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ASOG Avanta Serviced

111.00
0.00 (0.00%)
17 May 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Avanta Serviced LSE:ASOG London Ordinary Share GB00BCLYPC12 ORD 30P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 111.00 0.00 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Avanta Serviced Office Group PLC Trading Statement (1229Y)

27/11/2014 7:00am

UK Regulatory


Avanta Serviced (LSE:ASOG)
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RNS Number : 1229Y

Avanta Serviced Office Group PLC

27 November 2014

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION

27 November 2014

Avanta Serviced Office Group plc (AIM: ASOG)

Trading Update

Avanta Serviced Office Group plc ("ASOG", the "Company" or the "Group") is an AIM-listed provider of flexible office space, currently operating 28 business centres, predominantly in the London area.

Further to the announcement by Tosca Vehicle Limited on 21 November 2014 of a cash offer (the "Offer") for the entire issued and to be issued share capital of Avanta Serviced Office Group plc, the board of directors of the Company (the "Board") has brought forward its year end trading update. The Board will make a statement regarding the Offer in due course.

The Company is pleased to report that occupancy levels across the estate have been slightly ahead of previous expectations and this has had a positive revenue impact at some of the Group's larger centres. Pricing at a number of centres has also been higher than previously expected. This has resulted in an improvement in the overall profitability of the Group's mature estate. The Company is also pleased to report that initial trading at its new centre on Warwick Street has been significantly ahead of plan and the long run targeted occupancy is now expected to be contracted by December 2014, rather than March 2015 as originally planned. Moreover, due to the strong demand, the Company has been able to achieve initial pricing levels significantly higher than originally anticipated. Trading at the Company's other most recent site, 3 Tenterden Street, is also ahead of plan and opening losses are anticipated to be slightly lower than anticipated.

Furthermore, the Company's financial results for the full year are expected to include one off provision releases of c.GBP0.45m in connection with the completion of its refurbishment contracts at its King William Street centre and lower than expected closure costs associated with those sites held for sale.

As a consequence of the above the Company now expects revenues and earnings for the current year to be materially ahead of current market expectations and to post only a slight loss before tax. Management expects the better than expected recurring trading performance at the end of 2014 to carry on into early 2015.

The Company also confirms that it completed the sale of its Beckenham property on 7 November 2014 and that it expects to close the business centre operation there in December 2014. Following the sale of the property at Beckenham, the Company paid RBS its final fee related to the property proceeds following the refinancing in November 2012. In total, the Company has paid RBS a total of GBP3.3m reflecting receipts from property sales significantly higher than anticipated at the refinancing in November 2012.

Finally, the Company is pleased to report that on 24 November 2014 it completed a ten year extension on it lease at its Austin Friars location in the City of London.

This announcement contains the following wording which constitutes a profit forecast (the "Profit Forecast") under Rule 28 of the City Code on Takeovers and Mergers (the "Code "):

As a consequence of the above the Company now expects revenues and earnings for the current year to be materially ahead of current market expectations and to post only a slight loss before tax. Management expects the better than expected recurring trading performance at the end of 2014 to carry on into early 2015.

Pursuant to Note 2(b) on Rule 28.1 of the Code, the Panel on Takeovers and Mergers has given a dispensation from the requirement for the Profit Forecast to be reported on in accordance with Rule 28.1(a) of the Code. Tosca Vehicle Limited, which announced its Offer for the Company on 21 November 2014, has also given its consent for the Profit Forecast not to be reported on.

Pursuant to Rule 28.1(c) of the Code, the directors of the Company (the "Directors") confirm that the Profit Forecast continues to be valid as at the date of this announcement. The Directors further confirm that the Profit Forecast has been properly compiled on the basis of the assumptions stated within the paragraph below and that the basis of accounting used is consistent with the accounting policies of the Company.

Assumptions for Profit Forecast

The Directors have prepared the Profit Forecast on the basis of the following assumptions:

Factors outside the influence or control of the Company and its Directors

-- certain expected refurbishment projects within the existing estate are concluded prior to the 2014 financial year end.

-- rent review negotiations on one of the Group's larger centres are concluded as management expects.

   --      there are no material changes to the Group's current dilapidations provisions. 

Factors within the influence or control of the Company and its Directors

-- occupancy for the current year remains as contracted and revenue per occupied workstation remains in line with client contracts and historic trading.

-- operating costs are broadly in line with the first ten months of the current financial year, adjusted for inflation (as appropriate).

In accordance with Rule 30.4 of the Code, a copy of this announcement will be made available on our website at http://www.avanta.co.uk/.

Enquiries:

 
Avanta Serviced Office Group plc       Tel: 020 73008 6000 
Daniel Taylor, Chairman 
 Alan Pepper, Chief Executive Officer 
 
 
Shore Capital & Corporate              Tel: 020 7408 4090 
Stephane Auton / Patrick Castle 
 
 
  Weber Shandwick                        Tel: 020 7367 5100 
Nick Oborne 
 

Shore Capital and Corporate Limited, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting exclusively for ASOG and for no one else in connection with the Offer and will not be responsible to anyone other than ASOG for providing the protections afforded to clients of Shore Capital and Corporate Limited nor for providing advice in relation to the Offer or any other matter or arrangement referred to in this announcement.

Disclosure requirements of the Code

Under Rule 8.3(a) of the Code, any person who is interested in 1% or more of any class of relevant securities of an offeree company or of any securities exchange offeror (being any offeror other than an offeror in respect of which it has been announced that its offer is, or is likely to be, solely in cash) must make an Opening Position Disclosure following the commencement of the offer period and, if later, following the announcement in which any paper offeror is first identified. An Opening Position Disclosure must contain details of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror(s). An Opening Position Disclosure by a person to whom Rule 8.3(a) applies must be made by no later than 3.30 pm (London time) on the 10th business day following the commencement of the offer period and, if appropriate, by no later than 3.30 pm (London time) on the 10th business day following the announcement in which any securities exchange offeror is first identified. Relevant persons who deal in the relevant securities of the offeree company or of a securities exchange offeror prior to the deadline for making an Opening Position Disclosure must instead make a Dealing Disclosure.

Under Rule 8.3(b) of the Code, any person who is, or becomes, interested in 1% or more of any class of relevant securities of the offeree company or of any securities exchange offeror must make a Dealing Disclosure if the person deals in any relevant securities of the offeree company or of any securities exchange offeror. A Dealing Disclosure must contain details of the dealing concerned and of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror, save to the extent that these details have previously been disclosed under Rule 8. A Dealing Disclosure by a person to whom Rule 8.3(b) applies must be made by no later than 3.30 pm (London time) on the business day following the date of the relevant dealing.

If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire or control an interest in relevant securities of an offeree company or a securities exchange offeror, they will be deemed to be a single person for the purpose of Rule 8.3.

Opening Position Disclosures must also be made by the offeree company and by any offeror and Dealing Disclosures must also be made by the offeree company, by any offeror and by any persons acting in concert with any of them (see Rules 8.1, 8.2 and 8.4).

Details of the offeree and offeror companies in respect of whose relevant securities Opening Position Disclosures and Dealing Disclosures must be made can be found in the Disclosure Table on the Takeover Panel's website at www.thetakeoverpanel.org.uk, including details of the number of relevant securities in issue, when the offer period commenced and when any offeror was first identified. You should contact the Panel's Market Surveillance Unit on +44 (0)20 7638 0129 if you are in any doubt as to whether you are required to make an Opening Position Disclosure or a Dealing Disclosure.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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