10 August 2012 – strategic review

The company has announced the results of a strategic review, including the closure of FMT, the manufacturing subsidiary in Poland.  The directors of FMT have determined that they will initiate insolvency proceedings for FMT in Poland.  The cessation of operations at FMT will be dealt with in the Group financial statements for the year ended 31 March 2013.  Significant cash costs are not anticipated as a result of the closure.

Group head office functions will relocate from Leeds to Heckmondwike, releasing the freehold office building in Leeds, with a current net book value of £0.4m, for disposal in due course.  The restructuring costs and associated savings will be accounted for in results for the year ending 31 March 2013.

Net debt stands at £1.9m despite the divestment of Group operations in South Africa and the sale of a surplus freehold property in Leicestershire, both announced last month.  The shares are no more than a HOLD.