3DM Worldwide Plc
AIM : TDM

3DM Worldwide Plc

August 30, 2005 04:18 ET

3DM Worldwide plc: Interim Results for the Six Months Ended 30 June 2005

LONDON, UNITED KINGDOM--(CCNMatthews - Aug. 30, 2005) - 3DM Worldwide plc ("3DM" or "the Company")(AIM:TDM), which has developed and is now exploiting a patented plastic polymer moulding process, announces its interim results for the six months ended 30 June 2005.

Highlights

- Turnover Pounds Sterling 567,000 (1H 2004: Pounds Sterling 332,000)

- Operating loss Pounds Sterling 1.31 million (1H 2004 Pounds Sterling 1.61 million)

- Pre-tax loss Pounds Sterling 1.05 million (1H 2004 Pounds Sterling 1.87 million)

- Loss per share 1.58p (1H 2004 loss per share 2.82p)

- Further development licences granted in the US for military and aircraft applications

- Licence signed for development of construction and material handling products in Scandinavia and the Baltic States

Commenting on the Results, Ken Brooks, Executive Chairman of 3DM Worldwide plc, said:

"Our strategy of transferring the company's development work to a new site, the award of the first patents for the master process, and the granting of further licences in the US, Scandinavia and the Baltic States, underpins the Board's confidence in the future."



For further information:

3DM Worldwide PLC

Ken Brooks, Chairman Tel: +44 (0) 1993 779 468
kenb@3dmworldwide.com

David Shepley-Cuthbert, Finance Director www.3dmworldwide.com
david@3dmworldwide.com


Media enquiries:

Abchurch

Henry Harrison-Topham / Ariane Comstive Tel: +44 (0) 20 7398 7700
ariane.comstive@abchurch-group.com www.abchurch-group.com


Chairman's Statement

I am pleased to report our interim results for the first half of 2005.

We have made a loss but this reflects the final expenditure incurred by us in completing the development of the alpha line, which has now been commissioned in Bedwas House, Caerphilly.

I know that many shareholders have now had an opportunity to visit Caerphilly and see the alpha machine itself. It is a truly impressive piece of engineering and we believe represents a ground-breaking technology.

Your Company is in good shape. We have developed machinery in the UK here and in America. We have significant business before us and look forward to this being developed. Until recently, we have been hampered by the lack of a fully working line, in the UK in particular.

My thanks are due to the team at Bedwas House without whose dedication and hard work we would not be where we are. My especial thanks to Peter Aylmore who has taken on the role of Head of Special Projects stepping aside from day to day operations which will now be the responsibility of Peter Oldham and our new Chief Operating Officer Niall Mackay who will initially join the board of 3DM Group Ltd.

Ken Brooks

Chairman

Operational Review

This first half of 2005 has been successful operationally, though the commercialisation of the process has been slower than anticipated.

UK

The beta line continues to work successfully at the site in Bedwas House, Caerphilly. Equally, the alpha (large scale robotic) line is operating to schedule. The development line is still in use in Trowbridge, though this R&D centre will close in October of this year because of the planned redevelopment of the site. The development work will be moved to Bedwas House, which will facilitate effective working. Additionally it will provide the opportunity to show potential licensees the scope of our operations and provide tighter cost control.

The conversion of heads of terms and letters of intent in the UK into full licence arrangements has been at a slower pace than originally anticipated.

Most potential licensees have been keen to see the alpha line fully operational and have also sought assurance on raw material costs. These criteria have only been addressed in the last few weeks, due to the nature of the development programme.

USA

Further development licences have been granted in the fields of military and aircraft applications. The development opportunities previously identified with the automotive industry and building products supply, among others, is progressing. The ongoing work with Silkwood continues to generate an income stream.

REST OF THE WORLD

A licence has been signed for the development of construction and material handling products in Scandinavia and the Baltic States. The interest from several countries in Europe and Africa remains live, though here there has been a dependency on the alpha and beta lines in Wales being fully operational. The previously identified interest from China, India and Brazil continues.

PEOPLE

Our recruitment program has continued and the development and operational teams are now up to strength, though the size of both teams will grow as more work is acquired for the lines in Wales.

Paul Markgraf, as announced, joined the business in July as Business Development Manager. Paul's key focus is to take over part of Peter Aylmore's former role and to build relationships with existing interested parties, particularly in the UK and mainland Europe, as well as managing a marketing-focused approach to potential licensees. There has been major progress on costing models and control systems in the first half of this year and this will greatly facilitate this work.

Peter Oldham

Managing Director

Financial Review

Results

The consolidated net operating loss was Pounds Sterling 1.31 million, a reduction from Pounds Sterling 1.61 million in 2004. The consolidated losses before tax were Pounds Sterling 1.05 million compared to losses of Pounds Sterling 1.87 million in 2004.

These losses include non-cash items of Pounds Sterling 218,000 covering depreciation of tangible fixed assets and Pounds Sterling 378,000 for the amortisation of Intellectual Property, which is being written off over its expected useful life of twenty years.

No dividend payment is proposed.

