Interim Results
September 28 2006 - 10:18AM
UK Regulatory
RNS Number:6379J
Supercart PLC
28 September 2006
Supercart plc
("Supercart" or the "Company")
Interim results for the six months to 30 June 2006
Highlights
* Turnover of #742,000 (2005 - #541,000)
* Operating loss of #533,000 (2005 - loss of #492,000)
* Net cash balances of #189,000 at 30 June 2006
* Strong growth in core South African market
* Two North American national chain orders now received
* European final modifications and live testing for 225 trolley
Mike Wolfe, Chief Executive, commenting on the results said:
"We are very pleased with the continuing growth in the South African market. Our
ongoing focus is very much on the North American market where we are at last
seeing signs of real progress from some large retail groups. We look forward to
further progress over the next 12 months as we enhance our existing product
range for this important market.
It is also pleasing to report that final preparations have begun for the launch
of our two trolleys for the European market which will take place during 2007,
particularly after the set backs of the last couple of years."
Enquiries:
Supercart plc 01732 459898
Mike Wolfe, Chief Executive
Stephen Wright, Finance Director
Charles Stanley Securities 020 7149 6000
Russell Cook
Chairman's Statement
I am pleased to announce that progress is continuing to be made in the mature
market of South Africa, where Supercart continues to be the dominant player. At
the same time it is taking us much longer than planned to move forward in the
North American market, although we have recently been encouraged by retailer
commitment and some trial orders that bode well for our future in this critical
market. As indicated in our 2005 year end results issued in April, we are still
hopeful of generating sales in Europe from our modified 225 litre mould in the
first half of 2007.
Financial Results
Turnover of #742,000 (2005 - #541,000) was 37% higher than the comparative
period in 2005 due to our strong performance in South Africa. Operating loss
for the period increased by 8% to #533,000 (2005 - #492,000) as a result of a
full six months operating costs in North America in 2006 coupled with
disappointing sales in that market. We have managed, to a certain extent, to
obviate cost increases from our manufacturer resulting from raw material prices
increases, by focusing on our trolley component prices, including the sourcing
of some components from new suppliers in the Far East. The gross profit margin
of 17.7% represents an improvement over the margin of 16.3% which we reported in
the year to December 2005.
We continue to control overheads extremely carefully. Operating costs are within
budget for the period and increased by only 9% despite having a fully funded
operation in North America for the entire six months. Losses before tax were
#529,000 (2005: #466,000)
The Company continues to control carefully its operating cost base to optimise
its cash resources. The Company maintained a positive cash balance of #189,000
at 30 June which, together with the Group's unutilised bank facilities, the
Board deems sufficient for the Company's present needs. However, the Board is
continually reviewing financing options for the Group in order to take advantage
of opportunities in the South African market and elsewhere, for the benefit of
Supercart and its shareholders.
Operational Review
South Africa
In this mature market, Supercart continues to make excellent progress with sales
up over 25% compared to the same period last year both in terms of units sold
and revenue.
Supercart continues to be one of the world leaders in the recycling of old
trolleys. Our recycled trolley program in South Africa has been expanded and
retailer acceptance is strong with increased demand for this product over last
year.
Our new plastic hand basket was first shown in March 2006 and has since received
strong retailer acceptance. First shipments began last month and we are
encouraged by this new product line, which we expect to do well not only in
South Africa but in our other trading areas.
North America
Sales of our 'Classic' 160 litre into the larger national chain retailers have
been much slower than expected. Whilst we continue to find that there is clear
strong retailer interest for an all plastic trolley in this market, it has
proved more difficult than we had planned to turn that demand into orders.
However, we are pleased to announce that within the last month two national
retail chains have now given us their first orders for a programme of test
stores which, if successful, would provide a solid platform for further
expansion in 2007.
Europe
As stated previously, we have now moved our 225 litre moulds from South Africa
to a production facility in Spain. We are undertaking additional modifications
and live site testing which has delayed completion, and we are now hoping to
launch this product during the first half of 2007.
