Half Yearly Report

 

TIDMDSN 
 
RNS Number : 5932Y 
Densitron Technologies PLC 
07 September 2009 
 

Densitron Technologies plc 
Unaudited Interim Results 
 
 
 
 
Densitron Technologies plc ("Densitron" or the "Company" or the "Group") is 
pleased to announce its unaudited interim results for the six months ended 30th 
June 2009. 
 
 
 
 
Highlights 
  *  Revenue decreased by 12% from GBP8.3m in 2008 to GBP7.3m in 2009. 
  *  Orders booked in the period decreased by 39.4% from GBP9.9m in 2008 to GBP6.0m 
  in 2009. 
  *  A decrease in the total orderbook of GBP1.9m since 31 December 2008 from 
  GBP10.4m to GBP8.5m at 30 June 2009. 
  *  Net debt reduced by GBP0.7m from GBP1.9m at 31 December 2008 to GBP1.2m at 30 
  June 2009. 
  *  Cost reduction program implemented in the first half which is expected to aid 
  profitability in the second half. 
 
 
 
 
 
 
 
 
 
Financial Highlights on continuing operations 
 
 
+---------------------------+---------------------------+---------------------------+ 
|                           |              6 months to  |              6 months to  | 
|                           |            30th June 2009 |            30th June 2008 | 
|                           |                 Unaudited |                 Unaudited | 
|                           |                           |                           | 
+---------------------------+---------------------------+---------------------------+ 
| Revenue                   |                  GBP7.25m |                  GBP8.29m | 
|                           |                           |                           | 
+---------------------------+---------------------------+---------------------------+ 
| (Loss)/profit from        |                GBP(0.14)m |                  GBP0.16m | 
| operations                |                           |                           | 
|                           |                           |                           | 
+---------------------------+---------------------------+---------------------------+ 
| (Loss)/profit before      |                GBP(0.19)m |                  GBP0.08m | 
| taxation                  |                           |                           | 
|                           |                           |                           | 
+---------------------------+---------------------------+---------------------------+ 
| (Loss)/earnings per share |                   (0.28)p |                     0.01p | 
|                           |                           |                           | 
+---------------------------+---------------------------+---------------------------+ 
| Gearing                   |                       17% |                       32% | 
|                           |                           |                           | 
+---------------------------+---------------------------+---------------------------+ 
| Orderbook                 |                  GBP8.50m |                  GBP9.00m | 
|                           |                           |                           | 
+---------------------------+---------------------------+---------------------------+ 
 
 
 
 
Enquiries: 
 
 
Densitron 
Grahame Falconer / Tim Pearson 
Tel: [phone] 
 
 
Hanson Westhouse Limited 
Tim Metcalfe / Martin Davison 
Tel: [phone] 
 
 
 
 
 
 
  Chairman's Statement 
 
 
With the current recession in mind we knew that it was going to be a difficult 
year. We saw signs in the latter part of 2008 that the US business was slowing 
down but little evidence through the remainder of the group. However, we have 
seen a reduction in orders received through the first half of the year across 
the Group as customers have been holding surplus inventory and have not 
therefore needed to place new orders. We have also seen customers with "call 
off" orders deferring "call off" until later in the year and other customers 
trying to delay previously confirmed orders. Against this background it was 
inevitable that the results for the first half were going to suffer and we have 
seen a reduction in revenue from GBP8.3m for the same period in 2008 to GBP7.3m 
in 2009. This has led to a reduction in gross profit from GBP2.6m in 2008 to 
GBP2.5m in 2009. We believe that we have turned the corner and June was the 
Company's best month in terms of orders booked since November 2008. 
 
 
Administrative expenses have increased from GBP2.5m for the same period in 2008 
to GBP2.7m in 2009. It should be noted that converting the administrative 
expenses incurred in 2008 at the exchange rates used in 2009 they would have 
been GBP2.9m. In view of the reduced level of orders received in the first half 
a number of cost saving measures have been undertaken and the full extent of 
these will be seen in the second half of the year. 
 
 
We have further reduced the level of net debt within the Group from GBP1.9m at 
31 December 2008 to GBP1.2m at 30 June 2009 with a consequential reduction in 
the level of gearing from 24% at the end of 2008 to 17% at the end of June 2009. 
 
