DJ Wheelsure Holdings (WHLP) Final Results
Wheelsure Holdings plc
("Wheelsure" or the "Group")
Final Results for the Year Ended 31 August 2018
Whilst our customer base and contacts in strategic countries remains strong and will facilitate further business, order intake in the year was not at the expected level. With sales of GBP104,536 (2017: GBP248,908), including royalty income of GBP8,066 (2017: GBP23,162). This led to a loss before tax of GBP336,004 against GBP329,557 the previous year.
In spite of this, I was pleased to announce in November that a sum of GBP125,000 (before expenses) was raised by the issue of 12.5m ordinary shares at 1p per share. Furthermore, a working capital facility of up to GBP125,000 has now been agreed and is available for drawdown when needed. This will boost working capital and help towards our strategic collaboration with AIM listed Haydale Graphene Industries plc (Haydale).
Under terms of the agreement the parties have agreed to commence a project to produce a "smart" graphene pressure sensor that will offer benefits for all fastener applications across all business sectors. The project will be to be carried out in a partnership with the Graphene Engineering Innovation Centre (GEIC) which is part of the University of Manchester. Commercial terms on the project funding are still being finalised.
Additionally, Wheelsure has entered into a sales arrangement with Haydale whereby they will introduce our existing product solution to several identified customers, with infrastructure projects in USA and China.
We continued to receive orders from both London Underground (LUL) and Keolis Amey Docklands (DLR), although not at the anticipated levels in this period. The recently granted extended product approval received from LUL means that we have an even stronger platform with that organisation and orders have continued since the year end.
Holland, Germany & Austria
Sales in Holland, from voestalpine Railpro B.V and Strukton Rail Nederland B.V (Strukton), were received during the year but were below expectations. However, orders from the former were to conclusively prove the efficacy of Tracksure and the Board is optimistic that, in addition to Strukton, Volker Rail B.V will start to specify the use of Tracksure for new developments.
We received further orders from thyssenkrupp Steel Europe AG and Siemens AG. The latter ordering to meet demand from DB Netz, the German state rail operator. We expect further orders in the coming year. I am also pleased to report that Tracksure has, now, also been formerly approved by ÖBB-Infrastruktur AG in Austria for brake retarders. In trying to build on this development, we are now working with an Austrian partner. Any future business in Austria will continue to enhance our relationship with Siemens AG, the OEM through whom the retarders are ordered.
The long-anticipated full technical approval has now been confirmed by Rete Ferroviaria Italiana (RFI). This technical approval has taken 8 years and means that Tracksure products are now approved for all rail applications. This will give our agent the opportunity to seek approved business throughout Italy with all parts of RFI, the state rail operator.
Royalty income from our arrangements with LB Foster continues to be received. In addition, the Chicago Transit Authority, has issued a new specification for 2019 that is based on Tracksure proprietary technology and LB Foster will now seek to realise Tracksure's potential in the USA Metro sector.
Key Performance Indicators
The directors consider the Group's financial key performance indicators to be turnover and loss before tax.
2018 2017 GBP GBP Turnover 96,470 225,746 Loss before tax 336,004 329,557
Non-financial key performance indicators include the number of new customers. For the year ended 31 August 2018 these amounted to 1 (2017: 5). The lack of new customers has been a factor in the reduction in turnover.
Principal Risks and Uncertainties
There are a number of risks and uncertainties that face the Group. The Board have established a structured approach to identify, assess and manage these risks.
The following list highlights the principal risks:
-- Financial and liquidity risk - the Group faces the financial risk that
there may be insufficient cashflow as working capital in the future to
continue to commercialise the products and generate revenue streams.
Cashflow is monitored carefully and fundraising needs are periodically
evaluated. The directors have prepared forecasts which indicate that
the Group will be able to meet its liabilities as they fall due for at
least the next twelve months.
-- Currency risk - during the normal course of business, certain
transactions are carried out in currencies other than Sterling which
exposes the Group to a certain level of currency risk. To mitigate
this risk, transactions are carried out in Sterling wherever possible,
and minimal cash balances are held in currencies other than Sterling;
-- There is a risk that a failure to gain product approval in new
territories will impact on the ability to gain new customers.
Further detail on all our activities, including those detailed in this report, can be found in the latest newsletter published on our new website (www.wsglobal.com).
Finally, the Board is cognisant of the current uncertainties pertaining to Brexit and, from both the sales and supply perspective, will continue to act appropriately to minimise risk and maintain business opportunity.
