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1st Dental Laboratories plc

('1st Dental' or the 'Company' or 'the Group') 

 Notice of interim results, trading update and Appointment of Adviser

Notice of interim results, trading update

The Group will announce its interim results on 20 August 2009. The results will show that performance is broadly in line with Directors' expectations for the half year ending 31st May 2009.

At this time last year we reported that disruptions at our Blackpool and Stourport laboratories had exacerbated a declining revenue trend in the Group, revenues having declined by some 12% against 2007 levels overall.  Blackpool and Stourport have now stabilised and we can report that Stourport has contributed positively compared with the same time last year. The recovery at Blackpool has been slower but is starting to come in line with our expectations, in the closing month of the half year Blackpool beat budget by some degree. Overall, we can report that Group revenues increased by 5.5% against 2008 half year, a credible performance against a difficult market where we believe volumes are as much as 20% below 2008 levels.

Very boldly as we closed last year the executive team made the decision to recruit a professional sales force and manager which now totals 10 staff, with the last member joining as recently as March. Currently we are able to report that the sales team is 30% ahead of their financial targets having recruited some 102 new clients to the end of June. While this can be expected to be a drain on resources during implementation, it was felt essential to stop the attrition of our headline sales number. The cost of this investment in the central team has been absorbed into the current period and its breakeven point is now visible.

Since the turn of the year the Group has invested in new production processes and staff training for metal free restorations in each and every laboratory. The number of Zirconia restorations during this period has almost tripled.

The Eteeth business continues to enjoy success with our online service, and at the half year our revenues have more than doubled that taken at the same point in 2008.    

With the exception of the investments in the central sales team and Eteeth, we are mindful of the current economic climate and we remain very alert and active in considering cost controls and labour efficiencies throughout the Group.

Our Board has been further strengthened with the addition of a very experienced FD, Jonathan Foxcroft. As previously reported, Jonathan joined the Board in April and has made a real contribution to date.     

While we will still be reporting a loss at the half year, we will show an improving situation after the cost of the new sales force and the continued investment into eteeth. 

In summary the efforts that have been made to date appear to have stopped the sales attrition. In spite of the current economic climate, we have increased our sales in the period. With the continued good financial and cash controls we are able to remain confident and look forward to further growth for the second half year and beyond.  

 

Appointment of Adviser

1st Dental Laboratories Plc is pleased to announce the appointment of Astaire Securities as nominated adviser and broker with immediate effect.

 

Further Information:

 

Andrew Garner, Executive Chairman - 01509-650111

 

William Vandyk, Astaire Securities - 020 7448 4400

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