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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Coe Group | LSE:COE | London | Ordinary Share | GB00B0VQMW25 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 8.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number : 2144P
Coe Group PLC
23 March 2009
COE Group plc
("COE", the "Company" or the "Group")
Unaudited results for the six months ended 31 December 2008
COE, the AIM-quoted developer and supplier of advanced video surveillance
systems, announces unaudited results for the 6 months ended 31 December 2008 (H1
FY09).
Financial Highlights
· Order intake up 10% on the comparative half year.
· Revenue down 10% to GBP1,858k (2008: GBP2,075k) due to the delivery timeline
of the order book. The order book growth will flow through to revenue in due
course.
· Increase in gross margin to 56% (2008: 52%)
· Operating expenses (before exceptional re-organisation costs) significantly
reduced to GBP981k (2008: GBP1,662k) as a result of the successful completion of
the business restructure.
· Operating profit (before exceptional re-organisation costs) of GBP61k compared
to a loss of GBP573k for the comparative period (operating loss of GBP78k
reported after exceptional re-organisation costs compared to a loss of GBP573k
for the comparative period).
· Funds of GBP1,290k raised in the current period to strengthen the balance
sheet and provide adequate working capital to take on the larger size contracts
for which the Company is now competing.
Operational Highlights
· Significant new contract wins include:
o Upgrade of transmission equipment on east/west and north/south rail lines for
Singapore MRT to add 4,000 cameras to the existing network.
o Second major port win in Asia following our success at PSA, Singapore, based
on our IP digital video technology.
o Extension for major rail system in North Asia with video and optical
multiplexing technology.
· New product launches include:
o Ethernet data and video transmission product for hybrid video/IP network
solutions.
o H.264 video codec for real time digital video transmission and storage over IP
networks.
o CCTV control keyboard for IP networks that allows video system control over
digital networks.
About COE:
COE Group Plc develops and supplies integrated IP video surveillance (CCTV)
systems for some of the most complex high profile sites worldwide. COE products
and systems allow users to achieve faultless and cost-effective video
surveillance in safety critical operations and rugged environments year after
year, by delivering very high quality video, high reliability and extensive
third party integration. COE provides both IP and hybrid IP/analogue solutions
so that customers have the option of leveraging existing installations.
The Company has over 10,000 installations worldwide across three main sectors -
traffic & transport, heavy industrial and urban surveillance. References include
the London Congestion Charge network, underground and high-speed rail systems
worldwide, including the UK, Singapore, France, Spain, Germany, Hong Kong and
Delhi; airports across Germany, Hong Kong and SE Asia, and road systems
worldwide. City-centre systems include over 35 UK towns and cities, while
industrial complexes include the South Parrs gas field in the Middle East.
COE works closely with selected systems integrators, helping them to deliver the
most competitive overall solutions for end-users. The Company provides support
through the entire lifecycle including design, supply, on-site test,
commissioning and long-term maintenance.
Please visit www.coe.co.uk
CHAIRMAN'S STATEMENT
Operational report
I am pleased to report that the Company restructure has been successfully
completed and a small operating profit (before exceptional re-organisation
costs) delivered for the six month period. As previously announced the
restructuring commenced in July 2008 when Ian Jefferson, formerly Finance
Director, took over as CEO and implemented a cost reduction programme in order
to more effectively match costs with anticipated revenue.
Operating within this streamlined structure the Company also delivered a 10%
increase in order intake and successfully built on its previously reported win
with the Port of Singapore by taking a second port project in Asia. This second
port was won through a new partner in a new location as the Company started to
execute its plan to replicate local successes from its core territories into the
surrounding regions.
The ability to offer customers a tailored transition path from analogue to
digital via an intermediary hybrid solution provides COE with a competitive
advantage as the markets transition from analogue to digital. The Board believes
that the growth in the hybrid market will be significant and that the Company is
now well positioned to exploit this in terms of solution fit, product offering,
skilled staff and financing.
