TIDMRTS
RNS Number : 6094S
Robotic Technology Systems PLC
14 September 2010
Robotic Technology Systems PLC
Interim Results for the six months ended 30 June 2010
RTS is a high technology business supplying engineering solutions, products and
integrated systems to automate scientific and industrial processes. RTS today
announces its interim results for the six months ended 30 June 2010.
+--------------------+-------+----------+---+--------------------+--------------------+
| | 6 months ended | 6 months ended | 12 months ended |
| | 30 June 2010 | 30 June 2009 | 31 December 2009 |
| | GBPM | GBPM | GBPM |
+--------------------+----------------------+--------------------+--------------------+
| | | | |
+--------------------+----------------------+--------------------+--------------------+
| Revenue | 4.9 | 5.5 | 11.8 |
| | | | |
+--------------------+----------------------+--------------------+--------------------+
| | | | |
+--------------------+----------------------+--------------------+--------------------+
| Operating loss | (0.4) | (0.2) | (0.2) |
| before | | | |
| "exceptional" | | | |
| items | | | |
| | | | |
+--------------------+----------------------+--------------------+--------------------+
| | | | |
+--------------------+----------------------+--------------------+--------------------+
| "Exceptional" | (0.2)1 | (0.1) | (0.6) |
| items | | | |
+--------------------+----------------------+--------------------+--------------------+
| Net finance income | 0.0 | 0.2 | 0.5 |
+--------------------+----------------------+--------------------+--------------------+
| Loss before | (0.6) | (0.1) | (0.4) |
| taxation | | | |
+--------------------+----------------------+--------------------+--------------------+
| (Loss)/profit | (0.6) | 0.0 | 0.0 |
| after taxation | | | |
| | | | |
+--------------------+----------------------+--------------------+--------------------+
| (Loss)/profit per | (0.91)p | 0.02p | 0.02p |
| share | | | |
+--------------------+----------------------+--------------------+--------------------+
| Cash and cash | 1.2 | 3.0 | 2.1 |
| equivalents | | | |
+--------------------+----------------------+--------------------+--------------------+
| | | | |
+--------------------+-------+----------+---------------------------------------------+
| | | | | | |
+--------------------+-------+----------+---+--------------------+--------------------+
[1] The breakdown of "exceptional" items can be found in note 4
KEY POINTS
· RTS Group operational performance in the first half of the year was
affected by a low opening order book and high development expenditure
· The Group order book of GBP7.1m at 30 June 2010 has increased by 45% from
the 31 December 2009 year end position.
· The closing cash balance of GBP1.2m (2009 year end: GBP2.1m) does not
contain GBP0.2m of restricted cash included in other receivables and is after
the payment of GBP0.2m for the acquisition of Hatch Science LLC in February
2010. The cash position at 7 September 2010 was GBP1.3m.
· The Group has signed up to a revised four year restructuring agreement
for the loan notes due from Doerfer Industries Inc ("Doerfer"). This requires
Doerfer to pay $2.5m before February 2012, and a total payment of $4.6m (4.6
pence per share) by May 2014.
Chris Brown, Non-Executive Chairman of RTS, said:
"The Group enters the second half of 2010 with an order book that is higher than
at the corresponding period last year, and therefore this should lead to an
improved performance in the second half of the year.
The first six months of this financial year have been challenging for the Group.
The Board continues to make every effort to minimise the operational and
financial risks facing the Group and is constantly looking at ways to improve
the performance of the business and to maximise returns for shareholders."
14 September 2010
Enquiries:
+----------------------------------+-----------------------------+
| Robotic Technology Systems PLC | Tel: 0161 777 2000 |
+----------------------------------+-----------------------------+
| Gary Walsh, Chief Executive | |
+----------------------------------+-----------------------------+
| Jon Sharrock, Finance Director | |
+----------------------------------+-----------------------------+
| | |
+----------------------------------+-----------------------------+
| College Hill | Tel: 020 7457 2020 |
+----------------------------------+-----------------------------+
| | |
+----------------------------------+-----------------------------+
| Jamie Ramsay | |
+----------------------------------+-----------------------------+
| | |
| Collins Stewart Europe Limited | Tel: 020 7523 8350 |
+----------------------------------+-----------------------------+
| | |
+----------------------------------+-----------------------------+
| Stewart Wallace | |
+----------------------------------+-----------------------------+
Chairman's statement
Overview
RTS Group operational performance in the first half of the year was affected by
a low opening order book and high development expenditure.
RTS Life Science has now completed the development of the Automated Blood
Fractionation ("ABF") instrument and with an increased order book this is
expected to lead to an improved performance in the second half of the year.
RTS Flexible Systems has reduced its cost base and has focused on higher margin
consultancy work which has returned the business to profitability, despite a
reduction in revenue.
The closing cash balance of GBP1.2m (2009 year end: GBP2.1m) does not contain
GBP0.2m of restricted cash included in other receivables and is stated after the
payment of GBP0.2m for the acquisition of Hatch Science LLC in February 2010.
The Directors do not recommend the payment of a dividend.
Operating review
RTS Life Science
Following the acquisition of Hatch Science LLC ("Hatch") in February 2010, now
renamed RTS Life Science LLC the Company has benefited from the selling
synergies between the businesses. This has resulted in an improved order input
in the US and an increasing prospect list for Hatch products.
In the automated storage business the Company continues to strengthen its
position in the premium sample storage market. With improvements in our
offering and a more competitive position from the strength of the dollar, the
company has regained market share against US competitors. Further sales of the
entry level SmaRTStoreTM and recently updated Sample-StoreTM provide evidence
that the market is receptive to the industrial quality RTS delivers and also the
additional levels of service that has become a hallmark of the RTS offering.
The Company successfully delivered the first units of its new Tube AuditorTM
instrument to four major pharmaceutical companies in the period. This product,
which was developed at Hatch, analyses and reports valuable quality control data
on the contents of stored samples as they are removed from a controlled storage
environment. With further orders in the period and a growing prospect list the
Board is confident that this new product will be a successful addition to the
company's growing portfolio of storage-related solutions.
Despite unanticipated additional development work needed in the period, the
company continues to make progress with its market leading ABF instrument. With
the completion of the first installation of the ABF500TM and two further orders
for the product in the first half of the year the company is starting to secure
its presence in this growing market.
In addition, using the same technology platform the Company has successfully
completed a significant order with a major biobank to process saliva and
stabilised blood. This demonstrates the versatility of the product, and
potentially opens up a wider market for RTS Life Science.
The company's Drug Delivery business unit continues to increase its share of the
inhaler automation market with further sales of the "Walkaway" range in the
period.
RTS Flexible Systems
RTS Flexible Systems continued to increase its focus on lower risk consultancy
work in the period, which has led to a reduction in sales, but has improved
margins.
The unique skill-set of the Flexible Systems business continues to provide
opportunities across a range of industries and the Company is currently working
on a number of prospects that the Directors believe will convert into orders in
the second half of the year.
