Associated British Engineering Issues Profit Warning

LONDON (Alliance News) - Associated British Engineering PLC Friday said operating subsidiary British Polar Engines Ltd continues to trade profitably but the out turn for the full-year ending March 31 will be "materially below budget."

The company also said Akoris Trading Ltd, in which British Polar Engines has a 50% stake, has yet to trade, meaning the company has resolved to write down the investment by GBP262,000.

Last year, British Polar Engines invested USD500,000 by subscribing for shares in the newly-formed natural resources investment business. It also issued Akoris with a commercial loan facility of GBP200,000, secured by a fixed and floating charge on Akoris' assets.

"While a not insignificant sum it amounts to less than 10% of the net liquid assets available to the group," the company said.

Associated British Engineering shares were quoted up 3.9% at 135.00 pence Friday afternoon.

By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews

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