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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Idatech | LSE:IDA | London | Ordinary Share | GB00B1WTNQ84 | 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% | 6.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
TIDMIDA
RNS Number : 2496P
IdaTech PLC
30 September 2011
For immediate release 30 September 2011
IdaTech plc
("IdaTech" or "the Company")
Interim Results for the six months ended 30 June 2011
Intention to cancel trading of shares on AIM
IdaTech plc (AIM: IDA), a global leader in the development and manufacture of clean and reliable extended run fuel cell products for off and on grid markets, operationally headquartered in Bend, Oregon, USA, today announces its Interim Results for the six months ended 30 June 2011 and intention to cancel trading and admission of shares on AIM.
Key points:
-- Board recommends that the Company be privatized and the cancellation of the admission of its shares to trading on AIM
-- Revenue from product sales increased by 26% to US$2.4 million (2010: US$1.7 million)
-- Operating loss of US$11.0 million, 10% better than the prior year (2010: US$12.2 million)
-- Successfully launched the ElectraGen(TM) ME family of products, following the pilot launch at the end of 2010
-- Increased sales of reformer based products compared to 2010
-- Total system sales of 120 units (2010: 150), due to shift in project timing and slower adoption rate
-- All systems sold made a positive gross contribution
-- Continued development of the liquid petroleum gas fuel cell system - iGen(TM) LP for off grid markets
-- Successful commercial demonstration of ElectraGen(TM) ME in off grid application with a major telecommunications company
-- Backlog at the end of the period of US$0.5 million for delivery in the second half of 2011
-- Additional orders totaling $1.0 million for ElectraGen(TM) ME systems received since the period end
-- Trials of the iGen(TM) LP in Asia for off grid applications commenced in September 2011
Commenting on the Interim Results, Hal Koyama, Chief Executive Officer of IdaTech, said:
"The launch of the ElectraGen(TM) ME suite of products during the period provides IdaTech with a profitable range of products to address the critical backup power market. Whilst adoption has been slower than anticipated, no significant sales opportunities have been lost. The underlying demand for backup power continues to be strong.
"Additionally, the substantial opportunity for off grid power and the demand for it from IdaTech's customers, have stimulated greater effort with off grid products within the Company. The development of the iGen(TM) LP continues, with an early customer trial set to commence later this year
"The Directors of IdaTech have unanimously determined that the cancellation of trading on AIM would offer greater flexibility in arranging future financing and entering into strategic partner relationships than in a public company setting. Additionally, experience has demonstrated that the trading of shares on AIM requires management time and cash resources without delivering significant benefit to the Company. We are looking forward to the additional opportunities afforded the Company by this structure, if approved by shareholders.
For further information please contact:
IdaTech plc Harol Koyama, Chief Executive Officer +1 541 322 1000 James Cooke, Chief Financial Officer Numis Securities Limited +44 (0) 20 7260 1000 Michael Meade / Hugh Jonathon Buchanan Communications +44 (0) 20 7466 5000 Charles Ryland / Catherine Breen
CHAIRMAN AND CHIEF EXECUTIVE OFFICER'S STATEMENT
The financial information included in this statement covers the six month period ending on 30 June 2011.
IdaTech's primary focus is on critical power backup and off grid power markets principally for telecommunication applications. The Company's activities during the period have continued to centre on preparing the foundations for commercial mass adoption of IdaTech's products within these target markets.
Commercial Progress
The new generation ElectraGen(TM) family of products was launched in the period under review following the pilot launch in December 2010. These systems incorporate substantial cost and performance improvements and offer customers a compelling value proposition against diesel generators whilst yielding positive margins for IdaTech. The development of iGen(TM) LP continued during the period, aimed at making the system more robust. This product, together with the ElectraGen(TM) ME, puts IdaTech in a unique position to serve both the off and on grid markets. This is of particular importance given the size of the off grid market.
Sales adoption has been slower than anticipated during the period. Although no significant sales opportunities have been lost, customers are taking longer to make their purchasing decisions and overall network construction plans.
During the six months ended 30 June 2011, IdaTech sold 120 reformer fuel cell systems (2010: 24), which use IdaTech's proprietary liquid fuel technology. No hydrogen gas fueled systems were sold in the period (2010: 126). This demonstrates the early shift towards IdaTech's liquid fuel systems and shows IdaTech is succeeding in eliminating the hydrogen barrier (the difficulty and expense of using hydrogen as a fuel) as its products can use a convenient, readily available and inexpensive liquid fuel rather than compressed bottled hydrogen gas. Bottled hydrogen gas is relatively expensive, difficult to store and transport to site and makes refueling, especially in difficult environments, extremely challenging.
All systems were gross margin contribution positive, before allocation of indirect factory expenses.
