Business
Exceptional Items in 2013 Results
Exceptional Items in 2013 Results.
About this update from Renew Holdings Plc
[{"type":"text","content":"\n \nRNS Number : 1401M Renew Holdings PLC 21 August 2013 \n \n\n21 August 2013\n \nRenew Holdings plc\n(\"Renew\" or the \"Group\")\n \nExceptional Items in 2013 Results\n \nExceptional Items in 2013 Results \n \nThe Board is announcing three material exceptional items which will impact the Group's results for the year ending 30 September 2013. These comprise the sale of land in the UK, the write down of land assets held in the USA and a provision in respect of previously closed Building businesses. Details of these items are set out below.\n \nThe combined impact of these items is that the Group will recognise an exceptional net gain before taxation of £1.3m in its 2013 results with the receipt of £11.0m of cash. The Group will use this cash to eliminate short term borrowings used to finance its recent acquisition of Lewis Civil Engineering Limited and will retain the balance for general corporate purposes. The Board anticipates that the Group will show a net cash position at 30 September 2013.\n \nLand Assets\n \nThe Board is pleased to announce that it has sold 71 acres of land near Rugby for employment land use for a net sum after overage payments of £11.0m resulting in an exceptional profit of £9.4m. The Board anticipates that tax on this profit will be fully relieved by brought forward losses.\n \nIn the USA, the Group has 3 remaining property assets where delays due to economic conditions have led to detailed planning and zoning agreements expiring. Outline permissions remain, however forthcoming changes to state and county regulations will require new applications to be made with the expectation of reductions in allowable building density. The Board commissioned an independent review of the Group's US property assets and has decided to write down the carrying value of these assets in light of these new requirements and current market conditions by £5.2m to £2.7m.\n \nClosed Building Businesses\n \nFollowing the previous closure of certain regional Building businesses, the Board has decided to make an exceptional provision of £2.9m against certain contract costs which are expected to be unrecoverable. These costs, which have already been expended, are due primarily to the insolvency of certain subcontractors. \n \nCurrent Trading\n \nCurrent trading is in ...