The business continued to pursue the recovery of monies owed to it from a
project which originated in 2005. The Company received a notice of judgment from
the Supreme Court on 10 March 2010, in which the court ruled in favour of the
Company's alternative argument. This has resulted in a favourable cost order
being issued on 21 July 2010, with an interim payment of GBP0.08m being received
in August 2010.
The Company's management is not expecting a resolution to this matter until
2011, but remain confident of a successful outcome to the claim.
Financial review
Group turnover decreased to GBP4.9m (2009: GBP5.5m). The lower sales level was
attributable to both businesses.
Gross margins decreased to 29.0% (2009: 35.1%), due primarily to increased
development costs of the ABF instrument
This led to an increased operating loss (before "exceptional" items) of GBP0.4m
(2009: GBP0.2m loss).
The Group recorded "exceptional" operating costs in the period of GBP0.2m,
relating to restructuring and legal costs as explained in note 4 to the
financial statements.
The net cash balance reduced to GBP1.2m (31 December 2009: GBP2.1m). The
reduction is mainly attributable to the acquisition of Hatch Science LLC in
February 2010 and the operational losses in the first half of the year.
The Group received cash payments of GBP0.2m from Doerfer Industries Inc
("Doerfer") in the period. In May 2010 the Group entered into a revised four
year agreement with Doerfer, which reduces the face value of the loan notes to
$3.8m (from $7.6m) provided that Doerfer complies with a new accelerated
repayment schedule. This requires repayments of approximately $2.5m before
February 2012, and a total payment of $4.6m (4.6 pence per share) by May 2014.
The Group made a full provision against these loan notes in the year ended 31
December 2008.
Included within other receivables is GBP1.3m relating to a receivable in RTS
Life Science LLC. This relates to a contract that the company entered into
prior to acquisition. On receipt of this amount the Company has an obligation,
subject to rights of set-off, to pay up to GBP1.3m to its former shareholders.
This amount is fully provided within other payables.
In the Group's Annual Report for the period ended 31 December 2009 it was stated
that the Group's activities exposed it to a number of operational and financial
risks. The principal risks are: managing economic conditions, delivering
complex projects, cost management, working capital management, financial risks,
the dispute with a former customer in RTS Flexible Systems and competitor
activity.
Outlook
The Group enters the second half of 2010 with an order book that is
significantly higher than at the corresponding period last year and therefore
this should lead to an improved performance in the second half of the year. The
first six months of this financial year have been challenging for the Group, as
it finalised development of the ABF product and integrated Hatch Science into
the Life Science business. The Board continues to make every effort to minimise
the operational and financial risks facing the Group and is constantly looking
at ways to improve the performance of the business, manage its financial
position and maximise returns for shareholders.
Chris Brown, Non-Executive Chairman
Gary Walsh, Chief Executive
14 September 2010
Condensed consolidated statement of comprehensive income
for the six months ended 30 June 2010
+----------------------------------------+-------+-----------+---------+-----------+
| | | Six | Six | Year |
| | | months | months | |
+----------------------------------------+-------+-----------+---------+-----------+
| | | ended | ended | ended |
+----------------------------------------+-------+-----------+---------+-----------+
| | | 30 June | 30 June | 31 |
| | | | | December |
+----------------------------------------+-------+-----------+---------+-----------+
| | | 2010 | 2009 | 2009 |
+----------------------------------------+-------+-----------+---------+-----------+
| | Notes | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------------+-------+-----------+---------+-----------+
| Revenue | | | | |
+----------------------------------------+-------+-----------+---------+-----------+
| Continuing operations | 3 | 4,639 | 5,461 | 11,812 |
+----------------------------------------+-------+-----------+---------+-----------+
| Acquisitions | | 289 | - | - |
+----------------------------------------+-------+-----------+---------+-----------+
| Revenue - continuing operations | | 4,928 | 5,461 | 11,812 |
+----------------------------------------+-------+-----------+---------+-----------+
| Cost of sales | | (3,498) | (3,546) | (7,933) |
+----------------------------------------+-------+-----------+---------+-----------+
| Gross profit | | 1,430 | 1,915 | 3,879 |
+----------------------------------------+-------+-----------+---------+-----------+
| Distribution expenses | | (660) | (593) | (1,163) |
+----------------------------------------+-------+-----------+---------+-----------+
| Administration expenses | | (1,617) | (1,682) | (3,692) |
+----------------------------------------+-------+-----------+---------+-----------+
| Other operating income | | 227 | 33 | 134 |
+----------------------------------------+-------+-----------+---------+-----------+
| Operating loss | | | | |
+----------------------------------------+-------+-----------+---------+-----------+
| Continuing operations | | (534) | (327) | (842) |
+----------------------------------------+-------+-----------+---------+-----------+
| Acquisitions | | (86) | - | - |
+----------------------------------------+-------+-----------+---------+-----------+
| | | (620) | (327) | (842) |
+----------------------------------------+-------+-----------+---------+-----------+
| Operating loss before exceptional | | (380) | (184) | (216) |
| items | | | | |
+----------------------------------------+-------+-----------+---------+-----------+
| Exceptional items included in | 4 | (240) | (143) | (626) |
| administrative expenses above | | | | |
+----------------------------------------+-------+-----------+---------+-----------+
| Loss before interest and taxation | | (620) | (327) | (842) |
+----------------------------------------+-------+-----------+---------+-----------+
| Financial income | | 24 | 193 | 481 |
+----------------------------------------+-------+-----------+---------+-----------+
| Financial expenses | | (6) | - | (8) |
+----------------------------------------+-------+-----------+---------+-----------+
| Net financing income | | 18 | 193 | 473 |
+----------------------------------------+-------+-----------+---------+-----------+
| Loss before taxation | | (602) | (134) | (369) |
+----------------------------------------+-------+-----------+---------+-----------+
| Taxation | | (5) | 143 | 379 |
+----------------------------------------+-------+-----------+---------+-----------+
| (Loss)/profit for the period | | (607) | 9 | 10 |
+----------------------------------------+-------+-----------+---------+-----------+
| Other comprehensive income | | | | |
+----------------------------------------+-------+-----------+---------+-----------+
| Other comprehensive income for the | | - | - | - |
| period | | | | |
+----------------------------------------+-------+-----------+---------+-----------+
| Total comprehensive (loss)/income for | | (607) | 9 | 10 |
| the period | | | | |
+----------------------------------------+-------+-----------+---------+-----------+
| Attributable to: | | | | |
+----------------------------------------+-------+-----------+---------+-----------+
| Equity holders of the parent | | (570) | 9 | 10 |
+----------------------------------------+-------+-----------+---------+-----------+
| Non controlling interests | | (37) | - | - |
+----------------------------------------+-------+-----------+---------+-----------+
| | | (607) | 9 | 10 |
+----------------------------------------+-------+-----------+---------+-----------+
| | | | | |
+----------------------------------------+-------+-----------+---------+-----------+
| Basic and diluted (loss)/earnings per | 5 | (0.91)p | 0.02p | 0.02p |
| share | | | | |
+----------------------------------------+-------+-----------+---------+-----------+
Condensed consolidated statement of financial position
at 30 June 2010
