TIDMPROV
RNS Number : 1398H
Proventec PLC
24 May 2011
Press Release 24 May 2011
Proventec Plc
("Proventec" or the "Company" or the "Group")
Interim Results
Proventec Plc (AIM:PROV, Alternext:ALTPC), the provider of
specialist steam cleaning technologies and janitorial supplies,
today announces its interim results for the six months to 31 March
2011.
Highlights
-- Turnover for the period of GBP7.5 million (6 months to
31 March 2010: GBP7.1 million)
-- Gross profit for the period of GBP2.5 million (6 months
to 31 March 2010: GBP2.6 million)
-- Loss before tax of GBP715,000 (6 months to 31 March 2010:
GBP1.6 million)
-- Positive results from the Durham and Darlington NHS Trust's
clinical trial using Proventec's steam cleaning equipment
-- Janitorial supplies market remains robust
-- Potential growth opportunity for Industrial steam cleaning
equipment is significant
David Chestnutt, Chief Executive of Proventec, commented:
"Having restructured the Group's finances, the focus during the
period has been on driving sales and developing our markets.
Despite the continued difficult trading conditions, Proventec has
reported a 6% increase in revenues compared to the same period last
year. We have reported a significantly reduced loss compared to the
previous period and the Board strives to identify new growth
opportunities to put the Group in a stronger commercial and
financial position."
For further information, please contact:
Proventec Plc
David Chestnutt, Chief Executive Tel: + 44 (0) 151 706
0626
dchestnutt@proventecplc.com www.proventecplc.com
Seymour Pierce
Nicola Marrin Tel: + 44 (0) 20 7107
8000
Corporate Finance www.seymourpierce.com
Media enquiries:
Abchurch Communications
Henry Harrison-Topham / Simone Elviss Tel: +44 (0) 20 7398
7702
henry.ht@abchurch-group.com www.abchurch-group.com
CHAIRMAN'S STATEMENT
It is just over five and half months since the implementation of
the Scheme of Arrangement in December 2010.
Your Directors have continued to strive to improve the Group's
trading performance and to drive down costs in what remains a very
difficult commercial climate.
The results for the six months to 31 March 2011 reflect these
aims and show some success in achieving them but despite this, the
Group continues to trade at a loss.
The Group's consolidated balance sheet has been strengthened by
the write back of the interest charges that were waived as part of
Scheme, and the new shares have now been issued and the revised
terms of the Loan Note reflected in the Amended and Restated Loan
Note Deed. Both the new shares, which maybe traded on AIM, and the
amended Loan Notes are registered for trading on Alternext, part of
Euronext, in Paris.
Following the implementation of the Scheme, Frank Verell,
Finance Director for Amsterdams Effectenkantoor B.V. ("AEK"), the
Company's adviser in the Netherlands, was invited to join the
Board. His involvement in the Group has been greatly appreciated
and his input welcomed. With the departure of Peter Teerlink in
December 2010, I took up the position of Chairman of the Company
following seven years on the Board as a non-executive director. The
Board joins me in thanking Peter for his contribution to Proventec
over the last five years.
Your Board continues to look for opportunities that will
strengthen the Group and improve its performance. I look forward on
updating shareholders with progress in due course.
Michael Hough
Chairman
23 May 2011
CHIEF EXECUTIVE'S REPORT
The previous accounts for the eighteen months to 30 September
2010 covered a tumultuous period in the Group's existence.
The results for the six months to 31 March 2011 reflect many of
the changes put into effect with the approval of the Scheme of
Arrangement in December 2010.
The Group is making modest progress in reducing the run rate of
trading losses and also reflects the reduction in costs that the
Board has made within the Group. That process is an ongoing
exercise.
Turnover for the six months shows a 6% increase compared to the
same period last year and while our gross profit percentage has
further reduced by 1.5%, the Group has cut its administrative costs
by just under 12% on an annual basis.
The finance costs are greatly reduced following the amendment
and revision to the terms of the Loan Notes but the figure in these
accounts only reflects a period of 113 days from the date of
approval of the Scheme to 31 March 2011 and not a full six months
charge.
The EBITDA loss of GBP423,000 in the six month period is a
considerable improvement in the Group's performance but it is still
a loss and as such these losses must be stemmed as quickly as
possible as Proventec tries to return to profit.
