(STOCK SYMBOL - VSE, "HED")

Hedley Announces Results

for the First Quarter 2002

Mississauga, Ontario (May 24, 2001) Hedley Technologies Ltd.  reports the first quarter results.

Dear shareholder,
Sales activity in the first quarter of 2002 was quiet and is reflected in gross sales revenue of $22,032 versus $71,324 in the year ago period.  Due to the nature of our product and its utilization, the first three months are always the slowest and a minor disruption to the timing of orders can exaggerate either profit or losses.  Hedley management is confident that the corporate forecast for 2002 of a significant increase in sales over last year will be achieved.

 

Expenses were almost identical to 2001; $191,020 versus $191,491 last year. This year’s expenses include a one time extraordinary expenditure of approximately $20,000.  During all of last year, Hedley was in the tenuous position of being in default on a $500,000 note, yet four employees who are key to the stability of the company and could have certainly found alternate employment, stayed with Hedley. Because of their loyalty, the directors instructed management to give each employee a bonus equivalent to one month’s salary as an expression of gratitude from the company.  The four recipients were the Controller, Technical Sales Manager (USA), Production/Accounting Associate and the Regulatory Director.

 

As of March 31, 2002 the Company had working capital of $529,247, an improvement of $1,347,912 versus the same date last year when the Company had a working capital deficit of $818,665. With continued focus on expense management and the anticipated increase in sales for the balance of the year, management expects to maintain or improve its working capital position by fiscal year-end.

 

As reported in a March 27th press release, Aquiam Partners Ltd. acquired 1,000,000 shares of Hedley Technologies Ltd. in a private transaction. At the same time, in a second private transaction, our Chairman, Mr. Rene C. Goehrum purchased an additional 500,000 shares.  These shares were acquired from Enterprise Capital Management, which had previously been the Company’s largest shareholder. It should be noted that Mr. Goehrum is also a 50% owner of Aquiam Partners Ltd.  These purchases by Aquiam Partners Ltd. and by Mr. Goehrum, have ensured an orderly transition in share ownership in the Company, maintaining ownership of a substantial block of shares in hands that hold the future of Hedley and its shareholders interest as a priority.  Also, such a substantive investment by Mr. Goehrum, indicates in the strongest manner possible, his personal belief in a positive future for Hedley.

 

The company is looking forward to growth in sales of both Insecolo™ and Protect-ItŪ during the balance of 2002.  The Board of Directors of Hedley Technologies Ltd. will continue to pursue all strategic alternatives that may enhance shareholder value.

 

On behalf of the Board,

 

Douglas R. Larson

President & COO

 

Consolidated Financial Highlights

For the three months ended March 31, 2002 and 2001

Canadian $

 

March 31, 2002

March 31, 2001

Revenues 

$ 22,032

$ 71,324

Loss for the Three months 

$ 177,723

$ 155,490

Loss per share 

$ 0.019

$ .016

Weighted average shares outstanding 

9,170,195

9,920,195

All figures unless otherwise noted are reported in accordance with Canadian Generally Accepted Accounting Principles.

 E-mail:hedinfo@attglobal.net


 

 

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