30th Jul 2007 11:00
SMC Group Plc30 July 2007 SMC Group Plc (the "Group") Pre- Close Trading Update SMC Group Plc, the architects and design business, provides the followingpre-close trading update for the six months ended 30 June 2007. Following the internal business review into the recent financialunderperformance of the Group completed at the end of May 2007, the Board hasnow fully implemented the recommendations of the review committee. The reviewprovided a series of proposals to improve the profitability of the Group,including the way the Group approaches the winning and execution of projects,its management structure, resourcing and the cost base of some business units. Consequently, and as a direct result of this action, the Group's cost base hasbeen significantly reduced. All seriously underperforming areas of the businesshave been either integrated into other parts of the Group or have had officesclosed with 32 people leaving the Group, including 11 senior staff anddirectors. Most business units of the Group are trading well and are reporting stronglevels of enquiries and fee flow. Whilst the Board now has much more positiveexpectations for the second half of the year following the full implementationof the findings of the internal review, it anticipates that the Group's level ofnormalised profits before tax and non recurring and/or exceptional items for thefirst six months of the year to broadly break even, and that therefore theGroup's full year performance will be impacted accordingly. The Group's bankers have confirmed they continue to be supportive of the Groupin order to facilitate the changes resulting from the review. The Board is now focused on realising the potential benefits of a moreintegrated and centralised Group structure. The Group will be announcing its interim results for the six months ended 30June 2007 on Thursday, 27 September 2007. Sir Rodney Walker, Executive Chairman said: "Whilst overall we are pleased with fee flow, margins and levels of support fromstaff, the comprehensive review undertaken in May 2007 revealed the need fordecisive action to bring to an end the disappointing performances of a number ofcompanies within the Group together with a general reduction in overheads. Withall recommendations of the review now implemented and good levels of activitybeing reported, I believe we can look forward to a strong second half tradingperformance. SMC has been through a difficult time, with the changes made,continuing support from staff and good levels of new work the future looks agood deal brighter." -ends- For further information: SMC Group Plc Tel: +44 (0)20 7495 5335Sir Rodney Walker Numis Securities Tel: +44 (0)20 7776 1500James Serjeant Bell Pottinger Corporate & Tel: +44 (0)20 7861 3232FinancialDavid Rydell/Chris Hamilton This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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