Business
Pre Close Trading Update
Pre Close Trading Update.
About this update from Tekmar Group Plc
[{"type":"text","content":"\n RNS Number : 0867X TG21 Plc 19 June 2008 \n \n19 June 2008\n\nTG21 plc \n\n('TG21', 'the Company' or 'the Group')\n\nPre Close Trading Update\n\nTG21, the vehicle installation service provider supplying public transport CCTV and other monitoring systems, today issues the following pre-close trading update:\n\nFurther to the Company's AGM trading update on 13 May 2008, the repositioning of TG21 into public transport CCTV and monitoring systems has continued to progress well and the Company intends to invest more resource in this business in the second half of this year. \n\nThe Company has, however, seen a further decline in its legacy audio insurance replacement business and the initial growth in its embryonic black box motor insurance business in the first quarter has since stabilised significantly below anticipated volumes.\n\nThe Company anticipated that sales in the mature audio insurance replacement business would fall again significantly this year in line with the general decline in the in-car audio insurance replacement market. However, sales in this sector for the second quarter of the year have fallen more rapidly than projections and the Company believes this trend will continue. Moreover, demand for black box installations for the fleet insurance market is falling well short of the volumes forecast at the start of the year by the insurance industry and the Company now does not expect sales to grow in the second half of this year. \n\nDespite these disappointments, cash flow has held up well and net debt has been maintained at under £1m.\n\nTG21 plc expects to announce its interim results for the six months ended 30 June 2008 in the first week of August 2008.\n\n\nEnds\n\nFor enquiries please contact:\n\nPeter Ward, Chairman\nNick Grimond, Chief Executive\nWilson Jennings, Finance Director\nTG21 plc &nb...