Trading Update

 

TIDMNDP 
 
RNS Number : 2848Q 
Nipson Digital Printing Systems PLC 
07 April 2009 
 
For Immediate Release 
7 April 2009 
 
 
NIPSON DIGITAL PRINTING SYSTEMS PLC ("the Company" or "the Group") 
 
 
TRADING UPDATE 
 
 
Today's announcement is an update on the announcement made by the Company on the 
30 January 2009.  At that time the Board expected to circularise shareholders 
with an explanatory notice and an agenda for an Extraordinary General Meeting. 
 Since the nature of the transaction has yet to be determined the Board is not 
yet in a position to call an EGM, if required.  However, the Board remains in 
discussions with the different parties in respect to the restructuring of the 
Group's debt and equity and the outcome of the protective administration of its 
French subsidiary, Nipson SAS (the Subsidiary). 
The negotiations with the Administrator concerning the Subsidiary's exit from 
the administrative process and protection are now in their final stages.  The 
French courts and the administrator have indicated that the Company and 
Creacorp, its majority controlling shareholder, must either forgive the entire 
debt owed to them by the Subsidiary or convert all or part of the debt into 
capital.  This may give rise to a Related Party transaction in accordance with 
Rule 13 of the Aim Rules and will be dealt with accordingly. 
The negotiations may or may not lead to a satisfactory outcome for the Company. 
The Board has continued to look at the alternatives open to the Company. The 
Board will review the financial situation of the Company once the negotiations 
with the administrator and the courts have been finalised.  Once the outcome of 
the negotiations is known and the process finalised the Board will make a 
further announcement. Until a successful outcome has been achieved the future of 
the Company cannot be assured. 
The total sales for the last quarter of the year to 31 December 2008 were less 
than expected at GBP5.5 million (2007: GBP8.1m), the reasons for which have 
already been aired. This brings the total sales for 2008 to GBP27.2 million 
(2007: GBP27.0m). However, the movement of the exchange rates between the Pounds 
Sterling and the Euro can be misleading as sales in Euros dropped considerably. 
Equipment sales were substantially down on previous quarters of 2008 at GBP0.3 
million to reach GBP6.8 million for the full year (2007: GBP8.1m) leading to 
heavy factory operating losses. Recurrent revenues, which for the major part of 
2008 had continued to increase steadily, declined in the fourth quarter at 
GBP5.2 million and finished at GBP20.5 million for the full year (2007: 
GBP18.9m).  Although the recurrent revenues were higher in the earlier months of 
2008, margins were under pressure from both exchange rates and higher material 
costs.  Operating losses, and exceptional losses resulting from restructuring 
costs, have yet to be determined but will be material to the 2008 accounts. 
The figures are all subject to audit. Since the Company no longer reports 
quarterly results, the Group will not be issuing preliminary results.  The Board 
expects to circularise the shareholders in the beginning of May with the Annual 
Report and Accounts for 2008 and the notice of the Annual General Meeting which 
is to be held in June. 
Contacts : 
Nipson Digital Printing Systems PLC : Marc Maes, Chairman                 +32 
(0) 494 500 423 
or Robert Cahill, Group Finance Director [phone] 
Beaumont Cornish Limited : Roland Cornish/Rosalind Hill Abrahams 0207 628 3396 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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