HTIG Hightex

 

TIDMHTIG 
 
RNS Number : 8221N 
Hightex Group PLC 
25 February 2009 
 
Hightex Group plc ("Hightex" or the "Company") 
 
 
Trading Update 
 
 
Trading update on membrane business 
Reduction in SolarNext operations to stabilise group cash flow 
 
 
25 February 2009 
 
 
Membrane business update 
 
 
Hightex's membrane business continues to grow successfully. Following the 
announcement made on 29 January 2009 about the contract win for the 
refurbishment of the roof system of the Munich Olympic Hall worth approximately 
EUR 8.2 million, the total contracted revenue for calendar 2009 has been lifted 
to EUR 16.5 million. 
 
 
In addition, during 2008 Hightex undertook significant preparatory work on a 
number of high value potential contracts, which are expected to move to the 
tender stage during 2009. Hightex believes that its preparatory work will place 
it in a good position when these tenders are assessed by the respective client. 
 
 
SolarNext 
 
 
The Board of Hightex (the "Board") announces that it has completed a thorough 
review of its solar cooling business which has been developed through its wholly 
owned subsidiary SolarNext AG ("SolarNext") against the background of the 
downturn in world economic activity. 
 
 
SolarNext product range 
 
 
SolarNext has developed a solar cooling and heating system in kit form which can 
be retro-fitted to many kinds of structures. To date more than EUR 3.5 million 
has been invested in this project, with the result that SolarNext has designed 
and produced a proprietary air-conditioning system, driven by solar thermal 
energy and managed by an innovative multi-function system controller which is 
the subject of international patent applications. With no formal sales force or 
concerted selling effort, SolarNext has already sold 23 of these chillers for an 
aggregate sales value of approximately EUR 526,000. 
 
 
The unique chillii  System Controller can be used with thermally driven heating 
and cooling systems or heating only systems, and is capable of handling a 
variety of heat sources, including solar heat, district heat, biomass, CHP units 
and waste process heat. 
 
 
The development phase of both the system and the controller has been 
successfully completed and the products are ready for larger scale 
commercialisation. Furthermore, the Board of Hightex believes that the growing 
global market for these products will develop significantly as and when solar 
power begins to replace electrical power as the energy source used to drive 
air-conditioning systems. 
 
 
SolarNext and its working capital requirements 
 
 
Following its review of SolarNext, the Board has concluded that the working 
capital requirements which a move to the commercialisation phase would 
necessitate, including increased production volumes and recruiting a larger 
sales force, are beyond the current capacity of Hightex to finance in the 
present difficult market conditions. 
 
 
Accordingly, the Board has decided to reduce SolarNext's operations with 
immediate effect, whilst ensuring the Company's focus remains on its successful 
and growing membrane business. Nine of the SolarNext staff have left the 
company, leaving a skeleton staff who will remain in order to maintain the 
intellectual property until economic circumstances permit SolarNext's products 
to be commercially exploited. It is anticipated that the effect of this decision 
will reduce net cash outflow on SolarNext in a full year from approximately EUR 
1,500,000 to a maximum of EUR 400,000. In calendar 2009, it is estimated that 
the net cash outflow on SolarNext will amount to approximately EUR 610,000. 
 
 
Charles DesForges, Chairman, stated that "The membrane business continues to 
grow and Hightex has been successful in winning several major new contracts 
based on our consistent approach of providing innovative and technically 
advanced solutions to the needs of clients. Hightex places a great priority on 
preserving cash in present markets and has therefore taken this prudent and 
realistic decision on SolarNext. All the relevant SolarNext intellectual 
property will be retained within the Hightex group and can be commercialised 
when financial resources permit. Meanwhile, this decision will deliver a more 
stable pattern of group cash flow in the short and medium term." 
 
 
Enquiries: 
 
 
Charles DesForges, Chairman, Hightex Group plc               +44 (0) 207 603 
1515 
 
 
Teathers 
Jeff Keating  +44 (0) 207 426 9000 
Cameron Duncan 
 
 
 
 
About Hightex 
 
 
Hightex has a long history of building large span roofs and facades using 
architectural membranes, exemplified by the Abuja Stadium for the All African 
Games in 2003 as well as the Berlin Stadium, Germany, used for the most recent 
FIFA World Cup Final in 2006. Hightex has been awarded the contract to provide 
the membrane roof as part of the upgrading of the First National Bank (FNB) 
Stadium in Johannesburg, which will be the stadium for several first and second 
round matches, one quarter-final and the final match at the FIFA 2010 Football 
World Cup. 
 
 
In 2006 Hightex completed one of the largest membrane projects in the world, 
designing and constructing the energy-saving, sound-optimised, triple layer 
membrane roof for the Suvarnabhumi Airport in Bangkok, Thailand. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 TSTILFFRFLISFIA 
 

Hightex (LSE:HTIG)
Historical Stock Chart
From Jun 2024 to Jul 2024

Hightex (LSE:HTIG)
Historical Stock Chart
From Jul 2023 to Jul 2024