11th Aug 2009 07:00
11 August 2009
SNACKTIME plc
("SnackTime", the "Company" or the "Group")
RESULTS FOR THE YEAR ENDED 31 MARCH 2009
Snacktime plc, one of the UK's largest national operators of snack and chilled drink vending machines, is pleased to announce its preliminary results for the year ended 31 March 2009.
HIGHLIGHTS
Blair Jenkins, Chief Executive commented,
"This has been another successful year for SnackTime with significant growth in our vending machine estate, sales and profits. The economic environment remains difficult and the business has also had to withdraw vending machines from a larger than anticipated number of customers. However, the business continues to see very good opportunities in the coming year, and we remain optimistic that Snacktime's excellent growth record can be continued."
Enquiries:
Notes to Editors: -
SnackTime plc (AIM: SNAK.L), is the holding company of SnackTime UK Limited, which is one of the UK's largest national operators of snack and chilled drink vending machines. The group has thousands of sites located throughout the UK, which are serviced by its five main depots located in Cumbernauld (near Glasgow), Manchester, Alcester, Wokingham, and Belfast. Each main depot is responsible through a team of area managers, merchandisers and engineers for installing, maintaining and restocking all of the Group's vending machines.
The core element of the Group's business model is that it retains ownership of the vending machines, which are sited free on loan. The Group generates cash through sales of products from its vending machines and also from contributions from its Brand Partners, Mars, Britvic, PepsiCo (Walkers Crisps) and Coca-Cola.
SnackTime UK has four main types of vending machines. The Group decides on the appropriate style and size of vending machine which is installed in each customer's site so as to deliver a high level of customer service to maximise sales. The Group's customers include national retailers, such as Matalan, Argos, Homebase and Dunelm Mills, as well as a large number of offices and factories.
The Company's Annual Report and Accounts will be available on the Company's website and will be posted to shareholders by the end of August 2009. This announcement will be available on the Company's website at www.snacktimeplc.com.
DIRECTORS' STATEMENT
SnackTime is pleased to report another highly successful year of trading with sales in the year up by 75% with organic sales growth of approximately 30%. EBITDA is up 79% and profit before tax up 64%. The Group has significantly grown its snack vending machine estate and in addition has commenced the operation of hot beverage machines. SnackTime's growth continues to be exceptional compared to the vending industry norm.
The Group's revenue for the year was £6,673,965 (2008: £3,807,784), yielding a gross profit of £4,092,451 (2008: £3,053,465) and an operating profit of £399,255 (2008: £257,139). The Group's profit for the year after taxation was £130,993 (2008: £47,347). This gives basic earnings per share of 1.82 pence (2008: 0.87p). The Directors do not recommend payment of a dividend in respect of the year ended 31 March 2009 (2008: nil).
The current economic climate is encouraging organisations of all shapes and sizes to seek value from their suppliers. SnackTime's free on loan business model is particularly attractive to current and potential customers in these tougher economic times.
The growth this year has largely occurred as a result of an increase in new customers with several new multisite private and public sector customers being acquired. The Group significantly grew its base of glass fronted snack and chilled drink machines and the Board believes this is where most of the Group's growth in the current financial year will occur.
Demand for snack and chilled drink machines continues to be high. However, the Group is being much more selective over new sites in order to ensure that new customers generate the necessary return on capital invested.
The Company already has a very sophisticated IT infrastructure. Nevertheless further major IT upgrades and additions are currently being implemented. These IT improvements, when completed, will enable the Group's managers to remotely access the Group's central database whilst in the field via handheld devices. In addition, data entry is being converted from a manually-inputted paper based system to instant data input at source in the field. This should enable the business to improve efficiency still further and drive down operating costs over time.
The Group has many thousands of sites located throughout the UK mainland and both Northern and the Republic of Ireland. SnackTime believes it operates the most efficient and best customer service in its sector and this coupled with its policy of providing machines to customers on a 'free on loan' strategy results in a proposition which is in high demand.
The Group bases its team area managers, merchandisers and engineers at five main depots in Wokingham, Alcester, Belfast, Manchester and Glasgow. All of the Group sites are serviced from these hubs. SnackTime's head office is in Wokingham, Berkshire, and its sales office is located in Evesham, Worcestershire.
The core element of SnackTime's business model is that it retains ownership of all vending machines, which are sited at no cost to the site owner/occupier. SnackTime generates cash in two ways - firstly from the sales of product through the machines and secondly through contributions from its Brand partners - Mars, Walkers, Britvic and Coca Cola. SnackTime operates what it believes to be an industry leading service to its customers both in terms of efficiency and quality.
