CTEA.L Regulatory News (CTEA)

21 May 2007 07:00

Milestone Group PLC21 May 2007 MILESTONE GROUP PLC Management Changes AIM listed Milestone Group PLC ("Milestone" or the "Company") announces changesto its Board structure in order to create a 'clean' holding company as the groupenters the final stages of its strategic review. In order to reduce management costs, Chief Executive, Andy Craig, has agreed toallow his existing service contract to be terminated as of 18 May 2007 but toremain on the Milestone Board serving as a non executive director. Separately,MGH Investments Limited, a consultancy company controlled by Andy Craig, hasbeen contracted to provide corporate finance advice to the Company until thecompletion of the group's strategic review. The aggregate amount payable to AndyCraig and MGH Investments Limited under the terms of these compromise,consultancy and non-executive arrangements is £155,000. Similarly, the Company's Finance Director, Brian Chester, has agreed to allowhis existing service contract to be terminated as of 18 May 2007 but to remainon the Milestone Board serving in the capacity of part time Finance Director.Separately, ChesterBrown Limited, a company controlled by Brian Chester, hasbeen contracted to provide ongoing consultancy services to the Company until thecompletion of the group's strategic review. The aggregate amount payable toBrian Chester and ChesterBrown Limited under the terms of these compromise,consultancy and directorship arrangements is £121,000. Milestone Chairman, John Sanderson, said: "Milestone's management team have worked hard over recent times to implement thegroup's strategic review and to identify new opportunities for the Company.Whilst the Board is in advanced stages of completing this strategic review, ithas decided to put in place new arrangements which are designed to retain theservices of the Company's senior management whilst effectively eliminating theCompany's exposure to long term salary commitments. As such, the Board is wellplaced to conclude its ongoing discussions regarding the potential enlargementof the group." The new arrangements with Andy Craig, Brian Chester and companies associatedwith them have been independently reviewed by Milestone's two non-executivedirectors. The non-executive directors, having consulted with the Company'snominated adviser, Arden Partners PLC, believe the agreed terms to be fair andreasonable insofar as the Company's shareholders are concerned. For further information: MilestoneJohn Sanderson Tel: 020 7580 2444 Arden PartnersRichard Day Tel: 020 7398 1632 This information is provided by RNS The company news service from the London Stock Exchange