CSU Castle Support

RNS Number:1515D
Castle Support Services PLC
03 September 2007


Issued by Citigate Dewe Rogerson Ltd, Birmingham

Date: Monday 3 September 2007

                                                               Embargoed 07.00am

                          Castle Support Services plc

                          ("the Company") or ("Group")


                                     Update


   *The successful implementation of the strategy to unlock the inherent
    value from the pension surplus


   *Sale of a surplus property significantly above book value


   *Results from the acquisition for the ten-month period ended 30 June 2007
    significantly ahead


Pension Surplus

The Company's acquisition of DM Technical Services Ltd approved at the EGM on 18
June 2007 was in-line with the previously announced investment strategy to
acquire a company as a means of introducing new members into the Castle Pension
scheme to unlock the inherent value from the Pension fund surplus for the
benefit of shareholders.


On 20 August 2007, in pursuit of this strategy, all of the members, assets and
liabilities of the DMTS group defined benefit pension scheme were transferred
into the Castle pension scheme and accordingly, as stated in the admission
document published on 25 May 2007 ("Admission Document") the Directors have been
advised that circa. #12 million of surplus assets will be available to assist in
funding the merged scheme.


Completion of the sale of surplus property

The Company is pleased to announce that on 31 August 2007, it completed the
disposal of its vacant freehold property in Weedon, Northamptonshire.


The gross proceeds from the sale are #2.4 million: this compares to a book value
of #0.8 million. The book profit of #1.6 million will be recorded in the
financial statements for the financial year ending 2008. It is not anticipated
that there will be any capital gains tax liability arising from this
transaction.


Expected Results for the ten-month period to 30 June 2007

The Company expects to announce Preliminary Results for the ten-month period
ended 30 June 2007 during the week commencing 24 September 2007.


Profit before tax from the acquired business is expected to be significantly
ahead of the #6.4 million for the year ended 31 August 2006, due to a
considerable improvement in operating profit and approximately #10 million of
additional profit which principally relates to one-off gains arising from: the
settlement of pension liabilities accruing in one of the Group's defined benefit
pension schemes: and from the sale and leaseback of property assets explained in
the Admission Document.


Comparisons for 2006 are as summarised on page 35 of the Admission Document and
available to download from www.castlesupportservices.com/accounts.html.


Commenting upon this progress, Christopher Mills, Chairman, said:


"The significant progress we have made since the acquisition of DM Technical
Services in June 2007 is in-line with our stated strategy to unlock the inherent
value of the Pension Scheme surplus and to benefit from the continued growth of
the business both organically and through acquisitions.


The proceeds of the disposal of the Weedon facility at a substantial profit
together with our existing resources will allow us to take advantage of
potential acquisitions as they arise.


We look forward to providing more detail on our progress in the Preliminary
Results."



Enquiries:
Castle Support Services plc
Christopher Mills, Chairman                    +44 (0) 207 475678
Tudor Davies, Director                         +44 (0) 121 766 6161
Tim Barrett, Finance Director                  +44 (0) 121 766 6161

Citigate Dewe Rogerson
Fiona Tooley                                   +44 (0) 121 455 8370
                                               +44 (0) 7785 703523

Strand Partners Limited
James Harris                                   +44 (0) 207 409 3494




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

END
TSTXLLLBDKBFBBD

Castle Acquisitions (LSE:CSU)
Gráfica de Acción Histórica
De May 2024 a Jun 2024

Castle Acquisitions (LSE:CSU)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024