Interim Results

Toad Group PLC 23 July 2003 Embargoed Release: 07:00hrs 23rd July 2003 Toad Group Plc ('Toad' or the 'Group') Interim results for the 6 months ended 30 June 2003 Chairman's statement 'I am delighted with the performance of the Group in the first half of the year and, with a number of new initiatives in the pipeline, I believe that the Group can look forward to the future with confidence' -Peter Ward, Chairman Highlights • Profit up three fold to £0.6m for the first six months of the year (£0.2m 2002) • Very strong cash flow - net debt reduced to £4.7m (£7.9m 2002) • Security businesses boosted by sales to Original Equipment (OE) manufacturers • Datatool continues to grow with the addition of two more motorcycle manufacturers to its portfolio of OE customers • Camera and computer claims handling makes encouraging start • Pilot vehicle inspection service for the insurance industry launched I am pleased to present our unaudited interim figures for the six months to 30 June 2003 which show continued improvement following the turnaround achieved last year. Financials Turnover overall increased to £17.6m (2002: £17.4m) and net profit increased to £0.6m (2002: £0.2m). The increase in sales has come from improved performance in our security businesses. Car security sales were up to £3.1m (2002: £2.9m) and motorcycle security up to £1.6m (2002: £1.4m). Cash inflow from operations was £1.8m (2002: £1.2m) and net debt has been reduced to £4.7m (2002: £7.9m). Services We have reorganised our Services Division into two groups, Insurance Services and Technical Services and have invested in senior management to drive these businesses forward. Insurance Services includes any insurance related activity and Technical Services includes the mobile installation service for fleets and multiple retailers and also embraces our Actra telematics business. Insurance Services The core element of Insurance Services is reinstatement of stolen in-car entertainment systems. This business represents around £6m (2002: £5.9m) of our total turnover for the first 6 months of 2003. We have dominated this particular sector for some time and during last year we branched out into claims handling for lost, stolen or damaged cameras and computers. We have made a good start, having been given sole supplier status for one insurer at a relatively early stage. Consequently we are looking for further growth from this market with some optimism. In May we launched a low cost pilot scheme to inspect vehicles prior to the insurance risk being accepted by the insurer. Once this pilot has been completed, in the second half of the year, we should be able to assess the earning potential of this additional service to insurance companies. Technical Services Technical Services sales at £1.5m were in line with the first six months of last year. However, in the second half of this year we are expecting these revenues to be boosted by additional installation work for major retail multiples and the growth in installation of hands free mobile 'phone car kits. Actra is on course to breakeven for the current year after cumulative losses of £1m up to the end of 2002. Distribution Overall our distribution sales were up to £10.1m (£9.9m) at the half year. Our security businesses have performed well. These sectors have benefited from increased OE sales to both existing and new customers. Our vehicle security business has seen improvements in OE sales to existing customers, has benefited from a new commercial vehicle contract and taken on the distribution of a new security brand and a reversing aid. Our motorcycle alarm sales have continued to grow since we acquired Datatool in mid 2001 with the addition of two more motorcycle manufacturers to its portfolio of OE customers. At the half year our sales of the Datatool alarm system had grown by 19% in unit volume. Sales of in-car entertainment systems had a slow start to the year but the second quarter's results were far more encouraging and we are confident that this improvement will continue into the second half of the year. Current trading Current trading is in line with expectations and we have a number of initiatives in the pipeline to suggest an exciting future for the group particularly as we expand our support services to the insurance industry. Peter Ward Chairman Consolidated profit and loss account Unaudited six Unaudited 6 months ended 30 June 2003 months Year ended ended 30 31 December June 2002 2002 Before After amortisation Amortisation amortisation of of of intangibles intangibles intangibles £'000 £'000 £'000 £'000 £'000 Turnover 17,615 - 17,615 17,424 34,138 Cost of sales (10,559) - (10,559) (10,401) (20,445) -------- -------- --------- -------- -------- Gross Profit 7,056 - 7,056 7,023 13,693 Other operating expenses (5,984) (132) (6,116) (6,437) (12,708) -------- -------- --------- -------- -------- Operating profit 1,072 (132) 940 586 985 Interest payable and similar charges (321) - (321) (365) (765) -------- -------- --------- -------- -------- Profit