The Board would like to thank all our shareholders for their continued support.
G MulderChairman8 May 2019
WHEELSURE HOLDINGS PLC CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the Year Ended 31 August 2018 2018 2017 GBP GBP TURNOVER 96,470 225,746 Cost of sales (52,302) (108,905) GROSS PROFIT 44,168 116,841 Administrative expenses (373,757) (453,179) (329,589) (336,338) Other operating income 8,066 23,162 OPERATING LOSS (321,523) (313,176) Interest payable and similar expenses (14,481) (16,381) LOSS BEFORE TAXATION (336,004) (329,557) Tax on loss 29,435 13,715 LOSS FOR THE FINANCIAL YEAR (306,569) (315,842) OTHER COMPREHENSIVE INCOME - - TOTAL COMPREHENSIVE LOSS FOR THE YEAR (306,569) (315,842) BASIC AND DILUTED LOSS PER 0.13p 0.17p SHARE WHEELSURE HOLDINGS PLC CONSOLIDATED BALANCE SHEET 31 August 2018 2018 2017 GBP GBP GBP GBP FIXED ASSETS Intangible assets 76,904 78,610 Tangible assets 84 1,103 Investments - - 76,988 79,713 CURRENT ASSETS Stocks 36,735 53,136 Debtors 70,799 130,485 Cash at bank 26,966 303,649 134,500 487,270 CREDITORS Amounts falling due (173,652) (222,578) within one year NET (39,152) 264,692 CURRENT (LIABILITIES)/ASSETS TOTAL ASSETS 37,836 344,405 LESS CURRENT LIABILITIES CAPITAL AND RESERVES Called up share capital 2,277,057 2,277,057 Share premium 3,443,250 3,443,250 Retained earnings (5,682,471) (5,375,902) SHAREHOLDERS' FUNDS 37,836 344,405
NOTES TO THE FINANCIAL STATEMENTS
1. PUBLICATION OF NON-STATUTORY ACCOUNTS
The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 435 of the Companies Act 2006.
The financial information for the year ended 31 August 2018 has been extracted from the audited financial statements to that date, which were prepared in accordance with UK GAAP and with the requirements of the Companies Act 2006. These financial statements have yet to be delivered to the Registrar of Companies. The financial statements for the year ended 31 August 2017 have been delivered to the Registrar of Companies. The auditors' report in relation to both years was unqualified, contained an emphasis of matter with respect to going concern, and did not contain a statement under section 498 of the Companies Act 2006.
This announcement contains information which, prior to its disclosure, was inside information for the purposes of the Market Abuse Regulation.
2. ACCOUNTING POLICY - GOING CONCERN
As disclosed in the Chairman's Statement, the Group have raised additional capital post year end. The share placing of GBP125,000 before expenses was half of the planned fundraising and the Group has since secured a working capital facility of GBP125,000. On this basis, the directors have approved budgets and cash flows for the Group for the period to 31 May 2020. These budgets and cash flows forecast that the Group will have sufficient cash resources to remain as a going concern until at least 31 May 2020.
The directors are confident that by achieving the forecast level of sales and raising further capital they would achieve the required cash flow.
(MORE TO FOLLOW) Dow Jones Newswires
May 09, 2019 02:00 ET (06:00 GMT)
DJ Wheelsure Holdings (WHLP) Final Results -2-
However given the significant level of the increase in the forecast sales and the unpredictability of sales forecasting there exists a material uncertainty that may cast significant doubt on the entity's ability to continue as a going concern regarding the value and timing of these future forecast sales. There also exists a material uncertainty that may cast significant doubt on the entity's ability to continue as a going concern over the ability to raise additional capital. If the Group was not a going concern, it may be unable to realise its assets and discharge its liabilities in the normal course of business.
The directors have concluded that, after considering the above and the financial position of the Group, they have reasonable expectations that the Group will have adequate cash resources, by meeting revenue forecasts and raising additional capital, to continue in operational existence until at least 31 May 2020 and for this reason they continue to adopt the going concern basis in preparing the financial statements of the Group.
The financial statements do not include the adjustments that would result if the Group or Parent Company was unable to continue as a going concern.
3. Copies of the Report and Accounts will be sent to shareholders shortly and will be available from the registered office of the Company, 8 Woburn Street, Ampthill, Bedfordshire, MK45 2HP, and also on the company's website, www.tracksure.co.uk.
Wheelsure Holdings plc Gerhard Dodl, CEO 01525 840 557
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May 09, 2019 02:00 ET (06:00 GMT)