Pre-close trading update

RNS Number : 4520H

Spice PLC

05 November 2008

 



5 November 2008 

Spice plc

Pre-close trading update

The Board of Spice plc ("Spice" or "the Group"), the provider of Total Utility Support Services, is pleased to announce that the Group's trading for the period ended 31 October 2008 is in line with the Board's expectations.

Trading conditions within our electricity and energy markets continue to be particularly favourable, maintaining the pattern reported in September within our interim management statement. Our Distribution Division has seen strong demand for Electricity services and recorded a record month for tenders in September. Within our Supply Division, we have seen strong demand for energy procurement services which we anticipate will be reflected in the performance in the second half of the year. We have also seen strong organic growth from Billing Services in the like for like period from acquisition. 

During the period, the Group has renewed or extended a number of contracts including:

·    British Airways - provision of telecommunications services;

·    Yorkshire Water - provision of grounds maintenance services;

·    South East Water - provision of meter reading services;

·    South Staffordshire Water - provision of leak detection services;

·    Asprea (Norwich Union) - addition of three new post codes in the Midlands; 

·    BAA - extension of license to provide radio communications to airport tenants; and

·    Transport for London - maintenance contract for London tunnels.

The Group's borrowings are substantially reduced following the conclusion in September of an institutional placing to raise £50 million before expenses. It is also very pleasing to report record half year levels of conversion of operating profits into cash and generation of free cash.

The Board is confident that any softness within some areas of the Group's Facilities business is being outweighed by the favourable conditions within its energy and utility businesses. The Board believes that Spice continues to be well positioned within its markets and that these markets continue to offer significant growth opportunities, whilst at the same time having defensive qualities.

Spice's results for the period ended 31 October 2008 are expected to be announced on Monday 15 December 2008 and the Group will hold a briefing for analysts at 9.30am on that morning at the offices of KBC Peel Hunt. Further details of this briefing will be announced nearer the time.

A telephone conference call for analysts has been scheduled for 8:30am today on 5 November 2008. Dial in details are set out below:

Telephone number:	[phone]
Conference ID:	72185774

Ends

Enquiries:

Spice plc   - Tel: [phone]

Simon Rigby, Chief Executive Officer

Oliver Lightowlers, Group Finance Director

Andy Catchpole, Group Strategy and Development Director

Financial Dynamics  - Tel: [phone]

Billy Clegg

Caroline Stewart  

KBC Peel Hunt (Broker) -  Tel: [phone]

Julian Blunt

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, though the range of activities has since been expanded into the water sector, niche telecommunications services, statutory gas inspections, energy management and 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.

 

END

 

 

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