+-----------------------------------------------+-----------+---------+-----------+
| | 30 June | 30 June | 31 |
| | | | December |
+-----------------------------------------------+-----------+---------+-----------+
| | 2010 | 2009 | 2009 |
+-----------------------------------------------+-----------+---------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+-----------------------------------------------+-----------+---------+-----------+
| Non-current assets | | | |
+-----------------------------------------------+-----------+---------+-----------+
| Property, plant and equipment | 618 | 691 | 640 |
+-----------------------------------------------+-----------+---------+-----------+
| Intangible assets | 1,182 | 1,244 | 1,019 |
+-----------------------------------------------+-----------+---------+-----------+
| Deferred tax asset | 543 | 371 | 543 |
+-----------------------------------------------+-----------+---------+-----------+
| Total non-current assets | 2,343 | 2,306 | 2,202 |
+-----------------------------------------------+-----------+---------+-----------+
| Current assets | | | |
+-----------------------------------------------+-----------+---------+-----------+
| Inventories | 115 | 168 | 111 |
+-----------------------------------------------+-----------+---------+-----------+
| Current tax receivable | - | 102 | - |
+-----------------------------------------------+-----------+---------+-----------+
| Trade and other receivables | 6,294 | 3,422 | 4,864 |
+-----------------------------------------------+-----------+---------+-----------+
| Cash and cash equivalents | 1,235 | 3,028 | 2,092 |
+-----------------------------------------------+-----------+---------+-----------+
| Total current assets | 7,644 | 6,720 | 7,067 |
+-----------------------------------------------+-----------+---------+-----------+
| Total assets | 9,987 | 9,026 | 9,269 |
+-----------------------------------------------+-----------+---------+-----------+
| Current liabilities | | | |
+-----------------------------------------------+-----------+---------+-----------+
| Trade and other payables | (6,363) | (4,211) | (5,169) |
+-----------------------------------------------+-----------+---------+-----------+
| Total current liabilities | (6,363) | (4,211) | (5,169) |
+-----------------------------------------------+-----------+---------+-----------+
| Non-current liabilities | | | |
+-----------------------------------------------+-----------+---------+-----------+
| Other liabilities | (466) | (536) | (494) |
+-----------------------------------------------+-----------+---------+-----------+
| Provisions | (449) | (411) | (366) |
+-----------------------------------------------+-----------+---------+-----------+
| Total non-current liabilities | (915) | (947) | (860) |
+-----------------------------------------------+-----------+---------+-----------+
| Total liabilities | (7,278) | (5,158) | (6,029) |
+-----------------------------------------------+-----------+---------+-----------+
| Net assets | 2,709 | 3,868 | 3,240 |
+-----------------------------------------------+-----------+---------+-----------+
| | | | |
+-----------------------------------------------+-----------+---------+-----------+
| Equity | | | |
+-----------------------------------------------+-----------+---------+-----------+
| Share capital | 623 | 623 | 623 |
+-----------------------------------------------+-----------+---------+-----------+
| Share premium | 680 | 680 | 680 |
+-----------------------------------------------+-----------+---------+-----------+
| Currency translation reserve | (126) | (126) | (126) |
+-----------------------------------------------+-----------+---------+-----------+
| Retained earnings | 1,480 | 2,676 | 2,048 |
+-----------------------------------------------+-----------+---------+-----------+
| Total equity attributable to equity | 2,657 | 3,853 | 3,225 |
| shareholders | | | |
+-----------------------------------------------+-----------+---------+-----------+
| Non controlling interests | 52 | 15 | 15 |
+-----------------------------------------------+-----------+---------+-----------+
| Total equity | 2,709 | 3,868 | 3,240 |
+-----------------------------------------------+-----------+---------+-----------+
Condensed consolidated statement of changes in equity
for the six months ended 30 June 2009
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| | | | | | | |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| | Share | Share | Currency | Retained | Non | |
| | | | translation | | controlling | |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| | Capital | premium | reserve | earnings | interest | Total |
| | | | | | | |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| For the six months ended 30 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| June 2010 | | | | | | |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| Balance at 1 January 2010 | 623 | 680 | (126) | 2,048 | 15 | 3,240 |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| Total comprehensive | | | | | | |
| (loss)/income for the period | | | | | | |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| (Loss)/profit | - | - | - | (570) | (37) | (607) |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| Total comprehensive | - | - | - | (570) | (37) | (607) |
| (loss)/income for the period | | | | | | |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| Transactions recorded | | | | | | |
| directly in equity | | | | | | |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| Arising on acquisition of | | | | | 74 | 74 |
| subsidiary | | | | | | |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| Share-based payment | - | - | - | 2 | - | 2 |
| transactions | | | | | | |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| Total transactions recorded | - | - | - | 2 | 74 | 76 |
| directly in equity | | | | | | |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| Balance at 30 June 2010 | 623 | 680 | (126) | 1,480 | 52 | 2,709 |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| | | | | | | |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| | Share | Share | Currency | Retained | Non | |
| | | | translation | | controlling | |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| | capital | premium | reserve | earnings | interest | Total |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| For the six months ended 30 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| June 2009 | | | | | | |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| Balance at 1 January 2009 | 623 | 680 | (126) | 2,634 | 15 | 3,826 |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| Total comprehensive income | | | | | | |
| for the period | | | | | | |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| Profit | - | - | - | 9 | - | 9 |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| Total comprehensive income | - | - | - | 9 | - | 9 |
| for the period | | | | | | |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| Transactions recorded | | | | | | |
| directly in equity | | | | | | |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| Share-based payment | - | - | - | 33 | - | 33 |
| transactions | | | | | | |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| Total transactions recorded | - | - | - | 33 | - | 33 |
| directly in equity | | | | | | |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
| Balance at 30 June 2009 | 623 | 680 | (126) | 2,676 | 15 | 3,868 |
+-------------------------------+---------+---------+-------------+----------+-------------+---------+
+-----------------------------+---------+---------+-------------+----------+-------------+---------+
| | | | | | | |
+-----------------------------+---------+---------+-------------+----------+-------------+---------+
| | Share | Share | Currency | Retained | Non | |
| | | | translation | | controlling | |
+-----------------------------+---------+---------+-------------+----------+-------------+---------+
| | capital | premium | reserve | earnings | interest | Total |
+-----------------------------+---------+---------+-------------+----------+-------------+---------+
| For the year ended 31 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| December 2009 | | | | | | |
+-----------------------------+---------+---------+-------------+----------+-------------+---------+
