Final Results
Radstone Technology PLC
12 June 2002
Preliminary Results for the year ended 31 March 2002
RADSTONE EXCEEDS TARGETS AT FULL YEAR
WITH STRONG SECOND HALF
Radstone Technology PLC ("Radstone", LSE:RST), the leading supplier of
high-performance, rugged computer products to the defence and aerospace
industries, today announces its preliminary results for the year ended 31 March
2002.
Highlights
• Performance exceeds expectations despite challenging first half
• Profit before tax up 11% to £4,575,000 (2000: £4,109,000)
• Basic earnings per share 13.19p (2001: 11.48p).
• Dividend restored with final dividend of 1.0p (2000: 0.0p)
• Strong second half sales exceed expectations
• Turnover for the year £41,204,000 (2000: £41,263,000)
• Substantial rise in new orders in second half.
• Strong forward order book
Rhys Williams, Chairman, commented:
"I am delighted to report an excellent performance for Radstone in a difficult
year. Our main Embedded Computing business has made strong progress during the
year, responding well to the needs of its major customers in a time of crisis.
" The market for our computing products continues to be robust, especially in
the US. Our ruggedised computer systems are being extensively adopted by US
defence contractors. As we had anticipated, Radstone has received a surge of
enquiries and orders in the second half following the completion of the US
Quadrennial Defence Review. Promisingly, many of these orders are for our higher
margin products.
" We continue to be involved at the forefront of defence technology. Our systems
are being utilised in cutting edge platforms such as the Predator unmanned
reconnaissance aircraft. Additionally, we have won a key contract to participate
in the upgrade of the M1A1 Abrams, the US Army's main battle tank.
" Radstone is now the partner of choice in an increasing range of major system
developments. The scale, duration and strategic significance of these
developments give us renewed confidence for the future growth of the Radstone
Technology Group.
- ends -
Date: 12th June 2002
For further information please contact:
Radstone Technology PLC City Profile Group
Charles Paterson, Group Managing Director Ed Senior
Jeff Perrin, Finance Director Simon Courtenay
01327-359444 020-7448-3244
Web: www.radstone.com E-mail: edward.senior@city-profile.com
Chairman's Statement
for the year ended 31 March 2002
I am pleased to report that the performance of the Radstone Group during the
year, as set out in the trading statement on 15 May 2002, exceeded revised
expectations, despite a difficult trading environment. This was due to a
favourable sales mix in the final quarter of the year. Profit before tax
increased from £4,109,000 last year to £4,575,000, (+11%).
Sales recovered strongly in the second half, to end the year at £41,204,000, a
level close to last year's £41,263,000. The Embedded Computing business had a
particularly strong second half following the formal clarification of the new US
Administration's defence procurement strategy in September 2001. The EMS
(Electronic Manufacturing Services) business, still overshadowed by the UK
manufacturing downturn, produced a slight improvement in second half deliveries.
With a reduced effective tax rate of 32% (2001:34%) the post tax profit was
£3,124,000, (2001: £2,699,000), an improvement of 16%.
Basic earnings per share under FRS14 were 13.19p (2001: 11.48p). Normalised
earnings per share increased by 14% from 12.28p to 13.97p.
The pace of new orders received increased in the second half of the year to give
a final total of £40,668,000, with 62% of those orders being received between
October and March.
At year-end, the order book for future delivery stood at £73,465,000, a similar
level to last year.
Dividend
Due to the performance of the Group and the Directors' views on the prospects
for the business, your Board recommends payment of a dividend of 1.0p per
ordinary share, (2001: 0.0p). This will be paid on 30 September to shareholders
on the register on 6 September 2002. Due to the weighting of earnings between
the two halves of the year, it is not proposed to pay an interim dividend during
year ending 31 March 2003.
New Product Development
At this time last year we stated:
"...We continue to regard our investment in new product development as the
cornerstone of the Radstone Group's commercial success. In the year ahead, we
shall use every available means to increase development resources to levels
which enable Radstone to maintain its present leadership role in the Embedded
Computing area..."
It is pleasing to report the success of our efforts in this area.
Our investment in new product development has increased by 26% to £3,474,000,
with a succession of successful new product introductions, notably in the
PowerPC processor and Digital Signal Processing areas. Included in this
investment is a 17% increase in engineering headcount.
This has proved to be a key factor in winning market share from our competitors
and converting our strong order book into profits.
