Interim Results
20 Marzo 2003 - 1:50AM
UK Regulatory
RNS Number:9711I
SRS Technology Group PLC
20 March 2003
For Immediate Release 20 March 2003
SRS Technology Group Plc
Interim Results for the period ended 31 December 2002
SRS Technology Group Plc, which develops, markets and sells a range of personal
electronic environmental control devices to the disabled and elderly markets, is
pleased to announce its Interim Results for the period ended 31 December 2002.
Business Review:
* Sales growing; Current quarter sales expected to exceed #200,000 (2002:
#107,000)
* Approximately 190 SRS 100 systems sold to date
* Accepted on contract by NHS Wales
* Pride Mobility launched SRS 100 in February 2003; initial orders worth
$80,000 (USD) supplied; reported first in-market sale.
* Reached agreement with Tunstall to resell each others' products and
commence market test
* Collaborating with Motorola on developing the SRS Mobile Phone kit
* Successful collaboration with Patientline
* Reseller agreement signed with Picomed in Norway
Financial Review:
* Turnover increased to #238,000 (2001: #86,000)
* Cash position of #1m as at 31st December 2002
* Losses contained at #776,000 (2001: #678,000)
* Cost re-structure programme implemented
* Company raising funds to provide on going working capital
Chief Executive, Jurek Sikorski, said:
"Despite the difficult market conditions, sales are growing throughout the UK
and are starting both in Europe and the US. We have several exciting
collaborations with major international corporations to accelerate sales growth.
2003 has started with record sales, on which we are determined to build in the
coming period."
For more information please contact:
Jurek Sikorski, Chief Executive Officer
SRS Technology Group Plc Telephone: 01922 456882
Tim Anderson / Rebecca Skye Dietrich
Buchanan Communications Telephone: 020 7466 5000
Chairman's Statement
There has been demonstrable progress at SRS over the past six months. Sales are
growing strongly, and our channels to market are increasing. Order levels
continue to rise and turnover for the period has increased by 280% over the same
period last year.
Sales of the SRS 100, our environmental control system for the physically
disabled, are now achieving fast growth to the NHS in England and Scotland,
where we have been on contract for the last 18 months. We have achieved contract
status with the NHS in Wales, commencing next month. We are in talks to agree an
annual purchase volume, and expect further commitments going forward.
Our sales strategy is to sell directly to the NHS in the UK and through
distributors to the elderly and private markets in the UK and all sectors
overseas.
An exciting development to this end includes the signing of an initial agreement
with Tunstall, Europe's leading manufacturer and provider of personal and home
reassurance solutions and response centre systems. SRS will sell Tunstall
products to the NHS/Social Services for the disabled and Tunstall will target
the market for the elderly through local authorities and housing associations
with the SRS 100 and later the SRS Lite. We believe that there is potentially a
very large market available to us through this agreement.
We are also collaborating with Motorola for the development of a mobile
telephone for the elderly and disabled that can be operated using the SRS 100.
We expect to launch the SRS Mobile Phone Kit by the middle of this year. The kit
comprises the popular 280i handset with a cable connection. A wireless version
will be available at a later date. SRS and its distributors will be marketing
these products to the elderly and disabled with Motorola promoting the solution
to its customers.
SRS has successfully completed a collaboration with Patientline, a leading
supplier of bedside communication and entertainment systems to the NHS to enable
the SRS 100 to operate the Patientline T2 entertainment and communication
system, which is now being promoted by SRS to spinal injury centres and hospital
departments throughout the UK.
Last year, we announced the appointment of Pride Mobility in the US, to target
the US market, the largest in the world. Sales to Pride to date have been $80k
and since the launch in February Pride have already made sales to several of its
customers. While sales have been slower than anticipated, the ground work has
now been laid, with a successful market preview and the establishment of Q
controls, a new division of Pride set up to sell SRS products. Strong sales can
be expected in this market in the coming year. In addition to selling through
dealers, Pride will also be targeting the SRS100 system direct to rehabilitation
centres, acute care hospitals, and especially the Veteran Association Hospitals,
where market research has determined the greatest sales opportunities.
Sales in the European market have also been slower to materialise than
anticipated, due to the requirement to agree tariff rates with insurance
companies. However, many of our reseller agreements are now seeing orders coming
through including Otto Bock in Italy which has now placed the first stock in
order, rdg Kompagne in Holland and Incap in Germany. We have also signed a new
reseller agreement with Picomed in Norway.
Sales growth over the coming six months will be driven primarily by the UK,
first volume sales in North America and Europe and the agreements with Tunstall
and Motorola.
Development of key products, the SRS Lite and SRS Intellec is progressing to
plan. The SRS Lite is to be previewed at the major trade show, the Naidex
Exhibition at the NEC, Birmingham in May 2003.
