Final Results

 

TIDMNTY 
 
RNS Number : 9276V 
Network Technology PLC 
20 July 2009 
 

NETWORK TECHNOLOGY PLC 
 
 
20 July 2009 
Final Results for the year ended 31 March 2009 
 
 
Results 
I am pleased to announce our fifth consecutive profitable year, with profit 
before tax of GBP45,000 down slightly from GBP105,000 in 2008. Operating profit 
decreased to GBP46,000 (2008: GBP134,000) with continued investment in marketing 
activities in USA, Asia and Pacific. We will continue to benefit from this 
investment and anticipate significant growth in sales over the coming years. 
Turnover for the year amounted to GBP2.117 million, slightly down on the 
previous year (2008: GBP2.195 million) due to a further decrease in sales of 
legacy products which was almost fully compensated by increased sales of our 
FollowMe product line. Operating costs increased by 14.3% to GBP1.59 million. 
Earnings per share decreased to 0.7p (2008: 2.7p). 
The Directors are unable to recommend the payment of a final dividend for the 
year. However, the Directors are continuing to consider a share capital 
restructuring to permit the payment of dividends. 
The Company continued to focus on marketing activities and developing its 
channels for its key products. As a result, our order book at the end of June 
2009 was US$ 0.5 million Compared to US$ 0.4 million this time last year. 
Bank borrowings remain low and decreasing further to GBP158,000 at the year end, 
compared to GBP198,000 at the previous year end. 
 
 
Product Development 
The Company has continued to generate further interest in its main product 
lines: 
  *  FollowMe  Printing is a Printer Access Control and Accounting system which 
  addresses issues like security, availability, print-data encryption, access to 
  colour printers, copier fax and email facilities on Multi Function Printers as 
  well as ordinary printers and copiers. 
  *  Among other applications, the system is an important element in efficient 
  routing of documents, reducing waste, managing energy use, protecting companies 
  from breaches that might violate Sarbanes-Oxley or similar legislation affecting 
  many large corporate users based in, or doing business with, the US or Japan. 
  *  Networked Access Control Systems and Time and Attendance Terminals seamlessly 
  integrate almost all existing identification technologies such as swipe cards, 
  proximity cards, barcodes but also fingerprint and face recognition. This 
  product incorporates our own algorithms, which not only make us independent of 
  any particular reader or ID technology but also ensures its efficiency when used 
  with a larger number of people. 
  *  The Networked Fax Receiver is a network appliance that converts an incoming fax 
  directly into an email so it arrives instantly in an email inbox improving 
  delivery and enabling it to be efficiently forwarded as well as reducing waste 
  from Spam faxes. 
  *  DocuSender(TM) is a network appliance that allows a USB scanner to capture a 
  document and send it to a Fax machine via its built in fax modem, to an email 
  address or to an application. Users can select from a large range of Visioneer, 
  Xerox, Fujitsu or HP USB connected scanners the one that is best suited for 
  their application. 
 
 
 
New Product Development 
 
 
Renewable Energy and Power Saving Devices designed and manufactured by the Group 
are now being sold under the Ringdale brand. Significant investment has been 
made in this area and the company has currently 7 patents pending relating to 
its LED Light Fittings, Power Supplies and Reflector and Heat Sink technology. 
 
 
Corporate Activity 
During the year we have been focusing on increasing sales prospects throughout 
the Group.  We are confident that we should be able to announce a number of new 
major agreements to be signed with printer manufacturers in Japan within the 
current (2010) financial year to run alongside the agreements that we secured 
with Toshiba and Ricoh last year. 
We will keep shareholders informed of developments within the company. Market 
sensitive data will be published through the RNS service of the London Stock 
Exchange. Further information can be found at our website 
www.network-technology.com which also provides a direct link to either LSE 
market data for NTY or Yahoo market data. 
Copies of the 2009 Report and Accounts will be sent to shareholders in due 
course. Further copies will be available from the registered office of Network 
Technology PLC, 26 Victoria Way, Burgess Hill, West Sussex, RH15 9NF. 
 
