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Clyde Process Solutions

  • BY: Andrew Hore |
  • POSTED: 07/02/2009 |

Clyde Process Solutions has received one of its largest ever orders and it will provide a strong start to the next financial year.

The materials handling systems designer and supplier has gained a £9.3m order for a North American food ingredients and sugar products supplier. Clyde had previously talked about margins on contracts coming under pressure but there was no indication about the margins on this particular contract.

This is welcome news given the profit warning in January which indicated that profits in the year to February 2009 will be around £2m lower than originally forecast. This will be offset by a £1.6m exchange rate gain on the value of an inter-company loan.

The weak steel market has led to investment being postponed. As a consequence of this Clyde has decided to conserve its cash and not pay a final dividend.

Costs are being reduced and the workforce is being cut by 5%. Credit controls are being vigilantly enforced. 

On 29 January, non-executive director Ian Lee bought 20,000 shares at 25.5p a share, taking his stake to 30,000 shares.

At 24p a share, Clyde is valued at £9.69m.

A trading statement is planned just before the February year end. 

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