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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 |
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TIDMIDA
RNS Number : 6984I
IdaTech PLC
17 March 2010
+-------------------------------+-------------------------------+
| Immediate Release | 17 March 2010 |
+-------------------------------+-------------------------------+
IdaTech plc
Preliminary Results
IdaTech plc (AIM: IDA) a global leader in the development and manufacture of
clean and reliable PEM fuel cell products for critical backup power markets,
today announces its Preliminary Results for the 12 months ended 31 December
2009.
Operational highlights
· 445 systems shipped and sold and more than five times 2008 volume
· Average order size more than doubled compared with 2008
· Launched ElectraGenTMH2 and sold over 300 systems
· Total number of channel partners increased by 4 to 35
o Addition of ACME Telepower as a distributor
· Commenced development of next generation XTR and XTi systems
o Significant reduction in cost
o Due for launch in second half of 2010
· Continued development of natural gas fueled system
o Further cost and reliability progress made
· Completion of two development contracts; transition of development
resources to commercial product development complete
· Upgrade of production facility in Mexico to support ElectraGenTMH2 unit
production
· Re-alignment of lower power products to take advantage of larger market
opportunity than currently exists for the 250 W iGenTM
· Backlog at the end of 2009 of 108 systems with positive contribution
margin for delivery in Q1 2010
Financial Highlights
· Revenue from product sales almost doubled to US$4.5million (2008 US$2.4
million)
· Total revenue increased to US$6.6 million (2008 US$5.9 million)
· Gross loss of US$5.0 million (2008 US$3.3 million) in line with
expectations
· Normalized EBITDA loss (as defined on page 7) US$23.3 million (2008
US$16.3 million) in line with expectations
· Continued financial support of the Investec Group
· Cash usage less than expected at US$24.9 million (2008 US$20.2 million)
Non-cash, impairment charge, of $2.7 million (after tax) in the carrying value
of the intangible assets relating to iGenTM
Commenting on the results, Hal Koyama, CEO said:
"The Board believes IdaTech is well positioned to take advantage of the
significant market opportunities that it sees for its next generation systems
and is confident of achieving increased sales above last year at a profit,
during 2010."
For further information please contact:
+----------------------------------+----------------------------+
| IdaTech plc | +1 541 383 3390 |
+----------------------------------+----------------------------+
| Harol Koyama, Chief Executive | |
| Officer | |
+----------------------------------+----------------------------+
| James Cooke, Chief Financial | |
| Officer | |
+----------------------------------+----------------------------+
| | |
+----------------------------------+----------------------------+
| Numis Securities Limited | +44 (0) 20 7260 1000 |
| | |
+----------------------------------+----------------------------+
| Michael Meade / Hugh Jonathan | |
| (Nominated Adviser) | |
| | |
+----------------------------------+----------------------------+
| Buchanan Communications | +44 (0) 20 7466 5000 |
+----------------------------------+----------------------------+
| Charles Ryland / Catherine Breen | |
+----------------------------------+----------------------------+
Chairman's Statement
IdaTech made very good progress both commercially and technically in 2009.
Commercially the Group has added a number of key customers with whom it is
certified and has achieved an increase in the average order size compared with
the prior year. The Group believes these are indications that the rate of
adoption of IdaTech's systems is increasing.
In addition, a number of strategic decisions were made during the year to ensure
the Group remains firmly on track to reach near term profitability. Amongst
these were the decisions to re-negotiate with ACME Telepower and to suspend the
further development of the 250 W iGenTM product line. IdaTech has identified a
much larger opportunity for lower power output products and plans to re-design
iGenTM to meet that opportunity.
Technically, IdaTech made breakthroughs which will be utilised in the next
generation systems currently under development. These breakthroughs
significantly reduce cost whilst improving both the performance and the
reliability of the system.
IdaTech is on track to release these next generation systems in late 2010 and
early 2011 and it is expected that they will lead the Group to cash breakeven.
Financial Overview
Total sales increased 12% to US$6.6 million compared with US$5.9 million in
2008. Of particular note is the increase in revenue from product sales which
increased from US$2.4 million in 2008 to US$4.5 million in 2009. This increase
was offset by a decrease in revenue from project work from US$3.4 million to
US$2.0 million, highlighting the planned transition of the business to
commercial product development.
The operating loss before tax widened to US$33.5 million from US$21.9 million in
2008. The majority of this increase arose due to the decision to cancel the
development of the current version of the iGenTM ,which resulted in an
accelerated write down of intangibles of US$4.5 million, and the unexpected loss
of a US$2.5 million tax credit from the State of Oregon, the state in which
IdaTech's development activity occurs. IdaTech is appealing the loss of this
tax credit. These financial statements have been prepared excluding the tax
credit for 2009 (all amounts relating to prior years have been received by the
Group) in the event the appeal is unsuccessful.
Funding
IdaTech's majority shareholder, the Investec Group, has indicated its current
intention to ensure that the Group is in a position to meet its debts as and
when they fall due.
The loan note funding provided by Investec together with further funding
required during the current year, will be repayable on 31 March 2011. The
Directors are actively considering the options available to refinance these
amounts ahead of the repayment date.
After due consideration, the Directors have concluded it is appropriate to
continue to prepare the financial statements on a going concern basis.
People
2009 has been another challenging but encouraging year for IdaTech. Without the
ongoing commitment, dedication and hard work of all of its employees, IdaTech
would not be in the position it is to take advantage of the opportunities in its
markets over the next few years and to ensure the Group fulfills its potential.
On behalf of the Board, I would like to thank everyone at IdaTech for their
contribution during the year.
Chief Executive's Business Review
Overview of 2009 and Path to Profitability
In 2009, the Group refined its strategic plan to achieve cash breakeven and
profitable growth at the earliest opportunity - IdaTech's "Path to
Profitability." The principal objective of the Group's path to profitability is
to achieve sustainable cash breakeven and profitability as soon as possible and
ahead of market expectations. This will be achieved by designing,
manufacturing and selling products that are efficient, reliable and offer a
compelling value proposition by significantly lowering the total cost of
ownership. Against the backdrop of a very difficult year for businesses
globally, IdaTech successfully executed against this plan and, despite its
increased losses in the year, continued to move towards profitable growth.