Financial report
Revenue of GBP1,856k (2008: GBP2,075k) was 10% down compared to the prior
period, despite a 10% increase in the order intake, simply due to the delivery
timeline of the order book. The growth in order intake will flow through to
revenue in due course.
Gross margins continued to increase to 56% (2008: 52%) as work continued on
product and procurement cost reduction programmes.
Operating expenses reduced significantly to GBP981k (2008: GBP1,662k) mainly as
a result of the successful restructuring programme, generating an operating
profit (before exceptional re-organisation costs) of GBP61k compared to a loss
of GBP573k in the comparative period (with an operating loss of GBP78k reported
after exceptional re-organisation costs compared to a loss of GBP573k in the
comparative period).
Balance sheet and financing
In July 2008 IP Group Plc (IPG), a major shareholder in COE, provided a GBP350k
loan facility in order that the Group could implement its restructuring plan.
In November 2008 the Group announced that it had raised approximately GBP940k by
way of a share issue. These funds will provide the working capital headroom
required by the Group as it implements its growth plans. The Group also took the
opportunity during the share issue to convert the GBP350k loan from IPG to
ordinary shares which has further improved the financial position of the Group.
Board and staff changes
In July 2008 the Board announced a restructuring plan designed to more
efficiently deliver growth. As a result of the restructuring Andrew Wallace left
the business. Ian Jefferson, formerly Finance Director took over as CEO and Mark
Norton, Global Sales Director, was appointed to the Board.
Conclusion and outlook
During the six month period, the Group has reorganised to reduce costs,
increased order intake, returned to profitability (before exceptional
re-organisation costs) and raised new funds to restructure the balance sheet.
The new funds have both strengthened the balance sheet and provided the
resources to accelerate both product and market development.In the current
period the Group has continued to expand its channel partner base, further
increasing the number of market opportunities available to it, and the Board
looks forward to the future with confidence.
Dr Alison Fielding
Chairman
20 March 2009
COE Group Plc
Ian Jefferson, Chief Executive Officer
0113 230 8800
Zeus Capital Ltd
Nick Cowles
0161 831 1512
Consolidated income statement (unaudited)
For the six months ended 31 December 2008
+-------------------------------+------+------------+------------+----------+
| | | Six months | Six | Year |
| | | | months | ended |
| | | ended | ended | 30 June |
| | | 31 | 31 | 2008 |
| | | December | December | |
| | | 2008 | 2007 | |
+-------------------------------+------+------------+------------+----------+
| | Note | GBP'000 | GBP'000 | GBP'000 |
+-------------------------------+------+------------+------------+----------+
| Revenue | | 1,856 | 2,075 | 4,185 |
+-------------------------------+------+------------+------------+----------+
| Cost of sales | | (814) | (986) | (1,944) |
+-------------------------------+------+------------+------------+----------+
| Gross profit | | 1,042 | 1,089 | 2,241 |
+-------------------------------+------+------------+------------+----------+
| Net operating expenses | | (981) | (1,662) | (3,436) |
+-------------------------------+------+------------+------------+----------+
| Operating profit/(loss) | | 61 | (573) | (1,195) |
| before exceptional | | | | |
| re-organisation costs | | | | |
+-------------------------------+------+------------+------------+----------+
| Exceptional re-organisation | | (139) | - | - |
| costs | | | | |
+-------------------------------+------+------------+------------+----------+
| Operating loss | | (78) | (573) | (1,195) |
+-------------------------------+------+------------+------------+----------+
| Financial income | 3 | - | 552 | 558 |
+-------------------------------+------+------------+------------+----------+
| Financial expense | 3 | (39) | (469) | (478) |
+-------------------------------+------+------------+------------+----------+
| Loss before tax | | (117) | (490) | (1,115) |
+-------------------------------+------+------------+------------+----------+
| Income tax credit | | 4 | - | 62 |
+-------------------------------+------+------------+------------+----------+
| Loss for the period | | (113) | (490) | (1,053) |
+-------------------------------+------+------------+------------+----------+
| | | | | |
+-------------------------------+------+------------+------------+----------+
| Basic loss per share | 2 | (0.5p) | (2.4p) | (4.7p) |
+-------------------------------+------+------------+------------+----------+
| Diluted loss per share | 2 | (0.5p) | (2.4p) | (4.7p) |
