SOFTWARE RADIO TECHNOLOGY PLC
("SRT" or the "Group")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009
Software Radio Technology plc, the AIM-quoted developer of maritime
identification and tracking technologies, announces its unaudited interim
results for the six months ended 30 September 2009.
During the first six months, SRT started to see the fruits of its long term
strategy. Revenues increased by 122% to £2.1 million whilst the loss for the
period reduced from £402,000 to £31,000 compared to the first six months of
last year. Net cash balances increased by 32% from £535,000 at 31 March 2009 to
£705,000 at 30 September 2009.
SRT is focused on the development of high performance, complex, low cost
maritime identification and tracking solutions with a particular focus on AIS
(Automatic Identification System). AIS has become the maritime vessel
identification and tracking system of choice for authorities and mariners
around the world thus creating a global market for AIS products. SRT's evolving
range of AIS solutions enables companies seeking to address this diverse global
market in leisure, commercial and homeland security, to do so quickly and with
minimal risk and investment. The increase in AIS projects and mandates around
the world and therefore demand for SRT's solutions, has been the primary driver
for the acceleration in the growth. A good example is the three year US$18
million order announced in September. However, so far, relatively few of the
announced and expected AIS mandates have come into effect and therefore SRT
continues to invest for the future.
SRT has invested heavily in the development of new AIS technologies and
products with the objective of significantly improving and broadening its
product range. This year has seen the introduction of a miniature low cost AIS
receiver module and in Q2 2010 SRT will start production of a new Class A unit.
The addition of these products enables SRT to address all segments of the
global AIS market and is expected to provide additional revenue streams from
2010 with good margins.
The outlook for the AIS market is encouraging. Countries around the world, from
South Korea and China to India, USA, EU and Turkey, are either actively
implementing or planning national mandates for the use of AIS devices on
hundreds of thousands of vessels. Since 2005, SRT has worked to develop low
cost, flexible technologies and embed them within a wide variety of customer
products. The Group's international customer base, which each have established
brands and sales channels, continues to grow.
Although future revenues remain difficult to predict, with the risk of
significant upward or downward fluctuations, the Board believes that SRT is
well positioned to benefit from the expected increasing demand for AIS products
as mandates, both planned and announced, take effect.
Finally I would like to take this opportunity to thank all our staff for their
tireless, passionate and innovative work, without which SRT would not have been
able to develop market leading technologies and establish itself as the leading
provider of AIS solutions in the world today.
Nick Jolliffe
Chairman
Enquiries
Software Radio Technology plc 01761 409500
Simon Tucker simon.tucker@softwarerad.com
Hanson Westhouse Limited 020 76016100
Tim Feather tim.feather@hansonwesthouse.com
Matthew Johnson matthew.johnson@hansonwesthouse.com
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009
Six months Six months Year
ended ended ended
30 Sep 2009 30 Sep 2008 31 Mar
2009
Unaudited Unaudited Audited
Re-presented*
Notes £ £ £
Continuing operations
Revenue 2,093,574 944,611 2,516,489
Cost of sales (1,423,684) (724,673) (1,565,649)
Gross profit 669,890 219,938 950,840
Administrative expenses (975,950) (698,127) (2,224,313)
Other net operating income 167,273 - -
Operating loss before share (138,787) (478,189) (1,273,473)
based payments
Share based payments charge 2 (58,403) (99,750) (42,130)
Operating loss after share based (197,190) (577,939) (1,315,603)
payments
Investment revenues 491 28,345 33,441
Loss before income tax (196,699) (549,594) (1,282,162)
Income tax credit 165,662 147,710 147,710
Loss for the period from (31,037) (401,884) (1,134,452)
continuing operations
Discontinued operations - (1,217,518) (11,043,473)
Loss for the period from
discontinued operation
Loss for the period (including (31,037) (1,619,402) (12,177,925)
discontinued operation)
Loss per share (basic and 3
diluted):
Continuing operations (0.03)p (0.41)p (1.2)p
Discontinued operations - (1.25)p (11.3)p
Continuing and discontinued (0.03)p (1.66)p (12.5)p
operations
* Re-presented - see note 1
CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER 2009
As at As at As at
30 Sep 30 Sep 31 Mar
2009 2008 2009
Unaudited Unaudited Audited
Notes £ £ £
Assets
Non-current assets
Intangible assets 1,137,593 7,563,373 908,365
Investments - 351,586 -
Property, plant and equipment 86,260 430,925 82,090
Total non-current assets 1,223,853 8,345,884 990,455
Current assets
Inventories 709,372 848,314 897,981
Trade and other receivables 354,982 3,867,366 651,854
Cash and cash equivalents 704,926 1,581,533 535,692
Total current assets 1,769,280 6,297,213 2,085,527
Liabilities
Current liabilities
Trade and other payables (289,085) (1,350,272) (399,300)
Total current liabilities (289,085) (1,350,272) (399,300)
Total liabilities (289,085) (1,350,272) (399,300)
Net assets 2,704,048 13,292,825 2,676,682
Shareholders' funds
Ordinary shares 97,818 97,818 97,818
Share premium 15,387,084 15,387,084 15,387,084
Other reserves 4 5,490,596 5,490,596 5,490,596
Retained earnings (18,271,450) (7,682,673) (18,298,816)
Total funds 2,704,048 13,292,825 2,676,682
