Interim Results
Volex Group PLC
09 November 2005
Embargoed until 7.00am Wednesday 9 November 2005
VOLEX GROUP plc
Interim results for the half-year to 2 October 2005
Volex Group plc, the global electrical and electronic cable assembly group,
today announces its unaudited interim results for the half-year to 2 October
2005.
Financial Highlights:
• Sales ahead of plan at £123.9m (2004 - £122.9m)
• Operating profit before major restructuring programme £1.4m (2004 - £1.2m)(1)
• Equity raising £19.0m gross completed in June
• Reduction in finance charges to £1.7m (2004 - £2.5m)
• Loss per share excluding major restructuring programme reduced from 7.8p to 3.3p
(1) Operating loss after charging costs of major restructuring programme (£1.7m)
was £0.3m (2004: profit £2.6m)
The Chairman of Volex, Martin May, commented:
'In June 2005 the Group successfully completed a £19m equity fundraising. This
additional equity together with improved new three-year bank facilities,
provides the Group with the funds needed to restore the underlying performance
of its core businesses. We will have a much more tightly focused and leaner
business better able to meet the needs of our customers. Towards the end of
September the Board approved a series of initiatives designed to accelerate
these changes. I expect this to translate into higher revenues, improved margins
and better cash generation over the second half year and beyond.'
The Chief Executive of Volex, John Corcoran, commented:
'Volex will continue to drive its core business units as quickly as practical to
acceptable levels of profitability. Although the cable assembly market proved to
be particularly challenging during the first half as a result of raw material
cost increases, I am confident that the steps we have taken will enable margins
to be restored. We continue to reduce our manufacturing footprint, moving to
lower cost locations to better meet the challenges of this competitive
environment. The market position of the Group continues to be strong and set to
improve as we continue to develop our product offering.'
For further information please contact:
Volex Group plc Today: 020 7067 0700 Thereafter: 01925 830101
John Corcoran, Group Chief Executive
Derek Walter, Group Finance Director
Weber Shandwick Square Mile 020 7067 0700
Chris Lynch / Nick Dibden
CHAIRMAN'S STATEMENT
Revenues for the first six months of the year were £124m, broadly in line with
the same period last year. The Group generated an operating profit of £1.4m
before the costs of the major restructuring programme, compared with £1.2m in
the first half of last year. The operating loss after charging costs of the
major restructuring programme was £0.3m (2004: profit £2.6m). Commodity prices
continue to challenge the business, most notably copper which has increased by
some 20% since the start of this financial year.
In June 2005 the Group successfully completed a £19m equity fundraising. This
additional equity together with improved new three-year bank facilities,
provides the Group with the funds needed to restore the underlying performance
of its core businesses. We will have a much more tightly focused and leaner
business better able to meet the needs of our customers. Towards the end of
September the Board approved a series of initiatives designed to accelerate
these changes. I expect this to translate into higher revenues, improved margins
and better cash generation over the second half year and beyond.
The first half was a period of significant change for the Group and has affected
every echelon of the Group, including a restructuring of the Group Board with,
most notably, the appointment of Heejae Chae as Chief Operating Officer. We have
taken steps to strengthen the global management team, in particular recruiting
new personnel to strengthen the sales forces around the world. At the operating
level a number of facilities have been closed - Conover in the US and the
Malaysian and the Philippines operations in Asia - whilst the Kanata factory in
Canada was downsized. By the year end, we will have also closed our
Aguascalientes factory and ceased manufacturing at Fremont. In summary, our
production capacities will have been reorganised and consolidated with lower
costs in more suitable locations to meet the needs of our customers and markets.
Operations
While there is some concern on the level of consumer and enterprise spending,
sales are, overall, in line with the budgeted targets established at the end of
the last financial year. The revenues were affected by lower than expected
telecom sales, especially in Asia but harness sales increased slightly as we
implemented a significant restructuring programme to lower cost environments.
