TIDMTAN
RNS Number : 3143Q
Tanfield Group PLC
08 April 2009
?
08 April 2009
Tanfield Group plc
Preliminary Results
Tanfield Group plc ("the Group") announces it's Preliminary Results for the year
ending 31 December 2008.
Financial Highlights
* Turnover: GBP146m, +18% (2007: GBP123m)
* Profit before exceptional items: GBP1.7m (2007: GBP12.8m)
* Net cash at year end GBP11.1m
* Impairment of goodwill, intangibles, inventory and receivables of GBP89.6m
* Loss after impairment GBP88.5m
Corporate Highlights
* 30% cost base reduction in 2008
* Further 27% cost base reduction in 2009
* Strong balance sheet remains after impairments
* US joint venture and customers
Roy Stanley, Chairman, said: "This has been a challenging year for the Group.
However, we are a business that is lean, nimble and focused, with a highly
experienced management team, which reacted promptly and decisively to the
adverse market conditions. Tanfield is well placed to trade through the downturn
and to move rapidly when its end markets improve".
Further Information
The Tanfield Group Plc +44 (0) 845 155 7755
Darren Kell, CEO
Charles Brooks, FD
Arbuthnot Securities +44 (0) 20 7012 2000
Nomad and Broker
James Steel / Katie Shelton
CHAIRMAN'S STATEMENT
After a profitable first half of the year, the Group encountered a downturn in
its end markets in the second half of 2008.
The Powered Access Division was impacted by the swift decline in the economy,
which led to a blanket suspension of fleet replacement and expansion programmes
by major equipment rental companies along with the almost complete withdrawal of
financing globally for new aerial work platforms.
The Zero Emission Vehicles Division experienced some supply chain constraints in
2008, coupled with several order postponements. Several customers involved in
urban delivery operations delayed the step up from trials to volume fleet
orders, in response to concerns over the effects of the economic downturn on
their own revenues.
Despite these challenges, we still succeeded in growing sales during 2008.
Turnover in the period was GBP145.7m, an increase of 18% on 2007 (GBP123.3m)
partially reflecting a full year of Snorkel. Profit from operations before
restructuring of GBP1.7m represented a 87% decline, reflecting the more
challenging trading conditions of the second half of 2008.
As discussed in our Interim Results, during 2008 the Board undertook a review of
Tanfield's goodwill and other assets, particularly those arising from the
acquisition of Snorkel Holdings LLC in 2007. The result was a series of
impairments totalling GBP89.7m.
The balance sheet after the impairments remains strong with net assets of
GBP85.8m and excess of current assets over current liabilities of GBP61.5m. Cash
at 31 December 2008 was GBP11.1m and this position is being maintained.
This has been a challenging year for the Group. However, we are a business that
is lean, nimble and focused, with a highly experienced management team, which
reacted promptly and decisively to the adverse market conditions. Tanfield is
well placed to trade through the downturn and to move rapidly when its end
markets improve. I have great faith in the ability of all our people. I would
like to thank everyone involved with Tanfield for their dedication and hard work
and their continued efforts.
Chief Executive's Review
Trading conditions, particularly in our Powered Access markets, remain
challenging with little visibility.
The swift and decisive steps taken to downsize the business have substantially
mitigated the risk. This prompt action means that we can operate the business at
a much lower break-even level than previously. Changes in the conditions of our
end markets are constantly monitored, and we will take further actions, if
necessary.
During 2008 we reduced our cost base by 30%, including an annualised wage bill
reduction of GBP11m. Since the New Year, we have implemented shorter working
weeks across all business units and geographical territories. Furthermore, the
Executive Directors have volunteered a 20% pay reduction during this period.
The management maintains rigorous control of overheads and continually reviews
the Group's cost base. Given the restricted nature of the market, our visibility
for 2009, in line with our peers, is limited, except to indicate that we expect
to see a contraction in 2009 compared to 2008.
Powered Access
We continue to demonstrate that we can react quickly to the dynamic market
conditions experienced in this sector. While the global outlook remains weak, we
are maintaining our presence in all markets through our distributors and
dealers. Across the industry there remains a significant oversupply of powered
access platforms and this will take some time to work through.