IdaTech's path to profitability has four key elements:
· Seeding the market: Prepare the worldwide customer base for rapid
adoption of IdaTech's fuel cell products.
· New product development: Identify and pursue next generation fuel cell
products that can compete directly in the diesel generator market and
simultaneously derive attractive gross margins for the Group.
· Lean production: Establishing and validating flexible, low cost and high
quality production capabilities.
· Focusing on execution: Eliminate or deemphasize activities that distract
the Group from its primary path to profitability and align resources to ensure
success.
Seeding the market
IdaTech's initial commercial focus is on the critical power backup market for
the telecommunication industry. This market has been estimated to be worth
around US$ 2 billion per annum, covering around 3 million sites globally.
Geographically, the Group is targeting the key markets of Asia, India and the
Americas.
During 2009, IdaTech significantly expanded its reach into its target markets
and increased its distributor network to 35 worldwide. IdaTech believes that
its selective use of distribution partners leverages its ability to cost
effectively expand across wide geographies. To date, the Group has achieved
certification for its products with 25 telecommunications companies, including 5
of the top 10 telecommunications companies worldwide by revenue. This strategy
of seeding the market is paying off. In 2009, IdaTech recorded sales volume
growth of over five times that shipped in 2008 and ended the year with a backlog
of 108 units representing almost 25% of the 2010 full year expected system
sales, with significant initial and repeat orders in each of the Group's key
regions.
IdaTech sold and shipped 445 systems in 2009. All of these systems were in the
targeted critical power backup application in the telecommunications market.
Sales to customers for commercial deployments of IdaTech's systems represented
almost all of the system sales in the year, demonstrating the increasing
commercialisation of IdaTech's fuel cell systems, and with the average order
size more than doubling compared with 2008.
As well as achieving a near doubling of unit sales of the ElectraGenTM,
ElectraGenTM XTR and XTi over 2008 levels, IdaTech sold 300 ElectraGenTMH2
systems to ACME Telepower (the direct hydrogen fueled product developed during
the year). Deployment of these systems is expected to be completed by the end of
the second quarter of 2010. In addition to these sales, there was significant
interest for sales outside of India.
IdaTech ended the year receiving an order for 108 ElectraGenTM H2 systems. At
the date of this report all have been shipped and approximately one third of the
systems have been deployed. These systems represent an important step toward
profitability, making a positive contribution to overheads.
New Product Development
IdaTech believes there have been two main barriers to the mass adoption of
stationary fuel cells; the cost and availability of hydrogen as a fuel (the so
called hydrogen barrier) and the capital, or first cost of the fuel cell
systems. IdaTech, through its proprietary multi-fuel reforming capability has
eliminated the hydrogen barrier 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 to
transport to site and makes refueling, especially in difficult environments,
extremely challenging. During 2009, IdaTech conducted intensive development of
three new fuel cell products. The objective of this development was to produce
products that can compete directly with traditional diesel generators and
provide the Group with attractive margins. The new products will also have
increased reliability and durability resulting in reduced life cycle costs to
the customer.
The first product, the ElectraGen(TM)H2, was completed in less than eight months
and under budget. Three hundred of these systems were sold and shipped to ACME
for deployment in India. A variant of this product was also produced and 108
systems were sold to an Asian customer.
The second product is the next generation of the liquid fueled fuel cell
systems, the ElectraGen(TM)ME. It will be launched in the second half of 2010
and represents the core product supporting the Group's drive to profitable
growth. The ElectraGen(TM)ME's cost base will be significantly less than that
of its predecessor system. Additionally, the durability of key components will
increase, while reducing its size by approximately 30%. The Group believes this
product can compete directly with diesel generator systems.
Currently, due to product cost, IdaTech believes that it has only addressed 1%
of the potential telecommunications market. However, the Group believes the
ElectraGen(TM)ME will expand the addressable market to 1.8 million base
stations.
The third product, the ElectraGen(TM)NG, started development in late 2008 and
continued throughout 2009. This product will expand IdaTech's fuel capability to
include natural gas in its commercial products. As previously announced, this
program was delayed due to the time taken to develop the necessary global supply
chain base and to fully test components. This latter issue arose as, after
compiling usage data from the ElectraGenTMH2 systems deployed earlier in the
year, it became apparent that the operational profile of the systems in India
meant that the systems would cycle on and off many more times per day than
originally expected. This resulted in the need to re-examine and test all
components and modules to ensure the necessary reliability and durability of the
system. It is believed that the ability to use natural gas as a fuel will open
additional telecom opportunities and potential adjacent applications in the
future. Full production of this product is expected in 2011.
In each case, IdaTech's new products systems are being developed using a design
for manufacturability methodology which was established at the end of 2008 and
fully implemented in early 2009. Additionally, enhanced design validation
testing procedures have been introduced. These processes, coupled with
modifications to the long term testing procedures, significantly increase the
level of pre-production readiness and reliability testing of components,
sub-assemblies, modules and complete systems. These changes are believed also
to increase the reliability of the end product as well as reduce the overall
cost of developing, manufacturing and servicing them.
The Group's product cost and performance objectives are being met through the
following specific initiatives:
· proprietary technological advances;
· product design simplification;
· increased use of off the shelf parts; and
· establishment of a global supply chain, taking advantage of lower cost
jurisdictions.
Lean Production
In 2007 IdaTech opened its production plant in Tijuana, Mexico. This facility
gives the Group a flexible, low cost volume manufacturing operation without the
need for large capital investment. These operations were expanded in 2009, with
the introduction of a gravity fed production line and an upgraded test facility.
These improvements enabled the successful delivery of the ElectraGenTMH2
product in the second half of the year, positioning the facility for the
production of the ElectraGenTMME in 2010. The ability of the facility to ramp
up to higher volume was demonstrated in the last quarter of 2009 when the 300
ElectraGenTMH2 systems were assembled and shipped, following a successful
handover from the development team. In early 2010, the Tijuana facility was
awarded ISO 9001 certification.
In the second half of the year, IdaTech established an Indian entity, which is
currently focusing on building the low cost supply chain outside of North
America for the ElectraGenTM ME and NG product lines. Once fully equipped,
following order growth, the Indian facility can achieve a production capacity of
approximately 10,000 units per year.
