AGM Statement

3 Jun 2009 07:00



3 June 2009

AGM Statement 2009

At the Group's AGM today, Tom Haughey, Chief Executive Officer, will make the following statement:

"Trading in the first five months of 2009 has continued at the strong levels achieved in 2008.  Consequently, current indications suggest that the underlying profit before tax for the current year will be ahead of management's expectations. Whilst this position is most welcome in the current economic environment it should be tempered by the fact that prospects for the UK continue to fade to levels below those forecast by the industry in recent months.

We continue to have a relatively strong order book, currently valued at £267 million, which will be increasingly sustained by export sales supplied from our UK facilities, albeit at lower margins which are also subject to exchange rate fluctuations.  We are now experiencing a significant decline in demand in the Company's key UK construction sectors and as a result we will implement further cost reductions and reconfigure capacity.

We have good visibility for the current year and remain confident of a strong financial performance for the rest of 2009, but are cautious in our outlook for 2010. Over the longer term and as the UK market recovers, as it will undoubtedly do, the Group will benefit from its low cost base, a robust balance sheet and other inherent advantages, combined with strong prospects in 2011 for its Joint Venture in India."

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