10th Jan 2007 07:00
Lupus Capital PLC10 January 2007 LUPUS CAPITAL PLC PRE - CLOSE TRADING STATEMENT 10 January 2007 Lupus is pleased to report that it anticipates a record set of results for theyear ended December 31, 2006 together with the successful integration ofSchlegel Building Products, which was acquired on April 4, 2006. As aconsequence, profits, earnings, cash generation and dividends are all likely toexceed analysts' expectations. Gall Thomson Environmental, which operates primarily in the oil and gas sector,has had its best ever year, surpassing 2005 in sales, profits, cash generationand also return on capital employed. The year end order book, comprising bothmarine and industrial breakaway couplings, is at an all time high which bodeswell for 2007. The nine month contribution from the acquisition of Schlegel has been verypositive. The management has responded well both to the change of ownership andnew direction and has improved on key performance indicators over 2005. Newcustomers have been won, productivity has improved, prices have been raised tocompensate for raw material inputs, sales have been refocused into higher margincustomers, financial controls have been tightened and action from exhaustiveanalysis has yielded higher gross margins. The global market for housing hasbeen generally satisfactory with the long term worldwide trend being upwards. As an international business with activities across three continents we have alimited exposure to both Dollar currency and the current US new build housingmarket difficulties where we have taken action to mitigate any effects. 2006has seen many exciting changes to Schlegel, which has produced increasedprofitability over the previous year and which we hope to build on. On the corporate front: A comprehensive tax review is being undertaken with the expected outcome thatour worldwide group cash tax rate should decline from an anticipated 38 per centband previously planned. We continue to seek the development of Lupus throughboth organic growth and selective acquisitions. The excellent cash generation from both our businesses has enabled Lupus toreduce the net debt taken on to buy Schlegel at a speed quicker than originallyenvisaged. It will also provide funds to increase our dividend to shareholdersfor the 2006 year at a higher rate than forecast at the time of the Schlegelacquisition. This is likely to be a recommendation of at least a 20 per centincrease over the .410p net dividend for the 2005 year. Record order books at Gall Thomson together with a 12 month contribution fromthe global activities of Schlegel, rather than nine months in 2006, enable us toenter 2007 with optimism. We look forward to another year of growth and development of Lupus Capital Plc. Enquiries to: Greg Hutchings 020 7976 8000 Alan Frame 020 7405 7777 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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