Final Results

28 July 2010

SNACKTIME plc

("SnackTime", the "Company" or the "Group")

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2010

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 2010.

Highlights

·; Group sales* increased by 73% to £11.5m (2009: £6.7m)

·; IFRS reported revenue grew 13.4% to £7.7m (2009: £6.7m)

·; Operating profit** improved to £1.6m (2009: £0.4m)

·; Adjusted profit before tax of £1.2m (2009: £0.2m)

·; Earnings per share rose to 17.12p (2009: 1.82p)

·; Acquisition of MBM Systems ("SITB") - SnackTime's major UK competitor in September 2009

·; Guaranteed income contracts introduced and as at 31 March 2010 already represented 77% of the estate

·; SnackTime+ now the fourth largest vending operator in the UK

*Group sales = IFRS revenues + product sales through Franchisees

**after gain on bargain acquisition and integration and restructuring costs

+measured on a Group sales basis

Blair Jenkins, CEO of SnackTime plc, commented:

"This has been a transformational period for SnackTime with the acquisition of the Snack in the Box business not only removing a major competitor, but also providing us with a much greater footprint and presence in our chosen markets. Our adoption of guaranteed income contracts provides us with greater security of earnings whilst still enabling customers to benefit from a free to use model.

The Board is keen to identify further acquisition opportunities as SnackTime continues to increase its penetration in the UK snack, chilled drink, confectionary and hot beverage market, and we look forward to the future with confidence."

For further information:

SnackTime PLC

Blair Jenkins, Chief Executive 0118 977 3344

Arbuthnot Securities Limited

Tom Griffiths, Alasdair Younie 020 7012 2000

Threadneedle Communications

 Josh Royston, Graham Herring 020 7653 9850

CHAIRMAN'S STATEMENT

PRINCIPAL ACTIVITIES

The principal activity of the Group is the provision and operation of snack, chilled drink, confectionary and hot beverage machines to organisations throughout the United Kingdom and Ireland.

BUSINESS REVIEW AND FUTURE DEVELOPMENTS

2009-10 was another successful year for SnackTime plc. The acquisition of MBM Systems Ltd ("SITB") in September 2009 enabled SnackTime to grow Group sales* from £6.7m, (2009) to £11.5m, an increase of 73%. IFRS reported revenue grew from £6.7m to £7.7m an increase of 13.4%. As a result of the acquisition the number of SEQs** grew by 15,200 to approximately 23,000 by the close of the year. On a Group sales basis, SnackTime is now the fourth largest vending operator in the UK.

In addition, Group earnings improved from £131,000 to £1,428,000 an increase of 990%, whilst operating profit improved from £399,000 to £1,583,000. Earnings per share rose from 1.82 pence in 2008-9 to 17.12 pence in 2009-10.

Prior to its acquisition, SITB was SnackTime's only significant competitor in the snack and confectionary vending sector and its acquisition in September 2009 marked a major development and opportunity for the Group. SnackTime made a profit on the purchase of MBM Systems Limited of £1.8m (gain on bargain acquisition) which is included in the reported profits. However, the Group has incurred significant integration, rebranding, restructuring, depreciation and redundancy costs as a result of the takeover. The merger of the two businesses has enabled the Group to make several strategic improvements to its operating model as detailed below:

·; Geographically remote and non core Free on Loan machines have been sold to SITB franchisees. These include peripheral and remote customers from a geographic perspective and sites which are not strategically significant for the Group as a whole. The Operated part of the business is increasingly focusing only on contract customers whilst SITB is primarily focusing on Free on Loan machines.

·; As at 1 September 2009, all of the Group's estate comprised Free on Loan machines. By the end of the financial year (31 March 2010), 77% of the estate had been brought under guaranteed income contracts (either to customers or to franchisees). As at 1 July 2010 this contracted figure had increased to 84% of the estate. The business is determined to convert 99% of its operated estate to guaranteed income contracts in the very near future.

·; Selling prices of products were increased across the estate by 10p per item (circa 20%) between October and December 2009.

·; A new Sales and Marketing team was established in the second half of the year to focus on the conversion of existing free on loan customers to guaranteed income and also to sell contract Free on Loan business.

·; SnackTime's policy is to no longer to offer new customers a Free on Loan machine in the 'old fashioned sense'; new customers can obtain a genuinely "no cost" machine from SnackTime provided they agree to a minimum usage criteria with a minimum term contract (typically 48 months). Existing customers can either convert to minimum usage contracts or alternatively risk losing their vending facilities.

·; The operated part of the business has streamlined considerably with the reduction of nearly 50% in infrastructure costs.

·; A premium quality hot drinks range has been added thereby enabling SnackTime to offer a full range of vending services which is particularly important to larger organisations.

SnackTime focused nearly all of its management time in the last financial year on its first acquisition and also upon converting Free on Loan customers to guaranteed income contracts. As a consequence there was little organic estate growth in the business in 2009-10. The management intend to continue with acquisitions this year and to accelerate Free on Loan to Contract conversions.

As detailed above, the second half of 2009 saw the creation of a new contract sales team which now consists of a main board sales director, 10 salesmen and customer services/admin support staff along with telemarketing assistance. In addition the Group strengthened its Head office infrastructure in order to pursue further acquisition targets, a Marketing department, an HR department and a credit control department were also established as well as an acquisition team. These additional staff will add circa £1m to the central cost base in a full year but the additional investment is necessary for the business to ensure substantial contract sales growth and in order to pursue and integrate further acquisitions.

