12th Jan 2006 09:21
Macfarlane Group PLC12 January 2006 Macfarlane Group PLC("Macfarlane" or "Group") Macfarlane Group PLC to dispose of its Hungarian operations In line with the Group's strategy to concentrate on and develop its corebusinesses, Macfarlane Group PLC ("Macfarlane") announces that it has todayconcluded an agreement to sell its Hungarian packaging manufacture and assemblyoperation, Macfarlane Packaging Kft to Nefab AB, a Swedish based company, for atotal cash consideration of £2.3 million after attributable expenses. £2.1million of the consideration will be paid immediately, with the retainedconsideration becoming payable in March 2008. The proceeds will be used tofurther reduce Group borrowings. The gross assets disposed of were £1.9 million (unaudited) at 31 December 2005and the net assets being sold totalled £1.4 million at the same date. Thebusiness made an operating profit of £0.7 million on turnover of £3.6 million inthe year to 31 December 2005 (unaudited). The Directors estimate that thedisposal will produce a realised gain of £0.9 million in the current financialyear to 31 December 2006. Trading update In advance of the Group's preliminary statement of final results for the year to31 December 2005, to be released on 28th March 2006, Macfarlane is pleased togive the following update. The Board's expectations as to trading results for 2005, prior to net propertygains, remain broadly unchanged. Despite unfavourable market conditions, themomentum in the Group's recovery plan has continued in the second half of 2005. Two years ago, the Board indicated that nothing would be allowed to interferewith the establishment of the strongest possible platform for recovery andreturn to profitability. The Board does not underestimate the challenges ahead.However the business is now positioned for growth and the Board anticipates afurther significant improvement in trading results and cash generation in 2006.In the light of this progress, the Board will outline its objectives fordividend policy prior to the Annual General Meeting in May 2006. Further information:Archie S. Hunter Chairman 0141 333 9666Peter D. Atkinson Chief Executive 0141 333 9666John Love Finance Director 0141 333 9666 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Macfarlane Grp.