?
Press Release | 24 June 2013 |
DATONG PLC
("DATONG", "the Company" or "the Group")
Interim Results
DATONG PLC (DTE.L), a leading provider of covert intelligence gathering solutions, today announces its interim results for the six-month period ended 31 March 2013.
Financial Highlights
· | Revenue of £5.73 million (2012: £3.84 million) |
· | Operating profit £0.02 million (2012: loss of £0.14 million) |
· | Basic earnings per ordinary share of 0.17p (2012: 1.18p) |
· | Net cash of £2.21 million (2012: £2.14 million) |
- Ends -
Enquiries:
DATONG PLC | Tel: +44 (0) 113 239 5350 |
Mark Cook, Chief Executive Officer | |
Stephen Ayres, Finance Director |
Nominated adviser and broker
Canaccord Genuity | Tel: +44 (0) 207 050 6500 |
Simon Bridges / Mark Whitmore |
Media enquiries
Abchurch Communications | Tel: +44 (0) 207 398 7718 |
Sarah Hollins / Quincy Allan | |
Sarah.hollins@abchurch-group.com |
Business Review
Trading performance and Outlook
DATONG's position within the defence and security market has supported a solid performance during the period in line with management expectations. Delivered revenue for the period was £5.73 million (2012: £3.84 million) and the operating profit was £0.02 million (2012: loss of £0.14 million). Net cash at the period end was £2.21 million (2012: £2.14 million).
Throughout the period, and in line with its previously stated strategy, the Group has continued to invest in its product portfolio and routes to market whilst also prudently controlling its cost base.
As announced on 19 December 2012, a major UK contract win was secured worth £7.5 million over the next two years. Of that contract £1.26 million has been recognised as revenue in the period.
Despite a strong performance from the Third Party product business segment, further territory distribution rights have been terminated during the period reflecting the commercial growth of DATONG's supply partner and which will significantly impact future financial performance. Revenue from the Third Party product business segment in the period was £1.06 million (2012: £0.42 million).
The sales order pipeline for the second half of the financial year and in particularly the expected timings of certain opportunities is being adversely affected by the continuing uncertainty surrounding the sequestration process in the US.
Post Balance Sheet Events
On 10 May 2013 Seven Technologies Holdings Limited ("Seven") announced its intention to make a cash offer ("Offer") to acquire the entire issued and to be issued share capital of DATONG at the offer price of 50 pence per share. The offer document containing the full terms and conditions of the Offer and the procedure for acceptance was posted to DATONG shareholders together with the related Form of Acceptance on 14 May 2013.
On 11 June 2013 Seven announced that as at 1.00 p.m. (London time) on 10 June 2013, Seven had received valid acceptances under the Offer from DATONG shareholders, in respect of 13,139,239 DATONG Shares, which in aggregate represents approximately 94.975 per cent. of the existing issued ordinary share capital of the Company and accordingly, by virtue of such acceptances, Seven declared the Offer wholly unconditional in all respects.
Having received valid acceptances under the Offer of more than 75 per cent. of the existing issued share capital of DATONG, at the request of Seven, an application has been made to the London Stock Exchange, to cancel the trading facility in the ordinary shares of the Company on AIM. In accordance with the guidance to Rule 41 of the AIM Rules for Companies, on 11 June 2013 the Company gave notice that the cancellation of the admission to trading on AIM of DATONG shares (the "Cancellation") is expected to be effective from 7.00 a.m. (London time) on 10 July 2013 and that the last day of dealings in DATONG shares will be 9 July 2013.
The Cancellation will significantly reduce the liquidity and marketability of any DATONG shares not asserted to the Offer and their value may be affected in consequence. Seven also intends to re-register the Company as a private company following the Cancellation.
Board Changes
Following the announcement on 11 June 2013 by Seven that the Offer was now wholly unconditional in all respects, the non-executive directors of the Company, namely, Paul Lever, Grant Ashley, Richard Brearley and Brian Smith resigned from their offices with immediate effect. The Board therefore now comprises of Stephen Ayres and Mark Cook.
