RNS Number:1485H
Bede PLC
07 November 2007
Press Release 7 November 2007
Bede plc
("Bede" or "the Company")
Third Quarter Results
Bede plc today announces its Third Quarter Results for the three months ended 30
September 2007.
Chairman's Statement and Chief Executive's Review
Trading Results
The Company announces a return to profit (before amortisation charges) for the
third quarter of 2007.
Third quarter revenues were #2.2m (Q2 2007: #0.5m; Q3 2006: #0.8m) and gross
margin for the period was 49% (Q2 2007: 20%; Q3 2006: 11%).
In addition to sales for the 9 month period to 30 September of #4.1m (9 months
to September 2006: #2.3m), the Group ends the third quarter with an order book
of #1.8m (30 September 2006: #4.4m).
Bookings for the quarter were #0.4m (Q2 2007: #1.7m; Q3 2006: #2.7m).
Net operating charges for the quarter were #1.3m (Q2 2007: #1.3m; Q3 2006:
#1.6m) and pre-tax profit (before amortisation and exceptional charges) for the
period was #17k (Q2 2007: #1.0m loss; Q3 2006: #1.3m loss).
Commentary
With advances in throughput, the acceptance of X-Ray metrology is gaining ground
for use in advanced semiconductor processes and is on course to achieve market
forecasts (VLSI Research) of $260m in 2011. The adoption of strain engineering
(FEOL) and copper processes (BEOL) to boost semiconductor performance at 45nm
geometries and beyond is driving the growth of the X-Ray semiconductor metrology
market (forecast CAGR 23.7% 06-11 - VLSI research).
Full management attention is focused on rolling out the Company's new High
Throughput Performance Platform addressing the X-Ray fluorescent and X-Ray
Reflection markets and initial reactions to the Platform's performance from the
customer base have been positive. Results from the most recent marketing
roadshow confirm that X-Ray metrology is being adopted in these applications.
The superior throughput performance of the Platform, positions Bede to share in
this growing market.
The Company is greatly encouraged by customer responses to its new product
offerings and looks forward to building on these early successes.
The Company reiterates its statement of 13 July confirming that discussions with
certain parties are ongoing which may or may not lead to an offer being made for
the Company. Further announcements will be made in due course as appropriate.
As ever we are grateful for the ongoing support of customers, shareholders and
employees and look forward to reporting progress in future announcements.
Stuart McIntosh Hugh Rudden
Chairman Chief Executive Officer
7 November 2007 7 November 2007
For further information please contact:
Bede plc
David Hall, Finance Director Tel: +44 (0) 191 332 4700
david.hall@bede.co.uk www.bede.com
Media enquiries:
Abchurch
Gareth Mead / Emma Johnson Tel: +44 (0) 20 7398 7784
emma.johnson@abchurch-group.com www.abchurch-group.com
CONSOLIDATED INCOME STATEMENT
FOR THE PERIOD ENDED 30 SEPTEMBER 2007
Quarter Quarter 9 Months 9 Months Year
Ended Ended Ended Ended Ended
30-Sep 30-Sep 30-Sep 30-Sep 31-Dec
2007 2006 2007 2006 2006
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Note #000 #000 #000 #000 #000
Revenue 2 2,226 789 4,125 2,295 5,960
Cost of sales (1,129) (705) (2,223) (1,716) (3,634)
Gross profit 1,097 84 1,902 579 2,326
Other operating income 84 116 227 216 327
Other operating charges
excluding exceptional costs (1,388) (1,763) (4,711) (5,493) (7,200)
Exceptional operating costs (45) - (45) - -
Operating loss before financing
costs (252) (1,563) (2,627) (4,698) (4,547)
Financial income 15 13 60 88 100
Financial expenses (22) (11) (58) (50) (59)
Net financing income (7) 2 2 38 41
Loss before tax (259) (1,561) (2,625) (4,660) (4,506)
Income tax 100 100 320 599 699
Loss for the period (159) (1,461) (2,305) (4,061) (3,807)
Attributable to :
Equity holders of the parent (159) (1,461) (2,305) (4,061) (3,807)
Loss for the period (159) (1,461) (2,305) (4,061) (3,807)
Basic loss per share (pence) 7 (0.2p) (1.7p) (2.6p) (4.7p) (4.4p)
Diluted loss per share
(pence) 7 (0.2p) (1.7p) (2.6p) (4.7p) (4.4p)
CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER 2007
As at As at As at
30-Sep 30-Sep 31-Dec
2007 2006 2006
