TIDMSNAK
RNS Number : 9051V
Snacktime PLC
10 November 2010
SNACKTIME PLC
INTERIM RESULTS FOR THE
6 MONTHS endED 30 september 2010
SnackTime PLC (SNAK.L) one of the UK's largest national operators of snack and
chilled drink vending machines, is pleased to announce its interim results for
the six months ended 30 September 2010.
FINANCIAL HIGHLIGHTS
· Turnover increased by 19% to GBP4.48 million (H1 2009: GBP3.77 million)
· Gross Profit up 27% to GBP2.89 million (H1 2009: GBP2.28 million)
· Profit before tax of GBP201k (H1 2009: GBP809k)
OPERATIONAL HIGHLIGHTS
· Acquisition of Vendia UK makes SnackTime UK's fourth largest vending
company
· Vendia's focus on hot drinks perfectly complements SnackTime's existing
business
· Improved Board structure and creation of operational management team to
support growth
Blair Jenkins, Chief Executive of SnackTime, commented:
"I am delighted with the progress that SnackTime has made in the first six
months of the year, with the acquisition of Vendia creating an entity with
substantial critical mass that will enable us to compete with the major players
in our industry. Our immediate focus is on the integration of the businesses and
ensuring that all of our customers continue to receive the outstanding levels of
service to which they have become accustomed."
For further information:
Snacktime PLC
Blair Jenkins, Chief Executive 0118 977
3344
Tim James, Chief Financial Officer
Arbuthnot Securities
Tom Griffiths
020 7012 2000
Threadneedle Communications
Josh Royston, Terry Garrett 020 7653
9850
CHIEF EXECUTIVE'S STATEMENT
Introduction
SnackTime is pleased to announce another period of growth for the Company. The
first six months of the current year have again proved a transformational period
in the development of the Company. Our existing business continued to increase
its sales and our acquisition of Vendia UK established SnackTime as the UK's
fourth largest vending company by revenue, which is a considerable achievement
given the Company's brief history.
Financial Review
The financial results contain only a limited contribution from the operations of
Vendia UK, as these were only acquired six business days prior to the period
end. Turnover increased by 19% to GBP4.48 million compared to GBP3.77 million
for the same period last year, with gross profit up by 27% to GBP2.89 million
from the previous year's GBP2.28 million. The Company made a profit before tax
of GBP201k.
Acquisition of Vendia UK
On 22 September 2010 the Company acquired the entire issued share capital of
Vendia UK for a maximum consideration of GBP10.98 million of which GBP10.5
million was in the form of shares and warrants. Its expertise in the hot drinks
market perfectly complements our existing snacks and chilled drinks operations
and gives us an extensive footprint throughout the UK and Ireland. The combined
group now has the opportunity to cross sell the existing products of both
businesses into the other's customer base as well as offering an enhanced, total
solution to potential new customers.
We have also identified several cost synergies and are well under way in the
integration of the enlarged business, which we expect to complete by the end of
this financial year. We envisage that the acquisition will be earnings enhancing
in the financial year ending 31 March 2012.
Once fully integrated we believe that the combined operations will also give us
the perfect platform to add significant new business both organically and
through further acquisition. The combined entity will have a level of
infrastructure that will allow us to add either complete operations or on a
piece by piece basis.
Management Changes
As a result of the acquisition, and a reflection of the increased operations of
the Company, I am delighted that we have been able to introduce new key
personnel to the Board and have also introduced a management team befitting a
company of our size. The two new Board members are Tim James who has taken up
the role of Chief Financial Officer and Michiel Slinkert from Vendia who was
appointed as a non-executive Director. Julia Brand and Andy Fisher both stepped
down from the Board to focus on operational duties and Ian Forde has stood down
as an executive director and become a non-executive Director.
Outlook
Our focus for the remainder of the year will be on the successful integration of
Vendia into the existing SnackTime operations, ensuring that all of our
customers continue to receive excellent levels of service. I am delighted that
our new shareholders, whom we welcomed through our acquisition of Vendia, share
our same philosophy and determination to grow SnackTime to a major player in the
UK vending industry, both organically and through further
acquisition.
