Flomerics Group PLC
27 March 2008
Flomerics Group PLC
("Flomerics" or "the Company")
Update
Flomerics, the global supplier of specialist simulation software for electronics
and fluid flow simulation, is today providing an update on its operational plans
and outlook for 2008 and beyond in the light of the recent changes in
shareholdings in the Company.
Flomerics' strategy remains to be a leading provider of software simulation
solutions to the worldwide engineering design market. Flomerics' software
solutions are targeted at the world electronic thermal management and fluid flow
software markets.
These markets are growing strongly and the Company believes it has significant
opportunities for growth. For example, data published by Global Industry
Analysts, Inc.(1) indicates that the world electronic thermal management
software market will continue to grow by 10% per year over the next five years.
The Company's electronics cooling business is well positioned to benefit from
this growth, particularly in Asia and the Far-East, which has seen strong growth
in recent years.
Similarly, the computer-aided engineering industry is expected to grow at a
compound annual growth rate of 12% through 2009(2). The Board believes
Flomerics' products can outperform this average market growth rate due to the
competitive advantages offered by its products. Strong growth has already been
seen for the Engineering Fluid Dynamics (EFD) product range in 2007 and into
2008.
The investment in sales and marketing in 2007, aimed at accelerating revenue
growth particularly from the EFD product range (acquired as part of the
acquisition of Nika GmbH in 2006) is beginning to show positive results. This
reinforces the Board's confidence that 2008 revenues will show considerable
improvement over 2007.
Flomerics has cash balances of approximately £5.0m compared to £2.7m as at 31
December 2007, and the Company is well funded to undertake the investment needed
to deliver its strategy. Following on from the acquisitions of MicReD in 2005
and Nika GmbH in 2006, additional growth through targeted acquisition remains an
important focus for the Company. The board continues to review potential
candidates against its strategic and financial targets.
The Company expects to announce its preliminary results for 2007 on 29 April.
Enquiries:
Flomerics Group plc +44 20 8487 3000
Gary Carter, Chief Executive
Keith Butcher, Finance Director
Conduit PR +44 20 7429 6604
Christian Taylor-Wilkinson, Charlie Geller +44 7970 067320
Oriel Securities Limited +44 20 7710 7600
Nominated Adviser
David Arch
Andrew Edwards
For further details regarding the source information used in this announcement
please contact Charlie Geller, Conduit PR, on 0207 429 6604
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(1) Source: PRWeb
(2) Source: Daratech Inc
This information is provided by RNS
The company news service from the London Stock Exchange