We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register to chat with like-minded investors on our interactive forums.
| 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 |
Hot Features
Premium
RNS Number:5777E
Densitron Technologies PLC
27 September 2007
Densitron Technologies plc
Unaudited Interim Report
For the Six months ended 30th June 2007
Highlights
O Orders booked in the first half of 2007 increased by 4% on the first half
of 2006 and by 28% on the second half of 2006.
O Increase in orderbook of #1.6m since 31st December 2006.
O Appointment of new Distributors in Sweden and Spain.
O Relationships forged with new Suppliers.
O Completion of the disposal of the Gaming Division.
Financial Highlights on continuing operations
6 months to 6 months to
30th June 2007 30th June 2006
Continuing Continuing
Unaudited Unaudited
#m #m
Revenue 7.0 7.9
Operating profit 0.1 0.2
(Loss)/profit before taxation (0.0) 0.1
(Loss) per share (0.07)p (0.00)p
Orderbook #6.7m #6.4m
For enquiries, please contact:
Tim Pearson, Group Finance Director
Densitron Technologies plc Tel: 0207 648 4200
John Wakefield, Director of Corporate Finance
Blue Oar Securities Plc Tel: 0117 933 0020
Chairman's Statement
The first half of 2007 has seen the Group complete its disposal of its loss
making divisions and enabled focus to be concentrated on its Display Solutions
business. The results for the first half of 2007 are in line with the Group's
budgets and show a profit for the period of #381,000 compared with a loss of
#396,000 for the same period in 2006 and a profit of #43,000 for the second half
of 2006.
Densitron Displays Solutions
Sales for the period have decreased by 12% compared with the same period of 2006
and by 7% on the second half of 2006. This is in line with the Group's budgets
and is the result of poor order intake during the second half of 2006 and the
weakness of the US dollar against the pound. Orders booked in the first half of
2007 amounted to #8.7m an increase of 4% on the same period in 2006 and an
increase of 28% on the second half of 2006. The orderbook at the 30 June 2007
has increased by #1.6m since 31st December 2006.
The outlook for the Division remains positive and during the 6 months to 30th
June 2007 work has continued to increase both the spread of product offerings
and the geographical reach of the Division. To that end new distributors have
been appointed in Sweden and Spain and relationships have been forged with new
suppliers including a plastics factory in Malaysia that give the Division access
to complete products. This has enabled a strong pipeline of potential future
business to be built.
The focus of the Division remains adding value to customers' projects by
bringing both product know how and project management skills to achieve good
margins. This ethos continues to attract new talent to the Division.
VBest Electronics Co. Limited
The Group owns 24.48% of the share capital of VBest Electronics Co. Limited
(VBest), a Taiwanese manufacturer of Liquid Crystal Displays and Liquid Crystal
Modules. With factories in China VBest is well placed to capitalize on the
demand for these products. The Group's policy under adopted IFRSs is to treat
this investment as a financial asset at cost due to the fact that the Group does
not have significant influence over the financial or operating policies of the
company (due to a minority presence on the VBest Board) and there being no
active market for the shares.
At the end of 2006 and the beginning of 2007 VBest saw a large increase in its
orderbook for deliveries during 2007 which resulted in a requirement to recruit
around 300 additional production personnel in its Kunshan factory in China. The
introduction of these additional operatives has resulted in a deterioration in
production yields due to inadequate training and supervision which has resulted
in the Company making a loss in the first half of 2007. Corrective measures have
now been implemented and the VBest Board is confident that the second half of
2007 will show an improvement. At the July Board Meeting the VBest Board
approved changing the Company's name to Evervision Limited.
While the Group is unable to exert significant influence over the financial and
operating policies of VBest, it remains an important investment to the Group. In
order to manage the investment Densitron maintains two seats on the VBest Board
and are represented by two senior members of staff, Grahame Falconer and Vincent
Linn, with at least one attending each VBest Board Meeting. In addition regular
visits are made by senior members of staff to both VBest Headquarters in Taipei
and the main LCD and LCM factory in China with findings being reported back to
the Densitron Board.
