RNS Number:8683P
QuikTrak Networks PLC
17 September 2003
17 September 2003
QUIKTRAK NETWORKS PLC
("QuikTrak" or "The Company")
INTERIM RESULTS FOR THE SIX MONTHS TO 30 JUNE 2003
QuikTrak Networks Plc, the secure tracking and data messaging network operator,
announce interim results for the six months ended 30 June 2003.
HIGHLIGHTS
Successful admission to AIM on 14 August 2003.
Additional #2,275,000 raised through the issue of 6,330,000 new ordinary shares
of 1p each.
Service Provider contracts entered into with Flair, SOS Response, Spinnaker
International, ntl's Public Safety Group and ROCS.
Network currently being trialled by eighteen potential service providers.
Chris Kyriakou, Chairman of QuikTrak Network's plc, commented: "This has been a
busy and exciting six months for QuikTrak. We continue to develop relationships
with market-leading organisations in sectors where the QuikTrak technology has a
competitive advantage. Many blue chip organisations are currently testing the
technology and are enthusiastic about its technical ability and broad range of
applications and we are looking forward to entering into the commercialisation
phase in the coming months.
Enquiries to:
Annie Richards QuikTrak Networks plc 0870 010 6044
James Chandler/Nick Lambert Beattie Financial 020 7398 3300
Hugh Oram Nabarro Wells & Co Ltd 020 7710 7400
ABOUT QUIKTRAK NETWORKS
QuikTrak is a telecommunications business that specialises in secure, reliable
and low-cost location, real-time tracking and mobile data communications. The
Company provides solutions for locating and tracking vehicles, people and mobile
assets and has a terrestrial positioning network based on patented technology.
Unlike GPS-GSM systems, QuikTrak is able to locate objects or people that may be
hidden from view, is almost impossible to jam and does not require "
line-of-sight" This difference not only makes QuikTrak more effective and more
secure than existing tracking technologies but the system provides a lower cost
alternative to other tracking solutions available in the market.
The potential applications for the technology are diverse, but currently
QuikTrak is focussing on the key areas of lone worker protection, vehicle
tracking and security systems. QuikTrak earns revenue from the sale of the
tracking/messaging device. Ongoing revenue is then secured by charging a
recurring annual connection fee and for 'airtime usage.' The business model
aims to partner with service providers in specific sectors rather than seek to
sell directly into the sector.
CHAIRMAN'S STATEMENT
Overview
I am pleased to report our first financial results as an AIM listed company. As
expected, the Company continues to be loss making with modest revenues while it
completes its first phase of infrastructure development. Phase I of the
commercial network covering the Greater London and M25 area is now largely
complete and has today been released for commercial use.
The difficulties, and consequent delays, experienced earlier in the year in
securing access to radio transmission towers have largely been resolved and the
Company expects to be in a position to generate revenues as those service
providers that have tested the network, and were awaiting the commercial launch,
now start to undertake formal contracts.
In terms of infrastructure development, the Company is now looking to extend the
network and commence Phase II of the network's development that will seek to
cover an area west, along the M4 corridor to Bristol, south along the M3
corridor to cover the Solent area and north in a broad band across the middle of
the country to cover areas such as the northern Home Counties, the Midlands,
Greater Manchester and extending as far as Liverpool and Yorkshire. It is
envisaged that the role out of Phase II will commence in early 2004, subject to
the Company raising the required funds.
Financials
Turnover for the period was #26,025, and the Company made a loss before tax of
#1,471,848 as it has fully written off all expenses relating to the
establishment of commercial operations. The company has no debt on the balance
sheet.
Service Provider Contracts
We continue to progress the introduction of UK-functional products for sale to
service providers and assist our service technology providers in developing
their applications and hardware to ensure a rapid uptake of QuikTrak-enabled
products.
The Company now has in place five Service Provider Agreements with: ntl's Public
Safety Group for use by the emergency services and across a variety of security
applications; Flair Business Equipment for applications in the areas of loan
worker protection and commercial fleet management; SOS Response for use in
domestic tracking of children and the elderly; Spinnaker International for
tracking cash-in-transit boxes; and ROCS Computer Services in the areas of
courier and taxi fleet management.
Service Provider Trials
A large number of organisations are conducting trials to test the network before
entering into service provider arrangements. Such organisations include ADT,
AutoTrac, Bell Group, Blick, London Communications, NCP, National Monitoring,
Radio Taxis, Reliance, Tracker and VRS Europe, Securicor, Toad, Addison Lee,
Terrafix, Sonic Communications and Government Departments.
