We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Name | Symbol | Market | Type |
|---|---|---|---|
| VanEck ETFs NV | EU:TMX | Euronext | Exchange Traded Fund |
| Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 1.41 | 1.56% | 91.51 | 88.00 | 95.00 | 91.51 | 88.50 | 89.77 | 1,027 | 16:40:00 |
Hot Features
Premium
RNS Number:9577N
Telemetrix PLC
25 July 2003
25 July 2003
Telemetrix PLC
2003 Interim Results
Financial summary
2003 2002
(restated)
Turnover #44.4m #42.9m
Operating profit* #1.0m #0.9m
Profit (Loss) Before Tax (#0.5m) (#0.1m)
Earnings Per Share* 0.5p 1.4p
Operating cashflow #3.0m #8.1m
Net Cash #4.2m #0.3m
* Before goodwill amortisation, exceptional costs and charges
Divisional Highlights
* Continuing strong recovery at Zetex: pre-exceptional operating profit up 150% at
#2m.
* Q4 momentum from new products and normal seasonal influences expected to support
Zetex further improvement in H2.
* Wafer fab rationalisation remains on course. Commissioning of new stepper is near
to completion and will contribute to improved yields and new processes in H2.
* Trend reported a pre-exceptional and goodwill amortisation operating loss of
#0.5m (2002: operating profit of #1.0m) on sales of #15.7m (2002: #17m).
* At Trend's Test division, the remorseless cutback in capex spend on new
networks by communications carriers led to a pre-exceptional and goodwill amortisation operating
loss of #1.8m (2002: #0.2m). A cost reduction programme effective on 1 July will reduce costs by #1.6m
annually from the H1 run rate. The second phase of the programme is to be effective in Q4, with the aim
of bringing Trend's Test division nearer to breakeven.
* Trend's Network Services division produced operating profit up 9% at #1.3m (2002:
#1.2m) and sales up 13% at #9.3m (2002: #8.2m). A broadly similar performance is expected in H2.
* Barry Waite, previously President and CEO of Chartered Semiconductor Manufacturing
(Singapore), has been appointed a new non-executive director of the Group.
Commenting on the outlook, the Chairman, Liz Airey, states:
"We anticipate that the SARS induced delays in starting new design and
production projects in the PACRIM and the cellular handset inventory overhang in
the PRC will have been worked through by the end of the third quarter of the
current year, and that both will have a small impact on Zetex sales in the
period. After a third quarter that is unlikely to show sequential sales growth
we anticipate that in the fourth quarter momentum from new products and normal
seasonal influences will support further improvement at Zetex in the second half
of 2003 as a whole.
With sales of field deployable transmission testers near to levels related only
to support of existing networks, with continuing growth in xDSL sales, and
following the cost reductions made in the second quarter we are aiming for the
first half loss at Trend's broadband test division to be significantly reduced
in the second half of the year. We expect a broadly similar performance from
Trend's Network Services division in the second half of the year as in the first
whilst corporate head office expenses will revert to, or be slightly above, the
more normal half-yearly level as SSAP 24 adjustments will in future be
incorporated in the results of the subsidiaries. Overall the Board expects the
continuing recovery at Zetex to be more fully reflected in the Group result for
the second half of 2003".
Enquiries:
Tim Curtis or Bruce Rattray
Chief Executive Finance Director
Telemetrix PLC Telemetrix PLC
Telephone: +44 (0)20 7638 9571 at Citigate Dewe Rogerson on 25 July 2003
Thereafter: +44 (0)1628 851144
Website: www.telemetrix.co.uk
TELEMETRIX PLC
INTERIM RESULTS 2003
The year on year increase in the Group's first half 2003 pre-exceptional and
goodwill operating profit was underpinned by the continuing strong recovery by
the Group's analog semiconductor manufacturer Zetex. Group first half operating
profit, before exceptional items and goodwill amortisation, of #1.0m increased
by 9% over the restated pre-exceptional and goodwill operating profit of #0.9m
achieved in the first half of 2002 (second half 2002 - restated #1.9m). Group
sales for the most recent period were #44.4m compared to a restated #42.9m in
the first half of 2002 (second half - restated #44.7m). 2002 sales and
operating profit before exceptional items and goodwill amortisation have been
restated to reflect the changed approach to the recognition of Zetex revenue
derived from sales to stocking distributors, which was announced at the time of
the 2002 Preliminary Results to be effective for 2003. The effect of the
restatement has been to increase 2002 sales by #1.0m in the first half and by
#0.1m in the second half and to increase 2002 pre-exceptional and goodwill
operating profit by #0.4m in the first half and by #0.1m in the second half.
First half 2003 development spend on new products and processes was in line with
our expectations at #3.7m, equivalent to 8.3% of sales, and was 11% greater than
the #3.3m spent in the first half of 2002, equivalent to 7.8% of restated sales
(second half 2002 - #4.1m, equivalent to 9.3% of restated sales). The first
half year pre-exceptional and goodwill operating profit has benefited from a
SSAP 24 credit adjustment, taken at Corporate Head Office level, of #0.3m. This
credit arises from the changes to members' benefits and contribution rates which
became effective on 6 April 2003 and from the use of the most recent formal
actuarial valuation of the deficit in the Telemetrix Group Pension Scheme as at
5 April 2002.
No net interest was paid in the half year compared to the #0.1m payable in each
of the first and second halves of 2002. After goodwill amortisation of #0.9m
(#0.9m in both the first and second halves of 2002) and exceptional operating
costs of #0.5m (first half 2002 - #nil and second half 2002 - #0.3m) incurred in
cost reduction programmes at Zetex (#0.2m) and Trend's broadband test division
(#0.3m), the pre-tax loss for the period was #0.5m compared to an adjusted
pre-tax loss of #0.1m in the first half of last year (second half 2002 - pre-tax
loss #2.1m). After a tax charge of #0.4m (first half 2002 - tax credit #0.7m
and second half 2002 - tax credit of #0.3m) first half earnings per share before
exceptional items and goodwill amortisation were 0.5p compared to a restated
1.4p for the first half of 2002 (second half - restated 1.7p).
Capital expenditure in the half year was #1.1m compared to #0.8m in the first
half of last year (second half - #1.9m). Net cash at the period end was #4.2m
compared to #4.1m at the end of 2002. Operating cash flow for the period was
#3.0m compared to #8.1m in the first half of 2002 (second half - #6.2m).
The reduction in year on year first half Group operating cash flow of #5.1m is
accounted for by the reduction across the two periods in Trend's operating cash
flow of #6.0m.
In the first half of 2003 Trend had negative operating cash flow of #0.3m,
reflecting a small increase in working capital of #0.4m, which compares with
operating cash inflow of #5.7m in the first half of last year. One time cash
compensation payments of #2m were received by Trend from Agilent during the
first half of 2002. Also during that period a substantial reduction in Trend
receivables was made, from #8.5m at the beginning of the year to #5.6m at the
end of June arising mainly from the collection of a receivable outstanding at
the end of 2001 related to a large contract delivered in 2001. Trend inventory
also reduced in the first half 2002, from #8.0m at the end of 2001 to #7.1m at
the end of June.
ZETEX First half sales of #28.7m were 11% up from the restated #25.9m
achieved in the first half of 2002 (second half - restated #27.2m). Expressed
in US dollars the sequential half year on half year growth in Zetex sales was
9%. Second quarter 2003 sales at #14.6m were 3% higher than those for the first
quarter of the year (#14.1m) which in turn were 2% higher than restated sales in
the fourth quarter of 2002. Expressed in US dollars the sequential quarterly
growth rate for both the second and first quarters was 4%. Forward sales of
anticipated unmatched US dollar cash inflows in the first half resulted, in
spite of wide fluctuations in the spot rate during the half year, in an average
effective sterling to US dollar exchange rate for the period of $1.61 / #1,
close to the rate at the end of 2002 and to the budgeted rate. The unmatched US
dollar cash inflow anticipated in the second half of the current year has been
sold forward at rates similar to the effective average rate for the first half.
