RNS Number:8127Y
Centurion Electronics PLC
22 June 2007


Issued on behalf of Centurion Electronics plc
Date 22 June 2007

Embargoed until 7.00am

                           Centurion Electronics plc
                Developers and Suppliers of infotainment systems

             Interim results for the six months ended 31 March 2007

     
*    Turnover GBP2.4 million ( 2006 : GBP 3.7 million, on going activities 
     GBP2.5 million)

*    Loss on ordinary activities before tax GBP0.7 million (2006 : 0.2 million)

*    Pre exceptional operating loss GBP0.5 million (2006 : GBP0.8 million)

*    Loss before taxation of GBP0.8 million (2006 : 0.3 million)

*    Cash of GBP362,000 as at 31 March 2007

*    In April 2007 a further GBP1 million was raised via a convertible loan

*    One new contract won during the period

*    A further two new contracts won after the period end


"At the time of the Company's restructuring last year the Directors launched a
plan to lower the risk profile of the business, rationalise its supply base and
lessen its dependency on Toyota Motor Europe by securing new contracts.

One year on I am delighted to report that Centurion is no longer exposed to the
vagaries of the volatile high street retail market, contracts are in place with
a small number of key blue chip suppliers and, the client base has been expanded
to the extent that by September 2008 sales to our largest OEM customer are
forecast to represent circa 40% of the Company's revenue.

The relationships with existing customers are strong and focussed on increasing
penetration of in-car entertainment systems throughout existing markets whilst
continuing to explore areas for cost improvements and future product
developments.  The Company has a clear strategy forward for new business and
expects to announce a further contract win before the end of this financial
year."


Ernst Kastner, Chairman


Enquiries

Chris Rhodes, Chief Executive, Centurion Electronics plc   01707 330550

Clive Carver, JM Finn   0207 600 1658




Centurion Electronics plc corporate website can be found at www.ceplc.net


Full statement attached

Centurion Electronics Plc


Interim Report

Six months ended 31 March 2007


Introduction

At the time of the Company's restructuring last year the Directors launched a
plan to lower the risk profile of the business, rationalise its supply base and
lessen its dependency on Toyota Motor Europe by securing new contracts. One year
on I am delighted to report that Centurion is no longer exposed to the vagaries
of the volatile high street retail market, contracts are in place with a small
number of key blue chip suppliers and, the client base has been expanded to the
extent that by September 2008 sales to our largest OEM customer are forecast to
represent circa 40% of the Company's revenue. Furthermore, our product range now
incorporates leading edge components that are highly scaleable, yet unique to
our clients' own brand image.


Financial Performance

For the first six months ended 31 March 2007, the Company reported turnover of
GBP2.4million (2006: GBP3.7million).  The 2006 figure included sales of
GBP1.2million relating to the now discontinued specialist retail activities.

In preparing the financial statements for the current year, the company has
adopted FRS20 'Share based payments'.  The adoption of these standards has
resulted in a change in accounting policy for share based payment transactions.
This has impacted the profit and loss account and further details can be found
in Note 2 of the accounts.

A pre-exceptional operating loss of GBP0.52million (2006: GBP0.78million) is
being reported, whilst the loss on ordinary activities before taxation amounted
to GBP0.68million, against a loss of GBP0.17million in the comparable period.
Taking into account the effects of FRS 20 and the share based payments, the
pre-exceptional operating loss becomes GBP0.60million (2006: GBP0.89million),
whilst the loss on ordinary activities before taxation amounted to
GBP0.76million, against a loss of GBP0.29million in the comparable period. The
exceptional items relate to costs incurred on an abortive acquisition. The post
exceptional operating loss is GBP0.63million (2006: GBP0.96million).  The post
exceptional post share based payment operating loss is GBP0.71million (2006:
GBP1.1million).

During April 2007 a further convertible loan note of GBP1.0million was issued to
provide working capital support, of which GBP0.78m has currently been drawn
down.

As reported in the trading update issued in early March of this financial year,
the Company's financial performance for the year 30 September 2007 will be
affected by a number of external factors.  Within our largest OEM customer, we
have witnessed sales of our existing systems being significantly below our
original internal forecasts due to the phased roll-out of current products and
the subsequent introduction of new upgraded products.  As a result in the year
to 30 September 2007, it is unlikely that the Company will move into
profitability.


