TIDMHTIG
RNS Number : 0591D
Hightex Group PLC
24 April 2013
24 April 2013
Hightex Group plc
("Hightex" or "the Group")
Preliminary Unaudited Results for the Year Ended 31 December
2012
Hightex Group plc (AIM: HTIG), a leading systems designer and
installer of large area, cable supported membrane roofs and façades
worldwide, announces its preliminary unaudited results for the year
ended 31 December 2012.
Financial Overview:
-- Turnover of EUR17.7 million (2011: EUR19.4 million)
-- Gross profit of EUR2.6 million (2011: gross loss of EUR1.9 million)
-- Pre tax loss of EUR1.2 million (2011: pre-tax loss of EUR5.5 million)
-- Result per share of a loss of 0.43 cents (2011: loss of 2.54 cents)
-- Gross cash balances of EUR0.9 million (2011: EUR2.4 million)
-- Operating costs fell by EUR118,000 to EUR2,765,000, despite
an increased loss on exchange of EUR184,000, with a programme
initiated to deliver cost savings of approximately EUR200,000 in
2013
-- Hightex's confirmed future revenues from contracts secured to
date amount to approximately EUR17.8 million
Membrane and Façade division:
-- Selected to design and install the membrane structure of the
roof on three of the stadia to be used in the FIFA 2014 World Cup
in Brazil: Beira-Rio Stadium in Porto Alegre, Arena das Dunas in
Natal and the host of the competition, the Maracanã Stadium in Rio
de Janeiro. All three installations remain on track.
-- Additional revenues were earned from the Centre for Applied
Energy-Research in Germany and the Prince Sultan Cultural Centre in
Saudi Arabia.
-- The Group continued to advance opportunities for further
membrane contracts in the United Kingdom, Continental Europe and
the Americas.
Solar Cooling division
-- Following a strategic review, the business is now focused on
industrial applications with large scale installations.
-- In consequence of this focus, the business made excellent
progress in the second half of 2012, and increased its sales by 94%
to EUR534,000. As a result, the loss at EBIT level improved by
EUR180,000 to a reduced loss of EUR129,000. The directors believe
that this momentum can be maintained and deliver breakeven or
modest profitability in the current year
Charles DesForges, Executive Chairman, commented:
"The results for 2012 showed a marked recovery in comparison
with 2011. Profitability was restored at the gross profit level.
The prospects for the Group's membrane and solar cooling businesses
have both significantly improved and the directors' firm objective
is to achieve a profit before tax in the current year".
For further information:
Hightex Group plc
Charles DesForges, Executive Chairman Tel: +44 (0) 20 7603 1515
Frank Molter, Chief Executive Officer www.hightexworld.com
FinnCap
Geoff Nash, Henrik Persson - Corporate Tel: +44 (0) 20 7600 1658
Finance
Simon Starr - broking www.finncapitalmarkets.com
Media enquiries
Hudson Sandler
Charlie Jack, Charlie Barker Tel: +44 (0) 20 7398 7706
www.hudsonsandler.com
Chairman's statement
Introduction
Hightex continues to work as a global, innovative leader in the
systems design and installation of large area architectural tensile
polymer membrane roofs and façades by using advanced cable
engineering. The year ended 31 December 2012 showed a marked
recovery in comparison with 2011. Although aggregate revenues fell
by 9% to EUR17.7 million, profitability was restored at the gross
profit level, and the financial results at both the EBITDA and
results before tax showed a significant improvement. The directors'
firm objective is to achieve a Group profit before tax in the year
ending 31 December 2013.
Financial overview
Hightex continues to operate in a very challenging
macro-economic environment. In Europe the market for developers
looking for finance, from any source, for large scale projects
remains extremely difficult. Against this background the directors
believe that the Group made significant progress and achieved a
creditable performance, reducing losses in the membrane and cable
operation by 77% and improving margins to acceptable levels of
around 15%. It remains the focus of the Group to target projects
that deliver at least a 20% margin and the directors believe that
this is achievable. Internal restructuring and changes to
management responsibilities were also made during the year that
contributed to improved margins. Efforts to reduce fixed costs
still further were successful and this drive will continue in
2013.
