Snacktime falls on trimmed outlook

24th Jul 2015 16:17

(ShareCast News) - Shares in the vending machine group Snacktime plunged 13.5% on Friday after it revealed its earnings and cash will take a hit from increased provisions.The group expects its previous forecast for earnings before interest, taxes, depreciation, amortization and exceptionals of £650,000 to be hurt by increases in provisions of £270,000 for the year ended 31 March 2015.This is due to a more "prudent" estimate of the values for stock and cash in machines.Meanwhile, full-year sales are anticipated to reach £16.7m.The publication of the full-year results remains subject to a final agreement with its auditors, Snacktime added.Looking ahead, the group said its cash remains under pressure and the challenges are expected to continue throughout the rest of the year.However, the company has seen some encouraging signs with two contract wins and a strong pipeline in the bending division.Shares fell 13.51% to 8p on Friday.