Settlement of MEP's net asset

RNS Number : 0115D

Galiform PLC

09 September 2008

 



GALIFORM PLC

Settlement of MEP's net asset value claim

Galiform plc ('Galiform') announces that it has today agreed to pay MEP Mayflower Limited ('MEP') £8 million in full and final settlement of MEP's net asset value claim against Galiform, payable on 12 September 2008.  MEP's original claim was for £57m.

The settlement is in line with Galiform's previous guidance on the likely amount that would be payable under the claim and is within the provision made by the Group in respect of the claim. 

Note 16(a) of Galiform's 2008 Half Yearly Report gave details of MEP's net asset value claim, as well as other contingent liabilities arising from the sale of the MFI retail business (including guarantee arrangements under certain leases of properties which are occupied by the MFI retail operations).  These other contingent liabilities are unaffected by today's settlement.

Galiform's Chief Executive, Matthew Ingle, said:

'We are pleased to have settled this dispute for £8 million, a small fraction of the original £57 million claim.  Not only does this demonstrate the strength of our case, it avoids a long, expensive and distracting process, provides closure on this issue and is well within the provision we made.'

Enquiries

Investors/analysts:                                 Media:

Gary Rawlinson                                        Brunswick     Susan Gilchrist

Head of Investor Relations                                             Anna Jones

[phone]                                [phone]

[phone]    

 

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