NTY the share of the future

Posted by the company after the close for maximum impact I guess :-)

Thought I'd post it here for you in case you missed it - looks carp to me.



RNS Number:0685W

Network Technology PLC

21 December 2005

21 December 2005

NETWORK TECHNOLOGY PLC - INTERIM RESULTS


Announcement of Interim Results, 6 months to 30th September 2005

Chairman's Statement

--------------------

The unaudited interim accounts show a loss of £251,000 compared to a profit of £163,000 in the same period last year.

This result is mainly due to a significantly lower turnover of £621,000 (£1.42 million in the previous interim period) caused by reduced TokenRing Bridge sales and delayed contracts for FollowMeTM in the US which are now likely to materialize in the fourth quarter.

A loss was in any case expected because of the increase in our sales force, which took place during the period and the staffing up of our support operations in the US and the UK. This required time for training and familiarization with our products and markets and therefore did not immediately translate into sales.

The Company's mix of sales is currently: 40% Networked Access Control System products; 50% FollowMeTM Printing Systems; and 10% Token-Ring Bridges and legacy print-server products.

In 2005, the Company took equity in payment for development work conducted for US company Facekey Corporation between 2001 and 2005. Facekey has now listed (under the symbol FEKY) and the investment has converted to listed common stock with a value of £113,000 which is shown on our balance sheet together with a surplus on revaluation of £85,000.

Guidance

--------

We believe that 2006 will become a much more positive year for your company and should allow us to return to significant profitability.

Currently, the Directors are considering a restructuring of the Company's shares to allow payment of a dividend at the earliest possible time from earnings.

We are satisfied with the progress made and believe we can conclude with an overall profit for the current year.

Klaus Bollmann

Chairman

PROFIT AND LOSS ACCOUNTS

------------------------
6 Months 6 Months 12 Months
to to to
30.9.05 30.9.04 31.3.05
£'000 £'000 £'000

Turnover 621 1,421 2,230
Exceptional cost of sales 0 0 (920)
Operating Costs (871) (1,240) (1,519)
Operating Profit/(Loss) (250) 181 (209)
Exceptional Item 0 0 273
Interest (1) (10) (24)
Profit/(Loss) Before Taxation (251) 171 40
Tax on Profit/(Loss) on Ordinary
Activities 0 (8) 72
Profit/(Loss) After Taxation (251) 163 112
Dividends - Equity 0 0 0
---------------------------
Retained Profit/(Loss) (251) 163 112
===========================

Profit/(Loss) per Ordinary Share (pence) -12.2 8.6 5.9

BALANCE SHEETS

--------------
30.9.05 30.9.04 31.3.05
£'000 £'000 £'000

Fixed Assets
Tangible Assets 375 251 391
Investments 113 0 0

Current Assets
Stocks 910 1,204 806
Debtors 298 742 510
Cash at Bank and in Hand 16 130 30

Creditors
Amounts falling due within one year (1,288) (1,992) (1,134)

Net Current Assets/(Liabilities) (64) 84 212

Creditors

Amounts falling due after more than one year (140) (154) (146)

---------------------------
Net Assets 284 181 457
===========================

Capital and Reserves
Called Up Share Capital 4,112 3,764 4,112
Share Premium Account 8,028 8,028 8,028
Capital Redemption Reserve 12 12 12
Revaluation Reserve 85 0 0
Profit and Loss Account (11,953) (11,623) (11,695)
---------------------------
284 181 457
===========================

CASH FLOW STATEMENTS

--------------------
6 Months 6 Months 12 Months
to to to
30.9.05 30.9.04 31.3.05
£'000 £'000 £'000

Operating Profit/(Loss) (250) 181 (209)
Depreciation and Amortisation 32 33 52
Working Capital Movements 251 (103) 66
---------------------------

Net Cash (Outflow)/Inflow from Operating
Activities 33 111 (91)

Returns on Investments and Servicing of Finance
Interest Paid (1) (10) (24)

Taxation 0 (8) (12)

Capital Expenditure and Financial Investment (49) (25) (185)
---------------------------

Cash Inflow/(Outflow) before Financing (17) 68 (312)

Financing (24) (22) 303

---------------------------
(Decrease)/Increase in Cash (41) 46 (9)
===========================

ANALYSIS OF NET FUNDS AND RECONCILIATION OF NET CASH OUTFLOW TO MOVEMENT

------------------------------------------------------------------------
IN NET FUNDS

------------

30.9.05 Movement 31.3.05
£'000 £'000 £'000

Cash at Bank and in Hand 16 (14) 30
Overdrafts (58) (27) (31)
Bank Loan (170) 24 (194)
---------------------------
(212) (17) (195)
===========================

NOTES TO THE INTERIM STATEMENT

1. Basis of Preparation

The interim financial statements to 30 September 2005 have been prepared in accordance with the accounting policies as set out in the Group financial statements for the 12 months ended 31st March 2005. The statements do not comprise full financial statement within the meaning of section 240 of the Companies Act 1985. The statements are unaudited and have not been independently reviewed.

The figures for the 12 months ended 31st March 2005 have been extracted from those financial statements.

2. Interim Dividend

The Directors continue to be unable to recommend the payment of a dividend for the 6 months ended 30th September 2005.

3. Loss per Share

Loss per share has been calculated on a loss after taxation of £251,000 (2004: profit £163,000) and 2,055,971 £2 ordinary shares (2004: 1,882,101 £2 ordinary shares).

4. Stock

The Directors have reviewed the Group's stocks and remain confident that they will all be sold for at least their book value. However, in view of the current state of the market there must be a level of uncertainty surrounding the ability to realise certain items of stock at greater than or equal to book value.

5. Debtors

Included within debtors are the amounts of:

- £42,000 for which recovery proceedings are planned, but not yet instigated. Collectability is therefore uncertain.

6. Profit and loss account

6 months 6 months 12 months
to to to
30.9.05 30.9.04 31.3.05
Unaudited Unaudited Audited
£'000 £'000 £'000

Opening balance (11,695) (11,786) (11,786)
Retained profit/(loss) for
the period (251) 163 112

Exchange Differences (7) - (21)
----------------------------------------
(11,953) (11,623) (11,695)
----------------------------------------

This information is provided by RNS The company news service from the London Stock Exchange

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