Hiwave Technologies PLC Interim Management Statement (0521Y)

TIDMHIW

RNS Number : 0521Y

Hiwave Technologies PLC

18 February 2013

18(th) February 2013

HiWaveTechnologies plc

Interim Management Statement

HiWave Technologies plc ("HiWave" or the "Group"), whose subsidiaries develop and produce electronic components and devices that utilise innovative sound and touch technologies, is today issuing its Interim Management Statement for the period 1 October 2012 to 15 February 2013, in accordance with the requirements of the Disclosure and Transparency Rules of the UK Listing Authority.

-- Revenues for the quarter to 31(st) December 2012 were GBP200,000, below the Board's expectation, reflecting difficult market conditions

-- Gross profit margin on component revenue continues to improve at 37% and 100% on royalty revenue; cash and receivables as at 31(st) December 2012 GBP900,000; net assets as at 31(st) December 2012 GBP400,000; open order book currently over $344,000

-- All material points relating to the period 1 October 2012 to 15 February 2013 have previously been disclosed in the accounts

-- The Group's financial position has not changed materially since the release of the Final Results for the year ended 30 September 2012 announced on 31 January 2013

-- The risk that the sale process, previously announced and currently underway, does not conclude satisfactorily, either as to timing or level of proceeds, continues to represent a material uncertainty around the ability of HiWave to continue as a going concern and around the question as to whether HiWave will be able to generate any value for shareholders

-- The Board is continuing to progress the sales process although based on discussions and indicative offers received to date, the Board believes that there is a significant risk that, even if HiWave achieves a disposal of all or parts of its business, little or no value may be attributable to the ordinary shares

Operating Update

The Management team is currently focused on achieving a successful outcome to the sales process as outlined in the Final Results statement announced on 31 January 2013. The Board is closely monitoring the financial performance of the Group and its subsidiaries and continues to review potential alternative courses of action. However, the Group's future position is closely linked to the successful outcome of the sales process currently underway. In addition, due to the Company's current cashflow difficulties, the Group continues to experience significant limitations on its ability to pay its debts as they fall due. As previously announced, the HiWave Technologies (UK) Ltd subsidiary is currently supported by a debt facility for the purpose of facilitating the timely prosecution of the sales process. However, the availability of further drawdowns under such facility is dependent on achieving certain milestones in relation to the sales process and, as with the sales process generally, there can be no guarantee that such milestones will be met. The Board continues to seek appropriate professional advice on its obligations in this context.

David Calderwood, Executive Chairman stated:

"Our highest priority is the achievement of a successful outcome to the sales process that is currently underway. Further to our announcement on 31 January 2013, we have received a number of expressions of interest and discussions are progressing although there can be no guarantee that any of these discussions will lead to a successful sale. The ability of the Plc to return any value to shareholders is wholly dependent on the outcome of this sales process."

For further information, please contact:

 
 HiWaveTechnologies plc                Tel:[phone] 
 James Lewis,Chief Executive Officer 
 David Calderwood, Chairman 
 
 First Columbus                        Tel:[phone] 
 Chris Crawford 
 

Media enquiries

 
 FTI Consulting      Tel:[phone] 
 Sophie McMillan 
 Clare Thomas 
  Jessica Liebmann 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

IMSEAEAXFDXDEAF