European Motor Hldgs PLC
20 April 2005
EUROPEAN MOTOR HOLDINGS plc ("the Group")
STATEMENT REGARDING MG ROVER
Following the appointment of administrators to MG Rover Group Limited, the Board
has decided to make an exceptional charge in the Group's financial statements
for the year ended 28 February 2005. This exceptional charge relates to a
reduction in the estimated realisable value of MG Rover stocks and debtors held
by and owed to the Group at that date and is estimated to be £0.6 million.
Of the Group's 37 franchises, only two are MG Rover franchises. These
dealerships accounted for turnover of £22 million in the year ended 28 February
2005 and made an operating loss of £0.2 million in that period.
The alternatives available to the Group with regard to the two dealerships are
currently being considered. It is likely that there will be a further
exceptional charge in respect of asset writedowns and closure costs in the
Group's financial statements for the year ending 28 February 2006, which is yet
to be quantified. A further announcement will be made in due course when the
situation has become clearer. However, the Board does not consider that the
effect on trading for the year ending 28 February 2006 will be significant.
As previously announced, the preliminary results for the year ended 28 February
2005 will be released on 27 April 2005.
Enquiries:
European Motor Holdings 01491 413 399
Richard Palmer
Ann Wilson
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