Snacktime unveils wider losses but voices confidence

Vending machine and water cooler supplier Snacktime served up lower half-year turnover and wider operating losses, but said a new majority shareholder would help it to enter the cashless payment market.

Snacktime said turnover in the six months to 30 September fell a tenth to £8.52m while operating losses before amortisation, share option charges and one-off costs increased by 23.8% to £370,000.

Gross profit fell 7.8% to £4.8m and pre-tax earnings before one-off costs and share-based payments dropped 21% to £400,000.

Snacktime has carried out a refinancing which has involved majority shareholder Versatel building up its stake in the group this year.

The group said Versatel had the technology to help it expand the use of cashless payments in its vending machines.

Chairman Jeremy Hamer said: "With the refinancing now completed, the company has a genuine opportunity to begin the process of re-building.

"Our new partnership brings with it expertise, technology and thus opportunity although improving results will take time.

"Current trading continues to suffer from tight consumer spending affecting machine revenues while on the positive side our sales teams are experiencing considerable success in both machine and franchise sales. With a strong pipeline of sales opportunity we are increasingly optimistic."

Snacktime shares were flat at 10p at 16:01 in London.