SNACKTIME PLC
consolidated Statement of comprehensive income
period ended 30 September 2010
+----------+------------------------------+----------+----------------------------+----------------------------+
| | | | Six months | Six months |
| | | | to | to |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | | | 30 September | 30 September |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | | | 2010 | 2009 |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | | | (Unaudited) | (Unaudited) |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | | | GBP | GBP |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | | | | |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | Revenue | | 4,475,583 | 3,772,083 |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | | | | |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | Cost of sales | | (1,586,634) | (1,495,693) |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | | | | |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | Gross profit | | 2,888,949 | 2,276,390 |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | | | | |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | Distribution, administration and | (2,556,947) | (3,166,530) |
| | acquisition integration expenses | | |
+----------+-----------------------------------------+----------------------------+----------------------------+
| | | | | |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | Gain on bargain acquisition | | - | 1,832,361 |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | | | | |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | Operating Profit | | 332,002 | 942,221 |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | | | | |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | Finance income | | 464 | 363 |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | Finance costs | | (131,314) | (133,473) |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | | | | |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | Profit before tax | | 201,152 | 809,111 |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | | | | |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | Income tax expense | | 69,690 | 294,434 |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | | | | |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | Profit for the financial | | 131,462 | 1,103,545 |
| | period | | | |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | | | | |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | Other comprehensive income: | | - | - |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | | | | |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | Total comprehensive income | | 131,462 | 1,103,545 |
| | for the period | | | |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | | | | |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | Basic profit / (loss) per | | 1.21p | 13.75p |
| | share | | | |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | Diluted profit / (loss) | | 0.72p | 12.93p |
| | per share | | | |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | | | | |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | | | | |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | | | | |
+----------+------------------------------+----------+----------------------------+----------------------------+
| | | | | |
+----------+------------------------------+----------+----------------------------+----------------------------+
All of the activities of the company are classed as continuing.
The company has no recognised gains or losses other than the results for the
period as set out above.
Both the profit and the total comprehensive income for the above periods are
attributable in totality to the Equity holders of the Company.
SNACKTIME PLC
consolidated balance sheet
period ended 30 September 2010
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | | 30 | 30 | 31 March |
| | | September | September | |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | | 2010 | 2009 | 2010 |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | | (Unaudited) | (Unaudited) | (Audited) |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | | GBP | GBP | GBP |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | ASSETS | | | |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Non-current assets | | | |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Property, plant and equipment | 8,316,079 | 7,474,863 | 6,999,561 |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Intangible assets | 15,496,779 | - | 2,453,189 |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Deferred tax asset | 301,294 | 2,500,000 | 181,486 |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | | | | |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | | 24,114,152 | 9,974,863 | 9,634,236 |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Current assets | | | |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Inventories | 1,807,978 | 1,018,953 | 882,807 |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Receivables and prepayments | 3,197,807 | 1,284,396 | 1,266,930 |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Cash and cash equivalents | 3,742,333 | 807,894 | 4,647,201 |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | | | | |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | | 8,748,118 | 3,111,243 | 6,796,938 |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | | | | |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | TOTAL ASSETS | 32,862,270 | 13,086,106 | 16,431,174 |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | | | | |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | LIABILITIES | | | |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Current liabilities | | | |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Trade and other payables | (5,361,779) | (2,439,027) | (1,335,450) |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Short term borrowings | (751,000) | (679,443) | - |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Current