The ongoing financial turnaround remains our key focus in
2013.
Aggregate revenues in the year, which are calculated by the
percentage of completion method, fell by EUR1.7 million to EUR17.7
million (2011: EUR19.4 million). The majority of the Group's
revenues were earned from its three contracts in Brazil, namely the
Maracanã Stadium in Rio de Janeiro, the Beira-Rio Stadium in Porto
Alegre and the Arena das Dunas in Natal. Further revenues were
generated from one project in Germany, the Zentrum für Angewandte
Energieforschung ("Centre for Applied Energy-Research") and from
the Prince Sultan Cultural Center in Riyadh, Saudi Arabia. In
addition, the maintenance business earned revenues of EUR0.2
million (2011: EUR0.2 million). In the case of two particular
contracts, delays by third parties had the effect of deferring
Group revenue of approximately EUR2.5 million from 2012 into 2013.
If these revenues had been booked in 2012 as budgeted, Group
revenues in 2012 would have shown a modest increase over those of
2011.
The gross profit was increased to EUR2.6 million (2011: gross
loss of EUR1.9 million) an improvement which arose mainly from work
performed on the Brazilian and the German contracts.
Overall operating expenses amounted to EUR2.8 million, a figure
approximately EUR0.1 million lower than in 2011. In 2012, selling
and distribution costs were reduced by EUR0.22 million from EUR1.2
million to EUR0.9 million; research and development costs increased
from EUR0.1 million to EUR0.2 million; and administrative expenses
were unchanged at EUR1.6 million. The reduction of selling and
distribution costs is mainly due to lower employment and associated
costs and other savings. Research and development costs reverted to
their normal level after savings in 2011. The fact that
administrative expenses were unchanged masks two offsetting
features: both personnel expenses and the cost of the office
premises decreased by EUR0.1 million, saving EUR0.2 million in all,
but unrealised currency losses of approximately EUR0.2 million
cancelled out this saving. Following the centralisation and savings
programme started in 2012, Hightex Group expects to achieve further
cost savings of approximately EUR0.2 million from personnel
costs.
At the EBITDA level, the Group recorded a small loss of EUR0.18
million (2011: loss of EUR4.7 million), which represents
significant progress in the Group's turnaround journey. The result
before tax for the full year was a loss of EUR1.2 million, compared
with a loss of EUR5.5 million in 2011. Expressed in per share
terms, the 2012 result amounted to a loss of 0.43 cents, compared
with a loss per share of 2.54 cents in 2011.
Shareholders' funds were EUR7.7 million, compared with EUR8.9
million at 31 December 2011. Gross cash balances as at 31 December
2012 were EUR0.9 million, compared with EUR2.4 million as at 31
December 2011.
Solar cooling business
The strategic review carried out in 2012 determined that the
focus for the business would concentrate on industrial applications
with large scale projects. In consequence, the solar cooling
business almost doubled its sales from EUR276,000 in 2011 to
EUR534,000 in 2012, with most of the growth being achieved in the
second half of the year. As a result the loss at EBIT level
improved by EUR180,000, reducing from EUR309,000 in 2011 to
EUR129,000 in 2012. The business is wholly focussed on maintaining
this sales momentum. The directors believe that this is attainable
and should it do so, the business would deliver a breakeven result
or modestly better in its first full year following the review.
A key feature of the strategic change was to increase the power
output capability of each SolarNext system that is installed and
thereby significantly increase the average contract value. One
important new contract was awarded for a German turkey-breeding
farm where climate control has a major impact on the productivity
of the total business. The potential for an expansion of sales to
this sector is clear. The directors further believe that livestock
breeding units have a considerable need for thermal cooling of
their environment and that SolarNext systems are ideally suited to
meet to this need.
