26th May 2009 07:06
Cosalt plc
("Cosalt" or the "Company")
Trading Update
Cosalt (www.cosalt.com), the leading provider of critical safety equipment and services for the Offshore Oil & Gas and Marine industries has today issued a trading update.
Trading
As reported in the Company's AGM statement, trading in February and March was below expectations but there were signs of an improving order book and the expectation of improved trading in the second half of the year, traditionally the Company's stronger period of trading. However, it is becoming clear that the improvements we are now experiencing may not be sufficient to make up for the earlier weaknesses in full and the Company, whose year end is in October, now expects trading for the full year to be short of current market expectations. The board continues to take decisive action in response to market conditions and has extended the Company's cost reduction programme.
New partnership agreement
The Company has recently entered into a partnership with Bridon International Limited, a major specialist wire rope manufacturer, to develop and expand its Aberdeen based activity serving the UK North Sea Offshore Sector, from June onwards. This will provide a major boost to the services that Cosalt is able to offer to its customers and will give us the opportunity to generate important incremental business.
Strategy and longer term outlook
The Company's goal is to become a major player in a multi-billion dollar market underpinned by strict regulatory obligations which ensure robust demand for services and provide good visibility for the Company's order book. Although the Company has experienced lower levels of activity than expected due to slower market conditions in the first few months of the year the Company is benefiting from new contracts, a strengthened management team and a more focused strategy which the Board expects will enable further progress in the future towards this goal.
26 May 2009
ENQUIRIES:
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Cosalt plc |
Tel: 01472 504 504 |
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Mark Lejman, Chief Executive |
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Mike Reynolds, Finance Director |
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College Hill |
Tel: 020 7457 2020 |
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Mark Garraway |
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Adam Aljewicz |
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