| Balance at 1 January 2009 | 623 | 680 | (126) | 2,634 | 15 | 3,826 |
+-----------------------------+---------+---------+-------------+----------+-------------+---------+
| Total comprehensive income | | | | | | |
| for the period | | | | | | |
+-----------------------------+---------+---------+-------------+----------+-------------+---------+
| Profit | - | - | - | 10 | - | 10 |
+-----------------------------+---------+---------+-------------+----------+-------------+---------+
| Total comprehensive income | - | - | - | 2,644 | - | 2,644 |
| for the period | | | | | | |
+-----------------------------+---------+---------+-------------+----------+-------------+---------+
| Transactions recorded | | | | | | |
| directly in equity | | | | | | |
+-----------------------------+---------+---------+-------------+----------+-------------+---------+
| Share-based payment | - | - | - | 27 | - | 27 |
| transactions | | | | | | |
+-----------------------------+---------+---------+-------------+----------+-------------+---------+
| Dividends to equity holders | - | - | - | (623) | - | (623) |
+-----------------------------+---------+---------+-------------+----------+-------------+---------+
| Total transactions recorded | - | - | - | (596) | - | 596 |
| directly in equity | | | | | | |
+-----------------------------+---------+---------+-------------+----------+-------------+---------+
| Balance at 31 December 2009 | 623 | 680 | (126) | 2,048 | 15 | 3,240 |
+-----------------------------+---------+---------+-------------+----------+-------------+---------+
Condensed consolidated statement of cash flows
for the six months ended 30 June 2009
+--+---------------------------------------+------------+-----------+-----------+
| | Six months | Six | Year |
| | | months | |
+------------------------------------------+------------+-----------+-----------+
| | ended | ended | ended |
+------------------------------------------+------------+-----------+-----------+
| | 30 June | 30 June | 31 |
| | | | December |
+------------------------------------------+------------+-----------+-----------+
| | 2010 | 2009 | 2009 |
+------------------------------------------+------------+-----------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------------+------------+-----------+-----------+
| Continuing operations | | | |
+------------------------------------------+------------+-----------+-----------+
| (Loss)/profit for the period | (607) | 9 | 10 |
+------------------------------------------+------------+-----------+-----------+
| Adjusted for: | | | |
+------------------------------------------+------------+-----------+-----------+
| | Taxation | 5 | (143) | (379) |
+--+---------------------------------------+------------+-----------+-----------+
| | Depreciation charge | 89 | 92 | 182 |
+--+---------------------------------------+------------+-----------+-----------+
| | Amortisation | 23 | 42 | 79 |
+--+---------------------------------------+------------+-----------+-----------+
| | Impairment on non-current asset | - | - | 189 |
+--+---------------------------------------+------------+-----------+-----------+
| | Foreign exchange (gains)/losses | (2) | 37 | 34 |
+--+---------------------------------------+------------+-----------+-----------+
| | Equity-settled share-based payment | 2 | 33 | 27 |
| | charges | | | |
+--+---------------------------------------+------------+-----------+-----------+
| | Finance expense | 5 | - | 8 |
+--+---------------------------------------+------------+-----------+-----------+
| | Finance income | (24) | (193) | (481) |
+--+---------------------------------------+------------+-----------+-----------+
| | (509) | (123) | (331) |
+------------------------------------------+------------+-----------+-----------+
| Changes in working capital | | | |
+------------------------------------------+------------+-----------+-----------+
| (Increase)/decrease in inventories | (3) | 11 | 68 |
+------------------------------------------+------------+-----------+-----------+
| Decrease in receivables | 281 | 2,293 | 854 |
+------------------------------------------+------------+-----------+-----------+
| Decrease in payables | (388) | (2,288) | (1,387) |
+------------------------------------------+------------+-----------+-----------+
| Decrease in provisions | (24) | (54) | (102) |
+------------------------------------------+------------+-----------+-----------+
| Cash used in operating activities | (643) | (161) | (898) |
+------------------------------------------+------------+-----------+-----------+
| Finance expense paid | (3) | - | - |
+------------------------------------------+------------+-----------+-----------+
| Finance income received | 21 | 186 | 434 |
+------------------------------------------+------------+-----------+-----------+
| Taxation (paid)/received | (5) | 324 | 489 |
+------------------------------------------+------------+-----------+-----------+
| Net cash (used in)/generated from | (630) | 349 | 25 |
| operating activities | | | |
+------------------------------------------+------------+-----------+-----------+
| Cash flows from investing activities | | | |
+------------------------------------------+------------+-----------+-----------+
| Payments to acquire property, plant and | (45) | (103) | (142) |
| equipment | | | |
+------------------------------------------+------------+-----------+-----------+
| Payments to acquire intangible | (4) | (2) | (3) |
| non-current assets | | | |
+------------------------------------------+------------+-----------+-----------+
| Receipt in respect of loan notes | - | - | 47 |
+------------------------------------------+------------+-----------+-----------+
| Acquisition of subsidiaries net of cash | (192) | - | - |
| acquired | | | |
+------------------------------------------+------------+-----------+-----------+
| Capital repayment of loan | (7) | - | - |
+------------------------------------------+------------+-----------+-----------+
| Net cash used in investing activities | (248) | (105) | (98) |
+------------------------------------------+------------+-----------+-----------+
| Cash flows from financing activities | | | |
+------------------------------------------+------------+-----------+-----------+
| Dividend paid | - | - | (623) |
+------------------------------------------+------------+-----------+-----------+
| Net cash used in financing activities | - | - | (623) |
+------------------------------------------+------------+-----------+-----------+
| Net (decrease)/increase in cash and cash | (878) | 244 | (696) |
| equivalents | | | |
+------------------------------------------+------------+-----------+-----------+
| Cash and cash equivalents at beginning | 2,092 | 2,824 | 2,824 |
| of period | | | |
+------------------------------------------+------------+-----------+-----------+
| Exchange gains/(losses) on cash and cash | 21 | (40) | (36) |
| equivalents | | | |
+------------------------------------------+------------+-----------+-----------+
| Cash and cash equivalents at end of | 1,235 | 3,028 | 2,092 |
| period | | | |
+--+---------------------------------------+------------+-----------+-----------+
Notes to the financial information
for the six months ended 30 June 2009
1 Basis of preparation
The consolidated interim financial statements of Robotic Technology Systems PLC
(the "Company") for the six months ended 30 June 2010 comprise the Company and
its subsidiaries (together referred to as the "Group").
The consolidated interim financial statements are the responsibility of the
Directors and were authorised and approved by the Board of Directors for
issuance on 13 September 2010.
The interim financial statements of Robotic Technology Systems PLC for the
period ended 30 June 2010 are unaudited and do not comprise statutory accounts
within the meaning of Sections 434 and 435 of the Companies Act 2006.
This interim financial information has been prepared on the basis of the
recognition and measurement requirements of adopted IFRSs. These interim
financial statements have not been prepared in accordance with IAS 34 "Interim
Financial Reporting". They do not include all of the information required for
full annual financial statements, and should be read in conjunction with the
consolidated financial statements of the Group for the year ended 31 December
2009.
