TIDMSNAK
RNS Number : 0288Q
Snacktime PLC
28 July 2010
28 July 2010
SNACKTIME plc
("SnackTime", the "Company" or the "Group")
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2010
SnackTime plc, one of the UK's largest national operators of snack and chilled
drink vending machines, is pleased to announce its preliminary results for the
year ended 31 March 2010.
Highlights
· Group sales* increased by 73% to GBP11.5m (2009: GBP6.7m)
· IFRS reported revenue grew 13.4% to GBP7.7m (2009: GBP6.7m)
· Operating profit** improved to GBP1.6m (2009: GBP0.4m)
· Adjusted profit before tax of GBP1.2m (2009: GBP0.2m)
· Earnings per share rose to 17.12p (2009: 1.82p)
· Acquisition of MBM Systems ("SITB") - SnackTime's major UK competitor in
September 2009
· Guaranteed income contracts introduced and as at 31 March 2010 already
represented 77% of the estate
· SnackTime+ now the fourth largest vending operator in the UK
*Group sales = IFRS revenues + product sales through Franchisees
**after gain on bargain acquisition and integration and restructuring costs
+measured on a Group sales basis
Blair Jenkins, CEO of SnackTime plc, commented:
"This has been a transformational period for SnackTime with the acquisition of
the Snack in the Box business not only removing a major competitor, but also
providing us with a much greater footprint and presence in our chosen markets.
Our adoption of guaranteed income contracts provides us with greater security of
earnings whilst still enabling customers to benefit from a free to use model.
The Board is keen to identify further acquisition opportunities as SnackTime
continues to increase its penetration in the UK snack, chilled drink,
confectionary and hot beverage market, and we look forward to the future with
confidence."
For further information:
SnackTime PLC
Blair Jenkins, Chief Executive 0118 977 3344
Arbuthnot Securities Limited
Tom Griffiths, Alasdair Younie 020 7012 2000
Threadneedle Communications
Josh Royston, Graham Herring 020 7653 9850
CHAIRMAN'S STATEMENT
PRINCIPAL ACTIVITIES
The principal activity of the Group is the provision and operation of snack,
chilled drink, confectionary and hot beverage machines to organisations
throughout the United Kingdom and Ireland.
BUSINESS REVIEW AND FUTURE DEVELOPMENTS
2009-10 was another successful year for SnackTime plc. The acquisition of MBM
Systems Ltd ("SITB") in September 2009 enabled SnackTime to grow Group sales*
from GBP6.7m, (2009) to GBP11.5m, an increase of 73%. IFRS reported revenue
grew from GBP6.7m to GBP7.7m an increase of 13.4%. As a result of the
acquisition the number of SEQs** grew by 15,200 to approximately 23,000 by the
close of the year. On a Group sales basis, SnackTime is now the fourth largest
vending operator in the UK.
In addition, Group earnings improved from GBP131,000 to GBP1,428,000 an increase
of 990%, whilst operating profit improved from GBP399,000 to GBP1,583,000.
Earnings per share rose from 1.82 pence in 2008-9 to 17.12 pence in 2009-10.
Prior to its acquisition, SITB was SnackTime's only significant competitor in
the snack and confectionary vending sector and its acquisition in September 2009
marked a major development and opportunity for the Group. SnackTime made a
profit on the purchase of MBM Systems Limited of GBP1.8m (gain on bargain
acquisition) which is included in the reported profits. However, the Group has
incurred significant integration, rebranding, restructuring, depreciation and
redundancy costs as a result of the takeover. The merger of the two businesses
has enabled the Group to make several strategic improvements to its operating
model as detailed below:
· Geographically remote and non core Free on Loan machines have been sold
to SITB franchisees. These include peripheral and remote customers from a
geographic perspective and sites which are not strategically significant for the
Group as a whole. The Operated part of the business is increasingly focusing
only on contract customers whilst SITB is primarily focusing on Free on Loan
machines.
· As at 1 September 2009, all of the Group's estate comprised Free on Loan
machines. By the end of the financial year (31 March 2010), 77% of the estate
had been brought under guaranteed income contracts (either to customers or to
franchisees). As at 1 July 2010 this contracted figure had increased to 84% of
the estate. The business is determined to convert 99% of its operated estate to
guaranteed income contracts in the very near future.
· Selling prices of products were increased across the estate by 10p per
item (circa 20%) between October and December 2009.
· A new Sales and Marketing team was established in the second half of the
year to focus on the conversion of existing free on loan customers to guaranteed
income and also to sell contract Free on Loan business.
· SnackTime's policy is to no longer to offer new customers a Free on Loan
machine in the 'old fashioned sense'; new customers can obtain a genuinely "no
cost" machine from SnackTime provided they agree to a minimum usage criteria
with a minimum term contract (typically 48 months). Existing customers can
either convert to minimum usage contracts or alternatively risk losing their
vending facilities.
· The operated part of the business has streamlined considerably with the
reduction of nearly 50% in infrastructure costs.
· A premium quality hot drinks range has been added thereby enabling
SnackTime to offer a full range of vending services which is particularly
important to larger organisations.
SnackTime focused nearly all of its management time in the last financial year
on its first acquisition and also upon converting Free on Loan customers to
guaranteed income contracts. As a consequence there was little organic estate
growth in the business in 2009-10. The management intend to continue with
acquisitions this year and to accelerate Free on Loan to Contract conversions.
As detailed above, the second half of 2009 saw the creation of a new contract
sales team which now consists of a main board sales director, 10 salesmen and
customer services/admin support staff along with telemarketing assistance. In
addition the Group strengthened its Head office infrastructure in order to
pursue further acquisition targets, a Marketing department, an HR department and
a credit control department were also established as well as an acquisition
team. These additional staff will add circa GBP1m to the central cost base in a
full year but the additional investment is necessary for the business to ensure
substantial contract sales growth and in order to pursue and integrate further
acquisitions.
