9th Apr 2009 11:59
9 April 2009
Pre-close statement
Trading conditions since our January statement have continued to be very challenging. On a constant currency basis, sales in Quarter 4 have averaged 25% below the comparable period in the prior year. The automotive market in particular continues to be severely impacted with a fall of over 50% in sales to this sector.
Efforts to reduce our cost base have continued and include a general wage freeze throughout the Group. In January we anticipated that approximately 140 employees would leave the Group by the end of March 2009. This has now been achieved. Discussions on the proposed closure of our French facility in Bellegarde are in progress, in accordance with the statutory timetable and process. The site employs 68 people and has been severely hit by the downturn in the automotive market.
In addition to further reductions in our cost base, attention has been focused on cash management. Cash released from working capital has offset the impact of operating losses in recent months and we have adequate cash and committed facilities to finance the business through a prolonged period of weak demand.
Commenting on the Group's current position, Chief Executive, Calvin O'Connor, said "We have already taken action to address our existing cost base. Other initiatives are in progress that are designed to position the Group to withstand the impact of a continuation of the current depressed level of demand for the year to come."
Preliminary results for the financial year 2008/09 are due to be released on 28 May 2009.
For further information:
Calvin O'Connor Chief Executive Tel: 0161 301 7430
Brian Tenner Finance Director Tel: 0161 301 7430
Chris Hardie Arden Partners Tel: 0207 398 1639
Related Shares:
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