RNS Number:3544I
Harrier Group PLC
06 March 2003
HARRIER GROUP PLC
PRELIMINARY RESULTS ANNOUNCEMENT
FOR THE YEAR ENDED 31 DECEMBER 2002
CHAIRMAN'S STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2002
It is most disappointing to report a 44% fall in revenue for the year ended 31
December 2002 to #9.5m (2001: #17m) resulting in an increased operating loss
before exceptional severance costs and goodwill write off #864,536 (2001:
#48,172). After severance costs of #193,964 and goodwill write downs of
#17,997,459 the loss for the financial year was #19,005,410.
Our confidence for 2002 was soon dented by difficult trading conditions
throughout the year which affected the whole of our chosen market sector. As a
result we carried out two cost reduction exercises during the year in May and
September to bring our cost base in line with revenue and return the Group to
profitability. Whilst our activity level and prospect list has improved,
conversion of these into orders has lengthened with the tightening in the
economy.
Owing to the severe drop in our market capitalisation and the poor trading
result for the year, we have decided to totally write off the remaining balance
of goodwill amounting to #17,997,459.
Due to the poor trading result, cash balances have declined during the year to
#1.6m (2001: #2.3m).
I would like to thank our management, staff and shareholders for their loyalty
and support during a very difficult year.
David Cheesman, our Chief Executive, has decided to retire from the Board with
effect 6 March 2003 to pursue his other interests. We thank him for his
valuable contribution to the Group and wish him every success for the future.
He is being succeeded by Jim Stoddart who brings with him a wealth of experience
in the IT sector, Jim has over 30 years experience in the Information Technology
("IT") industry in the US, UK and Middle East. He also has a successful record
in hardware and software technology sales, marketing, project management, and
the IT services marketplace. His brief is to grow the existing business whilst
expanding into complementary areas by organic growth and acquisitions in line
with his previous experience.
We are determined to grow the Harrier Group in a profitable and positive manner
and hope to be able to achieve an improved result for 2003.
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2002
2002 2001
# #
Turnover 9,544,299 17,052,456
Cost of sales (4,537,280) (10,207,318)
Gross profit 5,007,018 6,845,138
Administration expenses (5,871,554) (6,893,310)
Operating loss before goodwill impairment
provision and exceptional severance costs (864,536) (48,172)
Exceptional severance costs (193,964) (187,479)
Goodwill impairment provision (17,997,459) (989,733)
Operating loss (19,055,959) (1,225,384)
Interest receivable 541,123 807,674
Interest payable (490,574) (727,040)
Loss on ordinary activities before taxation (19,005,410) (1,144,750)
Taxation - -
Loss for the financial year (19,005,410) (1,144,750)
Basic loss per share ( 66.18p) (4.00p)
Diluted loss per share ( 59.19p) (3.59p)
IIMR 'headline' loss per share ( 3.51p) (0.54p)
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2002
# 2002 # 2001
# #
Fixed assets
Intangible assets - 17,878,082
Tangible assets 616,285 798,209
616,285 18,676,291
Current assets
Stocks 28,782 21,140
Debtors 1,797,308 3,173,711
Cash and bank balances 1,595,654 2,275,448
Term deposit 12,000,000 14,000,000
15,421,744 19,470,299
Creditors: Amounts falling
due within one year (2,942,163) (4,045,314)
Net current assets 12,479,581 15,424,985
Total assets less current
liabilities 13,095,866 34,101,276
Creditors: Amounts falling due
after more than one year (12,000,000) (14,000,000)
Net assets 1,095,866 20,101,276
Capital and reserves
Called up share capital 287,197 287,197
Share premium account 23,939,703 23,939,703
Capital redemption reserve 268,972 268,972
Profit and loss account (23,400,028) (4,394,618)
Equity shareholders' funds 1,095,844 20,101,254
Minority interests 22 22
Total shareholders' funds 1,095,866 20,101,276
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2002
# 2002 # 2001
# #
Net cash (outflow)/inflow from (558,766) 367,222
operating activities
Returns on investments and servicing
of finance
Interest received 541,123 807,674
Interest paid (490,574) (727,040)
50,549 80,634
Taxation
Corporation tax paid - (257,840)
Capital expenditure and financial
investment
Purchases of tangible fixed assets (71,239) (290,685)
Sales of tangible fixed assets 19,040 35,449
Net cash outflow from investing
activities (52,199) (255,236)
Acquisitions and disposals
Purchase of subsidiary undertaking (119,378) -
Net cash outflow before financing (679,794) (65,220)
Financing
Issue of ordinary share capital - 5,147
Hire purchase loans repaid - (16,834)
- (11,687)
Decrease in cash (679,794) (76,907)
2002 2001
# #
Reconciliation of net cash flow
to movement in net funds
Decrease in cash in the year (679,794) (76,907)
Change in net debt resulting from cashflows - 16,834
Movement in net funds in the year (679,794) (60,073)
Net funds at start of year 2,275,448 2,335,521
Net funds at end of year 1,595,654 2,275,448
NOTES TO THE FINANCIAL INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2002
1. The preliminary announcement of results has been prepared under
the historical cost convention in accordance with the Group's accounting
policies for the year ended 31 December 2002.
2. The above financial information does not constitute statutory
accounts as defined in Section 240 of the Companies Act 1985. The summarised
balance sheet at 31 December 2002 and the summarised profit and loss account and
cash flow statement for the year then ended have been extracted from the Group's
financial statements. These financial statements have not yet been delivered to
the Registrar of Companies.
3. The calculation of basic and diluted loss per ordinary share of
1p each is based on the loss on ordinary activities after taxation and minority
interests of #19,005,410 divided by the weighted average number of ordinary
shares of 1p each 28,719,702 (basic) and 32,110,390 (diluted). The IIMR '
headline' loss per share is the basic figure excluding the goodwill amortisation
and is therefore based on a loss of #(1,007,951) and a weighted average number
of shares of 28,719,702.
4. Reconciliation of loss to net cash (outflow)/inflow from
continuing operating activities
2002 2001
# #
Operating loss (19,055,959) (1,225,384)
Goodwill impairment provision 17,997,459 989,733
Depreciation 237,103 221,027
(Profit)/Loss on sale of fixed assets (2,979) 26,671
(Increase)/Decrease in stock (7,642) 13,109
Decrease/(Increase) in debtors 1,376,403 (501,018)
(Decrease)/Increase in creditors (1,103,151) 843,084
Net cash (outflow)/inflow from operating activities (558,766) 367,222
5 All of the Group's activities are classed as continuing and there are no
gains and losses other than disclosed above.
6 No dividends are proposed or were paid during the period.
7 The Annual General Meeting will be held at 12.00pm on 28 April 2003 at
Cromwell House, Hook.
8 The Report and Accounts will be sent to shareholders on, or before 28 March
2003. Further copies may be obtained on application to the Company's
Registered Office, Cromwell House, Cromwell Way, Bartley Wood, Hook,
Hampshire, RG27 9XA) or will be available for collection at the same
address for a period of 1 month from the date of publication.
This information is provided by RNS
The company news service from the London Stock Exchange
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