28th Jul 2008 07:00
28 July 2008
SMC GROUP PLC
PRE-CLOSE TRADING UPDATE
SMC Group Plc (the "Group), the architecture and design business, announces an update on trading following the first six months of the year. Having completed a review of its fee forecast and order book at the half year stage, the Group is pleased that the degree of revenue visibility for the remainder of 2008 and for 2009 remains high, with at least 90% and 40% confirmed respectively, a year-on-year improvement.
The Board has focused on improving the resilience of revenue growth via a strategy of targeting commissions from:
(i) those sectors less likely to be affected by an economic downturn in the UK;
(ii) publicly funded work; and
(iii) overseas projects in Asia, Eastern Europe and the Middle East.
As a result, whilst the Board recognizes the current economic situation, it is pleased to announce that aggregated Group revenues currently show no evidence of a slowdown in demand, as the risks in UK private sector have been offset by a growing number of Group wins in publicly funded sectors and overseas projects. A representative list of new commissions being won across a wide geographic and sector spread in both the UK and overseas includes:
Various college work in South East of England
Public funded leisure facility in southern England
Hotel roll out programme across UK
Retail centre in Malaysia
Retail centre in China
Infrastructure project in Dubai
Two supermarket projects in UK
Various government buildings in UK
Eco town masterplan in UK
Various industrial/commercial units across UK
School project in East Anglia
Primary school in Scotland
Office fit out for an oil company in Scotland
Various healthcare projects in Scotland
Total estimated fees instructed in June and July total £7.7m which is commensurate with the new commissions for April and May announced previously.
Fee commissions are increasingly being derived from a wide diversity of sectors in line with the Group's strategy.
The Group has limited exposure to the UK residential market with less than 11% of its future order book being derived from this area, and approximately 30% of this work commissioned by publicly funded bodies involved in social housing.
The international business continues to expand in terms of project wins and geographical coverage. A Kuala Lumpur office is being opened in August following the commissioning of three major projects and other identified opportunities, and a Dubai office is due to be opened in Q4 2008 following a further three project wins as well as other opportunities becoming available. Numerous projects and prospects continue to be pursued and realised in China including a large new retail shopping centre. The non-UK business now represents approximately 14% of the Group's order book, an increase of 125% compared to the same period last year.
Additionally the Group's integration and cost saving programme previously announced is being implemented as planned and will impact the financial performance of the Group in the second half of 2008.
The Group confirms that its interim results to 30 June 2008 will be announced on 12th September 2008.
- Ends -
For further information, please contact:
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SMC Group Plc Chris Littlemore/Rob Boardman
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Tel: +44 (0)20 7580 0400 |
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Numis Securities Limited Nominated adviser: Stuart Skinner/Brent Nabbs Corporate broking: James Serjeant
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Tel: +44 (0)20 7260 1000 |
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Financial Dynamics Jonathon Brill/Billy Clegg/Caroline Stewart/Alex Beagley |
Tel: +44 (0)20 7831 3113 |
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