ARL.L Regulatory News (ARL)

13 Dec 2007 11:38

SMC Group Plc13 December 2007 13 December 2007 SMC Group Plc (the "Company" or the "Group") Trading Update The Board of SMC Group Plc (the "Board") announces that it has now fully implemented the recommendations of the internal business review which was instigated following the financial underperformance of the Group in the first half of 2007. As a result, the Group's cost base has been significantly reduced and the latest management information indicates that since July 2007 the Group has performed in line with management's expectations. As a result of further investigations into the Group's work in progress ("WIP") and debtor positions by third party accountants, the Board believes that it is likely that the Company will incur further exceptional charges in addition to those highlighted in the Group's interim financial statements announced on 27 September 2007, primarily as a result of potential historic WIP and debtor provisions of up to approximately £800,000, in aggregate. The Board also announces that it is in advanced discussions regarding a potential significant pre-emptive equity fundraising. There can be no guarantee that such a fundraising will proceed or be successful. If such a fundraising were to occur, the Board believes that the net proceeds of the fundraising together with its available facilities will be sufficient for the Company to meet its financial obligations as they fall due in the near to mid-term. -ends- For further information: SMC Group Plc Tel: +44 (0)20 7495 5335Rob Boardman Numis Securities Tel: +44 (0)20 7776 1500Stuart Skinner/James Serjeant Bell Pottinger Corporate & Financial Tel: +44 (0)20 7861 3232David Rydell/Chris Hamilton - This information is provided by RNS The company news service from the London Stock Exchange