Despite the disruption caused by the closure of sites in Malaysia and the
Philippines as capacity was transferred to China and Indonesia, sales in Asia
were at the same level as the previous year in local currency terms. Asia
improved its profitability as a result of cost reduction measures.
External sales sourced in North America increased by 4%; however, the
translation to operating profits remains impacted by the cost profile of the
region. Significant changes were effected in the first half with the closure of
Conover, the downsizing of Kanata and Fremont and the transfer of product at an
accelerated rate from all sites to Asia. Excluding the restructuring costs and
allocation of Head Office costs, North America has shown ongoing half yearly
improvement in reducing its operating losses with the first half of this year
very close to break-even.
Sales sourced in Europe, other than the UK, were at 88% of sales achieved last
year, impacting profits. The results are in line with budget expectations as
there were a number of one-off projects delivered through the first half of last
year that were not likely to be repeated this year. The manufacturing facility
in Tczew, Poland, was closed and consolidated into our other facility in Poland,
at Bydgoszcz.
In the UK, while the demand environment for our specialist harness businesses
remained relatively stable, production difficulties experienced in the second
half of last year carried over and had a detrimental effect on the first half of
this year. The majority of these issues have now been resolved and profit
improvement programmes have been implemented.
Financial Review
The Group is reporting its results for the first time under International
Financial Reporting Standards and has therefore restated the comparative figures
as appropriate. The changes to the comparatives, which are explained in Notes 1
and 2, are not significant in the terms of the income statement and the major
change to the balance sheet is the inclusion of the £4m deficit on its two UK
defined benefit pension schemes.
The Singapore dollar and Euro appreciated by 2% first half on first half whilst
the US dollar showed a 1% depreciation. The net impact on sales was a £1m
increase attributable to the foreign exchange translation gains; operating
profits also benefited by £0.1m.
The £1.8m major restructuring programme charge in the first half reflects the
downsizing of the Kanata site and the headcount reduction programme that has
already been implemented up to the half year. These steps are part of the larger
global restructuring programme described in the Circular to shareholders dated 6
June 2005. The insurance claim in respect of the September 2004 fire at Tijuana
is close to resolution with a favourable but modest impact on the carrying value
of the claim.
Interest charges of £1.4m, excluding the refinancing costs, are £0.3m lower,
reflecting the average lower net debt following the equity issue in June. Bank
refinancing charges including warrants and arrangement fees incurred to secure
the 3-year facilities, totalled £2.8m and these are being amortised over 33
months to the end of the 2008 financial year.
The £1.2m tax charge in the first half of the year included an additional £0.2m
charge in respect of withholding tax - the overseas subsidiary concerned is
being financially restructured and the accumulated tax will be paid in the
second half of the year.
Net debt at the end of the half-year was £17.5m, (after netting off £2.5m of
issue costs, which are to be amortised over the next 3 years) compared with
£30.5m at 3 April 2005 and £33.1m at 3 October 2004. Proceeds from the raising
of equity less the equity-related costs netted £17.6m. Cash generated from
operations in the period was £2.1m; interest paid was £1.4m; and tax paid was
£2.2m. Capital expenditure, net of disposal proceeds, totalled £1.1m and adverse
foreign exchange differences, arising from the strengthening of the currencies
against sterling, increased debt by £2.1m. We also paid bank refinancing costs
of £2.4 million.
The Board has not declared an interim dividend.
As indicated in the 6 June 2005 Circular, we have applied to the High Court of
Justice for its approval to cancel the share premium account and apply the
balance to eliminate the deficit on distributable reserves. This approval was
obtained on 12 October 2005.
Current trading and prospects
Trading in our business continues, overall, to be in line with expectations,
albeit that, as indicated above, we continue to experience rising commodity
prices.
The fundraising earlier in the year and the securing of long term banking
facilities have restored financial stability to the Group. We have already begun
to effect the reorganisation plan laid out in the June Circular and this will
continue through the second half of the year, taking every opportunity to
accelerate it. We therefore expect that there will be a further substantial
major restructuring programme charge in the full year accounts to reflect this.
