Half-year Report

LONDON--()--

Wheelsure Holdings plc

(“Wheelsure” or the “Group”)

Interim Results for the Six Months Ended 28 February 2017

CHAIRMAN'S STATEMENT

I am pleased to announce the results for the 6 months ended 28 February 2017, a period in which we have continued to make progress in our main territories but at a lower level than the same period last year.

• Sales of £94,393 (6 months to 29 February 2016: £133,454);

• In addition to the sales above, royalty income was received of £9,293 (6 months to 29 February 2016: £12,715);

During this period the Board has been working exhaustively with advisers to develop a three year strategic business plan that builds upon progress to date and puts in place appropriate finances to develop that agreed strategy, in particular with regard to sales and marketing resource and ongoing patent protection and product development. This process has been demanding and the associated fundraising has undoubtedly impacted on our ability to increase the rate of sale in the short term.

However, I am pleased to announce that a subscription arrangement to raise £500,000 before expenses has been conditionally completed subject to shareholder approval at a general meeting on 7 June 2017.

Subject to this approval, the Board can now focus totally on implementing the strategy and generating growth.

New Director

We announced in November 2016 that Mr William (Bill) Welch had joined the Board as a non-executive director. This strengthens the Board, as we seek to realise the potential of the three year business plan and commercially develop in both the markets we currently operate in and new opportunities.

A brief outline of our existing business in major territories is as follows:

UK

As previously reported, orders from London Underground have been restricted by extreme budgetary pressure following the 2016 Mayoral election, although this is showing signs of improvement so far this year. We remain confident that the benefits of our products will continue to deliver business throughout the network.

Elsewhere in the UK, Tracksure has also now been installed on High Speed rail infrastructure and the products are performing well. This is a positive development and the Board remain confident that this extends the market potential for the use of our products.

Further orders in the post-reporting period have been received from KeolisAmey Docklands, continuing the regular orders from this source

Holland, Germany, Austria & Belgium

The relationship with Strukton Rail Nederland B.V. has resulted in substantial orders in the reporting period and introduced contact and a first factory fitting at voestalpineRailpro B.V. (part of voestalpine AG (Austria)), one of the world’s largest manufacturers of specialist rail equipment. Tracksure is also in contact with the German subsidiary of this group. The development of these relationships is strategically vital in accelerating our business growth.

Additionally, we have received orders from Siemens AG and, in the post reporting period, for thyssenkrupp Steel Europe AG, following a successful trial with the Company

Italy

We continue to develop our relationships and customer base in Italy as previously reported and a further order has been received in the post-reporting period from Ferrovie del Gargano.

Spain

Since the period end, Tracksure has received its first significant order from Ferrocarrils de la Generalitat de Catalunya (FGC), a transit and funicular rail operator in Barcelona. This follows a trial with the customer that started over three years ago and is a positive breakthrough in the Iberian Peninsula.

USA

Royalty income of £9,293 was received during the period and progress in the USA continues to be slower than anticipated.

The Board would like to thank all our shareholders for their continued support.

G J Mulder
Chairman
24 May 2017


Unaudited consolidated statement of comprehensive income for the six months ended 28 February 2017

  Six months ended 28.02.17   Six months ended 29.02.16   Year ended 31.08.16
£ £ £
 
TURNOVER 94,393 133,454 290,330
Cost of sales (47,522) (64,419) (153,003)

GROSS PROFIT

46,871

69,035

137,327

Administrative expenses (208,383) (201,518) (405,109)
(161,512) (132,483) (267,782)
Other operating income 9,293 12,715 18,328

OPERATING LOSS

(152,219)

(119,768)

(249,454)

Interest receivable and similar income - 15 22
Interest payable and similar charges (7,003) (6,183) (12,713)
 
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (159,222) (125,936) (262,145)
Tax on loss on ordinary activities - - 15,146
 
LOSS FOR THE PERIOD AFTER TAXATION (159,222) (125,936) (246,999)
 
Other comprehensive income - - -
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD (159,222) (125,936) (246,999)
BASIC AND DILUTED LOSS PER SHARE (NOTE 3) 0.09p 0.08p 0.16p


Unaudited consolidated balance sheet as at 28 February 2017

  As at   As at   As at
28.02.2017 29.02.2016

(restated)

31.08.2016
£ £ £ £ £ £
FIXED ASSETS
Intangible assets 84,159 84,060 88,282
Tangible assets 1,993 4,562 3,198
86,152 88,622 91,480
 
CURRENT ASSETS
Stocks 52,325 53,941 52,620
Debtors 101,281 111,164 140,767
Cash at bank 6,623 105,571 24,752
160,229 270,676 218,139
CREDITORS
Amounts falling due within one year (221,598) (169,248) (230,129)
 
NET CURRENT (LIABILITIES) / ASSETS (61,369) 101,428 (11,990)
 
TOTAL ASSETS LESS CURRENT LIABILITIES 24,783 190,050 79,490
 
 
CAPITAL AND RESERVES
Called up share capital 1,772,557 1,641,942 1,641,942
Share premium 3,443,250 3,443,250 3,443,250
Profit and loss account (5,191,024) (4,895,142) (5,005,702)
 
SHAREHOLDERS’ FUNDS 24,783 190,050 79,490


Unaudited consolidated statement of changes in equity for the six months ended 28 February 2017

Six months ended 28 February 2017   Called up share capital   Share Premium   Retained earnings   Total equity
£ £ £ £
Balance at 1 September 2016 1,641,942 3,443,250 (5,005,702) 79,490
Changes in equity
Total comprehensive loss - - (159,222) (159,222)
Issue of share capital (less issue costs) 130,615 - (26,100) 104,515
Balance at 28 February 2017 1,772,557 3,443,250 (5,191,024) 24,783
 
