Half Year Results for the six months to 30 June 2013
Group business highlights
· Strong and growing order book, on track for second half performance
· Added new global industrial majors to the client base
· Grown a robust sales pipeline through group-wide presence and cross selling
· Strategy of extending geographic presence and supporting key clients across the combined range of Corac Group business capabilities and technologies is now delivering benefits
· Roles of Chief Financial Officer (CFO) and Chief Operating Officer (COO) separated to reflect the increasing breadth of Group business activities both in the UK and overseas,
· Jon Carter appointed CFO on 22 July with Mark Crawford retaining COO role
· Group revenue of £8.3m (2012: £4.3m)
· Total R&D4 spend of £1.4m (2012: £1.7m) before partner contributions
· Adjusted Group EBITDA3 loss (before share based payments and exceptional items) of £1.5m (2012: loss £2.5m)
· Group loss before tax of £2.4m (2012: loss before tax of £3.8m)
· £2.8m cash as at 30 June 2013 (31 December 2012: £6.7m) driven by H1 working capital movements,
year end cash anticipated to be in line with expectations
· Group order book stood at £13.2m as at 30 June 2013 (2012: £16.3m) providing good visibility for second half cash generation and improving margins
Current Trading and Outlook
· H2 outlook is encouraging
- orders due for delivery
- a strong pipeline
- order book has strengthened in Q3
· Anticipate performance in line with expectations, with a reduction in H2 losses and cash outflow.
Phil Cartmell, Chief Executive of Corac Group commented:
"The Board is pleased with the progress shown by the operating companies in the first six months of the year. The management changes have delivered immediate benefits and have strengthened the Group for the second half year and beyond.
"The result is a more balanced business with strong continuity of performance from ACI, a revitalised Hunt Graham and an increasingly commercial CET.
"With the growing maturity of the CET technologies, as demonstrated by the successful testing of the DGC, together with the value built in the two acquired businesses, the Board believes the real value of the Group is not reflected in the current share price, and is committed to closing this gap."