4th Jul 2008 10:27
4 July 2008
Z GROUP plc
("Z GROUP" or the "Company")
Further re Assignment of Lease
On 27 December 2007, the Company announced that it had assigned the lease of its premises at 31 Vernon Street, London and that a rent deposit of £117,500 would be received from the landlord.
The Company has now received legal advice, contrary to previous legal advice received at the time of the lease assignment, that the landlord is not obliged to repay the rent deposit until the assignee under the lease subsequently assigns the lease to a third party. If the assignee does not assign the lease to a third party, the rent deposit is not repayable until the lease expires on 17 July 2016.
The return of the rent deposit had not been assumed in Z GROUP's internal cash projections. The Directors are pleased to announce that the Company currently has cash reserves in excess of £1,300,000, an amount which exceeds the £1,000,000 of cash reserves that the Directors estimated in December 2007 would exist on completion of the sale of the operating subsidiaries.
The Directors continue to actively seek suitable acquisition targets in line with the Company's investing strategy and will update the market when appropriate.
ENQUIRIES:
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Z GROUP plc |
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Duncan Neale |
Tel: +44 (0) 8700 111 173 |
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John East & Partners Limited |
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David Worlidge / Bidhi Bhoma |
Tel: +44 (0) 20 7628 2200 |
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