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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Deltron Elec. | LSE:DET | London | Ordinary Share | GB0002618410 | ORD 5P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 262.25 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
RNS Number:9419L Deltron Electronics PLC 05 June 2003 For Immediate Release 5 June 2003 DELTRON ELECTRONICS PLC INTERIM RESULTS Deltron Electronics plc ("Deltron"), the specialist European electromechanical solutions provider, announces its interim results for the six months ended 31st March, 2003. Financial Highlights: * Turnover at #31.7m (2002: #32.6m) * Gross margins at 31.3% * Profit before interest, tax, operating exceptional items and goodwill amortisation at #0.9m (2002: #1.1m) * Exceptional item of #0.3m for continued restructuring * Operating cash flow robust at #1.4m * Interim dividend maintained at 0.585p (2002: 0.585p) Business Highlights: * Book-to-bill ratio above 1 throughout first half with order book at 2.7 months of forecast sales * Franchises expanded, including Huber & Suhner, Harwin, Rafi, Alps & Toko * Design-in service continues to win market share Paul Gourmand, Chairman of Deltron commented: "It remains too early to call a turn and we are determined to use our own judgement and evidence from Deltron's performance rather than the assertions of forecasters to plan for the future. We are winning customers, supplier support and market share, but visibility remains poor." For further information, please contact: Deltron Electronics plc Tel: 01638 561156 Christopher Sawyer, Derek O'Neill Buchanan Communications Tel: 020 7466 5000 Tim Anderson/Bobbie Swanson CHAIRMAN'S STATEMENT Introduction The desire to call the turn in the electronic components cycle is almost overwhelming. After two years of unparalleled decline, around 40%, the danger is that any good news is seen as the beginning of the recovery. Turnover in the first half was 3% below last year. However, turnover in Q2 was 2% better than the corresponding period last year, a pleasant reversal of Q1 which was 8% below last year. It is too early to say if this trend will continue. In our AGM statement in February we said that reading the market has never been more difficult and this continues. Despite the poor first quarter, our book to bill ratio was above 1 throughout our first half and our order book has increased from #13.7m at 1 October 2002 to #15.7m at 31 March 2003 which represents 2.7 months of forecast sales. All these factors would normally point to buoyant trading and, indeed, our daily sales rate has increased every month since October. The conundrum in looking forward is that orders or bookings in the first quarter did not turn into billings as would normally be expected. The position improved in the second quarter, but feels too fragile and too soon for the Board to be confident of a trend. Deltron has always been second half loaded, but the poor first quarter means Deltron produced a disappointing result in the first half. Given the lack of visablity and fragile economic climate the outcome for the year is too early to call. Market and Business Development Throughout 2002, Deltron pursued the approval of manufacturers to extend the sale of their products throughout our European network. This has been a great success. We have also been very successful in gaining new franchises for our network, which has increased from six countries in 2001 to nine after a series of acquisitions. We expect to continue winning new franchises during the coming 12 months. Customers continue to be attracted by our design-in service. It is the reason why, as a specialist distributor, we have an exceptionally long order book. We continue to win market share, partly due, we believe, to service which has been assisted by an expanding product range. Prices remain relatively stable, an attribute of our selected area of activity - electro-mechanical components. However, cost savings from the merging of two manufacturing sites have materialised more slowly than we had hoped, duplication of effort while new equipment was still operating at sub-optimal levels depressed margins. Overall, our margins were down by 1% to 31.3% - still a level far above that enjoyed by most distributors in other parts of the electronic components market. We said in February, customers are 'calling off' orders in smaller batches than before and we believe that this is an industry trend at this stage of the economic cycle. This increases our activity and overhead levels for a lower return. It is to be expected in a risk-averse environment. It also adds uncertainty and decreases clarity, but is just another factor in a challenging part of the cycle. Financial Results In the six months to 31 March 2003, turnover was #31.7m, 3% below last year. The gross margin was 31.3% compared with 32.6% for the first half of last year, as mentioned above this shortfall arises in the Manufacturing Division. Overheads before operating exceptional items were #9.2m, compared with #9.6m for the same period last