Safety products provider Wheelsure Holdings has posted revenues of £84,455 for the year to 31st August 2011, down from £92,325 in 2010. Sales were lower than expected due to larger orders taking longer to come in than expected. The loss before tax was £486,462, up 13% due to a higher share based payment charge and the full year effect of the Technical Director’s employment. Since the period end Wheelsure has completed a placing at 3.5p per share to raise £335,648 for working capital purposes. This adds to cash at the period end of £129,644.

The company, which makes locking devices to prevent the unintentional loosening of nuts, said that a number of sales opportunities and additional trials were undertaken during the year. Following the receipt of “Authorised for Use” status from London Underground for the company’s Tracksure product, discussions have commenced regarding an “extended rollout” to formally prove the operational benefits. Small orders continue to be received, with a £40,000 deal agreed in August. Additionally, further discussions are being held with the Docklands Light Railway following completion of a trial installation.

Elsewhere, in Hungary, following a period of extensive trialling, Tracksure has received its first commercial order for 3,000 sets from MAV Group – the firm responsible for the state railway infrastructure. This is the first part of a retrofit program believed to be for 200 switches and crossings. In North America, discussions with an OEM of brake retarders and one of the major US railroad companies has resulted in an extended trial for a braking system in a large marshalling yard; a brake retarder fitted with Tracksure locking devices has been installed by Canadian National, Canada’s largest railway; and a second US based railroad operator has ordered and taken delivery of their first Tracksure product for a test application in crossings. The company added that further trials are being conducted in Spain, Italy and Germany.

Currently trading at a mid-price of 3.5p Wheelsure is capitalised at £2.2 million. The firm remains loss making and still has a long way to go before it proves the commercial viability of its technology. The money raised in the placing should tide the company over for now but until further significant progress is made we are not tempted to invest.