SnackTime is in active discussions with a number of potential acquisition
targets and is confident that it will be able to complete a significant
acquisition in the forthcoming financial year. The sale of peripheral and non
core Free on Loan machines to franchisees continues apace and this activity is
coupled with the progressive conversion of customers from 'Free on Loan' to
guaranteed income contracts. Consequently, it is anticipated that the operated
estate will be fully on a contract-only format by the close of the 2010-11 year.
The Board would like to take this opportunity to thank SnackTime's customers,
staff and shareholders for their continued support.
Michael Jackson
Chairman
28 July 2010
*Group sales = IFRS revenues + product sales through Franchisees (Product sales
through Franchisees are not recognised under IFRS). SnackTime believes that the
Group sales measure is the only reliable guide to overall Group customer sales
and is the only reliable like for like revenue indicator.
** SEQ's are slimline equivalents and is a good guide to the total machine /box
vending estate in customer sites
SNACKTIME PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
year ended 31 March 2010
+--------------------------------------+-------+-----------------+-----------------+
| |Notes | 2010 | 2009 |
+--------------------------------------+-------+-----------------+-----------------+
| | | GBP | GBP |
+--------------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------------+-------+-----------------+-----------------+
| REVENUE | | 7,651,491 | 6,673,965 |
+--------------------------------------+-------+-----------------+-----------------+
| Cost of sales | | (3,134,987) | (2,581,514) |
+--------------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------------+-------+-----------------+-----------------+
| GROSS PROFIT | | 4,516,504 | 4,092,451 |
+--------------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------------+-------+-----------------+-----------------+
| Distribution costs and | | (4,738,582) | (3,693,196) |
| administration expenses | | | |
+--------------------------------------+-------+-----------------+-----------------+
| Gain on bargain acquisition | 10 | 1,805,067 | - |
+--------------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------------+-------+-----------------+-----------------+
| PROFIT FROM OPERATIONS | 2 | 1,582,989 | 399,255 |
+--------------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------------+-------+-----------------+-----------------+
| Investment income | | 2,613 | 54,531 |
+--------------------------------------+-------+-----------------+-----------------+
| Finance costs | | (273,796) | (251,853) |
+--------------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------------+-------+-----------------+-----------------+
| PROFIT BEFORE TAXATION | | 1,311,806 | 201,933 |
+--------------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------------+-------+-----------------+-----------------+
| Income tax credit/(expense) | 3 | 116,019 | (70,940) |
+--------------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------------+-------+-----------------+-----------------+
| PROFIT AFTER TAXATION AND TOTAL | | 1,427,825 | 130,993 |
| COMPREHENSIVE INCOME | | | |
+--------------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------------+-------+-----------------+-----------------+
| Basic profit per share | 4 | 17.12 | 1.82 |
| | | pence | pence |
+--------------------------------------+-------+-----------------+-----------------+
| Diluted profit per share | 4 | 16.25 | 1.82 |
| | | pence | pence |
+--------------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------------+-------+-----------------+-----------------+
SNACKTIME PLC
Consolidated STATEMENT OF Changes in equity
year ended 31 March 2010
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| | | | | | Equity | | | | |
| | | | | | element | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| | | Issued | Share | Share | of | Capital | | | |
| | | | | | compound | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| | | share | premium | option | financial | redemption | Merger | Retained | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| | | capital | account | reserve | instrument | reserve | reserve | earnings | Total |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| | | GBP | GBP | GBP | GBP | GBP | GBP | GBP | GBP |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| Balance as at 1 | | 138,891 | 2,753,458 | 38,189 | - | 1,274,279 | 116,892 | (192,707) | 4,129,002 |
| April 2008 | | | | | | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| | | | | | | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| Total | | | | | | | | | |
| comprehensive | | | | | | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| income for the | | - | - | - | - | - | - | 130,993 | 130,993 |
| year | | | | | | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| | | | | | | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| Share option | | - | - | 72,013 | - | - | - | - | 72,013 |
| expense | | | | | | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| | | | | | | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| Equity element of | | - | - | - | 65,810 | - | - | - | 65,810 |
| compound financial | | | | | | | | | |
| instruments issued | | | | | | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| | | | | | | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| Issue of share | | 10,836 | 454,185 | - | - | - | - | - | 465,021 |
| capital | | | | | | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| | | | | | | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| Share issue costs | | - | (141,118) | - | - | - | - | - | (141,118) |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| | | | | | | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| Balance as at 31 | | 149,727 | 3,066,525 | 110,202 | 65,810 | 1,274,279 | 116,892 | (61,714) | 4,721,721 |
| March 2009 | | | | | | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| | | | | | | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| Balance as at 1 | | 149,727 | 3,066,525 | 110,202 | 65,810 | 1,274,279 | 116,892 | (61,714) | 4,721,721 |
| April 2009 | | | | | | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| Total | | | | | | | | | |
| comprehensive | | | | | | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| income for the | | - | - | - | - | - | - | 1,427,825 | 1,427,825 |
| year | | | | | | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| | | | | | | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| Issue of share | | 68,296 | 5,736,864 | - | - | - | - | - | 5,805,160 |
| capital | | | | | | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| | | | | | | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| Share issue costs | | - | (456,006) | - | - | - | - | - | (456,006) |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| | | | | | | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| Share options | | - | - | 74,020 | - | - | - | - | 74,020 |
