Supercart Plc Share Discussion Threads

[8trade] 13/7/2009 16:15

Dont look at the moment like the 2 mm's have received any of the placing
stock to sell to joe public as it's rising on minimal buying, well they
have their funds, now they need to win more contracts to justify the valuation
of the company with the added placing to add on to the market cap.

[squintyflinty] 27/6/2009 00:41

Directors and institutions get a slice of the cake ,but shareholders get nothing.How can this placing be in the benefitt of shareholders. As far as I'm concerned wev'e ben shafted by the management. I'm out!

[andrew james] 26/6/2009 07:34

We won't be seeing this share issue on the open market, which means that these will be safely tucked away by the Institutions and Directors

The Placing Shares have been placed with institutional and certain other
investors, including Directors, conditional on, amongst others, the passing of
the Resolutions and on Admission taking place no later than 8.00 a.m. on 31 July
2009. In addition Venture Holdings has irrevocably agreed to subscribe for
4,661,872 New Ordinary Shares at the Issue Price, conditional on, amongst
others, the passing of the Resolutions, the completion of the Placing and
Admission taking place no later than 8.00 a.m. on 31 July 2009.

[andrew james] 26/6/2009 07:27

Here is more of the Chairmans Statement


On the other hand, I will also be reporting on important events since year-end
which will have a significant beneficial effect on our future profitability and
the rate of our penetration into North America.


In South Africa, aided by the launch of new products to the market, unit sales
increased by more than 30% in 2008 over the previous year and gross profits
showed an increase of 33%.


In North America, the launch of the new Max trolley attracted extensive retailer
attention and trials of this product in some of the larger national chains have
gone satisfactorily.


In Europe we have continued to see retailer interest slowly being translated
into sales.


Results
Our investment in the future of our products and development of markets has
resulted in a significant increase in our sales but also higher costs, leading
to a group after tax loss of GBP1.2 million.


For the year ended 31 December 2008, Supercart generated turnover of
GBP4,809,000 (2007 - GBP3,342,000) an increase of 44%. The strong increases in
world oil prices in 2008 impacted our raw material prices and resulted in a
reduction in our gross profit margin to 17.9% (2007 - 19.2%).


Operating expenses increased by 26% during the period due to the increase in
staffing costs. The reported loss after tax was GBP1,207,000 (2007: GBP929,000).
The loss per share was 2.76p (2007 loss of 2.59p).


Following the Placing of new shares in December 2008 which raised net proceeds
of GBP931,000, Supercart had net cash balances of GBP1.03 million (2007: GBP1.75
million) at the year end.


The Directors are not recommending the payment of a dividend in respect of the
year ended 31 December 2008.


South Africa
This region continued in 2008 to be the 'engine room' for our business returning
an excellent result for the year with a sales increase of in excess of 45% over
2007. We continue to receive strong support from our manufacturer and largest
shareholder Venture Holdings in all areas of product development and quality
control.


We sell to every major retailer in this market and this has helped us in the
development of new trolley and hand basket concepts. Our share of the market in
South Africa for all trolley types is now in excess of 60%. I am pleased to
report that we achieved our expected delivery date of our most recent trolley,
the 'XL200', to the retailer market there by the end of 2008. Together with the
'Nexus' trolley and our 30 litre hand basket, we can now offer our 'family' of
trolley and hand basket products with the same 'look and feel' to the South
African and European markets; it is this comprehensive product range that will
allow us to provide to retailers the complete offering that they require.


North America
We have not yet achieved the sales breakthrough that we had been expecting in
2008. Early store trials of the new 'Max200' trolley went well and additional
trolleys have been ordered but not in the quantities for which we had hoped. We
have continued with our marketing efforts and further store level trials have
been started but not yet completed.


In the last quarter of 2008 we became aware of the financial difficulties of one
of our principal competitors, Rehrig International Incorporated (Rehrig), who
had previously been the largest manufacturer of plastic/metal hybrid trolleys in
the USA. Following Rehrig's liquidation in December 2008 we were successful in
acquiring certain of the mould tools, assets and business of Rehrig at an
extremely advantageous price from the liquidators. This was announced to the
market on 20 March 2009.