Dividend

The Board believes that, at this stage, it is not appropriate to pay an Interim
dividend (2006: nil).


Review

Throughout the first half of the current financial year, the management has been
firmly focussed on increasing the company's customer portfolio and developing
existing relationships with the number of Global car manufacturers that are the
core of our customer base.

I can report that Centurion is in some form of dialogue with over 80% of the
global vehicle manufacturers operating in Europe. We anticipate that by the end
of this financial year, we will have doubled our client base from the same
period last year.

The Company has also developed plans to reduce its costs. As a result,
management expect overheads will be reduced by at least 10% later this financial
year, to parallel the confirmed roll out of the new contract wins into 2008.
This will strengthen our competitive edge as we strive for both additional
business and higher levels of profitability.


New Business

During the first half of the financial year, we have successfully secured one
new business contract and, following the end of the first half, we have
successfully secured two more business contracts.

In February 2007, it was announced that the Company had secured a new contract
with Toyota Motor Europe to supply an integrated in-car entertainment ("ICE")
system initially as an option across five vehicle models.

The contract is to supply a new premium ICE system designed and developed
exclusively by Centurion, which is being phased in between November and December
2007, that will provide a complete solution in in-car entertainment.  The system
is designed to integrate within the vehicles interior and seat structure, whilst
offering passengers access to the latest media formats.

It was announced in April 2007, that the Company had been awarded a new contract
to supply its latest unique modular integrated in-car entertainment system as an
option for Honda Access Europe NV.  The system will be launched across Europe,
with the initial supply being offered as an option on the new CR-V.

The new modular system has been specifically designed according to customer
requirements and can be used outside the vehicle as well as being fully
integrated within the vehicle.  The patent protected, twin-screen system is
expected to be launched within the CR-V's 2008 model year with production
anticipated to commence during Q4 of 2007 calendar year.

In May 2007, the Company was pleased to announce that it had also secured a new
contract to supply the Audi C6 in China.  This new contract, which was secured
following a two year development partnership between Brunswick New Technologies
Automotive, Germany and Centurion, involves the supply of a premium rear-seat
entertainment system, for standard fit on the Audi C6, the long-wheelbase
version of the Audi A6.  The system comprises of two 10.2" LCD screens which
will be mounted onto the back of the front seats and the DVD player integrated
into a console within the rear seats.  The DVD player also includes connections
for a games console, iPod and digital camera.

The Audi C6 is built exclusively for the Chinese market and is frequently used
as a chauffeur-driven saloon. The product was launched at the Shanghai Motor
Show in April this year.  The entertainment systems are expected to be fitted
during Q1 of Centurion's financial year ending September 2008, and start
contributing to the Company's revenues in Q2 of the same financial year.


Quality Accreditation

I have previously referred to the importance of attaining the appropriate
automotive industry quality management system accreditations. I am pleased to
report that we are now operating in accordance with both TS16949 and ISO9001
standards, which for the majority of the world's automakers is a pre-requisite
entry ticket for business. We are now building up the required document library
for our formal audit which we anticipate

will be completed next summer. In the meantime, we have successfully passed a
number of customer audits and remain confident that our systems are capable of
meeting the requirements of current and future customers alike.


People

I would like to welcome all new employees to the company; the Company currently
employs circa 42 people.

Morale within the Company has remained high through this first half of the year,
especially with the new contract wins.

I am pleased to announce that in January 2007 our Financial Controller, Sharon
Armstrong, was appointed Company Secretary.


Outlook and Future Prospects

The company has produced cash flow forecasts for the period to September 2008,
which includes the anticipated sales growth from the recent Honda and Brunswick
contract wins.

These new contracts are expected to generate profitable sales growth during the
course of the next financial year.  Based on current forecasts, the company will
have insufficient working capital beyond October 2007 to fund the forecast sales
growth for new contracts and therefore will need to put in place additional
funding by that date.

The directors are considering with the support of external advisors options to
ensure that sufficient working capital is put in place by October 2007 to meet
the forecast working capital requirements.  Note 2 more fully discusses the
additional funding required.

