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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:6163Q
Nipson Digital Printing Systems PLC
20 March 2008
For Immediate Release
20 March 2008
NIPSON DIGITAL PRINTING SYSTEMS PLC
PRELIMINARY UNAUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2007
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 12 months to 31 December 2007.
Unaudited Change Audited
Year to 31 +/-% Year to 31
December December 2006
2007 (restated
£'000 under
IFRS)
£'000
Revenue 27,335 -13.6% 31,627
Gross profit 3,463 -55.4% 7,759
Operating loss (4,657) (1,117)
Loss on ordinary activities before (6,209) (1,783)
taxation
* Introduction of the new technology adversely affected equipment sales in
the first nine months of 2007.
* Recurrent revenues increased by 6%;
* Equipment revenues in the last quarter were substantially up on previous
quarters; and
* Cost reduction programmes continue to make their contribution, but gross
margins were also affected by a weak US Dollar.
The year has been particularly challenging, reflected in the considerable
efforts and the associated incremental costs required to implement the new
technology. The equipment revenues increased in the fourth quarter and there has
been a steady increase in recurrent revenues.
Rimon Ben-Shaoul, Chairman, commented in relation to the results:
"The growth in our recurrent revenues was slightly better than our expectations.
The recovery in the level of equipment revenues will enable us to continue to
grow our installed base both in terms of machines and print volumes and hence
future recurrent revenues. The Company made excellent progress in stabilising
the new technology. The Company has also made progress in raising funds to
support the future growth of the Group."
For further information, please contact:
Nipson Digital Printing Systems PLC
Alfons Buts, Managing Director Tel: + 32 (0)3 740 02 05
Robert Cahill, Group Finance Director Tel: +33 (0)384 54 52 50
Beaumont & Cornish Ltd (Nomad):
Roland Cornish Tel: +44 (0)20 7628 3396
Rosalind Hill Abrahams
Keith, Bayley, Rogers & Co Ltd (Broker):
Derek Crowhurst Tel: +44 (0)20 3100 8274
Bankside Consultants Ltd:
Ian Seaton Tel: +44 (0)20 7367 8891
Oliver Winters Tel: +44 (0)20 7367 8874
A copy of this announcement is available from the Company's offices and is also
available from the website : www.nipson.com under the section Investors - Aim
Rule 26.
CHAIRMAN'S STATEMENT
Overview
Revenue for the twelve months decreased by 13.6% to £27.3m (2006: £31.6m) due to
lower equipment revenues, at £8.1m (2005: £13.5m) principally in the first three
quarters of the year. As reported previously, the introduction of the new
technology affected equipment sales in the first nine months while the fourth
quarter showed a significant recovery. The year has been one of considerable
change in terms of implementing both new technology and additional supply
arrangements and this is reflected in the results. The effect of the ever
declining dollar reduced revenue as well as margin. The Group continues to
target larger customers requiring multiple machine installations with higher
print volumes. This targeting was part of the repositioning of the business
which benefited the Group in 2006 and was the basis of the majority of the
improvement in the Group's recurrent revenues in 2007.
Recurrent revenues for 2007 were 6% higher at £19.2m (2006: £18.1m). The new
installations with higher print volumes are using more consumables and are
therefore more than compensating for the drop in recurrent revenues from older
machines which have been retired. Despite the latest Nipson models being more
robust and using less spares than their predecessors, the gradual steady growth
of recurrent revenues is expected to continue during 2008 as aggregate printed
volume is expected to increase further.
Total sales into the Americas in 2007 decreased by 39% compared to 2006.
Partnerships with distributors such as Kodak continued to provide new volume
with a further 3 high-end machines sold on an OEM basis.
In 2006 Nipson won a major contract with the French Government's Treasury
Department (Direction Generale de la Comptabilite Publique or DGCP). Following
the successful installation of the first production line delivered in December
2006, a second line was installed towards the end of 2007. A third line is
planned for delivery in 2008.
Overall the current order pipeline is strong.
Results
Gross profit for the full year to 31 December 2007 was £3.5m (2006: £7.8m), a
reduction of 55% mainly due to the lower volumes of equipment manufactured and
sold. Gross margins decreased to 12.7% (2006: 24.5%) due to the lower machine
production levels, the incremental costs required to implement the new
technology and the pressure on margins from the US Dollar : Euro rate. These
factors have more than offset the improvement in margins from the cost reduction
programmes.
The operating loss for 2007 was £4.7m (2006: loss of £1.1m). The loss before tax
in 2007 was £6.2m (2006: £1.8m). Both the operating loss and the loss before tax
for 2007 include the book loss on the sale of Land & Buildings of £0.5m.