The comparative figures for the financial year ended 31 December 2009 are not
the Company's statutory accounts for that financial year. These accounts, which
were prepared under adopted IFRSs, have been reported on by the Company's
auditors and delivered to the registrar of companies. The report of the
auditors was (i) unqualified, (ii) did not include a reference to any matters to
which the auditors drew attention by way of emphasis without qualifying their
reports, and (iii) did not contain a statement under Section 498 (2) or (3) of
the Companies Act 2006.
The accounting policies have been applied consistently throughout the Group for
purposes of these consolidated interim financial statements.
2 Change in accounting policy
From 1 January 2010 the Group has applied IFRS 3 Business Combinations (2008) in
accounting for business combinations. The change has been applied prospectively
and had no impact on earnings per share in the current period.
For acquisitions on or after 1 January 2010, the Group measures goodwill as the
fair value of the consideration transferred and the recognised amount of any non
controlling interest in the acquiree, less the net recognised amount (generally
fair value) of the identifiable assets acquired and liabilities assumed, all
measured as of the acquisition date. When the excess is negative, a bargain
purchase gain is recognised immediately in profit or loss.
The Group elects on a transaction-by-transaction basis whether to measure non
controlling interests at fair value, or at their proportionate share of the
recognised amount of the identifiable net assets of the acquiree, at the
acquisition date.
Transaction costs, other than those associated with the issue of debt or equity
securities, that the Group incurs in connection with a business combination are
expensed as incurred.
When share-based payment awards are required to be exchanged for awards held by
the acquiree's employees and relate to past services, then all or a portion of
the amount of the acquirer's replacement awards is included in measuring the
consideration transferred in the business combination. This determination is
based on the market value of the replacement awards compared with the market
based value of the acquiree's awards and the extent to which the replacements
awards relate to past and/or future service.
3 Segmental analysis
The Group has two main trading segments which are the Group's strategic business
units. The strategic business units offer different products and services and
are managed separately because they require different technology and strategies.
For each of the strategic business units, the Board reviews internal management
reports on a monthly basis. For the purposes of IFRS 8 it is these strategic
business units that form the Group's reportable segments and these are in line
with the basis of segmentation adopted in the consolidated financial statements
for the year ended 31 December 2009. The following summary describes the
operations in each of the Group's reportable segments:
- RTS Life Science
A supplier of automated systems and products for sample storage and testing
within the laboratory environment. The market encompasses drug discovery and
drug delivery applications within pharmaceutical biobanking and biotechnology
organisations along with sample preparation and storage for medical research,
clinical trials and pharmaceutical manufacturing applications.
- RTS Flexible Systems
A robotic system integrator, supplying advanced robotic automation solutions to
the food, medical and consumer goods industries. The business provides
end-of-line packaging and handling systems with solutions based upon robotics
and leading commercially available components integrated with our own vision
technology to identify, track and analyse the products they are handling.
- Others
Non-trading subsidiaries of the Group.
Income Statement
+---------------------------+-----------+----------+------------+----------+--------------+
| | Flexible | Life | Total | Other | Total as |
| | Systems | Science | reportable | segments | per |
| | | | segments | | consolidated |
| | | | | | accounts |
+---------------------------+-----------+----------+------------+----------+--------------+
| | Six | Six | Six | Six | Six |
| | months | months | months | months | months |
+---------------------------+-----------+----------+------------+----------+--------------+
| | ended | ended | ended | ended | ended |
+---------------------------+-----------+----------+------------+----------+--------------+
| | 30 June | 30 June | 30 June | 30 June | 30 June |
+---------------------------+-----------+----------+------------+----------+--------------+
| | 2010 | 2010 | 2010 | 2010 | 2010 |
+---------------------------+-----------+----------+------------+----------+--------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------------------+-----------+----------+------------+----------+--------------+
| Revenue (external) | 926 | 3,960 | 4,886 | 42 | 4,928 |
+---------------------------+-----------+----------+------------+----------+--------------+
| Revenue (inter-segmental) | 11 | 99 | 110 | (110) | - |
+---------------------------+-----------+----------+------------+----------+--------------+
| Depreciation | (7) | (54) | (61) | (28) | (89) |
+---------------------------+-----------+----------+------------+----------+--------------+
| Amortisation | (2) | (19) | (21) | (2) | (23) |
+---------------------------+-----------+----------+------------+----------+--------------+
| Grant income | - | - | - | 19 | 19 |
+---------------------------+-----------+----------+------------+----------+--------------+
| Inter-segmental | (16) | 16 | - | - | - |
| transactions | | | | | |
+---------------------------+-----------+----------+------------+----------+--------------+
| Operating (loss)/profit | 35 | (381) | | (36) | (382) |
| before exceptional items | | | (346) | | |
| and exchange | | | | | |
| (losses)/gains | | | | | |
+---------------------------+-----------+----------+------------+----------+--------------+
| Exchange (losses)/gains | - | (9) | (9) | 11 | 2 |
+---------------------------+-----------+----------+------------+----------+--------------+
| Exceptional items | (164) | - | (164) | (76) | (240) |
| included in | | | | | |
| administrative expenses | | | | | |
+---------------------------+-----------+----------+------------+----------+--------------+
| Loss before interest and | (129) | (390) | (519) | (101) | (620) |
| taxation | | | | | |
+---------------------------+-----------+----------+------------+----------+--------------+
| Net financing | - | (6) | (6) | 24 | 18 |
| income/(expenses) | | | | | |
+---------------------------+-----------+----------+------------+----------+--------------+
| Loss before taxation | (129) | (396) | (525) | (77) | (602) |
+---------------------------+-----------+----------+------------+----------+--------------+
| Taxation | | | | | (5) |
+---------------------------+-----------+----------+------------+----------+--------------+
| Loss after taxation | | | | | (607) |
+---------------------------+-----------+----------+------------+----------+--------------+
+---------------------------+-----------+----------+------------+----------+--------------+
| | Flexible | Life | Total | Other | Total as |
| | Systems | Science | reportable | segments | per |
| | | | segments | | consolidated |
| | | | | | accounts |
+---------------------------+-----------+----------+------------+----------+--------------+
| | Year | Year | Year | Year | Year |
+---------------------------+-----------+----------+------------+----------+--------------+
| | ended | ended | ended | ended | ended |
+---------------------------+-----------+----------+------------+----------+--------------+