Financial Review
Revenue
Total revenue increased by 63% to US$3.1 million for the six months ended 30 June 2011 (2010: US$1.9 million). The increase is attributable to revenue from product sales of US$0.5 million to US$2.4 million and an increase in revenue derived from projects of US$0.6 million to US$0.7 million.
As discussed under Commercial Progress above, the mix of systems sold in the period was very different from the prior year, and was weighted towards the higher price reformed systems. The average selling price increased to US$18,900 from US$11,200 in 2010.
Revenue from development contracts accounted for US$0.6 million compared with US$0.1 million in 2010. This is due to the completion of a contract with the US Department of Energy which was deferred from last year.
Gross Loss
The business recorded a lower gross loss of US$2.0 million in the period (2010: gross loss of US$2.1 million). The additional costs of ramping up the factory for ElectraGen(TM) ME production, the lower sales volume than expected offset the higher positive gross contribution from the unit sales.
Operating expenses
Research and development costs decreased by US$0.4 million to US$4.0 million for the period under review, after deducting costs relating to development projects which are classified as cost of sales and capitalisation of product development costs. This decrease was primarily due to the completion of the ElectraGen(TM) ME development at the end of 2010.
Sales, general and administrative expenses fell by US$0.8 million to US$5.0 million. This was due to lower administration costs, lower share based payment charges and reduced sales costs following the temporary closure of the European sales office.
Interest receivable and payable
Interest received is negligible as the Group is financed by debt from its principal shareholder, the Investec Group. Debt financing increased by US$12 million to US$72 million in the period, resulting in an interest charge of US$2.6 million (2010: US$1.5 million). The increase in debt was used to fund operations and finance the working capital requirement.
Loss for the period before tax
The Group's loss before tax decreased by US$0.1 million to US$13.6 million for the six months to 30 June 2011. Excluding interest charges, the operating loss fell by US$1.2 million to US$11.0 million.
Cash flow
The cash outflow from operations was lower at US$8.8 million (2009: US$9.1 million) driven by reduced operating overheads.
The net cash used in the six months to 30 June 2011 (excluding the receipt of funds from the credit line drawdown) increased by US$ 0.8million to US$12.5 million (2009: US$11.7 million) due mainly to an increase in inventory levels built up to satisfy expected demand in the second half of the year.
Future funding and going concern
The Company will require additional funds to reach cash breakeven. The Board has concluded that IdaTech will find it easier to raise capital as a private company and that the benefits of Admission to AIM no longer outweigh the costs. Therefore, the Board recommends that the Company cancel the admission of its shares to trading on AIM. The Company has the support from its major shareholders. A circular to shareholders will be posted in due course. Shareholders should note that it is not intended that any offer be made to shareholder in conjunction with the proposed cancellation of trading on AIM.
Investec Group Investments (UK) Limited, IdaTech's largest shareholder and only lender has indicated its current intention to provide further financial support for the Company in an amount of $10 million. The repayment date for the loan note funding already provided by Investec together with this further funding required during the current year, has been extended to 30 October 2012.
In view of the above considerations, the Directors have concluded that a material uncertainty exists that may cast significant doubt upon the Group's ability to continue as a going concern. Nevertheless after making enquiries, and as a result of this continued financial support, and taking into account Investec's past support for the Company, its agreement to extend the loan repayment date and its support for taking the Company private, the Directors have concluded it is appropriate to continue to prepare the financial statements on a going concern basis.
The statement of comprehensive income and balance sheet show no intention or necessity to liquidate or curtail significantly the operations of the Group. Specifically, the assets of the Group have been valued and reported on the basis that they will be used for the purpose for which they were purchased in the ongoing operation of the business and no liabilities have been included that may arise on a significant curtailment of the Group's activities.
These interim statements are available on IdaTech's website, www.idatech.com.
Sir John Jennings Hal Koyama
Chairman Chief Executive Officer
Consolidated income statement for the period 1 January 2011 to 30 June 2011
Hot Features
Premium
Unaudited
Six months ended 30
June
2011 2010
US$'000 US$'000
Revenue 3,059.8 1,907.7
Cost of sales (5,100.6) (3,959.1)
Gross (loss) / profit (2,040.8) (2,051.5)
Research and development costs (3,961.4) (4,392.4)
Sales, general and administrative expenses (5,001.7) (5,775.1)
Operating loss (11,003.9) (12,218.9)
Finance income 0.1 0.7
Finance costs (2,620.9) (1,534.3)
Loss for the period before tax (13,624.7) (13,752.4)
Taxation 246.8 246.8
Loss for the period (13,377.9) (13,505.6)
============ ===========
Other Comprehensive Income
Gains / losses recognized directly
in equity
Other - -
Currency translation differences - -
Other comprehensive loss for the year - -
Total comprehensive loss for the year (13,377.9) (13,505.6))
============ ===========
Basic and diluted loss per share (US$) 4 (0.24) (0.27)
All amounts relate to continuing activities.
