TIDMWHLP
26 January 2017
Wheelsure Holdings plc
("Wheelsure" or the "Group")
Final Results for the Year Ended 31 August 2016
CHAIRMAN'S STATEMENT
I am pleased to announce the results for the financial year
ended 31 August 2016, a period in which we have continued to make
progress in our main territories:
-- Sales of GBP290,330 an increase of 21% compared with 2015 (GBP239,525);
-- In addition to the sales above, royalty income was received of GBP18,328
(2015: GBP22,168);
-- During the year further sales and orders were received in all our main
strategic territories. Particular highlights include:
First order in Italy for the supply of specialist track
equipment
incorporating Tracksure technology, where Tracksure will
subcontract the total manufacture;
First orders from Austrian railways, ÖBB-Infrastruktur AG;
and
Growing business in Holland.
-- Fund raising, in Autumn 2015 of GBP240,500 from existing and new
investors, and a further GBP106,000 during October 2016.
A brief outline of the progress being made is as follows:
UK
Whilst orders continue to be received from London Underground
(LUL), the previously reported budgetary constraints following the
Mayoral election have severely restricted order flow during the
year. However, in the post reporting period, we have received three
orders from existing customers within LUL and this is very
positive.
This is an excellent indication that where Tracksure is used it
continues to perform positively and we remain confident that
further orders from a broader network of customers will continue to
flow.
Keolis Amey Docklands (maintenance provider of Docklands Light
Railway (DLR)) has placed orders for two track applications during
the year. In both cases Tracksure has been incorporated into the
design specification. The Board believe that this, along with
progress on a third track application, is a positive indication for
the future.
In the post-reporting period, Tracksure has received its first
orders for three track applications on High Speed infrastructure.
These orders, totalling just over GBP30,000, follow a design and
product assessment phase and are a very positive development in the
UK. They are also indicative of the progress that Tracksure is
making with major infrastructure managers and maintenance
contractors on a widening range of infrastructure.
Additionally, Tracksure has submitted products for fatigue
testing for the first time with Network Rail who are responsible
for the majority of the UK's track assets. The products have so far
tested successfully and we will seek to build upon this
initiative.
Italy
Progress continues to be made in Italy with increased orders
from both the state rail operator, Rete Ferroviaria Italiana (RFI)
and Ferrovienord. In the case of RFI, a significant number of
crossings have been built incorporating Tracksure and are now
fitted in five separate locations in Italy. In addition, a
successful tender was won from Ferrovienord for insulated glued
joints (incorporating the Tracksure product) whereby we will manage
the subcontracted manufacture. Ferrovienord are also incorporating
Tracksure into their specification for crossings and the Board is
confident that this business will continue to develop.
In the recent fundraising completed on 18 November 2016, the
agent that holds the exclusive agency for Italy, also subscribed
for in excess of 4.5m shares in lieu of future commissions of which
562,400 shares have been issued.
Germany & Austria
We have received orders from both countries, which flow from the
previously reported DB Netz AG (DB) approval. We continue to work
with Siemens AG to gain business from the broader portfolio of
their brake retarder business and this is evidenced by their export
of a Tracksure-fitted retarder to the USA for the first time.
A successful trial with Thyssen Krupp Steel Europe AG, on a
private rail network in Germany, was undertaken this year and the
Board is confident that this will lead to a first order.
In addition, Tracksure supplier status to DB (HQ1) has been
renewed.
Holland & Belgium
Previously we have reported upon our developing commercial
relationship with Strukton Rail Nederland B.V., one of Europe's
largest rail infrastructure manufacturers. A formal agreement is
still being finalised but we have already seen orders fulfilled for
managed industrial sites and associated track during the period.
The first order from Voestalpine Railpro BV in Holland, which we
are confident will demonstrate the efficacy of Tracksure on a new
group of products, has also been delivered and fitted. Voestalpine
AG are one of the world's largest manufacturers of specialist rail
equipment.
USA
Royalty income of GBP18,328 was received during the period.
Progress in the USA has been slower than anticipated and we are
addressing this with our partner. Despite this we are pleased that
our supply of diamond crossing parts to the Norfolk Southern
Railroad is now extending to the other main railroads and that our
North American supply chain, essential to satisfy "Buy America"
policy, has been established.