We also recruited two senior sales managers and the senior production manager
from Rehrig and this has allowed us swiftly to move the moulds from the Rehrig
factory in Richmond, Virginia to our manufacturer's new facility in Detroit,
Michigan and to maintain the all important contact with the Rehrig customers.


In our announcement of 20 March 2009, we estimated that it would take us until
July before we could start manufacture from these moulds. I am pleased to report
that we have started selling product 6 weeks earlier than we estimated and we
announced this significant first order from a national retail chain on 26 May
2009.


We estimate that there may be somewhere in the region of 10 million Rehrig
trolleys currently in use. The annual renewal orders for existing trolleys can
be anywhere up to 20%. We therefore believe that the acquisition of these moulds
and the legacy sales and retail customers that come with this purchase should
take us into a significant position in this crucial retail market.


Europe
European retailers have been impacted as severely as anywhere else in the world
by the economic slowdown and this has resulted in a delay to decisions being
made through 2008 and into 2009. Nevertheless we are in discussion with every
major retailer in the UK and continental Europe and progress has continued to be
made with many of them. On 13 May 2009, we announced our first large order from
a major Western European retailer and we are hopeful we will be able to announce
further positive news later in the year.


Australia
Despite some modest sales, we have struggled to make progress in Australia. Our
strategy in this market will be kept under continuous review.


Outlook
I believe that we have, in the past, underestimated the time it takes to achieve
significant penetration of our revolutionary products into major new markets;
this has also been exacerbated by the global economic environment in which we
find ourselves. What is also clear to me, however - and this is borne out by our
excellent progress in South Africa as well as customer feedback in Europe and
North America - is that our vision for the future of our products is absolutely
correct.


While we continue to make progress in our major markets, albeit not at the rate
for which we would wish, I believe the acquisition of the Rehrig assets
announced on 20 March 2009 will completely transform our position in North
America. As a result, I believe we can look forward to a significantly improved
performance in 2009 and beyond.


Victor Segal
Chairman


26 June 2009

[andrew james] 26/6/2009 07:13

This is the statement i was hoping for:-

Victor Segal, Chairman of the Company, commented: "While we continue to make
progress in the major markets, albeit not at the rate for which we would wish, I believe the transaction with the Rehrig assets announced on 20 March 2009 will completely transform our position in North America. As a result, Ibelieve we can look forward to a significantly improved performance in 2009 and beyond."

[kiwi10] 24/6/2009 12:40

does anyone know when results are due out....last year they were may....regards

[rbcrbc] 18/6/2009 14:12

So numbers i would guess will be poor, fundraising....yeah that might happen
but the future...well it could be great

I agree with that 100%.

The interesting figures will be to try and tease out the profitablity of the underlying (hopefully still) profitable S.African business then extrapolate that from a S.A. population of 47m to a USA of 300m and a european population of 830m. Without getting too excited ;-)

Any figures at all (sales or projections) from the USA or Europe will be interesting (but probably too early to be reliable).

[8trade] 18/6/2009 13:13

I dont think anybody is expecting anything exciting with the numbers SM !

It will be a loss, it's the outlook that is what will be interesting, i
mean the potential is enormous, how many billions of trolleys are there
out there in the world, can SC make a small dint into this market, if
the recent buyers have positive feedback from their customers they might
roll them out rapidly in a lot more stores.

So numbers i would guess will be poor, fundraising....yeah that might happen
but the future...well it could be great.

All imho.

[strollingmolby] 18/6/2009 13:10

Guys,

What are you expecting in the 2008 results? Are there any forecasts out there?

A quick guesstimate on my part shows they'll still be loss-making - is that likely? And not much cash left I reckon.

BTW I like the idea here - in fact I told my wife about it in the checkout of Tescos last weekend as we emptied and refilled two trolley loads at the checkout! If the shopping could have been scanned as it was placed in the plastic 'mesh' it would have saved at least twenty minutes!

[8trade] 18/6/2009 12:59

Day traders should know by now to avoid this stock, with only
2 mm's it a risky play to trade especially if the mm's dont want
stock when you try to sell.

Best to buy and hold and there should be some more contracts
to come.

