LONDON (Alliance News) - Corac Group PLC shares rose early Tuesday after the company said its trading during 2014 will be ahead of expectations, after a strong performance across the business.
The specialist engineering company said it expects its results for the year to December 31 to come in ahead of its expectations, with a narrowed loss, an improved cash position and a robust order book at year-end.
Corac expects a further improvement in performance in 2015 on the back of the discontinuing loss-making legacy gas compression projects. The group refocused its operations towards the aerospace and defence sector and the energy and process sector over the year and is still in the process of reviewing its downhole compression and in-hole application contracts to ensure economic conditions in the oil and gas sector maintain the viability of the projects.
The company also said it is to invest GBP0.8 million in buying an unnamed Manchester-based fabricator, funding from existing cash resources. It will integrate the business into its other activities in the north west of England.
"Corac made good operational and commercial progress in 2014; trading is expected to be ahead of expectations with a reduced loss, robust net cash and an increased order book," said Corac Chief Executive Phil Cartmell.
"In line with our strategic planning, the group is successfully restructuring towards its core customer sectors and gaining maximum value from them. Business efficiencies and exit from costly legacy projects, have put us for the first time in a sustainable financial and operational position from which to achieve growth and improved performance," Cartmell added.
Corac shares were up 14% to 4.41 pence on Tuesday morning, one of the best performers in the AIM All-Share index.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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