Trading Statement
28 Abril 2003 - 2:00AM
UK Regulatory
RNS Number:4109K
Energy Technique PLC
28 April 2003
Whilst it is early in the new financial year, the Directors of Energy Technique
plc would like to update shareholders on the year ended 31st March 2003, current
trading and developments with the new UVGI Nightingale Mobile Air Filtration
Product.
The Directors expect the results for the year ended 31st March 2003 (before any
impairment review) to be ahead of the previous year's results. However, during
the first quarter, the Company experienced a sharp slowdown in order intake for
its traditional Diffusion air movement and heating business. This slowdown was
due to a deferment of certain contracts that were scheduled for delivery during
the first half of 2003 and a reduction in enquiries for new business. The
Directors believe that this slowdown reflects the sharp downturn in business
conditions in the construction sector as a whole, although the longer-term
prospects for the Company remain positive.
The Company has therefore entered the new financial year with a lower order
book, while order intake in April has given no indication of improvement in the
next quarter. Accordingly, the Company has opened consultation with the
workforce about the implementation of a redundancy programme during May. It is
anticipated that this cost reduction, together with other cost reduction
measures now being implemented, should align the Company's cost base towards the
level of business now anticipated during the first half year.
Whilst the Company's traditional business has experienced a slowdown, the
Diffusion Refrigeration and Distribution business, formed last year, is now
entering its peak selling season.
Furthermore, good progress continues to be made with the exciting new
Nightingale air treatment product developed by UVGI Systems Ltd., the joint
venture Company in which Energy Technique holds a majority stake. After
successful laboratory trials at Porton Down, second generation units have been
developed and it is anticipated that a number of these units will go on
operational tests at a NHS Trust hospital in the near future. Additionally, a
unit will shortly be under laboratory test in the United States. The Directors
remain confident that this product can be brought to the Health Care market
before the end of the year and that significant prospects in the aerospace and
defence fields can be developed.
For further information contact:
Graham Mackenzie, Chairman, Energy Technique plc: 07901 550577
Leigh Stimpson, Managing Director, Energy Technique plc: 07050 276719
Allan Piper, First City Financial Public Relations: 07050 203304
This information is provided by RNS
The company news service from the London Stock Exchange
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