Trading Statement (7947Y)

TIDMHLS

RNS Number : 7947Y

Helesi PLC

06 March 2012

6 March 2012

Helesi PLC

("Helesi" or "the Company")

Trading update

Helesi (AIM: HLS), the Greece, Italy and Cyprus based waste management products manufacturer and services supplier, announces a trading update for the financial year ended 31 December 2011.

The Company expects to report revenue for 2011 of approximately EUR 35.2 million (2010: EUR 50.1 million) and EBITDA from underlying operations of approximately EUR 200,000 (2010: EUR 2.7 million).

The second half of 2011 has continued to be challenging with revenue lower than in 2010 due to reduced activity in the market place. We have pursued a strategy of geographical diversification and product diversification to help protect the Company from the worst of the paralysis in the Greek market. The principal focus of the Company remains to be on collecting receivables from the Greek and Italian state to reduce its level of indebtedness. Costs were reduced further in line with the reduced activity. Net debt stood at approximately EUR 65.7 million as at 31 December 2011, compared with EUR 66.3 million six months earlier. The Company is targeting a further modest reduction in indebtedness in the first half of 2012.

Banks continue to provide the required funding, supporting the Company's operations. The Company is currently negotiating a rescheduling of its debenture loans, which is expected to be finalized by the end of April.

The Company notes the press comment on the recent incident at the Komotini facility and can confirm that operations have returned to normal and that fortunately there has been no adverse impact on the business and its staff.

As is widely reported in the media, the Greek Government continues to explore a restructuring of its bonds. The Company is not able to predict either the outcome of these discussions or the timing or impact on the Company. The Company will provide updates as appropriate.

There are on-going structural changes in the Greek municipalities driven by the National Strategic Reference Framework 'NSRF' program. This should gradually produce an improvement in our largest market and an increasing participation by the private companies in the waste sector. We continue to bid for tenders on a very selective basis and a key requirement is getting paid in a timely fashion.

For further information please visit www.helesi.com or contact:

 
 Helesi PLC                          + 30 22990 82700 
 Sakis Andrianopoulos, Chief 
  Executive 
 Ioannis Tolias, Finance Director    [e-mail] 
 
 Panmure Gordon                      [phone] 
 Andrew Godber 
  Katherine Roe 
 
 Tavistock Communications            + 44 (0)20 7920 3150 
 Simon Hudson                        [e-mail] 
 

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