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RNS Number:5297K
Radamec Group PLC
30 April 2003
30 April 2003
RADAMEC GROUP PLC - PRELIMINARY ANNOUNCEMENT
*Radamec, the AIM-traded defence electronics group which sold its TV
broadcast electronics business in February 2003, announces a pre-tax profit
of #2.5m of a turnover of #9.3m in the year ended 31 December 2002,
reflecting low sales by the defence and broadcast businesses and a profit of
#3.7m on September's sale of the Company's Head Office site at Chertsey,
Surrey.
*Radamec Broadcast Systems was sold in February 2003 for #4.65m in cash,
generating an estimated profit of #1.1m and, together with the #4.6m Head
Office proceeds, providing the Group with strong cash reserves.
*In 2002, continuing operations made an operating loss of #1.0m on a
turnover of #4.7m.
*Commencing with the UK Type-45 Destroyer contract, the business of
Radamec Defence Systems has shown a marked improvement and the order backlog
is currently over #13.5m, extending beyond 2004. The backlog covers
electro-optical gunfire/surveillance systems for Type-45 Destroyers and
overseas Navies, land-based missile systems, video cameras for armoured
vehicles, and spares.
*Dividends for the year of 2.0p (2001: 0.5p) per share are proposed.
*Len Whittaker, Chairman & Chief Executive, stated "Radamec Defence
Systems now accounts for 90% of Group turnover and as a result of its
substantial order backlog a significant trading improvement is anticipated
in 2003. Following the sale of Radamec Broadcast Systems and Radamec
Electronics Systems, consideration is being given to the Group's future
corporate structure and, allowing for the Group's capital requirements, to
the appropriateness and timing of a capital distribution to shareholders."
Enquiries:
Radamec Group PLC 01932-561181
Len Whittaker (Chairman & Chief Executive)
Lionel Moore (Finance Director)
Bankside Consultants Limited
Charles Ponsonby 020-7444 4166
Bankside draft: 29.04.03
CHAIRMAN'S STATEMENT
The Group pre-tax profit in 2002 was #2.455m. The result was the net of a profit
of #3.705m on the sale of the company's Head Office site at Chertsey, Surrey,
and, on sales of #9.321m, an operating loss of #1.012m inclusive of losses on
the discontinued businesses of Radamec Electronics Systems (#0.279m) and Radamec
Broadcast Systems (#0.208m). There was also a disinvestment loss of #0.077m and
interest costs of #0.161m.
Dividends
The Board is pleased to recommend a final dividend of 1.0p (2001 0.5p) per share
making a total for the year of 2.0p(2001 : 0.5p) to be paid on 4 July 2003 to
shareholders on the register at close of business on 6 June 2003.
Property
Consultants appointed by Chertsey site landowners obtained residential planning
permission and negotiated the sale of the 5.64 acre site in September 2002 for
#20m plus overage based on revenue from the developed site. Radamec's share of
the proceeds is #4.6m.
The initial payment of #1.156m on the site sale was received on 1 October 2002
and a further deferred payment of #2.296m on 2 April 2003. The final payment
(excluding overage) is due on 31 August 2003 (#1.148m) and these payments
together with #4.65m from the February 2003 sale of Radamec Broadcast Systems
Limited have provided the Group with strong cash reserves.
Operations
Low sales of defence and broadcast systems equipment were responsible for the
Group trading loss in 2002.
Radamec Defence Systems'(RDS) long running Sea King Helicopter contract for the
supply of stabilised control systems for the helicopter's radar was
substantially completed in the third quarter and the initial work on the Type 45
Destroyer contract proceeded to schedule.
Commencing with the UK Type 45 Destroyer contract, the Defence business has
shown a marked improvement and the order backlog is currently over #13.5m,
extending beyond 2004.
The backlog covers a range of equipment for electro-optical gunfire/surveillance
(EOGS) systems for Type 45 Destroyers, EOGS systems for overseas navies, land
based missile systems, video cameras for armoured vehicles, and spares.
Potential business to named customers exceeds #50m for missile systems, naval
gunfire control systems, airborne stabilised control systems and video camera
equipment for armoured vehicles. Equipment required by overseas navies
patrolling Economic Exclusion Zones is an important market for RDS; stabilised
day and night surveillance and gunfire control systems as supplied by RDS are an
essential requirement for this task. Research and Development continues at a
sustained level ensuring products remain competitive in world markets.
Radamec Control Systems Limited's (RCS) Marine Control Division traded
profitably to budget in 2002 and business remains steady with ongoing contracts
from the RNLI. The Environmental Controls Division improved on its budgeted loss
and its new diesel exhaust monitor developed in 2002 to the Government Vehicle
Inspectorate (VI) revised specification is being supplied to the largest company
in the UK garage test equipment business.
Radamec Broadcast Systems Limited (RBS) made a pre-tax trading loss of #0.208m
inclusive of Group overheads and interest on sales of #4.406m (#5.712m). The
loss resulted from the adverse effect on the TV studio equipment business of a
significant decline in TV advertising. The RBS business was sold in February
2003 for #4.65m in cash, generating an estimated profit of #1.1m and, as a
further result of the sale, a previously undistributable reserve of #623,000
will become distributable.
Radamec Electronic Systems Limited's (RES) business disposal loss, R & D write
off and pre-tax trading loss, inclusive of Group overheads and interest, for the
period January to April 2002 totalled #0.279m. The business was sold in April
2002.
Outlook
Radamec Defence Systems now accounts for 90% of Group turnover and as a result
of its substantial order backlog a significant trading improvement is
anticipated in 2003.
Radamec Control Systems' trading performance is expected to improve with sales
of the Environmental Division's new diesel engine exhaust monitors commencing in
April 2003.
