11 August 2008

SNACKTIME plc

("SnackTime", the "Company" or the "Group")

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2008

SnackTime is pleased to announce its preliminary results for the year ended 31 March 2008.

FINANCIAL HIGHLIGHTS

• Turnover increased by 27% to £3.8 million (2007: £3.0 million)

• Gross profit increased by 29% to £3.1 million (2007: £2.4 million)

• Adjusted profit after tax increased by 34% to £254K (2007: £189K)

• Strong balance sheet with cash at the year end of £1.9 million

OPERATIONAL HIGHLIGHTS

• 6,500 SEQs as at 31 March 2008 (2007: 4,500) a 44% increase

• Admission to AIM in December 2007 raising £3 million gross

Blair Jenkins, CEO, commented:

"2007/08 was a transformational year for the Company with its admission to AIM and successful fundraising in December 2007. We are very pleased with the Company's performance in 2007/08 both in terms of our number of SEQs and our financial results which are ahead of expectations. Demand for our products continues to grow and we look forward to another year of further growth with confidence."

Enquiries:

Notes to Editors: -

SnackTime plc (AIM: SNAK.L), is the holding company of SnackTime UK, which is one of the UK's largest national operators of snack and chilled drink vending machines. The Group has approximately 6,500 installed SEQs located throughout the UK, which are serviced by its five main depots located in Cumbernauld (near Glasgow), Manchester, Alcester, Wokingham, and Belfast. Each main depot is responsible through a team of area managers, merchandisers and engineers for installing, maintaining and restocking all of the Group's vending machines.

CHAIRMAN'S STATEMENT

I am happy to report that 2007-8 was yet another successful year for SnackTime. The Company's estate of machines increased by 44% in 2007-8; with most of this growth occurring in the fourth quarter of the financial year. This estate growth was possible, largely as a result of the funding received from the successful flotation of the business on AIM in December 2007. A total of £3.0 million of new finance was raised for SnackTime at a time when the markets were particularly difficult for new entrants.

Sales for 2007-8 grew by 27% over the previous year, operating profits were £257k, but when adjusted for IPO costs (see Table 1) the operating profit increased by 27% to £388k.

The Company successfully launched a range of new glass fronted snack machines in the fourth quarter which have proved exceptionally popular with customers. The UK order book remains strong across all machine types and indeed due to customer demand SnackTime commenced operations in Northern Ireland in the third quarter of 2007. 

In addition to a strong UK trading position, we are pleased to report that there is strong international interest in SnackTime and the company has plans to enhance its growth by expanding its operations into mainland Europe in the near future. 

Michael Jackson

Chairman

BUSINESS REVIEW AND FUTURE DEVELOPMENTS

SnackTime is one of the UK's largest national operators of snack and chilled drink vending machines. The Company has thousands of customers across both the private and public sector throughout the UK.

The year to 31 March 2008 was yet another successful year for SnackTime. The Company's machine estate increased by 44%, with most of this growth occurring in the fourth quarter of the financial year. As at 31 March 2008, the Company had circa 6,500 machines in operation.

This growth was possible, largely as a result demand and the funding received from the Company's successful flotation on AIM in December 2007. A total of £3.0 million of new finance was raised for SnackTime at a time when the markets were particularly difficult for new entrants.

Sales for 2007-8 grew by 27% to £3.8 million (2007: £3.0 million). After taking into account IPO/PLC costs SnackTime's EBITDA improved by 16% to £660K (2207: £568K) and adjusted PBT improved by 34% to £254K (2007: 189K).. 

The Company successfully launched a range of new glass fronted snack machines in the fourth quarter which have proved exceptionally popular with customers. The UK order book remains strong across all machine types and indeed due to customer demand SnackTime commenced operations in Northern Ireland in the third quarter of the year.

UK Market Development

SnackTime is the dominant market leader in the provision of snack vending to the retailing sector in the UK. In 2008/9 SnackTime's main focus is snack expansion into public, leisure, motor trade and private industry sectors. Market research shows that there is approximately 150,000 snack machine opportunities in these areas. SnackTime intends to grow its UK market presence by another 2,500 machines this year.

