12th May 2006 12:30
Capcon Holdings PLC12 May 2006 Capcon Holdings plc Trading Statement Due to generally disappointing trading across all divisions and the high, butnon-recurring, closure costs of its insurance investigation division, CapconVincent Sherman, Capcon Holdings plc (the "Company") will record a higher thananticipated trading loss for the six month financial reporting period to 31stMarch 2006. However, since the end of March, there have been signs of animprovement in the remaining Audit and Stocktaking and Commercial Investigationbusinesses. Trading losses for Capcon Vincent Sherman, together with the final write-off ofall liabilities, including redundancy payments and property expenses, accountfor over 60 per cent of the total operating loss which will be declared in theformal interim statement due for release at the end of June 2006. Whilst the consolidated figures will show a deterioration over the correspondingperiod of the last financial year, and over the preceding six months, theDirectors decided that, in order to concentrate on the other businesses, itwould be in the best interests of the Company and its shareholders to draw afinal line under the situation at Capcon Vincent Sherman. As previouslyreported, the higher margin surveillance activities of Capcon Vincent Sherman,representing approximately half of this insurance based business, have alreadybeen transferred to Capcon Surveillance Bureau and will be continued under themanagement of this new division. The elimination of losses at Capcon Vincent Sherman, a substantial reduction incentral costs and the cash injection of up to £675k through the issue of securedloan notes together with the signs of an improvement in the remaining Audit andStocktaking and Commercial Investigation businesses should ensure a new periodof financial stability. This underpins the Board's commitment to achieving anearly return to profitability and to remaining an independent public company.The directors are also hopeful that the search for a Chief Executive to sustainand build on the recovery process will shortly come to a successful conclusion. Enquiries: Capcon Holdings plc Cliff Cavender, Managing Director 0870 067 5050 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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