Final Results
Screen PLC
3 May 2001
SCREEN PLC
PRELIMINARY RESULTS ANNOUNCEMENT
for the year ended 31 December 2000
Screen Plc ('Screen'), the provider of systems solutions to the public sector
and commercial market, announces preliminary results for the year ended 31
December 2000. Screen develops and supplies mobile data, in-car video, Control
by Touch command and control systems, mobilising and management information
systems, wireless CCTV cameras and Customer Relationship Management software.
Screen's technologies and products provide solutions for the Police and Fire
services, and prison, local authority, utilities and commercial sectors.
Distribution is through 38 countries in Europe, Africa, the Middle East and
Australasia.
Highlights of the Results
* Record revenues up 54% to £5.08m (1999: £3.3m)
* Pre-tax loss of £343,171 (1999 Pre-tax profit: £111,109) - as
anticipated by analysts, arising from increased investment and product
development
* No dividend
* Strong balance sheet with current net cash of over £3m
* Two acquisitions during period under review and product re-brandings
* Board Appointments
* SG Securities appointed joint broker
* 1-for-10 (1 new for 10 old) share consolidation in February 2001
* £1.5m of orders, since February 2001, at BAe Civil Systems acquisition,
re-branded as Petards Civil Systems
* £6m total order book at Petards Civil Systems.
* Record Q1 revenues exceeded revenues achieved in the first six months of
2000
* Outlook viewed with great confidence.
Regarding Current Trading and Prospects, Owen Williams, Chairman of Screen
said:
'At the outset of 1999 we had many products still under development and
provided few products, primarily to the UK marketplace. Now, we are
established as an innovative, international Group, offering a range of
solutions, services and proprietary technologies through a 38 country-wide
distribution network, and winning increasing volumes of profitable contracts
in the process.
'Since then we have accelerated organic growth in certain businesses, made
carefully researched acquisitions, which we expect to be earnings enhancing
and raised additional capital by way of share placings, attracting a number of
institutions to our shareholder base.
'Our strong sales and revenue generation in the first quarter, combined with
record order books, give us great confidence regarding our trading performance
in the current year.'
Contacts:
Screen Plc Binns & Co PR Ltd
Owen Williams, Chairman Tel: 01628 820011 Peter Binns, Paul McManus
James Shand, Finance
Director
info@screenplc.com http://www.screenplc.com Tel: 020 7786 9600
CHAIRMAN'S STATEMENT
INTRODUCTION
I am pleased to present our results for the financial year ended 31 December
2000, which was a period of very considerable progress for the Group. We
entered the period under review as a business with many products still under
development and providing relatively few products primarily to the UK
marketplace. Now we are established as an innovative, international Group,
offering a range of solutions, services and proprietary technologies, some
with significant barriers to entry, through global distribution channels, and
winning increasing volumes of profitable contracts in the process.
The Directors view your Group's prospects with great confidence.
Since writing to you at the interim results stage in September 2000, the Group
has been very active. We completed two acquisitions each of which brought
substantial intellectual property content; the in-car video business, ProVida,
from JAI A/S of Denmark and the Civil Systems division from BAE Systems Plc.
These were funded through two Placings, each of which was oversubscribed,
which introduced a number of institutional investors. The Directors believed
that liquidity in the Group's shares and its ability to attract new
institutional investors would be enhanced through a consolidation of the
Group's ordinary share capital and, following overwhelming shareholder
approval, effected a one for ten consolidation on the 26 February 2001.
Consistent with raising our profile with the institutional investor community,
we were pleased to appoint SG Securities as joint brokers from 1 February
2001.
RESULTS
Revenues, including acquisitions, increased 54% to £5,082,325 (1999 - £
3,304,928). The loss for the year of £279,250 (1999 - £89,465 profit) reflects
the planned cost of our investment in improved organisational infrastructure
to enable us to manage accelerated growth and the initial cost of introducing
new products to a wider market. Your Board is not recommending payment of a
dividend.
PRODUCT STRATEGY
Central to Screen's progress has been the Group's product strategy,
accompanied by a supporting sales and marketing strategy, including a
comprehensive rebranding programme. These have driven our growth and, in our
view, will continue to do so. During the period under review we have recruited
talented individuals into our teams strengthening our senior line management
and our marketing expertise. Our acquisitions have augmented our technological
capabilities, introduced new products with great potential and enabled us to
address incremental markets.