Unaudited consolidated statement of changes in shareholders' equity for the period 1 January to 30 June 2011
Share Share Employee Retained Reverse Total Share-
Benefit
Trust
Capital Premium Reserve Earnings Acquisition holders'
Reserve Equity
-------- -------- --------- --------- ------------ -------------
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
As of 1
January
2010 1,019.6 58,101.5 (2.089.4) (65,411.8) 9,477.7 1,098.2
Loss for the
period - - - (26,900.7) - (26,900.7)
Other - - - 484.0 484.0
Currency
Translation
differences - - - 6.5 - 6.5
Share based
payments - - - 1,600.0 - 1,600.0
Treasury
shares - - - 73.4 - 73.4
Shares sold
by employee
benefit
trust - - 442.4 - - 442.4
Share based
payments
utilized - - - (200.8) - (200.8)
Shares
issued to
employee
benefit
trust - - - - - -
As at 31
December
2010 1,019.6 58,101.5 (1,647.0) (90,348.8) 9,477.7 (23,397.0)
Loss for the
period - - - (13,377.9) - (13,377.9)
Other - - - - -
Currency
Translation
differences - - - (7.1) - (7.1)
Share based
payments - - - 631.5 - 631.5
Treasury
shares - - - (81.0) - (81.0)
Shares sold
by employee
benefit
trust - - 56.7 - - 56.7
Share based
payments
utilized - - - (68.7) - (68.7)
Shares
issued to
employee
benefit
trust - - - - - -
As at 30
June 2011 1,019.6 58,102.1 (1,590.3) (103,252.0) 9,477.7 (36,243.5)
======== ========= ========== ============ ======== ===========
Reverse acquisition reserve: The reverse acquisition reserve arose as a result of the share for share exchange undertaken when IdaTech plc acquired IdaTech UK Limited. This reserve comprises the excess of the market value of the IdaTech plc shares issued to the IdaTech UK Limited shareholders over and above the nominal value of these shares.
Consolidated balance sheet as at 30 June 2011
Unaudited Unaudited
30 June 31 December 30 June
2011 2010 2010
US$'000 US$'000 US$'000
ASSETS
Non-current assets
Property, plant and equipment 1,641.0 1,703.2 1,263.2
Goodwill 18,001.2 18,001.2 18,001.2
Intangible assets 21,987.9 22,350.7 17,955.0
Long term deposits 100.0 100.0 100.0
----------- ----------- ----------
41,730.1 42,155.1 37,319.4
----------- ----------- ----------
Current assets
Inventories 7,045.2 4,956.1 3,520.9
Trade and other receivables 2,947.5 2,381.7 1,754.4
Cash and cash equivalents 639.9 1,140.7 2,054.1
----------- ----------- ----------
10,632.6 8,478.5 7.329.3
----------- ----------- ----------
Total assets 52,362.7 50,633.6 44,648.7
LIABILITIES
Current liabilities
Trade and other payables (11,280.1) (9,062.1) (4,739.4)
Provisions for other liabilities
and charges (396.6) (396.6) (35.3)
Deferred income tax liabilities - - (493.5)
----------- ----------- ----------
(11,676.7) (9,458.7) (5,268.2)
----------- ----------- ----------
Net current assets (1,044.1) (980.2) 2,061.1
=========== =========== ==========
Non-current liabilities
Borrowings (72,000.0) (60,000.0) (45,000.0)
Provisions for other liabilities
and charges (988.8) (384.4) (988.8)
Deferred income tax liabilities (3,940.7) (4,187.5) (3,940.8)
----------- ----------- ----------
(76,929.5) (64,571.9) (49,929.6)
----------- ----------- ----------
Total liabilities (88,606.2) (74,030.6) (55,197.8)
----------- ----------- ----------
Total net assets (36,243.5) (23,397.0) (10,549.1)
=========== =========== ==========
EQUITY
Capital and reserves
Share capital 1,019.6 1,019.6 1,019.6
Share premium 59,139.5 58,101.5 58,102.1
Retained earnings - deficit (105,880.3) (91,995.8) (79,148.5)
Reverse Acquisition reserve 9,477.7 9,477.7 9,477.7
----------- ----------- ----------
Total shareholders' equity (36,243.5) (23,397.0) (10,549.1)
=========== =========== ==========
Consolidated cash flow statement for the six months to 30 June 2011
Unaudited
Six months
Note ended 30 June
2011 2010
---------- ----------
US$'000 US$'000
Cash flows from operating activities
Cash outflows from operations (8,839.3) (9,112.0)
Tax paid - -
Interest paid (2,620.9) (1,530.7)
Net cash outflow from operating
activities (11,460.2) (10,642.7)
---------- ----------
Cash flows from investing activities
Purchase of property, plant and
equipment (189.2) (357.1)
Purchase of intangible assets (851.5) (703.8)
Interest received .1 .7
Net cash outflow from investing
activities (1,040.6) (1,060.1)
---------- ----------
Cash flows from financing activities
Proceeds of issue of shares (net
of expenses) - -
Proceeds from borrowings 12,000.0 13,000.0
Repayments of borrowings - -
Net cash inflow from financing
activities 12,000.0 13,000.0
---------- ----------
Net decrease in cash and cash equivalents (500.8) 1,054.0
Cash and cash equivalents at beginning
of the period 1,140.7 756.9
Cash and cash equivalents at end
of the period 639.9 2,054.1
========== ==========
Cash flows from operating activities
Loss before tax and interest (11,013.9) (12,218.9)
Adjustments for
Depreciation 193.9 170.6
Amortisation 1,214.6 920.0
Share based payments 631.5 800.0
Inventories (2,096.3) (1,112.9)
Trade and other receivables (565.8) 1,045.9
Trade and other payables 510.4 246.0