Samples have now been produced for our new 135 litre trolley for Europe, and we
will continue the stringent retailer acceptance process to which we have
committed ourselves. We are still planning also to launch this product in the
first half of 2007.
Our exclusive European distributors, Ateliers Reunis Caddie SA ("Caddie")
confirm ongoing retailer interest for plastic trolleys and have reiterated their
continuing commitment and support for Supercart.
Other
We announced earlier this year that we have redesigned the chassis for our
existing 180 litre trolley for launch into the Australian market. This design is
now nearing completion and mould construction should begin shortly. We are
aiming for sales from this new product during 2007.
Outlook
We have much work to do in North America but this continues to be the most
exciting opportunity for our products and for the Company. Whilst sales have
been much slower than planned, our North America team are dedicated to the task
and they have made real and measurable progress. We still believe that 2007 will
witness the turning point in that market.
Victor Segal
Chairman
28 September 2006
Summarised unaudited consolidated profit and 6 months 6 months 12 months
loss account ended ended ended
30 June 30 June 31 December
2006 2005 2005
Unaudited Unaudited Audited
Notes #'000 #'000 #'000
Turnover-acquisitions 2 742 541 2,415
Cost of Sales (611) (426) (2,021)
131 115 394
Administrative expenses (664) (607) (1,106)
Operating loss 2 (533) (492) (712)
Net interest receivable 4 30 46
Net interest payable (4) (9)
Loss on ordinary activities before and after (529) (466) (675)
taxation
Loss per share (pence)
Basic and Fully Diluted 3 (2.57) (2.27) (3.29)
All activities are continuing
Consolidated unaudited statement of total 6 months 6 months 12 months
Recognised gains and losses ended ended ended
30 June 30 June 31 December
2006 2005 2005
#'000 #'000 #'000
Loss on ordinary activities after taxation (529) (466) (675)
Currency translation differences on foreign (10) (27) (22)
currency net investments
Total recognised gains and losses for the period (539) (493) (697)
Summarised unaudited consolidated balance As at As at As at
sheet 30 June 31 December
2006 30 June 2005
2005
Unaudited Unaudited Audited
Notes #'000 #'000 #'000
Fixed assets
Intangible assets 4 4 11 8
Tangible assets 5 1,027 674 927
1,031 685 935
Current assets
Stocks 55 70 7
Debtors 6 371 230 1,127
Cash at bank and in hand 189 1,132 460
615 1,432 1,604
Creditors: amounts falling due within one year 7 (451) (377) (1,015)
Net current assets 164 1,055 589
Total assets less current liabilities 1,195 1,740 1,524
Creditors: amounts falling due after one year (265) (12) 0
Net assets 929 1,728 1,524
Capital and reserves
Called up share capital 82 82 82
Share premium account 2,952 2,952 2,952
Profit and loss account (2,105) (1,306) (1,510)
929 1,728 1,524
Summarised consolidated unaudited cash flow 6 months 6 months 12 months
statement ended ended ended
30 June 30 June 31 December
2006 2005 2005
Unaudited Unaudited Audited
Notes #'000 #'000 #'000
Net cash outflow from operating activities 8 (369) (557) (902)
Returns on investment and servicing of finance 14 26 37
Tax paid 0 0 (25)
Capital expenditure (269) (147) (382)
Acquisitions 0 0 0
Net cash outflow before financing (624) (678) (1,272)
Sale of mould 309 0 0
Hire purchase loans 0 (2) (15)
Net cash (outflow)/inflow (315) (680) (1,287)
Translation differences 17 3 (56)
Decrease in cash 9 (298) (677) (1,343)
Notes on the unaudited interim financial information
1 The interim results comprise consolidated financial information for
Supercart Plc and its subsidiary undertakings and are prepared in
accordance with the accounting policies set out in the company's accounts
for the year ended 31 December 2005. Such information does not constitute
statutory accounts within the meaning of Section 240 of the Companies Act
1985. The financial information for the year ended 31 December 2005 has
been extracted from the statutory accounts to that date which have been
reported on by the Company's auditors, Vantis, and delivered to the
Registrar of Companies. The report of the auditors was unqualified and did
not contain a statement under Section 237(2) or (3) of the Companies Act
1985.
