Sign In
6 Nov 2008 07:00
ο»Ώ
HUVEAUX PLCΒ ("Huveaux")
BoardΒ ChangesΒ and Trading Update
Huveaux announcesΒ todayΒ that John Van Kuffeler, Founder and Non-Executive Chairman,Β hasΒ resignedΒ as a Director of the Group with immediate effect. Kevin HandΒ (the Senior Non-Executive Director)Β has been appointedΒ Non-Executive Chairman of the Group. At the same time, John ClarkeΒ hasΒ resignedΒ from his position as Non-Executive DirectorΒ with immediate effect.
The Board hasΒ alsoΒ reviewed the latest forecastΒ trading outcomeΒ forΒ the year ending 31st December 2008.
As expected, the "back to school" period showed a steady pick up in salesΒ withinΒ theΒ EducationΒ DivisionΒ broadly in line with our expectations. However,Β theΒ Secretary of State for Children, Schools and Families,Β Ed Balls, announced on the 14th October 2008 that SATs for 14 year olds (Key Stage 3) were to be abolishedΒ with immediate effect.Β This announcementΒ came without any forewarning and represented a complete u-turn from all previous announcements. This change will have a material effect on Huveaux, along with all other education publishers who had prepared materials for the courses already started in schools.
Following the abolition of the SATs at KS3, Huveaux anticipates that salesΒ to schoolsΒ ofΒ its "National Test Practice Papers" and "Success Guides and Workbooks" for Key Stage 3 will be significantly reduced and that thereΒ may be a knock-on effect on its other revision products at Key Stage 3 level, as schools re-assess their requirements, pendingΒ further guidanceΒ from the GovernmentΒ in the New Year. Actions are being taken within the Division to mitigate the effect of theΒ government's policy changeΒ and to ensure that product is available for the new School Report Card and internal testing system.
For this specific reason, sales and profits within the Education Division will be significantly below expectations for 2008 andΒ the outlook for this Division forΒ 2009Β is less certain.
The Board is pleased to report that the Political Division continued to trade well through the important Conference season and remains on course toΒ meetΒ expectations for the full yearΒ - representing double digit growth in both EBITDA and revenue over 2007.Β
Accordingly, the DirectorsΒ nowΒ anticipateΒ that the full year results, whilstΒ representing a solid performance in testing market conditions,Β willΒ fall short of their previous expectations.
The cost reduction exercise started throughout the Group in 2007 continues to drive additional cost savings, and in addition the Board has identified a number ofΒ newΒ cost savings,Β mainlyΒ inΒ Head Office, which, when fully implemented,Β will reduce annualised costs byΒ up to Β£500k.
For further information, please contact:Β
|
Huveaux PLC |
|
|
Kevin Hand, Chairman |
020 7245 0270 |
|
Gerry Murray, Chief Executive Officer |
|
|
Rupert Levy, Group Finance Director |
|
|
Brewin Dolphin Limited (NOMAD)Β |
|
|
Sandy Fraser |
0131 225 2566 |
Follow the stocks
