Telemetrix Plc is refusing to be dragged down by its US subsidiaries as it continues ruthlessly to reshape its transatlantic interests. The High Wycombe, UK semiconductor manufacturer and digital test equipment supplier has produced some very disappointing results for the year to December 31. The group made a loss before tax of 6.9m pounds compared to profits of 10.4m pounds last year and revenue fell 4.2% to 128.5m pounds. But the figures are horribly distorted by a 6m pound provision for the disposal of Promptus Communications Inc. the group’s US Network Access Card business. The group has been desperate to sell Promptus for some time to generate cash for the reorganization of US operations (CI 2,971). But the resulting impact on the group profit and loss account does not make for pleasant reading. Telemetrix has been caught in the current confusion over accounting for goodwill under UK standards. It has been forced to write back through the profit and loss account 11.3m pounds of goodwill previously taken directly to reserves. This adjustment has played havoc with reported earnings per share, which are reduced by 9.5 pence to create a loss per share of 4.2 pence. Finance director Bruce Rattray has done his best to soften the blow by including a headline earnings per share figure to highlight the distortion, but the market reacted nervously as shares fell threepence to 54.5 pence by midday. The remaining US networking business continues to make losses, although fourth quarter results were close to break-even following extensive restructuring to reduce fixed costs in the face of falling revenue. The UK continues to be Telemetrix’s strongest area, contributing 5.7m pounds of profit which is submerged in the consolidated losses. Chief executive Tim Curtis described it as a creditable performance. The board recommends a final dividend of 1.45 pence, being also the total dividend for the year, unchanged from last year.
