25th Jul 2007 07:00
UMECO PLC25 July 2007 25 July 2007 Umeco plc Interim Management Statement Umeco plc, an international provider of supply chain and repair & overhaulservices and advanced composite materials primarily to the aerospace & defenceand automotive industries, today publishes its first Interim ManagementStatement as required by the Disclosure and Transparency Rules. This statementrelates to the period from 1 April 2007 to 24 July 2007. The Company's AnnualGeneral Meeting takes place today at 12 noon. Current trading Trading in the year to date has been encouraging and each of the Group's threebusiness streams has performed in line with the Board's expectations. Orderintake continues to be strong, and was 11.5 per cent ahead of sales in thequarter to 30 June 2007. Results are however being impacted by the continuedstrengthening of sterling against the US dollar, with the average exchange ratebeing 8.8 per cent higher in the quarter to 30 June 2007 compared to the sameperiod last year. Umeco Composites Umeco Composites continues to trade strongly, reflecting the ongoing growth inuse of advanced composite materials in a number of markets. Revenue from thewind energy industry remains a growing element of our business. ACG's performance has been good, with the UK operation performing particularlystrongly. Further capital investment has been made at Aerovac and Richmond to expand ourproduct range and to provide the additional capacity necessary to support ourgrowth, which includes significantly higher shipments in respect of the BoeingB787 programme. Umeco Supply Chain Umeco Supply Chain has enjoyed strong demand from its OEM customer base.Pattonair's business units have enjoyed a good start to the year, withparticularly strong demand in the UK. Following the strengthening of themanagement team at Pattonair Fort Worth, the performance of this business hasimproved and the benefits of the recent IT systems change are being realised. Implementation of Pattonair France's new contract with Turbomeca commenced laterthan expected, however the pace of implementation is now accelerating. Thefinancial effects of this delay are not significant in the context of the Group. We have concluded the terms of our contract termination with Bombardier and, aspreviously indicated, the impact of this on our results for 2007/08 is notexpected to be material. Umeco Repair & Overhaul AEM has enjoyed a strong first quarter, with performance in line withexpectations. The company continues to manage business levels with onesignificant overseas customer and has been successful in reducing its debtorexposure. AMS continues to work on a number of significant new opportunities. Antavia's consistent trading record since acquisition has continued in the firstquarter, with an encouraging level of profitability and future prospects. Acquisition of J.D. Lincoln Inc. On 14 June 2007, Umeco announced a significant expansion of its compositematerials business activities through the acquisition of J. D. Lincoln Inc.("Lincoln") for an initial cash consideration of $59.5 million on a cash anddebt free basis. Lincoln formulates and manufactures a range of pre-preg materials primarily usedby aerospace tier 2 suppliers for the manufacture of composite interiorstructures of commercial aircraft, and is therefore highly complementary toUmeco Composites' existing aerospace activities which are focused on theairframe. Regulatory clearance under Hart Scott Rodino has now been received. Resolutionof the remaining regulatory matters should lead to completion occurring inmid-August 2007. The acquisition is expected to be earnings enhancing in the current financialyear. Extension of banking facilities Umeco has agreed an extension to the revolving credit facility provided byLloyds TSB Bank plc, which increases this facility by $100 million to $250million. This additional debt facility will be partially utilised to fund theinitial consideration payable for the acquisition of Lincoln. Board changes As announced on 19 July, Doug Robertson has been appointed as Finance Directorwith effect from 30 July 2007. John Beaumont, previously Finance Director, retired from the Board on 20 July2007. The Board thanks John for his considerable efforts in developing the Groupduring his fourteen years of service as a Director. As announced on 5 June 2007, Chris Hole is joining the Board today as anon-executive Director, and Michael Harper is standing down from the Board dueto his other business commitments. Outlook The markets in which we operate remain buoyant and we believe that manyopportunities exist to further extend and develop our global customer base. Our principal marketplace, civil aerospace, continues to be strong with a numberof significant new aircraft orders being announced at the Paris airshow held inJune. The acquisition of Lincoln will enable the Group to capitalise on theopportunities presented by the trend of aircraft manufacturers to use compositematerials for a wider range of applications. The continuing growth in the civil aerospace sector, the potential for supplychain contract wins and expansion, and the increasing use of advanced compositematerials in a range of sectors mean that the longer term prospects for Umecoremain very encouraging. - Ends - For further information, please contact: Umeco plc Tel: +44 (0) 1926 331 800Clive Snowdon, Chief Executivewww.umeco.com Hogarth Partnership Tel: +44 (0) 20 7357 9477John OlsenBarnaby Fry Notes The information in this announcement is based upon unaudited managementaccounts. Certain statements made in this announcement are forward looking statements.Such statements are based on current expectations and are subject to a number ofrisks and uncertainties that could cause actual results to differ materiallyfrom any expected future events or results referred to in these forward lookingstatements. Unless otherwise required by applicable law, regulation oraccounting standard, we do not undertake any obligation to update or revise anyforward looking statements, whether as a result of new information, futuredevelopments or otherwise. Further information on Umeco plc Umeco is a leading innovator in distribution, supply chain management and repairand overhaul services to the aerospace and defence industries, harnessing newmethods for enhancing its customers' performance and profitability. Umeco also has significant manufacturing interests in advanced compositematerials for a growing range of applications in its core aerospace and defencemarkets and in other high performance technology industries such as motor sport,automotive and wind energy. Listed on the London Stock Exchange, Umeco had turnover of £333.9 million in theyear to 31 March 2007. Umeco is managed through three divisions:- Umeco Supply Chain - a leading international provider of value-addeddistribution and supply chain outsourcing services to customers in the aerospace& defence market. With its specialisation in the supply of small components andsophisticated IT systems, its growing global customer base can enjoy significantoperational, cost and working capital benefits. Customers include Rolls-Royce plc, BAE SYSTEMS, Safran Group, Parker Aerospace,Goodrich , Bombardier, Lockheed Martin and the US Department of Defense. Umeco Composites - a provider of a complete range of advanced compositematerials and specialist chemical products principally to the aerospace,motorsport, automotive and wind energy markets. A growing range of value-addedoutsourcing services is provided to major customers. Customers include Boeing, Airbus, BAE SYSTEMS, Goodrich Aerostructures, BritishAirways, Lufthansa Technik, a number of manufacturers of high performance supercars and Formula 1 teams including Team McLaren Mercedes. Umeco Repair and Overhaul - a provider of a comprehensive accessory repair andinstallation service to operators of fixed and rotary wing aircraft ranging insize from executive jets through to a Boeing 747. Customers include British Airways, KLM, Swiss, Alitalia Express, BristowHelicopters, BAE SYSTEMS, Saab Aircraft and Pratt & Whitney. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Ubsetfusmca