Another innovative step was taken during the year by the award
to SolarNext of the first large value, industrial contract with a
well-known international company involved in the production of high
performance window units. The use of waste material to generate
thermal energy that can in turn be used to control the
manufacturing environment is likely to be of interest to other
industrial sectors.
The current sales and marketing efforts are concentrating in the
first instance on German-speaking territories and then, based on
successful exploitation of the identified opportunities, the
business will address markets further afield.
Prospects
The core strategy for 2013 is to increase revenues in both
operating units and return the Group to overall profit.
In the membrane and cable engineering division, Hightex has
responded to the significant market potential in Brazil. The main
activity during 2012 took place in Brazil where Hightex won three
contracts relating to the 2014 FIFA World Cup competition, due to
complete in 2013. These are the Beira Rio Stadium in Porto Alegre,
the Arena das Dunas in Natal and the National Stadium of Maracana
in Rio de Janeiro. In 2016 Brazil is to host the Olympic Games, and
the related transport infrastructure projects, both air and rail,
are being scheduled. The directors feel that the Group's high
profile and highly regarded existing Brazilian projects will stand
it in good stead in capitalising on these contract opportunities.
Additionally, major prospects for both new and renovated stadia
have already been identified during visits to Russia where the next
FIFA World Cup competition will take place in 2018. Many of the
designs can be realised by making use of membrane technology. The
market is all the more attractive as the Russian government wants
to use this specific event to demonstrate and reinforce the point
that it ranks alongside other Western nations in its ability to
finance and organise major world events. The necessary financial
support from the state will provide an essential underpinning for
this renovation and rebuilding programme.
Elsewhere in Europe the Group has identified longer term, large
scale projects where Hightex technology will be needed for both
roofs and façades. Given the lengthy planning cycle for these
projects, it is essential that marketing initiatives begin in 2013.
Hightex's record of completed global projects admirably supports
these plans, where it has provided innovative solutions to design
issues raised by architects in widening the use of lightweight
materials. The combination of the aesthetics of membrane structures
with the savings on construction costs is very attractive to the
promoters of these schemes, who are seeking to maximize the use of
structures for a wide range of events, both sporting and
entertainment. The availability of retractable roof systems for
membrane technology is an added advantage for these
developments.
Canada and the United States of America provide a new market
opportunity for the Group. Both countries are seeking to emerge
from a quasi-depression partly by spending on infrastructure,
covering not only renovation of venues but also the planning,
design and construction of new ones, many of which favour light
weight engineering construction processes. The Group has been
closely following this general development by opening a small
office in New York and engaging in early-stage, constructive
dialogue with architectural practices and engineering design
groups. The reputation of the Group has been materially assisted by
its work on the BC Place stadium, where its innovative, membrane
roof-closing mechanism has attracted much attention. In consequence
a number of potential projects in the region have been
identified.
In Southern Europe, which has been the focus of much attention
at the political level of the Eurozone and much adverse press
comment, we have seen delays in the start of potential projects and
in some cases there has been a complete failure to deliver the
expected large value projects. The market in Northern Europe has
also been depressed, but there are now clear signs that market
conditions are improving for major developments in sight in France
and the United Kingdom.
The Middle East region is looking more promising as
infrastructure investment is seen as a vital part of the economy.
One of the contracts awarded to Hightex, the Prince Sultan Cultural
Centre in Saudi Arabia, has been delayed as changes on the original
design from the client's architect have been imposed because of
related changes in the local construction codes so as to conform to
higher demands for building security. This delay has had an impact
on group revenues and profit during 2012.
Hightex has also been active in recent years in the introduction
of innovative membrane materials which incorporate mini-LED units,
and which allow a facade of a stadium or other structure to
function as an interactive media platform. This can be used to
convey event information or for advertising. Passive structures are
thereby enabled to become active and of increased potential value.