Petards Vision (formerly Petards International)
This company, in the period under review, enjoyed its best ever trading
performance. Our COBYT control systems, which provide advanced realtime video
and data management facilities, continue to be in strong demand for electronic
security and surveillance applications. Fuelled by the growing need for
resources and information to be shared between multiple agencies, surveillance
systems are becoming larger and more complex. Our COBYT products are well
positioned to address the more sophisticated control and management facilities
necessary when multiple disparate systems are integrated into larger more
extensive surveillance networks.
The introduction of IP (Internet Protocol) based video transmission is driving
the electronic security and surveillance market towards more extensive use of
IT technologies and system platforms in place of conventional control systems.
Petards Vision is well established in this arena and we believe that demand
for our skills and experience in this field will grow significantly.
Sales and installations of SWIFT, our wireless based mobile rapid deployment
camera system, accelerated during 2000. These cameras are being used by an
increasing number of local authorities and police forces for a wide range of
surveillance applications. In 2001 we have experienced continued strong demand
with orders in the first quarter running at some 300% of the level experienced
in the same period last year.
Work is now underway to make available to mobile vehicles encrypted video
(CCTV images) from these and other cameras hosted by our COBYT control
systems. We believe this will provide an outstanding additional tool for
surveillance and open up significant new revenue potential.
The business continues with its strategy of identifying and either developing
or acquiring innovative products through which we can demonstrate significant
operational benefits and added value to our customers.
Petards Mobile Intelligence (formerly Petards Datax)
The execution of one of our product concepts, that of providing complete,
fully integrated, scaleable wireless based systems that enable personnel to
carry out a variety of complex tasks whilst on the move will, we believe,
provide a distinct and compelling solution for the public and private sectors
and is, we consider, without parallel. In police applications we now routinely
provide ruggedised Pentium based systems located in the boot of vehicles that
incoporate our dashboard-mounted touch screens. These enable officers to
interface with a remote database from moving patrol cars whose position and
condition are being transmitted and monitored centrally.
Camera technology, acquired with the purchase of the ProVida business in
September 2000, enables the video recording of events external to the vehicle.
Almost all UK police forces use this technology, which is also being marketed
extensively and successfully throughout the rest of Europe and the Middle
East. In this connection we were pleased to be awarded a $1.2M contract for
the supply of these systems to the national police force in Turkey as part of
an initial roll-out. We have recently modified this technology to make it
suitable for installation on motorbikes and were pleased to receive early
orders for this product, notably from the Hong Kong police force.
Combining the computing power of our mobile data systems with our exclusive
camera technology has enabled the introduction of a mobile Automatic Number
Plate Recognition (ANPR) capability. In this application registration details
of moving vehicles can be read entirely automatically by travelling vehicles
such as patrol cars equipped with our systems. ANPR recognises, scans and
automatically checks vehicle number plates against an on-board database in
under a fraction of a second, alerting officers to 'wanted' vehicles, thus
considerably enhancing police officers' productivity and detection rates. In
April 2001 we announced our first order for ANPR from the Lancashire Police.
Strong interest has already been expressed at recent demonstrations of this
product in the UK and Europe.
Petards Civil Systems (formerly BAE Civil Systems)
Systems adopted in the police market can, of course, be equally and
effectively used in other emergency service applications. Hence our entry into
the fire services market via our acquisition of the Civil Systems Division of
BAE Systems Plc in February 2001. This is a business successfully providing
software and support systems to fire brigades throughout the country.
I am delighted to report that since this business came into our ownership
earlier this year, it has performed well and we are also announcing today an
influx of orders of £1.5M taking their total order book for this subsidiary to
over £6M, £1.8M of which we expect to fulfil in the current year.
Petards Corporate Knowledge (formerly Tranzline)
Petards Corporate Knowledge are authors of Customer Relationship Management
(CRM) software and implementers of sophisticated CRM systems for businesses
who want to increase their performance and profitability through improvements
in the way they service their customers. The company's software has wide
application and functionality especially in database interrogation. The system
can enable improved customer service and retention in a wide range of
e-commerce activities. The functionally rich eCRM software business that came
with our purchase is being installed on our hand-held products providing a
portable product which enables mobile workers to access critical corporate
information from their point of work.
