11 Feb 2011 15:21
Northacre Plc
Trading Update
11th February 2011
The Lancasters
There continues to be good progress both in construction as well as sales. Since our last announcement on 30th November 2009, further sales have been secured at improved values which now stand at almost 60% of the total area. First phase completion remains on course for Spring 2011 with overall completion of the development in Summer 2011.
The Vicarage
Good progress continues to be made with our new partners, Kokomo Beach PTE Ltd for the development of this prime residential scheme. Discussions are in progress with the Royal Borough of Kensington and Chelsea for an improved design scheme and we anticipate a favorable outcome to these discussions with commencement of the construction before the end of the year.
Trading
Our Interior Design subsidiary, Intarya, continues to grow its market share both in the UK and abroad, and we are pleased to report that a major private client contract has been secured at The Lancasters against strong competition. We remain optimistic that further contracts will be secured in the near future following the success of the show apartment. Nilsson Architects' workload also continues to expand following the sooner than expected progress at The Vicarage. In order to facilitate the expansion of the resources to meet the requirements of the new contracts and the improved outlook for the subsidiaries, the Group has secured an additional loan facility of £2m to be drawn down as necessary. The facility is for a term of up to 18 months and can be repaid earlier at any time without penalty. The loan is from Mr. Abdulsalam AlRafi, the father of Mohamed AlRafi, a Board Director and Shareholder.
The delivery of The Lancasters remains at the forefront of the programme for Northacre in 2011 together with the commencement of the development of The Vicarage. This is an exciting time for the Group and the Board is committed to securing new projects and funding that meet its investment criteria.
ENQUIRIES:
NORTHACRE PLC 020 7349 8000
Klas Nilsson Chairman and Chief Executive
Manish Santilale Finance Director
PEEL HUNT LLP 020 7418 8900
Capel Irwin