portion of long-term borrowings | (997,295) | (1,394,115) | (1,116,274) |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | | | | |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | | (7,110,074) | (4,512,585) | (2,451,724) |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Non-current liabilities | | | |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Deferred tax liability | (2,095,892) | (1,117,340) | (905,433) |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Long-term borrowings | (2,858,431) | (1,594,810) | (1,501,287) |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | | | | |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | | (4,954,323) | (2,712,150) | (2,406,730) |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | | | | |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Total liabilities | (12,064,397) | (7,224,735) | (4,858,454) |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | | | | |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Net assets | 20,797,873 | 5,861,371 | 11,572,720 |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | | | | |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | EQUITY | | | |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Called up equity share capital | 218,023 | 149,727 | 218,023 |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Share premium account | 8,347,383 | 3,066,525 | 8,347,383 |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Equity shares to be issued | 6,809,819 | - | - |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Share option and warrant reserve | 2,468,094 | 146,307 | 184,222 |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Capital redemption reserve | 1,274,279 | 1,274,279 | 1,274,279 |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Merger reserve | 116,892 | 116,892 | 116,892 |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Equity element of compound financial instrument | 65,810 | 65,810 | 65,810 |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | Retained earnings | 1,497,573 | 1,041,831 | 1,366,111 |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | | | | |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
| | TOTAL EQUITY | 20,797,873 | 5,861,371 | 11,572,720 |
+------------------------+-------------------------------------------------+--------------------+-------------------+-------------------+
SNACKTIME PLC
consolidated cashflow statement
period ended 30 September 2010
+----------+------------------------------------------+----------------------+------------------------+
| | | Six months | Six months |
| | | to | to |
+----------+------------------------------------------+----------------------+------------------------+
| | | 30 | 30 |
| | | September | September |
+----------+------------------------------------------+----------------------+------------------------+
| | | 2010 | 2009 |
+----------+------------------------------------------+----------------------+------------------------+
| | | (Unaudited) | (Unaudited) |
+----------+------------------------------------------+----------------------+------------------------+
| | | GBP | GBP |
+----------+------------------------------------------+----------------------+------------------------+
| | Cash flows from operating activities | | |
+----------+------------------------------------------+----------------------+------------------------+
| | Profit after taxation | 131,462 | 1,103,545 |
+----------+------------------------------------------+----------------------+------------------------+
| | | | |
+----------+------------------------------------------+----------------------+------------------------+
| | Adjustments for: | | |
+----------+------------------------------------------+----------------------+------------------------+
| | Depreciation | 547,272 | 367,748 |
+----------+------------------------------------------+----------------------+------------------------+
| | Amortisation | 85,015 | - |
+----------+------------------------------------------+----------------------+------------------------+
| | Gain on bargain acquisition | - | (1,832,361) |
+----------+------------------------------------------+----------------------+------------------------+
| | Finance income | (464) | (363) |
+----------+------------------------------------------+----------------------+------------------------+
| | Finance costs | 131,314 | 133,473 |
+----------+------------------------------------------+----------------------+------------------------+
| | IFRS 2 share option charge | 47,742 | 36,106 |
+----------+------------------------------------------+----------------------+------------------------+
| | Taxation expense recognised in profit | 69,690 | (294,434) |
| | and loss | | |
+----------+------------------------------------------+----------------------+------------------------+
| | Increase in trade and other | (674,159) | (297,382) |
| | receivables | | |
+----------+------------------------------------------+----------------------+------------------------+
| | (Decrease)/ Increase in trade and | (812,478) | 1,390,143 |
| | other payables | | |
+----------+------------------------------------------+----------------------+------------------------+
| | (Decrease)/ Increase in inventories | 338,111 | (85,750) |
+----------+------------------------------------------+----------------------+------------------------+
| | | | |
+----------+------------------------------------------+----------------------+------------------------+
| | Cash generated from operations | (136,495) | 520,725 |
+----------+------------------------------------------+----------------------+------------------------+
| | | | |
+----------+------------------------------------------+----------------------+------------------------+
| | Interest paid | (131,314) | (133,473) |
+----------+------------------------------------------+----------------------+------------------------+
| | | | |
