JARLWAY HOLDINGS PLC
As a result of a review of its average debtor days, and in response to investor
comments on the aging of receivables, Jarlway Holdings plc (the 'Company' or
'Jarlway') is seeking to tighten its terms of trade to reduce debtor days.
Although this will result in lower sales volumes in the short term due to the
resultant greater reliance on mortgage finance by customers, it should
ultimately improve the Company's working capital management.
Jarlway has seen a number of positive developments in recent weeks. For
instance, the Company has recently secured an initial development contract with
China Rail Zhuzhou Bridge Ltd ('Zhuzhou'), one of the construction engineering
groups involved in the expansion of China's high speed rail networks. Zhuzhou,
along with a number of other firms, is responsible for developing 3,000 kms of
high speed railway track, as approved earlier this year by the PRC government.
The contract, which has the potential to expand in scope subject to Zhuzhou's
satisfaction with the initial roll-out of Jarlway machines, puts Jarlway in a
strong position to win further business in this high-growth market segment in
2006 and beyond.
Mr Wu Zhi Jia, Chairman of Jarlway, commented: 'While our sales to domestic
customers this year and in the final quarter will be below market expectations
due to changes in credit terms with the consequent effect on profits, we are at
the same time seeing some encouraging signs, such as developments in the
construction of China's high speed rail network. A review of debtor provisioning
levels will be made at the year end. Moving forward, we remain confident in the
Group's long-term growth potential and are well positioned to take advantage of
the growing demand in the construction industry, both in China and
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For further information, please contact:
Jarlway Holdings plc Shared Value Limited
KM Wong Rob Newman/Noah Schwartz
Tel: +852 9094 5465 Investor & Media Relations
Tel. +44 (0) 20 7321 5010
Nabarro Wells & Co. Limited
Tel: +44 (0) 20 7710 7400
Jarlway Machinery Inc. ('Jarlway') is one of the largest concrete pump
manufacturers in the People's Republic of China. Jarlway is engaged in the
development and sale of large-scale construction machinery including trailer
concrete pumps, truck mounted concrete line pumps, concrete boom pumps and
concrete mixing stations. Jarlway utilizes patented and proprietary technology
supported by a network of 27 regional sales and service stations throughout most
of China. Jarlway's products are assembled under processes that have been
certificated to standards similar to ISO9001.
Jarlway Holdings plc is publicly traded on the AIM Market of the London Stock
Exchange. The Company's ticker symbol is 'JWY'. More information about Jarlway
Holdings plc and its products can be found on line at www.jarlway.com.