MPAY.L Regulatory News (MPAY)

9 Oct 2007 12:10

Autoclenz Holdings PLC09 October 2007 Issued on behalf of Autoclenz Holdings plcDate: Tuesday, 9 October 2007 IMMEDIATE RELEASE Autoclenz Holdings plc ("Group" or "the Company") Trading Update The Board of Autoclenz Holdings plc has been advised that its current tradingrelationship with a major car auction house is to be revised following changesto this customer's outsourcing policy. The current contract on an annualised basis totals approximately £4.0 million inrevenue terms whilst the new three-year contract will represent revenues of £1.5million per annum. As a result of this change, there will be an impact on the Group's Q4 andoverall trading performance for the year ending 31 December 2007 and subsequentmarket forecasts for the year ending 31 December 2008. Based on current marketforecasts, it is expected that the Group's pre-tax profits for 2007 will bereduced by £300,000. In addition, the current market forecast for the Group's2008 pre-tax profits, not taking into account any further new business securedcould be affected by up to a maximum of £700,000. The Directors are taking theappropriate action to minimise the impact of this current disappointingposition. As the Directors stated in the Group's interim results announced last month, thebusiness continues to regularly receive an encouraging level of tenderopportunities directly and through its business teams' activities. This has beenreflected in new business wins as indicated in our interim statement: earlierthis month we added to that list by securing another new contract worth £500,000per annum. This we believe continues to underpin Autoclenz's reputation and itsleading position in its market place. DividendAs announced in September, the interim dividend of 1.8p per share will be paidon 26 October 2007. The Board sees no reason to alter its stated progressivedividend strategy and therefore, barring any unforeseen circumstances intends torecommend maintaining the 2007 full year dividend. Enquiries: Grahame Rummery, Chief ExecutiveTrevor Clingo, Group Finance Director Fiona Tooley or Keith Gabriel Julian BluntAutoclenz Holdings Plc Citigate Dewe Rogerson KBC Peel HuntTel: 08707 510 410 Tel: 0121 455 8370 Tel: 020 7418 8900www.autoclenz.co.uk This information is provided by RNS The company news service from the London Stock Exchange