TIDMOPE
RNS Number : 1182Z
Optare PLC
08 December 2014
Optare plc
(the "Company", "Group" or "Optare")
Interim Results for the six months ended 30 September 2014
Optare is pleased to announce its unaudited results for the six
months ended 30 September 2014.
Key highlights:
-- Introduction of the MetroCity Euro 6, a low weight integral
structure vehicle, available in 2 lengths of 10.1m to 10.8m. The
first Metrocity order was delivered in May 2014;
-- Successful launch of Optare's new Euro 6 double deck, the
MetroDecker, at the London Transport Museum in May 2014. The order
book for the MetroDecker is now open;
-- Introduction of the MetroCity EV. The Metrocity EV was
launched by the Mayor of London in July of this year;
-- Orders for electric vehicles (EVs) received for all major
London operators, who are currently trialling Optare's EVs. As of
September 30(th) 2014, Optare has 45 EVs operating in the UK market
and is the leader in full electric vehicles in the UK (where Optare
has 100% market share) and Europe;
-- Introduction of the new Solo and Versa Euro 6 engine power.
The first order for 37 units has now been delivered to Northern
Ireland;
-- Introduction of the new hybrid power generation. The first
order for 10 units has been delivered in September 2014;
-- Optare has been awarded for its excellence in environment and
green technology by the Indo European Business Forum at a recent
awards ceremony at the House of Lords, Westminster, London; and
-- Increased market share of single deck UK market; up by 2.0%
as of September 2014 v September 2013. The overall single deck UK
market was down by 9% YTD in 2014.
Financial headlines:
-- EBITDA loss of GBP(1.4)m compared to H1 2013 loss of GBP(0.8)m;
-- Loss from operations of GBP(2.1)m compared to H1 2013 loss of GBP(1.4)m;
-- Gross margin decreased to 9.5% (H1: 2013 10.3%), this was
primarily driven by the execution of new product orders and the
introduction of new Euro 6 specification vehicles;
Sales volumes are lower than PY by 13%.
-- Underlying administration costs increased to GBP4.6m (H1:
2013 GBP4.4m). Administration costs include a one off charge of
GBP0.3m relating to obligations resulting from an onerous contract
in May 2014; and
-- Loss per share increased from 0.08p at September 2013 to 0.12p at September 2014.
Commenting on the interim results, Enrico Vassallo, Optare's
CEO: "We have seen a difficult trading period in the first half of
the 2014/15 financial year, due to the contraction of the UK bus
market and the launch of several new products and Euro 6
specification vehicles. We have continued to invest in new products
and, for the first time, the Company can offer an extended product
range to meet operators' urban and suburban requirements. The
Management are committed to top line growth in both UK and export
markets and to reduce fixed costs to ensure a long term sustainable
future for Optare plc".
For further information:
Optare plc Tel: +44 (0) 8434 873 200
Enrico Vasallo - Chief Executive Officer
Cenkos Securities plc Tel: +44 (0) 20 7397 8900
Stephen Keys
CHAIRMAN AND CHIEF EXECUTIVE REVIEW
-- Turnover for the 6 months ended 30 September 2014 was
GBP29.4m (H1 2013: GBP32.4m). 2013 H1 results included the
completion of a kit export order (GBP3.0m). Volumes for the same
period were 177 compared to 204 buses and 31 kits in H1 2013.
-- The Company has continued to invest in the long-term future
of the business with capital expenditure in the 6 months to 30
September 2014 of GBP0.8m (H1 2013: GBP0.9m). The expenditure was
principally on product development - the lightweight Euro 6
integral double deck ("MetroDecker") and the low weight midi-bus
("MetroCity") - and Euro 6 integration into current ranges;
-- Optare's banking arrangements were renewed by Barclays with a
total bank facility of GBP23m still available and Ashok Leyland
continues to support Optare plc with resources as required;
-- Loss per share increased from 0.08p at September 2013 to 0.12p at September 2014.
Current trading and prospects
-- The order book as at 30 September 2014 was GBP21.7m (30
September 2013: GBP22.5m). The Company is now tendering for
MetroDecker orders to strengthen the order book and plan to further
supplement this through volume orders from the large UK bus
operators, supported by the full product offering that Optare now
has available;
-- Optare has delivered its targeted first Euro 6 engines in Q2
of the 2014/15 financial year. Further Euro 6 production volume is
planned into H2;
-- The export strategy is taking longer to realize than was
originally envisaged, but the first tender for Bahrain has been
successfully won. Optare continues to promote its products in
export markets, to reduce its reliance on UK customers;
-- Optare continues to be the leader in low emission technology
and have a substantial lead on the competition. With increasing
focus on life cycle costs, Optare continues to invest in improving
fuel efficiency of its product range; and
-- Continued integration with Ashok Leyland through the planned
launch of Optare's Solo EV with AL branding at the Bus Expo in New
Delhi early next year.
