Last checked at 15 May 2009 14:31
15 May 2009
AIM Investments plc ('the Company' or 'AIM Investments)
Trading Update
Background
Further to the Trading update made on 19 March 2009, the directors of AIM Investments wish to update shareholders on the trading of the subsidiaries recently disposed of to the previous directors of the Company.
Under its former name of Medsea Estates Group Plc, the Company previously updated shareholders on 19 Match 2009 regarding trading conditions. The trading operations of the Company were disposed of recently by the sale of Medsea UK Ltd which controls the underlying operation of the estate agency businesses in Spain and Italy. The sale was described in detail in the announcement made on 8 May 2009.
To avoid confusion, the Company no longer has any interest in the trading operations of Medsea UK Ltd except for the deferred consideration that may be payable as described in the announcement on 8 May 2009.
Trading Update by Medsea UK Ltd
This trading update follows a recent trading update as at 19 March 2009. The Board of Medsea UK Ltd provides the market with the following update on the trading and position of group companies.
Medsea UK Ltd had unaudited sales in the region of £223,000 and achieved a breakeven point for the 4 months for the period from the 1 January 2009 to 30 April 2009. Cash balances as at 30 April 2008 stood at circa £119,000, however, they have been reduced to approximately £12,000 as of 30 April 2009.
Tony Gatehouse, Co-acquirer of Medsea UK Ltd, commented:
"As the downturn in the lifestyle property sales takes a greater grip, the trading entities in Spain are in the process of restructuring their trading operations and are moving forward with the intention of working closely with well known promoters in all areas covered by the company to assist in selling the substantial distressed properties held by the promoters.
Switching the business model to making direct distressed property sales to investment funds and fund managers will require less staff. This will lead to the downsizing of Medsea UK Ltd and hopefully higher profit margins with less overheads."
AIM Investments plc will not be reporting on the activities of Medsea UK Limited nor any of its trading subsidiaries from the date of disposal being 30 April 2009. Any queries in relation to the operations of Medsea UK Ltd should be directed at Tony Gatehouse or Juan Carlos Rodriguez Martinez on +34 96 570 4002 or Medsea@medsea.org
Change of Accounting Reference Date
The board announces that it intends to change the Company's accounting year-end to 31 May. This change is intended to reflect the recent disposal of the operating businesses and it change of status to that of an investing company. This change will be put into immediate effect.
The next audited accounts will report for a period of 17 months to 31 May 2009 rather than to 31 December 2008. The company anticipates releasing the audited accounts for the period to 31 May 2009 no later than 31 July 2009.
The strategy of AIM Investments
The Company has adopted a new strategy to invest in profitable companies in emerging economies in particular from Brazil, Russia, India and China. The Company will seek to complete a transaction within 12 months that may result in a reverse takeover as defined per AIM rule 14. The Company will seek consent of the shareholders on an annual basis to renew or change the strategy. The Company will seek to invest in a passive capacity. The incoming directors will form an investment committee to review opportunities and associated due diligence in advance of progressing specific opportunities.
For further information:
| Andrew Meikle/Alexandra Eavis/Alberto Gil AIM Investments plc www.aiminvestmentsplc.com | 08702 701 111 |
| Zimmerman Adams International Ltd Ray Zimmerman/David Newton/Jonathan Evans | 020 7060 1760 |
| Media enquiries: Threadneedle Communications Alex White | 020 7653 9859 |