However, the directors believe Centurion is well placed for further market
growth with the successful award of one new contract in the first half of this
financial year, followed by another two prestigious contract wins during April
and May.  Centurion's customer base now includes four major OEM's,  all of which
are ranked within the top ten Global vehicle manufacturers by volume and the
Company will no longer be reliant on any one customer.

The Company has consolidated its product range, utilising core components and
technologies that can be transferred whilst ensuring the systems are bespoke to
specific customer requirements and brand image.

The relationships with existing customers are strong and focussed on increasing
penetration of in-car entertainment systems throughout existing markets whilst
continuing to explore areas for cost improvements and future product
developments.  The Company has a clear strategy forward for new business and
expects to announce a further contract win before the end of this financial
year.

Ernst Kastner
Chairman
21 June 2007


Centurion Electronics Plc

Interim Report

Six months ended 31 March 2007

Profit and loss account
 
                             Note         Unaudited      Unaudited       Unaudited       Unaudited       Unaudited
                                        6 months to    6 months to     6 months to     6 months to     6 months to
                                           31 March       31 March        31 March        31 March        31 March
                                               2007           2007            2007            2006            2006
                                                                                         Re-stated       Re-stated
                                    Pre-Exceptional   Exceptional*           Total Pre-Exceptional     Exceptional  
                                                GBP            GBP             GBP             GBP             GBP

Turnover                                  2,429,092              -       2,429,092       3,680,389               -  
                                                                                                                    
Cost of sales                            (1,205,463)             -      (1,205,463)     (2,626,496)              -  
                                                                                                                    
Gross profit                              1,223,629              -       1,223,629       1,053,893               -  
                                                                                                                    
Administrative expenses                  (1,826,045)      (109,581)     (1,935,626)     (1,952,787)       (186,160) 
                                                                                                                    
Adjusted operating 
(loss) **                                  (524,060)      (109,581)       (633,641)       (777,577)       (186,160) 
Share based payments              2         (78,356)             -         (78,356)       (121,317)              -  
                                                                                                                    
Operating (loss)                           (602,416)      (109,581)       (711,997)       (898,894)       (186,160) 
                                                                                                                    
Loss on disposal of
fixed assets                                      -              -               -               -          (4,863) 
Interest payable and
similar charges                             (45,714)             -         (45,714)       (208,587)      1,005,961  

(Loss)/profit on 
ordinary activities
before tax                                 (648,130)      (109,581)       (757,711)     (1,107,481)        814,938  
Taxation on (loss)/
profit on ordinary
activities                        5               -              -               -               -               -  

(Loss)/profit                                                                                                       
for the year                               (648,130)      (109,581)       (757,711)     (1,107,481)        814,938  

Earnings per share                4                                                                                 
Basic and diluted                            (4.73p)        (0.81p)         (5.54p)        (59.14p)         43.52p 
                                                                                                                    

 
                                    Note              Unaudited              Audited           Audited       Audited
                                                    6 months to              Tear to           Year to       Year to
                                                       31 March         30 September      30 September  30 September
                                                           2006                 2006              2006          2006
                                                                                                           Re-stated
                                                      Re-stated            Re-stated         Re-stated         Total
                                                          Total    Pre-ceptional          Exceptional*           GBP
                                                            GBP                  GBP               GBP              

Turnover                                              3,680,389            7,251,962                 -     7,251,962  

Cost of sales                                        (2,626,496)          (4,265,643)                -    (4,265,643) 

Gross profit                                          1,053,893            2,986,319                 -     2,986,319  

Administrative expenses                              (2,138,947)          (3,621,786)         (569,042)   (4,190,828) 

Adjusted operating
(loss) **                                              (963,737)            (430,091)         (569,042)     (999,133) 
Share based payments                           2       (121,317)            (205,376)                -      (205,376) 
                                                                                                                      
Operating (loss)                                     (1,085,054)            (635,467)         (569,042)   (1,204,509) 

Loss on disposal of                                                                                                     
fixed assets                                             (4,863)                   -            (9,771)       (9,771) 
Interest payable and                                                                                                    
similar charges                                         797,374             (256,158)        1,005,961       749,803  

