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26 Oct 2010 07:00
Press Release | 26 October 2010 |
Brulines Group plc
("Brulines" or "the Group")
Trading Update
Brulines Group plc (AIM:BRU), the leading provider of real time monitoring systems and data management services for the leisure and forecourt services sectors, provides the following trading update in advance of its interim results for the six months ended 1 October 2010 which will be announced on 7 December 2010.
The Group's underlying trading for the period is expected to be marginally below management expectations but in line with same period last year. Faced with the unprecedented economic conditions and well documented commercial pressures affecting some core leisure customers, we are implementing a two pronged strategy to continue to root out costs and drive sales, particularly of our newer products. This has gone some way to mitigate the position in the short term but in the longer term as conditions moderate we anticipate a resumption of growth.
Trading in the Group's core beer monitoring business remains challenging despite good progress both in the UK and overseas with the roll-out of i-draught TM, the Group's beer quality and EPOS variance monitoring product. This product now accounts for seven percent of our total installation base.
The Group continues to reduce losses associated with Vianet and the Board is encouraged by its success in developing existing contracts and in progressing significant new sales opportunities with major international brand owners.
As part of its diversification strategy, the Group has extended its footprint in the forecourt services market in the period with the acquisition of Energy Level Systems Ltd, Retail & Forecourt Solutions Ltd, and LBI installations Ltd. These acquisitions, which are already earnings enhancing, together with the Group's Edensure wet stock management business, provide the key components for developing a market leading integrated solution for forecourt operators. This underlines Brulines' intention to replicate in the forecourt market the Group's success in the leisure sector.
The Board fully expects the difficult economic environment and current challenging trading conditions to continue for some time yet; however the future growth prospects across our Leisure and Fuel Solutions divisions are encouraging and management continues to view the longer term future with confidence. The Board anticipates maintaining a progressive interim dividend from the Group's continuing cash generation from its core business in the first half of the year.
An analyst briefing to be given by James Dickson, Chief Executive, and Mark Foster, Finance Director, will be held at 9.30 am on Tuesday, 7 December 2010 at Abchurch Communications, 16th Floor, 125 Old Broad Street, London, EC2N 1AR.
- Ends -
Enquiries:
Brulines Group plc | |
James Dickson, Chief Executive Mark Foster, Finance Director | Tel: +44 (0) 1642 358 800
|
james.dickson@brulines.com | www.brulines.com |
Cenkos Securities plc | |
Stephen Keys / Camilla Hume | Tel: +44 (0) 20 7397 8900 |
www.cenkos.com |
Media enquiries:
Abchurch Communications | |
Sarah Hollins / Joanne Shears / Mark Dixon mark.dixon@abchurch-group.com | Tel: +44 (0) 207 398 7729 www.abchurch-group.com |
About Brulines
Brulines Group is focused on the provision of real time monitoring systems and data management services for the UK's leisure and petrol forecourt sectors. Since its admission to AIM in 2006, the Group has grown both organically and through a series of strategic acquisitions to give the Group access to key vertical markets. The Group operates two divisions which comprise five key products:
LEISURE DIVISION
Dispense Monitoring (DMS) | The Group's core product, DMS, is widely used by owners and operators within the UK licensed on-trade, especially the tenanted / leased pub sector. Flow meters connected to draught beer dispense lines send data via an on-site communication panel to a secure central database. Liquid volumes by fount, draught wine or post mix are tracked as they are served, thereby helping customers to maximise sales, service and quality as well as managing their costs. DMS is installed in over 22,000 pubs and manages data for more than one in three UK pubs |
i-draught (formerly BQM) | A more recent and rapidly growing product offer is i-draughtTM, an extension of the Group's DMS, which scrutinises the quality of products running through beer lines in a bar; measuring volume, temperature, flow rate and liquid type (e.g. beer, cleaning fluid or water) at the point of dispense. i-draught is the first system to provide effective measurement of true yields on draught products. Actual dispense volumes are compared with till transactions to identify shrinkage from products given away, pilferage and wastage. i-draught measures the precise temperature of every pint as it is dispensed, the time taken to dispense each drink, and automatically identifies the liquid allowing customers to know exactly when lines are cleaned. Wherever they are, customers can stay in control through accessing their information on a secure web site. |
Gaming Machine Data Services | The acquisition of Coin Metrics in May 2007 was a strong strategic fit with Brulines' existing Machine Insite business which already provides gaming machine data management and consultancy services to operators within the pub, club and leisure markets. Customers benefit from state-of-the-art real-time data capture and reporting systems that deliver improved machine profitability and operational security. |
Vending Telemetry | The Group's subsidiary Vianet is a pan-European provider of telemetry solutions and data applications to the vending industry. Vianet provides services for all vending management needs; from operations, sales, field services, national accounts to senior management. |
FUEL SOLUTIONS DIVISION
UK Petrol Forecourt Data Services | The Group's wholly-owned subsidiary, Edensure, supplies key management information to independent, multi branded owner, and supermarket petrol forecourt operators in the UK which helps reduce loss of fuel and improve profitability. Edensure provides petrol retailers with an unrivalled level of accuracy in the monitoring and management of their wet stock, using the most sophisticated analytical techniques available worldwide.
This division has been further strengthened by the acquisitions of Energy Level Systems in March 2010, the UK distributor of OPW Fuel Management Systems tank gauging solutions, and Retail & Forecourt Solutions in June 2010, the market leader in fuel pump calibration, adjustment and legal verification, and also a leading provider of forecourt audit and compliance services. The acquisition of LBI Installations Ltd, also in June 2010, brought additional expertise in the area of web-based contract management solutions for forecourt operations. |
Headquartered in Stockton-on-Tees, Brulines employs more than 240 people.
For further information, please visit www.brulines.com
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