Employee Share Ownership
The Company has an Inland Revenue Approved share option scheme and currently
675,200 shares are subject to option.
During April 2001, the Company introduced a Share Incentive Plan (SIP) for all
employees that gives them the opportunity to own the Company's shares within a
favourable tax environment. At 31 March 2002, 43,568 shares had been purchased
for employees under this scheme.
With the Annual Report shareholders will receive a circular that sets out our
proposal to introduce a long term Unapproved Share Option Scheme. It is becoming
increasingly important in recruiting and retaining the right calibre of senior
executive, to offer the opportunity to participate in the Company's creation of
wealth through shareholding. We strongly feel that share ownership by executives
strengthens the link between their personal interests and those of shareholders.
Consequently your Board recommends that shareholders vote in favour of this
proposal at the AGM on 11 September 2002.
Outlook
Following a difficult year for our EMS business, we have revised our cost and
revenue plans to exclude any significant upturn in the UK business cycle.
Going forward, this business will increase its focus on the outsource needs of
defence system integrators, where Foundation Technology has a strong reputation
and there are clear prospects of long-term growth.
Our main Embedded Computing business made excellent progress during the year,
responding well to the needs of its major customers in a time of crisis while
continuing to provide technical leadership in a rapidly expanding international
market.
Radstone is now the partner of choice in an increasing range of major system
developments. The scale, duration and strategic significance of these
developments give us renewed confidence for the future growth of the Radstone
Technology Group.
Operations Review
for the year ended 31 March 2002
Embedded Computing
2002 2001
£'000 £'000
Total sales (all external) 28,793 25,927
Gross profit 14,396 12,070
Contribution 6,913 5,265
The Embedded Computing business experienced a slow start to the year as a
consequence of the change of administration in Washington. This resulted
initially in a generally subdued level of activity as the main US procurement
agencies awaited the publication of the new Administration's first Quadrennial
Defense Review (QDR).
However, the repercussions for defence systems integrators of the international
crisis of September 2001, coinciding with the publication of the QDR, marked a
watershed in the affairs of the Embedded Computing business. As we stated at our
interim stage, these events have signalled the start of a substantially more
active period.
Having been 13% below 2001 levels at the mid-way point, shipments doubled
between October and March. Second half sales of £19,322,000 compared with
£9,471,000 in the first half, making a total for the year of £28,793,000, (2001:
£25,927,000), an increase of 11%.
Much of this increase resulted from the re-scheduling forward of higher margin
orders in response to urgent requests from customers. These products replaced
lower margin orders that could not be shipped for external administrative
reasons outside our control and will now fall within the year ending 31 March
2003.
Such an extreme degree of sales imbalance is unusual, and has implications for
working capital and cash flow.
Higher margin ruggedised products accounted for a large proportion of shipments,
resulting in an increase in gross profit from 47% in 2001 to 50%. Contribution
was 31% above last year, reflecting the combined effects of the sales and margin
increases.
The most active production programmes were Lockheed Martin, (LAMPS), BAE
Systems, (Eurofighter DASS), Grumman Aerospace Corporation, (Firefinder) and
Harris Corporation, (MLRS).
Taken together, these accounted for around 30% of the Radstone Group annual
sales total, with no single customer or programme representing more than 9%.
PowerPC processor sales increased 74% to £12,312,000, (2001: £7,057,000).
Board-level processors represented 43% of the Embedded Computing total,
underlining the sustained success of the product family and the international
user community's growing acceptance of Radstone's standard PowerPC platform.
Graphics/DSP revenue increased by 54% in the year, mainly as a result of
shipments to the LAMPS programme and an undisclosed General Dynamics avionics
application.
September 2001 saw the introduction and first shipments of Radstone's G4DSP
signal processing engine, designed to meet the signal processing requirements of
high performance RADAR and SONAR systems in the tactical military environment.
The product's innovative architecture has set new standards for inter-processor
and memory bandwidth, attracting world-wide interest among system designers.
System products sales continued the upward trend of recent years, gaining a
further 22% to £5,519,000, (2001: £4,510,000 and 2000: £3,211,000). Once more,
Southern Europe was the most active destination, with major shipments completed
to Spain, Italy and Turkey.
The marketing and design efforts of the last few years have created a versatile
range of system components, which offer real advantage to OEM system
integrators, especially in the avionics area. Further growth is likely and
organisational changes have been implemented to ensure more rapid processing of
enquiries and orders in an area which differs in important details from the
board-level business of Embedded Computing.
