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17 Apr 2009 07:00
AGM Trading Update
At today's AGM, Tim Stevenson, OBE, Morgan Crucible's Chairman, will provide the following update.
Group revenues for the first quarter were £255m compared to £178m in the equivalent period last year with strong first year performance from NP Aerospace and the businesses acquired from Carpenter. Excluding the impact of acquisitions, first quarter revenues were up c.11% year-on-year reflecting the benefits of favourable currency translation. In Q1 we have seen, as anticipated, a continuing downward trend in end-market demand meaning that, on a constant currency basis, organic revenues were down 9% compared to Q1 2008.
Of particular note in the period since our last reported results, is the award from the Ministry of Defence of a contract for the Tactical Support Vehicle (TSV) which we announced in early April. This will generate c.£30m of new revenues for NP Aerospace in the latter part of this year and the first half of 2010.
The refinancing of the Group's banking facilities which mature in March 2010 has progressed well and we are now in the final stages of documentation for the new facility.
Going forward, the ongoing uncertainty in the global economy clearly makes it much more difficult to forecast demand accurately. However, to ensure that we are well prepared for any further deterioration in end market conditions, we are continuing to take decisive action to reduce our operating cost base. Group overall headcount at the end of Q1, excluding acquisitions, has been reduced by over 1,000 people (c.10%) worldwide from its levels of last summer and we stand ready to take further mitigating actions as required.
Our next announcement to shareholders will be our Interim Management Statement in mid May when we will update further on the Group's trading and prospects.
Enquiries:
The Morgan Crucible Company plc 01753 837000
Mark Robertshaw, Chief Executive
Kevin Dangerfield, Chief Financial Officer
Finsbury Group 020 7251 3801
Mike Smith
Clare Strange
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