New products and current trading
Inaddition to its core customer base, SnackTime continues to receive high demand from two related types of customers. Firstly, those customers who are too small to be given a free on loan machine and secondly from customers wanting hot beverage machines. The Group is currently conducting trials in both these areas with a view to rolling out innovative market solutions in the forthcoming year. The Directors believe that these new solutions will significantly increase growth and profits in the forthcoming year and create economies of scale. In both cases the developing plans are based upon strong consumer branding by linking the solutions in a symbiotic relationship with major multinational brand partners.
SnackTime also continues to evaluate potential acquisitions in both its core snack sector as well as hot beverages. However, it is focused on ensuring that any new acquisitions strategically fit the Group's growth plans and are also priced at good value.
The Directors are confident that the current financial year will be another year of significant progress despite the current economic climate
Consolidated Income Statement
Year Ended 31 March 2009
|
2009 |
2008 |
|||
|
£ |
£ |
|||
|
Revenue |
6,673,965 |
3,807,784 |
||
|
Cost of sales |
(2,581,514) |
(754,319) |
||
|
Gross profit |
4,092,451 |
3,053,465 |
||
|
Distribution costs and administration expenses |
(3,693,196) |
(2,796,326) |
||
|
Profit from operations |
399,255 |
257,139 |
||
|
Investment income |
54,531 |
40,107 |
||
|
Finance costs |
(251,853) |
(174,395) |
||
|
Profit before taxation |
201,933 |
122,851 |
||
|
Income tax expense |
(70,940) |
(75,504) |
||
|
Profit after taxation |
130,993 |
47,347 |
||
|
Basic profit per share |
1.82 pence |
0.87 pence |
||
|
Diluted profit per share |
1.82 pence |
0.85 pence |
All operations relate to continuing operations
Consolidated Statement of Changes in Equity
|
Issued share capital |
Share premium account |
Share option reserve |
Equity element of compound financial instrument |
Capital redemption reserve |
Merger reserve |
Retained earnings |
Total |
|
|
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
|
|
Balance as at 1 April 2007 |
97,224 |
- |
- |
- |
1,274,279 |
116,892 |
(240,054) |
1,248,341 |
|
Profit for the year & total recognised income and expense in year |
- |
- |
- |
- |
- |
- |
47,347 |
47,347 |
|
Share option expense |
- |
- |
38,189 |
- |
- |
- |
- |
38,189 |
|
Issue of share capital |
41,667 |
2,753,458 |
- |
- |
- |
- |
- |
2,795,125 |
|
Balance as at 31 March 2008 |
138,891 |
2,753,458 |
38,189 |
- |
1,274,279 |
116,892 |
(192,707) |
4,129,002 |
|
Balance as at 1 April 2008 |
138,891 |
2,753,458 |
38,189 |
- |
1,274,279 |
116,892 |
(192,707) |
4,129,002 |
|
Profit for the year |
- |
- |
- |
- |
- |
- |
130,993 |
130,993 |
|
Total recognised income and expense for the year |
- |
- |
- |
- |
- |
- |
130,993 |
130,993 |
|
Issue of share capital |
10,836 |
454,185 |
- |
- |
- |
- |
- |
465,021 |
|
Equity element of compound financial instruments issued |
- |
- |
- |
65,810 |
- |
- |
- |
65,810 |
|
Share option expense |
- |
- |
72,013 |
- |
- |
- |
- |
72,013 |
|
Share issue costs |
- |
(141,118) |
- |
- |
- |
- |
- |
(141,118) |
|
Balance as at 31 March 2009 |
149,727 |
3,066,525 |
110,202 |
65,810 |
1,274,279 |
116,892 |
(61,714) |
4,721,721 |
Consolidated Balance Sheet
31 March 2009
|
2009 |
2008 |
|||
|
£ |
£ |
|||
|
ASSETS |
||||
|
Non current assets |
||||
|
Property, plant and equipment |
5,104,828 |
3,315,495 |
||
|
Deferred tax asset |
- |
52,169 |
||
|
5,104,828 |
3,367,664 |
|||
|
Current assets |
||||
|
Inventories |
933,203 |
754,946 |
||
|
