DiscoverIE Regulatory News (DSCV)

Acal plc is today issuing its Interim Management Statement which covers the period commencing 1 April 2009 to date and includes the quarter ended 30 June 2009.

Since our preliminary results announcement, market conditions have remained difficult, with limited visibility. However, we have seen a stabilisation of orders received and an improvement in gross margins in the electronics division.  We expect this to lead to a stabilisation in revenues after the summer period. Purchasing Manager Indices are showing some improvement, albeit from a low level, which supports this view. 

Since the acquisition of Service Source Europe in January, and despite similar revenue pressures, the Supply Chain division has made significant progress; losses on a major contract have been eliminated and back office systems have been integrated with significant cost reductions being realised.

Whilst the performance for the first half year will reflect the difficult market conditions, we expect to see improvements in performance in the second half as cost reductions and business improvements take effect.

We continue to focus on implementing the specialisation strategy set out in our preliminary results, and managing our cost base and working capital. We retain a significant net cash balance, which positions us well for future opportunities.

Material transactions in the quarter were:

On 9 April 2009, we acquired the remaining 25% of the share capital of Service Source Europe Limited for a consideration of £1 million.

On 22 May 2009, we completed the disposal of a vacant property in Leicester for a consideration of £1.18 million. This will result in an exceptional profit of £250,000.

Acal plc

Nick Jefferies ~ Chief Executive

Malcolm Cooper ~ Finance Director

Cubitt Consulting

Brian Coleman-Smith

James Verstringhe

Nicola Krafft

01483 544500

01483 544500

020 7367 5100

07802 724400