Proventec Plc, Interim Results for the six months ended 30 September 2006(Innoconcepts.

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Beleggingsadvies 06/12/2006 12:52
Proventec Plc (AIM:PROV), a provider of specialist steam cleaning and
preventative coatings technologies, today announces its Interim Results for the
six months ended 30 September 2006 which have been prepared in accordance with
International Financial Reporting Standards (IFRS).

Highlights
* Revenue up 20% to £1,460,000 (2005: £1,221,000)
* Pre-tax profit of £123,000 (2005: £1,000)
* OspreyDeepClean passed clinical trials that confirm its cleaning system can successfully combat micro-organisms including 'superbugs'
* Magma's fire retardants for wood passed the highest standards of the
European classification systems, EN13501-1
* Disposal of part holding in Hardide plc raising £1 million (post expenses)
* Disposal of non-core assets in Ultra Motor Company for £2 million to be
paid in instalments to March 2009

David Chestnutt, Chief Executive of Proventec Plc, commented: 'The focus of the
Group's efforts during the first half of the year has been on building critical
mass to place the businesses in the strongest position to achieve Proventec's
ambitions. Trading since the end of September has been good and we anticipate
further progress in the second half of the year.'

CHAIRMAN'S STATEMENT

In the busy six months to 30 September 2006, Proventec made good progress to
position itself for entering new markets and developing new products to achieve
further strong earnings growth. The Group has continued to invest in the core
businesses and your Board has identified a number of strategic options for
acquisition targets and partnerships which would enable the Group to access new
markets and territories. Your Board has resolved after careful consideration to
postpone penetrating some of these markets through alternative routes, such as
licensing, as it believes an aggressive acquisitions and partnership policy
offers a more distinct and total concept that will create market leadership and
a clear competitive edge with superior returns which will enhance shareholder
value. The inevitable consequence of this decision has been a delay in sales in
some areas, but I expect to see a rapid upturn in sales once we have secured
footholds in target markets through our acquisition strategy.

The Group's earnings have increased by 20% on the same period in 2005, and the
cash position remains strong.

The Group continues to benefit from its strategy of realising non-core
investments to boost development of the core businesses.

I believe that your Board's strategy of building critical mass into the Group
through organic growth and acquisitions of complementary businesses,
partnerships and licences in target markets puts the Group on a sound platform
for future success.

Peter Teerlink
Chairman
24 November 2006


CHIEF EXECUTIVE'S REPORT

The six months to 30 September 2006 has been an exciting period in your
Company's development. Your Board has identified key growth markets and has
undertaken ground work to enable successful entry to those markets in a cost
effective way whereby we have identified potential growth both in new
geographical markets and with new industrial applications and processes. Your
Board believes that a careful strategy has to be implemented whereby we create
new markets in an innovative and distinctive way, offering a total solution to
our customers. One of the key risks of bringing innovation to a market via a
small company is that having created the awareness and interest, one opens the
market for the competition. Your Board believes that by building sufficient
critical mass, it is possible to create market leadership and we are therefore
focused on acquiring businesses to create partnerships to extend the Group's
distribution network to offer a total solution throughout key target markets
such as the United Arab Emirates, Europe and North America where there is
growing demand for hygienic solutions in the hospitality and healthcare sectors
and for fire and flame retardants in the booming construction industry. We have
not sought to put in place sales and distribution networks in new territories or
market sectors where we are seeking strategic acquisitions or partnerships,
which will provide direct entry to the market and, consequently, sales in those
areas have been weaker than they would otherwise have been.

The Group's steam cleaning business, OspreyDeepClean, has achieved major
successes in the healthcare sector during the period. In September, the results
of clinical trials of its equipment and technology with University College
London Hospital were published at the Infection Control Nurses Association's
conference. We believe these results pave the way for OspreyDeepClean's steam
cleaning products to be adopted across NHS trusts. 40 OspreyDeepClean machines
have already been purchased by Carillion Healthcare to maintain the highest
standards of cleanliness and hygiene in Swindon's Great Western Hospital.
OspreyDeepClean has also secured some of the world's largest food manufacturers
both in Europe and in the USA for the newly introduced industrial steam cleaning
machine.

During the first half of the year, Proventec has established the foundations of
its distribution network in North America. In the USA, we have opened a sales
office in Philadelphia and have appointed an industrial sales manager to lead
the Group's five sales agents and recruit agents and distributors across that
country. In Canada, we have a joint venture company through which direct sales
and a distribution network is being built.

Magma, the Group's flame and fire retardants business, has achieved some
important wins during the first half. Its fire retardants for wood meet the
highest standards of the European classification systems EN13501-1, which allows
Magma to market the products across Europe for use on internal walls, such as
corridors and exits, as well as on roofs and external cladding. It is the first
company to obtain approval for the flame retardant treatment of plywood. Its
products are also suitable for protecting thatched roofs against fire and owners
of properties with thatched roofs can benefit from reduced insurance premia by
having Magma Firestop(R) professionally applied to their properties.

During the period, the Group realised profits of £585,000 on the sale of 8.5
million shares in Hardide plc. The Group retains 21% of the equity in this
AIM-listed, non-core investment. In September, the Group disposed of its 36.66%
equity stake in the non-core investment Ultra Motor Company Limited ('Ultra
Motor') for £2 million, which is payable in stages over the period to March
2009. The cost of the Ultra Motor stake in the Group's accounts is £463,000.

The focus of the Group's efforts during the first half of the year has been on
building critical mass to place the businesses in the strongest position to
achieve Proventec's ambitions. Trading since the end of September has been good
and we anticipate further progress in the second half of the year.

I should like to thank my colleagues for their continued hard work and
dedication to the Group.

David Chestnutt
Chief Executive
24 November 2006




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