TIDMCINP
RNS Number : 1974Z
Cinpart PLC
17 September 2009
17 September 2009
CINPART PLC
('Cinpart', the 'Company' or the 'Group')
Interim results for the six months ended 30 June 2009
Cinpart, the AIM-quoted electrical components manufacturer and supplier, is
pleased to announce its interim results for the six months ended 30 June 2009
(the "period").
Highlights:
* Establishment of subsidiary Active Energy Limited ("Active Energy") in 5 March
2009, which holds the rights, intangible assets and intellectual property of the
established VoltageMaster brand which manufactures and installs a range of
voltage optimisation equipment.
* Total revenues of GBP802,604 (2008: GBP1,090,907).
* Loss for the period GBP704,992 (2008: GBP194,416).
* Loss attributable to owners of the parent company GBP652,236 (2008: GBP194,416)
* Placing at 2p per share to raise GBP729,000, before expenses completed in March
2009 to provide additional working capital for Active Energy Limited
Post-period Highlights:
* GBP1.18 million contract win for Active Energy, in conjunction with SDC
Industries Ltd, to install its VoltageMaster equipment in the stores of an
international retailer and manufacturer of affordable home products
* Acceptance of a tender to supply VoltageMaster in public sector buildings under
a Framework Agreement to members of the Eastern Shires Purchasing Organisation
("ESPO")
* Placing at 10p per share to raise GBP775,000, before expenses, to strengthen the
Company's balance sheet and advance the rollout of the VoltageMaster
* Increased holding in Active Energy to 72.2 per cent.
Kevin Baker, Cinpart's chief executive officer, commented:
"At a time when the Company's legacy electrical component business has come
under pressure from the economic slowdown, Cinpart's prospects have been
transformed by the establishment of Active Energy. I believe that the new
subsidiary will deliver significant benefits to the Group.
The team at Active Energy has, within a few short months, generated a
significant level of interest in the VoltageMaster product. This interest leads
me to be increasingly confident that, in conjunction with SDC Industries, the UK
based manufacturer of the product, Active Energy will quickly establish itself
as a market leader.
Energy conservation, with the associated cost savings and carbon emission
reductions, is fast becoming a critical requirement for all businesses. The
VoltageMaster product is one of a handful of readily available practical
solutions to address this issue."
Enquiries:
+-----------------------------------------------------------+------------------+
| Cinpart | Tel: 020 3176 |
| Kevin Baker, Chief Executive | 3033 |
| Christopher Foster, Executive Director | Tel: 020 3176 |
| | 3031 |
+-----------------------------------------------------------+------------------+
| John East & Partners Limited, a subsidiary of Merchant | |
| Securities Plc (Nomad) | |
+-----------------------------------------------------------+------------------+
| John East/Simon Clements | Tel: 020 7628 |
| | 2200 |
+-----------------------------------------------------------+------------------+
| Rivington Street Corporate Finance Limited (Joint Broker) | |
+-----------------------------------------------------------+------------------+
| Monisha Varadan | Tel: 020 7562 |
| | 3389 |
| | |
+-----------------------------------------------------------+------------------+
+-----------------------------------------------------------+------------------+
| Mirabaud Securities LLP | |
| (Joint Broker) | |
+-----------------------------------------------------------+------------------+
| Rory Scott | Tel: 020 7878 |
| | 3360 |
+-----------------------------------------------------------+------------------+
| Hansard Group (Public Relations) | |
+-----------------------------------------------------------+------------------+
| Vikki Krause | Tel: 020 7245 |
| | 1100 |
+-----------------------------------------------------------+------------------+
About Cinpart:
Cinpart plc (AIM:CINP) is a designer, manufacturer and supplier of electrical
components. The Group, owns a manufacturing facility in Thailand and operates
through its wholly owned subsidiaries Gasignition Limited; a supplier of
electrical components to small and medium-sized European gas appliance
manufacturers, Derlite Co Limited; an international manufacturer of electrical
and non-electrical components, and Active Energy Limited, the 72.2 per cent.
owned manufacturer and supplier of the VoltageMaster, a device that can reduce
electricity consumption in commercial buildings by up to 20 per cent.
CHAIRMAN'S STATEMENT
The period under review has been significant for Cinpart. We identified and
completed the establishment of Active Energy Limited ("Active Energy") which was
in line with the Company's stated strategy. Your board believes that Active
Energy, which manufactures and installs the VoltageMaster range of voltage
optimisation equipment, will deliver significant shareholder value in the
future. This was endorsed by the announcement of a contract with a value of
GBP1.18 million to supply the VoltageMaster to the stores of an international
retailer and manufacturer of affordable home products, and underpins our
continuing confidence and optimism for the VoltageMaster.
