Vending company SnackTime has been hit by increasing costs and competition and reported a loss of £900,000 in the year to March 2012.
The share price fell 6p to 27.5p, valuing SnackTime at £4.5m. The shares have fallen by two-thirds over the past year.
Revenues grew from £17.6m to £22.2m but SnackTime still slumped into loss. The depreciation charge increased from £1.18m to £1.54m and this helped SnackTime to generate £510,000 from operations. Net debt was £2.72m at the end of March 2012, which was higher than the previous year because of investment in additional vending machines. There is headroom of £1.5m in its banking facilities.
Implementation issues and inefficiencies have meant that SnackTime has not met optimistic sales targets. The plan is to rebuild market share that has been lost since Vendia was acquired and its problematic integration.
SnackTime will continue to lose money this year. House broker Westhouse believes that SnackTime can breakeven in 2013-14, and a profit of £1m in 2014-15.
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