TIDMOPE
RNS Number : 3027L
Optare PLC
09 August 2013
Optare plc
("Optare" or the "Company")
Preliminary results for the year ended 31 March 2013
Optare is pleased to announce it preliminary audited results for
the 12 months ended 31 March 2013.
Operational Highlights
-- Winning the prestigious society of motor manufacturers and
traders (SMMT) award for innovation for fast charging Electric
vehicle (EV) technology.
-- Launch of 3 exciting new products, Metrocity, Versa 11.7m and Bonito.
-- Completed 10,000th bus since Optare formation in 1985.
-- Investment in a new paint shop and engineering systems to
continue to deliver high quality engineered products.
-- Successfully completed the export of 177 Solo kits to the
City of Cape Town, this is the highest ever export order achieved
by the company.
Financial Highlights
-- Revenue for the period is GBP75.9m a growth of 6% over prior
period of 15 months to 31 March 2012.
-- Direct labour costs were 7.6% of revenue a reduction of 6.0%
compared to 13.6% over the previous period.
-- Pre-exceptional gross profit was 6.9% of turnover over the 12
month period (4.9% for 2011-12, 15 month period).
-- Pre-exceptional administration costs were 11.6% of turnover
over the 12 month period (15.0% for, 15 month period from 31
December 2011 to 31 March 2012).
-- EBITDA Pre exceptional losses were GBP3.6m (GBP6.8m for 15
month period from 31 December 2011 to 31 March 2012).
-- Exceptional costs of GBP1.8m were for continued Blackburn
site closure, redundancy and restructuring costs.
-- Loss per share reduced from 1.4p per share to 0.3p per share.
-- New increased banking facilities established with three year
term loan and one year overdraft facility.
PG Nilsson Interim CEO commented: "Despite challenging market
conditions over the last twelve months, I am pleased to report that
we are now seeing the positive rewards resulting from consolidating
the manufacturing sites and the significant investment in our new
facilities. We have made considerable progress in supply chain cost
reduction, implementing manufacturing efficiencies and further
improving the quality of our products, and we continue to focus on
our processes to drive continuous improvement. We are confident
that we have built solid foundations for stability and growth to
meet future challenges, secure in the knowledge that we have the
support and backing of Ashok Leyland."
For further information, please contact:
Optare plc Tel: 0845 838 9901
PG Nilsson - Interim Chief Executive
Cenkos Securities plc Tel: +44 (0) 20 7397 8900
Stephen Keys/Camilla Hume
Interim Chief Executive's Statement
I am happy to report that in FY 2012-13 the company continued to
deliver improvements to achieve its strategic goal of delivering
profitability. The Company posted overall sales of 389 single deck
vehicles, a slight decrease on the previous 15 month period.
Further to our traditional sales, we also successfully exported 177
kits to our partners in South Africa.
The total sales turnover increased from GBP71.9m to GBP75.9m,
representing a growth of 6% over the previous 15 month to 31 March
2012 period. Loss after tax was GBP7.4m, a reduction of GBP6.0m and
45% from the prior period due to continued restructuring
progress.
The retail market continues to be suppressed with the overall
sale volumes flat across the Company's traditional markets, with
higher manufacturing capacity than demand. This continues to put
pressure on the both price and volume. The continued financial
crisis in the EU last year also put pressure on the volume front
due to limited access to funding.
FY 2012-13 saw some exciting products launched Versa 11.7m,
Metrocity and Bonito. The full benefits of these products are
expected to be seen in the 2013-14 financial year. Metrocity, which
was shown in the October bus show, is a perfect example of
designing a product for the London market which has been buoyant.
This product is undergoing various trials with our customers. Versa
11.7m has been a success story where we have already sold 40
vehicles post the launch. The Bonito enables us to participate in a
new segment, with a number of exciting opportunities being pursued
on this front.
We ended the year with market share of 36% in the 8-13 ton
segment which is our primary market. This is a growth of 5% points
from the prior year.
The 8-13 ton is our primary participation market but is only 40%
of the overall UK market. To reduce dependency on one section and
one market and to improve top line growth, the Company intends to
diversify the product range and participate in various bus segments
across both the UK and Europe in the future. Optare continues to
invest in new products to secure the long term growth of the
Company. There are more exciting products that the Company will
launch in the FY 2013-14 financial year to expand the range and
enable Optare to compete in more than 90% of the market segment in
UK.
