Results
Disposal of Compound
Semiconductors impairment
Disposal of surplus property
Net finance income
Taxation
Capital expenditure
Research
and development costs
Working Capital
Cash
flow
Pension Matters
Dividend
Results
Continuing operations generated revenue of £54.6m (2007 £38.4m),
resulting in an operating profit before exceptional items of £3.9m (2007 £1.8m loss). The group loss
for the period was £14.6m (2007 £45.0m profit) reflecting
the additional company contribution to the defined benefit pension scheme, now
in wind up. The operating results are discussed in the Chief Executive’s Operating review, along with a
review of the business.
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Disposal of Compound Semiconductors
business
On 29 February 2008, the sale of the Compound Semiconductors
business to RF Micro Devices was completed. Overall the business generated £17.1m cash since 30 November
2007 including disposal proceeds.
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Disposal of surplus property
The Waterfront freehold property at Saltaire and
the freehold property at Stewarton were both sold in the
period
generating £6.1m of cash and a £0.1m loss on
disposal.
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Net finance income
The group ended the year with net cash of £31.5m
and generated net finance income of £7.4m largely resulting
from the interest earned on cash deposits held through the period
until the payment of the special dividend of £89.2m on 30 May 2008.
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Taxation
No current tax is due on continuing operations reflecting
available losses and no deferred tax asset was recognised
at 31 May 2008 due to uncertainty in future recoverability.
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Capital expenditure
Capital expenditure of £2.3m (2007 £16.6m)
comprised investment in continuing operations of £1.9m
(2007 £1.0m) and
in discontinued operations of £0.4m (2007 £15.6m).
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Research and development costs
Research and development costs of £6.8m (2007 £15.6m)
were expensed which was 8.0% of total revenue. No research
and development costs were capitalised in the balance sheet.
Research and Development costs relating to continuing
operations was £4.2m (7.7% of revenue).
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Working Capital
At 31 May 2008 net working capital was £6.5m
(2007 £3.3m). Net working capital comprised inventories
of £6.2m
(2007 £10.6m), receivables of £13.0m (2007 £16.3m)
and payables of £12.7m (2007 £23.6m).
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Cash flow
Cash outflow from operating activities was £16.1m (2007 £10.6m
outflow) including £27.0m relating to the defined benefit
pension scheme settlement, cash inflow from investing activities
was £17.9m (2007 £148.0m inflow) and net cash
outflow
from financing activities was £89.2m (2007 £21.5m
outflow). The closing cash balance as at 31 May 2008 was £31.5m.
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Pension matters
On 29 February 2008 the company, in agreement with the trustees,
made an additional contribution to the defined benefit pension scheme which, together with the proceeds from
the liquidation of the scheme assets, was paid to Paternoster to secure past service benefits for scheme members
by means of annuities. The residual £1.0m liability remaining on the balance sheet will be funded during the
wind up of the scheme which is expected to be completed by the end of 2008.
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Dividend
On 30 May 2008, following Court approval of a capital reorganisation,
a special dividend of 120p per share was paid to
shareholders.
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Stephen Mole
Finance Director
28 July 2008
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