HLS Helesi

 

TIDMHLS 
 
RNS Number : 3396N 
Helesi PLC 
16 February 2009 
 

16 February 2009 
 
 
 
 
Helesi PLC 
("Helesi" or the "Company") 
 
 
Trading Update for the Year to 31 December 2008 
 
 
Helesi Plc (AIM: HLS), the Greece and UK based waste management products 
manufacturer and services supplier, today announces a trading update for the 
year to 31 December 2008. 
 
 
Results 
The Company performed strongly during 2008 with the growth seen in the first 
half continuing into the second half of the year. Turnover for the year is 
expected to be approximately EUR67 million (2008: EUR50 million), reflecting strong 
organic growth in the Company's core businesses. Sales have seen growth of 35% 
year on year, representing an increase in each line of business. Profits were 
slightly below our original projections due to higher interest costs. 
 
Operations 
During the year, plant utilisation at the current production sites in Komotini 
in northern Greece and in Bradford in the UK remained at high levels with both 
operating close to capacity. These utilisation levels reflect the continued 
growth in demand for our principal plastic product ranges in waste containers 
and pallet boxes from both existing and new markets. Demand for waste 
containers, which was particularly strong in 2008, has spilled over into the 
first half of 2009, contributing to a promising revenue visibility for the 
period ahead. 
 
 
Services continue to grow at the satisfactory pace projected with a notable 
shift towards more value added long term projects. In Cyprus, Helesi is on 
target to conclude the construction of the Waste Transfer Station by H2 2009 and 
expects to subsequently start the operation of this 10 year concession, paving 
the way for Helesi's entrance into another waste management area and adding to 
the portfolio of services Helesi provides. In Greece, Helesi continues to 
successfully expand in more regions, maintaining its momentum and its position 
as a market leader. 
 
 
In addition, the vehicles and accessories division, acquired in November 2007, 
had a strong first year with performance in line with expectations and a very 
positive outlook for 2009. 
Helesi has fully completed the development of its two new production facilities 
in Komotini and Italy which in effect concludes the 3 year, EUR83 million 
investment program. The Board has decided to take a cautious approach to 
building up the production at the new plant in Pisticci, Basilicata in southern 
Italy in view of the weak economic climate and the extended payments terms which 
customers are likely to require. Therefore the facility will now ramp up 
production at a slower pace. 
 
 
Net borrowings stand at around EUR68 million, as at 31 December 2008, which is 
more than originally projected and resulted in higher interest costs in the 
second half of the year. The increase has built up as a result of delayed 
release of the government grants and higher costs related to late payments from 
clients for waste management products. Grant payments of EUR20 million are now 
expected to be received in H1 2009. 
 
 
The debt has been built up with committed bank facilities. Helesi's strong 
relationships with its banking institutions has allowed the Company to continue 
with its expansion plans, and Helesi believes that its ability to increase debt 
in the middle of the current economic crisis reflects a significant vote of 
confidence by the banks in the Company. It has recently moved EUR16 million of 
debt which was due for repayment in 2009 into a long term facility. 
 
Outlook 
For 2009, Helesi already has a strong order book across all divisions. The 
principal driver for the business continues to be growing government regulation 
of waste collection, management and recycling. This trend is expected to soften 
impact on the Company from the downturn in the global economy, although the 
Company remains realistic with its expectations for growth, which will 
understandably not be as extensive as previously predicted. 
 
 
 
 
- ends - 
 
 
Enquiries: 
 
+----------------------------------------------+---------------------------+ 
| Helesi PLC                                   | + 30 210 60 48 393-4      | 
+----------------------------------------------+---------------------------+ 
| Sakis Andrianopoulos, Chief Executive,       |                           | 
| Interim Chairman                             |                           | 
+----------------------------------------------+---------------------------+ 
| Apostolos Binomakis, Finance Director        | binomakis@helesi.com      | 
+----------------------------------------------+---------------------------+ 
|                                              |                           | 
+----------------------------------------------+---------------------------+ 
| Panmure Gordon                               | +44 (0) 20 7459 3600      | 
+----------------------------------------------+---------------------------+ 
| Andrew Godber                                |                           | 
+----------------------------------------------+---------------------------+ 
| Katherine Roe                                |                           | 
+----------------------------------------------+---------------------------+ 
|                                              |                           | 
+----------------------------------------------+---------------------------+ 
| Tavistock Communications                     | + 44 (0) 20 7920 3150     | 
+----------------------------------------------+---------------------------+ 
| Simon Hudson                                 | shudson@tavistock.co.uk   | 
+----------------------------------------------+---------------------------+ 
| Gemma Bradley                                | gbradley@tavistock.co.uk  | 
+----------------------------------------------+---------------------------+ 
 
 
For further information, please visit www.helesi.com 
 
 
About Helesi 
Helesi is a specialist designer and manufacturer of plastic products mainly for 
use in the waste management industry and a provider of waste management 
services. The Group has production facilities located in Greece and the UK and 
is constructing a third in Italy. 
 
 
Its activities comprise: 
  *  the design and manufacture of plastic waste containers including 2 and 4 wheeled 
  bins, pre-sorting bins and the full range of EN 840 standard containers; 
  *  the provision of waste management services (waste collection, container washing, 
  street sweeping and recyclable materials collection). 
  *  the design and manufacture of material handling plastic products (pallet boxes 
  and crates) for agricultural, domestic and industrial use and other 
  injection-moulding plastic products such as fish crates, and stadium seats; 
  *  the supply of special vehicles and equipment for the waste management industry; 
  and 
  *  the recycling of used tyres 
 
 
 
Demand for Helesi's products and services in developed waste management markets 
is driven by increasingly stringent regulation on waste management and 
recycling. Growing demand is also being experienced in developing countries, 
which are looking to establish centralised and orderly waste management 
services. Helesi has developed a strong market position in both the developed 
waste management markets of Western Europe as well as in the high growth markets 
of South-eastern Europe, the Mediterranean and the Middle East. With sales in 52 
countries, the Company derives more than 70% of its waste container revenue 
internationally. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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