TIDMEXO
RNS Number : 4056H
Exova Group PLC
19 May 2014
Stock Exchange Release
19th May 2014, 7.00am London, UK
Interim Management Statement
Exova Group plc (Exova or the Group), a leading international
provider of technically demanding testing services, today releases
its Interim Management Statement for the period from 1(st) January
2014 to date. The financial results correspond to the period from
1(st) January 2014 to 30(th) April 2014 and comparative comments
reflect comparisons with the corresponding period in 2013.
In April 2014 Exova's shares were admitted to the premium
listing segment of the Official List and to trading on the London
Stock Exchange. As expected, the net primary proceeds of the IPO
were applied to reduce debt, with the remaining debt financed
through a new term loan, resulting in a significantly reduced Group
interest charge going forward.
Highlights
-- Results for the period in line with the Board's expectations at the time of the IPO
-- Revenue growth on a constant currency basis of 6.3%, of which
1.2% organic and the remainder from acquisitions
-- Acquisition of Catalyst Environmental in January 2014 and a
calibration business from Raufoss Offshore in May 2014 underscore
progress in the acquisitions strategy
-- Solid performance across most clusters underpins confidence in outlook for the full year
Financial Performance
Constant Currency Reported
---------------- ------------------------------- ---------
Organic Acquisitions Total Total
---------------- -------- ------------- ------ ---------
Revenue (GBPm) 87.1 4.4 91.5 87.9
---------------- -------- ------------- ------ ---------
Growth 1.2% 5.1% 6.3% - 0.2%
---------------- -------- ------------- ------ ---------
Group organic revenue growth on a constant currency basis was
1.2% for the period. Adjusting this for certain non-recurring
revenue items associated with a US transportation client within the
Product cluster and for the discontinuation of certain food
advisory services in the Health Sciences sector in Europe,
underlying revenue growth was 3.2%. The comparison effect in the
Product cluster will become more pronounced in the second and third
quarters.
In Europe growth was driven by strong performance in the Product
cluster and demand for more technically demanding services to the
Oil & Gas industry, offset by client delays affecting the
Aerospace business and lower levels of activity in some parts of
the Oil & Gas and Industrials clusters. Reported revenue growth
was supported by the acquisition of Catalyst Environmental in
January 2014 and an outsourcing transaction completed with Vestas
in late 2013.
In the Americas underlying growth (adjusting for prior year
non-recurring revenues as above) was solid reflecting steady
performance in Oil & Gas and Industrials and Health Sciences,
but with some weakness in certain areas of the Aerospace business.
In general, sales were adversely affected by the weather in Canada
and some parts of the US and some isolated customer delays.
Reported revenue growth was supported by the acquisition of
Defiance in September 2013.
In the Rest of World performance was encouraging reflecting
operational improvements and early signs of the expected
macro-economic improvement in certain areas of the Middle East.
Acquisitions
The Group continues to pursue its strategy of seeking to
complement its organic growth with selected acquisitions. In
addition to the acquisition of Catalyst Environmental in the UK in
January 2014, the Group completed the acquisition of a calibration
business in Norway from Raufoss Offshore in May 2014.
Outlook
Underpinned by solid trading performance across most clusters
during the period, the Board remains confident of the Group's
prospects for the balance of 2014 and its expectations for the full
year, on a constant currency basis, are unchanged from the time of
the IPO.
Ian El-Mokadem, Chief Executive Officer of Exova, commented:
"Following on from our successful IPO, we are focusing on our
strategy of providing technically demanding services and are
positioned well for growth.
We are continuing to invest in our laboratories and to extend
the range and global reach of our services through selective
acquisitions. Having now completed five acquisitions or outsourcing
agreements since September 2013 we remain positive about our
ability to complement the organic development of the Group by
integrating new operations into our network."
The Group's half year results to 30(th) June 2014 will be
published on 29(th) August 2014.
Conference Call
A conference call to discuss the IMS will be held on Monday
19(th) May at 09.00 (UK). Dial-in details are:
UK: 0844 800 3850
International: +44 (0) 844 800 3850
Some locations may be unable to access the primary dial-in
number. If you are calling from one of these locations, please use
+44 (0) 208 996 3900
Passcode: 536 364
Enquiries
For investors, Exova Group
plc +44 (0) 131 476 7612
Ian Power, Investor Relations
For media, StockWell Communications +44 (0) 20 7240 2486
Anthony Silverman
Zoe Watt
Exova:
Exova is one of the world's largest dedicated testing groups,
trusted by organisations to test and advise on the safety, quality
and performance of their products and operations. Headquartered in
Edinburgh, UK, Exova operates 117 permanent facilities in 22
countries and employs more than 3,600 people throughout Europe, the
Americas, the Middle East and Asia/Asia Pacific.
Exova's capabilities help to extend asset life, bring
predictability to applications, and shorten the time to market for
customers' products, processes and materials. With over 90 years'
experience, Exova specialises in testing across a number of key
sectors from food and pharmaceuticals to aerospace, transportation,
oil and gas, fire, engineering and construction.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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