23rd May 2007 07:02
Flomerics Group PLC23 May 2007 Flomerics Group PLC AGM Statement and Trading Update At its Annual General Meeting to be held later today, David Mann, Chairman ofFlomerics Group PLC, the global supplier of specialist design and simulationsoftware for electronics and fluid flow simulation, will make the followingstatement on the Group's continuing progress: "As stated in the Annual Report for the year ended 31 December 2006, theacquisition of NIKA has resulted in a step-change in the Group's potential andambitions. In order to take maximum benefit from the new portfolio of productsbrought into the company, we have, as previously indicated, invested inadditional sales staff, especially in the UK and the USA." "The acquisition of NIKA is beginning to yield benefits. We have made goodprogress in integrating the technologies of the two companies and are on trackto release later this year the first version of the EFD family of productsspecifically targeted at the electronics industry. We have achieved a number ofcross selling successes and been able to make sales into accounts in theelectronics industry for applications where our market leading FLOTHERM productwould have been less suitable. If we look at the business on a world-wide basis,we are pleased with the increased level of sales activity and the rate at whichwe are able to build a pipeline of business." "Trading in the first four months of this year in Europe and Asia-Pacific regionhas been in line with expectations. We are in particular delighted withprogress in Germany, where the former NIKA and Flomerics teams have integratedwell and have continued the sales success shown by NIKA in this region during2006." "The recent recruitment program in the US is now complete and prospects for theNorth American business remain encouraging. However, sales performance in thisregion has been below expectations with the process of hiring specialised salespeople of the right calibre taking longer than was planned. Delays in gettingthe integrated team in place, trained, and building solid pipelines are expectedto result in reduced growth in US revenues and profits compared with budgetsestablished at the beginning of the year. In addition, any continuedstrengthening of Sterling, particularly against the US dollar, will affectcontributions from North America. The Directors expect that these factors willhave a significant adverse impact on the Group's results for this year." "The company is taking action to reduce the effect of the delays in the US onprofits whilst being careful not to disturb the momentum that is being built inour sales pipeline. Overall, the Board remains confident that the Group willmake significant progress this year." Contacts: Flomerics Group PLC:Gary Carter Chief Executive 020 8847 3000Chris Ogle Finance Director 020 8847 3000 Conduit PR:Charlie Geller 020 7429 6666 Oriel Securities Limited (Nominated Adviser):Andrew Edwards 020 7710 7600 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Flowtech Fluid.