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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Densitron Tech. | LSE:DSN | London | Ordinary Share | GB0002637394 | 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% | 10.75 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMDSN
RNS Number : 9566E
Densitron Technologies PLC
16 April 2014
DENSITRON TECHNOLOGIES PLC
PRELIMINARY UNAUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2013
Densitron Technologies plc ("Densitron" or the "Company" or the "Group"), the designer, developer and distributor of electronic displays announces its preliminary unaudited results for the year ended 31 December 2013. Ø Profit from continuing operations of GBP0.1 million (2012: GBP0.6 million). Ø Dividends for the year totaling 0.1p per share (2012: 0.3p per share). Ø Gross margin decreased to 27.3% (2012: 28.6%) reflecting the increasing competition for standard products. Ø Settlement of lease claim in Newcastle. Ø Wirelessly networked Epaper displays (Densipaper) introduced.
Jan G Holmstrom, Chairman of Densitron, commented:
"2013 was an extremely difficult year but having now settled the claim on the property in Newcastle and addressed the cost base of the Group I believe that the business is well placed to grow profitably in the coming year."
Enquiries:
Densitron Westhouse Securities Grahame Falconer / Tim Pearson Martin Davison Tel: 0207 648 4200 Tel: 020 7601 6100
Chairman's statement
2013 was a challenging and ultimately disappointing year. A combination of issues has resulted in lower than forecast sales and consequently a lower profit for the year. In addition the Company settled the claim made against it in respect of the lease of a property occupied by a former subsidiary in Newcastle and this caused the Group to make a loss for the year.
Trading results
Revenues from the operating business for the year were disappointing with a reduction from GBP22.6m in 2012 to GBP20.0m in 2013. This reduction, together with a reduction in the gross margin percentage, resulted in the gross profit falling from GBP6.5m in 2012 to GBP5.5m in 2013. Despite a reduction in administrative expenses the operating profit for the year fell from GBP0.6m in 2012 to GBP0.1m in 2013. Together with the exceptional loss incurred as a result of the property in Newcastle the Group has incurred a loss before taxation of GBP0.5m compared with a profit of GBP0.5m in 2012.
There were two main areas of the displays business that caused the disappointing 2013 operating result - the UK and Japan.
Firstly, in the UK it was anticipated that the year would deliver an increase in business and at the time of putting the operating forecasts together the management were confident that the numbers could be achieved. However a combination of factors during the year resulted in substantially lower than forecast revenues:
-- There were delays in bringing internal developments to market; -- Revenues from internally developed business have taken longer to achieve; -- New projects have taken longer to get to mass production; and -- New markets in which the business has opened offices have taken longer to deliver revenues.
Secondly, during 2013 the Japanese yen has fallen in value against the US$ by approximately 22% which has resulted in a substantial increase in the cost of purchases in our Japanese subsidiary. As the subsidiary sells into the local market in Japanese yen the gross margin on sales has been negatively impacted resulting in a substantial fall in profit for the year.
As a consequence of the disappointing result the Board has reviewed its strategy for the Business and has concluded that it remains sound in the medium to long term. However, in the short term it considers that a review of how the business is structured should be carried out and the cost structure of the business reviewed further.
Land at Blackheath
The Group owns a piece of land at Blackheath, London, retained from the larger sports ground we previously owned, the majority of which was sold to Greenwich Council in 2006. It is designated as Metropolitan Open Land which was the primary reason planning permission was refused when an application was made in 2010. The Council is undertaking a review of its Core Strategy in relation to all open spaces under its designation and as part of this process we are seeking to have the land re-designated to make future development possible. This process has been protracted and it is unlikely that it will be concluded within the next 12 months. The Board also continues to investigate other options to enhance or realise value from the land.
Newcastle property
As has previously been communicated, the Company was issued with a writ in early 2012 by the landlord of a property in Newcastle previously occupied by a former subsidiary of the Company. In my report last year I advised shareholders that the Board considered that the most appropriate way forward was to achieve a negotiated settlement with the Landlord. After lengthy discussions in September 2013 the Company reached a settlement with the Landlord and, while it was agreed that the details of that settlement remained confidential, this agreement has unfortunately resulted in the Group being loss making for the year. The out of court settlement means that the Company is now free to market the property and the Agents that have been appointed are confident that this can be achieved during this year. This will mitigate future costs until the lease expires in 2023.
