RNS Number : 6150E
Supercart PLC
30 September 2008
30 September 2008
Supercart plc
("Supercart" or the "Company")
Interim results for the period ended 30 June 2008
Highlights
� Turnover of �1,032,000 (2007 - �822,000)
� Operating loss of �725,000 (2007 * loss of �578,000)
� Net cash balances of �469,000 at 30 June 2008
� Continued strong growth in established South African market
Mike Wolfe, Chief Executive, commenting on the results said:
"I continue to be encouraged with growth in our South African core market and I believe that we are well positioned with good product in
our main North American and European markets.
With the introduction, later this year, of our seventh trolley world-wide, which will be sold into the South African and European
markets, I believe that Supercart remains well positioned with a unique range of products that meet the growing world retailer demand for
recyclable and recycled commodities to satisfy their corporate social responsibility goals."
Enquiries:
Mike Wolfe, CEO Supercart plc 01732 459898
Russell Cook, Charles Stanley Securities (Nominated Adviser) 020 7149 6000
Chairman's Statement
Progress in the first half of the current year has been steady. Revenues have risen and despite higher oil prices, we have increased our
margins on product sales. Revenues are still driven by our operations in South Africa as the Company continues to strive to make a
significant breakthrough in the main target markets of North America and Europe, which hopefully is becoming ever closer.
Financial Results
Turnover of �1,032,000 (2007 - �822,000) was 26% higher than the comparative period in 2007 primarily due to our continuing strong
performance in South Africa. While gross margins rose from 16.7% to 22.6% the operating loss for the period increased to �725,000 (2007 -
�578,000). This was as a result, primarily, of increased marketing and selling costs in North America and Europe, incurred in readiness for
our new products. Losses before tax were �724,000 (2007: �593,000).
The Company continues to control carefully its operating cost base to optimise its cash resources. The Company maintained a positive
cash balance of �469,000 at 30 June 2008 (2007 - �552,000).
Operational Review
South Africa
We achieved a unit sale increase of nearly 20% compared to the same period in 2007, a very satisfactory result coming on the back of a
nearly 40% increase in the same 2007 period over 2006. The sales of the new 'Nexus' trolleys have now expanded to four retailers and early
signs are good for this product in this market.
Our 30 litre hand basket continues its high levels of acceptance across all of the retail groups and is selling at significantly
increased levels from 2007.
North America
As reported in my statement of 30th April 2008, the new 'Max200' trolley was delivered for testing to one of the largest grocery retailer
chains in North America. A recent independent customer survey carried out by this retailer has been encouraging. In addition, we are
following up with a number of other retailers who have expressed significant interest. Accordingly, we are cautiously optimistic about
opportunities available to us over the course of the rest of this year and beyond.
Europe
Our store test with our Nexus trolley and hand baskets, both made from recycled plastic, is proceeding with a major UK high street chain. We
are hoping that this, in time, will lead to more retailer demand in the UK.
Our store tests in France have been successful thus far, and we have recently received a further order from one of the retailers
concerned. We are also following up interest in the Nexus in both Spain and Germany.
Australia
Our retailer trials continue with our 185 litre Australian trolley and a nationwide sales drive has started this month.
Manufacturing costs
Although the price of raw material resins has increased by up to 25% in the last 12 months, world steel prices have increased even more
significantly by up to 100% over this period. With the high capital cost and introductory lead time for each of our trolleys, our cost base
has always been higher than our competitors' metal products. However, with the dramatic rise in the cost of steel, our products are
beginning to become increasingly competitive.
Product development
We have completed successfully the off tool trials of our latest trolley, the 'Excel 200' which will serve the South African and
European markets. In Europe it will meet the demand of the retailers who want a trolley size between our current 145 litre Nexus and the 225
litre Hyper. With final mould commercialisation work happening in South Africa through to the end of October, we anticipate that sales of
the Excel 200 will commence in South Africa at the end of 2008 and in Europe in early 2009.
Outlook
The final quarter is traditionally the strongest part of our year. With our extended product range, and our new and ongoing sales
initiatives, we are expecting progress in our markets during the second half of 2008.
Victor Segal
Chairman
Condensed consolidated income 6 months 6 months 12 months ended
statement for the period ended ended 31 December 2007
30 June 30 June
2008 2007
Unaudited Unaudited Audited
�'000 �'000 �'000
Continuing Operations Notes
Revenue 1,032 822 3,342
Cost of Sales (799) (685) (2,699)
Gross Profit 233 137 643
Administrative expenses (958) (715) (1,533)
Operating loss (725) (578) (890)
Investment revenue 17 16 31
Finance Costs (16) (31) (53)
Loss before taxation (724) (593) (912)
Tax 0 0 (17)
Loss for the period (724) (593) (929)
attributable to equity holders
of the parent
Loss per share (pence)
Basic and fully diluted 3 (1.67) (1.67) (2.59)
Condensed consolidated balance As at As at As at
sheet 30 June 30 June 31
2008 2007 December
2007
Unaudited Unaudited Audited
�'000 �'000 �'000
Notes
Assets
Non-current assets
Intangible assets - - 4
Property, plant and equipment 4 2,227 1,187 1,821
Deferred tax asset 6
2,227 1,187 1,831
Current assets
Inventories 120 65 85
Trade and other receivables 5 449 335 1,185
Cash and cash equivalents 469 552 1,748
1,038 952 3,018
Total Assets 3,265 2,139 4,849
Equity and Liabilities
Capital and reserves
Issued share capital 174 142 174
Share premium account 5,585 4,057 5,585
Share option reserve 152 75 122
Foreign currency translation (254) 0 (148)
reserve
Retained earnings (4,241) (3,053) (3,517)
Total Equity 1,416 1,221 2,216
Non-current liabilities 974 284 837
Current liabilities 6 874 634 1,796
Total liabilities 1,848 918 2,633
Total equity and liabilities 3,265 2,139 4,849
Condensed Statement of changes in equity
Issued share capital Share premium Share option reserve Foreign Currency Retained
earnings Total equity
Account Translation Reserve
�'000 �'000 �'000 �'000
�'000 �'000
At 1 January 2007 142 4,057 75 (146)
(2,314) 1,814
Loss for six months to 30 June - - -
(593) (593)
2007
Share issue costs
Provision for share options
valuation
Exchange differences arising - - -
- -
on translation of foreign
operations.
