RNS Number : 7259A
Imagelinx PLC
06 August 2008
IMAGELINX PLC
("Imagelinx" or the "Company")
Statement re: LTG Gateshead Pension scheme
Imagelinx announces that, following detailed negotiations, Imagelinx has obtained the support of the Pension Protection Fund ("PPF"),
and has been granted clearance by the Pensions Regulator to place its dormant subsidiary LTG Gateshead Ltd, ("LTGG") into a Creditors
Voluntary Arrangement ("CVA").
At 31st December 2007, LTGG's pension scheme had assets of £14.1m and liabilities of £19.2m, giving rise to a deficit of £5.1m which was
accrued on the Consolidated Balance Sheet. As noted in the annual report of 10th March 2008, Imagelinx had received advice that the
Imagelinx group was not contractually liable for this pension scheme deficit. However, given the regulatory position, the group decided to
commence discussions with the Pensions Regulator and the PPF.
As a consequence of this arrangement, the results of Imagelinx plc for the year to 31st December 2008, will record an exceptional gain
of £4.7m, before expenses (being the £5.1m pension deficit less a final contribution to the Scheme of £400,000), in the Income Statement for
the group and an increase in net assets of the same amount.
This agreement is a further step forward in the reconstruction of the group's balance sheet over the last two and a half years. In
December 2005, the Balance Sheet showed a deficit of approximately £5.3m and at 31st December 2007, a surplus of £2.1m.. Had this
transaction taken place as at 31st December 2007, shareholders' funds would have stood at approximately £6.7m at that date which amounts to
approximately 2.3p per share.
It is intended that the interim results for the first six months to 30th June 2008, will be released in early September and the
Directors are confident they will show an improved performance compared to the first half of 2007.
Enquiries:
Imagelinx plc
Albert Klein, Chairman Tel: +44 (0) 7801 910920
Alistair Rae, CEO Tel: +44 (0) 7736 883934
Seymour Pierce Limited
Jonathan Wright/ Sarah Jacobs Tel: +44 (0)20 7107 8000
This information is provided by RNS
The company news service from the London Stock Exchange
END
STRVELFBVVBEBBX
|