AEA releases half year results
AEA today announced its financial results for the six months ended 30 September 2011.
The results are as follows:
- Orders up 84% to £73.0 million (2010: £39.6 million)
- Revenue up 5% £53.3 million (2010: £50.6 million)
- Adjusted operating profit up 10% £2.3 million (2010: £2.1 million) (1)
- Operating profit £0.2 million (2010: £6.7 million loss)
- Adjusted profit before tax £1.0 million (2010: £1.1 million) (1)
- Loss before tax £2.1 million (2010: £8.8 million loss)
- Net debt £34.3 million (30 September 2010: £31.7 million, 31 March 2011: £28.3 million)
- Secured approval of Lloyds Banking Group to amend financial covenants for 2012 and allow continued access to the banking facility for the foreseeable future. The Directors expect to successfully renegotiate covenants for 2013 during 2012
- John Lowry has been appointed as interim CEO (see separate announcement)
- Order intake is showing positive progress throughout the Group; ERG $38.9 million (2), PPC $45.9 million, up 23% and Europe £20.1 million, up 32%
- In the US we continue to win orders despite the current economic environment while in the UK market conditions remain tough but with some stability returning
- The second half of the year will be impacted by a reduced forecast revenue and adjusted operating profit outturn at PPC, our Washington based operation. As reported previously, performance at ERG, our Boston based operation, and Europe remain in line with Management’s expectations
- Having announced on 16 November 2011 that the Group’s adjusted operating profit for the current year would be significantly lower than the Board’s expectations, the Board is firmly focused on improving profitability and managing cash flow
(1) A reconciliation of adjusted operating profit and adjusted profit before tax is given below the Consolidated income statement.
(2) No comparative information is available as the business was acquired in November 2010.
Dr Paul Golby CBE, Chairman of AEA Technology Group plc, said: "After a first half in line with our expectations, it is disappointing that a reduced revenue and adjusted operating profit outturn will impact the second half of the current financial year.
However, I am pleased to report that Lloyds Banking Group have now agreed financial covenants for 2012, giving the Group access to its existing facility for the foreseeable future. The Directors expect to successfully renegotiate covenants for 2013 during 2012.
I am also pleased to have secured John Lowry as our interim CEO with immediate effect and the Board looks forward to working with him.”
Read the full report here