FY 2012-13 was a year of continuing consolidation from three
sites down to one and focusing on short term actions to achieve
profitability and minimise cash out flow while maintaining a long
term view of having the right product to grow and deliver
sustainable profits. We continued to drive our headcount down from
531 in April 2012 to 376 in March 2013 delivering operational
efficiencies.
The partnership with Ashok continues to grow through integration
with their international operations for export opportunities within
the Ashok Global business. We are confident that this will result
in an increased presence in new markets and lead to the conversion
of major contracts into future sizeable orders through their
extensive global sales network. Further, we have exchanged key
personnel on critical areas to focus on continuous improvement of
quality and efficiency to transfer synergies between the
organisations. We have also been successfully working with Ashok's
supply chain to benefit from their critical mass and purchasing
leverage to source materials from low cost countries to deliver
material cost reductions.
Financial Performance
The financial results for the year show a net loss of GBP7.4m
compared to a loss of GBP13.4m in the previous 15 month period
which represents an improvement of 45%.
The GBP7.4m includes exceptional costs of GBP1.8m primarily
relating to further Blackburn site closure costs and redundancy
program to deliver operational efficiencies. Improvements in
performance were primarily driven by increased revenues combined
with improvements in operational efficiency in the period. As a
result the gross profit margin saw a 40% improvement on the prior
year, before exceptional items.
Current Trading
On the 31(st) March 2013, the order book stood at GBP12.2m, the
current order book stands at GBP20.2m. While higher bus
manufacturing capacity in UK and continued economic challenges in
Europe provides significant headwind, the successful launch of
three new products, Metrocity, Versa 11.7m and Bonito should offset
the risks and help deliver volume and revenue as per plan.
We are the industry leaders in Electric Vehicles in the UK
market. The winning of the SMMT innovation award is a testament to
our market leading technology, and recently we won one of the
largest single EV bus contract with Nottingham which further
enhances our reputation in this technology. With increasing
pressure on fuel cost and environmentally conscious customers, this
provides the company with an avenue to differentiate and grow in a
mature market.
Board and Management Changes
Following the implementation of the three year turnaround plan,
Jim Sumner elected to leave the organisation and resign from the
Board of Directors. We thank him for his contribution and wish him
the very best.
The board are in advanced discussions to appoint a successor as
Chief Executive Officer and this is expected to be announced in the
coming months.
Outlook
With the consolidation of site and turnaround behind us, it is
time for the Company to deliver profitability. This will be driven
by the product pipeline including, the Double Decker and other new
products for the export market in 2014.
The Board anticipates that the UK market will be flat in the
near future but growing opportunities exist in the Middle East,
South East Asia and African countries. There are number of
contracts that Optare is participating in overseas markets and we
are awaiting outcomes that, if positive, could, in the Board's
view, significantly change the outlook for the business. We are
confident that our quality, unique design and life cycle cost will
enable us to win some major tenders in the international
market.
The Board looks forward to a profitable future with the
successful launch of the new products, increasing demand and
participation in the international market given the successful
integration with Ashok and recognition of the company's low carbon
technology.
Chairman's Statement
Introduction
2012/13 has been a year of success for recognition of the
Company's position as a leading supplier of green technology of
passenger vehicles and launch of products. Some of the major
achievements for the year include:
1. Winning the prestigious Society of Motor Manufacturers and
Traders (SMMT) award for innovation for fast charging Electric
Vehicle (EV) technology.
2. Launch of 3 new exciting products, Metrocity, Versa 11.7m and Bonito.
3. Completed 10,000(th) bus since Optare formation in 1985.
4. Investment in a new paint shop and engineering systems to
continue to deliver high quality engineered products.
5. Successfully completed the export of 177 Solo kits to the City of Cape Town.
Since the investment of Ashok Leyland, integration with the
larger group has been continuing. Through joint participation in a
number of tenders for 2013-14 we are confident that we will be
successful in new export opportunities. I would like to thank Ashok
for their continued support.
Strategic Development
Our strategy is consistent with what we stated last year which
is outlined below:
-- Being a European leader in green bus technologies through the
development of the full range of options from fuel-efficient
diesels to dual fuel, hybrid and electric vehicles.
-- Consolidating and maintaining the UK leadership in the midi-bus market.
-- Offering a product portfolio with the full range of buses
that is demanded by the UK bus market.
-- Becoming a significant exporter of buses.
-- Expanding the market share in the UK and Europe by selling
buses made to global standards at competitive prices.
During the year we have made progress on all these key strategic
objectives.
