6th Nov 2008 07:00
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Press Release |
6 November 2008 |
Motivcom plc
("the Company" or "the Group")
Trading Update
Motivcom plc (AIM:MCM), a leading provider of a range of business services to assist major blue chip corporate clients to win and retain customers whilst incentivising and retaining employees, provides the following update on trading further to the announcement of its interim results for the six months ended 30 June 2008 which were released on 24 September 2008.
As a result of the continued unprecedented conditions in the UK economy, the Company anticipates that current market estimates on its headline operating profit for the year ending 31 December 2008 will not be met. However, the Company estimates, at this stage, that its headline operating profit for the year will be marginally ahead of that which was achieved for the 2007 year end of £3,266,000.
Due to the worsening economic climate and the resulting decrease in client expenditure over the past few weeks, activity levels have been reduced within a number of key client contracts and the implementation of a number of new projects has been delayed into 2009.
The reduced trading activity in our Events and Promotions divisions has been partially offset by the strong performance in the Motivation division. Importantly, there have been no client losses and both the Group's Motivation and Employee Benefits divisions have benefited from the aforementioned adverse trading conditions by adding a number of significant new clients. Estimates for 2009 show good visibility of forward bookings in a number of areas of the Group. However, under current market conditions the Group has a cautious outlook.
Commenting on the trading update, Colin Lloyd, Chairman of Motivcom plc, said: "Having, in 2007, set achievable growth targets for the current year it is disappointing that as a consequence of the economic climate we do not expect to report headline operating profit in line with current market expectations for the full year. I am however encouraged by the fact that the Group anticipates reporting a marginal increase over the figure achieved in the 2007 financial year. Whilst it is unfortunate that the recent decline in business confidence has had a negative effect on Motivcom's business, given our strong client base, good cash flow and modest gearing levels (net debt at 30 June 2008 £1,900,000) we are confident that the Company will continue to maximize opportunities in the context of current uncertain market conditions. The Company remains committed to a progressive dividend policy."
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For further information:
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Motivcom plc |
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Sue Hocken |
Tel: +44 (0) 1908 352007 |
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www.motivcom.com |
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Grant Thornton UK LLP |
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Philip Secrett/ Daniela Amihood |
Tel: +44 (0)207 383 5100 |
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www.gtuk.com |
Media enquiries:
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Abchurch |
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Heather Salmond / Jack Ballantyne |
Tel: +44 (0) 20 7398 7700 |
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www.abchurch-group.com |
Related Shares:
MCM.L