CUC Centurion Ele

RNS Number:2627J
Centurion Electronics PLC
02 March 2005



2 March 2005

                           Centurion Electronics plc

                                 Trading Update

The Board of Centurion Electronics plc ("Centurion" or the "Company"), the UK
market leader in the field of in-car audio-visual entertainment, is pleased to
announce that, despite challenging retail trading conditions over the Christmas
period, current orders are at a level which leads the board to anticipate that
the performance for the year to 30 September 2005 will be broadly in line with
market expectations after adjustment for certain non-recurring items referred to
below.

Orders from certain of the Company's high street retail clients were lower than
anticipated during the first four months of the year, which include the
important Christmas trading period. However, the Company has seen a significant
increase in orders in the last few weeks and prospects are significantly
improved. At the same time the sales generation resulting from Centurion's
expansion into Europe, which was announced last year, is now generating
significant new sales orders.

However, the lower level of sales has resulted in the Company carrying higher
levels of stock than forecast. This has been compounded by certain issues that
the Company has identified in its supply chain management, most significant of
which being inaccurate stock purchase procedures, which have led to a potential
stock write down in the current year which is expected to be up to #1.4m. These
issues are being addressed by Stephen Benger, the interim Supply Chain Director
appointed in November 2004. The appointment of Keith Davis as full time Supply
Chain Director was announced on 31 January 2005.

The full impact is still being assessed by Management and further details will
be given as soon as possible.

Discussions with a number of car manufacturers are continuing in expectation of
orders for incorporation in new models later this year and beyond, as well as
further orders for existing models. The Company hopes to announce further
details shortly.

The Board emphasises that despite the supply chain issues outlined above the
underlining performance of the business is strong and there will be no on-going
negative impact on the Company's results.

Chris Rhodes
Centurion Electronics Tel: 01707 330550

Russell Cook
Charles Stanley & Co. Ltd Tel: 020 7739 8200

Jeremy Carey / Claire Melly
Tavistock Communications Tel: 020 7920 3150



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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