+----------+------------------------------------------+----------------------+------------------------+
| | Net cash from operating activities | (267,809) | 387,252 |
+----------+------------------------------------------+----------------------+------------------------+
| | | | |
+----------+------------------------------------------+----------------------+------------------------+
| | Cash flows from investing activities | | |
+----------+------------------------------------------+----------------------+------------------------+
| | Purchase of property, plant and | (47,289) | (237,783) |
| | equipment | | |
+----------+------------------------------------------+----------------------+------------------------+
| | Cash flows from acquisitions net of cash | (649,000) | (1,039,161) |
| | acquired | | |
+----------+------------------------------------------+----------------------+------------------------+
| | Interest received | 464 | 363 |
+----------+------------------------------------------+----------------------+------------------------+
| | | | |
+----------+------------------------------------------+----------------------+------------------------+
| | Net cash used in investing activities | (695,825) | (1,276,581) |
+----------+------------------------------------------+----------------------+------------------------+
| | | | |
+----------+------------------------------------------+----------------------+------------------------+
| | Cash flows from financing activities | | |
+----------+------------------------------------------+----------------------+------------------------+
| | Proceeds from issue of loan notes | - | 1,000,000 |
+----------+------------------------------------------+----------------------+------------------------+
| | Payments of long-term borrowings | (364,668) | (45,405) |
+----------+------------------------------------------+----------------------+------------------------+
| | Payments of finance lease liabilities | (283,064) | (375,030) |
+----------+------------------------------------------+----------------------+------------------------+
| | | | |
+----------+------------------------------------------+----------------------+------------------------+
| | Net cash used in financing activities | (647,732) | 579,565 |
+----------+------------------------------------------+----------------------+------------------------+
| | | | |
+----------+------------------------------------------+----------------------+------------------------+
| | Net decrease in cash and cash | (1,611,366) | (309,764) |
| | equivalents | | |
+----------+------------------------------------------+----------------------+------------------------+
| | | | |
+----------+------------------------------------------+----------------------+------------------------+
| | Cash and cash equivalents at beginning | 4,602,699 | 1,115,216 |
| | of period | | |
+----------+------------------------------------------+----------------------+------------------------+
| | | | |
+----------+------------------------------------------+----------------------+------------------------+
| | Cash and cash equivalents at end of | 2,911,333 | 805,452 |
| | period | | |
+----------+------------------------------------------+----------------------+------------------------+
SNACKTIME PLC
consolidated statement of changes in equity
period ended 30 September 2010
+----------------+---------+-----------+-----------+----------+---------+------------+---------+-----------+-----------+
| | | | Equity | Equity | Share | Capital | Merger | Retained | Total |
| | | | element | shares | option | | reserve | earnings | equity |
| | | | of | to be | & | redemption | | | |
| | | | compound | issued | warrant | reserve | | | |
| | | | financial | | reserve | | | | |
+----------------+---------+-----------+ + + + + + + +
| | Share | Share | | | | | | | |
| | capital | premium | | | | | | | |
+----------------+ + + + + + + + + +
| | | | | | | | | | |
+----------------+---------+-----------+-----------+----------+---------+------------+---------+-----------+-----------+
| | GBP | GBP | GBP | GBP | GBP | GBP | GBP | GBP | GBP |
+----------------+---------+-----------+-----------+----------+---------+------------+---------+-----------+-----------+
| | | | | | | | | | |
+----------------+---------+-----------+-----------+----------+---------+------------+---------+-----------+-----------+
| Balance at 1 | 149,727 | 3,066,525 | 65,810 | - | 110,202 | 1,274,279 | 116,892 | (61,714) | 4,721,721 |
| April 2009 | | | | | | | | | |
+----------------+---------+-----------+-----------+----------+---------+------------+---------+-----------+-----------+
| | | | | | | | | | |
+----------------+---------+-----------+-----------+----------+---------+------------+---------+-----------+-----------+
| Profit for the | - | - | - | - | - | - | - | 1,103,545 | 1,103,545 |
| period | | | | | | | | | |
+----------------+---------+-----------+-----------+----------+---------+------------+---------+-----------+-----------+
| | | | | | | | | | |
+----------------+---------+-----------+-----------+----------+---------+------------+---------+-----------+-----------+
| Share options | - | - | - | - | 36,105 | - | - | - | 36,105 |
| expense | | | | | | | | | |
+----------------+---------+-----------+-----------+----------+---------+------------+---------+-----------+-----------+
| | | | | | | | | | |
+----------------+---------+-----------+-----------+----------+---------+------------+---------+-----------+-----------+
| Issue of share | - | - | - | - | - | - | - | - | - |
| capital | | | | | | | | | |
+----------------+---------+-----------+-----------+----------+---------+------------+---------+-----------+-----------+
| | | | | | | | | | |
+----------------+---------+-----------+-----------+----------+---------+------------+---------+-----------+-----------+
| Balance at | 149,727 | 3,066,525 | 65,810 | - | 146,307 | 1,274,279 | 116,892 | 1,041,831 | 5,861,371 |
+----------------+---------+-----------+-----------+----------+---------+------------+---------+-----------+-----------+