Focusing on Execution
During the year, IdaTech took a number of tough decisions in its path to
profitability. Among the most significant of these was the decision to
re-negotiate the contract with ACME Telepower for the natural gas fueled fuel
cell system as the Group chose not to pursue a potentially loss making contract.
Instead, the Group renegotiated the contract into a distribution agreement,
allowing for improved pricing and more time for component verification and
testing.
Additionally, IdaTech took the decision to cease development on its iGen(TM) 250
Watt fuel cell product. The Group believes the sub-one kilowatt market for its
fuel cell products is attractive, but is conducting research into the specific
product attributes, such as maximum power output, that are required.
Additionally, the ElectraGen(TM) product family offers significantly greater
near term potential for profitable growth. Consequently, the Group has made the
decision to cancel the development of the iGen(TM) product and focus resources
on the ElectraGen(TM)ME in the near term and until the lower power product
specification has been completed. The current version of the iGen(TM) product
will continue to be sold to support development of that market. Consequently,
an impairment to the carrying value of the iGenTM was made - see financial
overview below.
IdaTech successfully completed the final stage (US$0.9 million) of a three year,
US$3.0 million contract for the development of a large scale palladium metal
membrane for a Japanese group in 2009.
The Group also successfully completed a development program with the US
Department of Energy during the year, recognizing around US$0.2 million in the
year and re-started a portion of the program with the US Army for the
development of a dual fuel integrated system which had been deferred from 2008.
Of the US$0.5 million deferred at the end of 2008, US$0.3 million was recorded
in 2009 leaving US$0.2 million carried into 2010.
Financial Overview
Revenue for 2009 was US$6.6 million (2008 : US$5.9 million) of which US$4.5
million was from the sale of products, an almost doubling of revenue from the
2008 level of US$2.4 million, reflecting the increased number of systems sold.
There was a decrease in the average selling price, as 300 of the 445 systems
shipped were the lower priced ElectraGenTMH2 systems sold to ACME Telepower.
Revenue from development contracts, derived from Government and industrial
customers was US$2.0 million (2008 US$3.4 million) in line with IdaTech's
strategy of realigning development resources to next generation product
development.
A gross loss of US$5.0 million (2008 loss of US$3.3 million) was recorded. This
loss arose as a result of increased product sales which were made at a loss, a
decrease in project related revenue which attracts a higher positive margin and
the cost of expansion of the Tijuana facility in Mexico.
The operating loss for 2009 was US$33.5 million (2008: US$21.9 million). This
increased loss was materially impacted by two factors:
- the write off of the carrying value of the intangible assets relating to
the iGenTM product line as discussed above of US$4.5 million;
- Withdrawal of the Business Energy Tax Credit ("BETC") by the State of
Oregon of US$2.5 million. Since 2006, IdaTech has received approximately 25%
of the cost of relevant development expenses as a rebate from the State of
Oregon. In early 2010, the Oregon Department of Energy notified the Group that
BETC would not be available for 2009, despite the assurances that had been made
to the Group during the course of the year. IdaTech has appealed but has taken
a cautious approach and has prepared these financial statements as if the appeal
is unsuccessful.
Allowing for these factors, EBITDA loss stated on a comparable basis to 2008
('normalized EBITDA') for the year US$23.3 million (2008 US$ 16.3 million) and
the operating loss would be US$26.5 million (2008 US$ 21.9 million) both in line
with management and market expectations.
Research and development costs in the year were US$17.7 million (2008 US$7.8
million). Allowing for the potential withdrawal of the BETC of US$2.5 million
and the write off of the intangible assets relating to the iGenTM product of US$
4.5 million, the costs for 2009 would have been US$10.7 million. This increase
over the prior year is due to the full year cost of the expansion that occurred
during late 2008 and the cost of concurrently developing the three next
generation products; ElectraGenTM H2, ME and NG products. Of the $17.7 million
total cost, US$7.0 million relate to non-cash amortization costs (2008 US$2.4
million).
Sales, general and administrative expenses were flat at US$10.8 million (2008
US$10.8 million). Overall administrative expenses fell by US$0.2 million versus
2008 due to reduced insurance, legal and professional fees. Sales related
expenses also fell US$0.2 million compared to the prior year despite the
addition of extra sales resources in North America due to lower travel, trade
shows and advertising expenditures. These decreases were offset by the cost of
establishing the operation in India.
Finance costs increased to US$1.6 million (2008 US$0.2 million) as the business
was funded by its principal shareholder, the Investec Group. The loan is
unsecured and interest is charged at 8% per annum.
The income tax credit increased to US$2.6 million (2008 US$0.9m) due to the
write back of the deferred tax credit no longer required following the write
down in the carrying value of the intangible assets relating to the iGenTM
product line.
Cash flow utilised by operations increased to US$23.1 million in the year (2008
US$18.1 million) mainly due to a planned increase in development costs as
recorded above. Purchase of tangible assets of US$0.4 million was in line with
the 2008 capital expenditure levels. Three quarters of this expenditure was
invested in the Tijuana plant to increase its capacity for production and
testing. Expenditure on intangible assets fell US$0.5 million to US$1.3million
(2008 US$1.8 million), reflecting the Group's focus on cash management in the
year.
The other principal changes in the balance sheet are the decreases in inventory,
intangible assets and deferred tax and an increase in accounts receivable and
borrowings.
There was a decrease in the level of inventories at the end of 2009 compared to
2008 of US$0.7 million to US$2.5 million resulting from a reduction in the level
of raw materials and work-in-progress. This reduction occurred due to a better
alignment of sales forecast and the purchasing cycle. Finished goods inventory
remained constant at US$0.2 million.
Accounts receivable increased by US$0.1 million to US$3.9 million. This
increase was due to two factors: an increase in the trade receivables resulting
from the higher sales made in the last two months of the year of $1.9 million
which was largely offset by the fact the BETC receivable for 2009 has not been
included in the financial statements whereas the balance sheet for 2008 included
US$1.9 million.
