17 Aug 2018 15:24
17 August 2018
Lakehouse plc
("Lakehouse" or the "Group")
Lakehouse Contracts Limited and Foster Property Maintenance Limited
Update on trading
Lakehouse, the asset and energy support services group, today announced the completion of the disposal of its Construction and Property Services divisions, comprising the legal entities Lakehouse Contracts Limited and Foster Property Maintenance Limited ("the Business").
As highlighted in the Group's interim announcement of 26 June 2018, it has been the Board's strategic intention to exit from Construction and Property Services and, at that time, heads of agreement had been signed for the sale of those activities. The Group has now concluded negotiations and the Business is being acquired by Mapps Group Limited, a newly formed entity backed by a team of sector specialists.
The consideration for the sale of the Business ("the Sale") will comprise an initial payment of up to £0.5 million, determined by certain performance conditions during the six months following Completion. The parties will also work together over the 24 months following the Sale to collect working capital sums outstanding at Completion, which will be for the Group's account, subject to settling any pre-Completion liabilities. Dependent on the performance of the Business in the two years to 30 September 2021, the Group will receive a further sum of up to £1 million. The Group does not currently envisage any change to the impairment charge outlined in the interim announcement of 26 June 2018, but will review this figure as part of the preparation of its results for the year ending 30 September 2018, in light of any of the above events materialising up to the date of announcement.
The Business employs 236 staff and is based principally in Brentwood (Essex), Wisbech (Cambridgeshire) and Norwich (Norfolk). In the financial year ended 30 September 2017, the Business reported underlying revenues from continuing activities of £108.8 million and underlying EBITA of £0.3 million. The Business is expected to be reported within discontinued activities in the Group's results for the year ended 30 September 2018.
The Sale will allow the Group to concentrate on its core growth businesses of Compliance and Energy Services divisions, both of which are sector specialists, with profitable and cash generative business models. Any proceeds from the Sale will be used to support future growth plans.
Trading from continuing operations for the year ending 30 September 2018 is currently expected to remain in line with the Board's expectations.
Bob Holt, Executive Chairman of Lakehouse, said:
"I am delighted with the sale, which will allow the Group to focus on its Compliance and Energy Services activities. Both are businesses where we have strong market positions, which help underpin more predictable and profitable revenue streams.
I believe that Lakehouse Contracts and Foster under the private ownership of Mapps Group will do well.
I want to thank the staff of Lakehouse Contracts and Foster for their professionalism during what has been an uncertain time and wish them all the best for the future."
Enquiries
Lakehouse | Financial Public Relations |
Bob Holt, Chairman, 07778 798816 | Camarco |
Michael McMahon, Chief Operating Officer | Ginny Pulbrook |
Jeremy Simpson, Chief Financial Officer | Tom Huddart |
Telephone: 020 3961 5210 | Telephone: 020 3757 4992 |
Stockdale Securities | |
Andy Crossley | |
Antonio Bossi | |
Telephone: 020 7601 6100 |
Notes to editors
Lakehouse is a leading compliance and energy support services group that performs critical functions in homes, public and commercial buildings, with a focus on clients in the UK public sector and regulated markets. Services are delivered through two divisions: Compliance and Energy Services.
The Group was founded in 1988 and is headquartered in London. It currently employs some 2,000 staff from 23 offices across the UK.