+-------------------------------+------+------------+------------+----------+
Consolidated statement of changes in equity (unaudited)
For the six months ended 31 December 2008
+----------------------------------+---+------------+------------+----------+
| | | 6 months | 6 months | 12 |
| | | ended | ended | months |
| | | 31 | 31 | ended |
| | | December | December | 30 June |
| | | 2008 | 2007 | 2008 |
+----------------------------------+---+------------+------------+----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------+---+------------+------------+----------+
| Total equity at start of period | | - | 989 | 989 |
+----------------------------------+---+------------+------------+----------+
| Loss for period | | (113) | (490) | (1,053) |
+----------------------------------+---+------------+------------+----------+
| Shares issued | | 1,167 | - | - |
+----------------------------------+---+------------+------------+----------+
| Share based payments | | 25 | 25 | 64 |
+----------------------------------+---+------------+------------+----------+
| Total equity at end of period | | 1,079 | 524 | - |
+----------------------------------+---+------------+------------+----------+
Consolidated balance sheet (unaudited)
As at 31 December 2008
+-------------------------------+------+------------+------------+----------+
| | | 31 | 31 | 30 June |
| | | December | December | 2008 |
| | | 2008 | 2007 | |
+-------------------------------+------+------------+------------+----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+-------------------------------+------+------------+------------+----------+
| Non-current assets | | | | |
+-------------------------------+------+------------+------------+----------+
| Property, plant and equipment | | 52 | 78 | 72 |
+-------------------------------+------+------------+------------+----------+
| Intangible assets | | 340 | 260 | 340 |
+-------------------------------+------+------------+------------+----------+
| | | 392 | 338 | 412 |
+-------------------------------+------+------------+------------+----------+
| | | | | |
+-------------------------------+------+------------+------------+----------+
| Current assets | | | | |
+-------------------------------+------+------------+------------+----------+
| Inventories | | 155 | 233 | 236 |
+-------------------------------+------+------------+------------+----------+
| Trade and other receivables | | 1,036 | 1,290 | 1,104 |
+-------------------------------+------+------------+------------+----------+
| Cash and cash equivalents | | 592 | 495 | 384 |
+-------------------------------+------+------------+------------+----------+
| | | 1,783 | 2,018 | 1,724 |
+-------------------------------+------+------------+------------+----------+
| | | | | |
+-------------------------------+------+------------+------------+----------+
| Total assets | | 2,175 | 2,356 | 2,136 |
+-------------------------------+------+------------+------------+----------+
| | | | | |
+-------------------------------+------+------------+------------+----------+
| Current liabilities | | | | |
+-------------------------------+------+------------+------------+----------+
| Trade and other payables | | (817) | (1,722) | (2,020) |
+-------------------------------+------+------------+------------+----------+
| Loans and other borrowings | | (204) | - | - |
+-------------------------------+------+------------+------------+----------+
| | | (1,021) | (1,722) | (2,020) |
+-------------------------------+------+------------+------------+----------+
| Non current liabilities | | | | |
+-------------------------------+------+------------+------------+----------+
| Provisions | | (75) | (110) | (116) |
+-------------------------------+------+------------+------------+----------+
| | | (75) | (1,832) | (2136) |
+-------------------------------+------+------------+------------+----------+
| | | | | |
+-------------------------------+------+------------+------------+----------+
| Total liabilities | | (1,096) | (1,832) | (2,136) |
+-------------------------------+------+------------+------------+----------+
| | | | | |
+-------------------------------+------+------------+------------+----------+
| Net assets | | 1,079 | 524 | - |
+-------------------------------+------+------------+------------+----------+
| | | | | |
+-------------------------------+------+------------+------------+----------+
| Shareholders' equity | | | | |
+-------------------------------+------+------------+------------+----------+
| Called-up share capital | | 1,455 | 1,312 | 1,312 |
+-------------------------------+------+------------+------------+----------+
| Share premium account | | 4,653 | 3,629 | 3,629 |
+-------------------------------+------+------------+------------+----------+
| Retained earnings | | (5,029) | (4,417) | (4,941) |
