Commercial Agreement

RNS Number : 6850E

Safestyle UK PLC

22 October 2018

 

22 October 2018

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014 on market abuse

Safestyle UK plc

("Safestyle" or the "Company")

Commercial Agreement

Further to the announcement made by the Company on 19 October 2018, Safestyle UK plc (AIM: SFE) announces that it has entered into an agreement with Mr M. Misra, who was a party to the Company's dispute involving NIAMAC Developments Ltd (trading as SafeGlaze UK), and which is currently in the process of rebranding following the recent legal settlement with Safestyle.

Whilst the full detail of the agreement is confidential, it encompasses a five year non-compete agreement and the provision of services by Mr Misra in support of the continued recovery of Safestyle. The Company has agreed consideration with Mr Misra subject to the satisfaction of both clear performance conditions by him over the period to Q4 2020 and Safestyle's trading performance in 2019 being above existing market expectations.

Subject to satisfying the strict terms of the agreement the consideration will take the form of an allotment by Safestyle to Mr Misra of four million ordinary shares of 1 pence each in the capital of the Company (conditional on admission to trading on AIM of such shares) (the "Shares") and a payment of cash consideration of between £nil and £2.0 million (the "Cash Fees"). Both the allotment of Shares and payment of the Cash Fees, if any, would only be made in Q4 2020.  

Mike Gallacher, Chief Executive of Safestyle UK plc, commented:

"The three phase turnaround plan that was outlined in our Interim Results is underway and is already helping to stabilise the Group before returning it to profitability and then accelerating growth. The focus of the whole Group remains on delivering this plan quickly and effectively."

Enquiries:

Safestyle UK plc	via FTI Consulting
Mike Gallacher, Chief Executive Officer
Rob Neale, Chief Financial Officer
Zeus Capital (Nominated Adviser & Joint Broker)	Tel: [phone]
Nick How / Dominic King
Liberum Capital Limited (Joint Broker)	Tel: [phone]
Neil Patel / Jamie Richards
FTI Consulting (Financial PR)	Tel: [phone]
Alex Beagley / James Styles / Laura Saraby

About Safestyle UK plc

The Group is the leading retailer and manufacturer of PVCu replacement windows and doors to the UK homeowner market. For more information please visit www.safestyleukplc.co.uk or www.safestyle-windows.co.uk.

 

END

 

 

AGRBCBDGXBDBGIB