Blackheath Land
The Company continues to own 5.5 acres of land at Blackheath in the London
Borough of Greenwich. Over the past few years the Company has been in
negotiations with the Local Authority over a potential land swap. Negotiations
with the Local Authority are ongoing and have now been taken up by more senior
personnel within the Authority. The emphasis of the negotiations has changed and
is now in the form of a straightforward purchase of part of the land. One offer
has been received and negotiations are continuing.
Outlook
The markets in which the Group operates remain competitive but the Directors are
confident that with the Team that we have in place and the trading strategy that
has been adopted will enable the Group to grow its Displays business
organically. The Directors continue to explore ways of maximizing Shareholder
value for the Land at Blackheath and the investment in VBest and will advise
Shareholders when there are further developments.
Ralph Baber
Interim Chairman
26 September 2007
Unaudited Consolidated Income statement
For the six months ended 30th June 2007
6 months to 6 months to Year to
30th June 30th June 31st December
2007 2006 2006
#000 #000 #000
Continuing operations
Sales revenue 6,996 7,948 15,441
Cost of sales (4,767) (5,589) (10,807)
Gross profit 2,229 2,359 4,634
Other operating income 124 31 52
Distribution costs (15) (34) (54)
Administrative expenses (2,209) (2,186) (4,526)
Profit from operations 129 170 106
Financial income 2 28 53
Financial expenses (149) (99) (245)
Net finance costs (147) (71) (192)
(Loss)/profit before tax (18) 99 (86)
Income tax expense (15) (95) (66)
(Loss)/profit for the period from continuing
operations (33) 4 (152)
Discontinued operations
Profit/(loss) for the period from discontinued operations 414 (400) (201)
Profit/(loss) for the period 381 (396) (353)
Attributable to:
Equity holders of the parent 366 (401) (364)
Minority interests 15 5 11
381 (396) (353)
Basic and diluted earnings per share
Profit/(loss) per share from continuing and
discontinued operations 0.57p (0.62)p (0.56)p
(Loss) per share on continuing operations (0.07)p (0.00)p (0.25)p
Unaudited Statement of recognised income and expense
For the six months to 30th June 2007
6 months to 6 months to Year to
30th June 30th June 31st December
2007 2006 2006
#000 #000 #000
Foreign exchange adjustments (12) (44) (111)
Profit/(loss) for the financial period 381 (396) (353)
Total recognised income and expense for the period 369 (440) (464)
Attributable to:
Equity holders of the parent 354 (445) (475)
Minority interests 15 5 11
369 (440) (464)
Unaudited Consolidated Balance Sheet
As at 30th June 2007
30th June 30th June 31st December
2007 2006 2006
#000 #000 #000
Non current assets
Property, plant and equipment 134 410 127
Goodwill 143 168 143
Financial assets 7,711 7,235 7,501
Deferred tax assets 44 74 67
8,032 7,887 7,838
Current assets
Inventories 614 1,329 637
Trade and other receivables 3,641 3,905 4,010
Income tax recoverable 122 34 160
Cash and cash equivalents 1,447 1,729 1,292
5,824 6,997 6,099
Non current assets classified as held for sale 218 0 559
Total assets 14,074 14,884 14,496
Current liabilities
Short term borrowings and overdrafts 4,144 2,160 2,812
Trade and other payables 2,632 4,007 2,949
Current tax payable 38 58 66
Provisions 11 75 75
6,825 6,300 5,902
Non current liabilities
Long term borrowings 197 1,853 1,707
Long term financial liabilities 14 33 24
Long term provisions 260 252 260
Deferred tax liabilities 17 - -
488 2,138 1,991
Liabilities directly associated with non current
assets classified as held for sale - - 194
Total liabilities 7,313 8,438 8,087
6,761 6,446 6,409
Equity
Share Capital 3,233 3,233 3,233
Share premium account 21,204 21,204 21,204
Retained earnings (17,603) (18,005) (17,969)
Translation reserve (123) (44) (111)
Equity attributable to shareholders of Densitron 6,711 6,388 6,357
