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(TRBO.L) Turbotec Products PLC Buy/Sell
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| Date/Time | Headline | Source |
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| 13-11-09 | RNS |
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This news article is displayed preformatted as it may contain results tables
RNS Number : 4998C
Turbotec Products PLC
13 November 2009
Press Release 13 November 2009
Turbotec Products Plc
("Turbotec" or "the Company")
Interim Results
Turbotec Products Plc (TRBO.L), the designer and manufacturer of high performance, high quality heat exchangers and Tru-Twist® heat transfer tubing, announces its interim results for the six months ended 30 September 2009.
Summary
* Revenue of $9.7 million (2008: $14.9 million)
* Gross margin of 29.1% (2008: 28.8%)
* Profit before tax of $0.9 million ($1.5 million)
* Increase in net assets by 13% to $10.2 million (2008: $9.0 million)
* Increase in net cash of $0.5 million (2008: $0.3 million)
* Planned expansion of Hickory manufacturing facility in North Carolina
Overview
As announced on 11 November 2009, first half sales of $9.7 million were below the $14.9 million achieved in the comparable period last year with shipments to all major market segments at reduced levels and unit volumes down by approximately 25%. The Company generated profit before tax of $0.9 million for the first half, (FY2009: $1.5 million) which, on an annualised basis, is below the Board's expectations.
In the United States, the continuing recession coupled with tight credit markets and the weak housing market has resulted in lower demand for all air-conditioning products including ground source heat-pumps (despite the 30% tax credit incentive from the federal government), marine air-conditioning systems and swimming pool heat pumps. This situation is now expected to continue well into 2010. The Company has also been experiencing increased competition in certain of its markets and is taking actions, including using design patents and pricing more aggressively, to protect its position. However, sales for the past three quarters have now stabilised at between $4.7 million and $4.9 million and the Board is hopeful that this may indicate that the bottom of the current market cycle has been reached.
The Company continues to incur additional legal and other advisory costs associated with the litigation brought against it by its majority shareholder, as it prepares for the trial scheduled for early December 2009.
The Company's facility in Hickory, North Carolina, is now fully operational and the Board has decided to further expand this operation over the next two years. The Company expects as a consequence, to be able to scale back its comparatively higher cost manufacturing operation in Windsor, Connecticut.
By the end of this calendar year, global regulations will require ozone-depleting refrigerants to be phased out of use. As was mentioned in the FY2009 annual report, significant design and product development effort has been undertaken throughout this year and is expected to continue into 2010.
Commenting on the interim results, Sunil Raina, Managing Director of Turbotec Products, said: "Whilst the Company continues to be profitable and cash flow positive, we remain cautious regarding our prospects for the next 12 months given the ongoing economic uncertainty, which creates an unpredictable and volatile trading environment. The Company, however, is focused on the long term market opportunities for highly energy efficient heating and cooling devices, and is well positioned to take advantage of those opportunities once the economy begins to recover."
-Ends-
For further information please contact:
Turbotec Products Plc
Sunil Raina, Managing Director Tel: +1 (860) 731 4205
SRaina@turbotecproducts.com
Robert Lieberman, Finance
Director Tel: +1 (860) 731 4206
RLieberman@turbotecproducts.com www.turbotecproducts.com
Evolution Securities Limited
Joanne Lake / Peter Steel Tel: +44 (0) 113 243 1619
Joanne.lake@evosecurities.com
Media enquiries:
Abchurch Communications
Charlie Jack / Nick Probert Tel: +44 (0)20 7398 7715
nick.probert@abchurch-group.com www.abchurch-group.com
Copies of this announcement are available for collection from Evolution Securities, offices at Kings House, 1 King Street, Leeds, LS1 2HH and electronic copies can be obtained from the Company's website www.turbotecproducts.com.
CHAIRMAN'S STATEMENT
In this, our fourth interim report since we joined the AIM market, it is pleasing in such a challenging environment to report a pre-tax profit despite sales some 35% lower compared with the same period last year. The depressed demand experienced during our first quarter has continued these last few months, with sales to most major customers being affected.
Given the difficult conditions in our main markets, our focus has been on sustaining our gross margins and controlling operating costs and I am pleased to report that the Company has generated a respectable net income, despite these many challenges.
