27th Feb 2008 07:01
Environmental Recycling Tech. PLC27 February 2008 ENVIRONMENTAL RECYCLING TECHNOLOGIES PLC Strategy Update & Director Changes The Board of Environmental Recycling Technologies plc (AIM: ENRT) (the"Company") is pleased to update shareholders on changes to its corporatestrategy and board of directors. Strategy Update Progress is being made with a number of PIM licensees who are now either in, orclose to the commencement of production of products using the PIM process.Building on the process knowledge developed by the Company, licensees areincreasingly committing their own resources for their product development.Additionally, licensees generally wish to deal directly with the manufacturersof PIM process machinery, many of which were identified by the Company. These trends mean the Company is not required to provide project managementresource to licensees. Accordingly, the Board has concluded that the Company'sfuture strategy should be solely to license its technology for commercialapplications and retain such overheads only as is necessary to promote thetechnology, administer the income generated from these licensees and maintainprotection of its intellectual property. As such, the Company will be ceasingits development and manufacturing operations. The Board of the Company believes that these developments demonstrate that thePIM process has now gained a wider commercial acceptance, especially inapplications using recycled materials, and is confident of the Company'spotential to further realise value from the PIM process. Board Changes Following the aforementioned reorganisation, the Board believes the businesswill be running at or close to break even. Furthermore, the Board expects thecosts of the restructuring will be more than covered by the savings that resultfrom it. In line with this strategy of becoming an intellectual property holding company,Niall Mackay will stand down as Chief Executive Officer at the end of this monthin order to pursue his interests in Eko-Tek Products Ltd, a company of which heis part owner, and which already has a license to manufacture a range ofproducts using the PIM process (as previously announced in the 2007 AGMStatement). Niall will continue to be available to the Company on a consultancybasis. Furthermore, Bill Widger and Bill Lopshire have both retired as nonexecutive directors of the Company with immediate effect. Roger Baynham will become Managing Director and Ken Brooks Executive Chairman.In addition to which Henry Bellingham MP has agreed to join the Board of theCompany as a non-executive director with immediate effect. Ken Brooks the Executive Chairman said-"I would like to thank Niall, Bill andBill for all they have done for the company and we all wish them well in theirnew endeavours. I would like to welcome Roger and Henry in their new roles andlook forward working with them to unlock the inherent potential within theCompany." The following disclosure is made in accordance with the AIM Rules regarding theappointment of Henry Bellingham as a non-executive director of the Company: Director's name Henry Campbell BellinghamDirector's age 52 years oldPrevious names n/aCurrent Occupation Member of Parliament for Norfolk North-West (Conservative) Current Directorships: Glencare Estate CompanyLansdowne Advisory LtdARC Fund Management Holdings Ltd Past Directorships: Environmental Polymer Technologies LtdWhite Knight Investments Plc (now Pan-African Resources Plc)Global Tourism Solutions Ltd Longborough Capital plc Advanced Digital Components Ltd There are no further disclosures required to be made in respect of Mr Bellinghamwith regard to paragraph (g) of Schedule 2 of the AIM Rules. For further information please contact: Chairman, ERT plc 0207 692 7002 Ken Brooks Evolution Securities 0207 071 4300 Tim Worlledge/ Fergus Marcroft 27 February 2008 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
ENRT.L