RNS Number : 2846E
Accuma Group PLC
25 September 2008
Accuma Group Plc
("Accuma" or "the Group")
Liquidation of Subsidiary
On 18 September 2008, Accuma Group Plc announced that it was reviewing options for its loan broking division, Loan Line (Holdings)
Limited and its subsidiaries (together "the Loan Line Group"). The Board has spent considerable time since then in discussion with the
management of the Loan Line Group and has concluded that the Loan Line Group would be insolvent without further financial support from
Accuma. Due principally to the withdrawal from the sector of a number of major funding providers, conditions in the Loan Line Group's
markets are very poor, with a dearth of wholesale funding, and the Directors have therefore concluded that it is not in the interests of
Accuma's shareholders to continue to fund the Loan Line Group's losses. Accordingly the Loan Line Group directors have convened a meeting
on 14th October 2008 under section 98 of the Insolvency Act 1986 to appoint a liquidator to put the Loan Line Group, other than its dormant
subsidiaries, into a Creditors Voluntary Liquidation.
For the six months ended 30 June 2008 the Loan Line Group recorded a loss of £196,000 and at 30 June 2008 it had net liabilities of
£81,181. In the December 2007 accounts a full impairment charge was made for the goodwill of the Loan Line Group, of £11.8 million.
The closure of the Loan Line Group will result in a write off of approximately £600,000 intercompany liability and an additional net
cash outflow of around £90,000 in settlement of liabilities due to the Loan Line Group. At 30 June 2008, Accuma Group Plc had net cash of
£1.5m.
The Board will provide an update to shareholders as soon as possible.
For further information, please contact:
Charles Howson Chief Executive
Andrew Bland Finance Director
Accuma Group Plc Tel: 0845 202 6787
Lindsay Mair/Stewart Dick
Daniel Stewart & Company plc Tel: 0207 776 6550
Simon Rothschild/Oliver Winters
Bankside Consultants Tel: 0207 367 8888
This information is provided by RNS
The company news service from the London Stock Exchange
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