Half Yearly Report

RNS Number : 9531K

Software Radio Technology PLC

31 December 2008

 



SOFTWARE RADIO TECHNOLOGY PLC

("SRT" or the "Group")

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2008

Software Radio Technology plc ("SRT" or the "Group"), the AIM-quoted developer of digital wireless communications technology, announces its unaudited interim results for the six months ended 30 September 2008.

The first half of this financial year has been challenging for SRT plc and is reflected in a 35% reduction in year on year revenue. 

SRT PMR Technology Limited

Despite the completion and successful launch of its TETRA handset during 2008 SRT PMR Technology Limited ("SRT PMR"), as announced on 19 December 2008, faces a funding gap primarily due to the late payment of license monies owed to SRT by Asian based customers. In the absence of additional external funding or payments of outstanding customer license fees, the Board of SRT PMR placed the business into administration on Wednesday 31 December 2008.  

SRT plc and SRT Marine Technology Limited are ring-fenced from SRT PMR Technology Limited and will therefore remain unaffected from any potential liabilities which may arise from SRT PMR Technology Limited. However as a result of the late payment of license monies owed to the Group and the subsequent administration of SRT PMR, Group revenues for the year ending 31 March 2009 will be significantly below expectations and there will be significant impairments in the year end accounts reflecting the Group's investment in SRT PMR.

SRT Marine Technology Limited

SRT Marine Technology Limited ("SRT Marine") is now the world's leading provider of AIS technology and product solutions. It has established an international network of customers each of which are providing SRT Marine based AIS products into multiple market segments: leisure, commercial and national security. The global AIS market continues to grow strongly as the technology is recognised as an important element within marine navigation and increasingly maritime homeland security programs. 

SRT Marine Technology and SRT plc have combined cash reserves of approximately £1million, no debt, and good stock levels to support its customers and the rapid growth of this market in the years to come. In the first six months of this financial year, SRT Marine generated revenues of £945,000. SRT Marine will continue to aggressively pursue its dual strategy of technology and product development coupled with the building of long term customer partnerships. The Board believes that SRT Marine Technology Limited is well positioned to consolidate and build upon its position within this growing global market.  

Richard Moon

Chairman

Enquiries:
Software Radio Technology plc Simon Tucker Group Managing Director		[phone]
Numis Securities Limited		[phone]
David Poutney - Corporate Broking  Lee Aston - Nominated Adviser

Richard Moon

Chairman

SOFTWARE RADIO TECHNOLOGY PLC

CONSOLIDATED INCOME STATEMENT

               FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2008

		Six months ended		Six months ended		Year ended
		30 Sep 2008		30 Sep 2007		31 Mar 2008
		Unaudited		Unaudited		Audited
		£		£		£
Revenue		1,244,658		1,910,852		4,739,113
Cost of sales		(840,729)		(1,082,571)		(2,502,121)
Gross profit		403,929		828,281		2,236,992
Administrative expenses		(2,607,594)		(1,883,453)		(3,132,448)
Operating loss		(2,203,665)		(1,055,172)		(895,456)
Finance income		36,270		62,988		125,662
Loss before income tax		(2,167,395)		(992,184)		(769,794)
Taxation		547,993		-		570,451
Loss for the period		(1,619,402)		(992,184)		(199,343)
Loss per share (basic and diluted)		(1.66)p		(1.15)p		(0.22)p

CONSOLIDATED BALANCE SHEET

               AS AT 30 SEPTEMBER 2008

		As at		As at		As at
		30 Sep		30 Sep		31 Mar
		2008		2007		2008
		Unaudited		Unaudited		Audited
		£		£		£
Assets
Non-current assets
Intangible assets		7,563,373		5,608,422		6,961,529
Investments		351,586		-		351,586
Property, plant and equipment		430,925		431,320		435,898
Total non-current assets		8,345,884		6,039,742		7,749,013
Current assets
Inventories		848,314		114,008		413,019
Trade and other receivables		3,867,366		3,330,388		5,683,915
Cash and cash equivalents		1,581,533		2,024,884		3,505,484
Total current assets		6,297,213		5,469,280		9,602,418
Total assets		14,643,097		11,509,022		17,351,431
Liabilities
Current liabilities
Trade and other payables		(1,350,272)		(1,255,754)		(2,538,954)
Total current liabilities		(1,350,272)		(1,255,754)		(2,538,954)
Total liabilities		(1,350,272)		(1,255,754)		(2,538,954)
Net assets		13,292,825		10,253,268		14,812,477
Shareholders' funds
Ordinary shares		97,818		89,102		97,818
Share premium		15,387,084		11,645,291		15,387,084
Other reserves		5,490,596		5,719,384		5,490,596
Retained earnings		(7,682,673)		(7,200,509)		(6,163,021)
Total funds		13,292,825		10,253,268		14,812,477

