Cabot Energy Regulatory News (CAB)

2 Feb 2005 12:59

Carbo PLC02 February 2005 CARBO PLC The Board of Carbo PLC announces certain changes following the completion of therestructuring of the Group and the focussing of the Group's operations on itsDusseldorf plant in Germany. Mr Lars Nyqvist has resigned as Group Chief Executive and a Director withimmediate effect. A replacement will be announced as soon as possible. In themeantime the existing executive team will report to a Management Committee whichhas been established to give detailed attention to the development of theoperations of the Group. This Committee consists of Herman Fuchs, AndreaManganelli, Jean Louis Moatti and Carlo Palu, all of who are significantshareholders and have extensive knowledge and expertise of the abrasivesindustry world-wide. A review of the structure of the Board has also been carried out. As a resultSven Olsson, who had originally joined the Board as a nominee of Messrs Fuchs,Manganelli and Moatti has resigned with immediate effect, as has Stephen Knight. Lord Hodgson will remain as Chairman for the time being but will step downwhen a suitable alternative Chairman can be found. As regards operating results, the receipt of the new funding in September had apositive impact on operating results in Germany, where over 80% of the Group'sbusiness now takes place. Management accounts showed the German operationtrading ahead of profit budgets during the three months to 31 December 2004.But during the latter part of the quarter the Group suffered order cancellationsand postponements which had some impact on December's results and will have agreater one on January's. This, and continued restriction on the levels ofsupplier credit, has had an immediate adverse impact on cash flow, which is nowextremely tight. The final reorganisation of the UK operation has continued on schedule.Manufacturing in the U.K. is being brought to an end and either sold ortransferred to Dusseldorf. Arrangements to vacate the existing site and move to smaller and less costlypremises are being finalised. The Board is also investigating a number of possible opportunities to generateadditional working capital. For further information contact:- Stuart Dootson (Finance Director) Tel: 07734 297657 John Louis Moatti Tel: 0033 (0) 609 057381 2 February 2005 This information is provided by RNS The company news service from the London Stock Exchange