| expense | | | | | | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| | | | | | | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
| Balance as at 31 | | 218,023 | 8,347,383 | 184,222 | 65,810 | 1,274,279 | 116,892 | 1,366,111 | 11,572,720 |
| March 2010 | | | | | | | | | |
+--------------------+-----+---------------+-----------------+---------------+--------------+-----------------+---------------+-----------------+------------------+
SNACKTIME PLC
consolidated STATEMENT OF FINANCIAL POSITION
31 March 2010
+----------------------------------+-------+--------------+--------------+
| |Notes | 2010 | 2009 |
+----------------------------------+-------+--------------+--------------+
| | | GBP | GBP |
+----------------------------------+-------+--------------+--------------+
| ASSETS | | | |
+----------------------------------+-------+--------------+--------------+
| NON CURRENT ASSETS | | | |
+----------------------------------+-------+--------------+--------------+
| Property, plant and equipment | 5 | 6,999,561 | 5,104,828 |
+----------------------------------+-------+--------------+--------------+
| Intangible assets | 6 | 2,453,189 | - |
+----------------------------------+-------+--------------+--------------+
| Deferred tax asset | | 181,486 | - |
+----------------------------------+-------+--------------+--------------+
| | | | |
+----------------------------------+-------+--------------+--------------+
| | | 9,634,236 | 5,104,828 |
+----------------------------------+-------+--------------+--------------+
| | | | |
+----------------------------------+-------+--------------+--------------+
| CURRENT ASSETS | | | |
+----------------------------------+-------+--------------+--------------+
| Inventories | | 882,807 | 933,203 |
+----------------------------------+-------+--------------+--------------+
| Trade and other receivables | 7 | 1,266,930 | 987,014 |
+----------------------------------+-------+--------------+--------------+
| Cash and cash equivalents | | 4,647,201 | 1,116,749 |
+----------------------------------+-------+--------------+--------------+
| | | | |
+----------------------------------+-------+--------------+--------------+
| | | 6,796,938 | 3,036,966 |
+----------------------------------+-------+--------------+--------------+
| | | | |
+----------------------------------+-------+--------------+--------------+
| TOTAL ASSETS | | 16,431,174 | 8,141,794 |
+----------------------------------+-------+--------------+--------------+
| | | | |
+----------------------------------+-------+--------------+--------------+
| LIABILITIES | | | |
+----------------------------------+-------+--------------+--------------+
| CURRENT LIABILITIES | | | |
+----------------------------------+-------+--------------+--------------+
| Borrowings | 8 | (1,116,274) | (824,833) |
+----------------------------------+-------+--------------+--------------+
| Trade and other payables | 9 | (1,335,450) | (613,408) |
+----------------------------------+-------+--------------+--------------+
| | | | |
+----------------------------------+-------+--------------+--------------+
| | | (2,451,724) | (1,438,241) |
+----------------------------------+-------+--------------+--------------+
| | | | |
+----------------------------------+-------+--------------+--------------+
| NON CURRENT LIABILITIES | | | |
+----------------------------------+-------+--------------+--------------+
| Borrowings | 8 | (905,443) | (1,963,061) |
+----------------------------------+-------+--------------+--------------+
| Deferred tax liability | | (1,501,287) | (18,771) |
+----------------------------------+-------+--------------+--------------+
| | | | |
+----------------------------------+-------+--------------+--------------+
| | | (2,406,730) | (1,981,832) |
+----------------------------------+-------+--------------+--------------+
| | | | |
+----------------------------------+-------+--------------+--------------+
| TOTAL LIABILITIES | | (4,858,454) | (3,420,073) |
+----------------------------------+-------+--------------+--------------+
| | | | |
+----------------------------------+-------+--------------+--------------+
| NET ASSETS | | 11,572,720 | 4,721,721 |
+----------------------------------+-------+--------------+--------------+
| | | | |
+----------------------------------+-------+--------------+--------------+
| EQUITY | | | |
+----------------------------------+-------+--------------+--------------+
| Share capital | | 218,023 | 149,727 |
+----------------------------------+-------+--------------+--------------+
| Share premium account | | 8,347,383 | 3,066,525 |
+----------------------------------+-------+--------------+--------------+
| Merger reserve | | 116,892 | 116,892 |
+----------------------------------+-------+--------------+--------------+
| Capital redemption reserve | | 1,274,279 | 1,274,279 |
+----------------------------------+-------+--------------+--------------+
| Share option reserve | | 184,222 | 110,202 |
+----------------------------------+-------+--------------+--------------+
| Equity element of compound | | 65,810 | 65,810 |
| financial instrument | | | |
+----------------------------------+-------+--------------+--------------+
| Retained earnings | | 1,366,111 | (61,714) |
+----------------------------------+-------+--------------+--------------+
| | | | |
+----------------------------------+-------+--------------+--------------+
| TOTAL EQUITY | | 11,572,720 | 4,721,721 |
+----------------------------------+-------+--------------+--------------+
| | | | |
+----------------------------------+-------+--------------+--------------+
SNACKTIME PLC
CONSOLIDATED statement OF cash flowS
Year ended 31 March 2010
+---------------------------------------+--+--------------+--------------+
| | | 2010 | 2009 |
+---------------------------------------+--+--------------+--------------+
| CASH FLOW FROM OPERATING ACTIVITIES | | GBP | GBP |
+---------------------------------------+--+--------------+--------------+
| Profit before taxation | | 1,311,806 | 201,933 |
+---------------------------------------+--+--------------+--------------+
| Finance costs | | 273,796 | 251,853 |
+---------------------------------------+--+--------------+--------------+
| Finance income | | (2,613) | (54,531) |
+---------------------------------------+--+--------------+--------------+
| Depreciation of property, plant and | | 907,373 | 641,623 |
| equipment | | | |
+---------------------------------------+--+--------------+--------------+
| Amortisation | | 104,694 | - |
+---------------------------------------+--+--------------+--------------+
| Gain on bargain acquisition | | (1,805,067) | - |
+---------------------------------------+--+--------------+--------------+
| Profit on disposal of property, plant | | (244) | (1,617) |
