TIDMSC.
RNS Number : 4042A
Supercart PLC
30 March 2012
30 March 2012
Supercart Plc
("Supercart" or the "Company")
Interim Results for the six months ended 31 December 2011
Highlights
- Turnover increased by 14.4% to GBP 6.37m (2010: GBP 5.57m)
- Gross profit margins improved to 18.7% compared to 17.7% for
the six months to 31 December 2010
- Operating profits unchanged at GBP 0.1m (2010: GBP 0.1m)
- Pre tax profit of GBP 14,000 (2010: Loss GBP 5,000)
- Net Cash at 31 December 2011 was GBP 528,000 (31 December 2010: GBP 1.25 million)
- Turnover for the six months to 31 December:
2011 2010
GBP'000 GBP'000 change
North America 2,782 2,337 +19%
South Africa 3,550 3,024 +17%
Europe 41 196 -79%
Enquiries:
Supercart Plc 01732 459898
Chief Executive
Mike Wolfe
Charles Stanley Securities 020 7149 6000
Nominated Advisor and Broker
Russell Cook/Carl Holmes
Chairman's Statement
I am pleased to report our interim results which, for the first
time, are in respect of the six month period to 31 December,
following the change of the financial year end. Although, in what
is traditionally our busier trading period, we have achieved a
modest improvement on the equivalent period in 2010, the results
are at a much lower level than we had expected.
Financial Results
Turnover of GBP6.37million (2010: GBP5.57 million) was 14%
higher than the comparative period in 2010 due to good performances
in both North America and South Africa. Gross margins in the six
month period improved to 18.7% for the period (2010: 17.7%). The
operating profit for the period was GBP0.12 million (2010: profit
of GBP0.13 million), and retained profit was GBP14,000 as against a
loss of GBP5,000 for the equivalent six months of 2010.
As at 31 December 2011 the Company had cash reserves of GBP0.53
million (2010: GBP1.25 million) and trade and other receivables of
GBP2.41 million (2010: GBP1.86 million). Management continues to
keep strict control on overheads, and further cost reduction
measures have been implemented since the start of January to
reflect the current level of trading activity. Nevertheless the
Directors are considering further equity and debt funding
arrangements to provide the Company with additional working capital
sufficient to meet its anticipated requirements over the coming
months. The Board expects to be in a position to announce further
details shortly.
Operational Review
North America
Across the range of our North American product range, unit sales
of trolleys increased by 2% over the same period in 2010, while
average unit retail prices increased by over 15%, resulting in an
increase in revenue of 19%. During this period, as announced in our
annual report and accounts, we have seen a significant increase in
the unit sales of our all plastic trolleys to approximately 25% of
North American sales.
Continued careful cost management has assisted us in achieving
an increase in gross profit by over 120%. Also assisted by our
continued expense control, North America showed a profit before tax
for the first time for a six month reporting period.
Production in the first half was impacted, to a limited extent,
by some production problems with our US manufacturing partner but
these have been addressed and we are confident that these issues
have now been resolved with no ongoing impact or cost to the
Company.
South Africa
Supercart continues to sell its comprehensive product range
across the full spectrum of grocery retailers. Unit sales showed an
8% increase over the same period in 2010 which, together with
average unit retail price increases of 9% has resulted in a total
revenue increase of 17% over the same six month period in 2010.
Sales increases of the Grocer 160 litre and Nexus 135 litre
trolleys are reasonable but the larger Excel 200 litre trolley
continues to make excellent double digit increases so that it now
represents over 50% of our basic Grocer product sales in the
period.
In sterling terms, our profit in South Africa has been adversely
affected by the 20% appreciation of the Rand against the Pound.
Europe
Unit sales of the hybrid versions of both the Nexus and Excel
trolleys have been disappointing during the period reflecting a
reduced demand under the distribution agreement with Caddie S.A.,
Costs are low due to the terms of this agreement and thus the
effect on loss before tax is minimal. Caddie S.A. has itself
announced that it is under Court Protection pending a refinancing
of the business. Supercart is monitoring the position closely
Outlook
In South Africa, we hope to see the positive unit sales trend
highlighted above to continue as retailers move up to the larger
capacity and modern designed Excel 200 litre trolley.
