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("Cosalt" or the "Company")
INTERIM MANAGEMENT STATEMENT
Cosalt announces its Interim Management Statement in respect of the period from 1 January to 15 May 2012.
On 10 January 2012, the Offer for the issued share capital of Cosalt by Oval, a Company wholly owned by the Chairman David Ross, was declared unconditional. Following the closure of the Offer, Oval owned 56% of the issued share capital of Cosalt. During the period under review Oval has provided two short term unsecured loan facilities totaling £6 million, in addition to the Company's other borrowings of £14.9 million, of which £6.6 million is being provided or guaranteed by David Ross.
As announced on 1 May 2012, the Company is continuing discussions with David Ross, and the Group's pension trustees and its banks to secure a long term financing solution to ensure it has sufficient working capital to sustain the business. The Group also stated that it is not yet in a position to publish its Report and Accounts for the 12 months ended 31 December 2011 as a result the Company requested that its ordinary shares be suspended from trading pending publication of its audited accounts.
Although Group sales were in line with the Board's budget, during the period there has been pressure on margin and cashflow. In addition, the Group's costbase and level of indebtedness continue to significantly constrain the business and are not sustainable over the longer term, in the absence of a new financing solution.
The Board is very focused on finding a solution for all parties involved in the discussions and will make a further announcement as soon as possible.
Trevor Sands, Chief Executive Officer
Tel: +44 (0) 1472 725560
Cardew Group Tel: +44 (0) 207 930 0777
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