Shareholders and dividends
Despite the difficulties experienced in 2013 the Directors remain committed to turn the business around and deliver a return to the Company's Shareholders both by increasing shareholder value and paying dividends.
While the Board remains committed to returning profits to shareholders by way of dividends, I do not consider that it is appropriate considering the circumstances to propose a final dividend for the year (2012: 0.1p per share). An interim dividend of 0.1p per share (2012: 0.2p per share) was paid to shareholders and at that point in the year we felt confident that the second half would deliver a substantially higher return than it ultimately achieved. The total dividend payment for the year will, therefore, remain 0.1p per share (2012: 0.3p per share).
Outlook
I believe that the outlook for the business remains positive despite the difficulties the Group has encountered over the past 12 months.
The Board of Directors has identified several areas of the business and its processes that require attention and are in the process of implementing the necessary changes that will enhance the business going forward.
The first quarter of the year has started promisingly with a positive impact from some of the changes that were made during the final quarter of 2013 and the beginning of 2014. This has enabled the business to be operating ahead of its internal forecast and the result achieved in the first quarter in 2013. The pipeline of new business remains fairly strong and we are receiving good orders from our existing and new customers.
Richard Lane, who was appointed as a non-executive director in 2005, retired from the Board in March 2014. I would like to thank Richard for the support he has given to the Company and wish him well in his retirement and continued work as President of Diabetes UK.
I would also like to thank the Directors and staff throughout the Group for their continued hard work and dedication during the year. 2013 was a difficult year for the business but I am confident that it is on the right track and we will see the results of this coming through during 2014.
Finally I would like to thank the Company's Shareholders for their continued support.
Jan G Holmstrom
Chairman
Densitron Technologies plc Consolidated income statement For the year ended 31 December 2013 2013 2013 2013 2012 Group Exceptional Total Total GBP000 GBP000 GBP000 GBP000 Revenue 20,047 - 20,047 22,612 Cost of sales (14,584) - (14,584) (16,139) --------- ------------ --------- --------- Gross profit 5,463 - 5,463 6,473 Other operating income 3 - 3 12 Distribution costs (53) - (53) (69) --------- ------------ --------- --------- Administrative expenses (5,271) - (5,271) (5,851) Exceptional costs in respect of lease settlement - (593) (593) - --------- ------------ --------- --------- (5,271) (593) (5,864) (5,851) --------- ------------ --------- --------- Profit/(loss) from operations 142 (593) (451) 565 Financial income - - - - Financial expenses (69) - (69) (45) --------- ------------ --------- --------- Profit/(loss) before tax 73 (593) (520) 520 Income tax expenses (199) - (199) (276) --------- ------------ --------- --------- (Loss)/profit for the year (126) (593) (719) 244 --------- ------------ --------- --------- Attributable to: Equity holders of the parent (112) (593) (705) 248 Non-controlling interests (14) - (14) (4) --------- ------------ --------- --------- (126) (593) (719) 244 --------- ------------ --------- --------- Basic and diluted (loss)/earnings per share (0.16)p (0.86)p (1.02)p 0.36p --------- ------------ --------- --------- Densitron Technologies plc Consolidated statement of comprehensive income For the year ended 31 December 2013 2013 2012 GBP000 GBP000 (Loss)/profit for the year (719) 244 -------- ------- Other comprehensive expense Items that may be reclassified subsequently to profit or loss Exchange losses on translation of foreign operations (358) (483) Total other comprehensive expense (358) (483) -------- ------- Total comprehensive expense for the year (1,077) (239) -------- ------- Total comprehensive expense attributable to: Owners of the parent (1,062) (234) Non-controlling interests (15) (5) -------- ------- (1,077) (239) -------- ------- Densitron Technologies plc Consolidated Statement of Financial Position At 31 December 2013 2013 2012 GBP000 GBP000 Non current assets Property, plant and equipment 765 839 Goodwill 143 143 Other intangible assets 582 388 Deferred tax assets 7 29 ------- ------- 1,497 1,399 ------- ------- Current assets Inventories 1,424 1,282 Trade and other receivables 3,895 5,132 Income tax recoverable 125 116 Cash and cash equivalents 848 