The carrying value of intangible assets decreased by US$ 5.7 million to US$ 18.1
million compared with the prior year. This was mainly due to the write off of
the intangible assets relating to the iGenTM product of US$ 4.5 million, the
annual amortization charge of US$ 2.5 million offset by the part-capitalization
of development work in the year relating to the ElectraGenTM ME and NG products
of US$1.3 million.
During the year, IdaTech drew upon its loan facility with the Investec Group,
its principal shareholder. During 2009, IdaTech drew down $25 million. At the
end of the year the balance was $32 million. The loan is due for repayment on
31 March 2011.
Funding and going concern
These financial statements have been prepared on a going concern basis as the
Investec Group, IdaTech's main shareholder, has indicated its willingness to
fund the business.
Current funding is via debt. Although the timing is yet to be finalised, the
Board believes it would be desirable to raise additional equity funding,
Outlook
The Group believes that 2010 will mark a significant turning point for IdaTech,
driving its product margin into positive territory, while bringing its product
pricing into direct competition with diesel generators. Demonstrating the
initial step in this change, the first 108 systems shipped in 2010 will be at a
positive contribution margin. During the second half of 2010, IdaTech plans to
release for commercial sale the next generation ElectraGenTM ME systems. These
are expected to be significantly lower cost and to have higher performance than
the current ElectraGenTM XTR and XTi systems.
Consequently, the Group expects to see a reduction in the cash burn rate as the
next generation systems begin to make a positive gross margin and contribution
to the operational expenses of the business.
The Board believes IdaTech is well positioned to take advantage of the
significant market opportunities that it sees for its next generation systems
and is confident of achieving increased profitable sales, during 2010.
Consolidated statement of comprehensive income for the year ended 31 December
2009
+---------------------------------------+------------+------------+
| | Year | Year |
| | ended 31 | ended 31 |
| | December | December |
| | 2009 | 2008 |
+---------------------------------------+------------+------------+
| | US$'000 | US$'000 |
+---------------------------------------+------------+------------+
| | | |
+---------------------------------------+------------+------------+
| Revenue | 6,550.6 | 5,930.7 |
+---------------------------------------+------------+------------+
| Cost of Sales | (11,537.2) | (9,226.2) |
+---------------------------------------+------------+------------+
| | | |
+---------------------------------------+------------+------------+
| Gross loss | (4,986.6) | (3,295.5) |
+---------------------------------------+------------+------------+
| | | |
+---------------------------------------+------------+------------+
| Research and development costs | (17,708.8) | (7,835.8) |
+---------------------------------------+------------+------------+
| Sales, general and administrative | (10,797.6) | (10,743.9) |
| expenses | | |
+---------------------------------------+------------+------------+
| | | |
+---------------------------------------+------------+------------+
| Other expense | (3.7) | (48.2) |
+---------------------------------------+------------+------------+
| | | |
+---------------------------------------+------------+------------+
| Operating loss | (33,496.7) | (21,923.4) |
+---------------------------------------+------------+------------+
| | | |
+---------------------------------------+------------+------------+
| Operating loss before exceptional | (28,989.7) | 21,923.4) |
| cost | | |
+---------------------------------------+------------+------------+
| Research & development exceptional | (4,507.0) | - |
| cost | | |
+---------------------------------------+------------+------------+
| Operating loss | (33,496.7) | (21,923.4) |
+---------------------------------------+------------+------------+
| | | |
+---------------------------------------+------------+------------+
| Finance income | 6.3 | 139.8 |
+---------------------------------------+------------+------------+
| Finance costs | (1,595.1) | (166.4) |
+---------------------------------------+------------+------------+
| | | |
+---------------------------------------+------------+------------+
| Finance costs - net | (1,588.8) | (26.6) |
+---------------------------------------+------------+------------+
| | | |
+---------------------------------------+------------+------------+
| Loss before income tax | (35,085.5) | (21,950.0) |
+---------------------------------------+------------+------------+
| Income tax credit | 2,571.6 | 857.6 |
+---------------------------------------+------------+------------+
| | | |
+---------------------------------------+------------+------------+
| Loss for the year | (32,513.9) | (21,092.4) |
+---------------------------------------+------------+------------+
| | | |
+---------------------------------------+------------+------------+
| Other comprehensive income | | |
+---------------------------------------+------------+------------+
| Gains/losses recognised directly in | | |
| equity | | |
+---------------------------------------+------------+------------+
| Other | 409.8 | (66.0) |
+---------------------------------------+------------+------------+
| Currency translation differences | (3.4) | (5.0) |
+---------------------------------------+------------+------------+
| Other comprehensive losses for the | 406.4 | (71.0) |
| year | | |
+---------------------------------------+------------+------------+
| Total comprehensive loss for the year | (32,107.5) | (21,163.4) |
+---------------------------------------+------------+------------+
| | | |
+---------------------------------------+------------+------------+
| Basic and diluted loss per share | (0.63) | (0.43) |
| (US$) | | |
+---------------------------------------+------------+------------+
Consolidated statement of changes in shareholders' equity for the year ended 31
December 2009
+---------------+----------------------+---------------------+--------------------+--------------------------+--------------------+----------------------+
| | Capital | Premium | Reserve | Earnings | Acquisition | holders' |
| | | | | | | |
+---------------+----------------------+---------------------+--------------------+--------------------------+--------------------+----------------------+
| | | | | | Reserve | Equity |
+---------------+----------------------+---------------------+--------------------+--------------------------+--------------------+----------------------+
| | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
+---------------+----------------------+---------------------+--------------------+--------------------------+--------------------+----------------------+
| As at 31 | 991.2 | 57,754.8 | (2,371.8) | (15,902.9) | 9,477.7 | 49,949.0 |
| December | | | | | | |
| 2007 | | | | | | |
+---------------+----------------------+---------------------+--------------------+--------------------------+--------------------+----------------------+
| Comprehensive | | | | | | |
| income | - | - | - | | - | - |
+---------------+----------------------+---------------------+--------------------+--------------------------+--------------------+----------------------+
| Loss for | | | | (21,092.4) | | (21,092.4) |