The company has signed its first customers for Application Service Provider
(ASP) use, fired up the re-seller channel and is trading well.
OUTLOOK
We have introduced the ProGenie hand-held device capable of delivering many of
the benefits of our 'in vehicle' systems. Whilst this development is still at
a relatively early stage, it has been well received and we remain confident of
its outstanding potential. We plan to accelerate the rollout of our expanded
range of systems to other vertical markets, both in the UK and
internationally, and have targeted the North American market for early
attention.
The Group has an active and ongoing acquisition programme and is seeking
additional opportunities that will either enhance or extend the Group's
product range and/or markets within the general wireless communications
sector.
Our strong sales and revenue generation in the first quarter, combined with
record order books, give us substantial confidence regarding our trading
performance in the current year. In this context I am delighted to report that
revenues for the first quarter of the current year exceeded those achieved in
the first six months of 2000.
We recognise that there are dangers of a further economic downturn, but
consider that in currently predictable circumstances our increasing geographic
diversity and the preponderance of sales to the more stable public sector
should underpin the company's prospects.
ACKNOWLEDGEMENTS
As always, the talent of our employees especially the senior management team
has served the company well. Without their imagination, commitment and
expertise our excellent progress would not have been possible.
Three appointments strengthened your Board. In May 2000, we appointed James
Shand BSc, FCA, AMCT to the Board as Finance Director. He has considerable
experience of acquiring companies and managing rapid growth situations.
Earlier in the year, the Company appointed two senior non-executive directors,
Ian Taylor MBE MP, and Charles Hughes. Ian Taylor was Minister of Science and
Technology from 1994 to 1997. Charles Hughes was, until 1999, a director of
Fujitsu ICL and had held board appointments with high technology companies in
Australia, Germany, the UK and USA. Their combined knowledge and experience of
the technology sectors in which we now operate continues to be invaluable.
SUMMARY
To achieve our current position we have accelerated organic growth in certain
businesses, made carefully researched acquisitions which we expect to be
earnings enhancing and raised additional capital by way of share placings, in
the process attracting a number of institutions to our shareholder base.
In my last annual report I referred to the attention being paid to companies
offering trajectory, a term used to express potential for growth. Markets are
now once again attaching more importance to immediate revenue, profits and
cash flow; in this regard we are able to demonstrate an excellent trend. Today
we enjoy a strong balance sheet with net cash in excess of £3 million and we
confidently expect to generate operating profits in the current year from our
existing trading activities.
Owen Williams
Chairman and Chief Executive
3rd May 2001
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 31 December 2000
Unaudited Audited
Year ended Year ended
Note 31 December 31 December
2000 1999
£ £
Turnover
Continuing operations 3,351,567 3,304,928
Acquisitions 1,730,758 -
________ ________
5,082,325 3,304,928
Cost of sales (2,835,604) (1,767,017)
________ _________
Gross profit 2,246,721 1,537,911
Administrative expenses (2,548,932) (1,270,988)
Goodwill write-off (125,669) (23,042)
________ _________
Total Administrative expenses (2,674,601) (1,294,030)
________ _________
Operating (loss) / profit
Continuing operations (785,198) 257,609
Acqusitions 357,318 -
Discontinued operations - (13,728)
________ ________
Total Operating (Loss) / Profit 2 (427,880) 243,881
Exceptional loss on disposal of - (75,832)
discontinued operation
Net interest receivable/(payable) 84,709 (56,940)
________ ________
(Loss) / profit on ordinary activities before (343,171) 111,109
taxation
Taxation - 158
________ ________
(Loss) / profit on ordinary activities after (343,171) 111,267
taxation
Minority interest - equity 63,921 (21,802)
________ ________
(Loss) / profit for the financial year (279,250) 89,465
====== ======
Basic (loss)/earnings per share 4 (0.08)p 0.03p
Diluted (loss)/earnings per share 4 (0.08)p 0.03p
Statement of Total Recognised Gains and Losses for the year ended 31 December