We are aggressively targeting the spare parts and refurbishment business, which
is growing as owners seek to extend the working life of their aerial lifts. Our
focus on the end user market has proven invaluable during this challenging
period, as has our strategy of developing a dedicated distribution network. We
continue to expand this global network and to support our dealers through
targeted marketing initiatives, ensuring that they stay close to customers
throughout the downturn. The relationships with dealers, distributors and
customers that we forge during this period will position us well for when the
market recovers. Despite the unique circumstances of the current recession, the
longer term outlook for the powered access sector remains strong.
Zero Emission Vehicles
We continue to expand and strengthen our supply chain and we now have several
motor, battery and electronics suppliers able to meet our stringent quality and
availability requirements.
The precipitous fall in demand across the entire commercial vehicle industry has
impacted the electric vehicle sector. In spite of these unprecedented market
conditions, our battery electric commercial vehicle offering is steadily gaining
traction.
We have entered into Heads of Terms for a joint venture, Smith Electric Vehicles
US Corporation (SEV US Corp) to assemble our commercial electric vehicles for
the North American market. Tanfield will own a 49% equity stake in SEV US Corp,
with the balance in the hands of private US investors. SEV US Corp will produce
vehicles from a facility in Kansas City, Missouri. SEV US Corp will invest $10m
to fund its launch and has secured $3m in incentives from State and local
government. The first US production model will be the Smith Newton truck,
commencing in the third quarter of 2009.
We believe that the new US administration's proactive approach to electric
vehicles has unlocked latent demand from major American corporations for our
products. A number of these US corporates have signed letters of intent to
become launch partners for our vehicles. These companies are willing to pay a
premium for our electric vans and trucks, in order to gain early adopter
advantage in what they perceive as the mainstream automotive technology of the
near future.
Tanfield has signed a collaboration agreement with Ford Motor Company to
assemble the Ford Transit Connect battery electric vehicle (BEV) in North
America. Due for launch in 2010, this light van will be the first BEV to deliver
on Ford's aggressive new electrification strategy. SEV US Corp will produce the
vehicle in the USA on our behalf. The BEV Connect (Ampere) will also be
available in the European market, assembled by Smith in the UK.
Along with owning a 49% stake in SEV US Corp, our JV agreement includes a
royalty payment per vehicle sold, GBP1m of which will be paid in advance. Given
that Newton will not go into production until Q3, we anticipate relatively low
numbers of vehicles for 2009. However, SEV US Corp retains the flexibility to
ramp up production for 2010 and beyond.
In the UK, we continue to work closely with central Government and our Regional
Development Agency, One North East, to further develop the electric vehicle
agenda. Tanfield is a member of the newly-formed London Electric Vehicle
Partnership, created with the desire to maintain London at the global forefront
of EV adoption. We are shortlisted for the Department for Transport's Low Carbon
Vehicle Procurement Programme, with the aim of commercialising electric and low
carbon vans through public sector procurement and expect a final decision on our
inclusion shortly.
With the European side of Ford, we recently unveiled a proof of concept vehicle
- the "Tourneo Connect BEV" - which demonstrates the potential for our
technologies to cross over into passenger vehicles. Given the positive response
to this vehicle we are working with Ford to fully assess the market opportunity.
Summary
The management team is clearly focused on the generation of cash through
operations and maximising the effectiveness of the working capital within the
Group.
The Group is debt-free, without banking covenants or interest costs and we do
not anticipate this changing in the short to mid-term. We therefore believe we
are well positioned to continue to ride out this downturn.
Our experience and first mover advantage in the electric vehicle sector means we
can capitalise upon the growing momentum behind this market, particularly once
the trading environment normalises. Any UK-based public procurement initiatives,
such as those we are witnessing in the USA, will help to significantly
accelerate the penetration of electric vehicles into the corporate and SME
markets. Similarly the infrastructure stimulus packages in the North American
market, once active, will ultimately have an impact on the construction sector
and we will benefit in turn.
The Board remains confident of its ability to manage the growth of the business
when macroeconomic conditions, the availability of credit, and customer
confidence in our end-markets improve.
