Exceptional items totalling £10.1 million forced Ultraframe to a £7.1m operating loss on £96.7m turnover for the 52 weeks ended 30 September 2005. Turnover decreased by £54.5m. The board of the conservatory systems specialist is not proposing a final dividend for 2005.

The £10.1m gross charge includes £6.0m in respect of UK litigation with Burnden, and £0.5m in incremental financing costs, directly related to the provision of collateral for the ongoing US litigation involving Patio Enclosures. It also includes £2.8m relating to product rectification costs in respect of Ultraframe’s North American business and Group wide redundancy costs of £0.8m.

Rod Sellers, Chairman, commented: ‘These results reflect the tough UK market conditions, which are likely to remain so in the near term. We continue to focus the UK business on long term market trends and to position the Company to defend and build its market leadership. We are pleased that the US business has returned to profitability as a result of the business turnaround plan and is well positioned to build market awareness and take advantage of the potential the US market offers.’

Against a background of the Group’s performance and outlook, the Board has appointed Rothschild to assist the Group with a strategic review to explore options for the Group.

Source

Glass Age