8 Dec 2008 12:00
8th December 2008
SMC Group Plc
Proposed name change to Archial Group Plc
Trading update
As part of the corporate restructuring and overall harmonisation of the business, SMC Group Plc ("the Company"), the architecture and design business, announces a proposed name change to Archial Group Plc.
The Company is sending a Notice of General Meeting to shareholders to convene a General Meeting for 9.30 am on 5th January 2009 at the Company's offices, Tennyson House, 2nd Floor, 159-165 Great Portland Street, London, W1W 5PA. The purpose of the meeting is to seek shareholder approval for the proposed name change. A circular containing a letter from the Chairman explaining the proposal and the Notice of General Meeting is being sent to shareholders today. A copy of the circular and the Notice of General Meeting is available from the Company's website at www.smcgroupplc.com.
The Company's Stock Exchange Ticker will, following shareholder approval of the proposed name change, be changed to 'ARL'.
Trading update
Since the beginning of the year the Board has focused on improving the resilience of the business which, together with the flexibility of the cost base and careful expenditure control, has enabled the Company to maintain a good level of profit generation so far this year, in the context of the uncertainties in the property and construction marketplace.
The constant efforts made to improve the defensive and international characteristics of the business have enabled the Company to maintain a robust level of forward order book, at circa £50m. Total estimated fees secured since the beginning of September amount to approximately £11m which is commensurate with previously reported figures for the new instructions of £7.5 to £8m every two months. Moreover the composition of this future order book has improved since 30 June with a further increase in the proportion of future revenue derived from publicly funded work from 31% to 38%.
The Company is also pleased to report the strong growth and expansion of its operations in Asia, the Middle East and North America, which now account for 17% of the forward order book (compared with 13% as at 30 June). The Board believes that these markets offer significant future growth potential for the Company.
A representative list of new instructions that have been received by the Company in the UK and overseas since August on new and ongoing projects includes:
Aberdeen - Corporate oil industry training facility
Abu Dhabi - Sports village project
Bedford - NHS Hospital alteration project
Cambridge - School project
Dubai - Residential mixed use development project
Hyderabad - Second phase residential project
Kuala Lumpur - Three retail projects
Malvern - Health care facility
Midlands - Three master-plan mixed use projects and major retail development
Great Yarmouth and Canterbury - Two Further Education college facilities
London - Magistrates court project
North East Scotland - Affordable housing sites
MOD - Two projects in South England and one International
Southend, Nottingham and Suffolk - Three leisure pool projects
Toronto - Two new underground stations
West Lothian - Community centre
Zhaibei (PRC) - Major retail project
As a result, the Directors are confident in the Group's current performance and are pleased to report that at the end of November, approximately 65% of the Company's anticipated fee income for 2009 has been secured which is comparable with the visibility of 70% on fees for 2008 recorded at the end of January 2008.
Whilst the Directors continue to monitor the current economic situation, they remain confident for the future due to the Group's high visibility of revenues, strong forward order book in place, diverse client-base and sector and geographical spread.
- Ends -
For further information, please contact:
| SMC Group Plc Chris Littlemore/Rob Boardman | Tel: +44 (0)20 7580 0400 |
| Numis Securities Limited Nominated adviser: Stuart Skinner/Brent Nabbs Corporate broking: James Serjeant | Tel: +44 (0)20 7260 1000 |
| Financial Dynamics Billy Clegg/Caroline Stewart/Alex Beagley | Tel: +44 (0)20 7831 3113 |