MST Mid-States

TIDMMST

RNS Number : 2985K

Mid-States PLC

13 July 2011

MID-STATES PLC (the "Company")

Trading Update

Mid-States PLC, a leading environmental technology group, announces its trading update for the 12 months ended 30 June 2011.

During this period the Company continued its focus on and investment in developing its flagship air disinfection product, 'the AD' through expanding the network of country specific distributors it works with and producing the next generation of ADs to meet the requirements of different markets and customers.

Revenues for the period are expected to be approximately GBP425k (2010: GBP311k) reflecting the increasing demand for our products as the number of devices despatched increased from 1,080 to 1,760.

The numbers of distributors and territories has continued to grow. In Q4, the Company received orders in excess of 1,000 ADs, bringing the total for the year to over 4,000 ADs. Nevertheless, progress has been slow in certain markets and some orders are taking longer to convert to revenue. The board has therefore reviewed the order intake reporting methodology. A more cautious approach has now been adopted in the way in which orders are reported and subsequently converted to revenue. Using the new methodology the Company will only report orders totalling 3,078 ADs for the year, which is double last year's figure. After accounting for those orders already converted to revenue, this leaves the Company with a closing order book of 1,356 ADs to be recognised in revenue in the new financial year.

The majority of the orders removed are still expected to be despatched in the new financial year but will not be included in the reported order intake until the Company has received the payments required of new distributors. Orders for a small number of ADs (172) have been cancelled and the Company will no longer work with these distributors. Henceforward, only orders from distributors with an established trading history with the Group or those accompanied with guaranteed payment will be immediately recognised in order intake. The Board believes this approach to order intake will provide a more transparent picture of the Company's trading progress.

As at 30 June 2011, the Company had net cash of GBP1.25 million.

In addition to the good progress made with developing the distributor network, with sales made during the year to over 30 countries, the Company is in negotiations with two large distributors in China and India, both of which are expected to be substantial markets for the Company's new products, and looks forward to announcing further progress on these discussions.

Product development is fundamental to the Company's future and in October 2011 the Company will launch the evolutionary new commercial AD, which will be known as the AD-H2. This version can be wall mounted, is slimmer, quieter and odourless. Initial responses to the new eye-catching design have been very positive. The Company has also developed a new "mid-range" device suitable for smaller commercial applications, and this product is also expected to launch in October 2011. Alongside this, the development of the miniaturised AD for use in the domestic home is progressing, as are the discussions with an industry leader as a potential commercial partner for this product.

Javier Segura, Managing Director of Mid-States PLC, commented: "We have demonstrated that demand for the AD has continued to increase and we are close to making the step change in sales we are looking for. We continue to see exciting and large opportunities in our markets both in terms of sales of the existing AD and progression of the new products. Our focus in the coming months will be on launching our innovative new products and I am wholly confident of the Company's future."

For further information:

Mid-States PLC Tel: +44 (0) 20 7603 1515

Andrew Tonks, Finance Director

Panmure Gordon (UK) Limited Tel: +44 (0) 20 7459 3600

Andrew Godber/Adam Pollock

Cardew Group Tel: +44 (0) 20 7930 0777

Tim Robertson / Georgina Hall

NOTES TO EDITORS:

Developed from a concept identified by a British Government research facility, the AD provides a unique solution for disinfecting the air and surfaces of harmful bacteria and viruses. Currently the Company is focused on selling the AD to create clean air in enclosed spaces for hospitals, care homes, offices, dental surgeries and ambulances and is progressing towards developing new products for smaller commercial application and the domestic market.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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