RNS Number : 4888D
Timestrip PLC
16 September 2008
TIME.L
Timestrip Plc
("Timestrip" or "the Company")
Interim Results for the 6 months ended 30th June 2008
Timestrip Plc is pleased to announce its unaudited interim results for the 6 months to 30 June 2008.
Timestrip Plc ("Timestrip") develops, manufactures and sells two technologies in the field of time and temperature measurement. The
patented Timestrip smart label monitors how long perishable food and other replaceable products have been open or in use. The patent pending
iStrip undergoes an irreversible colour change when exposed to freezing temperatures and is designed to indicate whether the efficacy of
products, such as vaccines, has been compromised.
Key Points
* Steady progress achieved during period under review
* Revenue streams continue to strengthen and build - up 144% on H1 2007
* Balance Sheet strengthened by Placings in May and post-period end in July 2008
* Progress achieved within significant new markets:
* Pharmaceuticals: Timestrip to feature as Shipping Quality Indicator for leading Pharma brand in Q4 2008
* Toothbrushes: Order shipped to leading European brand to support upcoming nationwide promotion in encouraging consumers to replace
their toothbrushes regularly
* Repeat revenues streams expected to grow via established clients such as WD40 and United Pet Group which have recently launched
new product ranges in the US
Paul Freedman, Timestrip's joint CEO commented:-
"I am pleased to report a period of steady progress for the Group, which is now achieving good momentum in the commercialisation of its
core Timestrip� technology. Our in-house production facility continues to see improved efficiencies as a result of the larger order volumes
being processed and we continue to focus on opportunities to leverage our successes through an expanding sales and distribution footprint in
Europe, North America and Asia. Although the macro economic conditions are challenging across all industry sectors, we remain confident that
Timestrip presents a unique and compelling proposition that benefits brands and consumers alike, and I look forward to reporting continued
progress in due course."
For further information:
Paul Freedman, Joint CEO, Timestrip 01462 440 700
Shane Dolan, Biddicks 020 7448 1000020 7600 1658
Geoff Nash, Finncap
Chairman's statement
Although 2007 was a challenging year for the group I am pleased to report some encouraging progress in relation to both sales and
funding during the first half of 2008. Revenues for the period were 144% higher than the comparable period in 2007, and indeed were 50%
higher than the revenues for the whole of 2007. This trend has continued in the period since the end of June.
Two share issues, one conducted in July after the period end, have significantly strengthened the cash resources of the group. We are
delighted to welcome Graham Platts who has joined the Board as a Non-Executive Director, and I would like to thank Spencer Leslie, who
resigned his position as Non-Executive Director in May, for his contribution to the Company.
Financial Results
Turnover for the six months to 30 June 2008 was �267,572 (30 June 2007 - �109,647). At the pre-tax level the Company recorded a loss of
�625,649 (2007 - (loss) �657,404). The resultant loss per share is 0.19p (2007 - 0.21p). The Company had cash resources of �0.9m as at the
end of June. An additional �0.56m was raised through a placing of new shares in July 2008 , at which time the Company entered into an
unconditional put option agreement allowing it to raise, in the future, a further �0.44m through an additional placing of shares.
Current Trading and Prospects
The Company has made good progress in improving its sales and marketing operations and in expanding its reach into markets with the
greatest revenue potential. The Board remains optimistic that the fruits of these efforts and investment will translate into significant
revenue growth in the future.
A proportion of the revenues in 2008 have been derived from orders for new consumer product launches, and it is too soon to have seen
the repeat orders that we anticipate once they are widely available at retail. WD40, for example, have in recent weeks launched the
"3-in-One No Rust Shield" in the US, and we anticipate repeat orders as they progress with plans to roll-out the product. It is also
encouraging to see that United Pet Group has now launched Tetra branded products with the integrated Timestrip technology, including the new
Whisper EX filtration system for aquariums.
We are pleased to report that we have also recently converted business in the pharmaceutical and Personal Care sectors. Timestrips will
soon appear as a shipping quality indicator with a leading pharmaceutical brand in the UK and will feature with a well-known toothbrush
brand in Europe as part of a promotion to encourage more regular replacement of toothbrushes.