Other payables 2,286.3 1,037.3
Foreign exchange movements - -
---------- ----------
Net cash generated utilised by
operating activities (8,839.3) (9,112.0)
========== ==========
NOTES TO THE UNAUDITED FINANCIAL INFORMATION FOR THE SIX MONTHS ENDED 30 JUNE 2011
1. General information
The Company is a public limited company incorporated and domiciled in the UK. The address of its registered office is 2 Gresham Street, London, EC2V 7QP. The Company has a listing on the AIM Market of the London Stock Exchange. The unaudited financial information for the six months ended 30 June 2011 was approved for issue on XX September 2011.
These interim financial results do not comprise statutory accounts within the meaning of section 240 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2010 were approved by the Board of Directors on 22 March 2011 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified and did not contain any statement under Section 237 of the Companies Act 2006 but it contained an emphasis of matter regarding the future funding requirement of the business.
2. Basis of preparation
These financial statements for the six months to 30 June 2011 have been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority and with International Accounting Standard ("IAS") 34," Interim financial reporting" as adopted by the European Union. The six-monthly financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2010, which have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union.
Investec Group Investments (UK) Limited, IdaTech's largest shareholder and only lender has indicated its current intention to provide further financial support for the Company in an amount up to $10 million. The repayment date for the loan note funding already provided by Investec together with this further funding required during the current year, has been extended to 30 October 2012.
In view of the above considerations, the Directors have concluded that a material uncertainty exists that may cast significant doubt upon the Group's ability to continue as a going concern. Nevertheless after making enquiries, and as a result of this continued financial support, and taking into account Investec's past support for the Company, its agreement to extend the loan repayment date and its support for taking the Company private, the Directors have concluded it is appropriate to continue to prepare the financial statements on a going concern basis.
The statement of comprehensive income and balance sheet show no intention or necessity to liquidate or curtail significantly the operations of the Group. Specifically, the assets of the Group have been valued and reported on the basis that they will be used for the purpose for which they were purchased in the ongoing operation of the business and no liabilities have been included that may arise on a significant curtailment of the Group's activities.
The Company will require additional funds to reach cash breakeven and the Board has concluded that IdaTech will find it easier to raise capital as a private company and that the benefits of Admission to AIM no longer outweigh the costs. Therefore the Board recommends that the Company cancel the admission of its shares to trading on AIM. A circular to shareholders will be posted in due course.
The income statement and balance sheet show no intention or necessity to liquidate or curtail significantly the operations of the Group. Specifically, the assets of the Group have been valued and reported on the basis that they will be used for the purpose for which they were purchased in the ongoing operation of the business and no liabilities have been included that may arise on a significant curtailment of Group activities.
3. Accounting policies
The accounting policies adopted by the Group are consistent with those of the annual financial statements for the year ended 31 December 2010, as described in those financial statements.
NOTES TO THE UNAUDITED FINANCIAL INFORMATION FOR THE SIX MONTHS ENDED 30 JUNE 2011
4. Loss per share
(a) Basic
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the company by the weighted average number of ordinary shares in issue during the period.
Unaudited Unaudited
Six months Six months
ended 30 June ended 30 June
2011 2010
Loss attributable
to the equity holders
of the company US$(13,377.9) US$(13,505.6)
Weighted average number
of ordinary shares
in issue 50,452,747 50,452,747
Basic loss per share
(US$ per share) (0.24) (0.27)
=================== ====================
(b) Diluted
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. For the share options, a calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the company's shares) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options.
The impact of the share options is anti-dilutive. Therefore the diluted loss per share is the same as the basic loss per share.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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