27 June 2012 – trading update

At today’s AGM, the company will report that sales in the first five months of the year have been ahead of 2011 and in line with expectations.  Weakness in Brazil and China has been compensated for by a better performance in North America, the UK, Chile and Australia.  However, there is some concern that the problems in the eurozone may affect order books later in the year whilst the disruption to the manufacturing facility at Finale Emilia following the earthquake there has disrupted production.  However, the shre price has dropped back over recent weeks and now largely discounts these issues.  Nevertheless, we downgrade to HOLD.