(Unaudited) (Unaudited)
Note #000 #000 #000
Assets
Property, plant and equipment 1,882 2,143 2,058
Intangible assets 3 3,508 3,503 3,365
Total non-current assets 5,390 5,646 5,423
Inventories 3,750 4,943 3,741
Income tax receivable 300 300 400
Trade and other receivables 4 2,658 1,402 2,586
Cash and cash equivalents 5 151 1,086 938
Total current assets 6,859 7,731 7,665
Total assets 12,249 13,377 13,088
Equity
Issued capital 6 1,746 1,746 1,746
Share premium 6 30,720 30,720 30,720
Reserves 6 1,590 1,460 1,391
Retained earnings 6 (24,234) (22,183) (21,929)
Total equity attributable to equity holders of the
parent 9,822 11,743 11,928
Total equity 9,822 11,743 11,928
Liabilities
Bank overdraft 5 950 - -
Trade and other payables 8 1,423 1,284 1,095
Deferred government grants - 3 -
Deferred income 54 347 65
Total current liabilities 2,427 1,634 1,160
Total liabilities 2,427 1,634 1,160
Total equity and liabilities 12,249 13,377 13,088
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 SEPTEMBER 2007
Quarter Quarter 9 Months 9 Months Year
Ended Ended Ended Ended Ended
30-Sep 30-Sep 30-Sep 30-Sep 31-Dec
2007 2006 2007 2006 2006
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Note #000 #000 #000 #000 #000
Cash flows from operating activities
Loss for the period (159) (1,461) (2,305) (4,061) (3,807)
Adjustments for :
Depreciation 63 68 189 230 319
Amortisation 231 232 609 655 902
Decrease / (increase) in
inventories 160 214 (9) 394 1,596
(Increase) / decrease in trade
and other receivables (1,099) 24 (72) 889 (295)
(Decrease) / increase in trade
and other payables (46) 15 328 (433) (622)
(Decrease) in deferred
government grants - (4) - (11) (14)
(Decrease) / increase in
deferred income (142) 272 (11) 339 57
Foreign exchange movements 11 173 89 89 163
Equity-settled
share-based payments 33 89 110 268 122
Income tax credit (100) (100) (320) (599) (699)
Cash generated from the
operations (1,048) (478) (1,392) (2,240) (2,278)
Income taxes received - - 420 699 699
Net cash from operating
activities (1,048) (478) (972) (1,541) (1,579)
Cash flows from investing
activities
Acquisition of plant and equipment - - (13) (1) (2)
Development expenditure (260) (149) (752) (670) (779)
Net cash from investing activities (260) (149) (765) (671) (781)
Net (decrease) in cash and
cash equivalents in the period (1,308) (627) (1,737) (2,212) (2,360)
Cash and cash equivalents
at start of period 509 1,713 938 3,298 3,298
Cash and cash equivalents
at end of period 5 (799) 1,086 (799) 1,086 938
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
FOR THE PERIOD ENDED 30 SEPTEMBER 2007
Quarter Quarter 9 Months 9 Months Year
Ended Ended Ended Ended Ended
30-Sep 30-Sep 30-Sep 30-Sep 31-Dec
2007 2006 2007 2006 2006
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Note #000 #000 #000 #000 #000
Foreign exchange
translation differences 6 11 172 89 89 166
Net expenses recognised
directly in equity 11 172 89 89 166
Loss for the period 6 (159) (1,461) (2,305) (4,061) (3,807)
Total recognised income
and expense (148) (1,289) (2,216) (3,972) (3,641)
Attributable to:
Equity shareholders of
the parent (148) (1,289) (2,216) (3,972) (3,641)
NOTES TO THE FINANCIAL INFORMATION
1. Basis of accounting
The financial information for the period ended 30 September 2007 is unaudited
and has been prepared in accordance with the accounting policies detailed in the
Group's published consolidated financial statements for the year ended 31
December 2006.
The comparative figures for the financial year ended 31 December 2006 are not
the company's statutory accounts for that financial year. Those accounts have
been reported on by the company's auditors and have been delivered to the
registrar of companies. The report of the auditors was (i) unqualified, (ii)
did not contain a statement under section 237(2) or (3) of the Companies Act
1985, and (iii) included a reference to a matter to which the auditors drew
attention by way of emphasis without qualifying their report. The matter to
which the auditors drew attention was the disclosures contained in note 2 to the
financial statements regarding the group's ability to continue as a going
concern.
