Millbrook Scientific Instruments plc

('Millbrook' or the 'Group')

TRADING UPDATE - 8 April 2009

Millbrook Scientific Instruments plc (AIM:MBK), the designer and manufacturer of innovative scientific instruments that measure nanoscale properties of thin films and coatings, today provides the following trading update for the year ended 31 March 2009.

• Total Group sales (unaudited) for FY2009 £2.87m (FY2008 continuing operations - £2.5m); 

  • Second half FY2009 Group sales (unaudited) were £1.6m (second half FY2008 continuing operations - £1.5m);

• EBITDA for the second half of FY2009 expected to be in line or higher than that reported in the interim results announced on 16 December 2008;

• Net funds at 31 March 2009 (unaudited) were £447,000 (31 March 2008 - £73,476). During the year the group funded, out of its own cash flow, production of new test evaluation equipment and the move to a new facility in Wrexham;

• Order intake during FY2009 was on budget for both NanoTest and MiniSIMS, totalling £2.9m for the Group.  The value of orders already received for shipment in FY2010 is very similar to this time last year;

• Production:

• • All targets were hit at Wrexham;

  • Processes have been improved at Blackburn but shipments for the year fell just short of target. A reorganisation of the workspace is planned, together with a new network and a more powerful server which will facilitate remote demonstrations; 

• Development

• • Environmental control enclosure for NanoTest now available. This enables testing of samples at lower partial pressures of oxygen thereby reducing sample oxidation when testing at elevated temperatures up to 750ºC';

  • Improved data analysis software for MiniSIMS will be rolled out during the first half of FY2010;

• Economic conditions: 

• • Performance and order intake in the second half of FY2009, when the global economic downturn really took hold, remained satisfactory;

  • A substantial majority of the Group's sales are to academic and other research institutions. Recently announced economic stimulus packages around the world would seem likely to maintain or even potentially increase the funds available for scientific instruments in universities and government labs;

  • However in last year's revised business plan, the Board had anticipated that the Group would be able to achieve increased medium term growth rates by expanding the sales of MiniSIMS to global manufacturing companies. The Board now expects that the present weakness in the semiconductor industry and a number of other important global manufacturing industries will continue for some considerable time and has accordingly revised downwards its expected medium term growth rates for MiniSIMS sales; 

  • Weakness of pound sterling is generally beneficial although some supplies are sourced in other currencies. 

• The Group expects to announce its preliminary results for FY2009 in early July 2009.