The UK Ministry of Defence (MOD) during February 2002 took the decision to
cancel the upgrade of the Sea Harrier F/A2. This affects our contract for
upgrade of the core computer with Smiths Aerospace, a sub-contractor to BAE
Systems, the main contractor to MOD. As allowed for in the contract, we are
currently in the process of collecting all costs for a termination invoice.
Total bookings of £32,583,000 were received by the Embedded Computing business
(2001: £50,456,000), but unlike last year did not include any large multi-year
production orders. Orders received followed a similar pattern to sales, with an
increased level of activity following September, dividing £10,774,000 :
£21,809,000 as between the first and second halves of the year.
Electronic Manufacturing Services (EMS)
2002 2002
£'000 £'000
Total sales 13,374 16,533
Sales to Embedded Computing (963) (1,197)
External sales 12,411 15,336
Gross profit 1,307 2,398
Contribution 873 1,855
2002 was a difficult year for Foundation Technology. The business was directly
affected by the ongoing industrial recession in the UK, which resulted in the
general reduction in outsource business reported in the Interim Statement to
Shareholders.
Radstone has taken measures to mitigate, where possible, the effects of the
general manufacturing downturn. In a diverse customer list, not all suffered
equally and order flow was maintained in areas such as commercial displays and
automotive instrumentation, but the general industrial automation outlook
remained bleak until the last few months of the year.
Activity levels among UK defence product manufacturers increased after September
2001. In several cases this resulted in the overload of customers' internal
manufacturing resources. This has resulted in opportunities for responsive,
outsource partners such as Foundation Technology, with an understanding of
defence equipment practice.
Foundation Technology's credibility in this area proved valuable, enabling the
business to book and ship appreciable quantities of defence products within the
year. Much of this was carried out on a free-issue materials basis at attractive
margins.
The development of long-term partnerships with major customers continues to be a
key element of Foundation Technology's long term commercial strategy.
There is good reason to believe that long-term relationships of this kind can be
forged with the new defence product customers recruited during the latter months
of the year. Changes have been made to the sales and customer support functions
of the business to make this more likely.
Despite the defence-product led recovery in the second half of the year, total
EMS sales, (excluding inter-company sales), fell from £15,336,000 in 2001 to
£12,411,000, (-19%).
New orders, excluding inter-company orders, totalled £8,085,000 against
£18,340,000 last year, (-56%). Over the year, the order book for future delivery
declined from £9,320,000 to £4,994,000, (-46%).
Group Geographical Analysis of Operations
Sales
Radstone Group Sales were virtually unchanged, at £41,204,000 versus last year's
£41,263,000.
UK sales of £18,136,000 were within 1% of the £18,253,000 achieved in 2001,
maintaining Radstone Group export sales at around 56%.
The flat shipments figure conceals the contrasting experiences of the two
Radstone businesses in the UK, with the Embedded Computing business seeing 88%
growth from £3,173,000 to £5,969,000, offsetting the 19% EMS business decline,
from £15,080,000 to £12,167,000.
For the EMS business, the lack of access to export markets and the UK
manufacturing recession strained margins on new industrial business.
Overlying the recession, the collapse of confidence among industrial customers
following September 2001 was most acute in the civil aerospace community,
causing Foundation Technology to remove virtually all civil aerospace shipments
from the sales forecast.
This left the business to focus on areas such as commercial displays and
automotive instrumentation, where long-term supply contracts and orders
associated with niche markets, (such as telemetry for Grand Prix racing
vehicles), provided a way forward.
An increase in the number of customers operating on a 'free issue' components
basis in the second half of the year tended to accentuate the decline in sales
revenue, while at the same time providing higher value added business. This was
particularly true of the UK defence customers which made up a substantial
proportion of the Q3 and Q4 shipments in terms of units.
The special documentation and quality assurance procedures associated with
defence business required changes to the EMS customer support organisations,
both at Towcester and Hawarden. Now fully implemented, these provide important
competitive differentiation, qualifying the EMS business to pursue additional
defence business both in the UK and elsewhere.
By contrast, the year was one of strong sales growth in the UK home market for
the Embedded Computing business, as a number of design-wins from previous years
flowed through to volume production.