 
Guidance to the Market 
The Company currently has firm orders of US$ 0.5 million for delivery within the 
next 12 months. 
Our focus remains on the development of revenues from our current product base 
as well as the development of our new range of LED Fixture products. Further 
improvement and development of our product range may be covered by cash 
generated within the Company. 
 
 
 
 
Klaus Bollmann 
Chairman, Network Technology Plc 
20 July 2009 
 
 
 
 
 
 
+-------------------------------------------------------++------------+------------++ 
| NETWORK TECHNOLOGY PLC                                 |            |             | 
+--------------------------------------------------------+------------+-------------+ 
| YEAR ENDED 31 MARCH 2009                               |            |             | 
+--------------------------------------------------------+------------+-------------+ 
|                                                        |            |             | 
+--------------------------------------------------------+------------+-------------+ 
| CONSOLIDATED INCOME STATEMENT                          |            |             | 
+--------------------------------------------------------+------------+-------------+ 
|                                                       |    31.03.09 |   31.03.08 | 
+-------------------------------------------------------+-------------+------------+ 
|                                                       |     GBP'000 |    GBP'000 | 
+-------------------------------------------------------+-------------+------------+ 
|                                                       |             |            | 
+-------------------------------------------------------+-------------+------------+ 
| Revenue                                               |       2,117 |      2,195 | 
+-------------------------------------------------------+-------------+------------+ 
| Cost of Sales                                         |       (477) |      (667) | 
+-------------------------------------------------------+-------------+------------+ 
|                                                       |             |            | 
+-------------------------------------------------------+-------------+------------+ 
| Gross Profit                                          |       1,640 |      1,528 | 
+-------------------------------------------------------+-------------+------------+ 
| Other operating expenses                              |     (1,594) |    (1,394) | 
+-------------------------------------------------------+-------------+------------+ 
|                                                       |             |            | 
+-------------------------------------------------------+-------------+------------+ 
| Profit/(Loss) from operations                         |          46 |        134 | 
+-------------------------------------------------------+-------------+------------+ 
|                                                       |             |            | 
+-------------------------------------------------------+-------------+------------+ 
| Investment income                                     |          13 |          0 | 
+-------------------------------------------------------+-------------+------------+ 
| Finance costs                                         |        (14) |       (29) | 
+-------------------------------------------------------+-------------+------------+ 
|                                                       |             |            | 
+-------------------------------------------------------+-------------+------------+ 
| Profit/(Loss) before tax                              |          45 |        105 | 
+-------------------------------------------------------+-------------+------------+ 
|                                                       |             |            | 
+-------------------------------------------------------+-------------+------------+ 
| Tax (charge)/credit                                   |        (30) |       (50) | 
+-------------------------------------------------------+-------------+------------+ 
|                                                       |             |            | 
+-------------------------------------------------------+-------------+------------+ 
| Profit/(Loss) for year from continuing operations     |          15 |         55 | 
+-------------------------------------------------------+-------------+------------+ 
|                                                       |             |            | 
+-------------------------------------------------------+-------------+------------+ 
| Earnings per share in pence                           |             |            | 
+-------------------------------------------------------+-------------+------------+ 
|                                                       |             |            | 
+-------------------------------------------------------+-------------+------------+ 
| Basic and Diluted                                     |         0.7 |        2.7 | 
+-------------------------------------------------------++------------+------------++ 
 
 
 
 
 
 
 
