Further re Assignment of Leas

RNS Number : 3415Y
Z Group PLC
04 July 2008
 

4 July 2008


Z GROUP plc

('Z GROUP' or the 'Company')


Further re Assignment of Lease


On 27 December 2007, the Company announced that it had assigned the lease of itpremises at 31 Vernon Street, London and that a rent deposit of £117,500 would be received from the landlord.


The Company has now received legal advice, contrary to previous legal advice received at the time of the lease assignment, that the landlord is not obliged to repay the rent deposit until the assignee under the lease subsequently assigns the lease to a third party. Ithe assignee does not assign the lease to a third party, the rent deposit is not repayable until the lease expires on 17 July 2016.


The return of the rent deposit had not been assumed in Z GROUP's internal cash projections. The Directors are pleased to announce that the Company currently has cash reserves in excess of £1,300,000, an amount which exceeds the £1,000,000 of cash reserves that the Directors estimated in December 2007 would exist on completion of the sale of the operating subsidiaries.


The Directors continue to actively seek suitable acquisition targets in line with the Company's investing strategy and will update the market when appropriate.



ENQUIRIES:


Z GROUP plc 



Duncan Neale

Tel: +44 (0) 8700 111 173


John East & Partners Limited



David Worlidge / Bidhi Bhoma

Tel: +44 (020 7628 2200






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