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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Nipson Dig. | LSE:NDP | London | Ordinary Share | GB00B01QLJ25 | 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% | 1.625 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number : 2092I
Nipson Digital Printing Systems PLC
14 November 2008
NIPSON DIGITAL PRINTING SYSTEMS PLC
RESULTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2008
Nipson Digital Printing Systems PLC ("Nipson" or "the Group"), the manufacturer and distributor of digital printing systems and
consumables, today announces its unaudited results for the nine months to 30 September 2008.
9 months to Change 9 months to Full Year to
30 Sept +/-% 30 Sept 31 December
2008 2007 2007
Unaudited Unaudited Audited
£'000 £'000 £'000
Revenue 21,699 +15.0% 18,873 27,335
Gross profit 3,241 +30.0% 2,494 3,463
Operating (loss) (3,516) (3,116) (4,657)
(Loss) on ordinary activities (4,605) (4,035) (6,209)
before tax
* For the first nine months, and compared to the same period of 2007, recurrent revenues increased by 10% and equipment revenues
increased by 29%;
* The first nine months' losses impacted the Group's cash position. This cash situation worsened such that the French subsidiary,
Nipson SAS, had difficulty meeting its on-time payments to creditors. The company announced on 28 October 2008 its decision for the French
subsidiary to go into receivership under protective administration.
Marc Maes, Nipson's Chairman commented: "Despite the difficult situation of the French subsidiary, the Group is continuing to produce
machines, spare parts and consumables and continuing to provide a maintenance service to customers either directly or via its agreed
distributors."
For further information, please contact:
Nipson Digital Printing Systems PLC
Guillaume Dumarey, Managing Director - Tel: +33 (0)384 545 270
Robert Cahill, Group Finance Director - Tel: +33 (0)384 545 250
Beaumont Cornish Ltd (Nomad)
Roland Cornish / Rosalind Hill Abrahams - Tel: +44 (0)20 7628 3396
Keith, Bayley, Rogers & Co Ltd (Broker)
Derek Crowhurst / Brinsley Holman - Tel: +44 (0)20 3100 8300
Bankside Consultants Ltd
Oliver Winters - Tel: +44 (0)20 7367 8874
CHAIRMAN'S STATEMENT
Overview
The loss incurred in the third quarter was higher than expected due to the costs of technical issues and the continued impact of the
weak US Dollar compared to the Euro. While the pipeline remains good, and the technical issues have now been addressed, certain customers
have delayed orders until the long term future of the Group is clearer.
As previously indicated in the half year results announcement published on 15 August 2008, the company has been in discussion with
several parties concerning equity and or debt transactions. On 14 October 2008 the Group announced that the Polar Group, majority
shareholder of Nipson, had entered into an agreement with the Belgian company Creacorp NV ("Creacorp"), whereby Polar agreed to:
* assign the benefit of loans and interest of approximately EUR14.7 million owed to Polar by the Nipson Group, to Creacorp; and
* grant Creacorp a call option to acquire up to 22,992,709 ordinary shares in the capital of Nipson, currently held by the Polar
Group subject to the Polar Group maintaining a non-dilutive 10% of the issued share capital of Nipson for 3 years.
Creacorp is privately controlled by the Belgian Dumarey family holding a diversified portfolio of technology, property and entertainment
companies, with assets of more than 100 million Euros. Creacorp holds a 31% shareholding in the listed conglomerate, Punch International
NV, of which Guido Dumarey is Executive Chairman. Punch owns automotive, telematics and property business activities and is a major
manufacturer of printing equipment.
Further announcements were made in October concerning the financial difficulties experienced by the French subsidiary. The negative
result impacted the Group's cash position especially that of its French subsidiary which worsened suddenly, aggravated by tighter credit
conditions and positions taken recently by the financial institutions, including rating and credit insurance institutions, such that the
French subsidiary had difficulty meeting its on-time payments to creditors. The company announced on 28 October 2008 its decision for the
French subsidiary to go into receivership under protective administration for a six month period (see announcements dated 10, 14 and 28
October 2008). Although the restructuring plan is on line, the directors cannot give any guarantees as to either its outcome or the going
concern status of the French company. The other companies in the Group are trading normally.
Revenue and Operating Results
Revenue for the nine months to 30 September 2008 was £21.7m, an increase of 15.0% over the same period last year. The increase came from
both new equipment sales and recurring revenues. Despite the weak dollar relative to the Euro, sales increased across all markets compared
to the same period last year.
