Eleco financial position 'strongest for years'

Concrete products firm Eleco has finished in its "strongest financial position for many years", according to a pre-close trading update for the year ended 30 June 2008.

Eleco predicted a record turnover as it reported it has been relatively safe from the problems in the housebuilding sector, with only 14% of group turnover derived from the UK and Irish housing markets.

It said it had seen a "strong performance" from its expanded precast concrete infrastructure products, particularly in student accommodation, budget hotels, flood defence and agricultural storage.

John Ketteley, executive chairman of Eleco, commented: "Eleco has only limited exposure to the UK and Irish housing markets and the main thrust of our acitivies is now in the manufacture of precast concrete infrastructure products and building systems in the UK, Sweden and Germany."

"As a consequence, Eleco finished the year to 30 June in its strongest financial position for many years."

The company said cash generation was strong and net cash balances of £6.5m at 30 June were higher than market estimates. Its £14.5m of committed unsecured medium term bank facilities remain undrawn.