Investment in Forknall Ltd

RNS Number:7118R
Emerging UK Investments Plc
23 September 2005



FOR IMMEDIATE RELEASE 23 September 2005

EMERGING UK INVESTMENTS PLC ("EUKI" OR "THE COMPANY")

EUKI INVESTS IN FORKNALL LIMITED

The Board of EUKI is pleased to announce the completion of an investment in
Forknall Limted. EUKI has invested #21,667 in Forknall Limited ("Forknall") for
an equity interest of 13%. The investment has been structured as a loan for
#15,167 with a coupon of 9% per annum and the remaining #6,500 as equity.

Forknall is a Leicester-based manufacturer, supplier and installer of fencing,
balconies, internal balustrades and gates made from timber, steel and concrete.
Forknall supplies these products and services to various sectors including to
house builders and also Local Authorities, and with a number of blue chip
clients. The company was previously known as RK Forknall & Sons Ltd ("Forknall &
Sons"), had been operating since 1997 and was one of the leading manufacturers
in the Leicester area. However, Forknall & Sons suffered from the effect of
'overtrading' and was unable to cope with its rapid increase in turnover.
Forknall & Sons was placed into Administrative Receivership in August 2005 and
was subsequently purchased by a new company named Forknall Limited with a
funding package of #120,000 provided by the new management team and other
external investors.

In the year to 31 March 2005, RK Forknall & Sons had sales of #2,448,797 with a
loss before tax of #68,037. In the 4 months to 31 July 2005 the unaudited
management accounts showed sales of #807,379 and profit before tax of #36,164.

The board believes that with a new and focused management team in place, and by
rationalising its operations and lowering its purchasing costs by sourcing
products from China, the company may be able to improve its profitability.
Forknall will also look to expand by acquiring other businesses in the building
sector and may seek eventually a trade sale or stock market flotation.

In the opinion of the Board of EUKI, this investment represents good value and
may generate a combination of capital growth and income.

Enquiries:

EMERGING UK INVESTMENTS PLC 
Renwick Haddow 07966 130 182

BEAUMONT CORNISH LIMITED 0207 628 3396
Noelle Greenaway/Roland Cornish





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