| the year | - | - | - | | - | |
+---------------+----------------------+---------------------+--------------------+--------------------------+--------------------+----------------------+
| Other | | | | (66.0) | | (66.0) |
| | - | - | | | - | |
+---------------+----------------------+---------------------+--------------------+--------------------------+--------------------+----------------------+
| Currency | | | | (5.0) | | (5.0) |
| exchange | - | - | | | - | |
| differences | | | | | | |
+---------------+----------------------+---------------------+--------------------+--------------------------+--------------------+----------------------+
| Share based | | | | 2,995.3 | | 2,995.3 |
| payments | - | - | - | | - | |
+---------------+----------------------+---------------------+--------------------+--------------------------+--------------------+----------------------+
| As at 31 | 991.2 | 57,754.8 | (2,371.8) | (34,071.0) | 9,477.7 | 31,780.9 |
| December | | | | | | |
| 2008 | | | | | | |
+---------------+----------------------+---------------------+--------------------+--------------------------+--------------------+----------------------+
| | | | | | | |
+---------------+----------------------+---------------------+--------------------+--------------------------+--------------------+----------------------+
| Loss for | | | | (32,513.9) | | (32,513.9) |
| the year | - | - | - | | - | |
+---------------+----------------------+---------------------+--------------------+--------------------------+--------------------+----------------------+
| Other | | 346.7 | | | | 346.7 |
| | | | - | - | | |
+---------------+----------------------+---------------------+--------------------+--------------------------+--------------------+----------------------+
| Currency | | | | (3.4) | | (3.4) |
| exchange | | | - | | | |
| differences | | | | | | |
+---------------+----------------------+---------------------+--------------------+--------------------------+--------------------+----------------------+
| Share based | | | | 2,906.6 | | 2,906.6 |
| payments | | | | | | |
+---------------+----------------------+---------------------+--------------------+--------------------------+--------------------+----------------------+
| Treasury | | | (1,037.3) | | | (1,037.3) |
| shares | | | | | | |
+---------------+----------------------+---------------------+--------------------+--------------------------+--------------------+----------------------+
| Shares sold | | | 1,319.7 | | | 1,319.7 |
| by employee | | | | | | |
| benefit | | | | | | |
| trust | | | | | | |
+---------------+----------------------+---------------------+--------------------+--------------------------+--------------------+----------------------+
| Share based | | | | (1,729.5) | | (1,729.5) |
| payments | | | | | | |
| utilised | | | | | | |
+---------------+----------------------+---------------------+--------------------+--------------------------+--------------------+----------------------+
| Issuance of | 28.4 | | | | | 28.4 |
| shares to | | - | - | | | |
| employee | | | | | | |
| benefit | | | | | | |
| trust | | | | | | |
+---------------+----------------------+---------------------+--------------------+--------------------------+--------------------+----------------------+
| As at 31 | 1,019.6 | 58,101.5 | (2,089.4) | (65,411.2) | 9,477.7 | 1,098.2 |
| December | | | | | | |
| 2009 | | | | | | |
+---------------+----------------------+---------------------+--------------------+--------------------------+--------------------+----------------------+
Reverse acquisition reserve: The reverse acquisition reserve arose as a result
of the share for share exchange undertaken in advance of the initial public
offering. 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 31 December 2009
+--------------------------------------+----+------------+----------+-------------+
| | | As at | | As at 31 |
| | | 31 | | December |
| | | December | | |
+--------------------------------------+----+------------+----------+-------------+
| | | 2009 | | 2008 |
+--------------------------------------+----+------------+----------+-------------+
| | | US$'000 | | US$'000 |
+--------------------------------------+----+------------+----------+-------------+
| ASSETS | | | | |
+--------------------------------------+----+------------+----------+-------------+
| Non-current assets | | | | |
+--------------------------------------+----+------------+----------+-------------+
| Property, plant and equipment | | 1,102.5 | | 1,005.6 |
+--------------------------------------+----+------------+----------+-------------+
| Goodwill | | 18,001.2 | | 18,001.2 |
+--------------------------------------+----+------------+----------+-------------+
| Intangible assets | | 18,098.2 | | 23,792.9 |
+--------------------------------------+----+------------+----------+-------------+
| Trade and other receivables | | 100.0 | | 100.0 |
+--------------------------------------+----+------------+----------+-------------+
| | | 37,301.9 | | 42,899.7 |
+--------------------------------------+----+------------+----------+-------------+
| Current assets | | | | |
+--------------------------------------+----+------------+----------+-------------+
| Inventories | | 2,506.4 | | 3,233.3 |
+--------------------------------------+----+------------+----------+-------------+
| Trade and other receivables | | 3,910.4 | | 3,814.5 |
+--------------------------------------+----+------------+----------+-------------+
| Cash and cash equivalents | | 756.9 | | 620.0 |
+--------------------------------------+----+------------+----------+-------------+
| | | 7,173.7 | | 7,667.8 |
+--------------------------------------+----+------------+----------+-------------+
| Total assets | | 44,475.6 | | 50,567.5 |
+--------------------------------------+----+------------+----------+-------------+
| | | | | |
+--------------------------------------+----+------------+----------+-------------+
| LIABILITIES | | | | |
+--------------------------------------+----+------------+----------+-------------+
| Current liabilities | | | | |
+--------------------------------------+----+------------+----------+-------------+
| Trade and other payables | | (5,972.1) | | (4,022.3) |
+--------------------------------------+----+------------+----------+-------------+
| Borrowings | | - | | (53.0) |
+--------------------------------------+----+------------+----------+-------------+
| Provisions for other liabilities and | | (35.3) | | (124.1) |
| charges | | | | |
+--------------------------------------+----+------------+----------+-------------+
| Deferred income tax liabilities | | (493.5) | | (768.8) |
+--------------------------------------+----+------------+----------+-------------+
| | | (6,500.9) | | (4,968.2) |
+--------------------------------------+----+------------+----------+-------------+
| Net current assets | | 672.8 | | 2,699.6 |
+--------------------------------------+----+------------+----------+-------------+
| Non-current liabilities | | | | |
+--------------------------------------+----+------------+----------+-------------+
| Borrowings | | (32,000.0) | | (7,002.3) |
+--------------------------------------+----+------------+----------+-------------+
| Provisions for other liabilities and | | (688.9) | | (332.2) |
| charges | | | | |
+--------------------------------------+----+------------+----------+-------------+
| Deferred income tax liabilities | | (4,187.6) | | (6,483.9) |
