Uvenco Uk Regulatory News (UVEN)

SnackTime plc

15 February 2013

Trading Update

SnackTime PLC ("SnackTime" or the "Company") (AIM: SNAK), the third largest vending company in the British Isles, today releases the following trading update regarding the year ending 31 March 2013.

The Company has made considerable progress in its turnaround over the last 6 months, despite tough market conditions. However, the Company's trading performance since release of its half year announcement in November 2012 has fallen significantly short of market expectations for three key reasons:

·; Sales and margin at its subsidiary VMI, have fallen short of expectations and whilst reasonably stable, a recovery before the end of this financial year now looks unlikely.

·; The revised routing plan at VMI has been implemented with cost savings beginning to show through. However, the process took longer to complete than had been expected and in particular the ancillary cost savings around vehicle leases will not materialise until the next financial year due to contract terms.

·; We have changed our accounting policy in relation to recognition of brand support income to a more prudent approach than in prior years.

We are pleased to report continuing progress in reducing costs, with decisions implemented over £1m of overhead savings coming out of the business. The old Head Office has been closed, as has the VMI warehouse in Warrington and the necessary transfer of staff and stock completed. Furthermore, sales have stabilised in 3 of our 4 divisions.

In August 2012, cognisant that the Company might breach one of the covenants of its banking facility in December 2012, we approached our bank with a request to extend the term of our loan and revise our banking covenants. Discussions are still ongoing and expected to conclude before the end of March 2013. The Company is operating within its facilities and is confident of a satisfactory outcome to these discussions.

The Company is in discussions with certain of its larger shareholders regarding the proposed issue of £800k of five year convertible loan notes to provide funds for the Company. Terms of the issue have still to be finalised and no agreements are in place, however Elderstreet VCT plc, a 14% shareholder in the Company, has indicated its willingness, in principle, to subscribe for up to 50% of the issue and management have indicated that they will also participate. The Company expects to be in a position to make a further announcement in due course.

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