Financial Review
Group revenues for the period were GBP802,604 (2008: GBP1,090,907), all of which
was derived from our legacy businesses; Gasignition Limited, ("Gasignition") a
supplier of electrical components to small and medium-sized European gas
appliance manufacturers and Derlite Co Limited ("Derlite"); an international
manufacturer of electrical and non-electrical components. The decline in
revenues reflected the continued deterioration of worldwide economic conditions
during that period. Gasignition and Derlite were particularly affected by
customers purchasing fewer products, movements in the exchange rate between the
US Dollar and Sterling and the necessity to reduce prices to remain competitive.
The Group reported a loss for the period of GBP704,992 (2008: GBP194,416). The
loss attributable to owners of the parent company is GBP652,236 (2008:
GBP194,416). A number of non-recurring costs contributed to the increased loss,
including GBP57,784 of redundancy costs (relating to 42 employees in Thailand),
which is expected to result in future wage cost savings of approximately
GBP84,000 per annum), share based payment costs of GBP163,328 associated with
the issue of share options to senior executives, other start up expenses of
GBP150,733 relating to the development of Active Energy, as it rapidly increased
the size of its sales team in order to meet tender opportunities and GBP60,743
of costs associated with the Sterling and Thai Baht exchange rate movements. The
average conversion rate during 2008 was 63.52 Baht/GBP and during the six months
ended 30 June 2009, was 52.02 Baht/GBP).
In addition to exchange rate fluctuations, price reductions also affected
margins in the period under review. Gross margins fell from 39.2 per cent in the
period ended 30 June 2008 to 30.7 per cent for the corresponding period in 2009.
Operating Review
Revenue levels remain depressed within Derlite and Gas Ignition, but there are
indications that core customer purchase volumes are slowly increasing. Whilst
the Group has come under pricing pressure, recent new product developments are
expected to improve margins in the short to medium term.
As noted above, the establishment of Active Energy, announced on 5 March 2009,
has been the most significant event in the period under review. To fund this new
business and to support the current operations, we raised GBP729,000 before
expenses by a placing of new ordinary shares at 2 pence per share in March 2009.
In the period under review, the Group rapidly implemented Active Energy's
business plan in order to take advantage of the considerable sales opportunities
in this growing market.
Active Energy manufactures, sells and installs the full range of VoltageMaster
equipment. These devices optimise the power distributed throughout commercial
premises and can provide electricity cost savings of up to 20 per cent. As the
generation of electricity emits CO2 into the atmosphere, the VoltageMaster also
directly reduces CO2 emissions. There are 15 sizes of the VoltageMaster and
installed prices range from GBP8,000 to GBP58,000. There are numerous additional
settings available to customers and each installation is tailored to a
customer's specific requirements.
The Group is working closely with Stephen Coomes, the minority shareholder in
Active Energy and his company, SDC Industries Ltd ("SDC"), which developed the
VoltageMaster product and continues to provide technical support and
manufacturing capacity in the early stages of the development of the Active
Energy business.
Your Board believes that the establishment of Active Energy in the period is
timely. Globally, governments are actively legislating to tackle the reduction
of carbon emissions to prevent further global warming and pollution issues. In
addition, the onset of a global recession has brought forward the requirement to
reduce energy consumption and thereby generate cost savings in both the public
and private sector. The directors believe that recent increases in the cost of
electricity and the need to reduce greenhouse gas emissions have created a large
potential market for the VoltageMaster.
In April 2010, the UK is expected to introduce a new, binding climate change and
energy saving scheme called the Carbon Reduction Commitment. This is intended to
require large business and public sector organisations to improve their energy
efficiency levels. Organisations that do not comply with the new legislation are
expected to incur significant financial penalties.
In addition, SMEs can contribute to carbon emission reduction and enjoy
electricity cost savings as the Carbon Trust recently relaxed its guidelines for
its interest free Carbon Trust Energy Efficiency loans. All businesses whose
electricity consumption falls below the level at which they become liable for
the Carbon Reduction Commitment, i.e. any business in the UK whose electricity
consumption fell below 6 million kWh in the calendar year 2008, qualifies for an
interest free loan to purchase a VoltageMaster. The Carbon Trust offers loans
from GBP3,000 to GBP400,000 with the loan repayment period matched to the
payback of the investment rounded up to the next full year.
The Carbon Trust has also relaxed guidelines for Public Sector bodies. Salix
Finance - the public sector arm of the Carbon Trust offers interest free loans
based on a payback of up to five years. (Previously Salix only offered grants to
public sector bodies on condition of matched funding.) The loans are available
to local authorities, NHS hospitals, schools, colleges, universities, libraries
and any other public body not directly controlled by central government. As with
the Carbon Trust, the VoltageMaster qualifies for interest-free Salix loans.
