Re-financing package for Wagon

Unveiling results for the year ended 31 March that saw and increase in revenue to £715 million (£710 million last time) and a previous £99.4 million loss reduced to a £1.9 million loss, group chief executive Jürgen von Heyden (pictured) said it had been a year of encouraging progress for Wagon. “Revenue has benefited from higher than expected volumes and from new model programmes coming on stream, continued von Heyden. “Importantly for the year 2009/2010 and beyond, we have achieved much stronger order intake - some 30% higher than the previous year - with contracts being won from existing and new OEM customers. At the same time, we have completed the restructuring programme within plan." While the current year would be affected by changes in OEM schedules and model changeovers, together with general expectations of lower market demand, the recent strong order intake and the management action being taken were expected to deliver benefits from 2009/10, von Heyden explained. In a separate announcement Wagon revealed a series of proposed refinancing measures that it said would enable it to invest in engineering and capital expenditure in support of a number of attractive new contracts recently secured, and to place the Group in a stronger financial position to continue pursuing our strategy. The proposed re-financing initiatives include a new debt facility; a 10 for 1 rights issue and a proposed sale and leaseback of two freehold German properties to raise approximately €32. Turning back to the 30% hike in order intake, von Heynen said many of the contracts won were for longer terms than normal passenger vehicles and included contracts with existing customers, as well as new customers. They included roll-formed structural parts for Iveco’s Daily and Eurotracker commercial vehicles; fine-blanked components for Honeywell’s turbo charger and brake pad business; advanced comfort systems for electrical blinds and cargo management for BMW; the first orders to be secured for many years with Porsche for bumper systems; and body in white programme nominations on the next generation Astra for GM. The business had been rearranged into four business groups: Closures and Mechanisms; Roll Formed Solutions; Body in White; and Advanced Comfort Systems Wagon said its lean manufacturing programme had continued to deliver significant operating improvements including savings of 9% of direct factory labour through Hoshin & Total Productive Maintenance ("TPM") workshops and standardised work programmes held in its plants; its Safety at Work programme, with a further 32% reduction in lost time accidents; a 20% reduction in internal scrap; and reduction in stocks.