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30 September 2008

Supercart plc

('Supercart' or the 'Company')

 

Mike Wolfe, Chief Executive, commenting on the results said:

'I continue to be encouraged with growth in our South African core market and I believe that we are well positioned with good product in our main North American and European markets. 

With the introduction, later this year, of our seventh trolley world-wide, which will be sold into the South African and European markets, I believe that Supercart remains well positioned with a unique range of products that meet the growing world retailer demand for recyclable and recycled commodities to satisfy their corporate social responsibility goals.'

Enquiries:

Mike Wolfe, CEO Supercart plc                                                                           01732 459898

Russell Cook, Charles Stanley Securities (Nominated Adviser)                         020 7149 6000

  Chairman's Statement

Progress in the first half of the current year has been steady. Revenues have risen and despite higher oil prices, we have increased our margins on product sales. Revenues are still driven by our operations in South Africa as the Company continues to strive to make a significant breakthrough in the main target markets of North America and Europe, which hopefully is becoming ever closer.

Financial Results

Turnover of £1,032,000 (2007 - £822,000) was 26% higher than the comparative period in 2007 primarily due to our continuing strong performance in South Africa. While gross margins rose from 16.7% to 22.6% the operating loss for the period increased to £725,000 (2007 - £578,000). This was as a result, primarily, of increased marketing and selling costs in North America and Europe, incurred in readiness for our new products. Losses before tax were £724,000 (2007: £593,000).

The Company continues to control carefully its operating cost base to optimise its cash resources. The Company maintained a positive cash balance of £469,000 at 30 June 2008 (2007 - £552,000). 

Our 30 litre hand basket continues its high levels of acceptance across all of the retail groups and is selling at significantly increased levels from 2007.

Our store tests in France have been successful thus far, and we have recently received a further order from one of the retailers concerned.  We are also following up interest in the Nexus in both Spain and Germany.

Manufacturing costs

Although the price of raw material resins has increased by up to 25% in the last 12 months, world steel prices have increased even more significantly by up to 100% over this period. With the high capital cost and introductory lead time for each of our trolleys, our cost base has always been higher than our competitors' metal products. However, with the dramatic rise in the cost of steel, our products are beginning to become increasingly competitive. 

Product development

We have completed successfully the off tool trials of our latest trolley, the 'Excel 200' which will serve the South African and European markets. In Europe it will meet the demand of the retailers who want a trolley size between our current 145 litre Nexus and the 225 litre Hyper. With final mould commercialisation work happening in South Africa through to the end of October, we anticipate that sales of the Excel 200 will commence in South Africa at the end of 2008 and in Europe in early 2009.

Outlook

The final quarter is traditionally the strongest part of our year. With our extended product range, and our new and ongoing sales initiatives, we are expecting progress in our markets during the second half of 2008.

  

Condensed consolidated income statement for the period			6 months  ended  30 June  2008	6 months  ended  30 June  2007	12 months ended  31 December 2007
			Unaudited	Unaudited	Audited
			£'000	£'000	£'000
Continuing Operations	Notes
Revenue			1,032	822	3,342
Cost of Sales			(799)	(685)	(2,699)
Gross Profit			233	137	643
Administrative expenses			(958)	(715)	(1,533)
Operating loss			(725)	(578)	(890)
Investment revenue			17	16	31
Finance Costs			(16)	(31)	(53)
Loss before taxation			(724)	(593)	(912)
Tax			0	0	(17)
Loss for the period attributable to equity holders of the parent			(724)	(593)	(929)
Loss per share (pence)
Basic and fully diluted	3		(1.67)	(1.67)	(2.59)

  

Condensed consolidated balance sheet			As at  30 June  2008	As at   30 June  2007	As at  31 December 2007
			Unaudited	Unaudited	Audited
			£'000	£'000	£'000
	Notes
Assets
Non-current assets
Intangible assets			-	-	4
Property, plant and equipment	4		2,227	1,187	1,821
Deferred tax asset					6
			2,227	1,187	1,831
Current assets
Inventories			120	65	85
Trade and other receivables	5		449	335	1,185
Cash and cash equivalents			469	552	1,748
			1,038	952	3,018
Total Assets			3,265	2,139	4,849
Equity and Liabilities
Capital and reserves
Issued share capital			174	142	174
Share premium account			5,585	4,057	5,585
Share option reserve			152	75	122
Foreign currency translation reserve			(254)	0	(148)
Retained earnings			(4,241)	(3,053)	(3,517)
Total Equity			1,416	1,221	2,216
Non-current liabilities			974	284	837
Current liabilities	6		874	634	1,796
Total liabilities			1,848	918	2,633
Total equity and liabilities			3,265	2,139	4,849

