Silverdell PLC Trading Update (4551Z)

TIDMSID

RNS Number : 4551Z

Silverdell PLC

07 March 2013

Silverdell PLC

("Silverdell" or "the Company")

AGM trading update

Silverdell PLC (AIM: SID), the Specialist Environmental Support Services group, announces the following trading update in advance of its AGM, to be held at 11am today at the office of FinnCap, 60 New Broad Street, London EC2M 1JJ.

Silverdell is pleased to announce that it has secured a number of long term framework contracts worth in aggregate up to GBP3 million per year. The Group maintains a strong order book and tendering activity remains very high with a number of key opportunities being negotiated.

Following the positive start to the new financial year, the Board expects results for 2013 to be in line with its expectations. The Board also confirms its recommendation of a maiden dividend of 0.175 pence per share, to be paid on 22 March 2013 to shareholders on the register at the close of business on 13 March 2013, subject to approval by shareholders at today's AGM.

The Board has taken the decision to accept an offer of circa GBP1m as final settlement from Shaw Group on its 18 month final account negotiation on Pembroke Power Station, a contract secured in 2010. A non-recurring exceptional charge of around GBP2.5m will be recorded in the first half results for 2013. The Company's underlying profit for 2013 will not be affected however year end net debt is now anticipated to be approximately GBP1 million higher than previous expectations.

The Board took the view that the release of cash would enable the Group to take advantage of many of the new opportunities now becoming available in its Decommissioning division. Considerable changes in policy have been implemented since the contract was first tendered and the Board is confident that its far more stringent controls, combined with moving to work directly for clients, will avoid a similar situation in the future.

Sean Nutley, Chief Executive of Silverdell, commented:

"Last year was a landmark year for Silverdell with the successful acquisition and integration of EDS, the securing of significant new contracts and the streamlining and strengthening of our management structure to give us a strong platform for the future.

"With a much transformed and broader service offering and geographical footprint, we are well-placed to implement our growth strategy supported by clear and achievable KPIs.

"Our confidence in the future is reflected in our recommendation of a maiden dividend. I look forward to reporting further progress."

7 March 2013

ENQUIRIES:

 
 Silverdell                          Tel: + 44 20 7389 6800 
 Sean Nutley, Group Chief 
  Executive 
 Ian Johnson, Group Financial 
  Director 
 
 finnCap                             Tel: + 44 20 7220 0500 
 Matt Goode (Corporate Finance) 
 Ben Thompson (Corporate Finance) 
 Victoria Bates (Corporate 
  Broking) 
 
 College Hill 
 Helen Tarbet                        Tel: + 44 20 7457 2020 
 Mark Garraway                            + 44 78 2560 9737 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

TSTUGUAWWUPWUQM