21st Dec 2007 07:01
Fonebak plc21 December 2007 Friday 21st December 2007 Fonebak plc AGM Trading Statement At the AGM of Fonebak plc, to be held at 12 noon today, Gary Stokes ChiefExecutive, will make the following statement: "In this my first Annual General Meeting since joining Fonebak earlier this yearI am pleased to report considerable progress and a strong start to the currentfinancial year. 2007 saw significant advances for the Group with first theacquisition of CRC in January and then the subsequent restructuring of the coreFonebak businesses following the profit warning in March. Within the enlarged Group a total of eight facilities have been divested sincethe restructuring programme started. We now have a better balance of capacitybuilt around centres of excellence in key locations across Europe. With thefirst 'recovery' stage nearing completion the business is now clearly focused onits core competencies in the repair, remarketing and recycling of commercial andconsumer based technology products. Since we reported our full year results at the end of September the financialperformance of the Group has been ahead of our internal plan. The strongperformance in the first half of the year reflects the continued strength of ourrepair operations and the improving position in our end-of-life asset managementactivities now that the benefits of the recent restructuring are coming through. Notwithstanding the significant progress made in the first half, the Boardexpects the second half to be more challenging for our UK repair operations;partly as a result of the pressures some of our clients are seeing in their ownmarkets. The Board, as a result, expects that the Group will exceed marketprofit expectations for the first six months and remains confident of achievingexpectations for the full year. As we enter the next stage of our development the Group will be investing in theresources and infrastructure to support the future commercial expansion of thebusiness. This investment includes the marketing of a more integratedvalue-added service model. As part of our programme to communicate a clearer, more compelling message toour stakeholders, we are also progressing plans to re-brand the Group.Shareholders will shortly receive formal notice of our plans for a change ofname; currently it is our intention for the re-launch to take place in the firstquarter of 2008. As a business we generate a healthy cash flow and our indebtedness continues toreduce. Current indebtedness is significantly below the level reported at the2007 year end, which partly reflects our improved trading but also the continueddrive to reduce our working capital. As a result, the business has sufficientfunds to finance the ongoing development plans. Looking back over the last twelve months we can reflect on a period of muchprogress set against difficult circumstances. It is too early to declare therecovery complete; however, it is clear that the Group is in substantiallybetter health than it was, even a few short months ago. The foundations are nowin place from which to move forward and whilst the trading environment remainstough there are clear opportunities for the Group to develop further. Progressto date is positive and the Board remain optimistic about the future." -ENDS- Enquiries FonebakGary Stokes Chief Executive 01865 487235David Kelham Chief Financial Officer 01865 487235 KBC Peel Hunt Ltd (Nominated Adviser and Broker)Jonathan Marren 020 7418 8900Gordon Suggett 020 7418 8900 Pelham (Financial PR)Philip Dennis 020 7743 6363 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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