Adam & Harvey Group PLC
10 April 2001
Immediate 10 April 2001
The Board of Adam & Harvey Group, the international trading and distribution
business, is pleased to update shareholders on our trading position during the
2nd half of the financial year to March 31, 2001.
Disposals and Discontinued Operations
We have successfully concluded the sale of our transportation spare-parts
agency and trading business in Asia, sold the small ASMV operation to its
management and are proceeding to plan with the closure of our Lesty Timber and
Monolines Fabrics businesses. We do not anticipate taking an end-year
provision significantly above that indicated in the interim statement of £
540,000 for these closures and disposals. The disposal of some property in the
City of London should realise proceeds of £285,000. As a result of these
transactions we are realising additional cash of some £1,900,000 (excluding
further property sales), bringing our UK sterling cash resources in excess of
Trading conditions and the economic outlook in Zimbabwe remain depressed and
unstable, with spillover effects in neighbouring markets, especially Malawi.
We have prudently downsized and consolidated the operations to remain
competitive and profitable in these conditions and continue to pursue our plan
to identify a strong regional partner. A dedicated management team is in
place to exploit the market potential. We have recently announced plans for
the closure of the Steelbase Cape Town operation, due to its minimal
contribution potential and very small scale in a highly competitive market.
Trading has improved in the second half on higher volumes and margins. This
is expected to result in better end-year trading result than was anticipated
at the time of our Interim Statement. We have successfully continued to remit
dividends from Africa, albeit impacted by local currency devaluation.
As a consequence we are on course to protect our accumulated cash reserves in
the UK and are concentrating our efforts on the identification of a new core
business activity for the Group. We have received and researched a number of
opportunities and remain actively engaged in identifying the right growth
business venture. We are now able to focus resources on this process - one
that we are determined to get right.
For further information, please contact:
Tony Patterson, Group Chief Executive, Adam & Harvey Group 020 7549 3604
David Haggie, Haggie Financial 020 7417 8989