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Press Release
6 April 2011
Antonov plc (`de onderneming' of `Antonov') Resultaten (audited) over het jaar eindigend op 31 December 2010
Samenvatting
Antonov plc is actief in innovatie, ontwikkeling en marketing van producten en oplossingen voor de automotive industrie. De onderneming houdt een aanzienlijke portfolio intellectueel eigendom en is actief bezig commerciële projecten voor haar technologie te acquireren en uit te bouwen. Sleutelelementen van de commerciële strategie van Antonov zijn : Primaire focus op de 6-versnellingen automatische transmissie, TX-6, waarvoor de start van de productie (SOP) in China gepland is voor het einde van 2011 en waarvoor de eerste klant (Lifan, een snelgroeiende Chinese OEM) is geboekt. In aansluiting op de grote vooruitgang in 2010 een verdere ontwikkeling van 2- en 3versnellingen transmissie-technologie voor toepassingen zoals elektrische voertuigen. Het winnen en uitvoeren van additionele commerciële engineering projecten voor zowel de Europese als de Noord-Amerikaanse markten. In 2010 heeft Antonov opbrengsten ter hoogte van £ 255K gerealiseerd uit een combinatie van professioneel ontwerp, ontwikkelactiviteiten en product verkopen. Financiële data Totale opbrengsten voor het financiële jaar 2010 bedragen £255K (2009: £ 183K) Succesvolle Research & Development belastingteruggave ter hoogte van £ 824K in 2010 Jaarverlies gereduceerd tot £ 1.198K (2009: £ 4.745K) Kaspositie einde jaar £ 130K (2009: £ 239K) Na grote investeringen gedurende het jaar bedroegen de funding faciliteiten op basis van uitgifte aandelen op 31 December 2010 9,4 mln (£8,1 mln) (2009: 16,1 mln, £14,6 mln) Beschikbare krediet faciliteiten bedroegen op 31 December 2010 15 mln, met ca. £12,8 mln ongebruikt (2009: 15 mln, met ca. £13,6 mln ongebruikt).
Voor verdere informatie: Dr Jos E. Haag, Executive Chairman Antonov plc
+44 1926 455 800 +31 651 561 767
Antonov's website:
www.antonovplc.com
Antonov plc Chairman and Chief Executive Officer's Report As 2009 was the year of restructuring and strengthening the organisation and revising the business strategy of Antonov, 2010 was the year of implementation and commercialisation. The Antonov organisation is now substantially larger than it was after the restructuring and specialist groups in all relevant segments of the industry, such as software & control, hydraulics and manufacturing have been appointed. The Group organisation has been strengthened by the appointment on 1 January 2011 of two additional Directors to Antonov Automotive Technologies Ltd., the wholly owned operating subsidiary of Antonov Plc, Mrs. Jackie David as Finance Director and Mr. Simon Roberts as Managing Director. The culture of the company is no nonsense, innovative, target focused and based on team spirit. The innovative character of the company's activities has been underlined by its successful applications for Research & Development tax credits for innovative development, amounting to £824k in 2010 and by winning the prestigious Institution of Engineering & Technology Innovation Award in November 2010 for the development of its 3-speed automatic transmission for electric vehicles. In China, we have made considerable progress in taking the TX-6 automatic transmission to the market. Technically we reached B-sample level in the summer of 2010, which means that we now have a transmission that is fit for production and which has been installed in VW Golf demonstration cars, which are available in China as well as in the UK. Testing programmes such as durability testing have been partially executed and are still continuing. Currently we are working on C-samples, where the focus of manufacture has been to use production tooling and components produced in China wherever possible. Commercially, we have secured our first contract with Lifan, a car manufacturer in the Chong Qing area, who will buy an annual minimum of 20,000 units of the TX-6 from 1 January 2012, for its Lifan 620 and for its SUV. Additional OEM customers in China are presently under negotiation. The planned SOP (Start of Production) is for the end of 2011 when the Joint Venture will start with a