SnackTime shrinks losses

Vending machine operator Snacktime said full year revenues increased by 28 per cent as it significantly trimmed pre-tax losses.

Loss before taxation reduced to £732,179 for the year ended 31 March 2012 compared to a loss of £2.2m the year earlier. Revenue rose to £22.2m from £17.3m previously.

SnackTime, which issued a profit warning in May, sending its shares into freefall, said there were encouraging signs amid tough market conditions.

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Chairman Jeremy Hamer commented: "After a challenging year of re-organisation and integration, there are encouraging signs of progress being made across the Group. Despite the continuing severe economic conditions there are exciting opportunities for both growth and operating efficiencies to aim for."

On a more cautionary note SnackTime, which completed the integration of the Vendia businesses, said tough market conditions continue with rising input prices and as consumers tightening their purse strings.

Furthermore, "The process of integrating the group's recent acquisitions has proved more complex, costly and time consuming than previously anticipated. The intensity of competition and the state of the economy have both detracted from the benefits of the many synergies being achieved."

"Trading conditions in the traditional vending market remain challenging and competitive," the group said.

CJ