20th May 2009 07:00
Molectra Group Ltd
("Molectra" or "the Company")
Non-performing contracts
Molectra regrets to report the two value added product ('VAP') contracts previously announced; equine anti-cast products (March 2008) and automotive accessory products (June 2008) are now non-performing. Minimal revenue was generated from the contracts, although the Company has incurred significant operating and capital costs. Despite ongoing attempts to make the contracts commercial, a combination of contract-specific problems and global economic conditions has meant this has not been possible.
As a result, Molectra currently has no material active contracts but is actively following new commercial opportunities for other VAP's within a variety of sectors in Australia.
With a low annual cash consumption and cash in the bank, the Directors are comfortable that the Company currently has sufficient cash resources to cover its current requirements. Preliminary results for the year ended 31 December 2008 will be announced in June 2009.
Paul Gazzard, Chief Executive, commented: "The focus of the business has changed significantly from smaller niche products to more scaleable and sizeable potential projects, which we are actively working on. The Board has introduced new management which is committed to continue the commercialisation of Molectra. "
For further information please contact:
|
Molectra Group Limited Paul Gazzard Rodger Sargent |
01725 510 383 020 7355 7660 |
|
Arbuthnot Securities Limited Antonio Bossi Hannah Pearce |
020 7012 2000 |
|
Threadneedle Communications Ltd. Graham Herring |
020 7653 9850 |
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