HAR Harvard

 

TIDMHAR 
 
RNS Number : 1710L 
Harvard International PLC 
04 May 2010 
 

Harvard International plc - Trading Update 
Results for the year to 31 March 2010 
The Board of Harvard International plc is pleased to confirm that it expects a 
return to profitability in the financial year to March 2010. In the second half 
of the financial year sales from continuing operations reached GBP35m (2008/9: 
GBP22m) with unaudited operating profits of GBP1.0m from continuing operations 
(2008/9: loss GBP1.7m), bringing total full year sales to GBP77m (2008/9: 
GBP42m) and unaudited operating profits from continuing operations to GBP1.2m 
(2008/9: loss GBP1.7m). 
Tighter financial and cash management controls, in particular of inventory and 
debtor payments, have resulted in an improved cash position. The Group's net 
cash position closed the year at GBP28.9m (2008/9: GBP24.7m), an increase of 
GBP3.3m since the half year.  The second half included the one off payment of 
$10m as settlement of the MPEG claim. 
The company expects to announce its audited results for the year ended 31 March 
2010 in June 2010. 
Commercial strategy 
The Group's review of its commercial strategy has been concluded and the Board 
is now finalising what it believes to be an attractive three year growth plan. 
The Group's focus in the UK will be on: 
- the Digital Media sector, particularly set top boxes (STBs). 
- the distribution of accessories compatible with Apple's product ranges. 
These sectors meet the Group's strategic criteria which targets growth segments, 
within the consumer electronic product market, that are too local in nature to 
meet the business positioning of the larger global brands and where Harvard can 
add value to the retailer's proposition. 
In Australia, the Group's operations are being aligned with the UK's strategy, 
but a broader range of consumer electronic (CE) products will continue to be 
distributed, reflecting local market differences. 
Having restored operational profitability, the management's focus over the next 
12 months will be on building the platform to deliver the Group's new strategy. 
Investment that will significantly upgrade the Group's technical competencies is 
being made now, to ensure that Harvard is well positioned to take full advantage 
of these opportunities and expand the competitive reach of its product range and 
brands. The market focus is moving rapidly towards the delivery of 'video on 
demand' services, where initiatives such as Project Canvas (a multi-partner 
collaborative project led by the BBC) will bring the convergence of digital 
media and broadband into the home. The UK switchover to the digital platform 
will be completed in 2012, and the rollout and scaling up of the HD Freeview and 
Freesat platforms continues to support market growth. 
The market for Apple product accessories is growing but is highly fragmented, 
with many suppliers but no dominant players. As the market matures it is 
expected that retailers will increasingly seek 'one stop shop' solutions, 
creating the space and opportunity for Harvard. 
Other priorities in the new business plan are: 
- to secure longer term contractual relationships with key brands. 
- to consider how some of the 'accelerated' growth opportunities, which emerged 
from the Strategic Review, might be taken forward. 
Return of Capital 
Following the Strategic Review, and taking into account the investment required 
to deliver the Group's growth plan, the Board intends to return GBP10m of the 
Group's cash balance to shareholders following approval at the AGM in September. 
Current Trading 
The market environment remains challenging and CE product categories have 
experienced weak demand in the first three months of calendar 2010. Data from 
market research group GFK suggests that the performance and outlook in Harvard's 
sectors is relatively positive but, in view of the difficult CE backdrop, the 
Board has adopted a cautious approach in setting this year's budget and current 
forecasts are for a flat outcome for STB sales. 
The UK's regional switchover to the digital platform continues but the number of 
households affected will be lower this year than in 2009. The roll-out of HD 
Freeview, the growing popularity of Freesat and the occurrence of the FIFA World 
Cup will be positive factors in 2010/11. Australia has also seen a weaker CE 
market in the first three months of 2010. The government has been raising 
interest rates, dampening demand, as it seeks to manage a stable recovery from 
the global recession. 
The financial results to March 2011 are expected to benefit from the full impact 
of earlier rationalisation programmes, as well as new initiatives designed to 
further reduce costs and improve efficiency. 
 4th May 2010 
ENQUIRIES: 
Mike Ashley, Chief Executive 
                                               Tel: 020 8238 7650 
Colin Grimsdell, Finance Director 
                                            Tel: 020 8238 7650 
Anthony Parker, Analyst & Media Communications 
                     Tel: 07791 201 467 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 TSTKKKDPNBKDBQN 
 

Harvard (LSE:HAR)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024

Harvard (LSE:HAR)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024