Company Announcements

Sale of Discovery UPDATE

Source: RNS
RNS Number : 3891U
All Leisure Group PLC
15 October 2014
 



15 October 2014

All Leisure group plc

Update

The Board of All Leisure group plc (the "Company" or the "Group") (AIM: ALLG), the niche cruise and tour operator specialising in the over-55s market, announces that it has successfully sold its 43 year old, loss-making cruise ship mv Discovery ("Discovery") to Liberty Resources Inc. of Nassau, Bahamas ("Liberty") for a net consideration of US Dollars 5.0m. This cash has now been received by the Company.

 

On 13 February 2014, the Group announced that it had written down the value of Discovery to approximately £9.9m including spares and planned to dispose of it at the end of the summer. Although the consideration received is less than the current book value of the vessel, the Board's decision to sell mv Discovery to Liberty also took into account the absence of the future liabilities and other uncertainties associated with many other bids. The losses attributable to mv Discovery for the year ended 31 October 2013 were in excess of £3m. Several higher indicative offers were made but had weaker cash flow profiles given the prospect of staged payments over several years. Furthermore, during these extended payment periods, the Group would have remained responsible for warranting the vessel and the forthcoming winter lay-up costs of the vessel, together with the costs of meeting the requirements of the dry docking regime.  It was the Board's considered view that is was therefore in shareholders' best interests to accept the lower cash offer in full and final settlement.

 

The Group's financial year end is 31 October and a further update will be provided on current trading at the end of November 2014.  This will include an assessment of the financial impact of the cruises to Ukraine and Crimea, as notified on 11 July 2014 in the Group's interim results for the six months ended 30 April 2014.

 

Further to the announcement dated 21 July 2014, the Company is also pleased to confirm the appointment of Kevan Witts to the role of Interim Group Finance Director with effect from 11 September 2014. Chris Gadsby has stepped down from his role as Group Finance Director and remains with the Company until mid-December. The Company has already commenced the search for a new Group Finance Director. The Board would like to thank Chris for his contribution to the business and wish him success for the future.

 

Kevan Ronald Witts (aged 54) 

 

Current Directorships / Partnerships

Former Directorships / Partnerships (past 5 years)

All Discovery Cruising Limited

(none)

All Leisure Group plc

 

All Leisure Holidays Limited

 

Atholl Shipping Corporation

 

Blue Chip Travel Coaching Limited

 

Blue Chip Travel Limited

 

Cruise Line Direct Limited

 

Cruiseminded Limited

 

Discovery Cruises Limited

 

Discovery Cruising Limited

 

Discovery Shipping Limited

 

Just You Holidays Limited

 

Page & Moy Limited

 

Page & Moy Properties Limited

 

Page & Moy Surface Transport Services Limited

 

Page & Moy Travel Air Transport Services Limited

 

Page & Moy Travel Group Air Holidays Limited

 

Page & Moy Travel Group Limited

 

Page & Moy Travel Group Surface Holidays Limited

 

Page & Moy Travel Limited

 

Travelsphere Limited

 

Voyages of Discovery Limited

 

Worldwide Voyages of Discovery Limited

 

 

There are no further matters in connection with the Company's appointment of Kevan Witts to be disclosed under Rule 17 or Schedule Two paragraph (g) of the AIM Rules.

 

 

All Leisure group PLC

 

Roger Allard (Executive Chairman)

Tel: +44 7836 382767

Ian Smith (Group Chief Executive Officer)

Tel: +44 1858 588396

Kevan Witts (Interim Group Finance Director)

Tel: +44 1858 588216

 

 

Panmure Gordon (UK) Limited

 

Andrew Godber/Charles Leigh-Pemberton

Tel: + 44 207 7886 2500

 

 

Citigate Dewe Rogerson

 

Ginny Pulbrook

Tel: +44 207 282 2945

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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