Interim Results
22 June 2004 - 2:59AM
UK Regulatory
RNS Number:9842Z
OEM PLC
21 June 2004
Interim Accounts
For the six months ended 31st December 2003
My statement this time includes some very regrettable issues which I outline
below concerning the previous Chief Executive, Brian Schneider, who sadly died
in March 2004. These issues have contributed to a suspension in the trading of
the shares in the Company pending publication of the interim report for the six
months to 31st December 2003. However, I am confident that when the suspension
is lifted the Company can move forward.
With that in mind, I would like, firstly, to present the trading position of the
Company which includes some very encouraging news.
TRADING
The six month period has seen the grant of formal planning consent for Soho
Court on behalf of our major clients and also the sale of our investment at
Northwich.
After negotiations extending for some twelve months, the S106 Agreement in
respect of Soho Court has been finally resolved and a formal planning consent
has now been granted. On behalf of our clients we are investigating joint
development proposals for this exciting project.
We were approached about our investment in Northwich and agreed a sale, which
produced a healthy profit for the Company.
We are continuing to look for development opportunities on behalf of both the
Company and our clients.
We do not recommend the payment of any dividend.
EXCEPTIONAL ITEM
The operating loss for the six month period includes an exceptional loss of
#5.0m. This is our current estimate of the value of monies which belonged to the
Company and the Company's joint venture partners, funders and other creditors
which it appears Mr Schneider applied to his own use and to the use of others
without authorisation since 1997. Whilst the Company has commenced legal action
to reclaim monies from the parties who have benefited from the unauthorised
funds, with the aim of recovering all or part of these monies, the directors
have considered it prudent to provide for the entire potential loss at this
stage. However, the Company is seeking full recovery and in addition will seek
interest on the amounts claimed against all parties.
Investigations are underway, using UHY Hacker Young Chartered Accountants,
solicitors and counsel, to establish the full extent of the above activities and
to finalise the particulars of the claims.
Our joint venture partners have agreed not to demand any payments from OEM until
the situation is resolved and therefore amounts due to them are included in the
category of creditors due after one year.
I am sorry that this year's interim statement includes such depressing news
however there are some exciting projects in the pipeline and I have every
confidence in the future.
Robert P.B. Noonan 21 June 2004
OEM plc
INTERIM RESULTS
Group profit and loss account
Audited Unaudited Unaudited
year to 6 months to 6 months to
30 June 31 December 31 December
2003 2003 2002
#000 #000 #000
1,008 Turnover 1,910 467
563 Operating Profit/(loss) Note 5 (4,136) 234
184 Interest net 88 89
747 Profit/(loss) on ordinary activities (4,048) 323
before taxation
(224) Taxation (285) (97)
523 Profit on ordinary activities (4,333) 226
after taxation
- Dividends - -
523 Retained Profit (4,333) 226
6.55p Earnings per 25p ordinary share (54.26)p 2.83p
1. The interim financial statements have been prepared on the basis of the
accounting policies set out in the Group's 2003 statutory accounts.
2. Taxation has been provided for at the effective rate estimated to be charged
for the full year on the operating profit excluding the exceptional loss.
3. Basic earnings (loss) per share are calculated by dividing the profit (loss)
on ordinary activities after taxation by 7,985,793 being the number of
ordinary shares in issue throughout this half year, the prior year and half
year.
4. The results for the year ended 30 June 2003 are an abridged version of the
Group's statutory accounts for that period which received an unqualified
auditors report and have been filed with the Registrar of Companies.
5. Within this figure is an exceptional loss estimate of #5.0m, which is the
current estimate of the potential loss arising from the activities of Mr
Schneider as outlined in the Chairman's statement.
6. The previous year's data has not been restated.
7. The cash flow statement has not been amended since the exceptional item is a
book provision, and any cash movements relating to the exceptional item will
be accounted for post 31st December 2003.
Summary group balance sheet
Audited Unaudited Unaudited
30 June 31 December 31 December
2003 2003 2003
#000 #000 #000
13 Fixed assets 9 17
Current assets
1,642 Stocks 954 842
4,973 Debtors 3,186 4,386
129 Cash at bank 382 1,358
6,744 4,522 6,586
(913) Creditors - due within one year (1,217) (1,016)
5,831 Net current assets 3,305 5,570
(750) Creditors - due after one year (2,553) (780))
(50) Provisions for liabilities and (50) (60)
charges
5,044 Net assets 711 4,747
1,996 Share capital 1,996 1,996
180 Share premium & other reserves 180 180
2,868 Profit and loss account (1,465) 2,571
5,044 711 4,747
Summary group cash flow statement
Audited Unaudited Unaudited
year to six months to six months to
30 June 31 December 31 December
2003 2003 2002
#000 #000 #000
163 Operating cash inflow/(outflow) 974 1,427
184 Returns on investments 88 89
(60) Financing activities (810) -
287 Increase / (decrease) in cash 252 1,516
This information is provided by RNS
The company news service from the London Stock Exchange
END
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