On 15 June 2009, Active Energy announced it had won a GBP1.18 million contract,
in conjunction with SDC to install VoltageMaster units throughout the UK to a
well known leading international retailer and manufacturer of affordable home
products. Production of the units is almost complete and the installation
programme is expected to be completed in Q4 2009.
On 2 September 2009, the Company announced that Active Energy had received
notice of the acceptance of a tender to supply VoltageMaster in public sector
buildings under a Framework Agreement to members of the Eastern Shires
Purchasing Organisation ("ESPO") This framework agreement allows members of the
group to make direct purchases from Active Energy without going through the
complex public tender process on each occasion. As a Framework Agreement,
neither ESPO nor its members have a contractual commitment to purchase; however
the estimated value of this contract, as advised to Active Energy by ESPO is up
to GBP15 million.
The number of sales opportunities has increased at a faster rate than originally
envisaged. Consequently, in recent weeks Active Energy has doubled the size of
its sales team. The sales process is complex and the sales team is experiencing
longer lead times than anticipated; however the level of current live quotes is
very encouraging. To fund the recruitment of the new members of the sales team
in order to advance the roll out of VoltageMaster, as well as to strengthen the
Group's balance sheet, a further fundraising at 10 pence per share of GBP775,000
before expenses was completed on 10 July 2009.
On 13 August 2009, Cinpart acquired an additional 10 per cent. stake in Active
Energy from Alpha Prospects plc for a total consideration of GBP250,000
(comprising GBP100,000 in cash and the balance by the issue of new Cinpart
shares). Following a share reorganisation of Active Energy, a 2.8 per cent.
stake was sold to Stephen Coomes for a consideration of GBP69,375. The Group's
total interest in Active Energy has increased to 72.2 per cent of its share
capital. Stephen Coomes holds a 27.8 per cent interest.
Outlook
The outlook for the legacy business remains stable. There are increased levels
of orders being received and a number of new products have recently been
introduced for current customers.
The Board is pleased with the progress of Active Energy. Even though it has been
operating for just a few months, it has already secured a substantial contract
with a major retailer, as well as receiving acceptance of its first public
sector tender.
A consequence of the extended sales process is that there have been minor delays
in the commencement of the revenue stream from this new operation and
consequently the results for the year ended 31 December 2009 are expected to be
lower than current market expectations. However the level of active order quotes
remains high and we anticipate that the conversion rate will improve as a result
of the recently announced changes to the Carbon Trust and Salix Government
backed loans, which are available to our potential customers to assist them in
funding the purchase of a VoltageMaster.
We believe that the revitalised Group will return to profitability at an
operating level during the second six months of 2009 and the Board remains very
confident about the prospects for 2010 and beyond.
Philip Palmer
Non-executive Chairman
17 September 2009
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2009
+-------------------------------------+-------+------------+------------+-------------+
| |Notes | Six Months | Six Months | Year |
| | | Ended | Ended | Ended |
| | | 30 June | 30 June | 31 December |
| | | 2009 | 2008 | 2008 |
+-------------------------------------+-------+------------+------------+-------------+
| | | Unaudited | Unaudited | Audited |
+-------------------------------------+-------+------------+------------+-------------+
| | | GBP | GBP | GBP |
+-------------------------------------+-------+------------+------------+-------------+
| | | | | |
+-------------------------------------+-------+------------+------------+-------------+
| Revenue | | 802,604 | 1,090,907 | 2,028,918 |
+-------------------------------------+-------+------------+------------+-------------+
| | | | | |
+-------------------------------------+-------+------------+------------+-------------+
| Cost of Sales | | (556,537) | (662,884) | (1,236,639) |
+-------------------------------------+-------+------------+------------+-------------+
| | | | | |
+-------------------------------------+-------+------------+------------+-------------+
| Gross profit | | 246,067 | 428,023 | 792,279 |
+-------------------------------------+-------+------------+------------+-------------+
| Other income | | 2,329 | 4,541 | 22,292 |
+-------------------------------------+-------+------------+------------+-------------+
| Administrative expenses | | (946,875) | (619,104) | (1,140,654) |
+-------------------------------------+-------+------------+------------+-------------+
| | | | | |
+-------------------------------------+-------+------------+------------+-------------+
| Loss from operations | | (698,479) | (186,540) | (326,083) |
+-------------------------------------+-------+------------+------------+-------------+
| Finance cost | | (6,733) | (8,885) | (18,597) |
+-------------------------------------+-------+------------+------------+-------------+
| Finance income | | 220 | 1,009 | 1,438 |
+-------------------------------------+-------+------------+------------+-------------+
| | | | | |
+-------------------------------------+-------+------------+------------+-------------+