We have already announced, in November, the closing of Aguascalientes and the
cessation of manufacturing at Fremont; other announcements will be made at the
appropriate time.
Our strategy, to become the leading independent producer of electronic and fibre
optic cable assemblies and electrical power cords, remains unchanged and we
will:
•complete the re-organisation of our manufacturing footprint so that it
becomes more effective and responsive to our customer needs, operating from
lower cost locations better suited to the needs of our chosen markets;
•develop sustainable new markets and products that enrich the margin
opportunity for the Group; and
•continue to strengthen and invest in the core competencies of the Group
by enhancing key skills, such as engineering, development and sourcing on a
global basis.
With the recent changes in the Board structure and the Executive team, the Group
is now more focused on delivering the competitive profile required to
out-perform the competition and the market. I remain confident that with the
progress made in the first half together with our plans for the second half, the
recovery of the Group is progressing in line with plan.
The Company intends to apply to the London Stock Exchange to move its listing to
AIM and believes this is in the best interests of its shareholders as it
provides us with more flexibility at lower cost as we implement our
restructuring plans. This process will require an Extraordinary General Meeting
and is now under way.
Finally, I would like to thank our workforce worldwide for their support and
commitment over the last six months, without which the Group would not have made
such significant progress. The next six months will be particularly challenging
for all of us but I remain confident that with the continuing support of all of
our employees the future of the Group remains positive.
Martin K. May
Chairman
Unaudited consolidated income statement
For the 26 weeks to 2 October 2005 (3 October 2004)
26 weeks to 26 weeks to 52 weeks to
2 October 3 October 3 April
Notes 2005 2004 2005
£'000 £'000 £'000
Continuing operations
Revenue 3 123,897 122,873 244,551
======= ======= =======
Operating (loss)/profit 3 (328) 2,564 (4,978)
____________________________________________
Operating profit before
major restructuring
programme 1,436 1,229 1,768
Major restructuring
programme 4 (1,764) 1,335 (6,746)
____________________________________________
Operating (loss)/profit (328) 2,564 (4,978)
Finance costs
____________________________________________
- interest (net) (1,417) (1,681) (3,326)
- refinancing costs and
amortisation of debt
issue costs (252) (769) (932)
____________________________________________
(1,669) (2,450) (4,258)
------- ------- -------
(Loss)/profit before taxation (1,997) 114 (9,236)
Tax 5 (1,179) (1,089) (4,424)
------- ------- -------
Loss for the period (3,176) (975) (13,660)
------- ------- -------
Loss per share* 6
from continuing operations
Basic (7.4)p (3.3)p (46.3)p
* The loss per share before the costs of the major restructuring programme for
each period is shown in note 6.
