Last checked at 19 Jun 2008 11:36
19 June 2008
TG21 plc
("TG21", "the Company" or "the Group")
Pre Close Trading Update
TG21, the vehicle installation service provider supplying public transport CCTV and other monitoring systems, today issues the following pre-close trading update:
Further 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.
The 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.
The 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.
Despite these disappointments, cash flow has held up well and net debt has been maintained at under £1m.
TG21 plc expects to announce its interim results for the six months ended 30 June 2008 in the first week of August 2008.
Ends
For enquiries please contact:
Peter Ward, Chairman
Nick Grimond, Chief Executive
Wilson Jennings, Finance Director
TG21 plc Tel: 020 8710 4016
Graham Webster
Daniel Stewart & Company plc Tel: 020 7776 6550
Barnaby Fry/Sarah Richardson
Hogarth Partnership Tel: 020 7357 9477