In the first half of 2003, Zetex achieved a pre-exceptional operating profit of
#2.0m, up 150% from the restated pre-exceptional operating profit in the first
half of 2002 of #0.8m (second half 2002 - restated operating profit #1.2m).
Development spend at Zetex for the most recent period was #2.5m, 19% up from the
#2.1m spend in the first half of last year (second half 2002 - #2.8m).
Increased sales of Zetex products by distributors to end users (now the basis of
recognition by Zetex of sales to its distributors) were the largest contributor
to the growth in Zetex sterling denominated first half 2003 sales compared to
the second half of 2002. Sales to the satellite broadcast market are normally
weighted towards the second half but in the first half of 2003 were close to the
level of the second half of 2002 and significantly ahead of the first half of
last year; in part this strong performance was due to the rapid acceptance by
customers of the new switching bias and control devices for multiple output
LNBs. Sales into the automotive market in the first half showed useful growth
over both the second and first halves of 2002, with the impetus again coming
from new products. Sales into the general consumer market in the period were
flat compared to the levels of both the second and first halves of last year
despite a near doubling of sales into the GSM handset market, driven in
particular by the PRC market. Volume sales of Zetex' high efficiency linear
input Class D switching audio controller device failed to materialise in the
period as the multi channel DVD market did not develop as had been expected.
However twelve design wins were achieved for the product which greatly enhanced
customer application architecture and performance.
The company's recently introduced digital input AcoustarTM audio amplifier
continued to gain widespread customer interest and press acclaim; it is
currently undergoing evaluation for inclusion in midrange AVR systems by a
number of leading brand manufacturers in both the PACRIM region and in the USA
and very recently it has been awarded the 2003 British Electronics Industry
Design Award for the best and most innovative use of existing technology.
During the half year wafer through puts built rapidly in the new 150mm wafer
fabrication facility. All devices for the satellite broadcast market and all
n-channel trench MOSFETs are now processed in the facility. Commissioning of a
second hand sub micron Nikon stepper in the facility is near to completion and
when brought into production later in the second half it will contribute to
improved yields as well as enabling the development of new processes.
The programme to transfer wafer fabrication out of Gem Mill to the facilities at
Lansdowne Road (LR) remains on course although headcount reductions at this
stage are less than had been anticipated as staff have been moved from Gem Mill
to LR to help meet the slightly higher than anticipated demand.
TREND First half sales of Trend's broadband test equipment division fell 27%
to #6.4m compared to #8.8m in the first half of last year (second half 2002 -
#8.6m). As the remorseless cut back in capex spend on new networks by
communications carriers continued, contrary to industry expectations, into its
second year, this most recent half-year's sales level is less than half the
#14.2m of the first half of 2001. In the first half of 2003 the division's
pre-exceptional and goodwill operating loss was #1.8m compared to #0.2m in the
first half of last year (second half - operating loss #0.5m). As part of the
renegotiation with Agilent Technologies of its OEM agreement, Trend received in
2002 one time payments for agreeing to reduce certain minimum purchase
commitments amounting to #2.0m against which provisions of #0.4m were made to
cover associated excess inventories; of the net #1.6m benefit so arising #1.0m
was reported in the first half and #0.6m in the second half.
A headcount reduction programme completed in the second half of 2002 reduced the
division's cost base by #1.0m per annum. Based on industry forecasts for 2003
of flat or slightly increased carrier capex spend on new networks, sales for the
division were expected to be marginally higher for the year than for 2002 with
continuing growth in ADSL compensating for the secular decline in ISDN. With
this sales plan for 2003 a similar pre-exceptional and goodwill operating loss
as for 2002 was anticipated with the somewhat higher sales making up the
difference between the net #1.6m received in 2002 from Agilent and the #1.0m
cost savings effective for 2003. The division's first quarter sales fell far
below this expectation, following which it became clear that industry forecasts
for carrier capex spend on new networks for 2003 were too optimistic. As
anticipated in the Chairman's AGM statement at the end of April, the division's
second quarter sales have borne the normal, pre TMT "bubble", seasonal
relationship to those of the first quarter, traditionally the weakest quarter in
the year. Based on the pattern of first and second quarter sales it has been
possible to predict a level of sales for the remainder of 2003, albeit sharply
reduced from previous expectations.
