Acal PLC
30 January 2008
FOR RELEASE 7:00AM 30 JANUARY 2008
ACAL plc
(Leading pan-European, value-added technology based distributor
providing specialist design-in, sales and marketing services)
SECOND INTERIM MANAGEMENT STATEMENT
PERIOD COMMENCING 1 APRIL 2007
Acal plc is today issuing its second Interim Management Statement which covers
the period commencing 1 April 2007 to date and includes trading for the nine
months ended 31 December 2007.
On 27 September 2007 Acal plc announced the disposal of the Group's IT Solutions
business for a cash consideration of £41 million. The disposal was conditional
upon approval of the shareholders of Acal plc and merger control clearance. A
circular (the "Circular") was sent to shareholders on 28 September 2007 giving
details of the disposal and seeking the approval of shareholders at an
Extraordinary General Meeting. This approval was received on 19 October 2007.
Merger control clearance was received in December and the disposal completed on
17 December 2007.
The Group's interim results for the six months ended 30 September 2007 (the
"Interim Results") were published on 29 November 2007.
This Interim Management Statement should be read in conjunction with the
Circular and the Interim Results.
We stated in the Interim Results that we expected the weak market conditions
being experienced both in the Electronics and Parts Services divisions to
continue until at least the financial year-end. This has indeed proved to be the
case during the quarter ended 31 December 2007 which saw a lower level of sales
from ongoing activities compared to the corresponding quarter of the previous
year.
In Electronics we are continuing to benefit from the growing success of our
newer semiconductor product lines which is helping to mitigate the effect of
weak market conditions. The exception is those parts of Continental Europe where
the new product lines were introduced more recently and where we have not yet
been through the design-in period before revenue is generated. Our "funnel" of
new designs continues to be strong and we remain confident of our ability to
succeed in the longer term.
In Parts Services trading conditions remain weak but we are winning new business
and we continue to work on other opportunities which as previously explained can
take some time to convert into contracts.
Whilst we expect overall sales from ongoing activities for the year ending 31
March 2008 to be lower than in the prior year, with effective management of
margins and operating costs, we are on track to achieve our pre-tax profit
expectations from ongoing activities for the year.
The Group's financial position is strong and there have been no other material
events or transactions affecting the Group.
For further information:-
Tony Laughton - Chief Executive 01483 544500
Jim Virdee - Finance Director 01483 544500
Brian Coleman-Smith/James Verstringhe/Nicola Krafft
Cubitt Consulting 020 7367 5100
Notes to the Interim Management Statement
(a) This Interim Management Statement has been prepared solely to
provide additional information to the shareholders of Acal plc,
as a body, in order to meet the requirements of the UK Listing
Authority's Disclosure and Transparency Rules.
(b) The Interim Management Statement may contain forward-looking
statements which:
• have been made by the directors in good faith based on the
information available to them up to the time of their approval
of this statement; and
• should be treated with caution due to inherent uncertainties, which
are beyond Acal's ability to control or estimate precisely and
include both economic and business risk factors, underlying such
forward looking information.
Notes to Editors:
1 The Acal Group is a leading European technology based distributor providing
specialist design-in, sales, marketing and other services through two
divisions: Electronics and Parts Services. Its value-added philosophy and
geographic coverage enables Acal to provide specialist knowledge and
support to customers on a pan-European basis.
2 Design-in is the process by which Acal's sales engineers work with
customers and suppliers to procure components which meet the specific
technical and performance needs of the customers.
3 Acal has operating companies in the UK, Netherlands, Belgium, Germany,
France, Italy, Spain and Scandinavia. Westech Electronics, an associated
company, is based in Singapore and covers the Far East region.
This information is provided by RNS
The company news service from the London Stock Exchange
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