3,544,000 which compares with three and a half months trading in the prior year following the acquisition of Retec Interface Limited in September 2006. Gross profit was £814,000 (2006: £139,000) and the loss after taxation was £322,000 (2006: £699,000). This growth is mainly due to the continued roll-out of Entertainment Xtra and, via IBM UK Limited, work from Alliance Boots and Argos. The basic loss per share per share was 0.26 pence (2006: 0.67 pence). Cash flow has been maintained whilst this rapid growth has taken place with cash generated from operating activities of £597,000 (2006: £122,000). At 31 December 2007, Retec had cash balances of £1.04 million (2006: £0.82 million). Our balance sheet remains strong and we have been able to invest in new product development, and in sales and marketing efforts targeted towards our key accounts, the fruits of which we should begin to see in 2008. The Directors are not recommending the payment of an interim dividend at this stage. Operational review We continue to make strides in enlarging our unique offering to the large retail groups within the UK. Customers won during the period include ASDA and Porto Media, and we built significantly on our relationships with existing blue chip customers such as Tesco, Sainsbury's, and in conjunction with IBM UK Limited, Alliance Boots and Argos. In total, we delivered over 2,500 Retec units to stores during the period. Our Entertainment Xtra offering has been enhanced, with an upgrade of our software platform that allows us greater flexibility in managing our estates and we will shortly be deploying a new selector (Entertainment II) giving the consumer more choice at the point of sale. Through our work with Porto Media we are developing a methodology to download entertainment in-store. The development of two new products, our Wine Selector and Electrical Goods Selector, made further excellent progress during the period. These two products, both of which incorporate Retec's guided selling proposition, are either in trial or coming to trial in a number of key customers' stores, including Tesco and ASDA. We believe this is just the beginning of the range of Product Selectors that we will soon be able to offer retailers to engage customers and increase sales. We received a further substantial order from Argos during the period, to increase the roll out of self-service terminals across 400 of its stores. These kiosks allow customers to select and pay for products, saving time and negating the need to queue, and thereby enhancing the in-store experience for Argos customers. The work for Alliance Boots was completed in the period taking the total number of units to 1,340 which are deployed across 500 stores. We expect further changes to be made to this unit as more features are brought into the application. We are now in a position to capitalise on the hard work of the last two years, during which time we have gained significant traction with a number of the largest retailers in the UK. These customers' demand for our products and services is increasing as they see the value of them, and we are also seeing a notable increase in demand from our partners with the addition of NCR Corporation since the end of June 2007. I would like to thank all our employees for their contribution to these record half year results. Current trading and prospects The Board continues to look to develop the business substantially both through organic growth and via acquisition. Our focus remains on developing our offering in the retail sector, both with the retailers themselves and with manufacturers. Retec intends to continue expanding upon the contracts already in place, and to work closely with its business partners, in developing new prospects. As a result of the progress made in the first six months of the financial year, and the clear opportunities which now exist for Retec, the Board looks to the future with confidence. Sir Brian Ivory Chairman 25 February 2008 CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE SIX MONTHS ENDED 31 DECEMBER 2007 Restated Six months Six months Year ended ended ended 31 December 31 December 30 June 2007 2007 2006 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Turnover 3,544 1,332 4,069 Cost of sales (2,617) (1,064) (2,820) Amortisation of intangibles (113) (129) (258) ------------ ------------ ------------ Gross profit 814 139 991 Administrative expenses (1,040) (520) (1,673) Amortisation of intangibles (47) (74) (148) Share based payments (19) (6) (23) ------------ ----------- ------------ Operating loss (292) (461) (853) Net interest receivable - 18 10 ------------ ----------- ------------ LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (292) (443) (843) Taxation on ordinary activities (30) (256) (153) ------------ ----------- ------------ LOSS ON ORDINARY ACTIVITIES AFTER TAXATION (322) (699) (996) ====== ====== ====== Basic loss per share (0.26p) (0.67p) (0.87p) ====== ======= ====== CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2007 Restated As at As at As at 31 December 31 December 30 June 2007 2007 2006 Note (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 ASSETS Non- current assets Intangible assets 2,789 2,957 2,816 Tangible assets 2,019 1,685 1,963 Deferred tax 508 443 524 ------------ ------------ ------------ 5,316 5,085 5,303 ------------ ------------ ------------ Current assets Inventories 190 184 130 Trade and other receivables 777 1,236 959 Current tax assets 10 - 50 Cash at bank and in hand 1,037 820 1,044 ------------ ------------ ------------ 2,014 2,240 2,183 ------------ ------------ ------------ Total assets 7,330 7,325 7,486 ====== ====== ====== EQUITY Capital and reserves