The positive trends which enabled the Company to deliver increases of 34% in operating profit and 39% in earnings per share for the last financial year have continued into the first quarter of the current financial year. Strong organic sales growth in the traditionally less active first quarter has been supported by an encouraging performance from Cener, Spain and Masterpower Electronics, UK. The product order book again increased in the first quarter, and margins continued to strengthen against the prior year comparative period.
As indicated in the preliminary announcement of results on 4 June 2007, Chloride has continued to invest across the business to strengthen its competitive position:
- increased shareholding in DB Power Electronics, India to 20% of its share capital. Chloride is now benefiting from the opportunities this partnership has opened up with international customers, such as IBM and Microsoft, in India’s fast expanding financial services, telecoms and IT sectors;
- acquired AST Electronique Services SARL (ASTE), a small secure power services company in France. ASTE brings complementary skills to Chloride and expands the service infrastructure in the important French market; and
- completed the acquisition of Ascor Power Systems PTE Limited (Ascor), one of Chloride’s distributors in South East Asia, based in Singapore. This has already been welcomed by customers in the region, and will provide the technical, sales and service resources to support growth in South East Asia.
Both Ascor and ASTE are performing to expectations. Chloride is also making excellent progress across Europe where it enjoys a leading market position, and in the Middle and Far East where it is winning business in significant energy and oil and gas projects. In the USA, management changes are having a positive impact, and improvements in performance are starting to come through.
The Chloride Academy, which was inaugurated in May 2007 will continue to develop the skills and knowledge of Chloride’s people, underpinning the commitment to delivering outstanding customer service and market-leading solutions.
The management team was strengthened by the appointment of Tim Cobbold as Chief Operating Officer. Tim, who joined the Board as an executive director on 1 June 2007, is responsible for all Chloride’s operational activities, reporting to the Chief Executive, Keith Hodgkinson.
Chloride operates in high growth global markets, and its secure power solutions are tailored to maximise competitive advantage. It has the financial strength to invest in expanding its solutions infrastructure and geographic reach, and a well defined strategy for growth. Accordingly, the Board is confident that Chloride is well placed to deliver another year of strong performance.
Commenting, Chairman Norman Broadhurst said: “The last financial year was a record year for Chloride, as we increased market share in dynamic global markets, driven by continued high levels of demand in data centres, energy and oil and gas. I am pleased to report that our strategy for growth continues to deliver strong performance. We enter the second quarter with confidence, underpinned by good sales growth and a strong order book”.
Enquiries:
Chloride Group PLC
Keith Hodgkinson (Chief Executive)
Neil Warner (Finance Director)
Telephone: +44 (0)20 7881 1440
Hudson Sandler Andrew Hayes/ Kate Hough
Telephone: +44 (0)20 7796 4133