30th Sep 2014 12:14
LONDON (Alliance News) - Vending machine company SnackTime PLC saw its shares suspended Tuesday after it failed to publish its audited financial report for its last financial year within its deadline, and said re-financing negotiations regarding future funding are still ongoing.
The company is currently in negotiations regarding future funding for the business, with both The Co-operative Bank and the group's new shareholder, Versatel Co Ltd. However, it said that while negotiations are at an "advanced stage," an agreement has still not been made.
"While all parties are seeking the same ends, and considerable progress has been made, we are not yet in a position to announce the details of the new proposals. Shareholders will be kept fully informed of progress," the company said in a statement Tuesday.
Earlier this month, the company saw a quarter of its market value wiped after it issued a profit warning for its last financial year to the end of March 2014, blaming a change in the estimated stock and cash in its machines and a more prudent approach to doubtful debt provision in its Snack in the Box brand.
At the time it also that trading so far this year had been behind the prior year, hit by disappointing cash takings through the group's vending machines and the loss of business at Drinkmaster, although it said it was hopeful of a pickup.
SnackTime had been trying to sell its Drinkmaster business, which provides pods and capsules and other drinks machines for work places and travel locations. However, earlier this month it called off the planned sale of its Drinkmaster business after potential buyer interest reduced after the unit lost some of the business it had with its largest customer, William Hill PLC. The company said interest in buying the business had waned since April due to the lowered business with William Hill, which had reduced profitability "materially."
SnackTime Tuesday did release its unaudited results for the year ended March 31, 2014, but said it has not been able to publish its audited accounts as its re-financing negotiations with Versatel Co Ltd and The Co-operative Bank have not been concluded.
"It is the board's intention to publish the report and accounts for the year ended 31 March 2014, with a clean audit opinion, as soon as possible after the re-financing has been completed," the company said.
SnackTime reported a pretax loss of GBP8.5 million for the year to the end of March, compared with a GBP8.3 million loss the prior year. Revenue however, dropped again to GBP18.8 million, down 8.3% from GBP20.5 million a year earlier. Last year it reported a 7.6% revenue fall.
"It has been a difficult year in which the refinancing of the group has been the over-riding priority. Whilst the operating performance before exceptional costs has improved it has been due largely to cost cutting whilst our vending machine estate has continued to decline. For the second year in succession significant write-downs have been required to our intangible assets reflecting the company's trading performance," said Chairman Jeremy Hamer in a statement.
"These results are being released, ahead of the audit sign-off which is pending the conclusion of the advanced discussions being held with both Versatel Company Ltd and The Cooperative Bank," said Hamer.
SnackTime shares last traded at 10.30 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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