+--------------------------------------+----+------------+----------+-------------+
| | | (36,876.5) | | (13,818.4) |
+--------------------------------------+----+------------+----------+-------------+
| Total liabilities | | (43,377.4) | | (18,786.6) |
+--------------------------------------+----+------------+----------+-------------+
| Total net assets | | 1,098.2 | | 31,780.9 |
+--------------------------------------+----+------------+----------+-------------+
| | | | | |
+--------------------------------------+----+------------+----------+-------------+
| EQUITY | | | | |
+--------------------------------------+----+------------+----------+-------------+
| Capital and reserves | | | | |
+--------------------------------------+----+------------+----------+-------------+
| Share capital | | 1,019.6 | | 991.2 |
+--------------------------------------+----+------------+----------+-------------+
| Share premium | | 58,102.1 | | 57,754.8 |
+--------------------------------------+----+------------+----------+-------------+
| Retained earnings - deficit | | (67,501.2) | | (36,442.8) |
+--------------------------------------+----+------------+----------+-------------+
| Reverse acquisition reserve | | 9,477.7 | | 9,477.7 |
+--------------------------------------+----+------------+----------+-------------+
| Total shareholders' equity | | 1,098.2 | | 31,780.9 |
+--------------------------------------+----+------------+----------+-------------+
Consolidated cash flow statement for the year ended 31 December 2009
+--------------------------------------+-----+-----------------------+----------------------+
| | | Year | Year |
| | | ended | ended |
| | | 31 | 31 |
| | | December | December |
+--------------------------------------+-----+-----------------------+----------------------+
| | | 2009 | 2008 |
+--------------------------------------+-----+-----------------------+----------------------+
| | | US$'000 | US$'000 |
+--------------------------------------+-----+-----------------------+----------------------+
| Cash outflows from operating | | | |
| activities | | | |
+--------------------------------------+-----+-----------------------+----------------------+
| Cash outflows from operations | | (23,104.4) | (18,055.3) |
+--------------------------------------+-----+-----------------------+----------------------+
| Tax received | | | |
| | | | - |
+--------------------------------------+-----+-----------------------+----------------------+
| Interest paid | | (25.1) | (19.2) |
+--------------------------------------+-----+-----------------------+----------------------+
| | | | |
+--------------------------------------+-----+-----------------------+----------------------+
| Net cash outflow from operating | | (23,129.5) | (18,074.5) |
| activities | | | |
+--------------------------------------+-----+-----------------------+----------------------+
| | | | |
+--------------------------------------+-----+-----------------------+----------------------+
| Cash flows from investing activities | | | |
+--------------------------------------+-----+-----------------------+----------------------+
| Purchase of property, plant and | | (409.9) | (401.4) |
| equipment | | | |
+--------------------------------------+-----+-----------------------+----------------------+
| Purchase of intangible assets | | (1,272.4) | (1,838.2) |
+--------------------------------------+-----+-----------------------+----------------------+
| Interest received | | 6.3 | 139.8 |
+--------------------------------------+-----+-----------------------+----------------------+
| | | | |
+--------------------------------------+-----+-----------------------+----------------------+
| Net cash outflow from investing | | (1,676.0) | (2,099.8) |
| activities | | | |
+--------------------------------------+-----+-----------------------+----------------------+
| | | | |
+--------------------------------------+-----+-----------------------+----------------------+
| Cash flows from financing activities | | | |
+--------------------------------------+-----+-----------------------+----------------------+
| Proceeds of issue of shares (net of | | | |
| expenses) | | | - |
+--------------------------------------+-----+-----------------------+----------------------+
| Proceeds from borrowings | | 24,997.7 | 7,000.0 |
+--------------------------------------+-----+-----------------------+----------------------+
| Repayments of borrowings | | (55.3) | (2.9) |
+--------------------------------------+-----+-----------------------+----------------------+
| | | | |
+--------------------------------------+-----+-----------------------+----------------------+
| Net cash inflow from financing | | 24,942.4 | 6,997.1 |
| activities | | | |
+--------------------------------------+-----+-----------------------+----------------------+
| | | | |
+--------------------------------------+-----+-----------------------+----------------------+
| Net (decrease) / increase in cash | | 136.9 | (13,177.2) |
| and cash equivalents | | | |
+--------------------------------------+-----+-----------------------+----------------------+
| | | | |
+--------------------------------------+-----+-----------------------+----------------------+
| Cash and cash equivalents at | | 620.0 | 13,797.2 |
| beginning of the year | | | |
+--------------------------------------+-----+-----------------------+----------------------+
| | | | |
+--------------------------------------+-----+-----------------------+----------------------+
| Cash and cash equivalents at end of | | 756.9 | 620.0 |
| the year | | | |
+--------------------------------------+-----+-----------------------+----------------------+
| | | | |
+--------------------------------------+-----+-----------------------+----------------------+
Notes to the preliminary statements
1. Authorisation of financial statements and statement of compliance with IFRSs
The preliminary announcement for the year ended 31 December 2009 has been
prepared in accordance with International Financial Reporting Standards as
adopted by the European Union and those parts of the Companies Act 2006
applicable to companies reporting under IFRS. The accounting policies adopted in
this preliminary announcement are consistent with those used in the last
published
annual financial statements.
These preliminary statements do not constitute statutory accounts within the
meaning of Section 435 of the Companies Act 2006. They have, however, been
extracted from the statutory accounts for the period ended 31 December 2009. The
Auditors have reported on these financial statements; their reports were
unqualified, but did include reference to an emphasis of matter regarding the
Group's ability to continue as a going concern (see below), and did not contain
statements under Section 498(2) or 498(3) of the Companies Act 2006.. The 2008
statutory accounts have been filed with Registrar of Companies. The 2009
statutory accounts will be sent to shareholders on 21 May 2010 and will be filed
with the Registrar of Companies following their adoption at the forthcoming
Annual General Meeting.
2. General Information
IdaTech plc and its subsidiaries (together 'the Group') manufacture and
distribute fuel cells both directly and through distribution partners. The group
has manufacturing facilities in the US and Mexico. Our distribution network
includes sales offices in the US, Germany, France and Malaysia. During the year,
the Group expanded into India with possible manufacturing facilities in the near
future.
