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17 December 2009

Supercart plc

("Supercart" or the "Company")

Trading Update

Supply Agreement with Target Corporation

Supercart, the UK company involved in the design, marketing and distribution of plastic shopping trolleys, is pleased to provide a further update to trading in the financial year ending 31 December 2009.

As stated previously the Company has made good progress this year in the United States with a number of new retailing customers following the purchase of Rehrig International in March.  Following the first major order from Target Corporation ("Target"), announced in October, Supercart is pleased to confirm that it has entered into an agreement with Target to provide them with a range of shopping trolleys, hand baskets and related repair and replacement parts.  The four year agreement is effective until 31 December 2013.

The Board is pleased with the US market's reception of the re-launched Rehrig product range.  Trading conditions for US retailers have been challenging through much of this year although recent signs are that conditions are now improving.  This has led to an upturn in orders and enquires, although this late increase in activity has meant orders from a number of potential customers have been deferred from this important last quarter trading period to the first quarter of 2010. As a consequence, while the Company has a strong pipeline of enquiries, sales in the US for 2009 will not reach the level management originally anticipated.

 

Trading in South Africa has continued ahead of budget and the Company expects to report a strong performance for the year. The Company has also secured its first orders in the Australian market.

Sales in Europe have been disappointing but the Company has restructured its European operations during the second half of 2009 and Supercart has embarked on a number of new initiatives which are already beginning to bear results. The Company is pleased to announce that it has secured its first sales to one of the largest French retailing groups, through a joint project with the French distributor Caddie. The Board anticipates that further European product sales will be driven through this channel.

Mike Wolfe, CEO of Supercart, said: "We are very pleased to announce this significant agreement with Target, one of the most important retailers in the North American market.  We believe that the agreement shows that we are beginning to build long-term relationships in the US and that our strategy for growth in the region is achievable.  Conditions remain challenging but we are confident that Supercart can continue to make progress."

Enquiries:
Supercart plc     Chief Executive Mike Wolfe	01732 459898
Charles Stanley Securities     Nominated Adviser and Broker Russell Cook/Ben Johnston/Carl Holmes	020 7149 6000
Tavistock Communications     Jeremy Carey/Andrew Dunn	020 7920 3150

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