Interim Results 2008 Belgium Denmark Finland France Germany Iberia Italy Netherlands Norway Sweden UK
Richard Moon Chairman 2 Belgium Denmark Finland France Germany Iberia Italy Netherlands Norway Sweden UK
Agenda � Chairman – Introduction and Overview � Finance Director – Financial review � Executive Directors – Q&A 3 Belgium Denmark Finland France Germany Iberia Italy Netherlands Norway Sweden UK
Overview � Restructured Board, new Chief Executive � Net cash of £16.9 million � Post half-year end consideration of £16.2 million from sale of MessageLabs Group - £15.1 million received November 2008 subject to tax at 28% � Sales resilient, margins under pressure � Rebased interim dividend of 3.5 pence per share � Impairments Westech, goodwill 4 Belgium Denmark Finland France Germany Iberia Italy Netherlands Norway Sweden UK
Management Team � Nick Jefferies Chief Executive Officer � Malcolm Cooper Finance Director � Stephen Sydes Electronics Divisional MD 5 Belgium Denmark Finland France Germany Iberia Italy Netherlands Norway Sweden UK
Malcolm Cooper Financial review 6 Belgium Denmark Finland France Germany Iberia Italy Netherlands Norway Sweden UK
Westech Electronics � Associate listed on Singapore stock exchange � $35 million bad debt - 54% of trade receivables � Attempting to negotiate standstill arrangement � Balance sheet value £5.0 million at September 2008 � Goodwill associated with investment £0.03m � Investment fully impaired and disclosed as an exceptional item in half year results 7 Belgium Denmark Finland France Germany Iberia Italy Netherlands Norway Sweden UK
MessageLabs Group (MLG) � 3.95% investment held at cost - £0.3 million � Sale to Symantec completed November 2008 for c £400 million � £15.1million received 14 November 2008 � £1.15m held in escrow against warranty claims � Gain subject to tax at prevailing rate of 28% � Disclosed as post balance sheet event 8 Belgium Denmark Finland France Germany Iberia Italy Netherlands Norway Sweden UK
Exceptional Items £m Write back of unutilised provision for retained obligations 0.8 Costs of termination of Board Director contracts (0.8) Impairment of goodwill (4.2) Impairment of associate investment (5.0) Exceptional Items (9.2) 9 Belgium Denmark Finland France Germany Iberia Italy Netherlands Norway Sweden UK
Interim results Year to Half year to 31 March Continuing operations 30 September £m 2008 2007 2008 77.6 159.5 Sales 79.8 Operating profit 1.0 2.8 6.1 Associates (post-tax) - 0.5 0.7 (0.7) (0.8) Net finance revenue/(cost) 0.2 Profit before exceptional items 1.2 2.6 6.1 - (3.5) Exceptional items (9.2) (Loss)/profit before tax - continuing (8.0) 2.6 2.6 operations (Loss)/profit after tax (8.0) 1.8 0.5 Basic earnings per share excluding exceptional items 2.4p 6.7p 14.5p 7.2p 21.9p Dividends per share relating to period 3.5p 10 Belgium Denmark Finland France Germany Iberia Italy Netherlands Norway Sweden UK
Divisional results £m 30-Sep-08 30-Sep-07 31-Mar-08 Electronics 51.3 50.1 103.1 Parts 25.1 23.9 48.3 Medical & Scientific 3.4 3.6 8.1 Revenue 79.8 77.6 159.5 Electronics 1.4 1.7 3.2 Parts 0.5 1.7 3.3 Medical & Scientific 0.5 0.6 1.3 Unallocated Costs (1.4) (1.2) (1.7) Operating Profit 1.0 2.8 6.1 11 Belgium Denmark Finland France Germany Iberia Italy Netherlands Norway Sweden UK
Change in revenue 84.0 82.0 80.0 2007 78.0 76.0 74.0 72.0 70.0 2007 Exchange Rates Electronics Parts Scientific & Medical 2008 12 Belgium Denmark Finland France Germany Iberia Italy Netherlands Norway Sweden UK
Change in Operating Profit 3.0 £2.8m Exchange Rates Electronics 3.0 2.5 Parts 2.5 2.0 2.0 Medical & ScientificHead Office 1.5 2008 1.5 1.0 0.5 1.0 - 0.5 2007 Exchange Electronics Parts Medical & Head 2008 Rates Scientific Office - 2007 Exchange Electronics Parts Medical & Head Office 2008 Rates Scientific 13 Belgium Denmark Finland France Germany Iberia Italy Netherlands Norway Sweden UK