Finance Director's report
The Revenue for the year of GBP145.7m (an 18% increase on 2007's revenue of
GBP123.3m) reflected the deteriorating market conditions faced by the company in
2008, given a first half reported revenue of GBP93m and a full year of Snorkel.
Revenue reduced month on month from June onwards ending the year at a low of
GBP6.5m in the month of December.
Significant cost base reductions have been implemented both by reducing
headcount and minimising other areas of spend including property costs by
terminating leases. This has reduced the break-even point in response to the
lower revenues. The speed of response to the market changes has allowed the
company to report a Profit from Operations of GBP1.7m before non-recurring
items.
Amortisation of Intangibles
Profit from operations is reported after charging amortisation. Of the GBP2.0m
amortisation charged, GBP0.9m, arose from the write down of intangibles in the
first half of the year that were impaired at the half year (see below). This
is not expected to recur.
Net operating expenses
Operating expenses are stated net of operating income, which includes income
from Government Grants and one off costs of establishing credit line GBP145k and
aborted acquisition costs of GBP250k.
Profit from Operations before Impairments and Restructuring costs
The Profit from Operations before Impairments and Restructuring costs was
GBP1.7m (2007 12.8m) reflecting the challenging market conditions in the second
half of the year.
Restructuring costs
Restructuring costs of GBP372k in the year arose from costs related to the
headcount reduction implemented. This amount is relatively small given the size
of the headcount reduction reflecting the short service history of many
employees and redundancy regulations in the US.
Impairment of Assets
The huge changes in market prospects for the Powered Access division required a
re-assessment of the carrying value of a number of assets on the balance sheet.
This review gave rise to impairments in a number of categories; intangible
assets and goodwill arising from the acquisitions of Snorkel and UpRight
following a reappraisal of those cash generating units' value in use
calculations, GBP44.5m; inventory, because of the impact of current trading
conditions on product mix, overall volumes, supplier failure and resourcing
decisions, GBP22.2m; trade receivables, reflecting an assessment of the impact
of customers' financial viability in current market conditions and our debt
collection strategies on their collectability, GBP22.9m. These impairments were
made at June 2008 and the impairment levels reflect the asset values at that
time. The year-end asset balances reflect the reduction in trading levels
experienced since June. The receivable and inventory impairments have been
reviewed since June in response to the further worsening of the market.
Finance Expenses
Finance Expenses in the year include the costs of marking to market an interest
rate collar GBP516k.
Loss before tax
Given the impairments, the Loss before tax was GBP88.8m. The Group net assets
after charging this loss were GBP85.8m.
Taxation
The loss before tax creates trading losses that can be carried forward and used
against future profits. In recognition of these losses, a deferred tax asset of
GBP1.8m has been created and added to the balance sheet.
Earnings per share before impairments and restructuring costs
Earnings per share before one off costs was (23.91p) (2007: 3.59p). No dividend
has been declared. (2007: nil)
Net Cash
At 31 December 2008, the Group had cash of GBP11.1m. The cash allows the
business to trade without exposure to financial covenants from banks or other
institutions.