 
Six months ended 29 February 2016 (restated) Called up share capital Share Premium Retained earnings Total equity
£ £ £ £
Balance at 1 September 2015 1,381,442 3,443,250 (4,756,181) 68,511
Changes in equity
Total comprehensive loss - - (125,936) (125,936)
Issue of share capital (less issue costs) 260,500 - (13,025) 247,475
Balance at 29 February 2016 1,641,942 3,443,250 (4,895,142) 190,050
 
 
Year ended 31 August 2016 Called up share capital Share Premium Retained earnings Total equity
£ £ £ £
Balance at 1 September 2015 1,381,442 3,443,250 (4,756,181) 68,511
Changes in equity
Total comprehensive loss - - (246,999) (246,999)
Issue of share capital (less issue costs) 260,500 - (13,025) 247,475
Credit relating to equity settled share based payments - - 10,503 10,503
Balance at 31 August 2016 1,641,942 3,443,250 (5,005,702) 79,490


Unaudited consolidated cash flow statement for the six months ended 28 February 2017

 

Notes

  Six months ended 29.02.17   Six months ended 29.02.16   Year ended 31.08.16
£ £ £
Cash flows from operating activities
Cash generated from operations 4 (132,013) (191,627) (262,238)
Tax received 11,518 9,947 9,947
Net cash used in operating activities (120,495) (181,680) (252,291)
 
Cash flows from investing activities
Capital expenditure (1,457) (1,483) (11,113)
Interest received - 15 22
Net cash used in investing activities (1,457) (1,468) (11,091)
 
Cash flows from financing activities
Share issue 130,615 260,500 260,500
Share issue costs (26,100) (13,025) (13,025)
Interest paid (692) (583) (1,168)
Net cash from financing activities 103,823 246,892 246,307
 
(Decrease) / increase in cash and cash equivalents (18,129) 63,744 (17,075)
 
Cash at bank and in hand at start of period 24,752 41,827 41,827
 
Cash at bank and in hand at period end 6,623 105,571 24,752


Notes to the unaudited financial statements for the six months ended 28 February 2017

1. Reporting entity

Wheelsure Holdings Plc (the “Company”) is a company incorporated and domiciled in the United Kingdom. The address of the Company’s registered office and its principal place of business is 8 Woburn Street, Ampthill, Bedfordshire, MK45 2HP

The consolidated interim financial statements of the Group as at and for the half year ended 28 February 2017 comprise the Company and its subsidiaries (together referred to as the “Group”). The financial information set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group’s statutory financial statements for the year ended 31 August 2016 have been filed with the Registrar of Companies. The auditor’s report on those financial statements was unqualified but contained an emphasis of matter paragraph in relation to going concern, and did not contain a statement under Section 498(2) of the Companies Act 2006. The consolidated financial statements of the Group as at and for the year ended 31 August 2016 are available at http://www.wheelsure.co.uk.

2. Basis of preparation

These consolidated financial statements for the half year ended 28 February 2017 are unaudited. They have been prepared and approved by the directors following the recognition and measurement principles of Financial Reporting Standard (FRS 102) and with the requirements of the Companies Act 2006. This is the first interim period reported under FRS 102. There have been no changes to the reported numbers as a result of the adoption of FRS 102.

The interim financial statements do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 August 2016.

The figures for the six months ended 29 February 2016 have been restated as a result in a change of accounting treatment for share issue costs. This has resulted in the share premium account increasing by £13,025 and retained earnings decreasing by the same amount. No other figures were affected by this change in accounting treatment.


3. Basic and diluted loss per share

  Six months ended 28.02.17   Six months ended 29.02.16   Year ended 31.08.16
£ £ £
Loss for the period (159,222) (125,936) (246,999)
Weighted average number of ordinary shares in issue during the period 173,431,989 158,115,947 158,115,947
Basic and diluted loss per share 0.09p 0.08p 0.16p

No shares were deemed to have been issued at nil consideration as a result of the share options granted.

The diluted basic loss per share is stated as the same amount as the basic as there is no dilutive effect in either year.


4. Reconciliation of operating loss to net cash outflow from operating activities

  Six months ended 28.02.17   Six months ended 29.02.16   Year ended 31.08.16
£ £ £
Loss for the period (159,222) (125,936) (246,999)
Depreciation and amortisation charges 6,785 6,646 13,418
Share based payment transactions - - 10,503
Finance costs 7,003 6,183 12,713
Finance income - (15) (22)
Taxation credit - - (15,146)
(145,434) (113,122) (225,533)
Decrease / (increase) in stocks 295 (19,302) (17,981)
Decrease / (increase) in debtors 27,968 (36,656) (51,113)
(Decrease) / increase in creditors (14,842) (22,547) 32,389
 
Net cash outflow from operating activities (132,013) (191,627) (262,238)

This announcement contains information which, prior to its disclosure, was inside information for the purposes of the Market Abuse Regulation.

Ends

Enquires:

Wheelsure Holdings plc  
Gerhard Dodl, CEO 01525 840 557
 
Daniel Stewart & Company Plc 0207 776 6550
Peter Shea / Daphne Zhang - Corporate Adviser
David Lawman - Broker

Short Name: Wheelsure Holdings (WHLP)
Category Code: IR
Sequence Number: 583975
Time of Receipt (offset from UTC): 20170524T171055+0100

Contacts

Wheelsure Holdings Plc

Contacts

Wheelsure Holdings Plc