 
Operational review 
The Group's operations are primarily the design, development, marketing and 
selling of electronic displays, the electronics that drive them and the plastics 
that house them. 
 
 
European business - The European business has had mixed fortunes during the 
first half of 2009. The UK and Nordic regions have been significantly adversely 
affected by the recession while France has managed to achieve a significant 
growth in order input compared with the same period in 2008 and Germany has 
achieved increasing sales revenues. It has been necessary to reduce the level of 
administrative expenses in the UK and delay the planned expansion into certain 
geographical locations that are currently served by distributors. The cost 
savings will be seen in the second half of the year. 
 
 
Overall, the European businesses achieved orders of GBP3.8m in the first half of 
2009 compared with GBP6.1m in the same period in 2008. Sales revenue was GBP3.8m 
compared with GBP4.5m in the first half of 2008 and gross profit was GBP1.3m 
compared with GBP1.4m in 2008. 
 
 
The European subsidiaries continue to have a significant order pipeline which 
will underpin the recovery in the second half of the year. 
 
 
US business - The US business began to see a slowdown in order input during the 
final quarter of 2008 which has continued into 2009. It was clear that despite a 
good first quarter, revenues would not be able to be sustained for the remainder 
of the year and consequently steps were taken to make significant cost savings. 
As a result of these actions we are confident that the US business will be able 
to generate a return to the Group for the year, albeit on reduced revenues. 
 
 
In the US, orders for the first six months were GBP1.6m compared with GBP3.4m in 
2008, a reduction of 53%. Sales in 2009 were GBP2.7m compared with GBP3.0m for 
the same period in 2008. Gross profit was GBP0.7m compared with GBP0.8m in 2008. 
 
 
Asian business - The Asian business is made up of Densitron Asia and Densitron 
Corporation of Japan. In the six months to 30 June 2009 orders were GBP0.7m 
compared with GBP0.5m in 2008, an increase of 40%. Sales were the same at 
GBP0.8m and gross profit was GBP0.5m compared with GBP0.3m in 2008, an increase 
of 67%. 
 
 
Both the Asian subsidiaries have performed well in the first half of the year. 
While Densitron Asia's primary function is to support the rest of the Group by 
providing the link to Taiwanese and Chinese factories, Densitron Japan has 
continued to perform well in a very competitive market and has some significant 
opportunities in its pipeline. 
 
 
Evervision Electronics Corporation 
Evervision is the Group's 24.48% investment in a Taiwanese display manufacturing 
company. 
Evervision continues to be modestly loss making, due partly to the level of 
depreciation being recognised in the accounts. It remains significantly cash 
rich and we are continuing to work with the Board of Evervision to provide a 
return to its shareholders. 
 
 
Land at Blackheath 
This is a 1.25 acre strip of land in Blackheath, London, which the Company has 
owned for a number of years. 
I reported in the Chairman's statement in the 2008 Annual Report that planning 
consultants had been appointed to manage the planning process. A report has been 
produced detailing the strategy that would give the best chance of obtaining 
planning permission. However, it has recently come to our attention that the 
timescales for the Local Development Framework (LDF), the body that has been set 
up to review all areas of undeveloped land, have been extended and they now 
expect to conclude the review process in the first half of 2012 although there 
is no guarantee of this. Consequently we are in the process of reviewing the 
options of how to proceed. 
 
 
Outlook 
I remain confident that the Company will return to profitability in the second 
half of the year and that the Company will return a small profit for the year as 
a whole. There are signs that the economies in which our subsidiaries operate 
are slowly recovering and exiting recession. I believe that full recovery will 
take time but that the Company is well positioned to take advantage of 
opportunities as they arise. 
 
