Final Results
01 May 2003 - 4:21AM
UK Regulatory
RNS Number:6041K
Automotive Precision Holdings PLC
30 April 2003
Automotive Precision Holdings PLC
Preliminary Results for the Year Ended 31 December 2002
30 April 2003
CHAIRMAN'S STATEMENT
The events outlined in our Trading Statement on November 5, 2002, and the
concerns then expressed, have indeed culminated in an unsatisfactory outcome for
the year, with significant losses for the second year running even before the
impact of the capital impairment review discussed later in this report.
For the reasons given in the trading statement, and as a result of the weaker US
dollar, together with lower market prices throughout the year, turnover reduced
to #23.1 million (2001: #25.7 million). Excluding the effect of the impairment
review the pre-tax loss of #2.8 million for the year was almost the same as
2001.
Having considered the performance and prospects of the Group over an extended
period it became clear that the Group's assets were not expressed in the balance
sheet at a realistic value. Consequently the board resolved to carry out a full
review under FRS11 and has concluded that an impairment of the assets to the
extent of #3.1 million should be incorporated into the Accounts as at 31st
December 2002. The lower residual asset value is more in line with the potential
turnover and earnings stream that is expected from the continuing business.
This review has resulted in the Group incurring a pre-tax loss of #5.9
million,.corresponding to a loss of 10.2p per share (2001: 4.9p). The review
also affects the balance sheet but does not impact cash flow, which was #0.4
million positive for the year (2001: negative #3.1 million).
In the face of these results the directors have again decided that a dividend
cannot be recommended
Capital expenditure during the year was tightly controlled and as a result fell
to #1.1 million (2001: #3.0 million). These rigid controls will be applied
throughout 2003 although we plan selectively to invest in new plant and
machinery in support of profitable new business as we continue the process of
rebuilding the Group's order book.
Exchange contracts to sell most of the Group's US Dollar income were put in
place covering the majority of 2003 turnover. These continue until the end of
the year and secure conversion rates that, to date, are better than current
market rates would have allowed.
CURRENT TRADING
At an operational level, considerable progress continues to be made to improve
efficiency whilst reducing significantly the turnover at which the Group
achieves break-even. In addition to the continuing improvements being
implemented by our own teams we have entered into some joint development work
with one of our major customers and early results are promising.
In addition we enjoy close working relationships with a number of our key
customers with a mutually expressed determination to increase the amount of
business we carry out for them. Some new contracts have already been awarded,
which will result in increased sales in the second and third quarters of 2003
and more are expected before the end of the year.
These "special" relationships provide extra value to both partners and are a
crucial factor in our rebuilding plans.
FINANCE
The Directors, having reviewed the economic and trading outlook for the Group,
consider that the current funding structure might not provide adequate
facilities for the foreseeable needs of the Group.
Accordingly, over the past 2 months the Board, having taken advice on the most
appropriate available sources of funding, have been conducting detailed
negotiations with finance providers. The Board is now in discussion with
potential lenders which, if the negotiations are concluded satisfactorily, will
provide the Group with additional working capital and a more sustainable long
term solution. Essentially, this would result in the replacement of the majority
of the existing bank indebtedness with a new asset based facility provided on a
medium term basis. This would allow the Board to adopt a longer term outlook in
managing the business, which, the Board believes is essential for the Group and
would secure a more stable future for customers, suppliers, employees and
shareholders.
Further details of the re-financing will be provided when the negotiations have
been concluded. However, the Board believes that a failure to conclude these
negotiations satisfactorily will result in the Group having immediately to seek
alternative sources of funding or the Group would be unable to continue to trade
OUTLOOK
Current activity levels are still well below capacity and do not yet enable us
to operate profitably. Last year's lost business has not yet been fully replaced
although a number of good opportunities are being pursued and the directors
believe that turnover will be restored at profitable levels over the next 18
months.
The executive team is working effectively on identified efficiency improvements
using new working methods involving people at all levels. The key to our success
is now securing additional turnover and everyone is focussed on achieving this.