Minority interests 50 58 52
Total equity 6,761 6,446 6,409
Unaudited Consolidated Cash flow Statement
For the 6 months ended 30th June 2007
Six months to Six months to Year to
30th June 30th June 31st December
2007 2006 2006
#000 #000 #000
Cash flows from operating activities
(Loss)/profit before taxation (18) 99 (86)
Adjustments for:
Depreciation 29 37 79
Results from discontinued activities (66) (400) (949)
Interest receivable (2) (28) (53)
Interest payable 149 99 245
Interest payable relating to discontinued activity - 35 79
(Increase)/decrease in inventories (14) (56) 193
(Increase)/decrease in trade and other receivables (205) 225 (154)
(Decrease)/Increase in trade and other payables (130) 7 (374)
(Decrease) in provisions (64) - -
Exchange adjustments 33 9 46
Cash (absorbed by)/generated from operations (288) 27 (974)
Interest paid (149) (134) (286)
Tax recovered/(paid) 37 (74) (146)
(112) (208) (432)
Net cash absorbed by operating activities (400) (181) (1,406)
Cash flows from investing activities
Proceeds from sales of investments 843 47 291
Purchases of plant, property and equipment (18) (69) (19)
Sales of plant, property and equipment - - 2
Interest received 2 25 53
827 3 327
Cash flows from financing activities
Inception of new loans - 1,494 1,500
Repayment of borrowings (221) (237) (470)
Inception of finance leases - 57 -
Payment of finance leases (11) (14) (25)
Increase/(decrease) in trade finance creditor 15 (264) (225)
Decrease in letters of credit (66) (174) (161)
Dividends paid to minorities (17) - (11)
Net (cash used in)/generated by financing activities (300) 862 608
Net increase/(decrease) in cash and cash equivalents 127 684 (471)
Cash and cash equivalents at beginning of the
Period (641) (170) (170)
Cash and cash equivalents at the end of the period (514) 514 (641)
Notes to the Unaudited Interim Report
For the six months ended 30th June 2007
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 display and display
related technologies.
2. Basis of preparation
Densitron Technologies Plc ('the Group') has previously prepared its financial
statements under UK Generally Accepted Accounting Principles ('UK GAAP').
Following a revision in the AIM Rules, the Group is required to prepare its 2007
consolidated financial statements in accordance with International Financial
Reporting Standards ('IFRSs') as adopted by the European Union ('Adopted
IFRSs').
Accordingly, this Interim Report has been prepared using accounting policies
consistent with those which management expect to apply in the Group's first
Adopted IFRS Annual Report for the year ending 31st December 2007.
IFRSs currently in issue are subject to ongoing review and endorsement by the
European Commission, or possible amendment by the IASB, and are therefore
subject to possible change. Further standards or interpretations may also be
issued that could be applicable for the full year consolidated financial
statements. These potential changes could result in the need to change the basis
of accounting or presentation of certain financial information from that
presented in this document.
This Interim Report, for the six-months ended 30th June 2007, does not
constitute statutory accounts as defined in section 240 of the Companies Act
1985. Statutory consolidated financial statements for the Group for the year
ended 31 December 2006, prepared in accordance with UK GAAP, on which the
auditors gave an unqualified opinion, did not include a reference to any matters
to which the auditors drew attention by way of emphasis without qualifying their
report, and did not include a statement under section 237(2) or (3) of the
Companies Act 1985, have been filed with the Registrar of Companies.
The financial information in the Interim Report is presented in Sterling and all
values are rounded to the nearest thousand pounds (#'000) except when otherwise
indicated.