 
Jan Holmstrom 
7 September 2009 
 
 
 
 
 
 
 
 
 
 
  Unaudited Condensed Consolidated Income statement 
For the six months ended 30th June 2009 
 
 
 
 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
|                                          | 6 months to |  | 6 months to |  |     Year to | 
|                                          |   30th June |  |  30th June  |  |        31st | 
|                                          |        2009 |  |        2008 |  |    December | 
|                                          |             |  |             |  |        2008 | 
|                                          |      GBP000 |  |      GBP000 |  |     Audited | 
|                                          |             |  |             |  |      GBP000 | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
| Continuing operations                    |             |  |             |  |             | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
| Revenue                                  |       7,252 |  |       8,289 |  |      18,287 | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
| Cost of sales                            |     (4,760) |  |     (5,717) |  |    (12,783) | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
| Gross profit                             |       2,492 |  |       2,572 |  |       5,504 | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
| Other operating income                   |         103 |  |          59 |  |         281 | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
| Distribution costs                       |        (25) |  |        (19) |  |        (49) | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
| Administrative expenses                  |     (2,710) |  |     (2,455) |  |     (5,268) | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
| (Loss)/profit from operations            |       (140) |  |         157 |  |         468 | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
| Financial income                         |          20 |  |          26 |  |          43 | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
| Financial expenses                       |        (69) |  |       (103) |  |       (194) | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
| (Loss)/profit before tax                 |       (189) |  |          80 |  |         317 | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
| Income tax expense                       |         (9) |  |        (63) |  |       (123) | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
| (Loss)/profit for the period             |       (198) |  |          17 |  |         194 | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
|                                          |             |  |             |  |             | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
| Attributable to:                         |             |  |             |  |             | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
| Equity holders of the parent             |       (196) |  |           4 |  |         175 | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
| Minority interests                       |         (2) |  |          13 |  |          19 | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
|                                          |       (198) |  |          17 |  |         194 | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
|                                          |             |  |             |  |             | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
| Basic and diluted earnings per share     |             |  |             |  |             | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
| (Loss)/earnings per share from           |             |  |             |  |             | 
| continuing and discontinued operations   |     (0.28)p |  |       0.01p |  |       0.25p | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
|                                          |             |  |             |  |             | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
| (Loss)/earnings per share on continuing  |             |  |             |  |             | 
| operations                               |     (0.28)p |  |       0.01p |  |       0.25p | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
|                                          |             |  |             |  |             | 
+------------------------------------------+-------------+--+-------------+--+-------------+ 
 
 
  Unaudited Condensed Statement of comprehensive income 
For the six months to 30th June 2009 
 
 
+--------------------------------------------+------------+--+------------+--+------------+ 
|                                            |   6 months |  |   6 months |  |    Year to | 
|                                            |         to |  |         to |  |       31st | 
|                                            |  30th June |  | 30th June  |  |   December | 
|                                            |       2009 |  |       2008 |  |       2008 | 
|                                            |            |  |            |  |    Audited | 
|                                            |     GBP000 |  |     GBP000 |  |     GBP000 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
|                                            |            |  |            |  |            | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| (Loss)/profit for the period               |      (198) |  |         17 |  |        194 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Other comprehensive income:                |            |  |            |  |            | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Foreign currency translation differences   |            |  |            |  |            | 
| for foreign operations                     |      (325) |  |       (72) |  |        509 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
|                                            |            |  |            |  |            | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Totalcomprehensive income for the period   |      (523) |  |       (55) |  |        703 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
|                                            |            |  |            |  |            | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Attributable to:                           |            |  |            |  |            | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Equity holders of the parent               |      (521) |  |       (68) |  |        684 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Minority interests                         |        (2) |  |         13 |  |         19 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
|                                            |      (523) |  |       (55) |  |        703 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
 
