25th Jan 2010 07:00
25 January 2010
Archial Group Plc
Trading Update
Archial Group Plc ("Archial" or the "Group") (ARL.L), the architects and design business, is pleased to provide the following trading update for the second half of the year ended 31 December 2009.
The challenging market conditions through 2009 have had a significant effect on the architectural sector. Whilst the Board was pleased with the results for the first half of the year, it recognised that market conditions necessitated further cost management within the Group to improve profit generation in the second half.
The management actions to address the cost base and re-organise the business during the year have had a strong, positive impact on Group performance. The Board is pleased with a significant increase in pre-exceptional EBITDA between the second half and first half of 2009. The impact of these actions should flow fully into 2010 to deliver further improvement.
Revenue for 2009 will be approximately £33m. While this represents a year on year decrease of c. 20%, it is nevertheless a strong performance compared with the architectural sector as a whole. The Group has not suffered significant issues with the downturn in Dubai, and continues to see significant new project wins in Asia. The spread of our business across the UK and internationally, from both public and private sources has greatly assisted in this achievement.
In spite of the difficult trading conditions and the cost of re-organisation during 2009, management has achieved a reduction in net debt from £14.3m to £13.8m through the year.
The order book has been broadly maintained since we last reported in the September Interim Statement c£34m, with 65% of our anticipated turnover for 2010 already instructed and included within this figure. In addition to the forward order book is a strong pipeline of potential work which has risen since Interims from £42m to £45.8m.
Chris Littlemore, Chief Executive Officer, commented:
"With a robust forward order book, coupled with the fact that the full year impact of the cost saving measures in 2009 will be felt during 2010 and beyond, we look forward to the Group's future with confidence.
"Archial looks to expand its international work aggressively and having successfully opened an office in Abu Dhabi during 2009, we plan to open offices in Vietnam and Toronto during 2010 following significant project wins in both these locations''.
For further information please contact:
|
Archial Group Plc Chris Littlemore, Chief Executive Officer John Taylor, Chief Financial Officer |
Tel: +44 (0)20 7580 0400 |
|
Numis Securities Limited Nominated Adviser: Stuart Skinner/ Brent Nabbs Corporate Broking: James Serjeant |
Tel: +44 (0)20 7260 1000 |
|
Financial Dynamics Billy Clegg/ Georgina Bonham/ Alex Beagley |
Tel: +44 (0)20 7831 3113 |
Related Shares:
ARL.L