A further cost reduction exercise was commenced in the second quarter of 2003,
the first phase of which became effective on 1 July, reducing costs by a further
#1.6m annually from the first half run rate and bringing the division nearer to
break even at current sales levels. The major areas of savings were the
conversion of the American sales force to a commission only basis and a
reduction in senior management headcount at Trend's Spanish operation. The
second phase of the cost reduction programme, involving projects with longer
gestation periods, is planned to be effective in the fourth quarter with the
target of achieving the final step to break even.
Given the seasonality of the test equipment market, sequential period
comparisons of sales are not meaningful. The most marked decline in first half
2003 product sales compared to the first half of last year was that experienced
by transmission testers, down 59%. The greater part of this reduction was
accounted for by the higher speed STM16 product, which is largely dependent on
new network roll outs, whereas relatively greater resilience was shown by the
lower speed STM1, STM4 and 2Mb/s products which are required largely for
maintenance of existing networks. Some early sales were made of the high end
transmission test platform incorporating 10gbs SDH. A similar pattern of more
resilient base level sales, unrelated to release of capex budgets for new
networks, as was experienced in low transmission speed products, was seen in the
first half sales of the mature range of ISDN testers, albeit these continued
their annual rate of decline of 30% to 40% established since 1999. In the first
half sales of the continually broadening range of xDSL products increased 48%
over the level of the same period last year as a growing number of carriers in
Europe, the PACRIM, the Middle East and Africa prepared for, or commenced, the
roll out of broadband access to the home.
In light of the substantial first half fall in sales of the transmission
products which are developed and manufactured by Trend's Spanish subsidiary, a
review is being undertaken in the second half of the activities of the business
with a view to improved profitability, which may need to be reflected in the
carrying value of the goodwill that arose on the acquisition of the entity in
2001.
As anticipated, sales growth in Trend's Network Services division reduced
somewhat in the first half of 2003 with sales of #9.3m up 13% compared to #8.2m
in the first half of last year (second half 2002 - #8.9m). The division's
operating profit of #1.3m was 9% more than the operating profit for the first
half of 2002 of #1.2m (second half 2002 - #2.0m). The reduction in operating
margin for the most recent period to 14.3% from 18.6% in the full year 2002
(first half 2002 - 14.9% and second half 2002 - 22.1%) was anticipated at the
time of the Preliminary results announcement and is the result of higher levels
of support fees paid to network equipment vendors. The division's first half
sales arising from contracts for maintenance of enterprise networks at #6.0m
were 7% higher than the #5.6m in the first half of 2002 (second half 2002 -
#6.2m). Useful growth was achieved in the half year by the recently launched
NetControl network monitoring service and the NetSecure security audit and
consultancy service.
Overall Trend reported a pre-exceptional and goodwill amortisation operating
loss of #0.5m for the first half of 2003 on sales of #15.7m compared to a
pre-exceptional and goodwill operating profit of #1.0m on sales of #17.0m in the
first half of 2002 (second half 2002 - pre-exceptional and goodwill operating
profit of #1.5m on sales of #17.5m).
BOARD As announced separately, Barry Waite, previously President and Chief
Executive Officer of Chartered Semiconductors Manufacturing in Singapore, was
today appointed to the Board of Telemetrix as a non-executive director.
OUTLOOK We anticipate that the SARS induced delays in starting new design and
production projects in the PACRIM and the cellular handset inventory overhang in
the PRC will have been worked through by the end of the third quarter of the
current year, and that both will have a small impact on Zetex sales in the
period. After a third quarter that is unlikely to show sequential sales growth
we anticipate that in the fourth quarter momentum from new products and normal
seasonal influences will support further improvement at Zetex in the second half
of 2003 as a whole.
