Northacre PLC Trading Update (7049E)
14 April 2014 - 4:00PM
UK Regulatory
TIDMNTA
RNS Number : 7049E
Northacre PLC
14 April 2014
Northacre PLC
("Northacre" or the "Company")
Trading Update
The Company is pleased to provide the following trading update
following the completion of its financial year ended 28 February
2014.
This financial year was one of transformation, with the Company
undergoing a change in majority ownership to Spadille (a vehicle
controlled by Abu Dhabi Capital Management), the appointment of a
new Chief Executive, and the appointment of ADCM Ltd as consultant
to the Company. The effects of these appointments began to show in
new projects that the Company and its subsidiaries have recently
been appointed to, namely 1 Palace Street and 33 Thurloe Square,
and in the pipeline of opportunities that the Company is currently
evaluating.
The Company expects to report consolidated revenue in the region
of GBP3.0m compared to GBP3.5m in the prior year. This is a result
of a reduction in Lancaster's related revenue earned by Intarya.
The Company also expects to report lower administrative expenses
(GBP8.9m to circa GBP5.3m), principally as a result of the
reduction in the bonuses paid in respect of the Lancasters
development in the last financial year.
The Company has entered into two Development Management
Agreements ("DMAs") for the development of two Prime Central London
("PCL") developments located at 1 Palace Street and 33 Thurloe
Square. Both projects are expected to make substantial
contributions to revenues over the coming several years with
development fees expected to exceed GBP11m, as per the signed DMAs.
In addition, the Company is entitled to a performance fee as part
of the DMAs, and expects to benefit from returns on its minority
equity investment in these projects.
The Directors of the Company are confident about the Company's
future prospects, supported by its significantly strengthened
balance sheet post the recent fundraising that was underwritten by
Spadille. Furthermore, the Company is enjoying enhanced market
reputation and presence as a result of the business activities of
the past year, and in particular its appointment as development
manager to 1 Palace Street, one of the most prominent PCL
schemes.
Enquiries:
Northacre PLC Tel: 020 7349 8000
Klas Nilsson (Non-Executive Chairman)
Niccolò Barattieri di San Pietro (Chief Executive Officer)
finnCap Ltd Tel: 020 7220 0500
Stuart Andrews
Henrik Persson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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