| and equipment | | | |
+---------------------------------------+--+--------------+--------------+
| Share based payment expense | | 74,020 | 72,013 |
+---------------------------------------+--+--------------+--------------+
| | | | |
+---------------------------------------+--+--------------+--------------+
| Operating cash flow | | 863,765 | 1,111,274 |
+---------------------------------------+--+--------------+--------------+
| | | | |
+---------------------------------------+--+--------------+--------------+
| Decrease/(increase) in inventories | | 50,396 | (178,257) |
+---------------------------------------+--+--------------+--------------+
| Increase in receivables | | (279,916) | (99,534) |
+---------------------------------------+--+--------------+--------------+
| Increase/(decrease) in payables | | 422,042 | (177,536) |
+---------------------------------------+--+--------------+--------------+
| | | | |
+---------------------------------------+--+--------------+--------------+
| Cash generated from operations | | 1,056,287 | 655,947 |
+---------------------------------------+--+--------------+--------------+
| | | | |
+---------------------------------------+--+--------------+--------------+
| Interest paid | | (273,796) | (251,853) |
+---------------------------------------+--+--------------+--------------+
| | | | |
+---------------------------------------+--+--------------+--------------+
| Net cash from operating activities | | 782,491 | 404,094 |
+---------------------------------------+--+--------------+--------------+
| | | | |
+---------------------------------------+--+--------------+--------------+
| CASH FLOW FROM INVESTING ACTIVITIES | | | |
+---------------------------------------+--+--------------+--------------+
| Interest received | | 2,613 | 54,531 |
+---------------------------------------+--+--------------+--------------+
| Cash flows from acquisitions net of | | (1,538,774) | - |
| cash acquired | | | |
+---------------------------------------+--+--------------+--------------+
| Proceeds on disposal of property, | | | |
| plant | | | |
+---------------------------------------+--+--------------+--------------+
| and equipment | | 650 | 1,617 |
+---------------------------------------+--+--------------+--------------+
| Purchase of property, plant and | | (299,506) | (2,430,956) |
| equipment | | | |
+---------------------------------------+--+--------------+--------------+
| | | | |
+---------------------------------------+--+--------------+--------------+
| Net cash generated from investing | | (1,835,017) | (2,374,808) |
| activities | | | |
+---------------------------------------+--+--------------+--------------+
| | | | |
+---------------------------------------+--+--------------+--------------+
| CASH FLOW FROM FINANCING ACTIVITIES | | | |
+---------------------------------------+--+--------------+--------------+
| Repayment of borrowings | | (1,809,145) | (717,659) |
+---------------------------------------+--+--------------+--------------+
| Hire purchase and loan advances | | 1,000,000 | 1,724,430 |
+---------------------------------------+--+--------------+--------------+
| Proceeds on issue of shares and other | | | |
| equity instruments | | 5,349,154 | 344,093 |
+---------------------------------------+--+--------------+--------------+
| | | | |
+---------------------------------------+--+--------------+--------------+
| Net cash generated from financing | | 4,540,009 | 1,350,864 |
| activities | | | |
+---------------------------------------+--+--------------+--------------+
| | | | |
+---------------------------------------+--+--------------+--------------+
| NET INCREASE/(DECREASE) IN CASH AND | | | |
+---------------------------------------+--+--------------+--------------+
| CASH EQUIVALENTS | | 3,487,483 | (619,850) |
+---------------------------------------+--+--------------+--------------+
| | | | |
+---------------------------------------+--+--------------+--------------+
| | | | |
+---------------------------------------+--+--------------+--------------+
| CASH AND CASH EQUIVALENTS | | | |
+---------------------------------------+--+--------------+--------------+
| Cash and cash equivalents at | | 1,115,216 | 1,735,066 |
| beginning of year | | | |
+---------------------------------------+--+--------------+--------------+
| | | | |
+---------------------------------------+--+--------------+--------------+
| CASH AND CASH EQUIVALENTS AT END OF | | 4,602,699 | 1,115,216 |
| YEAR | | | |
+---------------------------------------+--+--------------+--------------+
| | | | |
+---------------------------------------+--+--------------+--------------+
| Cash and cash equivalents comprise: | | | |
+---------------------------------------+--+--------------+--------------+
| Cash | | 4,647,201 | 1,116,749 |
+---------------------------------------+--+--------------+--------------+
| Overdrafts | | (44,502) | (1,533) |
+---------------------------------------+--+--------------+--------------+
| | | | |
+---------------------------------------+--+--------------+--------------+
| | | 4,602,699 | 1,115,216 |
+---------------------------------------+--+--------------+--------------+
SNACKTIME PLC
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 March 2010
1. Basis of preparation
The financial information set out in this announcement does not constitute
statutory accounts as defined in the Companies Act 2006.
The financial information for the year ended 31 March 2009 has been extracted
from the group's financial statements to that date which received an unmodified
auditor's report and have been delivered to the Registrar of Companies. The
financial information for the year ended 31 March 2010 has been extracted from
the Group's financial statements to that date which have received an unmodified
auditor's report but have not yet been delivered to the Registrar of Companies.
2. PROFIT from operations
+----------------------------------------+---------------+--------------+
| | 2010 | 2009 |
+----------------------------------------+---------------+--------------+
| | GBP | GBP |
+----------------------------------------+---------------+--------------+
| This is stated after | | |
| charging/(crediting): | | |
+----------------------------------------+---------------+--------------+
| | | |
+----------------------------------------+---------------+--------------+
| Depreciation of property, plant and | | |
| equipment | | |
+----------------------------------------+---------------+--------------+
| - owned by the Group | 643,753 | 377,511 |
+----------------------------------------+---------------+--------------+
| - held under finance leases | 263,620 | 264,112 |
+----------------------------------------+---------------+--------------+
| Profit on disposal of property, plant | (243) | (1,617) |
| and equipment | | |
+----------------------------------------+---------------+--------------+