The financial effects of the transition from UK GAAP to Adopted IFRSs are shown
in the appendices to the Interim Report, which includes reconciliations of
profit for the comparative period and of equity for the comparative balance
sheet dates and the date of transition to Adopted IFRSs (1st January 2006).
The results contained within this report have not been subject to audit. Since
the results for the year ended 31st December 2006 have been amended to take
account of the change from UK GAAP to Adopted IFRSs the statements contained
within this report have been shown as being Unaudited. A full audit of the
transition to Adopted IFRSs will be carried out on the results for the year to
31st December 2007 and reported on by the Companies Auditors in the 2007 Annual
Report. The results for the six months ended 30th June 2007 have also been
amended to take account of the change from UK GAAP to Adopted IFRSs.
3. Accounting policies
Basis of consolidation
Where the Company has the power, either directly or indirectly, to govern the
financial and operating policies of another entity or business so as to obtain
benefits from its activities, it is classified as a subsidiary. The consolidated
financial information presents the results of the Company and its subsidiaries
(the 'Group') as if they formed a single entity. Subsidiaries are included in
the consolidation from the date that control commences until the date that
control ceases.
Where the Company has the power to significantly influence the operating and
financial policies of another business it is treated as an associate and its
results are accounted for on an equity basis. Where this power does not exist
the Company will recognise the investment at either fair value or cost within
non current assets.
Revenue recognition
Revenue consists of sales of displays and display related products to the
Group's customers. Revenue is recognised when goods are physically transferred
to customers or services have been provided in accordance with the terms and
conditions of the order that has been placed. The value is recognised to the
extent that it is probable that the economic benefits will flow to the Group and
the revenue can be reliably measured. Revenue is measured at the fair value of
consideration, net of returns and value-added taxes and recognised when the
significant risks and rewards of ownership have been transferred to the buyer.
Goodwill
Goodwill arising on consolidation represents the excess of the cost of an
acquisition over the fair value of the Group's share of the identifiable net
assets of the acquired subsidiary at the date of acquisition. Goodwill is
recognised as an asset on the Group's balance sheet in the year in which it
arises. Goodwill is tested for impairment at least annually and more frequently
if events or changes indicate that the carrying value may be impaired and is
carried at cost less accumulated impairment losses. Any impairment is recognised
immediately in the consolidated income statement and is not subsequently
reversed. Goodwill arising on acquisitions before 1st January 2006 (the date of
transition to IFRS) has been retained at the previous UK GAAP amounts subject to
being tested for impairment at that date.
Property, plant and equipment
Property, plant and equipment assets are carried at cost less accumulated
depreciation and any recognised impairment in value. Depreciation is calculated
to write down the cost of the assets to their residual values, on a
straight-line method on the following bases:
- Freehold buildings 2%
- Long and short leasehold land and buildings over the period of lease
- Plant and machinery 15%
- Fixtures and fittings 10%
- Motor vehicles 20%
- Computers and software 15-25%
The assets' residual values, useful lives and methods of depreciation are
reviewed, and adjusted if appropriate on an annual basis. An item of property,
plant and equipment is derecognised upon disposal or when no future economic
benefits are expected from its use or disposal. Any gain or loss arising on
derecognition of the asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the asset) is included in the
income statement in the year that the asset is derecognised. All tangible fixed
assets are reviewed for impairment in accordance with IAS 36, Impairment of
Assets, when there are indications that the carrying value may not be
recoverable.
Financial assets
In accordance with IAS39 the Company is required to measure financial assets at
their fair values. The exception to this is investments in equity instruments
that do not have a quoted market price in an active market and whose fair value
cannot be reliably measured, and these are therefore measured at cost.
Deferred consideration relating to asset disposals of the Company is included
within financial assets where the consideration is not due for more than one
year.