There is great resolve within the group to fulfill the enormous potential presented by the unique technologies that have been developed.
We remain focused on quickly delivering a number of important contracts and transformational deals that we believe will establish Timestrip
as a global mass market technology.
Stephen Oakes
Chairman
16th September 2008
Joint Chief Executives' Statement
Operating Review
The group has developed and is now commercializing two technologies, both of which are capable of radically transforming the markets in
which they are targeted. Timestrip� and iStrip� operate in the field of time and temperature measurement and are positioned for adoption
within six major mass markets: Food and Beverage, Appliances, Catering/Foodservice, Medical Devices, Pharmaceuticals and Cosmetics/Personal
Care.
Our in-house production facility continues to see improved efficiencies as a result of the larger order volumes being processed. We
remain committed to the R&D process and are pleased to report that we have successfully developed two new variants of the Timestrip, one of
which is known as Threshold Plus and is described in greater detail below.
Our primary focus is to build substantial and sustainable revenues. Despite long sales cycles and challenging macro economic conditions
we remain optimistic that significant and transformational contracts can be delivered. We have extended our sales network through the
addition of new agents in North America who are already delivering promising results. We are actively seeking to expand the sales network in
Europe and Asia.
Our product offering for Appliances and Routine Reminders remains our most successful to date. WD40 has now launched the "3-in-One No
Rust Shield" on Direct TV in the US and we are expecting new orders as they execute their plan to roll out this exciting and unique product
with mass retailers. We are making regular shipments to United Pet Group and Timestrip now features prominently in new products such as the
Whisper EX filtration system (http://www.tetra-fish.com).
Whirlpool have introduced Timestrip integrated products into new markets such as India and we recently shipped a new product that is
designed for use as a reminder to replace cooker-hood filters. Another new customer, IBA Bouchard are successfully integrating Timestrip
into their range of food freshening technologies, one of which - "Market Day" - sells throughout France and is now selling at Tesco in the
UK. We continue to receive repeat orders from existing customers, including DryandStore who have successfully adopted the technology for use
with their hearing aid desiccant.
We are continuing to progress some exciting opportunities in the Pharmaceutical sector and are pleased to report that an order has been
received from a leading pharmaceutical company who will use Timestrip to help guarantee the quality of their leading brand during shipping.
The initial launch will take place in the UK and if successful it is expected that the adoption will be extended to the larger US market. We
look forward to updating shareholders in greater detail in due course.
In the Cosmetic and Personal Care sector we are pleased to report that we have successfully delivered a custom order for Timestrips that
have been purchased by a leading European toothbrush brand for use with a nationwide promotion to encourage people to replace their
toothbrush regularly. We believe that the connection of Timestrip with toothbrushes in this way will be a catalyst for much larger
opportunities that we are pursuing in this sector in Europe and the US. We continue to make good progress towards the integration of
Timestrip products into cosmetic packaging and are optimistic that the first product in this sector with our technology will be launched in
early 2009.
The adoption of Timestrip within the Food & Beverage sector has to date been disappointing. Widely publicised inflationary trends within
this sector have led many potential customers to focus more on cost reduction than adding value through innovation and consequently our
progress has been slow. In addition to our ongoing discussions with Premier Foods we are progressing a number of other opportunities in the
US with premium brands where the price/value proposition lends itself more readily to our technology given the current macro-economic
climate.
New independent research conducted on Timestrip in the US has confirmed a high level of interest in the technology from consumers. It
appears that the trends towards food safety awareness, avoiding waste and other "green issues" are tipping consumer preferences in favour of
Timestrip. We anticipate retail uptake for Timestrip consumer packs both in the US and Europe towards the end of the year and look forward
to reporting on progress in this sector.