+-------------------------------+------+------------+------------+----------+
| Total shareholders' equity | | 1,079 | 524 | - |
+-------------------------------+------+------------+------------+----------+
Consolidated cash flow statement (unaudited)
For the six months ended 31 December 2008
+-------------------------------+------+------------+------------+----------+
| | | 6 months | 6 months | 12 |
| | | ended | ended | months |
| | | 31 | 31 | ended |
| | | December | December | 30 June |
| | | 2008 | 2007 | 2008 |
+-------------------------------+------+------------+------------+----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+-------------------------------+------+------------+------------+----------+
| Cash flow from operating | | | | |
| activities | | | | |
+-------------------------------+------+------------+------------+----------+
| Operating loss | | (78) | (573) | (1,195) |
+-------------------------------+------+------------+------------+----------+
| Depreciation | | 20 | 23 | 54 |
+-------------------------------+------+------------+------------+----------+
| Amortisation of intangible | | 170 | 122 | 245 |
| assets | | | | |
+-------------------------------+------+------------+------------+----------+
| Expenditure on intangible | | (170) | (137) | (340) |
| assets | | | | |
+-------------------------------+------+------------+------------+----------+
| Decrease/(increase) in | | 81 | (66) | (69) |
| inventories | | | | |
+-------------------------------+------+------------+------------+----------+
| Increase in trade and other | | (6) | (336) | (2) |
| receivables | | | | |
+-------------------------------+------+------------+------------+----------+
| (Decrease)/increase in trade | | (826) | 524 | 343 |
| and other payables | | | | |
+-------------------------------+------+------------+------------+----------+
| Decrease in provisions | | (41) | - | (6) |
+-------------------------------+------+------------+------------+----------+
| Interest paid | | (39) | (469) | (478) |
+-------------------------------+------+------------+------------+----------+
| Share based payment charge | | 25 | 25 | 64 |
+-------------------------------+------+------------+------------+----------+
| Taxation received | | 64 | - | 42 |
+-------------------------------+------+------------+------------+----------+
| Net cash flow from operating | | (800) | (887) | (1,342) |
| activities | | | | |
+-------------------------------+------+------------+------------+----------+
| | | | | |
+-------------------------------+------+------------+------------+----------+
| Cash flows from investing | | | | |
| activities | | | | |
+-------------------------------+------+------------+------------+----------+
| Purchase of property, plant | | - | (24) | (49) |
| and equipment | | | | |
+-------------------------------+------+------------+------------+----------+
| Interest received | | - | 552 | 558 |
+-------------------------------+------+------------+------------+----------+
| Net cash flow from financing | | - | 528 | 509 |
| activities | | | | |
+-------------------------------+------+------------+------------+----------+
| | | | | |
+-------------------------------+------+------------+------------+----------+
| Cash flows from financing | | | | |
| activities | | | | |
+-------------------------------+------+------------+------------+----------+
| Proceeds from share issue | | 1,167 | - | - |
+-------------------------------+------+------------+------------+----------+
| Decrease in money market | | - | 18,342 | 18,342 |
| investments | | | | |
+-------------------------------+------+------------+------------+----------+
| Repayment of loans | | - | (18,342) | (18,342) |
+-------------------------------+------+------------+------------+----------+
| Net cash flow from financing | | 1,167 | - | - |
| activities | | | | |
+-------------------------------+------+------------+------------+----------+
| | | | | |
+-------------------------------+------+------------+------------+----------+
| Increase/(decrease) in cash | | 367 | (359) | (833) |
| and cash equivalents | | | | |
+-------------------------------+------+------------+------------+----------+
| Cash and cash equivalents at | | 21 | 854 | 854 |
| the beginning of the period | | | | |
+-------------------------------+------+------------+------------+----------+
| Cash and cash equivalents at | | 388 | 495 | 21 |
| the end of the period | | | | |
+-------------------------------+------+------------+------------+----------+
Notes to the unaudited interim financial statements
1. Accounting policies and general information
COE Group Plc is a public limited company incorporated and domiciled in England
and Wales. The Company's ordinary shares are traded on AIM.
