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At its Annual General Meeting to be held later today, David Mann, Chairman of Flomerics Group PLC, the global supplier of specialist design
and simulation software for electronics and fluid flow simulation, will make the following statement on the Group's continuing progress:
“As stated in the Annual Report for the year ended 31 December 2006, the acquisition of NIKA has resulted in a step-change in the Group’s
potential and ambitions. In order to take maximum benefit from the new portfolio of products brought into the company, we have, as previously
indicated, invested in additional sales staff, especially in the UK and the USA.”
“The acquisition of NIKA is beginning to yield benefits. We have made good progress in integrating the technologies of the two companies and
are on track to release later this year the first version of the EFD family of products specifically targeted at the electronics industry.
We have achieved a number of cross selling successes and been able to make sales into accounts in the electronics industry for applications
where our market leading FLOTHERM product would have been less suitable. If we look at the business on a world-wide basis, we are pleased
with the increased level of sales activity and the rate at which we are able to build a pipeline of business.”
“Trading in the first four months of this year in Europe and Asia-Pacific region has been in line with expectations. We are in particular
delighted with progress in Germany, where the former NIKA and Flomerics teams have integrated well and have continued the sales success shown
by NIKA in this region during 2006.”
“The recent recruitment program in the US is now complete and prospects for the North American business remain encouraging. However, sales
performance in this region has been below expectations with the process of hiring specialised sales people of the right calibre taking longer
than was planned. Delays in getting the integrated team in place, trained, and building solid pipelines are expected to result in reduced
growth in US revenues and profits compared with budgets established at the beginning of the year. In addition, any continued strengthening
of Sterling, particularly against the US dollar, will affect contributions from North America. The Directors expect that these factors will
have a significant adverse impact on the Group’s results for this year.”
“The company is taking action to reduce the effect of the delays in the US on profits whilst being careful not to disturb the momentum that
is being built in our sales pipeline. Overall, the Board remains confident that the Group will make significant progress this year.”
Contacts:
Flomerics Group PLC:
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Gary Carter
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Chief Executive
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020 8847 3000
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Chris Ogle
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Finance Director
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020 8847 3000
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Conduit PR:
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Charlie Geller
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020 7429 6666
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Oriel Securities Limited (Nominated Adviser):
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Andrew Edwards
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020 7710 7600
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