year. The #0.2m profit on the sale of properties is for the sale and leaseback of the UK Distribution site. The loss after taxation has reduced from #1.0m to #0.4m in the first six month of the current year. The adjusted earnings per share, excluding goodwill and operating exceptional items, were 0.7p compared with 0.8p last year. The dividend has been kept at last year's level of 0.585p. Prospects Two years of decline with harsh economic and industry conditions seems to have flattened out. A poor first quarter was followed by three months, which met our expectations. Book to bill, order book and the success of our business model as demonstrated by customers' enthusiasm for our design-in approach, are all encouraging and have resulted in our increasing market share. It remains too early to call a turn and we are determined to use our own judgement and evidence from Deltron's performance rather than the assertions of forecasters to plan for the future. We are winning customers, supplier support and market share, but visibility remains poor. P R Gourmand Chairman 4 June 2003 GROUP PROFIT AND LOSS ACCOUNT (unaudited) For 6 Months ended 31 March 2003 2003 2003 2002 2002 2002 Year Before Goodwill Total Before Goodwill Total ended Goodwill and goodwill and 30 Sep. operating 2002 and and operating operating exceptional operating exceptional exceptional items items exceptional items items Note #000 #000 #000 #000 #000 #000 #000 Turnover 31,709 - 31,709 32,622 - 32,622 65,496 Cost of Sales (21,788) - (21,788) (21,974) - (21,974) (44,184) Gross profit 9,921 - 9,921 10,648 - 10,648 21,312 Operating expenses (9,193) (719) (9,912) (9,582) (1,326) (10,908) (20,750) Operating profit / 728 (719) 9 1,066 (1,326) (260) 562 (loss) Profit on sale of 188 188 - - 105 properties Profit / (loss) on 916 (719) 197 1,066 (1,326) (260) 667 ordinary activities before interest Interest payable (618) - (618) (625) - (625) (1,321) Interest receivable 10 - 10 19 - 19 46 (Loss) / profit on 308 (719) (411) 460 (1,326) (866) (608) ordinary activities before tax Taxation 3 (107) 87 (20) (237) 118 (119) (60) (Loss) / profit on 201 (632) (431) 223 (1,208) (985) (668) ordinary activities after tax Dividends (172) - (172) (165) - (165) (515) (Loss) / profit 29 (632) (603) 58 (1,208) (1,150) (1,183) retained for the financial period Loss per share - (basic 4 (1.5)p (3.5)p (2.4)p and diluted) Adjusted earnings per 4 0.7p 0.8p 3.5p share - basic Dividends per share 0.585p 0.585p 1.755p STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (unaudited) For 6 Months ended 31 March 2003 2002 Year ended 30 Sep 2002 #000 #000 #000 (Loss) for the period (431) (985) (668) Exchange differences (316) 269 125 Total Gains and Losses recognised during period (747) (716) (543) MOVEMENT IN SHAREHOLDERS' FUNDS (unaudited) For 6 Months ended 31 March 2003 2002 Year ended 30 Sep 2002 #000 #000 #000 Opening shareholders' funds 14,760 15,117 15,117 Loss for the period (603) (1,150) (1,183) Share capital issued 76 - 701 Exchange differences (316) 269 125 Decrease in shareholders' funds for the period (843) (881) (357) Closing shareholders' funds 13,917 14,236 14,760 GROUP BALANCE SHEET (unaudited) As at 31 March 2003 2002 As at 30 Total Total Sep. 2002 #000 #000 #000 Fixed Assets: Tangible assets 3,378 5,185 5,157 Intangible assets 15,254 16,057 15,608 18,632 21,242 20,765 Current Assets: Stocks 8,934 9,422 8,003 Debtors 17,400 15,941 15,328 Cash at bank and in hand 1,774 2,419 2,389 28,108 27,782 25,720 Creditors: Amounts falling due within one year (18,839) (17,714) (17,117) Net Current Assets 9,269 10,068 8,603 Total assets less current liabilities 27,901 31,310 29,368 Creditors: Amounts falling due after more than one year (12,839) (15,946) (13,490) Provision for liabilities and charges (1,145) (1,128) (1,118) 13,917 14,236 14,760 Capital and Reserves: Called up share capital 1,471 1,407 1,466 Reserves 12,446 12,829 13,294 Equity Shareholders' funds 13,917 14,236 14,760 GROUP CASH FLOW STATEMENT (unaudited) For 6 Months ended 31 March 2003 2002 Year Total Total ended 30 Sep. 2002 Note #000 #000 #000 Cash flow from operating activities 5 1,357 1,918 4,739 Returns on investment and servicing of finance (606) (584) (1,257) Taxation (318) (1,071) (1,401) Capital expenditure (net of proceeds) 2 (436) (543) Acquisitions 6 (542) (465) (750) Equity dividend paid (345) (562) (731) Cash flow before financing (452) (1,200) 57 Financing (1,233) (1,634) (2,787) Change in Cash: (1,685) (2,834) (2,730) NOTE TO THE GROUP CASH FLOW STATEMENT (unaudited) Reconciliation of cash flow to movement in net debt: Opening net debt (14,747) (15,163) (15,163) Change in Cash: (1,685) (2,834) (2,730) Cash flow from change in debt 1,309 1,634 3,488 Change in net debt (376) (1,200) 758 Inception of finance leases - (47) (236) Amortisation of issue costs (21) (16) (35) Exchange differences (506) 91 (71) Movement in net debt (903) (1,172) 416 Closing net debt (15,650) (16,335) (14,747) INDEPENDENT REVIEW REPORT TO DELTRON ELECTRONICS PLC Introduction We have been instructed by the company to review the financial