Headlines. Chairman s statement

Transcription

1 Energy Technique Plc ( Energy Technique or the Company ) Half-Yearly Report 30 September 2011

2 Headlines Diffusion increased sales by 18% over corresponding half year; Turnaround in Diffusion s operating profits to 149,000 from loss of 61,000 in corresponding half year; Turnaround in Group profit before tax to 65,000 from loss of 359,000 in corresponding half year; Strong balance sheet at 30 September 2011 with net assets of 1.42 million; Cash and cash equivalents at 30 September 2011 of 38,000; Diffusion has an improved order book with continuing high levels of enquiries. Chairman s statement Introduction I am very pleased to report a turnaround in trading performance in the half year ended 30 September Sales increased by 18% over the corresponding half year and with continued tight management and control of costs, this produced a return to profitability for both Diffusion and the Group. This is an encouraging set of trading results for Diffusion, particularly in the context of the current downturn in the UK property and construction market. Financial performance Sales in the half year were up 18% on the corresponding half year at 3.29 million (2010: 2.78 million), resulting in an operating profit for Diffusion of 149,000, compared with a loss in the corresponding half year of 61,000. Central and plc related costs were much lower in the current half year at 64,000 (2010: 144,000), arising from the decision not to replace the former Group CEO role, leading to a Group operating profit of 85,000 (2010: loss of 205,000). After interest charges of 20,000 (2010: 20,000), Group profit before tax was 65,000, compared with a loss of 359,000 incurred in the corresponding half year. The trading results of SIAS FM, the Company s former building services management company sold on 24 March 2011, are included under Discontinued Operations. The cash inflow from operating activities before changes in working capital was 121,000. Working capital absorbed 239,000 in line with the increase in sales levels and after interest charges of 20,000, cash absorbed by operations was 138,000. The Company remains soundly financed, having a strong balance sheet at 30 September 2011 with net assets of 1.42 million and cash at bank of 388,000, together with a modest draw down of 350,000 under its invoice discounting facility. Diffusion Diffusion has enjoyed very buoyant trading in the half year ended 30 September 2011, particularly in the context of the current downturn in the UK property and construction market. Both fan coils and commercial heating products experienced strong sales growth in the half year. Fan coil sales increased by 23% and commercial heating by 11% over the corresponding half year. A feature of the current sales cycle is the high volume of refurbishment work and demand for Diffusion s energy efficient products. Diffusion has improved its share of the UK fan coil market. The growth in fan coil sales is testament to Diffusion s quality products, engineering excellence and continued innovation. During the half year ended 30 September 2011, Diffusion has worked on many prestigious developments including the Shard Building, Heathrow T2, BBC Media City Salford, Hilton Hotels, London Stock Exchange, Tower 42, Google and follow on work in the Middle East. Diffusion first supplied fan coils into the One Hyde Park residential development in 2009 and it has built on this success through the Quadrant residential development. 1

3 Diffusion s commercial heating sales have also grown through a combination of its existing customer base and new customer wins. The commercial heating range enjoys the same reputation for engineering quality as Diffusion s fan coils and customers particularly like the availability of delivery from stock or short lead times, combined with a specialist bespoke service. End user customers are all blue chip retailers and hotels and these include Sainsbury s, Tesco, House of Fraser, TK Maxx, New Look, Primark, Superdry, the new Westfield Stratford Shopping Centre and Excel Hotel London. Current trading Sales in October are ahead of management s expectations. As I mentioned in my Chairman s Statement accompanying the 31 March 2011 accounts, Diffusion has market leadership and a high quality reputation allowing for the successful pursuit of major commercial projects. With a number of landmark South East projects under development, we continue to experience high levels of enquiries at the premium end of the market and an improved order book. Whilst it is too early to predict the outturn for the remainder of the current financial year ending 31 March 2012, there is presently cause for more optimism. Walter Goldsmith Chairman 21 October 2011 Contacts: Energy Technique Plc: Walter Goldsmith, Chairman Rob Unsworth, Company Secretary finncap (Nominated Adviser): Geoff Nash/Ed Frisby 2