Trade and other receivables |
987,014 |
887,480 |
||
|
Cash and cash equivalents |
1,116,749 |
1,903,020 |
||
|
3,036,966 |
3,545,446 |
|||
|
TOTAL ASSETS |
8,141,794 |
6,913,110 |
||
|
LIABILITIES |
||||
|
Current liabilities |
||||
|
Borrowings |
(824,833) |
(649,010) |
||
|
Trade and other payables |
(613,408) |
(769,780) |
||
|
(1,438,241) |
(1,418,790) |
|||
|
Non current liabilities |
||||
|
Borrowings |
(1,963,061) |
(1,344,155) |
||
|
Trade and other payables |
- |
(21,163) |
||
|
Deferred tax liability |
(18,771) |
- |
||
|
(1,981,832) |
(1,365,318) |
|||
|
TOTAL LIABILITIES |
(3,420,073) |
(2,784,108) |
||
|
NET ASSETS |
4,721,721 |
4,129,002 |
||
|
EQUITY |
||||
|
Share capital |
149,727 |
138,891 |
||
|
Share premium account |
3,066,525 |
2,753,458 |
||
|
Merger reserve |
116,892 |
116,892 |
||
|
Capital redemption reserve |
1,274,279 |
1,274,279 |
||
|
Share option reserve |
110,202 |
38,189 |
||
|
Equity element of compound financial instrument |
65,810 |
- |
||
|
Retained earnings |
(61,714) |
(192,707) |
||
|
TOTAL EQUITY |
4,721,721 |
4,129,002 |
||
Consolidated Cash Flow Statement
Year Ended 31 March 2009
|
2009 |
2008 |
|||
|
£ |
£ |
|||
|
Cash flow from operating activities |
||||
|
Adjusted for: |
||||
|
Profit before taxation |
201,933 |
122,851 |
||
|
Finance costs |
251,853 |
174,395 |
||
|
Finance income |
(54,531) |
(40,107) |
||
|
Depreciation of property, plant and equipment |
641,623 |
325,724 |
||
|
Profit on disposal of property, plant and equipment |
(1,617) |
(21,314) |
||
|
Share based payment expense |
72,013 |
38,189 |
||
|
Operating cash flow |
1,111,274 |
599,738 |
||
|
Increase in inventories |
(178,257) |
(277,640) |
||
|
Increase in receivables |
(99,534) |
(122,354) |
||
|
Decrease in payables |
(177,536) |
(370,094) |
||
|
Cash generated from operating activities |
655,947 |
(170,350) |
||
|
Interest paid |
(251,853) |
(174,395) |
||
|
Net cash from operating activities |
404,094 |
(344,745) |
||
|
Cash flow from investing activities |
||||
|
Interest received |
54,531 |
40,107 |
||
|
Proceeds on disposal of property, plant and equipment |
1,617 |
51,491 |
||
|
Purchase of property plant and equipment |
(2,430,956) |
(1,511,859) |
||
|
Net cash generated from investing activities |
(2,374,808) |
(1,420,261) |
||
|
Cash flow from financing activities |
||||
|
Repayment of borrowings |
(717,659) |
(86,033) |
||
|
Hire purchase and loan advances |
1,724,430 |
826,871 |
||
|
Proceeds on issue of shares and other equity instruments |
344,093 |
2,795,125 |
||
|
Net cash generated from financing activities |
1,350,864 |
3,535,963 |
||
|
Net (decrease)/increase in cash and cash equivalents |
(619,850) |
1,770,957 |
||
|
Cash and cash equivalents |
||||
|
Cash and cash equivalents at beginning of year |
1,735,066 |
(35,891) |
||
|
Cash and cash equivalents at end of year |
1,115,216 |
1,735,066 |
||
|
Cash and cash equivalents comprise: |
||||
|
Cash |
1,116,749 |
1,903,020 |
||
|
Overdrafts |
(1,533) |
(167,954) |
||
|
1,115,216 |
1,735,066 |
|||
Notes to the results
1. publication of non-statutory accounts
The financial information set out in this announcement does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985.
The financial information for the year ended 31 March 2008 has been extracted from the Group's financial statements to that date which received an unmodified auditor's report and have been delivered to the Registrar of Companies. The financial information for the year ended 31 March 2009 has been extracted from the Group's financial statements to that date which have received an unmodified auditor's report but have not yet been delivered to the Registrar of Companies.
