SYG Speymill

TIDMSYG

RNS Number : 1935C

Speymill PLC

12 April 2013

FOR IMMEDIATE RELEASE

12 April 2013

Speymill plc ("Speymill" or the "Group")

Trading Update - April 2013

Further to the announcement made on 19 December 2012 regarding the appointment of an administrator to Speymill Contracts Limited ("Contracts"), the Board of Speymill wishes to provide an update regarding the performance for the year ended 31 December 2012.

As announced on 28 September 2012, Contracts had recorded a loss of GBP1.76 million for the six months to 30 June 2012. Based on the latest available management reports at the time of the appointment of the administrators, the year to date losses for Contracts had more than doubled to GBP4.00 million as at 31 October 2012.

The final position regarding the result for Contracts to be included in the consolidated accounts for the year ending 31 December 2012 remains undetermined due to the fact that the records of Contracts are no longer under the direct control of Speymill.

The Board of Speymill would also advise that a formal external valuation of the Group's German investment properties has been undertaken by CBRE GmbH in conjunction with DG HYP, the financing bank, and as a result an impairment of the carrying value of these assets has been determined. The Directors had previously based the valuation of the properties on that available at the time of acquisition taking into account the performance of the portfolio since acquisition and the trend of property prices across Germany.

As a consequence, the Directors of Speymill expect to include an impairment in relation to the German properties for the results for the year ending 31 December 2012 of GBP3.69 million but would note that the carrying value of the re-valued properties for the same period was GBP17.88 million. However, the underlying operational trading of the investment properties continues to allow the loans to be fully serviced with all interest and amortisation payments being made.

GBP5.7 million of the GBP7.0 million shareholder loan provided by Jim Mellon and his interests had been drawn down by 31 December 2012. Further amounts have been drawn during 2013, and the amount drawn down by 31 March 2013 totalled GBP6 million.

The Group will announce the consolidated result for the year ended 31 December 2012 in due course, in accordance with the requirements of AIM.

Finally, the board is reviewing a number of business opportunities and will make further announcements as and when appropriate.

In relation to working capital, the Group continues to utilise the shareholder loan facility provided by Jim Mellon and Burnbrae Limited.

For further information:

Speymill PLC

Denham Eke

tel +44 (0) 1624 640860

Beaumont Cornish Limited (Nominated Adviser)

Roland Cornish

Tel +44 (0)207 628 3396

This information is provided by RNS

The company news service from the London Stock Exchange

END

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