RES Rugby Est.

TIDMRES

RNS Number : 0919Y

Rugby Estates PLC

24 February 2012

Rugby Estates plc

Interim Management Statement

24 February 2012

The Chairman's review which accompanied the Company's interim results for the six months ended 31 July 2011 contained an update on the ongoing progress in implementing the Company's strategic decision to dispose of the Group's property portfolio and return proceeds to shareholders.

The Board are pleased to announce that in the past few weeks, contracts have been exchanged to sell three further properties bringing total realisations since 31 July 2011 to an aggregate GBP4.2 million. Whilst the Board are pleased to have achieved these disposals in a testing market place, it should be noted that these sales were achieved at prices significantly less than their estimated value as at 31 July 2011.

On the basis set out in more detail in that announcement, triple net asset value per share ("NNNAPS") at 31 July 2011, calculated on a going concern basis consistent with previous periods, was stated as 587p (31 January 2011: 639p; 31 July 2010: 629p (restated for the 2 for 3 share capital consolidation on 20 January 2011)). Pro forma NNNAPS, calculated by adjusting triple net assets of GBP21.6 million at 31 July 2011 for the subsequent return of cash of GBP4.6 million and the associated 9 for 13 share capital consolidation, was stated as 667p per share.

Triple net assets per share "NNNAPS" is a widely used performance measure, which when calculated on a going concern basis consistent with previous periods, enables shareholders to assess changes in underlying net assets at estimated market value. Accordingly, NNNAPS does not represent the amount that shareholders would receive on a final liquidation of the Company as no allowance is made for such costs as asset disposal fees, termination of employment and other contracts, liquidators' fees and administration expenses during any such winding up period.

It was also reported that, given the limited market activity and the intention to complete the portfolio realisation by December 2012, shareholders should be aware that actual property realisations may not achieve current estimates of value. In addition, whilst some upside may arise from obtaining planning consents, these are likely to be offset by shortfalls on the disposal price of other properties. Furthermore, the continuing economic uncertainties and lack of available loan finance continues to adversely affect the market for secondary properties, particularly in circumstances where leases are short or the properties being marketed have substantial vacancies. The overall effect of these factors on returns of cash to shareholders cannot therefore be predicted with certainty.

The Directors continue to review the options for the future of the Company with a view to achieving the optimal cash return for shareholders. A further announcement will be made in April 2012 which will contain details of the Company's results for the year ending 31 January 2012 and, in the absence of any unforeseen circumstances, will contain details of a further return of cash to shareholders. However, at this stage and for the reasons stated above, the Board cannot give any precise estimate of the final value which shareholders may expect to receive, although based on the information that is currently available the Board consider that the aggregate return to shareholders in cash is currently expected to be in the range of 450p to 500p per share.

For further information:

Rugby Estates Plc

David Tye, Executive Chairman

Andrew Wilson, Chief Executive

+44 (0) 20 7016 0050

www.rugbyestates.plc.uk

FTI Consulting

Stephanie Highett

Dido Laurimore

Will Henderson

+44 (0) 20 7831 3113

Fairfax I.S. PLC

Simon Bennett/Katy Birkin

+44 (0) 20 7598 5368

This information is provided by RNS

The company news service from the London Stock Exchange

END

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