Energy Technique PLC Trading Update (5389W)
20 Août 2015 - 8:00AM
UK Regulatory
TIDMETQ
RNS Number : 5389W
Energy Technique PLC
20 August 2015
ENERGY TECHNIQUE PLC
("The Company")
TRADING UPDATE FOR THREE MONTHS ENDED 30 JUNE 2015
The Board is pleased to announce its unaudited trading results
for the three months ended 30 June 2015. Sales increased by 5.1%
over the corresponding quarter to GBP2.91 million (2014: GBP2.77
million), generating further growth in both Diffusion's operating
profit to GBP340,000 (2014: GBP325,000) and in group profit before
tax to GBP258,000 (2014: GBP252,000). These results continue the
strong trading performance reported over the last three financial
years.
Period ended: 30 June 30 June 31 March
2015 2014 2015
3 months 3 months Year
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
------------------- ----------- ----------- ---------
Sales 2,911 2,771 10,775
Operating profit:
------------------- ----------- ----------- ---------
Diffusion 340 325 1,120
Central costs (74) (59) (320)
------------------- ----------- ----------- ---------
266 266 800
Finance costs (8) (14) (24)
------------------- ----------- ----------- ---------
Profit before tax 258 252 776
Income tax charge (52) (55) (81)
------------------- ----------- ----------- ---------
Profit after tax 206 197 695
------------------- ----------- ----------- ---------
Financial performance
Increased sales generated 4.6% growth in Diffusion's operating
profit to GBP340,000, representing an operating profit margin of
11.7% (2014: GBP11.7%). Fan coil sales grew by 4.6% over the
corresponding quarter to GBP2.29 million (2014: GBP2.19 million)
and it is also pleasing to report that sales of the smaller
commercial heating product range, which continue to be adversely
impacted by the UK high street, also grew to GBP428,000 (2014:
GBP392,000).
Group profit before tax increased by 2.8% to GBP259,000 (2014:
GBP252,000) after charging Central costs of GBP74,000 (2014:
GBP59,000). Central costs for the remainder of the financial year
will run at lower annualised levels than the year ended 31 March
2015, whilst the Board assimilates the impact of the initiatives
taken in that year of franchising the Diffusion brand in overseas
markets.
In total, fan coils were supplied into over 90 different
projects during the quarter, including large commercial
developments at Lacon House, 8 Finsbury Circus, Eland House, St
James Market, MPS Training Centre, Chiswick Park and HS2 in
Birmingham. High end residential projects included Riverwalk, 1
Tower Bridge and Riverlight. Diffusion is in the process of
concluding an OEM agreement with a leading controls supplier. This
is expected to enhance Diffusion's competitive position by offering
a combined fan coil and controller package.
Net assets and cash
Group net assets at 30 June 2015 grew to GBP2.42 million (31
March 2015: GBP2.22 million), with net cash of GBP1.32 million (31
March 2015: GBP1.38 million). The cash position at 30 June 2015
remained the same as at the last year end due to settlement in the
quarter of capital expenditure creditors at 31 March 2015 and other
working capital fluctuations.
Business strategy
On 26 February 2015, the Board announced it had resolved to
offer the Company for sale by means of a formal sale process in
accordance with Note 2 on Rule 2.6 of the City Code on Takeovers
and Mergers. Whilst the Board believes the Company has a secure
future as an independent business, the Board took this decision to
seek to unlock and crystallise value for shareholders. The Company
appointed Cavendish Corporate Finance LLP as financial adviser to
conduct the sale process. Further announcements about the progress
of this formal sale process will be made in due course.
Current trading and prospects
Whilst this formal sale process is ongoing with a number of
interested parties, the Board continues to manage the Company for
further growth. Trading in the first quarter ended 30 June 2015 has
laid the foundations for another successful year ending 31 March
2016. Enquiry levels remain high and the order book is strong.
Improved UK fan coil market demand that started two years ago is
expected to continue for the year ending 31 March 2016 and
beyond.
For further information:
Walter Goldsmith Chairman 020 8783 0033
Leigh Stimpson CEO 020 8783 0033
Ed Frisby/Scott Mathieson finnCap Limited (Nominated Adviser) 020 7220 0500
NOTES TO EDITORS
The Company's trading subsidiary, Diffusion, enjoys a leading
market position as a manufacturer of premium quality fan coils and
commercial heating products to the UK commercial and high-end
residential sectors, combined with a blue-chip client base,
renowned brand and over 50 years trading experience. Diffusion and
Energy Technique brands are recognised by the UK heating
ventilation and air conditioning sector ("HVAC") as highly
engineered, quality products providing leading edge performance and
energy efficiency.
Diffusion's products are supplied into commercial offices,
hotels, airports, retail outlets, schools, and high-end residential
developments. Business risk is reduced by third-party M&E
contractors installing Diffusion's products. Fan coils are supplied
to developments of the major property owning companies, including
Land Securities, Stanhope Properties, Grosvenor Estates and British
Land. Commercial heating end users include Marks & Spencer,
Sainsbury's, Tesco, New Look, Boots, ASDA, John Lewis, Fat Face,
Lloyds Bank and TK Maxx.
Diffusion's management team has a demonstrable track record of
success, working closely with designers, technicians, support staff
and clients across all UK geographical locations to deliver bespoke
HVAC solutions of the highest standard. Diffusion operates from a
30,000 sq. ft. facility in West Molesey, Surrey, ideally placed to
serve its principal London and South East market by providing a
highly valued just-in-time service.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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