There will be further reorganisation in the steam business
arising from the slow take up from the healthcare sector despite
the excellent results of the Durham and Darlington NHS Trust's
clinical trial, as shown by some of the data released at the
Showcase Hospitals annual forum in March this year.
The sales of larger steam equipment, developed by the Group's
German subsidiary, Frank GmbH, for the industrial sector continues
to grow and there looks to be considerable growth potential in this
market albeit, at present, each customer requires a bespoke
solution.
The turnover in the janitorial side of Proventec's business has
shown great resilience but currency costs and pressures on margins
makes this an extremely competitive business in the current
economic environment.
David Chestnutt
Chief Executive
23 May 2011
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2011
Unaudited Audited Unaudited
31 30 31
March September March
2011 2010 2010
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Property, plant and equipment 331 497 606
Goodwill 5,985 5,985 25,357
Other intangible assets 525 541 4,710
Available for sale financial
assets - - 63
Investments accounted for
using the equity
method 17 17 8
6,858 7,040 30,744
---------- ----------- ----------
Current assets
Inventories 2,850 3,077 2,714
Trade and other receivables 3,690 3,638 4,068
Cash and cash equivalents 488 678 416
7,028 7,393 7,198
Total assets 13,886 14,433 37,942
---------- ----------- ----------
EQUITY AND LIABILITIES
Equity attributable to equity
holders of the parent
Share capital 3,979 1,543 1,543
Other reserves 22,722 11,612 12,294
Retained earnings (24,869) (25,831) (181)
1,831 (12,676) 13,656
Minority interest (49) (31) 101
Total equity 1,783 (12,707) 13,757
---------- ----------- ----------
Non-current liabilities
Long term borrowings 7,265 292 14,649
Deferred tax 72 70 -
Total non-current liabilities 7,337 362 14,649
---------- ----------- ----------
Current liabilities
Trade and other payables 4,766 7,422 6,511
Current portion of long term
borrowings - 19,356 3,025
Total current liabilities 4,766 26,778 9,536
Total liabilities 12,103 27,140 24,185
Total equity and liabilities 13,886 14,433 37,942
---------- ----------- ----------
The financial statements were approved and authorised for issue
by the Board on 23 May 2011 and were signed on its behalf by D
Chestnutt.
CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 MARCH 2011
Unaudited Unaudited
6 months Audited 6 months
to 18 months to
31 March to 30 September 31 March
2011 2010 2010
GBP'000 GBP'000 GBP'000
Continuing operations
Revenue 7,529 19,741 7,089
Cost of sales (5,000) (12,829) (4,457)
Gross profit 2,529 6,912 2,632
Other income -
---------- ----------------- ----------
Administrative expenses
- recurring (3,050) (10,367) (3,419)
Impairment of goodwill - (13,706) -
Impairment of investments - (12) -
Impairment of intangible
assets - (2,842) -
Impairment of receivables - (505) -
Total administrative expenses (3,050) (27,432) (3,419)
Finance costs (194) (733) (852)
Share of associates operating
loss - (54) -
(Loss)/profit before taxation (715) (22,944) (1,639)
Income tax expense - (96) 1
(Loss) for the period from
continuing operations (715) (23,040) (1,638)
Loss for the period from
discontinued operations - (6,413) (955)
Loss for the period (715) (29,453) (2,593)
========== ================= ==========
Attributable to:-
equity shareholders (697) (29,360) (2,603)
Minority interest (18) (93) 10
---------- ----------------- ----------
(715) (29,453) (2,593)
========== ================= ==========
Earnings per share
From continuing operations
Basic (2.27) (155.7) (10.68)
Diluted (2.27) (155.7) (10.68)
From continuing and discontinuing
operations
basic (2.27) (199.2) (16.87)
diluted (2.27) (199.2) (16.87)
---------- ----------------- ----------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 MARCH 2011
Unaudited Audited Unaudited
6 months 18 months 6 months
to to to
31 March 30 September 31 March
2011 2010 2010
GBP'000 GBP'000 GBP'000
Total loss for the period (715) (29,453) (2,593)
Net exchange differences
on translating foreign operations (62) (1,699) (705)
Net interest adjustment on
repayment 1,659 - -
Total comprehensive income
and expense for the period 882 (31,152) (3,298)
