PCF.L Regulatory News (PCF)

29 Apr 2005 07:30

Private & Commercial Fin Group Plc29 April 2005 PRIVATE & COMMERCIAL FINANCE GROUP PLC ("PCFG" or "the Company") KARMA CARS 29th April 2005 The Company's car retailing subsidiary, Karma Cars Limited, has continued toincrease sales but not at a rate which will bring it into profit in the courseof the year. The downturn in the national level of car sales which began inOctober is continuing. After careful consideration we have decided to close the business and dispose ofthe site because the subsidiary is holding back the Group's return toprofitability. For the year ended 31 December 2004, Karma Cars Limited made a loss, includingstart-up costs, of £982,041 and at 31 December 2004 it had net liabilities of£981,941. Closure will stem the losses, but is expected to result in a write-offin the group accounts in the region of £500,000, largely in respect of leaseholdimprovements made to the premises in 2004, plus losses (if any) on sale ofstock, against which will be set any premium achieved on sale of the leaseholdpremises. Tony Nelson, Chief Executive of PCFG said: "The management of Karma Cars and Ihave worked hard to redirect its advertising and promotions and increasecustomer footfall during the first quarter of the year. However we have notachieved the necessary level of sales, so we have made the difficult decision tocease operations. This will allow us to concentrate fully on our core business. "I believe that the concept was right but the timing, coinciding with a generaldownturn in customer demand, made the achievement of our goals difficult." This information is provided by RNS The company news service from the London Stock Exchange