| Loss before tax | | (704,992) | (194,416) | (343,242) |
+-------------------------------------+-------+------------+------------+-------------+
| Income tax expense | | - | - | (3,304) |
+-------------------------------------+-------+------------+------------+-------------+
| | | | | |
+-------------------------------------+-------+------------+------------+-------------+
| Loss for the period | | (704,992) | (194,416) | (346,546) |
+-------------------------------------+-------+------------+------------+-------------+
| | | | | |
+-------------------------------------+-------+------------+------------+-------------+
| Other comprehensive income | | | | |
+-------------------------------------+-------+------------+------------+-------------+
| Exchange differences on translating | | (55,502) | 14,011 | 154,823 |
| foreign operations | | | | |
+-------------------------------------+-------+------------+------------+-------------+
| | | | | |
+-------------------------------------+-------+------------+------------+-------------+
| Total comprehensive income for the | | (760,494) | (180,405) | (191,723) |
| period | | | | |
+-------------------------------------+-------+------------+------------+-------------+
| | | | | |
+-------------------------------------+-------+------------+------------+-------------+
| Loss attributable to | | | | |
+-------------------------------------+-------+------------+------------+-------------+
| Owners of the parent | | (652,236) | (194,416) | (346,546) |
+-------------------------------------+-------+------------+------------+-------------+
| Non controlling interest | | (52,756) | - | - |
+-------------------------------------+-------+------------+------------+-------------+
| | | | | |
+-------------------------------------+-------+------------+------------+-------------+
| | | (704,992) | (194,416) | (346,546) |
+-------------------------------------+-------+------------+------------+-------------+
| | | | | |
+-------------------------------------+-------+------------+------------+-------------+
| Total comprehensive income | | | | |
| attributable to | | | | |
+-------------------------------------+-------+------------+------------+-------------+
| Owners of the parent | | (707,738) | (180,405) | (191,723) |
+-------------------------------------+-------+------------+------------+-------------+
| Non controlling interest | | 52,756) | - | - |
+-------------------------------------+-------+------------+------------+-------------+
| | | | | |
+-------------------------------------+-------+------------+------------+-------------+
| | | (760,494) | (180,405) | (191,723) |
+-------------------------------------+-------+------------+------------+-------------+
| | | | | |
+-------------------------------------+-------+------------+------------+-------------+
| Earnings per share | 2 | | | |
+-------------------------------------+-------+------------+------------+-------------+
| Basic and diluted (pence) | | (1.17) | (0.61) | (1.09) |
+-------------------------------------+-------+------------+------------+-------------+
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2009
+------------------------------------+-------+-------------+-------------+-------------+
| |Notes | 30 June | 30 June | 31 December |
| | | 2009 | 2008 | 2008 |
| | | Unaudited | Unaudited | Audited |
+------------------------------------+-------+-------------+-------------+-------------+
| | | GBP | GBP | GBP |
+------------------------------------+-------+-------------+-------------+-------------+
| Assets | | | | |
+------------------------------------+-------+-------------+-------------+-------------+
| Non-current assets | | | | |
+------------------------------------+-------+-------------+-------------+-------------+
| Goodwill | | 105,028 | 105,028 | 105,028 |
+------------------------------------+-------+-------------+-------------+-------------+
| Property, plant and equipment | | 160,669 | 177,948 | 202,479 |
+------------------------------------+-------+-------------+-------------+-------------+
| | | 265,697 | 282,976 | 307,507 |
+------------------------------------+-------+-------------+-------------+-------------+
| | | | | |
+------------------------------------+-------+-------------+-------------+-------------+
| Current assets | | | | |
+------------------------------------+-------+-------------+-------------+-------------+
| Inventories | | 357,119 | 307,626 | 404,169 |
+------------------------------------+-------+-------------+-------------+-------------+
| Trade and other receivable | | 545,958 | 564,894 | 547,692 |
+------------------------------------+-------+-------------+-------------+-------------+
| Cash and cash equivalents | | 160,169 | 20,260 | 22,059 |
+------------------------------------+-------+-------------+-------------+-------------+
| | | | | |
+------------------------------------+-------+-------------+-------------+-------------+
| | | 1,063,246 | 892,780 | 973,920 |
+------------------------------------+-------+-------------+-------------+-------------+
| | | | | |
+------------------------------------+-------+-------------+-------------+-------------+
| Total assets | | 1,328,943 | 1,175,756 | 1,281,427 |
+------------------------------------+-------+-------------+-------------+-------------+
| | | | | |
+------------------------------------+-------+-------------+-------------+-------------+
| Liabilities | | | | |
+------------------------------------+-------+-------------+-------------+-------------+
| Current liabilities | | | | |
