Post-Close Trading Update (5513W)
February 01 2012 - 2:00AM
UK Regulatory
TIDMMRN
RNS Number : 5513W
Morson Group PLC
01 February 2012
For Immediate Release 1 February 2012
Morson Group PLC
("Morson" or the "Company")
Post-Close Trading Update
Morson (AIM: MRN.L) the UK's leading provider of technical
contracting personnel to the aerospace and defence, nuclear and
power, rail and other technical industries today provides an update
on trading.
As set out in the statement issued on 14 December 2011, it is
the Board's view that the Company's trading performance for the
year ended 31 December 2011 will be in line with its expectations.
This remains the board's view. The Company expects to announce its
preliminary results in the week commencing 19 March 2011.
Trading within the Company's core temporary recruitment
business, which accounts for the majority of its income, has
remained more resilient than anticipated, particularly in the
latter part of 2011. However, higher margin permanent and spot
recruitment were below expectations. Additionally, the full year
performance of Morson Projects, the Company's specialist design
operation, has been impacted negatively by cost and timing overruns
on certain large fixed price contracts.
As reported in December, average monthly net debt levels have
increased throughout 2011, as the Company took advantage of
overseas expansion opportunities and as payment cycles lengthened
in the current broader economic environment. Net debt at 31
December 2011 is expected to be reported at GBP33.4m, lower than
the average debt for December 2011 of GBP37.1m (6 months 2011 H1
average GBP28.9m), as a result of higher than anticipated client
receipts.
The Board believes that the trading environment in the UK for
Morson will remain challenging in 2012. The visibility of revenues
in Morson's core temporary recruitment activity remains good
relative to other recruitment businesses. However, as in prior
periods the year end outturn will be dependent on the successful
conclusion of a number of major contract renewals. The Board
continues to review investment opportunities to look to new
geographic markets and sectors to support and supplement Morson's
core operations.
The Board remains confident in the positioning of the Company at
this time of wider economic uncertainty and its ability to deliver
growth in the medium and long term.
ENDS
For further information please contact:
Morson Group PLC 0161 707 1516
Ged Mason, Chief Executive Officer
Paul Gilmour, Financial Director
N+1 Brewin (Nomad) 0845 213 1000
Aubrey Powell, Luke Boyce
Buchanan 0207 466 5000
Diane Stewart, James Strong,
Carrie Clement
Notes to Editors
Established in 1969 Morson is the largest and one of the longest
established technical staffing companies in the UK.
Morson operates through main subsidiaries, Morson International
and Morson Wynnwith, providing specialist engineering and technical
personnel and Morson Projects Limited, which provides outsourced
engineering and project management design services.
The Group currently provides personnel on long term assignments
across a multitude of engineering disciplines, including major
infrastructure and defence projects. Examples are the construction
of the Royal Navy future aircraft carriers, rail maintenance and
upgrades for Network Rail, Transport for London and also nuclear
design, decommissioning, maintenance and asset improvement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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