RNS Number:1643I
Magnum Power PLC
28 February 2003
MAGNUM POWER PLC
Preliminary Statement of Results
for the year ended 31 May 2002
Chairman's Statement
The Directors report revenues of #1.61m (2001: #1.55m) and a loss of #0.7m
(2001:#1.2m) for the year ended 31 May 2002.
2002 was a turbulent year for Magnum Power PLC culminating in the suspension of
trading in the Company's shares in August 2002 and the sale of its operating
activities and premises in January 2003.
That outcome was not anticipated in reporting on the half year results to 30
November 2001. At that stage the Board could see steadily increasing activity,
based on key customer forecasts, and with sustained margins and a tightly
controlled cost base, projections showed the Group being able to trade through
to cash generation and profitability despite the very constrained working
capital facility available.
The results to 31 May 2002 evidenced progress in the second half of the year and
that progress continued into the current financial year. However, in August 2002
the Group received notification from two major customers of significant
rescheduling of their requirements. This had a major impact on the business plan
projections indicating that the Group would move into breach of its banking
facilities for a considerable period. Following discussions with our bankers,
the Board requested suspension of trading in the shares.
Following the suspension, the Board reviewed the limited options available to
the Group, and entered into a number of discussions with potentially interested
parties. That culminated in the proposed transaction with the Pentranic Group
which was notified to the market on 29 November 2002. As noted earlier, the
transaction was completed in late January 2003 with the operating subsidiaries,
business and employees, and premises transferring to the Pentranic Group and
settlement of all liabilities to our bankers. Unfortunately this has not given
rise to any capacity to make a cash distribution to shareholders.
The last year has been a very demanding period for the shareholders, the
employees and the Board. Some satisfaction derives from the continuation of the
business, the technology, and the remaining employees who showed a great deal of
commitment throughout a period of major uncertainty, and on behalf of the Board
I would like to acknowledge that commitment.
Bill Miller, the senior independent non executive director, having reached the
age of 70, retires in line with the Company's Articles of Association. Bill has
been committed and industrious in his support of the Company for a number of
years, and I would like to record my appreciation of his input.
Magnum Power PLC is now a stand alone company, with minimal net assets, and the
Board is reviewing opportunities for the Company. I hope that we will be able to
revert to shareholders with an appropriate proposal.
Brian McGhee
Chairman
28 February 2003
Consolidated Profit and Loss Account
For the year ended 31 May 2002
2002 2001
Restated
# #
Turnover 1,609,398 1,548,772
Cost of sales (1,102,419) (1,082,926)
Gross profit 506,979 465,846
Other operating expenses (net) (1,359,428) (1,674,272)
Operating loss (852,449) (1,208,426)
Interest received 3,988 57,802
Interest payable (40,313) (53,775)
Loss on ordinary activities before taxation (888,774) (1,204,399)
Tax on loss on ordinary activities 187,312 -
Loss for the financial year (701,462) (1,204,399)
Loss per ordinary share
Basic and diluted loss per share (0.70p) (1.21p)
Statement of group total recognised gains and losses
For the year ended 31 May 2002
2002 2001
Restated
# #
Loss for the financial year (701,462) (1,204,399)
Unrealised deficit on revaluation of property (231,410) -
Total recognised losses for the related year (932,872) (1,204,399)
Prior year adjustment (241,523)
Total losses recognised since last annual report (1,174,395)
Balance Sheet
At 31 May 2002
Group
2002 2001
Restated
# #
Fixed assets
Intangible assets - 15,100
Tangible assets 976,087 1,281,080
Investments - -
976,087 1,296,180
Current assets
Stocks 236,065 495,180
Debtors 588,924 329,713
Cash at bank and in hand - 372,981
824,989 1,197,874
Creditors: Amounts falling due within one year (703,325) (416,980)
Net current (liabilities)/assets 121,664 780,894
Total assets less current liabilities 1,097,751 2,077,074
Creditors:
Amounts falling due after more than one year (395,505) (441,956)
Net assets 702,246 1,635,118
Capital and reserves
Ordinary share capital 9,993,440 9,993,440
Share premium account 10,793,236 10,793,236
Revaluation reserve 213,529 444,939
Merger reserve (1,702,470) (1,702,470)
