17th Sep 2012 10:51
17 September 2012
NORCON PLC
("Norcon" or the "Company")
TRADING AND BOARD UPDATE
Norcon plc (LSE/AIM: NCON), the global communications network specialist issues the following update.
The Company has recently undertaken a forecasting exercise for the second half of the current financial year and announces that revenue for the year ending 31 December 2012 is likely to be slightly below expectations and profit before tax is likely to be well below the Board's initial expectations.
This is the a result of margin pressure in the Company's operations that is now expected to continue in to the second half of the year. This margin pressure relates chiefly to the Middle East operations where the company was undergoing a transition from the closing out of old to new projects and delays in the commencement of new projects outside the Middle East. However, positive signs have already commenced in terms of new contract awards in North America and Asia.
The Company has continued to invest in its subsidiaries, investing in geographies where it sees good growth potential over the medium and long term, and hiring skilled and experienced staff who it believes can help Norcon to take advantage of that potential. The Board remains confident that the results of this investment will begin to beseen in 2013and benefit the future years.
The Company also announces today that Norcon CEO Mr. Arnold Rørholt is on sick leave for an indefinite period. Mr. Steve Preston, the CEO of the subsidiary Norconsult Telematics, will serve as Acting CEO of Norcon plc during the period, effective immediately.
The Company's interim results will be released on 20 September.
CONTACTS:
Norcon plc | |
Steve Preston, Acting Chief Executive Officer | +971 50 81 13 467 |
Marne Martin, Chief Financial Officer | +44 (0) 7813 92 09 74 |
FTI Consulting | |
Matt Dixon / Tracey Bowditch | +44 (0) 20 7831 3113 |
finnCap | |
Charlotte Stranner / Stuart Andrews (Corporate Finance) | +44 (0) 20 7220 0500 |
Tom Jenkins (Corporate Broking)
ABOUT NORCON:
Established in 1957, Norcon (LSE/AIM: NCON) has been a trusted consultant and project manager for more than half a century to governments and some of the world's largest global firms. These organisations rely on Norcon to select, implement and maintain a communication infrastructure that not only matches, but also supports the critical needs of their operations. Norcon's strength lies in its understanding of complex communication networks and their design. www.norconplc.com
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