Molins PLC
25 April 2008
MOLINS PLC
Interim Management Statement - Quarter 1 2008
Molins PLC, the international specialist engineering group, is holding its
Annual General Meeting today. This statement is its first Interim Management
Statement, issued in accordance with the UK Listing Authority's Disclosure and
Transparency Rules and relates to the period from 1 January 2008, the start of
the Company's financial year.
Sales in the first quarter of the year were in line with internal plans and
overall were marginally ahead of the equivalent period in the prior year. The
operating performance of the Group broadly matched the board's expectations in
the first quarter.
However, within the Packaging Machinery division the uncertain economic
conditions in North America and Europe are resulting in weakness in short and
medium term order prospects.
Also, Arista Laboratories, part of the Scientific Services division, has
recently been informed by a major customer of its decision to in-source part of
its testing programme in order to utilise better its own internal laboratory.
This will impact Arista's performance in the year, although we still expect the
business to perform more strongly than in the previous year. Medium term
prospects in this business remain positive, in particular in view of prospective
legislation in the United States.
The financial position of the Group is broadly comparable with that at 31
December 2007. The balance sheet includes the valuation of the UK defined
benefit scheme, which is by its nature prone to potentially quite large changes,
dependant on factors outside the control of the Company. As expected and in
line with the usual cash flow pattern of the Group, net debt has increased in
the period since the year end. At 31 March 2008 net debt was £9.4m (31 December
2007: £7.6m).
The Company posted a circular to shareholders on 29 February 2008, seeking
approval for the grant of an option to e-shelter facility services GmbH to
purchase the Saunderton site on or before 3 October 2008 for a cash
consideration of £17.5m. Shareholder approval for this option was obtained at a
general meeting of the Company on 18 March 2008. The Company and e-shelter
together made a planning application for the development of the site on 18 March
2008.
Enquiries: Molins PLC Issued by: Citigate Dewe Rogerson
Tel: 01908 219000 Tel: 020 7638 9571
Dick Hunter, Chief Executive Sara Batchelor, Angharad Couch
David Cowen, Group Finance Director
This information is provided by RNS
The company news service from the London Stock Exchange