At the end of the period, we commenced fundraising activities for our future
working capital needs. These are proceeding. At the same time, we are reducing
our operating costs significantly, in particular employee related and external
advisors' costs to ensure our cash reserves are sufficient through 2003.
David W Gration
Chairman
20 March 2003
UNAUDITED GROUP PROFIT AND LOSS
FOR THE PERIOD ENDED 31 DECEMBER 2002
Period ended Period ended Period ended
31 December 31 December 30 June
2002 2001 2002
(6 months) (7 months) (13 months)
#'000 #'000 #'000
Turnover 238 86 274
Cost of sales (120) (50) (153)
Gross profit 118 36 121
Development and administrative expenses (966) (764) (1,811)
Operating loss (848) (728) (1,690)
Interest receivable 29 50 95
Loss on ordinary activities before taxation (819) (678) (1,595)
Tax on loss on ordinary activities 43 - 75
Loss on ordinary activities after taxation (776) (678) 1,520
Basic loss per share 5.22p 5.51p 11.27p
Fully diluted loss per share 4.96p 5.07p 10.41p
UNAUDITED GROUP BALANCE SHEET
AS AT 31 DECEMBER 2002
31 December 31 December 30 June
2002 2001 2002
#'000 #'000 #'000
Fixed assets
Tangible assets 196 98 187
Current assets
Stock 162 86 117
Debtors 284 118 204
Cash at bank and in hand 1,052 2,905 2,079
1,498 3,109 2,400
Creditors: amounts falling due within
one year (296) (206) (415)
Net current assets 1,202 2,903 1,985
Total assets less current liabilities 1,398 3,001 2,172
Creditors: amounts falling due after
more than one year (30) (15) (28)
1,368 2,986 2,144
Capital and reserves
Called up share capital 743 743 743
Share premium account 2,921 2,921 2,921
Profit and loss account (2,296) (678) (1,520)
Equity shareholders' funds 1,368 2,986 2,144
UNAUDITED CONSOLIDATED CASHFLOW STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2002
Period ended Period ended Period ended
31 December 31 December 30 June
2002 2001 2002
(6 months) (7 months) (13 months)
#'000 #'000 #'000
Operating loss (848) (728) (1,690)
Depreciation 38 16 36
Working capital movement (296) (94) 49
Net cashflow from operating activities (1,106) (806) (1,605)
Returns on investments - interest received 29 50 95
Taxation 61 - -
Capital expenditure (47) (35) (145)
Acquisition - cash arising on acquisition
of subsidiary - 634 634
Cash outflow before financing (1,063) (157) (1,021)
Financing 36 3,062 3,100
(Decrease)/increase in cash in the period (1,027) 2,905 2,079
NOTES TO THE INTERIM STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2002
1. The interim financial statements, which have been approved by the
directors, have been prepared on the basis of the accounting policies set out in
the group's 2002 financial statements. The interim financial statements are
unaudited and do not constitute full financial information as defined in Section
240 of the Companies Act 1985 (as amended). The comparative figures for the
periods ended 31 December 2001 and 30 June 2002 do not comprise full financial
statements. The comparative figures for the period ended 30 June 2002 have been
abridged from the full group accounts for the period ended on that date, on
which the auditors gave an unqualified report. The 2002 accounts have been
delivered to the Registrar of Companies.
2. Loss per share for the six months ended 31 December 2002 is based on
attributable losses of #776,000 and on the weighted average number of shares in
issue during the period of 14,869,300. Loss per share for the comparative
periods to 31 December 2001 and 30 June 2002 is based on attributable losses of
#678,000 and #1,520,000 respectively and a weighted average number of shares in
issue of 12,299,814 and 13,477,224 respectively. Fully diluted loss per share
for the six months ended 31 December 2002 is based on attributable losses of
#776,000 and on the weighted average number of shares in issue during the period
of 15,635,843. Fully diluted loss per share for the comparative periods to 31
December 2001 and 30 June 2002 is based on attributable losses of #678,000 and
#1,520,000 respectively and a weighted average number of shares in issue of
13,370,590 and 14,597,775 respectively.
3. SRS Technology Group Plc was incorporated on 1 June 2001 and on 28 June
2001 it acquired the entire issued share capital of its trading subsidiary, SRS
Technology Limited. The comparative results set out in these interim statements
represent the trading activity of the group from the date of this acquisition.
4. Copies of this statement are being sent to all shareholders and will be
available to the public at the company's registered office at SRS House, The
Shrubbery, 28 Erdington Road, Aldridge, West Midlands, WS9 8UH.
This information is provided by RNS
The company news service from the London Stock Exchange
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