IdaTech plc is a public limited company which is quoted on the Alternative
Investment Market ('AIM') of the London Stock Exchange and is registered and
domiciled in the UK.
IdaTech plc (the "Company") was incorporated on 25 May 2007. With effect from 7
June 2007, the Company became the legal parent company of IdaTech UK Limited and
its subsidiary undertakings. This business combination, effected through an
exchange of equity interests, has been accounted for as a reverse acquisition in
accordance with IFRS 3 'Business Combinations'. IdaTech UK Limited was
incorporated on 13 July 2006 and acquired IdaTech Technologies, Inc, ("ITI")
IdaTech, LLC and IdaTech Fuel Cells GmbH on 20 July 2006.
3. Significant accounting policies
The accounting policies adopted in this preliminary announcement are consistent
with those used in the last published annual financial statements. These
policies have been consistently applied.
Basis of preparation
These financial statements have been prepared in accordance with International
Financial Reporting Standards ("IFRS") and IFRIC interpretations endorsed by the
European Union and with those parts of the Companies Act 2006 applicable to
companies reporting under IFRS. The consolidated financial statements have been
prepared under the historic cost convention. They have been prepared under the
going concern principle -see also Directors' Report.
Going concern
These financial statements have been prepared on a going concern basis. As
reported in the Chairman's Statement and Chief Executive's Business Review,
IdaTech's main shareholder, the Investec Group has indicated its current
intention to ensure the business is managed and/or appropriately funded so that
it is in a position to meet its debts as and when they fall due. This has been
provided as a current intention only and does not represent a legally binding
obligation by the Investec Group. Whilst the Directors have a reasonable
expectation that the shareholder will continue to support the Group, in view of
the nature of the support, there can be no certainty in this matter.
Additionally the loan notes due to the Investec Group amounting to $32 million
are repayable on 31 March 2011. The Directors will be working with the
shareholder to refinance the existing loan notes and additional funding drawn
down in the current financial year.
In view of the above, 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 considering the
uncertainties described above, the Directors have concluded that it is
appropriate to continue to adopt the going concern basis in preparing the
financial statements.
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 the Group's activities.
Application of new standards
(a) The Group has adopted the following new and amended IFRSs as of 1 January
2009:
· IAS 1 (revised), "Presentation of financial statements". The revised
standard prohibits the presentation items of income and expenses (that is
'non-owner changes in equity') in the statement of changes in equity, requiring
"non-owner changes in equity" to be presented separately from owner changes in
equity. All "non-owner changes in equity" are required to be shown in a
performance statement. The Group has elected to present single statement of
comprehensive income. The financial statements have been prepared under the
revised disclosure requirements.
· IFRS 8 "Operating segments" - This replaces IAS 14 "Segment reporting"
and requires a "management approach" under which segment information is
presented on the same basis as that used for internal reporting purposes.
· IFRS 2 (amendment), 'Share-based payment' deals with vesting conditions
and cancellations. It clarifies that vesting conditions are service conditions
and performance conditions only. Other features of a share-based payment are not
vesting conditions. These features would need to be included in the grant date
fair value for transactions with emloyees and others providing similiar
services; they would not impact the number of awards expected to vest or
valuation there of subsequent to grant date. All cancellations, whether by the
entity or by other parties, should receive the same accounting treatment. The
amendment does not have a material impact on the group or company's financial
statements.
(b) The following new standards, amendments to standards or interpretations are
mandatory for the first time for the financial year, but are not currently
relevant for the Group:
· IAS 23 - Borrowing cost
· IFRS 7 - Financial instruments
· IFRIC 12 "Service concession arrangements".
· IFRIC 13 "Customer loyalty programmes".
· IFRIC 14 "IAS 19 - the limit on a defined benefit asset, minimum funding
requirements and their interaction".
· IFRIC 15 "Agreement for the Construction of Real Estate".
· IFRIC 16 "Hedges of a Net Investment in a Foreign Operation".
· IFRIC 17 "Distribution of Non-cash Assets".
· IFRIC 18 "Transfers of Assets from Customers".
· IFRS 3 (amendment) "Business combinations" and consequential amendments
to IAS 27 "Consolidated and separate financial statements",
(c) The following new standards, amendments to standards and interpretations
have been issued, but are not effective for the financial year:
· IAS 28 "Investments in associates" and IAS 31 "Interests in joint
ventures", effective prospectively to business combinations for which the
acquisition date is on or after the beginning of the first annual reporting
period beginning on or after 1 July 2009.
· IAS 27 (revised), 'Consolidated and separate financial statements'
· IAS 38 (amendment), 'Intangible Assets'.
· IFRS 5 (amendment), 'Non-current assets held for sale and discontinued
operations'
4. Critical accounting estimates and judgments
Estimates and judgements are continually evaluated and are based on historical
experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting
accounting estimates will, by definition, rarely equal the related actual
results. The estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the
next financial year are outlined below.
Warranty provision
At 31 December 2009, the Group has recorded a liability of US$724,200 (31
December 2008 US$456,271) for warranty and installation costs. As the Group and
the industry in which it operates are in the development stage, there is little
historical data upon which to establish a reserve for warranty and installation
costs. The liability recorded represents management's best estimate of the
potential future costs of warranty and repair, which is calculated as a
percentage of product costs based on experience.
Share based payments
The Group operates a number of share based remuneration schemes. The valuation
requires a number of estimates and assumptions to be made.
Impairment of goodwill
The Group tests annually whether goodwill has suffered any impairment in
accordance with the accounting policy. Management's assumptions in performing
this test are a source of estimation uncertainty.
Valuation of intangible assets on acquisition
Intangible assets that existed at the date of the acquisition were identified
through an assessment of the economics of the transaction and split into core
technology and intellectual property R&D attributable to the existing products.
There are a number of assumptions underlying the valuation of these intangibles.
Therefore this is a source of estimation uncertainty.