| | 31 Dec | 31 Dec | 31 Dec | 31 Dec | 31 Dec |
+---------------------------+-----------+----------+------------+----------+--------------+
| | 2009 | 2009 | 2009 | 2009 | 2009 |
+---------------------------+-----------+----------+------------+----------+--------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------------------+-----------+----------+------------+----------+--------------+
| Revenue (external) | 2,444 | 9,291 | 11,735 | 77 | 11,812 |
+---------------------------+-----------+----------+------------+----------+--------------+
| Revenue (inter-segmental) | 64 | - | 64 | (64) | - |
+---------------------------+-----------+----------+------------+----------+--------------+
| Depreciation | (13) | (87) | (100) | (82) | (182) |
+---------------------------+-----------+----------+------------+----------+--------------+
| Amortisation | (40) | (37) | (77) | (2) | (79) |
+---------------------------+-----------+----------+------------+----------+--------------+
| Grant income | - | - | - | 40 | 40 |
+---------------------------+-----------+----------+------------+----------+--------------+
| Inter-segmental | (57) | 33 | (24) | 24 | - |
| transactions | | | | | |
+---------------------------+-----------+----------+------------+----------+--------------+
| Operating (loss)/profit | (337) | 491 | | (336) | (182) |
| before exceptional items | | | 154 | | |
| and exchange | | | | | |
| (losses)/gains | | | | | |
+---------------------------+-----------+----------+------------+----------+--------------+
| Exchange losses | (2) | (2) | (4) | (30) | (34) |
+---------------------------+-----------+----------+------------+----------+--------------+
| Exceptional items | (398) | - | (398) | (228) | (626) |
| included in | | | | | |
| administrative expenses | | | | | |
+---------------------------+-----------+----------+------------+----------+--------------+
| (Loss)/profit before | (737) | 489 | (248) | (594) | (842) |
| interest and taxation | | | | | |
+---------------------------+-----------+----------+------------+----------+--------------+
| Net financing income | 2 | 272 | 274 | 199 | 473 |
+---------------------------+-----------+----------+------------+----------+--------------+
| (Loss)/profit before | (735) | 761 | 26 | (395) | (369) |
| taxation | | | | | |
+---------------------------+-----------+----------+------------+----------+--------------+
| Taxation | | | | | 379 |
+---------------------------+-----------+----------+------------+----------+--------------+
| Profit after taxation | | | | | 10 |
+---------------------------+-----------+----------+------------+----------+--------------+
+---------------------------+-----------+----------+------------+----------+--------------+
| | Flexible | Life | Total | Other | Total as |
| | Systems | Science | reportable | segments | per |
| | | | segments | | consolidated |
| | | | | | accounts |
+---------------------------+-----------+----------+------------+----------+--------------+
| | Six | Six | Six | Six | Six |
| | months | months | months | months | months |
+---------------------------+-----------+----------+------------+----------+--------------+
| | ended | ended | ended | ended | ended |
+---------------------------+-----------+----------+------------+----------+--------------+
| | 30 Jun | 30 Jun | 30 Jun | 30 Jun | 30 Jun |
+---------------------------+-----------+----------+------------+----------+--------------+
| | 2009 | 2009 | 2009 | 2009 | 2009 |
+---------------------------+-----------+----------+------------+----------+--------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------------------+-----------+----------+------------+----------+--------------+
| Revenue (external) | 1,237 | 4,154 | 5,391 | 70 | 5,461 |
+---------------------------+-----------+----------+------------+----------+--------------+
| Revenue (inter-segmental) | 54 | - | 54 | - | 54 |
+---------------------------+-----------+----------+------------+----------+--------------+
| Depreciation | (7) | (41) | (48) | (44) | (92) |
+---------------------------+-----------+----------+------------+----------+--------------+
| Amortisation | (20) | (19) | (39) | (3) | (42) |
+---------------------------+-----------+----------+------------+----------+--------------+
| Grant income | - | - | - | 19 | 19 |
+---------------------------+-----------+----------+------------+----------+--------------+
| Inter-segmental | (39) | 8 | (31) | 31 | - |
| transactions | | | | | |
+---------------------------+-----------+----------+------------+----------+--------------+
| Operating (loss)/profit | (258) | 349 | | (238) | (147) |
| before exceptional items | | | 91 | | |
| and exchange | | | | | |
| (losses)/gains | | | | | |
+---------------------------+-----------+----------+------------+----------+--------------+
| Exchange (losses)/gains | (1) | 3 | 2 | (39) | (37) |
+---------------------------+-----------+----------+------------+----------+--------------+
| Exceptional items | (95) | - | (95) | (48) | (143) |
| included in | | | | | |
| administrative expenses | | | | | |
+---------------------------+-----------+----------+------------+----------+--------------+
| (Loss)/profit before | (354) | 352 | (2) | (325) | (327) |
| interest and taxation | | | | | |
+---------------------------+-----------+----------+------------+----------+--------------+
| Net financing | 2 | 290 | 292 | (99) | 193 |
| income/(expenses) | | | | | |
+---------------------------+-----------+----------+------------+----------+--------------+
| (Loss)/profit before | (352) | 642 | 290 | (424) | (134) |
| taxation | | | | | |
+---------------------------+-----------+----------+------------+----------+--------------+
| Taxation | | | | | 143 |
+---------------------------+-----------+----------+------------+----------+--------------+
| Profit after taxation | | | | | 9 |
+---------------------------+-----------+----------+------------+----------+--------------+
Balance Sheet
+------------------------+----------+---------+------------+----------+--------------+
| | Flexible | Life | Total | Other | Total as |
| | Systems | Science | reportable | segments | per |
| | | UK | segments | | consolidated |
| | | | | | accounts |
+------------------------+----------+---------+------------+----------+--------------+
| | 30 June | 30 | 30 | 30 | 30 June |
| | | June | June | June | |
+------------------------+----------+---------+------------+----------+--------------+
| | 2010 | 2010 | 2010 | 2010 | 2010 |
+------------------------+----------+---------+------------+----------+--------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+------------------------+----------+---------+------------+----------+--------------+
| Segment assets | 1,010 | 6,177 | 7,187 | 1,565 | 8,752 |
| excluding | | | | | |
| inter-company balances | | | | | |
+------------------------+----------+---------+------------+----------+--------------+
| Cash/(overdraft) | (3,645) | (1,235) | (4,880) | 6,115 | 1,235 |
+------------------------+----------+---------+------------+----------+--------------+
| Segment liabilities | (472) | (5,383) | (5,855) | (1,423) | (7,278) |
| excluding | | | | | |
| inter-company balances | | | | | |
+------------------------+----------+---------+------------+----------+--------------+
| Net segment | (3,107) | (441) | (3,548) | 6,257 | 2,709 |
| assets/(liabilities) | | | | | |
+------------------------+----------+---------+------------+----------+--------------+
+------------------------+----------+---------+------------+----------+--------------+
| | Flexible | Life | Total | Other | Total as |
| | | Science | reportable | segments | per |
| | Systems | | segments | | consolidated |
| | | | | | accounts |
+------------------------+----------+---------+------------+----------+--------------+