With sales of field deployable transmission testers near to levels related only
to support of existing networks, with continuing growth in xDSL sales, and
following the cost reductions made in the second quarter we are aiming for the
first half loss at Trend's broadband test division to be significantly reduced
in the second half of the year. We expect a broadly similar performance from
Trend's Network Services division in the second half of the year as in the first
whilst corporate head office expenses will revert to, or be slightly above, the
more normal half-yearly level as SSAP 24 adjustments will in future be
incorporated in the results of the subsidiaries. Overall the Board expects the
continuing recovery at Zetex to be more fully reflected in the Group result for
the second half of 2003.
Telemetrix PLC
Consolidated Profit and Loss Account
Half Year Ended 30 June 2003
2003 2002 2002
Notes Half Year Half Year Full Year
(restated) (restated)
# 000 # 000 # 000
Turnover 1/2 44,396 42,926 87,588
Cost of sales (30,258) (29,803) (60,307)
Gross profit 14,138 13,123 27,281
Operating expenses (14,610) (13,171) (27,789)
Operating profit (loss) 1/2 (472) (48) (508)
Analysis : Operating profit before impairment of fixed assets, severance 955 876 2,775
and goodwill amortisation
Impairment of fixed assets - - (1,100)
Severance (503) - (335)
Goodwill amortisation (924) (924) (1,848)
Amounts written off investments - - (1,563)
Net interest receivable (payable) (44) (101) (180)
Profit (loss) on ordinary activities before taxation (516) (149) (2,251)
Tax on profit (loss) on ordinary activities 3 (419) 721 1,009
Profit (loss) attributable to shareholders for the period (935) 572 (1,242)
Dividend 4 (2) (4) (2,071)
Retained profit (loss) for the period (937) 568 (3,313)
Earnings (loss) per share 5 (1.0) 0.6 p (1.3)p
p
Amount attributable to impairments, severance and goodwill amortisation 1.5 p 0.8 p 4.4 p
Earnings per share excluding impairments, severance and goodwill amortisation 0.5 p 1.4 p 3.1 p
Diluted earnings (loss) per share 5 (1.0) 0.6 p (1.3)p
p
Diluted earnings per share excluding impairments, severance and goodwill 0.5 p 1.4 p 3.1p
amortisation
Statement of Total Recognised Gains and Losses
Profit (loss) for the period (935) 572 (1,242)
Currency translation differences 69 (224) (600)
Total recognised gains (losses) relating to the period (866) 348 (1,842)
Prior period adjustment 2 (2,078)
Total gains (losses) recognised since last Annual Report (2,944)
There is no material difference between historical cost profits (losses) and those shown
above.
Telemetrix PLC
Group Balance Sheet
As at 30 June 2003
2003 2002 2002
Notes June June December
(restated) (restated)
# 000 # 000 # 000
Fixed Assets
Intangible assets 14,180 17,218 15,490
Tangible assets 28,307 31,953 29,856
Investments 6 4,032 5,106 4,034
46,519 54,277 49,380
Current Assets
Stocks 16,134 16,699 16,209
Debtors 15,483 15,187 14,314
Cash at bank and in hand 11,345 9,917 12,608
42,962 41,803 43,131
Creditors : Amounts falling due within one year (25,218) (24,437) (26,550)
Net current assets 17,744 17,366 16,581
Total assets less current liabilities 64,263 71,643 65,961
Creditors : Amounts falling due after more than one year (4,462) (6,113) (5,075)
Provisions for liabilities and charges (2,662) (3,335) (2,923)
57,139 62,195 57,963
Capital and reserves
Called up share capital 5,001 4,994 4,995
Share premium account 33,995 33,933 33,957
Profit and loss account 13,553 18,678 14,421
Other reserves 4,590 4,590 4,590
Equity shareholders' funds 57,139 62,195 57,963
Reconciliation of Movements in Shareholders' Funds
Profit (loss) attributable to shareholders for the period (935) 572 (1,242)
Dividend 4 (2) (4) (2,071)
Retained profit (loss) for the period (937) 568 (3,313)
Effect of foreign exchange rate movements 69 (224) (600)