Inventories
Inventories are valued at the lower of cost and net realisable value. Cost is
determined on a first in, first out basis and includes carriage and duty costs.
Net realisable value is based on estimated selling price less any further costs
expected to be incurred to disposal.
Trade and other receivables
Trade and other receivables are initially recognised at fair value and
thereafter at amortised cost less provision for impairment.
Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at bank and in
hand. Bank overdrafts that are repayable on demand and form an integral part of
the Group's cash management are included as components of cash and cash
equivalents for the purposes of the cash flow statement.
Non-current assets held for sale
Non-current assets are classified as held for sale if their carrying amount will
be recovered through sales rather than continuing use. This condition is
regarded as met if the asset is available for immediate disposal in its present
condition. Non-current assets classified as held for sale are measured at the
lower of carrying amount and fair value less estimated costs to sell.
Assets and liabilities relating to operations where negotiations for disposal
are in an advanced position are included as discontinued operations within non
current assets held for sale.
Foreign currencies
Foreign operations
The income and expenses of overseas subsidiaries are translated at the average
rate of exchange ruling during the year. The balance sheet of the overseas
subsidiary undertaking is translated into sterling at the rate of exchange
ruling at the balance sheet date. Exchange differences arising, if any, are
included within equity and transferred to the Group's translation reserve. Such
translation differences are recognised as income or as expenses in the period in
which the operation is disposed.
Foreign currency transactions
Transactions denominated in foreign currencies are translated at the exchange
rate on the date of the transaction. Monetary assets and liabilities denominated
in foreign currencies at the balance sheet date are translated at the exchange
rate ruling at that date. Foreign exchange differences arising on translation
are recognised in the income statement for the period.
Provisions
Provisions are recognised when there is a present legal or constructive
obligation as a result of past events, for which it is probable that an outflow
of economic benefit will be required to settle the obligation, and where the
amount of the obligation can be reliably measured.
Leased Assets
Leases are classified as finance leases when the terms of the lease transfer
substantially all the risks and rewards of ownership to the Group. All other
leases are classified as operating leases. Assets held as finance leases are
recognised as assets of the Group at their fair value or, if lower, at the
present value of the minimum lease payments during the lease term at the
inception of the lease. Lease payments are apportioned between the reduction of
the lease liability and finance charges in the income statement so as to achieve
a constant rate of interest in the remaining balance of the liability. Assets
held under finance leases are depreciated over the shorter of the estimated
useful life of the assets and the lease term. Assets leased under operating
leases are not recorded on the balance sheet. Rental payments are charged
directly to the income statement. Lease incentives, primarily up-front cash
payments or rent-free periods, are capitalised and spread over the period of the
lease term. Payments made to acquire operating leases are treated as prepaid
lease expenses and amortised over the life of the lease.
Pensions
The Group contributes to the personal pension plans of certain staff. The
contributions are charged as an expense as they fall due. Any contributions
unpaid at the balance sheet date are included as an accrual at that date. The
Group has no further payment obligations once the contributions have been paid.
Income Taxes
Current tax assets and liabilities are measured at the amount expected to be
recovered or paid to the taxation authorities, based on tax rates and laws that
are enacted or substantively enacted by the balance sheet date.
Deferred income tax is recognised using the balance sheet liability method,
providing for temporary differences between the tax bases and the accounting
bases of assets and liabilities. Deferred tax is calculated on an undiscounted
basis at the tax rates that are expected to apply in the period when the
liability is settled or the asset is realised, based on tax rates and laws
enacted or substantively enacted at the balance sheet date. Deferred income tax
liabilities are recognised for all temporary differences, except where the
deferred income tax liability from the initial recognition of goodwill or of an
asset or liability in a transaction that is not a business combination and at
the time of the transaction, affects neither the accounting profit nor taxable
profit or loss.