Our Customers
Our customers remain key to our business and they continue to
provide excellent support to the Company. We are also pleased to
have received very good feedback on the quality and performance of
the products and will continue to deliver excellent value through
lower life time cost by designing and building lighter buses.
We are delighted to continue to strengthen our business with all
the major bus groups including supplying to First Group after a gap
of eight years. We are confident that this relationship will
continue to grow and we remain committed to delivering high
quality, innovative, value for money products on time.
Our People
Our workforce are critical to the success of our business. I
would like to thank their dedication, commitment and focus on
delivering high quality products. They have also been critical in
continuing to work with us to deliver the strategic objectives of
the Company. Lastly, I would like to thank the shareholders for
continuing to support the Company during its turnaround phase.
Summary
In summary 2013-14 will focus on:
-- With Ashok Leyland support developing products for export
markets and driving international expansion.
-- Increasing volume in the UK by further expanding the product
range and participating in market segments where we do not have a
presence.
-- Continuing to deliver environmentally friendly product technology.
John Fickling
Non-executive Chairman
Consolidated Income Statement for the year ended 31 March
2013
Before Before
Exceptional Exceptional Exceptional Exceptional
items items Total items items Total
Year Year Year Period Period Period
ended ended ended Ended Ended Ended
31 Mar 31 Mar 31 Mar 31 Mar 31 Mar 31 Mar
2013 2013 2013 2012 2012 2012
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 75,938 - 75,938 71,935 - 71,935
Cost of sales (70,695) (1,483) (72,178) (68,370) (3,823) (72,193)
Gross profit/(loss) 5,243 (1,483) 3,760 3,565 (3,823) (258)
Administrative
expenses (8,839) (328) (9,167) (10,812) (776) (11,588)
Distribution
costs (512) - (512) (493) - (493)
Amortisation
of
intangible
assets (643) - (643) (422) - (422)
Loss from
operations (4,751) (1,811) (6,562) (8,162) (4,599) (12,761)
Finance costs (788) - (788) (853) (853)
Finance income - - - 222 - 222
Loss for the
period from
continuing
operations (5,539) (1,811) (7,350) (8,793) (4,599) (13,392)
Loss on ordinary
activities
before taxation (5,539) (1,811) (7,350) (8,793) (4,599) (13,392)
Taxation - - - - - -
Loss attributable
to the equity
holders of
the parent
company (5,539) (1,811) (7,350) (8,793) (4,599) (13,392)
Loss per share (Note 4): Year Period
ended ended
31 Mar 31 Mar
2013 2012
From continuing operations (basic and diluted) (0.3)p (1.4)p
There are no other recognised items of income and expense other
than those presented above.
Consolidated Statement of Changes in Equity for the year ended
31 March 2013
Share
based
Share Merger Retained payment
premium reserve Loss reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 January
2011 3,821 26,759 5,542 (31,137) 27 5,012
Loss for the period - - - (13,392) - (13,392)
Total comprehensive
income for the
period - - - (13,392) - (13,392)
Transactions with
owners in their
capacity as owners:-
Issue of shares
and warrants 5,184 6,219 - - 171 11,574
Transaction Costs - (582) - - - (582)
Total transactions
with owners in
their capacity
as owners 5,184 5,637 - - 171 10,992
Balance at 31 March
2012 9,005 32,396 5,542 (44,529) 198 2,612
Loss for the year - - - (7,350) - (7,350)
Total comprehensive
income for the
year - - - (7,350) - (7,350)
Transactions with
owners in their
capacity as owners:-
Transfer between
reserves on
Forfeiture of options - - - 156 (156) -
Total transactions
with owners in
their capacity
as owners - - - 156 (156) -
Balance at 31 March
2013 9,005 32,396 5,542 (51,723) 42 (4,738)
Consolidated Balance Sheet as at 31 March 2013
31 March 31 March
2013 2012
GBP'000 GBP'000
Non - Current Assets
Goodwill 8,574 8,574
Other intangible assets 8,271 8,032
Property, plant and equipment 3,356 3,126
20,201 19,732
Current Assets
Inventories 10,338 11,275
Trade and other receivables 7,720 8,143
Cash & cash equivalents - 587
18,058 20,005
Assets held for sale - 1,000
Total Assets 38,259 40,737
Current Liabilities
Trade and other payables 20,466 20,167
Loans and overdrafts 18,652 15,207
Provisions 2,217 1,405
Obligations under finance leases 79 49
41,414 36,828
Non Current Liabilities
Provisions 1,394 1,052
Obligations under finance leases 189 245
1,583 1,297
Total Liabilities 42,997 38,125
Net (Liabilities)/Assets (4,738) 2,612
Equity
Share capital 9,005 9,005
Share premium 32,396 32,396
Share based payment reserve 42 198
Merger reserve 5,542 5,542
Retained loss (51,723) (44,529)
Total equity attributable to equity holders
of the parent (4,738) 2,612