Paul, Grant, Richard and Brian have all played an integral role during the Company's life on AIM and on behalf of everyone involved the Board thanks them all for their significant contributions over the years.
Mark Cook
Chief Executive Officer
24 June 2013
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 MARCH 2013
Six months | Six months | Twelve months | ||
to 31 March | to 31 March | to 30 September | ||
2013 | 2012 | 2012 | ||
Unaudited | Unaudited | Audited | ||
Continuing operations | Note | £'000 | £'000 | £'000 |
Revenue | 3 | 5,726 | 3,839 | 9,690 |
Cost of sales | (3,663) | (2,164) | (5,606) | |
Gross profit | 2,063 | 1,675 | 4,084 | |
Overhead costs | (2,047) | (2,113) | (4,108) | |
Share of post-tax result of associate | - | (3) | (8) | |
Exceptional litigation costs | - | 300 | 300 | |
Profit/(loss) from operations | 3 | 16 | (141) | 268 |
Investment income | 3 | - | 1 | |
Finance costs | - | (1) | - | |
Profit/(loss) before taxation | 19 | (142) | 269 | |
Taxation | 4 | 305 | 137 | |
Profit for the period attributable |
|
|
| |
Profit per ordinary share (pence) | ||||
Basic | 4 | 0.17 | 1.18 | 2.93 |
Diluted | 4 | 0.16 | 1.18 | 2.93 |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 MARCH 2013
Six months | Six months | Twelve months | |
to 31 March | to 31 March | to 30 September | |
2013 | 2012 | 2012 | |
Unaudited | Unaudited | Audited | |
£'000 | £'000 | £'000 | |
Profit for the period | 23 | 163 | 406 |
Other comprehensive income | |||
Currency translation differences | (104) | 26 | 47 |
Total comprehensive income for the |
|
|
|
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2013
31 March | 31 March | 30 September | ||
2013 | 2012 | 2012 | ||
Unaudited | Unaudited | Audited | ||
Note | £'000 | £'000 | £'000 | |
Assets | ||||
Non-current assets | ||||
Intangible assets | 2,629 | 2,952 | 2.808 | |
Property, plant and equipment | 897 | 1,037 | 1,002 | |
Investment in associates | - | 9 | - | |
Deferred tax assets | 5 | 263 | 4 | |
3,531 | 4,261 | 3,814 | ||
Current assets | ||||
Inventories | 1,353 | 2,415 | 2,297 | |
Trade and other receivables | 4,063 | 2,483 | 3,039 | |
Derivative financial instruments | - | 21 | - | |
Tax receivables | 101 | 10 | 100 | |
Cash and cash equivalents | 2,212 | 2,144 | 2,480 | |
7,729 | 7,073 | 7,916 | ||
Assets held for sale | - | - | ||
Total assets | 11,260 | 11,334 | 11,730 | |
Liabilities | ||||
Current liabilities | ||||
Trade and other payables | (1,029) | (1,236) | (1,427) | |
Non-current liabilities | ||||
Deferred tax liabilities | (31) | (35) | (35) | |
Total liabilities | (1,060) | (1,271) | (1,462) | |
Net assets | 10,200 | 10,063 | 10,268 | |
Equity | ||||
Share capital | 69 | 69 | 69 | |
Share premium | 4,468 | 4,468 | 4,468 | |
Currency translation reserve | (74) | 9 | 30 | |
Retained earnings | 5,737 | 5,517 | 5,701 | |
Equity attributable to equity holders of the Company | 10,200 | 10,063 | 10,268 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 MARCH 2013
Currency | |||||
Share | Share | translation | Retained | ||
capital | premium | reserve | earnings | Total | |
£'000 | £'000 | £'000 | £'000 | £'000 | |
Unaudited | |||||
At 1 October 2012 | 69 | 4,468 | 30 | 5,701 | 10,268 |
Total comprehensive income for the period | - | - | (104) | 23 | (81) |
Cost of share-based incentives | - | - | - | 13 | 13 |
At 31 March 2013 | 69 | 4,468 | (74) | 5,737 | 10,200 |
Unaudited | |||||
At 1 October 2011 | 69 | 4,468 | (17) | 5,352 | 9,872 |
Total comprehensive income for the period | - | - | 26 | 163 | 189 |
Cost of share-based incentives | - | - | - | 2 | 2 |
At 31 March 2012 | 69 | 4,468 | 9 | 5,517 | 10,063 |
Audited | |||||
At 1 October 2011 | 69 | 4,468 | (17) | 5,352 | 9,872 |
Total comprehensive income for the period | - | - | 47 | 406 | 453 |
