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19 Jun 2009 07:00
Mavinwood plc
Trading Update
On 9 June 2009, Mavinwood plc announced the intention to dispose of ANSA Holdings Limited, Independent Inspections Holdings Limited and Home and Comforts Limited (the Disposal) for a consideration of up to £19.55m subject to shareholder approval at an EGM on 25 June 2009. Following this announcement, Mavinwood is now providing a trading update on the remainder of the Group's operations.
Trading in the Document Handling division so far this year has been satisfactory compared to the very strong performance in the first half of 2008. The core storage business continues to show growth but retrieval activity has reduced against a backdrop of weakened business activity. It is anticipated that the trading out-turn for the division for the twelve months ending 31 December 2009 will be a bit weaker than 2008.
Peter Cox Limited continues to operate in a difficult market for property related businesses. The separation of the company from the Emergency Repair division will result in certain additional costs being incurred in Peter Cox as a stand alone business in 2009. Peter Cox has been loss making in the first half and steps are being taken to return it to profitability.
ANSA Building Services is now formally running off its principal contract. New work should end on 31 October followed by two months of completing any outstanding work in progress. The impact of closing out the contract together with associated termination costs is estimated at £1.8m and will be provided in the accounts for the twelve months ending 31 December 2009 as an exceptional charge. The cash outflow is mitigated however by the collection of working capital of approximately £1.2m.
Net debt following the Disposal is expected to be approximately £17m. Positive discussions are continuing in respect of refinancing the bank debt. Geraldton Services Inc, the Company's principal shareholder, continues to underwrite a potential equity issue of up to £10m through to 30 September 2009.
Enquiries to
Mavinwood plc
Charles Skinner 07966 234 075
Threadneedle Communications
John Coles 020 7653 9848
Collins Stewart Europe Limited
Adrian Hadden/Ileana Antypas 020 7523 8350
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