Consolidated Cash Flow Statement for the year ended 31 March
2013
Period
Year ended ended
31 March 31 March
2013 2012
GBP'000 GBP'000
Operating activities
Cash absorbed by operations (2,537) (14,946)
Interest paid (788) (853)
Net cash used in operating activities (3,325) (15,799)
Investing activities
Disposal of assets held for sale 1,000 1,000
Purchase of property, plant and equipment (800) (1,920)
Internal capitalised costs (882) (1,582)
Interest received - 222
Net cash used in investing activities (682) (2,280)
Financing activities
Proceeds from issuance of ordinary shares - 10,821
Finance lease repayments (60) (23)
Loan repayments - (3,395)
Short term loan 2,023 9,995
Net cash generated from financing activities 1,963 17,398
Net (decrease) in cash and cash equivalents (2,044) (681)
Cash and cash equivalents at start of
year (3,401) (2,720)
Cash and cash equivalents at end of
period (5,445) (3,401)
1. BASIS OF PREPARATION
Optare plc is a company incorporated and domiciled in the
UK.
The financial information set out in this preliminary
announcement is abridged and does not constitute the Company's
statutory financial statements for the year ended 31 March 2013.
The statutory accounts for 2013 have been prepared following
accounting policies consistent with those for the period ended 31
March 2012. The financial information has been extracted from the
financial statements for the year ended 31 March 2013, which were
approved by the Board on 8 August 2013 and on which the auditors
have reported without qualification.
No statement has been made by the auditor under section 498 (2)
or (3) of the Companies Act 2006 in respect of these abridged
financial statements.
The statutory financial statements for the year ended 31 March
2013 will be posted no later than 19 August 2013 to shareholders
and, once approved, will be delivered to the Registrar of Companies
following the Annual General Meeting on 24 September 2013.
Copies of the Annual Report and Financial Statements for the
year ended 31 March 2013 will be available on the Company's website
www.optare.comfrom 19 August 2013 and from the Company Secretary,
Optare plc, Unit 3 Hurricane Way South, Sherburn in Elmet, Leeds,
North Yorkshire, LS25 6PT.
2. GOING CONCERN
The financial statements have been prepared on the going concern
basis, which assumes that the Group will continue to be able to
meet its liabilities as they fall due for the foreseeable future.
The group made a net loss of GBP7.4m in the year ended 31 March
2013 (2012 GBP13.4m), which has resulted in the group now having
net liabilities of GBP4.7m (2012 net assets of GBP2.6m).
The Group has reviewed its strategy in 2013 and put forward a
trading forecast through to March 2016 which includes detailed cash
flow calculations. The Group has put facilities in place to meet
its funding requirements. The forecasts are based on detailed
assumptions as to sales performance, variable and fixed costs. The
forecasts reflect the introduction of new products from 2014/15,
the strength of the current order book and prospects. This includes
an increased level of exports, both fully built and kits, and
continued sales of Green Bus vehicles - both electric vehicles and
hybrids.
The forecast assumes a gradual increase in the level of savings
in material costs over the forecast period, achieved both through
the Company's own efforts and through joint initiatives with Ashok.
Improvement in labour productivity is factored in, recognising what
has been achieved so far in 2012/13 and from further expected gains
from process improvement and redesigns of the buses for efficient
manufacturing.
There is inherent uncertainty in any forecast. In assessing such
forecasts the Directors have considered the impact of such
uncertainties, including the financial strength of customers, any
lack of visibility regarding sales beyond the current order book,
the ability of suppliers to meet demand, the achievability of
material and labour savings and the possibility that the external
economic environment might worsen. The Directors feel that a
reasonably conservative approach has been taken in the forecast and
that the facilities in place have adequate headroom to allow for
these uncertainties..
Against these uncertainties, there are upside opportunities
which are not reflected in the forecast but which would offset or
mitigate the impact of downside risks which might occur. These
include achieving higher than forecast a) sales volumes b) material
savings, arising from joint initiatives with Ashok, and c)
productivity savings. Further significant high volume sales
opportunities exist in Europe, Southern Africa, the Middle East,
Asia and Australia in excess of the forecast volumes. Further fixed
cost base synergies to integrate the business further with
Ashok.