| Gain on bargain acquisition (note 10) | (1,805,067) | - |
+----------------------------------------+---------------+--------------+
| Amortisation of intangible assets | 104,694 | - |
+----------------------------------------+---------------+--------------+
| Rentals under operating leases - land | 106,586 | 52,500 |
| and buildings | | |
+----------------------------------------+---------------+--------------+
3. Taxation
+--------------------------------------------+-----------------+---------------+
| | 2010 | 2009 |
+--------------------------------------------+-----------------+---------------+
| | GBP | GBP |
+--------------------------------------------+-----------------+---------------+
| | | |
+--------------------------------------------+-----------------+---------------+
| Corporation tax | - | - |
+--------------------------------------------+-----------------+---------------+
| Deferred tax | | |
+--------------------------------------------+-----------------+---------------+
| Origination and reversal of timing | (117,319) | 80,228 |
| differences | | |
+--------------------------------------------+-----------------+---------------+
| Adjustments in respect of prior periods | 1,300 | (9,288) |
+--------------------------------------------+-----------------+---------------+
| | | |
+--------------------------------------------+-----------------+---------------+
| Tax on profit on ordinary activities | (116,019) | 70,940 |
+--------------------------------------------+-----------------+---------------+
Factors affecting tax charge for the year:
The tax assessed for the year is lower than the standard rate of corporation tax
in the UK of 28% (2009: 28%). The differences are explained below:-
+--------------------------------------------+-----------------+---------------+
| | | |
+--------------------------------------------+-----------------+---------------+
| | 2010 | 2009 |
+--------------------------------------------+-----------------+---------------+
| | GBP | GBP |
+--------------------------------------------+-----------------+---------------+
| TAX RECONCILIATION | | |
+--------------------------------------------+-----------------+---------------+
| Profit per accounts before taxation | 1,311,806 | 201,933 |
+--------------------------------------------+-----------------+---------------+
| | | |
+--------------------------------------------+-----------------+---------------+
| Tax on profit on ordinary activities at | | |
| standard | | |
+--------------------------------------------+-----------------+---------------+
| rate of 28% (2009 - 28%) | 367,306 | 56,541 |
+--------------------------------------------+-----------------+---------------+
| | | |
+--------------------------------------------+-----------------+---------------+
| Expenses not deductible for tax purposes | 18,560 | 21,035 |
+--------------------------------------------+-----------------+---------------+
| Ineligible depreciation | 2,234 | 2,652 |
+--------------------------------------------+-----------------+---------------+
| Adjustments to deferred tax for prior | 1,300 | (9,288) |
| years | | |
+--------------------------------------------+-----------------+---------------+
| Gain on bargain acquisition | (505,419) | - |
+--------------------------------------------+-----------------+---------------+
| | | |
+--------------------------------------------+-----------------+---------------+
| Total tax (credit)/charge for the year | (116,019) | 70,940 |
+--------------------------------------------+-----------------+---------------+
| | | |
+--------------------------------------------+-----------------+---------------+
4. EARNINGS per share
Earnings per share is calculated on the basis of profit for the year after tax,
divided by the weighted average number of shares in issue for the year ended 31
March 2010 of 8,340,059 (2009 - 7,201,213).
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares outstanding to assume conversion of all potential
dilutive ordinary shares (8,907,777 shares). Potential dilutive ordinary shares
arise from share options and convertible loans. For these, a calculation is
performed to determine the number of shares that could have been acquired at
fair value (determined as the average annual market share price of the Company's
shares) based on the monetary value of the exercise price attached to
outstanding share options. Thus the dilutive weighted average number of shares
considers the number of shares that would have been issued assuming the exercise
of the share options. If these are proved to be anti-dilutive (increase the
potential earnings per share) they are omitted from the calculation.
+----------------+-----------+-----------+---------+----------+-----------+---------+
| | Year ended 31 March | Year ended 31 March |
| | 2010 | 2009 |
+----------------+---------------------------------+--------------------------------+
| | | |
+----------------+---------------------------------+--------------------------------+
| | Earnings | Weighted | Amount |Earnings | Weighted | Amount |
| | (GBP) | average | per | (GBP) | average | per |
| | | no. of | share | | no. of | share |
| | | shares |(pence) | | shares |(pence) |
+----------------+-----------+-----------+---------+----------+-----------+---------+
| Earnings | | | | | | |
| attributable | | | | | | |
+----------------+-----------+-----------+---------+----------+-----------+---------+
| to ordinary | | | | | | |
+----------------+-----------+-----------+---------+----------+-----------+---------+
| shareholders |1,427,825 |8,340,059 | 17.12 | 130,993 |7,201,213 | 1.82 |
+----------------+-----------+-----------+---------+----------+-----------+---------+
| | | | | | | |
+----------------+-----------+-----------+---------+----------+-----------+---------+
| Dilutive | | | | | | |
| effect of | | | | | | |
+----------------+-----------+-----------+---------+----------+-----------+---------+
| convertible | 109,090 | 545,454 | - | - | * | - |
| loan note | | | | | | |
+----------------+-----------+-----------+---------+----------+-----------+---------+
| | | | | | | |
+----------------+-----------+-----------+---------+----------+-----------+---------+
| Share options | - | 567,718 | - | - | - | - |
+----------------+-----------+-----------+---------+----------+-----------+---------+
| | | | | | | |
+----------------+-----------+-----------+---------+----------+-----------+---------+
| Diluted | | | | | | |
| earnings | | | | | | |
+----------------+-----------+-----------+---------+----------+-----------+---------+
| per share |1,536,915 |9,453,231 | 16.25 | 130,993 |7,201,213 | 1.82 |
+----------------+-----------+-----------+---------+----------+-----------+---------+
* The incremental shares from assumed conversion are not included in the
previous years calculation of diluted earnings per share as their inclusion
would increase earnings per share and the effect would be anti-dilutive.
