Associated British Engineering PLC
17 September 2001
Annual General Meeting Statement and Results of Meeting
The year has started slowly in our original diesel business but this is in line
with previous years. We are pleased to report that Kelvin has been fully
integrated and its sales have performed according to our expectations.
Unfortunately, we were unable to complete the restructuring of the
remanufacturing division prior to the 2001 year end and therefore the losses
have continued into the current year. We are continuing to monitor the position
and are still aiming for a profitable second half.
We have made considerable headway in reducing head office costs. However overall
we expect to report a loss for the six months ending 30 September 2001.
We have had questions from Preference shareholders regarding the payment of
dividends. Until we are profitable it is not possible to provide a positive
answer and as the dividends on these shares are now 6 months in arrears the
Preference shareholders can vote at the Annual General Meeting.
The 7% Preference shares are not redeemable and therefore can not be easily
dealt with. The 8% are redeemable and we are currently exploring whether we
could have a small issue of ordinary shares with a view to using the proceeds to
redeem the 8% Preference shares. The Board has not made a decision but believes
that if this can be achieved it would be in the interest of shareholders to
simplify the corporate structure.
All resolutions at today's Annual General Meeting were passed unanimously.
Brewin Dolphin Securities Limited has today resigned as stockbroker to the
company.
17 September 2001
Enquiries:
Mr R A Pearce Gould (Chairman)
Mrs K M Good (Finance Director)
Tel: 01223 873 600