Trading in the third quarter was in line with the Board’s expectations.
The positive trend in order intake reported at the half year has been maintained through the quarter and we are pleased that there was further growth, at constant currency, in the order book.
Total sales, which benefited from favourable exchange rates, were solid with service revenues continuing to grow organically.
We continued to progress our strategy to build a more balanced international business through investments in higher growth potential markets. In the period, we strengthened our position in the Energy and Infrastructure sector with the acquisitions of Automatismes Energie Electroniques Systemes SAS (“AEES”), based in Lyon, France and Emergency Power Systems plc (“EPS”) in the UK. AEES is a leading secure power supplier to the French and international energy markets. EPS has a market leading position in the rail and underground networks in the UK.
Cash generation was strong, partially offsetting the increase in debt commensurate with the strategic investments made in the period. The previously announced restructuring actions remain on track to deliver in line with expectations.
Whilst we remain cautious about the economic environment, we enter the final quarter with good order book coverage and a positive trend in order intake, which gives us confidence in the outturn for this financial year.
Commenting, Chief Executive Tim Cobbold said: “Trading in the first nine months has been in line with the Board’s expectations, demonstrating the resilience of the business in a challenging market environment. Secure power remains an essential requirement for business continuity globally, underpinning our confidence in the long term growth characteristics of our markets."
Cautionary statement
All statements other than statements of historical fact included in this Interim Management Statement are forward-looking statements. Such forward-looking statements, which reflect management's assumptions made on the basis of information available to it at this time, involve known and unknown risks, uncertainties and other important factors which could cause the actual results, performance or achievements of Chloride Group PLC or the market and economies in which Chloride Group PLC operates to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Nothing in this Interim Management Statement shall be regarded as a profit forecast. Chloride Group PLC and its directors accept no liability to third parties in respect of this Interim Management Statement, save as would arise under English law. Accordingly, any liability to a person who has demonstrated reliance on any untrue or misleading statement or omission shall be determined in accordance with section 90A of the Financial Services and Markets Act 2000.
Enquiries:
Chloride Group PLC
T: +44 (0) 20 7881 1440
Tim Cobbold (Chief Executive)
Neil Warner (Finance Director)
Hudson Sandler
T: +44 (0) 20 7796 4133
Andrew Hayes/Kate Hough