4 Consolidated statement of comprehensive income For the six months ended 30 September 2011 CONTINUING OPERATIONS 6 months to 6 months to Year to 30 September 30 September 31 March Unaudited Unaudited Audited Revenue 3,289 2,780 5,786 Cost of sales (2,341) (2,069) (4,297) Gross profit ,489 Distribution costs (662) (656) (1,392) Administration expenses (201) (260) (466) Operating profit/(loss) Before exceptional items 85 (159) (261) Exceptional items (46) (108) 85 (205) (369) Finance costs (net) (20) (20) (27) Profit/(loss) before taxation 65 (225) (396) Taxation Profit/(loss) for the financial period from Continuing Operations 65 (225) (396) DISCONTINUED OPERATIONS Loss attributable to Discontinued Operations (134) (740) Total comprehensive income/(loss) for the period 65 (359) (1,136) Earnings/(loss) per share: Basic and diluted 0.20p (1.08)p (3.43)p Basic and diluted from Continuing Operations 0.20p (0.68)p (1.20)p There are no other recognised gains or losses other than as recorded in the consolidated statement of comprehensive income for the period. 3

5 Consolidated statement of financial position At 30 September 2011 ASSETS Non-current assets 30 September 30 September 31 March Unaudited Unaudited Audited Intangible assets Plant and equipment Deferred tax asset Total non-current assets 624 1, Current assets Inventories Trade and other receivables 1,372 1,747 1,137 Cash Total current assets 2,482 3,063 2,299 Total assets 3,106 4,135 2,954 LIABILITIES Current liabilities Trade and other payables (1,102) (1,415) (1,143) Current tax liabilities (164) (233) (150) Obligations under finance leases (65) (93) (96) Invoice discounting (350) (192) (189) Total current liabilities (1,681) (1,933) (1,578) Non-current liabilities Obligations under finance leases (65) (16) Total liabilities (1,681) (1,998) (1,594) Net assets 1,425 2,137 1,360 EQUITY Equity attributable to equity holders Issued capital 7,773 7,773 7,773 Other reserves 7,449 7,449 7,449 Retained earnings (13,797) (13,085) (13,862) Total equity 1,425 2,137 1,360 4

6 Consolidated statement of changes in equity Half year ended 30 September Unaudited Share premium Other Retained Share capital account reserves earnings Total At 1 April ,351 3,422 7,449 (13,862) 1,360 Total comprehensive income At 30 September ,351 3,422 7,449 (13,797) 1,425 Half year ended 30 September Unaudited At 1 April ,351 3,422 7,449 (12,726) 2,496 Total comprehensive loss (359) (359) At 30 September ,351 3,422 7,449 (13,085) 2,137 Year ended 31 March Audited At 1 April ,351 3,422 7,449 (12,726) 2,496 Total comprehensive loss (1,136) (1,136) At 31 March ,351 3,422 7,449 (13,862) 1,360 5

7 Consolidated cash flow statement For the six months ended 30 September 2011 Cash flows from operating activities 6 months to 30 September 2011 Unaudited months to 30 September 2010 Unaudited 000 Year to 31 March 2011 Audited 000 Profit/(loss) before taxation 65 (359) (1,136) Loss on disposal of SIAS FM 416 Finance costs (net) Depreciation Operating income/(loss) before changes in working capital 121 (302) (595) Decrease/(increase) in inventories (29) Increase in trade and other receivables (235) (319) (161) (Decrease)/increase in trade and other payables (27) Cash absorbed by operations (118) (335) (391) Finance costs (net) (20) (20) (33) Net cash absorbed by operating activities (138) (355) (424) Cash flows from investing activities Purchase of plant and equipment (5) (25) (26) Purchase of business and intellectual property (3) (5) (28) (26) Disposal of SIAS FM Consideration 23 Costs of disposal (9) Cash in company on disposal (136) Net cash used in investing activities (5) (28) (148) Cash flows from financing activities Repayments under hire purchase obligations (47) (45) (91) Net cash absorbed by financing activities (47) (45) (91) Net reduction in cash and cash equivalents (190) (428) (663) Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

