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Trading Update

12th Mar 2009 07:00

RNS Number : 7253O
Opsec Security Group PLC
12 March 2009
 



12 March 2009

OpSec Security Group plc

Trading update

 

OpSec Security Group plc, the supplier of high quality anti-counterfeiting technologies and services, today announces that following a very strong quarter ending 31st December 2008 it has experienced a significant drop in demand for certain of its products with the result that earnings for the year to 31st March 2009 are likely to be materially lower than the Board's original expectations. The loss of a major contract to supply tax stamps to a Middle East country was anticipated at the time of the interim results but the recent substantial reduction in volumes in the Company's consumer Brand Protection business was not foreseen and is now expected to have a marked impact on profitability in the last quarter of the current year.

As previously announced, the Company had already introduced a programme to reduce operating costs in both the UK and American operations. The combination of the American operations onto one site in Lancaster, Pennsylvania is progressing ahead of plan and further cost reduction and containment efforts continue unabated.

Trading continues to be strong in certain of the Group's operations, but while new business continues to be won and no other major clients have been lost, overall order intake in the current economic environment has become extremely unpredictable.

As a consequence of this down turn in trading the Company is now likely to breach one of its bank covenants for the year ending 31st March 2009. The Company is in discussions with its bankers concerning the impact of the anticipated breach of its covenants and is confident that it will reach a new agreement with the bank.

- ends -

For further information, please contact: 

OpSec Security Group plc

Mark Turnage, Chief Executive ([email protected])

Mike Angus, Finance Director ([email protected])

 

+1 303 534 4500

Weber Shandwick Financial

Nick Oborne/ Stephanie Badjonat

 

020 7067 0700

Oriel Securities Ltd

Andrew Edwards/Neil Langford

020 7710 7600

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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