RNS Number : 4391L
Imagelinx PLC
12 January 2009
IMAGELINX PLC
("Imagelinx" or the "Company")
Trading Statement
Imagelinx, the global provider of graphic brand management services, is pleased to announce today a major contract award for the
artwork for a major global healthcare brand of an existing customer. Initial estimates are that this activity would lead to annual sales in
the region of $750,000 a year with scope to rise up to $1 million. Work on this account is expected to start early this year.
In addition the Company is pleased to announce further awards of new business made in the final quarter of 2008 from existing customers
and also from a former customer including:
* handling all the artwork and reprographics for the Russian and Eastern European business of its largest printing client;
* the African business of one of its UK clients;
* a former client has awarded Imagelinx their artwork, reprographic and flexo plate-making activities in the UK;
* the award of the artwork for one of the Company's major clients for a part of their hair care businesses in Europe;
These further awards are estimated to provide another £500,000 in annual sales.
Despite the global economic uncertainties, trading across the Imagelinx group in the second half has improved month by month and the
final quarter of the year has ended on a strong note. Therefore the Board is confident of reporting an improved result for the last year
compared to 2007 and expect the group to have been profitable before goodwill and exceptional items, compared to a loss of £800,000 for the
year ended 2007. There will also be an exceptional profit as announced in August 2008 relating to the transfer of the LTGG pension fund
scheme to the Pension Protection Fund.
The group's two acquisitions in the last two years, Tecnolink at the end of 2006 and Brandmark Digital early in 2008, have both
justified the decisions to acquire them and have performed well.
The Board believes that the Company enters 2009 with three particular advantages in its favour to face the uncertain economic climate:
- it has won a wide range of new business mainly from existing clients;
- it has reduced its cost base significantly over the last two years; and
- it is well placed to benefit from the strength of both the dollar and the euro as the majority of its annual revenue is in these
two currencies while the cost base is predominantly sterling based.
Accordingly, in the current economic environment and as experienced by many businesses, the Company has less visibility of the year
ahead, although the Board believes the Company is well placed to cope with 2009.
The Company intends to write to shareholders shortly convening a general meeting at which it is proposed to seek approval from
shareholders to update the articles of association and to reorganise its share capital in order to reduce the nominal value of the ordinary
shares which has been higher than the trading price. The circular to shareholders will also include details of the Company's share option
scheme whereby the Company also intends to issue options to a number of its senior managers.
Enquiries:
Imagelinx plc
Albert Klein, Chairman Tel: +44 (0) 7801 910920
Alistair Rae, CEO Tel: +44 (0) 7736 883934
Seymour Pierce Limited
Sarah Jacobs Tel: +44 (0)20 7107 8000
This information is provided by RNS
The company news service from the London Stock Exchange
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