Final Results
21 October 2004 - 2:58AM
UK Regulatory
RNS Number:3016E
OEM PLC
20 October 2004
OEM plc
PRELIMINARY STATEMENT OF UNAUDITED 2004 RESULTS
STATEMENT BY THE CHAIRMAN
2004 Results
The results for the year include some encouraging profits arising from property
sales and management fees unfortunately outweighed by the exceptional costs
relating to the matters concerning the conduct of the previous Chief Executive
Brian Schneider, which I shall address in the Exceptional Item paragraph.
The loss after taxation for the year was #4,897,000 (2003: profit #523,000).
Loss per share for the year to 30 June 2004 was 61.32p (2003: earnings 6.55p).
Net assets at 30 June 2004 amounted to #147,000 (2003: #5,044,000) equivalent to
1.84p per share (2003: 63.2p). As in previous years, the directors do not
recommend the payment of a dividend (2003: #nil).
Business Review
The year has seen some encouraging activities. As I mentioned in the Interim
Statement, formal planning consent has been granted for Soho Court on behalf of
one of our major clients, and we are investigating further management
development proposals. We sold our Northwich investment for a healthy profit and
have earned a number of fees for managing projects on behalf of clients. The
result, however, has been significantly undermined by the actions of the former
Chief Executive, Brian Schneider.
Exceptional Item
In my Interim Statement, I outlined the situation with regard to the former
Chief Executive, which has led the Company to make a substantial provision
against monies taken by Mr Schneider without authorisation between 1997 and the
date of his death in March this year. The company has commenced legal action to
recover these monies from his Estate and parties who appear to have benefited
from the unauthorised transfer of funds and is using forensic experts, counsel
and solicitors to establish the full extent of these activities and finalise the
particulars of claim. The directors consider it prudent to provide for the
entire potential loss, which at this stage stands at #5.46m, an increase of
#0.46m on the estimate made in the Interim Statement as a result of fees and
other costs incurred. It is unrealistic to expect that the proceedings will be
concluded within the next 12 months unless there is a settlement.
Future of the Company
Although the Directors are currently concentrating their efforts on the
litigation against the estate of the late Mr Schneider and others, we will
continue to seek property or corporate situations, where our low risk strategy
coupled to our expertise may be deployed.
The Company continues to advise clients in relation to the exciting development
of Soho Court and other properties from which we will derive future income.
Our principal objective at the present time is to actively pursue the current
litigation so as to restore shareholder value in as short a time as possible. We
will however continue to invest in property related opportunities as and when
they occur, but bearing in mind our current financial position we will have to
be extremely selective.
Robert P B Noonan
Chairman
20 October 2004
GROUP PROFIT AND LOSS ACCOUNT
for the year ended 30 June 2004
2004 2003
#000 #000
Turnover 2,107 1,008
Cost of sales (868) (3)
Gross Profit 1,239 1,005
Administrative expenses (854) (442)
Exceptional Item
Other Operating income (5,457) -
Operating (Loss)/Profit (5,072) 563
Net interest 195 184
(Loss)/Profit on Ordinary Activities (4,877) 747
before Taxation
Tax on profit on ordinary activities (20) (224)
(Loss)/Profit on Ordinary (4,897) 523
Activities after Taxation
Dividends - -
Retained (Loss)/Profit for the Year (4,897) 523
Basic and Diluted (Loss)/Earnings
per Ordinary Share (61.32 p) 6.55 p
Basic and Diluted Earnings per
Ordinary Share before exceptional
item 7.01 p 6.55 p
No separate Statement of Total Recognised Gains and Losses has been presented.
All such gains and losses have been dealt with in the Group Profit and Loss
Account.
Turnover and operating profit all derive from continuing operations.
BALANCE SHEETS
as at 30 June 2004
GROUP COMPANY
2004 2003 2004 2003
#000 #000 #000 #000
Fixed Assets
Tangible assets 7 13 7 13
Investments - - 606 305
7 13 613 318
Current Assets
Stocks 800 1,642 - -
Debtors 1,421 2,057 2,365 4,046
Long Term Debtors 3,149 2,916 3,149 2,916
Cash at bank and in hand 35 129 35 129
5,405 6,744 5,549 7,091
Creditors (amounts falling
due within one year)
(2,743) (913) (3,955) (1,579)
Net Current Assets 2,662 5,831 1,594 5,512
Total Assets less Current 2,669 5,844 2,207 5,830
Liabilities
Creditors (amounts falling (2,479) (750) (2,479) (750)
due after one year)
Provision for Liabilities (43) (50) (43) (50)
and Charges
Net Assets 147 5,044 (315) 5,030
Capital and Reserves
Called up share capital 1,996 1,996 1,996 1,996
Capital Redemption Reserve 11 11 11 11
Merger Reserve 169 169 169 169
Revaluation reserve - - 34 34
Profit and loss account (2,029) 2,868 (2,525) 2,820
Equity Shareholders' Funds 147 5,044 (315) 5,030
GROUP Cash Flow Statement
for the year ended 30 June 2004
2004 2003
#000 #000 #000 #000
Net Cash Inflow from Operating 6 163
Activities
Returns on Investments
and Servicing of Finance
Interest paid (40) (43)
Interest received 235 195 227 184
201 347
Taxation (181) -
Capital Expenditure and Financial - -
Investment
Net Cash Inflow before Financing 20 347
Financing
Repayment of bank loan (810) (60)
(Decrease)/Increase in Cash in year (790) 287
Reconciliation of net cash flow to movement
in net debt
(Decrease)/Increase in cash in year (790) 287
Cash outflow from decrease in debt 810 60
Reduction in net debt 20 347
Net (debt) at beginning of year (681) (1,028)
Net (debt) at end of year (661) (681)
NOTES:
1. The net cash flow from operating activities is made up as follows:
2004 2003
Operating (loss)/profit (5,072) 563
Depreciation 7 9
Decrease/(increase) in stocks 842 (800)
Decrease in debtors 403 705
Increase/(decrease) in creditors 3,833 (304)
Movement in provision for liabilities and charges (7) (10)
Net cash inflow from operating activities 6 163
2. The number of ordinary shares in issue throughout the year is 7,985,793.
3. The annual general meeting of the Company will be held at 10.30am on 10
December 2004 at the Company's registered offices.
4. The financial information set out above does not constitute the Group's
statutory accounts for the years ended 30 June 2004 or 30 June 2003, but
is derived from those accounts. Statutory accounts for 2003 have been
delivered to the Registrar of Companies in England and Wales, and those for
2004 will be delivered following the Company's annual general meeting. The
auditors have reported on the 2003 accounts: their report was unqualified
and did not contain statements under section 237(2) or (3) of the Companies
Act 1985.
5 The figures included in this preliminary announcement have been prepared on
the basis of the accounting policies set out in the 30 June 2003 financial
statements.
ENQUIRIES:
Secretary OEM plc Tel: 020 7292 5940
This information is provided by RNS
The company news service from the London Stock Exchange
END
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