PUM8 Puma 8

 
TIDMPUM8 
 
 
   Puma VCT 8 plc ("the Company") 
 
   Investment in Opes Industries Limited 
 
   On 13(th) August 2014, the Company invested a total of GBP1m into Opes 
Industries Limited ("Opes") as part of an GBP8.8m investment by Puma 
entities. Opes owns a 73 hectare site in north Oxfordshire with an 
operating landfill site for non-hazardous materials and an 
aggregates/gravel quarrying business. 
 
   The site had planning permission for a Materials Recycling Facility 
("MRF") to process waste from commercial and industrial sources and from 
construction and demolition. The MRF was designed to separate metals for 
recycling, generate solid recovered fuel ("SRF") and send only a small 
proportion of the material accepted at the gate for landfill. As a 
result the MRF would mitigate the cost of landfill tax incurred from a 
consignment. The site also had planning permission for a gasifier to 
turn the SRF into a combustible gas for power generation. 
 
   The Company's investment was to provide funding for the construction and 
equipping of the MRF and working capital during the build-up of the 
trade. The funding was provided in the form of equity and loan stock and 
our interests are covered by a first fixed and floating charge over all 
Opes' assets including a charge over the land and buildings. A large 
industrial building (approx. 100m x 30m) was constructed to house the 
MRF which began operating during 2015. 
 
   In the early hours of Sunday 28(th) February 2016, a fire was discovered 
within the waste reception hall of the MRF. The fire has seriously 
damaged at least one third of the building and seems to have destroyed 
approximately half of the plant and equipment. However, the fire is 
still smouldering and the hall is inaccessible. It is therefore 
currently impossible to make an informed assessment of the extent of the 
damage. No one was hurt in the fire. 
 
   It is clear that the immediate consequence of the fire is that the plant 
cannot now operate and will require substantial rebuilding and 
reequipping before it can reopen. We understand that the MRF and the 
Opes business is insured in respect of plant, building and business 
interruption, but clearly it will take some time for insurers to assess 
the damage. Given the current status of the business, it is likely that 
the Puma VCTs will appoint an administrator of Opes very shortly. 
 
   The Company's board has carefully considered the situation and believes 
that when matters are clearer it will wish to make some provision 
against the Company's investment in Opes.  The size of any provision 
remains open at present, but on the basis of current information it may 
be greater than 5% of the Company's Net Asset Value ("NAV") and 
therefore classified as material to NAV. 
 
   Enquiries: 
 
   Graham Shore                         +44 (0) 20 7408 4090 
 
   This announcement is distributed by NASDAQ OMX Corporate Solutions on 
behalf of NASDAQ OMX Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: PUMA VCT 8 PLC via Globenewswire 
 
   HUG#1992075 
 
 
 
 

(END) Dow Jones Newswires

March 04, 2016 11:42 ET (16:42 GMT)

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