+-----------------------------------------+-------+------+-----------+-----+----------+
| CONSOLIDATED INCOME STATEMENT |
+-------------------------------------------------------------------------------------+
| FOR THE YEAR ENDED 31 DECEMBER 2008 | | | | | |
+-----------------------------------------+-------+------+-----------+-----+----------+
| | | | 2008 | | 2007 |
+-----------------------------------------+-------+------+-----------+-----+----------+
| | | | GBP000's | | GBP000's |
+-----------------------------------------+-------+------+-----------+-----+----------+
| | | | | | |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Continuing operations | | | | | |
+-----------------------------------------+-------+------+-----------+-----+----------+
| | | | | | |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Revenue | | | 145,734 | | 123,288 |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Changes in inventories of finished | | | 4,808 | | 8,702 |
| goods and WIP | | | | | |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Raw materials and consumables used | | | (102,724) | | (87,980) |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Staff costs | | | (32,197) | | (23,667) |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Depreciation and amortisation expense | | | (3,195) | | (2,724) |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Other operating income | | | 500 | | 2,769 |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Other operating expenses | | | (11,221) | | (7,560) |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Restructuring costs | | | (372) | | (1,270) |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Profit from operations | | | 1,333 | | 11,558 |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Impairment of Goodwill | | | (31,895) | | - |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Impairment of Intangible assets | | | (12,605) | | - |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Impairment of Property, plant & | | | (83) | | - |
| equipment | | | | | |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Impairment of Inventories | | | (22,185) | | - |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Impairment of Receivables | | | (22,894) | | - |
+-----------------------------------------+-------+------+-----------+-----+----------+
| (Loss) / profit from continuing | | | (88,329) | | 11,558 |
| operations | | | | | |
+-----------------------------------------+-------+------+-----------+-----+----------+
| | | | | | |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Finance income | | | 457 | | 1,210 |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Finance costs | | | (913) | | (331) |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Profit before taxation | | | (88,785) | | 12,437 |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Income tax expense | | | 239 | | (560) |
+-----------------------------------------+-------+------+-----------+-----+----------+
| | | | | | |
+-----------------------------------------+-------+------+-----------+-----+----------+
| (Loss) / profit for the year from | | | (88,546) | | 11,877 |
| continuing operations | | | | | |
+-----------------------------------------+-------+------+-----------+-----+----------+
| | | | | | |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Discontinued operations | | | | | |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Loss for year from discontinued | | | - | | (1,484) |
| operations | | | | | |
+-----------------------------------------+-------+------+-----------+-----+----------+
| | | | | | |
+-----------------------------------------+-------+------+-----------+-----+----------+
| (Loss) / Profit for the year | | | (88,546) | | 10,393 |
+-----------------------------------------+-------+------+-----------+-----+----------+
| | | | | | |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Earnings per share | | | | | |
+-----------------------------------------+-------+------+-----------+-----+----------+
| From continuing operations | | | | | |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Basic | | | (23.91)p | | 3.59p |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Diluted | | | (23.91)p | | 3.41p |
+-----------------------------------------+-------+------+-----------+-----+----------+
| | | | | | |
+-----------------------------------------+-------+------+-----------+-----+----------+
| From continuing and discontinued | | | | | |
| operations | | | | | |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Basic | | | (23.91)p | | 3.14p |
+-----------------------------------------+-------+------+-----------+-----+----------+
| Diluted | | | (23.91)p | | 2.99p |
+-----------------------------------------+-------+------+-----------+-----+----------+
CONSOLIDATED BALANCE SHEET
+-----------------------------------------+--------+----------------+--------------+
| AS AT 31 DECEMBER 2008 | | | |
+-----------------------------------------+--------+----------------+--------------+
| | | 2008 | 2007 |
+-----------------------------------------+--------+----------------+--------------+
| | | GBP000's | GBP000's |
+-----------------------------------------+--------+----------------+--------------+