EMPLOYEES
Our employees have faced even greater challenges during 2002 and have performed
with determination and resilience. They have continued to support our efforts to
improve our underlying performance throughout and my admiration, appreciation
and thanks together with those of the whole board cannot be overstated.
A.K. MITCHARD
Chairman
30 April 2003
For further information:
Stefan Petszaft, Managing Director Peter Willetts
Automotive Precision Holdings PLC Tavistock Communications
Tel: 01732 365 421 Tel: 020 7600 2288
Consolidated Profit and Loss Account
For the year ended 31 December 2002
Notes 2002 2001
#'000 #'000
Turnover 23,128 25,687
Cost of sales (19,728) (20,389)
---------- ----------
Gross profit 3,400 5,298
Distribution costs (1,184) (1,216)
Administrative expenses (4,177) (3,836)
---------- ----------
Operating (loss)/profit (1,961) 246
Impairment of tangible fixed assets (3,140) -
Exchange losses (277) (2,521)
Interest receivable 10 40
Interest payable (570) (609)
---------- ----------
Loss on ordinary activities before taxation (5,938) (2,844)
Tax on loss on ordinary activities 1,766 847
---------- ----------
Loss for the financial year transferred
from reserves (4,172) (1,997)
======== ========
Loss per ordinary share 1 (10.2)p (4.9)p
======== ========
Consolidated Balance Sheet as at 31 December 2002
2002 2001
#'000 #'000
Fixed assets
Tangible assets 12,475 17,158
---------- ----------
Current assets
Stocks 2,094 2,251
Debtors 4,733 7,185
Cash at bank and in hand 304 341
---------- ----------
7,131 9,777
Creditors: Amounts falling due within one year (11,365) (12,624)
---------- ----------
Net current liabilities (4,234) (2,847)
---------- ----------
Total assets less current liabilities 8,241 14,311
Creditors: amounts falling due after more than
one year (1,805) (2,669)
Provision for liabilities and charges
Deferred taxation - (1,034)
---------- ----------
Net assets 6,436 10,608
======== ========
Capital and reserves
Called up share capital 4,085 4,085
Share premium account 86 86
Profit and loss account 2,265 6,437
---------- ----------
Equity shareholders' funds 6,436 10,608
======== ========
Consolidated Cash Flow Statement
For the year ended 31 December 2002
2002 2001
#'000 #'000
Cash inflow/(outflow) from operating activities 2,811 (82)
---------- ----------
Returns on investments and servicing of finance
Interest received 10 40
Interest paid (355) (350)
Interest element of hire purchase and finance
lease payments (215) (259)
---------- ----------
(560) (569)
---------- ----------
Capital expenditure
Purchase of tangible fixed assets (1,087) (2,995)
Sale of tangible fixed assets 4 1
---------- ----------
(1,083) (2,994)
---------- ----------
Cash inflow/(outflow) before use of liquid
resources and financing 1,168 (3,645)
---------- ----------
Financing
Capital element of hire purchase and finance
lease payments (1,298) (871)
New hire purchase and finance lease
agreements 754 1,691
Repayment of secured loan (233) (233)
(777) 587
---------- ----------
Increase/(decrease) in cash for the year 391 (3,058)
======== ========
Notes to the Financial Statements
For the year ended 31 December 2002
1. Loss per share
The loss per ordinary share is calculated on the number of shares in issue
throughout the year of 40,846,976 (2001 : 40,846,976) and on a loss after
taxation of #4,172,000 (2001 : #1,997,000).
2. The above financial information does not constitute statutory accounts within
the meaning of Section 240 of the Companies Act 1985. Full accounts for 2002
will be finalised on the basis of the financial information presented by the
directors in this preliminary announcement and will be filed with the Registrar
of Companies in due course.
Copies of the Annual Report will be sent to shareholders. Further copies will be
obtainable from the Company's registered office at 2-8 Morley Road, Tonbridge,
Kent TN9 1QZ.
This information is provided by RNS
The company news service from the London Stock Exchange
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