+------------------------------------+-------+-------------+-------------+-------------+
| Trade and other payables | | 454,641 | 357,051 | 436,898 |
+------------------------------------+-------+-------------+-------------+-------------+
| Financial liabilities - borrowings | | | | |
+------------------------------------+-------+-------------+-------------+-------------+
| Interest bearing loans and | | 53,487 | 100,393 | 109,096 |
| borrowings | | | | |
+------------------------------------+-------+-------------+-------------+-------------+
| Corporate Tax | | 3,304 | - | 3,304 |
+------------------------------------+-------+-------------+-------------+-------------+
| | | 511,432 | 457,444 | 549,298 |
+------------------------------------+-------+-------------+-------------+-------------+
| | | | | |
+------------------------------------+-------+-------------+-------------+-------------+
| Net current assets | | 551,814 | 435,336 | 424,622 |
+------------------------------------+-------+-------------+-------------+-------------+
| | | | | |
+------------------------------------+-------+-------------+-------------+-------------+
| Non current liabilities | | | | |
+------------------------------------+-------+-------------+-------------+-------------+
| Financial liabilities - borrowings | | | | |
+------------------------------------+-------+-------------+-------------+-------------+
| Interest bearing loans and | | 11,277 | - | 25,135 |
| borrowings | | | | |
+------------------------------------+-------+-------------+-------------+-------------+
| | | | | |
+------------------------------------+-------+-------------+-------------+-------------+
| Total liabilities | | 522,709 | 457,444 | 574,433 |
+------------------------------------+-------+-------------+-------------+-------------+
| | | | | |
+------------------------------------+-------+-------------+-------------+-------------+
| Net assets | | 806,234 | 718,312 | 706,994 |
+------------------------------------+-------+-------------+-------------+-------------+
| | | | | |
+------------------------------------+-------+-------------+-------------+-------------+
| Equity | | | | |
+------------------------------------+-------+-------------+-------------+-------------+
| Called up share capital | 4 | 4,131,444 | 3,766,748 | 3,766,748 |
+------------------------------------+-------+-------------+-------------+-------------+
| Share premium | | 2,564,873 | 2,233,163 | 2,233,163 |
+------------------------------------+-------+-------------+-------------+-------------+
| Merger reserve | | 128,571 | 128,571 | 128,571 |
+------------------------------------+-------+-------------+-------------+-------------+
| Retained earnings | | (6,038,143) | (5,397,105) | (5,549,235) |
+------------------------------------+-------+-------------+-------------+-------------+
| Foreign exchange reserve | | 72,245 | (13,065) | 127,747 |
+------------------------------------+-------+-------------+-------------+-------------+
| | | | | |
+------------------------------------+-------+-------------+-------------+-------------+
| Attributable to equity holders of | | 858,990 | 718,312 | 706,994 |
| parent | | | | |
+------------------------------------+-------+-------------+-------------+-------------+
| Non controlling interest | | (52,756) | - | - |
+------------------------------------+-------+-------------+-------------+-------------+
| | | | | |
+------------------------------------+-------+-------------+-------------+-------------+
| Total equity | | 806,234 | 718,312 | 706,994 |
+------------------------------------+-------+-------------+-------------+-------------+
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2009
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| | Share | Share | Retained | Translation | Merger | Total | Minority | Total |
| | capital | Premium | earnings | of foreign | reserve | | interest | equity |
| | | | | operations | | | | |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| | | | | | | | | |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| Balance at 1 January | 3,759,763 | 2,186,108 | (5,202,689) | (27,076) | 128,571 | 844,677 | - | 844,677 |
| 2008 | | | | | | | | |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| | | | | | | | | |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| Issue of share capital | 6,985 | 47,055 | - | - | - | 54,040 | - | 54,040 |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| | | | | | | | | |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| Total | - | - | (194,416) | 14,011 | - | (180,405) | - | (180,405) |
| comprehensive income for | | | | | | | | |
| the period | | | | | | | | |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| Balance at 30 June 2008 | 3,766,748 | 2,233,163 | (5,397,105) | (13,065) | 128,571 | 718,312 | - | 718,312 |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| | | | | | | | | |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| Balance at 1 January | 3,759,763 | 2,186,108 | (5,202,689) | (27,076) | 128,571 | 844,677 | - | 844,677 |
| 2008 | | | | | | | | |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| | | | | | | | | |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| Issue of share capital | 6,985 | 47,055 | | | | 54,040 | - | 54,040 |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| Total comprehensive | | | | | | | | |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| income for the year | - | - | (346,546) | 154,823 | - | (191,723) | - | (191,723) |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| Balance at 31 December | 3,766,748 | 2,233,163 | (5,549,235) | 127,747 | 128,571 | 706,994 | - | 706,994 |
