Corac Group Trading Update and Notice of Final Results

RNS Number : 1730A
Corac Group Plc
17 February 2014

 

 

17 February 2014

CORAC GROUP PLC

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 Update

 

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 CO2 scrubbing 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."

 

Ends

For further information please contact:

Corac Group plc

www.corac.co.uk

Phil Cartmell, Chief Executive Officer

01753 285 800

Jon Carter, Chief Financial Officer

 

Cenkos

 

Ivonne Cantú / Elizabeth Bowman - Nomad

020 7397 8980

Jeremy Warner-Allen - Sales

 

MHP Communications

020 3128 8100

Reg Hoare / Vicky Watkins / Naomi Lane

 

NOTES TO EDITORS

Corac is a group of innovative UK based engineering companies, active in energy and environmental technologies. Group companies produce valuable solutions in compression systems, atmosphere management and heat exchangers for government, energy and industrial users. It has traded shares on the London Alternative Investment Market (AIM) since July 2001.


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