(SNAK.L) SnackTime PLC Buy/Sell

Blair Jenkins, Chief Executive commented,

"This has been another successful year for SnackTime with significant growth in our vending machine estate, sales and profits. The economic environment remains difficult and the business has also had to withdraw vending machines from a larger than anticipated number of customers. However, the business continues to see very good opportunities in the coming year, and we remain optimistic that Snacktime's excellent growth record can be continued."

Enquiries:

Snacktime plc Tel: 01189 773 344

Blair Jenkins, Chief Executive Julia Brand, Finance Director
Arbuthnot Securities Tel: 020 7012 2000

Tom Griffiths/Alasdair Younie/Ben Wells

Notes to Editors: -

SnackTime plc (AIM: SNAK.L), is the holding company of SnackTime UK Limited, which is one of the UK's largest national operators of snack and chilled drink vending machines. The group has thousands of sites 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.

The core element of the Group's business model is that it retains ownership of the vending machines, which are sited free on loan. The Group generates cash through sales of products from its vending machines and also from contributions from its Brand Partners, Mars, Britvic, PepsiCo (Walkers Crisps) and Coca-Cola.

SnackTime UK has four main types of vending machines. The Group decides on the appropriate style and size of vending machine which is installed in each customer's site so as to deliver a high level of customer service to maximise sales. The Group's customers include national retailers, such as Matalan, Argos, Homebase and Dunelm Mills, as well as a large number of offices and factories.

The Company's Annual Report and Accounts will be available on the Company's website and will be posted to shareholders by the end of August 2009. This announcement will be available on the Company's website at www.snacktimeplc.com.

DIRECTORS' STATEMENT

SnackTime is pleased to report another highly successful year of trading with sales in the year up by 75% with organic sales growth of approximately 30%. EBITDA is up 79% and profit before tax up 64%. The Group has significantly grown its snack vending machine estate and in addition has commenced the operation of hot beverage machines. SnackTime's growth continues to be exceptional compared to the vending industry norm.

The Group's revenue for the year was £6,673,965 (2008: £3,807,784), yielding a gross profit of £4,092,451 (2008: £3,053,465) and an operating profit of £399,255 (2008: £257,139). The Group's profit for the year after taxation was £130,993 (2008: £47,347). This gives basic earnings per share of 1.82 pence (2008: 0.87p). The Directors do not recommend payment of a dividend in respect of the year ended 31 March 2009 (2008: nil).

The current economic climate is encouraging organisations of all shapes and sizes to seek value from their suppliers. SnackTime's free on loan business model is particularly attractive to current and potential customers in these tougher economic times.

The growth this year has largely occurred as a result of an increase in new customers with several new multisite private and public sector customers being acquired. The Group significantly grew its base of glass fronted snack and chilled drink machines and the Board believes this is where most of the Group's growth in the current financial year will occur.

Demand for snack and chilled drink machines continues to be high. However, the Group is being much more selective over new sites in order to ensure that new customers generate the necessary return on capital invested.

The Company already has a very sophisticated IT infrastructure. Nevertheless further major IT upgrades and additions are currently being implemented. These IT improvements, when completed, will enable the Group's managers to remotely access the Group's central database whilst in the field via handheld devices. In addition, data entry is being converted from a manually-inputted paper based system to instant data input at source in the field. This should enable the business to improve efficiency still further and drive down operating costs over time.

The Group has many thousands of sites located throughout the UK mainland and both Northern and the Republic of Ireland. SnackTime believes it operates the most efficient and best customer service in its sector and this coupled with its policy of providing machines to customers on a 'free on loan' strategy results in a proposition which is in high demand.

The Group bases its team area managers, merchandisers and engineers at five main depots in Wokingham, Alcester, Belfast, Manchester and Glasgow. All of the Group sites are serviced from these hubs. SnackTime's head office is in Wokingham, Berkshire, and its sales office is located in Evesham, Worcestershire.

The core element of SnackTime's business model is that it retains ownership of all vending machines, which are sited at no cost to the site owner/occupier. SnackTime generates cash in two ways - firstly from the sales of product through the machines and secondly through contributions from its Brand partners - Mars, Walkers, Britvic and Coca Cola. SnackTime operates what it believes to be an industry leading service to its customers both in terms of efficiency and quality.

