Last checked at 22 Dec 2008 07:00
FLETCHER KING PLC
SALE OF SUBSIDIARY
The Board of Fletcher King Plc ('the Company') announced that it has today disposed of its subsidiary Fletcher King Howard ('Howard') to members of the Howard management team. This follows a decision by the Company to focus on its core activities of Fund Management and Investment, Asset Management and Valuation and Rating.
Howard, which is based in Northampton, is involved in construction services which are not core to the business of the Company. In the year to 30th April 2008 Howard had a turnover of £1.9m and made a pre-tax loss of £18,000. Its current trading is disappointing and it has recently suffered the unexpected cancellation of a significant Government contract. Earlier in the year other companies in the construction services sector had indicated some very preliminary interest in buying Howard but this evaporated as the credit crunch accelerated. In the circumstances and after discussion with members of the Howard management team ('the Purchasers'), it was agreed to sell Howard to the Purchasers for a nominal sum. Under the terms of the sale Howard has undertaken to repay an existing loan of approximately £180,000 from the Company as soon as possible.
Under AIM Rule 13, the disposal constitutes a Related Party Transaction as the management team are all directors of Howard, a subsidiary of the Company and are therefore a "related party" as defined in the AIM Rules for Companies. The Board of the Company, who are all deemed to be independent directors for these purposes, consider, having consulted with Dowgate Capital Advisers Limited, the Company's nominated adviser, that the terms of the disposal are fair and reasonable insofar as the Company's shareholders are concerned.
Enquiries:
Fletcher King plc
David Fletcher
Tel: 0207 493 8400
Dowgate Capital plc
James Caithie / Simon Sacerdoti, Nominated Adviser
Tel: 020 7492 4777