Macfarlane Group PLC
27 October 2004
Macfarlane Group exits from Tom Brands Electrical Services Limited
In the interim statement released on 1 September 2004, the Board of Macfarlane
Group PLC ('Macfarlane Board') indicated it could not continue to sustain the
current level of loss in its subsidiary Tom Brands Electrical Services Limited
('the Brands' business') and was reviewing a range of options to exit from the
Brands' business. Despite considerable effort, discussions with various
stakeholders in Brands, in particular its major property creditor, have not
progressed to a satisfactory conclusion. Therefore the Macfarlane Board has
reluctantly concluded that the Group should withdraw financial support from the
Brands business.
A provisional liquidator has now been appointed to realise the assets of Tom
Brands Electrical Services Ltd. The Macfarlane Board anticipates that an
exceptional cost of £1.4m will be incurred in the second half of 2004 as a
result of Macfarlane Group's exit from the Brands business. As shown in
unaudited management accounts the Brands business incurred losses before
taxation of £1.4m in the period from 1 January to 30 September 2004.
There is no impact on the other businesses in Macfarlane Group PLC, which are
trading in line with expectations and the Group recovery continues to progress
to plan.
This information is provided by RNS
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