RNS Number:7870C
Timestrip PLC
11 May 2006
TIMESTRIP PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2005
Timestrip Plc ("Timestrip") develops, manufactures and sells patented Timestrip
(R) smart labels which monitor for how long perishable food and other
replaceable products have been open or in use.
Key points:
*Results in line with expectations
*Significant progress achieved towards commercialising Timestrip's
technology
*Deals and alliances have been announced during the period under review
with;
*Nestle
*Bayer
*Hamilton Beach/Proctor Silex
*Labellord
*Bioconservacion
*Further discussions and trials underway with major international
companies.
*Steady progress across core targeted international markets
*Directors confident of further progress in the year ahead
Paul Freedman, Timestrip's joint CEO commented:-
"Timestrip has made steady progress during the period under review and I am
confident of further success in the year ahead as we accelerate our target
markets' awareness and the benefits of the Timestrip technology. Recent wins,
such as Nestle, will continue to underpin our marketing strategy and I look
forward to updating shareholders with further progress shortly".
For further information:
Paul Freedman, Joint CEO and founding Director, Timestrip 01462 440 700
Shane Dolan, Biddicks 020 7448 1000
Fergus Marcroft, Evolution Securities 020 7071 4300
CHAIRMAN'S STATEMENT
The last year has been one of great transition for your Company as it emerged
from a Creditors' Voluntary Arrangement to acquire Timestrip UK Limited and
raising #4.5 million through two share placings to fund the commercialisation of
its unique smart label technology, the Timestrip(R).
The Timestrip(R), which enables the measurement of lapsed time, has been
developed for use, initially, for the food, pharmaceutical and other consumable
goods industries. We have made significant advances with the technology and also
begun to get real traction with potential users, as is evidenced by the deals
and alliances that have been formed with, amongst others, Nestle, Bayer,
Hamilton Beach/Proctor Silex, and Labellord. We are also in a number of other
discussions and trials with major international companies.
Financial Results
In financial terms, we remain at a very early stage of our development. Turnover
for the year ended 31 December 2005 amounted to #103,303 (2004 - #0), resulting
in a loss before tax of #1,259,035 (2004 - #33,942). Our financial resources
remain in robust health. Cash at the end of the year stood at #2,979,268 while
the exercise of placing warrants in April 2006 has increased net cash by a
further #867,384.
Staff
I would like to convey the Board's sincere appreciation for the huge efforts
being made by everyone involved in our exciting business - not only our
dedicated and professional team in the UK and Israel who are so committed to our
goal of becoming a household name across the globe, but also to our advisors who
have guided the Company through a time of great transition.
Current Trading and Prospects
In the current year we have continued to promote the Timestrip(R) technology and
are pleased to report that we now have a number of opportunities, which your
Board is confident will lead to commercial relationships during the course of
2006 and beyond. As is described in the Operating Review below, Timestrip(R)
labels have become an integral part of manufacturers packaging in both the food
and non-food consumable industries and your Board is confident that, as
consumers and markets become ever more aware of freshness and product age and
with the increasing influence of legislation, Timestrip will continue to gain
traction within its chosen markets.
Stephen Oakes
Chairman
11 May 2006
JOINT CHIEF EXECUTIVES' STATEMENT
Operating Review
The Timestrip(R) label has applications for a number of industrial sectors and
we are making good progress in our chosen operating markets:
Catering and Food Services
The main highlight in this sector is the successful launch of the Labellord(R)
-Timestrip(R) in foodservice markets in Benelux and Germany. Since their
appointment, NSD/Labellord have marketed Timestrip(R) as a food safety solution
relevant to the recently introduced EU Food Hygiene Legislation. The food
celebrity, Rob Geus, regularly promotes Timestrip(R) on television and in print,
and a concerted advertising campaign, funded by Labellord, is quickly paying
dividends. Timestrips are now part of the Bunzl product range in this region and
we are delighted that Labellord have recently secured a deal with Metro, a
leading wholesaler in Germany with over 100 outlets, who will stock a range of
Labellord food safety products that will include five unique product lines of
the Timestrip(R). We have already received orders from Labellord in 2006 that
exceed total turnover for the Group in 2005 and we expect this trend to continue
as the year progresses with increasing numbers of wholesalers selling the
product in Europe. Our search continues for similar distribution agreements in
Southern Europe but we are experiencing slower than expected progress in North
America, where different marketing challenges are being actively addressed.
Food
We are delighted that Nestle have decided to adopt the Timestrip(R) technology
as a standard packaging feature on the Maggi(R) range of sauces in the UK
Foodservice business. This is an important confirmation that our technology is a
cost-efficient packaging solution that is delivering benefits to brand owners
and end-users alike. We look forward to building on this success both within the
Nestle organisation and within the industry in general.