Board and management changes
-- Mr Steven John Norris joined the company on 10th October 2014
in the position of Independent Non-Executive Director. Mr Norris
has simultaneously taken on the role of Deputy Chairman of the
Board and will assist Optare in working with the UK bus industry to
achieve greener bus travel and improved air quality in the UK. Mr
Norris, former MP for Oxford East and Epping Forest, has notable
experience in the transport industry, being former Parliamentary
Under-Secretary of State for Transport and Minister for Transport
in London. Steven is either currently or has previously held roles
as Chairman of the National Cycling Strategy Board, Director
General of the Road Haulage Association and President of the Motor
Cycle Industry Association, a Commissioner with the Independent
Transport Commission, and a patron of the charities, Sustrans (a
British charity to promote sustainable transport) and of the
Campaign for Better Transport (UK) Trust.
Outlook
-- The Company anticipates that trading will remain difficult in
the short term, but with a full product range to offer to the UK
market, higher base volumes from the major groups and conversion of
more export tenders, the future looks bright for the Company.
Enrico Vassallo John Fickling
Chief Executive Officer Chairman
Date Date
Consolidated income statement for the six months ended
30th September 2014 (unaudited)
Unaudited Unaudited Audited
6 month 6 month
period period 12 month
ended ended 30 period
30 September September ended 31
2014 2013 March 2014
GBP000's GBP000's GBP000's
Revenue 29,396 32,413 56,947
Cost of Sales (26,610) (29,083) (50,826)
Gross profit 2,786 3,330 6,121
Administrative expenses (4,103) (3,955) (8,039)
Distribution costs (497) (455) (499)
Amortisation of intangibles (263) (278) (624)
Loss from operations (2,077) (1,358) (3,041)
Finance costs (586) (458) (1,020)
Loss for the period from
continuing operations (2,663) (1,816) (4,061)
Loss on ordinary activities
before taxation (2,663) (1,816) (4,061)
Taxation - - -
Loss attributable to the
equity holders of the parent
company (2,663) (1,816) (4,061)
============== =========== ============
Earnings/(loss) per ordinary
share
From continuing operations
after exceptional items
(basic and diluted) (0.12)p (0.08)p (0.18)p
From continuing operations
before exceptional items
(basic and diluted) (0.12)p (0.08)p (0.18)p
There were no recognised gains or losses in the period other
than the profit for the period and therefore no statement of
recognised income and expenses is presented.
Consolidated balance sheet as at 30th September 2014
(unaudited)
Unaudited Unaudited Audited
6 month 6 month period 12 month
period ended ended 30 period ended
30 September September 31 March
2014 2013 2014
GBP000's GBP000's GBP000's
Non-current assets
Goodwill 8,574 8,574 8,574
Other intangible assets 8,600 8,426 8,324
Property, plant equipment 3,192 3,484 3,300
20,366 20,484 20,198
============================================================= ======================= ==============
Current assets
Inventories 8,812 6,046 12,423
Trade and other receivables 6,994 9,383 7,998
15,806 15,429 20,421
------------------------------------------------------------- ----------------------- --------------
Total assets 36,172 35,913 40,619
============================================================= ======================= ==============
Current liabilities
Trade and other payables 16,554 13,610 18,632
Bank loans and overdrafts 10,381 9,344 10,092
Provisions 1,843 2,567 1,589
Obligations under finance leases 69 69 64
28,847 25,590 30,377
============================================================= ======================= ==============
Non current liabilities
Bank loans 15,000 15,000 15,000
Provisions 3,667 1,727 3,940
Obligations under finance leases 120 150 101
18,787 16,877 19,041
------------------------------------------------------------- ----------------------- --------------
Total liabilities 47,634 42,467 49,418
============================================================= ======================= ==============
Net Liabilities (11,462) (6,554) (8,799)
============================================================= ======================= ==============
Equity
Called up share capital 9,005 9,005 9,005
Share premium 32,396 32,396 32,396
Share based payment reserve 42 42 42
Merger reserve 5,542 5,542 5,542
Retained loss (58,447) (53,539) (55,784)
Total equity attributable to equity
holders of the parent (11,462) (6,554) (8,799)
============================================================= ======================= ==============
Consolidated Cash flow Statement for the six month period ended
30(th) September 2014 (unaudited)
Unaudited Unaudited Audited Audited
6 month 6 month 12 month
period ended period ended period
30 September 30 September ended 31
2014 2013 March 2014
GBP000's GBP000's GBP000's
Operating activities
Loss before tax (2,663) (1,816) (4,061)
Tax - - -
Depreciation and amortisation 675 568 1,148
Share based payments - - -
Net finance expense 586 458 1,020
Loss on disposal of fixed assets - - 4
Operating cash flows before movements
in working capital (1,402) (790) (1,889)
======================================== ====================== ==============
Movement in inventories 3,611 4,292 (2,083)
Movement in trade and other receivables 1,004 (1,663) (278)
Movement in trade and other payables (2,078) (6,856) (1,834)
Movement in provisions (19) 685 1,918
