Hot Features
Premium
Level up your trading with our powerful tools and real-time insights all in one place.
Interim results and Launch of KiQplan Digital Coaching Product
Fitbug Holdings, the AIM listed provider of online personal health and well-being services, has announced its results for the six months ended 30 June 2014.
Overview:
· Sales increased by 98% to £914,000 (H1 2013: £461,000) reflecting increased device sales following launch of Fitbug Orb
· Launch of KiQplan digital coaching product on track for November
· February 2015 trial date set for legal action against Fitbit
· Pre-tax loss of £1,610,000 (H1 2013: loss of £1,049,000) reflecting increased investment in KiQplan™ development and legal fees to support the Fitbit action
· New loan of £600,000 secured on attractive terms
Malcolm Fried, CEO, said: “The November launch of KiQplan, together with the support of NW1 Investments Limited and the Kirsh Group, leaves the business well placed to continue developing its products and trading relationships and to pursue the legal action against Fitbit to fruition.”
Chairman and CEO’s Statement (in full):
This has been an active period for Fitbug. Sales growth during the period reflected increasing interest in wearables. In recent months, Fitbug has manufactured and shipped a significant volume of devices and KiQplan™ products to our US distributors ahead of the Thanksgiving/Christmas sale period.
KiQplan™ provides a range of personalized, digital health coaching services designed to work with a range of activity trackers to help participants meet specific health, weight and fitness goals. These digital products will also sync with the inbuilt tracker chips within the latest generation of mobile smart phones and smart watches, as well as leading compatible apps. The first four KiQplans will be launched in the US retail market in November 2014
In anticipation of the release of our new KiQplan™ product in the US retail market, Fitbug has agreed further loan funding of £600,000. The loan is repayable by 31 July 2015 and will accrue interest at a favourable rate of 5% per annum, payable on a quarterly basis. The funds will be loaned by The Kirsh Group through NW1 Investments Limited, a company in which the family of David Turner and Allan Fisher have a material interest. The independent directors of the Company, being Fergus Kee, Malcolm Fried, Paul Landau, Ann Jones, Andrew Brummer and Geoffrey Simmonds, consider that, having consulted with Cantor Fitzgerald Europe, the terms of the loan are fair and reasonable in so far as the shareholders are concerned.
The results for the six months to 30 June show a pre-tax loss of £1,610,000 (H1 2013: loss of £1,049,000) reflecting increased investment in development of KiQplan™ together with legal and professional fees to support the legal action against Fitbit. Cash at 30 June 2014 was £160,000 (30 June 2013: £284,000).
A trial date of 9 February 2015 has been set by the U.S. District Court of Northern California to hear the Company’s legal action against Fitbit. This legal action alleges trademark infringement, unfair competition and unfair business practices. The Company has asked the court to order Fitbit to permanently cease use of its Fitbit mark and from engaging in conduct that is causing confusion with Fitbug’s brand and services. The Company believes that it has a strong case.
Fergus Kee, Chairman, Fitbug Holdings Plc
Malcolm Fried, CEO, Fitbug Holdings Plc