5. Property Plant and equipment
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| | | | | Furniture, | |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| | Leasehold | Plant | Motor | fittings | |
| | | and | | and | |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| | improvements | machinery | vehicles | equipment | Total |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| | GBP | GBP | GBP | GBP | GBP |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| Cost | | | | | |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| At 1 April 2008 | 47,607 | 4,101,742 | 213,571 | 118,686 | 4,481,606 |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| Additions | 55,213 | 2,168,001 | 141,481 | 66,261 | 2,430,956 |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| Disposals | - | - | (37,709) | - | (37,709) |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| | | | | | |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| At 1 April 2009 | 102,820 | 6,269,743 | 317,343 | 184,947 | 6,874,853 |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| Acquisitions | | 2,630,813 | - | - | 2,630,813 |
| through | | | | | |
| business | - | | | | |
| combinations | | | | | |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| Additions | 1,099 | 252,986 | - | 45,454 | 299,539 |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| Disposals | - | - | (38,529) | - | (38,529) |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| | | | | | |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| At 31 March | 103,919 | 9,153,542 | 278,814 | 230,401 | 9,766,676 |
| 2010 | | | | | |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| | | | | | |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| Depreciation | | | | | |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| At 1 April 2008 | 29,681 | 917,946 | 135,480 | 83,004 | 1,166,111 |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| Charge for the | 13,120 | 546,980 | 61,258 | 20,265 | 641,623 |
| year | | | | | |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| Disposals | - | - | (37,709) | - | (37,709) |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| | | | | | |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| | | | | | |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| At 1 April 2009 | 42,801 | 1,464,926 | 159,029 | 103,269 | 1,770,025 |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| Acquisitions | - | 127,807 | - | - | 127,807 |
| through | | | | | |
| business | | | | | |
| combinations | | | | | |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| Charge for the | 22,656 | 801,197 | 54,217 | 29,303 | 907,373 |
| year | | | | | |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| Disposals | - | - | (38,090) | - | (38,090) |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| | | | | | |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| At 31 March | 65,457 | 2,393,930 | 175,156 | 132,572 | 2,767,115 |
| 2010 | | | | | |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| | | | | | |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| Net Book Value | | | | | |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| At 31 March | 38,462 | 6,759,612 | 103,658 | 97,829 | 6,999,561 |
| 2010 | | | | | |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| | | | | | |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
| At 31 March | 60,019 | 4,804,817 | 158,314 | 81,678 | 5,104,828 |
| 2009 | | | | | |
+-----------------+---------------+-----------------+----------------+---------------+-----------------+
The net book value of assets held under finance leases or hire purchase
contracts, included above, are as follows:
+--------------------------------------------+----------------+----------------+
| | 2010 | 2009 |
+--------------------------------------------+----------------+----------------+
| | GBP | GBP |
+--------------------------------------------+----------------+----------------+
| | | |
+--------------------------------------------+----------------+----------------+
| Plant and machinery | 1,836,471 | 1,885,241 |
+--------------------------------------------+----------------+----------------+
| Motor vehicles | 76,635 | 136,239 |
+--------------------------------------------+----------------+----------------+
| | | |
+--------------------------------------------+----------------+----------------+
| | 1,913,106 | 2,021,480 |
+--------------------------------------------+----------------+----------------+
6. INTANGIBLE ASSETS
+-----------------+---------+---------+-----------------+-----------------+
| | | | | Brands |
+-----------------+---------+---------+-----------------+-----------------+
| | | | | GBP |
+-----------------+---------+---------+-----------------+-----------------+
| Cost | | | | |
+-----------------+---------+---------+-----------------+-----------------+
| At 1 April 2009 | | | | - |
+-----------------+---------+---------+-----------------+-----------------+
| Acquisitions | | | | 2,557,883 |
| through | | | | |
| business | | | | |
| combinations | | | | |
+-----------------+---------+---------+-----------------+-----------------+
| | | | | |
+-----------------+---------+---------+-----------------+-----------------+
| At 31 March | | | | 2,557,883 |
| 2010 | | | | |
+-----------------+---------+---------+-----------------+-----------------+
| | | | | |
+-----------------+---------+---------+-----------------+-----------------+
| Amortisation | | | | |
+-----------------+---------+---------+-----------------+-----------------+
| At 1 April 2009 | | | | - |
+-----------------+---------+---------+-----------------+-----------------+
| Charge for the | | | | 104,694 |
| year | | | | |
+-----------------+---------+---------+-----------------+-----------------+
| | | | | |
+-----------------+---------+---------+-----------------+-----------------+
| At 31 March | | | | 104,694 |
| 2010 | | | | |
+-----------------+---------+---------+-----------------+-----------------+
| | | | | |
+-----------------+---------+---------+-----------------+-----------------+
| Net Book Value | | | | |
+-----------------+---------+---------+-----------------+-----------------+
| At 31 March | | | | 2,453,189 |
| 2010 | | | | |
+-----------------+---------+---------+-----------------+-----------------+
| | | | | |
+-----------------+---------+---------+-----------------+-----------------+
| At 31 March | | | | - |
| 2009 | | | | |
+-----------------+---------+---------+-----------------+-----------------+
7. Trade and other receivables
+-------------------------------------------+----------------+--------------+
| | 2010 | 2009 |
+-------------------------------------------+----------------+--------------+
| | GBP | GBP |
+-------------------------------------------+----------------+--------------+
| | | |
+-------------------------------------------+----------------+--------------+
| | | |
+-------------------------------------------+----------------+--------------+
| Trade receivables | 854,026 | 561,688 |
+-------------------------------------------+----------------+--------------+
| Other receivables, prepayments and | 412,904 | 425,326 |
| accrued income | | |
+-------------------------------------------+----------------+--------------+
| | | |
+-------------------------------------------+----------------+--------------+
| | 1,266,930 | 987,014 |
+-------------------------------------------+----------------+--------------+
The recoverability of receivables is not considered to be an issue to the Group
as the main receivables are restricted to three large blue chip companies with
whom there is a long standing relationship. Ongoing management services fees to
the franchisees are secured over franchisees' properties in the event of non
payment.
Some of the trade receivables are past due but not impaired as at 31 March 2010.