1,577 ------- ------- 6,292 8,107 ------- ------- Total assets 7,789 9,506 ------- ------- Current liabilities Borrowings and overdrafts 1,764 2,132 Trade and other payables 3,121 3,234 Current tax payable 34 62 Provisions 9 9 ------- ------- 4,928 5,437 ------- ------- Non current liabilities Borrowings 83 134 Trade and other payables 81 - Provisions 111 117 Deferred tax liabilities 37 54 ------- ------- 312 305 ------- ------- Total liabilities 5,240 5,742 ------- ------- 2,549 3,764 ------- ------- Equity Share Capital 697 697 Retained earnings 1,917 2,750 Special reserve 87 97 Revaluation reserve 450 450 Translation reserve (617) (260) ------- ------- Equity attributable to shareholders of Densitron 2,534 3,734 Non-controlling interests 15 30 Total equity 2,549 3,764 ------- ------- Densitron Technologies plc Consolidated Cash Flow Statement For the year ended 31 December 2013 2013 2012 GBP000 GBP000 Cash flows from operating activities (Loss)/profit before taxation (520) 520 Adjustments for: Depreciation 117 82 Amortisation 79 27 Net finance expense 68 45 (256) 674 Change in inventories (187) (17) Change in trade and other receivables 988 (897) Change in trade and other payables (20) 813 Change in provisions - (122) ------- ------- 525 451 Income tax paid (218) (388) ------- ------- Net cash from operating activities 307 63 ------- ------- Cash flows from investing activities Deferred consideration on past disposal of discontinued operations - 74 Payment for intangible asset (276) (243) Acquisition of property, plant and equipment (50) (126) ------- ------- Net cash used in investing activities (326) (295) ------- ------- Cash flows from financing activities Inception of new loans - 237 Repayment of borrowings (169) (24) Interest paid (69) (45) Change in invoice discounting creditor 261 (14) Change in letters of credit (626) (71) Dividend paid to the owners of the Company (138) (415) Net cash used in financing activities (741) (332) ------- ------- Net (decrease)/increase in cash and cash equivalents (760) (564) Cash and cash equivalents at 1(st) January 961 1,616 Effect of exchange rate fluctuations on cash held (90) (91) ------- ------- Cash and cash equivalents at 31(st) December 111 961 ------- -------
Densitron Technologies plc
Statement of Changes in Shareholder's Equity
For the year ended 31 December 2013
Share Translation Special Revaluation Retained Total Non-controlling Total Capital reserve reserve reserve earnings attributable interest Equity to equity holders of parent GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 Balance at 1(st) January 2012 697 223 107 450 2,907 4,384 35 4,419 Profit/(loss) for the year - - - - 248 248 (4) 244 Other total comprehensive income - (483) - - - (483) (1) (484) Payment of dividends - - - - (415) (415) - (415) Transfer from special reserve - - (10) - 10 - - - -------- ------------ --------- ------------ --------- ------------- ---------------- -------- Balance at 31(st) December 2012 697 (260) 97 450 2,750 3,734 30 3,764 -------- ------------ --------- ------------ --------- ------------- ---------------- -------- Balance at 1(st) January 2013 697 (260) 97 450 2,750 3,734 30 3,764 Profit/(loss) for the year - - - - (705) (705) (14) (719) Other total comprehensive income - (357) - - - (357) (1) (358) Payment of dividends - - - - (138) (138) - (138) Transfer from special reserve - - (10) - 10 - - - -------- ------------ --------- ------------ --------- ------------- ---------------- -------- Balance at 31(st) December 2013 697 (617) 87 450 1,917 2,534 15 2,549 -------- ------------ --------- ------------ --------- ------------- ---------------- -------- Densitron Technologies plc Notes to the Consolidated Financial Statements For the year ended 31 December 2013 1. Basis of preparation The financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively IFRSs) issued by the International Accounting Standards Board (IASB) as adopted by the European Union (Adopted IFRSs) and are in accordance with IFRS as issued by the IASB. The accounting policies applied are consistent with those set out in the financial statements of Densitron Technologies plc for the year ended 31 December 2012. The financial information in the announcement is unaudited and does not constitute the company's statutory accounts for the years ended 31 December 2013 or 2012. The financial information for the year ended 31 December 2012 is derived from the statutory accounts for that year, which were prepared under IFRSs as adopted by the EU, which have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their reports and did not contain statements under the Companies Act 2006. The statutory accounts for the year ended 31 December 2013, prepared in accordance with IFRSs as adopted by the EU, will be finalised on the basis of the financial information presented by the directors in this preliminary announcement and will be delivered to the Registrar of Companies following the company's annual general meeting. 