Spice PLC
16 October 2006
16th October 2006
Spice plc
Pre-close trading update
Ahead of the announcement of interim results, and prior to entering the closed
period, the Board of Spice plc ("Spice" or "the Group") is pleased to advise
that the trading of the Group continues to be in line with the Directors'
expectations.
Market conditions remain favourable for both our Commercial Services and Utility
Services divisions with strong levels of organic growth.
During the first half of the year, Commercial Services has grown strongly.
Within Facilities, we are now undertaking commercial insurance claims
reinstatement work for Norwich Union, as well as domestic. The integration of
Breval into the division is ongoing and proceeding to plan. Within Energy,
Inenco (acquired in June 2006) is performing ahead of expectations. Contract
wins since acquisition include BHS and Spirit Group where we will be providing
energy procurement and invoice validation services for the next three years.
Our Utility Services division has also grown strongly. Telecoms has maintained
the momentum generated in the second half of the last financial year. Contract
wins include a five year framework agreement with Huawei in connection with BT's
21st century network and a three year contract with British Airways to provide
and support data devices for its task allocation project. Economic and
environmental pressures continue to drive the performance of our Water
operations where we have seen high demand for our leakage detection and repair
services. Water meter installation volumes remain strong and we have commenced
two new pilot installation projects which may lead to long term framework
contracts. Electricity Services continues to see strong orders levels under
framework agreements for customers including Scottish Power, Edf Energy Networks
and National Grid. We have also secured significant project work including new
connections at Red Tile windfarm in Cambridgeshire.
We remain excited by the cross selling opportunities that exist within the
business. These opportunities have been extended through the acquisition of
Inenco and momentum is gathering in this area. The Board remains confident of
continued growth over the remainder of this financial year and continues to look
to the future with confidence.
Spice's interim results for the period ended 29 October 2006 will be announced
on Thursday 14 December 2006 and Spice will hold a briefing for analysts at
9.30am on that morning. Further details of this briefing will be announced
nearer the time.
Enquiries:
Spice plc - Tel: 0113 201 2120
Simon Rigby, Chief Executive Officer
Oliver Lightowlers, Group Finance Director
Carl Chambers, Corporate Development Director
Financial Dynamics - Tel: 020 7831 3113
Billy Clegg
NOTES TO EDITORS
Spice plc
Spice is a support services business operating in the Commercial Services and
Utility Services sectors. The Group's operations were founded in 1996 and have
their origins in the electricity industry, though the range of activities has
since been expanded into the water sector, niche telecommunications services,
the public sector and commercial facilities management. 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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