Unaudited statement of recognised income and expense
For the 26 weeks to 2 October 2005 (3 October 2004)
26 weeks to 26 weeks to 52 weeks to
2 October 3 October 3 April
2005 2004 2005
£'000 £'000 £'000
Exchange differences on
translation of foreign
operations 107 732 266
Actuarial losses on defined
benefit pension schemes - - (487)
------- ------- -------
Net income/(expense) recognised
directly in equity 107 732 (221)
Loss for the period (3,176) (975) (13,660)
------- ------- -------
Total recognised net expense
for the period (3,069) (243) (13,881)
------- ------- -------
Unaudited consolidated balance sheet
As at 2 October 2005 (3 October 2004)
26 weeks to 26 weeks to 52 weeks to
2 October 3 October 3 April
Notes 2005 2004 2005
£'000 £'000 £'000
Non-current assets
Intangible assets 2,066 3,961 2,106
Property, plant & equipment 13,221 19,645 13,392
Deferred tax asset - 555 -
------- ------- -------
15,287 24,161 15,498
------- ------- -------
Current assets
Inventories 30,679 29,909 28,030
Trade & other receivables 55,246 54,586 50,381
Cash & cash equivalents 9,442 16,956 14,962
------- ------- -------
95,367 101,451 93,373
------- ------- -------
Total assets 110,654 125,612 108,871
======= ======= =======
Current liabilities
Borrowings 7 97 49,919 45,453
Other 46,235 43,258 40,885
------- ------- -------
46,332 93,177 86,338
------- ------- -------
Net current assets 49,035 8,274 7,035
------- ------- -------
Non-current liabilities
Borrowings 7 26,845 149 43
Retirement benefit
obligation 3,836 3,537 4,095
Provisions & other
non-current liabilities 3,689 - 3,270
------- ------- -------
34,370 3,686 7,408
------- ------- -------
Total liabilities 80,702 96,863 93,746
======= ======= =======
Net assets 29,952 28,749 15,125
======= ======= =======
Equity
Share capital 8 13,928 7,465 7,465
Share premium 8 32,110 20,986 20,986
Translation reserve 8 373 732 266
Profit & loss account 8 (16,459) (434) (13,592)
------- ------- -------
Total equity 29,952 28,749 15,125
======= ======= =======
Unaudited consolidated cash flow statement
For the 26 weeks to 2 October 2005 (3 October 2004)
26 weeks to 26 weeks to 52 weeks to
2 October 3 October 3 April
Notes 2005 2004 2005
£'000 £'000 £'000
Net cash outflow from
operating activities 9 (1,498) (3,022) (4,376)
Cash flows from investing
activities
Proceeds on disposal of
property, plant & equipment 25 3,525 7,826
Purchases of property, plant
& equipment (1,110) (665) (1,984)
Purchases of intangible assets (21) (3) (77)
------- ------- -------
Net cash (used in)/from
investing activities (1,106) 2,857 5,765
------- ------- -------
Cash flows from financing
activities
Net proceeds from issue of
share capital 17,587 - -
Net (repayments)/advances
of debt:
- due within one year 10 (43,264) (619) 2,155
- due after more than one
year 10 26,136 - (619)
Refinancing costs paid 10 (2,390) (580) (743)
(Decrease)/increase in
bank overdrafts 10 (1,276) 6,275 1,050
Repayments of obligations
under finance leases 10 (47) (55) (136)
------- ------- -------
Net cash (used in)/from
financing activities (3,254) 5,021 1,707
------- ------- -------
Net (decrease)/increase in
cash & cash equivalents (5,858) 4,856 3,096
Cash & cash equivalents at
beginning of period 14,962 11,919 11,919
Effect of foreign exchange
rate changes 338 181 (53)
------- ------- -------
Cash & cash equivalents at
end of period 9,442 16,956 14,962
======= ======= =======
NOTES TO GROUP RESULTS
1. Basis of preparation
The Group's financial statements for the financial year ending 2 April 2006 will
be prepared in accordance with International Financial Standards as adopted for
use in the European Union (EU). Accordingly this Interim financial information
has been prepared using accounting policies consistent with IFRS. The financial
information has been prepared on the basis of IFRS that the Directors expect to
be applied as at 2 April 2006. IFRS remains subject to amendment and
interpretation by the International Accounting Standards Board (IASB) and there
is an ongoing process of review and endorsement by the European Commission.
Consequently, the revised accounting policies, which are detailed in the Volex
Group IFRS transition document, available on its website, www.volex.com, are
provisional and are subject to change. These accounting policies have been
consistently applied to all periods presented in these Interim financial
statements with the exception of IAS 32 and IAS 39, Financial Instruments. In
accordance with IFRS 1, First Time Adoption of International Financial Reporting
Standards, the Directors have elected not to restate comparative information for
the impact of IAS 32 and IAS 39, but have only adopted these standards to apply
from 4 April 2005.
