Sirdar PLC - Reorganisation of Investment
01 July 1997 - 3:16PM
UK Regulatory
RNS No 7900n
SIRDAR PLC
1st July 1997
Sirdar PLC ("Sirdar")
Reorganisation of investment in Acropolis Hotels Limited
Sirdar, the Wakefield based textiles group, announces that it
has reorganised its investment in Acropolis Hotels Limited
("Acropolis"), an associated company. Previously, Sirdar held
a 50% stake in Acropolis which owned and operated two hotels,
one in Wakefield and one in Bradford. With effect from 1 July
1997 Acropolis has demerged its interest in the Wakefield
hotel into a separate company on the basis of an equal
division of the net assets at 30 June 1997 using valuations
prepared by Christie & Co.
The existing company is now a wholly owned subsidiary of
Sirdar and operates the Bradford hotel. A new company has
been formed to own and operate the Wakefield hotel and this
company is now controlled by Sirdar's ex-partners in the joint
venture.
The effect on Sirdar's profit and loss account is that the
share of profit of associated company (approximately #725,000)
will be replaced by turnover, operating costs and interest
payable thereby producing profit before taxation of a broadly
similar amount. Similarly, the effect on Sirdar's balance
sheet is that the investment in associated company
(approximately #7,000,000) will be replaced by tangible fixed
assets and bank borrowings with a negligible impact on net
assets; bank borrowings have increased by a #3,300,000 bank
loan repayable in quarterly instalments over four and a half
years.
As a result of the demerger, Sirdar is now able to consolidate
and develop the Bradford hotel in line with its objectives.
Enquiries:
F G Lumb
Chairman/Managing Director - 01924 371501
END