RNS Number:0738J
Timestrip PLC
18 September 2006
Timestrip Plc
INTERIM RESULTS FOR THE 6 MONTHS ENDED 30TH JUNE 2006
Timestrip Plc is pleased to announce its unaudited interim results for the 6
months to 30 June 2006.
Timestrip Plc develops, manufactures and sells patented Timestrip smart labels
which monitor for how long perishable food and other replaceable products have
been open or in use.
Key Points
*Sales exceed #200,000 (2005 - #50,000)
*Significant progress in Food Service markets in Europe
*New orders from North America in diverse market sectors
*Significant progress in Joint Development project with Henkel, a Fortune
500 Global Company
*New Joint Development projects with leading packaging supplier in North
America and a European cosmetics manufacturer
*Imminent test launch with leading pharmaceutical product in Europe
*Launch of iStripTM - a new label technology targeting pharmaceutical and
food industries (see today's announcement)
Paul Freedman, Timestrip's joint CEO commented:-
"We are making significant progress in bringing our patented label technology to
a diverse range of mass markets. We have now established a core product range
that is being sold into multiple markets in Europe and North America with very
promising early signs of success. We continue to encourage customer funded Joint
Development Projects, some of which have already resulted in supply contracts,
and others which have the potential to generate significant revenues in the
medium term.
Production capacity remains a key focus for the Company as we strive to improve
lead times for the assembly and implementation of new machines that are required
to meet the evident demand for the technology. We remain confident in our
ability to evolve a revenue model that combines sales from in-house
manufacturing with royalty revenues and raw material sales derived from
manufacturing licenses."
For further information:
Paul Freedman, Joint CEO, Timestrip 01462-440700
Shane Dolan, Biddicks 020 7448 1000
Fergus Marcroft, Evolution Securities 020 7071 4300
Chairman's Statement
I am pleased to report that we have made significant advances since our last
update, as is evidenced by new supply contracts, new development agreements and
the launch of a new product to augment our original product, the Timestrip(R),
which enables the measurement of lapsed time.
Financial Results
We have seen a four-fold increase in turnover for the six months to 30 June 2006
of #215,932 (2005 - #50,283). At the pre-tax level the Company recorded a loss
of #538,529 (2005 - #408,786 as restated) including a charge relating to FRS20
(accounting for share based payments) amounting to #36,894 (2005 - #30,140 as
restated). The resultant loss per share is 0.16p (2005 - 0.21p). The liquidity
position remains healthy with cash resources of #3.4m as at the end of June.
Operations
As is reported in the Joint Chief Executives' statement below, we have made some
significant advances in getting recognition and adoption of our products by a
number of different organisations.
We are continuing to invest in manufacturing, engineering and R&D to enable us
to meet both the present and future demands on the business, which are growing
in response to the increasing awareness of our technology. I am pleased to
announce the appointment of Jonathan Steinberg as Finance Director to our
trading subsidiary Timestrip UK Limited. Jonathan is a Chartered Accountant who
has previously worked for Reuters and BT.
Additionally, our employees remain highly motivated and well incentivised to
drive forward the Timestrip business and the Board wishes to thank them for
their continued hard work and commitment.
Current Trading and Prospects
Timestrips are now being sold into five of our six stated mass-markets and there
has been a noticeable increase in the number of customer funded development
projects each of which is capable of generating substantial revenue if brought
to fruition. The Joint Chief Executives' report below provides more detail but
developments in European food services and US retail are particularly
encouraging. We have also announced today the launch of a new technology, the
iStrip, a unique smart label that is capable of recording whether temperature
sensitive products have been accidentally frozen in transit. In particular this
technology has significant potential for the monitoring of vaccines, where
freezing can compromise their immunological potency.
Timestrip is quite unique in its ability to deliver meaningful benefits to the
consumer (who is increasingly interested in product freshness) at the same time
as increasing sales to the manufacturer, either through better customer
compliance or through the competitive edge that this packaging solution
provides. We are looking forward with increasing optimism to the future, as we
move towards our goal of establishing Timestrip as a household name and a new
standard in product labelling.
Stephen Oakes
Chairman
18th September 2006
Joint Chief Executives' Statement
Operating Review
We are pleased to report significant progress in the six international mass
markets in which relative expiry dates are predominantly found:
Catering and Food Services
A wide range of Timestrip products will shortly be on sale in Germany at the
leading retailer Metro, as part of a food safety range marketed by Labellord.
