LONDON--(BUSINESS WIRE)--
Wheelsure Holdings plc
(“Wheelsure” or the “Group”)
Final Results for the Year Ended 31 August 2020
Wheelsure announces its final results for the year ended 31 August 2020. A copy of the Group’s annual report and accounts will shortly be available from the Group’s website www.wsgroupglobal.com/ and will be posted to all shareholders in due course.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Enquires:
Wheelsure Holdings plc |
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01525 840 557 |
Gerhard Dodl, CEO |
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Cairn Financial Advisers LLP |
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020 7213 0885 |
Jo Turner |
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CHAIRMAN'S STATEMENT
I am pleased to report that sales for the year ended 31 August 2020 were, including royalties, £234,836 (2019: £178,444), a 32% increase over the comparable period in 2019. Losses before tax in the year were reduced as a result of this increased income and stringent fixed-cost management to £203,320 (2019: £223,855).
This second annual improvement was achieved against considerable pressure on transport spending since the spring due to the Coronavirus pandemic. Whilst we remain optimistic that the sales headway we have made will remain, the Board remains mindful of the continued effects that Covid-19 is having to working practices and ordering cycles and that this could provide for an uneven distribution of sales in the coming financial year.
As previously reported, the restructuring of our shares in May 2020 strengthened our working capital facility, allowing for implementation of our business plan in a considered manner.
The Board is working to build upon improved order intake during the year from the UK, Italy and Germany as well as realising our potential in other countries where our approvals/relationships are strong.
UK/Ireland
We continue to supply regularly to the London Underground (LUL) and the Dockland Light Railway (DLR) and their contractors. Investors will be aware of the significant financial pressures on Transport for London as a direct result of the collapse in their income due to the pandemic. Whilst we are confident our products will save Transport for London (TFL) significant sums compared to competitor products over their lifetime, the Board also acknowledges that TFL face a number of challenges which are likely to impact their procurement, maintenance and upgrade programmes and, in turn, may impact sales. Against this background we continue to maintain strong relationships and seek new and creative opportunities to build upon our excellent technical approvals.
Holland, Germany, and Austria
These countries remain a priority for our business as we seek to build upon good approvals. In 2020 we achieved a comparable level of business to 2019, building on success with both Siemens and thyssenkrupp Steel Europe AG.
Our challenge is to proliferate this success more widely throughout the Deutsche Bahn network and other industrial rail networks. This will therefore be the focus of our sales efforts and that of a specialist partner company with whom we are cooperating in the region.
Italy
Late in the year we received and processed a long-awaited order which we believe to be the first of a three-part refurbishment contract in the north of the country. As in the UK, current prevailing circumstances remain difficult but, working with our agent, we continue to build upon an excellent technical approval.
Other Markets
Whilst strongly focussing on the exploitation of the Tracksure brand in the above territories, as previously reported, the strategic collaboration with Haydale Graphene Industries plc is ongoing and the Board is judiciously looking at related opportunities to commercially develop the potential of our core patented technology.
Key Performance Indicators
The directors consider the Group's financial key performance indicators to be turnover and loss before tax.
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2020 |
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2019 |
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£ |
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£ |
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Turnover |
232,539 |
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171,840 |
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Loss before tax |
203,320 |
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223,855 |
Non-financial key performance indicators include the number of new customers. For the year ended 31 August 2020 these amounted to 2 (2019: 3).
Directors' Duties - Compliance With Section 172 of the Companies Act 2006
Section 172 of the Companies Act 2006 requires directors to promote the success of the Company for the benefit of the members as a whole and in doing so have regard to the interests of stakeholders including shareholders, clients, employees, regulators and the wider society in which it operates.
We maintain regular and open communication with shareholders and continue to deliver responsibility to the communities what are impacted by our activity.
Principal Risks and Uncertainties
There are a number of risks and uncertainties that face the Group, but the Board have established a structured approach to identify, assess and manage these risks.
The following list highlights the principal risks:
- Financial and liquidity risk - the Group faces the financial risk that there may be insufficient cashflow as working capital in the future to continue to commercialise the products and generate revenue streams. Our cashflow is monitored carefully and fundraising needs are periodically evaluated. The directors have prepared forecasts which indicate that the Group will be able to meet its liabilities as they fall due for at least the next twelve months; and
- Currency risk - during the normal course of business, certain transactions are carried out in currencies other than Sterling which exposes the Group to a certain level of currency risk. To mitigate this risk, transactions are carried out in Sterling wherever possible, and minimal cash balances are held in currencies other than Sterling.
The Covid-19 pandemic continues to have an impact on all businesses. It is encouraging to note that orders are still being received from customers throughout Europe, and the Board is confident that this will not adversely affect the ability to remain as a going concern.
Finally, the Board is cognisant of the current uncertainties pertaining to Brexit and, from both the sales and supply perspective, will continue to act appropriately to minimise risk and maintain business opportunity.
The Board would like to thank all our shareholders for their continued support.
