densitron technologies plc
DESCRIPTION
Densitron Technologies plc. 2003 Full Year Presentation by... David McQuiggan – Chief Executive Officer. Rob Smith - Finance Director. Operational Highlights. Reduced sales in difficult trading conditions. £3.5 Million exceptional items. Operating loss pre exceptional items of £1.2 Million. - PowerPoint PPT PresentationTRANSCRIPT
27 March 2003 Displays and the electronics that drive them. Page 1
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 2
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 3
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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
Gearing 17.9% 1.0%
Order Book as at 31st December 18.4 13.3
27 March 2003 Displays and the electronics that drive them. Page 4
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Profit and Loss account comparative
£ Thousands 2002 2001
Turnover 25,489 28,433
Cost of Sales (15,016) (17,359)
Gross Profit 10,473 11,074
Operating Expenses (12,338) (11,349)
Other operating income 123 655
Exceptional Items (3,533) -
Group Operating (Loss) / Profit (5,275) 380
Group Operating (Loss) / Profit pre exceptional items
(1,742) 380
Share of Associates Operating Profit 540 584
Total Operating (Loss) / Profit (4,735) 964
Net Interest Payable (559) (549)
(Loss) / Profit before tax (5,294) 551
27 March 2003 Displays and the electronics that drive them. Page 5
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Exceptional Items
Asset Basis of Impairment £000s
Retail Cassius computer stock and development
Expected lower selling price for retail version.
1,259
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 3,533
27 March 2003 Displays and the electronics that drive them. Page 6
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Sales and Orders - trend by quarter
£0
£2,000
£4,000
£6,000
£8,000
£10,000
£12,000
Q101
Q201
Q301
Q401
Q102
Q202
Q302
Q402
Orders Sales
27 March 2003 Displays and the electronics that drive them. Page 7
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Sales - Geographic
Europe 44% (45%)
USA 24% (26%)
Asia 31% (29%)
27 March 2003 Displays and the electronics that drive them. Page 8
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Displays 53% (66%)
Computers 33% (27%)
PIDs 6% E-M 8% (7%)
Sales – Class of business
27 March 2003 Displays and the electronics that drive them. Page 9
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Profit trend
-£2,000
-£1,000
£0
£1,000
£2,000
£3,000
£4,000
£5,000
£6,000
£7,000
H1 00 H2 00 H1 01 H2 01 H1 02 H2 02
Th
ou
san
ds
36.0%
37.0%
38.0%
39.0%
40.0%
41.0%
42.0%
Gross Profit Operating Profit (excluding exceptionals) Gross Profit %
27 March 2003 Displays and the electronics that drive them. Page 10
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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
Creditors due < 1 year (11,691) (10,423)
Net Current Assets 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
27 March 2003 Displays and the electronics that drive them. Page 11
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Cash Flow
£ Thousands Year to
31/12/02
Year to
31/12/01
Operating Profit / (Loss) pre exceptional (1,741) 380
Cash element of exceptional items (484) -
Net Changes in Working Capital 995 1,162
Net non cash movements 1,253 1,152
Returns on investments (1,303) (1,108)
Taxation Paid (292) (1,035)
Capital expenditure (531) (1,197)
Rights Issue - 18,831
Acquisitions & disposals (125) (12,345)
Equity dividends paid (148) (364)
Change in net debt (2,377) 5,476
27 March 2003 Displays and the electronics that drive them. Page 12
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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 13
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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
Margin % 28.2% 24.5%
Pre tax Profit 2,333 2,565
27 March 2003 Displays and the electronics that drive them. Page 14
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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 15
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Contacts
David McQuiggan
Chief Executive Officer
Densitron Technologies plc
01959 542000
Rob Smith
Finance Director
Densitron Technologies plc
01959 542000
Adam Reynolds
Hansard Communications
0207 735 9415