New share capital issued 44 76 101
Net increase (decrease) in shareholders' funds (824) 420 (3,812)
Opening shareholders' funds as previously reported 57,963 64,337 64,337
Prior period adjustment 2 - (2,562) (2,562)
Closing shareholders' funds 57,139 62,195 57,963
Telemetrix PLC
Consolidated Cash Flow Statement
Half Year Ended 30 June 2003
2003 2002 2002
Notes Half Year Half Year Full Year
# 000 # 000 # 000
Net cash inflow from operating activities 7 2,948 8,094 14,300
Returns on investments and servicing of finance
Interest paid (189) (378) (533)
Interest received 167 294 348
(22) (84) (185)
Tax received 390 717 458
Capital expenditure and financial investment
Receipts from sale of fixed assets 24 67 329
Payments to acquire fixed assets (1,163) (775) (2,687)
Payments to acquire own shares by Telemetrix ESOT - (907) (1,405)
(1,139) (1,615) (3,763)
Equity dividends paid (2,068) (2,094) (2,094)
Net cash flow before management of liquid resources and financing 109 5,018 8,716
Management of liquid resources (150) (4,800) (5,650)
Financing
Issue of ordinary share capital 44 54 101
Loans and finance leases raised 340 92 129
Loans repaid (1,651) (947) (2,699)
Capital element of finance leases repaid (22) - (66)
(1,289) (801) (2,535)
Increase (decrease) in cash in the period (1,330) (583) 531
Reconciliation of net cash flow to movement in net cash
Increase (decrease) in cash in the period (1,330) (583) 531
Cash flow from decrease in debt and lease financing 1,333 855 2,636
Cash flow from increase in liquid resources 150 4,800 5,650
Change in net cash resulting from cash flows 153 5,072 8,817
Translation difference (45) (408) (354)
Movement in net cash in period 108 4,664 8,463
Net cash (debt) at beginning of period 4,117 (4,346) (4,346)
Net cash at end of period 4,225 318 4,117
Telemetrix PLC
Notes to the Interim Financial Statements
1.1 Segmental analysis
Turnover, operating profit and operating assets split 2003 2002 2002
by class of business Half Year Half Year Full Year
(restated) (restated)
# 000 # 000 # 000
Turnover
Analog semiconductors - Zetex 28,714 25,947 53,106
Broadband test equipment - Trend * 6,354 8,757 17,370
Enterprise network services - Trend 9,328 8,222 17,112
Telemetrix Group 44,396 42,926 87,588
Profit (loss)
Analog semiconductors - Zetex 1,785 796 906
Analysis : Analog semiconductors - pre-severance 2,005 796 2,006
and impairment of fixed assets
Severance (220) - -
Impairment of fixed assets - - (1,100)
Broadband test equipment - Trend * (3,009) (1,145) (2,828)
Analysis : Broadband test equipment - pre-severance and (1,802) (221) (687)
goodwill amortisation
Severance (283) - (293)
Goodwill amortisation (924) (924) (1,848)
Enterprise network services - Trend 1,337 1,223 3,147
Analysis : Enterprise network services- pre-severance 1,337 1,223 3,189
Severance - - (42)
Telemetrix corporate - note 8 (585) (922) (1,733)
Group Operating Profit (472) (48) (508)
Operating Assets
Analog semiconductors - Zetex 34,281 38,245 35,704
Broadband test equipment and enterprise network services - 19,874 23,944 21,066
Trend
Analysis :Broadband test equipment and enterprise network 6,467 8,689 6,735
services - pre-goodwill
Goodwill 13,407 15,255 14,331
Telemetrix corporate (169) (343) (398)
53,986 61,846 56,372
Group net operating assets
Telemetrix PLC
Notes to the Interim Financial Statements
(continued)
1.2 Segmental analysis (continued)
Turnover and operating profit (loss) made by Group companies 2003 2002 2002
located in the following geographical areas. Half Year Half Year Full Year
(restated) (restated)
# 000 # 000 # 000
Turnover
United Kingdom 41,531 35,442 73,402
United States of America * 5,294 6,364 12,766
Continental Europe 12,226 12,268 24,476
Asia Pacific 14,154 12,543 25,967
Other geographical areas 166 499 674
