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Wheelsure Holdings (WH.P)

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Friday 30 April, 2010

Wheelsure Holdings

Half Yearly Report

RNS Number : 0760L
Wheelsure Holdings Plc
30 April 2010
 

WHEELSURE HOLDINGS PLC

 

INTERIM REPORT for the sixth months ended 28th February, 2010

 

CHAIRMAN'S REPORT

 

 

Dear Shareholder,

 

The results for the six months ended 28 February 2010 show a loss on ordinary trading activities before taxation of £156,508 compared to a loss of £163,481 for the comparable period last year. Whilst we are disappointed that we have not been able to improve significantly on last years result, there is no doubt that the recession has had its effect on the majority of our potential customers.

 

Wheelsure

 

The economic climate during the period has not assisted us in convincing potential end users that the fitting of our systems will not only add safety to their operations, but also the significant cost saving benefits available. Whilst potential customers acknowledged the advantages of our systems, they have needed to delay such investment decisions until their own operating and financial circumstances have improved.

 

Despite the difficult trading conditions, I am pleased to report several new contract wins during the period. The bus and coach industry has been less affected by the economic climate compared with commercial fleets, and we are at present fitting four major operators with systems. In total some 140 vehicles are being converted in this exercise and there is a strong possibility that there will be spin-off business to be had from these fitments.

 

Now that the requirements for the forthcoming Olympic Games transportation needs are known, we are in discussions with several manufacturers encouraging them to offer our systems in their new product. Following the success of our products used on the Cemex fleet, we have taken an active role in contacting other major tipper users and have mailed a significant number of large fleets of operators. This has resulted in several asking us to meet with them and demonstrate our wares. We will also be attending and demonstrating our products at the annual Tip-ex Show, the only UK show dedicated to the tipper industry, in Harrogate in May.

 

Finally, the Department of Transport has confirmed that they will finalise their long awaited report on wheel nut loosening with recommended solutions to overcome this problem, in the next couple of months. We are hopeful that the publication of this report will be of tremendous benefit to us.

 

Tracksure

 

Having reported previously that the London Underground, through its Metronet element, were trialling our system, I can now report that these tests have proved successful and they have decided to seek approval for the use of our devices from the LUL Approval Committee. This is very encouraging for Tracksure and we have been advised that the report should be prepared and submitted in the near future. In the meantime we continue to receive small orders for various applications within the underground system.

 

We are continuing with our approaches to Network Rail and our Technical Director is preparing a product approval application for their consideration. Our activities and trials in other countries are still continuing, with success in some, especially in Holland through our agent ETS Spoor. It has now been confirmed that MAV/Thermit of Hungary will be conducting trials in May with Budapest as the chosen site. The German Railway has also expressed interest in our product and is conducting an internal review for presentation to their management. This is yet another encouraging development.

 

The current dispute between RMT Union and Network Rail has safety as one of its major concerns.  To maintain safety a lot of personnel have to be employed and it is this aspect that is controversial. Fitting our system would in no way detract from the safety aspect, but would enhance it. It is this aspect that we are presenting to Network Rail in an endeavour to gain their approval for use. The savings to them would be considerable in time, manpower and finance.

 

Our contact in North America is pursuing a number of leads and has introduced us to SAFETRACK BAAVHAMMAR AB of Sweden, who has expressed interest in our product and wish to engage in dialogue on its characteristics and advantages. Our contact in Italy has now confirmed that FerrovieNord has confirmed that our product has now received approval and is awaiting the first order from them. After much time and effort this possible source of future business has acknowledged our product and we keenly await further developments.

 

I am pleased to report on the significant strengthening of the Balance Sheet following the successful placing of 12,745,000 Ordinary shares in the company at a price of 5p each in the last quarter of 2009 which raised, in aggregate, £637,250 (gross); and the conversion of the remaining £264,000 Secured Loan Stock 2010 into Ordinary shares at the same price.

 

As at 28 February 2010 it should be noted that the Group held cash at bank of £338,212 with total creditors amounting to £78,851 compared with £14,413 and £396,935 respectively at 31 August 2009.

 

Your Board continues to be pro-active in its approach to securing business, and will do all it can to enhance and promote Wheelsure products. I wish to take this opportunity to thank all shareholders for their continued support, and look forward to reporting success in our activities during the remainder of 2010.

 

 

JES Shuttleworth

Chairman

 

 

 

 

WHEELSURE HOLDINGS PLC

 

UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT

for the six months ended 28 February 2010

 


Six months ended

28.02.10

£

 

Six months ended

28.02.09

£

Year ended

31.08.09

£

TURNOVER

66,826

62,963

126,246

 

Cost of sales

(33,578)

 

(41,311)

 

(62,644)

 

GROSS PROFIT

33,248

 

21,652

63,602

Administrative expenses

(184,845)

 

(171,142)

 

(359,014)

 

OPERATING LOSS

(151,597)

(149,490)

(295,412)

 

Interest receivable and similar income

438

465

643


(151,159)

(149,025)

(294,769)

 

Interest payable and similar charges

 

(5,349)

_____________

(14,456)

_____________

(28,008)

_________

LOSS ON ORDINARY ACTIVITIES

BEFORE TAXATION

(156,508)

(163,481)

(322,777)

Tax on loss on ordinary activities

 

-

-

67,570

LOSS FOR THE PERIOD

AFTER TAXATION

(156,508)

(163,481)

(255,207)

 

 

 

 

WHEELSURE HOLDINGS PLC

 

UNAUDITED CONSOLIDATED BALANCE SHEET

as at 28 February 2010

 