The ageing analysis of these trade receivables is as follows:
+-------------------------------------------+-------------+-------------+
| | 2010 | 2009 |
+-------------------------------------------+-------------+-------------+
| | GBP | GBP |
+-------------------------------------------+-------------+-------------+
| | | |
+-------------------------------------------+-------------+-------------+
| One month overdue | 62,329 | 265,077 |
+-------------------------------------------+-------------+-------------+
| Two to six months overdue | 33,741 | 133,596 |
+-------------------------------------------+-------------+-------------+
| Over six months overdue | 22,770 | 24,965 |
+-------------------------------------------+-------------+-------------+
| | | |
+-------------------------------------------+-------------+-------------+
| | 118,840 | 423,638 |
+-------------------------------------------+-------------+-------------+
8. BoRrowings
+-------------------------------------------+----------------+----------------+
| | 2010 | 2009 |
+-------------------------------------------+----------------+----------------+
| | GBP | GBP |
+-------------------------------------------+----------------+----------------+
| | | |
+-------------------------------------------+----------------+----------------+
| Secured borrowings at amortised cost | | |
+-------------------------------------------+----------------+----------------+
| Bank overdrafts | 44,502 | 1,533 |
+-------------------------------------------+----------------+----------------+
| VC loan | 349,958 | 349,958 |
+-------------------------------------------+----------------+----------------+
| Bank loans | 75,505 | 148,851 |
+-------------------------------------------+----------------+----------------+
| Convertible loan notes | 488,570 | 488,570 |
+-------------------------------------------+----------------+----------------+
| Hire purchase | 1,063,182 | 1,798,982 |
+-------------------------------------------+----------------+----------------+
| | | |
+-------------------------------------------+----------------+----------------+
| | 2,021,717 | 2,787,894 |
+-------------------------------------------+----------------+----------------+
| | | |
+-------------------------------------------+----------------+----------------+
| Amounts due for settlement within 12 | | |
| months | | |
+-------------------------------------------+----------------+----------------+
| Bank overdrafts | 44,502 | 1,533 |
+-------------------------------------------+----------------+----------------+
| Bank loans | 29,420 | 87,500 |
+-------------------------------------------+----------------+----------------+
| VC loan | 349,958 | - |
+-------------------------------------------+----------------+----------------+
| Hire purchase | 692,394 | 735,800 |
+-------------------------------------------+----------------+----------------+
| | 1,116,274 | 824,833 |
+-------------------------------------------+----------------+----------------+
| | | |
+-------------------------------------------+----------------+----------------+
| Amounts due for settlement after 12 | | |
| months | | |
+-------------------------------------------+----------------+----------------+
| VC loan | - | 349,958 |
+-------------------------------------------+----------------+----------------+
| Bank loans | 46,085 | 61,351 |
+-------------------------------------------+----------------+----------------+
| Convertible loan notes | 488,570 | 488,570 |
+-------------------------------------------+----------------+----------------+
| Hire purchase | 370,788 | 1,063,182 |
+-------------------------------------------+----------------+----------------+
| | 905,443 | 1,963,061 |
+-------------------------------------------+----------------+----------------+
| | | |
+-------------------------------------------+----------------+----------------+
| | 2,021,717 | 2,787,894 |
+-------------------------------------------+----------------+----------------+
Terms and conditions of outstanding loans were as follows:
+--------------+----------------+------------+---------+---------+
| | Interest rate | Year of | 2010 | 2009 |
| | | maturity | | |
+--------------+----------------+------------+---------+---------+
| | % | | GBP | GBP |
+--------------+----------------+------------+---------+---------+
| | | | | |
+--------------+----------------+------------+---------+---------+
| Convertible | | | | |
| Loan notes* | 8% | 2013 | 600,000 | 600,000 |
+--------------+----------------+------------+---------+---------+
| Bank | 3% over base | On demand | 44,502 | 1,533 |
| overdraft | rate | | | |
+--------------+----------------+------------+---------+---------+
| Bank loan |2.5% over base | 2012 | 75,505 | 148,851 |
| | rate | | | |
+--------------+----------------+------------+---------+---------+
| VC Loan | 10% | 2010 | 349,958 | 349,958 |
+--------------+----------------+------------+---------+---------+
The fair value in each case equates to the carrying book value with the
exception of the convertible loan note. All loans are denominated in sterling.
All loans and overdrafts are secured by a fixed and floating charge over the
assets of the Group.
* Convertible loan stock of GBP600,000 was issued on 16 December 2008.
Fundraising costs of GBP45,620 were offset against the loan stock. Of this
GBP65,810 was treated as equity with the remainder of GBP488,570 being included
in long term borrowings. The convertible loan stock bears interest at a rate of
8% per annum. The loan stock is convertible to Ordinary shares at GBP1.10 per
share. The conversion date is the earlier of 5 years or at the loan note
holder's request from the 3rd anniversary of the date of issue. The present
value of the debt element has been calculated using an effective interest rate
of 12%.
Obligation under finance leases
+-------------------------------------------+----------------+----------------+
| | 2010 | 2009 |
+-------------------------------------------+----------------+----------------+
| | GBP | GBP |
+-------------------------------------------+----------------+----------------+
| Amounts payable under finance leases | | |
+-------------------------------------------+----------------+----------------+
| Within one year | 760,144 | 880,433 |
+-------------------------------------------+----------------+----------------+
| Two to five years | 388,430 | 1,148,573 |
+-------------------------------------------+----------------+----------------+
| | | |
+-------------------------------------------+----------------+----------------+
| Less future finance charges | (85,392) | (230,024) |
+-------------------------------------------+----------------+----------------+
| | | |
+-------------------------------------------+----------------+----------------+
| Present value of lease obligations | 1,063,182 | 1,798,982 |
+-------------------------------------------+----------------+----------------+
| | | |
+-------------------------------------------+----------------+----------------+
| Less amounts due for settlement within 12 | 692,394 | 735,800 |
| months | | |
+-------------------------------------------+----------------+----------------+
| Amounts due for settlement after 2 - 5 | 370,788 | 1,063,182 |
| years | | |
+-------------------------------------------+----------------+----------------+
Hire purchase and finance lease liabilities are secured upon the underlying
assets.
It is the Group's policy to lease certain parts of its property, plant and
equipment under finance leases. For the year ended 31 March 2010 the average
effective borrowing rate was 8.3%. Interest rates are fixed at the contract
dates. All leases are on a fixed repayment basis and no arrangements have been
entered into for contingent rental payments. All lease obligations are
denominated in sterling.
The Group entered into the following finance lease and hire purchase agreements
in the year:
Motor vehicles (Vans) GBPnil (2009 - GBP141,481)
Machines
GBPnil (2009 - GBP1,048,760)
The fair value of the Group's lease obligations approximates to their carrying
amount.
The analysis below shows the gross cash flows for the bank loan and loan notes,
which may differ to the carrying values of the liabilities at the balance sheet
date.