| | 31 Dec | 31 Dec | 31 Dec | 31 Dec | 31 Dec |
+------------------------+----------+---------+------------+----------+--------------+
| | 2009 | 2009 | 2009 | 2009 | 2009 |
+------------------------+----------+---------+------------+----------+--------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+------------------------+----------+---------+------------+----------+--------------+
| Segment assets | 1,417 | 4,373 | 5,790 | 1,387 | 7,177 |
| excluding | | | | | |
| inter-company balances | | | | | |
+------------------------+----------+---------+------------+----------+--------------+
| Cash/(overdraft) | (3,769) | (596) | (4,365) | 6,457 | 2,092 |
+------------------------+----------+---------+------------+----------+--------------+
| Segment liabilities | (588) | (4,115) | (4,703) | (1,326) | (6,029) |
| excluding | | | | | |
| inter-company balances | | | | | |
+------------------------+----------+---------+------------+----------+--------------+
| Net segment | (2,940) | (338) | (3,278) | 6,518 | 3,240 |
| assets/(liabilities) | | | | | |
+------------------------+----------+---------+------------+----------+--------------+
+------------------------+----------+---------+------------+----------+--------------+
| | Flexible | Life | Total | Other | Total as |
| | | Science | reportable | segments | per |
| | Systems | | segments | | consolidated |
| | | | | | accounts |
+------------------------+----------+---------+------------+----------+--------------+
| | 30 June | 30 | 30 | 30 | 30 June |
| | | June | June | June | |
+------------------------+----------+---------+------------+----------+--------------+
| | 2009 | 2009 | 2009 | 2009 | 2009 |
+------------------------+----------+---------+------------+----------+--------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+------------------------+----------+---------+------------+----------+--------------+
| Segment assets | 1,685 | 2,762 | 4,447 | 1,551 | 5,998 |
| excluding | | | | | |
| inter-company balances | | | | | |
+------------------------+----------+---------+------------+----------+--------------+
| Cash/(overdraft) | (3,637) | (416) | (4,053) | 7,081 | 3,028 |
+------------------------+----------+---------+------------+----------+--------------+
| Segment liabilities | (671) | (3,090) | (3,761) | (1,397) | (5,158) |
| excluding | | | | | |
| inter-company balances | | | | | |
+------------------------+----------+---------+------------+----------+--------------+
| Net segment | (2,623) | (744) | (3,367) | 7,235 | 3,868 |
| assets/(liabilities) | | | | | |
+------------------------+----------+---------+------------+----------+--------------+
4 Exceptional items
Profit/(loss) on ordinary activities before taxation is stated after charging
the following exceptional items:
+-----------------------------------------+-----------+-----------+----------+
| | Six | Six | Year |
| | months | months | |
+-----------------------------------------+-----------+-----------+----------+
| | ended | ended | ended |
+-----------------------------------------+-----------+-----------+----------+
| | 30 June | 30 June | 31 |
| | | | December |
+-----------------------------------------+-----------+-----------+----------+
| | 2010 | 2009 | 2009 |
+-----------------------------------------+-----------+-----------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
+-----------------------------------------+-----------+-----------+----------+
| Legal costs | 52 | 95 | 201 |
+-----------------------------------------+-----------+-----------+----------+
| Restructuring costs | 119 | - | 148 |
+-----------------------------------------+-----------+-----------+----------+
| Impairment of intangible non-current | - | - | 189 |
| assets | | | |
+-----------------------------------------+-----------+-----------+----------+
| Other exceptional administration | 69 | 48 | 88 |
| expenses | | | |
+-----------------------------------------+-----------+-----------+----------+
| | 240 | 143 | 626 |
+-----------------------------------------+-----------+-----------+----------+
The exceptional administrative expenses consist of the following:
· the exceptional legal expense of GBP52,000 (30 June 2009: GBP95,000; 31
December 2009: GBP201,000) relates to a dispute with a former customer in our
Flexible Systems business. The Company has reserved its right not to disclose
further information required by IAS 37 on the grounds that it may prejudice the
outcome of the claim; and
· the restructuring costs GBP119,000 consists of GBP112,000 in Flexible
Systems and GBP6,000 in RTS Thurnall Holdings PLC (31 June 2009: GBPnil; 31
December 2009: GBP148,000); and
- the GBP69,000 other exceptional charge (30 June 2009: GBP48,000; 31
December 2009: GBP88,000) relates to other professional fees.
Prior period exceptional administrative expenses:
- The impairment of intangible non-current assets of GBP189,000 in 2009,
consisted of two items, GBP49,000 related to a write down in the carrying value
of capitalised research and development costs in the Flexible Systems business
and the remaining GBP140,000 represented the write down of goodwill relating to
Flexible Systems.
5 Earnings/(loss) per ordinary share
Earnings/(loss) per ordinary share has been calculated using the weighted
average number of shares in issue during the relevant period. The calculations
of both basic and diluted earnings/(loss) per share for the six months ended 30
June 2010 are based upon a loss after tax attributable to equity shareholders of
GBP570,000 (30 June 2009: GBP9,000 profit after tax; 31 December 2009:
GBP10,000profit after tax). The weighted average number of shares used in the
basic and diluted calculation is 62,335,374 (30 June 2009 and 31 December 2009:
62,335,374).
The calculation for diluted earnings per ordinary share is identical to that
used for the basic earnings per share. This is because there were no share
options outstanding with an exercise price lower than the average share price
for the period and the exercise of share options in a period where a loss was
made would have had the effect of reducing the loss per ordinary share and is
therefore not dilutive under the terms of IAS 33 "Earnings Per Share".
+---------------------------------------+-----------+-----------+-----------+
| | Six | Six | Year |
| | months | months | |
+---------------------------------------+-----------+-----------+-----------+
| | ended | ended | Ended |
+---------------------------------------+-----------+-----------+-----------+
| | 30 June | 30 June | 31 |
| | | | December |
+---------------------------------------+-----------+-----------+-----------+
| | 2010 | 2009 | 2009 |
+---------------------------------------+-----------+-----------+-----------+
| | Pence | Pence | Pence |
+---------------------------------------+-----------+-----------+-----------+
| Basic and diluted earnings/(loss) per | (0.91) | 0.02 | 0.02 |
| share | | | |
+---------------------------------------+-----------+-----------+-----------+
6 Acquisition of Subsidiaries
On 8 February 2010 the Group acquired a 65% controlling interest in Hatch
Science LLC, a US based developer and manufacturer of scientific instruments for
the pharmaceutical and medical industries. With a successful history of product
development, Hatch Science LLC provides complementary products and skills to the
RTS Life Science business and simultaneously strengthens the Group's presence in
its key US markets. On 26 April 2010 Hatch changed its name to RTS Life Science
LLC.
In the period from 8 February 2010 RTS Life Science LLC contributed external
revenue of GBP289,000 and an operating loss of GBP101,000. If the acquisition
had occurred on 1 January 2010 management estimates RTS Life Science LLC revenue
would have been GBP314,000 and loss would have been GBP181,000 (excluding
exceptional items).
