ACER Acertec

 

TIDMACER 
 
RNS Number : 6100N 
Acertec PLC 
19 February 2009 
 

19 February 2009 
 
 
Acertec plc 
("Acertec" or the "Group") 
 
 
Settlement of dispute and trading update 
 
 
On 30 July 2008, Acertec announced that it had initiated litigation against a 
major supplier to the former reinforcement business of its Acertec Construction 
Products division. Acertec announces that it has now agreed to settle this 
dispute and that the supplier has agreed to pay GBP2.14 million in damages to 
the Group and to write off approximately GBP2.40 million owed by Acertec, for 
which provision had been made in Acertec's interim results for the six months 
ended 30 June 2008. This results in a net settlement value to Acertec of 
approximately GBP4.54 million. Of the GBP2.14 million damages that the supplier 
has agreed to pay, GBP1.3 million has already been received; the remaining 
GBP0.84 million is due to be received in instalments before 2 September 2009. 
The proceeds will be used to reduce Group debt. 
 
 
As highlighted in the interim results announcement in September, it was expected 
that market conditions would remain challenging in the automotive sector 
throughout 2009. Since this announcement, the Board has taken important actions 
to reduce costs within Stadco. However, as has been well publicised, volumes at 
Jaguar Land Rover, BMW Mini and Ford have continued to decline and revenues 
within Stadco have been impacted in both Germany and the UK. As a result, Stadco 
is currently incurring significant losses in its UK operations, although its 
German business remains profitable. The outlook for the automotive industry for 
the remainder of 2009 continues to be uncertain and the Board will take further 
action as required. 
 
 
Trading in Acertec Construction Products has started the year in line with 
expectations. The divisional management team has made good progress to improve 
the division's margins and cash flow following the disposal of its steel 
reinforcement operations in September 2008. 
 
 
The Group is in constructive discussions with its banking syndicate in relation 
to an extension to the term and quantum of its revolving credit facilities which 
expire on 31 October 2009. 
 
 
- Ends - 
 
 
Enquiries: 
+-----------+---------------+ 
| Acertec   |  01743 452621 | 
| plc       |               | 
+-----------+---------------+ 
| David     |               | 
| Hussey,   |               | 
| Executive |               | 
| Chairman  |               | 
| Steve     |               | 
| Kynaston, |               | 
| Finance   |               | 
| Director  |               | 
+-----------+---------------+ 
|           |               | 
+-----------+---------------+ 
| Hawkpoint | 020 7665 4500 | 
| Partners  |               | 
| Limited   |               | 
+-----------+---------------+ 
| David     |               | 
| Renton    |               | 
+-----------+---------------+ 
|           |               | 
+-----------+---------------+ 
| Weber     | 020 7067 0700 | 
| Shandwick |               | 
| Financial |               | 
+-----------+---------------+ 
| Nick      |               | 
| Oborne    |               | 
| /         |               | 
| Clare     |               | 
| Perks     |               | 
+-----------+---------------+ 
 
 
 
 
Notes to Editors: 
Acertec is comprised of two divisions, Stadco and Acertec Construction Products 
(formerly BRC). Stadco is a leading supplier of body-in-white pressings and 
sub-assemblies to automotive OEM's in the UK and Germany. Acertec Construction 
Products supplies high performance engineered solutions for the mining, civil 
engineering, building and security industries. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 TSTUKVVRKBRUAAR 
 

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