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24 Nov 2010 11:01
Pochin's PLC
("Pochin's" or the "Group")
Annual General Meeting Statement
This statement made at the Group's Annual General Meeting provides a further update on the trading situation following the previous Interim Management Statement dated 15th October 2010.
The Construction division continues to win orders in an increasingly competitive market. It continues to trade profitably although the level of turnover is significantly behind that achieved at this date last year.
The loss making concrete pumping company division is benefiting from the cost savings previously announced, and there is some evidence that the price per job is beginning to recover slightly after many months of decline.
In property, the wholly-owned investment portfolio continues to perform steadily with few vacant units. There is significant emphasis on the disposal of non-income earning assets including completed residential units and building land as part of our debt reduction programme.
Completion has recently been achieved of the contract for the sale of a large development site at Birkenhead, referred to in the Chairman's Statement and Business Review in the Report and Accounts issued on 29th September 2010. As explained therein, the terms of the sale were designed to avoid further losses during the current year from this project, which has been expensive for the Group.
By contrast, the conditional agreement, also referred to in the Report and Accounts, whereby Pochin's would be released from its obligations in connection with the two refurbished Liverpool office properties held in joint venture, has not completed. Negotiations continue regarding the Group's liability arising from all joint venture guarantees.
Subject to the ongoing difficulty in the joint ventures outlined above, and despite reduced but continuing losses in the concrete pumping division, a degree of stability has been restored. The position remains as set out in the recent Chairman's Statement, "Provided that the economic conditions in the UK do not deteriorate further, and the forthcoming public sector cuts are not too damaging to the construction industry, it should now be possible for Pochin's to progress once again."
Richard Fildes
Chairman
24 November 2010
Enquiries:
Pochin's Plc Tel: 01606 833 333
John Moss
Chief Executive
John Edwards
Finance Director
Charles Stanley Securities Tel: 020 7149 6000
Russell Cook / Carl Holmes
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