Micro cap fans should take note of snack vending operator SnackTime (SNAK:AIM). Restructuring initiatives are bearing fruit, finances have been fortified and a takeover cannot be ruled out.

A £570,000 fund raise in June helps to address debt and boost working capital with new funds coming from Versatel, a vehicle whose directors include Boris Belotserkovsky. The Russian and US citizen now has a 26.1% stake in SnackTime and becomes a non-executive director. Intriguingly, he owns Russian vending company Uvenco which walked away from bid talks this year (19 Feb) with SnackTime and has ‘material’ shareholdings in vending players Oplata and Transvend, not to mention being a key figure at the European Vending Association.

Investors will be reminded of the company’s progress when it reports full-year results on 4 September. The numbers have already been released to the market in a trading update dating back to April. It expects to report £19 million sales and earnings before interest, tax, depreciation and amortisation (EBITDA) of around £1.3 million.

Small Caps - SnackTime - Aug 14

There will be £400,000 of costs related to a restructuring set to generate £600,000 plus of annualised savings, while the statement could include an update on the sale of in-cup hot drinks packing business Drinkmaster.

SnackTime is the UK’s third-largest vending operator supplies and services chilled drink and snack vending machines as well as water coolers for office customers, leisure centres and hospitals.

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Issue Date: 14 Aug 2014