Equipment sales, at £6.3m for the nine months, showed an increase of 29% over the comparative period.
Recurrent revenues for the nine months to 30 September 2008 were £15.4m, an increase of 10.0% as compared to the same period last year.
The Group's recurrent revenue continues to grow.
Gross profit for the nine months to 30 September 2008 was £3.2m, 30% higher than the comparative period last year but significantly
lower than anticipated. The lower than expected equipment sales resulted in a lower contribution to fixed production costs. Margins on
recurrent revenues improved slightly although less than anticipated. Finally, gross margins suffered from the US Dollar which, until
recently, remained weak against the Euro.
The operating result for the nine months to 30 September 2008 showed a loss of £3.5m against a loss of £3.1m for the corresponding
period in 2007. Operating costs at £6.8m (2007: £5.6m) were higher due to £300,000 costs for Drupa (the world's largest print fair held
every four years) charged to the accounts in the period and to higher amortisation on previously capitalised R&D projects. In 2007 the Group
also received R&D tax credits, which were not received in 2008. The weakness of the GB Pound to the Euro during the period is also a major
reason for the adverse difference.
The costs of Research & Development for the first nine months of 2008 were £2.9m of which £1.1m was capitalised. For the first nine
months of 2008, £0.4m was capitalised net of amortisation of R&D intangible assets (2007: £1.2m).
The net loss for the first nine months was £4.6m (2007: net loss of £4.0m). Other than the cost of Drupa and the additional R&D
amortisation, this difference is due to the finance costs which are higher in 2008 and currency movements of both the US Dollar and GB
Pound.
As at 30 September 2008 cash balances were £0.9m (£1.3m at 31 December 2007), under pressure from higher sales and the financing of
higher inventory levels (£11.4m compared to £9.7m at 31 December 2007, however lower than the £12.4m at 30 June 2008). The level of trade
and other receivables decreased further to £7.3m (£9.5m at 31 December 2007 and £8.3m at 30 June 2008).
Comments on the valuation of the Loan Notes for Roseman and for Polar are detailed in Note 4 to the accounts. As at 30 September 2008,
the total amount owing to the Polar Group for loans, accruing interest and including the 5% Convertible Loan Notes of £2.2m, was £11.8m (31
December 2007: £10m). As of 14 October 2008 these loans were transferred to Creacorp for 1EUR, after deduction made of the balance of the
Hapoalim loan (£1.8m) which was transferred to the Polar Group (see announcement dated 14 October 2008).
The new configuration of the Nipson Board of Directors is as follows:
* Marc Maes - Chairman
* Guillaume Dumarey - Managing Director
* Ghislain Segard - Executive Director
* Robert Cahill - Group Finance Director
* David Gestetner - Non-Executive Director
The Board has decided as from 1 January 2009 to report in Euros since the Group trades essentially in Euros. The Group was required to
produce quarterly results due to the reporting constraints of the Polar Group quoted on the Tel-Aviv stock exchange. The Board considers
since the Nipson results will no longer be consolidated into the Polar Group results, that the Group should return to standard half yearly
AIM reporting.
Despite the difficult situation of the French subsidiary, the Group is continuing to produce machines, spare parts and consumables and
continuing to provide a maintenance service to customers either directly or via its agreed distributors.