5. Called up share capital
+--------------------------------------+---------------------------+--------------------------+--------------------------+
| | As at | | As at |
| | 31 | | 31 |
| | December | | December |
+--------------------------------------+---------------------------+--------------------------+--------------------------+
| | 2009 | | 2008 |
+--------------------------------------+---------------------------+--------------------------+--------------------------+
| | US$'000 | | US$'000 |
| | | | |
+--------------------------------------+---------------------------+--------------------------+--------------------------+
| | | | |
+--------------------------------------+---------------------------+--------------------------+--------------------------+
| IdaTech plc | | | |
+--------------------------------------+---------------------------+--------------------------+--------------------------+
| Authorised | | | |
+--------------------------------------+---------------------------+--------------------------+--------------------------+
| 100,000,000 Ordinary Shares of | 2,002.4 | | 2,002.4 |
| GBP0.01 each | | | |
+--------------------------------------+---------------------------+--------------------------+--------------------------+
| 51,405,524 (2008 49,499,969) | 1,019.6 | | 991.2 |
| allotted, called up and fully paid | | | |
+--------------------------------------+---------------------------+--------------------------+--------------------------+
| | | | |
+--------------------------------------+---------------------------+--------------------------+--------------------------+
| Beginning period | 991.2 | | 991.2 |
+--------------------------------------+---------------------------+--------------------------+--------------------------+
| Issuance of shares See note e | 28.4 | | |
| | | | - |
+--------------------------------------+---------------------------+--------------------------+--------------------------+
| As at 31 December 2009 | 1,019.6 | | 991.2 |
+--------------------------------------+---------------------------+--------------------------+--------------------------+
| | | | |
+--------------------------------------+---------------------------+--------------------------+--------------------------+
IdaTech plc
IdaTech plc was incorporated with an authorised and issued share capital of
GBP50,000 divided into 5,000,000 Ordinary Shares of GBP0.01 each.
The following changes have occurred in the share capital of the Company since
its date of incorporation:
(a) On 7 June 2007, the Company issued 27,313,475 Ordinary Shares to the
Investec Group in consideration for the transfer of all of the issued shares of
IdaTech UK Limited;
(b) On 21 June 2007, the Company issued 2,686,525 Ordinary Shares to the trustee
of the IdaTech Employee Trust;
(c) On 7 June 2007, the authorised share capital of the Company was increased
from GBP50,000 to GBP1,000,000 by the creation of 95,000,000 Ordinary Shares of
GBP0.01 each; and
(d) On 7 August 2007, the Company issued a further 14,499,969 shares in
connection with the Admission of the Company to AIM.
(e) On 3 April 2009, the Company issued 1,905,825 Ordinary Shares to the trustee
of the IdaTech Employee Trust for $28,400. The result was no increase in share
premium.
All issued shares are fully paid.
6. Cash outflow from operations
+--------------------------------------+---------------------------+----------------------------+
| | Year | Year |
| | ended | ended |
| | 31 | 31 |
| | December | December |
+--------------------------------------+---------------------------+----------------------------+
| | 2009 | 2008 |
+--------------------------------------+---------------------------+----------------------------+
| | US$'000 | US$'000 |
+--------------------------------------+---------------------------+----------------------------+
| | | |
+--------------------------------------+---------------------------+----------------------------+
| Loss before income tax | (35,085.5) | (21,950.0) |
+--------------------------------------+---------------------------+----------------------------+
| Adjustments for: | | |
+--------------------------------------+---------------------------+----------------------------+
| -Depreciation | 302.7 | 224.9 |
+--------------------------------------+---------------------------+----------------------------+
| -Amortisation | 6,967.1 | 2,374.1 |
+--------------------------------------+---------------------------+----------------------------+
| -Share based payment charge (net of | 2,906.6 | 2,929.3 |
| equity awards settled in cash) | | |
+--------------------------------------+---------------------------+----------------------------+
| -Loss on disposal of property, plant | 10.3 | 8.9 |
| and equipment | | |
+--------------------------------------+---------------------------+----------------------------+
| -Net finance costs - Note 20 | 1,588.8 | 26.6 |
+--------------------------------------+---------------------------+----------------------------+
| -Inventories | 726.9 | (1,564.2) |
+--------------------------------------+---------------------------+----------------------------+
| -Trade and other receivables | (95.9) | (596.6) |
+--------------------------------------+---------------------------+----------------------------+
| -Trade payables | (804.0) | 502.8 |
+--------------------------------------+---------------------------+----------------------------+
| -Other payables | 378.6 | (11.1) |
+--------------------------------------+---------------------------+----------------------------+
| Net cash utilised by operating | (23,104.4) | (18,055.3) |
| activities | | |
+--------------------------------------+---------------------------+----------------------------+
| | | |
+--------------------------------------+---------------------------+----------------------------+
| | | |
+--------------------------------------+---------------------------+----------------------------+
| Net book amount of property, plant | 10.3 | 8.9 |
| and equipment disposed | | |
+--------------------------------------+---------------------------+----------------------------+
| Total proceeds from disposal of | | |
| plant, equipment and property | - | - |
+--------------------------------------+---------------------------+----------------------------+
| Loss on disposal | 10.3 | 8.9 |
+--------------------------------------+---------------------------+----------------------------+
7. Loss per share
(a) Basic
Basic loss per share is calculated by dividing the loss attributable to equity
holders of the Company by the weighted average number of ordinary shares in
issue during the year.
+-----------------------------+--------------------------+--------------------------+
| | Year | Year |
| | ended | ended |
| | 31 | 31 |
| | December | December |
+-----------------------------+--------------------------+--------------------------+
| | 2009 | 2008 |
+-----------------------------+--------------------------+--------------------------+
| | US$ | US$ |
+-----------------------------+--------------------------+--------------------------+
| Loss attributable to the | (32,513,900) | (21,092,400) |
| equity holders of the | | |
| Company | | |
+-----------------------------+--------------------------+--------------------------+
| Weighted average number of | 51,405,524 | 49,499,969 |
| ordinary shares in issue | | |
+-----------------------------+--------------------------+--------------------------+
| | | |
+-----------------------------+--------------------------+--------------------------+
| Basic loss per share (US$ | (0.63) | (0.43) |
| per share) | | |
+-----------------------------+--------------------------+--------------------------+
| | | |
+-----------------------------+--------------------------+--------------------------+
(b) Diluted
Diluted loss 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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