New Products

SnackTime is actively seeking to broaden its product range into hot beverages and chilled filtered water units. There is strong demand for these services from existing customers and in addition the Company receives a large number of enquiries from potential customers in these areas. These products fit well with SnackTime's existing snack range not only from a sales perspective but also from an operational one as well. There are obvious economies of scale from increasing SnackTime's customer offering.

SnackTime is pursuing a dual strategy in terms of its intended expansion into hot beverages and water coolers. Firstly SnackTime is in discussion with a number of businesses already in these fields and if terms become acceptable then SnackTime intends to enter these new product areas via an acquisition. Secondly SnackTime is undertaking research and development work in order to develop a product range and business trading package that will enable SnackTime to enter these markets, if necessary, from the ground up.

International Market development

There has been strong international interest in Snacktime's offering for several years and following the IPO the company now has resources to enter targeted countries. SnackTime's brand partners are keen for the business to expand its geographic base. SnackTime is working very closely with its brand partners to identify the right markets and entry strategies. 

A significant number of customer sites have now been secured in Eire and SnackTime will commence operations in Eire in 2008. This country will be operated by SnackTime's existing operations.

Market evaluations are also progressing in Germany, Scandinavia, Netherlands and Eastern Europe. If market conditions are favourable and if the right partners or staff can be found, then the Company intends to start mainland Europe operations in 2009.

Current Trading and Outlook

The priorities for the business in the current year are:

• Expansion of the core snacks range into new UK market sectors of the motor trade, leisure and public. SnackTime has already secured a major new contract in one of these sectors and expects to achieve its 2,500 machine growth this year via growth into these sectors;

• Development of hot beverage division and filtered water divisions. Acquisition discussions are progressing as is R&D work; and

• International development work is already underway. Operations will commence in Eire in Q4 2008 and mainland Europe in 2009. 

The Company is well placed for the current year and we believe that 2008/2009 will be another exciting year of good growth for the Company. 

Table 1 - Reconciliation to adjusted Profit

RESULTS AND DIVIDENDS

The Group's revenue for the year was £3,807,784 (2007 - £2,998,505), yielding a gross profit of £3,053,465 (2007 - £2,432,147) and an operating profit of £257,139 (2007 - £305,256) 

The Group's profit for the year after taxation was £47,347 (2007 - £161,496). This gives basic earnings per share of 0.87p (2007 - 3.0p).

The Directors do not recommend payment of a dividend in respect of the year ended 31 March 2008.

KEY PERFORMANCE INDICATORS

The Directors are pleased to announce a 27% increase in sales this year which is in line with expectations. Interest cover has remained fairly constant over the current and prior years.

Non-financial Indicators

The Company's machine estate increased from 4,500 to just under 6,500 SEQs. This represents a 44% increase with most of this growth taking place in the fourth quarter of the financial year putting the Group in a good position for future years.

NON-CURRENT ASSETS

Details of changes in non-current assets are given in Note 12.

This preliminary announcement does not constitute the Company's statutory accounts within the meaning of Section 240 of the Companies Act 1985.

The results for the year ended 31 March 2008 have been extracted from the audited accounts of the Group for that year which have not yet been delivered to the Registrar of Companies. The financial information for the year ended 31 March 2007 is derived (after adjustments for International Financial Reporting Standards) from the statutory accounts for that year, which have been delivered to the Registrar of Companies. The report of the auditors on those filed accounts was unqualified. The accounts for the year ended 31 March 2008 and 31 March 2007 did not contain a statement under s237(2) or s237(3) of the Companies Act 1985.

This preliminary announcement has been prepared in accordance with International Financial Reporting Standards.

Consolidated Income Statement

Year Ended 31 March 2008

All operations relate to continuing operations

Consolidated Statement of Changes in Equity

Consolidated Balance Sheet

31 March 2008

Consolidated Cash Flow Statement

Year Ended 31 March 2008