The largest single UK product destination was BAE Systems, where Radstone is now
an important supplier to several programmes. The most prominent of those in the
public domain was Eurofighter DASS, where shipments into the production build-up
for the Tranche 1 aircraft commenced during the year.
Substantial board-level shipments were also made to Thales Systems, Alenia
Marconi Systems and to UK-based subsidiaries of General Dynamics.
Shipments of configured systems represented approximately a third of Embedded
Computing business UK sales.
The most important export market continued to be the USA, which accounted for
40% of the Radstone Group total, with sales of £16,527,000, (2001: £17,577,000).
The slow pace of sales in the first half, followed by the increased demand
levels following the September crisis, gave an unusual shipment pattern to the
year, with no less than 69% of US sales taking place during the second half of
the year.
A large proportion of these second half deliveries in the USA involved
production orders resulting from mature design wins from previous years, where
Radstone's products were required for immediate deployment in equipment.
The most active customers were Lockheed Martin, Raytheon, Harris and Northrop
Grumman.
Orders
New orders for future delivery totalled £40,668,000 compared with £68,796,000 in
2001, a decrease of 41%. At Radstone Group level this gave a book-to-bill ratio
of 0.99, against 1.67 a year ago.
In our main US market place, there was no equivalent of last year's $18.3
million Firefinder order and the bookings total ended at £18,297,000 compared to
£28,209,000, (-35%) in 2001.
Even allowing for Firefinder, US orders were depressed by the low level of new
procurement activity in Q1 and Q2, for reasons now well understood.
After September the pace of activity increased, with 82% of US bookings being
logged in the second half of the year.
One of the most significant new design-wins in the period was at General
Dynamics Land Systems, where PowerPC products from Radstone's rugged VMEbus
range were selected for the next phase of the M1A2 Abrams Main Battle Tank
upgrade programme.
The initial $3 million order covers the upgrade of the first 50 of approximately
2000 tanks in the US inventory. This is a long-term strategic programme
demanding functionality, performance and survivability of a very high order and
we regard the award as an important acknowledgement of the technical excellence
of Radstone's current product family.
Throughout the year, we continued to book and ship orders from Raytheon Systems,
for VMEbus hardware for the Advanced Targeting Forward-Looking Infrared,
(ATFLIR), pod for the US Navy's Super Hornet aircraft.
The year saw the shipment of the first ATFLIR pod to an operational Super Hornet
squadron, in preparation for service on board the USS Abraham Lincoln, marking
an important milestone in the programme.
Avionic systems for unmanned military aircraft were an area of increased
activity after September 2001, with multiple orders for VMEbus hardware from
General Atomics Aeronautical Systems, for the Predator reconnaissance aircraft.
Outside the USA, the Embedded Computing business saw new orders for future
delivery fall from last year's £22,247,000 to £14,286,000, (-36%).
The largest decline was in mainland Europe, down from £14,699,000 to £3,672,000
in the absence of any single booking to compare with last year's €14.5 million
NH90 helicopter order from WASS in Italy.
Bookings in the UK home territory (excluding the EMS business) remained strong,
increasing by 11% from £4,993,000 to £5,523,000. BAE Systems was the largest
single Embedded Computing customer, with a new order total of approximately £2.5
million, including a further production release for the Eurofighter/DASS
programme.
In the Far East, new orders increased from £1,604,000 to £4,444,000, (+177%).
The total includes the first significant order from mainland China for a
customised VMEbus digital signal-processing product for a weather radar
application.
Unlike the previous year, no large multi-year production orders were received,
although the order book remained strong at the year-end at £73,465,000, similar
to last year's £74,001,000.
Enterprise Resource Planning System
Following an extended preparation period, the Towcester-based and US businesses
made a successful transition to the SAP R/3 Enterprise Resource Planning system
during the months of July and August 2001.
Early procurement of component stocks, which had been prepared on a contingency
basis in anticipation of migration problems, proved to be unnecessary.
Manufacturing productivity was impaired during the initial change period, but by
September all essential processes had migrated. It is pleasing to note that the
new system has significantly increased efficiency and enabled Radstone to
support the high levels of output achieved in the third and fourth quarters of
the year.
By the year-end, the Towcester businesses could claim familiarity with the basic
operations of the system, though further understanding of the more powerful
features is required, with the aim of applying these to achieve better use of
working capital.