 
Unaudited Condensed Consolidated Balance Sheet 
As at 30th June 2009 
 
 
+--------------------------------------------+------------+--+------------+--+------------+ 
|                                            | 30th June  |  | 30th June  |  |       31st | 
|                                            |       2009 |  |       2008 |  |   December | 
|                                            |     GBP000 |  |     GBP000 |  |       2007 | 
|                                            |            |  |            |  |   Audited  | 
|                                            |            |  |            |  |     GBP000 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Non-current assets                         |            |  |            |  |            | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Property, plant and equipment              |        201 |  |        211 |  |        246 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Goodwill                                   |        143 |  |        143 |  |        143 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Financial assets                           |      6,185 |  |      6,331 |  |      6,393 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Deferred tax assets                        |         63 |  |         23 |  |         60 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
|                                            |      6,592 |  |      6,708 |  |      6,842 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
|                                            |            |  |            |  |            | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Current assets                             |            |  |            |  |            | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Inventories                                |      1,084 |  |        799 |  |      1,432 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Trade and other receivables                |      2,396 |  |      3,959 |  |      5,296 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Financial assets                           |        391 |  |        589 |  |        495 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Income tax recoverable                     |         95 |  |         60 |  |         76 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Cash and cash equivalents                  |      1,450 |  |      1,446 |  |      1,812 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
|                                            |      5,416 |  |      6,853 |  |      9,111 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
|                                            |            |  |            |  |            | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Total assets                               |     12,008 |  |     13,561 |  |     15,953 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
|                                            |            |  |            |  |            | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Current liabilities                        |            |  |            |  |            | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Borrowings                                 |      2,432 |  |      3,374 |  |      3,362 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Trade and other payables                   |      1,851 |  |      2,607 |  |      4,194 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Current tax payable                        |         31 |  |          3 |  |         55 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Provisions                                 |         84 |  |          - |  |         84 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
|                                            |      4,398 |  |      5,984 |  |      7,695 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
|                                            |            |  |            |  |            | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Non-current liabilities                    |            |  |            |  |            | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Borrowings                                 |        240 |  |        271 |  |        312 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Provisions                                 |        154 |  |        283 |  |        188 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Deferred tax liabilities                   |          4 |  |          8 |  |          5 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
|                                            |        398 |  |        562 |  |        505 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
|                                            |            |  |            |  |            | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Total liabilities                          |      4,796 |  |      6,546 |  |      8,200 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
|                                            |            |  |            |  |            | 
+--------------------------------------------+------------+--+------------+--+------------+ 
|                                            |      7,212 |  |      7,015 |  |      7,753 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
|                                            |            |  |            |  |            | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Equity                                     |            |  |            |  |            | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Share Capital                              |      3,483 |  |      3,483 |  |      3,483 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Retained earnings                          |      3,281 |  |      3,305 |  |      3,428 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Special reserve                            |        340 |  |        367 |  |        390 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Translation reserve                        |         56 |  |      (200) |  |        381 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Equity attributable to shareholders of     |      7,160 |  |      6,955 |  |      7,682 | 
| Densitron                                  |            |  |            |  |            | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Minority interests                         |         52 |  |         60 |  |         71 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
|                                            |            |  |            |  |            | 
+--------------------------------------------+------------+--+------------+--+------------+ 
| Total equity                               |      7,212 |  |      7,015 |  |      7,753 | 
+--------------------------------------------+------------+--+------------+--+------------+ 
  Unaudited Condensed Statement of Changes in Shareholders Equity 
For the 6 months to 30th June 2009 
 