| 30 September | | | | | | | | | |
| 2009 | | | | | | | | | |
+----------------+---------+-----------+-----------+----------+---------+------------+---------+-----------+-----------+
| | | | | | | | | | |
+----------------+---------+-----------+-----------+----------+---------+------------+---------+-----------+-----------+
| | | | | | | | | | |
+----------------+---------+-----------+-----------+----------+---------+------------+---------+-----------+-----------+
SNACKTIME PLC
consolidated statement of changes in equity
period ended 30 September 2010
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| | | | Equity | Equity | Share | Capital | Merger | Retained | Total |
| | | | element | shares | option | | | | equity |
| | | | of | to be | & | redemption | reserve | earnings | |
| | | | compound | issued | warrant | reserve | | | |
| | | | financial | | reserve | | | | |
+--------------+---------+-----------+ + + + + + + +
| | Share | Share | | | | | | | |
| | | premium | | | | | | | |
| | capital | | | | | | | | |
+--------------+ + + + + + + + + +
| | | | | | | | | | |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| | GBP | GBP | GBP | GBP | GBP | GBP | GBP | GBP | GBP |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| Balance at | | | | | | | | | |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| 30 September | 149,727 | 3,066,525 | 65,810 | - | 146,307 | 1,274,279 | 116,892 | 1,041,831 | 5,861,371 |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| 2009 brought | | | | | | | | | |
| forward | | | | | | | | | |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| | | | | | | | | | |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| Profit for | - | - | - | - | - | - | - | 324,280 | 324,280 |
| the period | | | | | | | | | |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| | | | | | | | | | |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| Issue of | 68,296 | 5,736,864 | - | - | - | - | - | - | 5,805,160 |
| share | | | | | | | | | |
| capital | | | | | | | | | |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| | | | | | | | | | |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| Share | - | - | - | - | 37,915 | - | - | - | 37,915 |
| options | | | | | | | | | |
| expense | | | | | | | | | |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| | | | | | | | | | |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| Costs of | - | (456,006) | - | - | - | - | - | - | (456,006) |
| share issue | | | | | | | | | |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| | | | | | | | | | |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| Balance at | 218,023 | 8,347,383 | 65,810 | - | 184,222 | 1,274,279 | 116,892 | 1,366,111 | 11,572,720 |
| 31 March | | | | | | | | | |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| 2010 | | | | | | | | | |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| | | | | | | | | | |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| Profit for | - | - | - | - | - | - | - | 131,462 | 131,462 |
| the period | | | | | | | | | |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| | | | | | | | | | |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| Share | - | - | - | - | 47,742 | - | - | - | 47,742 |
| options | | | | | | | | | |
| expense | | | | | | | | | |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| | | | | | | | | | |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| Vendia | - | - | - | 6,809,819 | 2,236,130 | - | - | - | 9,045,949 |
| acquisition | | | | | | | | | |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| | | | | | | | | | |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| | | | | | | | | | |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| Balance at | 218,023 | 8,347,383 | 65,810 | 6,809,819 | 2,468,094 | 1,274,279 | 116,892 | 1,497,573 | 20,797,873 |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
| 30 September | | | | | | | | | |
| 2010 | | | | | | | | | |
+--------------+---------+-----------+-----------+-----------+-----------+------------+---------+-----------+------------+
SNACKTIME PLC
NOTES TO THE interim FINANCIAL STATEMENTS
period ended 30 september 2010
General Information
The Company was incorporated on 5 March 2007 and on 22 November 2007 the Group
underwent a reconstruction in which SnackTime UK Limited (formerly SnackTime
Limited), a Company registered in England and Wales, was included in the Group.
The combination was accounted for using the merger method of accounting. Group
reconstructions fall outside the scope of International Financial Reporting
Standard Number 3 'Business Combinations' therefore the accounts were prepared
using the guidance contained with Financial Reporting Standard 6 'Acquisitions
and Mergers'.
The principal activity of the Group is the installation and operation of snack
vending machines.
Basis of accounting
These interim financial statements for the period ended 30 September 2010 have
been prepared in accordance with International Financial Reporting Standards
(IFRS). The Group financial statements of SnackTime plc consolidate the
financial statements of SnackTime plc, SnackTime UK Limited and from the
acquisition date Snack in The Box Limited (formerly known as MBM Business
Systems Limited) and Vendia UK Limited.
All companies in the Group use sterling as presentational and functional
currency.
The information presented within these interim financial statements is in
compliance with IAS 34 'Interim Financial Reporting'. This requires the use of
certain accounting estimates and requires that management exercise judgement in
the process of applying the Company's accounting policies. The areas involving a
high degree of judgement or complexity, or areas where the assumptions and
estimates are significant to the interim financial statements are disclosed
below.
Snacktime UK Limited has elected not to apply IFRS 3, Business Combinations
retrospectively to past business combinations prior to the date of transition.
