Last checked at 1 Jul 2011 07:00
For Immediate Release
Aukett Fitzroy Robinson Group Plc (the "Group")
Litigation Update
As previously announced, the Group is owed £835,000 (net of recoverable VAT) in respect fees, VAT, costs and interest resulting from legal judgments in the litigation connected with the formerly proposed redevelopment of the several neighbouring properties on Piccadilly in Central London.
The Group has a security charge over the properties ranking below the first charge holder which is one of the UK's biggest banks. In 2010 the bank appointed one of the UK's leading property consultancies as receiver to sell the properties.
We have now been informed by the receivers that they have exchanged contracts to sell the properties and that the agreed sale price is less than the amount which the bank as first charge holder claims they are owed. In these circumstances the directors believe that the Group would be unlikely to recover the amount it is owed. The Group is in discussions with its legal advisers to clarify the situation.
Accordingly the directors are no longer confident that the amounts owed are fully recoverable, and therefore currently expect to make a full provision for this exceptional item in the financial statements for the year ending 30 September 2011.
In the announcement of interim results for the six months ended 31 March 2011 the Group said that, providing our current projects proceed as expected, the Group should return to profit in the second half thereby helping to reduce the full year loss. This continues to be true of current trading performance prior to the inclusion of this exceptional item.
A further announcement will be made in due course.
Enquiries
Aukett Fitzroy Robinson - 020 7843 3000
Nicholas Thompson, Chief Executive Officer
Duncan Harper, Group Finance Director
finnCap - 020 7600 1658
Corporate Finance Clive Carver / Rose Herbert
Corporate Broking Simon Starr / Stephen Norcross
Hermes Financial PR
Chris Steele - 07979 604687
Trevor Phillips - 07889 153628