We are pleased to confirm solid progress in the Catering/Foodservice sector. Our product range has been enhanced by the addition of
several new products. Threshold Plus uses the core Timestrip technology to monitor temperature abuse, showing the cumulative time above a
threshold temperature in a highly cost effective manner. We have also negotiated distribution rights for an existing range of irreversible
temperature abuse indicators that show instantaneously when a threshold temperature has been breached. It is our intention to replicate the
success of these indicators in the US with existing pipeline customers in Europe. We have also agreed to distribute an exciting new RFID
based electronic time and temperature tracking system known as Log-ic and are encouraged by the sale of a number of systems in a short
period of time for trial and evaluation purposes to existing customers.
iStrip
It was recently announced to shareholders that a complaint has been filed in the US District Court of New Jersey alleging that iStrip
infringes a recently granted US patent. The Directors are taking legal advice on this matter and it is our belief that there is no liability
and that the complaint will not have a material effect on the business. Shareholders will be updated on any developments in due course.
Paul Freedman Reuben Isbitsky
Joint Chief Executive Officer Joint Chief Executive Officer
16th September 2008 16th September 2008
Consolidated Income statement
6 months to 30 June 6 months to 30 June 12 Months to
2008 2007 31 December
2007
Unaudited Unaudited Audited
� 000's � 000's � 000's
Revenue 268 110 177
Cost of sales (128) (57) (113)
Gross profit 140 53 64
Administrative expenses (843) (831) (1,833)
Loss from operations (703) (778) (1,769)
Finance Income 10 54 98
Finance costs (4) (6) (9)
Loss before tax (697) (730) (1,680)
Taxation 72 73 1,107
Loss for the period (625) (657) (573)
Attributable to:
Loss for the period (625) (657) (573)
attributable to equity holders
of the Company
Basic and diluted loss per ( 0.19) p ( 0.21) p ( 0.18) p
share
Summary Consolidated Balance Sheet
June 30 2008 June 30 2007 December 31 2007
Unaudited Unaudited Audited
� 000's � 000's � 000's
Non current assets
Goodwill 5,407 5,643 5,408
Other intangible assets 2,289 1,637 2,034
Property, plant & equipment 427 370 357
Deferred tax asset 952 - 952
9,075 7,650 8,751
Current assets
Inventory 263 225 234
Trade and other receivables 210 213 162
Current tax receivable 204 181 132
Cash and cash equivalents 942 1,831 834
1,619 2,450 1,362
Total Assets 10,694 10,100 10,113
Current Liabilities
Trade and other payables (500) (447) (303)
Bank overdrafts and loans (14) (14) (14)
Obligations under finance (9) (6) (6)
leases
(523) (467) (323)
Non-current liabilities
Bank Loans (31) (45) (39)
Obligations under finance (10) (14) (9)
leases
(41) (59) (48)
Total Liabilities (564) (526) (371)
Net Assets 10,130 9,574 9,742
Equity
Share capital 3,619 3,608 3,608
Share premium account 28,721 27,719 27,719
Share options reserve 395 318 395
Retained losses (22,605) (22,071) (21,980)
Total equity 10,130 9,574 9,742
Consolidated statement of changes in equity
Share capital Share Premium Share Options Retained losses Total Equity
reserve
� 000's � 000's � 000's � 000's � 000's
Balance at 1 January 2007 3,607 27,542 180 (21,414) 9,915
Loss for the period - - - (657) (657)
Total recognised income and 3,607 27,542 180 (22,071) 9,258
expense for the period
Shares issued during period 1 177 - - 178
Share Option charge - - 138 - 138
Balance at 30 June 2007 3,608 27,719 318 (22,071) 9,574
Balance at 1 January 2008 3,608 27,719 395 (21,980) 9,742
Loss for the period - - - (625) (625)
Total recognised income and 3,608 27,719 395 (22,605) 9,117
expense for the period
Shares issued during period 11 1,002 - - 1,013
Balance at 30 June 2008 3,619 28,721 395 (22,605) 10,130
Summary Cash Flow Statement
6 months to 30 June 6 months to 30 June 12 Months to 31
2008 2007 December 2007
Unaudited Unaudited Audited
� 000's � 000's � 000's
Net cash outflow (768) (832) (1,837)
from operating
activities
Investing activities
Investment in (16) (40) (43)
intangible assets
Purchase of property (126) (36) (66)
plant & equipment
Interest received 10 54 98
Net cash outflow (132) (22) (11)
from investing