Laboratory, Office and Manufacturing Facilities
The Group's main UK operations centre is located in Towcester, Northants. In
recent years, the residential development of the surrounding area has resulted
in a variety of restrictions, making the site substantially less suitable for
the growth of a technology- based business.
An alternative location has been identified and plans are now being prepared for
the sale of the present site and the relocation of both businesses into local
purpose-built facilities, within the next two years.
Financial Review
for the year ended 31 March 2002
Overview
Group Sales of £41,204,000 were similar to last year although substantially
weighted towards the second half. Second half deliveries were 62% of the total,
compared to 56% in the previous two years. The first half was affected by the
low level of Embedded Computing sales, caused by the slow down in activity prior
to the publication of the US Administration's defence procurement strategy (QDR)
in September 2001.
Gross profits were 38.1% compared to 35.1% last year. Margins in the Embedded
Computing business improved substantially from 46.6% to 50.0%, due to the
increased mix of higher margin products.
Absolute gross profits increased by £1,235,000. Expenditure on development,
sales, marketing and administration increased by £720,000 with the result that
operating profit (excluding goodwill amortisation) increased by £515,000 to
£5,258,000, an 11% improvement. This represented an operating profit of 12.8% of
sales, compared to 11.5% last year.
EBITDA at £6,810,000 was 11% above last year. The first half generated £11,000
and the second half £6,799,000, compared to £2,165,000 and £3,955,000
respectively.
Interest costs of £497,000 were £49,000 more than last year.
The tax charge of £1,451,000 represented 32% of the pre-tax profit compared to
34% in 2001, which has been restated to adopt FRS19 (Accounting for Deferred
Tax).
The basic earnings per share (FRS14) were 13.19p (2001: 11.48p). The normalised
earnings per share were 13.97p, a 14% increase compared to last year.
Cash flow
Cash flow from operating activities was £788,000 compared to £4,248,000 last
year. Several completed orders could not be shipped within the year for external
administrative reasons outside our control and will now fall within the year
ending 31 March 2003. This, coupled with the highly asymmetric pattern of
trading, resulted in unusually high levels of debtors and inventory at the
year-end.
Additional income of £9,000 was received from the exercise of share options.
After net interest, tax payments and purchase of own shares of £540,000,
£1,252,000 and £88,000 respectively and capital expenditure of £1,697,000, cash
outflow amounted to £2,780,000.
The cash outflow, offset slightly by a £15,000 exchange rate movement on net
foreign borrowings, increased net debt from £5,264,000 to £8,029,000 at the
year-end.
Investment
During the year a net £1,697,000 was invested in capital equipment compared with
£1,735,000 in 2001.
Company-funded development expenditure amounted to £3,474,000 (2001:
£2,752,000), representing 12.1% of sales for the Embedded Computing business
(2001: 10.6%). Consistent with the Group's established policy, all product
development was charged directly to the profit and loss account.
Liquidity
Gearing at the year-end fell to 43%, (31 March 2001: 33%) from 55% at the half
year. Current and quick ratios were 1.9 and 1.1 respectively, unchanged from
last year. Interest was covered 10.6 times also unchanged from last year. The
proposed dividend is covered 13.1 times.
The Group seeks to reduce financial risk and to ensure sufficient liquidity is
available to meet foreseeable needs. Our policy is to maintain a balance between
continuity of funding and flexibility through the cost-effective use of
borrowings with a range of maturities.
Performance
Normalised earnings per share, (see calculation in note 1), which is more
indicative of underlying performance, grew by 14% from 12.28p last year, to
13.97p.
The return on capital employed was below last year's 22.4% at 19.8% and return
on equity of 16.9% was also below last year's 17.0%.
Treasury
With a substantial part of sales in United States dollars, hedging foreign
exchange fluctuations against this currency is recognised by the directors as a
key responsibility. Whilst the majority of this exposure is hedged by purchases
of components in US dollars and the local costs of our US operation, there still
remains a net exposure to be hedged. The prudent use of various financial
instruments minimises this vulnerability to the volatility of the rate of
exchange to the US dollar.
At 31 March 2002 there was £1,000 of unrealised net gains on 54 forward foreign
currency contracts and options (31 March 2001: £358,000 of net losses) covering
US dollars, and Euro. None of these was recognised at the balance sheet date.
All unrealised net gains are expected to be dealt with in the profit and loss
account for the period ending 31 March 2003. During 2001/02, all of the net
losses not realised at 31 March 2001 were included in the profit and loss
account.