[rbcrbc] 18/6/2009 09:13

I will be focusing on the cashflow when the results do come out, hopefully no further dilutive fundraising will be required.

[andrew james] 18/6/2009 07:34

I believe the results will be released today or tomorrow and expect them to show a small loss before giving the forward statements re Europe and the US and maybe a hidden gem as well, keep your eyes on this one for a quick move north again, hopefully no day traders.

[andrew james] 08/6/2009 06:30

Very nice moves on Thursday and Friday, with very little volume, I was sure it must be the results that are imminent that was driving this share forward.

Last week Sells Outnumbered Buys - 46737 Sells 35757 Buys yet the share still moves north, 9.8% on Thursday and 10.7% on Friday

It is starting to gain momentum and as such an announcement or similar must be on its way very soon, I'd be very surprised indeed if we didn't have any kind of RNS off them this week, maybe today but definitely this week.

Good luck to all holding and welcome to any new buyers, the upside of this share will reward those who hold medium and long term, see Wise_Owls posting for anyone just joining the board.

[topinfo] 07/6/2009 23:13

LOL...I am now going to follow you like you follow me and just see how annoying it gets you sad pathetic geek.!!!!!

[8trade] 07/6/2009 22:55

15p bid online at close !

Up 87.5% currently on this !

Exciting because i dont dump after 1 hour and try and pump and dump
it like you do on your stocks topinfo.

Get rich quick conmen like you will learn it makes no odds if it is
exciting or not so long as it delivers the goods !

[topinfo] 07/6/2009 22:37

Or are you 8Trader today....??????

[topinfo] 07/6/2009 22:37

There you are 8Trade, another of your exciting stocks....LOL

[8trade] 07/6/2009 10:59

Reece.

There seems to be no urge from any new market makers to get involved
in some of the smallcaps, the credit crunch removed a couple from a
lot of them but nobody keen to take their place, not sure why because
it's easy money in stocks like this, they were selling at 11p in size
recently and now people are buying again at 14p+ !

[reecem] 04/6/2009 22:55

Thanks 8trade. I agree with your earlier posts that we could really do with more MM's on this one. And AJ, I hope your right!

[andrew james] 04/6/2009 18:50

Pretty sure it must be the Results tomorrow which has moved the share price today, we'll see if I'm right in the morning :-)

If the forward statements are good and any other contract news is released at the same time then we should see this move north pretty fast again.

[8trade] 04/6/2009 17:48

Reece.

I checked the limits when Wins went 13p bid and they would take
a 10k sale so they meant business, there was also size offered
at 13.4p but the 2 mm's are so jittery and if one moves the other
usually follows so even though there was size offered the mm decided
to play safe and join wins on 13-15p hence the rise on no volume.

[reecem] 04/6/2009 17:45

Any ideas why a 10% increase in share price today? No significant trade action going on. Formal news to be released regarding european supermarket deal to be released perhaps.........

[andrew james] 31/5/2009 13:31

You have good information Wise_Owl, found this on the net

[wise_owl] 29/5/2009 08:48

Morning Andrew, how right you are, they have been the market leader in South Africa for a long time now but haven't been able to make the break through in Europe or the US.

Europe has been along time goal and they thought that they would break through last year, it has taken them until earlier this month to achieve that.

The Rehig aquisition along with 2 key staff has led to the breakthrough in the US as it all about the quality of the people you employ and they have employed the guys who can take them forward in the US as the recent contract win proves.

Supercart are always strongest in the final quarter so are now very well placed to turn the company into a profit making one which will send the shares higher very quickly due to the shares being very illiquid.

Don't be surprised if a few more annoucements are made between now and the year end with regards to more big customer wins.

Going forward your shopping basket will be full of RFID tags, these tags talk to the till and instantly calculates the shopping trolley total. The one thing in Supercarts favour is metal shopping trolleys have the faraday cage effect on the goods therefore the RFID tags are not read by the till, this means any company like Wallmart (who have already tested RFID) would need to change to Plastic Shopping Trolleys to be able to use the new technology, we are talking very big number here!

This share is still in its infancy, i've been topping up for a while now and don't be suprised to see this double in a very short space of time.

Good luck to anyone already in.

Wise_Owl