on ordinary activities before taxation 751 (132) 619 221 220 Taxation - - - - 11 -------- -------- --------- -------- -------- Profit on ordinary activities after taxation 751 (132) 619 221 231 Minority interests 7 - 7 (5) 8 Profit attributable to members of the parent -------- -------- --------- -------- -------- company 758 (132) 626 216 239 ======== ======== ========= ======== ======== Earnings per 1.02p (0.18)p 0.84p 0.29p 0.32p share - basic Earnings per 1.02p (0.18)p 0.84p 0.29p 0.32p share - diluted Consolidated balance sheet Unadited Unaudited 31 December 30 June 2003 30 June 2002 2002 £'000 £'000 £'000 Fixed assets Intangible assets 1,490 1,908 1,616 Tangible assets 2,618 2,726 2,693 -------- ---------- --------- 4,108 4,634 4,309 Current assets Stocks 3,525 5,160 4,105 Debtors 5,268 6,044 4,568 Cash at bank and in hand 701 644 842 -------- ---------- --------- 9,494 11,848 9,515 Creditors: amounts falling due within one year (7,075) (9,367) (7,441) -------- ---------- --------- Net current assets 2,419 2,481 2,074 Total assets less current liabilities 6,527 7,115 6,383 Creditors: amounts falling due after more than one year (2,356) (3,337) (2,831) Minority interests 93 73 86 -------- ---------- --------- Net assets 4,264 3,851 3,638 ======== ========== ========= Capital and reserves Called-up share capital 7,775 7,689 7,775 Share premium account 11,788 11,638 11,788 Share capital to be issued 43 515 43 Profit and loss account (15,342) (15,991) (15,968) -------- ---------- --------- 4,264 3,851 3,638 Shareholders' funds Equity 3,485 3,072 2,859 Non-equity 779 779 779 -------- ---------- --------- 4,264 3,851 3,638 ======== ========== ========= Consolidated cash flow statement Unaudited Unaudited Year Ended Six months Six months 31 December Ended Ended 2002 30 June 2003 30 June 2002 £'000 £'000 £'000 Net cash inflow from operating activities 1,814 1,168 3,700 -------- -------- -------- Returns on investment and servicing of finance Interest payable and similar charges (281) (323) (676) Taxation UK Corpoaration tax paid - - (60) Capital expenditure and financial investment Purchase of intangible fixed assets (6) - (115) Purchase of tangible fixed assets (163) (53) (239) Sale of tangible fixed assets 36 150 153 -------- -------- -------- (133) 97 (201) -------- -------- -------- Acquisitions and disposals Purchase of subsidiary undertakings - (250) (250) Cash inflow/(outflow) before financing 1,400 692 2,513 Financing Net movement in long term borrowings (500) (500) (1,000) Repayment of principal under finance leases (63) (39) (40) -------- -------- -------- (563) (539) (1,040) -------- -------- -------- Increase in cash in period 837 153 1,473 ======== ======== ======== 1. Basis of preparation The interim statement has been prepared on the basis of the accounting policies set out in the group's statutory accounts. The financial information on the group does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985 and is not audited. A copy of the group's 2002 statutory accounts has been filed with the Registrar of Companies: the Auditors' opinion on those accounts was unqualified. The interim statement for the six months ended 30 June 2003 was approved by the directors on 22 July 2003. 2. Reconciliation of movements in shareholders' funds Unaudited Unaudited six months six months Year ended ended ended 31 December 30 June 2003 30 June 2002 2002 £'000 £'000 £'000 Net profit for the period 626 216 239 Shares to be issued - - (236) --------- -------- --------- Net movement in shareholders' funds 626 216 3 Opening shareholders' funds 3,638 3,635 3,635 --------- -------- --------- Closing shareholders' funds 4,264 3,851 3,638 ========= ======== ========= 3. Reconciliation of operating profit to net cash flow from operating activities Unaudited Unaudited six months six months Year ended ended ended 31 December 30 June 2003 30 June 2002 2002 £'000 £'000 £'000 Operating profit 940 586 985 Depreciation of tangible fixed assets 203 242 458 Loss/(Profit) on disposal of tangible fixed assets 1 (48) (48) Amortisation of intangible fixed assets 132 84 255 Decrease in working capital balances 538 304 2,050 -------- -------- --------- Net cash inflow from operating activities 1,814 1,168 3,700 ======== ======== ========= 4. Reconciliation of net cash flow to movement in net debt Unaudited Unaudited six months six months Year ended ended ended 31 December 30 June 2003 30 June 2002 2002 £'000 £'000 £'000 Increase in cash in the period 837 153 1,473 Cash outflow from decrease in net debt 563 539 1,040 --------- -------- -------- Changes in net debt resulting from cash flows 1,400 692 2,513 Other - - (85) --------- -------- -------- Movement in net debt in the period 1,400 692 2,428 Net debt at start of period (6,088) (8,516) (8,516) --------- -------- -------- Net debt at end of period (4,688) (7,824) (6,088) ========= ======== ======== This information is provided by RNS The company news service from the London Stock Exchange

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