8 Consolidated segmental analysis For the six months ended 30 September months to 6 months to Year to 30 September 30 September 31 March Unaudited Unaudited Audited CONTINUING OPERATIONS Revenue United Kingdom 3,061 2,207 4,957 Middle East Rest of Europe ,289 2,780 5,786 Operating profit/(loss) Diffusion before exceptional items 149 (61) (88) Exceptional item- bad debt (63) Diffusion after exceptional items 149 (61) (151) Central and plc costs before exceptional item (64) (98) (173) Exceptional item- settlement costs (46) (45) Central and plc costs after exceptional item (64) (144) (218) Operating profit/(loss) 85 (205) (369) Interest (net) (20) (20) (27) Profit/(loss) before tax 65 (225) (396) Income tax charge Profit/(loss) for the period on Continuing Operations 65 (225) (396) DISCONTINUED OPERATIONS- SIAS FM LIMITED Revenue 825 1,709 Operating loss (134) (734) Interest charge (6) Loss before tax (134) (740) Income tax charge Loss for the period on Discontinued Operations (134) (740) Consolidated revenue 3,289 3,605 7,495 Consolidated profit/(loss) for the period 65 (359) (1,136) 7

9 Notes to the consolidated interim report For the six months ended 30 September GENERAL INFORMATION Energy Technique Plc ( the Company ) is a public limited company incorporated in the United Kingdom (registration number 13273). The Company is domiciled in the United Kingdom and its registered office address is 47 Central Avenue, West Molesey, Surrey KT8 2QZ. The Company s Ordinary Shares are traded on the AIM market of the London Stock Exchange. 2. BASIS OF PREPARATION Energy Technique Plc has adopted International Financial Reporting Standards ( IFRS ) as adopted by the European Union. The financial statements are presented in sterling and all values are rounded to the nearest thousand pounds ( 000) except when otherwise indicated. The accounting policies and methods of computation used in the preparation and presentation of this half-yearly report are in a form consistent with that which will be adopted in the Company s annual accounts. 3. REPORTING UNDER INTERNATIONAL REPORTING STANDARDS As permitted, the Company has chosen not to adopt IAS 34 Interim Financial Statements in preparing these halfyearly financial statements and therefore the half-yearly financial information is not in full compliance with IFRS. 4. EARNINGS/(LOSS) PER SHARE The earnings/(loss) per share calculations have been arrived at by reference to the following earnings/(loss) and weighted average number of shares in issue during the period. Basic and diluted earnings/(loss) per share 6 months to 6 months to Year to 30 September 30 September 31 March Unaudited Unaudited Audited Pence Pence Pence Continuing Operations 0.20 (0.68) (1.20) Discontinued Operations (0.40) (2.23) 0.20 (1.08) (3.43) Profit/(loss) for the financial period after taxation Continuing Operations 65 (225) (396) Discontinued Operations (134) (740) 65 (359) (1,136) No. No. No. Weighted average number of ordinary shares in issue 33,120,160 33,120,160 33,120,160 Weighted average number of ordinary shares on a diluted basis 33,120,160 33,120,160 33,120, OTHER INFORMATION The half-yearly financial statements do not constitute statutory accounts as defined by Section 434 of the Companies Act It does not therefore include all the information and disclosures required in the annual financial statements. The financial information for the year ended 31 March 2011 has been extracted from the statutory financial statements for the Company for that period. These published financial statements prepared in a form consistent with International Financial Reporting Standards, as adopted by the European Union, were reported on by the auditors without qualification or an emphasis of matter reference and did not include a statement under Section 498(2) or (3) of the Companies Act 2006 and have been delivered to the Registrar of Companies. 6. POSTING TO SHAREHOLDERS In an effort to further reduce costs and in accordance with the AIM Rules for Companies, this half-yearly report will be announced on a Regulatory Information Service and published on the Company s website, but it will not be posted to shareholders. 8