Ubsetfusmca Regulatory News (UMC)

28 Jul 2010 07:00

28 July 2010 Umeco plc Interim Management Statement

Umeco plc, an international provider of supply chain services and advanced composite materials primarily to the aerospace & defence industries, today publishes its Interim Management Statement relating to the period from 1 April 2010 to 27 July 2010, incorporating financial information relating to the period from 1 April 2010 to 30 June 2010. The Company's Annual General Meeting takes place today at 1.00pm.

Current trading

Group revenue was 3.9 per cent higher than the same period last year, or 3.4 per cent higher in constant currency terms. This comprises constant currency revenue growth in Composites - Structural Materials of 6.8 per cent and Composites - Process Materials of 26.3 per cent, offset by a decline in Supply Chain of 4.3 per cent.

Structural Materials' revenue growth in the quarter reflects improving conditions in the aerospace market. Process Materials has benefited from the wind energy market recovering more rapidly than anticipated and from higher demand levels from the civil aerospace sector. The small decline in Supply Chain primarily reflects a continuation of previously reported weakness in European civil aftermarket demand, exacerbated by comparison with a strong performance in the same period last year.

Order intake levels continue to recover; the Group's order book at 30 June 2010 was £240.5 million (30 June 2009: £219.9 million), compared to £227.4 million at 31 March 2010.

Net debt at 30 June 2010 was £105.3 million (30 June 2009: £130.2 million), compared to £79.6 million at 31 March 2010. The increase since 31 March 2010 reflects the Group's usual seasonal phasing of cash flows and an adverse exchange rate movement of £1.6 million. Continuing management actions to improve working capital ratios are having a positive benefit. We remain comfortable with the outlook for net debt and our position in respect of our banking covenants. Dialogue with potential providers of funding is well advanced in respect of the term loan due for repayment in August 2011.

Farnborough airshow

Orders for 555 civil aircraft were announced by Airbus and Boeing at the Farnborough airshow; this was ahead of expectations and bodes well for prospects in the civil aerospace market.

Outlook

We have been encouraged by the rise in order intake enjoyed in the first quarter, particularly within our Composites operations, and we expect the Group's trading performance for the six months to 30 September 2010 to be broadly consistent with the six months to 30 September 2009.

Umeco continues to trade in line with the Board's expectations for the year to 31 March 2011.

- Ends -

Umeco will be holding an analyst conference call today at 8.00am (UK time) which can be accessed from within the UK and internationally by telephoning +44 (0) 1452 568 051 and entering access code 88376456#. After the conference call, replays of the call can be accessed by telephoning +44 (0) 1452 55 00 00 and entering access code 88376456#.

For further information, please contact:-

Umeco plc Tel: +44 (0) 1926 331 800 Clive Snowdon, Chief Executive Doug Robertson, Finance Director

www.umeco.com Tulchan Communications Tel: +44 (0) 207 353 4200 John Sunnucks Christian Cowley Notes

The next scheduled update on the Group's performance will be the announcement of interim results for the six months to 30 September 2010. These will be released on 9 November 2010.

The information in this announcement is based upon unaudited management accounts. Revenue and order intake values are for continuing operations only, and exclude amounts relating to Advanced Composites Group SA (Pty) Limited (`ACG South Africa'). Completion of the divestment of the business and assets of ACG South Africa was announced on 8 July 2010.

Certain statements made in this announcement are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future events or results referred to in these forward looking statements. Unless otherwise required by applicable law, regulation or accounting standard, we do not undertake any obligation to update or revise any forward looking statements, whether as a result of new information, future developments or otherwise. Nothing in this announcement should be construed as a profit forecast or estimate.

Further Information on Umeco plc

Umeco is a leading innovator in distribution and supply chain management to the aerospace & defence industries, harnessing new methods for enhancing its customers' performance and profitability. Umeco also has significant manufacturing interests in advanced composite materials for a growing range of applications in its core aerospace and defence markets and in other high performance technology industries such as motor sport, automotive and wind energy.

Listed on the London Stock Exchange, Umeco had revenue from continuing operations of £409.4 million in the year to 31 March 2010.

Umeco is managed through three business streams:-

Umeco Composites - Structural Materials

Development, manufacture and supply of advanced composite materials. Specialising in the manufacture of high performance composite materials for a diverse range of industries such as aerospace, marine, motor sport & automotive, construction, wind energy and leisure sports. Structural Materials has manufacturing operations in the UK and the US, and distributes its products worldwide. Customers include Boeing, Airbus, manufacturers of high performance super cars and Formula 1 teams.

Umeco Composites - Process Materials

Development, manufacture and supply of vacuum bagging materials to the composites industry and other markets, providing a wide range of materials and technical support to a growing number of international customers. Process Materials has manufacturing operations in Italy and France, and value-added distribution facilities in the UK and the US. It has a global distribution network. Customers include Airbus, Boeing and manufacturers of wind turbine blades.

Umeco Supply Chain

A leading international provider of value-added distribution and supply chain outsourcing services to customers in the aerospace & defence market. With its specialisation in the supply of small and medium value components and sophisticated IT systems, its growing global customer base can enjoy significant operational, cost and working capital benefits. The Supply Chain businesses trade globally as Pattonair. Customers include Rolls-Royce plc, BAE Systems, Safran Group, Parker Aerospace, Goodrich, Thales Aerospace, Turbomeca, ATK, Lockheed Martin and the US Department of Defense.