Cash and Working Capital
Cash balances were £1.3m as of 31 December 2007 (2006: £2.6m). The lower level
of activity during the first half of the year was reversed towards the end of
the year. As a result, the year-end stocks increased from £9.2m to £9.7m.
Debtors remained relatively stable at £9.5m (2006: £9.7m) due to significant
equipment sales in the last month of 2007. The outstanding amounts of more than
£1.0m due from the French Treasury Department for the two production lines of
the DGCP contract also remained a principal cause for the relatively high number
of debtors' days.
Following the announcement on the 6th of February and the passing of the
necessary resolutions at the General Meeting, the Company issued £1.35 million
of 5% unsecured convertible loan notes to new investors and 4.25 million Euros
to Nipson's major shareholder, Polar Communications (the remaining amount of the
Polar loans and accruing interest is 10.4 million Euros at the date of this
announcement). Further to these arrangements the Company will issue 2,362,500
warrants to D. Roseman as broker to this issue.
Land & Buildings
The Board took the opportunity to sell the entire Nipson Belfort site to the
French government to facilitate the development of the economic zone and enable
the Group to reduce its running costs as well as improve the Group's liquidity.
Therefore, Nipson SAS called on their option to buy back the land and buildings
from the lease-back financer and sold on the property to the local government.
The operation caused a number of accounting adjustments compared to the French
fiscal results, on an IFRS basis. The effect was to improve the treasury by £1.4
m after expenses. The company now occupies the buildings on a pure rental basis.
Cost Reduction Programme
The extensive cost reduction and efficiency programmes previously announced,
especially the new writing heads, are progressing well with major savings
working through the supply chain. The total expected annualised savings will be
achieved. These savings were compromised in 2007 by a number of technical issues
at certain sites with specific production requirements. These issues at
particular customer sites have now been resolved or progressed significantly.
Research & Development Projects
During 2007 £3.3m was spent on R&D (2006: £3.5m). The projects covered mainly
development of the new technology writing heads for previous generation machines
and technological advances related to developing higher speed print engines and
the Nipson Spot Colour machine. £1.1m net has been capitalised during 2007
(2006: £1.9m net). These intangible R&D assets will be amortised over 4 to 6
years. An additional amortisation of £0.5m related to all capitalised projects
from 2006 and 2007 was charged to the accounts in 2007. In 2008, the Group
expects to continue this high level of expenditure on R&D, this being essential
to the Group's strategic development and growth.
Prospects
The growth in our recurrent revenues was slightly better than our expectations.
The recovery in the level of equipment revenues will enable us to continue to
grow our installed base both in terms of machines and print volumes and hence
future recurrent revenues. The Company made excellent progress in stabilising
the new technology. The Company has also made progress in raising funds to
support the future growth of the Group.
Rimon Ben-Shaoul
Chairman
NIPSON DIGITAL PRINTING SYSTEMS PLC
Preliminary Unaudited Results for the Year Ended 31 December 2007
CONSOLIDATED INCOME STATEMENT
Unaudited Audited
Full Year to Full Year to
31 December 31 December
2007 2006
£'000 £'000
Continuing Operations 27,335 31,627
Revenue
Cost of Sales (23,872) (23,868)
Gross Profit 3,463 7,759
Administrative Expenses (7,667) (8,876)
Other Operating Expenses (453) -
Loss on Continuing Operations before (4,657) (1,117)
interest
Finance Income 191 268
Finance Costs (1,743) (934)
Loss from Continuing Operations before (6,209) (1,783)
taxation
Taxation - -
Loss from Continuing Operations after (6,209) (1,783)
taxation
Loss per Ordinary Share (Basic and (11.9p) (3.4p)
Diluted)
Revenue and Profit/(Loss) all derive from continuing operations
CONSOLIDATED STATEMENTS OF RECOGNISED INCOME AND EXPENSE
+--------------------------------------+------------+------------+
| | Unaudited| Audited|
| |Full Year to|Full Year to|
| | 31 December| 31 December|
| | 2007| 2006|
| | £'000| £'000|
+--------------------------------------+------------+------------+
|Exchange Difference on Translation of | 234| (68)|
|Foreign Operations | | |
