Pre-close trading update

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. This information is provided by RNS The company news service from the London Stock Exchange
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