1st Quarter Results

RNS Number:6848L
Antonov PLC
29 May 2003



                                  ANTONOV PLC

                 Reports First Quarter Financial Results : 2003


Antonov plc (the "Company" or the "Group"), the developer of a unique and
innovative automatic gearbox, the Antonov Automatic Drive (AAD), announces its
unaudited financial results for the first quarter ended 31st March 2003.


Key Points


Financials


* Unaudited loss before tax of #0.571m (2002: #0.387m)


* Loss per share of 0.6p (2002: 0.4p)


* Cash of #0.28m as at 31st March 2003 was increased during April 2003 by
#1.2m(gross of transaction costs) through a placing.


* During the next two months the Board will take steps to reduce the
group's cost base, whilst at the same time concentrating its efforts on the
commercialisation of the AAD.


Commercial


* Honda development work continues to progress.


* Prototypes installed and running in Opel Corsa's.


* Major German and Japanese transmission suppliers to the car industry are
evaluating our technology and its potential for mass production.


Chairman Roumen Antonov said: "Antonov continues to make excellent progress with
its technology; the Board recognises that it must now conserve cash resources by
reducing its costs base and focus its attention on the commercialisation of the
AAD."






For further information, please contact:

Martin Schinzig                  Tel No: 00 331 60038960
Antonov plc

Lisa Baderoon                    Tel No: 020 7466 5000
Buchanan Communications Limited










CHAIRMAN'S STATEMENT


Antonov plc, the developer of a unique and innovative automatic gearbox, the
Antonov Automatic Drive (AAD), is pleased to announce its unaudited financial
results for the three months ended 31st March 2003.


Financials


No revenues were recorded during the first three months. Development costs and
administration expenses were #0.572m (2002: #0.523m), leaving a loss before
taxation of #0.571m (2002: #0.388m). Loss per share for the period was 0.6p
(2002: 0.4p).


Cash balances were #0.28m as at 31st March 2003 which were increased during
April 2003 by #1.2m(gross of transaction costs) through a placing.


During the next two months the Board will take steps to reduce the Group's
operating costs in order to conserve cash, whilst at the same time concentrating
its efforts on exploiting the commercial potential of the Company.


6-speed AAD


We produced the world's first 6-speed automatic drive some five years ago and
since then have taken the AAD from prototype to the point where the engineering
work has been completed and we were able to launch the commercialisation phase
at the beginning of this year.


We believe that the market is ready for our technology. The new-generation
6-speed AAD is designed to meet the demand for a 6-speed automatic suited to
small and medium sized vehicles with traverse engines and front wheel drive. Our
product combines significant acceleration with a fuel-saving high top gear, yet
at 250mm long is more compact than a standard 5-speed manual transmission.


Commercialisation


In 2002 Honda acquired a non-exclusive licence to certain of Antonov's patents
for worldwide use and has continued development work since that time.


Two prototypes of the 6-speed AAD are now installed and running in an Opel Corsa
1.2L and 1.4L. Demonstrations are progressing on schedule.


Major German and Japanese suppliers of transmissions to the car industry are
evaluating our technology and its potential for mass production.


Summary & Prospects


As announced in our preliminary results for the twelve months ended 31 December
2002, Martin Schinzig replaced Mike Emmerson as Chief Executive Officer at the
end of March 2003; Martin brings a wealth of experience to the Group and has
already demonstrated an energy and ability to make progress in the process of
commercialising the new 6-speed AAD. The positive feedback from the
demonstrations further endorses us in this view. Therefore, we continue to be
confident that further licences will be signed during the next two years. I look
forward to reporting further progress at the six month stage.


Roumen Antonov

Chairman

29 May 2003




UNAUDITED GROUP PROFIT AND LOSS ACCOUNT
for the three months ended 31st March 2003

                                                   2003     2002   Year ended
                                                                  31 Dec 2002
                                                  #'000    #'000        #'000

Turnover and other revenue                                   135          139
Cost of sales                                         -        -            -
                                                 _____    ______       ______
Gross profit                                          0      135          139

Development costs and administration expenses      (572)    (523)      (2,134)
                                                 _____    ______       ______
Operating loss                                     (572)    (388)      (1,995)

Interest receivable                                   1        1           18
                                                 ______   ______       ______
Loss on ordinary activities before taxation        (571)    (387)      (1,977)

Taxation on loss on ordinary activities              (5)      (7)         (30)
                                                 ______   ______       ______
Loss on ordinary activities after taxation         (576)    (394)      (2,007)
                                                 ======   ======       ======
Loss per ordinary share (basic and                  0.6p     0.4p        2.0p
diluted)




UNAUDITED GROUP BALANCE SHEET
as at 31st March 2003

                                              2003        2002     As at 31 Dec
                                                                         2002
                                             #'000       #'000          #'000

Fixed assets
Intangible fixed assets                      1,496       1,201          1,401
Tangible fixed assets                           83          93             87
                                            ______       _____         ______
                                             1,579       1,294          1,488
Current assets
Stocks and contracts in progress                82          50             78
Debtors                                        247         204            210
Cash in hand and at bank                       276         442            878
                                            ______       _____         ______
                                               605         696          1,166

Creditors:
Amounts falling due within one year            397         538            439
                                            ______       _____         ______

Net current assets                             208         158            727
                                            ______    _______        ________
                                                                            _

Total assets less current liabilities        1,787       1,452          2,215
                                             =====       =====          =====
Equity shareholders' funds                   1,787       1,452          2,215
                                             =====       =====          =====



Notes:


1.      The calculation of loss per share for the three months ended 31st March
2003 is based on the loss on ordinary activities after taxation of    #576,000
(2002 : #394,000) and on 105,319,348 ordinary shares of 5p representing the
number of shares in issue in 2003 (2002 : 97,924,333).


2.    The first quarter statements are unaudited. The financial information
contained therein does not constitute statutory accounts within the meaning of
Section 240 of the Companies Act 1985. The accounts for the year ended 31st
December 2001 have been filed with the Registrar of Companies. The auditors'
report on those accounts was unqualified and did not contain any statement under
Section 237 of the Companies Act 1985.


3.    In accordance with the New Market Amsterdam Listing Rules the Company has
received notification from its locked in shareholders showing that as at 31st
March 2003 they collectively held 25,409,121 shares (of which 23,122,498 shares
are locked in) an increase of 172,750 in the quarter then ended. These
shareholders held options to subscribe for new ordinary shares totalling 780,000
shares as at 31st March 2003.


4.    Copies of this statement will be available from the Company's registered
office: 100 Barbirolli Square, Manchester, M2 3AB.



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