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Thursday, 5 October 2017

Sandal plc : Final Results for the year ended 31 May 2017

Sandal plc    

Published: 08:00 CEST 05-10-2017 /GlobeNewswire /Source: Sandal plc / : SAND /ISIN: GB00BVV23242

Sandal plc : Final Results for the year ended 31 May 2017

SANDAL PLC ("SANDAL" or "THE COMPANY")

FINAL RESULTS FOR THE YEAR ENDED 31 MAY 2017

 

The Board of Sandal Plc, the designer, developer and manufacturer of electronic products announces its full year results for the year to 31 May 2017.

Highlights:

  • Turnover increased by 13.7% to £3.75m (2016: £3.3m) and the Company returned to profitability
  • Energenie MiHome range expanded and sales increased by 154%
  • Higher than expected revenues at Power Connections
  • Energenie MiHome Gateway hubs increased by over 350% with number of devices attached to the hub grew by over 475%
  • Products stocked by a number of the major retailers in the UK and is also integrated with the major players in the home automation market

Commenting, Sandal's CEO Alan Tadd said: "We will continue to expand the Energenie MiHome range and to grow in the fast-expanding smart homes market through existing customers and through new strategic partnerships whilst exploring the opportunity to expand into Europe using our existing distribution partner, Exertis. We look forward to being able to report on further progress during the year."

Enquiries:

Sandal Plc                                            01279 422022

Alan Tadd, CEO

Oliver Tadd, Director

www.sandal-plc.co.uk

Cairn Financial Advisers LLP

David Coffman/Jo Turner           020 7213 0880

MB Communications            

Maxine Barnes                          07860 489571

 

Fair Review of the business

The year under review saw a number of significant achievements:

Energenie MiHome product range expanded and sales increased by 154%

Energenie MiHome Radiator Valve production successfully moved from UK to China resulting in material cost reductions

Contract signed with Momit for the development and production of a smart room thermostat

Turnover increased by 13.7% in the year mainly as a result of the sales increase of Energenie MiHome products but also due to higher than expected revenue by the PowerConnections division. The Energenie MiHome range achieved its first listings and promotions with High Street retail at Argos, Bunnings (formerly Homebase) and Sainsbury where an initial six week promotion sold out within two weeks. The Company maintained its investment in marketing of Energenie MiHome, increasing attendance at exhibitions but switching focus from consumer shows to installer/wholesaler trade shows supporting the strategy outlined in 2016.

During the year there has been an over 350% increase in the number of Energenie MiHome Gateway Hubs in the market whilst the number of devices attached to these Gateway Hubs has grown by nearly 475%. This demonstrates that consumers are adding devices to their Hub after their initial purchase and reinforces the strategy of selling entry level bundles as an initial route to market. The Directors are confident that there is significant sales potential from both new and existing customers.

The Company has returned to profit for the year with £7,838 (2016 loss £81,494) This included £218,408 (2016 £242,972) of general marketing activities plus non capitalised development costs of £15,585 (2016 £26,600).

Development expenditure continued during the year focusing on new products, technology and integrations with the major platforms. We also have used our application programming interfaces ("APIs") to provide data streaming capability which will enable the Company to derive a recurring income stream from B2B customers.

Since the year end the Company has announced successful integrations with Google Home, Control 4 and are a launch partner with the new Amazon V3 API.

Future Developments

The Directors will continue to expand Energenie MiHome within the resources internally generated and those obtained through capital markets, where necessary. Product development focus will be on selected new products to broaden the Energenie MiHome range and the introduction of two way communications on switches and sockets.

Strategy

The Company's strategy is to continue to grow Energenie MiHome into what is an expanding smart home space. This will be with new and existing products both into the UK whilst also looking to expand into Europe using the distribution network of Exertis, Energenie MiHome's distribution partner. The Company will also pursue other strategic partnerships in addition to those already in trial stage with Howz /EDF and Samsung.

Principle Risks and Uncertainties

Risks

Competitive Risks

The Company operates in a competitive market with changing technologies. We are always reviewing our product and technology offering in our development programme. The Integration with major systems providers is seen as a counter balance to this risk.

Exchange Rate Risks

The Company seeks to internal hedge this risk by buying and selling in US Dollars wherever possible.