Financing

During the period the Company received an initial licence fee following the signing of an agreement covering Scandinavia and the Baltic States. In accordance with accounting standards, this revenue is taken as deferred income and released to the profit and loss account over the life of the agreement.

The Company had contracted to sell the alpha line in late 2004 on a phased basis linked to commissioning. In total Pounds Sterling 2.9 million has been received from the sale and leaseback arrangement with a small balance to follow as costs are finalised. In addition, a separate finance arrangement has been concluded for the beta line and funds totalling Pounds Sterling 344,000 has been received in this period.

The Company sold its remaining investment in the Kyrgyz Republic in 2004 for a consideration of US $1.5 million. A further US$340,000 has been received in March 2005.

No grants have been received to date though there are still a number of applications in process that are expected to produce some grant income over the next twelve months.

Cash balances currently stand at Pounds Sterling 542,000 (30 June 2005 - Pounds Sterling 605,000). The commitment of Pounds Sterling 5 million for an equity line of credit with Cornell Capital Partners remains in place but has not been activated. Separately, as previously announced, negotiations are in hand to finance the remaining machinery and equipment for up Pounds Sterling 2 million to provide further working capital.

David Shepley-Cuthbert

Finance Director

INDEPENDENT REVIEW REPORT TO 3DM WORLDWIDE PLC

Introduction

We have been instructed by the company to review the financial information for the six months ended 30 June 2005 on pages 7 to 12. We have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information.

Our report has been prepared in accordance with the terms of our engagement to assist the company in meeting the requirements of rules of the London Stock Exchange plc for companies trading securities on the AIM market and for no other purpose. No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorised to do so by our prior written consent. Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability.

Directors' responsibilities

The interim report, including the financial information contained therein, is the responsibility of, and has been approved by the directors. The directors are responsible for preparing the interim report in accordance with the rules of the London Stock Exchange plc for companies trading securities on the AIM market which require that the half yearly report be presented and prepared in a form consistent with that which will be adopted in the Company's annual accounts having regard to the accounting standards applicable to such annual reports.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4 issued by the Auditing Practices Board for use in the United Kingdom by auditors of fully listed companies. A review consists principally of making enquiries of group management and applying analytical procedures to the financial information and underlying financial data and based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with United Kingdom Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly we do not express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 30 June 2005.



BDO STOY HAYWARD LLP
Chartered Accountants

125 Colmore Row
Birmingham
B3 3SD

30 August 2005


UNAUDITED INTERIM ACCOUNTS FOR THE SIX MONTHS ENDED 30 JUNE 2005

The financial information contained within these accounts has been prepared by the Directors who accept responsibility for the financial information presented below and confirm that it has been properly presented in accordance with applicable law. The interim accounts have been prepared on the basis of the accounting policies set out in the group's 2004 annual accounts.

The financial information covers the six months ended 30 June 2005.



GROUP PROFIT AND LOSS ACCOUNT

Unaudited Unaudited Audited
Six Months Six Months Year ended
ended ended 31
30 June 30 June December
2005 2004 2004
Pounds Pounds Pounds
Sterling Sterling Sterling
'000 '000 '000


Turnover
Continuing operations 567 332 783
-------------------------------------
567 332 783

Cost of sales (63) - (48)
-------------------------------------
Gross profit 504 332 735

Administrative expenses (1,991) (2,022) (3,692)
Other operating income 172 77 152
-------------------------------------

Operating Loss (1,315) (1,613) (2,805)
Loss on disposal of
subsidiaries - - (761)
-------------------------------------
(1,315) (1,613) (3,566)

Foreign currency gains/
(losses) on investments 4 269 - (464)
Interest receivable - 19 36
Interest payable (6) (274) (8)
-------------------------------------

Loss on ordinary activities
before taxation (1,052) (1,868) (4,002)

Tax on loss on ordinary
activities - - -
-------------------------------------

Loss on ordinary
activities after
taxation (1,052) (1,868) (4,002)

-------------------------------------

Basic and diluted loss
per ordinary share 5 (1.58) p (2.82) p (6.02) p
-------------------------------------
-------------------------------------


GROUP BALANCE SHEET AT 30 JUNE 2005

Unaudited Unaudited Audited
30 June 30 June 31 December
2005 2004 2004
Pounds Pounds Pounds
Sterling Sterling Sterling
'000 '000 '000

Fixed Assets
Intangible assets 12,373 13,125 12,590
Tangible assets 4,293 576 2,642
Investments 564 3,675 565
-------------------------------------
17,230 17,376 15,797
-------------------------------------

Current Assets
Work in progress - 208 -
Debtors 2,776 2,167 2,069
Cash at bank 654 295 86
-------------------------------------
3,430 2,670 2,155
-------------------------------------

Creditors: amounts falling
due within one year
Bank overdraft (49) (35) (10)
Other loans - (275) -
Trade creditors (840) (258) (757)
Accruals and deferred
income (434) (454) (770)
Lease purchase (247) - -
Other creditors (957) (765) (184)
-------------------------------------
(2,527) (1,787) (1,721)
-------------------------------------

Net current assets 903 883 434

Creditors: amounts falling
due after one year
Lease purchase (2,997) - -

-------------------------------------

Net assets 15,136 18,259 16,231
-------------------------------------
-------------------------------------

