METROELECTRIC PLC
("Metroelectric" or the "Company")
INTERIM RESULTS FOR THE PERIOD ENDED 31st DECEMBER 2011
Chairman's Statement
I am pleased to present the interim results for the Company for the period up to 31st December 2011.
The steps we have taken to streamline operations, as detailed in my previous statement, have significantly reduced our fixed costs with a minimal effect to our sales capacity. Whilst we still have considerable work ahead of us, the Directors are confident that the business will return to profitability.
The warranty issues associated with Powabyke, identified in our last results have been addressed and further product improvements will be introduced to the brand within the next few months. In addition we expect to expand the range of products.
Since August 2011, the Company has raised £230,000 and received the first payment of an EU grant of £85,000. From these proceeds, the Company repaid £200,000 of debt, including outstanding interest.
In December 2011, the Company announced that it had signed non-binding Heads of Terms with Eveport Limited for a for an exclusive UK licensing agreement. Whilst the agreement has not been finalised, we have been working closely with Eveport Limited and expect to ratify the position in the near future.
We are actively seeking international partners to represent the Powabyke brand overseas. Powabykes are now available in Ireland, Sweden, Denmark, Holland and China.
The Company's commitment to the emerging electric vehicle market remains strong and we are increasingly convinced that this is a growth sector for both leisure activities and commuting. As such, the Board continues to pursue a number of associated opportunities.
I am pleased to report that since the beginning of the year, Powabyke rate of sales are increasing in-line with seasonal expectations.
Greg Collier
Chairman
UNAUDITED PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDING 31st DECEMBER 2011
| 6 months to | 6 months to | |||
| 31/12/2011 | 31/12/2010 | |||
| Turnover | 130,100 | 350,252 | ||
| Cost of sales | 128,127 | (172,191) | ||
| Gross profit | 1,973 | 158,061 | ||
| Administrative expenses | (133,021) | (156,350) | ||
| Operating loss | (131,048) | 1,711 | ||
| Interest payable and | (30,711) | (34,432) | ||
| similar charges | ||||
| Loss on ordinary activities | (161,759) | (36,143) | ||
| Profit and loss reserve | (1,524,269) | (246,842) | ||
| brought forward | ||||
| Profit and loss reserve | (1,686,028) | (282,985) | ||
UNAUDITED BALANCE SHEET AS AT 31st DECEMBER 2011
| As at | As at | ||||
| 31/12/2011 | 31/12/2010 | ||||
| Fixed Assets | |||||
| Intangible assets | 445,317 | 883,962 | |||
| Tangible assets | 8,790 | 42,275 | |||
| 454,107 | 926,237 | ||||
| Current Assets | |||||
| Stocks | 133,121 | 202,840 | |||
| Debtors | 160,546 | 209,207 | |||
| Cash at bank | 759 | 61,654 | |||
| 294,426 | 473,701 | ||||
| Creditors - Within one year | (599,602) | (121,826) | |||
| Net current assets | (305,176) | 351,875 | |||
| Long term liabilities | (190,151) | (261,000) | |||
| Net assets/liabilities | (41,220) | 1,017,112 | |||
| Capital and reserves | |||||
| Called up share capital | 479,511 | 369,100 | |||
| Share premium reserve | 1,010,586 | 930,997 | |||
| Loan note reserve | 22,471 | - | |||
| Share option reserve | 132,240 | - | |||
| Profit and loss reserve | (1,686,028) | (282,985) | |||
| Shareholders' funds | (41,220) | 1,017,112 | |||
The financial information contained in the interim statement has not been reviewed by the Company's auditors and does not constitute statutory accounts.
The directors of the Company accept responsibility for the announcement.
--ENDS-
Enquiries:
METROELECTRIC PLC
Mark Chapman
+44 148 389 4627
RIVINGTON STREET CORPORATE FINANCE
Fungai Ndoro/ Eran Zucker
+44 207 562 3373