Result of EGM

13 Dec 2007 11:45

Highcroft Investments PLC13 December 2007 HIGHCROFT INVESTMENTS PLC ("Highcroft Investments" or "the Company") Result of EGM Highcroft Investments PLC announces that further to the announcement of the 13thNovember 2007 and Circular to shareholders providing details, on the backgroundto and reasons for the proposed conversion to a REIT, at the ExtraordinaryGeneral Meeting that was held today the special resolution was not passed. A poll was conducted in which 2,470,536 voted for the resolution 897,947 votedagainst and no votes were withheld. Although the poll achieved the support of amajority of shareholders, a special resolution must command the support of atleast 75% of those voting. The result of the poll showed that 26.66% of thosevoting had voted against. Having previously encouraged the proposed conversion to a REIT Mr DG and MB Connand Associates holding in aggregate approximately 18 per cent of the votingrights have voted against the resolution and as a result despite the Companyreceiving confirmation from HMRC that the Group will be able to convert to REITstatus, the Articles of the Company can no longer be amended and the conversionto a REIT is no longer possible at this time. By not converting to a REIT, the Group will continue to pay UK direct tax on theprofits and gains from its qualifying property rental businesses in the UK. Inthe previous financial year to 31 December 2006 the Directors estimate the Groupcorporation tax charge on income would have reduced by approximately £396,000and the Group corporation tax charge on gains would have reduced byapproximately £148,000. The opportunity to reduce future taxation to the benefit of all shareholderswill not now be available in the immediate future. However the Board remainsconvinced of the merits of a REIT conversion and intends to revisit thisproposal at the earliest possible opportunity. 13 December 2007 Enquiries: John Hewitt, Chairman 01865 840 023 David Bowman, Finance Director Highcroft Investments plc Philip Davies / Freddy Crossley 020 7149 6000 Charles Stanley Securities This information is provided by RNS The company news service from the London Stock Exchange