2 Segmental information
The turnover of the group was wholly attributable to its principal
activity, which is the design, marketing, sale and distribution of plastic
supermarket trolleys,
3 Loss per share
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2006 2005 2005
Unaudited Unaudited Audited
Loss for the period attributable to (529) (466) (675)
shareholders (#'000)
Weighted average number of shares 20,500,000 20,500,000 20,500,000
in issue
The losses attributable to ordinary shareholders and weighted average
number of ordinary shares for the purpose of calculating the diluted
earnings per ordinary share are identical to those used for basic earnings
per ordinary share. This is because the exercise of share options would
have the effect of reducing the loss per ordinary share and is therefore
not dilutive under the terms of FRS 22.
4 Intangible fixed asset-goodwill
#'000
Cost
At 1st January 2006 23
Translation differences
At 30th June 2006 23
Amortisation
At 1st January 2006 15
Charge for period 4
Translation differences 0
At 30th June 2006 19
Net book value at 30th June 2006 4
Net book value at 31st December 2005 8
Goodwill arising on the acquisition of subsidiary undertakings is being
written off on a straight-line basis over three years, being its estimated
useful life.
5 Tangible fixed assets
Trolley Moulds Motor Plant, Total
Moulds including vehicles equipment,
those under furniture
construction and fittings
#'000 #'000 #'000 #'000 #'000
Cost
At 1st January 2006 91 798 11 49 949
Additions 11 98 (4) 2 107
Translation differences
At 30th June 2006 102 896 7 51 1056
Accumulated depreciation
At 1st January 2006 2 0 3 17 22
Charge for period 1 0 0 7 8
Translation differences 0 0 0 0 0
At 30th June 2006 3 0 3 24 30
Net book value at 30 June 2006 99 896 4 27 1027
Net book value at 31 December 2005 89 798 8 32 927
6 Debtors
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2006 2005 2005
Unaudited Unaudited Audited
#'000 #'000 #'000
Trade 356 185 1,092
Other debtors 6 39 29
Prepayments 9 6 6
371 230 1,127
7 Creditors: amounts falling due within one year
As at As at As at
30 June 31 December
2006 30 June 2005
2005
Unaudited Unaudited Audited
#'000 #'000 #'000
Trade creditors 268 243 873
Accruals 63 13 34
Other creditors 0 37 35
Bank overdraft 111 58 52
HP and finance lease 0 0 0
Social security and other taxes 9 26 21
Tax 0 0 0
451 377 1,015
8 Reconciliation of operating losses to operating cash flows
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2006 2005 2005
Unaudited Unaudited Audited
#'000 #'000 #'000
Operating loss (533) (492) (712)
Depreciation 8 17 36
Amortisation 4 4 8
Loss on disposal of fixed asset 0 0 11
(Increase)/Decrease in stocks (40) 70 129
(Increase)/Decrease in debtors 756 283 (537)
Increase/ (Decrease) in creditors (564) (439) 163
Outflow from operating activities (369) (557) (902)
9 Reconciliation of net cash flow to movement in net funds
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2006 2005 2005
Unaudited Unaudited Audited
#'000 #'000 #'000
Decrease in cash in the period (298) (677) (1,343)
Financing 2 2 16
Translation differences (34) 1 0
Movement in net funds in the period (330) (674) (1,327)
Net funds at 1st January 2006 408 1,736 1,736
Net funds at 30th June 2006 78 1,062 408
10 Copies of this report will be sent to shareholders shortly and will be
available from the Company's registered office, 3 The Mews, 16 Hollybush
Lane, Sevenoaks, Kent TN13 3JT
This information is provided by RNS
The company news service from the London Stock Exchange
END
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