New products and current trading

Inaddition to its core customer base, SnackTime continues to receive high demand from two related types of customers. Firstly, those customers who are too small to be given a free on loan machine and secondly from customers wanting hot beverage machines. The Group is currently conducting trials in both these areas with a view to rolling out innovative market solutions in the forthcoming year. The Directors believe that these new solutions will significantly increase growth and profits in the forthcoming year and create economies of scale. In both cases the developing plans are based upon strong consumer branding by linking the solutions in a symbiotic relationship with major multinational brand partners.

SnackTime also continues to evaluate potential acquisitions in both its core snack sector as well as hot beverages. However, it is focused on ensuring that any new acquisitions strategically fit the Group's growth plans and are also priced at good value.

The Directors are confident that the current financial year will be another year of significant progress despite the current economic climate

Consolidated Income Statement

Year Ended 31 March 2009

£ £

Revenue 6,673,965 3,807,784

Cost of sales (2,581,514) (754,319)

Gross profit 4,092,451 3,053,465

Distribution costs and administration expenses (3,693,196) (2,796,326)

Profit from operations 399,255 257,139

Investment income 54,531 40,107
Finance costs (251,853) (174,395)

Profit before taxation 201,933 122,851

Income tax expense (70,940) (75,504)

Profit after taxation 130,993 47,347

Basic profit per share 1.82 pence 0.87 pence
Diluted profit per share 1.82 pence 0.85 pence

All operations relate to continuing operations

Consolidated Statement of Changes in Equity
Issued share capital Share premium Share option reserve Equity element of Capital redemption Merger reserve Retained earnings Total
account compound financial reserve
instrument
£ £ £ £ £ £ £ £
Balance as at 1 April 2007 97,224 - - - 1,274,279 116,892 (240,054) 1,248,341
Profit for the year & total - - - - - - 47,347 47,347

recognised income and expense in year

Share option expense - - 38,189 - - - - 38,189
Issue of share capital 41,667 2,753,458 - - - - - 2,795,125
Balance as at 31 March 2008 138,891 2,753,458 38,189 - 1,274,279 116,892 (192,707) 4,129,002
Balance as at 1 April 2008 138,891 2,753,458 38,189 - 1,274,279 116,892 (192,707) 4,129,002
Profit for the year - - - - - - 130,993 130,993
Total recognised income and - - - - - - 130,993 130,993

expense for the year

Issue of share capital 10,836 454,185 - - - - - 465,021
Equity element of compound - - - 65,810 - - - 65,810

financial instruments issued

Share option expense - - 72,013 - - - - 72,013
Share issue costs - (141,118) - - - - - (141,118)
Balance as at 31 March 2009 149,727 3,066,525 110,202 65,810 1,274,279 116,892 (61,714) 4,721,721
Consolidated Balance Sheet

31 March 2009

£ £

Non current assets
Property, plant and equipment 5,104,828 3,315,495
Deferred tax asset - 52,169

5,104,828 3,367,664

Current assets
Inventories 933,203 754,946
Trade and other receivables 987,014 887,480
Cash and cash equivalents 1,116,749 1,903,020
3,036,966 3,545,446

TOTAL ASSETS 8,141,794 6,913,110

Current liabilities
Borrowings (824,833) (649,010)
Trade and other payables (613,408) (769,780)
(1,438,241) (1,418,790)

Non current liabilities
Borrowings (1,963,061) (1,344,155)
Trade and other payables - (21,163)
Deferred tax liability (18,771) -
(1,981,832) (1,365,318)

TOTAL LIABILITIES (3,420,073) (2,784,108)

NET ASSETS 4,721,721 4,129,002

Share capital 149,727 138,891
Share premium account 3,066,525 2,753,458
Merger reserve 116,892 116,892
Capital redemption reserve 1,274,279 1,274,279
Share option reserve 110,202 38,189
Equity element of compound financial instrument 65,810 -
Retained earnings (61,714) (192,707)

TOTAL EQUITY 4,721,721 4,129,002

Consolidated Cash Flow Statement

Year Ended 31 March 2009

£ £

Cash flow from operating activities Adjusted for:

Profit before taxation 201,933 122,851
Finance costs 251,853 174,395
Finance income (54,531) (40,107)
Depreciation of property, plant and 641,623 325,724

equipment

Profit on disposal of property, plant and (1,617) (21,314)
equipment
Share based payment expense 72,013 38,189

Operating cash flow 1,111,274 599,738

Increase in inventories (178,257) (277,640)
Increase in receivables (99,534) (122,354)
Decrease in payables (177,536) (370,094)

Cash generated from operating activities 655,947 (170,350)

Interest paid (251,853) (174,395)

Net cash from operating activities 404,094 (344,745)