European progress has slowed as a result of the reduced retailer
demand in the six months to 31 December 2011. We hope for a better
environment during the current year.
We are working hard to continue the sales growth we are seeing
in North America. It is encouraging to see sales of our all plastic
trolleys continuing to grow in this market. Currently, we are
receiving heightened levels of interest from further retail groups
as a result of this exposure.
Victor Segal
Chairman
6 months 6 months
Consolidated statement ended ended
of comprehensive income 31 December 31 December
for the period 2011 2010
Notes Unaudited Unaudited
GBP'000 GBP'000
Continuing Operations
Revenue 3 6,373 5,569
Cost of sales (5,179) (4,582)
----------------- -----------------
Gross profit 1,194 987
Research & development
tax credits - 33
Administrative expenses (1,074) (892)
----------------- -----------------
Operating profit 120 128
Investment revenue - -
Finance costs (106) (133)
----------------- -----------------
Profit/(loss) before
taxation 14 (5)
----------------- -----------------
Tax - -
Profit/(loss) for the
period attributable
to equity holders of
the parent 14 (5)
================= =================
Earnings / (loss) per
share
Basic and diluted (pence
per share) 4 0.01 (0.01)
As at As at
Consolidated statement 31 December 31 December
of financial position 2011 2010
Unaudited Unaudited
Notes GBP'000 GBP'000
Assets
Non-current assets
Property, plant and
equipment 5 4,802 5,381
Deferred tax asset - -
----------------- -----------------
Total non-current assets 4,802 5,381
Current assets
Inventories 429 470
Trade and other receivables 6 2,411 1,863
Cash and cash equivalents 528 1,254
----------------- -----------------
Total current assets 3,368 3,587
Total Assets 8,170 8,968
================= =================
Equity and Liabilities
Capital and reserves
Issued share capital 594 594
Share premium account 9,073 9,073
Share option reserve 190 183
Foreign currency translation
reserve 43 65
Retained earnings (8,010) (7,588)
----------------- -----------------
Total Equity 1,890 2,327
Non-current liabilities
Finance lease obligations 490 1,151
Other financial liabilities 986 741
Deferred tax liability 30 30
----------------- -----------------
Total non-current liabilities 1,506 1,922
Current liabilities
Trade and other payables 7 3,761 3,903
Finance lease obligations 416 157
Other financial liabilities 597 659
----------------- -----------------
Total current liabilities 4,774 4,719
Total liabilities 6,280 6,641
Total equity and liabilities 8,170 8,968
================= =================
Consolidated statement of changes in equity
for the period ended 31 December 2011
Foreign
Issued Share Share Currency
share premium option Translation Retained Total
capital Account reserve Reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at
1 June
2010 254 7,849 163 65 (7,583) 748
--------------- --------------- --------------- ---------------- -------------- ---------------
Unaudited
loss
to 31
December
2010 - - - - (5) (5)
Issue of 85
million
shares 340 1,360 - - - 1,700
Share issue
costs - (136) - - - (136)
Provision
for
share
options
valuation - - 20 - - 20
Balance at
31
December
2010 594 9,073 183 65 (7,588) 2327
--------------- --------------- --------------- ---------------- -------------- ---------------
Audited
loss
to 30 June
2011 - - - 16 (436) (420)
Provision
for
share
options
valuation - - 7 - - 7
--------------- --------------- --------------- ---------------- -------------- ---------------
Balance at
30 June
2011 594 9,073 190 81 (8,024) 1,914
--------------- --------------- --------------- ---------------- -------------- ---------------
Unaudited
profit
to 31
December
2011 - - - (38) 14 (24)
--------------- --------------- --------------- ---------------- -------------- ---------------
Balance at
31
December
2011 594 9,073 190 43 (8,010) 1,890
--------------- --------------- --------------- ---------------- -------------- ---------------
6 months 6 months
Condensed consolidated ended ended
statement of cash flows 31 December 31 December
for the period 2011 2010
Unaudited Unaudited
GBP'000 GBP'000
Cash flows from operating
activities
Profit/(loss) for period 14 (5)
Depreciation 69 67
Finance expense 106 133
Net foreign exchange
gain 21 27
----------------- -----------------
210 222
----------------- -----------------
Movements in working
capital
(Increase)/decrease in
inventories (17) (13)
(Increase)/decrease in
receivables (890) (732)
Increase/ (decrease)
in payables 1,406 794
----------------- -----------------
Cash used by operations 709 271
----------------- -----------------
Finance costs paid (106) (133)
Net cash used by operating
activities 603 138
----------------- -----------------
Cash flows from investing
