LTC.L Regulatory News (LTC)

11 February 2015

Latchways plc

Interim Management Statement

Latchways plc announces the following trading update in respect of the period 1 October 2014 to 10 February 2015 inclusive:

The board expects that results for the year to 31 March 2015 will be in line with current market expectations.

Trading conditions remain similar to those described in our interim results statement issued on 17 November 2014. Our traditional installer based business is performing well in the UK and Latin America, whilst the Eurozone continues to present challenges.

Our new senior sales team is making good progress. Sales resource plans have been developed for the key geographies of North America and Europe, with recruitment already underway. This will result in cost increases in the coming year but we are confident that these will be outweighed by the revenues which these resources will generate. We also expect the greater market coverage that these investments will provide to improve our business pipeline and thus our visibility of revenues in due course.

The short term issues of destocking by our largest US customer, and specific project delays, are being resolved and we expect these to generate incremental business in the coming year.

We look forward to the 2015-16 financial year with renewed confidence in our ability to restore the business to growth. Cash flows remain robust enabling us to continue to invest in the future of the business.

We look forward to providing a further update in our preliminary results for the year ending 31 March 2015 in June 2015.