AGM Statement

25 May 2006 07:04

Torex Retail PLC25 May 2006 25 May 2006 Torex Retail Plc AGM STATEMENT Torex Retail ("Torex Retail" or "the Group"), an international market leader inthe provision of innovative retail IT systems, will today hold its AnnualGeneral Meeting. Chris Moore, Chairman and Chief Executive, will make thefollowing statement on current trading: The Group has made a good start to the year enjoying sales success in all ourkey business areas and geographic markets. In addition to the £30 million of newcontracts that we secured in the first quarter, the Group has continued to winsignificant contracts with new and existing customers including McDonald's,Boots, Liz Claiborne, BT, Tesco, Walmart-Asda and the Dutch Post Office. Particularly pleasing was a contract with The Picture People, a US portraitstudio chain with over 300 outlets nationwide. This was our first new businesswin for our Lucas EPoS product from a US headquartered retailer and was achievedwithin a year of the launch of this product into the US market. The system willstart roll out in July and will be a valuable reference site for further salesprogress in the US. Integration of 2005 acquisitions has continued to plan and we have now agreedformal employment plans with our employees in Germany. As a result, plans arenow being implemented to reduce the workforce by approximately 150 employees,with restructuring costs and subsequent annualised savings in line with theoriginal estimates previously communicated to the Stock Market. In April we completed the US$55 million acquisition of Savista, whichrepresented a major strategic step in the development of our Group and itsfurther penetration of the US market. Torex Retail is now the global EPoSsupplier to McDonalds and a market leader in the Quick Service Restaurantsector, the fastest growing part of the hospitality market. We see tremendousopportunities for this business going forward both from increased sales toMcDonalds and new business wins from other international QSR chains and alsothrough indirect channel sales. Trading for the first quarter was in line with our budget and the continuedlevel of order intake gives the Board confidence that the first six months of2006 will meet expectations. As in previous years, we expect trading activity toincrease in the second six months of 2006. Based on our current order book andsales pipeline, we are confident of achieving the full year forecastexpectations currently in the Stock Market. Chris Moore, Chairman and Chief Executive of Torex Retail, commented: "I am delighted with the progress we have made this year to date. The continuingprogramme of integrating our acquisitions is delivering bottom line savings andoperating efficiencies at the same time as we continue to target top linegrowth. Last year saw us become the leading provider of retail IT systems across Europeand we believe 2006 will see us make significant steps towards becoming aleading supplier to the North American market as well as further strengtheningour market position and brand on the global stage. The continuing delivery of the company strategy is both exciting and representsfurther consolidation of delivering shareholder value". - ends - For further information please contact: Torex RetailChris Moore, Chairman and Chief Executive +44 (0)870 300 6061 Citigate Dewe RogersonGinny Pulbrook, Executive Director +44 (0)20 7282 2945Seb Hoyle, Associate Director +44 (0)20 7282 2822 This information is provided by RNS The company news service from the London Stock Exchange