Information  X 
Enter a valid email address

Vycon Inc (VYCO)

  Print   

Friday 27 April, 2007

Vycon Inc

Final Results

Vycon Inc
27 April 2007


                                                                   27 April 2007

                                  VYCON, Inc

               Results for the year ended 31 December 2006


Vycon Inc ('Vycon' or the 'Company'), the designer and manufacturer of
high-speed flywheel based energy storage systems, today announces its results
for the year ended 31 December 2006.


Highlights:

• Completed development and launched products for the Uninterruptible
  Power Systems ('UPS') market and the crane markets

• Established global supply and sales channels for the Company's products

• Certified Vycon's UPS flywheel storage system for compliance with
  European safety standards (CE - Conformite Europeenne)

• Installed UPS and crane beta units at various locations globally

• Commenced building a quote backlog for UPS and crane products and
  recorded the first commercial orders for both products

• Shipped the Company's first commercial UPS products

• Completed private equity financing transaction raising $7 million

• Prepared the Company for an AIM listing (completed in March 2007)


John Uttley, Chairman, commented:

'These results reflect a period of considerable progression for the business.
The development of new products for both the UPS and crane markets, while
capital intensive, resulted in commercial sales gaining traction in the latter
half of the period. A solid foundation has been built for Vycon and the Company
is now well positioned to focus its efforts on expanding its distribution and
marketing. The new financial year has seen customer interest continuing to gain 
momentum and the successful admission of the Company to AIM in March 2007. We 
are confident that we will continue to deliver further growth and value to our 
shareholders.'


For further information, please contact:

Vycon Inc                           Tony Aoun              001 562 293 3649
                                    Dennis Whittler        001 562 293 1366

Smith & Williamson Corporate        Nick Reeve             +44 (0) 117 933 3344
Finance Limited                     Martyn Fraser
                                    
Cardew Group                        Rupert Pittman         +44 (0) 20 7930 0777
                                    Shan Shan Willenbrock
                                    Emma Consett


CEO's Statement:

In 2006 the Company made significant progress in all aspects of the business.
New UPS and crane products were introduced during the year, with commercial
sales beginning in the latter half of the period. A solid foundation has been
built for Vycon and the Company is now positioned to focus its efforts on
expanding its distribution and marketing activities. The year ended 31 December
2006 was a capital intensive time for the Company, the rewards of which are
expected to be seen during the current financial year.


VDC 140 UPS flywheel

The VDC 140 UPS product is aimed at the premium segment of the UPS market where
power quality and reliability are of primary importance to targeted end users
which include hospitals, data centers, internet transactional sites and critical
automated manufacturing processes. The products are designed for 'plug and play'
compatibility with many leading back-up power products and brands, a 20 year
life with an overall lower cost of ownership and lower maintenance requirements
than competitive lead-acid battery backup systems.

After successful completion of extensive in-house design validation and
reliability testing, in October 2006, the successful installation and
performance of the VDC 140 UPS flywheel system at SunGard Availability Services
('SunGard') in the UK was announced. SunGard, the pioneer and leading provider
of information availability solutions, is using the flywheel system to help
ensure full power protection to the entire facility. The system is being
monitored remotely from Vycon's offices in California.

During the testing phase, the Company established alliances with global
distribution channel partners and independent representatives. Commercial sales
began in late 2006, and the Company, through its distribution partners, built a
significant quote backlog which resulted in new UPS orders from the US, UK, New
Zealand and Korea.


REGEN 120

The REGEN 120 product is targeted for use with mobile shipyard cranes, powered
by on-board diesel generators that move shipping containers in ports located
around the world. The REGEN 120 is ideally suited for mobile cranes as the
flywheel captures electrical power generated on the lowering cycle that is
currently dissipated as heat.

In late 2006, the REGEN 120, which underwent similar testing procedures to that
of the VDC 140 flywheel system, was also introduced to the market. Throughout
the testing phase, the Company focused on developing strong relationships with
leading shipyard crane manufacturers and port operators with global operations.
As a result of these relationships, the Company developed a strong quote backlog
with potential customers in the US, Korea, Singapore, Thailand, India, and China
and recorded new orders from customers located in the US and Korea.

The REGEN 120 beta units were installed on mobile cranes at the Port of Long
Beach and the Port of Los Angeles in late 2006. Independent tests indicated a
20-25% reduction in fuel consumption, a 25% reduction in NOx emissions and a 65%
reduction in particulate matter emissions.

In late 2006, the REGEN 120 was submitted for certification testing by the
California Air Resources Board ('CARB'). Certain US ports have implemented
emissions compliance restrictions and the Company believes that successful
completion of the CARB certification will significantly enhance its sales
efforts.