2. PROFIT from operations
|
2009 |
2008 |
|
|
£ |
£ |
|
|
This is stated after charging/(crediting): |
||
|
Depreciation of property, plant and equipment |
||
|
- owned by the group |
377,511 |
209,319 |
|
- held under finance leases |
264,112 |
116,405 |
|
Profit on disposal of property, plant and equipment |
(1,617) |
(21,314) |
|
Rentals under operating leases - land and buildings |
52,500 |
48,436 |
3. investment income
|
2009 |
2008 |
|
|
£ |
£ |
|
|
Bank interest receivable |
54,531 |
40,107 |
|
2009 |
2008 |
|
|
£ |
£ |
|
|
Interest on bank loans |
8,799 |
67,676 |
|
Interest on convertible loan notes |
20,277 |
- |
|
Other loan interest |
34,996 |
34,996 |
|
Interest on obligations under finance leases |
187,781 |
71,723 |
|
251,853 |
174,395 |
5. Staff numbers and costs
The average monthly number of people employed by the Group (including Executive Directors) during the year, analysed by category, were as follows:
|
2009 |
2008 |
|
|
Operational staff |
28 |
22 |
|
Administrative staff |
13 |
16 |
|
41 |
38 |
|
The aggregate payroll costs were as follows: |
2009 |
2008 |
|
£ |
£ |
|
|
Wages, salaries and fees |
1,124,037 |
978,366 |
|
Pension costs |
35,207 |
- |
|
Social security costs |
120,543 |
107,525 |
|
Cost of options issued |
72,013 |
38,189 |
|
1,351,800 |
1,124,080 |
6. Taxation
|
2009 |
2008 |
|
|
£ |
£ |
|
|
Corporation tax |
- |
- |
|
Deferred tax |
||
|
Origination and reversal of timing differences |
80,228 |
54,926 |
|
Adjustments in respect of prior periods |
(9,288) |
20,578 |
|
Tax on profit on ordinary activities |
70,940 |
75,504 |
Factors affecting tax charge for the year:
The tax assessed for the year is lower than the standard rate of corporation tax in the UK of 28% (2008: 30%). The differences are explained below:-
|
2009 |
2008 |
|
|
£ |
£ |
|
|
TAX RECONCILIATION |
||
|
Profit per accounts before taxation |
201,933 |
122,851 |
|
Tax on profit on ordinary activities at standard |
||
|
rate of 28% (2008 - 30%) |
56,541 |
36,855 |
|
Expenses not deductible for tax purposes |
21,035 |
12,350 |
|
Ineligible depreciation |
2,652 |
1,995 |
|
Adjustments to deferred tax for prior years |
(9,288) |
20,578 |
|
Deferred tax adjustments |
- |
10,866 |
|
Effect of change in tax rate on opening balances |
- |
(7,140) |
|
Current tax charge for the year |
70,940 |
75,504 |
7. Property Plant and equipment
|
Furniture, |
|||||
|
Leasehold |
Plant and |
Motor |
fittings and |
||
|
improvements |
machinery |
vehicles |
equipment |
Total |
|
|
£ |
£ |
£ |
£ |
£ |
|
|
Cost |
|||||
|
At 1 April 2007 |
38,696 |
2,628,440 |
295,228 |
91,271 |
3,053,635 |
|
Additions |
8,911 |
1,473,302 |
2,231 |
27,415 |
1,511,859 |
|
Disposals |
- |
- |
(83,888) |
- |
(83,888) |
|
At 1 April 2008 |
47,607 |
4,101,742 |
213,571 |
118,686 |
4,481,606 |
|
Additions |
55,213 |
2,168,001 |
141,481 |
66,261 |
2,430,956 |
|
Disposals |
- |
- |
(37,709) |
- |
(37,709) |
|
At 31 March 2009 |
102,820 |
6,269,743 |
317,343 |
184,947 |
6,874,853 |
|
Depreciation |
|||||
|
At 1 April 2007 |
16,264 |
673,478 |
140,449 |
63,907 |
894,098 |
|
Charge for the year |
13,417 |
244,468 |
48,742 |
19,097 |
325,724 |
|
Disposals |
- |
- |
(53,711) |
- |
(53,711) |
|
At 1 April 2008 |
29,681 |
917,946 |
135,480 |
83,004 |
1,166,111 |
|
Charge for the year |
13,120 |
546,980 |
61,258 |
20,265 |
641,623 |
|
Disposals |
- |
- |
(37,709) |
- |
(37,709) |
|
At 31 March 2009 |
42,801 |
1,464,926 |
159,029 |
103,269 |
1,770,025 |
|
Net Book Value |
|||||
|
At 31 March 2009 |
60,019 |
4,804,817 |
158,314 |
81,678 |
5,104,828 |
|
At 31 March 2008 |
17,926 |
3,183,796 |
78,091 |
35,682 |
3,315,495 |
Property Plant and equipment (continued)
The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
|
2009 |
2008 |
|
|
£ |
£ |
|
|
Plant and machinery |
1,885,241 |
1,463,950 |
|
Motor vehicles |
136,239 |
47,797 |
|
2,021,480 |
1,511,747 |
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