Crimsonwing plc

Crimsonwing plc

In an interim statement published on February 19, 2009, Crimsonwing plc stated that due to the financial markets turmoil during the third quarter it has been dealing with difficult trading conditions and this challenge has continued in the final quarter of the financial year. Overall, and before exchange rate effects, the Crimsonwing business units will show a combined operational profit for the year of circa €100,000, and this includes an allowance for losses of around €400,000 at VDA (acquired in July 2008). All the business units (apart from VDA) are profitable, despite the difficult global economic conditions.

The further weakening of the UK Sterling against the Euro in Q4 has compounded the effect of the general economic downturn that could have a material impact on the Group’s profitability. Unless there is significant recovery in the exchange rate scenario over the remaining two months until the Group’s financial year-end it is likely that the Group will make a loss of circa €400,000 on exchange that will result in the year-end position of Crimsonwing plc reporting losses of around €300,000 overall.

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