(Loss)/profit on ordinary 
activities before tax                                  (292,543)            (891,625)          427,148      (464,477) 

Taxation on (loss)/profit                                                                                               
on ordinary activities                         5              -                    -                 -             -  

(Loss)/profit for the year                             (292,543)            (891,625)          427,148      (464,477) 

Earnings per share                             4                                                                      
Basic and diluted                                       (15.62p)             (11.44p)            5.49p        (5.95p)
                                                                                                                      


*Further details of exceptional items are disclosed in note 3
** Adjusted operating loss represents operating loss before share based payments

There are no recognised gains or losses for the period other than the loss of 
GBP757,711 (2006: loss of  GBP292,543)



Balance sheet

                               Unaudited         Unaudited           Audited
                                   As at             As at             As at
                                31 March          31 March      30 September
                                    2007              2006              2006
                                     GBP               GBP               GBP
Fixed assets
Intangible assets                 44,286                 -            44,286
Tangible assets                  643,938           766,342           726,120
                                 _______           _______           _______
     
                                 688,224           766,342           770,406

Current assets
Stocks                           647,660           843,861           623,186
Debtors                          550,643         1,237,748         1,269,645
Other debtors                    516,771           638,134           471,442
Cash at bank and in hand         362,015           973,546           728,360
                                 _______           _______           _______
                               2,077,089         3,693,289         3,092,633

Creditors: amounts falling 
due within one year           (1,632,137)       (2,428,769)       (1,996,918)
                                 _______           _______           _______

Net current assets               444,952         1,264,520         1,095,715
                                 _______           _______           _______

Total assets less 
current liabilities            1,133,176         2,030,862         1,866,121

Creditors: amounts falling 
due after more than one year  (1,062,500)       (1,188,402)       (1,116,090)
                                 _______           _______           _______

                                  70,676           842,460           750,031
                                 _______           _______           _______

Capital and reserves
Called up share capital          880,681           880,681           880,681
Share premium account          7,139,660         7,144,214         7,139,660
Other reserves                   413,732           251,317           335,376
Profit and loss account       (8,363,397)       (7,433,752)       (7,605,686)
                                 _______           _______           _______

Shareholders' funds               70,676           842,460           750,031
                                 _______           _______           _______


Cash flow statement
                                             Note             Unaudited          Unaudited              Audited
                                                            6 months to       6 months to              Year to
                                                               31 March           31 March         30 September
                                                                   2007               2006                 2006
                                                                    GBP                GBP                  GBP
 
Net cash (outflow)/inflow from operating
activities                                      6              (347,526)           524,165              358,446
                                                                _______            _______              _______
 
Returns on investments and servicing of finance
Interest paid                                                   (45,714)          (208,587)            (256,158)
                                                                _______            _______              _______
Net cash outflow from returns on
  investments and servicing of finance                         (393,240)          (208,587)            (256,158)
 
 
Capital expenditure and financial investment
Purchase of intangible fixed assets                                   -                  -              (44,286)
Purchase of tangible fixed assets                               (31,138)           (49,121)            (142,054)
Receipts from sales of tangible fixed assets                          -              9,326               15,709
                                                                _______            _______              _______

                                                                (31,138)           (39,795)            (170,632)
                                                                _______            _______              _______

Cash outflow before financing                                  (424,378)           275,783              (68,344)
 
Financing
Short term import loans (paid)                                        -         (2,083,403)          (2,083,403)
Bank loans paid                                                 (22,667)           (22,667)             (45,334)
Loan Note issued                                                      -          1,000,000            1,000,000
Other loans received                                             99,385                  -              150,615
Capital element of finance lease rental payments                (18,685)           (77,403)             (98,156)
Share options exercised                                               -                  -                    -
Issue of share capital (net of expenses)                              -          3,071,535            3,066,981
                                                                _______            _______              _______

                                                                 58,033          1,891,760            1,990,703
                                                                _______            _______              _______

(Decrease)/increase in cash for the period      7              (366,345)         2,167,543            1,922,359
                                                                _______            _______              _______


Notes to the interim report



1      Authorisation of the interim report

The interim report of Centurion Electronics Plc for the period ended 31 March
2007 was authorised for issue by the Board of Directors on 19 June 2007.