The following summarises the consideration transferred and the recognised
amounts of assets acquired and liabilities assumed at the acquisition date:
+------------------+-----------+
| Consideration | GBP'000's |
| transferred: | |
+------------------+-----------+
| Cash | 205 |
+------------------+-----------+
| Contingent | 108 |
| consideration | |
+------------------+-----------+
| Total | 313 |
| consideration | |
+------------------+-----------+
Contingent consideration
The Group has agreed to pay the selling shareholders additional consideration by
way of an earn out based on a payment of 32.5% of the profits after tax
generated from RTS Life Science LLC for each of the first three years. The
remaining shareholding is held by the existing management who have the option to
sell their 35% holding to the Group at the end of three, four or five years
based on the greater of $175,000 or the aggregate net profits generated from RTS
Life Science LLC in the preceding two to three years. The Group has included
GBP108,000 as contingent consideration related to the additional consideration,
which represents the fair value at date of acquisition. The fair value was
calculated by applying the income approach based on management's best estimate
of the expected contingent consideration and a discount rate of 13.73% has been
applied. It is not expected there will be any payment due at the end of 2010.
+----------------------------------------+-----------+
| Book value and provisional fair value | GBP'000's |
| of net assets acquired: | |
+----------------------------------------+-----------+
| | |
+----------------------------------------+-----------+
| Property, plant and equipment | 26 |
+----------------------------------------+-----------+
| Inventories | 1 |
+----------------------------------------+-----------+
| Trade and other receivables | 1,713 |
+----------------------------------------+-----------+
| Cash | 14 |
+----------------------------------------+-----------+
| Trade and other payables | (203) |
+----------------------------------------+-----------+
| Loans due to members | (1,191) |
+----------------------------------------+-----------+
| Loans due to third parties | (151) |
+----------------------------------------+-----------+
| Net assets | 209 |
+----------------------------------------+-----------+
Goodwill
Goodwill was recognised as a result of the acquisition as follows:
+----------------------------------------+-----------+
| | GBP'000's |
+----------------------------------------+-----------+
| Total consideration transferred | 313 |
+----------------------------------------+-----------+
| Non controlling interest based on | 73 |
| their proportionate interest in the | |
| recognised amounts of the assets and | |
| liabilities of the acquiree | |
+----------------------------------------+-----------+
| Provisional fair value of net assets | (209) |
| acquired | |
+----------------------------------------+-----------+
| Goodwill | 177 |
+----------------------------------------+-----------+
Goodwill is attributable to the skills and technical expertise of the workforce
and the synergies expected to be achieved by integrating RTS Life Science LLC
into the Group
The Group incurred acquisition related costs of GBP24,000 relating to external
legal and due diligence fees and these are included within administration costs
on the consolidated statement of comprehensive income
7 Contingent liabilities
RTS Flexible Systems is engaged in a dispute with a former customer. This fact
was disclosed in each the financial statements from 2006 though to 2009. The
information usually required by IAS 37 is not disclosed on the grounds that it
can be expected to seriously prejudice the outcome of the dispute. The Directors
of RTS Flexible Systems are of the opinion that the claim can be successfully
resolved by the Company.
8 Trade and other receivables
+----------------------------------------------------+----------+---------+----------+
| | 30 June | 30 | 31 |
| | | June | December |
+----------------------------------------------------+----------+---------+----------+
| | 2010 | 2009 | 2009 |
+----------------------------------------------------+----------+---------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------------------------+----------+---------+----------+
| Trade receivables | 2,686 | 1,699 | 2,286 |
+----------------------------------------------------+----------+---------+----------+
| Amounts receivable on long-term contracts | 1,543 | 1,224 | 1,709 |
+----------------------------------------------------+----------+---------+----------+
| Other receivables | 1,673 | 212 | 537 |
+----------------------------------------------------+----------+---------+----------+
| Prepayments and accrued income | 392 | 287 | 332 |
+----------------------------------------------------+----------+---------+----------+
| | 6,294 | 3,422 | 4,864 |
+----------------------------------------------------+----------+---------+----------+
At 1 January 2010 the Group had a gross receivable of GBP.4.5m (30 June 2009:
GBP4.3m), which represented the value of two loan notes receivable from the
purchaser of the trade and certain assets and liabilities of RTS Wright
Industries , LLC. The value of the loan notes was fully provided in the
financial statements.
On 10 May 2010 the Group renegotiated the loan notes in order to secure
accelerated payment terms. Under the new contractual agreement the loan notes
have been consolidated with a reduced value of $3.8m (GBP2.5m). The loan note
is interest bearing at a rate of 10% per annum and is payable on or before 10
May 2014. Consistent with the Group's prudent approach the loan note is fully
provided.
During the period the Group received interest payments of GBP21,000 (31 December
2009: GBP476,000, 30 June 2010: GBP181,000) relating to the loan note.
Included within other receivables is GBP1.3m relating to a receivable in RTS
Life Science LLC. This relates to a contract that the company entered into
prior to acquisition. On receipt of this amount the Company has an obligation,
subject to rights of set-off, to pay up to GBP1.3m to its former shareholders.
This amount is fully provided within other payables.
9 Trade and other payables
+----------------------------------------------------+----------+---------+----------+
| | 30 June | 30 | 31 |
| | | June | December |
+----------------------------------------------------+----------+---------+----------+
| | 2010 | 2009 | 2009 |
+----------------------------------------------------+----------+---------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------------------------+----------+---------+----------+
| Trade payables | 814 | 996 | 1,129 |
+----------------------------------------------------+----------+---------+----------+
| Payments received on account | 1,834 | 1,267 | 1,011 |
+----------------------------------------------------+----------+---------+----------+
| Other payables | 1,502 | 241 | 243 |
+----------------------------------------------------+----------+---------+----------+
| Other taxes and social security | 193 | 203 | 219 |
+----------------------------------------------------+----------+---------+----------+
| Accruals and deferred income | 2,020 | 1,504 | 2,567 |
+----------------------------------------------------+----------+---------+----------+
| | 6,363 | 4,211 | 5,169 |
+----------------------------------------------------+----------+---------+----------+
Directors
C J Brown
G Walsh
J S Sharrock
C Heminway
Secretary
J S Sharrock
Registered number
3143218
Registered office
Gilchrist Road
Northbank Industrial Estate
Irlam
Manchester M44 5AY
Auditors
KPMG Audit Plc
St James' Square
Manchester M2 6DS
Nominated Advisor and Corporate broker
Collins Stewart
9th Floor
88 Wood Street
London EC2V 7QR
Solicitors
Addleshaw Goddard LLP
100 Barbirolli Square
Manchester M2 3AB
Registrars
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Robotic Technology Systems PLC
Northbank Industrial Estate, Irlam, Manchester M44 5AY
Tel: +44 (0)161 777 2000
www.rts-group.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UOVNRRBAKAAR
Robotic Technology (LSE:RTS)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Robotic Technology (LSE:RTS)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024