This initial development has been undertaken in co-operation with a
very large industrial partner.
The prospects of the solar cooling business and the response
from the market, particularly in the field of industrial
applications, support the target of significant growth in sales and
reaching or passing the break-even point in 2013. While growth is
expected first to be gained from the local and national market,
international projects will be pursued based on their strategic
importance to Hightex.
Conclusion
Hightex's confirmed revenues from membrane contracts secured to
date, amount to approximately EUR17.8 million and new potential
membrane contracts are being actively pursued worldwide. The change
of strategy in the solar cooling division has enjoyed a promising
start. The directors are determined to build on the Group's
accumulated experience in both operating units and return the Group
to profitability in 2013 and beyond.
Charles DesForges
Executive Chairman
.
.
Consolidated statement of comprehensive income
For the year ended 31 December 2012
Unaudited Audited
2012 2011
Notes EUR000 EUR000
---------- ---------
Continuing operations
Revenue 4 17,688 19,364
Cost of sales (15,110) (21,219)
---------- ---------
Gross profit / (loss) 2,578 (1,855)
Operating expenses:
Selling and distribution costs (943) (1,164)
Research and development costs (231) (141)
Administrative expenses (1,591) (1,578)
Underlying (loss) / profit before
interest, tax, depreciation and
amortisation (187) (4,738)
Depreciation and amortisation (823) (518)
Operating (loss) (1,010) (5,256)
Share option charge (2) (3)
Finance income 21 37
Finance costs (311) (333)
Share of the profit of associates 93 87
---------- ---------
(Loss) before tax (1,209) (5,468)
Income tax (charge) / credit 6 (3) 690
(Loss) for the year (1,212) (4,778)
---------- ---------
Consolidated statement of comprehensive income (continued)
Unaudited Audited
2012 2011
Notes EUR000 EUR000
---------- ----------
(Loss) for the year attributable
to:
Equity holders (1,212) (4,778)
(1,212) (4,778)
---------- ----------
(Loss) per ordinary share from
continuing operations (cents):
Basic 7 (0.43) (2.54)
Diluted 7 (0.43) (2.54)
Other comprehensive income
Unaudited Audited
2012 2011
EUR000 EUR000
---------- ----------
(Loss) for the year (1,212) (4,778)
Other comprehensive income for
the year, net of tax:
Exchange differences on translating
foreign operations 34 (124)
Total comprehensive income for
the year (1,178) (4,902)
---------- ----------
Total comprehensive loss attributable
to:
Equity holders (1,178) (4,902)
(1,178) (4,902)
---------- ----------
Consolidated statement of financial position
As at 31 December 2012
Unaudited Audited
2012 2011
Notes EUR000 EUR000
---------- --------
Assets
Non-current assets
Goodwill 6,722 6,722
Other intangible assets 8 1,716 1,996
Property, plant and equipment 5,081 5,229
Other financial assets 767 509
Investment in associates 494 401
Deferred tax assets 1 1
---------- --------
14,781 14,858
---------- --------
Current assets
Inventories 246 215
Trade and other receivables 7,525 7,479
Cash and cash equivalents 949 2,402
8,720 10,096
---------- --------
Total assets 23,501 24,954
---------- --------
Equity and liabilities
Shareholders' equity
Share capital 5 3,682 3,682
Share premium 15,059 15,059
Retained losses (10,813) (9,601)
Share option reserve 39 37
Translation reserve (265) (299)
---------- --------
Total equity attributable to equity
holders of the parent 7,702 8,878
---------- --------
Current liabilities
Trade and other payables 11,796 10,159
Borrowings 1,391 2,732
13,187 12,891
---------- --------
Non-current liabilities
Borrowings 2,555 3,109
Deferred tax liability 57 76
---------- --------
2,612 3,185
---------- --------
Total liabilities 15,799 16,076
---------- --------
Total equity and liabilities 23,501 24,954
---------- --------
Consolidated statement of changes in equity
For the year ended 31 December 2012
Share capital Share Retained Share option Foreign
premium losses reserve currency Total
translation
Group reserve
EUR000 EUR000 EUR000 EUR000 EUR000 EUR000
Audited balance at
1 January 2011 2,548 14,634 (4,823) 34 (175) 12,218