SnackTime is in active discussions with a number of potential acquisition targets and is confident that it will be able to complete a significant acquisition in the forthcoming financial year. The sale of peripheral and non core Free on Loan machines to franchisees continues apace and this activity is coupled with the progressive conversion of customers from 'Free on Loan' to guaranteed income contracts. Consequently, it is anticipated that the operated estate will be fully on a contract-only format by the close of the 2010-11 year.

The Board would like to take this opportunity to thank SnackTime's customers, staff and shareholders for their continued support.

Michael Jackson

Chairman

28 July 2010

*Group sales = IFRS revenues + product sales through Franchisees (Product sales through Franchisees are not recognised under IFRS). SnackTime believes that the Group sales measure is the only reliable guide to overall Group customer sales and is the only reliable like for like revenue indicator.

** SEQ's are slimline equivalents and is a good guide to the total machine /box vending estate in customer sites

SNACKTIME PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

year ended 31 March 2010

SNACKTIME PLC

Consolidated STATEMENT OF Changes in equity

 year ended 31 March 2010

SNACKTIME PLC

consolidated STATEMENT OF FINANCIAL POSITION

31 March 2010

SNACKTIME PLC

CONSOLIDATED statement OF cash flowS

Year ended 31 March 2010

SNACKTIME PLC

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2010

1. Basis of preparation

The financial information set out in this announcement does not constitute statutory accounts as defined in the Companies Act 2006.

The financial information for the year ended 31 March 2009 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 2010 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

3. Taxation

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% (2009: 28%). The differences are explained below:-

4. EARNINGS per share

Earnings per share is calculated on the basis of profit for the year after tax, divided by the weighted average number of shares in issue for the year ended 31 March 2010 of 8,340,059 (2009 - 7,201,213).

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all potential dilutive ordinary shares (8,907,777 shares). Potential dilutive ordinary shares arise from share options and convertible loans. For these, a calculation is performed to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the Company's shares) based on the monetary value of the exercise price attached to outstanding share options. Thus the dilutive weighted average number of shares considers the number of shares that would have been issued assuming the exercise of the share options. If these are proved to be anti-dilutive (increase the potential earnings per share) they are omitted from the calculation.

* The incremental shares from assumed conversion are not included in the previous years calculation of diluted earnings per share as their inclusion would increase earnings per share and the effect would be anti-dilutive.

5. Property Plant and equipment

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:

6. INTANGIBLE ASSETS

7. Trade and other receivables

The recoverability of receivables is not considered to be an issue to the Group as the main receivables are restricted to three large blue chip companies with whom there is a long standing relationship. Ongoing management services fees to the franchisees are secured over franchisees' properties in the event of non payment.

Some of the trade receivables are past due but not impaired as at 31 March 2010. The ageing analysis of these trade receivables is as follows:

8. BoRrowings

Terms and conditions of outstanding loans were as follows:

The fair value in each case equates to the carrying book value with the exception of the convertible loan note. All loans are denominated in sterling.

All loans and overdrafts are secured by a fixed and floating charge over the assets of the Group.

* Convertible loan stock of £600,000 was issued on 16 December 2008. Fundraising costs of £45,620 were offset against the loan stock. Of this £65,810 was treated as equity with the remainder of £488,570 being included in long term borrowings. The convertible loan stock bears interest at a rate of 8% per annum. The loan stock is convertible to Ordinary shares at £1.10 per share. The conversion date is the earlier of 5 years or at the loan note holder's request from the 3rd anniversary of the date of issue. The present value of the debt element has been calculated using an effective interest rate of 12%.

Obligation under finance leases

Hire purchase and finance lease liabilities are secured upon the underlying assets.

It is the Group's policy to lease certain parts of its property, plant and equipment under finance leases. For the year ended 31 March 2010 the average effective borrowing rate was 8.3%. Interest rates are fixed at the contract dates. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. All lease obligations are denominated in sterling.

The Group entered into the following finance lease and hire purchase agreements in the year:

Motor vehicles (Vans) £nil (2009 - £141,481) Machines £nil (2009 - £1,048,760)

The fair value of the Group's lease obligations approximates to their carrying amount.

The analysis below shows the gross cash flows for the bank loan and loan notes, which may differ to the carrying values of the liabilities at the balance sheet date.

9. TRADE AND OTHER PAYABLES

Trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The Directors consider that the carrying amount of trade payables approximates to their fair value.

10. ACQUISITION

The following table sets out the book values of the identifiable assets and liabilities acquired during the year and their fair value:

The Company acquired 100% of the ordinary share capital of MBM Business Systems Limited ("MBM") for a cash consideration of £1,500,000 on 15 September 2009. The purchase price includes deferred consideration of £300,000 payable on 31 August 2010. Costs incurred for this transaction total £338,773.

Compliance with IFRS 3 resulted in a related deferred tax liability of £1,417,049. No other assets or liabilities were acquired. The gain on bargain acquisition of £1,805,067 has been reflected in the statement of comprehensive income in accordance with IFRS 3 'Business combinations' as a separate item. The revenue and profit of the combined entity for the period as though the acquisition date for all business combinations effected during the period had been the beginning of that period has not been disclosed in accordance with IFRS 3 paragraph 70 as it is impractical to do so and would be misleading due to the reconstruction which took place prior to the acquisition.

11. ANNUAL REPORT

The Annual Report will be sent to shareholders shortly. This announcement and the Annual Report will be available from the Company's website at www.snacktime.com. Additional copies of the Annual Report will be made available to the public, free of charge, from the Company's registered address at 2nd Floor, west Forest Gate, Wellington Road, Wokingham, Berkshire RG40 2AQ.