Solid State PLC
19 December 2006
Solid State plc
Unaudited Interim Results for the six months ended 30 September 2006
Chairman's Statement
Results
The unaudited pre-tax profit for the Group for the six months ended 30 September
2006 was £188,000 (2005: £127,000) on a turnover of £6,337,000 (2005:
£5,010,000). The basic earnings per share amounted to 2.4p (2005: 1.6p). The
pre-tax profit is stated after goodwill amortisation of £45,000 (2005: £22,000).
Trading Review
Solid State Supplies
Our component distribution business has continued to take advantage of the
improvement in market conditions that began in March. Our sales order intake
has increased by 4% over the same period last year and this is despite the loss
of franchises reported previously. Our book to bill ratio remains strong at
1.15:1.00 and this will feed through to sales during the second half of this
year.
As outlined in my previous statement I am pleased to confirm that new franchises
have been signed in this period. We are in advanced discussions with further
lines which together will broaden our product offering and bring significant
benefits next fiscal year.
Steatite and Wordsworth Technology
Sales for both companies have continued to improve, whilst the full advantages
of the re-organisation continue to have a positive effect on costs and margins.
The focus on demand creation for value added product has led to own brand
designs and new product developments. This has increased the long term
opportunities for both companies in some of the large blue chip OEMs within the
UK. We will continue to develop new products and franchises offering the best
in Batteries and Industrial Computing platforms to our expanding customer base.
Summary
The results represent a significant improvement with turnover and profit in
excess of expectation at both sites. Turnover for the first half of this year
has increased by 15% on a like for like basis over the second half of last year.
Having consolidated Wordsworth Technology into the Redditch site we are now
looking for suitable further acquisitions within the electronics industry. The
board is confident that the Group will continue to develop from its strong
position and that this will be reflected in the results of the current and
future periods.
Dividends
No final dividend was paid in respect of the year ended 31 March 2006 meaning
that the total dividend in respect of the year was 0.5p per share. The
directors are pleased to announce that in the light of the sound result for the
first half year, an interim dividend of 1p per share will be paid. The payment
date will be 30 January 2007 to shareholders on the register at the close of
business on 26 January 2007.
Conclusion
I would like to thank my fellow directors and all the staff of the Group for
their support over the past six months.
Peter Haining
Chairman
19 December 2006
INTERIM CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the six months ended 30 September 2006
Unaudited Unaudited Audited
Six months to Six months to Year to
30 Sept 2006 30 Sept 2005 31 Mar 2006
£'000 £'000 £'000
(as restated) (as restated)
Turnover 6,337 5,010 10,452
Cost of sales (4,669) (3,525) (7,543)
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Gross profit 1,668 1,485 2,909
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Selling expenses and distribution costs (794) (619) (1,216)
Administrative expenses (636) (712) (1,684)
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(1,430) (1,331) (2,900)
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Operating profit 238 154 9
Other income 1 1 4
Interest payable (51) (28) (81)
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Profit/(loss) on ordinary activities before
taxation 188 127 (68)
Tax on profit on ordinary activities (41) (33) 35
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PROFIT/(LOSS) FOR THE FINANCIAL PERIOD 147 94 (33)
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RECONCILIATION OF MOVEMENT IN SHARHOLDERS' FUNDS
Opening shareholders funds 2,019 2,198 2,198
Profit/(loss) for the financial period as
previously reported - 98 (25)
Adjustment re share based payments - (4) (8)
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Profit/(loss) for the financial period as
restated 147 94 (33)
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Dividends paid - (122) (154)
Share based payment expense 4 4 8
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Closing shareholders' funds 2,170 2,174 2,019
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Earnings per share
Basic 2.4p 1.6p (0.4p)
Diluted 2.4p 1.6p (0.4p)
All amounts relate to continuing operations.