The dispute brought by our majority shareholder, Thermodynetics Inc., against the Company in January 2008 should soon be resolved, with the trial scheduled to be held early in December. The Company remains confident of its position and is continuing to defend the claim vigorously. Ongoing legal costs in relation to the dispute, along with the continuing investment being made in our expanding Southern manufacturing unit in Hickory, North Carolina, reinforce the need to conserve cash in these present depressed market conditions. After carefully considering all of these factors, the Board has concluded that it should reserve any decision on payment of a dividend until after the current year end, as to do otherwise would be imprudent.
Our resolve and commitment is to provide sustainable shareholder value through sales growth based on product quality and innovation. Turbotec has a clear strategy built on the expansion of our presence in new markets, exploiting the benefits of our low cost base in Hickory and fully developing the talents of all of our people. The Company now has the platform in place to capitalise on any upturn in demand as conditions in our markets improve.
.
Tom Nairn
Chairman
13 November 2009
TURBOTEC PRODUCTS PLC
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six Months Six Months Year Ended
30 September 30 September 31 March
2009 2008 2009
$'000 $'000 $'000
Revenue 9,734 14,929 26,986
Cost of sales (6,903) (10,634) (19,477)
Gross profit 2,831 4,295 7,509
Distribution costs (281) (343) (683)
Administrative expenses (1,627) (2,411) (4,426)
Operating profit 923 1,541 2,400
Finance costs (3) (11) (17)
Profit before tax 920 1,530 2,383
Income tax expense (369) (602) (968)
Profit and total comprehensive
income 551 928 1,415
for the period
Earnings per share - basic $ 0.04 $ 0.07 $ 0.11
Earnings per share - diluted $ 0.04 $ 0.07 $ 0.11
There were no items of other comprehensive income for any period
UNAUDITED CONSOLIDATED statement of changes in equity
Share capital Share Premium Retained earnings Merger Reserve
Total
$'000 $'000 $'000 $'000 $'000
Balance at 31 March 2008 228 3,441 4,533 (168) 8,034
Profit and total recognized
income and expenses - - 928 - 928
for the period
Share based payment expense - - 54 - 54
Balance at 30 228 3,441 5,515 (168) 9,016
September 2008
Profit and total recognized income and
expenses for - - 487 - 487
the period
Share based payment expense - - 87 - 87
Balance at 31 March 2009 228 3,441 6,089 (168) 9,590
Profit and total recognized income and
expenses for - - 551 - 551
the period
Share based payment expense - - 62 - 62
Other - - (38) - (38)
Balance at 30 September 2009 228 3,441 6,664 (168) 10,165
TURBOTEC PRODUCTS PLC
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 SEPT 30 SEPT 31 MARCH
2009 2008 2009
$'000 $'000 $'000
Assets
Non-current assets:
Property, plant and equipment 5,174 4,666 5,018
Intangible assets 396 481 439
Other 7 5 7
5,577 5,152 5,464
Current Assets:
Inventories
Trade and other receivables 3,725 4,035 3,572
Cash and cash equivalents 1,689 2,573 1,654
Current tax assets 1,984 1,173 1,509
- 194 -
7,398 7,975 6,735
Current Liabilities
Current portion of long-term borrowings
Trade and other payables 142 179 178
Current tax liabilities 1,609 2,829 1,247
34 - 117
1,785 3,008 1,542
Net current assets 5,613 4,967 5,193
Non-current liabilities
Long-term borrowings 125 256 167
Deferred tax 900 847 900
1,025 1,103 1,067
Net assets 10,165 9,016 9,590
Shareholders' equity:
Share capital 228 228 228
Share premium account 3,441 3,441 3,441
Merger reserve (168) (168) (168)
Retained earnings 6,664 5,515 6,089
Total equity 10,165 9,016 9,590
TURBOTEC PRODUCTS PLC
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
SIX SIX MONTHS YEAR ENDED
MONTHS 30 SEPT 31 MARCH 2009
30 SEPT 2008
2009
$'000 $'000 $'000
Cash flows from operating
activities
Profit before tax 920 1,530 2,383
Adjustments to reconcile net
income to net
cash provided by operating
activities:
Depreciation and amortization 199 153 386
Finance expense 3 11 17
Charge recognized in respect of 62 54 121
share based payment
Cash flows from operating 1,184 1,748 2,907
activities before changes in
working capital
Decrease / (increase) in trade (34) 418 1,335
and other receivables
Decrease / (increase) in (153) (898) (435)
inventory
Increase / (decrease) in trade 445 515 (1,338)
and other payables
Cash generated from operations 1,442 1,783 2,469
Taxes paid (574) (1,050) (761)
Net cash provided by operating 868 733 1,708