The interim financial report does not comprise statutory accounts within the
meaning of section 240 of the Companies Act 1985. Statutory accounts for the
year ended 30 June 2008 were approved by the Board on 22 December 2008 and
delivered to the Registrar of Companies. PricewaterhouseCoopers LLP, the COE
Group Plc's auditors, reported on those accounts under section 235 of the
Companies Act 1985. Their report was unqualified and did not contain a statement
under section 237(2) or (3) of that Act.
The Board has chosen not to subject the interim financial report to an
independent review or audit.
The interim financial report has been prepared under the historical cost
convention and in accordance with the Group's accounting policies which are
consistent with those followed in preparation of the annual report for the year
ended 30 June 2008 and disclosed therein.
A copy of this statement is available on the Company website www.coe.co.uk.
2. Earnings per share
Basic earnings per share is calculated as the loss for the period divided by the
weighted average number of shares outstanding. For diluted earnings per share,
the weighted average number of ordinary shares in issue is adjusted to assume
conversion of all potentially dilutive ordinary shares. Under IAS 33 'Earnings
per share' any potentially dilutive ordinary shares are deemed anti-dilutive in
the event that a loss has been incurred. Consequently the basic and adjusted
loss per ordinary share for the six-month period ended 31 December 2008, the
six-month period ended 31 December 2007 and the 12-month period ended 30 June
2008 are unaffected by dilution.
+-----------------------------------+--+------------+------------+--------------+
| | | 6 months | 6 months | 12 |
| | | ended | ended | months |
| | | 31 | 31 | ended |
| | | December | December | 30 June |
| | | 2008 | 2007 | 2008 |
+-----------------------------------+--+------------+------------+--------------+
| Basic loss attributable to | | GBP113,000 | GBP490,000 | GBP1,053,000 |
| shareholders | | | | |
+-----------------------------------+--+------------+------------+--------------+
| Weighted average number of shares | | 22,374,899 | 20,378,640 | 22,394,397 |
+-----------------------------------+--+------------+------------+--------------+
| Basic and diluted loss per share | | 0.5p | 2.4p | 4.7p |
+-----------------------------------+--+------------+------------+--------------+
3. Financial income and expense
+----------------------------------+---+------------+------------+----------+
| | | 6 months | 6 months | 12 |
| | | ended | ended | months |
| | | 31 | 31 | ended |
| | | December | December | 30 June |
| | | 2008 | 2007 | 2008 |
+----------------------------------+---+------------+------------+----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------+---+------------+------------+----------+
| Interest payable on loan notes | | - | (467) | (467) |
+----------------------------------+---+------------+------------+----------+
| Interest payable on bank loans | | (39) | (2) | (11) |
| and overdrafts | | | | |
+----------------------------------+---+------------+------------+----------+
| Total interest payable | | (39) | (469) | (478) |
+----------------------------------+---+------------+------------+----------+
| | | | | |
+----------------------------------+---+------------+------------+----------+
| Interest receivable on pledged | | - | 545 | 545 |
| deposit account | | | | |
+----------------------------------+---+------------+------------+----------+
| Interest receivable on cash at | | - | 7 | 13 |
| bank | | | | |
+----------------------------------+---+------------+------------+----------+
| Total interest receivable | | - | 552 | 558 |
+----------------------------------+---+------------+------------+----------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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