Energy Technique PLC Trading Update and Result of AGM (2391N)
July 24 2014 - 7:12AM
UK Regulatory
TIDMETQ
RNS Number : 2391N
Energy Technique PLC
24 July 2014
ENERGY TECHNIQUE PLC
("The Company")
TRADING UPDATE FOR THREE MONTHS ENDED 30 JUNE 2014
AND
RESULT OF AGM
The Board is delighted to announce its unaudited trading results
for the three months ended 30 June 2014. Sales increased by 29%
over the corresponding quarter, producing a 126% improvement in
operating profit for Diffusion of GBP325,000 and a 193% improvement
in group profit before tax to GBP252,000. These results are ahead
of management's expectations and they represent a continuation of
the growth in sales and profitability reported in the year ended 31
March 2014.
Period ended: 30 June 2014 30 June 2013 31 March 2014
3 months 3 months Year
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
------------------- ------------- ------------- --------------
Sales 2,771 2,143 9,565
Operating profit:
------------------- ------------- ------------- --------------
Diffusion 325 144 906
Central costs (59) (44) (210)
------------------- ------------- ------------- --------------
266 100 696
Finance costs (14) (14) (47)
------------------- ------------- ------------- --------------
Profit before tax 252 86 649
Income tax charge (55) (11) (143)
------------------- ------------- ------------- --------------
Profit after tax 197 75 506
------------------- ------------- ------------- --------------
The increased sales were generated by Diffusion's largest
product group, fan coils, attributed to a combination of improving
fan coil market conditions and Diffusion's premium branded product
offering. Sales of the smaller commercial heating product group
fell marginally, consistent with continued weaker demand from UK
Retail High Street customers. A number of changes have been made to
regenerate commercial heating, but the benefits of this have not
yet shown through into higher sales.
Group net assets at 30 June 2014 amounted to GBP1.79 million (31
March 2014: GBP1.59 million), with net cash of GBP753,000 (31 March
2014: GBP873,000). The reduction in cash from 31 March 2014 is due
to a combination of investment in working capital on higher sales
and to other short term working capital variations. The Company has
now generated sufficient cash to operate without its invoice
finance facility to cover short term working capital variations,
and as a consequence, future costs will be avoided by suspending
this facility.
The Board expects fan coils to be the main sales driver for the
remainder of the current year ending 31 March 2015. As reported in
the 31 March 2014 Chairman's Statement, the Board continues to
explore franchising opportunities in overseas territories, where
franchisees can capitalise on Diffusion's strong brand name,
product innovation and engineering excellence, together with UK
sales of a range of factored trench heaters to compliment the core
fan coil range.
The UK fan coil market is expected to become more buoyant over
the next nine to twelve months, arising from the higher activity
levels currently experienced by M&E consultants. Diffusion is
well placed to continue to benefit from this, with its new ECO 270
range of energy efficient fan coils. Diffusion is enjoying high
levels of fan coil enquiries and the Board believes the results for
the first quarter have laid the foundations for another successful
year ending 31 March 2015.
Result of AGM
All resolutions proposed at the Company's Annual General Meeting
held today were duly passed.
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
The Company's trading subsidiary, Diffusion, has supplied fan
coils and commercial heating products to the UK heating and
ventilation industry ("HVAC") for over 50 years. Diffusion is one
of the oldest and most established suppliers to the HVAC industry
and it is a market leader in the manufacture of premium quality fan
coils and commercial heating products. The Diffusion and Energy
Technique brand names are recognised as highly engineered, quality
products providing leading edge performance and energy
efficiency.
Diffusion's products are installed into commercial offices,
hotels, airports, retail outlets, schools, and more recently
high-end residential developments. Fan coils are supplied into
developments of the major property owning companies, including Land
Securities, Stanhope Properties, Grosvenor Estates and British
Land. Commercial heating end users include Marks & Spencer,
Sainsbury's, Tesco, New Look, Boots, ASDA, John Lewis, Fat Face,
Lloyds Bank and TK Maxx. All products are designed, developed and
manufactured to customers' bespoke requirements from Diffusion's
30,000 sq. ft. manufacturing facility in West Molesey, Surrey.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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