activities
Cash flows from investing
activities
Development costs paid - (10) (10)
Purchases of property, plant and (312) (323) (866)
equipment
Net cash used in investing (312) (333) (876)
activities
Cash flows from financing
activities
Proceeds from long term 10 - -
borrowings
Principal payments on long term (88) (89) (179)
debt
Finance expense (3) (11) (17)
Net cash used in financing (81) (100) (196)
activities
Net change in cash and cash 475 300 636
equivalents
Cash and cash equivalents, 1,509 873 873
beginning of period
Cash and cash equivalents, end of 1,984 1,173 1,509
period
NOTES TO THE FINANCIAL STATEMENTS
1. BASIS OF PREPARATION
The AIM Rules for Companies require that the annual consolidated financial statements of the company for the 52 week period ending 31 March 2010 be prepared in accordance with International Financial Reporting Standards adopted for use in the EU ("IFRS"). Other than the adoption of IAS1 (revised), this half year financial statement has been prepared on a consistent basis in accordance with the accounting policies adopted in the accounts for the year ended 31 March 2009 and on the basis of the recognition and measurement requirements of IFRS in issue that are either endorsed by the EU and effective (or available for early adoption) at 13 November 2009 and hence on the basis of IFRS that expected to apply in preparation of the accounts for the year ending 31 March 2010. The group will also adopt the requirements of IFRS8 in reporting the accounts for the year ended 31 March 2010. The preparation of the interim financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. These interim financial statements are unaudited.
The comparatives for the full year ended 31 March 2009 are not the Company's full statutory accounts for that year. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified and did not contain a statement under section 237(2)-(3) of the Companies Act 1985.
2. TAXATION
Analysis of charge in period:
Six months ended 30 Six months ended 30 Sept Year ended
Sept 2008 31 March
2009 2009
($000's) ($000's) ($000's)
Current 369 567 933
Deferred - 35 35
Total Taxation 369 602 968
Tax reconciliation:
The effective tax rates for the periods are different than the standard rate of corporate tax in the UK (28% for all periods presented). The differences are attributable to the following:
Six months ended Six months ended Year ended
30 Sept 30 Sept 31 March
2009 2008 2009
($000's) ($000's) ($000's)
Profit before tax 920 1,530
2,383
Profit before tax multiplied
by rate of
corporate tax in the UK of 28% 258 459 667
Effect of:
Differences between book and (10) (15) 22
taxable income
Higher rate of tax on overseas 110 153 286
earnings
Tax credits used to reduce (5) (15) (30)
taxes paid
Other 16 20 23
Total taxation 369 602 968
3. BASIC EARNINGS PER SHARE AND DILUTED EARNINGS PER SHARE
The calculations of basic and diluted earnings per ordinary share are based on the profit for the financial year and the weighted average number of equity voting shares in issue and dilutive shares during the period.
Six Months 30 Sept 2009 Six Months 30 Sept 2008 Year Ended 31 March 2009
(Numerator) (Denominator) (Numerator) (Denominator) (Numerator) (Denominator)
($000's) Weighted ($000's) Weighted ($000's) Weighted
Average Shares Average Shares Average Shares
Basic EPS
Profit for the period 551 - 928 - 1,415 -
Weighted average shares - 12,806,773 - 12,806,773 - 12,806,773
Diluted EPS-
Effect of Dilutive Securities
Stock options - - - - - -
Diluted EPS 551 12,806,773 949 12,806,773 1,415 12,806,773
4. INTANGIBLE ASSETS
Capitalized
Development
Goodwill Costs Total
($000's) ($000's) ($000's)
Period Ended 30 Sept 2009
Cost and net book value
Balance at 1 April, 2009 94 345 439
Additions - - -
Amortization - (43) (43)
Balance at 30 Sept, 2009 94 302 396
Period Ended 30 Sept 2008
Cost and net book value
Balance at 1 April, 2008 94 377 471
Additions - 10 10
Amortization - - -
Balance at 30 Sept, 2008 94 387 481
Period Ended 31 March 2009
Cost and net book value
Balance at 1 April, 2008 94 377 471
Additions - 10 10
Amortization - (42) (42)
Balance at 30 March, 2009 94 345 439
Goodwill relates to the acquisition of a technology company acquired by the US parent company in 1985. The operations of that company were subsequently integrated into the company's primary manufacturing facility. The technology acquired continues to be used by the group as an integral part of the engineering and manufacturing of its current product line.
