Exova Group PLC Trading Update (3849X)
19 November 2014 - 8:00AM
UK Regulatory
TIDMEXO
RNS Number : 3849X
Exova Group PLC
19 November 2014
19 November 2014
Exova Group plc
Trading Update
Exova Group plc ("Exova" or the "Group"), a leading
international provider of technically demanding testing services,
today releases its Trading Update for the period from 1 July 2014
to date. The financial results correspond to the ten month period
from 1 January 2014 to 31 October 2014 compared with the
corresponding period in 2013.
Highlights
-- Underlying organic revenue1 growth at constant currency of 3.8% in line with expectations
-- Total revenue growth on a constant currency basis of 4.0%
-- Three bolt-on acquisitions and one disposal completed
-- The Board expects full year underlying organic revenue growth
at constant currency to be broadly in line with the year to
date
Ian El-Mokadem, Chief Executive Officer of Exova, commented:
"Trading in the last four months has been consistent with our
expectations at the time of the half year results. We have also
continued to execute our acquisition strategy with the most recent
addition of the Metallurgical Services business in India.
"The medium term outlook for the Group remains positive and we
continue to see opportunities to complement organic growth by
extending the global reach of our business through new acquisitions
and outsourcing agreements."
Revenue growth for the ten months to 31 October 2014
Growth (%)
------------------------ -----------
Constant currency
Underlying organic (1) 3.8
Underlying adjustments (4.2)
------------------------- -----------
Organic (2) (0.4)
Acquisitions 4.9
Disposals (0.5)
------------------------- -----------
Total 4.0
Currency effect (6.7)
------------------------- -----------
Reported (2.7)
------------------------- -----------
Trading in the period from 1 July 2014 to date
In Europe, the Health Sciences and Product clusters continued to
report good underlying revenue growth including the benefit of
contract wins in Health Sciences. In addition, Oil & Gas and
Industrials continued to see a strong requirement for technically
demanding services offset by some softness in more routine testing.
In the Aerospace cluster, although certain client delays and
subdued demand affected performance in the first half of the year,
we have subsequently seen a modest improvement.
In the Americas, Oil & Gas and Industrials continued to show
strong overall growth with technically demanding testing being
particularly robust. Health Sciences also delivered overall growth.
Progress in these clusters was largely offset by a general weakness
in demand for certain types of testing for the Transportation
sector and by weak demand and client specific delays in some
Aerospace laboratories.
In the Rest of World, growth moderated as anticipated in the
Middle East cluster after a particularly strong first half of the
year. Growth accelerated considerably in the Product cluster as we
continued to see the on-going benefits of the investment we made in
our Fire Testing business in Australia and strong demand for Fire
Consulting services across the region.
Acquisitions and disposals
In addition to the acquisition of Catalyst Environmental in the
UK in January 2014 and the calibration business of Raufoss Offshore
in Norway in May 2014, the Group completed the acquisition of
Metallurgical Services, a leading Oil & Gas and Industrials
testing business in India, in July 2014.
Following a strategic review of our small routine geological
core testing and analysis business in Calgary, Canada, the business
was sold on 7 November 2014.
Outlook
The Board expects full year underlying organic revenue growth at
constant currency to be broadly in line with the year to date.
Full year results
The Group's full year results to 31 December 2014 will be
announced on 4 March 2015.
Notes:
1) Underlying organic revenue is organic revenue adjusted for
certain non-recurring items associated with a US transportation
client within the Product cluster and for the discontinuation of
certain food advisory services in the Health Sciences cluster in
Europe.
2) Organic revenue growth at constant currency represents
revenue growth at constant currency for each year excluding the
growth attributable to acquisitions until the acquisition has been
owned for a 12 month period and excluding the revenue attributable
to disposals in the year of disposal and the preceding year, all at
constant currency.
Conference Call
A conference call to discuss the Trading Update will be held on
Wednesday 19 November at 9.00am (UK). Dial-in details are:
UK: 0844 800 3850
International: +44 (0) 844 800 3850
Some locations may be unable to access the primary dial-in
number. If you are calling from one of these locations,
please use +44 (0) 208 996 3900
Passcode: 261 862
Enquiries
For investors, Exova Group plc
Ian Power, Investor Relations +44 (0) 131 476 7612
For media, Powerscourt
Ian Middleton / Paul Durman +44 (0) 20 7250 1446
About Exova
Exova is one of the world's largest dedicated testing groups,
trusted by organisations to test and advise on the safety, quality
and performance of their products and operations. Headquartered in
Edinburgh, UK, Exova operates 118 permanent facilities in 23
countries and employs around 3,800 people throughout Europe, the
Americas, the Middle East and Asia/Asia Pacific.
Exova's capabilities help to extend asset life, bring
predictability to applications, and shorten the time to market for
customers' products, processes and materials. With over 90 years'
experience, Exova specialises in testing across a number of key
sectors from food and pharmaceuticals to aerospace, transportation,
oil and gas, fire, engineering and construction.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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