Print   



RTS plc ('RTS' or 'the Company')

Trading update

As predicted in the preliminary results which were released on 26 March 2008, RTS Life Science first half performance has been affected by the low order intake at the start of 2008 and significant investment in product development. 

In addition, we continue to incur costs completing a remaining legacy contract. Although we have made significant progress in the period, we do expect this to affect results for the balance of the year. 

RTS Life Science has recently secured orders in excess of £5m to supply several new compound stores for major Pharmaceutical companies, and has now successfully launched a new small blood fractionation system, which has generated significant interest. We are therefore expecting improved performance in the second half of the year.

In RTS Flexible Systems, despite an improved opening order book and strong prospect list we have not managed to convert all our opportunities into orders, and have consequently not seen the expected first half revenue growth and financial improvement. Flexible Systems have completed the first order for the automation of the end-of-line bread packing in the period, and despite weaker trading conditions we do anticipate an improving second half performance based on repeat orders.  

The business continues to pursue monies due to it from a system delivered in 2006, and is now expecting a resolution in the first half of 2009, the Flexible Systems Board still remains confident in the outcome of the claim.  

RTS has maintained its strong balance sheet position in the first half of the year with, the successful sale of the final piece of US Land for $0.9m, and the continued repayment of Loan Notes from Doerfer Industries with a further $1.5m received in the period. This left a closing net cash balance, after the payment of the £1.2m special dividend, at the half year end of £3.0m (2007 year end: £3.7m), and the remaining non-operating assets valued at £2.7m (2007 year end: £3.5m).

Notwithstanding the expected second half improvement we anticipate that the Group operating results for 2008 before exceptional items will be lower than market expectations.  

We expect the Group's net cash position to improve in the second half of the year, through both an improving financial performance and further Loan Note repayments. 

.  

25th July 2008

Enquiries:

Robotic Technology Systems PLC

Jon Sharrock, Finance Director                      Telephone: 0161 777 2000

Collins Stewart Europe Limited

Mark Connelly, Director, Corporate Finance    Telephone: 020 7523 8350

ENDTSTSEAFEISASEIW