2      Accounting policies

The financial information contained in this interim statement has been prepared
on the basis of the accounting policies set out in the Company's audited
financial statements for the year ended 30 September 2006, which have been
applied consistently except for the adoption of FRS20 detailed below.


Fundamental accounting concept - going concern

The company has continued to meet its day to day working capital requirements
using funds raised from the full draw down of the GBP250,000 working capital
facility and, since the balance sheet date, has issued GBP780,000 of convertible
loan notes.  These debts are secured over certain assets of the company.  The
company does not have any bank or overdraft facilities.

The company has produced cash flow forecasts for the period to September 2008,
which includes the anticipated sales growth from the recent Honda and Brunswick
contract wins and on the cash flows which reflect the assumed drawdown pattern
from the OEM customer base.

These new contracts are expected to generate profitable sales growth during the
course of the next financial year.  However, due to the additional working
capital required to fund the sales growth from the new contracts, the forecasts
show that, without raising additional finance, the company will not be able to
trade past October 2007.  Additionally, the company's future forecasts are based
on the OEM customers drawing down product in line with their existing forecasts
and there can be no certainty as to the timing of these sales or the timing of
cash inflows.

The directors are considering with the support of external advisors options
including equity or private-backed fund raising to ensure that sufficient
working capital is put in place prior to October 2007 to support the anticipated
growth of the Company.  Although confident that sufficient finance will be put
in place, there can be no certainty as to the outcome.

The Directors believe that they will be successful in obtaining additional
funding and as a result that the forecast cash flows and growth are achievable
and therefore believe it is appropriate to prepare the accounts on the going
concern basis. The financial statements do not include any adjustment to the
balance sheet tangible fixed assets or provision for future liabilities which
would result should the going concern basis not be appropriate.


Adoption of FRS 20

In preparing the financial statements for the current year, the group has
adopted FRS 20 'Share-based Payment', which has resulted in a change in
accounting policy for share based-payment transactions. FRS 20 requires the fair
value of options and share awards which ultimately vest to be charged to the
profit and loss account over the vesting or performance period. For
equity-settled transactions the fair value is determined at the date of the
grant using an appropriate pricing model. If an award fails to vest as the
result of certain types of performance condition not being satisfied, the charge
to the income statement will be adjusted to reflect this.  Additional staff
costs of GBP78,356 (2006: GBP121,317) have been recognised in the profit and
loss account.



3      Exceptional Items


                                                  Unaudited          Unaudited              Audited
                                                6 months to        6 months to              Year to
                                                   31 March           31 March         30 September
                                                       2007               2006                 2006
                                                        GBP                GBP                  GBP
        
       Exceptional items (see below)               (109,581)           814,938              427,158



Exceptional Items

Included in administrative expenses for the six months ended 31 March 2007 is an
exceptional charge of GBP103,011 relating to the professional and legal fees
incurred in respect of an abortive acquisition.

Also included in administrative expenses is a further exceptional charge for of
GBP6,570 in respect of legal and other expenses incurred in settling outstanding
specialist and retail debt.

Included in interest payable and similar charges for the six months ended 31
March 2006 is an exceptional credit of GBP1,005,961.  This relates to a write
down of debt following the re-financing that occurred on 13 March 2006.  Also
included in administrative expenses is an exceptional charge for redundancy and
other costs following restructuring in the amount of GBP186,160.  A further
charge amounts to GBP4,863 and relates to the disposal of certain fixed assets


4      (Loss)/Earnings per share

Earnings per ordinary share have been calculated using the weighted average
number of shares in issue during the relevant financial years.

The denominator for the 31 March 2006 loss per share has been restated due to
the consolidation of every fifty issued and unissued shares of 0.1 pence into
one ordinary share of 5 pence each on 19th May 2006.

The weighted average number of equity shares in issue for the basic earnings per
share calculation is 13,680,289 (2006 restated: 1,872,640) and the earnings,
being (losses) after tax are (GBP757,711) (2006: loss of GBP292,543).

The numerator for the basic and diluted earnings per share disclosure is the
same as the basic earnings per share numerator.

