Richoux Group Regulatory News (RIC)

21 May 2007 07:01

Gourmet Holdings PLC21 May 2007 Gourmet Holdings PLC ("Gourmet" or the "Company") Disposal of the Bel & Dragon chain of four pub/restaurants to Ultimate LeisureGroup PLC ("Ultimate Leisure") Following the decision by the Board of Gourmet, announced in September 2006, todispose of its pub/restaurants to focus on its Richoux business, the Company ispleased to announce that it has sold to Ultimate Leisure its interests in thefour Bel and the Dragon pub/restaurants for a total cash consideration of £8.75mpayable upon completion subject to adjustment. This follows the disposal of two unbranded pub restaurants, The Five Bells atStanbridge, Bedfordshire and the Talkhouse at Stanton St John, Oxfordshire toFuller, Smith & Turner plc in December 2006. Completion is expected to take place shortly after the Extraordinary GeneralMeeting ("EGM") to be convened to seek the necessary shareholder approval forthe transaction. A circular convening the EGM will be posted to shareholders inthe near future. Cash proceeds from the sale will be used to eliminate the Company's indebtednessthrough the repayment of its bank loans. For the financial year ended 25 June 2006, the pub/restaurants being disposed ofgenerated EBITDA of £0.85m. As at 7 January 2007, the pubs had a book value of£10.8m. The loss on disposal of fixed assets of £2.0m together with costs of thetransaction will be included within the profit and loss account of the Companyfor the year to 24 June 2007. Following the sale the Company will mainly consist of four Richoux restaurantsin London located in Mayfair, Knightsbridge, Piccadilly and St Johns Wood. TheBoard is mindful that the Company will be very small for a listed company andwhilst it is still actively seeking sites to expand this brand, it is alsocontinuously reviewing the strategic options for the best outcome forshareholders. Richard Scott, Chairman of Gourmet Holdings plc, said: "The disposal of Bel and the Dragon is in line with our stated strategy andleaves the Company predominantly operating a single brand that is performingwell. We have cash in the bank and will continue to explore the best optionsfor the Company to maximise value for our shareholders." 21 May 2007 Enquiries Gourmet Holdings plcRichard Scott, Chairman Tel: 020 8394 5555Andrew Guy, Managing Director Tel: 07768 143872 Arbuthnot Securities Nick Marsh Tel: 020 7012 2000 Paul Vanstone College Hill Tel: 020 7457 2020Matthew SmallwoodJustine Warren This information is provided by RNS The company news service from the London Stock Exchange