+--------------------------------------+------------+------------+
|Net Income/(Expense) Recognised | 234| (68)|
|Directly in Equity | | |
+--------------------------------------+------------+------------+
| | | |
+--------------------------------------+------------+------------+
|Loss for the Year | (6,209)| (1,783)|
+--------------------------------------+------------+------------+
|Total Recognised Income and Expense | (5,975)| (1,851)|
|for the Year | | |
+--------------------------------------+------------+------------+
NIPSON DIGITAL PRINTING SYSTEMS PLC
Preliminary Unaudited Results for the Year Ended 31 December 2007
CONSOLIDATED BALANCE SHEET
Unaudited Audited
As at 31 As at 31
December December
2007 2006
£'000 £'000
Assets 755 701
Non-Current Assets
Goodwill
Other Intangible Assets 3,636 1,951
Property, Plant & Equipment 3,645 7,136
Deferred Tax Asset 597 581
Other Non-Current Assets 498 884
9,131 11,253
Current Assets
Inventories 9,679 9,166
Trade and Other Receivables 9,545 9,735
Cash and Cash Equivalents 1,348 2,592
20,572 21,493
Liabilities
Current Liabilities
Trade and Other Payables (7,696) (6,804)
Borrowings (12,655) (9,567)
(20,351) (16,371)
Net Current Assets 221 5,122
Non-Current Liabilities
Borrowings (3,991) (5,152)
Deferred Tax Liabilities (597) (581)
Retirement Benefit Liability (1,016) (919)
(5,604) (6,652)
Net Assets 3,748 9,723
Shareholder's Equity
Ordinary Share Capital 523 523
Share Premium 13,915 13,915
Reverse Acquisition Merger Reserve 3,057 3,057
Translation Reserve 166 (68)
Retained Earnings (13,913) (7,704)
Total Equity Attributable to Equity 3,748 9,723
Holders
NIPSON DIGITAL PRINTING SYSTEMS PLC
Preliminary Unaudited Results for the Year Ended 31 December 2007
CONSOLIDATED CASH FLOW STATEMENT
Unaudited Audited
Full Year to Full Year to
31 December 31 December
2007 2006
£'000 £'000
Net Cash (Decrease)/Increase from (1,444) 1,291
Operating Activities
Cash Flows from Investing Activities
Purchase of Intangible Assets (2,480) (2,341)
Purchase of Property, Plant & (188) (369)
Equipment
Disposal of Fixed Assets 2,100 -
Interest Received 75 4
Net Cash Generated from/(Used) in (493) (2,706)
Investing Activities
Cash Flows from Financing Activities
Interest Paid (541) (562)
Capital Repayments on Finance Leases (2,388) (270)
Borrowings Raised - from Third Party 215 1,254
- from Parent Undertaking 5,203 2,490
Borrowings Repaid (1,796) (1,196)
Net Cash Used in Financing Activities 693 1,716
Net (Decrease)/Increase in Cash & Cash (1,244) 301
Equivalents
Cash & Cash Equivalents at 1 January 2,592 2,291
Cash & Cash Equivalents at end of 1,348 2,592
period
NIPSON DIGITAL PRINTING SYSTEMS PLC
Preliminary Unaudited Results for the Year Ended 31 December 2007
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Generated from Operations Unaudited Audited
Full Year Full Year
to to
31 December 31 December
2007 2006
£'000 £'000
Continuing Operations (6,209) (1,783)
Loss before Taxation
Adjustments for:
Depreciation and Amortisation 1,619 1,063
Loss on disposal of Property, Plant & 542 -
Equipment
Finance Income (191) (268)
Finance Expense 1,743 934
Increase/(Decrease) in Retirement Benefit 97 (73)
Obligation
Share Based Payment Charge - 42
Changes in Working Capital
(Increase)/Decrease in Inventories (513) 1,347
Decrease/(Increase) in Trade & Other 576 (201)
Receivables
(Decrease)/Increase in Payables 892 230
Cash (Used in)/Generated from Continuing (1,444) 1,291
Operations
Corporation Tax Paid - -
Net Cash (Decrease)/Increase from (1,444) 1,291
Continuing Operations
NOTES
1. Nature of Financial Information
The financial information contained within this announcement does not constitute
statutory accounts for the year ended 31 December 2007. The financial
information for the year ended 31 December 2006 is derived from the statutory
accounts for that year which has been delivered to the Registrar of Companies.
The auditor's report on those accounts was unqualified and did not contain
statements under section 237(2) or (3) of the Companies Act 1985. The audit of
the statutory accounts for the year ended 31 December 2007 is not yet complete.
These accounts will be finalised on the basis of the financial information
presented to the directors in this preliminary announcement and will be
delivered to the Registrar of Companies following the Company's annual general
meeting.
2. Earnings/(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 (2006: 52,303,581).
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 first quarter results and
detailed in the notes to those results (see announcement made May 21 2007).
