ELECO plc

 ("Eleco" or the "Group")

TRADING UPDATE FOR YEAR ENDED 30 JUNE 2008

"Record Turnover and Operating Performance will at least meet Market Estimates"

Eleco plc, the specialist provider of building systems, infrastructure products and software, today issues a pre-close trading update for the year ended 30 June 2008.

The Board is pleased to report that trading remained strong throughout the second half of the current financial year. Accordingly, turnover and operating performance for the year is expected to be at record levels and at least in line with market estimates. 

The Group maintained its overall strong performance assisted by a number of factors, including:

• A strong performance from our expanded precast concrete interests supplying products to the student accommodation and budget hotel markets; and to the flood defence, agricultural storage, waste recycling and water industry markets; 

• Limited exposure to the UK and Irish housing markets - only 14 per cent of Group turnover is derived from these markets.

• A significant improvement in profit from our software interests in the UK, Sweden and Germany. 

Cash generation was again strong and net cash balances of £6.5m at 30 June 2008 were significantly higher than market estimates; the £14.5 million of committed unsecured medium term bank facilities, negotiated in June 2007, also remained undrawn.

John Ketteley, Executive Chairman of Eleco plc, commented:

Eleco has only limited exposure to the UK and Irish housing markets and the main thrust of our activities is now in the manufacture of precast concrete infrastructure products and building systems in the UK, and in construction software in the UK, Sweden and Germany. As a consequence, Eleco finished the year to 30 June 2008 in its strongest financial position for many years. The Board is therefore confident that Eleco is well placed to deal with increasingly difficult trading conditions anticipated in some of the markets we serve and to take advantage of opportunities as they arise."

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