 

 

Profit and Loss Account

For the year ended 31 May 2017

 

2017

 

2016

 

 

 

 

£

 

£

 

 

 

 

Turnover

 

3,745,780

 

3,295,766

 

 

Cost of sales

 

(2,360,757)

 

(2,155,047)

 

 

 

 

 

 

 

Gross profit

1,385,023

 

1,140,719

 

 

Administrative expenses

 

(1,493,715)

 

(1,367,882)

 

Other operating income

 

-

 

2,184

 

 

 

 

 

 

 

 

Operating loss

 

(108,692)

 

(224,979)

 

Interest receivable and similar income

 

133

 

164

 

 

Interest payable and similar expenses

 

(26,662)

 

(42,724)

 

 

 

 

 

 

 

Loss before taxation

 

(135,221)

 

(267,539)

 

Tax on loss

 

143,059

 

185,645

 

 

 

 

 

 

 

 

Profit/(loss) for the financial year

 

7,838

 

(81,894)

 

 

 

 

 

 

 

 

 

The Profit And Loss Account has been prepared on the basis that all operations are continuing operations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Statement of Comprehensive Income

 

 

 

 

 

For the year ended 31 May 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

2016

 

 

 

£

 

£

 

 

 

 

Profit/(loss) for the year

7,838

 

(81,894)

 

Other comprehensive income

 

 

Currency translation differences

-

 

12,072

 

 

 

 

 

 

 

 

Total comprehensive income for the year

 

7,838

 

(69,822)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Balance Sheet

 

 

 

 

As at 31 May 2017

 

 

 

 

 

 

 

 

 

 

2017

 

2016

 

 

£

£

£

£

 

 

Fixed assets

 

Goodwill

 

 

10,500

 

16,250

 

Other intangible assets

 

 

194,593

 

83,682

 

 

 

 

 

 

Total intangible assets

 

205,093

 

99,932

 

Tangible assets

 

 

195,406

 

215,189

 

Investments

 

 

101

 

101

 

 

 

 

 

 

 

400,600

 

315,222

 

Current assets

 

Stocks

 

915,367

 

736,031

 

Debtors - deferred tax

 

23,357

 

65,927

 

Debtors - other

 

932,148

 

808,391

 

Cash at bank and in hand

 

162,442

 

343,203

 

 

 

 

 

 

 

2,033,314

 

1,953,552

 

Creditors: amounts falling due within one year

 

(1,272,716)

 

(1,067,764)

 

 

 

 

 

 

 

Net current assets

760,598

 

885,788

 

 

 

 

 

 

Total assets less current liabilities

 

1,161,198

 

1,201,010

 

 

 

 

 

 

 

Creditors: amounts falling due after more than one year

 

(139,566)

 

(230,445)

 

 

 

 

 

 

Provisions for liabilities

 

(27,246)

 

(30,257)

 

 

 

 

 

 

Net assets

 

994,386

 

940,308

 

 

 

 

 

 

Capital and reserves

 

Called up share capital

 

 

329,978

 

324,660

 

Share premium account

 

 

162,860

 

121,938

 

Profit and loss reserves

 

 

501,548

 

493,710

 

 

 

 

 

 

Total equity

 

994,386

 

940,308

 

 

 

 

 

 

 

The financial statements were approved by the board of directors and authorised for issue on 4 October 2017 and are signed on its behalf by:

 

 

 

Mr A J Tadd

 

Director

 

 


 

Statement of Changes in Equity

 

 

 

 

 

 

 

For the year ended 31 May 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share capital

Share premium account

Profit and loss reserves

Total

 

 

 

£

£

£

£

 

 

 

 

Balance at 1 June 2015

 

323,470

111,826

563,532

998,828

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended 31 May 2016:

 

 

Loss for the year

 

-

-

 

(81,894)

(81,894)

 

Other comprehensive income:

 

 

Currency translation differences

 

-

-

12,072

12,072

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income for the year

-

-

 

(69,822)

(69,822)

 

Issue of share capital

1,190

10,112

-

11,302

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 31 May 2016

 

324,660

121,938

493,710

940,308

 

 

 

 

Year ended 31 May 2017:

 

 