------------- -------- -------- ------------ ------------ -------
Loss for the year - - (4,778) - - (4,778)
Currency translation
differences - - - - (124) (124)
------------- -------- -------- ------------ ------------ -------
Total comprehensive
income for the year - - (4,778) - (124) (4,902)
Shares issued during
the year 1,134 567 - - - 1,701
Costs of issue of
shares - (142) - - - (142)
Share option charge - - - 3 - 3
Audited balance at
31 December 2011 3,682 15,059 (9,601) 37 (299) 8,878
------------- -------- -------- ------------ ------------ -------
Loss for the year - - (1,212) - - (1,212)
Currency translation
differences - - - - 34 34
------------- -------- -------- ------------ ------------ -------
Total comprehensive
income for the year - - (1,212) - 34 (1,178)
Share option charge - - - 2 - 2
Unaudited balance
at
31 December 2012 3,682 15,059 (10,813) 39 (265) 7,702
------------- -------- -------- ------------ ------------ -------
Share premium
The share premium reserve represents the consideration that has
been received in excess of the nominal value of shares on issue of
new ordinary share capital.
Retained losses
The retained losses reserve represents profits and losses
retained in the previous and current periods.
Share option reserve
The share option reserve represents amounts recognised directly
in the statement of comprehensive income in the previous and
current periods relating to the share based payment transactions
granted under the Group's share options schemes.
Foreign currency translation reserve
The foreign currency translation reserve represents the
revaluation of overseas foreign subsidiaries and associates.
Consolidated statement of cash flows
For the year ended 31 December 2012 Unaudited Audited
2012 2011
EUR000 EUR000
--------------------- ---------
Cash flows from operating activities
Operating (loss) (1,010) (5,256)
Adjustments for:
(Loss)/profit on disposal of fixed
assets (2) 23
Foreign exchange differences 28 (196)
Bad debts written off 105 73
Depreciation 543 403
Amortisation and impairment of intangibles 280 115
--------------------- ---------
Operating cash flows before movements
in
working capital (56) (4,838)
(Increase) in inventories (31) (167)
(Increase) in receivables (150) 8,887
Increase/(decrease) in payables 1,637 (5,585)
--------------------- ---------
Cash generated from / (used) in operating
activities 1,400 (1,703)
Interest paid (311) (333)
Income tax paid (22) 325
--------------------- ---------
Net cash generated from / (used in)
operating activities 1,067 (1,711)
--------------------- ---------
Cash flows from investing activities
Acquisition of other financial assets (258) (77)
Acquisition of intangible assets - (2,055)
Acquisition of property, plant and
equipment (392) (4,575)
Interest received 21 37
--------------------- ---------
Net cash used in investing activities (629) (6,670)
--------------------- ---------
Cash flows from financing activities
Proceeds from issuance of ordinary
shares - 1,701
Costs of issue of shares - (142)
Proceeds from finance lease - 42
Payment of finance lease liabilities (88) (50)
Proceeds from loans 27 5,279
Repayment of loans (1,654) (218)
Net cash (used in) / generated from
financing activities (1,715) 6,612
--------------------- ---------
Net decrease in cash and
cash equivalents (1,277) (1,769)
Cash and cash equivalents at the beginning
of the year 2,189 3,953
Effect of foreign exchange on cash
and
cash equivalents brought forward 5 5
--------------------- ---------
Cash at bank and cash equivalent at
the end of the year 917 2,189
--------------------- ---------
Cash at bank and in hand comprises:
Cash and cash equivalents 160 1,369
Cash lodged under performance and
warranty bonds 789 1,033
Bank overdrafts (32) (213)
--------------------- ---------
917 2,189
--------------------- ---------
Notes to the financial information
For the year ended 31 December 2012
1 Basis of preparation
The Group financial statements are presented in Euros ("EUR")
which, as the Group is expected to transact more of its business in
Euros than any other currency, is also the functional currency of
the Group.
