TIDMELCO 
 
RNS Number : 1110G 
Eleco PLC 
26 January 2010 
 

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| For Immediate Release              |                    26 January 2010 | 
+------------------------------------+------------------------------------+ 
 
 
Eleco plc 
("Eleco" or "the Group") 
 
 
Trading update 
 
 
The Board of Eleco, the specialist provider of Building Systems and Software to 
the construction industry, issues a trading update for the six months ended 31 
December 2009 in advance of its Interim Results which it expects to release on 5 
March 2010. 
 
 
The Building Systems Division continues to experience tough trading conditions, 
evidenced in particular by the deferral both of order confirmations and site 
start dates in the precast concrete businesses, due in a number of instances to 
difficulties experienced by customers in arranging appropriate bank financing 
for their projects. The overall order book held by the Building Systems Division 
is similar to this time last year and it is not yet experiencing an upturn. 
Margins also remain tighter than anticipated. In addition, operations on site in 
November and December were affected more than usual by severe adverse weather 
conditions and this continues into January. In response to these challenging 
market conditions, the Division has implemented further cost reductions. 
 
 
Bell & Webster Concrete gained its first two contract awards with a combined 
order value of GBP9.3m for projects in the custodial sector, for which its Rooms 
accommodation system is particularly well suited. These orders will begin to 
benefit trading in the second half of our financial year. 
 
 
The Timber Engineering companies serving the housing market have noted a gradual 
and encouraging improvement in trading conditions. Results of these companies 
were, however, impacted by significant legal costs incurred in relation to an 
ongoing dispute involving our German connector plate business. 
 
 
In contrast, the Software Division has benefited from a modest increase in 
overall sales and a substantial reduction in losses in its visualisation 
businesses. The Software companies are also seeing the benefits of improved 
coordination and performance management across the Division. As a consequence, 
the Software Division is expected to report a significant improvement in its 
results and profitability in the first half of the financial year. 
 
 
The Group's balance sheet remains strong, with net bank borrowings of GBP2.2m. 
Cash continues to be closely managed and the defined benefit pension scheme has 
now ceased to accrue further benefits for members. 
 
 
In December 2009, Craig Slater was appointed Chief Operating Officer of the 
Group. A comprehensive review of our Group strategy, operations and structure is 
underway. Capital expenditure is being moderated and concentrated on those 
projects that position the Group to take advantage of market opportunities. 
 
 
Owing principally to the lower than anticipated outturn of our Building Systems 
businesses, the Group now expects to report an operating loss for the first 
half. Current trading indicates an anticipated moderate improvement in the 
performance of all our operations in the second half. However, the Board now 
anticipates that the Group results are likely to be below expectations for the 
full year. 
 
 
The Board is confident that the measures it has taken to maintain the Group's 
sound financial position and its continuing investment in people, projects and 
products to maintain the clear competitive edge in the markets in which it 
operates will, over time, enable it to recover to its full potential. 
 
 
 
 
For further information please contact:- 
 
 
+-------------------------------------------------------+----------------+ 
| Eleco plc                                             |   T: 01920 443 | 
|                                                       |            830 | 
+-------------------------------------------------------+----------------+ 
| John Ketteley, Executive Chairman                     |                | 
| Craig Slater, Chief Operating Officer                 |                | 
| David Dannhauser, Group Finance Director              |                | 
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|                                                       |                | 
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| Buchanan Communications                               |    T: 020 7466 | 
|                                                       |           5000 | 
+-------------------------------------------------------+----------------+ 
| Tim Anderson / James Strong / Christian Goodbody      |                | 
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|                                                       |                | 
+-------------------------------------------------------+----------------+ 
| Collins Stewart Europe Limited                        |    T: 020 7523 | 
| Bruce Garrow/Sebastian Jones                          |           8350 | 
+-------------------------------------------------------+----------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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