(LTS.L) Litho Supplies PLC Buy/Sell

RNS Number : 6530C Litho Supplies PLC 18 November 2009

Litho Supplies Plc ("Litho Supplies" or the "Company")

Interim Management Statement

18th November 2009

As previously highlighted, the printing industry is a challenging environment in which to operate and this has been compounded by the uncertainty that remains in the economy and financial markets in general.

Lack of available funding continues to be a factor and capital equipment sales are still suppressed. In some cases orders have been secured and subsequently cancelled when customers have been unable to obtain finance. We have however seen an upturn in this area in the last quarter which, in the current climate, is an encouraging sign.

As a result of the economic downturn and the subsequent drop in activity we anticipate that turnover in the second half of the year will be slightly lower than the first half. However with the reduced level of overhead and with careful management of bad debts and working capital the Company expects the overall performance in the second half of the year to be significantly improved.

The Board has continued to respond to the challenges faced and further reorganisation has been undertaken to reduce operating costs and increase efficiencies. This in turn has left the business with a much reduced cost base moving into 2010.

The Company continues to be rigorous in its control processes and tight procedures are in place to manage cash collection and stock levels to assist in the critical area of working capital management.

The Board remains committed to developing the IT infrastructure of the business. Additional resources have been allocated to continue the development of the computer system and further improve the service we provide to our customers through online ordering.

The Mitsubishi partnership agreement, announced in August, has been well received with good performance to date and we anticipate a positive impact on the bottom line during 2009. Actions to develop this area of the business continue with the IPEX exhibition, at the NEC in April 2010, giving a further opportunity to market this and the remainder of our product offering to a wider customer base.

The Board remains committed to steering the Company through these difficult times and is extremely grateful to our suppliers, our customers, our finance providers and our shareholders for their support.

Contacts:

Michael Hammond, Chief Executive Tel: 01332 873921
Lindsay Mair, Astaire Securities Tel: 0207 448 4437

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

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