27th Jul 2007 07:00
Lupus Capital PLC27 July 2007 27 July 2007 LUPUS CAPITAL PLC LUPUS TRADING UPDATE FOR 6 MONTHS TO 30 JUNE 2007 Lupus is pleased to report that the group is trading in line with expectations. Gall Thomson, the manufacturer of breakaway couplings, has enjoyed buoyantmarkets in the first six months of 2007 and is expected to deliver recordperformance both in sales, profits and cash generation. Schlegel, a leader in the global manufacture and marketing of door and windowseals, has produced good results leading on from the operational initiativesthat were taken following its acquisition in April 2006. Schlegel US is now being combined with the US door and window seal division ofLaird Group under a single management team to increase their prospects andprofitability. Many synergies will follow which will include a fullycomprehensive product range for their customers, greater purchasing power forraw material sourcing, operational cost savings, the closure of onemanufacturing facility and increased product development. Schlegel (non US) continues to thrive with good growth coming from the Europeanmarkets of Germany, Spain, UK and Eastern areas. The management of Linear, theLaird UK seals company, has now been taken on by our Schlegel team which hasproduced many cost saving opportunities resulting from optimising productionallocation between countries and also improving customer service. Laird Security Systems, a division acquired from the Laird Group on 27 April2007, is a manufacturer of products such as locks, handles, hinges and balancesfor the US and UK door and window industry. Sales are approximately 60 per centto the refurbishment/remodelling (RMI) market and the remainder to new build.RMI has been steady throughout the world in contrast to the US new build market,which is subject to lower housing starts and completions. Cost reductions,improved marketing and careful control of working capital have been necessary inorder to retain an acceptable level of profitability in the US. In the UK,where the market is stronger, there are also many opportunities for similaractions. Input prices for raw materials are still high, although more stable than a yearago. The dollar/pound exchange rate at over 2 is not favourable when convertingUS profits. At the corporate level, however, the currency exposure has beenmitigated by designating a substantial portion of the debt taken on for the LSSacquisition in US dollars. We continue to examine ways to optimise ourworldwide tax position and expect some success in achieving this. Overall, we feel optimistic about the progress and prospects for the group andwe look forward to another period of strong performance and the furtherdevelopment of Lupus Capital plc. Enquiries to:Greg Hutchings 020 7976 8000Alan Frame 020 7405 7777Nick Donald (HSBC - Nomad) 020 7991 8888 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Tyman