Cost of share-based incentives | - | - | - | (57) | (57) |
At 30 September 2012 | 69 | 4,468 | 30 | 5,701 | 10,268 |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 MARCH 2013
Six months | Six months | Twelve months | |
to 31 March | to 31 March | to 30 September | |
2013 | 2012 | 2012 | |
Unaudited | Unaudited | Audited | |
£'000 | £'000 | £'000 | |
Cash flows from operating activities | |||
Profit/(loss)from operations | 16 | (141) | 268 |
Adjustments for: | |||
Depreciation and amortisation | 760 | 694 | 1,545 |
Impairment of investments in associates | - | - | 4 |
Share of post-tax result of associate | - | 3 | 8 |
Loss on disposal of tangible assets | - | - | 3 |
Cost of share-based incentives | 13 | 2 | (57) |
Fair value gains on derivative | - | (21) |
|
Decrease/(increase) in inventories | 946 | (385) | (272) |
(Increase)/decrease in trade and | (995) | 1,578 |
|
Decrease in trade and other payables | (554) | (549) | (345) |
Tax (paid)/received | (1) | 184 | 185 |
Net cash generated from operating activities | 185 | 1,365 | 2,364 |
Cash flows from investing activities | |||
Interest received | 3 | - | 1 |
Sales of property, plant and equipment | - | - | 2 |
Purchases of property, plant and equipment | (18) | (45) | (172) |
Purchase of intangible assets | (454) | (422) | (974) |
Investment in associate | - | (20) | (20) |
Net cash used in investing activities | (469) | (487) | (1,163) |
Cash flows from financing activities | |||
Interest paid | - | (1) | - |
Net cash used in financing activities | - | (1) | - |
Net (decrease)/increase in cash and | (284) | 877 |
|
Cash and cash equivalents at the start | 2,480 | 1,268 |
|
Effect of foreign currency translation | 16 | (1) | 11 |
Cash and cash equivalents at the end | 2,212 | 2,144 |
|
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 MARCH 2013
1. Accounting policies
Basis of Preparation
These financial statements are the unaudited interim consolidated financial statements of DATONG plc, a company incorporated in the United Kingdom, and its subsidiaries (together referred to as the "Group") for the six month period ended 31 March 2013. They have been prepared in accordance with IAS 34 'Interim Financial Reporting' and should be read in conjunction with the consolidated financial statements for the 12-month period ended 30 September 2012. They were approved for issue by the Board of Directors on 15 January 2013. The financial information contained in these financial statements does not constitute statutory accounts as defined in the Companies Act 2006.
The accounting policies used in the preparation of the interim financial statements are the same as those applied in the preparation of the financial statements for the year ended 30 September 2012.
The preparation of the interim financial statements requires the use of certain estimates and requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity or areas where assumptions and estimates are significant to the interim financial statements are consistent with those disclosed in the consolidated financial statements for the year ended 30 September 2012.
The comparative figures for the year ended 30 September 2012 have been taken from but do not constitute the company's statutory financial statements for that financial year. Those financial statements have been reported on by the Company's Auditors and delivered to the Registrar of Companies. Their report was unqualified and did not contain a statement under section 498 of the Companies Act 2006.
TAXATION
The charge for taxation is recognised based upon the estimated effective rate for the full financial year, expressed as a percentage of the expected result for the year and then applied to the interim results.
