Update re Dawson International PLC

RNS Number : 1989K

Leeds Group PLC

16 August 2012

 



Leeds Group plc

Dawson International PLC ("Dawson")

Leeds Group plc ("Leeds") owns approximately 29 per cent. of the issued share capital of Dawson. The audited report and accounts of Leeds as at 31 May 2012 recorded the carrying value of its holding in Dawson at £745,000, equal to 5.9% of the net assets of Leeds which were £12,622,000.

In their announcement of 20 July 2012 the directors of Dawson explained that they had sought unsuccessfully to have the Pension Protection Fund ("PPF") assume responsibility for the deficits on certain pension plans in return for a cash payment, loan notes and an equity stake in Dawson. It is the stated opinion of the directors of Dawson that these proposals would realise more cash for PPF than that generated through a costly process of administration which, when completed, would probably result in PPF assuming responsibility for the plans on less favourable terms than Dawson had proposed and without the opportunity to benefit in the future from an equity stake in a profitable company.

Subsequently, on 8 August 2012, the directors of Dawson announced that the actuary of the UK defined benefit pension plans of Dawson had served Notices of a Determination of Contribution on both Dawson and its UK trading subsidiary, Dawson International Trading Limited.

The Board of Leeds Group plc now notes with regret that on 15 August 2012 the directors of Dawson appointed KPMG as administrators of that company and of two other Dawson group companies. In these circumstances, the Leeds Board is of the opinion that the holding in Dawson no longer has value, and has decided to provide in full against the carrying value of £745,000.

Enquiries
Leeds Group plc
Malcolm Wilson	07801 224618
Cairn Financial Advisers LLP
Tony Rawlinson / Avi Robinson	020 7148 7900

 

END

 

 

MSCEALPKFESAEFF