73,371 67,116 137,285
Inter-area eliminations (28,975) (24,190) (49,697)
Group Turnover 44,396 42,926 87,588
Profit (loss)
United Kingdom 468 (2,459) (3,240)
Analysis : Pre-severance and impairment of fixed assets 653 (2,459) (1,829)
Severance (185) - (311)
Impairment of fixed assets - - (1,100)
United States of America * (504) 1,222 1,270
Analysis : Pre-severance (410) 1,222 1,270
Severance (94) - -
Continental Europe (1,349) 297 (86)
Analysis : Pre-severance and goodwill amortisation (201) 1,221 1,786
Severance (224) - (24)
Goodwill amortisation (924) (924) (1,848)
Asia Pacific 907 863 1,530
Other geographical areas 6 29 18
Group Operating Profit (Loss) (472) (48) (508)
* In April 2002, Trend renegotiated its OEM agreement with its distributor in the USA. In return
for agreeing to reduce certain minimum purchase commitments Trend received $3m (#2m) in cash, of
which $2m (#1.4m) was reported in the 2002 Interim results. The exclusive distribution rights of
the distributor were limited such that Trend could sell direct into the USA market alongside the
distributor. A consequence of the reduced purchase commitment was that Trend were left with
excess inventories, and during 2002 set aside #0.4m to provide for this. This stock provision was
netted off against the $3m (#2m) and the net credit was included as part of "Operating expenses"
in the Profit and Loss account. No equivalent amounts arose in the half year to 30 June 2003.
Telemetrix PLC
Notes to the Interim Financial Statements
(continued)
2 Prior period adjustment
The Company has adopted a new accounting policy on revenue recognition for sales made through distributors.
Previously, the Company recognised distributor sales at the point of despatch to the distributor, unless there
were specific price protection and return rights. From 1 January 2003, sales through distributors are not
recognised until the distributor has sold the goods to third parties. The Directors consider the new policy
to be more appropriate given the commercial risks for inventory in this sales channel, as well as producing
greater comparability with the Company's global peer group. This has necessitated a restatement of prior years
figures with reserves at 1 January 2002 reducing by #2,562,000. As a result of this change, reported
turnover and operating profit have increased by #980,000 and #411,000 respectively in the first half of 2002.
The equivalent figures for the full year 2002 are #1,082,000 and #484,000. Earnings per share figures have
been restated accordingly. Had this change not been implemented, the turnover and operating profit for the
half year to 30 June 2003 would have been lower by #347,000 and #165,000 respectively.
3 Taxation
The taxation charge for the period has been calculated by applying the estimated effective rate for the full
year for each tax jurisdiction in which the Group trades to the results of the half year incurred in those
jurisdictions, and adjusted for changes in the level of provisions relating to prior years. This comprises a
UK tax charge of #nil (2002 first half, credit - #1,267,000) and a net overseas tax charge of #419,000 (2002
first half, charge - #546,000). All the above figures represent 'current' tax. There has been no movement in
deferred tax in the six month period to 30 June 2003 (2002 first half - no deferred tax movement).
4 Dividend
During 2003, and prior to the record date, 61,100 share options were exercised. In addition, 15,483 new shares
were issued prior to the record date. The combined effect of these transactions was that 76,583 additional
shares became eligible for the 2002 dividend, creating an additional dividend charge of #2,000 over that
disclosed at 31 December 2002. This increase has been recognised in the profit and loss account in the period
to 30 June 2003.
