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Sperati(C.A). (TEA)

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Thursday 19 September, 2013

Sperati(C.A).

Interim Management Statement

RNS Number : 3685O
Sperati(C.A.)(Special Agency)
19 September 2013
 

For Immediate Release                                                                                                        19 September 2013

 

 

C. A. Sperati (The Special Agency) PLC

("CAS" or the "Company")

 

Interim Management Statement

The Company is issuing its Interim Management Statement in respect of the period from 1 May 2013 to date.

The Company continues to trade broadly in line with the last financial year with a small reduction in turnover from £112,475 for the unaudited six month period to 30 April 2012 to £94,447 for the unaudited six month period to 30 April 2013, while maintaining a steady gross margin over the comparable periods. The aggressive sales strategy referred to in the Company's last Interim Management Statement has failed to generate any increase in sales during this period. The customer base is well established and there is currently little growth in the Company's sector, with minimal new clients coming in to the market. The selling prices remain relatively static with increased pressure to keep prices low due to increasing global competition. These trends have continued into the second half of the financial year with no significant changes in operating trends either to date or anticipated, by the board of CAS ("Board"), in the near future.

 

Cost reduction initiatives and a reduction in one off exceptional items of expenditure have led to a lowering of the Company's cost base, which the Directors believe should slow the decline in Shareholder value. However, the on-going commitment of being a Main Market company brings with it overhead costs that continue to have a material impact on the results of the Company. The global economic slump continues to have a knock on effect on the demand for the Company's products and as a result the Directors are intent on taking the business in a different direction and are in early stage negotiations with interested parties who may wish to make use of the Company's position as a listed company.

 

Following the appointment of Jason Drummond to the Board, as Non-Executive Chairman on 12 August 2013, the Company is taking significant action to reduce operating costs further and to introduce new on-line and retail sales initiates to sell existing stock.

 

As announced on 15 April 2013, the Company entered into a conditional contract (as amended by a supplemental agreement announced on 7 August 2013) with Knightspur Homes Limited (a wholly owned subsidiary of Cavendish and Gloucester Properties Limited), to sell its freehold land and property based in Greenwich for a total cash consideration of £415,000. The Company has now been advised that after taking into account indexation allowance available and current trading losses to date no tax arises as a result of the disposal. The consideration from the disposal will enable the Company to settle certain outstanding creditors and purchase stock for any incoming contracts. The Directors believe that the purchase of additional stock should help the Company to increase the sales of the Company in the longer term. The disposal is conditional on Shareholder approval.

 

On the 10 June 2013 Kevin Jackson stepped down as Chairman of CAS to pursue other business interests. The Board would like to thank Kevin Jackson for his much-valued contribution to the Company.

 

Contacts:

 

Jason Drummond, Chairman, CAS -  020 8858 7069

Roland Cornish / Emily Staples, Beaumont Cornish Limited - 0207 628 3396

 

 


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