 
+-----------------------------+--+-----------+-------------+-----------+-----------+-----------+ 
|                             |  |     Share | Translation |  Special  |  Retained |     Total | 
|                             |  |   capital |     reserve |   reserve |  earnings |    equity | 
|                             |  |    GBP000 |      GBP000 |    GBP000 |    GBP000 |    GBP000 | 
+-----------------------------+--+-----------+-------------+-----------+-----------+-----------+ 
|                             |  |           |             |           |           |           | 
+-----------------------------+--+-----------+-------------+-----------+-----------+-----------+ 
| Balance at 1 January 2008   |  |     3,483 |       (128) |       478 |     3,190 |     7,023 | 
+-----------------------------+--+-----------+-------------+-----------+-----------+-----------+ 
|                             |  |           |             |           |           |           | 
+-----------------------------+--+-----------+-------------+-----------+-----------+-----------+ 
| Total comprehensive income  |  |         - |        (72) |         - |         4 |      (68) | 
| for the period              |  |           |             |           |           |           | 
+-----------------------------+--+-----------+-------------+-----------+-----------+-----------+ 
| Transfer from special       |  |         - |           - |     (111) |       111 |         - | 
| reserve                     |  |           |             |           |           |           | 
+-----------------------------+--+-----------+-------------+-----------+-----------+-----------+ 
| Balance at 30 June 2008     |  |     3,483 |       (200) |       367 |     3,305 |     6,955 | 
+-----------------------------+--+-----------+-------------+-----------+-----------+-----------+ 
|                             |  |           |             |           |           |           | 
+-----------------------------+--+-----------+-------------+-----------+-----------+-----------+ 
| Total comprehensive income  |  |         - |         581 |         - |       146 |       727 | 
| for the period              |  |           |             |           |           |           | 
+-----------------------------+--+-----------+-------------+-----------+-----------+-----------+ 
| Transfer to special reserve |  |         - |           - |        23 |      (23) |         - | 
+-----------------------------+--+-----------+-------------+-----------+-----------+-----------+ 
| Balance at 31 December 2008 |  |     3,483 |         381 |       390 |     3,428 |     7,682 | 
+-----------------------------+--+-----------+-------------+-----------+-----------+-----------+ 
|                             |  |           |             |           |           |           | 
+-----------------------------+--+-----------+-------------+-----------+-----------+-----------+ 
| Total comprehensive income  |  |         - |       (325) |         - |     (197) |     (522) | 
| for the period              |  |           |             |           |           |           | 
+-----------------------------+--+-----------+-------------+-----------+-----------+-----------+ 
| Transfer from special       |  |         - |           - |      (50) |        50 |         - | 
| reserve                     |  |           |             |           |           |           | 
+-----------------------------+--+-----------+-------------+-----------+-----------+-----------+ 
| Balance at 30 June 2009     |  |     3,483 |          56 |       340 |     3,281 |     7,160 | 
+-----------------------------+--+-----------+-------------+-----------+-----------+-----------+ 
|                             |  |           |             |           |           |           | 
+-----------------------------+--+-----------+-------------+-----------+-----------+-----------+ 
  Unaudited Condensed Consolidated Cash flow Statement 
For the 6 months ended 30th June 2009 
 
 
+-------------------------------------------+------------+--+------------+--+------------+ 
|                                           |   6 months |  |   6 months |  |    Year to | 
|                                           |         to |  |    to 30th |  |       31st | 
|                                           |  30th June |  |       June |  |   December | 
|                                           |       2009 |  |       2008 |  |       2008 | 
|                                           |     GBP000 |  |     GBP000 |  |    Audited | 
|                                           |            |  |            |  |     GBP000 | 
+-------------------------------------------+------------+--+------------+--+------------+ 
|                                           |            |  |            |  |            | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Cash flows from operating activities      |            |  |            |  |            | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| (Loss)/profit before taxation             |      (189) |  |         80 |  |        317 | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Adjustments for:                          |            |  |            |  |            | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Depreciation                              |         30 |  |         23 |  |         51 | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Net finance expense                       |         49 |  |         77 |  |        151 | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Exchange adjustments                      |      (138) |  |       (69) |  |      (119) | 
+-------------------------------------------+------------+--+------------+--+------------+ 
|                                           |      (248) |  |        111 |  |        400 | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Change in financial asset                 |       (98) |  |          - |  |      (102) | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Change in inventories                     |        180 |  |      (139) |  |      (600) | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Change in trade and other receivables     |      2,531 |  |    (1,431) |  |    (2,153) | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Change in trade and other payables        |    (1,928) |  |        664 |  |      1,858 | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Change in provisions                      |       (34) |  |          5 |  |         34 | 
+-------------------------------------------+------------+--+------------+--+------------+ 
|                                           |        403 |  |      (790) |  |      (563) | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Income tax paid                           |       (59) |  |      (110) |  |      (187) | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Net cash from/(used in) operating         |        344 |  |      (900) |  |      (750) | 
| activities                                |            |  |            |  |            | 
+-------------------------------------------+------------+--+------------+--+------------+ 
|                                           |            |  |            |  |            | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Cash flows from investing activities      |            |  |            |  |            | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Interest received                         |          3 |  |         26 |  |         43 | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Proceeds from sale of plant, property and |          - |  |          - |  |         17 | 
| equipment                                 |            |  |            |  |            | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Disposal of discontinued operation        |        410 |  |        434 |  |        568 | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Acquisition of plant, property and        |        (3) |  |       (22) |  |       (68) | 
| equipment                                 |            |  |            |  |            | 
+-------------------------------------------+------------+--+------------+--+------------+ 
|                                           |        410 |  |        438 |  |        560 | 
+-------------------------------------------+------------+--+------------+--+------------+ 
|                                           |            |  |            |  |            | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Cash flows from financing activities      |            |  |            |  |            | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Purchase of own shares                    |          - |  |          - |  |       (25) | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Inception of new loans                    |          - |  |        250 |  |        345 | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Repayment of borrowings                   |       (57) |  |      (394) |  |      (693) | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Interest paid                             |       (52) |  |      (132) |  |      (196) | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Payment of finance leases                 |        (5) |  |       (10) |  |       (21) | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Change in trade finance creditor          |      (567) |  |        154 |  |        354 | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Change in letters of credit               |      (316) |  |         80 |  |        131 | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Dividends paid to minorities              |        (9) |  |       (10) |  |       (17) | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Net cash used in financing activities     |    (1,006) |  |       (62) |  |      (122) | 
+-------------------------------------------+------------+--+------------+--+------------+ 
|                                           |            |  |            |  |            | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Net decrease in cash and cash equivalents |      (252) |  |      (524) |  |      (312) | 
+-------------------------------------------+------------+--+------------+--+------------+ 
|                                           |            |  |            |  |            | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Cash and cash equivalents at 1st January  |      1,202 |  |        872 |  |        872 | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Effect of exchange rate fluctuation on    |      (238) |  |         49 |  |        642 | 
| cash held                                 |            |  |            |  |            | 
+-------------------------------------------+------------+--+------------+--+------------+ 
|                                           |            |  |            |  |            | 
+-------------------------------------------+------------+--+------------+--+------------+ 
| Cash and cash equivalents at the end of   |        712 |  |        397 |  |      1,202 | 
| the period                                |            |  |            |  |            | 
+-------------------------------------------+------------+--+------------+--+------------+ 
|                                           |            |  |            |  |            | 
+-------------------------------------------+------------+--+------------+--+------------+ 
 
