Huveaux announced on 22 October 2007 that it had received preliminary approaches from a number of private equity houses and subsequently confirmed on 12 November 2007 that the Company was in detailed discussions with August Equity LLP (‘August Equity’) as regards a possible offer for the Company.
However, following detailed discussions, it has not been possible to reach agreement on a proposal which fully values the Company. Therefore, offer related discussions have now been terminated with all parties.
Trading across the Group has been satisfactory in the key final quarter of the year. The Board confirms that it expects trading EBITDA for the current financial year to be approximately £6.0 million.
In its Interim Results announced on 26 July 2007, the Board noted that it had initiated an operational and profit improvement programme and highlighted cost reduction initiatives across the Company. As a result of these measures, the Board has successfully completed £1.3 million of annualised cost savings which will be realised in 2008 through headcount reduction across the operations and at HQ. The Board estimate that restructuring costs relating to the realisation of these savings will be £0.6 million and the aborted transaction costs will be £0.5 million. Both these costs will be treated as non-trading items in 2007.
The Board will review the optimal structure of the Group and continue to pursue opportunities to enhance shareholder value.
Contacts:
Huveaux PLC
John van Kuffeler, Chairman
Kevin Hand, Deputy Chairman
Gerry Murray, Chief Executive Officer
020 7245 0270
Dresdner Kleinwort
Charlie Batten
020 7623 8000
Dresdner Kleinwort Limited:
Dresdner Kleinwort Limited, which is authorised and regulated by the Financial Services Authority, is acting for Huveaux PLC and for no-one else in connection with the contents of this announcement and will not be responsible to anyone other than Huveaux PLC for providing the protections afforded to customers of Dresdner Kleinwort Limited, or for affording advice in relation to the contents of this document or any matters referred to herein.