information for the six months ended 31 March 2003, which comprises the profit and loss account, the statement in total recognised gains and losses, the balance sheet, the cash flow statement, the reconciliation of cash flow to movement in net debt, and related notes 1 to 7 together with the movement in shareholder's funds. We have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information. This report is made solely to the company in accordance with Bulletin 1999/4 issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusions we have formed. Directors' responsibilities The interim report, including the financial information contained therein, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim report in accordance with the Listing Rules of the Financial Services Authority which require that the accounting polices and presentation applied to the interim figures are consistent with those applied in preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed. Review work performed We conducted our review in accordance with the guidance contained in Bulletin 1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A review consists principally of making enquiries of group management and applying analytical procedures to the financial information and underlying financial data and, based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with United Kingdom auditing standards and therefore provides a lower level of assurance than an audit. Accordingly, we do not express an audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 31 March 2003. Chartered Accountants Deloitte & Touche Cambridge 4 June 2003 NOTES TO THE INTERIM ACCOUNTS 1. Basis of preparation The financial information for the year ended 30 September 2002 is derived from the statutory accounts filed with the Registrar of Companies. The auditors' report on the statutory accounts was unqualified and did not contain a statement under Section 237 of the Companies Act 1985. The interim accounts do not comprise statutory accounts within the meaning of Section 240 of the Companies Act 1985 but have been reviewed by the Auditors whose report is on page 8. 2. Goodwill and Operating exceptional items Included within administration costs is a charge of #438,000 (2002: #432,000) in respect of the amortisation of goodwill for the period. The Operating exceptional item of #281,000 is predominantly for the closure and relocation of the Birmingham Sales office of Deltron UK Ltd. This is relieved by a tax credit of #87,000. The comparative figure in the 2001 interim was #894,000, before a tax credit of #118,000, in respect of the closure and relocation of elements of the activity of Deltron Hawnt Ltd and for the provision for the same of Deltron EMCON Ltd. 3. Taxation The taxation charge is based on the estimated effective rate for the year ending 30 September 2003. 4. Earnings per share Earnings per share have been calculated using Financial Reporting Standard 14 (FRS 14). The calculation of earnings per share, for the half-year is based on the loss attribute to equity shareholders of #431,000 (2002: loss of #985,000) and 29,383,494 (2002: 28,149,522) shares being the daily average of the number of shares in issue during the period. FRS 14 requires presentation of diluted EPS when a company could be called upon to issue shares that would decrease net profit or increase net loss per share. For a loss making company with outstanding share options, net loss per share would only be increased by the exercise of out-of-the-money options. Since it seems inappropriate to assume that option holders would act irrationally, no adjustment has been made to dilute EPS for out-of-the-money share options and there are no other diluting future share issues, diluted EPS equals basic EPS. An adjusted earnings per share value is presented after adding back the amortisation of goodwill and the operating exceptional item, net of taxation of #632,000 (2001: #1,208,000). This has been presented in order to provide comparability with other companies. 5. Net cash flow from operating activities Year ended 2003 2002 30 Sept 2002 #000 #000 #000 Operating profit/(loss) 197 (260) 667 Release of government grant (104) (16) (84) Amortisation of issue costs 21 16 14 Amortisation of goodwill 438 432 864 Depreciation 522 542 1,052 (Profit)/loss on disposal of fixed assets (158) 1 (105) Changes in Stocks (466) 1,306 2,373 Debtors 855 1,202 2,698 Creditors 52 (1,305) (2,741) 1,357 1,918 4,739 6. Acquisitions The cash outflow shown of #542,000 relates primarily to the payment of deferred and contingent consideration in respect of the acquisition made in November 1999 of the German distribution business C & K Components GmbH. 7. Company information Copies of this statement are being sent to all shareholders and are also available from the Company Secretary, Deltron Electronics plc, Suffolk House, Fordham Road, Newmarket, Suffolk CB8 7AA. This information is provided by RNS The company news service from the London Stock Exchange END IR ILFVDRFISIIV
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