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("Cosalt" or "the Group" or "the Company")
INTERIM MANAGEMENT STATEMENT
The Board of Cosalt today announces its Interim Management Statement in respect of the period from 1 July, 2012 to 27 November, 2012.
The Group previously announced that it was in continuing discussions with David Ross, the Group's pension trustees and its banks to secure a long term financing solution. Those discussions are still on-going and whilst their outcome remains uncertain, the Group is still not yet in a position to publish its Report and Accounts for the 12 months ended 31 December, 2011. The Company's ordinary shares continue to be suspended from trading pending publication of its audited accounts.
The Group, as previously reported, reached settlement in relation to litigation against Calum and Stuart Melville and associated companies, under which it has received £1 million to date and a further £1 million, secured by a pledge of shares in Global Integrated Services Limited, is due to be received by subsidiary GTC over 18 months from January, 2013. The Group is now in contact with the police regarding this matter.
After interest and the costs associated with being listed, the Group has been trading at a loss and the level of indebtedness, and issues of and allied to the litigation, have continued to significantly constrain the business. The pension contribution holiday previously agreed with the Group's pension trustees has now expired, but the Group has not yet been able to agree with the trustees any replacement arrangements regarding contributions. Notwithstanding these issues, good progress has been made towards operational improvements in the main operating businesses.
The management team remains very focused on finding viable solutions to these issues 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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