2000
Unaudited Audited
31 December 31 December
2000 1999
£ £
Loss for the financial year (279,250) 89,465
Currency translation difference on foreign current 99,729 -
net investments
________ ________
Total recognised gains and (losses) relating to the (179,521) 89,465
year
________ ________
CONSOLIDATED BALANCE SHEET
For the year ended 31 December 2000
Unaudited Audited
31 December 31 December
2000 1999
£ £
Fixed assets
Intangible assets 6,834,169 733,746
Tangible assets 628,198 337,207
________ ________
7,462,367 1,070,953
_______ _______
Current assets
Stocks 909,526 513,572
Debtors 2,584,509 1,508,188
Cash at bank and in hand 1,526,934 503,100
________ ________
5,020,969 2,524,860
Creditors: amounts falling due within one (2,280,038) (2,075,434)
year
________ ________
Net current assets 2,740,931 449,426
Total assets less current liabilities 10,203,298 1,520,379
Creditors: amounts falling due after more (63,951) (55,306)
than one year
________ _______
Net assets 10,139,347 1,465,073
======= ======
Capital and reserves
Called up share capital 378,750 308,687
Share premium account 12,743,907 3,896,254
Profit and loss account deficit (2,925,282) (2,745,761)
________ ________
Equity shareholders' funds 10,197,375 1,459,180
Minority interest - equity (58,028) 5,893
________ _______
10,139,347 1,465,073
======= ======
NOTES TO THE PRELIMINARY ANNOUNCEMENT
For the year ended 31 December 2000
1. Basis of preparation
These statements do not constitute financial statements within the meaning of
Section 240 of the Companies Act 1985.
The statutory accounts for the year ended 31 December 2000 have not been
audited. They will be finalised on the basis of the financial information
presented by the directors in this preliminary announcement and will be
delivered to the Registrar of Companies following the company's Annual General
Meeting.
The financial information for the year ended 31 December 1999 is extracted
from the statutory financial statements for the year which have been delivered
to the Registrar of Companies. The auditors reported on those financial
statements and their report was unqualified and did not contain a statement
under Section 237(2) or (3) of the Companies Act 1985.
2. Acquisitions
The consolidated Profit and Loss Account includes the results of two
acquisitions made during the year. The results of Petards Corporate Knowledge
(formerly Tranzline) are included for 7 months and Petards Mobile Intelligence
A/S (formerly ProVida) for 3 months post acquisition.
3. Dividend
The Board of Directors does not recommend the declaration of a dividend for
the year ended 31 December 2000.
4. (Loss) / earnings per share
The basic earnings per share for the year ended 31 December 2000 is based on
the loss for the year on ordinary activities after taxation and minority
interest of £279,250 (1999: profit £89,465) and on the weighted average number
of ordinary 0.1p shares of 350,800,472 (1999 - 273,929,709).
The diluted earnings per share for the year ended 31 December 2000 is based on
a loss on ordinary activities after taxation and minority interest of £279,250
(1999 - £89,465) and on an adjusted weighted average number of ordinary 0.1p
shares of 370,165,694 (1999 - 276,583,118). The difference between this
weighted average number of shares and the weighted average number of shares
used for the basic earnings per share relates to the share options and
warrants in issue.
5. Balance Sheet
The balance sheet strength has been considerably enhanced over the year, with
share Placings together with the small current year loss, yielding a net
increase in shareholder funds of £8.6M. The Group assets have substantially
increased, with the two acquisitions mentioned above being the main reasons
behind the year on year changes. In particular, goodwill arising on the
consolidations and acquired intellectual property amounted to approximately £
5.5M of the £6.1M increase in intangible assets. Cash at bank and in hand was
approximately £1.5M at 31 December 2000. Since the year end cash has increased
through the £4.5M (net) placing and open offer in February 2001, £1.1M of
which has been applied to the acquisition of the Civil Systems division from
BAE Systems Plc.
6. Report and Accounts
Copies of the 2000 Report and Accounts will be sent to shareholders in due
course.
7. Announcement
Copies of this announcement will be available from the Nominated Adviser:
Smith & Williamson, No 1 Riding House Street, London W1A 3AS for 14 days from
the date of this announcement.
3rd May 2001