FRE Freeplay

RNS Number:2551P
Freeplay Energy PLC
25 July 2005


The following replaces the Pre-close Trading Update released today at 07.32am
under RNS number 2437P.

In the third paragraph, the change in accounting treatment will have an adverse
impact of approximately $1.1 million on revenue and not $1.91 million.



                                                                    25 July 2005

                          FREEPLAY ENERGY PLC (AIM:FRE)
                   ("Freeplay", "the Group" or "the Company")

                            PRE-CLOSE TRADING UPDATE

Freeplay Energy, the technology company that captures, stores and delivers
electric power to self-powered devices such as radios, torches and mobile phone
chargers, announces its pre-close trading update for the 26 week period ended 30
June 2005.

Trading

As highlighted at the IPO, sales in Freeplay products have historically been low
in the first half of the year, with the majority of annual turnover being
achieved in the second half. This trend has continued in this financial year. In
particular the Groups aggressive new product role-out programme is not
anticipated to deliver revenues until the second half of the year.

Following the appointment of Dixie Sales Company ("Dixie"), the Group's US
distribution partner, revenue is now recognised when product is shipped from
Dixie rather than previously where revenue was recognised when product was
shipped from Freeplay. This change in accounting treatment will have an adverse
impact of approximately $1.1 million on revenue for the 26 weeks to 30 June
2005. As a result the interim results for the 26 weeks to 30 June 2005 which
will be significantly lower than reported in the prior-year.

Product Development

The Group is pleased to confirm that it is making good progress with its product
development plan and now has 10 products available to be delivered into the
market over the next 18 months. In particular, the EyeMax radio with light, the
EyeMax radio with weatherband, and the flashlight range consisting of the Xray
LED Flashlight and the Light Centre are all now being delivered into the major
target markets. In addition, the FreeCharge foot powered generator is likely to
be delivered into North America earlier than anticipated in August and our DAB
radio product, for which we are already delivered pre-orders for 5,000 units,
will be ready for the UK market in October.

Progress in African Market

Given the growth potential of the mobile phone market in Africa, the Group
continues to focus on the significant opportunities that this presents and is
making good progress in penetrating this market. Freeplay has concluded a 20,000
unit FreeCharge sale in Africa in the first half, including distribution of the
original FreeCharge model and the FreeCharge Rapid which was launched during the
first quarter. The Company has also entered into formal trials with Vodacom in
the Democratic Republic of Congo and V-Mobile in Nigeria. The purpose of the
trials is to prove that by supplying a reliable energy source for powering
mobile phones the networks are able to supply more airtime.

Progress in US Market

Freeplay believes that the US market is key to the financial prospects of the
Company and has been encouraged by the strong start made by its new US
distribution partner Dixie. This partnership will enable Freeplay to maximise
sales and distribution opportunities in North America and drive growth in the
second half of the year.

Dixie have already received initial enquiries in connection with new products
and firm indications of interest in processing orders. Currently, several
discussions are being undertaken with major US retail groups, which if
successful, could lead to significant orders over the next 12 months. However,
the precise timing of these potential orders remains unclear and the uncertainty
relating to the timings of these orders may have an impact on the financial
performance of the Group in the current financial year. The level of orders and
consequent sales in Q3 and Q4 to these US retail groups will be key to the Group
meeting market expectations for this financial year.

Sales and Marketing Resource

The Company has been active in strengthening its sales and marketing resource
and has made two new appointments in the period. Jerry Le Bow was appointed as a
Consultant to manage the relationship with the Dixie. Jerry's background is in
the consumer electronics industry and his extensive experience and excellent
contact base will enable us to pursue other channels to market outside what
Dixie can deliver.

Andy Law joins us, also as a Consultant, to define our brand positioning and
drive initiatives in marketing. Andy is very well known within the UK
advertising industry. He founded the St Luke's advertising agency and is
Chairman and co-founder of the Law & Kennith agency

All appointments have been made on the basis that the individuals are largely
remunerated on a success basis only.

Rory Stear, Chairman and Chief Executive commented:

"Our successful IPO in March 2005 has enabled us to exploit opportunities and
deliver a diverse and highly saleable product portfolio. Most of the
infrastructure is now in place to deliver good revenues moving forward. We are
especially excited about opportunities in the US for our foot powered charger
and opportunities in Africa for our mobile phone charger. The Directors believe
that a strong demand exists for the new products and this, combined with the
appointment of Dixie, underline our confidence in the prospects for the Group
over the next 18 months in delivering its sales plan."

The Board expects to announce its interim results and trading update for the 26
week period to 30 June 2005 on Monday 26 September 2005.

For further information, please contact:
Freeplay Energy plc                                  Weber Shandwick Square Mile
Rory Stear, Chairman and Chief Executive             James Chandler
020 7851 2630                                        07771 787 098

Charles Stanley & Co. Limited
Mark Taylor/Freddy Crossley
020 7739 8200

Notes to Editors: Freeplay Energy's core technology revolves around the
efficient conversion and storage of applied human energy, and the delivery of
this energy on demand as electricity to create self-powered electronic devices.
Initial applications include radios (both consumer and humanitarian), torches,
mobile phone chargers and standalone foot chargers and the Company has a new
product development plan which anticipates broadening the application of its
technology into new product categories. Freeplay believes it was first to market
and commercialise self-powered technology and that it is recognised as a leading
brand in this market for such products.

Established in 1994, the Company today has offices in both London and Cape Town
and floated on AIM, a market operated by the London Stock Exchange plc in March
2005. Further information about Freeplay Energy and its products can be found at
www.freeplayenergy.com.



                      This information is provided by RNS
            The company news service from the London Stock Exchange
END
TSTPUUPCMUPAGGA

Freeplay Energy (LSE:FRE)
Historical Stock Chart
Von Jun 2024 bis Jul 2024

Freeplay Energy (LSE:FRE)
Historical Stock Chart
Von Jul 2023 bis Jul 2024