              Condensed Statement of changes in equity

		Issued share capital	Share premium Account	Share option reserve	Foreign Currency Translation Reserve	Retained earnings	Total equity
		£'000	£'000	£'000	£'000	£'000	£'000
At 1 January 2007		142	4,057	75	(146)	(2,314)	1,814
Loss for six months to 30 June 2007		-	-	-		(593)	(593)
Share issue costs
Provision for share options valuation
Exchange differences arising on translation of foreign operations.	-		-	-		-	-
Balance at 30 June 2007	142		4,057	75	(146)	(2,907)	1,221
Loss for six months to 31 December 2007	-		-	-	-	(336)	(289)
Issue of 8 million shares	32		1,568	-	-	-	1,560
Share issue costs			(40)	-	-
Provision for share options valuation				47	-
Exchange differences arising on translation of foreign operations.	-		-	-	(2)	-	(2)
Balance at 31 December 2007	174		5,585	122	(148)	(3,517)	2,216
Loss for six months to 30 June 2008	-		-	30	(106)	(724)	(800)
Share issue costs
Provision for share options valuation
Exchange differences arising on translation of foreign operations.	-		-	-	-	-	-
Balance at 30 June 2008	174		5,585	152	(254)	(4,241)	1,416

  

Condensed consolidated cash flow statement for the period			6 months  ended  30 June  2008	6 months  ended  30 June  2007	12 months ended  31 December 2007
			Unaudited	Unaudited	Audited
			£'000	£'000	£'000
Cashflow from operating activities
Loss for period			(724)	(593)	(929)
Income tax expense			-	-	17
Depreciation			38	8	37
Amortisation			-	7	-
Loss on disposal of fixed asset			-	-	(4)
Share based payment charges			-	23	47
Interest income			(17)	(16)	(31)
Interest expense			16	31	53
Reversal of impairment			-	-	(1)
Net foreign exchange gain			-	-	(2)
			(687)	(540)	(813)
Movements in working capital
(Increase)/decrease in inventories			(37)	(54)	(74)
(Increase)/Decrease in trade and other  receivables			566	640	(197)
Increase/ (Decrease) in payables			(506)	(421)	605
Cash used by operations			(664)	(375)	(479)
Finance cost			(16)	(31)	(53)
Tax received			-	-	62
Net cash from operating activities			(680)	(406)	(470))
Cashflows from investing activities
Purchase of property, plant and equipment			(585)	(124)	(393)
Interest received			17	16	31
Net cash used in investing activities			(569)	(109)	(362)
Cashflows from financing activities
Proceeds from issue of share capital			-	-	1,560
Repayment of finance lease and instalment sale borrowings			(81)	(78)	(131)
Net cash (used in)/from financing activities			(81)	(78)	1,429
Net (decrease)/increase in cash and cash equivalents			(1330)	(593)	597
Effects of exchange rate changes			51	(2)	4
Cash and cash equivalents at the beginning of the period			1,748	1,147	1,147
Cash and cash equivalents at the end of the  period			469	552	1,748

  Notes on the unaudited interim financial information

 

1.    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 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 year ended 31 December 2007.

 

2.    Cyclicality of Operations

 

       Operations in the six months to 30 June 2008 are following usual seasonal trends 

 

3.    Loss per share

			6 months ended  30 June 2008	6 months  ended  30 June 2007	12 months  ended  31 December 2007
			Unaudited	Unaudited	Audited
	Loss for the period attributable to  shareholders (£'000)		(724)	(593)	(929)
	Weighted average number of shares  in issue		43,500,000	35,500,000	35,806,849

The losses 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. This is because the exercise of share options would have the effect of reducing the loss per ordinary share and is therefore not dilutive under the terms of IAS 33.

  

4.   Property, plant and equipment

			Trolley Moulds	Moulds including those under construction	Motor vehicles	Plant, equipment, furniture and fittings	Total
			£'000	£'000	£'000	£'000	£'000
	Cost
	At 1 January 2008		1,229	552	60	61	1,902
	Additions		-	397	29	21	447
	Translation differences		(1)	-	-	(2)	(3)
	At 30 June 2008		1,228	949	89	80	2,346
	Accumulated depreciation
	At 1 January 2008		39	-	5	37	81
	Charge for period		18	-	4	22	44
	Translation differences		(4)	-	-	(2)	(6)
	At 30 June 2008		53	-	9	57	119
	Net book value at 30 June 2008		1,174	949	80	23	2,227
	Net book value at 31 December 2007		1,190	552	55	24	1,821

5.    Trade and other receivables

			As at  30 June  2008	As at  30 June 2007	As at  31 December 2007
			Unaudited	Unaudited	Audited
			£'000	£'000	£'000
	Trade receivables		341	299	1,061
	Other receivables		80	20	104
	Prepayments and accrued income		28	16	20
			449	335	1,185

  

6.    Trade and other payables

			As at  30 June  2008	As at  30 June  2007	As at  31 December 2007
			Unaudited	Unaudited	Audited
			£'000	£'000	£'000
	Trade payables		426	283	1,172
	Accruals and deferred income		170	50	116
	Other payables		166	121	241
	HP and finance lease		-	57	-
	Standard Bank		-	115	-
	Employee benefits		95	-	75
	Taxation and social security		17	8	17
			874	634	1,621

7.    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 3JT and available to download from the Company's website  
       www.supercart.com.

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ENDIR PUUMPBUPRGQB