 
  Notes to the Unaudited Condensed Financial Statements 
For the six months ended 30th June 2009 
 
 
1. General information 
Densitron Technologies plc is a public limited company ("the Company") 
incorporated in the United Kingdom under the Companies Act 1985 (registration 
number 1962726). 
 
 
The Company is domiciled in the United Kingdom and its registered address is 5th 
Floor, 145 Cannon Street, London, EC4N 5BP. The Company's Ordinary Shares are 
traded on the Alternative Investment Market ("AIM"). The Group's principal 
activities are the design, development and delivery of electronic display and 
display related technologies. 
 
 
2. Basis of preparation 
This unaudited consolidated interim financial information has been prepared 
using the recognition and measurement principles of International Accounting 
Standards, International Financial Reporting Standards and Interpretations 
adopted for use in the European Union collectively EU IFRSs). The principal 
accounting policies used in preparing the interim results are those it expects 
to apply in its financial statement for the year ended 31 December 2009 and are 
unchanged from those disclosed in the group's Annual Report for the year ended 
31 December 2008. 
 
 
The financial information for the six months ended 30 June 2009 and 30 June 2008 
is unreviewed and unaudited and does not constitute the group's statutory 
financial statements for those periods. The comparative financial information 
for the full year ended 31 December 2008 has, however, been derived from the 
audited statutory financial statement for that period. A copy of those statutory 
financial statements has been delivered to the Registrar of Companies. The 
auditors' report on those accounts was unqualified, did not include references 
to any matters to which the auditors drew attention by way of emphasis without 
qualifying their report and did not contain a statement under section 237(2)-(3) 
of the Companies Act 1985. 
 
 The financial information in the Interim Report is presented in Sterling 
and all values are rounded to the nearest thousand pounds (GBP'000) except when 
otherwise indicated. 
 