Cash absorbed by operations 1,116 (4,332) (4,166)
======================================== ====================== ==============
Interest paid (586) (458) (1,020)
Net cash flow from operating activities 530 (4,790 ) (5,186)
======================================== ====================== ==============
Investing activities
Purchase of property, plant and equipment (304) (418) (543)
Internal capitalised costs (539) (433) (678)
Net cash flow from investing activities (843) (851) (1,221)
---------------------------------------- ---------------------- --------------
Financing activities
Loan repayments - 7,000 -
Short term loans 221 202 7,476
Hire purchase agreement repayments 24 (15) (69)
Net cash flow from financing activities 245 7,187 7,408
---------------------------------------- ---------------------- --------------
Net increase/(decrease) in cash and
cash equivalents (68) 1,546 1,001
======================================== ====================== ==============
Cash and cash equivalents at the
beginning of the period (4,444) (5,445) (5,445)
---------------------------------------- ---------------------- --------------
Cash and cash equivalents at the
end of the period (4,512) (3,899) (4,444)
======================================== ====================== ==============
Consolidated statement of changes in equity for the six month
period ended 30 September 2014 (unaudited)
Share
based
Share Share Merger Retained payment
Capital Premium Reserve earnings reserve Total
GBP000's GBP000's GBP000's GBP000's GBP000's GBP000's
Balance at 31st March 2014 9,005 32,396 5,542 (55,784) 42 (8,799)
Loss for the period - - - (2,663) - (2,663)
Total comprehensive
income for the year 9,005 32,396 5,542 (58,447) 42 (11,462)
Balance at 30 September 2014 9,005 32,396 5,542 (58,447) 42 (11,462)
--------- --------- --------- ---------- --------- ---------
Notes to the half yearly financial information for the six month
period ended 30 September 2014
1. Basis of preparation
Optare plc (the "Company") is a company incorporated and
domiciled in the UK.
The condensed consolidated interim financial statements of the
Company as at and for the six months ended 31 September 2014
comprise the Company and its subsidiaries (together referred to as
the "Group") and equity account the Group's interest in jointly
controlled entities.
The unaudited consolidated half-yearly financial information for
the half year ended 30 September 2014 has been prepared in
accordance with IAS 34, 'Interim financial reporting' as adopted by
the European Union.
The condensed consolidated interim financial statements have
been prepared in accordance with the recognition and measurement
principles of International Financial Reporting Standards (IFRS) as
adopted in the EU. The current and comparative periods to September
have been prepared using the accounting policies adopted in the
annual financial statements for the period ended 31 March 2014.
The financial information contained in this interim report does
not constitute statutory accounts as defined in section 434 of the
Companies Act 2006. This report has not been audited by the Group's
auditors.
Comparative figures for the period ended 31 March 2014 have been
extracted from the statutory financial statements for that period
which carried an unqualified audit report, did not contain a
statement under section 237(2) or (3) of the Companies Act 1985 and
have been delivered to the Registrar of Companies.
These condensed consolidated interim financial statements were
approved by the company's Board of Director's on the 8(th) December
2014.
2 Principal risks and uncertainties for the six months ending 30 September 2014
As for most businesses, there are a range of risks and
uncertainties facing the Group. The principal risks and
uncertainties are described in the Company's 2014 Annual Report and
Accounts which can be downloaded from the Company's website
(www.optare.com)
3 Loss per ordinary share
The calculation of earnings per ordinary share is based on the
profit or loss for the period divided by the weighted average
number of equity voting shares in issue. There were no potentially
dilutive ordinary shares in existence during the period and so
basic and diluted earnings per share are identical.
Unaudited Unaudited Audited
Six month Six month 12 month
period period period
ended 30 ended 30 ended 31
September September March 2014
2014 2013
GBP000's GBP000's GBP000's
Loss for purposes of basis loss
per share (2,663) (1,816) (4,061)
-------------- -------------- --------------
(net loss for the period attributable
to equity holders of the parent)
Number Number Number
Weighted average number of ordinary
shares for the purposes of basic
earnings per share 2,235,291,827 2,235,291,827 2,235,291,827
Basic and fully diluted loss
per share (0.12)p (0.08)p (0.18)p
Excluding Exceptional items
Loss for purposes of basis loss
per share (2,663) (1,816) (4,061)
-------------- -------------- --------------
(net loss for the period attributable
to equity holders of the parent)
Adjustment to exclude exceptional
costs - - -
Loss from continuing operations
for the purposes of basic earnings
per share (2,663) (1,816) (4,061)
-------------- -------------- --------------
Basic and fully diluted loss
per share (0.12)p (0.08)p (0.18)p
This information is provided by RNS
The company news service from the London Stock Exchange
END
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