 
+-------------------------------------------------------+------------+------------+------------+ 
| NETWORK TECHNOLOGY PLC                                             |            |            | 
+--------------------------------------------------------------------+------------+------------+ 
| YEAR ENDED 31 MARCH 2009                                           |            |            | 
+--------------------------------------------------------------------+------------+------------+ 
|                                                                    |            |            | 
+--------------------------------------------------------------------+------------+------------+ 
| BALANCE SHEET                                                      |            |            | 
+--------------------------------------------------------------------+------------+------------+ 
|                                                       |   31.03.09 |   31.03.08 | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |    GBP'000 |    GBP'000 | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |            |            | 
+-------------------------------------------------------+------------+------------+ 
| Non Current Assets                                    |            |            | 
+-------------------------------------------------------+------------+------------+ 
| Property, plant & equipment                           |        355 |        223 | 
+-------------------------------------------------------+------------+------------+ 
| Investments                                           |         28 |         40 | 
+-------------------------------------------------------+------------+------------+ 
| Development costs                                     |      1,219 |        794 | 
+-------------------------------------------------------+------------+------------+ 
| Deferred tax asset                                    |         11 |         66 | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |      1,613 |      1,123 | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |            |            | 
+-------------------------------------------------------+------------+------------+ 
| Current Assets                                        |            |            | 
+-------------------------------------------------------+------------+------------+ 
| Inventories                                           |      1,222 |        898 | 
+-------------------------------------------------------+------------+------------+ 
| Trade and other receivables                           |        346 |        581 | 
+-------------------------------------------------------+------------+------------+ 
| Cash and cash equivalents                             |        155 |         35 | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |      1,723 |      1,514 | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |            |            | 
+-------------------------------------------------------+------------+------------+ 
| Total Assets                                          |      3,336 |      2,637 | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |            |            | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |            |            | 
+-------------------------------------------------------+------------+------------+ 
| Current Liabilities                                   |            |            | 
+-------------------------------------------------------+------------+------------+ 
| Trade and other payables                              |      1,496 |      1,222 | 
+-------------------------------------------------------+------------+------------+ 
| Bank overdrafts and loans                             |         92 |        159 | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |      1,588 |      1,381 | 
+-------------------------------------------------------+------------+------------+ 
| Non current liabilities                               |            |            | 
+-------------------------------------------------------+------------+------------+ 
| Loans                                                 |        724 |        547 | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |            |            | 
+-------------------------------------------------------+------------+------------+ 
| Total Liabilities                                     |      2,312 |      1,928 | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |            |            | 
+-------------------------------------------------------+------------+------------+ 
| Equity                                                |            |            | 
+-------------------------------------------------------+------------+------------+ 
| Called up share capital                               |      4,112 |      4,112 | 
+-------------------------------------------------------+------------+------------+ 
| Share premium account                                 |      8,028 |      8,028 | 
+-------------------------------------------------------+------------+------------+ 
| Currency translation reserve                          |        244 |       (68) | 
+-------------------------------------------------------+------------+------------+ 
| Capital redemption reserve                            |         12 |         12 | 
+-------------------------------------------------------+------------+------------+ 
| Revaluation reserve                                   |          0 |         12 | 
+-------------------------------------------------------+------------+------------+ 
| Profit and loss account                               |   (11,372) |   (11,387) | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |            |            | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |      1,024 |        709 | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |            |            | 
+-------------------------------------------------------+------------+------------+ 
| Total Liabilities and Equity                          |      3,336 |      2,637 | 
+-------------------------------------------------------+------------+------------+------------+ 
 
 
 
 
 
 
+-------------------------------------------------------+------------+------------+ 
| NETWORK TECHNOLOGY PLC                                |            |            | 
+-------------------------------------------------------+------------+------------+ 
| YEAR ENDED 31 MARCH 2009                              |            |            | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |            |            | 
+-------------------------------------------------------+------------+------------+ 
| CASH FLOW STATEMENT                                   |            |            | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |            |            | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |   31.03.09 |   31.03.08 | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |    GBP'000 |    GBP'000 | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |            |            | 
+-------------------------------------------------------+------------+------------+ 
| Operating Activities                                  |        465 |        330 | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |            |            | 
+-------------------------------------------------------+------------+------------+ 
| Investing Activities                                  |            |            | 
+-------------------------------------------------------+------------+------------+ 
| Payments to acquire tangible fixed assets             |      (156) |       (11) | 
+-------------------------------------------------------+------------+------------+ 
| Payments to acquire intangible fixed assets           |      (299) |      (251) | 
+-------------------------------------------------------+------------+------------+ 
| Payments to acquire investments                       |          0 |          0 | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |            |            | 
+-------------------------------------------------------+------------+------------+ 
| Net cash inflow from investing                        |      (455) |      (262) | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |            |            | 
+-------------------------------------------------------+------------+------------+ 
| Financing Activities                                  |            |            | 
+-------------------------------------------------------+------------+------------+ 
| Repayment of borrowings                               |          0 |       (37) | 
+-------------------------------------------------------+------------+------------+ 
| Increase/(Decrease) in bank overdrafts                |      (115) |       (14) | 
+-------------------------------------------------------+------------+------------+ 
| Proceeds from borrowings                              |        225 |          0 | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |            |            | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |        110 |       (51) | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |            |            | 
+-------------------------------------------------------+------------+------------+ 
| Cash and cash equivalents at beginning of period      |         35 |         18 | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |            |            | 
+-------------------------------------------------------+------------+------------+ 
| Cash and cash equivalents at end of period            |        155 |         35 | 
+-------------------------------------------------------+------------+------------+ 
|                                                       |            |            | 
+-------------------------------------------------------+------------+------------+ 
 