The Company has been successful in restructuring its debt in
June 2013 to provide total bank facilities of GBP23m. These are
structured into a term loan for three years for GBP15.0m backed by
corporate guarantee provided by Ashok and an overdraft element of
GBP8.0m which falls due for renewal in June 2014. There is a fixed
charge on the assets of the Company following the re-negotiation of
facilities in June 2013. Both of these facilities are placed with
Barclays Plc. The directors are confident that the overdraft bank
facilities will be renewed.
The Group also has a GBP5.2m short term loan facility from Ashok
as at 31(st) March 2013, with a 30 day notice repayment notice
subject to banking covenants.
The Directors are confident that the assumptions underlying
their forecast are reasonable and that the Group will be able to
operate within its increased current funding limits arranged with
support from Ashok. The Directors believe that the Group is well
placed to manage its business risk successfully.
On the above basis the Board believes that it is appropriate to
prepare the financial statements on the going concern basis. The
financial statements do not include any adjustment to the value of
the balance sheet assets or provisions for further liabilities,
which would result should the going concern concept not be
valid.
3. CRITICAL JUDGEMENTS AND ESTIMATES
The preparation of historical financial information in
conformity with Endorsed IFRS requires management to make
judgements, estimates and assumptions that affect the application
of policies and reported amounts of assets and liabilities, income
and expenses. The estimates and associated assumptions are based on
historical experience and various other factors that are believed
to be reasonable under the circumstances, the results of which form
the basis of making the judgements about carrying values of assets
and liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates. The key sources of
estimation that have a significant impact on the carrying value of
assets and liabilities are discussed below:
1 Provision For Warranty Claims
Management has estimated the cost of potential warranty claims
arising on acquisition of the various businesses, and on new bus
sales. This requires an element of judgement about the likely level
of claims and their financial impact upon the business. The factors
affecting the level of warranty cost are: the number of buses sold;
the length in periods and the breadth in cover of the terms of the
warranty given with the bus; the ability of the Company to obtain
suitable back-to-back warranties from its suppliers; the efficency
of the quality processes applied in designing and building the
buses; the strictness with which warranty claims from customers are
vetted, and the extent to which goodwill claims are allowed.
Judgements on the level of warranty provision that is required are
based on the number of buses in service and their remaining
warranty life, with the key estimation being the likely warranty
cost per bus. This is based on historical data, with estimates
where necessary for new vehicle designs. If the assumption for
likely warranty cost per vehicle was adjusted by 10% this would
equate to an under or over provision of GBP292,000.
2 Impairment Reviews
Management perform impairment reviews annually on goodwill,
other intangible assets and tangible assets. These involve
comparing the estimated future cash flows of the business, using a
discounted rate, to the carrying value of the Group's noncurrent
assets. Where the net present value of the forecast cash flows
exceeds the carrying value, no impairment is required. As required
by IFRS, no assumption is made that profits growth can exceed
national, market or product averages without justification.
Clearly, there is an element of judgement required in assessing
the potential future benefits to be derived from these assets. When
completing the impairment review the Directors considered the same
factors as outlined for the Going Concern review, critical
judgements are the discount rate used and the growth in turnover in
the next 3 years business plan by the introduction of new
products.
4. LOSS PER SHARE
The calculation of the basic and diluted Year ended Period ended
loss per share is based on the following 31 March 31 March
data: 2013 2012
GBP'000 GBP'000
Loss:
Loss for the purposes of basic loss per
share
(net loss for the period attributable
to equity holders of the parent) (7,350) (13,392)
Number Number
Weighted average number of ordinary share
for the purposes of basic earnings per
share
2,235,291,827 967,052,981
Basic and fully diluted loss per share (0.3)p (1.4)p
Year ended Period ended
31 March 31 March
Excluding Exceptional Items 2013 2012
GBP'000 GBP'000
Net loss for the period attributable
to equity holders of the parent (7,350) (13,392)
Adjustment to exclude exceptional costs 1,811 4,599
Loss from continuing operations for the
purposes of basic earnings per share (5,539) (8,793)
Basic and fully diluted loss per share (0.2)p (0.9)p
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SSAFDAFDSEDA
Optare (LSE:OPE)
Graphique Historique de l'Action
De Nov 2024 à Déc 2024
Optare (LSE:OPE)
Graphique Historique de l'Action
De Déc 2023 à Déc 2024