Since unrealised gains or losses are calculated by marking to market forward
foreign currency contracts and options, that in themselves are used to calculate
foreign currency prices for our products, the off-set for these unrealised
amounts are the sales which will result from the physical delivery of these
products.
Translation exposure arising on the consolidation of the Group's US assets is
hedged by use of a US dollar loan in the UK parent company. The net effect of
this is taken direct to reserves as allowed under SSAP20, ensuring that only
trading transaction gains and losses on foreign exchange are represented in the
profit and loss account.
The interest rate exposure created by the requirement of the US dollar loan is
managed by interest rate SWAPS. Interest rate exposures on Sterling loans are
currently unhedged during a period of falling interest rates. This is
continually under review.
Financial reporting standards
Two new Financial Reporting Standards ("FRS") have been adopted in full, FRS18
(Accounting Policies) and FRS19 (Deferred Tax). The effect of adopting FRS19 was
to reduce the tax charge this year by £22,000 and increase the charge last year
by £170,000. The full requirements of FRS17 (Retirement Benefits) do not become
mandatory until our year-end 31 March 2004. Had it been adopted early, it would
have reduced the charge to the profit and loss account by £100,000 and created a
net pension liability on the balance sheet of £941,000.
Consolidated Profit & Loss Account
for the year ended 31 March 2002
As restated
Notes 2002 2001
£'000 £'000
Turnover 41,204 41,263
Cost of sales (25,501) (25,795)
________ ________
Gross profit 15,703 14,468
Administration costs
Administration (2,528) (2,377)
Development (3,474) (2,752)
Goodwill (186) (186)
________ ________
Total administration costs (6,188) (5,315)
Distribution costs - sales and marketing (4,443) (4,596)
________ ________
Operating profit 5,072 4,557
Net interest payable (497) (448)
________ ________
Profit on ordinary activities
before taxation 4,575 4,109
Taxation (1,451) (1,410)
________ ________
Profit for the financial year 3,124 2,699
Dividend proposed (1.0p per share) (238) -
________ ________
Retained profit for the year 2,886 2,699
________ ________
Basic earnings per share 1 13.19p 11.48p
________ ________
Normalised earnings per share 1 13.97p 12.28p
________ ________
Diluted earnings per share 1 13.12p 11.34p
________ ________
Statement of total recognised gains and losses
£'000 £'000
Profit for the financial year 3,124 2,699
Exchange rate adjustment (232) 311
________ ________
Total gains recognised relating to the year 2,892 3,010
Prior year adjustment 146 -
________ ________
Total gains recognised in the year 3,038 3,010
________ ________
There is no material difference between the profit reported above and that
calculated on the historical cost basis. Turnover and expenses all relate to
continuing operations.
Balance Sheets
at 31 March 2002
Group Company
As restated As restated
2002 2001 2002 2001
£'000 £'000 £'000 £'000
Fixed assets
Goodwill 3,286 3,472 - -
Intangible assets 50 86 50 86
________ ________ ________ ________
Total intangible assets 3,336 3,558 50 86
________ ________ ________ ________
Tangible assets 5,967 5,792 1,546 1,567
Own shares 235 147 235 147
Investments - - 6,865 6,865
________ ________ ________ ________
9,538 9,497 8,696 8,665
________ ________ ________ ________
Current assets
Stocks 11,773 10,010 - -
Debtors falling due after
more than one year - - 151 2,746
Debtors 15,273 11,495 5,007 3,618
Cash at bank and in hand 672 741 4,891 2,816
________ ________ ________ ________
27,718 22,246 10,049 9,180
________ ________ ________ ________
Creditors: amounts falling due
within one year
Bank and other borrowings 4,828 1,530 - -
Other creditors 10,030 9,876 1,083 1,057
________ ________ ________ ________
14,858 11,406 1,083 1,057
________ ________ ________ ________
Net current assets 12,860 10,840 8,966 8,123
________ ________ ________ ________
Total assets less current liabilities 22,398 20,337 17,662 16,788
Creditors: amounts falling due after
more than one year
Bank and other borrowings 3,873 4,475 2,922 5,350
Provisions for liabilities and charges - - 329 346
________ ________ ________ ________
3,873 4,475 3,251 5,696
________ ________ ________ ________
Net assets 18,525 15,862 14,411 11,092
________ ________ ________ ________
Capital and reserves
Called up share capital 2,977 2,974 2,974 2,974
Share premium account 9,509 9,503 9,503 9,503
