Aegis Group notes that one of its former Spanish clients, Nueva Rumasa, and certain affiliated companies have filed for pre-insolvency protection under section 5.3 of Spanish Insolvency Law. Section 5.3 allows a company to enter into a four month negotiation period with creditors, ahead of any potential formal insolvency process.
As these Nueva Rumasa companies have outstanding liabilities owing to an Aegis subsidiary in Spain, Aegis considers it likely that a provision will be made against the group’s net exposure which will be recorded as a one-off exceptional charge in its 2010 full year results, due to be released on 17 March 2011. This exceptional charge is estimated to be circa £25m, on a post tax basis, reducing statutory diluted earnings per share by around 2.0p, but will have no impact on underlying results.
The Board anticipates that underlying results for 2010 will be in line with current consensus forecasts.
Aegis will update the market in its 2010 Results Announcement on 17 March 2011.
Source : Aegis Press Release