Balance at 30 June 2007 142 4,057 75 (146)
(2,907) 1,221
Loss for six months to 31 - - - -
(336) (289)
December 2007
Issue of 8 million shares 32 1,568 - -
- 1,560
Share issue costs (40) - -
Provision for share options 47 -
valuation
Exchange differences arising - - - (2)
- (2)
on translation of foreign
operations.
Balance at 31 December 2007 174 5,585 122 (148)
(3,517) 2,216
Loss for six months to 30 June - - 30 (106)
(724) (800)
2008
Share issue costs
Provision for share options
valuation
Exchange differences arising - - - -
- -
on translation of foreign
operations.
Balance at 30 June 2008 174 5,585 152 (254)
(4,241) 1,416
Condensed consolidated cash 6 months 6 months 12 months ended
flow statement for the period ended ended 31 December 2007
30 June 30 June
2008 2007
Unaudited Unaudited Audited
�'000 �'000 �'000
Cashflow from operating
activities
Loss for period (724) (593) (929)
Income tax expense - - 17
Depreciation 38 8 37
Amortisation - 7 -
Loss on disposal of fixed - - (4)
asset
Share based payment charges - 23 47
Interest income (17) (16) (31)
Interest expense 16 31 53
Reversal of impairment - - (1)
Net foreign exchange gain - - (2)
(687) (540) (813)
Movements in working capital
(Increase)/decrease in (37) (54) (74)
inventories
(Increase)/Decrease in trade 566 640 (197)
and other receivables
Increase/ (Decrease) in (506) (421) 605
payables
Cash used by operations (664) (375) (479)
Finance cost (16) (31) (53)
Tax received - - 62
Net cash from operating (680) (406) (470))
activities
Cashflows from investing
activities
Purchase of property, plant (585) (124) (393)
and equipment
Interest received 17 16 31
Net cash used in investing (569) (109) (362)
activities
Cashflows from financing
activities
Proceeds from issue of share - - 1,560
capital
Repayment of finance lease and (81) (78) (131)
instalment sale borrowings
Net cash (used in)/from (81) (78) 1,429
financing activities
Net (decrease)/increase in (1330) (593) 597
cash and cash equivalents
Effects of exchange rate 51 (2) 4
changes
Cash and cash equivalents at 1,748 1,147 1,147
the beginning of the period
Cash and cash equivalents at 469 552 1,748
the end of the
period
Notes on the unaudited interim financial information
1. Basis of Preparation
The unaudited condensed financial statements have been prepared using accounting policies consistent with International Financial
Reporting Standards. The unaudited condensed financial statements are presented in Sterling and have been prepared under the historical cost
basis."
The same accounting policies, presentation and methods of computation are followed in these unaudited condensed financial statements as
were applied in the preparation of the Group's financial statements for the year ended 31 December 2007.
2. Cyclicality of Operations
Operations in the six months to 30 June 2008 are following usual seasonal trends
3. Loss per share
6 months ended 6 months 12 months
30 June 2008 ended ended
30 June 2007 31 December 2007
Unaudited Unaudited Audited
Loss for the period (724) (593) (929)
attributable to
shareholders (�'000)
Weighted average 43,500,000 35,500,000 35,806,849
number of shares
in issue
The losses attributable to ordinary shareholders and weighted average number of ordinary shares for the purpose of calculating the
diluted loss per ordinary share are identical to those used for basic loss 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 IAS 33.
4. Property, plant and equipment
Trolley Moulds Moulds including Motor vehicles Plant, equipment, Total
those under furniture and
construction fittings
�'000 �'000 �'000 �'000 �'000
Cost
At 1 January 2008 1,229 552 60 61 1,902
Additions - 397 29 21 447
Translation (1) - - (2) (3)
differences
At 30 June 2008 1,228 949 89 80 2,346
Accumulated
depreciation
At 1 January 2008 39 - 5 37 81
Charge for period 18 - 4 22 44
Translation (4) - - (2) (6)
differences
At 30 June 2008 53 - 9 57 119
Net book value at 30 1,174 949 80 23 2,227
June 2008
Net book value at 31 1,190 552 55 24 1,821
December 2007
5. Trade and other receivables
As at As at As at
30 June 30 June 31
2008 2007 December
2007
Unaudited Unaudited Audited
�'000 �'000 �'000
Trade receivables 341 299 1,061
Other receivables 80 20 104
Prepayments and accrued income 28 16 20
449 335 1,185
6. Trade and other payables
As at As at As at
30 June 30 June 31
2008 2007 December
2007
Unaudited Unaudited Audited
�'000 �'000 �'000
Trade payables 426 283 1,172
Accruals and deferred income 170 50 116
Other payables 166 121 241
HP and finance lease - 57 -
Standard Bank - 115 -
Employee benefits 95 - 75
Taxation and social security 17 8 17
874 634 1,621
7. 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 and available to download from the Company's website
www.supercart.com.
.
This information is provided by RNS
The company news service from the London Stock Exchange
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