Disposal

RNS Number : 0643V

Carillion PLC

31 October 2017

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR IMMEDIATE RELEASE

31 October 2017

Carillion plc ("Carillion" or the "Group")

£13.8 million disposal of interests in Ask Real Estate

The Board of Carillion today announces the disposal of the Group's:

(i)      66.67% shareholding in Ask Real Estate Limited ("AREL"), and a shareholder loan made by Carillion Construction Limited to AREL's subsidiary, Ask Central Limited; and

(ii)         50% interest in Ask Carillion Developments LLP ("ACD"),

to one or more wholly owned subsidiaries of Dukehill Limited ("Dukehill"), for aggregate cash consideration of £13,800,000 (the "Transaction"). £1,000,000 of the cash consideration is contingent on the sale of 100 Embankment and will be paid by Dukehill within 5 business days of signing of the sale documentation in relation to this.

AREL and ACD (through their wholly owned subsidiaries and other associated entities) carry out commercial property development activities, together with various partners, in the North of the UK, including Manchester, Liverpool and Leeds.  

For the 2016 Financial Year, the interests that are the subject of the Transaction contributed £4.1 million of revenue, £11.6 million profit before tax, and £19.2 million gross assets as at 31 December 2016.  The contribution to profit from Carillion's interests in AREL and ACD can vary significantly from year to year.  The transaction is expected to generate a modest profit on disposal, and the interests being sold were not expected to make a material contribution to overall Group profit for 2017. 

The transaction consideration will be applied in reducing the Group's overall leverage position and, following the Transaction, AREL will be deconsolidated from the Group's accounts. AREL managing director, John Hughes and finance director, Jonathan Cross, who together own 33.33% of AREL, will retain their executive positions.

Commenting, Keith Cochrane, Interim Chief Executive, said:

'We are pleased to be able to announce further progress.  Much remains to be done, and we are continuing to execute our plans to refocus the business, reduce cost and strengthen our balance sheet.'

The person responsible for the release of this announcement on behalf of Carillion plc is Westley Maffei.

Enquiries:

Investors/ Analysts:

Carillion plc

Kellie McAvoy, Head of Investor Relations                                            [phone]

John Denning, Director Group Corporate Affairs

Media:

Teneo Blue Rubicon                                                                               [phone]

Charles Armitstead / Haya Herbert-Burns

This and other Carillion news releases can be found at www.carillion.plc 

Cautionary statement

This announcement may contain indications of likely future developments and other forward-looking statements that are subject to risk factors associated with, among other things, the economic and business circumstances occurring from time to time in the countries, sectors and business segments in which the Group operates. These and other factors could adversely affect the Group's results, strategy and prospects. Forward-looking statements involve risks, uncertainties and assumptions. They relate to events and/or depend on circumstances in the future which could cause actual results and outcomes to differ materially from those currently anticipated. No obligation is assumed to update any forward-looking statements, whether as a result of new information, future events or otherwise.

 

END

 

 

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