CDE Conder Env.

RNS Number:8174P
Conder Environmental PLC
11 March 2008



Conder Environmental plc

("Conder" or "the Company")



Trading Update



Conder Environmental plc, the AIM traded provider of products and services for
water and wastewater treatment, pumping solutions and SUDS (Sustainable Urban
Drainage Systems) announces a trading update for the year ending 30 April 2008.



Trading

At the time of releasing our interim financial statements in December 2007 we
highlighted that certain areas of our market were weakening which could lead to
the group generating a loss for the full financial year.



The customary third quarter seasonal downturn has now taken place but it has
been worse than expected and the recovery much slower than normal.  At the same
time, market conditions deteriorated significantly from December through to
February and are only now beginning to show some signs of recovery.  Our sales
of commodity products, including separators and package sewage treatment plants
have been hardest hit as market demand has diminished.   Further, orders for
large and identifiable technical schemes have also been subject to delays.  We
anticipate that these orders will still be won, however, given the delay, the
benefit will only be realised in the next financial year.



The previously reported increases in input costs of resin, glass and product
distribution on the back of the high oil price remain.  Our internal effort to
mitigate these cost increases through lean manufacturing improvements continues
and the tangible benefits of this are now being seen.  The overcapacity of
supply of product in our marketplace continues to limit our ability to pass on
cost increases to customers.



These factors have resulted in a significantly weaker December to February
trading position than was expected.  We have seen some signs of improvement
during March, although combined with the delayed placement of larger orders, the
group does not anticipate being able to recover the accumulated losses.
Consequently, trading for the year ending 30 April 2008 is expected to result in
a greater loss before tax than market expectations.



Working Capital

The cash impact of the above losses has been substantially mitigated by the
receipt of the deferred proceeds from the disposal of Vikoma in 2007 and the
cost cutting measures that we are implementing.  The group remains capable of
working within its existing funding facilities.





Outlook

The redesign of the Conder Products commodity range has been completed and since
January 2008, further distribution agreements have been secured with major
merchants, providing the group with access to the majority of the UK merchant
market.

The launch of the Techflo SAF (Submerged Aerated Filter) product range has been
well received in its market place and is expected to show substantial growth
going forward.

Conder Pumping Solutions, teamed with Grundfos, has launched a comprehensive
range of package pump stations and is rapidly establishing a position in this
market.

When combined with the growing Hydroserve service business these improvements
have underpinned the growth in revenue in the current year and provide a solid
platform for growth in the future.




For further information please contact:

Conder Environmental plc                      Tel: 01420 470811
Graham Setterfield                            Chairman
Jon Varney                                    Managing Director
David Griffith                                Finance Director

Shore Capital - Nominated Adviser to Conder Tel: 020 7408 4090
Dru Danford






                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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