In accordance with IAS 36, the Group regularly monitors the carrying value of intangible assets. A review was undertaken at 31 March 2009 to assess whether the carrying value of assets was supported by the net present value of cash flows derived from those assets using future cash flow projections. Further to the review, there have been no impairments to the carrying amount of goodwill in any period. The deferred development costs will be amortized over the expected lives of the related products once sales of these products commence on a commercial level.
5. ANALYSIS OF CASH AND CASH EQUIVALENTS AT:
30 Sept 30 Sept 31 March
2009 2008 2009
($000's) ($000's) ($000's)
Cash available on demand 1,984 1,173 1,509
Bank overdrafts - - -
1,984 1,173 1,509
6. LONG TERM BORROWINGS
30 Sept 30 Sept 31 March
2009 2008 2009
($000's) ($000's) ($000's)
Current financial liabilities
Bank loans - secured 142 179 178
Non-current financial liabilities
Bank loans - secured 125 256 167
The bank loans and overdraft are secured by a fixed charge over the assets of the Group. In addition, the Group must comply with certain non-financial covenants, non-compliance with which would be considered an event of default and provide the bank with the right to demand repayment prior to the loan's maturity date.
The interest rate on floating rate financial liabilities is linked to the bank's prime rate. The interest rates charged at the balance sheet date are as follows:
30 Sept 2009 30 Sept 2008 31 March 2009
Bank overdrafts and secured loans 3.25% 5.00% 3.25%
Maturities of borrowings are as follows (including interest payments at current rates):
30 Sept 30 Sept 31 March
2009 2008 2009
($000's) ($000's) ($000's)
In less than 1 year 145 194 186
In 1-2 years 88 138 90
In 3-4 years 51 89 82
Thereafter - 45 -
284 466 358
7. ULTIMATE PARENT COMPANY
The ultimate parent undertaking is Thermodynetics, Inc, a company incorporated in the United States. This is largest and smallest company into which the Company's results are consolidated.
8. CONTINGENCIES
The Company is the defendant in an action brought by its majority shareholder seeking to limit the recovery of administration fees paid to Thermodynetics in 2007 and 2008 and other disputed obligations between the parties pursuant to a Relationship Agreement. Thermodynetics sought an adjournment seeking additional time to prepare for trial; the court has now set December 2009 as the new trial date. The Company believes that it has meritorious defences to the claims raised and that it will ultimately prevail when the matter is dispositioned by the court. The amount initially claimed was *205,000 Pounds Sterling. An amended claim was submitted by Thermodynetics in October 2008 which increased the quantum of claim up to, in one alternative, $1.17m at that date
9. APPROVAL
This interim report was approved by the Directors of the Company on 13 November 2009. Copies may be obtained on the Company's website, www.turbotecproducts.com, or from the Company Secretary.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR CKNKPNBDDCDD
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| 11-11-09 | RNS |
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RNS Number : 3108C Turbotec Products PLC 11 November 2009
Press Release 11 November 2009 Turbotec Products Plc ("Turbotec" or "the Company") Trading Statement Turbotec Products Plc (TRBO.L), the designer and manufacturer of high performance, high quality heat exchangers and Tru-Twist® heat transfer tubing, notifies the market of the following information in advance of the announcement of its interim results for the six months ended 30 September 2009. In light of the continuing difficult conditions in the Company's markets, first half sales of $9.7 million were below the $14.9 million achieved in the comparable period last year. Whilst the Company's gross margin for the first half was broadly the same as for the comparable period last year, the reduction in sales, together with legal and other advisory costs associated with the litigation brought against it by its majority shareholder, means that the Company will be reporting a profit before tax of $0.92million for the first half (FY2009: $1.54million), which, on an annualised basis, is below the board's expectations. Sales for the past three quarters have now, however, stabilised at between $4.7 and $4.9 million and the board is hopeful that this may indicate that the bottom of the current market cycle has been reached. The board remains confident of the Company's prospects. More detailed commentary will be provided in the Company's interim results to be announced on Friday, 13 November 2009.