activities
Net cash outflow (900) (854) (1,848)
before management of
liquid resources and
financing
Financing activities
Issue of ordinary 1,013 179 179
share capital
Repayment of long (5) (11) (14)
term bank loan
Net cash inflow from 1,008 168 165
financing activities
Increase / 108 (686) (1,683)
(Decrease) in cash
in the period
Cash and cash 834 2,517 2,517
equivalents at the
start of the period
Cash and cash equivalents at end of 942 1,831 834
period
Notes to the cash flow statement
Reconciliation of operating 6 months to 30 June 6 months to 30 June 12 Months to 31
profit to net cash inflow from 2008 2007 December 2007
operating activities
Unaudited Unaudited Audited
� 000's � 000's � 000's
Operating loss (703) (778) (1,769)
Amortisation and impairment 60 27 121
charges of Intangible assets
Depreciation of property plant 56 37 80
& equipment
Decrease/(Increase) in (29) (41) (51)
inventories
Decrease/(Increase) in (48) (28) 24
receivables
(Decrease)/Increase in 199 37 (105)
payables
Cost of share options - 137 215
Research & development (299) (304) (550)
capitalised
Interest paid (4) (6) (9)
Corporation tax received - 87 207
Net cash outflow from � (768) � (832) � (1,837)
operating activities
Notes To The Interim Results:-
1. Basis of preparation
The Group's interim results for the half year ended 30 June 2008 have been prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union. They have not been audited and do not constitute statutory financial statements of the
Group within the meaning of section 240 of the Companies Act 1985 and section 435 of the Companies Act 2006
Statutory financial statements for the year ended 31 December 2007 have been filed with the Registrar of Companies for England and Wales
and have been reported on by the Group's auditors. The report of the auditors was not qualified and did not contain a statement under
section 273(2) or (3) of the Companies Act 1985. The comparative figures for the year ended 31 December 2007 are an abridged version of
these full financial statements.
2. Basis of consolidation
The consolidated income statement and balance sheet include the financial statements of the company and its subsidiary undertakings for
the period ending 30 June 2008.
3. Share capital
During the period the following shares and warrants were issued:
On 31st March 2008, 536,000 options were exercised at par value to Ordinary Shares of 0.02p raising �107.
On 6th May 2008, 53,820,000 ordinary Shares of 0.02p were issues at a price of 2.16p raising �1,162,512 gross and �1,012,552 net, after
issuing expenses.
4. Dividends
No dividend is proposed for the period ended 30 June 2008.
5. Taxation
No taxation is expected to arise on the results for the period.
6. Loss per Share
The loss per share for the six months ended 30 June 2008 has been calculated on the basis of the loss after taxation for the period of:
(�625,649), June 2007:(�657,404), and December 2007: (�572,617) and the weighted average number of shares in issue during the period of
337,255,025 (June 2007: 315,822,799 and December 2007: 318,206,472).
7. Segmental reporting
The Geographical segmental reporting by destination of sales was as follows:
June 30 2008 June 30 2007 December 31 2007
� 000's � 000's � 000's
Revenue
UK 10 3 1
Europe 46 48 58
North America 198 50 38
Rest of World 14 9 80
268 110 177
Loss for the period
UK (23) (18) (3)
Europe (107) (287) (188)
North America (462) (298) (124)
Rest of World (33) (54) (258)
(625) (657) (573)
8. Post balance sheet events
On 28th July 2008, 25,000,000 new ordinary shares of 0.02 pence were issued at a price of 2.25 pence per share raising �562,500.
In addition the Company has also entered into an unconditional put option agreement, exercisable at the Company's sole discretion at any
time between 1 January 2009 and 1 January 2011, to raise a further �437,500 through a further placing of shares.
9. Distribution
The interim statement will be made available on the company's website at www.timestrip.com. Copies may also
be obtained from Company Secretary: International Registrars Limited, Finsgate, 5-7 Cranwood Street, London, EC1V
9EE
This information is provided by RNS
The company news service from the London Stock Exchange
END
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