Molins PLC Half-Year Trading Update (2174J)
27 June 2017 - 4:00PM
UK Regulatory
TIDMMLIN
RNS Number : 2174J
Molins PLC
27 June 2017
FOR IMMEDIATE RELEASE 27 June 2017
MOLINS PLC
("Molins" or the "Company")
Half-Year Trading Update
&
Sale of Property in Canada
Half-Year Trading Update
The Company announces the following trading update ahead of its
unaudited interim results for the six months ending 30 June 2017 to
be announced in September 2017.
As described in the shareholder circular dated 8 June 2017
("Circular") regarding the Proposed Sale of the Instrumentation and
Tobacco Machinery division ("I&TM"), Molins entered the 2017
financial year with an order book that was substantially stronger
than at the start of 2016, with the increase arising in the
Packaging Machinery division. The first part of the year has
resulted in order intake in all parts of Molins being at levels
ahead of the same period last year. In particular, order intake in
the Continuing Group (i.e. excluding I&TM) at the end of May
2017 was considerably ahead of order intake for the same period
last year. Trading is as expected and ahead of last year in all
parts of the Continuing Group.
Sale of Property in Canada ("Sale")
Molins PLC's Canadian subsidiary company, Langen Packaging Inc
("Langen"), entered into an unconditional agreement on 16 June 2017
to sell its manufacturing facility at 6154 Kestrel Road,
Mississauga, Ontario to BuildCorp Limited, a company incorporated
in Canada, for a gross consideration of C$11.7 million (GBP6.7
million) payable in cash on completion (save that a deposit has
been paid of C$0.5 million (GBP0.3 million)). Net proceeds, after
fees and taxes, are expected to be approximately C$10.2 million
(GBP5.9 million). The book value of the asset subject to the Sale
as at 31 December 2016 was C$2.6 million (GBP1.5 million).
Completion of the transaction is expected to take place by the end
of November 2017.
Langen is to enter into a 10 year contract to lease a newly
built facility, approximately 8 miles from its current location,
still in Mississauga, Ontario, from an independent third party at
an annual cost of approximately C$0.6 million (GBP0.35 million).
The lease term and payments will commence from 1 November 2017.
Langen is expected to start its move into the new building in the
fourth quarter of the year, to coincide with its departure from its
existing building. Langen is expected to spend approximately C$1.7
million (GBP1.0 million) to adapt the building to its needs.
The balance of the proceeds from the Sale is expected to be used
for the development of the Company in line with its strategic
objectives.
Tony Steels, Molins Chief Executive, commented:
"The new facility will provide Langen with a superb new
environment from which to operate, including a customer showroom to
showcase our capabilities and assembly and acceptance facilities
that will enable Langen to serve its customers even more
effectively, whilst providing our employees with a workplace to be
proud of. This will be a platform for growth to assist in our
strategic objectives in the Americas."
For further information, please contact:
Molins PLC Tel: +44(0)1908 246870
Tony Steels, Chief Executive
David Cowen, Group Finance
Director
Panmure Gordon (UK) Limited Tel: +44(0)20 7886 2500
(NOMAD)
Andrew Potts, Peter Steel
- Corporate Finance
James Stearns - Corporate
Broking
Hudson Sandler Tel: +44(0)20 3178 6378
Nick Lyon, Jasper Bartlett
Unless the context requires otherwise, capitalised terms in this
announcement have the same meaning as terms defined in the
Circular, a copy of which is available to view on the Company's
website www.molins.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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