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11 Nov 2008 07:00
ARTISAN (UK) PLC
AGM STATEMENT 2008
At the Annual General Meeting of Artisan (UK) plc, the business park developer and housebuilder, to be held today (11 November 2008), Chairman Michael Stevens will make the following statement:
"Artisan (UK) has performed creditably during the year to 30 June 2008 in what were very difficult market conditions. This result was derived largely from the strong performance of the commercial division balancing the difficult trading conditions prevalent in the residential market. Since our June year end, there has been a significant deterioration in the market for both our residential and commercial development operations, with activity levels lower than in the corresponding period last year. In addition to the difficulties in raising mortgage finance, potential customers for our house building business, Rippon Homes, are currently becoming much more cautious about buying as a recession becomes more apparent. However on the commercial side of our business there are some customers contemplating committing themselves to new developments, though these are more focussed on forward sale or let developments which could proceed in the next 6 to 12 months.
Market conditions are extremely volatile, making it difficult to predict with any accuracy the level of sales likely to be achieved over the next few months. However it is clear that it is likely that the Group will suffer from reduced volumes at best in the short term, but more probably throughout the year.
In the prevailing conditions, the group has adopted a stringent attitude to spend and is focussing its efforts on maintaining the substantial cash headroom position allowed by drawings on our debt facilities. We have taken a number of steps including overhead reduction, a substantial slowing of build activity, close liaison with our bank and moderating profit aspirations to achieve sales. Rather than buying land in current market conditions, we are seeking out opportunities to gain positions on sites for future development only once the market improves.
The cash position was enhanced through the issue of the convertible loan note of £1.75m in August 2008.
We believe this approach will see the group through to the eventual upturn in the economic cycle.
Whilst short term prospects are undoubtedly challenging, I believe that the fundamentals for the development industry are strong in the medium term and that Artisan has excellent prospects once market conditions have improved."
Michael W Stevens
Chairman
11 November 2008
Artisan (UK) plc
Chris Musselle
Chief Executive 01480 436666 email@artisan-plc.co.uk
Brewin Dolphin Limited
Nominated advisers
Andrew Kitchingman 0845 270 8613
Sean Wyndham-Quin 0845 270 9518
Bankside Consultants
Financial PR advisers
Simon Rothschild 020 7367 8888
Louise Mason 07703 167065
Company website: www.artisan-plc.co.uk
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