Unaudited interim results for the six months ended 31 March 2010
NET DEBT AND CASHFLOW
Net debt increased from £13.6m at the 2009 year end to £14.4m at 31 March 2010. The stronger dollar added £0.5m to our reported net debt. Total bank facilities at 31 March 2010 are £23.5m, the majority of which are US$ denominated and committed to 30 June 2011.
Continuing operating activities before exceptional items generated cash of £4.9m (2009: £3.9m), representing 121% of operating profit (2009: 183%). Working capital increased by £2.1m due to receivables being high at 31 March 2010 as significant non MoD and DoD shipments were made in the latter part of the second quarter.
Capital expenditure of £2.8m (2009: £1.4m) was higher than in the first half of last year as work commenced on laying down additional filter capacity in our Cadillac facility. The total cost of this project is estimated at $5m and it is due to be completed in the final quarter of our 2010 financial year, doubling our filter production capability to meet current demand.