RNS Number : 3768H
11 July 2012
IMAGELINX PLC (the "Group")
The Group's revenue in May and June 2012 has seen a sudden and marked deterioration and was below the levels seen in the first four months of the year, which were ahead of budget. This sudden decline in spending across almost all of our clients appears directly or indirectly related to the current economic uncertainty in Europe.
Earlier cost realignment work has gone a long way to mitigating the impact of these low trading levels and the Group has been able to reduce its costs further. While we expect to see a recovery in turnover this is unlikely to be before the end of the third quarter of 2012. Despite current trading, the Group's cash position is expected to remain in line with this year's opening position.
With continued productivity improvements, lower costs and the Group's operational gearing, a modest recovery in turnover should return the Group to profitability.
Richard Clothier, Chairman
Alistair Rae, Chief Executive
Tel: +44 7771 644 962
Tel: +44 7736 883934
Edward Frisby / Rose Herbert (corporate finance)
Victoria Bates (corporate broking)
Tel: +44 20 7220 0500
Tel: +44 20 7839 9260
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