Profit and total comprehensive income for the year

 

-

-

7,838

7,838

 

 

Issue of share capital

5,318

40,922

-

46,240

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 31 May 2017

329,978

162,860

501,548

994,386

 

 

 

 

 

 

 

 

 

 

 

 


Statement of Cash Flows

 

 

 

 

 

 

For the year ended 31 May 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

2016

 

 

£

£

£

£

 

 

Cash flows from operating activities

 

Cash absorbed by operations

 

(192,657)

 

(18,100)

Interest paid

 

(26,662)

 

(42,724)

Income taxes refunded

 

178,719

 

37,386

 

 

 

 

 

 

Net cash outflow from operating activities

 

(40,600)

 

(23,438)

 

Investing activities

 

Purchase of intangible assets

 

(128,630)

 

(104,593)

 

Purchase of tangible fixed assets

 

(49,669)

 

(37,323)

 

Proceeds from other investments and loans

 

1,012

 

(1,209)

 

Interest received

133

 

164

 

 

 

 

 

 

Net cash used in investing activities

 

(177,154)

 

(142,961)

 

Financing activities

 

Proceeds from issue of shares

46,241

 

11,302

 

Repayment of bank loans

 

(76,949)

 

170,538

 

Payment of finance leases obligations

 

(19,881)

 

(19,773)

 

 

 

 

 

 

 

Net cash (used in)/generated from financing activities

 

(50,589)

 

162,067

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

(268,343)

 

(4,332)

Cash and cash equivalents at beginning of year

 

343,203

 

347,535

 

 

 

 

 

 

Cash and cash equivalents at end of year

 

74,860

 

343,203

 

 

 

 

 

 

 

Relating to:

 

Cash at bank and in hand

 

162,442

 

343,203

 

Bank overdrafts included in creditors payable within one year

 

(87,582)

 

-

 

 

 

 

 

 

 

 

Notes

  1. Basis of Preparation

These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value.

The financial information set out above does not constitute the Company's statutory accounts for the year ended 31 December 2016 but is derived from those accounts which contained an unqualified audit report.

  1. Earnings per Share

 

2017

2016

 

p

p

 

 

 

Basic earnings / (loss) per ordinary share

0.0475

(0.5026)

 

 

 

Diluted earnings / (loss) per ordinary share

0.0424

(0.4692)

 

  1. Availability of Report and Accounts

 

Copies of the Annual Report and Accounts will be available on the Company's website.

 

Notes to editors:

Sandal plc commenced business in 1996 and joined NEX in March 2015.  The Company designs, develops and manufactures consumer electronics products. Its business is divided into two distinct product groups, PowerConnections, a long established wholesaler and reseller of a successful and patented range of converter plugs and power cables, and Energenie, which sells a newer product range that includes energy saving products, portable charging devices and the new Energenie MiHome range of products aimed at the "Home Automation" and "Internet of Things" marketplace.    

The range of Energenie MiHome home automation products makes the remote operation of everyday household appliances and energy monitoring more accessible through integration with smartphone and tablet connectivity.  The Energenie MiHome range is also integrated with the major players in the home automation market including Google Nest and Amazon Echo. Energenie MiHome products are available through a number of mainstream retailers including  Amazon, Argos and Sainsbury's.  In addition Energenie also offers Eco and electrical, travel and energy saving products for homes and offices, reducing energy usage and the Home Automation sector. It has store listings for its current products with several large retailers including Homebase, Maplin, Amazon, Screwfix, Toolstation and ASDA.

PowerConnections is a supplier to customers, in the UK and abroad, of single-phase electrical connection products. The products are manufactured in three partner factories in the Far East and have distributors worldwide for its range of patented converter plugs. The Company's product portfolio consists of International Power Leads, Rewireable Plugs, Converters and Connectors. These products are stocked in the Far East, Australia and UK.

 

 





This announcement is distributed by Nasdaq Corporate Solutions (One Liberty Plaza, 165 Broadway, New York, NY 10006. Tel: +1 212 401 8700. www.nasdaqomx.com) on behalf of Nasdaq Corporate Solutions clients. Source: Sandal plc, Unit 5, Harold Close, The Pinnacles, Harlow, Essex CM19 5TH, UK
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