The financial information contained in this report, which has not been audited,
does not constitute statutory accounts as defined by Section 434 of the
Companies Act 2006. The Company's statutory financial statements for the year
ended 31 March 2010, prepared under IFRS have been filed with the Registrar of
Companies. The auditors' report for the 2010 financial statements was
unqualified and did not contain a statement under Section 498 (2) or (3) of the
Companies Act 2006
SNACKTIME PLC
NOTES TO THE interim FINANCIAL STATEMENTS
period ended 30 september 2010
Critical accounting estimates and judgements
Estimates and judgements are continually evaluated and are based on historical
experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. The Group makes estimates and
assumptions concerning the future. The principal areas where judgement was
exercised are as follows:
? As detailed below Snacktime Plc acquired Vendia UK Limited during the year.
In accordance with IFRS 3 'Business Combinations' the Directors have had to fair
value the assets and liabilities acquired. This requires the Directors to
estimate the fair value of the acquired assets and liabilities at the date of
acquisition, including intangible assets.
? Property, plant and equipment includes the value of the vending machine
estate. The Directors annually assess both the residual value of these assets
and the expected useful life of such assets.
? The Directors have estimated the useful economic lives of intangible assets.
The economic lives and the amortisation rates are reviewed annually by the
Directors.
? The Group receives branding fees to contribute to the installation and
refurbishment of vending machines. The Directors are required to assess the
amounts receivable at each reporting date and whether all the conditions have
been met to enable these to be recognised.
? Sales from vending machines are recognised at the point of sale to the
customer. At each year end, the Directors are required to make an estimate of
sales where the vending machine has not been emptied or inspected at the
year-end date.
? The convertible loan notes have been split between the debt and equity
element in accordance with IAS 32. This requires calculating the present value
of the debt element with an effective interest rate of 12%. 12% was assumed to
be an effective interest rate that would be charged on a similar loan by a third
party.
? Share based payment valuations are based upon a Black-Scholes based model
which requires various assumptions to be made.
REVENUE
The revenue for the Group for the current year arose from the installation and
operation of snack vending machines. The Board of Directors regards the
Company's operations as one single operating unit for its primary reporting
segment, namely the sale of snack items, and its secondary reporting segment as
the geographical region in which the Company operates, being located wholly
within the United Kingdom.
SNACKTIME PLC
NOTES TO THE interim FINANCIAL STATEMENTS
period ended 30 september 2010
EARNINGS PER SHARE
Earnings per share is calculated on the basis of profit for the period after
tax, divided by the weighted average number of shares in issue for the period
ended 30 September 2010 of 10,901,159 (30 September 2009 - 8,028,145).
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. Potential dilutive ordinary shares arise from share
options and warrants. 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.
SNACKTIME PLC
NOTES TO THE interim FINANCIAL STATEMENTS
period ended 30 september 2010
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 | 1,605,000 | 211,500 | 1,816,500 |
+---------------------------------+---------------------------------+------------+-------------+
| Intangible fixed assets - | - | 1,116,087 | 1,116,087 |
| customer base | | | |
+---------------------------------+---------------------------------+------------+-------------+
| | | | |
+---------------------------------+---------------------------------+------------+-------------+
| Current assets | 2,922,000 | - | 2,922,000 |
+---------------------------------+---------------------------------+------------+-------------+
| | | | |
+---------------------------------+---------------------------------+------------+-------------+
| Total assets | 4,527,000 | 1,327,587 | 5,854,587 |
+---------------------------------+---------------------------------+------------+-------------+
| | | | |
+---------------------------------+---------------------------------+------------+-------------+
| Current liabilities | (5,929,607) | - | (5,929,657) |
+---------------------------------+---------------------------------+------------+-------------+
| | | | |
+---------------------------------+---------------------------------+------------+-------------+
| Net current liabilities | (3,007,607) | - | (3,007,657) |
+---------------------------------+---------------------------------+------------+-------------+
| | | | |
+---------------------------------+---------------------------------+------------+-------------+
| Non current liabilities | (1,915,000) | - | (1,915,000) |
+---------------------------------+---------------------------------+------------+-------------+
| | | | |
+---------------------------------+---------------------------------+------------+-------------+
| Deferred tax on non current | (105,000) | (371,500) | (476,500) |
| assets | | | |
+---------------------------------+---------------------------------+------------+-------------+
| | | | |