The comparative information for the 26 weeks to 3 October 2004 and 52 weeks to 3
April 2005 has been restated to take account of the adoption of IFRS (see note 2).
The abridged profit and loss accounts and cash flow statements for the 26 weeks
to 3 October 2004 and 2 October 2005 and balance sheets as at 3 October 2004 and
2 October 2005 are unaudited and have not been reviewed by the auditors. The
profit and loss account and cash flow statement for the financial year ended 3
April 2005 and balance sheet as at 3 April 2005 are extracted and abridged from
the Group's full accounts for that year. These were originally reported under UK
GAAP and, as noted above, have been restated to reflect the transition to IFRS.
The UK GAAP statutory accounts for the financial year ended 3 April 2005 have
been filed with the Registrar of Companies for England and Wales and have been
reported on by the Group's auditors. The Report of the Auditors was not
qualified and did not contain a statement under Section 237 (2) and (3) of the
Companies Act 1985 (as amended).
2. Reconciliation of the transition from UK GAAP to IFRS
The effect of transition from UK GAAP to IFRS on the Group's loss for the period
and net assets is set out below. Full details of the restatement and
reconciliations with the previously published UK GAAP financial information for
the 26 weeks to 3 October 2004 and for the 52 weeks to 3 April 2005, together
with the accounting policies adopted following transition to IFRS can be
obtained from the Group's IFRS transition document which is available on its
website, www.volex.com.
26 weeks to 52 weeks to
3 October 3 April
2004 2005
£'000 £'000
Loss for the period
As previously reported under UK GAAP (1,128) (13,928)
Reversal of goodwill amortisation 151 302
Goodwill impairment charge - (132)
Cost of defined benefit pension schemes 3 113
Share options cost (1) (15)
---------- ----------
Total adjustments 153 268
---------- ----------
As restated under IFRS (975) (13,660)
========== ==========
As at As at
3 October 3 April
2004 2005
£'000 £'000
Net assets
As previously reported under UK GAAP 32,135 18,869
Reversal of goodwill amortisation 151 302
Goodwill impairment charge - (132)
Net deficit of defined benefit pension schemes (3,537) (3,914)
---------- ----------
Total adjustments (3,386) (3,744)
---------- ----------
As restated under IFRS 28,749 15,125
========== ==========
3. Segmental analysis
For management purposes, the Group is organised into regions based on location
of assets and these divisions form the basis on which the Group reports its
primary segment information.
26 weeks to 26 weeks to 52 weeks to
2 October 3 October 3 April
2005 2004 2005
£'000 £'000 £'000
Revenue by source
Asia
- External 46,435 45,534 90,022
- inter segment 5,419 4,405 9,626
---------- ----------- ----------
51,854 49,939 99,648
North America
- External 39,040 37,405 74,746
- Inter segment 1,049 1,356 2,419
---------- ---------- ----------
40,089 38,761 77,165
United Kingdom
- External 15,597 13,968 28,941
- Inter segment 345 446 869
---------- ---------- ----------
15,942 14,414 29,810
Other Europe
- External 22,825 25,966 50,842
- Inter segment 279 263 658
---------- ---------- ----------
23,104 26,229 51,500
Less inter segment (7,092) (6,470) (13,572)
---------- ---------- ----------
Consolidated revenue 123,897 122,873 244,551
---------- ---------- ----------
Operating profit/(loss)
Asia 3,231 2,638 (2,376)
North America (2,536) (2,001) (4,936)
United Kingdom (1,295) (60) (440)
Other Europe 272 1,987 2,774
---------- ---------- ----------
(328) 2,564 (4,978)
Finance costs (net) (1,669) (2,450) (4,258)
---------- ---------- ----------
(Loss)/profit before tax (1,997) 114 (9,236)
Tax (1,179) (1,089) (4,424)
