Advice to Shareholders

23 Aug 2007 14:52

Eleco PLC23 August 2007 ELECO PLC Advice to shareholders Dear Shareholder, We have recently been informed by some Eleco shareholders that they have beentargeted by individuals acting on behalf of a purported Canadian companyclaiming to act for a potential acquirer who is offering to pay pricessignificantly in excess of the prevailing stock market price, with a view toacquiring 51 per cent. of Eleco's shares. There are good grounds to suspect thatthis claim and other statements that have been made regarding levels of interestreceived from other shareholders may not be genuine and appear to be aimed atpersuading shareholders to deliver their share certificates and or bank detailsto those making the calls. We advise any of our shareholders receiving calls of this nature to exerciseextreme caution. According to those shareholders who have brought the telephonecontacts received by them to the attention of the Company, the callers are verypersistent and extremely persuasive in trying to convince shareholders that abidder is stake building and that any intended offer made subsequently would beunrealistically in excess of the Company's current share price and would bejustified by the bidder's intention to reach a majority shareholding. If you receive any unsolicited investment advice regarding the possible sale ofyour Eleco shares as a consequence of such calls, we suggest you: - obtain the correct name of the person and organisation; - check at www.fsa.gov.uk/register that they are properly authorised by the FSA before getting involved further or at all; - check the FSA website for a list of unauthorised overseas firms who are targeting, or have targeted, UK investors at http://www.fsa.gov.uk/pages/ doing/regulated/law/alerts/overseas.shtml; - inform us of such circumstances by emailing our Company Secretary at ivor.barton @eleco.com Any approach from such organisations should be reported to the FSA to enablethem to update their records and consider any other appropriate action. Moreinformation on this and similar activities can be found on the FSA website atwww.fsa.gov.uk/consumer We wish to stress that this incident has had no impact whatsoever on our tradingand there is no reason why it should do so. Enclosed is an appendix containingthe Pre-Close Trading Update recently issued by the Company on 3 August 2007. Yours sincerely, John KetteleyChairman Contact details:John Ketteley, ChairmanDavid Dannhauser, Finance DirectorTel: +44 (0)1920 443830 Collins Stewart Europe Limited,Te: +44 (0)208 523 8323 Adventis Financial PR,Tel: +44 (0)207 034 4758/59 A copy of this announcement has been placed on the Company's website and can befound at http://www.eleco.com/eleco/news_spotlight/rule_26.asp Copies of theannouncement will be dispatched to shareholders. APPENDIX 1 Pre-Closed Period Trading update & Appointment of Nominated Adviser and Broker The Board of Eleco plc today announces its trading update for the year ended 30June 2007. The Group's preliminary results for the year ended 30 June 2007 willbe announced on Tuesday, 2 October 2007. Trading Overall, business and cash generation remained strong in the second half of theyear in line with management's expectation and Asta Development, acquired inDecember 2006, made an encouraging contribution to profit. As a consequence,results for the year ended 30 June 2007 will be in line with marketexpectations. Orders at 1 July 2007 at our Building Systems businesses were significantlyhigher than last year due principally to a substantial increase in demand forBell & Webster Concrete's pre-cast products; the outlook for our Softwarebusinesses has also improved. We therefore enter the current year withconfidence. Nominated adviser and Broker In addition, the Board is pleased to have agreed to the appointment of CollinsStewart (Europe) Limited as Nominated Adviser and Broker to the Group. John Ketteley, Executive Chairman commented: "Eleco has achieved the growth anticipated by the market and results for theyear ended 30 June 2007 will be in line with market expectations. We are very well positioned to contribute to the Government's drive toaccelerate the building of affordable sustainable housing; we are in a strongfinancial position; and we look forward with confidence to the year ahead." Enquiries: Eleco plcIvor Barton - Company Secretary+44 (0) 1920 443830 Collins Stuart Europe Limited9th Floor, 88 Wood Street,London EC2V 7QR Adventis Financial PRTarquin Edwards/Chris Steele+44 (0) 20 7034 3758/4759+44 (0) 7879 458 364+44 (0) 7979 604 687 This information is provided by RNS The company news service from the London Stock Exchange