European Metals Holdings Regulatory News (EMH)

20 Apr 2005 15:30

European Motor Hldgs PLC20 April 2005 EUROPEAN MOTOR HOLDINGS plc ("the Group") STATEMENT REGARDING MG ROVER Following the appointment of administrators to MG Rover Group Limited, the Boardhas decided to make an exceptional charge in the Group's financial statementsfor the year ended 28 February 2005. This exceptional charge relates to areduction in the estimated realisable value of MG Rover stocks and debtors heldby and owed to the Group at that date and is estimated to be £0.6 million. Of the Group's 37 franchises, only two are MG Rover franchises. Thesedealerships accounted for turnover of £22 million in the year ended 28 February2005 and made an operating loss of £0.2 million in that period. The alternatives available to the Group with regard to the two dealerships arecurrently being considered. It is likely that there will be a furtherexceptional charge in respect of asset writedowns and closure costs in theGroup's financial statements for the year ending 28 February 2006, which is yetto be quantified. A further announcement will be made in due course when thesituation has become clearer. However, the Board does not consider that theeffect on trading for the year ending 28 February 2006 will be significant. As previously announced, the preliminary results for the year ended 28 February2005 will be released on 27 April 2005. Enquiries: European Motor Holdings 01491 413 399 Richard Palmer Ann Wilson This information is provided by RNS The company news service from the London Stock Exchange