13th Mar 2009 17:42
Newcourt Group Plc
Ticker: NEW.I
Trading & Results Update
Dublin, 13 March, 2009: Newcourt Group Plc ('Newcourt' or the 'Group') today announces a trading update for the year ending 31 December 2008.
Following the disposal of Ely Property Group in December, 2008 and the subsequent group restructuring related to the exit from Student Accommodation, Newcourt announces that the Group does not expect to be in a position to issue a preliminary statement of results for 2008 until mid-May 2009.
While Newcourt is not in a position to release any definitive figures at this point, preliminary (unaudited) indications are that the trading profit of the Support Services & Recruitment divisions will be in the region of €4.5m to €5.0m for the year ending 31 December 2008. This reflects both the impact of expected restructuring charges and the very difficult and challenging trading environment that developed in the second half of 2008. Newcourt expects the results of Ely Property Group to be reported separately as a discontinued activity. The loss on the disposal of the Ely Property Group is expected to be in the region of €37m, as referred to in the previous announcement issued on 24th December 2008.
Newcourt is also currently reviewing the carrying value of goodwill and other intangible assets relating to other Group businesses in light of prevailing market conditions. Preliminary indications are that an additional write down of €20m to €23m will be required.
As a result of the Ely disposal Newcourt has significantly deleveraged its debt position in the past six months. Group net debt as at 31 December, 2008 is expected to be in the region of €36m, and Newcourt is currently in discussions with its principal bank in relation to the restructuring of that debt.
Newcourt is continuing to work on solutions in relation to the residual matters associated with certain student accommodation and other property assets following the disposal of Ely. In particular, Newcourt is in discussions with potential equity and debt funders in relation to its obligation to purchase a site in Fieldgate Street, London for £22.5m. Whilst these discussions are active and ongoing, it is too early to predict their outcome at the present time.
The directors of Newcourt take responsibility for this announcement.
Contact
| Newcourt Group Plc | |||||
| Hugh O'Neill | Tel: | + 353 1 8839855 | |||
| K Capital SourceJonathan Neilan | Tel: | + 353 1 6633680 | |||
| Davy Corporate Finance | |||||
| Ivan Murphy, (NOMAD) | Tel: | + 353 1 6796363 |
Copyright Business Wire 2009
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