 
3. Revenue 
 
 
+--------------------------------------------+---+-------------+------------+------------+ 
|                                            |   | 6 months to |   6 months |    Year to | 
|                                            |   |   30th June |    to 30th |       31st | 
|                                            |   |        2009 |       June |   December | 
|                                            |   |   Unaudited |       2008 |      2008  | 
|                                            |   |      GBP000 |  Unaudited |   Audited  | 
|                                            |   |             |     GBP000 |     GBP000 | 
+--------------------------------------------+---+-------------+------------+------------+ 
| Revenue by location of reporting entity    |   |             |            |            | 
+--------------------------------------------+---+-------------+------------+------------+ 
| Europe                                     |   |       3,797 |      4,503 |      9,878 | 
+--------------------------------------------+---+-------------+------------+------------+ 
| USA                                        |   |       2,681 |      3,006 |      6,891 | 
+--------------------------------------------+---+-------------+------------+------------+ 
| Asia                                       |   |         774 |        780 |      1,518 | 
+--------------------------------------------+---+-------------+------------+------------+ 
|                                            |   |       7,252 |      8,289 |     18,287 | 
+--------------------------------------------+---+-------------+------------+------------+ 
 
 
+--------------------------------------------+---+-------------+------------+------------+ 
| Gross profit by location of reporting      |   |             |            |            | 
| entity                                     |   |             |            |            | 
+--------------------------------------------+---+-------------+------------+------------+ 
| Europe                                     |   |       1,294 |      1,428 |      3,021 | 
+--------------------------------------------+---+-------------+------------+------------+ 
| USA                                        |   |         747 |        802 |      1,732 | 
+--------------------------------------------+---+-------------+------------+------------+ 
| Asia                                       |   |         451 |        342 |        751 | 
+--------------------------------------------+---+-------------+------------+------------+ 
|                                            |   |       2,492 |      2,572 |      5,504 | 
+--------------------------------------------+---+-------------+------------+------------+ 
 
 
  4. Segmental analysis 
 
+----------------------------------------------+-------------+-------------+-------------+ 
|                                              |             |             |             | 
+----------------------------------------------+-------------+-------------+-------------+ 
|                                              |    Displays | Head office |       Total | 
|                                              |    division |             |             | 
+----------------------------------------------+-------------+-------------+-------------+ 
|                                              | 6 months to | 6 months to | 6 months to | 
|                                              |   30th June |   30th June |   30th June | 
|                                              |        2009 |        2009 |        2009 | 
|                                              |   Unaudited |   Unaudited |   Unaudited | 
|                                              |      GBP000 |      GBP000 |      GBP000 | 
+----------------------------------------------+-------------+-------------+-------------+ 
| Revenue                                      |             |             |             | 
+----------------------------------------------+-------------+-------------+-------------+ 
| Total                                        |      10,002 |           - |      10,002 | 
+----------------------------------------------+-------------+-------------+-------------+ 
| Intercompany                                 |     (2,750) |           - |     (2,750) | 
+----------------------------------------------+-------------+-------------+-------------+ 
| External                                     |       7,252 |           - |       7,252 | 
+----------------------------------------------+-------------+-------------+-------------+ 
|                                              |             |             |             | 
+----------------------------------------------+-------------+-------------+-------------+ 
| (Loss) before tax                            |             |             |             | 
+----------------------------------------------+-------------+-------------+-------------+ 
| Continuing operations                        |        (68) |       (121) |       (189) | 
+----------------------------------------------+-------------+-------------+-------------+ 
|                                              |             |             |             | 
+----------------------------------------------+-------------+-------------+-------------+ 
|                                              | 6 months to | 6 months to | 6 months to | 
|                                              |   30th June |   30th June |   30th June | 
|                                              |        2008 |        2008 |        2008 | 
|                                              |   Unaudited |   Unaudited |   Unaudited | 
|                                              |      GBP000 |      GBP000 |      GBP000 | 
+----------------------------------------------+-------------+-------------+-------------+ 
| Revenue                                      |             |             |             | 
+----------------------------------------------+-------------+-------------+-------------+ 
| Total                                        |      10,447 |           - |      10,447 | 
+----------------------------------------------+-------------+-------------+-------------+ 
| Intercompany                                 |     (2,158) |           - |     (2,158) | 
+----------------------------------------------+-------------+-------------+-------------+ 
| External                                     |       8,289 |           - |       8,289 | 
+----------------------------------------------+-------------+-------------+-------------+ 
|                                              |             |             |             | 
+----------------------------------------------+-------------+-------------+-------------+ 
| Profit/(loss) before tax                     |             |             |             | 
+----------------------------------------------+-------------+-------------+-------------+ 
| Continuing operations                        |         371 |       (291) |          80 | 
+----------------------------------------------+-------------+-------------+-------------+ 
|                                              |             |             |             | 
+----------------------------------------------+-------------+-------------+-------------+ 
|                                              |     Year to |     Year to |     Year to | 
|                                              |        31st |        31st |        31st | 
|                                              |    December |    December |    December | 
|                                              |        2008 |        2008 |        2008 | 
|                                              |     Audited |     Audited |     Audited | 
|                                              |      GBP000 |      GBP000 |      GBP000 | 
+----------------------------------------------+-------------+-------------+-------------+ 
| Revenue                                      |             |             |             | 
+----------------------------------------------+-------------+-------------+-------------+ 
| Total                                        |      23,480 |           - |      23,480 | 
+----------------------------------------------+-------------+-------------+-------------+ 
| Intercompany                                 |     (5,193) |           - |     (5,193) | 
+----------------------------------------------+-------------+-------------+-------------+ 
| External                                     |      18,287 |           - |      18,287 | 
+----------------------------------------------+-------------+-------------+-------------+ 
|                                              |             |             |             | 
+----------------------------------------------+-------------+-------------+-------------+ 
| Profit/(loss) before tax                     |             |             |             | 
+----------------------------------------------+-------------+-------------+-------------+ 
| Continuing operations                        |         683 |       (366) |         317 | 
+----------------------------------------------+-------------+-------------+-------------+ 
|                                              |             |             |             | 
+----------------------------------------------+-------------+-------------+-------------+ 
 
