AEA Technology PLC : Trading Statement

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RNS Number: 8983H
AEA Technology Group PLC
18 July 2012

At the time of the publication of the Group's interim results on 30 November 2011, the Company announced that, following the expected reduction in adjusted operating profits announced on 16
November 2011, the Group had secured the approval of Lloyds Banking Group (the "Bank") to amend its financial covenants for 2012 and therefore was able to continue to access its banking facilities. Notwithstanding this, at the same time, the Company highlighted the on-going need to complete the negotiation of banking covenants for 2013 during the course of 2012.
As reported in the Company's interim results for the six months ended 30 September 2011, net debt and net liabilities in respect of retirement benefits, as at 30 September 2011, were £34.3m and
£165.5m respectively.
On 20 January 2012, the Company announced a further significant adverse impact on adjusted operating profits for financial year 2012 and reported that the Bank remained supportive of the Group.
Since that date, the Bank has remained supportive of the Group's activities while the Board, together with its advisers, have prepared a new strategy and business plan. During this period, the Company has sought to reach agreement with the Bank as to revised facilities, including amended covenants for
2013. At the same time the Company has been holding detailed discussions with the trustee of the Group's defined benefit pension scheme (the "Trustee") with a view to addressing the significant deficit of the scheme and the Group's on-going funding of these retirement benefit obligations.
The new strategy and business plan has now been completed and has been discussed with both the Bank and Trustee. The new strategy and expected operating performance sets out a positive way forward for the Group and its employees, and the actions already taken by the Board to improve operational efficiency have started to deliver results. However, despite constructive discussions with the Bank and Trustee, the Board has been unable to achieve a long term solution to the existing levels of net debt and the significant on-going funding costs of the Group's retirement benefit obligations.
As a result, with the support of the Trustee and the Bank, including short term financial support, the Board has decided to consider all strategic options to realise value. However, the Board does not envisage there will be offers for the share capital of the Company and the Board expects that such options will result in little or no value for shareholders.
The Company will provide a further update in due course.
For further information:

Dr Paul Golby, Chairman John Lowry, Interim CEO Kevin Higginson, CFO

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