activities
Purchase of property, (7) -
plant and equipment
Net cash used in investing (7) -
activities
----------------- -----------------
Cash flows from financing
activities
Proceeds from issue of
share capital - 1,400
Payments for share issue
costs - (136)
Repayment of finance
lease and instalment
sale borrowings (276) (156)
----------------- -----------------
Net cash from financing
activities (276) 1,108
----------------- -----------------
Net increase in cash
and cash equivalents 320 1,246
Cash and cash equivalents
at the beginning of the
period 163 (8)
Effects of exchange rate
changes on the balance
of cash held in foreign
currencies 45 16
-----------------
Cash and cash equivalents
at the end of the period 528 1,254
----------------- -----------------
Notes on the unaudited interim financial information
1. Basis of preparation and significant accounting policies
Basis of preparation
The unaudited condensed financial statements have been prepared
using accounting policies consistent with International Financial
Reporting Standards. The unaudited condensed financial statements
are presented in Sterling and have been prepared under the
historical cost basis.
The Directors are satisfied that the Group has and will maintain
sufficient financial resources to enable it to continue in the
foreseeable future and therefore they continue to adopt the going
concern basis in preparing the unaudited interim financial
statements.
Significant accounting policies
The same accounting policies, presentation and methods of
computation are followed in these unaudited condensed financial
statements as were applied in the preparation of the Group's
financial statements for the period ended 30 June 2011.
As a result of new and revised standards effective after 1(st)
July 2011 there are no significant changes in accounting
policies.
2 Cyclicality of Operations
Operations in the six months to 31 December 2011 are following
usual seasonal trends
3 Segment information
Total
South Other for reportable
USA Africa Europe Segments segments
Six months ended GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
31 December 2011
- unaudited
Total segment
revenues 2,782 3,550 41 - 6,373
Interest expense (29) (53) - - (82)
Depreciation and
amortisation (32) (36) - - (68)
Profit/(loss)
before
tax 82 359 (10) - 431
Non-current
assets
allocated for
the
purposes of
depreciation
and
amortisation
charges 2,044 1,938 - 780 4,762
Total
South Other for reportable
USA Africa Europe Segments segments
Six months ended GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
31 December 2010
- unaudited
Total segment
revenues 2,337 3,024 196 11 5,569
Interest expense (26) (73) - - (99)
Depreciation and
amortisation (31) (35) - - (66)
Profit/(loss)
before
tax (88) 547 (6) (1) 452
Non-current
assets
allocated for
the
purposes of
depreciation
and
amortisation
charges
aaaamortisation
charges 164 2,203 - 670 3,034
--------------------- --------------- ---------------- ------------ ---------------------- --------------------------
Reconciliations 6 months ended 6 months ended
31 December 31 December
2011 2011
Unaudited Unaudited
GBP'000 GBP'000
Total revenues
for
reportable
segments 6,373 5,569
--------------- ---------------- ------------------------------------
Group's revenues 6,373 5,569
--------------- ---------------- ------------------------------------
(i) Group loss
before
tax
Profit before
tax
for trading
segments 431 452
Share-based - -
payment
charges
Head office
costs (417) (457)
--------------- ---------------- ------------------------------------
Profit/(loss)
before
tax 14 (5)
--------------- ---------------- ------------------------------------
(ii) Group
assets
As at 31 As at 31
December December
2011 2010 unaudited
unaudited
GBP'000 GBP'000
Total
non-current
assets
allocated
to trading
segments 4,762 3,322
Head office
non-current
assets 40 2,059
Group
inventories 429 470
Group trade and
other
receivables 2,411 1,863
Group cash and
cash
equivalents 528 1,254
--------------- ---------------- ------------------------------------
3,368 3,587
--------------- ---------------- ------------------------------------
Group assets 8,170 8,968
--------------- ---------------- ------------------------------------
(iii) Other
material
items
Reportable
trading
segment Head office
totals adjustments Group
6 months ended GBP'000 GBP'000 GBP'000
31
December 2011 -
unaudited
Interest expense (82) (24) (106)
Depreciation and
amortisation (68) (1) (69)
--------------- ---------------- ------------------------------------
6 months ended
31
December 2010 -
unaudited
Interest expense (99) (34) (133)
Depreciation and
amortisation (66) (1) (67)
--------------- ---------------- ------------------------------------
The adjustments relate to head office items.
