Lawrence PLC
3 October 2001
In the annual accounts of Lawrence plc (the 'Company') for the year ended 31
March 2001, which were announced on 13 September 2001 and sent to shareholders
on 26 September 2001, the Company disclosed that as at the 31 March 2001 it
had a 34.5 per cent. stake in Idatchi Group Limited ('Idatchi'), a distributor
of colour pigments and specialty chemicals. It was also disclosed that since
the year-end the Company had reached an agreement to acquire a majority stake
in Idatchi.
Following due diligence conducted by the Company into the accounts of Idatchi,
last week the directors of Idatchi requested that administrative receivers be
appointed to Idatchi, which has now occurred.
During the year ended 31 March 2001, the Company's aggregate share of profit
before tax in Idatchi was £40,000. The Company's investment in Idatchi at the
year-end date was shown on the balance sheet as £0.94 million. As at 30
September 2001, outstanding loans and unpaid debts totalling approximately £
1.0 million were due to the Company from Idatchi.
The Board of the Company believes that the total one-off exposure of Lawrence
plc to the above situation is expected to be in the region of £1.7 million
after tax.
The Board of the Company is confident that the appointment of administrative
receivers to Idatchi is an isolated event that will not impact on the trading
of Lawrence plc or its cash position at the end of the current year.
Enquiries:
Peter Lawrence tel: 020 8336 2900
Chairman, Lawrence plc
Robert Howard tel: 020 7953 2154
Charles Stanley & Company Limited