Funding

In 2006, the Company completed a Series B private equity financing raising
approximately US$7 million primarily from Series A participants. Funds raised in
the private equity financing were primarily used to complete the development of
the Company's UPS and crane flywheel products.

Also, during the period under review, the Company prepared for an AIM listing
which was completed in March 2007. A placing undertaken at the same time raised
US$18 million and attracted investors from the US, UK, New Zealand, Hong Kong
and Denmark. Admission to AIM will help Vycon to raise its profile and the
placing will provide further equity financing to assist in funding development
of higher capacity products. These higher capacity products will utilise the
Company's existing technology but are expected to be capable of storing over
five times more useable energy than the current products. This will enable Vycon
to satisfy demand from existing markets for a larger product capable of
providing greater power, together with opening new markets, such as rail, which
are only accessible to a higher capacity product.

It is a very exciting time for the Company and we look forward to the year ahead
with confidence.


Tony Aoun
President and Chief Executive Officer



Operating Statement
For the year ended 31 December 2006


                      Note                         Year ended         Year ended 
                                             31 December 2006   31 December 2005
                                                         US $               US $
                                                   ----------         ----------

Revenue                                             193,006             55,000

Cost of sales                                      (177,159)           (25,000)
                                                   ----------         ----------
Gross profit                                         15,847             30,000

Operating
expenses                                         (6,316,023)        (4,318,585)
                                                   ----------         ----------
Operating loss                                   (6,300,176)        (4,288,585)

Other gains
and losses                                            4,616                  -
Finance costs                                    (1,212,094)          (799,526)
                                                   ----------         ----------
Loss before tax                                  (7,507,654)        (5,088,111)

Tax                                                    (800)              (800)
                                                   ----------         ----------
Loss for the period
attributable to 
equity stockholders                              (7,508,454)        (5,088,911)
                                                   ==========         ==========

Loss per share: 
Basic and diluted        2                            (1.47)             (1.01)
                                                   ==========         ==========



Balance Sheet
As at 31 December 2006  
                                               --------------       ------------
                                                        As at              As at
                                             31 December 2006   31 December 2005
                                                         US $               US $
                                               --------------       ------------
Assets
Non-current assets
Property, plant and equipment                       280,103            395,972
                                               --------------       ------------
Current assets
Inventories                                       1,253,020            680,778
Trade receivables                                   196,200             84,624
Deferred offering costs and other
prepaid expenses                                    966,671
Cash and cash equivalents                         1,589,354          1,647,787
                                               --------------       ------------
                                                  4,005,245          2,413,189
                                               --------------       ------------
Total assets                                      4,285,348          2,809,161
                                               --------------       ------------

Liabilities
Current liabilities
Trade and other payables                          1,343,324            675,696
Obligations under finance leases                     38,762             33,261
                                               --------------       ------------
                                                  1,382,086            708,957
                                               --------------       ------------

Non-current liabilities
Obligations under finance leases                     31,504             70,731
Series A convertible 8% preferred stock          12,095,612         11,080,206
Series B convertible 8% preferred stock           7,146,369                  -
                                               --------------       ------------
                                                 19,273,485         11,150,937
                                               --------------       ------------
Total liabilities                                20,655,571         11,859,893
                                               --------------       ------------

Equity
Par                                                     533                503
Additional paid in capital                          733,685            544,752
Retained deficit                                (17,104,441)        (9,595,987)
                                               --------------       ------------

Total equity deficit                            (16,370,223)        (9,050,732)
                                               --------------       ------------

Total equity and liabilities                      4,285,348          2,809,161
                                               ==============       ============


Statement of Cash Flow
For the year ended 31 December 2006

                                      Note         Year ended        Year ended 
                                             31 December 2006  31 December 2005
                                                         US $              US $
                                               --------------       ------------
Net cash flow from 
operating activities                     3       (7,024,553)        (4,675,631)
                                               --------------       ------------

Investing activities
Proceeds on disposal of
property and equipment                               24,164                  -
Purchases of property 
and equipment                                       (80,290)          (132,204)
                                               --------------       ------------
Net cash (used in) / from
investing activities                                (56,126)          (132,204)
                                               --------------       ------------

Financing activities
Capital lease payments                              (33,726)           (27,321)
Proceeds from issue of convertible notes                      
payable                                                   -                  -
Proceeds from the issue of                                             
Series A convertible 8%
preferred stock                                           -          3,729,769
Proceeds from the issue of
Series B convertible 8%
preferred stock                                   6,905,972                  -
Proceeds from the issue of
common shares                                       150,000              1,500
                                               --------------       ------------
Net cash from financing
activities                                        7,022,246          3,703,948
                                               --------------       ------------

Net (decrease)/ increase 
in cash and cash
equivalents                                         (58,433)        (1,103,887)

Cash and cash equivalents 
at beginning period                               1,647,787          2,751,674
                                               --------------       ------------

Cash and cash equivalents 
at end of period                                  1,589,354          1,647,787
                                                ==============      ============


Notes

     
1.   General

Vycon is a company incorporated in and under the laws of the State of Delaware.
The Company's registered office is 615 South DuPont Highway Dover, DE, United
States. The Company's principal activity is the development and manufacture of
flywheel-based energy storage systems.

The financial information set out above does not represent full accounts within
the meaning of s.240 of the Companies Act 1985. The Annual Report and Accounts
for the year ended 31 December 2006 will be posted to shareholders shortly.

This financial information has been presented in United States dollars, the
currency of the primary economic environment in which the Company operates.

The financial information has been prepared by Company management in accordance
with International Financial Reporting Standards ('IFRS') as adopted for use in
the EU. At the date of authorisation of this financial information, certain
Standards and Interpretations which have not been applied to this financial
information were in issue but not yet effective. The directors anticipate that
the adoption of these Standards and Interpretations in future periods will have
no material impact on the financial statements of the Company except for
additional disclosures required when the relevant Standards and Interpretations
come into effect.


     
2.   Loss per share

The calculation of basic and diluted loss per share is based on the following
data:
                                                   Year ended         Year ended
                                                  31 December        31 December
                                                         2006             2005
                                                         US $               US $
                                             ----------------  -----------------

Loss for the year attributable to equity
stockholders                                     (7,508,454)        (5,088,911)
                                             ================  =================

                                                       Number             Number
                                             ----------------  -----------------

Weighted average number of common shares in
issue                                             5,117,000          5,031,295
                                             ================  =================

                                                         US $               US $
                                             ----------------  -----------------

Basic and diluted loss per share                      (1.47)             (1.01)
                                             ================  =================


Basic loss per share is calculated by dividing the loss for the year
attributable to equity shareholders by the weighted average number of shares in
issue during the year.

Diluted loss per share is calculated by dividing the loss for the year
attributable to equity shareholders by the weighted average number of shares in
issue plus the number of shares which could be issued on conversion of dilutive
instruments.

     
3.   Net cash flow from operating activities

                                             Year ended               Year ended 
                                       31 December 2006         31 December 2005
                                                   US $                     US $
                                             ----------            -------------

Loss before tax                            (7,507,654)              (5,088,111)
Depreciation and amortisation                 194,150                  282,638
Inventory write off                                 -                   38,125
Stock compensation                             38,963                    6,300
Net Gain on disposal of fixed
assets                                         (4,416)                       -
Interest converted into series A 
and B 8% preferred stock                    1,255,804                  821,788
                                             ----------               ----------
Operating loss before changes 
in working capital                         (6,023,153)              (3,939,260)

Decrease / (increase) in
trade/other receivables                      (135,848)                 (69,424)
Increase in deferred 
offering costs                               (942,399)                       -
Increase in inventory                        (572,242)                (668,977)
Increase / (decrease) in
accounts payable                              656,013                 (108,636)
Increase / (decrease) in
accruals                                       (6,125)                 111,466
Tax paid                                         (800)                    (800)
                                             ----------               ----------
Cash outflow from
operating activities                       (7,024,553)              (4,675,631)
                                             ==========               ==========



This announcement does not constitute or form part of any offer or invitation to
sell or issue or any solicitation of any offer to purchase or subscribe for any
securities in any jurisdiction, nor shall it (or any part of it) or the fact of
its distribution form the basis of, or be relied upon in connection with, or act
as any inducement to enter into, any contract or commitment therefor.

Recipients of this announcement who intend to purchase or subscribe for shares
in the Company are reminded that any such purchase or subscription must only be
made solely on the basis of the information contained in the admission document
relating to the Company in its final form.

This document does not constitute an offer of securities in the United States,
nor may shares be offered or sold in the United States absent registration or an
exemption from registration under the U.S. Securities Act of 1933. as amended
(the 'Securities Act'), and the rules and regulations thereunder; and any public
offering of shares in the United States will be made by means of a Prospectus
that will contain detailed information about the Company and management, as well
as financial statements. The Company does not presently intend to register any
securities under the Securities Act.







                      This information is provided by RNS
            The company news service from the London Stock Exchange
                                                                                                                                                     

a d v e r t i s e m e n t