TIDMLAKE
RNS Number : 3330S
Lakehouse plc
02 October 2017
PRESS RELEASE
2 October 2017
Lakehouse plc
("Lakehouse" or the "Group")
GBP12.4m sale of Orchard (Holdings) UK Ltd ("Orchard")
Major contract win with Aberdeenshire Council
Update on trading
Lakehouse, the asset and energy support services group,
announces two important strategic developments for the Group,
together with a trading update.
Sale of Orchard
Lakehouse announces the disposal of the entire issued share
capital of Orchard to World Fuel Services Europe, Ltd ("the
Disposal"), for a cash consideration on completion of GBP12.4m,
representing an estimated gain on book value of GBP5m. A further
sum of GBP1.9m will be held in escrow against potential claims
under the Sale and Purchase Agreement, to be released in equal
instalments on the first and second anniversaries of Completion.
The proceeds from the Disposal will be used to reduce Group
indebtedness.
Orchard provides consultancy advice to corporate clients in
relation to managing their energy costs, particularly energy
procurement and usage. In addition, Orchard provides energy
management services to commercial and industrial customers,
including brokering supply with utilities firms, managing contracts
and advising on energy consumption. Orchard has strong commercial
relationships with the leading UK utilities providers. The business
employs 72 staff and is based in Elland, West Yorkshire, with
offices in Glasgow, Bristol, Newcastle and Northampton.
The sale of Orchard, a white collar business, will allow the
Group to concentrate on its operatives-focused activities within
its Compliance and Energy Services divisions.
In the financial year ended 30 September 2016, Orchard reported
a turnover from continuing activities of GBP6.3 million and profit
before tax of GBP2.5 million. Orchard is expected to be reported
within discontinued activities in the Group's results for the year
ended 30 September 2017.
Major contract win with Aberdeenshire Council
The Group is pleased to announce its appointment to a Framework
with Aberdeenshire Council from which annual call off contracts
will be issued, up to the value of GBP44m over its four year
duration. The project, which will be delivered through its Everwarm
subsidiary, will be mobilised during the first half of our year
ending 30 September 2018 and will run until late 2021.
The Group will provide services covering every facet of housing
improvement upgrades in Aberdeenshire, including external upgrades,
internal refurbishments, domestic heating programmes and renewable
energy installations.
Trading update
Elsewhere within the Group, the Energy Services division has won
its first contract under the Excel energy efficiency framework,
with a GBP4m award from Renfrewshire council for external fabric
improvements. After a busy start to the year, the Compliance
division has secured a number of contract wins, the most notable
being a GBP600k water compliance contract with Homes For Haringey,
a GBP500k commercial installations contract with Yorkshire Housing
Association and winning two places on Sanctuary Housing's
commercial heating installations framework, all key and
important.
The Group continues to redefine its service offering and the
Board has taken the decision to reduce its exposure to risky and
unprofitable activities, particularly within Property Services,
with the closure and downsizing of non-profitable operations.
As expected, we still have to manage the year end legacy
contract closure processes, but expect trading to remain in line
with the Board's expectations. Cash performance from trading in the
second half of the year was ahead of expectations, with a
consequential benefit to net debt.
Bob Holt, Executive Chairman of Lakehouse, said:
"Orchard is an excellent business that I am sure will thrive
under the stewardship of World Fuel Services. I would like to
record my thanks to the directors and staff of Orchard for their
professionalism and dedication during their time within the
Lakehouse Group.
The disposal will allow us to focus on our market leading
Compliance and Energy Services operations and reduce
indebtedness.
We are delighted to announce today the successful award of the
significant landmark contract with Aberdeenshire Council, which
endorses our strong reputation for delivering excellent service in
local council residential property maintenance in Scotland. In
addition, we are pleased to be able to update on the continued
progress being made in our strategic growth divisions of Energy
Services and Compliance. The new contract wins meet our stated
objective of focusing on continuing to grow organically the
Lakehouse Group.
With a clear growth strategy and enhanced balance sheet, the
Group looks forward to the future with considerable
confidence."
Enquiries
Lakehouse Financial Public
Relations
Bob Holt, Chairman, 07778 Camarco
798816
Michael McMahon, Chief Operating Ginny Pulbrook
Officer
Jeremy Simpson, Chief Financial Tom Huddart
Officer
Telephone: 01708 758 800 Telephone: 020
3757 4992
Stockdale Securities
Andy Crossley
Antonio Bossi
Telephone: 020 7601 6100
Notes to editors
Lakehouse is an asset and energy support services group that
constructs, improves, maintains and provides services to homes,
schools, public and commercial buildings with a focus on clients in
the UK public sector and regulated markets. Services are delivered
through four divisions: Compliance, Energy Services, Property
Services and Construction.
The Group was founded in 1988 and is headquartered in Romford,
Essex. It currently employs some 2,100 staff from 28 offices across
the UK.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCUAVNRBBARRAA
(END) Dow Jones Newswires
October 02, 2017 04:44 ET (08:44 GMT)
Sureserve (LSE:SUR)
Historical Stock Chart
From Apr 2024 to May 2024
Sureserve (LSE:SUR)
Historical Stock Chart
From May 2023 to May 2024