8 Jul 2009 07:00
8 July 2009
GSH Group Plc
De-List update and Trading Statement
Further to the recent announcements relating to the De-listing and Tender Offer, the Board of GSH announces that it intends to post the Circular to shareholders relating to the De-listing today Wednesday 8th July.
The timetable of principle events is set out below:
| Latest time and date for receipt of Forms of Proxy for the Extraordinary General Meeting | 11:00 am on 29 July 2009 11:00 am on 31 July 2009 7:00 am on 10 August 2009 |
| Date and time of Extraordinary General Meeting | |
| Cancellation of trading on AIM of the Ordinary Shares expected to be effective |
During the second half of the trading year, the Group has incurred a number of non recurring costs, some of which relate to prior periods, combined with changes in accounting policies which will adversely impact the results for the year to 31st July 2009.
The Company announced on 30th April 2009 that the Board had taken the decision to write off the goodwill associated with a number of acquisitions made in prior financial periods. In addition to these write offs the Board anticipated at the time that there would be additional closure costs of £1.5m. The reorganisation process is not yet complete, but these closure costs will now exceed previous estimates and are likely to be in the region of £3m.
In addition the Group has incurred substantial charges particularly in the UK in respect of headcount and restructuring costs which, coupled with recent challenges will result in a further shortfall in the full year profit before taxation in the year to 31st July 2009 compared with the Board's previous expectations. The Board now expects that the profit before tax (pre-goodwill write off) for the year to 31 July will be in the range of £2m - £4m.
Trading in the US business remains challenging but the Board is encouraged by the recent improvement in the financial performance of this division. The Continental European business has performed well throughout the year in line with Board expectations. Underlying performance of the UK core business remains strong and the Board believes that the Group is now appropriately structured for the current trading environments in its major markets.
The Directors draw attention to the announcement of 30 June 2009, and would remind shareholders that there can be no guarantee that a tender offer will proceed following the De-listing.
For further information, please contact:
GSH Group plc
Rob Painting Tel: 01782 200 457
Bell Pottinger Corporate & Financial
Ann-Marie Wilkinson Tel: 020 7861 3232
KBC Peel Hunt
Julian Blunt, Nominated Advisor Tel: 020 7418 8900