Transcript Densitron Technologies plc

www.densitron.com
Densitron Technologies plc
2003 Full Year Presentation by...
David McQuiggan – Chief Executive Officer.
Rob Smith - Finance Director.
27 March 2003
Displays and the electronics that drive them.
Page 1
www.densitron.com
Operational Highlights
•
•
•
•
Reduced sales in difficult trading conditions.
£3.5 Million exceptional items.
Operating loss pre exceptional items of £1.2 Million.
No final dividend.
But:
• Acquisition of the Assets of Ferrograph Limited in April
2002.
• Fundamental strategic review completed.
• New order intake in 2002 was £30.6 Million (2001 £27.7 Million) and the group’s order book stood at £18.4
Million at 31st December 2002 (2001 - £13.3 Million).
27 March 2003
Displays and the electronics that drive them.
Page 2
www.densitron.com
Financial Highlights
£ Millions
12 Months to
31/12/2002
12 Months to
31/12/2001
Turnover
25.5
28.4
Operating (Loss) / profit
(4.7)
1.0
(Loss) / Profit before taxation
(5.3)
0.6
EPS pre exceptional items
(9.00)p
(2.50)p
EPS post exceptional items
(19.97)p
(2.50)p
17.9%
1.0%
18.4
13.3
Gearing
Order Book as at 31st December
27 March 2003
Displays and the electronics that drive them.
Page 3
www.densitron.com
Profit and Loss account comparative
£ Thousands
2002
2001
25,489
28,433
Cost of Sales
(15,016)
(17,359)
Gross Profit
10,473
11,074
(12,338)
(11,349)
123
655
Exceptional Items
(3,533)
-
Group Operating (Loss) / Profit
(5,275)
380
Group Operating (Loss) / Profit pre exceptional
items
(1,742)
380
540
584
(4,735)
964
(559)
(549)
(5,294)
551
Turnover
Operating Expenses
Other operating income
Share of Associates Operating Profit
Total Operating (Loss) / Profit
Net Interest Payable
(Loss) / Profit before tax
27 March 2003
Displays and the electronics that drive them.
Page 4
www.densitron.com
Exceptional Items
Asset
Basis of Impairment
Retail Cassius computer stock
and development
Expected lower selling price for retail
version.
Computer business restructuring
Redundancy and other termination
costs
94
Internet businesses
Revised asset value based on
proposed sale of majority interest.
590
Densitron Software Ltd
Discontinued 3rd party trading.
229
Rapidot Ltd
Discontinued activity.
149
Densitron Australia pty Ltd
Loss on disposal of business.
284
Post retirement benefits
Recognition of benefits per FRS17
290
Densitron Technologies
Head office redundancies and EGM
costs
638
Total exceptional items
27 March 2003
£000s
1,259
3,533
Displays and the electronics that drive them.
Page 5
www.densitron.com
Sales and Orders - trend by quarter
£12,000
£10,000
£8,000
£6,000
£4,000
£2,000
£0
Q1
01
Q2
01
Q3
01
Q4
01
Orders
27 March 2003
Q1
02
Q2
02
Q3
02
Q4
02
Sales
Displays and the electronics that drive them.
Page 6
www.densitron.com
Sales - Geographic
Asia 31%
(29%)
USA 24%
(26%)
27 March 2003
Europe 44%
(45%)
Displays and the electronics that drive them.
Page 7
www.densitron.com
Sales – Class of business
PIDs 6% E-M 8%
(7%)
Computers
33% (27%)
27 March 2003
Displays
53% (66%)
Displays and the electronics that drive them.
Page 8
www.densitron.com
Thousands
Profit trend
£7,000
42.0%
£6,000
41.0%
£5,000
£4,000
40.0%
£3,000
39.0%
£2,000
£1,000
38.0%
£0
37.0%
-£1,000
-£2,000
36.0%
H1 00
H2 00
Gross Profit
27 March 2003
H1 01
H2 01
Operating Profit (excluding exceptionals)
H1 02
H2 02
Gross Profit %
Displays and the electronics that drive them.
Page 9
www.densitron.com
Balance Sheet
£ Thousands
As at
31/12/2002
As at
31/12/2001
Fixed Assets
17,723
20,281
Current Assets
13,434
15,829
(11,691)
(10,423)
1,743
5,406
Assets less current liabilities
19,466
25,687
Creditors due > 1 year
(2,313)
(598)
Net Assets
17,153
25,089
Creditors due < 1 year
Net Current Assets
27 March 2003
Displays and the electronics that drive them.
Page 10
www.densitron.com
Cash Flow
£ Thousands
Year to
31/12/02
Year to
31/12/01
(1,741)
380
(484)
-
995
1,162
1,253
1,152
(1,303)
(1,108)
Taxation Paid
(292)
(1,035)
Capital expenditure
(531)
(1,197)
-
18,831
Acquisitions & disposals
(125)
(12,345)
Equity dividends paid
(148)
(364)
(2,377)
5,476
Operating Profit / (Loss) pre exceptional
Cash element of exceptional items
Net Changes in Working Capital
Net non cash movements
Returns on investments
Rights Issue
Change in net debt
27 March 2003
Displays and the electronics that drive them.
Page 11
www.densitron.com
Financial Outlook
• MARKET CONDITIONS REMAIN UNCERTAIN!
However:
• Full year benefit of restructuring activities.
• Enter the year with strong order book.
• Good start to the year…
– Sales up 23% year on year.
– Orders up 59% versus 2002.
27 March 2003
Displays and the electronics that drive them.
Page 12
www.densitron.com
Vbest Update – Trading Performance
£ thousands
12 Months to
31/12/2002
£1=NT$51.94
12 Months to
31/12/2001
£1=NT$48.66
Sales
19,528
19,422
Margin
5,512
4,751
28.2%
24.5%
2,333
2,565
Margin %
Pre tax Profit
27 March 2003
Displays and the electronics that drive them.
Page 13
www.densitron.com
Summary
• Tough trading conditions - US and European markets
very slow.
• Improved order intake.
• Vbest on track.
• Continued strong performance at Hitech.
• Ferrograph added.
• Balance sheet review and financial restructuring
completed.
• Strategic review completed.
• Board of Directors strengthened.
27 March 2003
Displays and the electronics that drive them.
Page 14
www.densitron.com
Contacts
David McQuiggan
Chief Executive Officer
Densitron Technologies plc
01959 542000
[email protected]
Rob Smith
Finance Director
Densitron Technologies plc
01959 542000
[email protected]
Adam Reynolds
Hansard Communications
0207 735 9415
[email protected]
27 March 2003
Displays and the electronics that drive them.
Page 15