Speymill Contracts to enter administration
This review included an expert analysis of the current and future prospects for its subsidiary Speymill Contracts Limited. As a result, the Board has regrettably concluded that the Contracts business is not viable and represents an unsupportable burden on Speymill. Thus the Board of Contracts, acting by its sole shareholder, has today lodged with the Court a 'Notice of Intention to Appoint Administrators'.
Contracts, valued at nil in the Company's accounts, suffered a loss of £1.76 million for the first six months of the current financial year and, despite Speymill advancing in excess of £2 million cash in additional support via the principal shareholders during the year, the continued deteriorating results and difficult economic environment has resulted in the Board being forced to take this decision.
The remainder of Speymill, consisting of its property investment portfolio, continues to trade in line with expectations and the other elements of its business are not directly affected by the proposed administration of Contracts. The Board will make further announcements concerning its intentions in due course.
At 3:06pm: [LON:SYG] share price was 0p at 0.75p
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