DiscoverIE Regulatory News (DSCV)

23 Jan 2009 07:00



FOR RELEASE

7.00 AM

23 JANUARY 2009

ACAL plc 

SECOND INTERIM MANAGEMENT STATEMENT

PERIOD COMMENCING 1 OCTOBER 2008

Acal plc is today issuing its second Interim Management Statement for the year ending 31 March 2009, which covers the period commencing 1 October 2008 to date and includes trading for the nine months ended 31 December 2008.

Current trading

As we have reported in earlier statements, our markets have become increasingly difficult over the last six months.

Although the Group's sales for the quarter ended 31 December 2008 were slightly ahead of the corresponding quarter to December 2007, margins within the Electronics Division were adversely impacted by the decline in sterling over the quarter.  Within the Supply Chain Division (formerly Parts Services), the new management team has commenced the integration of Service Source Europe and is working to resolve ongoing contract operating losses.

In light of current trading levels, one-off foreign exchange losses and the cost of implementing further efficiencies, the Group result for the year ending 31 March 2009 will be below market expectations.

Following the net benefit from the sale of MessageLabs Group and the acquisition of Service Source Europe Limited, the group retains significant net cash despite increasing pressures on working capital. 

With the appointment of Nick Jefferies as Group Chief Executive on 5 January 2009, we will be carrying out a comprehensive review of Acal's business and strategy. The Board remains confident in the opportunities for the development of the business.

The following material events or transactions, each of which has been previously reported, impacted the Group during the period covered by this Interim Management Statement.

MessageLabs Group Limited

The sale of MessageLabs Group Limited to Symantec was completed on 14 November 2008. The total consideration receivable by Acal for its 3.95% investment is £16.2 million of which £15.1 million was received on that date. The balance is retained in escrow and will be returned to Acal if there are no warranty claims within a 12 month period.

Service Source Europe Limited

The acquisition of 75% of Service Source Europe Limited (SSE) was completed on January 9 2009 for a consideration in cash of £1.85 million. In addition, Acal subscribed for deferred shares in SSE with a total nominal value of £346,625 in cash to enable SSE's preference shares to be redeemed.

For further information:-

Notes to the Interim Management Statement

Notes to Editors:

Acal is a leading European value-added distributor providing specialist design-in, sales and marketing services for international suppliers in the fields of Electronic Components, Supply Chain Services and Medical and Scientific products. Organised into three divisions, Acal has 15 principal trading companies of which 8 are in Continental Europe and 7 in the UK.

Acal is now Europe's strongest multi-disciplined design-in electronics distributor and has always differentiated its offering with a strong focus on demand creation and a highly skilled technical sales force. Vertec Scientific, which operates in both the UK and South Africa, represents leading manufacturers in the field of bone densitometry, medical imaging and diagnostics. The Supply Chain division provides spare parts to field services organisations and is a supplier to virtually every leading company in that market.