NIPSON DIGITAL PRINTING SYSTEMS PLC
Preliminary Unaudited Results for the Year Ended 31 December 2007
Note 4 : STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Share Share Reverse Translation Retained Total
Capital Premium Acquisition Reserve Earnings
Reserve
£'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2006 523 13,915 3,057 (5,921) 11,574
Loss for the - - - - (1,783) (1,783)
Period
Exchange - - - (68) - (68)
Differences on
Translation of
Foreign Operations
At 31 December 523 13,915 3,057 (68) (7,704) 9,723
2006
At 1 January 2007 523 13,915 3,057 (68) (7,704) 9,723
Loss for the - - - - (6,209) (6,209)
Period
Exchange - - - 234 - 234
Differences on
Translation of
Foreign Operations
At 31 December 523 13,915 3,057 166 (13,913) 3,748
2007
NOTE 5 (A) : GEOGRAPHICAL ANALYSIS OF SALES
Country / Region Unaudited Audited
Full Year to Full Year to
31 December 31 December
2007 2006
£'000s £'000s
France 5,331 6,352
Rest of Europe 8,786 9,269
USA and Canada 5,685 9,972
Asia 3,255 2,577
Latin America 1,828 2,336
Other 2,451 1,121
Total 27,335 31,627
NOTE 5 (B) : GEOGRAPHICAL ANALYSIS OF LOSS BEFORE TAXATION
Country / Region Unaudited Audited
Full Year to Full Year to
31 December 31 December
2007 2006
£'000s £'000s
France (1,240) 890
Rest of Europe (1,550) (692)
USA and Canada (3,030) (2,482)
Asia (345) (14)
Latin America (11) 200
Other (33) 315
Total (6,209) (1,783)
NIPSON DIGITAL PRINTING SYSTEMS PLC
Preliminary Unaudited Results for the Year Ended 31 December 2007
NOTES (continued)
6. IFRS
The restatements in the accounts as a result of the transition to IFRS are
outlined in the tables and notes here below:
Table IFRS - A: Income Statement for the year ending 31 December 2006
Table IFRS - B: Consolidated Balance Sheet as of 31 December 2006
Notes on the Accounting Policies related to the transition from UK GAAP to IFRS
The Accounting Policies used in the preparation of the transition from UK GAAP
to IFRS were the accounting policies and changes explained under Note 4 of the
notes to results announced with the first quarter results (see announcement made
May 21 2007).
7. Summary of Principal Differences between UK GAAP and IFRS
Prior Period Adjustments
Certain Prior Period Adjustments were passed in the accounts as of 31 December
2006. These had a minor effect on the 2006 results themselves but did change the
opening balance sheet. The details of these changes can be found in the
available 2006 Annual Report. These adjustments outlined in the notes to the
first quarter results are repeated here for convenience.
a) Goodwill
Certain intangible assets ("fonds de commerce") have been reclassified from
"Other Assets" to "Goodwill". The reclassified amount of £94,000 has no effect
on the Group's equity.
b) Goodwill amortisation
The annual charge under UK GAAP has been reversed for IFRS reporting. The
current year's amortisation of £74,000 has been written back to the 2006
results.
c) Leases
In accordance with the criteria for finance leases under IAS 17, a number of
lease contracts have been classified as finance leases under IFRS. Assets
financed with leasing contracts that are defined as finance leases have been
capitalised and depreciated at the rates stated in Nipson's tangible assets
policy. Capitalised leases amounted to £810,000 and related borrowing amounted
to £841,000.
d) Tangible Assets
Certain items of property, plant and equipment have been re-valued as at the
IFRS transition date in order to reflect their fair values. The valuations were
undertaken by external, independent valuers who have certified the value in use,
based on the sum of the discounted cash flows for each asset category. Non
current assets have been accordingly increased by £1,682,000 net of the adjusted
depreciation, with a corresponding increase in the Group's equity.
For certain major component parts of property, plant and equipment, the expected
useful lives have been modified, together with the related depreciation. The
effect is an increase of £253,000 in asset values and Group equity.
e) Non Current Liabilities
Certain long term liabilities (loans) have been discounted to reflect their
present day value. Contract amounts have been restated, taking account of
maturities and prevailing interest rates. The effect of discounting these
financial contracts is a reduction in long-term debt of £61,000 with a
corresponding increase in Group equity.
f) Translation Reserve
In accordance with the option available under IFRS 1, the accumulated foreign
exchange translation reserve as at the IFRS transition date has been deemed nil
and transferred to "Retained Earnings". There is no effect on Group equity.
g) Deferred Taxation
Under UK reporting, deferred taxes were calculated for fewer items than required
under IFRS. This, together with the various adjustments required under IFRS
transition rules, has caused a number of changes to deferred taxes as a result
of the transition.
