MPAY.L Regulatory News (MPAY)

Wednesday, 19 May 2010

Autoclenz Holdings Plc

AGM Statement

"At today's Annual General Meeting (19th May 2010) Chairman James Leek, will make the following statement to shareholders:

• Automotive Services is recovering well from the negative impact of January's severe weather. Sales and profitability (per our unaudited management accounts for the first 4 months to April) are slightly above budget and last year, thanks to new sales wins and improving volumes of the UK new car market. We are cautiously optimistic that Automotives Services, (which accounts for over 90% of our total annual sales), will achieve our year end objective of reversing the last two years sales declines

• React Specialist Cleaning Services is performing under budget and last year. Major customer closures in the January weather, and increasing budgetary pressures on Councils and Public Authorities have led to a 25% reduction in sales during the first 4 months. We are actively reducing the cost structure of this business to reflect what may be a continuing harsh environment as government expenditure is curtailed to address the national budget deficit. This may provide opportunities for outsourcing in due course and we are also re-structuring our sales activities to try to win a larger share of housing sector business, albeit this is lower margin than our traditional business.

Overall we are trading in line with budget and despite the difficulties with REACT our target, as expressed in our annual report, remains to at least maintain last year's level of profitability. "