The Board remain confident that our strategy will see business
develop further in the specific targeted markets as evidenced
above. A considerable amount of work has also taken place with
advisers to identify opportunities in other sectors and, as
resources permit, these will be pursued.
The Board would like to thank all our shareholders for their
continued support.
G Mulder
Chairman
25 January 2017
WHEELSURE HOLDINGS PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the Year Ended 31 August 2016
2016 2015
GBP GBP
TURNOVER 290,330 239,525
Cost of sales (153,003) (123,360)
GROSS PROFIT 137,327 116,165
Administrative expenses (405,109) (354,872)
(267,782) (238,707)
Other operating income 18,328 22,168
OPERATING LOSS (249,454) (216,539)
Interest receivable and similar income 22 2
Interest payable and similar charges (12,713) (11,492)
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (262,145) (228,029)
Tax on loss on ordinary activities 15,146 10,640
LOSS FOR THE FINANCIAL YEAR (246,999) (217,389)
OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE LOSS FOR THE YEAR (246,999) (217,389)
BASIC AND DILUTED LOSS PER
SHARE 0.16p 0.16p
WHEELSURE HOLDINGS PLC
CONSOLIDATED BALANCE SHEET
31 August 2016
2016 2015
GBP GBP GBP GBP
FIXED ASSETS
Intangible assets 88,282 87,862
Tangible assets 3,198 5,923
91,480 93,785
CURRENT ASSETS
Stocks 52,620 34,639
Debtors 140,767 84,455
Cash at bank 24,752 41,827
218,139 160,921
CREDITORS
Amounts falling due (230,129) (186,195)
within one year
NET (11,990) (25,274)
CURRENT LIABILITIES
TOTAL ASSETS 79,490 68,511
LESS CURRENT
LIABILITIES
CAPITAL AND RESERVES
Called up share 1,641,942 1,381,442
capital
Share premium 3,443,250 3,443,250
Retained earnings (5,005,702) (4,756,181)
SHAREHOLDERS' FUNDS 79,490 68,511
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 2016 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 2015 have been
delivered to the Registrar of Companies. The auditors' report in
relation to both years was unqualified, contained an emphasis of
matter with respect to going concern, and did not contain a
statement under section 498 of the Companies Act 2006.
This announcement contains information which, prior to its
disclosure, was inside information for the purposes of the Market
Abuse Regulation.
2. ACCOUNTING POLICY - GOING CONCERN
The Directors have approved budgets and cash flows for the Group
for the period to 31 January 2018. These budgets and cash flows
forecast that the Group will generate sufficient cash from its
trading operations to remain as a going concern until at least 31
January 2018.
The Directors are confident that, even if there was a slippage
in the value or timing of the forecast sales, the Group would still
generate sufficient cash flow to remain as a going concern until at
least 31 January 2018. The Directors are confident that by a
combination of either reducing the Group's expenditure and/or
raising additional capital they would achieve the required cash
flow. The Group has already successfully raised additional funds of
GBP106,000 since the year ended 31 August 2016.
However, given the significant level of the increase in the
forecast sales and the unpredictability of sales forecasting there
exists a material uncertainty regarding the value and timing of
these future forecast sales and the effect of any shortfall on the
Company's ability to continue as a going concern.
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 to
continue in operational existence until at least 31 January 2018
and for this reason they continue to adopt the going concern basis
in preparing the financial statements of the Group.
3. DIVIDENDS
No dividends are proposed for the year ended 31 August 2016.
4. Copies of the Report and Accounts will be sent to
shareholders shortly and will be available from the registered
office of the Company, 8 Woburn Street, Ampthill, Bedfordshire,
MK45 2HP, and also on the company's website,
www.tracksure.co.uk.
Enquires:
Wheelsure Holdings plc
Gerhard Dodl, CEO 01525 840 557
Daniel Stewart & Company Plc 0207 776 6550
Daphne Zhang - Corporate Adviser
David Lawman - Broker
View source version on businesswire.com:
http://www.businesswire.com/news/home/20170126005561/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
January 26, 2017 08:06 ET (13:06 GMT)