Turbotec Products Plc
SRaina@turbotecproducts.com Robert Lieberman, Finance Director RLieberman@turbotecproducts.com
Evolution Securities Limited
joanne.lake@evosecurities.com
Media enquiries:
Abchurch Communications
charlie.jack@abchurch-group.com www.abchurch-group.com This information is provided by RNS The company news service from the London Stock Exchange END
TSTILFLTLILILIA More |
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| 28-09-09 | RNS |
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RNS Number : 7505Z Turbotec Products PLC 28 September 2009
Turbotec Products Plc ("Turbotec" or "the Company") Result of Annual General Meeting Turbotec Products Plc (TRBO.L), the designer and manufacturer of energy efficient heat exchangers and heat transfer tubing, announces that at the Company's Annual General Meeting held today in Leeds, all resolutions put to shareholders by the board were duly passed on a show of hands.
For further information please contact:
Turbotec Products Plc
SRaina@turbotecproducts.com Robert Lieberman, Finance Director RLieberman@turbotecproducts.com
Evolution Securities Limited
Joanne.lake@evosecurities.com
Abchurch Communications
charlie.jack@abchurch-group.com www.abchurch-group.com This information is provided by RNS The company news service from the London Stock Exchange END
AGMLPMMTMMMTBJL More |
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| 23-09-09 | RNS |
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RNS Number : 5584Z Turbotec Products PLC 23 September 2009 Turbotec Products Plc ("Turbotec" or the "Company") 23 September 2009 Disclosure of Interest in Shares The Board of Turbotec announces that on 22 September 2009, the Company was notified by RAB Capital plc that on 17 September 2009, RAB Capital plc, acting as discretionary manager of RAB Special Situations (Master) Fund Limited and RAB Innovations Fund Limited, sold 591,000 Ordinary Shares of 1 penny each in the Company. As a result of this transaction, RAB Capital plc, through Credit Suisse Client Nominees (UK) Limited, effectively holds 542,000 Ordinary Shares, representing 4.23% of the Company's total voting rights. For further information please contact:
Turbotec Products Plc
Robert Lieberman, Finance Director RLieberman@turbotecproducts.com
END This information is provided by RNS The company news service from the London Stock Exchange END
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| Sun 20:46 | ||||
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Hi I am wondering if there any holders of this stock who may be answer my unusual query.
I recently bought a small holding in this share with TD Waterhouse, but I have never been able to sell the holding as the system has never recognised I hold any shares. When I queried this, they told me their technical department said this share could be bought on line but not sold on line. Can this be correct? I bought and sold many other shares but never come across this before. Regards More | View thread (1) | Respond | Login to Vote up | Login to Vote down |
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| 20-10-09 | ||||
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Avoid recommendation from Growth Company Investor
http://www.growthcompany.co.uk/recommendations/1079482/turbotec-products.thtml More | View thread (1) | Respond | Login to Vote up | Login to Vote down |
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| 29-06-09 | ||||
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This is a profitable company historically whose share price this time last year was nearly 80p. Even it it reached half that, you are doubling your money.
Accounts are sound. Got on board two months ago, because it just looked a no brainer. It's not rocket science this one... watch it soar. More | View thread (1) | Respond | Login to Vote up | Login to Vote down |
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| 29-06-09 | ||||
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The news issued today that the company has managed to increase profits despite the difficult trading conditions is a good sign. The future can only look bright for these now, with 'hopefully' the worst behind us.
More | View thread (1) | Respond | Login to Vote up | Login to Vote down |
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They have not been approved or issued by Interactive Investor Trading Limited.
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