Property Disposals etc

RNS Number:0543L
Widney PLC
26 October 2006

Widney PLC

("Widney" or "the Group")



Property Disposals and Trading Update



The Groups' results for the year ended 30th September 2006 will be announced on
6th December 2006 and will be in line with market expectations.



The depressed volumes at Widney Cabs have continued throughout most of the year
with a recovery close to anticipated volumes only occurring in September.



Significant cost cutting has been achieved at Widney Cabs and at Widney
Pressings, with the closure of the Wolverhampton facility.



Widney PLC has reached agreement to sell the Belcot Tool and Die freehold
property at Brownhills for #1.5 million. Belcot will then lease this property
back on attractive terms. This transaction is expected to complete in December
2006.



An agreement has been reached to sell an area of property at the Widney Cabs'
site in Northampton, which is surplus to requirements, for #1.2 million. This
transaction is anticipated to complete in November 2006.



The receipts of these property sales and anticipated return to profitability in
2007 will significantly reduce the indebtedness of the Group.



Progress has been made in a number of areas across the Group, including:



Widney Pressings



Widney Pressings has been awarded a supply agreement for after market body
panels by a major automotive manufacturer.  This business is anticipated to be
worth #1.5 million per annum from mid 2007.



The Ettingshall plant was closed on plan, within budget and with no customer
interruptions.  This business is now produced from the Northampton freehold
site, with significant cost savings to this business.



Widney Cabs



Widney Cabs has received orders and commenced production on three chassis
fabrications for Alexander Dennis bus chassis worth #2.5 million per annum.
Discussions continue on further packages of work worth #2 million.



Production of a cab for an existing dump truck for a new customer, which is
worth an initial #0.4 million has commenced, with sales anticipated to grow.



Widney Cabs is working with Moxy (a Norwegian manufacturer of mining dump
trucks) and has a contract to design and build new cabs for machines to be
launched over the next two years starting with the first model in Spring 2007,
with sales expected to grow to an estimated #4 million per annum by 2008/09.



A new cab for an existing customer has been designed and developed for its back
hoe machine, using a new Widney UK window system, and it is expected that it
will go into production in Spring 2007 with annual sales of #4 million.



Widney Cabs has commenced production on a number of fabrications for JCB and is
in discussion with JCB on significant additional business.  The current
committed business is worth #3 million per annum.



Agreement has been reached with Caterpillar on a minimum quantity of backhoe
cabs worth approximately #9 million, to be delivered between 1st October 2006
and 31st July 2007.



Additionally, a contact has been received for component supplies to Caterpillar
worth #1 million per annum, which is expected to last for three years.



Widney UK



Widney UK has commenced production for a major Swedish manufacturer of
construction equipment on windows for its excavator cab with estimated volume of
10,000 sets per annum.  This business is anticipated to be worth #1.5 million
per annum.



                                                                 26 October 2006



Enquiries:


Widney Plc                                            Tel: 0121 327 5500
Graham Errington
Brian Stringer

College Hill                                          Tel: 020 7457 2020
Richard Pearson




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

TSTAKPKKOBDDNKB
Widney (LSE:WDNY)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024