G Mulder
Chairman
30 November 2020
WHEELSURE HOLDINGS PLC |
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
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for the Year Ended 31 August 2020 |
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2020 |
2019 |
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£ |
£ |
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TURNOVER |
232,539 |
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171,840 |
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Cost of sales |
(121,221 |
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(76,773 |
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GROSS PROFIT |
111,318 |
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95,067 |
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Administrative expenses |
(298,855 |
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(316,003 |
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(187,537 |
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(220,936 |
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Other operating income |
2,297 |
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6,604 |
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OPERATING LOSS |
(185,240 |
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(214,332 |
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Interest receivable and similar income |
- |
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16 |
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(185,240 |
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(214,316 |
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Interest payable and similar expenses |
(18,080 |
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(9,539 |
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LOSS BEFORE TAXATION |
(203,320 |
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(223,855 |
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Tax on loss |
18,192 |
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17,078 |
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LOSS FOR THE FINANCIAL YEAR |
(185,128 |
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(206,777 |
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OTHER COMPREHENSIVE INCOME |
- |
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- |
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TOTAL COMPREHENSIVE LOSS FOR THE YEAR |
(185,128 |
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(206,777 |
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Basic and Diluted Loss per Share: |
7.7p |
8.7p |
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WHEELSURE HOLDINGS PLC |
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CONSOLIDATED BALANCE SHEET |
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31 August 2020 |
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2020 |
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2019 |
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£ |
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£ |
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£ |
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£ |
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FIXED ASSETS |
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Intangible assets |
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42,473 |
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51,540 |
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Tangible assets |
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452 |
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612 |
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Investments |
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- |
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- |
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42,925 |
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52,152 |
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CURRENT ASSETS |
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Stocks |
34,712 |
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37,686 |
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Debtors |
55,431 |
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90,674 |
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Cash at bank |
25,980 |
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9,287 |
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116,123 |
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137,647 |
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CREDITORS |
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Amounts falling due within one year |
(151,962 |
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(240,490 |
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NET CURRENT LIABILITIES |
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(35,839 |
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(102,843 |
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TOTAL ASSETS LESS CURRENT LIABILITIES |
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7,086 |
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(50,691 |
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CAPITAL AND RESERVES |
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Called up share capital |
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2,413,868 |
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2,402,057 |
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Share premium |
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3,667,640 |
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3,443,250 |
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Retained earnings |
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(6,074,422 |
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(5,895,998 |
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SHAREHOLDERS' FUNDS/(DEFICIT) |
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7,086 |
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(50,691 |
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NOTES TO THE FINANCIAL STATEMENTS
1. PUBLICATION OF NON-STATUTORY ACCOUNTS
The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 435 of the Companies Act 2006.
The financial information for the year ended 31 August 2020 has been extracted from the audited financial statements to that date, which were prepared in accordance with UK GAAP and with the requirements of the Companies Act 2006. These financial statements have yet to be delivered to the Registrar of Companies. The financial statements for the year ended 31 August 2019 have been delivered to the Registrar of Companies. The auditors' report in relation to both years was unqualified, contained a material uncertainty relating to going concern (which has been reproduced below), and did not contain a statement under section 498 of the Companies Act 2006.
Extract from audited financial statements:
“Material uncertainty relating to going concern
We draw attention to note 1 in the financial statements, which indicates that the Group will generate sufficient cash through forecasted trading activity and drawing down on existing loan facilities to remain as a going concern until at least 31 December 2021, based on the budgets and cash flow forecasts produced, including consideration of the likely impact of Covid-19, however the increase and timing of forecast sales and the impact of Covid-19 are unpredictable.
As stated in note 1, these conditions indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.”
The relevant section of note 1 to the financial statements is reproduced as note 2 below.
2. ACCOUNTING POLICY – GOING CONCERN
Given the capital raised in the year, as disclosed in the Chairman's Statement, the directors have approved budgets and cash flows for the Group for the period to 31 December 2021. These budgets and cash flows forecast that the Group will have sufficient cash resources to remain as a going concern until at least 31 December 2021.
The directors remain mindful of the continued effects that Covid-19 is having to working practices and ordering cycles and that this could provide for an uneven distribution of sales in the coming financial year.
The directors are confident that by achieving the forecast level of sales and drawing down on existing loan facilities they will achieve the required cash flow.
However given the unpredictability of sales forecasts and the reliance on drawing down the loan facilities negotiated in the year, there exists a material uncertainty that may cast significant doubt on the entity's ability to continue as a going concern regarding the value and timing of these future forecast sales. If the Group was not a going concern, it may be unable to realise its assets and discharge its liabilities in the normal course of business.
The directors have concluded that, after considering the above and the financial position of the Group, they have reasonable expectations that the Group will have adequate cash resources, by meeting revenue forecasts to continue in operational existence until at least 31 December 2021 and for this reason they continue to adopt the going concern basis in preparing the financial statements of the Group.
The financial statements do not include the adjustments that would result if the Group or Parent Company was unable to continue as a going concern.
3. The Company will not be paying a dividend for the financial year to 31 August 2020.
4. Copies of the Report and Accounts will be sent to shareholders shortly and will be available from the registered office of the Company, 235 Hunts Pond Road, Fareham, Hampshire, PO14 4PJ, and also on the company’s website, www.wsgroupglobal.com.