Revaluation reserve 218 218 218 218
Profit and loss account 5,821 3,167 1,707 (1,603)
________ ________ ________ ________
Equity shareholders' funds 18,525 15,862 14,411 11,092
________ ________ ________ ________
Consolidated Cash Flow Statement
for the year ended 31 March 2002
2002 2001
£'000 £'000
Operating activities
Net cash inflow from operating activities 788 4,248
________ ________
Returns on investments and servicing of finance
Interest received 17 36
Interest paid (420) (395)
Interest paid on finance leases (137) (109)
________ ________
(540) (468)
________ ________
Taxation
UK Corporation tax paid (957) (568)
Overseas tax paid (295) (29)
________ ________
(1,252) (597)
________ ________
Capital expenditure and financial investment
Purchase of tangible fixed assets (1,265) (848)
Purchase of own shares (88) (147)
Purchase of intangible fixed assets - (79)
________ ________
(1,354) (1,074)
________ ________
Equity dividends paid - -
________ ________
Net cash (outflow)/inflow before financing (2,357) 2,109
________ ________
Financing
Issue of ordinary share capital 9 190
________ ________
9 190
________ ________
Repayment of loans (500) (633)
Repayment of principal under finance leases (503) (904)
________ ________
(1,003) (1,537)
________ ________
(994) (1,347)
________ ________
(decrease)/increase in cash (3,351) 762
________ ________
Note to the Consolidated Cash Flow Statement
Reconciliation of operating profit to net cash
inflow from operating activities
Operating profit 5,072 4,557
Amortisation of goodwill 186 186
Amortisation of intangible fixed assets 36 23
Depreciation of tangible fixed assets 1,516 1,354
Loss on disposal of tangible fixed assets 5 2
Increase in stocks (1,763) (2,034)
Increase in debtors (3,755) (2,913)
(decrease)/increase in creditors (509) 3,073
________ ________
Net cash inflow from operating activities 788 4,248
________ ________
Notes:
1. Earnings per share
2002 2001
pence Pence
per share per share
Basic earnings per share 13.19 11.48
________ ________
Normalised earnings per share 13.97 12.28
________ ________
Diluted earnings per share 13.12 11.34
________ ________
The calculation of basic and diluted earnings per share is based on the profit
for the year after tax of £3,124,000 (2001: £2,699,000). Normalised earnings per
share is calculated after adjusting profit after tax for the effect of goodwill
amortisation and is more indicative of underlying performance. The
reconciliation of basic to normalised earnings per share is as follows:
2002 2001
pence pence
per share per share
Basic earnings per share 13.19 11.48
Goodwill written off 0.78 0.80
________ ________
Normalised earnings per share 13.97 12.28
The weighted average number of shares in issue during the year used in the
calculation of earnings per share is as per the following table:
2002 2001
'000 '000
Weighted average for year - basic and
normalised earnings per share 23,696 23,498
Calculation of shares under option per FRS 14 123 291
________ ________
Weighted average for year - diluted earnings per share 23,819 23,789
2. The comparative figures for the year to 31 March 2001 do not constitute full
accounts within the meaning of Section 240 of the Companies Act 1985. Full
accounts for that period, which received an unqualified audit report and did
not contain a statement under Section 237(2) or Section 237(3) of the
Companies Act 1985, have been delivered to the Registrar of Companies. The
financial information set out in the preliminary statement of results for
the year ended 31 March 2002 does not constitute statutory accounts within
Section 240 of the Companies Act 1985. The Group's statutory accounts for
the year ended 31 March 2002 have not yet been filed with the Registrar of
Companies. The Company's auditors have issued an unqualified report on those
financial statements. Their report contains no statement under Section 237
(2) or Section 237(3) of the Companies Act 1985.
3. This preliminary announcement is prepared on the basis of the accounting
policies as stated in the financial statements for the year ended 31 March
2001, amended by the adoption of FRS 18 (Accounting Policies) and FRS 19
(Deferred Tax).
4. Copies of the 2002 Report and Accounts will be sent to shareholders in due
course. Further copies will be available from the registered office of
Radstone Technology PLC, Water Lane, Towcester, Northants NN12 6JN.
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 3rd January 2025
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