Deferred tax is charged or credited to the income statement, except when it
relates to items charged or credited directly to equity, in which case the
deferred tax is also dealt with in equity. Deferred tax assets and liabilities
are offset against each other when they relate to income taxes levied by the
same tax jurisdiction and when the Group intends to settle its current tax
assets and liabilities on a net basis.
Use of assumptions and estimates
The Group makes judgements, estimates and assumptions that affect the
application of policies and reported amounts of assets and liabilities, income
and expenses. The resulting accounting estimates calculated using these
judgements and assumptions will, by definition, seldom equal the related actual
results but are based on historical experience and expectations of future
events. The estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the period in which
the estimate is revised if the revision effects only that period, or in the
period of revision and future periods if the revision affects both current and
future periods. The estimates and assumptions that have a significant effect on
the amounts recognised in the interim report are those related to establishing
depreciation and amortisation periods for the Group, and the estimates in
relation to future cash flows and discount rates utilised in impairment testing.
4. Taxation
Taxation for the 6 months ended 30th June 2007 has been calculated by applying
the estimated tax rate for the current financial year ending 31st December 2007.
5. Dividend
No dividend is to be paid.
6. Earnings per share
Six months to Six months to Year to
30th June 30th June 31st December
2007 2006 2006
Unaudited Unaudited Audited
#000 #000 #000
These have been calculated on profits/(losses) of:
- On continuing and discontinued operations 366 (401) (364)
- On continuing operations (48) (1) (163)
The weighted average number of shares used was:
Basic and diluted 64,669,106 64,669,106 64,669,106
7. Segmental analysis
Six months to Six months to Year to
30th June 30th June 31st December
2007 2006 2006
Unaudited Unaudited Audited
#000 #000 #000
Revenue by location of reporting entity
Europe 3,378 4,115 7,795
USA 2,965 3,109 6,205
Asia 653 725 1,441
6,996 7,949 15,441
Gross profit by location of reporting entity
Europe 1,167 1,113 2,437
USA 802 940 1,798
Asia 260 306 399
2,229 2,359 4,634
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, on 0207 648 4200.
Appendix to the unaudited interim report
Reconciliation of the Balance Sheet
as at 1st January 2006 from UK GAAP to IFRS
UK GAAP as at IFRS 3 IAS 36 IAS 39 IFRS as at
1st January Non recognition Impairment of Financial 1st January
2006 of goodwill goodwill (b) Assets (b) 2006
Amortisation(a)
#000 #000 #000 #000 #000
Non current assets
Property, plant and equipment 388 388
Goodwill 184 (16) 168
Financial assets 6,917 440 7,357
Deferred tax assets 100 100
Trade and other receivables 440 (440) -
8,029 (16) - 8,013
Current assets
Inventories 1,311 1,311
Trade and other receivables 4,120 4,120
Income tax recoverable 30 30
Cash and cash equivalents 2,382 2,382
7,843 7,843
Total assets 15,872 (16) - 15,856
Current liabilities
Short term borrowings and 4,639 4,639
overdrafts
Trade and other payables 3,342 3,342
Current tax payable 56 56
Provisions 75 75
8,112 8,112
Non current liabilities
Long term borrowings 598 598
Long term financial liabilities 11 11
Long term provisions 250 250
Deferred tax liabilities - -
859 859
Total liabilities 8,971 8,971
6,901 (16) - 6,885
Equity
Share Capital 3,233 3,233
Share premium account 21,204 21,204
Retained earnings (17,589) (16) (17,605)
Equity attributable to
shareholders of Densitron 6,848 (16) - 6,832
Minority interests 53 53
Total equity 6,901 (16) - 6,885
Appendix to the unaudited interim report