Prospects
Our key objective is to build a business with strong revenue growth, superior
margins and strong operating cash flow. Today's release for commercial use is
a very significant step towards this end.
Chris Kyriakou
Chairman
17 September 2003
QuikTrak Networks plc
Unaudited Consolidated Profit and Loss Account
For the six months ended 30 June 2003
6 months 12 months
30 June 30 June
2003 2003
# #
Revenue 26,025 26,025
Cost of sales 10,261 10,261
Gross margin 15,764 15,764
Sales and administration overhead 586,451 1,176,914
Radiocommunications licence fees 945 459,345
Technology support fee 304,835 544,835
Loss before depreciation and amortisation -876,467 -2,165,330
Depreciation of plant and equipment 41,189 43,550
Amortisation of goodwill 153,191 324,746
Loss before exceptional items -1,070,847 -2,533,626
Exceptional item - loss on investment disposal -401,001 -401,001
Loss before taxation -1,471,848 -2,934,627
Corporation tax - -
Loss after taxation -1,471,848 -2,934,627
Loss per share (pence) (3.0) (6.6)
Weighted average loss per share (pence) (3.5) (7.1)
The Company has no gains or losses other than the results for the period set out
above.
All of the activities of the Company are classed as continuing.
Unaudited Reconciliation of Movements in Shareholders' Funds
For the six months ended 30 June 2003
6 months 12 months
30 June 30 June
2003 2003
# #
Loss for the financial period -1,471,848 -2,934,627
New equity from capital subscribed 34,618 442,626
Premium on new share capital subscribed 6,435,250 6,690,492
Net addition to funds 6,469,868 7,133,118
Closing shareholders' funds 4,998,020 4,198,491
QuikTrak Networks plc
Unaudited Consolidated Balance Sheet
As at 30 June 2003
30 June 2003 30 June 2003
# #
FIXED ASSETS
Goodwill 3,087,988
Tangible assets 886,281
CURRENT ASSETS
Other debtors 44,330
Prepayments 44,277
Inventory 93,666
Letter of credit deposit (Note 1) 150,215
Cash at bank 581,536
914,024
CREDITORS : Amounts falling due within one year 689,802
NET CURRENT ASSETS 224,222
TOTAL ASSETS LESS CURRENT LIABILITIES 4,198,491
NET ASSETS 4,198,491
CAPITAL AND RESERVES
Called up equity share capital 442,626
Share premium 6,690,492
Accumulated loss -2,934,627
SHAREHOLDERS' FUNDS 4,198,491
Note 1 - this deposit is held in the name of QuikTrak Networks Ltd as security
for a letter of credit issued by the National Australia Bank to secure the
delivery of transponder equipment to the Company
QuikTrak Networks plc
Unaudited Consolidated Cash Flow
For the six months ended 30 June 2003
6 months 12 months
30 June 30 June
2003 2003
# #
Net cash outflow from operating activities (1,258,211) (3,109,741)
Payments to acquire tangible fixed assets (642,551) (924,738)
Net cash acquired with subsidiaries 13,699 29,604
CASH OUTFLOW BEFORE FINANCING (1,887,063) (4,004,875)
Financing
Issue of equity share capital 1,274,811 1,938,061
Loans raised from QuikTrak Networks Ltd (and subsequently
converted into non-equity capital)
464,884 2,153,537
Extended credit provided by suppliers (net of repayments)
184,229 494,813
NET CASH FLOW 36,861 581,536
Cash at beginning of period 544,675 -
Cash at end of period 581,536 581,536
Independent review report to QuikTrak Networks plc Group
Introduction
We have been instructed by the company to review the financial information for
the six and twelve months ended 30 June 2003, set out on pages 3 to 5. We have
read the other information contained in the interim report and considered
whether it contains any apparent misstatements or material inconsistencies with
the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved, by the directors. The Listing
Rules of the London Stock Exchange require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes, and
the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom Auditing Standards and therefore
provides a lower level of assurance than an audit. Accordingly, we do not
express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six and twelve
months ended 30 June 2003.
Sawin & Edwards
Chartered Accountants
15 Southampton Place
WC1A 2AJ
17 September 2003
This information is provided by RNS
The company news service from the London Stock Exchange
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