---------- ---------- ----------
Loss for the period (3,176) (975) (13,660)
---------- ---------- ----------
26 weeks to 26 weeks to 52 weeks to
2 October 3 October 3 April
2005 2004 2005
£'000 £'000 £'000
External revenue by destination
Asia 36,186 36,127 71,243
North America 38,010 35,817 71,691
United Kingdom 16,983 18,573 38,542
Other Europe 32,718 32,356 63,075
----------- ---------- -----------
123,897 122,873 244,551
=========== ========== ===========
Revenue by product category
Data/Telecommunications 51,608 53,079 104,409
Power Cords 56,692 55,674 110,882
Harnesses 15,597 14,120 29,260
----------- ----------- -----------
123,897 122,873 244,551
=========== =========== ===========
Revenue by market sector
Data/Telecommunications 44,232 47,696 94,296
Consumer Products 49,935 48,207 95,614
Industrial and Medical 13,737 12,948 25,588
Vehicle and Aerospace 15,993 14,022 29,053
----------- ----------- -----------
123,897 122,873 244,551
=========== =========== ===========
4. Major restructuring programme
26 weeks to 26 weeks to 52 weeks to
2 October 3 October 3 April
2005 2004 2005
£'000 £'000 £'000
Global management restructuring 574 - -
Lease provisions 1,190 - 3,298
Closure of manufacturing facilities - - 1,399
Impairment of goodwill - - 1,868
Impairment of automated manufacturing
line/tangible fixed assets - - 1,223
Under-recovery of insurance claim - - 876
Profit on sale of properties - (1,335) (1,918)
----------- ----------- -----------
1,764 (1,335) 6,746
=========== =========== ===========
During the period, as part of the Group's major restructuring programme, the
restructuring of the Group's Global management team was started and the Group
has moved from its existing premises in Canada into a smaller facility. An
onerous lease provision has been established against the vacated property.
The taxation effect of these items was £nil.
5. Tax charge
The Group tax charge for the period is based on the forecast tax charge for the
year as a whole and has been influenced by the differing tax rates in the UK and
in the various overseas countries in which the Group operates. A non-recurring
charge of £0.2m has been recognised in the period with respect to withholding
taxes for one of the Company's overseas subsidiaries.
6. Loss per share
The calculations of loss per share are based on the following results and
numbers of shares:
26 weeks to 26 weeks to 52 weeks to
2 October 3 October 3 April
2005 Per Share 2004 Per Share 2005 Per Share
£'000 p £'000 p £'000 p
Loss for the financial
year (3,176) (7.4) (975) (3.3) (13,660) (46.3)
Other finance costs of
preference shares (3) - (3) - (6) -
------- ------- ------- ------- ------- -------
Basic loss (3,179) (7.4) (978) (3.3) (13,666) (46.3)
Restructuring costs 1,764 4.1 (1,335) (4.5) 6,746 22.9
------- ------- ------- ------- ------- -------
Adjusted loss (1,415) (3.3) (2,313) (7.8) (6,920) (23.4)
------- ------- ------- ------- ------- -------
No shares No shares No shares
Weighted average number of
shares: 43,108,550 29,540,692 29,540,692
Adjusted loss per share has been calculated on the basis of continuing
activities before the major restructuring programme, net of tax. As the Group
recorded a loss per share in each period, the share options and warrants are
anti-dilutive and therefore there is no difference between the basic and diluted
loss per share.
7. Bank facilities
On 30 June 2005, new three-year bank facilities with the Group's principal
Bankers became effective. As a consequence of signing these new bank facilities
the conditions relating to the existing warrants, 494,945 of which are in issue,
have been amended to include a re-pricing to 73.5p and an extension of the
expiry date to 30 June 2008 (see note 10).
