METROELECTRIC PLC
("Metroelectric" or the "Company")
Unaudited Final Results
Chairman's Statement
The Board is pleased to present the results of Metroelectric plc for the year ended 30th June 2012.
During the reporting period, the Company made a loss for the year to 30 June 2012 of £295,527 (2011: £1,277,427). The loss per ordinary share for the year was 0.061p (2011: 0.342p). Sales have been significantly affected by difficult economic conditions and an exceptionally dull and wet summer in the UK.. Product development has also been limited by the Company's cash position during the year. The Board has worked tirelessly during the year to consolidate the Company's debt position, the results of which will only fully be reflected in next year's results.
Following Paul Rewrie's departure from the Board in January, the Company has undertaken a review of its financial position and has taken steps to improve the Company's balance sheet. The steps taken to streamline the business' fixed costs have significantly reduced the loss before taxation to £295,527, compared to £1,277,427(loss) in the previous year.
POST BALANCE SHEET EVENTS
On 17th July 2012 the Company announced that it has entered into an initial five year, exclusive agreement with Jinhua Xiongying Electric Vehicle Manufacturer Ltd ("Jinhua") to distribute its electric bikes, trikes and folding bikes in the UK and Eire. Jinhua manufacture a wide range of innovative electric bikes, currently known as eRolling Bikes.
On the 2nd August 2012 the Company announced it had settled £309,000 of convertible loan notes, issued by the Company, into equity, clearing the majority of the long term debt of the Company.
On the 5th November 2012, Metroelectric sold a 30% stake in Powabyke EV Ltd, its trading subsidiary, to the Green Automotive Company Corporation ("GACR"), for 1,050,000 GACR ordinary shares. GACR shares are traded on the OTC Market Tier--OTC Pink Current under the ticker "GACR".
At the same time, the Company also signed a management contract with Liberty Electric Cars Ltd ("Liberty"), a wholly owned subsidiary of GACR, for the UK distribution of the Metroelectric's range of electric bikes under the Powabyke and eRolling brand. Under the agreement, Liberty assumes full responsibility for the distribution, management and control of the Powabyke business in the UK and Eire. Consequently, the heads of term agreement between the Company and Eveport Limited was terminated. On 7 November 2012, Metroelectric acquired Eveport Ltd and assumed control of client management and accounting systems which will assist in the distribution of Powabyke products.
On the 7th November 2012 the Company raised £250,000 through the issuance of convertible loan notes. These funds will be used to settle outstanding liabilities of the Company and to provide working capital going forward.
The Board sees the restructuring of the Company's financial position during the past year as an essential part of the process of getting Metroelectric back to profitability. We continue to actively seek new partners to represent the Powabyke brand worldwide. The Board will continue to work hard to strengthen the balance sheet of the Company and further develop the Powabyke brand in the hope of creating value for Shareholders in the future.
Greg Collier
Chairman
Metroelectric plc
30 November 2012
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 30 June 2012
| 2012 £ | 2011 £ | |||
| Turnover | 226,619 | 613,127 | ||
| Cost of sales | (248,295) | (630,937) | ||
| Gross loss | (21,676) | (17,810) | ||
| EU grant income | - | 13,189 | ||
| Distribution costs | - | - | ||
| Administrative expenses | (233,626) | (644,240) | ||
| Loss on disposal of fixed assets | - | - | ||
| Impairment of goodwill | - | (432,396) | ||
| Operating loss | (255,302) | (1,081,257) | ||
| Interest payable and similar charges | (40,225) | (196,170) | ||
| Loss on ordinary activities before taxation | (295,527) | (1,277,427) | ||
| Tax on loss on ordinary activities | - | - | ||
| Loss for the year | (295,527) | (1,277,427) | ||
| Earnings per share (pence) | ||||
| Basic and diluted loss per share | (0.061)p | (0.342)p | ||
CONSOLIDATED BALANCE SHEET
as at 30 June 2012
| . | 2012 | 2011 | |||||||||
| £ | £ | ||||||||||
| Fixed assets | |||||||||||
| Goodwill | 421,917 | 443,917 | |||||||||
| Other intangible fixed assets | 13,840 | 16,264 | |||||||||
| 435,757 | 460,181 | ||||||||||
| Current assets | |||||||||||
| Stocks | 64,653 | 115,875 | |||||||||
| Debtors | 27,448 | 352,945 | |||||||||
| Cash at bank and in hand | 399 | 15,098 | |||||||||
| 92,500 | 483,918 | ||||||||||
| Creditors: Amounts falling due within one year | (386,224) | (733,409) | |||||||||
| Net current liabilities | (293,724) | (249,491) | |||||||||
| Creditors greater than one year: | |||||||||||
| Convertible loan notes | (194,521) | (190,151) | |||||||||
| Net liabilities/(assets) | (52,488) | 20,539 | |||||||||
| Capital and reserves | |||||||||||
| Called up share capital | 602,011 | 379,511 | |||||||||
| Share premium | 1,010,586 | 1,010,586 | |||||||||
| Loan note holders reserve | 22,471 | 22,471 | |||||||||
| Share option reserve | 132,240 | 132,240 | |||||||||
| Profit and loss account | (1,819,796) | (1,524,269) | |||||||||
| Shareholders' deficit/ (funds) | (52,488) | 20,539 | |||||||||
In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure made in note 1 to the financial statements concerning the Group's ability to continue as a going concern. The Group incurred a net loss of £295,527 during the year ended 30th June 2012 and, at that date, the Group has net liabilities of £52,488 and net current liabilities of £293,724. These conditions, along with the other matters explained in note 1 to the financial statements, contained in the full accounts, indicate the existence of a material uncertainty which may cast significant doubt about the Group's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the Group was unable to continue as a going concern.
The financial information contained in this announcement has not been audited. The financial information contained in these results has been reviewed by the Company's auditor.. The Company does not declare a dividend for the period.
--ENDS--
The Directors of the Company accept responsibility for this announcement.
Enquiries:
Metroelectric Plc
Greg Collier
Tel: 078 3018 2501
Peterhouse Corporate Finance Ltd
Eran Zucker/Fungai Ndoro
Tel: 020 7469 0932