Energy Technique PLC Trading Update for nine months to 31 December 2013 (0599Z)
February 03 2014 - 2:00AM
UK Regulatory
TIDMETQ
RNS Number : 0599Z
Energy Technique PLC
03 February 2014
ENERGY TECHNIQUE PLC
("The Company")
TRADING UPDATE FOR NINE MONTHS ENDED 31 DECEMBER 2013
The Board is pleased to announce its unaudited trading results
for the nine months ended 31 December 2013. Group profit before tax
was ahead of Management's expectations at GBP414,000, representing
387% growth over the corresponding 9 months, with operating profit
for Diffusion, the Company's trading business, increasing by 155%
to GBP605,000:
Period ended: 31 Dec 2013 31 Dec 2012 31 March 2013
9 months 9 months Year
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
------------------- ------------ ------------ --------------
Sales 7,039 5,390 7,550
Operating profit:
------------------- ------------ ------------ --------------
Diffusion 605 237 406
Central costs (146) (115) (164)
------------------- ------------ ------------ --------------
459 122 242
Finance costs (45) (37) (42)
------------------- ------------ ------------ --------------
Profit before tax 414 85 200
Income tax charge (86) (18) (39)
------------------- ------------ ------------ --------------
Profit after tax 328 67 161
------------------- ------------ ------------ --------------
Diffusion achieved 31% sales growth in the nine months ended 31
December 2013, continuing the strong fan coil led sales growth
reported in the 30 September 2013 half-year accounts. Sales in the
third quarter were particularly strong at GBP2.64 million, arising
from a number of large projects including high-end residential
work.
Sales of the smaller commercial heating product group fell
marginally, consistent with continued weaker demand from UK Retail
High Street customers, but this was compensated for by increased
fan coil sales. A number of changes have been made to the sales and
marketing effort to promote future growth of commercial heating
sales and the early signs are these are starting to show
through.
Group net assets at 31 December 2013 amounted to GBP1.51 million
(31 March 2013: GBP1.53 million) representing a net asset value of
58 pence per share. The net in-hand cash position at 31 December
2013 amounted to GBP615,000 (31 March 2013: GBP568,000). In the
nine months ended 31 December 2013, cash of GBP300,000 was applied
on share buy-backs with Elsina Limited, the then largest
shareholder. In addition to an in-hand cash position, the Company
also had un-drawn committed invoice discounting facilities of
GBP0.75 million.
Fan coil sales are expected to be the Company's immediate growth
driver. The fan coil market is now starting to show growth, borne
out by the high level of enquires and large London based projects
earmarked for development by the leading property owning companies.
Diffusion has a class leading range of fan coils, enhanced by the
new eco-friendly 270 range, and it is well placed to benefit from
improving fan coil market conditions. The Board is pleased by the
strong set of results for the first nine months that have laid the
foundations for an expected increase in sales in excess of 20% on
the prior year to over GBP9.0 million for the full year ending 31
March 2014.
For further information:
Walter Goldsmith Chairman 020 8783 0033
Leigh Stimpson Managing director 020 8783 0033
Ed Frisby/Ben Thompson finnCap Limited (Nominated Adviser) 020 7220 0500
NOTES TO EDITORS
With over 50 years in the heating and ventilation industry
("HVAC"), the Company's operating subsidiary Diffusion is one of
the oldest and most established manufacturers of HVAC products in
the UK. Diffusion is a market leader in the manufacture of premium
quality fan coils and commercial heating products. Diffusion and
Energy Technique are brand names recognised as highly engineered,
quality products providing leading edge performance and energy
efficiency.
Diffusion's products are installed into hotels, commercial
offices, retail outlets, schools, hospitals, and more recently
high-end residential. Diffusion has excellent relationships with
many blue chip clients including Land Securities, Marks &
Spencer, Boots, City Inn Hotels, and Stanhope Properties. All
products are designed, developed and manufactured at Diffusion's
30,000 sq. ft. manufacturing facility in West Molesey, Surrey,
offering premium quality products, designed specifically to meet
customers' bespoke requirements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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