We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Greatfleet | LSE:GFG | London | Ordinary Share | GB00B2QBB969 | ORD 20P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 8.50 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
RNS Number:7867H Greatfleet PLC 15 November 2007 For immediate release 15 November 2007 Greatfleet plc ("Greatfleet" or the "Company") Trading update Introduction On 5 November 2007 the Company announced that the outcome for the current year was likely to be significantly below their previous expectations. This was due to the Company's trading in October being significantly below budget and the Board becoming aware, as a result of a review being conducted at the request of the Board by Colin Gerstein (the Company's recently appointed Chief Executive Officer), of certain matters which may have an impact on the outcome for the current year. The Company are today providing the results of the review, current trading and an outline of the new management team's strategy for the future. Key findings of the review Since 30 June 2007 the monthly management accounts presented to the Board have included revenues which were incorrectly included under the Company's revenue recognition policy. In addition it appears that certain costs and accruals incurred by the Company were not included in the management accounts in the period in which they were incurred. During the review it was identified that several unprofitable arrangements had been entered into between the Company and some senior recruitment consultants and their teams. These arrangements included commission rates significantly in excess of industry norms and significant one off loyalty bonuses without targets. These arrangements have now ceased or been re-negotiated to enable the Company to go forward on a basis in line with current industry standards. The new senior management team, led by Colin Gerstein and Antony Cox (Executive Director), have undertaken a full review of the sales, back office and hiring process. All of the Company's consultants and administration staff have been interviewed and assessed and consequently a number of support and non-contributing sales staff have left the business. The Board has also become aware of certain undertakings included in the loan agreement which was entered into between General Capital Venture Finance Limited ("General Capital") and the Company on 12 September 2007 have been breached. The non-executive directors were not made aware of these undertakings at the time the loan agreement was entered into. The undertakings which have been breached include a fixed minimum profit covenant and a clause in relation to a previous member of the executive management team's personal borrowing arrangements with General Capital. The Board of Greatfleet have discussed these breaches with General Capital who have provided assurances to the Company that, whilst reserving all their rights under the loan agreement, they will not seek repayment of the loan at this time (provided the Company continues to meet the repayment schedule and that there are no further breaches of the loan agreement). In addition, General Capital has indicated that they would be willing to amend the terms of the loan agreement or enter into a new loan agreement with Greatfleet. The review has also highlighted that Project Technology Limited ("Project Technology"), a company of which past members of the executive management team are both shareholders and directors, was allowed by the previous executive management team to increase its credit facilities by #99,000 with Greatfleet in July 2007. This was despite a statement in the admission document dated 30 November 2005 that all decisions in relation to Project Technology should be taken only by Jonathan Hill (the Company's former Chairman), Keith Lassman and John Baker. In addition, these actions were taken even though the Board had instructed the previous executive management team not to increase the Company's credit facilities to Project Technology. As at 14 November 2007, Project Technology owed a total of #140,000 to Greatfleet and the Board are now taking active steps to recover the outstanding amount. These factors, combined with October's poor trading results (which consisted of corrections relating to the management accounts since 30 June 2007 and reduced levels of activity), have led the Board to conclude that it is likely that the Company will make a small loss in the current financial year. The Company's new management team are now rigorously enforcing the Company's revenue recognition policy and are monitoring the Company's costs closely. In light of the findings of the review, the Board are seeking advice on any action that the Company may take to protect the interests of shareholders. The Company holds a vacant leasehold property in Ludgate Hill, London, which has been vacant since December 2005 and the Company continues to incur the rental cost of the property. In addition, the Company also owns a leasehold property in Leeds which has been vacant since December 2004. The Board intend to mitigate the costs of these properties by refurbishing and seeking to sub-let the property in Ludgate Hill and refurbishing and using the property in Leeds. Significant further cost reduction measures are being implemented by the new management team to improve net margins and robust reporting structures are now in place to support the business. Current trading Through this difficult period the Board of Greatfleet have been greatly encouraged by the enthusiasm of the staff retained in the business and the levels of current activity being generated. The Board believes that with the new executive management team in place, the revised cost and commission structure and a rationalisation of the Company's brands, Greatfleet is now capable of moving forward with a view to rebuilding shareholder value in the future. The Board has considered the working capital requirements of the Company and assuming that: (i) the Company's trading continues as expected by the Board; (ii) there are no unforeseen events; and (iii) the Company continues to enjoy the support of General Capital, then the Company currently has sufficient working capital for its present requirements. Outline strategic plan for the future Greatfleet currently operates under eight brands of which only two (Longbridge Search & Selection ("Longbridge") and Qualitas People Solutions ("Qualitas")) will form the basis of the Group going forward. Longbridge will provide research led services and Qualitas will provide contingent based services. Longbridge currently operates out of London and Frankfurt and the new management team plan to grow Longbridge's presence through the Company's Dublin and Edinburgh offices. In addition, it is expected that Qualitas will add London, Norwich and, in due course, Leeds, to its existing Dublin and Edinburgh regional operations. The executive management team have identified strong management resource within the existing business and are putting in place a revised operational management structure to enable the business to move forward. The Company intends to focus its activities in four key sectors (being legal, banking, finance and IT) and to grow the business organically in the short to medium term. In addition to the UK, the Company will continue to provide services to the Middle East, Asia and across Europe from its UK headquarters and through its Frankfurt operation. The Company has no plans to expand its offices further outside of the UK in the foreseeable future. For further information please contact: Greatfleet plc John Baker, Non-Executive Chairman Tel: 0845 881 0700 Colin Gerstein, Chief Executive Officer Noble & Company Limited Tel: 0207 763 2200 Nick Naylor Nick Athanas Parkgreen Communications Tel: 020 7851 7480 Simon Robinson Ben Knowles This information is provided by RNS The company news service from the London Stock Exchange END TSTGUGPAGUPMUBA
1 Year Greatfleet Chart |
1 Month Greatfleet Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions