Quadrant Group Plc - Interim Results
31 March 1998 - 9:12PM
UK Regulatory
RNS No 3227x
QUADRANT GROUP PLC
31st March 1998
Quadrant Group plc ("Quadrant")
(The Precision Engineering and Electronic Systems Group)
Interim Results for the half year to 30 November 1997
The overall result for the period was a loss before tax of
#323,000, which is obviously still unsatisfactory, but a
substantial improvement at all levels on the major losses
incurred last year.
Turnover within continuing operations grew by 52% compared
with the first half of the previous year, virtually all
organic growth. Results improved in every area, although the
levels of growth and change (in what are essentially young
businesses) have been such that net margins are still well
short of potential.
Quadrant Precision Manufacturing ("QPM") in the United States
has continued to strengthen its position as a major supplier
of aircraft components, with like-for-like turnover in the
half year up 59%. More significantly, a large portion of
future work has been secured on long term contracts for which
QPM is the sole supplier. Such contracts in the current order
book have an estimated value of over $14 million per year over
the next five years. Operating margins at QPM improved
overall to above 5%, despite losses incurred at the Portland
commercial sheet metal plant which was closed in January this
year. During the second half, QPM will complete its major
capital investment programme with the consolidation of four
sites into two, one of which is a new larger factory in
Portland.
Quadrant Video Systems ("QVS") also achieved revenue growth
exceeding 50%, mainly from its CCTV activities where QVS has
maintained its leading position in large town centre
installations. Results improved, but were still held back by
insufficient returns on its branch based professional video
business. Action is being taken to improve QVS' overall
margins through rationalisation of the branch network and
other cost reductions which will be completed in the second
half.
Quadrant Systems ("QSL") maintained good utilisation of its
existing two flight simulators and successfully completed a
major simulator update for an airline customer. As previously
reported, QSL has been searching for appropriate simulators to
add to its training centre in the two bays available. We are
pleased to report that we have purchased an Airbus A300B4
simulator which will be unique in the UK and for which
commitments have already been received from customers.
Quick Imaging Centre earned a small profit during the period.
Overall, difficult issues remain but these are being addressed
with energy and commitment.
Lord Rees
Chairman
For further information contact:
Nigel Poultney (Finance Director)
01527 850080
Brian Coleman-Smith (Binns & Co Public Relations)
0171 786 9600
Quadrant Group plc
Consolidated Profit and Loss Account
for the half year to 30 November 1997
Unaudited Unaudited
Half year Half 15
to year to months
30 31 to
Notes November August 31 May
1997 1996 1997
#'000 #'000 #'000
Turnover
Continuing operations 1 14,142 9,309 26,807
Discontinued operations 1 1,085 16,606 20,873
------- ------- -------
15,227 25,915 47,680
------- ------- -------
Operating profit/(loss)
Continuing operations 217 (54) (388)
Central costs -
continuing operations (262) (349) (347)
------ ------- ------
(45) (403) (735)
Discontinued operations (260) 108 (2,219)
Provisions for loss on
disposal of subsidiary
utilised 260 0 0
-------- ------- -------
(45) (295) (2,954)
Exceptional items 0 0 (5,997)
-------- ------- -------
Loss before interest (45) (295) (8,951)
Net interest payable (278) (362) (842)
-------- ------- -------
Loss before taxation (323) (657) (9,793)
Tax charge 2 (47) (49) (26)
-------- ------- -------
Loss on ordinary (370) (706) (9,819)
activities after
taxation
Minority interests (15) (17) (13)
------- ------- -------
Loss attributable to
shareholders (385) (723) (9,832)
Dividends 0 0 0
------- ------- -------
Retained loss (385) (723) (9,832)
====== ====== ======
Loss per ordinary share 3 (6.2)p (38.6)p (470.1)p
====== ====== ======
IIMR loss per ordinary 3 (10.4)p (38.6)p (197.7)p
share ====== ====== ======
Quadrant Group plc
Consolidated Balance Sheet
30 November 1997
Unaudited
30 31 May
November 1997
1997 #'000
#'000
Fixed assets
Intangible assets 0 136
Tangible assets 6,520 8,166
------ ------
6,520 8,302
------ ------
Current assets
Stocks 1,818 3,515
Debtors 5,007 5,127
Freehold property held for 0 1,200
resale
Cash at bank and in hand 83 176
------- -------
6,908 10,018
Creditors: amounts falling due
within
one year (including convertible 8,229 9,411
debt) ------- -------
Net current assets/(liabilities) (1,321) 607
------- -------
Total assets less current 5,199 8,909
liabilities
Creditors: amounts falling due
after more
than one year (including 1,695 2,056
convertible debt)
Provision for liabilities and 597 3,543
charges ------ ------
Net assets 2,907 3,310
====== ======
Capital and reserves
Called-up share capital 4,613 4,613
Share premium account 6,789 6,789
Other reserves 1,005 1,038
Goodwill write-off account (1,030) (1,030)
Profit and loss account (8,577) (8,192)
------- -------
Equity shareholders' funds 2,800 3,218
Equity minority interests 107 92
------ ------
2,907 3,310
====== ======
Notes
1)Continuing operations comprise the businesses of Quadrant
Systems, Quadrant Video Systems, Quadrant Precision
Manufacturing, Inc. and Quick Imaging Centre. Discontinued
operations comprise Yewlands Engineering Co. which was sold on
6 August 1997 and the photographics businesses of Sangers,
Leeds Photovisual, Premier Distribution and Prisma (Europe)
which were sold on 28 August 1996.
2)Tax charges arise in respect of the United States subsidiary
only.
3)The calculation of loss per share is based on losses of
#385,000 (half year to August 1996: #723,000; 15 months to May
1997: #9,832,000) and on 6,202,455 shares (half year to August
1996: 1,873,783; 15 months to May 1997: 2,091,638), being the
weighted average number of shares in issue during the period.
The average number of shares in issue prior to 7 May 1997, when
the ordinary shares of 10p each were split and consolidated
into ordinary shares of 20p each, has been calculated as though
an equivalent number of ordinary shares of 20p each had been in
issue throughout the period. The earnings per share measure
recommended by the Institute of Investment Management and
Research (the "IIMR earning per share") has been calculated on
the loss attributable to shareholders excluding exceptional
capital costs.
4)The half year figures are unaudited and do not constitute
statutory accounts.
5)The figures for 31 May 1997 have been abridged from the
statutory accounts for the 15 month period ended 31 May 1997.
The Auditors' opinion on these accounts was unqualified and the
statutory accounts have been filed with the Registrar of
Companies.
END
IR SDWFSFUAUFID
Quadnetics (LSE:QDG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Quadnetics (LSE:QDG)
Historical Stock Chart
From Jul 2023 to Jul 2024