 
 
 
 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
 
 
 
 
+----------------------+---------+----------+----------+-------------+-------------+----------+ 
|                      |   Share |    Share |    Other |     Foreign | Revaluation | Retained | 
|                      | Capital |  Premium | Reserves |    Currency |     Reserve |   Losses | 
|                      | GBP'000 |  GBP'000 |  GBP'000 | Translation |     GBP'000 |  GBP'000 | 
|                      |         |          |          |     Reserve |             |          | 
|                      |         |          |          |     GBP'000 |             |          | 
+----------------------+---------+----------+----------+-------------+-------------+----------+ 
| At 1.4.08            |   4,112 |    8,028 |       12 |        (68) |          12 | (11,387) | 
+----------------------+---------+----------+----------+-------------+-------------+----------+ 
| Retained profit for  |       - |        - |        - |           - |           - |     15   | 
| the year             |         |          |          |             |             |          | 
+----------------------+---------+----------+----------+-------------+-------------+----------+ 
| Exchange gain on     |       - |        - |        - |         312 |           - |        - | 
| translation          |         |          |          |             |             |          | 
+----------------------+---------+----------+----------+-------------+-------------+----------+ 
| Revaluation          |       - |        - |        - |           - |        (12) |        - | 
+----------------------+---------+----------+----------+-------------+-------------+----------+ 
| At 31.3.09           |   4,112 |    8,028 |       12 |         244 |           - | (11,372) | 
+----------------------+---------+----------+----------+-------------+-------------+----------+ 
 
 
NOTES 
 
 
 
 
1. Basis of Preparation 
 
 
The accounts were prepared under International Financial Reporting Standards 
(IFRS). The comparative figures for the year to 31 March 2008 do not constitute 
full accounts within the meaning of Section 240 of the Companies Act 1985. Full 
accounts for that period, which received a qualified audit report containing a 
statement under Section 237(3) of the Companies Act 1985, have been delivered to 
the Registrar of Companies. The financial information set out in the preliminary 
statement of results for the year ended 31 March 2009 does not constitute 
statutory accounts within Section 240 of the Companies Act 1985. 
 
 
The audit report to the statutory financial statements will contain a qualified 
opinion arising from a limitation in scope in respect of the realisable value of 
inventory at 31 March 2009. The audit report attached to the statutory financial 
statements for that year contains a statement under Section 237(3) of the 
Companies Act 1985. It does not contain a statement under Section 237(2) of that 
Act. 
 
 
2.  Going Concern 
 
 
The statutory financial statements have been prepared on a going concern basis. 
The ability of the group and company to continue as a going concern is based 
upon: 
 
 
  *  The achievement of projected sales and profit margins and the maintenance of 
  acceptable credit terms with suppliers and creditors 
 
  *  The continued support of related parties 
 
 
 
On the basis of the current financial projections the directors have a 
reasonable expectation that the group and company have adequate resources to 
continue in operational existence for the foreseeable future. 
 
 
3.  Earnings per Share 
 
 
The calculation of basic earnings per ordinary share is based on the profit for 
the year after tax of GBP15,000 (year to 31 March 2008: of GBP55,000). 
 
 
Earnings per share have been calculated using the weighted average number of 
ordinary shares in issue during the year. The weighted average number of equity 
shares in issue is 2,055,971 (2008: 2,055,971). 
 
 
The Basic and Diluted earnings per share figures are the same because the 
average market price of the ordinary shares during the period did not exceed the 
exercise price of the equity options in existence at the balance sheet date. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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