Interim Results
Solid State Supplies PLC
21 December 2004
Solid State Supplies plc
Unaudited Interim Results for the six months ended 30 September 2004
Chairman's Statement
Results
The unaudited pre tax profit for the Group for the six months ended 30 September
2004 was £130,000 (2003: £57,000) on a turnover of £4,742,000 (2003:
£4,154,000). The basic earnings per share amounted to 1.3p (2003: 0.6p). The
pre-tax profit is stated after goodwill amortisation of £17,000 (2003: £17,000)
and abortive acquisition costs of £16,000 (2003: nil).
Trading Review
Solid State Supplies
Although trading conditions remain demanding we are pleased to report that Solid
State Supplies has returned a further improvement in both sales and profits
performance during this period.
The company has recently been awarded a major contract from a key aerospace/
defence customer and we continue to focus on higher unit value products better
suited to our market, coupled with new 'own brand' products developed at both
Solid State Supplies and Steatite.
Steatite
The Company has had a disappointing six months, with a slight fall in turnover
over the same period for last year. However, significant orders have been
gained with European space programmes and these should provide a welcome boost
to turnover for the second half of this year and during the next financial year.
The market has not seen any real sign of improvement as industry had anticipated
and the control of costs and overheads will remain a focus for the foreseeable
future, along with targeted market sales to continue the trend of margin
enhancement.
Future Acquisitions
Despite the fact that terms were agreed in respect of the acquisition mentioned
in my report in July 2004, and despite a considerable amount of effort being
expended in finalising the agreement, we have been unable to conclude a
negotiated agreement for the proposed acquisition.
The Group continues to look for suitable acquisitions within the electronics
industry.
Dividends
The Directors have decided to declare an interim dividend of 1.5p per share,
compared with 1.0p per share last year. The interim dividend will be paid on 28
January 2005 to shareholders on the register at the close of business on 7
January 2005.
Conclusion
I would like to thank my fellow directors and all the staff of the group for
their support over the past six months.
Peter Haining
Chairman
21 December 2004
Interim consolidated profit and loss account
for the six months ended 30 September 2004
Unaudited Unaudited Audited
Six months to Six months to Year to
30 Sept 2004 30 Sept 2003 31 Mar 2004
£'000 £'000 £'000
Turnover 4,742 4,154 8,638
Cost of sales (3,319) (2,803) (5,827)
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Gross profit 1,423 1,351 2,811
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Selling expenses and distribution costs (571) (609) (1,181)
Administrative expenses (687) (650) (1,296)
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(1258) (1,259) (2,477)
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Operating profit 165 92 334
Other income - - 1
Interest payable (35) (35) (67)
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Profit on ordinary activities before taxation 130 57 268
Tax on profit on ordinary activities (48) (17) (71)
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Profit on ordinary activities after taxation 82 40 197
Dividends (93) (62) (187)
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RETAINED (LOSS)/PROFIT FOR THE PERIOD
(11) (22) 10
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Earnings per share
Basic 1.3p 0.6p 3.2p
Diluted 1.3p 0.6p 3.2p
All amounts relate to continuing operations.
Consolidated Balance Sheet
as at 30 September 2004
Unaudited Unaudited Audited
As at As at As at
30 Sept 2004 30 Sept 2003 31 Mar 2004
£'000 £'000 £'000
FIXED ASSETS
Intangible assets 615 646 631
Tangible assets 492 581 546
-------------- -------------- --------------
1,107 1,227 1,177
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CURRENT ASSETS
Stock 1,383 1,362 1,257
Debtors 1,700 2,009 2,027
Cash at bank and in hand 199 2 159
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3,282 3,373 3,443
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CREDITORS
Amounts falling due within one year (1,908) (2,009) (2,059)
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NET CURRENT ASSETS 1,374 1,364 1,384
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TOTAL ASSETS LESS CURRENT LIABILITIES 2,481 2,591 2,561
-------------- -------------- --------------
CREDITORS
Amounts falling due after more than one year (403) (534) (472)
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2,078 2,057 2,089
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CAPTIAL AND RESERVES
Share capital 311 311 311
Capital redemption reserve 1 1 1
Share premium account 757 757 757
Profit and loss account 1,009 988 1,020
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SHAREHOLDERS' FUNDS - EQUITY 2,078 2,057 2,089
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CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 30 September 2004
Unaudited Unaudited Audited
Six months to Six months to Year to
30 Sept 2004 30 Sept 2003 31 Mar 2004
£'000 £'000 £'000
Net cash inflow/(outflow) from operating
activities 580 163 677
Return on investments and servicing of finance:
Interest received - - 1
Interest paid (35) (35) (66)
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Net cash (outflow) (35) (35) (65)
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Taxation:
Corporation tax paid - - (5)
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Net cash (outflow) - - (5)
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Capital expenditure and financial investment:
Payments to acquire tangible fixed asset (49) (114) (189)
Receipts from sales of tangible fixed assets 12 12 19
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Net cash (outflow) (37) (102) (170)
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Acquisitions and disposals
Purchase of business operation - - (3)
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Net cash (outflow) - - (3)
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Equity dividend paid (124) (124) (187)
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Net cash inflow/(outflow) before financing 384 (98) 247
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Financing:
Medium term loan received
Repayments of medium term loan (60) (66) (129)
Hire purchase finance repaid: capital element (2) (10) (12)
Invoice discounting finance received (net
movement) (192) 183 33
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Net cash inflow/(outflow) (254) 107 (108)
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Increase/(decrease) in cash 130 9 139
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NOTES TO THE INTERIM REPORT
1. Basis of preparation of interim financial information
The interim financial statements have been prepared on the basis of accounting
policies consistent with those set to be adopted in the financial statements for
the year ending 31 March 2005. The unaudited financial statements do not
constitute statutory accounts within the meaning of section 240 of the Companies
Act 1985. Statutory accounts for year ended 31 March 2004 have been filed with
the Registrar of Companies. The Auditors' Report on these accounts was
unqualified.
2. Earnings per share
The earnings per share figures are based on the profit on ordinary activities
after taxation as stated in the unaudited profit and loss account and the
weighted average number of shares in issue during each period. The weighted
average number of shares in issue during the period was 6,225,000 for the six
months ended 30 September 2004, 6,225,000 for the year ended 31 March 2004 and
6,225,000 for the six months ended 30 September 2003. The calculation of
diluted earnings per share was based on 6,225,000 for the six months ended 30
September 2004, 6,225,000 for the year ended 31 March 2004 and 6,424,000 for the
six months ended 30 September 2003.
3. Reconciliation of operating profits to net cash inflow from operating
activities
Unaudited Unaudited Audited
Six months to Six months to Year to
30 Sept 2004 30 Sept 2003 31 Mar 2004
£'000 £'000 £'000
Operating profit 165 92 334
Amortisation of intangible fixed assets 17 17 35
Depreciation charges 86 89 188
(Profit)/loss on disposal of fixed assets 5 (8) 5
(Increase) in stocks (126) (168) (63)
Decrease in debtors 327 39 22
Increase in creditors 106 102 166
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Net cash inflow/(outflow) from operating
activities 580 163 677
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4. Analysis and reconciliation of net cash
Audited Unaudited
31 Mar 2004 Cash flow 30 Sept 2004
£'000 £'000 £'000
Cash at bank and in hand 159 40 199
Bank overdrafts (90) 90 -
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69 130 199
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5. Further copies of this document are available both at the registered
office of the Company and from the offices of Charles Stanley & Company Limited,
25 Luke Street, London, EC2A 4AR.
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