Trading Statement (9212A)
February 09 2011 - 2:10AM
UK Regulatory
TIDMOAH
RNS Number : 9212A
Oak Holdings PLC
09 February 2011
9 February 2011
Oak Holdings plc
Business review and financial condition update
The Board of Oak holdings plc (the "Company") announced on 24
January 2011 that Rotherham Metropolitan Borough Council ("RMBC")
had issued it with a notice stating that it intended to terminate
the current development agreement relating to the YES Project
between RMBC, Oak Ventures Limited and Oak Holdings plc with effect
from 31 January 2011. This notice was duly implemented in
accordance with its terms.
In light of this very disappointing news, the Board has been
reviewing the future plans and financing for the group.
The group now has four revenue generating operations and a
number of valuable assets which are each discussed below. It also
has total liabilities (including medium term loans) of some GBP 1.9
million (compared with over GBP2.5million at the last balance sheet
date). The group requires further equity based funding to achieve
its objectives and is in discussions with a third party for an
injection of such funds. The group is also in discussions with
banks with a view to funding some of the capital required to enable
the strategy below to be implemented.
Rother Valley Country Park
The group's main revenue generating business is the operation of
the Rother Valley Country Park which is adjacent to the Yes!
Project site. The group owns a lease on the Park and runs a number
of outdoor activities there. It is widely used by local schools,
national sporting bodies and by individuals. It receives some
900,000 visitors each year and the board believes that there is
considerable scope to increase the current profitability of the
operation through some modest investment in additional and enhanced
facilities.
Ringwood Town & Country Experience
This business, which was acquired last year, operates a museum
with an associated function space and restaurant near Ringwood. It
has on display a eclectic range of exhibits and has considerably
more objects than can be displayed. This business has historically
been consistently profitable but has not traded well in the past
year. The board believe, however, that with a modest capital
investment and some other minor changes, trading can be returned to
profitability during the current year. This business also has the
capacity to realise some of the objects which are not on display
and the board is considering moving some of the exhibits to the
Rother Valley Country Park to provide a focus of interest when
outdoor pursuits are unappealing.
Oak Heritage
Oak Heritage acquired a number of historic motor vehicles from
RTCE and is currently restoring Hispano Suiza vehicles for sale
into the specialised market for such cars. It also supplies from
stock and re-manufactures spare parts for these historic cars and
undertakes maintenance and restoration for third parties. This
business has the potential to make profits for the group and
requires again only modest funding.
Property consulting
The group is involved in two property consultancy projects. One
is generating revenues for the group and the other should generate
a capital profit for the group on the achievement of certain
objectives and the realisation of the site concerned.
Assets
The Group owns the A57 land which is adjacent to the site of the
YES! Project. This 'consented access' is likely to be required to
provide access to the site for any alternative developer and, the
board believes will have the potential for separate development
prospects alongside any development on the YES! site. Its value at
the moment, is therefore, very difficult to assess.
The group also has valuable assets in the partly constructed
historic vehicles and the RTCE exhibits.
Liabilities
The group also has significant liabilities including a number of
term loans running forward secured on group assets
As well as the possible equity based funding referred to above,
the Board is currently exploring various options in an attempt to
ensure the future of the Group and to best protect shareholders'
interests. Other options would include the acquisition, for shares,
of a new business.
Shareholders will be further updated in due course.
Enquiries
Oak Holdings plc
Mike Woodcock
Chairman
Tel: 020 7493 5522
Nominated Adviser to Oak Holdings plc
Cairn Financial Advisers LLP
Tony Rawlinson
Tel: 020 7148 7900
This information is provided by RNS
The company news service from the London Stock Exchange
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