RNS Number:3786Q
SRS Technology Group PLC
30 September 2003
For Immediate Release 30 September 2003
SRS Technology Group Plc
Preliminary Results for the year ended 30 June 2003
SRS Technology Group Plc, which develops, markets and sells a range of personal
electronic environmental control devices for the healthcare and consumer
markets, is pleased to announce its Preliminary Results for the year ended 30
June 2003.
Business Review:
* Sales growing - H2 155% higher than H1
* Growing sales pipeline
* Launch of SRS mobile telephone phone link and range of SRS
Intercoms in July2003
Financial Review:
* Turnover increased by 121% to #609,000 (2002 :#274,000)
* Losses maintained at #1.5m in line with August estimate and
strictly contained by rigorous cost controls
* Cash: #306,000
* #540,000 net raised from Placing in August 2003 to fund further
working capital requirements
For more information please contact:
David Gration, Executive Chairman
SRS Technology Group Plc Telephone: 01922 456882
Tim Anderson or Rebecca Skye Dietrich
Buchanan Communications Telephone: 020 7466 5000
CHAIRMAN'S STATEMENT
SRS has continued to make significant progress. Throughout the year we have been
able to report several major milestones in the development of the business. To
date the Company has:
* achieved recognition in the NHS as a quality supplier with growing
sales and repeat purchasing by individual trusts;
* significantly progressed the development of the SRS Lite to address
the needs of the light use market within the healthcare sector and facilitate
access into the elderly consumer market ;
* continued development and upgrading of the SRS 100, with the
introduction of the SRS INTELLec incorporating voice announcement , due later
this year;
* established a network of international resellers including Pride in
the US , the world's leading manufacturer of powered wheelchairs;
* moved forward to access the elderly consumer market in collaboration
with Tunstall, Europe's leading supplier of community alarms;
Financial Results
In line with the estimate announced in August 2003, turnover was #609,000 (2002:
#274,000), with second half sales 155% higher than sales for the first half of
the year. Losses were #1.5 m (2002: #1.5m). These losses reflect product
development costs of the SRS Lite and the SRS INTELLec, both of which are to be
launched by the end of 2003. In addition we have now completed our cost
re-structuring programme, the benefits of which will be reflected in the profit
and loss account and in cash terms, going forward.
Fund Raising
In August 2003, the Company completed a placing raising #540,000 net of expenses
to fund the Company's working capital requirement. I was particularly pleased to
be able to announce that four main board directors invested a total of #94,000
through the placing and further investment was made by our senior management
team in terms of salary and benefit reductions. This reflects the commitment of
our management team to the SRS model and endorses our belief that SRS has a
strong and exciting future.
Current Trading
UK
Sales are continuing to grow, with Q1 2003/4 significantly exceeding the same
period 2002/3.
We expect to start to see some benefit from the Tunstall agreement during the
current period . We have also made good in-roads with the NHS, with
approximately 50 NHS customers buying our products. In addition, we have
started to make sales to Housing Associations and are able to announce that we
have received our first order.
Overseas
Internationally, we continue to develop our business. In May, we signed a
reseller agreement with Picomed in Norway, and have since supplied equipment,
which Picomed are in the process of installing and we continue to develop our
collaboration with Pride.
Product Development
In July, we launched the SRS Mobile Telephone Link, developed in collaboration
with Motorola, and a range of SRS Intercoms on schedule. The SRS Mobile
Telephone Link enables the disabled person using an SRS 100 to make and receive
telephone calls via a mobile telephone while out and about.
Development of the SRS Lite is proceeding to schedule and we expect this to
launch shortly. The SRS Lite is a remote control device designed to address the
needs of the light use market within the healthcare sector and facilitate access
into the elderly consumer market. We have received very positive feedback from
demonstrations of the SRS Lite and it will be previewed at both REHACARE,
Dusseldorf and Medtrade, Atlanta USA, next month.