+-------------------------------------------+-----------+-----------+
| | 2010 | 2009 |
+-------------------------------------------+-----------+-----------+
| | GBP | GBP |
+-------------------------------------------+-----------+-----------+
| Amounts payable under bank loans & loan | | |
| notes | | |
+-------------------------------------------+-----------+-----------+
| Within one year | 396,043 | 87,500 |
+-------------------------------------------+-----------+-----------+
| 1-2 years | 629,420 | 945,498 |
+-------------------------------------------+-----------+-----------+
| Greater than 5 years | - | - |
+-------------------------------------------+-----------+-----------+
9. TRADE AND OTHER PAYABLES
+-------------------------------------------+----------------+--------------+
| | 2010 | 2009 |
+-------------------------------------------+----------------+--------------+
| | GBP | GBP |
+-------------------------------------------+----------------+--------------+
| Due within one year | | |
+-------------------------------------------+----------------+--------------+
| Trade payables | 554,145 | 467,591 |
+-------------------------------------------+----------------+--------------+
| Social security and other taxes | 215,483 | 38,342 |
+-------------------------------------------+----------------+--------------+
| Other payables - deferred consideration | 300,000 | - |
| (note 27) | | |
+-------------------------------------------+----------------+--------------+
| Accruals and deferred income | 265,822 | 107,475 |
+-------------------------------------------+----------------+--------------+
| | | |
+-------------------------------------------+----------------+--------------+
| | | |
+-------------------------------------------+----------------+--------------+
| | 1,335,450 | 613,408 |
+-------------------------------------------+----------------+--------------+
| | | |
+-------------------------------------------+----------------+--------------+
Trade payables and accruals principally comprise amounts outstanding for trade
purchases and ongoing costs. The Directors consider that the carrying amount of
trade payables approximates to their fair value.
10. ACQUISITION
The following table sets out the book values of the identifiable assets and
liabilities acquired during the year and their fair value:
+---------------------------------+---------------------------------+-------------+-------------+
| | Book | Fair | Fair |
| | value | value | value |
| | | adjustment | |
+ +---------------------------------+-------------+-------------+
| | GBP | GBP | GBP |
+ +---------------------------------+-------------+-------------+
| | | | |
+---------------------------------+---------------------------------+-------------+-------------+
| Non current assets | | | |
+---------------------------------+---------------------------------+-------------+-------------+
| Property, plant and equipment | 24,993 | 2,478,013 | 2,503,006 |
+---------------------------------+---------------------------------+-------------+-------------+
| Intangible fixed assets | 225,007 | 2,332,876 | 2,557,883 |
+---------------------------------+---------------------------------+-------------+-------------+
| | | | |
+---------------------------------+---------------------------------+-------------+-------------+
| Current assets | - | - | - |
+---------------------------------+---------------------------------+-------------+-------------+
| | | | |
+---------------------------------+---------------------------------+-------------+-------------+
| | | | |
+---------------------------------+---------------------------------+-------------+-------------+
| Total assets | 250,000 | 4,810,889 | 5,060,889 |
+---------------------------------+---------------------------------+-------------+-------------+
| | | | |
+---------------------------------+---------------------------------+-------------+-------------+
| Deferred taxation | - | (1,417,049) | (1,417,049) |
+---------------------------------+---------------------------------+-------------+-------------+
| | | | |
+---------------------------------+---------------------------------+-------------+-------------+
| Net assets | 250,000 | 3,393,840 | 3,643,840 |
+---------------------------------+---------------------------------+-------------+-------------+
| | | | |
+---------------------------------+---------------------------------+-------------+-------------+
| Gain on bargain acquisition | | | (1,805,067) |
+---------------------------------+---------------------------------+-------------+-------------+
| | | | |
+---------------------------------+---------------------------------+-------------+-------------+
| Satisfied by | | | |
+---------------------------------+---------------------------------+-------------+-------------+
| Cash | | | 1,200,000 |
+---------------------------------+---------------------------------+-------------+-------------+
| Deferred consideration | | | 300,000 |
+---------------------------------+---------------------------------+-------------+-------------+
| Transaction costs | | | 338,773 |
+---------------------------------+---------------------------------+-------------+-------------+
| | | | |
+---------------------------------+---------------------------------+-------------+-------------+
| | | | 1,838,773 |
+---------------------------------+---------------------------------+-------------+-------------+
| | | | |
+---------------------------------+---------------------------------+-------------+-------------+
| Net cash outflows in respect of | | | |
| the acquisition comprised: | | | |
+ +---------------------------------+-------------+-------------+
| | | | |
+---------------------------------+---------------------------------+-------------+-------------+
| Cash at bank and in hand | | | - |
| acquired | | | |
+---------------------------------+---------------------------------+-------------+-------------+
| Cash consideration paid | | | 1,200,000 |
+---------------------------------+---------------------------------+-------------+-------------+
| Transaction costs | | | 338,773 |
+---------------------------------+---------------------------------+-------------+-------------+
| | | | |
+---------------------------------+---------------------------------+-------------+-------------+
The Company acquired 100% of the ordinary share capital of MBM Business Systems
Limited ("MBM") for a cash consideration of GBP1,500,000 on 15 September 2009.
The purchase price includes deferred consideration of GBP300,000 payable on 31
August 2010. Costs incurred for this transaction total GBP338,773.
Compliance with IFRS 3 resulted in a related deferred tax liability of
GBP1,417,049. No other assets or liabilities were acquired. The gain on bargain
acquisition of GBP1,805,067 has been reflected in the statement of comprehensive
income in accordance with IFRS 3 'Business combinations' as a separate item. The
revenue and profit of the combined entity for the period as though the
acquisition date for all business combinations effected during the period had
been the beginning of that period has not been disclosed in accordance with IFRS
3 paragraph 70 as it is impractical to do so and would be misleading due to the
reconstruction which took place prior to the acquisition.
11. ANNUAL REPORT
The Annual Report will be sent to shareholders shortly. This announcement and
the Annual Report will be available from the Company's website at
www.snacktime.com. Additional copies of the Annual Report will be made available
to the public, free of charge, from the Company's registered address at 2nd
Floor, west Forest Gate, Wellington Road, Wokingham, Berkshire RG40 2AQ.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR BLGDRLSDBGGR
Uvenco Uk (LSE:UVEN)
Historical Stock Chart
From Oct 2024 to Nov 2024
Uvenco Uk (LSE:UVEN)
Historical Stock Chart
From Nov 2023 to Nov 2024