The financial information has been prepared in accordance with
International Financial Reporting Standards ("IFRS"), IFRIC
interpretations and with those parts of the Companies Act 2006
applicable to companies preparing their accounts under IFRS, as
adopted by the European Union, and the Companies Act 2006. The
financial information has been prepared under the historical cost
convention, as modified by revaluations of financial assets and
financial liabilities at fair value through the statement of
comprehensive income. Details of the accounting policies applied
are set out in the financial statements for the year ended 31
December 2011 and have not changed for the year ended 31 December
2012.
The preliminary announcement for the year ended 31 December 2012
was approved and authorised for issue by the board of directors on
23 April 2013. The financial information set out in this
preliminary announcement does not constitute audited financial
statements for the year ended 31 December 2012. The financial
information for the year ended 31 December 2011 is derived from the
statutory accounts for that year which have been delivered to the
Registrar of Companies. The auditors reported on those accounts:
their report was unqualified and did not draw attention to any
matters by way of emphasis and did not contain a statement under
s498 (2) or (3) Companies Act 2006 or equivalent preceding
legislation. The financial information for the year ended 31
December 2012 is derived from draft financial statements. The audit
of the statutory accounts for the year ended 31 December 2012 is
not yet complete. These accounts are expected to be finalised on
the basis of the financial information presented by the directors
in this preliminary announcement and will be delivered to the
Registrar of Companies following the company's annual general
meeting.
The financial information set out in this preliminary
announcement does not constitute statutory accounts as defined in
Section 434(3) of the Companies Act 2006.
The statutory accounts for 2012 will be finalised on the basis
of the financial information presented in this preliminary
announcement and will be posted to shareholders in May 2013.
2. Basis of consolidation
The consolidated financial statements incorporate the financial
statements of the Company and its subsidiaries made up to 31
December each year. The results of subsidiaries acquired or
disposed of during the year are dealt with in the consolidated
income statement from or up to their effective dates of acquisition
or disposal respectively. Control is normally evidenced when the
Company, or a company which it controls, owns more than 50% of the
voting rights of a company's share capital.
All inter-company transactions and balances within the Group are
eliminated on consolidation.
3. Going Concern
The financial information has been prepared assuming the Group
will continue as a going concern. Under the going concern
assumption, an entity is ordinarily viewed as continuing in
business for the foreseeable future with neither the intention nor
the necessity of liquidation, ceasing trading or seeking protection
from creditors pursuant to laws or regulations. The assessment has
been made based on the Group's economic prospects which have been
included in the financial budget for the years 2013-2014. In
assessing whether the going concern a1ssumption is appropriate,
management takes into account all available information for the
foreseeable future, in particular for the twelve months from the
date of approval of the financial statements.
4. Business Segments
The Group has adopted IFRS 8 Operating Segments with effect from
1 January 2009. Per IFRS 8 operating segments are based on internal
reports about components of the Group, which are regularly reviewed
and used by Chief Operating Decision Maker ("CODM") for strategic
decision making and the resource allocation, in order to allocate
resources to the segment and to assess its performance. The CODM is
Frank Molter, CEO of the Group. The Group's reportable operating
segments are as follows:
i) Membrane Business
ii) Solar Business
The CODM monitors the operating results of each segment for the
purpose of performance assessments and making decisions on resource
allocation. Performance is based on external and internal revenue
generations and profit before tax, which the CODM believes are the
most relevant in evaluating the results relative to other entities
in the industry.