Retail Packs: Ocado have been re-ordering retail packs of Timestrips(R) product
for sale online and have confirmed that they will expand the range to include
freezer and room temperature Timestrips(R) later this year. Our success with
Ocado, while modest in terms of revenue for the Company, is opening doors to
other retail opportunities. We have recently received an order from John Lewis
Partnership in the UK and have been approached by a number of leading
international brands wishing to explore co-branded retail launches in North
America and in Europe.
Recent consumer surveys and trends towards fresher and healthier food give us
much cause for optimism in this sector.
Non-food Consumables
Filters: since our announcement in November 2005, Hamilton Beach have not only
launched the TrueAir(R) device featuring an integrated Timestrip(R), but also
recently announced the launch of another device that is a co-brand venture with
Febreze(R), an internationally recognised household brand from Procter & Gamble.
(http://www.trueair.com/press_room/febreze.html). Shipments have also commenced
to Bioconservacion S.A., who have launched their filter device in the Fagor(R)
brand of fridges in Europe.
Development projects: work has escalated on our project to integrate our
technology into a household product with near-universal usage and we will report
on progress with consumer trials in due course. The Company also recently won a
significant development contract with a leading international consumer brand to
integrate a version of our technology into a new mass-market product planned for
launch in 2007.
Pharmaceuticals
All previously announced projects continue and we are pleased to report that a
leading pharmaceutical company has tested and recently approved their Timestrip
(R) samples as "fit for purpose". This is an important step towards achieving
our objective of high profile long-term supply contracts with mass-market
international brands.
Medical Devices, Cosmetics, Personal Care
Our previously announced development project continues on ways to integrate our
technology into a range of devices used in hospitals, although progress in this
sector is predictably quite slow. We have identified opportunities for the
Timestrip(R) technology within the National Health Service and we will report on
the progress of discussions in due course.
Since the announcement of our ability to produce a one year Timestrip(R) we have
received a high level of interest from cosmetic/personal care product companies
who are looking at the opportunity presented by Timestrip(R) in relation to
recently introduced EU labelling regulations.
Paul Freedman Reuben Isbitsky
Joint Chief Executive Officer Joint Chief Executive Officer
11 May 2006 11 May 2006
TIMESTRIP PLC
PRELIMINARY STATEMENT
UNAUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2005
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Unaudited Audited
12 months 12 months
ended ended
31 December 31 December
2005 2004
GBP GBP
'000s '000s
Turnover 103 -
Cost of sales (66) -
----------- -----------
Gross Profit 37 -
-
Administration costs (1,346) (34)
Amounts written off investments - -
Interest payable (5) -
Other operating income 55 -
----------- -----------
Loss on Ordinary Activities before Taxation (1,259) (34)
Taxation 94 -
----------- -----------
Loss on Ordinary Activities After Taxation (1,165) (34)
Dividend - -
----------- -----------
Retained loss (1,165) (34)
----------- -----------
Basic and diluted earnings per ordinary share (0.49)p (0.12)p
TIMESTRIP PLC
PRELIMINARY STATEMENT
UNAUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2005
CONSOLIDATED BALANCE SHEET
Unaudited Audited Unaudited Audited
Group Company
2005 2004 2005 2004
GBP GBP GBP GBP
'000s '000s '000s '000s
Fixed assets
Investments - - 6,527 -
Intangible assets 6,339 - - -
Tangible assets 304 - - -
-------- ------- -------- --- -------
6,643 - 6,527 -
-------- ------- -------- --- -------
Current assets
Stock 66 - - -
Debtors 195 3 2,654 3
Cash 2,979 - 1,588 -
-------- ------- -------- --- -------
3,240 3 4,242 3
Creditors: amounts
falling due within one
year (222) (15) (70) (15)
-------- ------- -------- --- -------
Net current
assets/(liabilities) 3,018 (12) 4,172 (12)
Creditors: amounts
falling due over one year (67) - - -
-------- ------- -------- --- -------
Net assets/(liabilities) 9,594 (12) 10,699 (12)
-------- ------- -------- --- -------
Capital and reserves
Called-up share capital 3,603 3,551 3,603 3,551
Share premium account 26,588 15,869 26,588 15,869
Reserves (20,597) (19,432) (19,492) (19,432)
-------- ------- -------- --- -------
9,594 (12) 10,699 (12)
-------- ------- -------- --- -------
Shareholders' Funds
Equity 6,050 (3,556) 7,155 (3,556)
Non-equity 3,544 3,544 3,544 3,544
-------- ------- -------- --- -------
9,594 (12) 10,699 (12)
-------- ------- -------- --- -------
TIMESTRIP PLC
PRELIMINARY STATEMENT
UNAUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2005
CONSOLIDATED CASH FLOW STATEMENT
Unaudited Audited
12 months ended 12 months ended
31 December 31 December
2005 2004
GBP GBP
'000s '000s
Net cash outflow from operating activities (1,294) (2,222)
Returns on investment and servicing of finance
Interest received 55 -
Interest paid (5) -
------------ ------------
Net cash outflow from returns on
investments and servicing of finance (1,244) (2,222)
Taxation
Tax recovered 80 -