| 2008 | | | | | | | | |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| | | | | | | | | |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| Balance at 1 January | 3,766,748 | 2,233,163 | (5,549,235) | 127,747 | 128,571 | 706,994 | - | 706,994 |
| 2009 | | | | | | | | |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| | | | | | | | | |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| Issue of share capital | 364,696 | 364,696 | - | - | - | 729,392 | - | 729,392 |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| | | | | | | | | |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| Share issue costs | - | (32,986) | - | - | - | (32,986) | - | (32,986) |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| | | | | | | | | |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| Share option expense | - | - | 163,328 | - | - | 163,328 | - | 163,328 |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| | | | | | | | | |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| Total comprehensive | | | | | | | | |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| | | | | | | | | |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| income for the period | - | - | (652,236) | (55,502) | - | (707,738) | (52,756) | (760,494) |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
| Balance at 30 June 2009 | 4,131,444 | 2,564,873 | (6,038,143) | 72,245 | 128,571 | 858,990 | (52,756) | 806,234 |
+--------------------------+------------+------------+-------------+-------------+----------+-----------+----------+-----------+
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 June 2009
+------------------------------------+-----+-----------+------------+-------------+
| | | Six | Six Months | Year |
| | | Months | Ended | Ended |
| | | Ended | 30 June | 31 December |
| | | 30 June | 2008 | 2008 |
| | | 2009 | Unaudited | Audited |
| | | Unaudited | | |
+------------------------------------+-----+-----------+------------+-------------+
| | | GBP | GBP | GBP |
+------------------------------------+-----+-----------+------------+-------------+
| | | | | |
+------------------------------------+-----+-----------+------------+-------------+
| Net cash used in operating | 3 | (470,563) | (69,919) | (86,498) |
| activities | | | | |
+------------------------------------+-----+-----------+------------+-------------+
| | | | | |
+------------------------------------+-----+-----------+------------+-------------+
| Investing activities | | | | |
+------------------------------------+-----+-----------+------------+-------------+
| | | | | |
+------------------------------------+-----+-----------+------------+-------------+
| Purchase of property plant and | | (11,753) | (23,115) | (29,468) |
| equipment | | | | |
+------------------------------------+-----+-----------+------------+-------------+
| Sale of property plant and | | - | - | 46,374 |
| equipment | | | | |
+------------------------------------+-----+-----------+------------+-------------+
| Interest received | | 220 | 1,009 | 1,438 |
+------------------------------------+-----+-----------+------------+-------------+
| Net cash (used in)/generated from | | (11,533) | (22,106) | 18,344 |
| investing activities | | | | |
+------------------------------------+-----+-----------+------------+-------------+
| | | | | |
+------------------------------------+-----+-----------+------------+-------------+
| Financial activities | | | | |
+------------------------------------+-----+-----------+------------+-------------+
| | | | | |
+------------------------------------+-----+-----------+------------+-------------+
| Repayment of loans | | (23,595) | - | (14,184) |
+------------------------------------+-----+-----------+------------+-------------+
| (Repayment)/receipt of finance | | (15,799) | 24,256 | (19,543) |
| leases | | | | |
+------------------------------------+-----+-----------+------------+-------------+
| Repayment of bank loans and other | | (30,073) | (55,844) | (10,397) |
| borrowing | | | | |
+------------------------------------+-----+-----------+------------+-------------+
| Proceeds on issue of shares | | 696,406 | 54,040 | 54,040 |
+------------------------------------+-----+-----------+------------+-------------+
| Interest paid | | (6,733) | (8,885) | (18,420) |
+------------------------------------+-----+-----------+------------+-------------+
| | | | | |
+------------------------------------+-----+-----------+------------+-------------+
| Net cash generated from/(used in) | | 620,206 | 13,567 | (8,504) |
| financing activities | | | | |
+------------------------------------+-----+-----------+------------+-------------+
| | | | | |
+------------------------------------+-----+-----------+------------+-------------+
| Cash and cash equivalents at | | 22,059 | 98,717 | 98,717 |
| beginning of period | | | | |
+------------------------------------+-----+-----------+------------+-------------+
| Cash and cash equivalents at end | | 160,169 | 20,260 | 22,059 |
| of period | | | | |
+------------------------------------+-----+-----------+------------+-------------+
NOTES TO THE INTERIM STATEMENT
For the six months ended 30 June 2009
1. Accounting policies
Basis of preparation
This financial information has been prepared using the recognition and
measurement principles of International Accounting Standards, International
Financial Reporting Standards and Interpretations adopted for use in the
European Union (collectively EU Adopted IFRSs).
