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29 Feb 2012 07:00
SnackTime plc
("SnackTime" or the "Company")
Trading statement
SnackTime PLC (AIM: SNAK), the third largest vending company in the British Isles, today releases the following trading statement regarding the year ending 31 March 2012.
The Company had a very promising sales order book in the autumn and therefore expected a strong second half of the year in both machine sales and resultant coinage revenue through machines. Unfortunately, it has proved difficult to convert these expected orders into firm contracts. As a result, both machine sales and coinage revenue from resultant throughputs for the year ending 31 March 2012 are expected to be below market expectations. These adverse effects are primarily felt within the Company's VMI vending division. The impact of these two factors on the Company's profit, combined with some unplanned rises in costs in the Company's Snack in the Box franchise division, will result in the Company's results for the year ending 31 March 2012 being materially below market expectations.
The integration of the Vendia businesses acquired in October 2010 is now complete, resulting in the total workforce being reduced by 136, including the rationalisation of warehouses, finance functions, installation, refurbishment centres and middle and senior management. The benefits of SnackTime's recent integration and rationalisation work will have a full impact in the year ending 31 March 2013.
The Board is confident that FY2013 will show an improvement in performance and profitability, despite the current economic climate. The Company remains within its banking covenants and currently has in excess of £2m of unused facilities.
For further information please contact:
SnackTime plc | T: 0118 977 3344 |
Blair Jenkins, Chief Executive | |
Tim James, Finance Director |
Westhouse Securities Limited | T: 020 7601 6100 |
Tom Griffiths |
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