Income Statement highlights � Gross Margin � Decrease from 29.7% to 27.2% for half year � Reflects margin pressure in Electronics & Parts Services divisions � Overheads (excluding exceptional items) � Net Operating Expenses £20.7m compared to £20.3m last year � Electronics employees reduced from 379 to 348 over half year � Electronics centralisation largely complete � Parts Services employee numbers stable � Continuing focus on controlling overheads � Taxation (ongoing activities excluding associates) � Effective Tax Rate of 45.3% compared to 38.9% last year � Rate affected by unrelieved losses in Continental Europe 14 Belgium Denmark Finland France Germany Iberia Italy Netherlands Norway Sweden UK
Balance Sheet Highlights 31 March 30 September 2008 2007 2008 £75.2m £100.7m Equity Shareholders’ Funds £89.3m Net Cash/(Debt) £16.9m £(11.1)m £25.6m � Reduction in shareholders’ funds: � Impairment of Associate investment £(5.0) million, � Impairment of goodwill £(4.2) million � Dividend £(3.9) million � Excludes valuation of MessageLabs Group – additional £15.9 million � IAS 19 pension liability £3.3m (March 2008: £3.8m) reflects contributions paid � Triennial actuarial valuation March 2009 15 Belgium Denmark Finland France Germany Iberia Italy Netherlands Norway Sweden UK
Net trading assets Continuing operations 30 Sept 31 March 30 Sept 2008 2008 2007 Current Assets Stock 23.0 19.3 18.8 Debtors 36.5 36.0 28.2 Current Liabilities Creditors (35.0) (34.2) (23.2) Net Trading Assets 24.5 21.1 23.8 16 Belgium Denmark Finland France Germany Iberia Italy Netherlands Norway Sweden UK
Consolidated cash flow Half year to Year to 31 March £m 30 September 2008 2007 2008 Cash (expended)/generated from (2.9) 0.9 6.7 operations (0.3) (0.9) Capital expenditure less disposals (0.7) Proceeds from sale of businesses - - 38.5 (1.7) (5.7) Tax (1.6) Interest 0.2 (0.8) (1.2) (3.9) (5.8) Dividends paid (3.9) Other 0.2 (0.1) (0.8) (5.7) 31.0 Net cash (outflow)/inflow (8.7) Net Cash/(Debt) at period end 16.9 (11.1) 25.6 Net cash increased by Message Labs proceeds of £15.1 m in November 2008 Cash flows include disposed activities 17 Belgium Denmark Finland France Germany Iberia Italy Netherlands Norway Sweden UK
Cash generated from operations Half year to Year to £m 30 September 31 March 2008 2007 2008 Operating profit – continuing 1.0 2.8 2.6 – disposed - 1.9 2.0 Depreciation and amortisation 0.9 1.3 4.6 Increase in working capital (2.9) (4.3) (1.4) Pension scheme funding (0.6) (0.6) (1.6) Movement in provisions (1.3) (0.3) 0.3 Other - 0.1 0.2 0.9 6.7 Cash generated from operations (2.9) Net Cash/(Debt) at period end 16.9 (11.1) 25.6 Prior period cash flows include disposed activities 18 Belgium Denmark Finland France Germany Iberia Italy Netherlands Norway Sweden UK
Businesses 19 Belgium Denmark Finland France Germany Iberia Italy Netherlands Norway Sweden UK
Acal’s Businesses Electronics Design in and Production fulfilment of a range of complementary technology products comprising semiconductors, power solutions, system components (boards and assemblies), microwave & wireless devices, passive, timing/frequency control and electromechanical components Parts Services Supply and management of parts primarily for the IT industry, product support for service organisations and third party maintenance companies servicing PC’s, printers, servers, mainframes , ATM’s and EPOS Medical & Scientific Vertec Scientific is a supplier of medical and scientific equipment to the healthcare marketplace including as the UK's No.1 supplier of Osteoporosis Diagnosis equipment (DEXA scanners) as well as the UK's largest supplier of mini surgical c-arms 20 Belgium Denmark Finland France Germany Iberia Italy Netherlands Norway Sweden UK
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