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16 Apr 2015 07:00
Energy Technique plc
(the "Company")
End of Year Trading Statement
The Board announces its end of year trading statement in advance of publication of the preliminary results for the year ended 31 March 2015 on or around 21 May 2015.
The Board is very pleased to report a continuation of strong sales growth in the year ended 31 March 2015, with sales growing by 12% over the previous year to £10.75 million (2014: £9.56 million), representing the fourth consecutive year of sales growth.
Fan coils provided the growth driver, with sales increasing by 18% over the previous year to £8.76 million (2014: £7.45 million), attributed to a continuation of stronger UK fan coil market demand and to Diffusion's premium branded product offering. The number and size of commercial and high-end residential projects and refurbishments currently being developed by the leading property owning companies are providing ideal trading conditions for Diffusion.
The recently launched ECO 270 fan coil range offering 25% energy savings for no additional capital cost gained further market traction. Fan coils were supplied into a number of high value landmark developments and to over 350 different projects in total.
Fan coils were supplied into the three current London skyline developments of the Shard, Cheesegrater and Walkie-Talkie, together with the high-end residential Riverlight development. Other major commercial developments included American Express, London Bridge Place, Nations House, Hyde Park Hayes and 207-211 Old Street. Other major high-end residential developments included the Shard (mixed commercial/residential), Holland Green and 1 Tower Bridge.
Sales of the much smaller commercial heating product group fell marginally on the previous year to £1.53 million (2014: £1.65 million). Sales of commercial heating products suffered from weak demand from the UK high street. Despite this, Diffusion continued to serve its long list of blue-chip clients, including product for Waitrose, Marks & Spencer, Boots, H&M, Superdry and Next.
The net increase in cash during the year was £487,000, resulting in net cash at 31 March 2015 of £1.36 million (2014: £873,000). The previous invoice finance facility has been suspended at the Company's request as cash resources accommodate short-term fluctuations in working capital.
The new financial year ending 31 March 2016 has started well with high levels of enquiries and a strong order book. UK fan coil market demand started to improve two years ago and this is expected to remain a market feature during the current year ending 31 March 2016 and beyond.
For further information:
Walter Goldsmith Chairman 020 8783 0033
Leigh Stimpson CEO 020 8783 0033
Ed Frisby / Scott Mathieson finnCap Limited (Nominated Adviser) 020 7220 0500
Notes to editors
The Company's trading subsidiary, Diffusion, enjoys a leading market position as a manufacturer of premium fan coils and commercial heating products to the UK commercial and high end residential sectors, combined with a blue-chip client base, renowned brand and over 50 years trading experience. Diffusion and Energy Technique brands are recognised by the UK heating ventilation and air conditioning sector ("HVAC") as highly engineered, quality products providing leading edge performance and energy efficiency.
Diffusion's products are supplied into commercial offices, hotels, airports, retail outlets, schools, and high-end residential developments. Business risk is reduced by third-party M&E contractors installing Diffusion's products. Fan coils are supplied into developments of the major property owning companies, including Land Securities, Stanhope Properties, Grosvenor Estates and British Land. Commercial heating end users include Marks & Spencer, Sainsbury's, Tesco, New Look, Boots, ASDA, John Lewis, Fat Face, Lloyds Bank and TK Maxx.
Diffusion's management team has a demonstrable track record of success, working closely with designers, technicians, support staff and clients across all UK geographical locations to deliver bespoke HVAC solutions of the highest standard. Diffusion operates from a 30,000 sq. ft. manufacturing facility in West Molesey, Surrey, ideally placed to serve its principal London and South East market by providing a highly valued just-in-time service.
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