2nd May 2007 07:00
Spice PLC02 May 2007 2 May 2007 Spice plc Pre-close trading update The Board of Spice plc ("Spice" or "the Group") is pleased to provide thefollowing update on trading in advance of the announcement of its results forthe year ended 29 April 2007, and prior to entering its closed period. Market conditions continue to remain favourable for each of our three operatingdivisions and trading for the year ended 29 April 2007 is anticipated to be inline with the Directors' expectations. Strong levels of organic growth havebeen recorded over the course of the year in each of our Commercial Services,Public Services and Utility Services' divisions through undertaking greatervolumes of work for key customers and from new contract wins. We have signedcontracts with new customers including Anglian Water for whom we are undertakingwater meter installations and replacements as well as water leakage detectionwork, and John Swire for whom we are refurbishing heating and ventilationsystems. Following the successful completion of our meter installation pilot forScottish Water, we are now working under a memorandum of understanding forScottish Water to install meters over the period to March 2009. It isanticipated that the turnover value of the related contract will beapproximately £3 million per annum. Our visibility of future earnings has also been significantly enhanced in recentmonths through the renewal and extension of contracts with key customersincluding EDF Energy Networks (major substation projects, overhead lines and themaintenance of building and civil assets) and Siemens (meter reading services).We are also pleased to have received a letter of intent from Yorkshire Water inconnection with the continued provision of meter installation and refurbishmentservices. The average historic turnover value to Spice of this Yorkshire Watercontract has been approximately £11 million per annum, which is expected toincrease through extension into small works including repairs and maintenance.The contract, once renewed, is expected to be for an initial period of threeyears with the option to extend for a further two years to June 2012. Takentogether, we believe that these contracts have created a strong platform forfuture growth. During the year the Group successfully raised £20 million through the placing of4 million new shares. The net placing proceeds have been used to reduce bankdebt. We expect to use our enhanced facilities headroom to fund acquisitionopportunities. We remain confident that we can continue to identify acquisitionopportunities at attractive multiples. Our acquisitions pipeline remains strong. We have continued to achieve cross selling successes, which include the JohnSwire contract referred to above, and remain focused on making our cross sellingstrategy endemic within the Group. Overall, we consider that our businesses are well positioned within theirrespective markets. We remain confident of further growth over the new financialyear and continue to look to the future with confidence. Spice's results for the year ended 29 April 2007 will be announced on Monday 9July 2007 and Spice will hold a briefing for analysts at 9.30am on that morningat the offices of KBC Peel Hunt. Further details of this briefing will beannounced nearer the time. Ends Enquiries: Spice plc Tel: 0113 201 2120Simon Rigby, Chief Executive OfficerOliver Lightowlers, Group Finance DirectorCarl Chambers, Corporate Development Director Financial Dynamics Tel: 020 7831 3113Billy CleggCaroline Stewart KBC Peel Hunt Tel: 020 7418 8990Julian Blunt NOTES TO EDITORS Spice plc Spice is a support services business operating in the Commercial Services,Public Services and Utility Services sectors. The Group's operations werefounded in 1996 and have their origins in the electricity industry, though therange of activities has since been expanded into the water sector, nichetelecommunications services, the public sector, energy management and commercialfacilities management. Spice's businesses have a common theme of delivering andco-ordinating infrastructure services to customers, and the technologicalelement within the product mix has been built up significantly over the courseof the last three years. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Spire Healthcare