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Mount Engineering Plc 

Trading Update 

and Notice of Results

Mount Engineering Plc ("Mount" or "the Group"), today announces a trading update ahead of its preliminary results for the year to 31 December 2009.

The markets in which Mount operate have continued to prove challenging in the second half of the year, however measures taken to safeguard margin through tighter control of the supply chain and overheads have benefited the operating margin. Consequently, the Board anticipates that the Group's pre-tax profit will be in line with market expectations for the year at £2.7m. 

The Group's cash flow management has been excellent and Mount enters the new year in a significant net cash position of £1.7m, strengthening the Board's ability to seek out a suitable acquisition target.

Our key indicators show our sales have stabilised and market consensus would lead us to anticipate modest growth in the second half. The Board is satisfied with the start to the current year.

The Board anticipates releasing the preliminary results on March 18th 2010.

For further information:

Mount Engineering Plc
Colin Ainger (Non-Executive Chairman)	+44 7778 160 365
David Stanham (Chief Executive Officer)	+44 7834 046 121
Charles Stanley Securities - Nominated Adviser & Broker
Rick Thompson / Philip Davies / Ben Johnston	+44 20 7149 6482
Matt Marchant (Corporate Broking)	+44 20 7149 6294

  Mount Engineering Plc

("Mount" or "the Group")

Background Note

Mount has three operating subsidiary companies, Redapt, Raxton and Hi Flow Valves Limited ("Hi Flow"). Each subsidiary has an executive team responsible for the day to day management of the business. A Group team of three executives directs and co-ordinates the subsidiaries. Three experienced non executive directors together with the Chief Executive comprise the Group board.

Redapt, based in the West Midlands, designs and manufactures an extensive range of thread conversion components, adaptors, reducers, stopping plugs, bulkhead penetrators and other products that have multi sector application wherever there is a risk of explosion or fire in hazardous environments or aggressive applications typically in the oil & gas, petrochemical and chemical industries.

Raxton, based in Aldridge, manufactures "ex" certified thread conversion components. Raxton's main end user markets are the oil & gas, petrochemical and chemical industries. Raxton also extends their business into non-hazardous area applications in more industrial based market segments.

Hi Flow, based in Mildenhall, stocks, distributes and merchants a range of industrial valves and actuators to the oil & gas, petrochemical, process and related industries throughout the world. Hi Flow has signed stocking distributor agreements with a number of suppliers providing a range of cast steel gate, globe check and ball valves. Hi Flow has launched its own brand, "Saxon", for the production and distribution of wafer check valves and continues to seek additional products that will ensure it can offer a broad range of products. 

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