+---------------------------------+---------------------------------+------------+-------------+
| Net assets | (3,422,607) | 956,087 | (2,466,570) |
+---------------------------------+---------------------------------+------------+-------------+
| | | | |
+---------------------------------+---------------------------------+------------+-------------+
| Goodwill* | | | 12,012,519 |
+---------------------------------+---------------------------------+------------+-------------+
| | | | |
+---------------------------------+---------------------------------+------------+-------------+
| | | | 9,545,949 |
+---------------------------------+---------------------------------+------------+-------------+
| Satisfied by | | | |
+---------------------------------+---------------------------------+------------+-------------+
| Shares | | | 6,809,819 |
+---------------------------------+---------------------------------+------------+-------------+
| Deferred consideration | | | 500,000 |
+---------------------------------+---------------------------------+------------+-------------+
| Warrants | | | 2,236,130 |
+---------------------------------+---------------------------------+------------+-------------+
| | | | |
+---------------------------------+---------------------------------+------------+-------------+
| | | | 9,545,949 |
+---------------------------------+---------------------------------+------------+-------------+
| | | | |
+---------------------------------+---------------------------------+------------+-------------+
| Net cash outflows in respect of | | | |
| the acquisition comprised: | | | |
+ +---------------------------------+------------+-------------+
| | | | |
+---------------------------------+---------------------------------+------------+-------------+
| Cash at bank and in hand | | | 402,000 |
| acquired | | | |
+---------------------------------+---------------------------------+------------+-------------+
| Bank overdraft acquired | | | (751,000) |
+---------------------------------+---------------------------------+------------+-------------+
| Cash consideration paid | | | - |
+---------------------------------+---------------------------------+------------+-------------+
| | | | (349,000) |
+---------------------------------+---------------------------------+------------+-------------+
SNACKTIME PLC
NOTES TO THE interim FINANCIAL STATEMENTS
period ended 30 september 2010
ACQUISITION (CONTINUED)
*The goodwill arising on consolidation represents the future synergies and
growth potential of Vendia UK as part of the group and its assembled workforce.
These fair values are still preliminary due to the close proximity of the
acquisition date to the period end and will be finalised during the financial
year.
Snacktime Plc acquired the entire issued share capital of Vendia UK on 22
September 2010, for a maximum consideration of GBP10.98 million. Snacktime Plc
expects the Acquisition to be earnings enhancing in the year ending 31 March
2012.
Vendia UK's core operation is a traditional vending business specialising in the
sale of hot beverages, which complements SnackTime's confectionery and chilled
drinks operations. Vendia trades under brands such as Simply Drinks in London,
Integer in the Midlands, VMI in the north of England and Drinkmaster, a national
table top and in cup specialist company, based in Plymouth.
For the year ended 31 December 2009, Vendia UK reported audited revenues of
GBP19.7 million and adjusted EBITDA under IFRS of GBP2.1 million.
The consideration payable to the vendors of Vendia UK comprises:
· 5,447,855 new ordinary shares of 2p each in the Company ("New Ordinary
Shares"), which will represent 29.9 per cent. Of Snacktime Plc's enlarged share
capital following completion of the Acquisition. The New Ordinary Shares are the
subject of lock-in arrangements for 24 months from issue, and Vendia UK's major
shareholder has agreed to a lock in of a further 12 months;
· 1,816,557 million warrants exercisable into new ordinary shares of 2p
each in the Company ("Warrants"), exercisable at a price of 2p per share,
further details of which are set out below; and
· Deferred consideration of GBP0.5 million in cash, payable in two tranches
of GBP250,000 on 31 December 2010 and 30 June 2011.
Snacktime Plc will also assume term debt of approximately GBP2.4 million with
Co-Operative Bank plc as part of the Acquisition.
The New Ordinary Shares will when issued rank pari passu with the Company's
existing ordinary shares of 2p each.
The Warrants cannot be exercised for a period of three years from the date of
issue, nor at any time thereafter if doing so would breach the AIM Rules for
Companies, be in contravention of the Companies Act 2006 or result in the
holder(s) having to make an offer for the Company pursuant to Rule 9 of the City
Code on Takeovers and Mergers (the "City Code"). If any of these situations were
to arise, the Warrants would be exchanged for Convertible Unsecured Loan Notes
("CULs") which would not pay any interest and could not be converted for ten
years from their issue, nor at any time thereafter if doing so would result in
the holder(s) having to make an offer for the Company pursuant to Rule 9 of the
City Code, in which case the CULs would be exchanged for loan notes which would
not pay any interest
Copies of this half yearly financial report are available on the Company's
website www.snacktimeplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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