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24 Jul 2008 07:00
Latchways plc
Interim Management Statement
In accordance with the UK Listing Authority’s Disclosure and Transparency rules, Latchways plc announces its interim management statement in respect of the period 1 April 2008 to 23 July 2008 inclusive.
In our results for the year to 31st March 2008, announced on 9th June 2008, we stated that we are fully aware of the current economic climate and its impact on the UK commercial construction market. However, to date our business remains unaffected by market conditions. Order intake from our UK installer business is ahead of last year and our customers continue to report good trading. Our Walksafe walkway systems, acquired in June last year, have also had an encouraging start to the current year. We of course remain vigilant for signs of any downturn.
Our traditional European markets remain strong and in addition business continues to improve in some of our smaller EU markets.
On April 14th 2008 we announced the acquisition of Sigma 6 d.o.o, a Slovenian manufacturer of high quality, aluminium guardrail products, financed from existing cash reserves. This product range is complementary to our current range and will benefit from access to the Latchways distribution network. Market reaction has been positive.
The self retracting lifeline product range, which was launched in October last year in North America and more recently in Europe, is attracting a great deal of attention on both sides of the Atlantic. We expect this to translate into strong sales in the second half of this year. The product range will be expanded and new variants on this range will be launched later in the year.
We continue to make progress with the wind power generation and electricity transmission industries. The timing of orders is dependent upon the new build and maintenance programmes of our clients, but we are confident of reporting further successes as the year progresses.
The specialist fixing division, which had a poor year in 2007/08, has continued to underperform in the first quarter but has recently won orders which will help the recovery. As a result a stronger second half is in prospect for this division, which represents only a small part of our business.
The business continues to be supported by a strong balance sheet with good cash flows.
The board remains confident of full year group performance in line with market expectations.
Enquiries:
Latchways plc Threadneedle Communications David Hearson, Chief Executive Graham Herring Rex Orton, Financial Director Tel: 020 7936 9605 Tel: 01380 732700
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