2. Exceptional item The exceptional item relates to costs associated with the settlement of a writ relating to a property in Newcastle previously occupied by a former subsidiary of the Company. As part of the settlement it was agreed that the details of the settlement would remain confidential but the exceptional item incorporates all costs incurred to date relating to the settlement of the claim. 3. Financial expense 2013 2012 GBP000 GBP000 Financial expenses Bank borrowings 54 35 Invoice discounting charge 15 10 69 45 ------------- ------------- 4. Business and geographical segments The chief operating decision maker in the organization is made up of an Executive Committee comprising the Executive Directors and Chairman, they have determined the operating segments detailed within this report and on which the business is managed. The Group is managed by the geographical location of its subsidiaries and resources are allocated as required on this basis: Ø Europe - The European market, being so diverse, is serviced by subsidiaries based in four locations: Ø UK - the UK is responsible for business conducted in the UK, management of the Group's distribution network and sales into other locations where the Group does not have a physical presence. The UK business contributed 23% (2012: 27%) to Group revenues. Ø France - the subsidiary in France is responsible for business conducted in France and with French customers whose manufacturing operations may be located elsewhere in the world. The French business contributed 10% (2012: 11%) to Group revenues. Ø Nordic - Densitron Nordic is the Group's subsidiary located in Finland and servicing business locally along with Sweden and customers located in the Baltic region. The Finnish business contributed 1% (2012: 2%) to Group revenues. Ø Germany - Densitron Deutschland is the Group's subsidiary based in Germany. It is responsible for business conducted in Germany, Switzerland and Austria and through the Group's distributor based in Germany. The German business contributed 9% (2012: 9%) to Group revenues. In total the European region represented the largest part of the business contributing 43% (2012: 49%) to Group revenues. Ø US - the US segment is responsible for business conducted in the US, Canada and Central and South America. It represents 41% (2012: 35%) of the Group total revenues. Ø Asia - The Asian segment is made up of subsidiaries located in Japan and Taiwan. Ø Japan - Densitron Japan is responsible for sales into Japan. It contributed 14% (2012: 13%) to Group revenues. Ø Taiwan - Densitron Asia is the Group's subsidiary located in Taiwan. It is primarily a facilitating function for the rest of the Group managing suppliers located in Taiwan and China. It contributed 2% (2012: 3%) to Group revenues. Inter-segment transfer pricing is based on the level of work carried out and the risk encountered by each party in order to make a third party sale. UK France Finland Germany US Japan Taiwan Total GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 2013 Revenue Total 5,963 2,042 352 1,733 8,351 2,796 4,785 26,022 Intercompany (1,473) (57) (54) - (64) - (4,327) (5,975) -------- -------- -------- -------- -------- -------- -------- --------- Revenue from external customers 4,490 1,985 298 1,733 8,287 2,796 458 20,047 -------- -------- -------- -------- -------- -------- -------- --------- Profit/(loss) before tax (61) 26 (70) 55 660 136 (282) 464 -------- -------- -------- -------- -------- -------- -------- --------- Balance Sheet Assets 1,700 729 87 642 2,494 1,047 420 7,119 Liabilities (1,369) (225) (19) (38) (1,207) (195) (809) (3,862) -------- -------- -------- -------- -------- -------- -------- --------- Net assets 331 504 68 604 1,287 852 (389) 3,257 -------- -------- -------- -------- -------- -------- -------- --------- Other Interest payable 37 3 - - 9 1 - 50 Capital expenditure - Property, plant and equipment - 17 1 - 14 8 9 49 - Depreciation 1 9 1 1 67 12 23 114 - Capitalised development expenditure 128 - - 62 64 - 22 276 - Amortisation 32 - - 4 36 - 2 74 -------- -------- -------- -------- -------- -------- -------- --------- UK France Finland Germany US Japan Taiwan Total GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 2012 Revenue Total 7,696 2,513 591 2,140 8,033 2,911 6,162 30,046 Intercompany (1,565) (78) (74) (44) (63) - (5,610) (7,434) -------- -------- -------- -------- -------- -------- -------- --------- Revenue from external customers 6,131 2,435 517 2,096 7,970 2,911 552 22,612 -------- -------- -------- -------- -------- -------- -------- --------- Profit/(loss) before tax (13) 76 (20) 69 656 331 (97) 1,002 -------- -------- -------- -------- -------- -------- -------- --------- Balance Sheet Assets 2,351 791 187 749 2,307 1,333 1,074 8,792 Liabilities (1,937) (236) (47) (109) (1,066) (210) (1,314) (4,919) -------- -------- -------- -------- -------- -------- -------- --------- Net assets 414 555 140 640 1,241 1,123 (240) 3,873 -------- -------- -------- -------- -------- -------- -------- --------- Other Interest payable 26 5 - - 7 2 - 40 Capital expenditure - Property, plant and equipment - 10 - 1 26 29 60 126 - Depreciation 1 4 1 1 63 7 - 77 - Capitalised development expenditure 29 - - 19 185 - 10 243 - Amortisation 27 - - - - - - 27 -------- -------- -------- -------- -------- -------- -------- --------- Reconciliation of reportable segments, profit and loss, assets and liabilities to the Group's corresponding amounts: 2013 2012 GBP000 GBP000 (Loss)/profit after income tax expense Total profit for reporting segments 464 1,002 Costs associated with head office (391) (482) Exceptional items (593) - Income tax expenses (199) (276) ------- --------------- (Loss)/profit after income tax expense (719) 244 ------- --------------- 2013 2012 GBP000 GBP000 Assets Total assets for reportable segments 7,119 8,792 Assets attributable to Head Office 171 215 Land at Blackheath 499 499 Group assets 7,789 9,506 ------- --------------- Liabilities Total liabilities for reportable segments 3,862 4,919 Liabilities attributable to Head Office 1,378 823 ------- --------------- Group liabilities 5,240 5,742 ------- ---------------
The analysis of the Group's segmental information by geographical location is:
External revenue Non current Capital expenditure by location assets by location by location of customers of asset of assets 2013 2012 2013 2012 2013 2012 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 Total operations UK 2,197 2,549 708 615 130 30 France 1,650 2,114 32 24 17 10 Finland 185 517 8 9 1 - Germany 1,242 1,848 177 119 62 20 Portugal 37 785 - - - - Italy 362 428 - - - - Other European 973 824 - - - - USA 6,347 6,443 446 497 78 211 Canada 925 990 - - - - Other Americas 88 15 - - - - Japan 1,768 2,206 27 36 8 29 Taiwan 399 557 99 99 31 69 Malaysia 380 335 - - - - China 1,784 1,736 - - - - Other Asia 1,651 1,099 - - - - Tunisia - - - - - - Other Rest of the world 59 166 - - - - --------- -------- ---------- ---------- ---------- ---------- 20,047 22,612 1,497 1,399 327 369 --------- -------- ---------- ---------- ---------- ---------- 5. Tax expense 2013 2012 GBP000 GBP000 Current tax expense UK corporation tax and income tax of overseas operations on profits for the year 175 294 Adjustments for (over)/under provision in prior periods 20 11 -------- ------- 195 305 Deferred tax expense Origination and reversal of temporary differences 4 (29) -------- ------- Total tax charge 199 276 -------- ------- The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the UK applied to profits for the year are as follows: 2013 2012 GBP000 GBP000 (Loss)/profit before tax (520) 520 -------- ------- Expected tax charge based on the standard rate of corporation tax in the UK of 23% (2012: 24%) (120) 125 Losses carried forward 214 99 Disallowed expenses 10 28 Non taxable income (2) - Movement in unprovided deferred tax 14 - assets Utilisation of tax losses brought forward (13) (66) Adjustments for overseas rate 76 79 Adjustment to prior years tax charge 20 11 -------- ------- 199 276 -------- ------- 6. Earnings per share The earnings and weighted average number of ordinary shares used in the calculation of earnings per share are as follows. 2013 2012 GBP000 GBP000 Profit attributable to ordinary shareholders (705) 248 2013 2012 Number Number Weighted average number of ordinary shares Issued ordinary shares at 1(st) January 69,669,106 69,669,106 Effect of purchase of Treasury shares on 23 October 2008 (500,000) (500,000) ------------- -------------- Weighted average number of ordinary shares at 31 December 69,169,106 69,169,106 ------------- -------------- 7. Notes supporting the cash flow statement Cash and cash equivalents for the purposes of the cash flow statement comprises: 2013 2012 GBP000 GBP000 Cash at bank and in hand 848 1,577 Bank overdrafts (737) (616) ------- ------- Cash and cash equivalents at 31 December 2013 111 961 ------- -------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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