Profit and loss account (18,595,489) (17,894,027)
Equity shareholders' funds 702,246 1,635,118
Consolidated Cash Flow Statement
For the year ended 31 May 2002
2002 2001
Restated
# #
Net cash outflow from operating activities (540,989) (1,422,211)
Returns on investments and servicing of finance
Interest received 3,988 57,802
Interest paid (40,313) (53,775)
Net cash (outflow)/inflow from returns on (36,325) 4,027
investments and servicing of finance
Capital expenditure and financial investment
Purchase of tangible fixed assets (1,166) (7,798)
Net cash outflow from capital expenditure and (1,166) (7,798)
financial investment
Cash outflow before financing (578,480) (1,425,982)
Financing
Issue of ordinary share capital - 1,189,244
Repayment of loans (43,164) (33,682)
Capital element of finance lease rental payments (2,954) (5,084)
Net cash (outflow)/inflow from financing (46,118) 1,150,478
Decrease in cash in the year (624,598) (275,504)
Notes to financial statements for the year ended 31 May 2002
1. Turnover and Segment Information
Turnover and loss on ordinary activities before taxation were derived from the Group's principal activity of
designing, developing and selling Built-In Uninterruptible Power Supplies (BI-UPS(R)) and other power supply
equipment. The Group's activities all originate in the UK. Turnover was achieved in the following
geographical areas:
2002 2001
# #
United Kingdom 666,602 494,021
Rest of Europe 231,727 249,271
Rest of World 711,069 805,480
1,609,398 1,548,772
2. Loss On Ordinary Activities Before Taxation
2002 2001
Restated
# #
Loss on ordinary activities before taxation is stated after
(crediting)/charging:
Depreciation of tangible fixed assets
- owned 51,185 50,594
- held under finance leases 23,564 24,651
Amortisation of intangible assets
- patent 15,100 15,100
Operating lease rentals 10,731 26,881
Auditors' remuneration
- audit fees 18,500 18,500
- other services 12,500 5,352
Research and development costs - current year expenditure 502,768 439,693
3. Loss Per Ordinary Share
Loss per Ordinary Share is calculated by dividing the loss attributable to
ordinary shareholders by the weighted average number of Ordinary Shares in
issue.
2002 2001
Restated
# #
Loss attributable to members of Magnum Power PLC 701,462 1,204,399
Weighted average number of Ordinary shares in issue 99,934,398 99,700,018
Loss per Ordinary Share - basic and diluted (0.70p) (1.21p)
As a loss has been incurred in the year ended 31 May 2002, the exercise of share options would not have been dilutive.
Accordingly, the basic and diluted loss per share are the same.
The full financial statements will be posted to shareholders today. Further
copies will be available from the company's registered office at 4 Michaelson
Square, Kirkton Campus, Livingston EH54 7DP from today.
Independent auditors' report to the members of Magnum Power PLC
Basis of audit opinion
We conducted our audit in accordance with auditing standards issued by the
Auditing Practices Board. An audit includes examination, on a test basis, of
evidence relevant to the amounts and disclosures in the financial statements. It
also includes an assessment of the significant estimates and judgements made by
the directors in the preparation of the financial statements, and of whether the
accounting policies are appropriate to the company's circumstances, consistently
applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and
explanations which we considered necessary in order to provide us with
sufficient evidence to give reasonable assurance that the financial statements
are free from material misstatement, whether caused by fraud or other
irregularity or error. In forming our opinion we also evaluated the overall
adequacy of the presentation of information in the financial statements.
Adverse opinion
The Company disposed of its subsidiary companies and premises in January 2003.
The terms of the disposal were such that the Company made no recovery in respect
of its investments in, and amounts due from subsidiaries. The value at which
these amounts are included in the Company balance sheet is consequentially
overstated by #19,959,721.
The directors are currently reviewing opportunities for the Company to continue
as a going concern. At the date of signing our report the company has been
unable to provide to us with satisfactory evidence sufficient to confirm that it
has the ability to meet the short term working capital needs of the group and
that it can continue as a going concern.
This information is provided by RNS
The company news service from the London Stock Exchange
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