| ASSETS | | | |
+-----------------------------------------+--------+----------------+--------------+
| Non current assets | | | |
+-----------------------------------------+--------+----------------+--------------+
| Goodwill | | 356 | 32,244 |
+-----------------------------------------+--------+----------------+--------------+
| Intangible assets | | 15,153 | 22,685 |
+-----------------------------------------+--------+----------------+--------------+
| Property, plant and equipment | | 6,346 | 6,098 |
+-----------------------------------------+--------+----------------+--------------+
| Deferred tax assets | | 1,779 | 785 |
+-----------------------------------------+--------+----------------+--------------+
| Trade and other receivables | | 1,500 | - |
+-----------------------------------------+--------+----------------+--------------+
| Investments | | - | - |
+-----------------------------------------+--------+----------------+--------------+
| | | 25,134 | 61,812 |
+-----------------------------------------+--------+----------------+--------------+
| Current assets | | | |
+-----------------------------------------+--------+----------------+--------------+
| Inventories | | 60,560 | 60,352 |
+-----------------------------------------+--------+----------------+--------------+
| Trade and other receivables | | 20,595 | 47,197 |
+-----------------------------------------+--------+----------------+--------------+
| Investments | | 251 | 120 |
+-----------------------------------------+--------+----------------+--------------+
| Current tax assets | | - | 1,459 |
+-----------------------------------------+--------+----------------+--------------+
| Cash and cash equivalents | | 11,130 | 27,952 |
+-----------------------------------------+--------+----------------+--------------+
| | | 92,536 | 137,080 |
+-----------------------------------------+--------+----------------+--------------+
| | | | |
+-----------------------------------------+--------+----------------+--------------+
| TOTAL ASSETS | | 117,670 | 198,892 |
+-----------------------------------------+--------+----------------+--------------+
| | | | |
+-----------------------------------------+--------+----------------+--------------+
| LIABILITIES | | | |
+-----------------------------------------+--------+----------------+--------------+
| Current liabilities | | | |
+-----------------------------------------+--------+----------------+--------------+
| Trade and other payables | | 19,807 | 26,406 |
+-----------------------------------------+--------+----------------+--------------+
| Tax liabilities | | 687 | - |
+-----------------------------------------+--------+----------------+--------------+
| Obligations under finance leases | | 565 | 684 |
+-----------------------------------------+--------+----------------+--------------+
| Other creditors | | 9,954 | 467 |
+-----------------------------------------+--------+----------------+--------------+
| | | 31,013 | 27,557 |
+-----------------------------------------+--------+----------------+--------------+
| Non-current liabilities | | | |
+-----------------------------------------+--------+----------------+--------------+
| Other creditors | | - | 5,021 |
+-----------------------------------------+--------+----------------+--------------+
| Obligations under finance leases | | 569 | 1,100 |
+-----------------------------------------+--------+----------------+--------------+
| Deferred tax liabilities | | 307 | - |
+-----------------------------------------+--------+----------------+--------------+
| | | 876 | 6,121 |
+-----------------------------------------+--------+----------------+--------------+
| | | | |
+-----------------------------------------+--------+----------------+--------------+
| TOTAL LIABILITIES | | 31,889 | 33,678 |
+-----------------------------------------+--------+----------------+--------------+
| | | | |
+-----------------------------------------+--------+----------------+--------------+
| EQUITY | | | |
+-----------------------------------------+--------+----------------+--------------+
| Share capital | | 3,704 | 3,703 |
+-----------------------------------------+--------+----------------+--------------+
| Share premium | | 138,511 | 138,493 |
+-----------------------------------------+--------+----------------+--------------+
| Share option reserve | | 1,653 | 992 |
+-----------------------------------------+--------+----------------+--------------+
| Loan stock equity reserve | | - | - |
+-----------------------------------------+--------+----------------+--------------+
| Merger reserve | | 1,534 | 1,534 |
+-----------------------------------------+--------+----------------+--------------+
| Capital reduction reserve | | 7,228 | 7,228 |
+-----------------------------------------+--------+----------------+--------------+
| Translation reserve | | 9,290 | 879 |
+-----------------------------------------+--------+----------------+--------------+
| Profit and loss account | | (76,139) | 12,385 |
+-----------------------------------------+--------+----------------+--------------+
| TOTAL EQUITY | | 85,781 | 165,214 |
+-----------------------------------------+--------+----------------+--------------+
| | | | |