CONSOLIDATED BALANCE SHEET
as at 30 September 2006
Unaudited Unaudited Audited
As at As at As at
30 Sept 2006 30 Sept 2005 31 Mar 2006
£'000 £'000 £'000
(as restated) (as restated)
FIXED ASSETS
Intangible assets 1,616 1,623 1,661
Tangible assets 368 471 374
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1,984 2,094 2,035
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CURRENT ASSETS
Stock 1,188 1,483 1,081
Debtors 2,341 1,982 1,864
Cash at bank and in hand 117 117 154
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3,646 3,582 3,099
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CREDITORS
Amounts falling due within one year (3,048) (2,780) (2,561)
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NET CURRENT ASSETS 598 802 538
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TOTAL ASSETS LESS CURRENT LIABILITIES 2,582 2,896 2,573
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CREDITORS
Amounts falling due after more than one year (412) (722) (554)
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2,170 2,174 2,198
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CAPITAL AND RESERVES
Share capital 308 308 308
Capital redemption reserve 5 5 5
Share premium account 757 757 757
Profit and loss account 1,100 1,104 949
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SHAREHOLDERS' FUNDS 2,170 2,174 2,019
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CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 30 September 2006
Unaudited Unaudited Audited
Six months to Six months to Year to
30 Sept 2006 30 Sept 2005 31 Mar 2006
£'000 £'000 £'000
Net cash inflow/(outflow) from operating
activities (112) 907 1,216
Return on investments and servicing of finance:
Interest received 1 1 4
Interest paid (51) (28) (81)
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Net cash (outflow) (50) (27) (77)
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Taxation:
Corporation tax paid - - (185)
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Net cash (outflow) - - (185)
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Capital expenditure and financial investment:
Payments to acquire tangible fixed assets (114) (54) (145)
Receipts from sales of tangible fixed assets 43 7 44
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Net cash (outflow) (71) (47) (101)
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Acquisitions and disposals
Purchase of business operation - (1,833) (1,833)
Net cash acquired with subsidiary - 235 235
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Net cash (outflow) - (1,598) (1,598)
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Equity dividend paid - (123) (154)
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Net cash (outflow) before financing (233) (888) (899)
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Financing:
Medium term loan received - 500 500
Repayments of medium term loan (82) (56) (138)
Invoice discounting finance received (net
movement) 36 308 501
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Net cash inflow/(outflow) (46) 752 863
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(Decrease) in cash (279) (136) (36)
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NOTES TO THE INTERIM REPORT
1. Basis of preparation of interim financial information
The interim financial statements have been prepared on the basis of accounting
policies expected to be adopted in the Financial Statements for the year ending
31 March 2007. The Group has changed its accounting policy for share options
granted after 7th November 2002 in accordance with Financial Reporting Standard
20 'Share based payments'. The results for the comparable periods have been
restated accordingly (6 months to 30th September 2005: £4,000; year ended 31st
March 2006: £8,000).The effects of this change are set out in the Reconciliation
of Movement in Shareholders' Funds on page 3. The unaudited financial statements
do not constitute statutory accounts within the meaning of Section 240 of the
Companies Act 1985. Statutory accounts for year ended 31 March 2006 have been
filed with the Registrar of Companies. The Auditors' Report on these accounts
was unqualified.
2. Earnings per share
The earnings per share figures are based on the profit on ordinary activities
after taxation as stated in the unaudited profit and loss account and the
weighted average number of shares in issue during each period. The weighted
average number of shares in issue during the period was 6,156,511 for the six
months ended 30 September 2006, 6,156,511 for the year ended 31 March 2006 and
6,156,511 for the six months ended 30 September 2005. The calculation of
diluted earnings per share was based on 6,156,511 for the six months ended 30
September 2006, 6,156,511 for the year ended 31 March 2006 and 6,156,511 for the
six months ended 30 September 2005.
3. Reconciliation of operating profits to net cash inflow from operating
activities
Unaudited Unaudited Audited
Six months to Six months to Year to
30 Sept 2006 30 Sept 2005 31 Mar 2006
£'000 £'000 £'000
Operating profit 238 154 9
Share based payment expense 4 4 8
Amortisation of intangible fixed assets 45 22 71
Depreciation charges 72 68 151
Loss on disposal of fixed assets 6 5 17
Decrease/(Increase) in stocks (107) (142) 223
Decrease/(increase) in debtors (477) 648 801
Increase/(decrease) in creditors 107 148 (64)
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Net cash inflow/(outflow) from operating
activities
(112) 907 1,216
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4. Analysis and reconciliation of net cash
Audited Unaudited
31 Mar 2006 Cash flow 30 Sept 2006
£'000 £'000 £'000
Cash at bank and in hand 154 (37) 117
Bank overdrafts (88) (242) (330)
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66 (279) (213)
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5. Further copies of this document are available both at the registered
office of the Company and from the offices of Charles Stanley Securities, 25
Luke Street, London, EC2A 4AR.
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