Reconciliation of the income statement
for the year ended 31st December 2006 from UK GAAP to IFRS
UK GAAP IFRS 3 IAS 36 IFRS 5 IFRS year ended
year ended Non recognition Impairment of Business 31st December
31st December of goodwill goodwill (b) Combinations(c) 2006
2006 Amortisation(a) Audited
#000 #000 #000 #000 #000
Revenue 20,314 (4,873) 15,441
Cost of sales (14,153) 3,346 (10,807)
Gross profit 6,161 (1,527) 4,634
Distribution costs (58) 4 (54)
Administrative expenses (6,968) 24 (25) 2,443 (4,526)
Other operating income 102 (50) 52
(Loss)/profit from operations (763) 24 (25) 870 106
Profit on the sale of subsidiaries 748 (748) -
Financial income 53 53
Financial expense (324) 79 (245)
Profit before tax (286) 24 (25) 201 (86)
Income tax expense (66) (66)
Loss after tax (352) 24 (25) 201 (152)
Discontinued operations
Loss for the period from
discontinued operations - (201) (201)
(Loss) for the period (352) 24 (25) - (353)
Appendix to the unaudited interim report
Reconciliation of the Balance Sheet
as at 31st December 2006 from UK GAAP to IFRS
UK GAAP IFRS 3 IAS 36 IAS 39 IAS21 IFRS 5 IFRS 5 IFRS
as at 31st Non Impairment Financial Cumulative Dis- Non current as at 31st
December recognition of goodwill Assets translation continued assets December
2006 of goodwill (b) (b) differences operations classified 2006
#000 Amortisation (e) (c) as held for #000
(a) #000 #000 #000 #000 sale (d)
#000 #000
Non current assets
Property, plant and
equipment 364 (1) (236) 127
Goodwill 160 24 (41) 143
Financial assets 6,917 584 7,501
Deferred tax assets 67 67
Trade and other 584 (584) -
receivables
8,092 24 (41) - (1) (236) 7,838
Current assets
Inventories 931 (294) 637
Trade and other 4,038 (28) 4,010
receivables
Income tax recoverable 160 160
Cash and cash 1,292 1,292
equivalents
6,421 (322) 6,099
Non current assets
classified
as held for sale - 323 236 559
Total assets 14,513 24 (41) - - - 14,496
Current liabilities
Short term borrowings
and overdrafts 2,812 2,812
Trade and other 3,143 (194) 2,949
payables
Current tax payable 66 66
Provisions 75 75
6,096 (194) 5,902
Non current
liabilities
Long term borrowings 1,707 1,707
Long term financial 24 24
liabilities
Long term provisions 260 260
1,991 1,991
Liabilities directly
associated
with non current
assets
classified as held for 194 194
sale
Total liabilities 8,087 8,087
6,426 24 (41) - - - 6,409
Equity
Share Capital 3,233 3,233
Share premium account 21,204 21,204
Retained earnings (18,063) 24 (41) 111 (17,969)
Translation reserve (111) (111)
Equity attributable to
shareholders
of Densitron 6,374 24 (41) - - 6,357
Minority interests 52 52
Total equity 6,426 24 (41) - - 6,409
Appendix to the unaudited interim report
Reconciliation of the income statement
for the 6 months ended 30th June 2006 from UK GAAP to IFRS
UK GAAP IFRS 3 IAS 36 IFRS 5 IFRS
6 months ended Non recognition Impairment of Discontinued 6 months
30th June of goodwill goodwill (b) operations (c) ended
2006 Amortisation 30th June
(a) 2006
#000 #000 #000 #000 #000
Revenue 10,601 (2,653) 7,948
Cost of sales (7,331) 1,742 (5,589)
Gross profit 3,270 (911) 2,359
Distribution costs (34) (34)
Administrative expenses (3,487) 12 1,289 (2,186)
Other operating income 44 (13) 31
(Loss)/profit from operations (207) 12 365 170
Financial income 28 28
Financial expense (134) 35 (99)
(Loss)/profit before tax (313) 12 400 99
Income tax expense (95) (95)
Loss after tax (408) 12 400 4
Discontinued operations
Loss for the period from
discontinued operations - (400) (400)
(Loss) for the period (408) 12 - (396)
Appendix to the unaudited interim report
Reconciliation of the Balance Sheet
as at 30th June 2006 from UK GAAP to IFRS
UK GAAP IFRS 3 IAS 36 IAS 39 IAS21 IFRS
as at Non Impairment Financial Cumulative as at
recognition of goodwill Assets (b) translation