We anticipate the release of SRS INTELLec by the end of the year. The SRS
INTELLec is the next generation of controller and an advanced version of the SRS
100 that will feature, amongst other functions, voice output.
Board Changes
Since the year end, I have taken over the Chief Executive duties to help the
Company through this phase of its development. Sales growth is top priority and
to drive this forward Juri Sikorski moved from Chief Executive to Sales
Director, so that the Company can benefit fully from his great strength in this
area.
Prospects
In the last year SRS has made strong progress. Our product range is developing
rapidly in-line with our expectations. Our sales have doubled in the last year
and are continuing to demonstrate the enormous potential of the marketplace in
which we operate.
We are firmly committed to our strategy of building sales beginning in the
health sector. Our second year of trading has endorsed the confidence the board
and all our management team have shown in the business. I would like to thank
all the members of the SRS team for their hard work throughout the year and our
shareholders for their support. I look forward to reporting on our progress as
SRS continues to develop.
David Gration
Chairman
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2003
2003 2002
(12 months) (13 months)
# #
TURNOVER 608,809 274,307
Cost of sales (303,641) (152,956)
GROSS PROFIT 305,168 121,351
Development, sales and marketing and administration costs (1,927,005) (1,810,659)
OPERATING LOSS (1,621,837) (1,689,308)
Interest receivable 36,677 98,263
Interest payable (5,265) (3,543)
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (1,590,425) (1,594,588)
Tax on loss on ordinary activities 25,000 75,187
LOSS ON ORDINARY ACTIVITIES AFTER TAXATION AND RETAINED FOR THE (1,565,425) (1,519,401)
YEAR
Basic loss per share 10.53p 11.27p
Fully diluted loss per share 10.36p 10.41p
The above results derive from continuing operations.
There are no recognised gains or losses other that the loss for the year.
GROUP BALANCE SHEET
AT 30 JUNE 2003
2003 2002
# #
FIXED ASSETS
Tangible assets 183,977 187,243
CURRENT ASSETS
Stock 195,702 117,285
Debtors 241,693 203,501
Cash at bank and in hand 306,399 2,079,112
743,794 2,399,898
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR (339,458) (414,519)
NET CURRENT ASSETS 404,336 1,985,379
TOTAL ASSETS LESS CURRENT LIABILITIES 588,313 2,172,622
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR (8,749) (27,633)
NET ASSETS 579,564 2,144,989
CAPITAL AND RESERVES
Called up equity share capital 743,465 743,465
Share premium account 2,920,925 2,920,925
Profit and loss account (3,084,826) (1,519,401)
EQUITY SHAREHOLDERS' FUNDS 579,564 2,144,989
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2003
2003 2002
# # # #
Net cash flow from operating activities (1,732,723) (1,605,616)
Returns on investments and servicing of finance
Interest received 36,677 98,263
Interest paid (5,265) (3,543)
Net cash flow from returns on investments and 31,412 94,720
servicing of finance
(1,701,311) (1,510,896)
Capital expenditure and financial investment
Proceeds from disposal of tangible fixed assets 9,971 4,000
Purchase of tangible fixed assets (88,163) (149,002)
Net cash flow from capital expenditure and (78,192) (145,002)
financial investment
(1,779,503) (1,655,898)
Acquisitions and disposals
Cash in subsidiaries acquired - 634,983
Net cash flow before financing (1,779,503) (1,020,915)
Financing activities
Issue of ordinary share capital - 3,060,927
Increase in finance leases 57,425 52,847
Capital element of finance lease rental (50,635) (13,747)
payments
Net cash flow from financing 6,790 3,100,027
(Decrease)/increase in cash (1,772,713) 2,079,112
NOTE TO THE ACCOUNTS
The financial information set out in this announcement does not constitute the
group's statutory accounts for the period ended 30 June 2003 but is derived from
those accounts. Statutory accounts for the period will be delivered to Companies
House following the group's Annual General Meeting. The group's auditors have
reported on these accounts; their report was unqualified and did not contain
statements under section 237(2) or (3) of the Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange
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