The principal accounting policies used in preparing the interim results are
those the Group expects to apply in its financial statement for the year ended
31 December 2009 and are unchanged from those disclosed in the Group's Report
and Financial Statements for the year ended 31 December 2008, except for the
adoption of IAS 1 "Presentation of Financial Statements" (Revised).
IAS 1 Presentation of Financial Statements (Revised) includes the requirement to
present a Statement of Changes in Equity as a primary statement and introduces
the possibility of either a single Statement of Comprehensive (combining the
Income Statement and a Statement of Comprehensive Income) or to retain the
Income Statement with a supplementary Statement of Comprehensive Income. The
second option has been adopted by the Group in the preparation of the interim
financial statements. As this standard is concerned with presentation only it
does not have any impact on the results or net assets of the Group.
Non-statutory accounts
The financial information for the year ended 31 December 2008 set out in this
interim report does not comprise the Group's statutory accounts as defined in
section 435 of the Companies Act 2006.
The statutory accounts for the year ended 31 December 2008, which were prepared
under International Financial Reporting Standards, International Accounting
Standards and IFRIC interpretations (collectively IFRS), have been delivered to
the Registrar of Companies. The auditors reported on those accounts: their
report was unqualified, but did include an emphasis of matter relating to going
concern which the auditors drew attention by way of emphasis without qualifying
their report and did not contain a statement under either Section 237 (2) or
Section 237 (3) of the Companies Act 1985.
The financial information for the 6 month periods ended 30 June 2009 and 30 June
2008 is unaudited.
2. Earnings per share
Basic earnings per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of ordinary shares
outstanding during the period.
Diluted earnings per share is calculated using the weighted average number of
shares adjusted to assume the conversion of all dilutive potential ordinary
shares.
Reconciliations are set out below:
+-------------------------------------+--------------+-------------+-------------+
| | Six Months | 2009 | Per-share |
| | Ended | Weighted | amount |
| | 30 June | average | pence |
| | 2009 | number of | |
| | Unaudited | shares | |
| | GBP | | |
+-------------------------------------+--------------+-------------+-------------+
| Basic EPS | | | |
+-------------------------------------+--------------+-------------+-------------+
| Earnings attributable to ordinary | (652,236) | 55,592,613 | (1.17) |
| shareholders | | | |
+-------------------------------------+--------------+-------------+-------------+
| | | | |
+-------------------------------------+--------------+-------------+-------------+
| Effect of dilutive securities | | | |
+-------------------------------------+--------------+-------------+-------------+
| Options (anti dilutive) | - | 7,148,142 | - |
+-------------------------------------+--------------+-------------+-------------+
| | | | |
+-------------------------------------+--------------+-------------+-------------+
| Diluted EPS | | | |
+-------------------------------------+--------------+-------------+-------------+
| Adjusted earnings | (652,236) | 62,740,755 | (1.17) |
+-------------------------------------+--------------+-------------+-------------+
| | | | |
+-------------------------------------+--------------+-------------+-------------+
| | Year | 2008 | Per-share |
| | Ended | Weighted | amount |
| | 31 December | average | pence |
| | 2008 | number | |
| | Audited | of shares | |
| | GBP | | |
+-------------------------------------+--------------+-------------+-------------+
| Basic EPS | | | |
+-------------------------------------+--------------+-------------+-------------+
| Earnings attributable to ordinary | (346,546) | 31,920,728 | (1.09) |
| shareholders | | | |
+-------------------------------------+--------------+-------------+-------------+
| | | | |
+-------------------------------------+--------------+-------------+-------------+
| Effect of dilutive securities | | | |
+-------------------------------------+--------------+-------------+-------------+
| Options (anti dilutive) | - | 3,501,182 | - |
+-------------------------------------+--------------+-------------+-------------+
| | | | |
+-------------------------------------+--------------+-------------+-------------+
| Diluted EPS | | | |
+-------------------------------------+--------------+-------------+-------------+
| Adjusted earnings | (346,546) | 35,421,910 | (1.09) |
+-------------------------------------+--------------+-------------+-------------+
| | | | |
+-------------------------------------+--------------+-------------+-------------+
| | Six Months | 2008 | Per-share |
| | Ended | Weighted | amount |
| | 30 June | average | pence |
| | 2008 | number | |
| | Unaudited | of shares | |
| | GBP | | |
+-------------------------------------+--------------+-------------+-------------+
| Basic EPS | | | |
+-------------------------------------+--------------+-------------+-------------+
| Earnings attributable to ordinary | (194,416) | 31,894,082 | (0.61) |
| shareholders | | | |