                 CONSOLIDATED CASH FLOW STATEMENT 

               FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2008

		Six months ended		Six months ended		Year ended
		30 Sep 2008		30 Sep 2007		31 Mar 2008
		Unaudited		Unaudited		Audited
		£		£		£
Cash used in operating activities		(1,078,022)		(1,364,253)		(2,369,092)
Operating activities
Interest received		36,270		62,988		125,662
Corporation tax received		547,993		-		570,451
Net cash used in operating activities		(493,759)		(1,301,265)		(1,672,979)
Investing activities
Purchase of intangible fixed assets		(1,305,787)		(818,036)		(2,303,927)
Purchase of property, plant and equipment		(124,405)		(41,139)		(191,988)
Net cash used in investing activities		(1,430,192)		(859,175)		(2,495,915)
Cash outflow before financing		(1,923,951)		(2,160,440)		(4,168,894)
Financing activities
Net proceeds from the issue of ordinary share capital		-		3,868,319		7,357,373
Net cash from financing activities		-		3,868,319		7,357,373
Net (decrease)/increase in cash and cash equivalents		(1,923,951)		1,707,879		3,188,479
Cash and cash equivalents at beginning of period		3,505,484		317,005		317,005
Cash and cash equivalents at end of period		1,581,533		2,024,884		3,505,484

  NOTES TO THE INTERIM FINANCIAL STATEMENTS

1.    Basis of preparation

These unaudited interim financial statements have been prepared under the historical cost convention and on a basis consistent with the UK Companies Act 1985 and International Financial Reporting Standards and IFRIC interpretations as endorsed by the European Union and interpretations expected to be in issue at 31 March 2009. The interim financial statements were approved by the Board of Directors and the Audit Committee on 23 December 2008  The interim financial statements do not constitute statutory financial statements within the meaning of the Companies Act 1985 and have not been audited. 

The figures for the year ended 31 March 2008 are derived from the statutory financial statements for that period. Those financial statements have been delivered to the Registrar of Companies and contained an audit opinion qualified due to limitation of scope relating to the recoverability of certain amounts recoverable on contracts and trade debtors.

The interim financial statements will be available from today to download on the Company's website www.softwarerad.com

2.    Share-based payment

In line with the requirements of IFRS 2, the Group has recognised the following profit and loss charges in respect of issued share options:

		Six months ended		Six months ended		Year ended
		30 Sep 2008		30 Sep 2007		31 Mar 2008
		Unaudited		Unaudited		Audited
		£		£		£
Share options - profit and loss charge		99,750		99,595		344,242

3.    Earnings per share

The basis earnings per share has been calculated using the loss for the period of £1,619,402 (2007 - loss of £992,184) divided by the weighted average number of ordinary shares in issue of 97,817,107 (2007 - 86,653,590).  

4.    Statement of Movement in Shareholders' Funds

		Six months ended		Six months ended		Year ended
		30 Sep 2008		30 Sep 2007		31 Mar 2008
		Unaudited		Unaudited		Audited
		£		£		£
Loss for the period		(1,619,402)		(992,184)		(199,343)
Proceeds from issue of shares		-		4,001,140		4,000,000
Costs of share issue		-		(192,821)		(192,827)
Proceeds from exercise of warrants		-		60,000		3,549,153
Proceeds from exercise of share options		-		-		33,714
Share options to be exercised		99,750		99,595		344,242
Movement in shareholders' funds		(1,519,652)		2,975,730		7,534,939
Opening shareholders' funds		14,812,477		7,277,538		7,277,538
Closing shareholders' funds		13,292,825		10,253,268		14,812,477

5.    Cash Used in Operations

		Six months ended		Six months ended		Year ended
		30 Sep 2008		30 Sep 2007		31 Mar 2008
		Unaudited		Unaudited		Audited
		£		£		£
Operating loss		(2,203,665)		(1,055,172)		(895,456)
Depreciation of property, plant and equipment		131,669		132,304		276,244
Amortisation of intangible fixed assets		701,660		160,678		295,793
Revenue satisfied by issue of shares		-		-		(351,586)
Share-based payment charge		99,750		99,595		344,242
(Increase)/decrease in inventories		(435,295)		47,930		(251,081)
(Increase) in trade and other receivables		1,816,549		(358,781)		(2,679,729)
(Decrease)/increase in trade and other liabilities		(1,188,690)		(390,807)		892,481
Net cash used in operations		(1,078,022)		(1,364,253)		(2,369,092)

6.   Significant Accounting Policies

    The accounting policies adopted are consistent with those of the financial statements for the year ended 31 March 2008, as described in those financial statements.

 

END

 

 

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