+-----------------------------------------+--------+----------------+--------------+
| TOTAL EQUITY AND LIABILITIES | | 117,670 | 198,892 |
+-----------------------------------------+--------+----------------+--------------+
+-------------------------+--+----------+----------+----------+----------+----------+-----------+-------------+----------+----------+
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
+-----------------------------------------------------------------------------------------------------------------------------------+
| FOR THE YEAR ENDED 31 DECEMBER 2008 | | | | | | |
+-------------------------------------------------------------+----------+----------+-----------+-------------+----------+----------+
| | | | | Share | Loan | | Capital | | Profit | |
| | | | | | | | | | and | |
+-------------------------+--+----------+----------+----------+----------+----------+-----------+-------------+----------+----------+
| | | Share | Share | Option | Stock | Merger | Reduction | Translation | loss | Total |
| | | capital | premium | reserve | reserve | reserve | reserve | reserve | account | Equity |
+-------------------------+--+----------+----------+----------+----------+----------+-----------+-------------+----------+----------+
| | | GBP000's | GBP000's | GBP000's | GBP000's | GBP000's | GBP000's | GBP000's | GBP000's | GBP000's |
+-------------------------+--+----------+----------+----------+----------+----------+-----------+-------------+----------+----------+
| Balance at 1 January | | 2,921 | 29,578 | 255 | 6 | 1,534 | 7,228 | - | 1,896 | 43,418 |
| 2007 | | | | | | | | | | |
+-------------------------+--+----------+----------+----------+----------+----------+-----------+-------------+----------+----------+
| Issue of ordinary share | | 706 | 107,893 | - | - | - | - | - | - | 108,599 |
| capital (net of | | | | | | | | | | |
| expenses) | | | | | | | | | | |
+-------------------------+--+----------+----------+----------+----------+----------+-----------+-------------+----------+----------+
| Exercise of convertible | | 8 | 67 | - | (6) | - | - | - | - | 69 |
| loan stock | | | | | | | | | | |
+-------------------------+--+----------+----------+----------+----------+----------+-----------+-------------+----------+----------+
| Share options exercised | | 68 | 955 | - | - | - | - | - | - | 1,023 |
+-------------------------+--+----------+----------+----------+----------+----------+-----------+-------------+----------+----------+
| Exercise of share | | - | - | - | - | - | - | - | 96 | 96 |
| options | | | | | | | | | | |
+-------------------------+--+----------+----------+----------+----------+----------+-----------+-------------+----------+----------+
| Share option provision | | - | - | 737 | - | - | - | - | - | 737 |
+-------------------------+--+----------+----------+----------+----------+----------+-----------+-------------+----------+----------+
| Foreign exchange | | - | - | - | - | - | - | 879 | - | 879 |
| differences on | | | | | | | | | | |
| retranslation of net | | | | | | | | | | |
| assets of subsidiary | | | | | | | | | | |
| undertakings | | | | | | | | | | |
+-------------------------+--+----------+----------+----------+----------+----------+-----------+-------------+----------+----------+
| Net profit for the year | | - | - | - | - | - | - | - | 10,393 | 10,393 |
+-------------------------+--+----------+----------+----------+----------+----------+-----------+-------------+----------+----------+
| Balance at 1 January | | 3,703 | 138,493 | 992 | - | 1,534 | 7,228 | 879 | 12,385 | 165,214 |
| 2008 | | | | | | | | | | |
+-------------------------+--+----------+----------+----------+----------+----------+-----------+-------------+----------+----------+
| Issue of ordinary share | | - | - | - | - | - | - | - | - | - |
| capital (net of | | | | | | | | | | |
| expenses) | | | | | | | | | | |
+-------------------------+--+----------+----------+----------+----------+----------+-----------+-------------+----------+----------+
| Exercise of convertible | | - | - | - | - | - | - | - | - | - |
| loan stock | | | | | | | | | | |
+-------------------------+--+----------+----------+----------+----------+----------+-----------+-------------+----------+----------+
| Share options exercised | | 1 | 18 | - | - | - | - | - | - | 19 |
+-------------------------+--+----------+----------+----------+----------+----------+-----------+-------------+----------+----------+
| Exercise of share | | - | - | - | - | - | - | - | - | - |
| options | | | | | | | | | | |
+-------------------------+--+----------+----------+----------+----------+----------+-----------+-------------+----------+----------+
| Share option provision | | - | - | 661 | - | - | - | - | 22 | 683 |
+-------------------------+--+----------+----------+----------+----------+----------+-----------+-------------+----------+----------+
| Foreign exchange | | - | - | - | - | - | - | 8,411 | - | 8,411 |
| differences on | | | | | | | | | | |
| retranslation of net | | | | | | | | | | |
| assets of subsidiary | | | | | | | | | | |
| undertakings | | | | | | | | | | |
+-------------------------+--+----------+----------+----------+----------+----------+-----------+-------------+----------+----------+
| Net loss for the year | | - | - | - | - | - | - | - | (88,546) | (88,546) |
