Corac Group Trading Update and Notice of Final Results
Corac Group plc, the innovative, technology-led engineering group, serving the global oil and gas, defence and industrial markets announces a trading update for its financial year ended 31 December 2013 and notice of results.
Trading in the year is expected to be ahead of expectations with a reduced loss across the Group's activities. The Group entered 2014 with an enhanced order book and an encouraging pipeline of prospects.
Cash and cash equivalents at the year end stood at £13.7m, which includes the proceeds of the Placing and Open Offer in December 2013 which raised £10.8m net. This additional funding is expected to enable the Group to accelerate the commercialisation of CET's technology and certain other projects and thereby build the future value of the Group.
Corac Energy Technologies (CET), the innovative developer of advanced turbo compressors, expanders and related products achieved a number of significant technical milestones during the year. Its compact compressors were proven in customer tests both with industrial process gases in the UK and in methane at CET's proving ground in Cumbria and far underground in a live gas well in Texas. The compressor technologies are expected to progress to follow-on orders in at least one industrial application area during the course of 2014.
The expander technology has been successfully tested with our partner to generate economic power from waste process gases in a very compact and efficient package. As a result, it is anticipated that commercial orders will be agreed in the coming year.
Atmosphere Control International (ACI) had a strong year, with improved performance through contracts with UK and international submarine builders, in addition to opening new export business for its CO2scrubbing product. Further orders have subsequently been announced both in the UK and abroad including one new export customer, which strengthens the outlook for ACI and the Group.
Hunt Thermal Technologies (formerly Hunt Graham) went through a fundamental business review during the year including a change of management. The business has refocused on its core strengths of large scale heat exchangers with complex thermal and material designs for an international client base in downstream oil and gas and other chemical process industries. The review and refocus led to a strong fourth quarter and a growing order book to carry into 2014.
Notice of Results
The Group's Final Results for the year ended 31 December 2013 will be published on Tuesday 1 April 2014.
Phil Cartmell, Chief Executive Officer said:
"The Board is very encouraged by the successful tests and contract wins achieved during 2013. Product development at CET has passed a number of technical hurdles to demonstrate readiness for commercial orders in the coming year. The acquired businesses have consolidated their performance in the second half and are now revealing the growth potential we anticipated when they joined the Group in 2012."