TIDMABA
RNS Number : 2647M
Alba PLC
27 January 2009
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Alba plc
Interim Management Statement
Alba plc ("the Group") is a distributor of consumer electrical goods in the UK.
This report covers trading since 1 October 2008, the start of the second half of
the Group's financial year. During this period the Group announced, and
subsequently completed, the sale of its Alba and Bush brands to Argos.
In response to the severe market environment, the Group has escalated the rate
of restructuring, by withdrawing from more product lines than previously
anticipated resulting in stock levels currently being significantly reduced as
compared with the same date last year, with the Group having net cash of GBP21m
(2008: net debt of GBP17m).
UK Consumer Electronics
As widely reported, market conditions continue to be extremely challenging and
are likely to continue to be so for the foreseeable future. With this in mind,
our strategy continues to be one of reducing risk in our consumer electronics
markets and, as previously announced, the cost base is being further reduced,
resulting in additional exceptional costs being incurred in the second half of
this financial year.
Far East
Our medical electronic products business, whilst still in its early stages,
continues to develop positively.
Current trading and prospects
As mentioned in our recent circular to shareholders, the Group's strategy of
reducing risk in its consumer electronics markets, whilst further developing the
medical electronics business, is intended to re-establish a sustainable business
model, capable of consistently producing positive returns.
The Group continues to believe that the extremely challenging conditions in the
consumer electronics market will continue throughout the remainder of this
financial year and into at least the first half of 2009/10 and that returning
the Group's continuing businesses to profitability during this period will not
be easy. It is therefore likely that the benefits to be accrued from the Group's
restructuring will only start to emerge once market conditions improve.
27 January 2009
ENQUIRES:
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| Alba plc | Tel: 020 8238 7650 |
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| Daniel Harris, Chief Executive | |
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| Andrew Rose, Finance Director | |
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| | |
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| College Hill | Tel: 020 7457 2020 |
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| Gareth David | |
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This information is provided by RNS
The company news service from the London Stock Exchange
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