attributable to the Company's equity shareholders Called up share capital 5 1,801 1,801 1,801 Share premium account 3,230 3,230 3,230 Retained earnings (2,210) (1,603) (1,907) ------------ ------------ ------------ Total equity 2,821 3,428 3,124 ------------ ------------ ------------ LIABILITIES Non-current liabilities Borrowings 1,060 1,111 1,174 Current liabilities Financial liabilities 150 150 150 Trade and other payables 3,299 2,636 3,038 ------------ ------------ ------------ 3,449 2,786 3,188 ------------ ------------ ------------ Total liabilities 4,509 3,897 4,362 ------------ ------------ ------------ Total equity and liabilities 7,330 7,325 7,486 ====== ====== ====== CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE SIX MONTHS ENDED 31 DECEMBER 2007 Share Capital Share Premium Retained Earnings Total £'000 £'000 £'000 £'000 Balance at 31 December 2006 as previously stated 1,801 3,191 (1,226) 3,766 Prior year adjustment - 39 (377) (338) - adoption of IFRS -------------- ----------------- ----------------- --------------- At 31 December 2006 as 1,801 3,230 (1,603) 3,428 restated Loss for the six - - (327) (327) months to 30 June 2007 Share based payments - - 23 23 -------------- ----------------- ----------------- ----------------- Balance at 30 June 1,801 3,230 (1,907) 3,124 2007 Loss for the period - - (322) (322) Share based payments - - 19 19 -------------- ----------------- ----------------- ----------------- Balance at 31 December 1,801 3,230 (2,210) 2,821 2007 ====== ====== ====== ====== CONSOLIDATED CASH FLOW STATEMENT AT 31 DECEMBER 2007 Restated Six months Six months Year ended ended ended 31 December 31 December 30 June 2007 2007 2006 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Cash generated from operations Loss for the period (322) (699) (996) Adjustments for: Tax charge 30 256 153 Net interest receivable - (18) (10) Depreciation and amortisation 680 403 954 Share option charge 19 6 23 Increase in stock (60) (86) (32) Decrease in trade and other 245 771 964 receivables Decrease in trade and other payables (23) (511) (357) ------------- ------------- ------------- Cash inflow from operations 569 122 699 Tax refunded 28 - 9 ------------- ------------- ------------- Net cash inflow from operating 597 122 708 activities ------------- ------------- ------------- Cash flows from investing activities Acquisition of subsidiary - (206) (206) Net overdrafts acquired with - (82) (82) subsidiaries Purchases of property, plant and (15) (24) (48) equipment Purchases of intangible assets (133) - (62) Interest received - 18 15 Interest paid - - (5) ------------ ------------- ------------- Net cash used in investing (148) (294) (388) activities ------------ ------------- ------------ Cash flows from financing activities Issue of shares (net of issue costs) - 1,018 1,018 Finance lease repayments (456) (131) (399) ------------ ------------- ------------- Net cash used in financing (456) 887 619 activities ------------ ------------- ------------- Net (decrease)/increase in cash and (7) 715 939 cash equivalents Cash and cash equivalents at 1,044 105 105 beginning of period ------------- ------------- ------------- Cash and cash equivalents at end of 1,037 820 1,044 period ====== ====== ======= NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2007 1. ACCOUNTING POLICIES Basis of preparation The interim consolidated financial statements are for the six months ended 31 December 2007. These interim financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting and are covered by IFRS 1, First-time Adoption of IFRS, as these are the first interim financial statements prepared by the Group under IFRS. These interim financial statements have been prepared in accordance with those IFRS standards and IFRIC interpretations issued and effective as at the time of preparing these statements. The IFRS standards and IFRIC interpretations that will be applicable at 30 June 2008, including those that will be available on an optional basis, are not known with certainty at the time of preparing these interim financial statements. The policies set out below have been consistently applied to all the years presented. The Retec Digital Plc interim financial statements were prepared in accordance with UK Generally Accepted Accounting Principles (UK GAAP) until 31 December 2006. UK GAAP differs in some areas from IFRS. In preparing the financial statements, the directors have amended certain accounting methods applied in the UK GAAP financial statements to comply with IFRS. Reconciliations and descriptions of the effect of the transition from UK GAAP to IFRS on the Group's equity and its net income and cash flows are provided in note 4. The Group's transition date is 1 July 2005 and it prepared its opening IFRS balance sheet at that date. The Group's IFRS adoption date is 1 July 2006. The interim financial statements have been prepared under the historical cost convention. The information set out in this interim for the six months to 31 December 2007 does not comprise statutory accounts within the meaning of Section 240 of The Companies Act 1985. The statutory accounts for the year ended 30 June 2007 incorporating an unqualified auditors' report have been filed with the Registrar of Companies. Inventories Inventories are stated at the lower of cost incurred in bringing each product to its present location and condition and net realisable value. Net realisable value is based on estimated selling price less any further costs expected to be incurred to completion and disposal. Consolidated accounts The consolidated accounts of the Group incorporate the assets and liabilities of the Company and its subsidiary undertakings and the results for the period when they were part of the Group. Results of the subsidiary companies acquired during the period are included from the date of acquisition. 