Information regarding each of the operations of each reportable
segment is included below.
Membrane Solar Other Consoli-dation
Business Business Total
EUR000 EUR000 EUR000 EUR000 EUR000
---------- ------------- ------- --------------- --------
2012
External revenue 17,154 534 - 17,688
Internal revenue 792 24 (816) -
Total revenue 17,946 558 (816) 17,688
Finance income 21 - - - 21
Finance costs (310) (1) - - (311)
Depreciation and
amortisation 801 22 - - 823
Share of the profit
of associates - - 93 - 93
(Loss) before
tax (1,080) (129) - - (1,209)
Income tax (3) - - - (3)
(Loss) after tax (1,083) (129) - - (1,212)
Total assets 23,232 269 - - 23,501
Membrane Solar Other Consoli-dation
Business Business Total
EUR000 EUR000 EUR000 EUR000 EUR000
---------- -------------- ------- --------------- --------
2011
External revenue 19,088 276 - - 19,364
Internal revenue - 20 - (20) -
Total revenue 19,088 296 - (20) 19,364
Finance income 37 - - - 37
Finance costs (332) (1) - - (333)
Depreciation and
amortisation (459) (59) - - (518)
Share of the profit
of associates - - 87 - 87
(Loss) / profit
before tax (5,333) (309) 174 - (5,468)
Income tax (690) - - - (690)
(Loss) / profit
after tax (4,643) (309) 174 - (4,778)
Total assets 22,927 346 1,681 - 24,954
The Group's revenue from external customers and information
about its segment assets (non-current assets excluding investments
in associates, deferred tax assets and other financial assets) by
geographical location are detailed below:
Revenue from external Non-current assets
customers
2012 2011 2012 2011
EUR000 EUR000 EUR000 EUR000
----------- ----------- ---------- ---------
UK 10 1,153 2 5
Rest of Europe 2,066 11,945 14,779 14,853
North America 10 5,834 - -
South America 15,200 - - -
Africa - 200 - -
Middle East 351 - - -
Rest of the world 51 232 - -
----------- ----------- ---------- ---------
17,688 19,364 14,781 14,858
92% of the Group's external revenue was derived from three
customers (2011: 84% from three customers).
5. Share capital
Issued
Group Company
2012 2011 2012 2011
EUR000 EUR000 EUR000 EUR000
-------- -------- -------- --------
282,820,727
Ordinary shares of
1p each 3,682 3,682 3,682 3,682
-------- -------- -------- --------
No new shares were issued during 2012.
6. Taxation
Group
2012 2011
EUR000 EUR000
------- -------
Current taxation charge / (credit)
- current year 1 (324)
Current taxation charge - prior year 21 -
------- -------
22 (324)
Deferred taxation (credit)- current
year (19) (366)
Deferred taxation charge - prior year - -
------- -------
(19) (366)
------- -------
Income tax charge / (credit) 3 (690)
------- -------
Analysis of factors influencing the tax charge:
2012 2011
EUR000 EUR000
-------- --------
Loss before taxation (1,209) (5,468)
Loss on ordinary activities at 27% (326) (1,476)
(2011: 27%)
Adjusted tax rate for German construction
business to 15.83% 89 260
International tax rate differences 35 (67)
Adjustment of current tax - prior 21 -
years
Losses for the year not provided for
in deferred tax 249 608
Adjustment of deferred tax - prior (18) -
years
Non taxable income (26) (17)
Expenditure not deductible for tax
purposes (21) 2
Income tax charge / (credit) 3 (690)
-------- --------
The rate of taxation on ordinary activities of 27% is derived
from the composite rate of tax applicable in Germany, where the
majority of the Group's operational activities take place.