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009
Share Share Retained Other Total
Earnings Reserves
Capital Premium
£ £ £ £ £
Balance at 1 April 2008 97,818 15,387,084 (6,163,021) 5,490,596 14,812,477
Loss for the period - - (1,619,402) - (1,619,402)
Employee share options - - 99,750 - 99,750
scheme - value of
employee services
Balance at 30 September 97,818 15,387,084 (7,682,673) 5,490,596 13,292,825
2008
Loss for the period - - (10,558,523) - (10,558,523)
Employee share options - - (57,620) - (57,620)
scheme - value of
employee services
Balance at 31 March 2009 97,818 15,387,084 (18,298,816) 5,490,596 2,676,682
Loss for the period - - (31,037) - (31,037)
Employee share options - - 58,403 - 58,403
scheme - value of
employee services
Balance at 30 September 97,818 15,387,084 (18,271,450) 5,490,596 2,704,048
2009
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009
Six months Six months Year ended
ended ended
30 Sep 30 Sep 31 Mar 2009
2009 2008
Unaudited Unaudited Audited
Re-presented*
Notes £ £ £
Continuing operations
Net cash from operating 5 460,251 (288,723) (896,609)
activities
Interest received 491 28,345 33,441
Corporation tax received 165,662 147,710 147,710
Net cash from operating 626,404 (112,668) (715,458)
activities
Investing activities
Purchase of intangible fixed (433,665) (224,404) (213,496)
assets
Purchase of property, plant (23,505) (37,985) (59,463)
and equipment
Net cash used in investing (457,170) (262,389) (272,959)
activities
Net increase/(decrease) in 169,234
cash and cash equivalents (375,057) (988,417)
from continuing operations
Discontinued operation
Cash flows from operating - (381,091) (336,331)
activities
Cash used in investing - (1,167,803) (1,645,044)
activities
Net decrease in cash from - (1,548,894) (1,981,375)
discontinued operation
Net increase/ (decrease) in 169,234 (1,923,951) (2,969,792)
cash and cash equivalents
Cash and cash equivalents at 535,692
beginning of period 3,505,484 3,505,484
Cash and cash equivalents at 704,926 1,581,533 535,692
end of period
*Re-presented - see note 1
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. Accounting Policies
Basis of preparation
The interim financial information in this report has been prepared using
accounting policies consistent with IFRS as adopted by the European Union. IFRS
is subject to amendment and interpretation by the International Accounting
Standards Board (IASB) and the International Financial Reporting
Interpretations Committee (IFRIC) and there is an ongoing process of review and
endorsement by the European Commission. The financial information has been
prepared on the basis of IFRS that the Directors expect to be adopted by the
European Union and applicable as at 31 March 2010.
The accounting policies are consistent with those of the annual financial
statements for the year ended 31 March 2009.
On 31 December 2008, the Board decided to discontinue the Group's professional
mobile radio division and accordingly placed its 100% subsidiary, SRT PMR
Technology Ltd, into Administration. This operation was not classified as
discontinued as at 30 September 2008 and the comparative income statement and
cash-flows have therefore been re-presented to show the discontinued operation
separately from the continuing operations.
Non-statutory accounts
The financial information for the year ended 31 March 2009 set out in this
interim report does not constitute the Group's statutory accounts for that
period. The statutory accounts for the year ended 31 March 2009 have been
delivered to the Registrar of Companies. The auditors reported on those
accounts; their report was unqualified, did not contain a statement under
either Section 237 (2) or Section 237 (3) of the Companies Act 1985 and did not
include references to any matters to which the auditor drew attention by way of
emphasis.
The financial information for the 6 months ended 30 September 2009 and 30
September 2008 is unaudited.
The interim financial statements are available to download on the Company's
website www.softwarerad.com.
2. Share-based payment
In line with the requirements of IFRS 2, the Group has recognised the following
profit and loss charges in respect of issued share options:
Six months Six months Year
ended ended ended
30 Sep 2009 30 Sep 2008 31 Mar
2009
Unaudited Unaudited Audited
£ £ £
Share options - profit and 58,403 99,750 42,130
loss charge
3. Earnings per share
The basic and diluted earnings per share have been calculated using the loss
for the period of £31,037 (six months ended September 30, 2008 - loss of
£1,619,402; year ended March 31, 2009 loss of £12,177,925) divided by the
weighted average number of ordinary shares in issue of 97,817,107 (six month
ended September 30, 2008 and year ended March 31, 2009 - 97,817,107).
4. Other Reserves
Other reserves consist of: Capital Redemption Reserve £2,857 (2008: £2,857),
Warrants Reserve £62,400 (2008: £62,400) and Merger Reserve £5,425,339 (2008:
£5,425,339). There were no movements during the period.
5. Cash from Operations
Six months Six months Year ended
ended ended
30 Sep 2008 30 Sep 2008 31 Mar 2009
Unaudited Unaudited Audited
Re-presented*
£ £ £
Operating loss (197,190) (577,939) (1,315,603)
Depreciation of property, 19,335 9,148 21,315
plant and equipment
Amortisation of intangible 204,437 160,187 401,027
fixed assets
Share-based payment charge 58,403 99,750 42,130
(Increase)/decrease in 188,609 (379,059) (751,197)
inventories
Decrease in trade and other 296,872 1,300,255 1,606,219
receivables
(Decrease) in trade and other (110,215) (901,065) (1,131,051)
liabilities
Impairment of intangible fixed - - 230,551
assets
Net cash generated / (used) in 460,251 (288,723) (896,609)
operations
*Re-presented - see note 1