Engage Xr Regulatory News (EXR)

28 Jan 2005 07:00

Expro International Group PLC28 January 2005 EXPRO INTERNATIONAL GROUP PLC PROPOSED REDUCTION OF SHARE PREMIUM ACCOUNT AND CANCELLATION OF CAPITAL REDEMPTION RESERVE Expro International Group PLC (the Company) announces that it proposes to cancel(a) £61,649,000 of the Company's share premium account (standing at £61,649,405at the date of the last audited accounts); and (b) the Company's capitalredemption reserve of £24,143 by a capital reduction and transfer correspondingamounts to the distributable reserves of the Company. After considering the available alternatives, the Board believes that thecapital reduction is the most suitable and effective proposal to ensure that theCompany's dividend policy remains unaffected by the transition from UK GenerallyAccepted Accounting Principles to International Financial Reporting Standardswhich, on top of the non-cash charges to profit and loss made in the year ended31 March 2004, will have a negative impact on the Group's consolidated profitand loss reserve. Whilst this would not legally prevent the continued payment ofdividends by the Company in the near term, the Board's ability to pay dividendsmay well be impacted in the future. The reduction of the Company's share premiumaccount and the cancellation of the capital redemption reserve will lead to acorresponding increase in the distributable reserves of the Company and theGroup. It is not the intention that these newly generated distributable reserves willbe used to pay dividends above the level of the normal policy of the Company.The capital reduction will have no impact on the Company's cash position or onits net assets. It will also have no impact upon the nominal value of theCompany's ordinary shares. The capital reduction is conditional on the approval of the Company'sshareholders by special resolution at an extraordinary general meeting to beheld on 23 February 2005, and on confirmation by the High Court. A circulardetailing the proposals is being posted to shareholders today. For further information please contact: Name: Michael SpeakmanTitle: Finance DirectorTel: 01189 591341Fax: 01189 589000Email: Michael.Speakman@exprogroup.comDate: 28 January 2005 END This information is provided by RNS The company news service from the London Stock Exchange