+-------------------------------------+--------------+-------------+-------------+
| | | | |
+-------------------------------------+--------------+-------------+-------------+
| Effect of dilutive securities | | | |
+-------------------------------------+--------------+-------------+-------------+
| Options (anti dilutive) | - | 5,481,629 | - |
+-------------------------------------+--------------+-------------+-------------+
| | | | |
+-------------------------------------+--------------+-------------+-------------+
| Diluted EPS | | | |
+-------------------------------------+--------------+-------------+-------------+
| Adjusted earnings | (194,416) | 37,375,711 | (0.61) |
+-------------------------------------+--------------+-------------+-------------+
3. Cash used in operating activities
+------------------------------------+--------------+------------+-------------+
| | Six Months | Six Months | Year |
| | Ended | Ended | Ended |
| | 30 June | 30 June | 31 December |
| | 2009 | 2008 | 2008 |
| | Unaudited | Unaudited | Audited |
| | GBP | GBP | GBP |
+------------------------------------+--------------+------------+-------------+
| | | | |
+------------------------------------+--------------+------------+-------------+
| Loss before tax | (704,992) | (194,416) | (343,242) |
+------------------------------------+--------------+------------+-------------+
| Depreciation charge | 31,309 | 27,816 | 57,032 |
+------------------------------------+--------------+------------+-------------+
| Share based payments | 163,328 | - | - |
+------------------------------------+--------------+------------+-------------+
| Exchange translation costs | (33,248) | 9,642 | 103,060 |
+------------------------------------+--------------+------------+-------------+
| Finance costs | 6,733 | 8,885 | 18,597 |
+------------------------------------+--------------+------------+-------------+
| Finance income | (220) | (1,009) | (1,438) |
+------------------------------------+--------------+------------+-------------+
| Decrease in debtors | 1,734 | 222,902 | 240,104 |
+------------------------------------+--------------+------------+-------------+
| Increase / (Decrease) in creditors | 17,743 | (118,073) | (38,403) |
| | | | |
+------------------------------------+--------------+------------+-------------+
| Decrease / (Increase) in | 47,050 | (25,665) | (122,208) |
| inventories | | | |
+------------------------------------+--------------+------------+-------------+
| Net cash outflow from operating | (470,563) | (69,919) | (86,498) |
| activities | | | |
+------------------------------------+--------------+------------+-------------+
4. Movements in called up share capital
+-------------------------------------+--------------+-------------+-------------+
| | Six Months | Six Months | Year |
| | Ended | Ended | Ended |
| | 30 June | 30 June | 31 December |
| | 2009 | 2008 | 2008 |
| | Unaudited | Unaudited | Audited |
| | Number | Number | Number |
+-------------------------------------+--------------+-------------+-------------+
| Allotted, issued and fully paid: | | | |
+-------------------------------------+--------------+-------------+-------------+
| New ordinary shares of 1p each | 68,417,133 | 31,947,520 | 31,947,511 |
+-------------------------------------+--------------+-------------+-------------+
| Deferred shares of 9.5p each | 15,409,000 | 15,409,000 | 15,409,000 |
+-------------------------------------+--------------+-------------+-------------+
| New deferred shares of 0.49p each | 404,779,408 | 404,779,408 | 404,779,408 |
+-------------------------------------+--------------+-------------+-------------+
| | 488,605,541 | 452,135,928 | 452,135,919 |
+-------------------------------------+--------------+-------------+-------------+
| | | | |
+-------------------------------------+--------------+-------------+-------------+
| | Six Months | Six Months | Year |
| | Ended | Ended | Ended |
| | 30 June | 30 June | 31 December |
| | 2009 | 2008 | 2008 |
| | Unaudited | Unaudited | Audited |
| | Value | Value | Value |
| | GBP | GBP | GBP |
+-------------------------------------+--------------+-------------+-------------+
| Allotted, issued and fully paid: | | | |
+-------------------------------------+--------------+-------------+-------------+
| New ordinary shares of 1p each | 684,171 | 319,475 | 319,475 |
+-------------------------------------+--------------+-------------+-------------+
| Deferred shares of 9.5p each | 1,463,855 | 1,463,855 | 1,463,855 |
+-------------------------------------+--------------+-------------+-------------+
| New deferred shares of 0.49p each | 1,983,418 | 1,983,418 | 1,983,418 |
+-------------------------------------+--------------+-------------+-------------+
| | 4,131,444 | 3,766,748 | 3,766,748 |
+-------------------------------------+--------------+-------------+-------------+
On 4 March 2009, 36,469,613 new 1p ordinary shares were issued at 2p each.
5.Sundry Information
These consolidated half-yearly financial statements were approved by the audit
committee on 16 September 2009 and have been approved for issue by the Board of
Cinpart on 17 September 2009.
Copies of the half-yearly report are available on the Company's website at
www.cinpart.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EAKNKFSPNEFE
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