The Group expects to report turnover and EBITDA in line with expectations at approximately £97 million and £8.8 million respectively, and pre-tax and pre-goodwill profits in the order of £6 million. Net debt at 31st December 2008 was approximately £18 million, a reduction of £4 million since 30th June 2008. The Group expects net debt to reduce further in the first half of 2009 due to on-going projects and continued working capital initiatives.
The Group is also pleased to report that it has secured a new three year contract with BT to provide professional sales services to expand BT's contracted PBX (Private Branch Exchange) maintenance revenues. This agreement is expected to generate several million pounds worth of new maintenance contracts, some of which will be supported by Servassure under its existing third party maintenance programme with BT.
In addition, the Group has started the year with a strong order book and expects to shortly announce further major contracts wins from its Servassure division. The Group remains focused on effective working capital management with all new business underpinning this strategy by being working capital positive.
On 3rd November 2008, the Group announced that it had received unsolicited potential interest in one of its subsidiaries. Since that time, interest from additional parties has been received and the Group has made significant progress on this possible disposal. The Group will provide a further update on this in due course.
The Board is delighted with the Group's strong start to 2009 and remains confident of its future prospects.
Alex Tupman, CEO commented:- "Our trading update is accompanied by a three year contract win with BT worth several million pounds and a pipeline of new business, which is significantly stronger than this time last year. I believe that these contract wins demonstrate the strength of the Group's brand and quality of service and it is especially pleasing to note that the recent investment in our Servassure division has delivered results beyond our expectations. Whilst we remain mindful of the prevailing economic climate, the Group has made a very strong start to the year and we remain confident of the Group's long term prospects."