+-------------------------+--+----------+----------+----------+----------+----------+-----------+-------------+----------+----------+
| Balance at 31 December | | 3,704 | 138,511 | 1,653 | - | 1,534 | 7,228 | 9,290 | (76,139) | 85,781 |
| 2008 | | | | | | | | | | |
+-------------------------+--+----------+----------+----------+----------+----------+-----------+-------------+----------+----------+
+------------------------------------------------------------------------------------------+
| CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 DECEMBER 2008 |
| 2008 2007 |
| GBP000's GBP000's |
| Operating Activities |
| Cash used in operations (10,935) (29,041) |
| Income taxes received (paid) 510 (2,943) |
| Interest paid (913) (331) |
| Net Cash used in Operating activities (11,338) (32,315) |
| Investing Activities |
| Acquisition of subsidiaries, net of overdraft - (44,564) |
| acquired |
| Purchase of investments in subsidiary undertakings - - |
| Purchase of property, plant and equipment (1,087) (1,851) |
| Payment of deferred consideration (252) - |
| Proceeds from sale of property, plant and equipment 623 758 |
| Purchase of investments (45) (23) |
| Purchase of intangible fixed assets (6,431) (2,949) |
| Interest received 457 1,210 |
| Net cash used in investing activities (6,735) (47,419) |
| Financing Activities |
| Proceeds from issuance of ordinary shares 19 109,622 |
| Repayment of borrowings - (14,904) |
| Repayments of obligations under finance leases (693) (621) |
| Net cash from financing (674) 94,097 |
| Net (Decrease) Increase in Cash and Cash Equivalents (18,747) 14,363 |
| Cash and Cash Equivalents at beginning of Year 27,952 13,546 |
| Effect of foreign exchange changes 1,925 43 |
| Cash and Cash Equivalents at end of Year 11,130 27,952 |
| |
+------------------------------------------------------------------------------------------+
Notes
+------+-----------------------------------------------------------------+
| 1 | Accounting Policies |
| | |
+------+-----------------------------------------------------------------+
| | The financial statements have been prepared in accordance with |
| | International Financial Reporting Standards ("IFRS"). |
+------+-----------------------------------------------------------------+
+-----+------------------------------------------------------------------+
| 2. | Unaudited Financial Statements |
| | The above figures do not constitute full accounts within the |
| | meaning of Section 240 of the Companies Act 1985, the figures |
| | for the year ended 31 December 2008 are unaudited. |
| | The figures for the year ended 31 December 2007 constitute |
| | abridged accounts extracted from the published accounts for the |
| | year which have been filed with the Registrar of Companies and |
| | on which the auditors' report was unqualified and did not |
| | contain a statement under Section 237(2) or (3) of the Companies |
| | Act 1985. |
+-----+------------------------------------------------------------------+
+-----+-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| 3. | Earnings per ordinary share |
| | Earnings per share have been calculated using the weighted average number of shares in issue during the relevant financial periods. The weighted average number of shares in issue is 370,361,089 (2007: 331,253,401) and the earnings, being the loss GBP88,546,000 on ordinary activities after taxation (2007:profit GBP10,393,000). |
| | Given there is a loss in the 2008, there is no dilution of the earnings per share. The weighted average number of shares for diluted earnings in 2007 was 347,837,812. |
| | Year ended Year ended |
| | 31 December 31 December |
| | 2008 2007 |
| | Pence Pence |
| | Earnings Per share (23.91) 3.14 |
| | Diluted Earnings per share (23.91) 2.99 |
| | |
+-----+-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
+------+------------------------+------+----+----+--------------+-----------+--------------+
| 4 | Business Segments | | | | |
+------+-------------------------------+---------+--------------+-----------+--------------+
| | For the twelve months ending | | | |
| | 31st December 2008 | | | |
+------+------------------------------------+-------------------+-----------+--------------+
| | | Powered | Zero Emission | Other | Consolidated |
| | | Access | Vehicles | | |
| | | Platforms | | | |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | | GBP000's | GBP000's | GBP000's | GBP000's |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | Revenue | | | | |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | External Sales | 114,388 | 25,087 | 6,259 | 145,734 |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | Inter-segment sales | | | | |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | Total revenue | 114,388 | 25,087 | 6,259 | 145,734 |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | Result | | | | |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | Segment Result before | (82,689) | (1,389) | (3,879) | (87,957) |
| | restructuring | | | | |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | Restructuring Costs | 263 | 38 | 71 | 372 |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | Segment Result | (82,952) | (1,427) | (3,950) | (88,329) |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | Unallocated corporate | - | - | - | - |