7. Earnings per share
(i) Basic and diluted earnings
The basic and diluted earnings per share is calculated by
reference to the earnings attributable to ordinary shareholders
divided by the number of shares in issues as at 31 December as
follows:
2012 2011
Loss attributable to equity holders
of the Company (EUR1,212,000) (EUR4,778,000)
Number of shares Number of
shares
Weighted average number of shares
for the purpose of calculating
basic earnings per share 282,820,727 188,367,791
(ii) Effect of potential ordinary shares
Share options - -
Warrants - 2,186,525
Weighted average number of shares
for the purpose of calculating
diluted earnings per share. 282,820,727 190,554,316
Basic earnings per share based (0.43) cents (2.54) cents
on the weighted average issued
share capital as at 31 December
Diluted earnings per share based (0.43) cents (2.54) cents
on weighted average issued share
capital as at 31 December
In accordance with IAS 33 and as the average share price in the
year is lower than the exercise price, the share options do not
have a dilutive impact on earnings per share for the year ended 31
December 2011.
8. Intangible fixed assets
Movements in the cost, amortisation and net book value of the
assets are as follows:
2012 Development Software Total
Group EUR000 EUR000 EUR000
------------ --------- -------
Cost
As at 1 January 2012 2,775 286 3,061
--------- -------
As at 31 December 2012 2,775 286 3,061
------------ --------- -------
Accumulated Amortisation
As at 1 January 2012 816 249 1,065
Charge for the year 250 30 280
As at 31 December 2012 1,066 279 1,345
------------ --------- -------
Net book value
As at 31 December 2012 1,709 7 1,716
------------ --------- -------
2011 Development Software Total
Group EUR000 EUR000 EUR000
------------ --------- -------
Cost
As at 1 January 2011 742 275 1,017
Addition 2,033 22 2,055
Disposal - (11) (11)
------------ --------- -------
As at 31 December 2011 2,775 286 3,061
------------ --------- -------
Accumulated Amortisation
As at 1 January 2011 742 208 950
Charge for the year 74 41 115
------------ --------- -------
As at 31 December 2011 816 249 1,065
------------ --------- -------
Net book value
As at 31 December 2011 1,959 37 1,996
------------ --------- -------
In 2011 the Group capitalised development expenses of
EUR2,000,000 resulting from the development of the technology of
the new retractable cushion roof which has been developed for the
project B.C. Place Stadium, Vancouver. The Group expects
significant future sales from this new product, which results from
demand in climatic cold or hot regions being triggered by trends
and regulations aiming at sustainability and ecologic-energy
savings.
Development expenses are being amortised over the estimated
useful life which is assessed by management as eight years.
9. Commitments under operating leases
As at 31 December, the Group had total minimum lease payments
under non-cancellable operating leases as follows:
Group
2012 2011
EUR000 EUR000
Land and Buildings:
Within one year 24 55
More than one and less than five years 95 50
------- -------
119 105
------- -------
Other:
Within one year 5 5
More than one and less than five years - -
------- -------
5 5
------- -------
New office premises in Bernau: The Group acquired a new office
building and adjacent factory hall in Bernau, Bavaria which came
with a heritable building right for its premises. The heritable
building right bears a lease of annually EUR24,000 to the owner of
the land. This lease expires on 26 February 2015.
10. Contingent Liabilities
At 31 December, the Group had contingent liabilities under
contracted performance, warranty bonds and advance payments as
follows:
Group
2012 2011
EUR000 EUR000
Total contingent liabilities under
performance bonds and warranties 529 758
------- -------
529 758
------- -------
Included within cash at bank and in hand in the balance sheet is
aggregate cash of EUR789,000 (2011: EUR1,033,000) lodged under the
terms of performance, warranty bonds and advance payments. Access
to cash balances lodged under the terms of such bonds is
restricted.
11. Nature of financial information
These preliminary results will be available from 24 April 2013
on the Company's website www.hightexworld.com. Further copies can
be obtained from the registered office at Masters House, 107
Hammersmith Road, London W14 0QH.
The Company anticipates posting its audited report and accounts
shortly.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR BRGDSCSDBGXX
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