Interim Management Statement

RNS Number : 4412Y

Spice PLC

03 September 2009

 



3 September 2009 

Spice plc

Interim Management Statement

The Board of Spice plc ("Spice" or "the Group"), the provider of Total Utility Support Services, releases it's Interim Management Statement for the period from 1 May 2009 to date.

Trading for the half year period to 31 October 2009 is expected to be in line with the Board's expectations with a greater weighting of profits in the second half of the year as anticipated. EBITA cash conversion for the year is also anticipated to be in line with expectations.

Trading conditions within our Supply Division continue to be favourable as the business begins to benefit from new legislation such as the Climate Change Agreement and the Carbon Reduction Commitment. Contracts are now in place with over one hundred plastics companies in relation to Climate Change and energy efficiency projects have also been signed with Huddersfield Royal Infirmary and Guys and St Thomas's Hospital. The recessionary economic environment has to date been mainly of benefit to our Supply businesses. 

In our Distribution Division, the economic climate is creating new outsourcing opportunities within our regulated clients. The early regulatory guidance for investment levels in electricity (Distribution Price Review 5) and water (Asset Management Programme 5) remain positive for the Group and, ahead of the final determination, we continue to see good levels of bid opportunities which we are hopeful of converting into contracts in due course. Bids converted to date include Scottish Power overhead lines and the provision of engineering services to CE Electric within the Yorkshire area. 

At the same time, certain of our non-regulated clients continue to find the current economic climate challenging and we continue to seek to innovate our service delivery accordingly. The integration of Com Group into our Distribution business is progressing to plan.

Simon Rigby, Chief Executive Officer commented:

"Spice occupies good positions within its regulated markets and these markets continue to offer opportunities for growth. Wider economic pressure is causing our clients to look at radical outsourcing opportunities which Spice is well placed to benefit from. The wider economic environment continues to be challenging but the Board remains confident of Spice's future prospects."

A telephone conference call for analysts has been scheduled for 08:30am today on 3 September 2009. Dial in details may be obtained from Financial Dynamics.

Ends

Enquiries:

Spice plc  Tel: [phone]

Simon Rigby, Chief Executive Officer

Oliver Lightowlers, Group Finance Director

Financial Dynamics  Tel: [phone]

Billy Clegg

Caroline Stewart  

KBC Peel Hunt (Broker)  Tel: [phone]

Julian Blunt (Corporate finance)

Matthew Tyler (Corporate broking)  

NOTES TO EDITORS

Spice plc

Spice is a total utility infrastructure support services business. The Group's operations were founded in 1996 and have their origins in the electricity industry, although the range of activities has since been expanded into other niche areas. The Group is organised into two divisions to match its utility customer base; a Supply Division; and a Distribution Division.  Spice's businesses have a common theme of delivering and co-ordinating infrastructure services to customers, and the technological element within the product mix has been built up significantly over the course of the last three years.

 

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