Business
Disposal & trading update
Disposal & trading update.
About this update from Macfarlane Group Plc
[{"type":"text","content":"\n Macfarlane Group PLC\n12 January 2006\n\n\n Macfarlane Group PLC('Macfarlane' or 'Group')\n\n\nMacfarlane Group PLC to dispose of its Hungarian operations\n\n\nIn line with the Group's strategy to concentrate on and develop its core\nbusinesses, Macfarlane Group PLC ('Macfarlane') announces that it has today\nconcluded an agreement to sell its Hungarian packaging manufacture and assembly\noperation, Macfarlane Packaging Kft to Nefab AB, a Swedish based company, for a\ntotal cash consideration of £2.3 million after attributable expenses. £2.1\nmillion of the consideration will be paid immediately, with the retained\nconsideration becoming payable in March 2008. The proceeds will be used to\nfurther reduce Group borrowings.\n\n\nThe gross assets disposed of were £1.9 million (unaudited) at 31 December 2005\nand the net assets being sold totalled £1.4 million at the same date. The\nbusiness made an operating profit of £0.7 million on turnover of £3.6 million in\nthe year to 31 December 2005 (unaudited). The Directors estimate that the\ndisposal will produce a realised gain of £0.9 million in the current financial\nyear to 31 December 2006.\n\n\nTrading update\n\n\nIn advance of the Group's preliminary statement of final results for the year to\n31 December 2005, to be released on 28th March 2006, Macfarlane is pleased to\ngive the following update.\n\n\nThe Board's expectations as to trading results for 2005, prior to net property\ngains, remain broadly unchanged. Despite unfavourable market conditions, the\nmomentum in the Group's recovery plan has continued in the second half of 2005.\n\n\nTwo years ago, the Board indicated that nothing would be allowed to interfere\nwith the establishment of the strongest possible platform for recovery and\nreturn to profitability. The Board does not underestimate the challenges ahead.\nHowever the business is now positioned for growth and the Board anticipates a\nfurther significant improvement in trading results and cash generation in 2006.\nIn the light of this progress, the Board will outline its objectives for\ndividend policy prior to the Annual General Meeting in May 2006.\n\n\n\nFurther information:\nArchie S. Hunter Chairman 0141 333 9666\nPeter D. Atkinson Chief Executive 0141 333 9666\nJohn Love Finance Director 0141 333 9666\n\n\n\n\n This information is provided by RNS\n T...