manual assembly line with a capacity of 50,000 units per year to be followed by a partly automated line with an annual capacity of 200,000 units. In the Chinese market the TX-6 is very competitive as a consequence of its size (325 mm transverse length), weight and price. Furthermore it is forecast that there will be a significant shift toward automatic transmissions in the Chinese market, whilst the total market for vehicles in China will more than double in the coming 5 years. For the FWD (front wheel drive) vehicles in the 1.5L to 1.8L range, which are suitable for the Antonov TX-6 automatic transmission, the number of vehicles is expected to be approximately 20 million in 2015. Chong Qing EFA Transmission Co. Ltd. (EFA), which is a 50:50 Joint Venture between our partner Chong Qing Landai Industry Co., Ltd. (Landai) and Antonov Plc, has started effectively during 2010 with the first 7 people being appointed to the team. EFA has now taken over the supplier contacts in China, with support of people from Antonov China and Antonov in the UK. The EFA team will grow steadily as we get closer to setting up the assembly line and to SOP. The commercial activities in China are mainly a joint approach of Landai and Antonov, where the fact that Landai is a major component supplier to the automotive industry in China is a huge benefit.
Antonov plc Chairman and Chief Executive Officer's Report (Continued) Significant progress has been made with the development of a 3-speed automatic transmission for electric vehicles. Projects have been started up with Jaguar, in connection with the TSB (UK Government's Technology Strategy Board) and MIRA as well as with TM4, a large Canadian manufacturer of electric motors, where a 3-speed High Efficiency Transmission (HET) will be supplied for installation in an electric bus demonstration vehicle in conjunction with a TM4 electric motor. In 2010 these projects have resulted in revenue of £219k to be followed by more revenue in the coming years. Recently, Antonov has been selected by Smith Electric Vehicles Europe Ltd, the UK's leading manufacturer of commercial electric vehicles, to supply a transmission for their E-Van project, a TSB-funded programme to develop a more efficient power train solution for all-electric light commercial vehicles. In the longer term, there is a possibility of supplying this transmission technology to both the European and North American markets. In general we can see that there is a wide interest in these developments for the electric vehicle market and the number of parties interested in working with Antonov in this field allows us to be selective in our choice of partners based on long term commercial expectations. In February 2010, a new generation 2-speed project started with the MOD (Ministry of Defence in the UK) in conjunction with Prestolite Electric, a leading manufacturer of alternators. This has been followed by an agreement with UAV Engines Ltd. for a 1-speed reduction gearbox on an unmanned vehicle. Total revenues for the year were £255k relating to design and development services and product sales (2009: £183k). Although the operating expense was managed well, the process of taking the TX-6 automatic transmission to production has required and will require further very substantial investment in components and testing. As a consequence of Lifan's commitment to buy an annual minimum of 20,000 units of the TX-6 from 1 January 2012 onwards, as well as of the interest of other OEM's, an amount of £4,970k of capitalised development costs has been included in intangible assets on the balance sheet. The loss for the year was £1,198k compared with a loss of £4,745k in 2009. Cash balances as at 31 December 2010 were £130k (2009: £239k). We continue to rely on Quivest BV to fund our ongoing cash requirements. Quivest has continued with its strong support of the company during the period of its high requirement for funding in bringing the TX-6 to production. We have made great progress on all levels, which would have been impossible without the support of our shareholders and our motivated employees who will continue to play a crucial role in delivering results to our stakeholders.