Capital and reserves
Called-up equity share capital 1,670 1,665 1,668
Share premium 29,992 29,924 29,958
Share option reserve 34 - 34
Profit and loss account (16,560) (13,330) (15,429)

-------------------------------------

Shareholders' funds 15,136 18,259 16,231
-------------------------------------
-------------------------------------


CASHFLOW STATEMENT

Unaudited Unaudited Audited
30 June 30 June 31 December
2005 2004 2004
Pounds Pounds Pounds
Sterling Sterling Sterling
'000 '000 '000

Net cash (outflow)/inflow
from operating activities (984) 164 (2,264)

Returns on investments and
servicing of finance
Interest paid (6) (3) (8)
Interest received - 19 36
-------------------------------------

Net cash (outflow)/inflow
from returns on investments
and servicing of finance (6) 16 28
-------------------------------------

Capital expenditure and
financial investment
Purchase of tangible
fixed assets (1,761) (176) (2,371)
Acquisition of investments - (522) (1,323)
Receipts from investments - - 2,296
-------------------------------------

Net cash outflow from
capital expenditure and
financial investment (1,761) (698) (1,398)

-------------------------------------

Net cash outflow before
financing (2,751) (518) (3,634)
-------------------------------------

Financing
Issue of equity share capital 36 369 3,301
Sale and leaseback 3,244 - -
-------------------------------------

Net cash flow from financing 3,280 369 3,301
-------------------------------------

Increase/(decrease) in cash
in the period 529 (149) 333
-------------------------------------
-------------------------------------


STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

Unaudited Unaudited Audited
30 June 30 June 31 December
2005 2004 2004
Pounds Pounds Pounds
Sterling Sterling Sterling
'000 '000 '000

Loss for the period (1,052) (1,868) (4,002)
Exchange translation
differences on consolidation (79) - 36
-------------------------------------

Total recognised gains and
losses for the period (1,131) (1,868) (3,966)

Prior period adjustment - (1,710) (1,710)

-------------------------------------

Total gains and losses
recognised since last
financial statements (1,131) (3,578) (5,676)

-------------------------------------
-------------------------------------


NOTES

1. Reconciliation of operating loss to net cash (outflow)/inflow
from operating activities

Unaudited Unaudited Audited
30 June 30 June 31 December
2005 2004 2004
Pounds Pounds Pounds
Sterling Sterling Sterling
'000 '000 '000

Operating loss (1,315) (1,613) (2,805)
Depreciation and amortisation 596 450 934
Increase in work in progress - (208) -
Profit on disposal of fixed
assets (64) - -
Foreign exchange movements (3) - -
(Increase)/decrease in debtors (707) 1,594 (327)
Increase/(decrease) in creditors 509 (59) (100)
Share option charge - - 34
-------------------------------------
(984) 164 (2,264)
-------------------------------------
-------------------------------------


2. Reconciliation of net cash flow to movement in debt

Unaudited Unaudited Audited
30 June 30 June 31 December
2005 2004 2004
Pounds Pounds Pounds
Sterling Sterling Sterling
'000 '000 '000

Increase /(decrease) in cash
in period 529 (149) (333)
-------------------------------------
Movement in net funds/(debt)
resulting from cashflows 529 (149) (333)
Sale and leaseback (3,244) - -
-------------------------------------
Movement in net debt (2,715) (149) (333)

Net funds at beginning
of period 76 134 409

-------------------------------------

Net (debt)/funds at end
of period (2,639) (15) 76
-------------------------------------
-------------------------------------


3. Analysis of changes in
net funds

At 1 At 30
January June
2005 Cashflow 2005
Pounds Pounds Pounds
Sterling Sterling Sterling
'000 '000 '000

Cash at bank 86 568 654
Bank overdraft (10) (39) (49)
-------------------------------------
76 529 605

Debt due within one year - (247) (247)
Debt due over one year - (2,997) (2,997)
-------------------------------------

- (3,244) (3,244)
-------------------------------------

Total 76 (2,715) (2,639)
-------------------------------------
-------------------------------------


4. Foreign currency gains/(losses) on investments

The exchange movement on loans to group undertakings arises from a loan made by the company to a US subsidiary in US dollars. The loan payable in the subsidiary accounts is translated at the closing rate as part of the group's net investment in the US subsidiary. As such any gains or losses arising on the loan payable are taken directly to reserves as required by SSAP 20.

5. Loss per share

The basic loss per share is calculated on the loss attributable to the shareholders of Pounds Sterling 1,051,902 (2004 - loss of Pounds Sterling 1,867,793) divided by the weighted average number of ordinary shares in issue during the period of 66,524,950 (2004 - 66,326,979).

6. Financial information

The comparatives for the full year ended 31 December 2004 are not the Company's full statutory accounts for that year. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors, BDO Stoy Hayward LLP, report on those accounts was unqualified and did not contain a statement under section 237(2)-(3) of the Companies Act 1985.

Copies of this announcement will be available for inspection at the Company's registered office, Unit 4, Manor Business Park, Witney Road, Finstock, Oxon. OX7 3DG.

Contact Information