5 Earnings per share (EPS) 2003 2003 2003 2002 2002 2002
for half years to 30 June Profits Basic Diluted Profits Basic Diluted
(losses) (losses)
(restated) (restated) (restated)
# 000 EPS (p) EPS (p) # 000 EPS (p) EPS (p)
Adjusted earnings and EPS 437 0.5 0.5 1,357 1.4 1.4
Exceptional items
Effect of goodwill amortisation (924) (1.1) (1.1) (924) (0.9) (0.9)
Effect of severance costs (503) (0.5) (0.5) - - -
Tax effects of exceptional items 55 0.1 0.1 139 0.1 0.1
Profit for the financial period and EPS (935) (1.0) (1.0) 572 0.6 0.6
Weighted average number of shares 96,121,189 96,800,894 97,132,586 98,300,092
An adjusted EPS has been provided to eliminate the distortions caused by non-operating items.
6 Investments
Investments include the cost of shares acquired by the Telemetrix ESOT. These shares have been acquired over the
period from 1 January 1999 to 31 December 2002 and total 3,828,864 shares with an aggregate net book value of
#3,924,000. No shares have been acquired in the half year to 30 June 2003.
Telemetrix PLC
Notes to the Interim Financial Statements
(continued)
7 Notes to consolidated cashflow statement
Reconciliation of operating profit (loss) to operating 2003 2002 2002
cashflows
Half Year Half Year Full Year
(restated) (restated)
# 000 # 000 # 000
Operating profit (loss) (472) (48) (508)
Depreciation and know-how amortisation 3,647 3,575 8,300
Goodwill amortisation 924 924 1,848
(Profit) loss on sale of fixed assets 5 (14) (160)
(Increase) decrease in stocks 187 2,717 3,673
(Increase) decrease in debtors (1,071) 1,015 1,635
Increase (decrease) in creditors and provisions (272) (75) (488)
Net cashflow from operating activities 2,948 8,094 14,300
8 Pension costs
In April 2003 the Company implemented changes to pension benefits for future service under its
defined benefit scheme including increasing the normal retirement age by 2 years and reducing
accrual rates or requiring increased member contributions for maintenance of existing accrual rates.
The Company has, however, maintained the rate of cash contributions into the scheme to reduce the
deficit. The pension costs under this scheme expensed in the half year to 30 June 2003 are
determined under SSAP 24 with the advice of the scheme's actuary and take into account the regular
cost in the period and a variation in respect of a proportion of the deficit identified at the last
triennial valuation in April 2002. Due to the changes in the cost of the pension promise mentioned
above, the regular cost has reduced compared to prior periods. Under SSAP 24 the variation in
respect of the deficit in the scheme must be based upon the last full valuation of the Scheme and
does not take into account the fall in the value of the scheme's assets since April 2002. This has
resulted in a charge to the Profit and Loss account for pensions of #275,000 lower than the
Company's cash contributions. Due to the relative immateriality, this #275,000 credit has been
included within the corporate overhead in the segmental analysis, so as to be consistent with the
prior period accounting treatment of similar SSAP 24 variations.
9 General notes
The results for the half year to 30 June 2003, and the balance sheet as at 30 June 2003, represent
trading activities for the 26 weeks to 29 June 2003 (2002 - 26 weeks to 30 June 2002).
This interim statement has been prepared on the basis of the accounting policies set out in the
Group's 2002 statutory accounts, except for accounting for sales to distributors, as explained in
Note 2 in this statement.
The financial information contained in the interim report does not constitute statutory accounts as
defined in Section 240 of the Companies Act 1985. The results shown for the year ended 31 December
2002 are an abridged version of the statutory accounts for the period on which the auditors gave an
unqualified report and which have been delivered to the Registrar of Companies. The interim
statement for the half year ended June 2003 has not been audited but has been reviewed in accordance
with APB bulletin 1999/4, 'Review of Interim Financial Information'. The results shown for the half
year ended June 2002 were also reviewed in accordance with APB bulletin 1999/4.
Copies of this report are being sent to shareholders and will be made available to the public at the
Company's registered office at Knaves Beech Estate, Loudwater, High Wycombe, Buckinghamshire, HP10
9QZ, England, and on the Company's website at www.telemetrix.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EANXLAFEDEFE
1 Year VanEck ETFs NV Chart |
1 Month VanEck ETFs NV 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
