CUC Centurion Ele

RNS Number:4113K
Centurion Electronics PLC
31 March 2005



31 March 2005

                           Centurion Electronics plc
                         ("Centurion" or the "Company")

                       Pre Close-Period Trading Statement

Further to the announcement made on 2 March 2005 the Board of Centurion
announces that the challenging conditions reported by its retail customers over
the Christmas period have continued through to March. Sales for the six months
to 31 March 2005 are expected to be ahead of the same period last year but will
be lower than management forecast for the period.

The combination of poor UK high street sales and the supply chain management
issues, referred to previously, have given rise to a significantly higher level
stock than forecast. The Company has also experienced significant component
price deflation from an expanding manufacturing base in the Far East, which is
eroding stock values further. The Board announced that the Company was expecting
to report a write down in the value of stock of up to #1.4 million in the
current year. As a result of these factors, and despite an increased level of
activity from certain clients in the UK and in Europe, the Board now anticipates
that a write down of #1.4 million will be reported in the first half figures but
that it may be necessary to make a further write down of up to a further #1.0
million in the second half.

While high street conditions remain uncertain the Board believes that, although
the Company will report profits before tax and stock write down for the year to
30 September 2005 which are ahead of last year, profits will fall below current
market expectations.

The Company anticipates that conditions will improve in the second half. For
example the Company is working closely with Media Markt, a subsidiary of Metro
AG Group and one of Centurion's largest German retail clients, which is
undertaking a National promotion for the popular Plug & Play Blue(R) DVD product
range. During the first week in April Media Markt is undertaking a mail shot
that will be distributed to 27 million households across Germany.

Despite poor retail market conditions, the Board continues to focus on the
successful development of automotive business, which is exceeding expectations.
The Board is pleased to announce that Toyota Motor Marketing Europe has signed a
development request to supply two new European models with bespoke in car
entertainment systems.

In addition, Centurion announces that it has reached agreement with Infosys
Technologies Ltd to provide additional technical resources for the expansion of
the Company's automotive business through Infosys' offshore engineering
services. The Board believes that this will help maintain Centurion's position
as the leading UK supplier of in-car entertainment products to European
automotive manufacturers.

The Board emphasises that despite difficult retail trading conditions the
underling performance of the business remains strong.


Enquiries:

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

END
TSTMGGFFFMKGKZM

Centurion Ele (LSE:CUC)
Historical Stock Chart
From Jun 2024 to Jul 2024

Centurion Ele (LSE:CUC)
Historical Stock Chart
From Jul 2023 to Jul 2024