Notes to the financial statements - Plasmon

Notes to the financial statements continued
for the year ended 31 March 2003
2 Turnover, profit/(loss) before taxation and net assets
The analysis by geographical area of the Group’s turnover, (loss)/profit before taxation and net assets is set out below:
Total Total
2003 2002
£’000 £’000
Turnover by destination
Europe 18,736 15,773
United States of America 37,106 42,712
Rest of World 4,241 3,069
60,083 61,554
Turnover by origin
Europe 20,517 17,599
United States of America 39,566 43,955
60,083 61,554
Profit/(loss) before taxation
Europe 2,528 686
United States of America (5,177) (6,444)
Loss before interest (2,649) (5,758)
Net interest payable (737) (541)
(3,386) (6,299)
Net assets by origin
Europe 29,763 27,878
United States of America 19,962 21,902
Net operating assets 49,725 49,780
Bank loans and overdrafts (11,388) (8,961)
Current tax (payable)/receivable (67) 485
Deferred tax position (31) (147)
38,239 41,157
The Group operates in one business segment, professional data storage solutions. The Group derives income of a consultancy nature from the
sale of “know-how” as a result of and incidental to its normal production activities and therefore, this is not considered to be a separate business
segment. Consultancy income in the year amounted to £3,935,000 (2002: £3,607,000). Intra segment turnover for year ended 31 March 2003
was £5,325,000 (2002: £7,487,000) from Europe to the United States of America and £4,033,000 (2002: £5,072,000) from the United States of
America to Europe.
3 Net operating expenses
Total Total
2003 2002
£’000 £’000
Administrative expenses 3,747 4,264
Selling and distribution costs 8,993 7,816
UDO product development costs 6,495 5,246
Other product development costs 3,644 6,162
Total product development costs 10,139 11,408
Other operating (income) / expenses (24) 126
Net operating expenses 22,855 23,614
The costs of the UDO development programme have been separately disclosed due to their significance to the Group. This programme is
developing next generation 5 1 ⁄4" drive and media technology that will supercede existing products currently sourced from third party suppliers.
Plasmon Plc
Annual Report 2003
Notes to the financial statements
32