30th June of goodwill (b) #000 differences 30th June
2006 Amortisation #000 (e) 2006
#000 (a) #000 #000
#000
Non current assets
Property, plant and equipment 410 410
Goodwill 172 12 (16) 168
Financial assets 6,917 318 7,235
Deferred tax assets 74 74
Trade and other receivables 318 (318) -
7,891 12 (16) - 7,887
Current assets
Inventories 1,329 1,329
Trade and other receivables 3,905 3,905
Income tax recoverable 34 34
Cash and cash equivalents 1,729 1,729
6,997 6,997
Total assets 14,888 12 (16) - 14,884
Current liabilities
Short term borrowings
and overdrafts 2,160 2,160
Trade and other payables 4,007 4,007
Current tax payable 58 58
Provisions 75 75
6,300 6,300
Non current liabilities
Long term borrowings 1,853 1,853
Long term financial liabilities 33 33
Long term provisions 252 252
2,138 2,138
Total liabilities 8,438 8,438
6,450 12 (16) - 6,446
Equity
Share Capital 3,233 3,233
Share premium account 21,204 21,204
Retained earnings (18,045) 12 (16) 44 (18,005)
Translation reserve (44) (44)
Equity attributable to
shareholders of Densitron 6,392 12 (16) - - 6,388
Minority interests 58 58
Total equity 6,450 12 (16) - - 6,446
Notes to the unaudited IFRS Adjustments
a) Goodwill amortisation
Under UK GAAP, goodwill is amortised over its expected useful life, whereas
under IFRS goodwill is considered to have an indefinite life and is not
amortised, but is tested for impairment annually. Impairment provisions have
been made in both the years ended 31st December 2005 and 31st December 2006.
Adjustments have been made to reverse the goodwill charged under UK GAAP and
impairment of goodwill.
b) Financial assets
The investment in VBest has been accounted for as a fixed asset investment at
its cost less impairment under UK GAAP. The Directors consider that the fair
value of this asset is the equivalent of cost less impairment. The Group owns
24.48% of the equity of VBest and under adopted IFRS is required to consider its
ability to exercise influence on the presumption that it has significant
influence which would make VBest an associate. The Group does not have
significant influence over the financial or operating policies of VBest and has
consequently accounted for its holding as a financial asset at fair value
through the profit and loss account under this policy.
Deferred consideration due on sales of investments was treated under UK GAAP and
debtors due in more than one year. Under adopted IFRS the substance of these
transactions result in these amounts being treated as loans within financial
assets and accounted for using the effective interest method.
c) Discontinued Activities
Under adopted IFRS the results of discontinued activities can be shown as an
item after loss for the period on continuing operations.
d) Non Current Assets Held for Sale
Under IFRS 5 assets whose carrying amount will be recovered principally through
a sale transaction rather than continuing use are classified as non current
assets held for sale. The Sportsground that the Company owns in Blackheath is
one such asset. At the 31st December 2006 the Company was in advanced
negotiations with the Local Authority regarding the disposal of this asset.
In addition the sale of the Gaming business took place on 31st January 2007. At
31st December 2006 negotiations of the sale were in progress and principal terms
had been agreed. As such those assets subject to the sale have been classified
as non current assets held for sale.
e) Cumulative translation differences
Under IAS 21 cumulative translation differences for foreign operations should be
disclosed within a translation reserve as a separate part of equity.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SEWFWMSWSEIU
1 Year Densitron Tech. Chart |
1 Month Densitron Tech. Chart |
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
