Chloride confident of in-line full year after order book grows in Q3

Secure power specialist Chloride Group (LSE: CHLD) said it maintained the positive trends of the first half through the third quarter of the financial year, as the company added further to the order book. In the four months from 1 October 2009 to date, Chloride's performance was in line with expectations and it is confident in the outturn for this financial year.

"Trading in the first nine months has been in line with the board's expectations, demonstrating the resilience of the business in a challenging market environment, Chloride chief executive Tim Cobbold said, Secure power remains an essential requirement for business continuity globally, underpinning our confidence in the long term growth characteristics of our markets".

The company said its total sales benefited from favourable foreign exchange rates and it also increased its service revenues organically. The strategy has focused on developing a more balanced international business in the current financial year, during the quarter it made investments into higher growth potential markets, Chloride said.

In Q3 Chloride expanded its businesses in the Energy and Infrastructure sector, acquiring privately held French business Automatismes Energie Electroniques Systemes (AEES), and Emergency Power Systems (EPS) in the UK. AEES is a leading secure power supplier to the French and international energy markets, while EPS operates in the rail and underground networks in the UK. According to the statement, cash generation was strong which partially offset the increase in debt, resulting from the acquisitions during the period.

Looking forward, the company said whilst it has taken confidence from its good order book coverage, it still remains cautious about the overall economic environment.  http://www.proactiveinvestors.co.uk/companies/news/12924/chloride-confident-of-in-line-full-year-after-order-book-grows-in-q3-12924.html