4 Earnings per share
6 months
6 months ended ended
31 December 31 December
2011 2010
Unaudited Unaudited
Profit/(loss) for
the period attributable
to
shareholders (GBP'000) 14 (5)
Weighted average number
of shares
in issue 148,500,000 70,952,055
The profit/loss attributable to ordinary shareholders and
weighted average number of ordinary shares for the purpose of
calculating the diluted loss per ordinary share are identical to
those used for basic loss per ordinary share.
5 Property, plant and equipment
Plant,
Moulds equipment,
under Motor furniture
Moulds construction vehicles and fittings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 January 2011 5,536 35 20 139 5,730
Additions - - - 7 7
Disposals - - (20) - (20)
Translation differences (274) - - - (274)
At 30 June 2011 5,262 35 - 146 5,443
------------ ------------------ -------------- -------------------- ------------
Additions - - - 1 1
Disposals - - - - -
Translation differences (252) - - (9) (261)
------------ ------------------ -------------- -------------------- ------------
At 31 December
2011 5,010 35 - 138 5,183
------------ ------------------ -------------- -------------------- ------------
Accumulated depreciation
At 1 January 2011 229 - 17 103 349
Charge for period 31 - - 5 36
Disposals - - (17) - (17)
Translation differences (18) - - (6) (24)
------------ ------------------ -------------- -------------------- ------------
At 30 June 2011 242 - - 102 344
------------ ------------------ -------------- -------------------- ------------
Charge for period 63 - - 6 69
Disposals - - - - -
Translation differences (34) - - 2 (32)
------------ ------------------ -------------- -------------------- ------------
At 31 December
2011 271 - - 110 381
------------ ------------------ -------------- -------------------- ------------
Net book value
at 31 December
2011 4,739 35 - 28 4,802
============ ================== ============== ==================== ============
Net book value
at 30 June 2011 5,020 35 - 44 5,099
============ ================== ============== ==================== ============
Net book value
at 31 December
2010 5,307 35 3 36 5,381
============ ================== ============== ==================== ============
6 Trade and other receivables
As at As at
31 December 31 December
2011 2010
Unaudited Unaudited
GBP'000 GBP'000
Trade receivables 2,381 1,847
Prepayments and accrued
income 30 16
2,411 1,863
================= =================
7 Trade and other payables
As at As at
31 December 31 December
2011 2010
Unaudited Unaudited
GBP'000 GBP'000
Trade payables 3,332 2,833
Accruals and deferred
income 314 266
Other payables 42 618
Employee benefits 48 37
Taxation and social security 25 149
----------------- -----------------
3,761 3,903
----------------- -----------------
8 Copies of this report will be sent to shareholders shortly and
will be available from the Company's registered office, 3 The Mews,
16 Hollybush Lane, Sevenoaks, Kent TN13 3TH and available to
download from the Company's website www.supercartplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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