The Group operates in the global semiconductor market which is subject to rapid
advances in technology. It mitigates the risk of operating in this market by
maintaining an appropriate level of research and development spend to help it to
continue to develop products that are attractive to its customers. It now has a
significant number of the major semiconductor companies as customers and
continues to seek and develop opportunities in this market.
Day to day working capital requirements are met through cash reserves and
overdraft facilities. The nature of the Group's product means that orders tend
to be for significant amounts and this fact, combined with the market in which
the Group operates, means there can be unpredictable variation in the timing of
cash inflows.
On the basis of projected cash flow information and ongoing bank support, the
Board considers that the Group will continue to operate with sufficient cash.
However, given the inherent risk of forecasting revenues within this market,
there can be no certainty in relation to these matters. The financial
information does not include any adjustments that would result from the basis of
preparation being inappropriate.
2. Segment reporting
Segment information is presented in respect of the Group's geographical and
business segments. The primary format, geographical segments, is based on the
geographical location of customers.
Quarter Quarter 9 Months 9 Months Year
Ended Ended Ended Ended Ended
30-Sep 30-Sep 30-Sep 30-Sep 31-Dec
2007 2006 2007 2006 2006
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
#000 #000 #000 #000 #000
United Kingdom 7 12 52 25 31
Europe 60 280 261 414 474
Asia 2,009 288 2,766 407 1,689
United States 150 209 1,044 1,449 3,761
Rest of World - - 2 - 5
2,226 789 4,125 2,295 5,960
3. Intangible assets
Goodwill Patents and Development Total
trademarks costs
#000 #000 #000 #000
Cost
Balance at 1 January 2006 1,191 26 4,246 5,463
Acquisitions - internally generated - - 670 670
Balance at 30 September 2006 1,191 26 4,916 6,133
Balance at 1 October 2006 1,191 26 4,916 6,133
Acquisitions - internally generated - - 109 109
Balance at 31 December 2006 1,191 26 5,025 6,242
Balance at 1 January 2007 1,191 26 5,025 6,242
Acquisitions - internally generated - - 752 752
Balance at 30 September 2007 1,191 26 5,777 6,994
Amortisation and impairment losses
Balance at 1 January 2006 - 20 1,955 1,975
Amortisation for period - 4 651 655
Balance at 30 September 2006 - 24 2,606 2,630
Balance at 1 October 2006 - 24 2,606 2,630
Amortisation for period - - 247 247
Balance at 31 December 2006 - 24 2,853 2,877
Balance at 1 January 2007 - 24 2,853 2,877
Amortisation for period - - 609 609
Balance at 30 September 2007 - 24 3,462 3,486
Carrying amounts
At 1 January 2006 1,191 6 2,291 3,488
At 30 September 2006 1,191 2 2,310 3,503
At 31 December 2006 1,191 2 2,172 3,365
At 30 September 2007 1,191 2 2,315 3,508
Amortisation charge
The amortisation charge is recognised in the "other operating charges" line item in the income
statement.
4. Trade and other receivables
As at As at As at
30-Sep 30-Sep 31-Dec
2007 2006 2006
(Unaudited) (Unaudited)
#000 #000 #000
Trade receivables 1,388 350 1,604
Amounts owed in respect of
Employee Benefit Trusts 752 752 752
Other debtors 201 117 125
Prepayments and accrued income 317 183 105
2,658 1,402 2,586
5. Cash and cash equivalents
As at As at As at
30-Sep 30-Sep 31-Dec
2007 2006 2006
(Unaudited) (Unaudited)
#000 #000 #000
Bank balances 147 1,082 934
Petty cash 4 4 4
Cash and cash equivalents 151 1,086 938
Bank overdrafts (950) - -
Cash and cash equivalents in
the statement of cash flows (799) 1,086 938
6. Capital and reserves
Reconciliation of movement in capital
and reserves
Share Share IFRS 2 Translation Other Retained Total
Capital Premium reserve reserve reserve earnings Equity
#000 #000 #000 #000 #000 #000 #000
Balance at 1 January 2006 1,746 30,720 584 (81) 600 (18,122) 15,447
Total recognised income
and expense - - - 89 - (4,061) (3,972)
Equity settled transactions - - 268 - - - 268
Balance at 30 September 2006 1,746 30,720 852 8 600 (22,183) 11,743
Balance at 1 January 2006 1,746 30,720 584 (81) 600 (18,122) 15,447
Total recognised income
and expense - - - 166 - (3,807) (3,641)
Equity settled transactions - - 122 - - - 122
Balance at 31 December 2006 1,746 30,720 706 85 600 (21,929) 11,928
Balance at 1 January 2007 1,746 30,720 706 85 600 (21,929) 11,928
Total recognised income
and expense - - - 89 - (2,305) (2,216)
Equity settled transactions - - 110 - - - 110
Balance at 30 September 2007 1,746 30,720 816 174 600 (24,234) 9,822
Translation reserve
The translation reserve comprises all foreign exchange differences arising from the translation of
the financial information of foreign operations.
