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5 Feb 2009 07:00
Latchways plc
Interim Management Statement
In accordance with the UK Listing Authority's Disclosure and Transparency rules, Latchways plc presents its interim management statement in respect of the period 1 October 2008 to 4 February 2009 inclusive.
In our interim results announcement made on 6th November 2008, we stated that the economic climate had not yet had a significant effect on our business. Since then the global downturn has continued, and we are now seeing the impact of this. Whilst enquiry levels remain strong, these enquiries are taking longer to convert to business, with customers reluctant to commit to spending. We expect this situation to continue over the remainder of the financial year. As a result, we now expect group profits before exceptional items and taxation to be slightly below last year.
Despite the economic situation, we still expect to report record group revenues for the year. We have made a number of important investments in new products and sales resource over the past year which we believe to be essential to ensure the medium and long term growth prospects of the group. These investments are already generating additional revenue but the current slowdown has resulted in the increased costs affecting profits in the second half.
Group cash flow remains strong, and we have significant net cash balances.
Prospects for many areas of the business are encouraging. We are working closely with a number of potential customers, some of which could have a material impact on our business in the coming year. The Wingrip business is performing very well, with increasing implementation of the system for both commercial and military applications. Our Versirail guardrail, acquired in April 2008, has been well received and has exceeded our initial expectations. Our new product development programme is on track to deliver further additions to the Self Retracting Lifeline range as well as other exciting new products within the coming months. These will all provide new revenue streams for 2009/10.
Enquiries:
Latchways plc Threadneedle Communications
David Hearson, Chief Executive Graham Herring
Rex Orton, Financial Director Tel: 020 7653 9850
Tel: 01380 732700
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