---------- -------------- ----------
Attributable to the minority
interest (18) (93) 10
Attributable to equity holders
of the parent 900 (31,152) (3,308)
---------- -------------- ----------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 MARCH 2011
Foreign
Share Share Share Retained currency Share Minority
capital premium options earnings reserve warrants Interest Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the period
ended 31 March
2011
At 1 October 1,543 1,254 - (25,831) 8,887 1,471 (31) (12,707)
-------- -------- -------- --------- --------- --------- --------- ---------
Comprehensive
income
Loss for the
period - - (697) - - (18) (715)
Other
comprehensive
income
Unrealised
exchange
movement - - - - (62) - (62)
Interest
adjustment - - - 1,659 - - - 1,659
Total
comprehensive
income for
the period - - - 962 (62) - (18) 882
Issue of
shares 2,436 11,172 - - - - - 13,608
Movement in
period 2,436 11,172 - 962 (62) - (18) 14,490
-------- -------- -------- --------- --------- --------- --------- ---------
At 31 March
2011 3,979 12,426 - (24,869) 8,825 1,471 (49) 1,783
-------- -------- -------- --------- --------- --------- --------- ---------
For the period
ended 30
September
2010
At 1 April 1,242 155 85 3,444 10,586 1,471 252 17,235
-------- -------- -------- --------- --------- --------- --------- ---------
Comprehensive
income
Loss for the
period - - - (29,360) - - (93) (29,452)
Other
comprehensive
income
Unrealised
exchange
movement - - - - (1,699) - - (1,699)
Total
comprehensive
income for
the period - - - (29,360) (1,699) - (93) (31,152)
Issue of
shares 301 1,099 - - - - - 1,400
Cancellation
of options - - (85) 85 - - - -
On disposal - - - - - - (190) (190)
Movement in
period 301 1,099 (85) (29,275) (1,699) - (283) (29,942)
-------- -------- -------- --------- --------- --------- --------- ---------
At 30
September
2010 1,543 1,254 - (25,831) 8,887 1,471 (31) (12,707)
-------- -------- -------- --------- --------- --------- --------- ---------
For the period
ended 31 March
2010
At 1 October 1,542 1,251 85 2,420 10,189 1,471 268 17,226
------ ------ --- -------- ------- ------ ------ ---------
Comprehensive
income
Loss for the
period - - - (2,601) - - 10 (2,591)
Other
comprehensive
income
Unrealised
exchange
movement - - - - (705) - - (705)
Total
comprehensive
income for
the period - - - (2,601) (705) - 10 (3,296)
Issue of
shares 1 3 - - - - - 4
On disposal - - - - - - (177) (177)
Movement in
period 1 3 - (2,601) (705) - (167) (3,469)
------ ------ --- -------- ------- ------ ------ ---------
At 31 March
2010 1,543 1,254 85 (181) 9,484 1,471 101 (13,757)
------ ------ --- -------- ------- ------ ------ ---------
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 MARCH 2011
Unaudited
Unaudited Audited 6 months
6 months 18 months To
to 31 March to 30 September 31 March
2011 2010 2010
GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Cash generated from continuing
operations (1,464) (2,717) (240)
Interest received - 15 (17)
Interest paid (40) (1,278) (890)
Tax received - 1 -
Net cash flow from continuing
operating activities (1,504) (3.979) (1,147)
------------- ----------------- ----------
Cash flows from investing
activities (Continuing
operations)
Proceeds from sale of available
for sale financial assets 12 50 -
Purchase of property, plant and
equipment (12) (176) 3
Purchase of intangible assets - (44) 10
Increase in investments - (51) (51)
Sale of subsidiary - - (56)
Net cash flow from investing
activities - (221) (94)
------------- ----------------- ----------
Cash flows from financing
activities (Continuing
operations)
(Repayment of) /Proceeds from
new loans 1,090 2,451 783
Proceeds from issue of share
capital - 1,504 4
Payment of finance lease
liabilities (9) (87) (34)
Costs in issuing share capital (278) (104) -
Net cash flow from financing
activities 803 3,764 753
------------- ----------------- ----------
Net cash flow from discontinued
operations 511 19 4
------------- ----------------- ----------
Net decrease in cash and cash
equivalents (190) (417) (484)
Cash and cash equivalents at
beginning of the period 678 1,095 900
Cash and cash equivalents at
end of the period 488 678 416
------------- ----------------- ----------
- Ends -
This information is provided by RNS
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