Ubsetfusmca Regulatory News (UMC)

 Umeco plc

Interim Management Statement

Trading in line with Board expectations

Umeco plc ('Umeco' or 'the Company'), the global provider of advanced composite materials, today publishes its Interim Management Statement for the period from 1 October 2011 to 16 February 2012, incorporating financial information relating to the Group's continuing operations for the period from 1 October 2011 to 31 January 2012.

Current Trading

Umeco has delivered a robust performance overall in the four months to 31 January 2012 with revenue from continuing operations 8.7 per cent higher year-on-year. The Company's successful development continues to be underpinned by demand for lighter weight, higher strength materials driven by structural factors that include environmental regulation, fuel costs and safety considerations. The Company remains on track to deliver a full year result in line with the Board's expectations.

Structural Materials grew revenues by 19.8 per cent, benefiting from the Foxhound vehicle (LPPV) contract and the expansion of our distribution business into Finland and France during the second half of last year. As expected, margins were higher than in the first half of the current financial year, despite the effects of dual running costs associated with the relocation of operations in California.

Process Materials' revenues reduced by 6.2 per cent. As anticipated, strong demand from the aerospace & defence sector was offset by continued weakness in the Chinese wind energy market, which performed strongly in the comparative period. Excluding sales to the wind energy market, Process Materials' revenue increased by 5.2 per cent. Margins were similar to the first half of the current financial year, reflecting a favourable sales mix and continuation of benefits from actions taken to improve pricing.

Market Review

Aerospace & defence revenues, which accounted for 37.6 per cent of Group revenue in the period, grew by 21.6 per cent. Both business streams saw increasing activity from the 787 programme and from development of the A350XWB. Structural Materials' defence revenues benefited from the supply of ballistic protection materials used on the Foxhound contract, with this contract accounting for 14.0 percentage points of the revenue growth. In addition to their original order for 200 Foxhound vehicles, the Ministry of Defence has now indicated it will place a follow-on order for a further 100 vehicles.

Revenues in the wind energy market accounted for 9.6 per cent of total revenue and were 29.2 per cent lower than the comparative period. This reflects the previously highlighted weakness in the Chinese wind energy market, partially offset by strong demand from customers in the Americas. We continue to expect the Chinese market will have begun its recovery by the end of our current financial year and remain confident about the long term prospects of this market.

Revenue in the automotive sector grew by 35.8 per cent and represented 8.3 per cent of total revenue, reflecting a number of projects with high end automotive manufacturers.

Revenues into the recreation market were 19.2 per cent of total revenue, and grew by 22.6 per cent. This reflects strong demand in each of the motorsport, marine and sporting goods segments.

The Other Industrial segment accounted for 25.3 per cent of total revenue, with revenues to our advanced composite markets growing by 13.7 per cent. However we experienced lower demand for our specialist films not directly related to composites applications, which are supplied into southern European markets. This led to a 1.6 per cent overall reduction in Other Industrial revenue.

Overall, our markets continue to evidence the structural growth drivers that are generating increasing demand for our advanced composite materials.

Andrew Moss, Chief Executive of Umeco, said:

"We are pleased to have delivered an overall trading performance in line with our expectations. We are focused on our strategy of investing in innovative technology and knowhow, expanding our footprint in emerging markets, and delivering superior levels of service, concentrating on high quality business segments in long term growth markets that command attractive margins.

While the Board is mindful of the current uncertain macroeconomic environment, we remain on track to deliver our expectations for the current financial year."

- Ends -

Notes:

There will be a conference call on 17 February 2012 at 8.00am UK time for analysts and investors, with replay access available until 23 February 2012. Details are as follows:

Umeco will be hosting a Capital Markets Event in London on 22 March 2012 at which the Company will set out its strategy for sustainable growth including market growth potential and Umeco's competitive positioning. For more information about this event, please contact Sarah Hughes at Hudson Sandler on +44 (0) 20 7796 4133 or email Umeco@hudsonsandler.com.

For further information please contact:

Umeco plc Tel: +44 (0) 1926 331 800

Andrew Moss, Chief Executive

Steve Bowers, Finance Director

www.umeco.com

Hudson Sandler Tel: +44 (0) 20 7796 4133

Andrew Hayes

Andrew Leach

Notes:

The next scheduled update on the Group's performance will be the announcement of preliminary results for the year to 31 March 2012. These are scheduled to be released on 19 June 2012. Information in this announcement is based on unaudited management accounts. Revenue values are for continuing operations, and exclude amounts relating to Umeco's Supply Chain business trading as Pattonair. Completion of the divestment of Pattonair occurred on 29 July 2011.

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 plc ('Umeco') is an international provider of advanced composite materials primarily to the aerospace & defence, wind energy, recreation and automotive industries. Revenue from continuing operations to 31 March 2011 was £207.4 million and these operations had 863 employees in manufacturing and distribution operations in the UK, Europe and the USA.

Umeco is managed through two continuing business streams:

Structural Materials - development, manufacture and supply of advanced composite materials; and

Process Materials - development, manufacture and supply of vacuum bagging materials.