The food industry has been one of our initial target markets and we fully expect
this market to be an important source of ongoing revenue for the Company.
In North America extensive marketing efforts by our distributor Daymark are
increasing awareness. There has been a marked increase in the number of customer
trials and we remain optimistic that this will be converted into meaningful
revenue in due course.
Food Retailing
There has been a sharp increase in the level of media coverage for Timestrip in
North America, which has undoubtedly contributed to an increased volume of
internet orders from US consumers and to an acceleration in negotiations with a
major brand name interested in the retail distribution of Timestrips. We have
received an order from the leading home shopping channel in North America, QVC,
who will feature Timestrip on their nationwide show for the first time later
this year. It is our belief that US retail sales will begin to build in 2007,
which will greatly increase the profile of the technology as an integrated smart
label solution for consumer products and their packaging.
In the UK, Timestrip retail packs continue to be sold through Ocado and John
Lewis will start to list the product next month. Widespread expansion into UK
retail depends on our ongoing search for a suitable company to market and
distribute on our behalf.
We continue to enjoy an excellent relationship with Nestle Food Services UK.
Work has started on new product development and we are presenting Timestrip to
several other areas of the Nestle business across Europe.
Packaging and Promotions: a confidential Joint Development Agreement has been
negotiated with one of the leading packaging companies in North America, to
develop a comprehensive manufacturing process to integrate Timestrips onto food
packaging. Negotiations are in progress with a number of European and North
American brands who are evaluating Timestrip as a promotional tool for use in
conjunction with their branded products. Not only are the potential volumes in
this field significant, but this also represents an important first step towards
full integration as a standard label.
Non-food consumables
We have developed a customised smart label in collaboration with Henkel, a
Fortune Global 500 company with market leading brands and technologies in three
strategic business areas - Home Care, Personal Care and Adhesives, Sealants and
Surface Treatment. The project, funded by Henkel, commenced in February 2006 and
has successfully reached the technical milestone of delivering samples for
consumer testing. This not only demonstrates the relevance of our technology as
an integrated solution for the consumer market but also represents a significant
technical achievement. Updates will be provided on progress towards
commercialisation in due course.
In addition to the ongoing success with Hamilton Beach/Febreze and
Bioconservacion, supply contracts have been agreed with Hygolet (washroom
equipment), Dry & Store(R) (hearing devices) and Aquacure (water filtration).
Previously mentioned development projects with leading household brands continue
to make excellent progress.
Cosmetics
A joint development agreement has been signed with Strand Cosmetics a highly
regarded manufacturer of cosmetics for leading industry brands. Strand showcased
Timestrip at the recent Beyond Beauty Paris trade show where it was well
received and has generated some encouraging business leads.
Pharmaceuticals and Medical Devices
An order has been received from a leading pharmaceutical company wishing to test
launch two products that will include Timestrips aimed at encouraging customer
compliance with usage instructions. The test launch, in four countries, will
take place later this year.
We have also received a trial order for the use of Timestrips on blood bags in
South Africa, where there is currently little if any labeling to indicate
remaining shelf life.
Launch of iStripTM, (see full press release, 18th September 2006) a label device
that undergoes an irreversible colour change and indicates accidental freezing.
A patent application has been filed for this device which has been developed for
use on products such as vaccines, protein based pharmaceuticals, food stuffs and
fertilizers.
