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Centrotec warns of 'more difficult' 2009

German based boiler manufacturer and renewables specialist Centrotec expects 2009 to be “much more difficult” after seeing a downturn in business in the UK, Russia and Spain.

In a trading update the company said organic growth was 17 per cent over the past year with revenues around €476million.

The company – with brands including Wolf, Ned Air, Brink Climate Systems and Solara – also said earnings before interest and tax would be on target at between €32million and €34mill.

But, a statement said the company had seen the first impact of the recession in December.

The company said: “Investment activity in Russia, Spain and the UK was down, in some cases quite markedly so. Updated estimates envisage a sharply reduced level of new construction activity in 2009 in the core markets Germany and the Netherlands.

“Uncertainty about the underlying economic situation is therefore greater than ever.

“In view of the financial and economic crisis, Centrotec expects the market context as a whole to be much more difficult in 2009.”

Centrotec said the past year has seen strong growth in the core markets of Germany and the Netherlands with strong demand for energy-efficient condensing boiler systems and renewable energy systems - specifically solar thermal systems.

It said despite the pressure on new house building the various economic rescue packages launched by European governments and their emphasis on developing the green economy indicated opportunities.

The statement said: “As a result of the continuing urgent need to act on climate change and the economic recovery programmes that have been launched in many European countries there is scope for Centrotec's energy-saving solutions to benefit from a stimulus in 2009.

“The many new products and forthcoming market launches, coupled with the greater international range of sales channels, create further fresh growth potential.”

The company will publish its annual accounts on March 26.