AGM Statement
November 19 2003 - 7:11AM
UK Regulatory
RNS Number:2502S
Eleco PLC
19 November 2003
19 November 2003
ELECO PLC
The Building Systems and Technology Group
AGM STATEMENT
Enquiries to:
John Ketteley, Executive Chairman Tel: 01920 443 830
Eleco plc mail@eleco.com
David Dannhauser, Finance Director Tel: 01920 443 830
Eleco plc mail@eleco.com
Tarquin Edwards/Chris Steele Tel: 020 7929 5599
Holborn tarquin.edwards@holbornpr.co.uk
chris.steele@holbornpr.co.uk
At Eleco plc's Annual General Meeting held today (19 November 2003), Executive
Chairman John Ketteley made the following statement:
"In October I indicated that this year would be one of consolidation. I reported
then that our core companies had entered the current year with healthy order
books and referred to the unfinished task of integrating the newly acquired
software businesses and localising their software programmes for our existing
markets.
Interest rates have since increased and expectations are for further increases
in the months ahead, which may begin to have an impact on demand in the
construction industry. Order intake in our core businesses generally remains
solid and the performance of our timber engineering businesses has been buoyant
both in the UK and overseas. Bell & Webster Concrete continues to win
significant new work. However, it has recently experienced delays and
disruption in starting production on some major projects, principally due to
circumstances out of its control. This will adversely affect its performance
somewhat in the first half of the year although the prospects are that any
shortfall should be recovered in the second half.
Taking account of the above together with the ongoing costs associated with the
integration of our Swedish and German software businesses and the related
increase in goodwill amortisation charges, I anticipate that our overall results
for the first half of the current year will be somewhat lower than for the same
period last year. The strength of our recovery in the second half will be
subject to market conditions not deteriorating significantly, to the removal of
the operational constraints on Bell & Webster Concrete and to an acceleration in
the contribution from our newly acquired Software businesses.
We continue to examine possibilities for strategic development and I remain
positive about the steps we are taking to broaden the Group's activities into
new products and markets."
This information is provided by RNS
The company news service from the London Stock Exchange
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