Capital expenditure and financial investment
Payments to acquire fixed assets &
intangible assets (137) -
------------ ------------
Net cash outflow for capital expenditure
and financial investment (1,301) -
Acquisitions and disposals
Net cash acquired from subsidiary
undertakings 43 -
------------ ------------
Net cash outflow before financing (1,258) -
Financing
Issue and purchase of ordinary shares 4,522 2,222
Share issue expenses (273) -
Repayment to long term bank loan (12) -
------------ ------------
Net cash inflow from financing 4,237 2,222
------------ ------------
------------ ------------
Increase in cash in the period 2,979 -
------------ ------------
TIMESTRIP PLC
PRELIMINARY STATEMENT
UNAUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2005
NOTES TO CONSOLIDATED CASH FLOW STATEMENT
Unaudited Audited
12 months ended 12 months ended
31 December 31 December
2005 2004
GBP GBP
'000 '000
Net cash outflow from operating activities
Operating loss (1,309) (34)
Depreciation and amortisation 317 -
Increase in stocks (8) -
(Increase)/decrease in debtors (48) 7
Decrease in creditors (246) (2,195)
------------ ------------
(1,294) (2,222)
------------ ------------
Reconciliation of net cash flow to movement in
net funds
Increase in cash 2,979 -
Loans acquired with subsidiary (81)
------------ ------------
Movement in net funds 2,898 -
------------ ------------
Opening funds - -
Closing funds 2,898 -
------------ ------------
TIMESTRIP PLC
PRELIMINARY STATEMENT
UNAUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2005
Notes
1. Basis of consolidation
The consolidated profit and loss account and balance sheet include the financial
statements of the company and its subsidiary undertakings made up to 31 December
2005. The results of Timestrip UK Limited have been included from the date of
acquisition on 25 February 2005.
2. Goodwill, patents and trademarks
Goodwill is the difference between the amount paid on the acquisition of
Timestrip UK Limited and the aggregate fair value of its separable net assets.
Goodwill, patents and trademarks are capitalised and classified as an intangible
asset on the balance sheet. The directors have concluded that goodwill arising
on the acquisition of Timestrip UK Limited should be amortised over its useful
economic life of 20 years. Patents and trademarks are also amortised over their
useful economic life which is estimated to be 20 years.
3. Share capital
On 25 February 2005, the company acquired the entire issued share capital of
Timestrip UK Limited for a consideration of #6.4 million. The purchase price was
satisfied by the issue of 160,000,000 new Ordinary Shares of 0.02p each at 4p
per share to the vendors on the sale of their Timestrip UK Limited shares.
Furthermore on 25 February 2005, 50,581,250 new Ordinary Shares of 0.02p were
issued pursuant to a placing to raise a total of #2,023,250 before expenses.
On 12 October 2005, 40,000,000 new Ordinary Shares of 0.02p were issued to raise
a total of #2,400,000 before expenses.
On 19 October 2005, 624,999 new Ordinary Shares of 0.02p were issued to raise a
total of #37,500 before expenses.
On 23 November 2005, 166,666 new Ordinary Shares of 0.02p were issued to raise a
total #10,000 before expenses.
On 6 December 2005, 5,000,000 new Ordinary Shares of 0.02p were issued at par.
On 6 December 2005, 6,250,000 new Ordinary Shares of 0.02p were issued in favour
of #50,000 convertible loan stock.
4. Dividends
No dividend is proposed for the period ended 31 December 2005.
5. Taxation
No taxation is expected to arise on the results for the period.
6. Loss per Share
The loss per share for the year ended 31 December 2005 has been calculated on
the basis of the loss after taxation for the period of (#1,165,036) (2004: #
(33,942)) and the weighted average number of shares in issue during the period
of 237,871,611 (2004: 28,484,103).
7. Information on Timestrip
Timestrip has developed a patented smart label, the Timestrip(R), which enables
users of perishable food and other products to monitor for how long an item has
been open or in use. The Timestrip(R) is a disposable multi-layer laminated
label which contains a timing device consisting of a specialised porous material
and a non-toxic liquid. Upon squeezing the label to activate, the liquid starts
to move through the porous material by micro-capillary action. A printed
calibration on the top layer of the label allows the user to tell at any point
in time how long the label has been active. The label is currently manufactured
with adhesive backing enabling it to be attached to perishable goods as a
reminder to use or replace the product. The label is designed to be easily
customised and is capable of being embedded into the product packaging or the
product itself. It can be activated automatically either upon first opening the
package or upon first use of the product.
The solution provided by Timestrip relates to the difficulty in monitoring
relative expiry dates, such as "Use within two weeks of opening". The Timestrip
(R) addresses this problem by reliably monitoring the lapse of time, providing a
visual indication that the relative expiry date is approaching, thereby giving
the user the opportunity to manage perishable items in a way that was previously
problematic.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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