Dr. Jos E. Haag Chairman & CEO
Antonov plc Consolidated statement of comprehensive income for the year ended 31 December 2010 2010 £'000 255 (586) (331) (1,691) (2,022) (2,022) 824 (1,198) 2009 £'000 183 (42) 141 (2,217) 66 (2,010) (2,735) (4,745) (4,745)
Revenue Cost of Sales Gross (Loss)/Profit Operating costs Other income Loss from operations before impairment charge Impairment charge Loss before tax Tax credit Loss for the year Other comprehensive income Foreign exchange on liquidated subsidiaries Exchange difference on translation of foreign operations Total comprehensive loss Loss per share Basic and diluted (pence)
Note 7
14 8 11
(8) (1,206)
(66) (3) (4,814)
12
(3.7)
(36.2)
All activities relate to continuing operations.
Antonov plc Consolidated statement of changes in equity for the year ended 31 December 2010
Share Share Capital Premium Reserve £'000 £'000
Unlisted Warrant Reserve £'000
Capital Reserve £'000
Foreign Retained Exchange Losses Reserve £'000 £'000
Total Equity £'000
Balance at 1 January 2009 Loss for the year Other comprehensive income Increase in share capital Unlisted warrants movement Share issue costs Adjustment on liquidation of subsidiary Share based payment Balance at 31 December 2009 Loss for the year Other comprehensive income Increase in share capital Unlisted warrants movement Share issue costs Share based payment Balance at 31 December 2010
17,425 1,087 18,512 3,047 21,559
30,279 3,601 (427) (2,494) 30,959 3,822 (758) (1,362) 32,661
1,085 427 1,512 (32) 1,480
2,587 (2,587) -
120 (66) 54 54
(48,428) (3) 2,599 221 (50,356) (8) 790 89 (50,683)
3,068 (69) 4,688 12 221 681 (8) 6,869 89 5,071
(4,745) (4,745)
- (2,494)
(1,198) (1,198)
- (1,362)
All amounts are attributable to equity holders of the parent.
Antonov plc Consolidated statement of financial position at 31 December 2010 2010 Note ASSETS Non-current assets Property, plant and equipment Intangible assets Investment in Joint Venture Total non-current assets Current assets Trade and other receivables Current tax asset Prepayments Cash and short-term deposits Total current assets Total assets LIABILITIES AND EQUITY Current liabilities Trade and other payables Total current liabilities Equity attributable to equity holders of the parent company Share capital Share premium reserve Unlisted warrant reserve Foreign exchange reserve Retained losses Total equity Total liabilities and equity 21 21,559 32,661 1,480 54 (50,683) 5,071 7,337 18,512 30,959 1,512 54 (50,356) 681 2,643 17 2,266 2,266 1,962 1,962 16 13 14 15 158 5,388 352 5,898 178 244 887 130 1,439 7,337 190 714 904 65 1,435 239 1,739 2,643 £'000 2009 £'000
Antonov plc Consolidated cash flow statement for the year ended 31 December 2010 2010 £'000 Operating activities Loss before tax Adjustments for: Depreciation Amortisation Loss on disposal of intangible assets Impairment of intangible assets Research & development costs Share based payments stock options Share based payments non cash payments Exchange movements Adjustments for non cash movements Cash outflow from operations before changes in working capital and provisions Increase in trade and other receivables Increase in trade and other payables Tax credit received Cash inflow/(outflow) from operating activities Investing activities Payments to acquire Property Plant Equipment Payments to acquire intangible assets Investment in Joint Venture Capitalisation of development costs Financing activities Proceeds from issue of ordinary shares Decrease in cash and cash equivalents Effect of exchange rates on cash and cash equivalents Cash and cash equivalents at the beginning of the year yearyyyyearyyyearperiod at the end of the year Cash and cash equivalents (80) (15) (352) (5,837) (6,284) 5,654 5,654 (100) (9) 239 130 3,764 3,764 (229) (32) 500 239 112 76 235 867 117 12 81 1,500 (522) (1) 473 580 1,052 530 (10) (75) (2,735) (2,820) (149) 312 163 (1,173) 135 80 97 2,735 221 27 114 3,409 (1,336) 2010 £'000 (2,022) 2009 £'000 2009 £'000 (4,745)
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Antonov Automatic Transmission