 
5. Taxation 
Taxation for the 6 months ended 30th June 2009 has been calculated by applying 
the estimated tax rate for the current financial year ending 31st December 2009. 
 
 
6. Dividend 
No dividend is to be paid in the period (2008: Nil). 
 
 
 
 
7. Earnings per share 
 
 
+--------------------------------------------+---+-------------+------------+------------+ 
|                                            |   | 6 months to |   6 months |    Year to | 
|                                            |   |   30th June |    to 30th |       31st | 
|                                            |   |        2009 |       June |   December | 
|                                            |   |   Unaudited |       2008 |       2008 | 
|                                            |   |      GBP000 |  Unaudited |    Audited | 
|                                            |   |             |     GBP000 |     GBP000 | 
+--------------------------------------------+---+-------------+------------+------------+ 
| (Loss)/profit attributable to ordinary     |   |             |            |            | 
| shareholders                               |   |             |            |            | 
+--------------------------------------------+---+-------------+------------+------------+ 
| Continuing operations                      |   |       (196) |          4 |        175 | 
+--------------------------------------------+---+-------------+------------+------------+ 
|                                            |   |             |            |            | 
+--------------------------------------------+---+-------------+------------+------------+ 
| Weighted average number of ordinary shares |   |             |            |            | 
+--------------------------------------------+---+-------------+------------+------------+ 
| Issued at 1 January 2009                   |   |  69,669,106 | 69,669,106 | 64,669,106 | 
+--------------------------------------------+---+-------------+------------+------------+ 
| Effect of purchase of Treasury shares on   |   |             |            |            | 
| 23rd October 2008                          |   |   (500,000) |          - |   (94,521) | 
+--------------------------------------------+---+-------------+------------+------------+ 
| Weighted average number of ordinary shares |   |             |            |            | 
| at 30th June 2009                          |   |  69,169,106 | 69,669,106 | 69,574,585 | 
+--------------------------------------------+---+-------------+------------+------------+ 
 
 
 
8. Copies of Interim report 
The Interim report is available to view and download from the Company's website 
at www.densitron.com.  If shareholders would like a hardcopy of the interim 
report they should contact the Company Secretary, Tim Pearson. 
 
 
 
 
 
 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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