Other reserve
Other reserve arose on the Group reconstruction of Bede plc and Bede Scientific Instruments Limited in the
year ended 31 December 2000, accounted for under the merger method of accounting. The reserve comprises the
balance on the share premium account of Bede Scientific Instruments Limited as at the date of the merger, net
of the premium on preference shares redeemed on flotation.
7. Loss per share
Quarter Quarter 9 Months 9 Months
Ended Ended Ended Ended
Year Ended
30-Sep 30-Sep 30-Sep 30-Sep 31-Dec
2007 2006 2007 2006 2006
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Loss attributable to
ordinary shareholders
Loss for the period (#000) (159) (1,461) (2,305) (4,061) (3,807)
Weighted average number of
ordinary shares
Issued ordinary shares at
start of period (000) 87,293 87,293 87,293 87,293 87,293
Effect of shares issued
in the period (000) - - - - -
Weighted average number of ordinary
shares at end of period (000) 87,293 87,293 87,293 87,293 87,293
Loss per share (pence) (0.2) (1.7) (2.6) (4.7) (4.4)
Weighted average number of
ordinary shares (diluted)
Weighted average number of ordinary
shares at period end (000) 87,293 87,293 87,293 87,293 87,293
Effect of share options in issue - - - - -
Weighted average number of ordinary
shares (diluted) at period end (000) 87,293 87,293 87,293 87,293 87,293
Loss per share (diluted) (pence) (0.2) (1.7) (2.6) (4.7) (4.4)
Share options in issue during the period do not have dilutive impact on the loss per share calculation.
8. Trade and other payables
As at As at As at
30-Sep 30-Sep 31-Dec
2007 2006 2006
(Unaudited) (Unaudited)
#000 #000 #000
Trade payables 881 749 593
Other taxation and social security 187 185 213
Other creditors 73 97 68
Accruals 282 253 221
1,423 1,284 1,095
Independent review report to Bede plc
Introduction
We have been instructed by the company to review the financial information for
the nine months ended 30 September 2007 which comprises the consolidated income
statement, consolidated balance sheet, consolidated statement of cash flows,
consolidated statement of recognised income and expense and related notes. We
have read the other information contained in the interim report and considered
whether it contains any apparent misstatements or material inconsistencies with
the financial information.
This report is made solely to the company in accordance with the terms of our
engagement to assist the company in meeting the requirements of the Listing
Rules of the Financial Services Authority. Our review has been undertaken so
that we might state to the company those matters we are required to state to it
in this report and for no other purpose. To the fullest extent permitted by
law, we do not accept or assume responsibility to anyone other than the company
for our review work, for this report, or for the conclusions we have reached.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/
4: Review of interim financial information issued by the Auditing Practices
Board for use in the UK. A review consists principally of making enquiries of
group management and applying analytical procedures to the financial information
and underlying financial data and, based thereon, assessing whether the
accounting policies and presentation have been consistently applied unless
otherwise disclosed. A review excludes audit procedures such as tests of
controls and verification of assets, liabilities and transactions. It is
substantially less in scope than an audit performed in accordance with
International Standards on Auditing (UK and Ireland) and therefore provides a
lower level of assurance than an audit. Accordingly, we do not express an audit
opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the nine months
ended 30 September 2007.
Emphasis of matter - going concern
In forming our review conclusion on the financial information for the nine
months ended 30 September 2007, we have considered the adequacy of the
disclosures made in note 1 concerning the Group's ability to continue as a going
concern. The Group incurred a net loss of #2.3m during the nine months ended 30
September 2007. This condition, along with other matters explained in note 1 to
the financial information, indicate the existence of a material uncertainty
which may cast significant doubt on the Group's ability to continue as a going
concern. The financial information does not include the adjustments that would
result if the Group were unable to continue as a going concern.
KPMG Audit Plc Quayside House
Chartered Accountants 110 Quayside
7 November 2007 Newcastle Upon Tyne
NE1 3DX
This information is provided by RNS
The company news service from the London Stock Exchange
END
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