8. Statement of changes in shareholders' equity
Share Share Translation Profit &
capital premium reserve loss
account Total
£'000 £'000 £'000 £'000 £'000
Balance at 4 April 2004 7,465 20,986 - 540 28,991
Share options - - - 1 1
Exchange differences on
translation of foreign
operations - - 732 - 732
Loss for the period - - - (975) (975)
------- ------- ------- ------- -------
Balance at 3 October 2004 7,465 20,986 732 (434) 28,749
Share options - - - 14 14
Exchange differences on
translation of foreign
operations - - (466) - (466)
Actuarial losses on defined
benefit pension schemes - - - (487) (487)
Loss for the period - - - (12,685) (12,685)
------- ------- ------- ------- -------
Balance at 3 April 2005 7,465 20,986 266 (13,592) 15,125
Issue of share capital
(net of costs) 6,463 11,124 - - 17,587
Share options - - - 82 82
Warrants - - - 227 227
Exchange differences on
translation of foreign
operations - - 107 - 107
Loss for the period - - - (3,176) (3,176)
------- ------- ------- ------- -------
Balance at 2 October 2005 13,928 32,110 373 (16,459) 29,952
======= ======= ======= ======= =======
On 29 June 2005, an Extraordinary General Meeting approved an increase in the
authorised share capital of the Company to £18,830,000. On 30 June 2005, the
Company issued 25,850,340 ordinary shares for net proceeds of £17.6m.
On 12 October 2005 the cancellation of the Company's share premium account was
confirmed by the High Court of Justice, Chancery Division. The balance on that
account will be used to eliminate the deficit on the Company's profit and loss
account.
9. Reconciliation of operating (loss)/profit to net cash outflow from operating activities.
26 weeks to 26 weeks to 52 weeks to
2 October 3 October 3 April
Notes 2005 2004 2005
£'000 £'000 £'000
Operating (loss)/profit (328) 2,564 (4,978)
Adjustments for:
Depreciation & impairment on
property, plant & equipment 1,932 2,478 5,811
Amortisation & impairment of
intangible assets 61 71 2,000
Gain on disposal of property,
plant and equipment (9) (1,335) (1,918)
Share options expense 82 1 15
Increase/(decrease) in provisions 488 (162) 3,417
----------- ----------- -----------
Operating cash flow before movement
in working capital 2,226 3,617 4,347
(Increase)/decrease in inventories (1,493) (1,566) 1,264
Increase in receivables (2,899) (2,341) (297)
Increase/(decrease) in payables 4,296 (387) (3,731)
----------- ----------- -----------
Cash inflow/(outflow) generated by
operations 2,130 (677) 1,583
Interest paid (net) (1,361) (1,927) (3,800)
Taxation paid (net) (2,267) (418) (2,159)
----------- ------------ -----------
Net cash outflow from operating
activities (1,498) (3,022) (4,376)
----------- ------------ -----------
10. Analysis of net debt
4 April Cash flow Exchange Other 2 October
2005 movement non-cash 2005
changes
£'000 £'000 £'000 £'000 £'000
Cash at bank and in hand 14,962 (5,858) 338 - 9,442
Overdraft (4,026) 1,276 (68) 2,818 -
Debt due after one year - (26,136) (364) (2,818) (29,318)
Debt due within one year (41,289) 43,264 (1,975) - -
Finance leases (181) 47 - - (134)
Issue costs - 2,390 - 120 2,510
---------- --------- --------- --------- ----------
Net debt (30,534) 14,983 (2,069) 120 (17,500)
---------- --------- --------- --------- ----------
Non-cash changes within Issue costs include £227,000 associated with the
amendment of warrants (see note 7) and accrued costs of £145,000, less
amortisation of debt issue costs of £252,000.
Note:
This Interim Report will be incorporated in a Circular being sent to all
shareholders in respect of the Board's recommendation to move the Company's
ordinary share listing to AIM. Copies can also be obtained from the Company
Secretary, Volex Group plc, Dornoch House, Kelvin Close, Birchwood Science Park,
Warrington WA3 7JX. Tel: 01925 830101.
The presentation being made to stockbroking analysts on Wednesday 9 November
2005 will be on the Company's web site www.volex.com from 9.30 a.m. that day.
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