Paul Freedman Reuben Isbitsky
Joint Chief Executive Officer Joint Chief Executive Officer
18th September 2006 1 8th September 2006
TIMESTRIP PLC
INTERIM STATEMENT
RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2006
Profit and Loss Account
6 months ended 6 months ended 12 months ended
30 June 30 June 31 December
2006 2005 2005
Notes Unaudited Unaudited Audited
As restated As restated
# 000's # 000's # 000's
Turnover 216 50 103
Cost of sales (139) (26) (66)
--------- --------- ----------
Gross profit 77 24 37
Administration costs (679) (449) (1,412)
--------- --------- ----------
Operating loss (602) (425) (1,375)
Interest payable 0 0 (5)
Interest receivable 64 16 55
--------- --------- ----------
Loss on ordinary
activities before taxation (538) (409) (1,325)
Taxation 0 0 94
--------- --------- ----------
Loss on ordinary
activities after taxation 4 (538) (409) (1,231)
--------- --------- ----------
Retained loss (538) (409) (1,231)
========= ========= ==========
Basic and diluted earnings
per ordinary share 5 (0.16)p (0.21)p (0.52)p
TIMESTRIP PLC
INTERIM STATEMENT
RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2006
Statement of total recognised gains and losses
6 months ended 6 months ended 12 months ended
30 June 30 June 31 December
2006 2005 2005
Unaudited Unaudited Audited
As restated As restated
# 000's # 000's # 000's
Loss for the
financial year (538) (409) (1,231)
Prior year
adjustment (66) 0 0
---------- ---------- ----------
Total gains and
losses recognised
since last financial
statements (604) (409) (1,231)
========== ========== ==========
TIMESTRIP PLC
INTERIM STATEMENT
RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2006
Summary Balance Sheet
30 June 30 June 31 December
2006 2005 2005
Notes Unaudited Unaudited Audited
As restated As restated
# 000's # 000's # 000's
Fixed assets
Intangible assets 7, 8 6,415 6,490 6,339
Tangible assets 252 312 304
---------- ---------- ----------
6,667 6,802 6,643
---------- ---------- ----------
Current assets
Stock 72 74 66
Debtors 250 64 195
Cash 3,369 1,206 2,979
---------- ---------- ----------
3,691 1,344 3,240
Creditors: amounts falling due within
one year (259) (122) (222)
---------- ---------- ----------
Net current assets 3,432 1,222 3,018
Creditors: amounts falling due over
one year (67) (138) (67)
---------- ---------- ----------
Net Assets 10,032 7,886 9,594
========== ========== ==========
Capital and reserves
Called-up share capital 4,200 3,593 3,603
Share premium account 26,931 24,103 26,588
Share options reserve 103 30 66
Reserves (21,202) (19,840) (20,663)
========== ========== ==========
Total Equity 10,032 7,886 9,594
========== ========== ==========
Shareholders' Funds
Equity 6,488 4,342 6,050
Non-equity 3,544 3,544 3,544
---------- ---------- ----------
10,032 7,886 9,594
========== ========== ==========
TIMESTRIP PLC
INTERIM STATEMENT
RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2006
Summary Cash Flow Statement
6 months ended 6 months ended 12 months ended
30 June 30 June 31 December
2006 2005 2005
Unaudited Unaudited Audited
As restated As restated
# 000's # 000's # 000's
Net cash outflow from
operating activities (382) (545) (1,294)
---------- ---------- ----------
Returns on investment and
servicing of finance
Interest received 64 16 55
Interest paid (5)
---------- ---------- ----------
Net cash outflow from
returns on investments and
servicing of finance 64 16 50
---------- ---------- ----------
---------- ---------- ----------
Taxation recovered 0 0 80
---------- ---------- ----------
Capital expenditure and
financial investment
Payments to acquire
tangible fixed assets (22) (108) (137)
Payments to acquire
intangible fixed assets (235) 0 0
---------- ---------- ----------
Net cash outflow from
capital expenditure and
financial investment (257) (108) (137)
---------- ---------- ----------
Acquisitions and disposals
Net cash acquired from
subsidiary undertakings 0 43 43
---------- ---------- ----------
---------- ---------- ----------
Net cash outflow before
financing (575) (594) (1,258)
---------- ---------- ----------
Financing
Issue and purchase of
ordinary shares 939 2,023 4,522
Share issue expenses 0 (273) (273)
Repayment of bank loan 0 0 (12)
New short term loan 0 50 0
Effect of foreign exchange
rate changes 26 0 0
---------- ---------- ----------
Net cash inflow from
financing 965 1,800 4,237
---------- ---------- ----------
---------- ---------- ----------
Increase in cash in the
period 390 1,206 2,979
========== ========== ==========
TIMESTRIP PLC
INTERIM STATEMENT
RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2006
Reconciliation of operating loss to net cash outflow from operating activities
6 months ended 6 months ended 12 months ended
30 June 30 June 31 December
2006 2005 2005
Unaudited Unaudited Audited
As restated As restated
# 000's # 000's # 000's
Operating loss (602) (425) (1,375)
Depreciation /
Amortisation 208 129 317
Increase in stocks (6) (16) (8)
(Increase) /
Decrease in debtors (55) 69 (48)
Increase /
(Decrease) in
creditors 36 (332) (246)
Share based payments 37 30 66
---------- ---------- ----------
Net cash outflow
from operating
activities (382) (545) (1,294)
========== ========== ==========
Reconciliation of net cash flow to movement in net debt
Increase in cash 390 1,206 2,979
Cash outflow from
increase in debt 0 0 (81)
Cash inflow from new
loans 0 (50) 0
Loans acquired with
subsidiary 0 (88) 0
---------- ---------- ----------
Movement in net
funds 390 1,068 2,898
---------- ---------- ----------
Opening funds 2,979 0 0
---------- ---------- ----------
Closing funds 3,369 1,068 2,898
========== ========== ==========
TIMESTRIP PLC
INTERIM STATEMENT
RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2006
Notes To The Interim Results:
1. Basis of preparation
The unaudited results for the six months ended 30 June 2006 have been prepared
on accounting bases and policies that are consistent with those used in the
preparation of the financial statements of the company for the period ended 31
December 2005, except as indicated below.
