AGM Statement

RNS Number : 0784E

Lupus Capital PLC

25 May 2012

 



Lupus Capital plc

("Lupus" or "the Group" or "the Company")

Annual General Meeting ("AGM") Statement

Lupus Capital plc ("Lupus" or the "Group"), a leading international supplier of building products to the door and window industry, issues the following statement ahead of its AGM to be held today at the offices of College Hill, The Registry, Royal Mint Court, London EC3N 4QN.

The first four months of the year typically see lower levels of activity in our Northern Hemisphere end-markets and trading for the first four months of 2012 has been in line with management's expectations. 

Sales from continuing operations for the period ended 30 April 2012 were up approximately three per cent. on the corresponding period in 2011 and broadly flat year on year on a constant currency, like for like basis.  Differences in regional operational gearing and the mix of products sold meant that the Group's operating profit in the first four months was slightly behind the equivalent period in 2011.

Raw material prices of steel and oil derivative products increased during the first quarter, however pricing pressures have eased somewhat in recent weeks.

Our new management teams for grouphomesafe and Schlegel International are now in place and in the process of performing their initial assessments of their businesses and markets.

Amesbury

In North America, Amesbury has seen an encouraging start to 2012.  The opening quarter saw improved market demand assisted by mild weather conditions across much of the United States.  This trend has continued through April and into May and has been underpinned by increased levels of quoting activity across the businesses.

The integration of Overland Products has started well, with a programme to build customer awareness of our enhanced capabilities underway and a number of stampings previously outsourced by Amesbury to third parties brought in-house.  Our new Atlanta facility commenced operations two months earlier than anticipated and is in the process of ramping up production.

During the period we acquired the business and assets of Unique Balance International; a Canadian based balance manufacturer that specialises in heavy duty and commercial balances.  This small acquisition rounds out our North American balance offering as well as giving us opportunities in certain export markets.

grouphomesafe

In the UK, as expected, our grouphomesafe business has seen further overall market contraction.  Small increases in demand have been observed for small ticket component products, however there is continued decline in demand for larger ticket fabricator products and in the social housing sector, with our Composite Door business being particularly affected.  We expect these demand characteristics to continue for the remainder of 2012.

Schlegel International

Our International Building Products business has seen similar market conditions to 2011 with Germany, Brazil and Eastern European markets showing some growth.  Australian and Scandinavian markets have contracted in the year to date and Southern European markets remain very depressed.  This market profile is also expected to continue across the balance of the year.

Outlook

Overall, the Group's trading for the first four months of 2012 has been in line with management's expectations.  Across the year as a whole we expect our end markets outside of North America to remain relatively subdued; offset by some market expansion in the United States. 

The disposal of Gall Thomson in March 2012 gives the Group an enhanced financial platform from which to make further progress as challenging markets recover.

Lupus will issue its half year results for the six months ending 30 June 2012 on Tuesday 6 September 2012.

25 May 2012

Enquiries:

Lupus Capital plc	[phone] (Today)
Louis Eperjesi	[phone] (Thereafter)
James Brotherton
Cannaccord Genuity Limited	[phone]
Mark Dickenson
Bruce Garrow
College Hill	[phone]
Mike Davies
Helen Tarbet

 

END

 

 

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