Marc Maes, Chairman, Nipson Digital Printing Systems PLC
NIPSON DIGITAL PRINTING SYSTEMS PLC
Unaudited results for the nine months ended 30 September 2008
CONSOLIDATED INCOME STATEMENT
9 months to 9 months to Full Year to
30 Sept 30 Sept 31 December
2008 2007 2007
£'000 £'000 £'000
Continuing Operations 21,699 18,873 27,335
Revenue
Cost of Sales (18,458) (16,379) (23,872)
Gross Profit 3,241 2,494 3,463
Administrative Expenses (6,757) (5,610) (7,667)
Other Operating Expenses - - (453)
(Loss) on Continuous (3,516) (3,116) (4,657)
Operations before interest
Finance Income 247 141 191
Finance Costs (1,336) (1,060) (1,743)
(Loss) from Continuing (4,605) (4,035) (6,209)
Operations before taxation
Taxation - - -
(Loss) from Continuing (4,605) (4,035) (6,209)
Operations after taxation
(Loss) per Ordinary Share (8.8p) (7.7p) (11.9p)
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
9 months to 9 months to Full Year to
30 Sept 30 Sept 31 December
2008 2007 2007
£'000 £'000 £'000
Exchange Difference on 615 115 234
Translation of Foreign
Operations
Net Income Recognised Directly 615 115 234
in Equity
(Loss) for the Year (4,605) (4,035) (6,209)
Total Recognised Income and (3,990) (3,920) (5,975)
Expense for the Period
NIPSON DIGITAL PRINTING SYSTEMS PLC
Unaudited results for the nine months ended 30 Sept 2008
CONSOLIDATED BALANCE SHEET
9 months to 9 months to Full Year to
30 Sept 30 Sept 31 December
2008 2007 2007
£'000 £'000 £'000
Assets 782 736 755
Non-Current Assets
Goodwill
Other Intangible Assets 4,279 3,218 3,636
Property, Plant & Equipment 3,334 6,862 3,645
Deferred Tax Asset 598 491 597
Other Non-Current Assets 556 525 498
9,549 11,832 9,131
Current Assets
Inventories 11,394 9,785 9,679
Trade and Other Receivables 7,319 7,781 9,545
Cash and Cash Equivalents 878 2,456 1,348
19,591 20,022 20,572
Liabilities
Current Liabilities
Trade and Other Payables (9,086) (6,653) (7,696)
Borrowings (14,779) (12,273) (12,870)
(23,865) (18,926) (20,566)
Net Current Assets (4,274) 1,096 6
Non-Current Liabilities
Borrowings (2,980) (5,683) (3,776)
Deferred Tax Liabilities (598) (491) (597)
Retirement Benefit Liability (1,026) (951) (1,016)
(4,604) (7,125) (5,389)
Net Assets 671 5,803 3,748
Shareholders' Equity
Ordinary Share Capital 523 523 523
Share Premium 13,915 13,915 13,915
Equity Portion of Convertible 913 - -
Loan Notes
Reverse Acquisition Merger 3,057 3,057 3,057
Reserve
Translation Reserve 781 47 166
Retained Earnings (18,518) (11,739) (13,913)
Total Equity Attributable to 671 5,803 3,748
Equity Holders
Approved by the Board of Directors on 4 November 2008
Guillaume Dumarey Robert Cahill
NIPSON DIGITAL PRINTING SYSTEMS PLC
Unaudited results for the nine months ended 30 Sept 2008
CONSOLIDATED CASH FLOW STATEMENT
9 months to 9 months to Full Year to
30 Sept 30 Sept 31 December
2008 2007 2007
£'000 £'000 £'000
Net Cash Increase/(Decrease) 217 (868) (1,444)
from Operating Activities
Cash Flows from Investing
Activities
Purchase of Intangible Assets (1,127) (1,820) (2,480)
Purchase of Property, Plant & (64) (245) (188)
Equipment
Disposal of fixed assets 244 - 2,100
Interest Received - 21 75
Net Cash Used in Investing (947) (2,044) (493)
Activities
Cash Flows from Financing
Activities
Interest Paid (307) (547) (541)
Capital Repayments on Finance (184) (329) (2,388)
Leases
Borrowings Raised - from Third 1,575 135 215
Party
from Parent Undertaking 591 4,406 5,203
Borrowings Repaid (1,415) (889) (1,796)
Net Cash Raised in Financing 260 2,776 693
Activities
Net (Decrease) in Cash & Cash (470) (136) (1,244)
Equivalents
Cash & Cash Equivalents at 1 1,348 2,592 2,592
January
Cash & Cash Equivalents at end 878 2,456 1,348
of period
NIPSON DIGITAL PRINTING SYSTEMS PLC
Unaudited results for the nine months ended 30 Sept 2008
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Generated from Operations 9 months to 9 months to Full Year to
30 Sept 30 Sept 31 December
2008 2007 2007
£'000 £'000 £'000
Continuing Operations (4,605) (4,035) (6,209)
Loss before Taxation
Adjustments for:
Depreciation and Amortisation 1,609 673 1,619
Disposal of fixed assets - - 542
Finance Income (247) (141) (191)
Finance Expense 1,336 1,060 1,743
Increase in Retirement Benefit 10 32 97
Obligation
Other gains and losses 271 - -
Changes in Working Capital
(Increase) in Inventories (1,715) (619) (513)
Decrease in Trade & Other 2,168 2,313 576
Receivables
Increase/(Decrease) in 1,390 (151) 892
Payables
Cash from/(Used in) Continuing 217 (868) (1,444)
Operations
Corporation Tax Paid - - -
Net Cash Increase/(Decrease) 217 (868) (1,444)
from Continuing Operations
NOTES
1. Nature of Financial Information
The financial information contained within this interim report is unaudited. It does not constitute statutory accounts with in the
meaning of section 240 of the Companies Act 1985. The auditor's report on the accounts for the year ended 31 December 2007 was unqualified
and did not contain statements under section 237(2) or (3) of the Companies Act 1985.