The financial statements contained in this report do not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985.
Full accounts for the period ended 31 December 2005, upon which the auditors
issued an unqualified opinion, have been delivered to the Registrar of
Companies.
2. Prior period adjustment
The company has adopted FRS 20,' Share based payment', in these financial
statements. FRS 20 requires an entity to reflect in its profit or loss and
financial position the effects of share-based payment transactions, including
expenses associated with transactions in which share options are granted to
employees. The fair value is measured at grant date and spread over the period
during which the employees become unconditionally entitled to the options. The
fair value is measured using the Black - Scholes formula, taking into account
the terms and conditions upon which the options were granted. Previously costs
associated with share options have been recognised in the profit and loss
account only in the period in which they are exercised. As a result there has
been a prior period adjustment that has resulted in the company's net assets and
profit and loss reserve in 2005 being reduced by #66,308 and the accounting
information shown in this statement for the six months ended 30 June 2005 and
the 12 months ended 31 December 2005 has been restated to reflect this
adjustment.
3. 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 30 June
2006.
4. Taxation
No taxation is expected to arise on the results for the period.
5. Loss per share
The loss per share for the six months ended 30 June 2006 has been calculated on
the basis of the loss after taxation for the period of #538,529 (June 2005 -
#409,376 and December 2005 - #1,231,264 as restated) and the weighted average
number of shares in issue during the period of 333,908,909 (2005 - 194,262,829).
6. Dividends
No dividend is proposed for the period ended 30 June 2006.
7. Goodwill, patents and trademarks
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.
8. Research and development
Expenditure on research and development has previously been written off in the
year in which it is incurred. An amount of #253,000 (2005 - #Nil) has been
capitalised in the period to 30 June 2006 as it now meets the recognition
criteria in accordance with SSAP 13, 'Accounting for Research and Development'
which is also consistent with the requirements of International Accounting
Standard 38, 'Intangible assets' which the company will be adopting in due
course.
9. Share capital
During the period the following shares and warrants were issued:
On 10th March 2006, 250,000 Placing Warrants over Ordinary Shares of 0.02p were
issued at a price of 0.06p raising #15,000.
On 28th March 2006, 58,791 "B" Warrants over Ordinary Shares of 0.02p were
issued at a price of 0.04p raising #2,352.
On 28th March 2006, 251,999 Placing Warrants over Ordinary Shares of 0.02p were
issued at a price of 0.06p raising #15,120.
On 9th May 2006, 14,456,409 Placing Shares over Ordinary Shares of 0.02p were
issued at a price of 0.06p raising #867,385.
On 9th May 2006, 263,111 "B" Warrants over Ordinary Shares of 0.02p were issued
at a price of 0.04p raising #10,524.
On 16th May 2006, 273,779 "B" Warrants over Ordinary Shares of 0.02p were issued
at a price of 0.04p raising #10,951.
On 31st May 2006, 140,954 "B" Warrants over Ordinary Shares of 0.02p were issued
at a price of 0.04p raising #5,638.
On 5th June 2006, 311,814 Placing Warrants over Ordinary Shares of 0.02p were
issued at a price of 0.04p raising #12,473.
This information is provided by RNS
The company news service from the London Stock Exchange
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