The denominator for the diluted earnings per share disclosure is as follows:


                                                   Unaudited          Unaudited              Audited
                                                 6 months to        6 months to              Year to
                                                    31 March           31 March         30 September
                                                        2007               2006                 2006
                                                                       Restated
                                                         GBP                GBP                  GBP

Basic and diluted earnings per share denominator
ordinary shares of 5 pence                        13,680,289          1,872,640            7,792,639
                                                     _______            _______              _______


The directors have also disclosed, for clarity, earnings per share excluding
exceptional items.  For the purposes of these ratios the denominators are no
different to those set out above.  The numerators for these additional ratios
are (GBP648,130) (2006: (GBP1,107,481)) and have been calculated as the
earnings, being (losses)/profits after tax less exceptional item (see note 3).



5      Taxation on loss on ordinary activities


        Deferred tax


The recognition of deferred tax assets is limited to the extent that the company
anticipates making sufficient taxable profits in the future to absorb the
reversal of the underlying timing differences.

     
6    Reconciliation of operating (loss) to net cash outflow from operating
     activities

                                                                 Unaudited            Unaudited            Audited
                                                               6 months to          6 months to            Year to
                                                                  31 March             31 March       30 September
                                                                      2007                 2006               2006
                                                                       GBP                  GBP                GBP
 
Operating (loss)                                                  (711,997)          (1,085,054)        (1,204,509)
Share based payments                                                78,356              121,317            205,376
Depreciation                                                       113,320              121,853            243,719
(Increase)/decrease in stocks                                      (24,474)           1,291,615          1,512,290
Decrease/(increase) in debtors                                     673,674               93,611            228,406
(Decrease)/increase in creditors                                  (476,405)             (19,177)          (626,836)
                                                                   _______              _______            _______

Net cash (outflow)/inflow from operating activities               (347,526)             524,165            358,446
                                                                   _______              _______            _______


7      Reconciliation of net cash inflow to movement in net (debt)

                                                                   Unaudited        Unaudited           Audited
                                                                 6 months to      6 months to           Year to
                                                                    31 March         31 March      30 September
                                                                        2007             2006              2006
                                                                         GBP              GBP               GBP
 
(Decrease)/increase in cash for the period                          (366,345)       2,167,543         1,922,359
Cash outflow from changes in debt
and lease financing                                                  (58,033)       1,179,775         1,076,276
                                                                     _______          _______           _______

Change in net debt resulting from cash flows                        (424,378)       3,347,318         2,998,635
 
Non cash movement (note 3)                                                 -        1,005,961         1,005,961
                                                                     _______          _______           _______
 
Movement in net debt in the period                                  (424,378)       4,353,279         4,004,596
 
Net (debt) at start of period                                       (533,812)      (4,538,408)       (4,538,408)
                                                                     _______          _______           _______

Net (debt) at end of the period (note 8)                            (958,190)        (185,129)         (533,812)
                                                                     _______          _______           _______
 
       
 
8     Analysis of net funds                                               At                                 At
                                                                   1 October             Cash          31 March
                                                                        2006             flow              2006
                                                                         GBP              GBP               GBP
 
Cash in hand and at bank                                             728,360         (366,345)          362,015
                                                                     _______          _______           _______
                                                                     728,360         (366,345)          362,015
 
Debt due after 1 year                                             (1,006,250)           6,250        (1,000,000)
Debt due within 1 year                                              (185,783)         (82,967)         (268,750)
Obligations under finance leases                                     (70,139)          18,684           (51,455)
                                                                     _______          _______           _______

Total                                                               (533,812)        (424,378)         (958,190)
                                                                     _______          _______           _______
 

9      Non-statutory Accounts

The financial information contained in this report does not constitute full
statutory accounts as defined by section 240 of the Companies Act of 1985.

The financial information in respect of the year ended 30 September 2006 has
been extracted from the statutory accounts for that year which have been filed
with the Registrar of Companies.  The auditors report on those accounts was
unqualified.

Copies of this report are being sent to all shareholders and are available from
the Company's offices at Satellite House, City Park, Swiftfields, Welwyn Garden
City, Hertfordshire AL7 1LY.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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