Cash flow from investing activities

Interest received 54,531 40,107
Proceeds on disposal of property, plant 1,617 51,491

and equipment

Purchase of property plant and equipment (2,430,956) (1,511,859)
Net cash generated from investing activities (2,374,808) (1,420,261)

Cash flow from financing activities

Repayment of borrowings (717,659) (86,033)
Hire purchase and loan advances 1,724,430 826,871
Proceeds on issue of shares and other 344,093 2,795,125

equity instruments
Net cash generated from financing activities 1,350,864 3,535,963

Net (decrease)/increase in cash and cash (619,850) 1,770,957

equivalents Cash and cash equivalents

Cash and cash equivalents at beginning of 1,735,066 (35,891)
year

Cash and cash equivalents at end of year 1,115,216 1,735,066

Cash and cash equivalents comprise:

Cash 1,116,749 1,903,020
Overdrafts (1,533) (167,954)

1,115,216 1,735,066

Notes to the results

1. publication of non-statutory accounts

The financial information set out in this announcement does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The financial information for the year ended 31 March 2008 has been extracted from the Group's financial statements to that date which received an unmodified auditor's report and have been delivered to the Registrar of Companies. The financial information for the year ended 31 March 2009 has been extracted from the Group's financial statements to that date which have received an unmodified auditor's report but have not yet been delivered to the Registrar of Companies.

2. PROFIT from operations

£ £

This is stated after charging/(crediting):

Depreciation of property, plant and equipment

£ £

Bank interest receivable 54,531 40,107

4. FINANCE COSTS

£ £
Interest on bank loans 8,799 67,676
Interest on convertible loan notes 20,277 -
Other loan interest 34,996 34,996

Interest on obligations under finance leases 187,781 71,723

251,853 174,395
5. Staff numbers and costs

The average monthly number of people employed by the Group (including Executive Directors) during the year, analysed by category, were as follows:

Operational staff 28 22
Administrative staff 13 16

The aggregate payroll costs were as follows: 2009 2008
£ £
Wages, salaries and fees 1,124,037 978,366
Pension costs 35,207 -
Social security costs 120,543 107,525
Cost of options issued 72,013 38,189
1,351,800 1,124,080

6. Taxation

£ £
Corporation tax - -

Deferred tax

Origination and reversal of timing differences 80,228 54,926

Adjustments in respect of prior periods (9,288) 20,578
Tax on profit on ordinary activities 70,940 75,504

Factors affecting tax charge for the year:

The tax assessed for the year is lower than the standard rate of corporation tax in the UK of 28% (2008: 30%). The differences are explained below:-

£ £

Profit per accounts before taxation 201,933 122,851

Tax on profit on ordinary activities at standard
rate of 28% (2008 - 30%) 56,541 36,855
Expenses not deductible for tax purposes 21,035 12,350
Ineligible depreciation 2,652 1,995
Adjustments to deferred tax for prior years (9,288) 20,578
Deferred tax adjustments - 10,866
Effect of change in tax rate on opening balances - (7,140)
Current tax charge for the year 70,940 75,504
7. Property Plant and equipment
Furniture,
Leasehold Plant and Motor fittings and
improvements machinery vehicles equipment Total
£ £ £ £ £

Cost
At 1 April 2007 38,696 2,628,440 295,228 91,271 3,053,635
Additions 8,911 1,473,302 2,231 27,415 1,511,859
Disposals - - (83,888) - (83,888)
At 1 April 2008 47,607 4,101,742 213,571 118,686 4,481,606
Additions 55,213 2,168,001 141,481 66,261 2,430,956
Disposals - - (37,709) - (37,709)
At 31 March 2009 102,820 6,269,743 317,343 184,947 6,874,853

Depreciation
At 1 April 2007 16,264 673,478 140,449 63,907 894,098
Charge for the year 13,417 244,468 48,742 19,097 325,724
Disposals - - (53,711) - (53,711)
At 1 April 2008 29,681 917,946 135,480 83,004 1,166,111
Charge for the year 13,120 546,980 61,258 20,265 641,623
Disposals - - (37,709) - (37,709)
At 31 March 2009 42,801 1,464,926 159,029 103,269 1,770,025

Net Book Value
At 31 March 2009 60,019 4,804,817 158,314 81,678 5,104,828
At 31 March 2008 17,926 3,183,796 78,091 35,682 3,315,495
Property Plant and equipment (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:

£ £

Plant and machinery 1,885,241 1,463,950
Motor vehicles 136,239 47,797
2,021,480 1,511,747

This information is provided by RNS The company news service from the London Stock Exchange

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