ELCO Eleco Public Limited Company

 

TIDMELCO 
 
RNS Number : 2817M 
Eleco PLC 
27 January 2009 
 

+---------------------------------+---------------------------------+ 
| For immediate release           |                 27 January 2009 | 
+---------------------------------+---------------------------------+ 
 
 
ELECO PLC 
 
 
Specialist provider of offsite building systems and software 
 
 
TRADING UPDATE FOR SIX MONTHS ENDED 31 DECEMBER 2008 
 
 
The Board of Eleco plc (the "Company " or "Eleco"), the specialist building 
systems and software group, today issues a trading statement prior to entering 
its closed period ahead of its interim statement of half-year results ended 31 
December 2008. 
 
 
We reported at the Annual General Meeting at the beginning of November 2008, 
that operating profits for the first quarter were lower than for the same period 
the previous year, reflecting the increasingly tough trading conditions then 
prevailing in the UK construction industry. Subsequently, all our businesses, 
and particularly our UK businesses, experienced worsening trading conditions in 
the second quarter, exacerbated by the sharp deterioration in the availability 
of credit in UK financial markets. 
 
 
The performances of our UK Building Systems businesses were affected to a 
greater or lesser degree by these deteriorating conditions and by resulting 
delays in the confirmation of orders and site starts. Clients of our precast 
concrete interests in particular, appeared increasingly to experience difficulty 
in finalising their funding and supply chain arrangements, with consequent 
disruption to our scheduled production programmes. 
 
 
However, we take some encouragement from the fact that the problems causing 
these project delays in relation to a number of projects now appear to be 
resolving, and production on these is planned to begin in the second half-year 
ending 30 June 2009. We have also experienced a sustained level of enquiries for 
our precast products in the period, and continue to do so, despite the difficult 
trading environment in which we are operating. Our international Building 
Systems businesses performed in line with the Board's expectations. 
 
 
The turnover of our Construction Software interests was broadly in line with the 
Board's expectations although they exhibited some weakness in the latter part of 
the period, reflecting the general weakness in house building and new project 
activity. Turnover of our Visualisation Software interests was affected by the 
disruption in UK consumer software distribution caused by Entertainment UK Ltd, 
a subsidiary of Woolworth plc being placed into administration in November, 
2008. 
 
 
Taking all these factors into account, we expect to report a small operating 
profit for the Group for the six months to 31 December 2008. 
 
 
The Group's financial position remains strong. In addition to GBP0.6m net cash 
balances at 31 December 2008, the Group retains the benefit of its GBP14.5m term 
and revolving credit facilities which are committed through to 2012 and beyond. 
Hence, the Company remains well placed to work through the current economic 
uncertainties. 
 
 
The Board has already taken action to reduce costs across the Group in response 
to the sharp deterioration in trading conditions in the second quarter and will 
continue to monitor and, where necessary, act to deal with the impact on our 
businesses of any further deterioration in the markets in which we operate. 
 
 
Given the sustained level of enquiries received, new project opportunities, and 
the impending resolution of earlier project delays, prospects for our 
non-housing focused Building Systems activities are more encouraging. 
 
 
Eleco expects to announce its half year results for the six month period ended 
31 December 2008 on 26 February 2009. 
 
 
 
 
Enquiries: 
 
 
+-------------------------------------------+-----------------------+ 
| Eleco plc                                 |     Tel: 01920 443830 | 
+-------------------------------------------+-----------------------+ 
| John Ketteley (Executive Chairman)        |                       | 
+-------------------------------------------+-----------------------+ 
| David Dannhauser (Finance Director)       |                       | 
+-------------------------------------------+-----------------------+ 
|                                           |                       | 
+-------------------------------------------+-----------------------+ 
| Collins Stewart                           |         020 7523 8000 | 
+-------------------------------------------+-----------------------+ 
| Bruce Garrow                              |                       | 
+-------------------------------------------+-----------------------+ 
|                                           |                       | 
+-------------------------------------------+-----------------------+ 
| Buchanan Communications                   |    Tel: 020 7466 5000 | 
+-------------------------------------------+-----------------------+ 
| Tim Anderson/Isabel Podda                 |                       | 
+-------------------------------------------+-----------------------+ 
 
 
 
 
This trading update may contain 'forward looking statements', that by their 
nature involve risk and uncertainty in relation to future events, future market 
conditions, many of which relate to factors that are beyond the Group's control, 
or which cannot be estimated accurately such as market movements, future market 
conditions and actions by third parties. Therefore, it must be appreciated that 
the actual outcome or results may differ materially from any outcome or results 
expressed or implied by such forward looking statements. Moreover, nothing 
contained in this trading statement is intended to be or should be construed as 
a profit forecast. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 TSTSESEEMSUSESF 
 

Eleco Public (LSE:ELCO)
Historical Stock Chart
From Jun 2024 to Jul 2024

Eleco Public (LSE:ELCO)
Historical Stock Chart
From Jul 2023 to Jul 2024