Six months ended

28.02.2010

£

Six months ended

28.02.2009

£

Year ended

31.08.2009

£

FIXED ASSETS




Intangible assets

Tangible assets

52,680

19,811

44,648

28,234

51,975

23,857


72,491

72,882

75,832

CURRENT ASSETS




Stocks

Debtors

Deferred tax

Cash at bank

12,749

59,400

450,474

338,212

12,000

48,334

382,904

19,189

16,474

21,697

450,474

14,413


860,835

462,427

503,058

CREDITORS




Amounts falling due within one year

(78,851)

(201,520)

(396,935)





NET CURRENT ASSETS

781,984

260,907

106,123





TOTAL ASSETS LESS

CURRENT LIABILITIES

854,475

333,789

181,955





CREDITORS




Amounts falling due after more

than one year

-

(279,000)

-


854,475

54,789

181,955

 

CAPITAL AND RESERVES




Called up share capital

Share premium

Profit and loss account

440,066

2,752,967

(2,338,558)

217,273

1,927,840

(2,090,324)

259,816

2,104,189

(2,182,050)





SHAREHOLDERS' FUNDS

854,475

54,789

181,955





 

 

 

 

WHEELSURE HOLDINGS PLC

 

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

for the six months ended 28 February 2010

 


Notes

Six months ended

28.02.10

£

 

Six months ended

28.02.09

£

Year

ended

31.08.09

£

Net cash outflow from operating

activities

3

(232,156)

(12,737)

(197,759)

Returns on investments and servicing

of finance

4

(4,911)

(13,991)

(27,365)

Capital expenditure

4

(4,162)

(18,210)

(28,482)

 



(241,229)

(44,938)

(253,606)

 

Financing

 

4

565,028

-

203,892

Increase/(decrease) in cash in the period


323,799

(44,938)

(49,714)

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

 

5




Increase/(decrease) in cash in the period


323,799

(44,938)

(49,714)

Cash inflow from increase in debt


264,000

-

15,000






Change in debt resulting from cash flows


587,799

(44,938)

(34,714)

Movement in net debt in the period


587,799

(44,938)

(34,714)

Net debt as at 1 September


(249,587)

(214,873)

(214,873)

 

Net funds/(debt) at period end

 


338,212

(259,811)

(249,587)

 

 

 

 

WHEELSURE HOLDINGS PLC

 

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS

for the six months ended 28 February 2010

 

1. Basis of preparation

 

The interim financial information for the six months ended 28 February 2010 is neither audited nor reviewed, but has been prepared in accordance with the accounting policies set out in the Company's annual report and accounts for the year ended 31 August 2009.

 

The figures for the year ended 31 August 2009 do not comprise statutory accounts for the purpose of s435(1) of the Companies Act 2006 and have been extracted from the Company's full accounts for that year in which the auditors' report was neither qualified, nor contained any references to emphasis of matter, nor any statement under section 498(2) or section 498(3) of the Companies Act 2006. The Company's full accounts have been filed with the Registrar of Companies.

 

 

2. Reconciliation of movement in Shareholders' funds

 


Six months ended

28.02.10

£

 

Six months ended

28.02.09

£

Year

ended

31.08.09

£

Loss for the period

Issue of shares

(156,508)

829,028

(163,481)

-

(255,207)

218,892





Net increase/(decrease) of shareholders' funds

Opening shareholders' funds

 

672,520

181,955

 

(163,481)

218,270

 

(36,315)

218,270





Closing shareholders' funds

854,475

54,789

181,955

 

 

3. Reconciliation of operating loss to net cash outflow

   from operating activities

 


Six months ended

28.02.10

£

 

Six months ended

28.02.09

£

Year

ended

31.08.09

£

Operating loss

Depreciation charges

Decrease/(increase) in stocks

(Increase)/decrease in debtors

(Decrease)/increase in creditors

(151,597)

7,503

3,725

(37,703)

(54,084)

(149,490)

6,555

(9,000)

(2,161)

141,359

(295,412)

13,877

(13,474)

24,476

72,774

Net cash outflow from operating activities

(232,156)

(12,737)

(197,759)

 

 

4. Analysis of cash flows for headings netted in the cash flow statement

 


Six months ended

28.02.10

£

 

Six months ended

28.02.09

£

Year

ended 31.08.09

£

Returns on investments and servicing of finance




Interest received

Interest paid

438

(5,349)

465

(14,456)

643

(28,008)





Net cash outflow for returns on

Investments and servicing of finance

(4,911)

(13,991)

(27,365)

Capital expenditure




Purchase of intangible fixed assets

Purchase of tangible fixed assets

(2,530)

(1,632)

(8,776)

(9,434)

(17,791)

(10,691)

 

Net cash outflow for capital expenditure

(4,162)

(18,210)

(28,482)

Financing




Loan repayments in the year

Shares issue

(264,000)

829,028

 

-

-

(15,000)

218,892

Net cash inflow from financing

565,028

-

203,892

 









 

5. Analysis of changes in net debt

 


At 01.09.09

£

 

Cash flow

£

At 28.02.10

£

Net cash: Cash at bank

14,413

323,799

338,212

 

Debt:




Debts falling due after on year

(264,000)

264,000

-

 

Total

(249,587)

587,799

338,212

 

 

 

Enquires:

 

G Dodl



Wheelsure Holdings plc


01525 840 557




B J Hallett



Watlington Securities Limited


01489 570 861




Mark Percy / David Foreman (Corporate Finance)



Paul Jewell (Corporate Broking)



Seymour Pierce Limited


020 7107 8000

 

 

29 April 2010


This information is provided by RNS
The company news service from the London Stock Exchange
 
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