Deferred tax is provided on the IFRS transition adjustments using the liability
method as well as on the temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the financial statements.
Deferred tax assets are recognised to the extent that it is probable that future
taxable profits will be available against which the temporary differences can be
utilised.
As a consequence of certain adjustments effected on transition to IFRS
(principally fair value adjustments to non-current assets, the restatement of
goodwill related to the German subsidiary and provisions for employee retirement
benefits), deferred taxation is now reflected in the Group's financial
statements. The main sources of the deferred tax liabilities and deferred tax
assets are as follow:
Deferred Tax Liability Asset
£'000s £'000s
Asset Values/Depreciation 561 -
Employee benefits/Pensions - 306
Tax Credits/Germany - 263
Other 20 12
Total 581 581
NIPSON DIGITAL PRINTING SYSTEMS PLC
Preliminary Unaudited Results for the Year Ended 31 December 2007
NIPSON PLC CONSOLIDATED INCOME STATEMENT - IFRS - A
12 months lease goodwill asset goodwill discount deferred 12 months
to to
31-Dec-06 back amort. reval. -ing taxation 31-Dec-06
UK GAAP IFRS
£'000s £'000s £'000s £'000s £'000s £'000s £'000s £' 000s
Continuing
Operations
Revenue 31,627 - - - - - - 31,627
Cost of Sales (23,570) 81 74 (453) - - - (23,868)
Gross Profit 8,057 81 74 (453) - - - 7,759
Administrative (8,876) - - - - - - (8,876)
Expenses
Other - - - - - - - -
Operating
Income
Operating (819) 81 74 (453) - - - (1,117)
(Loss) /
Profit
Finance Income 268 - - - - - - 268
Finance Costs (826) (79) - - - (29) - (934)
Loss on (1,377) (2) 74 (453) - (29) - (1,783)
Ordinary
Activities
before
Taxation
Taxation - - - - - - - -
Loss from (1,377) (2) 74 (453) - (29) - (1,783)
Continuing
Operations
(Loss) per (2.6p) (3.4p)
Ordinary Share
NIPSON DIGITAL PRINTING SYSTEMS PLC
Preliminary Unaudited Results for the Year Ended 31 December 2007
NIPSON PLC CONSOLIDATED BALANCE SHEET - IFRS - B
As at lease goodwill asset goodwill discount deferred fixed As at
31 Dec back amort. reval. -ing taxation Asset 31 Dec
2006 lifetime 2006
IFRS
£'000s £'000s £'000s £'000s £'000s £'000s £'000s £'000s £'000s
Non-Current
Assets
Goodwill 533 - 74 - 94 - - - 701
Other 1,951 - - - - - - - 1,951
Intangible
Assets
Property, 4,391 810 - 1,682 - - - 253 7,136
Plant &
Equipment
Deferred - 12 - - - - 569 - 581
Tax Assets
Other 884 - - - - - - - 884
Non-Current
Assets 7,759 822 74 1,682 94 - 569 253 11,253
Current
Assets
Inventories 9,166 - - - - - - - 9,166
Trade and 9,829 - - - (94) - - - 9,735
Other
Receivables
Cash and 2,592 - - - - - - - 2,592
Cash
Equivalents 21,587 - - - (94) - - - 21,493
Current
Liabilities
Trade and (6,804) - - - - - - - (6,804)
Other
Payables
Borrowings (9,567) - - - - - - - (9,567)
(16,371) - - - - - - - (16,371)
Net Current 5,216 - - - (94) - - - 5,122
Assets
Non Current
Liabilities
Borrowings (4,372) (841) - - - 61 - - (5,152)
Deferred - - - (561) - (20) - - (581)
Tax
Liabilities
Retirement (919) - - - - - - - (919)
Benefit
Liability (5,291) (841) - (561) - 41 - - (6,652)
Net Assets 7,684 (19) 74 1,121 - 41 569 253 9,723
Capital and
Reserves
Called-up 523 - - - - - - - 523
Share
Capital
Share 13,915 - - - - - - - 13,915
Premium
Account
Reverse 3,057 - - - - - - - 3,057
Acquisition
Reserve
Translation (476) - - - - - - - (476)
Reserve
Retained (9,335) (19) 74 1,121 - 41 569 253 (7,296)
Earnings
Equity 7,684 (19) 74 1,121 - 41 569 253 9,723
Shareholders
Funds
This information is provided by RNS
The company news service from the London Stock Exchange
END
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