AGI restructures to combat poor trading conditions
Manufacturer of value-add glass and aluminium products, AG Industries issued a cautionary on Monday, 8 June 2009, saying it is in the process of a major restructuring which includes reducing the group's cost base to place the group on a firm foundation.
The plan also includes the potential disposal of non-core assets, it said.
The group said that trading conditions have deteriorated markedly since the company's interim announcement, published on 9 March 2009, particularly in the residential construction sector in which the group operates.
"This deterioration has had a negative impact on the Group's operating results and cash flow. As a result of this slowdown, headline operating profits for the 9 months ended 31 March 2009 have decreased to a loss of approximately R14.6 million as compared to the headline operating profit of R12.2 million for the 9 months ended 31 March 2008," AGI stated.
"Management does not expect any significant improvement in the trading conditions for the remainder of the current financial year," the group added.
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