Final Results

LONDON--(BUSINESS WIRE)--

Wheelsure Holdings plc

(“Wheelsure” or the “Group”)

Final Results for the Year Ended 31 August 2021

Wheelsure announces its final results for the year ended 31 August 2021. A copy of the Group’s annual report and accounts will shortly be available from the Group’s website www.wsgroupglobal.com/ and will be posted to all shareholders in due course.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Enquires:

CHAIRMAN'S STATEMENT

We are pleased to announce our results for the year ended 31 August 2021.

Sales for the year were £144,077 (2020: £232,539). As reported at the half year this reflects a very difficult trading climate in the first half combined with a period of recovery in the final six months. A continuing tight focus on costs has helped to mitigate the losses incurred in the year.

The COVID pandemic has affected all businesses and particularly impinged on public transport systems who rely on passenger numbers and government support for their income. All such organisations have been, and, to a lesser extent, continue to be suffering significant income shortfalls. As a supplier to those organisations our order income has been put under pressure.

Against this background, I am delighted to say that we have continued to receive orders from our main European markets and this has extended into the new financial year.

Also, since the year end, we are excited to announce a worldwide rail collaboration with Sedwell Limited, an innovative Digital Technology business. This tie-up, detailed below, has resulted in the November launch of the Tracksure Digital Fastener, an exciting addition to our product range that extends our total market opportunity.

UK/Ireland

We have continued to generate orders with both London Underground (LUL) and Docklands Light Railway (DLR) and their associated sub-contractors. Our relationships are strong as we seek further opportunities to broaden our business.

Germany

Orders received in the period from Siemens AG and DB Netz, alongside previously reported orders from ThyssenKrupp, reflect the importance of our business in Germany. We are actively seeking to develop business in each of these three organisations as well as their supplier/customer bases.

Italy

Sales in Italy continued at a lower level than the pre-pandemic financial year. We are encouraged that further orders have been received since the year end.

Tracksure Digital Fastener

The collaboration with Sedwell Limited was agreed in November 2021. It forms a vital part of our strategy in allowing us to offer rail infrastructure managers Tracksure Digital Fasteners (TDF) alongside our existing range of Tracksure product. Whilst both operate on the premise that Tracksure will not loosen, TDF facilitates 100% remote asset monitoring, delivering enhanced track worker safety and real operational cost benefits.

Our collaboration is a worldwide agreement and is the basis for extending our market opportunity in the rail sector.

We are currently in dialogue with a large European infrastructure manager to establish our first ever track installation of Digital Bolting Technology, a pioneering event in Europe.

Intellectual Property (IP)

Maintaining and augmenting our IP has always been important. During this financial year we have further enhanced our portfolio with the granting of our new “dual-thread” patent titled “Locknut arrangement for adjustable threading shaft”. This is the method and apparatus incorporating both left-hand and right-hand threads on a single diameter shaft, thus eliminating the length restrictions of our “Locknut system” a concentric left hand threaded reduced diameter extension to the fastener. This technology, which we have yet to market, is an innovation that will extend our product family in the rail market and, all other fastener market sectors.

The Group's granted patents are as follows:

Locknut system -

Europe - EP2044342 (B1) granted 2014-09-03

US - US172496 (B2) granted 2012-05-08

Locknut arrangement for adjustable threaded shaft -

Europe - EP3334946 (A1) granted 2018-06-20

US- US11022166 (B2) granted 2021-06-01

China - CN108138829 (B) granted 2021-10-08

Gerry Mulder

Finally, at the end of the financial year, The Board would like to place on record our thanks to Gerry Mulder, our outgoing Chairman who formally retired on 3 March 2021. His counsel and industry expertise during the last 9 years as Chairman has been invaluable.

We wish him and his family well in retirement

The Board would like to thank all our shareholders for their continued support.

J Allen

Chairman

28 February 2022

WHEELSURE HOLDINGS PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the Year Ended 31 August 2021

WHEELSURE HOLDINGS PLC

CONSOLIDATED BALANCE SHEET

31 August 2021

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 2021 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 2020 have been delivered to the Registrar of Companies. The auditors' report in relation to both years was unqualified, contained a material uncertainty relating to going concern (which has been reproduced below), and did not contain a statement under section 498 of the Companies Act 2006.

Extract from audited financial statements:

“Material uncertainty relating to going concern

We draw attention to note 1 in the financial statements, which indicates that there is unpredictability in relation to the value and timing of the Group's future sales forecasts. In addition, the Group is reliant upon negotiating further extensions of its borrowing facilities and access to additional funding in the foreseeable future.

As stated in note 1, these conditions indicate that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Notwithstanding the above, in auditing the financial statements we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.”

The relevant section of note 1 to the financial statements is reproduced as note 2 below.

2. ACCOUNTING POLICY – GOING CONCERN

The directors have approved budgets and cash flows for the Group for the period to 28 February 2023. These budgets and cash flows forecast that the Group will have sufficient cash resources to remain as a going concern until at least 28 February 2023.

The directors remain mindful of the continued effects that Covid-19 is having to working practices and ordering cycles and that this could provide for an uneven distribution of sales in the coming year.

The directors are confident that by achieving the forecast level of sales and drawing down on existing loan facilities they will achieve the required cash flow.

However, given the unpredictability of sales forecasts and a significant loan facility falling due for repayment on 28 February 2023 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 and the requirement to negotiate further extensions of its borrowing facilities and access to additional funding in the foreseeable future.

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 to continue in operational existence until at least 28 February 2023 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, 235 Hunts Pond Road, Fareham, Hampshire, PO14 4PJ, and also on the Company’s website, www.wsgroupglobal.com.

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Wheelsure Holdings Plc

Source: Wheelsure Holdings Plc