Oriental Restaurant Group PLC
2 August 2000
Oriental Restaurant Group plc ('Oriental' or 'the Company')
Disposal of the Business and Assets
Of the Central Production Kitchen
Oriental Restaurant Group plc today announces that it has entered
into an agreement, subject only to landlord's consent, for the
disposal of the business and assets of its Central Production Kitchen
operation, located in Park Royal, London, for £600,000 in cash which
is equivalent to the current book value.
As stated in the Group's preliminary results announced recently, the
Board continues to believe that the central sourcing of quality
assured product for the Group's branded restaurants is an essential
element of its strategy. Therefore, the continuity and quality of
supply remains of critical importance. However, the management
recognises that the Group is still at a relatively early stage of its
roll out of its Yellow River Cafe concept and consequently, there is
a disparity between volume and output at the Central Kitchen facility
which is likely to be ongoing for a considerable period.
With the supply of product now assured through a supply agreement
with the purchaser, and the consequent improvement to cash flow, the
Group has concluded that a sale of this operation will generate
significant shareholder value.
Enquiries:
Oriental Restaurant Group plc
Alan Jackson, Chairman Tel: 020 7929 6868
Ian Johnson, Finance Director
College Hill Tel: 020 7457 2020
Matthew Smallwood
Justine Warren