Palace Capital Regulatory News (PCA)

14 Dec 2007 12:29

Leo Insurance Services PLC14 December 2007 Leo Insurance Services plc ("Leo" or the "Company") 14 December 2007 Trading Statement Leo Insurance Services plc announces that Grafton Insurance Services Ltd.("Grafton"), a brokerage specialised in property insurance, has been informed byBizspace that it is planning to transfer its insurance services. The Bizspacecontract is one of two long term contracts amongst Grafton's portfolio ofclients. Bizspace, a subsidiary of Highcross plc, has made this decision after abusiness reorganisation, leaving Bizspace purely as the property manager. Although Grafton has made a renewed offer to retain this contract Graftonbelieves that it is unlikely to do so and, if it does, that it will likely be onless favourable terms than the current contract. The Bizspace contract providedapproximately 27% of revenues of Grafton in the 6 months period ending 31 July2007. As shareholders should be aware, Grafton is Leo's only investment at present andis fully consolidated in the Company's accounts. The potential loss of the Bizspace contract does not affect the long termcontract Leo has with Safeland Plc, the prospects for which remain strong,particularly after the raising of new funds for further acquisitions announcedin September. Contacts: Leo Insurance Services plcPaul DavisTel: 020 8815 1600 Landsbanki Securities (UK) LimitedThilo HoffmannTel: 020 7426 9000 This information is provided by RNS The company news service from the London Stock Exchange