SID Silverdell

TIDMSID

RNS Number : 3641P

Silverdell PLC

03 October 2011

Silverdell PLC

("Silverdell" or "the Group")

Trading Update

Silverdell Plc (AIM: SID), the Specialist Environmental Support Services group, will announce preliminary results for the year ended 30 September 2011 on Wednesday 30 November, when it expects to confirm a strong performance.

Trading Performance

The Group expects to report an increase of approximately 5% in revenue year on year, in line with expectations. Sales have recovered strongly after a challenging first quarter, with second half revenues up approximately 13% on the first half. Adjusted EBITDA* is expected to be 5% ahead of the previous year with second half EBITDA up approximately 40% on H1, representing a 30% increase after adjusting for the acquisitions of AH Allen and RDS, announced during the year, and which are trading in line with expectations.

Net debt will be higher than expected due to volume-related working capital outflows (more than GBP2m of which is expected to be recovered in the first half of FY2012) as well as acquisition costs.

The Board reconfirms its intention to consider the payment of a maiden full year dividend following the AGM in February 2012.

Strategic Update

Silverdell continues successfully to implement its strategy, with the aspiration of growing the Group to GBP100m+ of revenue within two years. The Group is expanding its service offering beyond traditional asbestos contracting work, to broader-based environmental support services in the high-hazard, regulated industrial sector, focussing on high quality contracts and repeat business with blue chip and large public sector customers.

The implementation of this strategy has seen continued contract wins, including two Higher Education frameworks worth approximately GBP1m over three years, a 3 year contract with a consortium of Registered Social Landlords worth an estimated GBP1m pa, a removal contract worth over GBP1m with a High Street retailer, and a local government waste remediation project in the Channel Islands worth approximately GBP750k. Our order book has been further enhanced by the recent renewal of a 3 year MoD framework expected to add GBP3-5m to the Group order book. The Group's industrial support services business has been successfully placed on bid lists for significant contracts in the nuclear, energy and petrochem sectors, both in the UK and Canada. In this area, we have just secured a 3 year scaffolding framework with a major energy utility company in the UK worth up to GBP1m pa.

AH Allen and RDS, both of which were acquired during the year, are being successfully integrated and are performing in line with expectations. These companies have significantly augmented the capabilities, geographical coverage and client roster of Silverdell's consulting division, and are driving the continuing growth of the Group as a whole, creating a number of cross-selling opportunities. The acquisition of RDS has added more than GBP3m to the Group order book as at 30 September 2012.

Summary

Silverdell continues to trade well and to benefit from the continued expansion of its services and securing of larger contracts in highly regulated sectors. Management feels confident of continuing to grow the business, both organically and by acquisition, and of realising their aspiration to grow the Group to GBP100m+ of revenue within two years.

Sean Nutley, Chief Executive of Silverdell, commented:

"We are looking forward to reporting a strong full year performance. Over the past two years, Silverdell has been transformed from a narrowly focussed asbestos remediation contractor to a broad-based, Specialist Environmental Support Services group, working with major companies in the nuclear, oil and gas, health and defence sectors as well as some of the UK's largest retailers.

"This transformation is set to continue. Our scale and scope have already been augmented through two recent acquisitions and we see significant opportunities to drive further growth, both organically and by acquisition. While conditions in the wider economy remain challenging, the regulated nature of our service offering means our business model is more resilient and we look forward to the future with confidence"

*"Adjusted EBITDA" refers to EBITDA before non-recurring exceptional costs, amortisation and share based payment charges.

3 October 2011

ENQUIRIES:

 
 Silverdell Plc                       Tel: + 44 20 7389 6827 
 Sean Nutley, Group Chief Executive 
 Ian Johnson, Group Financial 
  Director 
 
 finnCap                              Tel: + 44 20 7600 1658 
 Marc Young 
  Ben Thompson 
 
 College Hill                         Tel: + 44 20 7457 2020 
 Helen Tarbet 
 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

TSTWGUGPBUPGGQU

Silverdell (LSE:SID)
Historical Stock Chart
Von Jun 2024 bis Jul 2024

Silverdell (LSE:SID)
Historical Stock Chart
Von Jul 2023 bis Jul 2024