Silverdell PLC Trading Statement (1820C)

TIDMSID

RNS Number : 1820C

Silverdell PLC

12 April 2013

Silverdell plc

Pre close Trading Statement

Silverdell plc ("Silverdell" or the "Group"), the specialist environmental support services group, announces a trading update in advance of its interim results for the six months ended 31 March 2013 which will be announced on Wednesday 5 June.

Trading Performance

Trading has been in line with expectations with Group revenues for the six months to 31 March 2013 expected to be at least GBP62m (31 March 2012: GBP31.4m), up around 100% on last year. This follows the acquisition of EDS Group Holdings Limited ("EDS") in June 2012, the integration of which has been completed as planned.

Good progress has been made across the Group's Canadian and Australian operations with the Hydro Quebec site, acquired in January 2013, performing in line with expectations. Market conditions in the UK have remained challenging through the first half.

The Group's order book at 31 March 2013 stood at GBP210m (31 March 2012: GBP133m) with circa GBP60m in additional revenues confirmed for the second half of the current financial year. Recent contract awards include a GBP2.5m decommissioning/remediation contract for a chemical manufacturing facility in Scotland and GBP1.5m of remediation works on a pet food plant in the Midlands. We have a strong tendering pipeline of over GBP200m across our key growth territories of Canada, Australia and continental Europe and are currently at advanced stages on contracts valued at in excess of GBP30m.

Adjusted EBITDA (before non-recurring exceptional costs, amortisation and share based payment charges) for the period is expected to be in the range of GBP4.5m-GBP5.0m (31 March 2012: GBP1.8m), an increase of at least 150%.

Total net debt is expected to be GBP15m-GBP16m (31 March 2012: GBP6.7m), of which net senior debt is expected to be GBP7m-GBP8m (31 March 2013: GBP6.3m). This high point reflects the peak working capital requirements of Hydro Quebec (which will reverse in the second half of the year) and the acquisition of additional capital plant and equipment in Canada.

Summary and Outlook

A strong order book gives the Board confidence for the future and in particular its expectations for the financial year ending 30 September 2013, which remain unchanged. The Group has a strong 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.

12 April 2013

ENQUIRIES:

 
 Silverdell Plc                           Tel: + 44 20 7389 
                                                       6827 
 Sean Nutley, Group Chief Executive 
 Ian Johnson, Chief Financial Officer 
 
                                          Tel: + 44 20 7220 
   FinnCap (Nominated Adviser and                      0500 
   Broker) 
 Matt Goode (Corporate Finance) 
  Ben Thompson (Corporate Finance) 
 Victoria Bates (Corporate Broking) 
 
 
   College Hill                           Tel: + 44 20 7457 
                                                       2020 
 Helen Tarbet 
 Mark Garraway 
 
 

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