Following the sale of RBS and RES, consideration is being given to the Group's
future corporate structure and, allowing for the Group's capital requirements,
to the appropriateness and timing of a capital distribution to shareholders.
As a result of the sale of the TV studio equipment business Mike Wolfe, its
Managing Director, resigned as a Group Board Director. Mike has been a member of
the Group Board since 1992 and his contribution to the Board has been
invaluable. The Board thank him for this service and wish him all success in his
future career.
L.B. Whittaker
Chairman & Chief Executive 30 April 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 31 December 2002
Note 2002 2002 2002 2001
Continuing Discontinued Total
operations operations
#'000 #'000 #'000 #'000
Turnover 4,689 4,632 9,321 12,336
=============== ================ =============== ===============
Operating (1,025) 13 (1,012) 367
profit
Profit on sale 3,705 - 3,705 -
of fixed
assets
Loss on (55) - (55) -
disposal of
investments
Loss on - (22) (22) -
disposal of
discontinued
operations
--------------- ---------------- --------------- ---------------
Profit on 2,625 (9) 2,616 367
ordinary
activities
before
interest
Interest (161) (137)
payable -
net
--------------- ---------------
Profit on 2,455 230
ordinary
activities
before
taxation
Tax on profit 2 (254) (32)
on ordinary
activities
--------------- ---------------
Profit 2,201 198
attributable
to
shareholders
Dividends - 3 (374) (93)
paid and
proposed
2p (2001:
0.5p) per --------------- ---------------
ordinary 5p
share
Transfer to 1,827 105
reserves
=============== ===============
Earnings per 4
share:
=== ===
Basic 11.8p 1.1p
Diluted 11.8p 1.1p
CONSOLIDATED BALANCE SHEET
at 31 December 2002
2002 2001
#'000 #'000
Fixed assets
Intangible assets 1,306 1,174
Tangible assets 531 585
Investments - 100
------------------ ------------------
1,837 1,859
------------------ ------------------
Current assets
Assets awaiting disposal - 581
Stocks and work in progress 3,410 3,277
Debtors 6,916 6,066
Cash at bank and in hand 156 -
------------------ ------------------
10,482 9,924
Creditors: Amounts falling due within (3,990) (5,320)
one year
------------------ ------------------
Net current assets 6,492 4,604
------------------ ------------------
Total assets less current liabilities 8,329 6,463
Creditors: Amounts falling due after (22) (12)
more than one year
------------------ ------------------
Net assets 8,307 6,451
================== ==================
Capital and reserves
Equity called up share capital 934 934
Share premium account 1,857 1,857
Other reserves 623 623
Profit and loss account 4,893 3,037
------------------ ------------------
Equity shareholders' funds 8,307 6,451
================== ==================
CASH FLOW STATEMENT
for the year ended 31 December 2002
2002 2002 2001 2001
#000 #000 #000 #000
Net cash inflow from operating activities 1,170 418
Returns on investment and servicing of
finance
Interest received 15 16
Interest paid (168) (150)
Interest element of finance lease payment (8) (3)
---- ----
Net cash outflow from returns on investments
and servicing of finance
(161) (137)
Taxation
UK corporation tax paid (36) (37)
---- ----
Taxation paid (36) (37)
Capital expenditure and financial investment
Payments for tangible fixed assets (227) (105)
Capitalised development costs (455) (847)
Receipt from sale of tangible fixed assets 1,148 -
---- ----
Net cash inflow/(outflow) for capital
expenditure and financial investment
466 (952)
Acquisitions and disposals
Receipt from sale of subsidiary's trade and 135 -
assets
Receipt from sale of investments 45 -
---- ----
Net cash inflow from acquisitions and 180 -
disposals
Equity dividends paid (280) -
---- ----
Net cash inflow/(outflow) before financing 1,339 (708)
Financing
Capital element of finance lease payments (18) (35)
---- ----
Net cash outflow from financing (18) (35)
---- ----
Increase/(decrease) in cash 1,321 (743)
==== ====
NOTES
1. This preliminary statement is not the Company's statutory
accounts. The statutory accounts for the year ended 31 December 2001 have been
delivered to the Registrar of Companies and received an audit report which was
unqualified and did not contain statements under Section 237 (2) or (3) of the
Companies Act 1985. The statutory accounts for the year ended 31 December 2002
have not yet been approved, reported on by the auditors of the Company or filed.
The financial statements will be posted to members on or before 9
May 2003, whereafter they will be available from The Secretary, Radamec Group
PLC, Bridge Road, Chertsey KT16 8LJ and will be delivered to the Register of
Companies in due course.
2. Taxation
2002 2001
#'000 #'000
Charge for taxation based on the result for
the year:
UK corporation tax at 30% (2001: 30%) 250 47
Amendments of previous years' estimates 2 (16)
-------------- ---------------
252 31
Overseas tax 2 1
--------------- ----------------
254 32
=============== ================
3. Dividends
The proposed final dividend of 1.0p per ordinary share will be (subject to
approval at the AGM) paid on 4 July 2003 to shareholders on the register at
close of business on 6 June 2003.
4. Earnings per share
Basic earnings per share has been calculated by dividing the
earnings attributable to shareholders of #2,201,000 (2001: #198,000) by the
weighted average number of shares in issue during the period of 18,690,000
(2001: 18,690,000).
Diluted earnings per share has been calculated by dividing the earnings
attributable to shareholders by the diluted weighted average number of shares in
issue during the period of 18,704,000 (2001:18,704,000). This takes into account
the number of shares under option, which are adjusted for by their fair value as
if they had been issued.
5. New accounting standards
FRS 19 "Deferred Tax" has been adopted for the first time in these accounts. The
change in accounting policy has had no effect on the profit and loss account or
balance sheet.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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