2. Loss per Share
The Loss per Ordinary Share is calculated on the weighted average number of ordinary shares in issue during the period of 52,303,581
(2007: 52,303,581). Due to the loss in the period the basic and diluted EPS are the same.
3. Accounting Policies
The interim results have been prepared in accordance with IFRS accounting rules. The Accounting Policies used in the preparation of
these results were the accounting policies used in the preparation of the results for the year ended 31 December 2007 and detailed in the
notes to those results (see Annual Report 2007 issued 13 May 2008).
4. Equity Portion of Convertible Loan Notes
The theoretical equity portion of the Roseman and Polar convertible loan notes, required under the IAS 32 and IAS 39, was estimated by
comparing the face value of the loan notes to their fair value after discounting the future stream of liabilities at a rate of 20%.
NIPSON DIGITAL PRINTING SYSTEMS PLC
Unaudited results for the nine months ended 30 Sept 2008
Note 5 : STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Share Share Equity Reverse Translation Retained Total
Capital Premium Portion of Acquisition Reserve Earnings
Convertible Loans Reserve
£'000
£'000
£'000 £'000 £'000 £'000
£'000
At 1 January 2007 523 13,915 - 3,057 (68) (7,704) 9,723
Loss for the Period - - - - - (4,035) (4,035)
Exchange Differences on - - - 115 - 115
Translation of Foreign
Operations
-
At 30 September 2007 523 13,915 - 3,057 47 (11,739) 5,803
At 1 January 2008 523 13,915 - 3,057 166 (13,913) 3,748
Loss for the Period - - - - - (4,605) (4,605)
Equity Portion of - - - - - 913
Convertible Loans 913
Exchange Differences on - - - 615 - 615
Translation of Foreign
Operations
-
At 30 September 2008 523 13,915 913 3,057 781 (18,518) 671
NOTE 6 (A) : GEOGRAPHICAL ANALYSIS OF SALES
Country / Region 9 months to 9 months to Full Year to
30 Sept 30 Sept 31 December
2008 2007 2007
£'000s £'000s £'000s
France 3,832 3,619 5,331
Rest of Europe 7,013 6,395 8,786
USA and Canada 4,997 4,398 5,685
Asia 2,249 2,138 3,255
Latin America 1,861 1,108 1,828
Other 1,747 1,215 2,450
Total 21,699 18,873 27,335
NOTE 6 (B) : SEGMENTAL ANALYSIS
France Rest of USA
PLC Total
Europe
9m = 9 months 9m to 9m to FY to 9m to 9m to FY to 9m to 9m
to FY to 9m to 9m to FY to 9m to 9m to FY to
FY = Full Year 30 Sept 30 Sept 31 Dec 30 Sept 30 Sept 31 Dec 30 Sept 30
Sept 31 Dec 30 Sept 30 Sept 31 Dec 30 Sept 30 Sept 31 Dec
2008 2007 2007 2008 2007 2007 2008
2007 2007 2008 2007 2007 2008 2007 2007
£'000s £'000s £'000s £'000s £'000s £'000s £'000s
£'000s £'000s £'000s £'000s £'000s £'000s £'000s £'000s
Revenue 18,011 15,001 23,126 1,686 1,805 2,805 2,002
2,067 1,404 - - - 21,699 18,873 27,335
Assets 13,938 17,619 17,399 3,218 3,259 3,468 2,509
2,362 2,568 9,476 8,614 6,268 29,140 31,854 29,703
Capital Expenditure 1,158 1,856 2,486 1 8 9 29
10 17 2 - - 1,190 1,874 2,512
This information is provided by RNS
The company news service from the London Stock Exchange
END
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