Trading Performance Clause Samples
Trading Performance. The ION NZ operations continue to operate well with only minor production interruptions, although recent performance has been adversely affected by poor vehicle sales for some models it supplies. Detailed financial forecasts for the ION NZ operations have been prepared, and the Administrators are monitoring the performance of those operations by comparison to forecast. The Administrators do not anticipate there are substantial profit improvement gains to be derived from efficiency improvements or cost savings, prior to a sale in the absence of significant expenditure. The ION NZ operations' recent trading performance (1 December 2004 to 28 February 2005) is detailed below. Sales 27,705 Gross Margin 5,983 Depreciation and Amortisation 1,361 Operating EBITDA 3,080 Administration costs (196) Restructuring 0 EBITDA 2,884 Movement in working capital (10,349) Trading Cashflow (7,465) Capital Expenditure & Research and Development (1,980) Operating Cashflow (9,445) Operating cashflow has been impacted by accelerated payment terms required by Comalco following the appointment of Administrators to the ION Administration Group. These revised trading terms will continue to impact the business unit’s operating cashflow unless the Comalco terms are revised. Funding of AUD $9.95 million has been provided by ION Limited during the reporting period to accommodate the revised Comalco trading terms. This funding by the Administrators was provided under a secured facility. Some unfavourable sales and EBITDA variances were experienced during the reporting period due to production problems caused by tool breakages which impacted on drilling cycle times. Non-essential capital expenditure has been deferred pending a possible sale of the business unit and the Administrators anticipate that the business unit will maintain a positive EBITDA to June 2005.
Trading Performance. The ION US operations' management accounts for the period from 1 December 2004 to 28 February 2005 are summarised below: Sales Depreciation and Amortisation Operating EBITDA Administration costs Restructuring EBITDA Movement in working capital Capital Expenditure & Research and Development The project was put on hold by the Administrators on 7 December 2004 and works recommenced in early February 2005 pursuant to the Administrators’ decision to fund the project. Capital expenditure during the period is in line with forecasts upon which the Administrators’ funding decision was based. The Administrators’ strategy has been to maximise returns to creditors by pursuing sales of ION Consolidated Group’s operations on a going concern basis, where those operations are viable. Given the extent of losses which have been incurred, the need for additional capital, and the necessity of maintaining the confidence of customers and suppliers, it is not feasible to re-organise creditor claims and restore solvency without disturbing the existing ownership of ION Limited, In short, the salvageable operations within ION Consolidated Group need new owners who can provide adequate financial and technical resources to secure their long term future. The ION Energy Services Group was sold by the Administrators as a going concern on 25 January 2005. The Administrators commenced a sale process for the businesses of the ION Automotive Group in January 2005 appointing CSFB as their advisors in this sale process. CSFB were chosen from a number of candidates based on their global reach and experience in the automotive sector, both of which were considered important qualifications. With the co-operation of the directors and management of ION NZ and ION US the sale process also includes the operations of those entities.