Silverdell PLC Trading and Strategic Update (9079N)
October 04 2012 - 1:00AM
UK Regulatory
TIDMSID
RNS Number : 9079N
Silverdell PLC
04 October 2012
Silverdell PLC
("Silverdell" or "the Group")
Trading and Strategic Update
Silverdell Plc (AIM: SID), the Specialist Environmental Support
Services group, today provides an update on trading for the year
ended 30 September 2012. The Group will announce preliminary
results for the year ended 30 September 2012 on Wednesday 5
December, at which it will announce an increase in revenues of more
than 30% and its intention to pay a maiden dividend.
Trading Performance for the year ended 30 September 2012
The Group expects to report revenue of circa GBP78 million, an
increase of more than 30% year on year.
Adjusted EBITDA* is expected to be 46% ahead of the previous
year at around GBP6 million, with Consulting EBITDA* increased by
approximately 30% on the same period last year and Remediation down
approximately 15%. The decrease in Remediation EBITDA was the
result of an unforeseen deferral of certain high margin shut down
and refurbishment works expected in FY12. These works were deferred
due to changing customer plans, but are now underway. Approximately
GBP200,000 of the decrease relates to a small number of bad debt
provisions resulting from customer bankruptcy. The corresponding
adjusted fully diluted earnings per share is expected to fall in
the range of 1.15-1.25 pence.
Senior net debt (excluding asset backed finance arrangements) is
expected to be between GBP6 million and GBP7 million. The Group
continues negotiations relating to its claim against a main
contractor on a project completed in September 2011.
The enlarged Group is now in the process of tendering for large
contracts in Australia, Canada, the UK, and mainland Europe where
it has submitted a number of bids in respect of the decommissioning
of oil and gas and pharmaceutical facilities. Silverdell
anticipates reporting an order book at the end of October in excess
of GBP200m, with over 75% of revenues scheduled to fall in
2013.
Update on Acquisitions
The integration of EDS Group Holdings ('EDS') is progressing in
line with Management expectations. EDS had strong performance in
the final quarter and the acquisition made an immediate
contribution, with significant synergies and global cross-selling
opportunities, particularly in Australia, Canada and the UK, being
realised.
RDS and AH Allen, the specialist consultancy businesses acquired
in 2011, have both been fully integrated and are performing
well.
Dividend
As a mark of its confidence in the future growth prospects of
the Group, the Board reconfirms its intention to recommend a maiden
full year dividend for 2012 of between 0.15 pence and 0.2 pence per
share, subject to normal approvals.
Magnox Contract Win
The late starting contracts referred to above included the
GBP304 million Magnox Framework Contract for nuclear
decommissioning, which Silverdell announced in November 2011 and
for which works were expected to commence during the Group's
financial year 2012. The Group is pleased to announce that it has
now received a GBP3.2m order for works to commence immediately at
the Magnox site at Chapelcross.
Strategic Update
Following the acquisition of EDS, Silverdell is now a unique
provider of end-to-end decommissioning services with world-wide
reach. The Group specialises in providing services in high hazard,
highly regulated environments, working with global, blue chip
customers who must protect their reputation for the highest
standards of health and safety compliance.
By leveraging this global reach and enlarged suite of specialist
services, the Board believes that the opportunity exists to grow
organic revenues at 15% per year over the medium term, with EBITDA
margins at around 10%. Particularly compelling growth opportunities
exist in Australia, Canada -where the market for the provision of
high hazard services is fragmented - and mainland Europe.
Summary and Outlook
Silverdell has completed a successful year, significantly
building on its reputation with blue chip organisations as a
leading provider of decommissioning and remediation services to
high hazard and regulated environments. Revenue and profit
run-rates for the fourth quarter of FY 2012 give the Board
confidence for the future and its expectations for 2013. The Group
has a strong order book, robust pipeline of work, and sees
compelling opportunities for growth in both domestic and overseas
markets where it can build on the foundations of strong customer
relationships.
Sean Nutley, Chief Executive of Silverdell, commented:
"The future for Silverdell looks highly promising, with the
opportunity now to build on strong UK relationships to grow our
business abroad. The acquisition of EDS has given us a unique and
compelling combined service offering and an ideal platform for
future growth. Our decision to recommend a maiden dividend reflects
our confidence as we look to the coming year and beyond."
*"Adjusted EBITDA" refers to EBITDA before non-recurring
exceptional costs, amortisation and share based payment charges
04 October 2012
ENQUIRIES:
Silverdell Plc Tel: + 44 20 7389 6827
Sean Nutley, Group Chief Executive
Ian Johnson, Chief Financial
Officer
FinnCap Tel: + 44 20 7220 0500
Marc Young (Corporate Finance)
Ben Thompson (Corporate Finance)
Victoria Bates (Corporate Broking)
College Hill Tel: + 44 20 7457 2020
Helen Tarbet
Mark Garraway
This information is provided by RNS
The company news service from the London Stock Exchange
END
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