| | expenses | | | | |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | Profit from operations | (82,952) | (1,427) | (3,950) | (88,329) |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | Finance costs | - | - | (456) | (456) |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | Profit before tax | (82,952) | (1,427) | (4,406) | (88,785) |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | | | | | |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | Income tax expense | - | - | 239 | 239 |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | Profit after tax | (82,952) | (1,427) | (4,167) | (88,546) |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | Other information | | | | |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | Capital additions | 2,179 | 5,317 | 22 | 7,518 |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | Depreciation and | 2,026 | 904 | 265 | 3,195 |
| | amortisation | | | | |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | Impairments | 88,385 | 1,097 | 180 | 89,662 |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | Balance Sheet | | | | |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | Assets: | | | | |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | Segment assets | 38,557 | 21,388 | 57,725 | 117,670 |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | Consolidated total | 38,557 | 21,388 | 57,725 | 117,670 |
| | assets | | | | |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | Liabilities: | | | | |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | Segment Liabilities | 19,133 | 3,677 | 9,079 | 31,889 |
+------+------------------------+-----------+-------------------+-----------+--------------+
| | Consolidated total | 19,133 | 3,677 | 9,079 | 31,889 |
| | liabilities | | | | |
+------+------------------------+------+----+----+--------------+-----------+--------------+
+-----+-------------------------+---+-------+----------------+----------+--------------+
| 4 | Business Segments | | | | |
+-----+-----------------------------+-------+----------------+----------+--------------+
| | For the twelve months ending 31st | | | |
| | December 2007 | | | |
+-----+-------------------------------------+----------------+----------+--------------+
| | | Powered | Zero Emission | Other |Consolidated |
| | | Access | Vehicles | | |
| | |Platforms | | | |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | | GBP000's | GBP000's |GBP000's | GBP000's |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | Revenue | | | | |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | External Sales | 90,064 | 26,109 | 7,115 | 123,288 |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | Inter-segment sales | | | | |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | Total revenue | 90,064 | 26,109 | 7,115 | 123,288 |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | Result | | | | |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | Segment Result before | 9,486 | 2,848 | 177 | 12,511 |
| | restructuring | | | | |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | Restructuring Costs | 1,270 | - | - | 1,270 |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | Segment Result | 8,216 | 2,848 | 177 | 11,241 |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | Unallocated corporate | - | - | - | 317 |
| | expenses | | | | |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | Profit from operations | 8,216 | 2,848 | 177 | 11,558 |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | Finance costs | 625 | 217 | 37 | 879 |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | Profit before tax | 8,841 | 3,065 | 214 | 12,437 |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | | | | | |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | Income tax expense | 502 | 58 | - | 560 |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | Profit after tax | 8,339 | 3,007 | 214 | 11,877 |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | Other information | | | | |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | Capital additions | 2,825 | 3,025 | 122 | 5,972 |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | Depreciation and | 1,484 | 933 | 307 | 2,724 |
| | amortisation | | | | |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | Balance Sheet | | | | |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | Assets: | | | | |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | Segment assets | 164,412 | 25,762 | 8,718 | 198,892 |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | Consolidated total | 164,412 | 25,762 | 8,718 | 198,892 |
| | assets | | | | |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | Liabilities: | | | | |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | Segment Liabilities | 26,225 | 4,150 | 3,303 | 33,678 |
+-----+-------------------------+-----------+----------------+----------+--------------+
| | Consolidated total | 26,225 | 4,150 | 3,303 | 33,678 |
| | liabilities | | | | |
+-----+-------------------------+---+-------+----------------+----------+--------------+
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UBRBRKNRSRAR
|