Trading Update

 

TIDMHHC 
 
RNS Number : 4301D 
Hexagon Human Capital PLC 
02 December 2009 
 

Hexagon Human Capital plc ('Hexagon', the 'Company' or the 'Group') 
 
2 December 2009 
 
Trading Update 
 
The Company has recently undertaken a re-forecast of its financial performance 
and provides the following update. 
Trading in recent months has stabilised across both the Group's operating 
divisions. However, the Board now anticipates that EBITA for the full year will 
be below market expectations. 
The re-forecast exercise has revealed previous cash flow forecasts to have been 
over optimistic. As scheduled payments to HMRC had been agreed based on these 
forecasts, the Group has not fulfilled its obligation under this arrangement. 
Discussions with HMRC about a revised payment plan are now ongoing, and the 
Company will make further announcement(s) as appropriate. 
The Company also announces that it will not be in a position to satisfy 
termination payments to Mr Jonathan Wright, former CEO, and Mr Carl Thompson, 
former CFO. The termination payments were agreed based on the previous financial 
forecasts. In negotiation with Mr Wright and Mr Thompson, the Company has 
proposed a re-scheduling of the payments set out in the termination agreements. 
The proposals made to date have not been accepted. 
The Company remains in active discussions with its bankers and following the 
re-forecast exercise now believes that it has a realistic basis on which to 
agree facilities appropriate for Hexagon's ongoing requirements. 
Commenting on the update, Rob Walker, Executive Chairman said: 
"It is pleasing to note that trading performance has stabilised, demonstrating 
the strength and value of the Hexagon businesses. The complete re-forecast 
exercise has revealed over-optimism in the past regarding the Group's cash 
position. As a result, whilst we are confident of our ability to trade out of 
the current situation, the Group is in default on previously agreed payments 
with HMRC. Discussions with HMRC are now ongoing." 
 
Enquires to: 
Hexagon Human Capital plc 
   Tel: [phone] 
Rob Walker, Executive Chairman 
Brewin Dolphin Investment Banking (NOMAD)                                   Tel: 
0845 213 4730 
Matt Davis/ Adam Rudd 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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