LONDON--(BUSINESS WIRE)--
21 October 2016
Mechan Controls PLC (“Mechan” or “Company”)
Result of General Meeting
Approval of Share Buyback facility
Update on Sales Process for Operating Subsidiaries
The Board of Mechan announces that at the General Meeting held yesterday the Resolution to permit the Company to purchase up to 200,000 of its ordinary shares of 2.5p each was passed unanimously. As at close of business on 20 October 2016 the Company's issued share capital comprised 2,000,000 ordinary shares of 2.5 pence each. Any shares purchased pursuant to the Resolution will be held in treasury.
The Board of Mechan is pleased to provide the following update on the progress of the Company’s sales process on its operating businesses. On 20th April 2016 the Company announced:
“The Board continues to explore ways of realising additional value for shareholders and to explore opportunities for the sales of its businesses individually. However as previously advised there can be no certainty that any acceptable offers will be received, nor any sales concluded. The Board is also examining alternative ways of returning value to shareholders.”
Since that time, the Board has had a number of further approaches regarding its operating businesses, including separate proposals from management of certain of its operating businesses. Such approaches remain at an early stage and at present the prices offered for the sum of parts of the group are not yet at a level where the Company would wish to proceed to conclude one or more transactions for the individual businesses with a view to returning the proceeds to shareholders. The Company continues to explore such offers and will update shareholders periodically.
In the meantime, the Board sees no reason to alter the statement made at the time of the Interim Results, that:
“Trading conditions are better than at this time last year and we are confident that the business will continue to grow organically in the second half of the year. The improved trend in the first half of the year is expected to continue, therefore turnover and profit at the year end should be comfortably ahead of last year, with double digit growth in profit expected.”
The Directors of Mechan take responsibility for this announcement.