Trading Statement

15 Apr 2008 07:01

Bioganix PLC15 April 2008 15th April 2008 BIOGANIX PLC Trading Update Bioganix plc ('Bioganix' or 'the Group'), the AIM listed waste managementservices group, is pleased to announce that the contractual dispute betweenBioganix and a major customer ("the Customer"), as reported in the tradingstatement of 21st January 2008 has now been satisfactorily resolved. The matter was due to be dealt with by arbitration but after an approach by theCustomer, a settlement agreement has now been concluded between Bioganix and theCustomer in advance of the arbitration hearing. A Consent Order has been signedto stay the arbitration proceedings. Under the terms of the settlement agreement, the Customer will make an immediatepayment of £100,000 followed by 12 monthly instalments of £10,000 each. Inaddition, the Customer has signed an agreement whereby the Customer will processmaterial supplied by Bioganix over the next two and a half years, in one of theCustomer's facilities, for a reduced gate fee. The value of this arrangement toBioganix over the period of this agreement is anticipated to be approximately£840,000. The total value of the settlement agreement to Bioganix is thereforeexpected to be approximately £1,060,000 over the next two and half years. All ofthe figures stated in this paragraph exclude VAT which will be added at theprevailing rate. The Customer has also entered into a further agreement, the terms of which arethat the Customer will continue to deliver certain gate fee material to theBioganix Parham plant under similar terms to those that were in place under theprevious contractual arrangements. This new agreement will remain in force untilAugust 2011 and will result in Bioganix receiving a minimum of 26,000 tonnes ofmaterial from the Customer. Contacts: Nick Helme 01568 619115Managing Director - Bioganix Plc Julian Morgan 01568 619101Finance and Commercial Director - Bioganix Plc Mike Coe 0117 933 0020Blue Oar Securities Plc Tom Cooper / Paul Vann 020 3043 4162Winningtons 0797 122 1972 This information is provided by RNS The company news service from the London Stock Exchange