2. LOSS ON ORDINARY ACTIVITIES AFTER TAXATION The calculation of earnings per share is based on the loss on ordinary activities after taxation and 125,709,141 (2006: 104,033,058) ordinary shares being the weighted average number of shares in issue during the half year. The weighted average number of shares in issue during the twelve months ended 30 June 2007 was 114,824,974. Although there are options and warrants in existence, they are not dilutive and therefore the fully diluted earnings per share is unaffected. 3. DIVIDENDS The Directors are unable to declare an interim dividend for the period due to the deficit on the parent Company's profit and loss reserve. 4. IFRS ADJUSTMENTS As stated in note 1, the Directors have identified the following adjustments to the financial statements that are required to comply with IFRS. Adjustments to the income statements Six months to 31 December 2006 £'000 Loss for the period as previously (299) stated in the interim report Amortisation of separately identifiable intangibles recognised on the acquisition of (203) subsidiaries Deferred tax on intangibles recognised (256) Goodwill amortisation under UK GAAP 59 previously recognised --------------- Restated loss for the year (699) ======= Adjustments to Retained Earnings At 31 December 2006 £'000 As previously stated in the interim (1,226) report Amortisation of intangibles (203) Deferred tax (256) Goodwill amortised 59 Fair value adjustment 23 -------------------- Restated retained earnings (1,603) ======== There are no differences in the results and retained earnings of the group on its transition date of 1 July 2005. 5. CALLED UP SHARE CAPITAL Six months ended Six months ended Year ended 31 December 2007 31 December 2006 30 June 2007 (Unaudited) (Unaudited) (Audited) £ £ £ Authorised: Number: Class: 400,000,000 Ordinary 0.5p 2,000,000 2,000,000 2,000,000 100,000 Deferred 1p 1,000 1,000 1,000 90,000,000,000 B Deferred 4,500,000 4,500,000 4,500,000 0.005p ------------------------ --------------------------- ----------------------- 6,501,000 6,501,000 6,501,000 =========== =========== ========== Allotted, issued and fully paid: Number: Class: 125,709,141 Ordinary 0.5p 628,546 628,546 628,546 36,520 Deferred 1p 365 365 365 23,440,062,357 B Deferred 1,172,003 1,172,003 1,172,003 0.005p ----------------------- --------------------- ------------------------ 1,800,914 1,800,914 1,800,914 ========== ========== ========== 6. RELATED PARTY TRANSACTIONS During the period the Group purchased services amounting to £163,757 from Benchmark Limited, of which the son of J Cole is a director and shareholder. At the period end, an amount of £2,071 was owing to the company. This amount has been included in trade creditors. During the period the Company was charged £9,500 by The Waybury Partnership, of which B Ellis is a partner, for the services of B Ellis. At the period end, an amount of £1,981 was owing to the partnership. This amount has been included in trade creditors. The Company was charged £4,500 by RH & Associates, of which R Hayim is a partner, for the services of R Hayim. Included within trade creditors is £Nil owed to RH & Associates. During the period the Company was charged £9,000 by Enitar Limited, a company of which Sir Brian Ivory is a director, for the services of Sir Brian Ivory. At the period end, an amount of £5,288 was owing to Enitar Limited. This amount has been included in trade creditors. The Company was charged £4,500 by CSS Capital Managers, of which RH & Associates is a member, for the services of R Hayim. Included within trade creditors is £Nil owed to CSS Capital Managers. 7. AVAILABILITY OF INTERIM REPORT Copies of the interim report for the six months ended 31 December 2007 will be posted to shareholders on 25 February 2008 and will be available free of charge from the Company's registered office at Alma Park, Woodway Lane, Claybrook Parva, Lutterworth, Leicester, LE17 5BH and from the Company's website at www.retecdigital.com. We have been engaged by the Company to review the condensed set of financial statements in the interim report for the six months ended 31 December 2007 which comprises the consolidated income statement, consolidated interim balance sheet, consolidated interim statement of changes in shareholders' equity, consolidated interim cash flow statement, and related notes. We have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements. Directors' Responsibilities The interim report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the interim report in accordance with the AIM rules. As disclosed in note 1, the annual financial statements of Retec Digital Plc are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this interim report has been prepared in accordance with International Accounting Standard 34, ``Interim Financial Reporting,'' as adopted by the European Union. Our Responsibility Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the interim report based on our review. Scope of Review We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, ``Review of Interim Financial Information Performed by the Independent Auditor of the Entity'' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the interim report for the six months ended 31 December 2007 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union. haysmacintyre Chartered Accountants Fairfax House Registered Auditors 15 Fulwood Place London WC1V 6AY 25 February 2008 END
1 Year Retec Chart |
1 Month Retec 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