Trading Update
December 02 2009 - 2:00AM
UK Regulatory
TIDMHHC
RNS Number : 4301D
Hexagon Human Capital PLC
02 December 2009
Hexagon Human Capital plc ('Hexagon', the 'Company' or the 'Group')
2 December 2009
Trading Update
The Company has recently undertaken a re-forecast of its financial performance
and provides the following update.
Trading in recent months has stabilised across both the Group's operating
divisions. However, the Board now anticipates that EBITA for the full year will
be below market expectations.
The re-forecast exercise has revealed previous cash flow forecasts to have been
over optimistic. As scheduled payments to HMRC had been agreed based on these
forecasts, the Group has not fulfilled its obligation under this arrangement.
Discussions with HMRC about a revised payment plan are now ongoing, and the
Company will make further announcement(s) as appropriate.
The Company also announces that it will not be in a position to satisfy
termination payments to Mr Jonathan Wright, former CEO, and Mr Carl Thompson,
former CFO. The termination payments were agreed based on the previous financial
forecasts. In negotiation with Mr Wright and Mr Thompson, the Company has
proposed a re-scheduling of the payments set out in the termination agreements.
The proposals made to date have not been accepted.
The Company remains in active discussions with its bankers and following the
re-forecast exercise now believes that it has a realistic basis on which to
agree facilities appropriate for Hexagon's ongoing requirements.
Commenting on the update, Rob Walker, Executive Chairman said:
"It is pleasing to note that trading performance has stabilised, demonstrating
the strength and value of the Hexagon businesses. The complete re-forecast
exercise has revealed over-optimism in the past regarding the Group's cash
position. As a result, whilst we are confident of our ability to trade out of
the current situation, the Group is in default on previously agreed payments
with HMRC. Discussions with HMRC are now ongoing."
Enquires to:
Hexagon Human Capital plc
Tel: 020 7337 1133
Rob Walker, Executive Chairman
Brewin Dolphin Investment Banking (NOMAD) Tel:
0845 213 4730
Matt Davis/ Adam Rudd
This information is provided by RNS
The company news service from the London Stock Exchange
END
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