2. Segmental Information
The Group's reportable segments under IFRS 8 are Own products and Third Party products. Own products represent products developed, manufactured and distributed by the Group. Third Party products represent products bought in from a third party and distributed by the Group.
The products from both reportable segments are offered for sale in the same market sectors and consequently are managed together as one business operating from the same locations. Accordingly only directly attributable items have been allocated across the segments.
segment REVENUES AND RESULTS
The segment results for the period are as follows:
Six months | Six months | Twelve months | |
to 31 March | to 31 March | to 30 September | |
2013 | 2012 | 2012 | |
Unaudited | Unaudited | Audited | |
£'000 | £'000 | £'000 | |
Segment revenue | |||
Own products | 4,665 | 3,423 | 8,099 |
Third Party products | 1,061 | 416 | 1,591 |
Total | 5,726 | 3,839 | 9,690 |
Segment profit | |||
Own products | 1,694 | 1,404 | 3,601 |
Third Party products | 319 | 217 | 669 |
Total | 2,013 | 1,621 | 4,270 |
Unallocated costs | (1,997) | (2,059) | (3,994) |
Share of post-tax result of associate | - | (3) | (8) |
Exceptional litigation costs | - | 300 | - |
Investment income | 3 | - | 1 |
Finance costs | - | (1) | - |
Profit/(loss) before taxation | 19 | (142) | 269 |
Segment revenue represents revenue generated from external customers. Inter-segment sales were not significant.
The products from both reportable segments are offered for sale in the same market sectors and consequently the reportable segments are managed together as one business operating from the same locations. Accordingly only directly attributable items have been allocated across the segments.
An analysis of the Group's revenue by its major products and services is represented by the above analysis by reportable segment.
OTHER SEGMENT INFORMATION
The segments' assets and liabilities at the period end are as follows:
31 March | 31 March | 30 September | |
2013 | 2012 | 2012 | |
Unaudited | Unaudited | Audited | |
£'000 | £'000 | £'000 | |
Segment assets | |||
Own products | 7,320 | 8,702 | 8,219 |
Third Party products | 1,623 | 155 | 837 |
8,943 | 8,857 | 9,056 | |
Unallocated | 2,317 | 2,477 | 2,674 |
11,260 | 11,334 | 11,730 | |
Segment liabilities | |||
Own products | 670 | 962 | 873 |
Third Party products | 172 | 34 | 378 |
842 | 996 | 1,251 | |
Unallocated | 218 | 275 | 211 |
1,060 | 1,271 | 1,462 |
Geographical information
The Group's two reportable segments operate in four main geographical areas, although they are managed on a worldwide basis.
Six months | Six months | Twelve months | |
to 31 March | to 31 March | to 30 September | |
2013 | 2012 | 2012 | |
Unaudited | Unaudited | Audited | |
£'000 | £'000 | £'000 | |
Revenue from external customers | |||
United Kingdom | 2,055 | 998 | 3,094 |
Europe | 495 | 239 | 541 |
Americas | 1,978 | 2,139 | 3,947 |
Rest of World | 1,198 | 463 | 2,108 |
5,726 | 3,839 | 9,690 |
4. Earnings per ordinary share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period.
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue to assume conversion of all potential dilutive shares arising from outstanding share options. For this adjustment, a calculation is made to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price during the period) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of share options. The difference is added to the denominator as additional shares for no consideration. There is no adjustment made to the numerator.
Six months | Six months | Twelve months | |
to 31 March | to 31 March | to 30 September | |
2013 | 2012 | 2012 | |
Unaudited | Unaudited | Audited | |
£'000 | £'000 | £'000 | |
Earnings | |||
Profit for the period attributable to equity holders |
|
|
|
Number of shares | |||
Weighted average number of ordinary shares |
|
|
|
Potential dilutive shares arising from share options | 668,000 | - | - |
Weighted average number of ordinary shares | 14,502,375 | 13,834,375 | 13,834,375 |
- Ends -
This information is provided by RNS
distributed by |